One of the most fundamental skills that can not be taught is having Street Smarts and basic common sense. You either have it? Or you don’t. When things don’t go your way, and often they don’t? You must get fired up. And go after your goal. Whatever it takes. Sometimes I get so stressed about my mission not proceeding fast enough I become flustered and begin drifting into territory that feels extremely unnatural. But my common sense comes back to me after I decompress. So let’s get on with today’s lesson. “Never ever allow anyone the satisfaction to impose their will upon you, or never allow them to push you around!”
No NO! If your like me as a Entrepreneur you end up having to do a lot of out reach and contacting people you do not know. And here is a common theme. Crickets.
You don’t hear back nor do they give you any courtesy of returning your message or phone call. What can you do if this happens to you? Well there is a lot you can do. But for todays lesson is about hustling the streets and having common sense. So let’s get on with what todays lesson is all about. Common sense! Here is what you should do that is basically obvious. And weirdly many people surrender and choose not to do this.
Some people have called or labeled me ” mildly and strategically Crazy.” But in all honesty? You have to be if your a successful Entrepreneur. I literally will jump on a Airplane or Hit the Streets of New York City and track down the Influential Business People that I need to get in front of. Look! People are busy or just Distracted. It pays to go show up on their doorstep and say….”Hey! I found ya!” Look I hope it wasn’t a ridiculous idea to come ask you this?”
New York City Hustle | Hitting the Streets
You probably want a story of how I secretly can make everyone who is influential give me attention if the ignore me? Right? Ok. Here is a Tip! Go Knock On Their Door. Ok that may only work for a handful of you. But if you do not have big brass Kohonas? Your probably not cut out to be a Entrepreneur. Sorry. Not Sorry.
Honestly “YES! I do have other options for problems like this. But if you want access to tips like that? You have to schedule an hour coaching time with me and then we work on that problem together. Minimum of 2 hours up front. And if your thinking about my street smarts and common sense? Absolutely”I have other ways. But that won’t be revealed here. Please email me for Coaching. Go ask people who know me if I am worth the cash? I bet they will shock you.
Business Salesmen and Entrepreneurs
If your a Entrepreneur like myself? You only got three options when deciphering or understanding people’s behaviors in business.
If someone say’s No Thank you. That does not mean you get to be a entitled jerk back to them. Be confident and hopeful with your attitude. Be pleasant. But be persistent. I do understand most people do feel uncomfortable when forced to the bargaining table. But its your job to make sure they are comfortable. To the jerks who want you uncomfortable? Make sure they don’t see you sweat.
If you are forced to the Bargaing table. Know you can walk away. You don’t have to agree to anything. I have to make this very clear to all of you’s.
You Have To Be Able To SAY…”NO!” and learn to negotiate.
Never allow anyone to push their will or position on to you! Mark Cuban has given me personal guidance on many occasions and reminded me people are sometimes Jerks. And sometimes they are testing to see if your weak. Try not to take It personally. Stay off Social Media!! Its rigged. Pay someone to promote you. You have better things to do anyways.
If you can not say “No” to people? You will be enslaved or end up doing something you do not want to do. It’s that simple. So the next time someone push’s their opinion or will onto you? You can let them be tyrannical and agree to do whatever they ask. B. You can shut up and be misarable. C. You can let them think they are getting their way. And walk away. Or D. You can negotiate!
Either way you do only have one choice. “What’s best for you.”
Enjoy and I hope you learned something here. It’s not much for today. But at least it’s something.
What is the elusive often misunderstood Trust. Wealth Management Topic
A trust is a contract that gives an individual or an institution—like U.S. Bank, for example—the authority to hold legal title to assets while managing them for the benefit of others. Trusts can help you ensure that your assets are distributed and managed according to your wishes. US BANK Rich Snippet
I would like to introduce you to Trusts and the history and also how they are used in Banking.
In the 12th century and middle ages of English Knights whom were about to go on crusade needed a safe place to keep their wealth and have it benefit someone else “IF” they were captured, tortured and placed into indentured servitude for the rest of their short lives. So wouldn’t make sense to have a place to have all your wealth act like a “Will” in a way? Of course. So they would go to the London Finance Center which is a little Banking Town inside of London the City and its sole purpose in this small finance town is to act as a separate entity to ensure personal Land, Assets, and wealth was taken care of and used in the correct manor under English Law. These stewards in Banking were often bound by law so nothing could ever separate the Beneficiary from the Assets.
The legal owner would hold the land for the benefit of the original owner, and would be compelled to convey it back to him when requested. The Crusader was the “beneficiary” and the acquaintance the “trustee”. The term “use of land” was coined, and in time developed into what we now know as a “trust”.
Click on Image For Wikipedia Page
The Beneficiary is the person who is entitled to the benefits and entitlements of the TRUST. Now with this said. Beneficiary’s do not “OWN” the TRUST. They are the Beneficiary of the Trust. Trustee’s are the legal stewards of the land or Assets. Often times Attorneys have their own Trusts being officers of the courts in United States.
