Hello Misfit Nation! I am excited to bring a special weekend episode of the Misfit Entrepreneur. Occasionally, I find something I truly enjoy and when I do I like to share it with you. In 2021 I’ve started listening more to the immersive shows on Wondery. If you haven’t checked it out, you need to do so.

Recently, I was able to connect with them and they offered to share a small sample of one of their new shows with the Misfit audience and that is what I want to share with you in this short special episode because it focuses on one of my favorite topics – the stories and successes behind some of the most inspiring businesses, creative innovators and intrepid entrepreneurs.

Secret Sauce is one of Wondery’s newest series, hosted by John Frye and Sam Donner. First up, they’re diving into the company that revolutionized how we vacation, travel, and even how we trust other people... Airbnb.

In 2008, Air Bed and Breakfast launched at SXSW (South by Southwest) with high hopes of becoming an alternative to overbooked hotels...but they ended up with just two people booking a stay...and one of them was a co-founder of the company. How did Airbnb persevere through adversity to become a company that would forever change the way we think about travel? What was their magic - their secret sauce - that made them such an unlikely success story? And what lessons can we learn from them?

You’re about to hear a preview of Secret Sauce. While you’re listening, subscribe to Secret Sauce on Apple Podcasts, Spotify, or listen early and ad-free in the Wondery app by going to wondery.fm/SS_Misfit

Enjoy!

Hello Misfit Nation! Welcome to another edition of "Lessons for Hannah!" In November of 2016, we introduced a new format that we are putting alongside our regular episodes called “Lessons for Hannah.” Hannah is my daughter and one of the main inspirations for the Misfit Entrepreneur. I wanted to have a place where she could go and learn from her daddy and his Misfit friends throughout her life….even after I am gone. If you haven’t listened to the first episode of "Lessons for Hannah," I urge you to as it gives some more background and tells the amazing story of how Hannah came to be in our lives.

"Lessons for Hannah" are short, very useful, and sometimes comical lessons, that I have learned which I want to share with you and give to Hannah to help in your lives. Because I want Hannah to have these for her life, I’m going to speak as though I am talking directly to her. These episodes are a lot of fun and if you think there is a lesson that we should include in these episodes, please don’t hesitate to send it over to us at support@misfitentrepreneur.com. We’d love to share it.

This week’s Lesson for Hannah

Hannah, I want to speak to you about sacrifice. Your life is going to be filled with it. When most people hear the word sacrifice, they think of it in a negative way. But I want you to know that sacrifice, more often is good and brings good into our lives.

No matter who you are or your status in life, life is hard. It is full of twists, turns, wonderful moments, amazing experiences, happiness, sadness, love, suffering, and sacrifice. And each person has to navigate life in their own way and each person will work through the challenges of life in their own way.

But, if we can build a positive relationship with sacrifice and see it for what it is – a natural steppingstone to bettering our lives, we can use our sacrifices to make ourselves better, create opportunities, and have a better life.

What do I mean? As we go through life, we will encounter challenges in every area. We will have challenges in our work lives, in our personal lives, and even be affected by things we cannot and do not have control over. You will have to make sacrifices all the time.

A sacrifice is really a choice. Many times, it is a choice between what is right and hard, and what is easy. It is very tempting to take the easy path and not go through the struggle. But the easy path many times leads to bad outcomes. For example, it is easier for a married couple having issues in their lives and marriage to get a divorce than it is to work on the problems together and overcome them. But those that do make the commitment to work together to overcome their challenges come out with stronger, more loving relationships and are happier than those that don’t. At least I can say that is what has been shared with me from those I have spoken to over the years who have been in those situations.

By the same token, it is easier to set aside big problems in business and one’s work and just pretend they don’t exist. This avoidance usually leads to the problem growing bigger and festering to a point where it must be dealt with and at that point it is much larger and more painful than it would have been if handled earlier.

I’ve made many sacrifices in my life, so has your mother. And we will continue to have them and to make them. I know that sometimes, in making the sacrifices it makes things harder in the short term, but in the long term, it is worth it. I think you’ve seen this already even as young as you are. If you’ve ever heard of “delayed gratification,” this is where it comes from. Making a sacrifice in the short term for a bigger gain in the long term. I know and trust in that if I make a sacrifice for the right reasons, it will turn out good in some way, shape, or form in my life and it almost always does. Delayed gratification has paid off for me big time over the years. Therefore, I do not shy away from these times in life, but welcome them and am prepared for them as best I can be.

I hope that you can learn to do the same. To embrace that life is full of sacrifices, choices we must make – and that as much as possible, we must make the right choice, even if it is hard, maybe even painful in some way in our lives. Just know that it is worth it. The pain will be short-lived and lead to a better, richer life, and make you stronger.

Hannah, don’t be afraid of sacrifice. Embrace it and watch for the good that comes from it.

I love you,

Daddy

Best Quote: A sacrifice is really a choice. Many times, it is a choice between what is right and hard, and what is easy.

Misfit 3:

1. When most people hear the word sacrifice, they think of it in a negative way. But I want you to know that sacrifice, more often is good and brings good into our lives.
2. A sacrifice is really a choice. Many times, it is a choice between what is right and hard, and what is easy.
3. Embrace that life is full of sacrifices, choices we must make – and that as much as possible, we must make the right choice, even if it is hard, maybe even painful in some way in our lives. Just know that it is worth it.

Show Sponsors:

Uber for Business: 

www.Uber.com/Misfit

Five Minute Journal

www.MisfitEntrepreneur.com/Journal

This week’s Misfit Entrepreneur is David Shriner-Cahn. David is the host of the wildly popular Smashing the Plateau podcast and his business helps consultants and coaches build their business following their careers as professionals employed in the marketplace. Simply put, David helps employees’ transition to thriving entrepreneurs.

