The Scariest Moments in Business as an Entrepreneur

Recently when I was at Harvard Business School
with 144 other entrepreneurs who ran very successful businesses, valued from $100 million
upwards of $4 billion, there was one thing everybody had in common. When we were off and talking and were just
chatting with each other, everyone had a horror story. Everybody had a story of how close they were
of going out of business. When I tell you everybody, I mean everybody
had a horror story or at one point they did, and they had to make a comeback. Every single person. I will tell you here for you watching, if
you have any aspirations for running a very successful business one day or being very
successful as an entrepreneur yourself, you need to know that it is guaranteed you will
face some scary moments in business. And you can overcome them, and that is when
we really find out what you’re really made up of. That’s when everybody finds out what’s you’re
made up of. Just so you know that. Anybody that you meet that’s successful is
able to face those horror stories and overcome them. So, I’m going to share with you a few of my
horror stories and hopefully this will shed some light to you to realize you’re not alone
by yourself and other people go through this as well. Most of them are going to be a few experiences
I’ve had. I think there’s like 11 or 12 of them that
I personally experienced. One of them will be this. One of the scariest things, one of the scariest
things in business is when you declare your intentions to the world that you’re starting
a business and you have opposition 100%. No one believes you’re going to be successful
in business. Why? Because you’ve never ran a business before. Why would they believe you’re going to be
successful in business. And what I call this experience is, The I
Told You So Nightmare. Let me tell you what’s the I Told You So Nightmare. I cannot tell you how many nights I went to
sleep, sleepless nights, I would have nightmares about those people that told me not to do
it, and I’m facing them and they’re telling me, “I told you so!” I told you you should have never done this. I told you this wasn’t going to work out. I told you so. Oh, those nightmares were unbelievably painful. Let me tell you. And these I told you so faces, some of them
were relatives, some of them were friends, some of them were enemies, who said, “I told
you so.” And I’d wake up in the middle of the night
– I can’t tell you how many times – my entire shirt was wet. I’m in bed, and had to go to the bathroom
and splash some cold water on my face and I’m like, “It’s just a nightmare. It’s just a nightmare. It’s okay. It’s okay. Go back to sleep.” Tried going back to sleep, and I couldn’t
do that. I had to get back to work, because I’m thinking
I’m about to go out of business, because someone’s going to tell me “I told you so.” It’s a very scary moment in business. You will experience many of that. It’s gonna happen. But it’s just a part of imagination. It’s not a reality. But it’s going to mess with you. Another one is this. Here’s another one. Another one is, when you actually start partnering
up with a company. I remember one time they hired me, a startup
hired me. They did technology products, which was like
the next up and coming Yahoo! and they were based out of Santa Ana. They hired me to train their salespeople and
I came through and I brought on board 100 sales people that was training in the Southern
California marketplace. And I’ll never forget on a Monday morning,
I’m going there to collect all the checks to come and do a sales rally and give these
checks away to the salespeople, and Monday morning I’m going up the elevator with the
president, a guy named Ray. At that time I’m going up stairs. We knock on the door, he puts the key in to
open the headquarters. He can’t open it. Janitor comes and said they pulled everything
out over the weekend. He was like, what are you talking about? We opened it, it was as if everything was
slow motion. The door opened like a movie dah dah dah dah
dah. Everything was pulled out, except the logo. I said, wait a minute. Why’s the logo – everything was pulled out. Every check that was uncashed. Every check that was sitting on the table
to deliver to our salesforce. We went to the nearest bank. Nothing could be cashed. They closed down the checking account. It was done. We couldn’t get ahold of the investor. We couldn’t get ahold of the founder. We couldn’t get ahold of nobody with that
company. Six months, went out of business. That night, I had to go to Conrad’s in La
Crescenta Valley and I had to deliver the fact that that company went out of business
in front of 100 people. Let me tell you. That drive back from Santa Ana to La Crescenta
Valley with traffic, was about a two and a half to three hour drive was a very difficult