Is a beneficiary an owner of a trust? In legal jargon, trust and will attorneys refer to Trust beneficiaries as the “equitable owners” of the Trust. Beneficiaries will receive money and other assets from the Trust either outright (meaning being paid all at once) or in smaller amounts over time, based on the provisions in the Trust document.
Thanks for reading, we hope you found this useful. Use the links if you would like to know more.
If your a Entrepreneur you better believe you will be under the microscope financially when handling other People’s money. And this is how you stay safe and stay lawful in the process.
First you need to understand my tone when I am writing this Post. It’s serious fucking business. Admittedly I am known for not being a push over and being a little edgy at times. But someone must demand excellence from others. The Military was responsible for beating this into me. So if your sensibilities are chapped or offended? Maybe you should not read this article. And this article is NOT LEGAL ADVICE.
Many entrepreneurs do not stop to consider how their ignorance, and inflated ego is causing their own limited growth or certain failures. If you are pandering to the general public for social media likes. You are not fooling anyone. As a matter of fact you are alienating real business opportunities and real qualified investor opportunities.
Real business people in your community are always watching your every move. They know a fucking Fraud from a real struggling take no prisoners entrepreneur. There’s wealthy individuals, Investment Partners, and finance professionals in your community who are incredibly sophisticated financially. They know a real authentic Entrepreneur from a social media fraud.
Live by this advice. Be authentic, be incredibly generous and politely carry yourself with absolute class. Watch your movements and how you do business. Have some pride and help your community.
If your in the column of qualified or Accredited Investor from the SEC? And you would like to share your informed opinion with me how I am right or wrong in this Post? Im positive I would be open to it. Please Email me. 🙂
And if you have read previous posts from my Blog? It can not be stressed enough. How important recruiting a successful community leader and Mentor is! It’s so important you will be doing yourself a disservice if you do not recruit a mentor in your community.
Still most Entrepreneurs do not know what they are doing. So If you do not know what your doing? Recruit professionals who do know what they are doing. This post is meant to keep your professional reputation intact. And keep you safe from criminal investigations that may end with you locked up in a jail cell and labeled a fraud in the local Newspaper.
What you should not be doing?
The Following suggestion of mine, is what you should NOT be doing if your a Entrepreneur who is seeking fundraising for your new startup. If you want to be successful? The following strict bullet points are suggestions you should take to heart.
A. You should not be approaching wealthy community members with a idea that has no proof of concept.
B. You should not be selling yourself with the next FACEBOOK idea to the wealthy in your community.
C. You should not be accepting any checks or money from anyone in the community without a team of pro’s.
Under “NO CIRCUMSTANCES” do you ever fundraise in your community alone with just an idea. This will always end badly and if you ask me? Is tantamount to criminal fraud in the highest degree. You have no business taking money from anyone and managing funds in a business checking account if your a new fresh entrepreneur. Are we on the same page? GOOD!
If you are not humble and not reliant on Business Professionals? It’s likely you will end up on American Greed as a failed Entrepreneur and Criminal. So do everyone a favor. And do things the right way. And for “God’s Sakes…Don’t be a Instagram Playboy. That Screams Your A Fraud and Criminal. Your Welcome.”
What steps should you be taking as a Entrepreneur?
You should be interviewing Professionals in your community for the right “fit”!
Before we can advance, I need to drive home the importance of this step. This will provide you a few professionals you will need to recruit if you are starting a business. This formula will not fail you and using this formula will keep you safe legally. It will absolutely boost your community presence as someone to take seriously and will begin to create a positive buzz about your business venture. So please take my advice and use it. It pays massively overtime and will begin to make you a trusted community voice and leader.
The reason I lay this out here is because..Many people in your community will dismiss you as someone to take seriously. In todays environment of Bull Shit Social Media Posts and Online Con-Men and Con Women? If your not squared away with a team of Professionals. People will gossip about you. And will privately call you a Fraud and speak poorly about you. Until proven otherwise.
This post is meant to give you the Entrepreneur real direction on how to fundraise and become a success. Their are literally so many criminals and frauds in the business entrepreneur environment and on social media. You will likely be judged as just another “CON MAN OR WOMAN” until people can clearly see your helping your community with a team of professionals in tow. So beware.
Recruit a Business Attorney
First step in your business entrepreneurship career is to interview and recruit general advisory legal counsel. Having a Business Attorney close to you will ensure two things. You stay out of legal hot water, and you will have an established advisor help you negotiate decisions in business. This alone will negate most of the problems you face in business. My personal Attorney is a Bad Ass. We have worked on a Inner City Mayoral Political Campaign in the past. He is Corporate Counsel and always available when I need him. And honestly speaking? Also available as a Team Mate when I visit and am invited to high class Cocktail Business Receptions with our City’s elite.
The benefits are 100% GOLD! Your counsel’s advice will help you along the journey. Keeping you safe from making stupid mistakes. And when it’s time to start accepting checks form Investors? He will know how to create Legal Documents to keep you safe from legal action or worse. Criminal Investigations.