He has been features in Forbes, INC, and many other outlets and is also a popular speaker. David’s mission to help people become entrepreneurs was born out of his experience of being a highly successful employee for 28 years only to wake up one day and be told it was over. He had to go through losing his job and identity to finding a new path as an entrepreneur and his experience and what he has learned can help so many that are in the same situation, so I’m excited to get into it.

www.SmashingthePlateau.com

David has a master’s in engineering from Cornell. He worked as an engineer early in his career and then transferred after a job loss to the not-for-profit sector. He had no formal training to become a not-for-profit executive and did that for 23 years. He had plateaued in the organization and could not become the CEO as he was in the #2 position. He decided that it was time to scratch entrepreneur itch he had most of his life and became a consultant.

He had built a network that he used to start his business.

What do you think is the hardest part about transitioning from an employee to entrepreneur? And talk to use about “chicken entrepreneurship.”

• The challenge with “chicken entrepreneurship” is deciding when you are ready.
• You real need to be mentally ready.
• The first step is the hardest piece for everyone.

What does that look like to be ready in your mind? How does someone know?

• Most of the time, you don’t know.
• It is when you have enough courage to jump and do it.
• What most have never done is the business piece – building and running a business day to day.
• The knowledge base someone has gained from their role over the years to solve a problem and set of problems is important to build your business around.
• You won’t know how to do everything, but you must be willing to work to figure it out as you go and take it as it comes.

Thoughts on the mind shift that has to happen?

• Its both a mindset and behavioral shift.
• If you are employee and are wrong 10% of the time, you are going to hear about it and not in a positive way. If you are an entrepreneur and right more than 10% of the time, you are probably doing well. It’s a big change to get used to.
• As an entrepreneur, you are going to try and fail all the time to succeed.

Is there a process people go through to manage the transition from employee to entrepreneur?

• It’s very helpful to have time for reflection and take some time not focused on producing income. You need time to focus inwardly.
• You can also see if you can get a role that is time limited, a short contract gig to pay bills while you get your business going.
• Step 2 is getting in touch with a few things about yourself and your impact.
• Understand what you love doing the most and are committed to.
• Get clarity on what it is you are most competent and doing – they may or may not be the same as what you love doing. Find the intersection of them.
• Then decide who you want to serve and what problem(s) you will solve for them.
• Next, do a little market research to determine there is a market and potential clients. Talk to them and see if they would hire you to solve the problem(s).
• You then need to test and start trying things and iterate.

Talk to us about the business side and running the business once up and going…

• How much money do you want to make? Margins matter because it is almost impossible to make up low margins with volume.
• You need to think about how many hours you want to put in. You can make more money, but not more hours.
• How much do you want your business to be about your own personal brand or not? How much is it based on you? This determines how you design things.

At the 27 min mark, David and I talk about why most people don’t get what they want… What are some of the best resources and tools you’ve found to help entrepreneurs?

• First, manage your processes with pencil and paper or typing out the steps.
• Pay attention to things that are repetitive.
• Once you track then, you can create systems that are repeatable around these processes so they can be handed off to others.
• Once you’ve done this, it will start to show what types of solutions you need to put in place for these needs such as technology, apps, virtual assistants, or assistants, etc.

At the 33 min mark, we discuss the #1 cause of business failure…

• The #1 cause is cashflow and managing it properly.
• Have appropriate cash reserves for hard times
• Sales is not cashflow. You have to collect the money.

Best practices around life/work design?

• We are whole human beings, and we need to integrate.
• It should all be working toward our higher purpose. So be very clear as to what this is.
• Clearly define your goals.

Other advice for entrepreneurs?

• Apply for credit when you don’t need it because that is when you are most likely to get it.

Best Quote: If you are employee and are wrong 10% of the time, you are going to hear about it and not in a positive way. If you are an entrepreneur and right more than 10% of the time, you are probably doing well. It’s a big change to get used to.

David's Misfit 3:

1. When you are faced with a major transition, take time for self-reflection. You will be much better off for doing so.
2. We do much better when we create structure. Most importantly, have a structure to create a positive mindset at the beginning of the day.
3. Be prepared to iterate. Breakthroughs are what others notice after you have taken hundreds or thousands of pivots.

Show Sponsors:

The Good from Caldera Labs

www.CalederaLab.com/MISFIT (allcaps)

ROI International:

www.ROIINTL.com/Podcast 

This week’s Misfit Entrepreneur is Anna Parker-Naples. Anna is he host of the #1 international podcast, Entrepreneurs Get Visible. She is the #1 best-selling author of Get Visible: How to Have More Impact, Influence and Income, and Podcast with Impact: How to Launch Your Podcast Properly.

She has been recognized as the National Businesswoman of the Year and finalist for SME’s National Entrepreneur of the Year. And if that is not enough, her audio skills have caught the attention of Hollywood and she’s been honored there.

But Anna’s story has some major twists and turns and what I love most about her is how she learned to blend strategy and mindset together to overcome massive challenges and achieve greatness. Of course, she’s not too bad at teaching entrepreneurs how to seriously grow their visibility and I can’t wait to get into all of this with her.

www.EntrepreneursGetVisible.com

Anna came into the entrepreneurial space a few years ago. 4 years ago, she was working as a voice actor receiving awards on the red carpet in Hollywood for her work. 6 years before that, she was told after a complication with a pregnancy that she would never walk again. To be fully recovered and at the top of her game on the red-carpet years later made her realize that others can do what she did and that there was a process to that success, so she started her business, podcast, and speaking.

How did you from being not being able to walk to walking on the red carpet? What was the transformation?