Monday night drive. And I met with them, some of you may even
watch this, may share it with somebody who was part of that meeting. That was not an easy meeting. But that night, if there’s anything I learned
that night is, I learned how to toughen up and learned to deliver bad news. And I had to make myself. You think this is bad news, what’s bad news
compared to this is if you’re in the military and if you have to go tell somebody’s wife
with two kids saying their husband just passed away, that’s bad news. Your’s isn’t that bad of news. I had to go and deliver that news and had
a difficult time sleeping that night. I felt responsibility. I felt it was my fault, etc. etc. But I grew from that moment, delivering bad
news to a company that went out of business. Another scary moment is when you run out of
money. I want you to think about this here. Imagine you start a company with every single
penny you have. Everything from your insurance policies, from
mutual funds, stocks, cash, savings, money fund accounts – any money market accounts. Anything you can think about. Let’s just say you have a million dollars,
and you start this company. Six months later you’re down to half a million
dollars. Nine months later you’re down to $100,000. Twelve months later you’re down to $13,000. You literally have nothing left. Every credit card’s been maxed out, and you
only have $13,000 left. And by the end of the week, all your employees,
your sales reps, your vendors, everybody expects a payment from you. And if you don’t pay them, they’re going to
leave you and if you do pay them, you’re out of business. You don’t have money to pay your rent, food,
anything. What do you do? Do you panic? What do you do at that moment? See, I experienced that. I experienced that in October of 2010. Let me tell you, it was very scary. Very, very scary. And you realize what things you need to do
at the moment. Like the last thing you need to do is panic. You need to figure out the next steps on what
to do. But that is a very scary moment in business
that could happen. And you have to still figure out a way to
get out of a situation like that, which we ended up getting out of it, and good things
started happening. Another scary moment is when you start a company. It’s a startup. And you don’t speak the language of the company. You don’t speak the language of a startup. So I remember the first time we started our
insurance company, PHP. And I had no carriers. I had no insurance company to write their
paperwork up. None. None of them have said yes to me. Every one of them I met with said no to me. They said, “How long have you been around?” I said, “One week.” They said, NO! So one guy I got on a call with, he finally
said, Yeah, who are you with? Let’s meet in the next two months. I said, “No, no, no. I’d like to meet with you today or tomorrow.” I’m in L.A. He’s in Chicago. He said, “Oh, you’re in town?” I said, “Oh yeah.” He said, “Okay. If you’re around tomorrow, why don’t we do
lunch tomorrow at 12:00?” I said, “No problem.” I get a flight that night, a $1200 flight
to go to Chicago from L.A. I go to Chicago, 12:00, I go to meet him. This man, his name was Garth. I shake his hand. We go upstairs. One hour we speak. One hour later, I’m leaving. I have no idea what he’s talking about, the
words he’s asking me. I don’t know a lot of the language that he’s
asking me these questions of. I’m just having a very sincere meeting with
him. Here’s what we’re going to do, here’s what’s
happening with our business. He shakes my hand. This was a multi-billion dollar company. He said, “We’ll give you the contract. Let’s get the paperwork started.” Right there. I’m, like, wait a minute, this is really happening. Yes it is. I left trying to control my emotions on how
excited I was, as if everything was expected, and I go down and said, “Oh my gosh. I cannot believe I was able to get this appointment
and close it, without knowing half the words he asked me on what it is to run a startup. Do you have this? Do you have this? Do you have that? Who is your general counsel, legal counsel,
accountant? Are you accrued? Are you this, are you that? What’s your. . . everything, I had no idea. So sometimes a scary thing is you go to a
meeting and the meeting is bigger than you. How do you handle a meeting like that. You’re going to experience some of those as
well. Next one. The next one was final straw negotiation. Let me explain to you what I mean by this. This is when you’re negotiating with somebody
and you do not have the leverage over the other company. So it is August of 2011. We’re about to go out of business, PHP. We’re about to go out of business. August of 2011. Nobody knows this. I have no carriers. No carriers. One of our competitors was going around, you