Difficulty of this process?
Look everything has a downside. I am not saying call up your local Big Law Firm and try to recruit a $900 an hour corporate attorney you don’t already have a relationship with? Not what I am saying! Find a small Business Attorney in your City someone you already know who is a trusted Business Attorney or Someone you trust to introduce you to a Attorney. Telephone the Attorney and go to lunch. Be prepared and ask relevant questions. Look for the right fit for you. And establish a trust based Relationship moving forward. It’s too easy for you inexperienced name to be dragged through the MUDD by not having the right professionals around you. Capesche? Good!
Small Trusted Local Accounting Firm
Ok let’s say you have began your Entrepreneurial mission, you have been preparing the community for fundraising. Your next step is to begin searching and visiting small local “TRUSTED COMPETENT” Accounting Firms. Having a small trusted and competent accounting firm to handle all financial aspects of bookkeeping and payments is extremely vital and a cornerstone to your success as a Entrepreneur. If you will be handling any money from Investors? Your small accounting firm and your local general counsel need to be working with you and together. If you accept a investor check from anyone you need these 2 people at that table. Or at the bare minimum involved. A. Your General Counsel and Attorney and B. Your Local Competent and Trusted Accountants. I would also have the meeting at the Office of your Attorney or Accountant. This is my advice.
This will prevent you from having any problems moving forward. But if you want to play it safe and keep your reputation from being dragged through the mud? You must take this advice and use it. And for the record you should already have a business plan on the table before you accept a check from any investor. It’s just good business. Many entrepreneurs who do go the start up route? Do not understand that it’s foolhardy to sell a start up idea with no numbers or no proof of concept. If I were you? Don’t ever sell a Start up idea with just a piece of paper and a idea. Never approach investors with just a piece of paper and a idea.
YOU NEVER HANDLE FUNDS ALONE
Let’s say for instance your Business is on it’s way to being a start up. Since your startup business is it’s “OWN ENTITY”. The role of the Controllers? Controllers are the people inside the business with authority to approve or deny spending of funds for your business entity. You will need A. A Controller who’s integrity is professionally sound and someone that has previous experience. And B. You should in good conscience stay away from handling funds alone. Always have another signature and confirmation for spending funds or approvals. To play it safe? You should have at least 3 individuals who are responsible for the spending or denial of dispersing funds. And at any time 2 of these individuals should give permission for the business to spend any amounts of money over say….$500 dollars. This keeps you safe as a entrepreneur and will keep you legally out of trouble.
I would choose 2 Accountants as fellow Controllers of the Business checking account. This is the safe route. And will ensure your business is safe at the end of the day. I can not stress enough how important accountants are to your business. Because you will need to pay your Employees and need to file “TAXES”. So they are extremely important to your startup business.
Here is another reason I suggest having a trusted local Accounting Firm as partners in business? They will invite you to spend time with other Business owners. This begins to establish your trusted name in the business community. And if you ever need a referral to another business professional in your community? They are there to help.
In conclusion you likely are beginning to see how important it is to have professionals in your business career. If your going to be handling other peoples money in Business and as a Entrepreneur? It is mandatory you use this post as a rough blue print and direction you need to take to A. Stay Safe Legally from Criminal Probes, and B. Building your Professional Reputation as someone Trustworthy in your business community. Because all things considered to many Entrepreneurs I meet “HAVE NO CLUE HOW TO RUN A BUSINESS” or are “Financially Illiterate”. This will help start you on the right track and begin to help you move in the right direction as you stumble along as a Entrepreneur.
If you have been planning to make the move into the Private Equity space, your probably wondering “How can you get a Job in Private Equity?” Right? Well this post is all for you!
I imagine many of you who visit this Post. Are currently working as an associate at a large New York Bank or Financial Institution? Or maybe your a broke college student that just finished earning your MBA and your wanting to get in the door for Private Equity? Great news for you. What I am about to share with you. Comes from experienced Private Equity Partners and Professionals who have been there and done that! So let me introduce you to a Youtube Channel I have been watching on this subject. It’s that good!
I need to introduce Mr. Peter Lynch. Who is Peter Lynch?
According to his website “A Simple Model”, Peter Lynch, is previously a founding member of the investment team at Hilltop Opportunity Partners (“HOP”), a merchant banking business launched by Dallas-based Hilltop Holdings Inc. (NYSE: HTH). Before joining HOP, I spent 8 years working for Argenta Partners, a private equity firm focused on control-only equity investments. From 1989 through 2016 Argenta achieved a cumulative annual internal rate of return for all invested limited partner funds of 27% net of GP carried interest and fees. Prior to that, I worked with the M&A team at Rabobank International in New York City, and with JPMorgan in Buenos Aires, Argentina and in Santiago, Chile. To prepare myself for the professional world I attended the University of Pennsylvania.