• Anna was as broken as you could imagine.
• Before having children, she was a stage actor.
• She could hardly get out of bed or function with the amount of pain she was in.
• She had a moment on a New Year’s Eve where she realized that she could no longer stay in her frame of mind.
• She went to a therapist. They talked and the therapist questioned her views of the world using NLP.
• This got her to think 2 things. What is she was in a wheelchair the rest of her life, but was highly successful and her work could still be seen all over the world? And What if the doctors are not right about your body and could heal itself?
• Thinking about those things sparked a new view on her potential and started her on her path.

At the 9 min mark, Anna tells a story about she was carried into a job interview and how it was presented to her to have a home studio to do her work.

At the 10 min mark, Anna and I discuss the power of the mind what working on your thoughts can do for you.

• It is a constant work in progress.
• Many of the things we tell ourselves are not true and are just limiting beliefs.
• What happens if you decide to think something different about yourself? You’d be surprised.
• Everything is choice in our lives. It is not rocket science, but it starts with how you think.

At the 14 min mark, we talk about how everything begins with an idea, a thought in our lives.

How have you learned how to blend your mindset with strategy to exponentially grow results?

• Anna uses the term “envisioning.”
• You envision everything. Where you want to be. Who you are clients are. How much you are making. Who you surround yourself with, etc.
• Podcasting is a great medium to get in front of the clients you want and also, as a podcaster to bring guests on your show that you want to network with and have in your world. Be strategic and deliberate about it.

Is there a process for envisioning?

• Yes, it is called the 10 Pillars of Purpose and Profit.

Listen at the 18 min mark as Anna goes through the 10 pillars.

• Good book called the Micro Pitch Script by Bill Slay to help you hone your message and how you connect how you impact and help others.

“Make sure you are not positioning yourself at the bottom for the heap. Strive for the top. There is much less competition there.”

Confidence is key to get visible, explain that…

• Everything is a choice.
• People choose not to put themselves or their content out there because they are not confident in themselves.
• But you have every right to put yourself out there and share your talents.
• Confidence comes from changing how you think and recognizing that is it ok and safe to fail.
• Be willing to be yourself in front of others knowing you cannot and will not ever be a fit for everyone, but you will for enough.

Talk to us about gaining visibility and things people should be doing to stand out…

• Podcasting is the fastest growing medium with the highest conversion rates, so you need to have a strategy.
• On social media, are you communicating a consistent message and story across your different channels?
• Use story to share more about you and let people in. Connect!

Best practices to start, run, and grow a successful podcast?

• It starts with solid planning.
• Get clear on your message, your target audience, your funnel, any products, etc.
• Treat the launch like it matters. It is a unique window of opportunity where the algorithms are on your side.
• Have good production quality.
• Have good audio. Invest in this.

What are some of the things you’ve learned about entrepreneurship and success on your journey?

• Everything is cumulative.
• Fail fast and continue as things build on each other.
• Realize the ripple effect of the impact you can have in the world.
• Think about the effect your message can have if you amplify it.

​ How important is playing the long game?

• No one is an overnight success and if they are, they most likely won’t stay there for long.
• You must take continuous action.
• Consistency and a long-term view are more important than ever.
• When it is worth it and about something more, you will have no problem making money.
• Money is nice, but it cannot be the sole reason for a business and just focusing on that will not sustain you – you’ll be unfulfilled and burned out.

Best Quote:  Make sure you are not positioning yourself at the bottom of the heap. Strive for the top. There is much less competition there.

Anna's Misfit 3:

1. Anything is possible. You just cannot necessarily see if for yourself yet.
2. When you allow yourself to see your potential without excuses or blocks in the way, you can achieve it.
3. It is ok to fail and go wrong, because that is when you can look inside, learn from it, observe what works and what doesn’t and then turn it around.

Show Sponsors:

The Good from Caldera Labs

www.CalederaLab.com/MISFIT (allcaps)

ROI International:

www.ROIINTL.com/Podcast 

This week’s Misfit Entrepreneur is Krista Ripma. Krista is the founder of the digital marketing agency, Authentic Audience, which helps transform clients’ businesses by implementing innovative marketing strategies focused on authenticity, storytelling, and selling the truth. She is also the host of the Authentic Audience podcast.

Krista and Authentic Audience have been featured everywhere from Forbes to Entrepreneur and her passion for helping others tell their stories and share their truth through radically honest marketing is un-matched.

Radically honest. We don’t see that as much as we should these days, and it’s important to make sure we are being true to ourselves and our businesses, so I asked Krista to come on the show to discuss what it truly means to be authentic and honest in today’s world.

www.AuthenticAudience.co

Krista has always been in to sharing stories and sharing stories. She studied communications and film in college and went to work in film in LA. But the whole industry was inauthentic. She loved the stories, the scripts she read, but the world around her was fake. She did all sorts of jobs and learned what it meant to work hard.

From there she went to working with TV networks in health and wellness. During this time, she met a Yoga star who needed help with her brand and Krista helped her grow the brand. She loved it and realized that is she is what she wanted to do. Help people grow their brand in an authentic way.

Define Authenticity…

• It is something that really cannot be taught.
• It is when you are in alignment and you know when you are.
• It is when you are walking your talk and being the person or brand, you want others to think you are.
• It is the lack of fear or doubt – just truth.
• There is a big difference between transparency and authenticity. As leaders, we have to pick the appropriate time to share things and be transparent – but we can always be authentic.
• Authenticity is standing in your truth and opening your heart up so others can do the same.

How does someone transform their business through authentic? What do they do?

• You have to answer the 4 most important questions.
  • Who are you?
  • What do you do?
  • Why does it matter?
  • What’s in it for me? (your dream client)
• Anonymous brands are dead. People want to know who is behind the companies where they spend money.
• We have to create personal brands within our bigger brands to thrive and succeed.
• The X-factor that sets your product or service apart is you.
• Customers want to “be seen” by you and feel like you see them.

What is working and what is not in marketing strategies and launches today?