know, defamation of character, whatever you want to call it. They were trying to do whatever they can for
every single carrier to stop representing us. Everyone dropped. Everyone said, “Okay, we’re not doing business
with them.” Except for one company. And it was AIG. It was a gentleman named Greg. I met together with Greg. We had already known each other and we started
talking. I had no leverage. We had nothing going on at that time. And He and I sat down and we had a long conversation
together and then the next level and the next level and I flew in and we had meetings, long
meetings, long meetings with AIG. And then by the time we were done, they said
yes. I had zero leverage in that negotiation. It was the final straw. If they say no, next week we’re out of business. Next week we’re out of business. They said yes. I went back. I announced it, for the first 90 days it was
absolutely terrible. Nothing went the right way. And eventually, we ended up writing more index
universal life with AIG three, four years in a row, than any other company in the world,
and it turned into a very, very successful relationship. But I had no negotiation leverage when I was
negotiating with these guys at that time. Next one is, when a big client changes their
mind. This happens in sales a lot. For me it happened early on in my sales career,
when I quit my job and I went in, I remember I had a sales that I made, the sales call
I made, the commission was $11,000. And $11,000 at that time was a lot of money. $11,000 was a lot of money to me, because
that $11,000, I was already counting my rent, my car payment, my debt, my phone, every single
thing. It was back in the day with Nextel, the way
Nextel worked I was $890, I had to pay that off. Everything, I was behind. So I’m counting on this $11,000 check. I leave the house, I’m so excited, I’m relieved. I got breathing room again. I go in, excited that next day, and then all
of a sudden, I got a call from the client. And you know you don’t want to pick up that
call. Because you know exactly who it is. I pick up the client’s call. They want to change their mind. What happened? We just want to change our mind. What happened? My cousin who does the same thing you do,
he’s with the same company you’re with. We didn’t know he was with the same company. We called him for advice because we know he
was in the insurance business, and we’ve chosen to go with him. But, but. . . we totally understand, we know
what you’re going to say, and his cousin prepped him on everything I was going to say, so I
had no comeback. $11,000 was a lot of money. Let me tell you. It almost put me out of business. It was a very, very scary moment that day
as well. Another one is when a big player executive
sales person staff member of your company leaves. And it totally disrupts your business. I’ve experienced that before. In the last 15 years of being in business
I’ve experienced that a few times. And every time it’s happened, it’s been a
disruption. And every single time it happens, you think
you won’t be able to handle it. But every single time it’s been handled. But it has happened, and when it does and
you’re in the moment, it’s never fun to experience when you lose a great teammate. Another one is a lawsuit. Lawsuits happen in business. When you run a business, you do not want to
experience lawsuits, but sometimes lawsuits happen, especially the bigger you get. And one time we experienced a lawsuit that
was a 400-page lawsuit. I will never forget this 400 page lawsuit
that came in. And they sued me, the company, seven of my
team members. They wanted to do whatever they could to put
us out of business. And that was a scary moment. When FedEx brings you a box this big and you
open it up and it’s a lawsuit from a 400 billion dollar company, let me tell you. You need to realize at that moment they can
do every single thing they want to put you out of business, but they can’t do anything
to stop you from working. And that was the biggest edge. Anybody can sue anybody, but nobody can stop
you from working. Especially in our country. Maybe in some other countries they can, but
you cannot stop a person from working, so you need to get back to work. Another one is when an investor backs out. Some people have a startup company, and [snap],
an investor one day says, “We no longer want to participate with your company.” That happens many times to many people, where
the investor pulls out. When it happens, you’ve got to pivot. And it can be scary sometimes, especially
if you have some money you need to be paying people. It can be scary things that can happen at
times, but you’ve got to figure out a way to pivot with that. Another one is when your partner changes their
mind. I had this experience with me seven years