To drive home how important it is to get your foot in the door for Private Equity? I would highly suggest you watch this One on One interview between Peter and his friend Brett. Brett is a Partner of a Private Equity firm, finished his MBA at Columbia and has risen in the Partnership of his own private equity firm. Watch the video and take notes to gain an edge on “How to get a Job in Private Equity.”
In this video below you will learn a few things and “How to’s”
-Develop a network for getting in the Door.
-Follow Up on past opportunities while simultaneously developing a relationship.
-Fast tracking your way to succeeding in the Private Equity Space.
-What you need to commit to and how to make things happen for your interviews.
To learn more about Private Equity? Please visit Mr. Lynch’s Youtube Channel (CLICK HERE!)
Take it from the Private Equity Pro’s who have worked and risen in Private Equity. this. The video interview below is a must watch, if your wanting to learn “How to get a Job in Private Equity?”
I do hope you enjoyed this interview as much as I did. This entire interview was fantastic.
In conclusion please be sure to go check out Mr. Lynch’s website all about Private Equity “A Simple Model” I have to include the brilliant training Mr. Lynch offers and teach’s on his Website. Its a training website for Financial Professionals in Private Equity.
Thanks for coming by, I hope this brings you incredible insight and value like it did for me.
If you are a Entrepreneur, Accountant, Tax Attorney, Businessman or Wealthy Individual you already likely know what the 6 Assets you should list on your Financial Statement? Great! But if you don’t know? Maybe this is an article you should read. Because I am going to dive in and share what these 6 Asset classes are?
The six asset classes you want to include on your personal Financial Statement is not only Real Estate property income. But it’s also other income streams like Stocks, Bonds, and definitely NOT your home. We will dive more into this later. You will want to stay tuned because I am preparing you to become a Financially Literate confident business player.
Ok So I appreciate you showing up and reading my Blog post, I do believe I am beginning to have a few heavy hitters from Wall Street read from JP Morgan. I appreciate you guys. 100% And I Thank you. So back to business here. What are the 6 types of Assets Accountants and Business Personalities list on their personal Financial Statement?
Let’s start with an activity as we dive deeper into this thought of what is the six Assets a business individual needs to list on their Financial Statement? And by the way when you finally have enough money and assets to fill out a Financial Statement that day when you see it take shape is liberating. Absolutely. If your just realizing one day that you Made a Million Dollars in one year? This video by Patrick Bet-David is for you. Watch It!
Ok let’s get back to Asset’s. What are the Six Assets types you should list on your Financial Statement?
Bank Accounts
Bank Accounts mean your Personal Bank Accounts, not your Company Bank Accounts. It should go without saying that Commingling Bank Accounts with your Company’s money and Personal Money should never happen. I hope I don’t have to explain. It’s just bad for business. Capeche? Great Moving on.
2. Stocks
Do you have Stocks in the S&P or an Account with Charles Schwab or Edward Jones? Or even Robinhood? Then you will want to individually list each in Subsections on your Financial Statement. I hope your learning this is the Big Leagues.
3. Receivables
If your a business owner or you have personally loaned money out to your Community your going to want to list Receivables. To take this definition a bit further and be more politically correct with the Accountants who will read this. I grabbed this definition from a reputable source online. Receivables is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. (R) is any amount of money owed by customers for purchases made on credit.
4. Real Estate
Ok this one could be tricky for most who are out there and do not have an Accounting Background. But when your listing your Real Estate assets on your Financial Statement you need to list them correctly. What do I mean by this? We want you to list your Real Estate Assets in a selected manor. Meaning take the Fair Market Value of your Real Estate Asset and write this number down. Now make sure you do not include the sum of the Mortgage you still owe on the Asset or Property. Make Sense? Ok Good! Speaking of Real Estate I want you to go check out this Madman named Ben Mallah.
Ben Mallah’s Youtube channel all about Real Estate is surely to entertain you with how crazy it is. LOL Here is a video from his Channel. Between you and me, I have told Ben several times how much I appreciate his crazy Youtube channel and him as a Investor. He is a solid Big Loveable Bear! LOL Ben taught me personally about 1031 Exchanges and Deferred taxes. These topics will be a post all on it’s own.
And for our last 2 Asset type’s you should list on your Financial Statement? Drum Roll……!
5. BOND’s
It should go without saying you should list your Bond assets on your Financial Statement. After all it is a legitimate Investment Asset. What is the proper definition of a Bond? I grabbed this online and this should help with describing this asset class. Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is referred to as a fixed-income instrument since bonds traditionally paid a fixed interest rate (coupon) to debt holders.
If you need to brush up on the How the Bond Market Moves and Operates? Please be sure to check out my former post on the subject. Here!
6. Business Value
When sharing this Asset type on your Financial Statement you should consider that you want to share the (NET) Value of your Business. What you listed on your Tax returns. NOT what you think it’s worth. To many business owners I meet have a value that is unrealistic. And fail to consider thier EBITDA and other costs. It becomes a big mess in the end and certainly lead you down to having unrealistic expectations. Be honest and be straight about your Busienss Value. That’s the smart play.