• The biggest mistake is taking someone from awareness straight to the sale.
• The best part of marketing is the “consideration phase” which is the time you take to share who you are and what the value of your product or service is and establish credibility.
• What is working is a longer warm-up/consideration phase where you provide a ton of value before ever giving an offer.
• Consideration used to be about 7 days, now it is more like a month to do it right.
• Best practice is a longer warm-up and shorter buying timeframe.

Is there a formula that you use for launches?

• Krista has an e-book called the 90 Day Launch plan which breaks it down week by week of what needs to be done.
• You can get it at AuthenticAudience.co
• She discusses her process at the 20 Min-mark, and it is best to just listen.

How does someone get leadflow and build a list to market to?

• You don’t have to have a big list, but you need to have a way to build a list.
• You will have to invest, and you need the confidence to do so.
• Lead gen campaigns on Facebook work well – you have to give something of great value for free to be successful. Something that really speaks to your dream customer.
• LinkedIn is another great place to get leads. It has the most opportunity.
• YouTube is also a place to be if you create content.
• Growing your email list is by far your best investment.

At the 31-minute market, Krista gives her best advice on selling, both online and in general..

• Get your money mindset right.
• Understand the abundance of money around you and be careful not to let a scarcity mentality stop you.
• There is so much money out there, it’s everywhere and we are deserving of the piece of the pie as long as we work hard for it.
• After money mindset is the seller’s mindset.
• This is the confidence in what you are selling.
• Your dream customer is why you created your product and service, how can you not sell to them? If you don’t, you have failed them. They need it and are ready to buy.

At the 38 min mark, we discuss “asking for the business.” It’s best to just listen… Shifts in online selling?

• Major algorithm shifts. Much more pay to play. A lot of throttling happening.
• We have to pay to reach our own audience.
• Engagement is the secret sauce. The more engagement you have/time spent is the big X-factor right now.
• For paid media, the market is super saturated, and the competition is fierce. It’s also not more expensive to compete.
• In order to do well, you have to stand out in a bigger way and you have to innovate and figure out how to do it – even if that means being controversial by being authentic.

Best advice for entrepreneurs in today’s world?

• Get one customer. Launch the thing!
• Get real eyes on your site/product/service and get feedback.
• Forget about your logo. Focus on your product and service and the way you make clients “feel.”
• If you create an amazing customer experience; customers will tell others and you will grow by word of mouth.
• Pivot as needed because you will have to.
• You are always launching and pivoting – don’t rest.

Best Quote: Authenticity is standing in your truth and opening your heart up so others can do the same.

Krista's Misfit 3:

1. Stay in your uniqueness. It is your superpower.
2. Stay in service. Shift your mindset to that of service.
3. Self-care. Burnout is around every corner. Establish self-care rituals that help avoid burnout by any means possible.

Show Sponsors:

The Good from Caldera Labs

www.CalederaLab.com/MISFIT (allcaps)

ROI International:

www.ROIINTL.com/Podcast 

This week’s Misfit Entrepreneur is Harma Hartouni. After listening to Harma and his story today, you will have no excuse for not being able to keep going and reaching your goals. Harma grew up in Iran during the Iraq-Iran war taking shelter from bombs every night. He later had a traumatic accident that crushed his lower body and took him a year to come back from. And I will let him tell you about everything else that has happened to him in his life. But this guy never quit.

And today, Harma is a self-made millionaire entrepreneur and developer, owns a real estate company employing hundreds of residential and commercial real estate agents in Southern California, and runs the #1 ranked real estate business in his region. His real estate practice exceeds $1B in sales volume and he is also the founder and CEO of multiple companies servicing the local real estate industry, His businesses include financial services, technology and coaching. If that is not enough, he is the author of Getting Back Up: A Story of Resilience, Self-Acceptance & Success. Fittingly, those are the topics we are going to discuss in this episode.

www.HarmaHartouni.com

Harma was born in LA and within 30 days moved to Iran. Shortly after, the revolution happened and his mother lost all her rights and they were stuck in the country. At 18, Harma got into a car accident and did not get hurt, but when he got out of his car, another car hit breaking both his legs and mangling his lower body. He was not supposed to walk again. He did everything he could to get back to walking and was able to move to the US.

He ended up in Glendale, CA. He had a lot of struggles and it took him a year and half to become confident enough to come out to his family and reveal he was gay. He quit dental school against his families wishes to be a real estate agent.

He’s been in real estate for 18 years and his business now does over $1.2 billion in sales a year. His passion has grown to really building the business and he has the top agents in the nation working for him. He’s married and had 3 kids. ​

I’ve heard you say that “everyone is a survivor.” Explain what that means.

• Every single person has a story.
• Some are deeper, other not so much.
• Everyone has been through challenges.
• Understanding this helps you to appreciate not only them, but what you have gone through as well.
• Resilience comes from learning from the past and choosing to move forward.
• Everyone has gone through and overcome something in their lives.

You talk about not letting yourself become a victim. Talk to us about the difference between being victimized and being a victim.

• Run towards your fear. Accept it and own it.
• If you start doing that, you cannot be a victim.
• Harma has been so broke that he has been in place where he had no hope in anything else. He had not choice, but to find a way to survive.
• People that manage to become victims at some point were given a false hope. They were not pushed to move through their challenge or trauma.
• You cannot move forward by being stuck in the past.
• If you keep reading your last chapter, how will you write a new one?

There are of people in the same situation you have been in that don’t break out and reach their full potential and accomplish successes like you. A lot of people would just give into their state and accept it and stay there. Why didn’t that happen to you? How did you break out?

