Transcript

0:01
(powerful music)
0:16
– Before we get into the…
0:17
How many of you come up with some good questions?
0:21
How many have come up some bad questions?
0:22
(audience laughter)
0:23
Sometimes the bad questions
0:25
that the breakthrough happens.
0:26
You see in business,
0:28
I think a few of the most dangerous words
0:33
you can say in business is this, write this down,
0:36
My business is different.
0:39
My business is different.
0:40
I hear from entrepreneurs all the time.
0:42
Oh, yeah I’m in this business
0:44
and my business is different
0:45
and this whatever, this it doesn’t work for me.
0:49
Do this for me.
0:49
Do this for me.
0:51
Go ahead.
0:53
Yeah, do it like that.
0:54
Most entrepreneurs, they have what I call the tunnel vision.
0:57
This is how they view the business.
0:59
Okay, take it off.
1:00
So my goal today is hopefully to take that off
1:02
and you can see wow,
1:04
I can look at my business from a different perspective.
1:07
Because most entrepreneurs operate,
1:09
and the business owners,
1:10
most people in the same industry,
1:11
they operate the same way.
1:14
Okay, they look at what everybody else is doing
1:15
and they copycat each other.
1:17
And they think, wow if that guy is doing it,
1:19
it must worked.
1:20
Just because other people are doing it
1:22
doesn’t mean it works.
1:23
It’s the blind leading the blind.
1:25
So if you want to think outside of the box
1:28
I should listening some of these questions
1:30
when we’re doing the hot seat that…
1:32
well yeah, ya know that guy’s in the internet business,
1:35
I’m a mortgage broker,
1:36
that doesn’t apply to me.
1:38
No, no, no, no, no.
1:39
What I wanna do is,
1:40
I wanna train you how to think
1:41
because business is an intellectual sport.
1:46
Business is intellectual sport.
1:48
So if you think of in terms of
1:49
how you think about your business,
1:51
how you execute,
1:52
that’s what produces results.
1:55
Intel is very valuable.
1:57
And business is war.
2:00
Business is war.
2:01
Doesn’t mean the guys who work the hardest
2:04
will make the most amount of money.
2:05
That’s not always the case.
2:07
But the ones with the intelligence,
2:09
with the intel, and can think outside of the box,
2:10
yep, those people, those entrepreneurs win.
2:12
Does that make sense?
2:14
So, let’s start with off some questions.
2:16
Now I do believe there is such a thing as a stupid question.
2:20
I do believe that.
2:21
But I think you come up with some good ones.
2:22
So, yeah ask me anything you want.
2:24
I’m all yours.
2:27
And just put up your hand so we’ll start with the mic.
2:29
The mic is not for the speaker, just for the camera.
2:32
So it doesn’t help.
2:33
Just project. – Hello.
2:35
– And what’s your name?
2:36
– [Male Audience Member] It’s Toby.
2:37
– Toby?
2:38
– [Male Audience Member] Yes.
2:39
– Everybody say, hi Toby.
2:39
– [Audience] Hi Toby.
2:40
– Go ahead, ask your question.
2:42
– With the problem for rising cost, of inflation,
2:48
how do you combat that when you’re starting a business?
2:51
Especially when it comes to real estate,
2:55
salary, employee salary, because it’s rising, right?
2:58
– Yes. So you’re saying with the inflation,
3:00
what business are you in Toby?
3:02
– I’m thinking of a food business–
3:04
– A food business?
3:05
– [Toby] A restaurant.
3:06
– A restaurant?
3:06
– [Toby] Because our family back home in the Philippines,
3:08
we own a couple of chains.
3:09
– Okay.
3:10
– [Toby] I’m making a business plan right now.
3:11
– And you’re thinking of doing it in Vancouver?
3:12
– [Toby] Yes.
3:13
– Okay, So you’re thinking of opening
3:14
a restaurant in Vancouver.
3:16
If you don’t mind me asking,
3:17
what type of restaurant?
3:18
– [Toby] It’s a Filipino restaurant.
3:19
– A Filipino restaurant, okay.
3:20
Because of the labor,’
3:23
also the cost of everything else,
3:25
the food, material, the people.
3:27
So what’s your concern?
3:28
what’s your problem?
3:30
– [Toby] When I was trying to do a break-even analysis,
3:32
it’s just that I need to sell
3:35
a whole lot more just to break even.
3:38
– Okay.
3:38
– [Toby] Because of the real estate cost–
3:41
– The lease.
3:42
– [Toby] Salary, labor and everything.
3:44
– So the question is?
3:46
– [Toby] How do you combat that or
3:48
how do you go around that?
3:52
If you have any–
3:55
– Okay, I get it.
3:56
– [Toby] Advice?
3:58
Which is, first of all,
3:59
I want to acknowledge you for doing the
4:01
break-even analysis because a lot of
4:03
entrepreneurs, they just jump into it.