What is the definition of Business Value? It is the standard value measure used in business valuation. A Partner with PWC shared with me today, business value is the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, stockholder equity, fixtures, and utility.
In conclusion you should have picked up some good information from today’s Article and Post. Generally speaking if you look at the Cash flow, and asset patterns on your Financial statement and the Assets you list on this Accounting form you can see where your lacking and where you should add a little value of shore up weaknesses. Thank you so much for reading and IF you have any questions or Requests? Please email me at [email protected] and please tell me if I am missing the mark or really making a difference? I love helping others in Business. In fact with so many people who did not help me and blew me off? I feel it’s my duty to be open to helping others.
Thanks everyone Take Care – Please Comment, Like, and Share. And I will catch you on the next artcle.
Edward Segal for inviting me as Sr. Policy Advisor in the #Kansas House of Rep. Who knew the Good Senator Bob Dole as a Jr. Political personality.
And as a fellow Veteran, and Conservative from the Sunflower State of Kansas, I shared a #leadership lesson we all can take from the good Senator.
Excerpt from today’s article…..
March Forward
Jameson Sharp is a former senior policy advisor in the Kansas House of Representatives and now an investment group partner at Neptune Capital. He observed that, “Bob Dole’s heroism and leadership to serve his fellow Americans did not stop on the battlefield of World War II. It continued onto the Senate and onto when he ran for President of the United States.
“Every business executive in Corporate America could certainly take this single important leadership lesson and put it to work right away. And that lesson is to keep marching forward through the fear, uncertainty and the painful result of defeat. Because on the other side is what we call personal growth.”
I learned about the Bond Market Today and now I must share what the Bond market is and how the Bond Market operates. Questions that come up about the current Bond Markets? Is all this Cash Debt toxic? Will Interest rates be going up? How many Companies were Downgraded in 2020? Since this post will probably be very dry and boring to most who read about Wall Street? I might as well spice it up with a little flavor. LOL I must remember a Hilarious Jewish Comedian whom I literally Idolized as a young man and still love to this day. “Rodney “No Respect” Dangerfield” The king of one liners. LOL
Rodney Dangerfield was born Jacob Rodney Cohen in the Village of Babylon, in Suffolk County, Long Island, New York, on November 22, 1921. Here is a one liner from Mr. Dangerfield to get you in the mood of talking big Money and Big Debt in the Bond Market. “Sir. I talked to your wife today and I must share I really don’t like you.” Rodney respond’s “Good! Great!! Congratulations….I don’t like myself sometimes. You can keep her!!!” Cue the symbols background noise! LOL Oh, By the way! I would love to take this opportunity to share Happy Hanukkah with everyone on this last day of the celebration.
I must share it is really fantastic to have Sidley & Austin associates here on location. And especially for these Attorneys being my very own Professors or better yet personal tutors. Since I am apart of the fabric here now, I must share with them a little something I learned while serving in the Military. As a type of affection and camaraderie I developed incredibly creative nicknames for each professor. Interestingly I was assured anything I do will be used against me. All things considered. I am happy to report. I will be pushing my luck with these younger Associates.
Let’s get started. I assume most professional writers who are reading this will CRINGE!!! LOL But since this blog is written by a real business guy and not a Professional writer some trade offs must happen.
What is the Bond Market?
If I am being transparent most people have no idea what the Bond market is and also that it is shrouded in mystery. It really isn’t that complicated. The Bond market is comparatively like the Stock market but it’s for Corporate Fortune 500 Companies. Generally Wall Street has 2 markets. The Stock Market and the other side “The Bond Market”. Most fortune 500 Companies gain access to the Bond market and borrow Cash from this Market that is similar to the Stock Market. Individual investors Bonds in smaller amounts from Big Companies. And these individuals are issued interest payments called coupon’s. Currently the Bond Market has been estimated at a staggering and dangerous 11 trillion dollars in Debt. This debt all belongs to corporate America.
How the Bond Market Functions?
Experts all say the Corporate Bond market is hanging on by a thin string. The reason is likely that super low Interest rates left over from the 2008 Financial Crisis is likely the reason. Made it very easy for Companies to borrow cheap money. Experts also believe the next Economic Crisis and collapse could result from the Bond market itself. I guess we will hopefully avoid catastrophe. The Federal Reserve Chairman has publicly stated they do keep an eye on the Bond Markets activity.
What are the two Bond Types?
It is said that some of the most influential Fortune 500 Companies like Kraft Hienz, Ford, and Macy’s are already junk bond status and currently issuing IOU’s to Bond holders. Meaning they are having trouble paying. Junk Bond Status means they are the riskiest types of bonds. And that these Bond Issuers have failed in the past to pay their bond coupon holders. Meaning they have defaulted. Which really begs the simple question. “How long can Corporate America’s Junk Bond Defaulters continue to do this circle of using debt for the Companies Operations with no growth?