• This is one of the reasons he wrote the book with his lessons.
• Harma had a very challenging upbringing with his father. He had to think ahead. He had to protect his mom.
• But, his father was very successful, yet didn’t have followers. He would use people and burn through them.
• Seeing this gave him a why and purpose – not to be like that in his life. He was fueled by a mission to become more successful and bigger than his father.
• He was also fueled to be able to get his mom and family out of Iran and to help fund them in the US.
• Harma was fueled by gaining a better live for himself and all those around him.
• You must get in the habit of loving the journey. You must find the joy and meaning in it as you go through it.

At the 22-minute mark, we talk about the peaks and valleys of entrepreneurship What are a couple of your favorite lessons from your book?

• Unsolicited advice should not be welcomed. Don’t let yourself get derailed by someone else’s opinion.
• Seek advice from those that are successful and doing it and learn from them.
• The 5 Minute Funeral. We all have setbacks. Deal with them for 5 minutes and move on. Be fast to move on to a solution.
• Don’t get hung up on things. It does no good.

Talk to us about the principles you use to build a business…

• Harma failed miserably in his first business.
• You need to know what you are doing and have done it before you hire someone as you will be training them.
• You will need to understand all areas of your business – but you cannot be good in all area.
• Every talented person can do anything, but they won’t do it too long if they don’t like it.
• You must understand personality and what people gravitate to in their lives. A tool such as DISC will help with this. Make sure you have the right personality in the right role.
• You will have to be slow to higher, fast to de-hire, and be very careful who you choose to partner with in business.
• You are responsible for helping your hires succeed. Your job is to put them in the right role and give them the environment to succeed.
• Meet people where “they are at.”
• A magical question when having challenges with a staff member is “Knowing what I know today, would I still have hired them?” If the answer is no, then you need to part ways. If it yes, then you need to work through things together.
• You hire the people, and the people build your business.

Every year, your business does over a billion in real estate sales. Talk to us about selling in today’s world.

• You must know your market so well and know your ideal customer inside and out.
• It works well to niche.
• Develop a very unique value proposition.
• People don’t care how much you know. They care how much you care.
• Trust is at the core of a sale.

Thoughts on the real estate market at this time?

• Things will not continue forever.
• Rates are low
• There will be a period of correction because of the forbearances that people took over the last year and then will have to pay back.
• Banks are seeing people have hard times paying payments.
• It will not be 2006-2008, but will correct.
• The media is always 6 months behind – what you hear on the news is not current.
• Consumer spending will go up and balance out a correction over time – we will still need to go through the correction.

Best Quote: Run towards your fear. Accept it and own it. If you start doing that, you cannot be a victim.

Harma's Misfit 3:

1. 5 Minute Funeral. Spend 5 minutes dealing with a setback and then move forward.
2. No means not yet. Don’t give up.
3. Only listen to someone who has a proven record to guide you.

Show Sponsors:

ROI International:

www.ROIINTL.com/Podcast  

5 Minute Journal:

www.MisfitEntrepreneur.com/Journal

This week’s Lesson for Hannah

Hannah, I want to share something with you that I learned a long time ago but have been amazed at how true it is. There are a lot of things that separate top performers from the rest of those out there. What is that allows some people to do more, accomplish more, push further, and endure more than others or what people think is possible?

I talk a lot of about Discipline, Consistency, and Persistence or Perseverance and have called it the DCP formula. In my mind, the most important part of the formula is the P. Because no matter how disciplined and consistent you are – you will run into major walls or seemingly insurmountable challenges. And if you are not willing to persist or persevere through them, then you will plateau. You will become stagnant.

You see this a lot in companies. When they begin and really nail their product or service and model, they grow quickly and have enormous success, but many, after a while stagnate. Usually, it is after the founder or owner steps down or steps back. Apple was a good example of this. For many years, Apple was the upstart and was so innovative that it continued to nail the market with its products and grow. But, then after the “professional managers” took over and essentially expelled Steve Jobs from his own company, the company plateaued. It got stagnant and comfortable just making Macs. But others begin to make PC’s just as good or even better and the company started to wither to the point where its stock got to just a couple bucks. Of course, the shareholders blasted the board, and the company became a place of turmoil. Reluctantly, the company brought Steve Jobs back and well…you know the rest of the story. Steve reimagined the products and reimagined how to change the world with technology starting first with the iPod and then iPhone and so on.

The company had not been willing to persist or persevere through its biggest wall – the need to reinvent itself into a company with totally different offerings. But Steve was willing to and guided it through.

So, where am I going with this?

There is a rule that has existed throughout human history. It has been called many things, but the name I like for it best is the 40% Rule. In fact, the place where I saw it coined best was in a book from a Navy SEAL named David Goggins. ​

The Rule is pretty simple: When you think you’ve given it your all or are exhausted and your mind is telling you are done - Telling you that you cannot go further, you are only 40% done. You have 60% more left in you.

Wait, what? Yes, what I am saying is that when you feel you are most exhausted, and you have given everything – you still have 60% left.

How can that be? Because our limitations exist in our minds. I’ve said before that what you focus on expands in your live. The bible says, “that which gaze upon you become.” What we believe and tell ourselves becomes our reality. So, when our mind is saying we are exhausted and cannot go further – guess what happens? We don’t go further. But, what if when the thought pops into our heads that we cannot go further and have given it all, that we tell ourselves, “No, I haven’t. I am only just beginning. And we repeat that over and over as we take our next step, etc.” What will happen? We will not be done. We will keep going. Winston Churchill once said, “Success is stumbling from failure to failure with no loss of enthusiasm.” This is the essence of the 40% Rule. Keep going.

In my life, I have sought ways to seek opportunities to test this rule and expand my capacity to endure. I hope you will do the same.