4:04
They just open up something without
4:07
running through the numbers.
4:08
How many have done that, by the way?
4:09
Be honest.
4:10
Yeah. Andre has done that.
4:11
So, which is good.
4:12
The challenge is,
4:14
once you run through the numbers,
4:15
like you said,
4:17
you’re gotta to have sell a whole lot of food,
4:19
to even just to break even.
4:21
– [Toby] Yes.
4:22
– Then honestly, don’t fucking start the business.
4:25
Do something else.
4:26
– [Toby] Uh huh.
4:27
– Like just because maybe you have the
4:29
background in a restaurant,
4:33
Vancouver is a different market.
4:35
And Vancouver, the restaurant industry
4:37
is extremely competitive.
4:39
Just go to Richmond and walk around.
4:40
– [Toby] Mm hmm.
4:41
– It’s extremely competitive.
4:42
There’s a whole different market,
4:43
you have a huge population,
4:44
that’s an Asian population as well, right?
4:47
If you’re selling Filipino food,
4:48
you’re probably a target to the Filipino community,
4:51
I assume, right?
4:52
– [Toby] Actually to the Asian community–
4:53
– Asian community, anybody right?
4:54
– [Toby] And hopefully to the Spanish.
4:55
– So in terms of the numbers,
4:56
you gotta invest how much money?
4:58
What was your number?
5:00
Just open up something like that.
5:02
– [Toby] Initially, cause I talked to an investor,
5:04
she’s willing to put down 150.
5:06
– Okay.
5:07
– [Toby] All in all, it’s going to be around 300.
5:10
– Three hundred right?
5:12
– The kitchen, Just so you know,
5:13
the kitchen itself will probably cost
5:14
two three hundred grand.
5:16
– [Toby] Actually, can you say that again?
5:17
– The kitchen itself,
5:18
because our friends opened up restaurant.
5:20
The kitchen itself is two three hundred grand.
5:21
– [Toby] Yes.
5:22
– So you put in the money and then now
5:24
you gotta think in terms of…
5:25
and if everything goes well,
5:26
how long would it take you for to recoup that investment?
5:29
– [Toby] Five years.
5:30
– Five years?
5:31
That’s everything goes well.
5:33
– [Toby] Yeah.
5:34
– So there you go.
5:34
So think about it, if something not goes well,
5:39
how much money could you lose?
5:42
– [Toby] Quite a lot.
5:43
– Yeah.
5:44
So if you think in terms of,
5:45
why are we in business, by the way?
5:46
– [Toby And Audience] To make money.
5:48
– So if you know that okay it’s a game,
5:50
it’s like gambling.
5:52
It’s a game that you bet,
5:53
okay I’m gonns put in $250,000,
5:56
I think that’s how much this is gonna cost.
5:58
But chances, it’s gonna probably cost
5:59
three four hundred thousand dollars.
6:02
Just to be in the game.
6:04
Forget marketing, forget anything,
6:06
running cost, anything like that.
6:08
I am in red, four hundred grand before open door.
6:11
So if everything goes well,
6:12
in five years, I might recoup my money.
6:15
And if everything goes well,
6:17
maybe in six, seven, 10 years,
6:19
I’m making a little bit of profit.
6:21
So, if you think in terms from a entrepreneurial,
6:24
I’m not saying don’t do it,
6:24
I’m just saying from a numbers point of view,
6:26
follow what I’m trying to do?
6:28
So if you think in terms of an opportunity like this,
6:30
then if I look at that,
6:32
wow, chances of failing is high.
6:36
– [Toby] Yeah.
6:37
– I’m better off just staying at home and doing nothing,
6:41
have the money in my bank,
6:45
than starting something like that might lose money for me,
6:48
for my family, for my investor.
6:51
Versus… does that make sense?
6:55
A battle is won before it’s ever fought.
6:56
From the art of war.
6:58
So if you know that’s maybe not exactly
7:00
ideal what you wanna do,
7:01
maybe look in other businesses.
7:04
Doesn’t have to be because you have a restaurant background
7:06
you have to do this.
7:08
Maybe, I don’t know, I’m just throwing ideas out there,
7:10
What other businesses can you do?
7:11
Maybe leverage the background that you have?
7:14
How can you do something that’s maybe a lower cost?
7:17
Less risk.
7:19
– [Toby] Well it could be,
7:22
because we are quite famous back home,
7:24
that chain is quite famous for the
7:26
chicken barbecue and sauces.
7:28
And I was thinking about also probably
7:32
importing some of our sauces.
7:35
– Sauces?
7:36
– [Toby] Yeah.
7:36
– Now I like that a lot better.
7:37
– [Toby] To here.
7:38
– I like that a lot better.
7:39
Why, tell me, everybody?