What are two types of Grades for Companies Issuing Bond’s
Investment Grade Bonds – These are the highest rated Bond Types
High Yield Bond’s – Are considered Bonds that have been downgraded because of past default. “JUNK BOND’S”
Please do watch Investing with Rose Youtube Channel. It’s fantastic. Here is a video that explains the Bond Market and Investing 101 Basics.
I would love for you to imagine we are standing on a plateau with a cliff lookind down into the Grand Canyon. This drop-off the cliff represents the fall a company from defaulting on their debt or coupon or interest payments they must make to bond holders. Once a company falls off the cliff. They are downgraded to Junk Bond high risk status. CNBC reports that right now there are literally hundreds of companies that are on the cliff of Default from the Markets low interest rates being downgraded to Higher Rates. When this happens all these Investment Grade Bonds will be forced off the cliff. And be downgraded to Junk Bond’s if they can not pay their Bond Holders payments. Once a company goes over the cliff they are in trouble. I hope that makes sense? Good.
There is a ton of pressure on Asset Managers to sell the Bonds which cross over to Junk Bonds and fall off the cliff.
Fallen Angels = Any company in the Bond Market that get’s downgraded by rating companies.
Will Interest rates be going up soon? If Interest rates do go up and they eventually will, the economy will turn worse than the Great Depression is what I keep hearing. I guess we will see.
It was reported that over 50 Large Fortune 500 Companies were downgraded to Junk Bond Status in 2020. That is really scary to think about.
Back to the Associates who helped me understand the Bond Market today.
Back to my substitute Bond Market Professors. There are 2 associates and one Partner from a very well known law firm in Chicago. Now on to the nicknames I have given them in an attempt to be humorous with these very serious personalities.
I would like to take this opportunity to Thank my new Professors. They are rockstar Transaction Attorneys from a very well known Transaction Services Law Firm Sidley & Austin. It’s honestly very generous of my good Friend who has arranged this education and experience being around these Attorneys.
I gave my new professors 3 Nicknames. Because in all honesty when you serve in small teams in the Military you become use to working as a team and along the way you will earn a nickname of some sort. That is the history of creating nicknames for people you work closely with.
The Big Partner of this Firm and has been the head honcho of this operation is Nicknamed “Professor Debt Collector” In all likely hood if your a company president and you receive a letter from this Partner? It’s likely your going to pay. So after hearing a few stories from this Law Firm Partner. I quickly assigned him this nickname.
Senior Associate Mr. X – is usually the lead on transactions for this Law Firm and is great about covering all his bases and researching who you are. LOL In the Holiday spirit of him not liking Holiday Decor or Christmas. We shall give this Professor the Moniker “Professor Grinch!” It seemed fitting. Since his Kids loved the idea. When asked if he agree’s with his new nickname “Professor Grinch” Snarled at me and commented…. “You do not have the right to give me such names”. Sharing a evil sinister laugh while walking away.
Then we have the Junior Associate Attorney & Professor who has been at my side this entire time. She is fantastically generous and could honestly make a Grumpy Bear laugh. So with this information she is able to explain the markets with precise accuracy and adding political scope. “Which I love by the way.” We gave her the Name of Madam Secretary. Which was fitting given her personality.
Thank you for reading this Post. I do recognize I will not ever be a professor. But at least I can bring a smile to someone who needs a little entertainment while reading about business which clearly can be boring.
It seems more and more Business Journalists and Reporters/Writers are asking for my Expert Opinion as a Source. Business Mergers and Acquisitions, Investments and Analyzing the Markets future and current state is a interesting subject.
Thank you for the privilege to look over the Horizon in business and provide an Opinion of what comes next.
Robert Kyosaki “Rich Dad Poor Dad” best selling author teaches Entrepreneurs to look at 100 properties if your in Real Estate, or look at 100 Business’s if your in Private Equity before making a decision to buy. Why would I share expert advice from the ultra successful Investor Robert Kyosaki? Because I have used his advice and won! It’s that simple. Here is another reason I follow Roberts teachings and listen intently. Robert and myself are both USMC Veterans and trained Pilots, we literally have many things in common with each other like seeing the world through entrepreneur lenses. Not to mention a laundry list of other interests that intersect. His advice is 100% rock solid. This is why I listen to his advice and share his fantastic wisdom. Im going to share why this business rule and strategy could be useful for all areas of your life and how it has worked for me. And since I am naming Business Heavy Weights I personally watch. Do you know who Noah Kagan is? Look him up! I feel Noah would most likely agree a 100% with my post.
What is the 100 Rule?
Here’s the problem I see most of the time with Entrepreneurs. They expect results way to quickly and they have no strategy at all. Or they just have no patience and are quick to move on to the next project without really giving their best. However if you do decide to use this information in this blog post? It’s likely you may be impressed with the results. And this information may just change your entire life!