One way I have done that is through Ironman racing. A full Ironman is a 2.4-mile swim, followed by 112-mile bike ride, followed by a marathon. Every race has new challenges. No just in navigating a new course, but the risks around you from others (look up Ironman bike crashes) and being pulled and stretched in completely new ways mentally and physically. For example, my last full Ironman brought completely new challenges and almost broke me until I remembered the 40% Rule. First, the swim was like no other in that there was a stinging jellyfish bloom in the water. Imagine swimming 2.4 miles navigating jellyfish, even in a wetsuit, getting stung on your face, feet, hands, really any exposed area. Then getting out of the water and getting on a bike for 112 miles with the pain from it and your body reacting to it while you ride.

I admit, it was my fastest swim ever! Then, on the bike the headwind picked up to almost 20 miles an hour, forcing me to have to work harder than normal to maintain my pace. And if that wasn’t enough, the original temperature for the day was to be in the high 60’s. Pretty ideal weather. Well, about the time I was ending my ride, the overcast clouds parted, the sun came out, and it shot up into the 80’s. Needless to say, after the swim, hard bike, and now it being 20+ degrees hotter, I was not feeling that well as I got start on my marathon. In fact, about 5 miles in. I started feel dizzy. I stopped running. I tried to walk but felt completely exhausted.

I have never not finished a race. Ever. But, in those moments as I sat down in the grass on the side of the road – every impulse in me told me to quit. My mind had all kinds of thoughts going through it. Things like “You’ve got nothing to prove. Don’t hurt yourself. Just quit. No shame in it.” Or “You’ve got another 21 miles to go, there is no way, etc.”

I sat there for 10-15 mins getting all the fluid I could in me. I could not even look at another energy gel pack. I was at my absolute limit. Or so I thought. I noticed the thoughts circling in my head and stopped them. I chose to get up and take the next step. I chose to embody the 40% Rule.

I wish I could say that I got back up, ran my best marathon ever and set a new personal best time, but that is not what happened. Do you know what’s worse than running a crappy marathon? Walking a crappy marathon. 5 hours later I crossed the finished line with my slowest time ever. I attempted to jog the last half mile and even that was ugly. But finished. I crossed the finish line and went straight to the med-tent. After some fluid and a little care, I was back on my feet. An hour or so later, I was pounding a horde of fast food satiating my unending hunger and feeling pretty good. In fact, I had plenty of energy – even though it was midnight and I had basically exercised for 14 hours.

It was in this moment that I realized how true the rule is. I had more left. A lot more. And now this lesson fuels me not just in my racing, but in business, life, and everywhere.

The 40% Rule is something we can and should all live by. We should push ourselves and our boundaries and learn to dig deeper and push ourselves further than we ever thought possible – because we can.

​ I think the real secret to success in anything lies in this Rule and we each have find it for ourselves and Hannah, I hope you find it in your own special way.

I love you,

Daddy

Best Quote: The 40% Rule is something we can and should all live by. We should push ourselves and our boundaries and learn to dig deeper and push ourselves further than we ever thought possible – because we can.​

Misfit 3:

1. The 40% Rule states: When you think you’ve given it all or exhausted and your mind is telling you are done. Telling you that you cannot go further, you are only 40% done. You have 60% more left in you.
2. What we believe and tell ourselves becomes our reality.
3. The 40% Rule is something we can and should all live by. We should push ourselves and our boundaries and learn to dig deeper and push ourselves further than we ever thought possible – because we can.

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This week’s Misfit Entrepreneur is Shawn Finder. Shawn is an interesting guy. He grew up as one of North America’s top tennis players and ranked 2nd best at one point. He was literally competing to be the next Andre Agassi. At age 23 that he was told that he had to decide whether to try and become a tennis professional or get an MBA. He chose a university education.

You see Shawn is an entrepreneur at heart and he knew that was his calling. At age 24, he started his first venture importing packaging and selling to retailers, but his real passion was selling. So he started a list building company to help salespeople called Exchange leads, grew that to huge success and then started AutoKlose which he just sold to Vanillasoft.

I brought him on to talk about his journey, what he’s learned, and how to get more leads and business.

www.autoklose.com

www.ShawnFinder.com

Shawn was top ranked tennis player playing world-wide and go to the age that he needed to make a choice to make it a career or go to school. He got his MBA in finance. And this has served him well as an entrepreneur. He started out working for a company as head of sales, came up with the idea for his first business, Exchange Leads, his 2nd day on the job and 18 months later had built it into his first company.

You’ve bootstrapped all of your businesses to success. What is your best advice on how to bootstrap a business?

• Shawn focuses on growing as lean as possible and focus on profitability.
• He outsources using Upwork and other mediums for resources.
• It is also important to be very strategic from the start.

Tell us about some of the pitfalls or things you would do differently if bootstrapping again…

• You have to find a balance between being profitable and using the money in the bank to invest in your business. Don’t keep too much in the bank.
• You are going to try a lot of things to grow your business or make it successful, be careful not to neglect things that are working and make sure you are investing further in them alongside all the stuff you are trying.
• Start SEO before even launching the business if you can – organic growth is a huge opportunity.
• Beware the personal ups and downs that come with having a successful business, but it not translating into personal success and income right away. You will delay personal gratification a lot.

Lessons learned going through the acquisition process?

• Always be prepared for an acquisition.
• Make sure your financials are up to date, accurate, and dialed in.
• People don’t acquire you just because of the money you are making or your MRR/ARR.
• You need to value every area of your business. Your team, your clients, your income, your IP, etc.
• Working capital is very important to understand in an acquisition.

At the 12 Min mark, Shawn explains working capital and how it impacted his sale…

• Working capital is deferred revenue. Revenue paid up front for services to be rendered in the future.
• It will be taken off the purchase price from a buyer.
• This impacts to valuation as it comes off the purchase price and can be higher than you think.
• Talk working capital early on in an acquisition process so there is no surprise at the end.

What did playing tennis teach you about success, business, and life?