7:41
– [Toby] Well it’s a lot cheaper first of all.
7:43
You don’t need that much investment for that.
7:45
– Yes.
7:46
– [Toby] Yeah.
7:47
– For a bottle, how much could you sell it for?
7:51
– [Toby] That I don’t know yet.
7:52
We’re just–
7:53
– How much are you selling it for back home?
7:55
– [Toby] Back home it’s,
8:00
average is 250 pesos,
8:01
which is around seven dollars.
8:06
– Seven dollars.
8:07
And by the way,
8:09
the hot seat is not just me giving you answers.
8:10
I want you to learn how to think.
8:12
How to what?
8:13
– [Audience] How to think.
8:14
– So everybody it’s thinking, brainstorming,
8:15
exercising your brain.
8:17
That’s what this is for.
8:19
I already know this shit.
8:22
It’s not for me.
8:24
This is not for me, it’s for you.
8:25
So that’s good.
8:26
So if you’re doing the sauce business,
8:29
then what is it?
8:30
– [Female Audience Member] (speaking softly)
8:32
– No it’s okay, it’s okay.
8:34
So then maybe look into that.
8:37
What else can you do?
8:39
– [Toby] Well I also have a sales background
8:41
since I got here in Canada five years ago.
8:44
I’ve been working for software, IT and technology sales.
8:49
– Okay, okay, okay.
8:51
So are there opportunities within there?
8:53
– [Toby] Probably.
8:55
– Not so much, write this down.
8:58
The number one key to business success, I believe,
9:01
is to avoid bad assumptions.
9:05
Is to avoid bad assumptions.
9:09
All the problems I have in my life
9:12
started off as a good idea.
9:15
One day came up with an idea,
9:17
ah I should do this,
9:19
let me put in some money, let me start this business.
9:22
Bad assumption, assuming,
9:24
Well, you know what?
9:26
When I launch this, everybody will love it.
9:30
I talk to some of my friends and family
9:32
and they say it’s a good idea.
9:34
Let’s do that.
9:36
And then I think when I launch it,
9:38
within two months, I’ll make a hundred grand.
9:42
Then it turns out, whatever I assume,
9:45
all my friends and family love it,
9:47
When I have the product, you go to them,
9:49
would you like to buy some?
9:49
No.
9:52
Right?
9:53
So and then when I launch it
9:54
I thought I will make a hundred grand in a few months.
9:56
Turns out I didn’t make a hundred grand.
9:57
I didn’t even make 10 fucking grand.
9:59
Lost money, first month.
10:02
Lost money, second month.
10:05
Should I still keep doing this?
10:06
Lost money the third month.
10:09
Shit.
10:10
Shoulda done more research.
10:12
So the key to business is to avoid bad assumptions.
10:15
Assuming whatever you’re doing,
10:17
oh, it’s gonna work a hundred percent.
10:20
No, in fact challenge yourself,
10:22
ask yourself tough questions.
10:23
On my desk, this is very helpful,
10:26
On my desk I have three questions I ask myself every day.
10:30
Every day.
10:31
First question is, what could go wrong?
10:35
What could go wrong?
10:38
Second question is, what don’t I know?
10:41
What don’t I know?
10:43
Last question is, what don’t I see?
10:46
What could go wrong?
10:47
What don’t I know?
10:48
What don’t I see?
10:51
So as you go through those questions, for every one of you,
10:54
you look at your business
10:55
and you ask yourself those questions,
10:58
hmm, what could go wrong?
11:00
What is the risk?
11:01
Versus, what happens if everything goes right?
11:05
Which chances are, not gonna happen.
11:07
And if you ask yourself these questions,
11:09
you would be able to know
11:11
what are some the risk involved.
11:12
And if everything does go right, is that okay? Yes?
11:15
Hello?
11:16
– [Audience] Yes.
11:17
– Yeah, it’s okay.
11:18
But if what could go wrong,
11:19
now I’m thinking what’s the down side?
11:20
Can I live with the downside?
11:21
What is the upside?
11:22
I don’t think about the upside.
11:23
Like any investments, any deals I do,
11:25
I think of what’s the downside first.
11:27
How much money can I lose?
11:29
Am I okay losing that money?
11:31
If it’s not okay, then I’m not so sure.
11:34
Can I live with it?
11:35
Not just, wow I’ll do this deal
11:37
and I’m gonna make all this money.
11:39
I don’t think about that.
11:39
Does that make sense?
11:40
Yeah.
11:41
Any other questions?
11:42
– [Toby] I asked them.
11:43
– Okay.
11:44
Round of applause for Toby.
11:46
(audience clapping)
11:48
Next question?
11:50
10 times your finances.
11:51
10 times your business.
11:53
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11:55
10 times your life.
11:57
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12:01
(powerful music)

Posted by Admin