Many month’s ago I was driving my usual circuit of pit stops and making my way to the Plaza’s Barnes & Nobles Book store. While driving an interview video popped up of Noah Kagan the CEO of App SUMO & OK DORK and Ryan Holiday author of “Trust Me Im Lying” . If you don’t know who these fellow Entrepreneurs are? You should go watch some of their Content and Read Noah’s book. 100% They get it!! And we have similar experiences of knocking on thousands of doors and learning rejection is just apart of the process and will make you stronger. This is one thing I really love about Noah videos. He is transparent about his battles. I can relate to his experiences 100%
While Noah and Ryan were sitting at a Table on this video interview their conversation veered to a subject about the The One Hundred Rule. Your probably asking yourself What is the One Hundred rule? Im happy your thinking ahead. The One Hundred Rule is exactly this in it’s definition. Say your writing a Blog or starting a Youtube Channel or even Selling a product you made to the open market. The One Hundred rule makes it clear that in order to know if your Blog, Youtube Channel, or Product is worth pursuing and not quitting? You must write One Hundred Blog Posts, create One Hundred Youtube Videos or even Pitch the product you made to One Hundred Executives before deciding if this was worth your time to keep going? Or to quit. This same rule can be applied to Finance, M&A, and especially Business Strategy!!
The One Hundred Rule Used By Warren Buffett and Charlie Munger
If you watch Warren Buffett and Charlie Munger’s videos from the Berkshire Hathaway Annual Meetings Q&A sessions. You will hear in their answers how Warren and Charlie have both referred to looking at One Hundred Businesses before deciding which business they would like to invest in and take a official position. There must be only one explanation. They use the One Hundred Rule. I have even heard Warren Buffett refer to reading a Hundred different Annual reports in order to begin his deliberation on which company to invest in when the market was bearish. Fascinating stuff right? Yep!
How Im Using the One Hundred Rule in Mergers & Acquisitions?
If your in the Big leagues of Business your definitely not ever going to just rush into a decision of buying a business. It’s been my experience that many people will openly lie to you. They will waste your time, and they will try and deceive you along the way for their own gain. Here’s a great example. While searching for Vineyards in the Midwest as Targets to buy it became very clear very fast almost all the vineyards in the midwest are small family run farms with a very small section of vineyards on these remote country estates. They do have make great small income streams from their cash flow.
The revenue streams from these Vineyards and Wine tasting businesses relies heavily on traffic from the city’s. They rely on this traffic so they are able to stay in business. And then Corona Virus hit! That basically destroyed this cottage industry literally overnight. And many of these country vineyards and estates were put on the market by online Business and Real Estate Brokers. I had inquired about a few of these vineyards or estate’s because I could see these vineyards repurposed for maximum returns on investment. But almost every Broker I spoke with wanted to highlight the Vineyards history of profit. And market these real estate properties as turn key businesses. I don’t know about you. But investing in a business that relies on a market that has gone bust is not a attractive investment opportunity. LOL I did not buy an estate vineyard. Because I looked at One hundred Wine and Beverage opportunities. That decision and using this strategy saved me from making a bad decision.
How the One Hundred Rule is shaping my Business & Finance Blog?
As this blog continues to grow and continues to introduce new Business Strategies in Entrepreneurship, Finance, Business Strategies and more. We see I am using the One Hundred Rule to evaluate the optimal direction I as the writer and content producer should travel. The input and support this blog is receiving from the Business community is truly a blessing and humbling at the same time. Especially considering I am not a professional writer.
So at the end of the day if you want to test an idea, a business strategy or an idea in your personal and professional life? I would recommend to try using the One Hundred Rule when deciding if something is worth pursuing or not. It gives you metrics, it gives you data and results to look on and ask yourself? This is interesting or it isn’t interesting. Should you put more time into this idea or shouldn’t you? Because realistically at the end of the day If you have followed this rule and pushed through the roadblocks and challenges. I feel your likely to agree you accomplished something amazing and surprised yourself. All because you took the time to use this fantastic little rule. Thank you for reading and thank you for your thoughts and comments below.
Do you agree using the One Hundred rule give you an advantage when most people in our society are likely to quit when they don’t see results after attempting a task or goal once or twice? Let me know.
Are Entrepreneurs looking for Partners and Investors in all the wrong places?
Often times Entrepreneurs do not stay curious, they become masters at limiting their own growth and Investing is not a priority. This post will share why you should always keep learning and keep expanding in your own business space. There’s always another level if your willing to take the time and learn. If you are a serious entrepreneur, managing partner of a fund or apart of a Investment Group? There are qualifying questions you must ask to justify the start of a Business relationship with sophisticated investors. And just so people realize this point. Me or my Partners do not just talk to anyone with a few hundred thousand bucks. But if your a serious entrepreneur that has a interest in financial services and joining the Major Leagues of Business investing this is an article you will want to definitely read.
Interestingly last week I met with a Kansas City Accountant from BKD which is a large Transaction advisory Accountant firm in Kansas City. We spoke to each other about attractive investment assets to buy. And must use personal discernment and be very selective and understand the business before investing. If a Investor brings to the table One Hundred Thousand or Fifty Thousand Dollars with no background as a Professional subject matter expert, Accountant, Attorney, or Enterprise Board Member? The answer is a fast but gentle “No Thank you I would not be a good fit to partner with you.” The reality is there are people who have money. But are not accredited investors. Choose your partners wisely.