• When Shawn was 18, he started teaching tennis.
• Training others and top executives opened doors for him and helped learn how to become more professional in communication and business.
• Networking through your passion(s) and connecting with others that have similar interested – and that can partner or help you is a huge opportunity
• Coaching others for money is selling and fighting to keep business, so it prepares you for success in a lot of ways.

Talk to about selling in today’s world? What works? What doesn’t?

• It’s getting tougher and tougher and things are changing very fast.
• The most important thing to leverage is LinkedIn. Being genuine and connecting on the platform is important to help build trust.
• The biggest problem is all that we are asking salespeople to do from a CRM, tracking, detail standpoint that they don’t have time to sell. Put the sale first.

What should people know about the CRM and lead management systems out there and how best to use them?

• Build a sales stack that has a lot of automation. Automate as much of the process as possible allowing for automate scheduling, etc.
• Get as much of the busy work out of the way for your people so they can focus on the sale.

Best ways to boost sales?

• Get outside the box.
• Use Video. Don’t just send an email.
• Persistence is now more needed than ever. Your job in sales is to follow up. The lack of follow up is the biggest reason sales are not made or lost.

Tips to increase conversion rates?

• Pre-qualify as much as possible.
• Determine the best buyers for your salespeople to speak to and show your products to.
• For others, put them into a nurturing sequence or schedule them out with a scheduler software into the future.
• Look for every way you can to cut wasted time out of the sales process.

You have an E-book with over 25 entrepreneurs and sales leaders. If you had to pick the top piece of advice from the book what would it be?

• Building trust is the #1 thing for selling anything.
• Do you research ahead of time and know about your prospect.
• Discuss their pain and get 2nd, 3rd, and 4th levels deep to truly understand it.
• Don’t solution right away. Listen, get feedback, gain an understanding, and work with them to help them see why you are the right fit. It is their decision. Don’t “sell” them.
• Follow up, but follow up across multiple channel.

Best Quote: People don’t acquire you just because of the money you are making or your MRR/ARR. You need to value every area of your business. Your team, your clients, your income, your IP, etc.

Shawn's Misfit 3:

Invest in real estate at a young age. It is a great investment over the long term.

Bootstrap your company lean and profitable. Build a team that has an amazing culture.

Don’t focus on hiring quickly. Hire people you would hire into your family.

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This week’s Misfit Entrepreneur is Brandon Fong. What if I told you that at any point in time, you are one connection away from huge growth and success in your career or life? Just one connection. Would you believe me? Brandon does…because he has proven it – not just in his own life and businesses, but for the thousands he has helped realize this power in their own lives and businesses.

Brandon is the founder of 7 Figure Millennial. He’s been featured in Fast Company, became the youngest member of the Genius Network with Joe Polish and elite millionaires at age 22, and has helped build multiple 7-Figure marketing operations. He teaches people how to deeply connect and develop real, authentic, and meaningful relationships with people – virtually.

In the current climate we are operating in as entrepreneurs, this skill is invaluable, so I asked Brandon to come on the show and share all of his secrets with you.

7 Figure Millennial Podcast

Brandon-Fong.com

Magic Connection Method Gift: BFO.NG/Misfit

Brandon’s entrepreneurship journey started in middle school. Each day when he went to pay for his launch, when he went to pay, on the screen it would say $0. The reason being is because he qualified for the school lunch program because his family was very challenged financially. It frustrated him and drove him never to have that problem. His parents did everything they could to nurture this in him and taught that many times success comes from being resourceful. And you can be insanely resourceful if you know how to connect with people.

His parents would let him skip school at 16 to go to networking events to meet, learn from, and connect with successful people.

Every time Brandon has leveled up in his life has been because of someone he has met and connected with. He also learned to prioritize health, happiness, and relationships alongside money.

Talk to us about being just one connection away and how real that is for people…

• The people you look up to are a lot more accessible than you think they are.
• Just because someone has large success, doesn’t mean they are not open to connecting with you.
• You just have to reach out. The worst thing that can happen is that nobody replies.

Tell us about the Magic Connection Method. How does it work?

• If you reach out in a real, genuine way, you will stand out in today’s world.
• The Magic Connection Method is a process Brandon Developed that has 3 parts.
• The goal is to get someone to respond and open the door to have a relationship.
• Step 1: The Hook
• The biggest mistake people make when reaching out to others is they make it about themselves instead of who they are contacting.
• The goal of the hook is to make it about them and connect with them in a genuine way in which you are interested in them and can talk to specific reasons why.
• Step 2: The Irresistible Offer
• “A compelling offer is 10x more convincing than a compelling argument”
• Example of normal offer vs. an irresistible offer is the new mattress companies that let you sleep on the mattress for 100 nights and if you are not satisfied, you can send it back and get your money back – no questions asked. It’s a win, win compared to going to a store and buying a mattress and hoping it works out.
• For your irresistible offer, ask “How can I show that I care about them, minimize risk for them, give them a lot to gain, and make it easy to say yes.”
• At the 19 min mark, Brandon gives an example of how he worked for free for a short while with Jonathan Levi.
• Step 3: The “No Oriented Question”
• When you say yes to something, you are giving away something
• The exact opposite is true with saying “no.” It is choice.
• A “no oriented question” may be something like “Would you be opposed me to doing x”
• It is giving them the opportunity to say no instead of trying to force a yes.

You’ve said you can help entrepreneurs uncover $100k+ in their backyard, explain more on this…

• There is lots of untapped potential in a business. It just needs to be found.
• It goes back to the Magic Connection.
• Identify your best client
• Refine the offer to be irresistible
• Communicate with clients and prospects in a better way and you’ll get better results.

Talk to us about the steps you take in a business to create a world marketing program?