Their are Non Accredited investors and then Accredited investors. There’s a big difference. And that’s one reason I am writing this guide to share the 3 levels of Accredited Investors for serious entrepreneurs. We will get more into this later.
I must be share there are literally many Con-Artists and Fraudsters in Financial Services. So you must pay close attention to who you consider a professional inside Financial Services & Investing. This article will also give you incredible insights on what to look for when looking for qualified Investors as partners.
Unspoken Rules in Professional Investing
Ok in the Big Leagues of Professional Investing it’s likely that if your not referred by a trusted friend, Board Member, or Corporate Officer/Executive or someone who has a Professional Investment Track record? You don’t entertain any conversation with this person. It honestly is a closed society and sort of Mafioso.
Investors are anything but alike
This will honestly probably disappoint many people in my community. I do not partner or accept money from Non Accredited Investors. But the truth is there are only 3 types of Investors I would choose to partner and work with. I will absolutely go more into detail about these 3 types of Investors. You may want to know this interesting fact from DQYDJ.com This potential investor group is not as small as you think.
We estimate in 2020 there were 13,665,475 accredited investor households in America. Roughly 10.6% of all American households were accredited in 2020. Further, accredited investor households controlled roughly $73.3 trillion in wealth in 2020. They controlled around 76.3% of all private wealth in America measured by the 2019 SCF.
DQYDJ Investment Homepage.
3 Investors Who Should Be On Your Radar
But first let’s look at some basic guidance to keep you safe along your journey. Fund managers live by this guidance, and so should Entrepreneurs. Even though your preferable investors are High Net Worth Families and Individuals, you should keep this at the forefront of your responsibility as a Professional Investor or Entrepreneur.
Never accept one dollar from Grandma’s One hundred and Fifty Thousand Dollar life savings.
It’s your fiduciary duty to ensure the person who partners with you has a level of sophistication to understand the risks of start-up investing.
It’s preferable to avoid Start-Up Capital Intensive Businesses as a Entrepreneur
It is also very important that you do screen out and disqualify Investors who are not Financially Literate
It is imperative Entrepreneurs must study and get familiar with Federal Securities Law
Have a Business Attorney as someone who can watch your back and advise you along your career.
Have Advisors you can turn to as a Professional who can introduce you to someone or give you pro guidance.
BE A COMMUNITY LEADER – Take responsibility for people who don’t understand what they are asking.
Don’t be a FRAUD, ALWAYS BE TRANSPARENT, and NEVER EVER BE DISHONEST!!
The Accredited Investor
The SEC defines an accredited investor as either: an individual with gross income exceeding $200,000 in each of the two most recent years or joint income with a spouse or partner exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year.
If your a Entrepreneur, Executive, or Professionally savvy Investor you will recognize and most likely appreciate I am taking the time to detail what exactly the definition of an Accredited Investor is. And it is a small population when compared to the United States Population as a whole.
What is a Qualified Purchaser? A Qualified Purchaser has a Five Million Dollar Net-Worth excluding their primary residence. QP could also be a Entity with Twenty Five Million in Assets and their primary business is not investing. It’s an actual separate company or entity.
Here is the Thomson Reuters Practical Law Definition in detail to keep things on the up and up and legit!
Keep yourself moving through the roadblocks that deny you access
Are Entrepreneurs looking for Partners and Investors in all the wrong places?
In conclusion,
It feels like I should share the reality I faced as an Entrepreneur who had no financial reputation seeking influential mentors. I was literally meant to fail and go away to do whatever Entrepreneurs who fail go and do. But I didn’t fail. I kept going and being curious. Here is a quick story and reality I faced not knowing that everything I faced was rigged and stacked against me. If it wasn’t for my curiosity and my tenacious ability to withstand punishment and pain? I would have surely never discovered the next level in business finance and the strategy to get their. Please read on!
When I first became an Entrepreneur I had a suspicion that I should go seek out and talk to professional fund raisers. Most of these fund raisers viewed me as a waste of time and not worth a call back nor worthy of a personal meeting. They ignored me, disrespected me in the open. I took all this mistreatment on the chin. I in return did not play their dirty passive aggressive games. They reacted to my calls and visits as if I was a threat and unworthy of their valuable time.
But now these day’s I am not easily dismissed any longer! My market value has gone way up. All because I put in the personal work and received a real financial education. I have done all this by experimenting, researching, and having great teachers inside the Real Estate and Private Equity Fund space. These same Attorneys and Fund Raisers now openly ask me to collaborate on projects and campaigns with Investors. I have proven myself as a fierce competitor. The goal of today’s post, was to share with you. Even though you may feel you know everything about your business space? I promise you most likely should stay curious and stay insanely competitive.
Thank you for reading everyone. Id be happy to hear your thoughts below. Have a wonderful Holiday Weekend.