• It takes a systematic process to genuinely reach out to people.
• Business is people at the end of the day.
• The Magic Connection Method is key.
• One exercise is to identify your top 5 customers that are the best and most profitable and who the top 5 worst customers are that are not profitable and drain time.
• Once you have the profile, you can then create an irresistible offer that is tangible to best buyer prospects.
• Track everything so you can see the response rates, engagement, etc.
• Start small in your outreach, see what works and what doesn’t, then scale from there.

What are some of your best practices for how to build lists and find good leads?

• You have to have a solid client profile and decision maker profile.
• Then you can use tools like LinkedIn Navigator and Search
• There are people that scrape lists for specific industries, etc.
• There are a lot of resources to use and you can search for ones specific to your buyer and industry.

What’s the #1 piece of advice for a new entrepreneur starting out?

• If you ask for money, you’ll get advice. If you ask for advice, you’ll get money.
• This is about feedback more than advice.
• The Ikea effect. People value Ikea more because they had to do the work and build it.
• How can you become the piece of Ikea furniture to invest in? Asking for feedback, taking it, and then reporting back on the success of it being grateful resonates.

At the 40 min mark, Brandon talks about prioritizing happiness, health, and relationships.

Best Quote: A compelling offer is 10x more convincing than a compelling argument

Brandon's Misfit 3:

• You are one connection away from leveling up. People are way more accessible than you may think.
• Clearly understand what happiness means for you. There is nothing in the way of your being happy right now. Define it for yourself. It’s a choice.
• If you ask for money, you’ll get feedback. If you ask for feedback, you’ll get money.

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This week’s Misfit Entrepreneur is Mark Tepper. Mark is a highly successful entrepreneur in the financial space and multi-time INC 5000 winner. You probably have seen him weekly on CNBC and Fox Business where he’s known for his no-nonsense, direct approach. I personally enjoy his honesty, willingness to stand on his principles, and insights and use them in my investing business.

Mark is also the author of 2 best-sellers, Tilting the Odds and Walk Away Wealthy.

But, what I love most about him is that he is an entrepreneur to the core and is a fierce competitor before anything else. And I’ve asked him to come on and share what he’s learned along his journey, his thoughts on how to navigate the crazy markets in today’s age, and what he sees for the future.

www.SWPConnect.com

Twitter: @MarkTepperSWP

Mark grew up an entrepreneur at heart. He’s always been very competitive and as he says, “I would not make a great employee.” He came out of college and started his own business. He loves how rewarding it is to own his own business. He loves the wealth management business because he has a scorecard every day he shows up because he is either performing or he is not.

Tell us about your philosophy on investing and how to succeed as an investor?

• Mark’s free eBook on his website called Tilting the Odds breaks it down if you want to get it.
• There are 3 main things Mark and his team look at
• The first is the management team. Mark and his team look for quality management teams that have tenure and consistency.
• The second is that the company has to prove it has a sustainable growth story either in the market they are serving or other areas and that is has run room to continue to grow and not be a “1 hit wonder.”
• The third is price. You must discipline and not overpay for growth.

At the 8 min mark, we talk about the recent event with Gamestop in the market and how it related to entrepreneurship. Its best to just listen.

“Every single lesson I have learned from the stock market can be applied to running a business”

Talk to us about the business of investing and financial planning. What is most important to know about the industry and what should they look for in an advisor?

• The industry is a lot of smoke and mirrors.
• A lot of “wealth management” companies are just salespeople that are really glorified middlemen.
• Most do not have a strong value prop or competitive advantage.
• Mark and his team are active investors who have sought to have a strong value prop and a competitive advantage through their processes, reinvestment into the company and technology.
• The best question to ask a financial advisor is “What separates you from your competition?” If they can’t easily answer that, then they don’t have a separator.
• The next question is “What is your investment philosophy? Active? Passive? Investment vehicles you use?
• Lastly, ask “Are you a fiduciary?” Fiduciaries are required back law to put your best interest ahead of their own.

What should people know about today’s market and what should they be preparing for?

• Liquidity and money printing have been a huge driving force behind the current market uptrend. Trillions of dollars are flooding the market.
• It is long term very unhealthy.
• The insider buying activity is down. Executives internally are not buying more of their company stocks because they are at all time highs.
• M&A activity is expected to slow in 2021 because companies don’t want to overpay for acquisitions.
• But, until bond yields go up, there is some runway. It depends on the Fed actions, Treasury actions, etc.
• Stocks are still attractive compared to bonds.

Advice for new investors and those just starting out?

• Have a process and stick to it. Be disciplined.
• You should go into any investment or any trade, you should know ahead of time how to unwind that trade.
• If you are not willing to be disciplined and have a process, then it’s maybe best to just use index funds.
• Check out the book Unknown Market Wizards
  • They all got lucky in some way
  • They all had a system

What are the principles you’ve taken from investing and used to build a business with?

• Begin with the end in mind. When you buy a stock, you need to when you are going to exit and have the strategy.
• The same goes with a business. As you put together your business plan, you should also be preparing your business to be able to be sold as well.
• If you do that the right way, you will build a very efficient, profitable business.
• Know what the end looks like as you get into your business.
• Systematizing every is so important.
• “Nobody ever went broke taking a profit.” The more you can play with the house’s money they more successful you will be.
• Build liquidity for the rainy day. Set money aside. Don’t think you are invincible.

What has surprised you most on your entrepreneur journey?

• Having to make lots of BIG decisions along the way.
• You have to be able to think multiples of steps ahead.
• The more you put into it, the harder you are willing to work for it, the better your results will be.

What companies have your found through your model that you are liking right now?

• DMTK – Revolutionizing melanoma testing
• SI – Fintech Banking Services for the companies like Coinbase and others that the regular banks don’t.

Best Quote: "Nobody ever went broke taking a profit" Mark's

Misfit 3:

1. Live in the present. This is the most important thing that can be shared.
2. Begin with the end in mind…always.
3. Realize that success is something different for everyone. Create your own standard for success.

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