ago I want to say and this was actually a good friend at that time. And we were starting a business, and we started
off and I’ll never forget we were at a house, 4:00, six months we’ve been talking about
this, he’s excited, in the basement, he’s shaking my hand, “I give you my word. We’re going to do this and. . . ” No problem. Wake up, fired up! Everywhere we go, he’s excited. The night before, the night before, when I
talked to him, he had a change of heart. And it threw me off tremendously. The night before. And it was one of the best things that happened,
because I learned that at that moment, you don’t necessarily know if everybody has the
courage to go and do something like this, and this person did not have the courage to
go do something like this. And a big part of the funds is that at that
time we were counting on was going to be a 50/50 opportunity for both. When he pulled out, it threw me off tremendously. It threw me off tremendously. And I almost didn’t make the decision because
my decision was almost controlled by his fear and if I would have said no, that means I
made my decision based on him, and I can’t control his fears. He has to live with his fears. When he’s 80 years old, you know, for the
next 30, 40, 50, 60 years, he has to live with the decision that he made. And even though maybe the decision publicly,
where people say you made the right decision, deep down inside, you know, he has to know
with having access to all the information, no matter how much he convinces himself, he
knows what type of decision he made. I moved on. But that is not an easy decision when that
happens. But it will happen in business. You can’t take it personally. You’ve got to move on in business. These types of things will happen in business. You still need to move on. It happens in sports all the time. Westbrook Durant. It happens in sports all the time with Shaq
and Kobe. It’s happened in so many different platforms. You’ve got to be able to stand up and still
go out there and win, regardless of what takes place. And last but not least, when things happen
that you can’t control. I got started in the financial industry with
Morgan Stanley Dean Witter on 9/10. Excited! The next day’s 9/11. I can’t control 9/11 from happening. No one wanted to invest for three years. No one. Everybody I sat with, oh we don’t know how
the market’s going to do. Because we’re afraid that war is still going
on. Oh, we don’t know what’s going to happen to
the market. We’ve taken every single penny out of the
stock market. We’re not going to know what’s going to happen
with it. Oh, we’re not going. . . oh, we’re not investing, oh, we’re not. . . we’re staying cash. Everything was cash. And I’m starving for three years. Everything was cash. Everything was cash. And try to figure it out during that time. It’s not something I control. It’s something that was happening in the market. I still stuck around. And I saw 95% of my peers who got licensed
their series 7 during that time. They quit. They were probably smart at that time for
doing that, but I had the courage to stick around and I didn’t want to give up. Because eventually I thought something good
was going to happen and it ended up happening. So every one of these stories I’m telling
you, I’m not telling you these stories with the intention of scaring you. This is not an intention for me to scare you
or tell you for you to oh my gosh, I don’t know if I can handle going and becoming a
sales guy for a company or an executive or partner or an equity owner or an entrepreneur
or whatever it is. Not at all. I just want you to know, that this is normal. I know this sounds crazy. But this is normal. And this is where your defining moment happens. This is when you learn about yourself. This is when you go home at night and you
kind of experience what cold feet is all about. This is when you go home at night and you
tell yourself, “I made the wrong decision. I should have never done it. That person was right. That I told you so was right. These are the moments where you become the
person that everybody looks up, and you become the example to everybody else. Or, you become a statistic, that allowed fear
and any of these horror type of situations that are temporary gets you to go out there
and quit and not become an entrepreneur. You’re going to have to make that decision
for yourself. I won’t have to. You’re going to have to do it. The good news is, for the most part, there’s
a way out. For the most part, there’s a way out, when
you’re experiencing these types of things that happen in business. So anyways, with that being said, Paul, go
grab my pillow for me buddy. I know you got, Paul is sitting there comfortably. We’ve got an exciting project that’s coming
up for Paul. Okay, here we go. Hey, if you haven’t subscribed to this channel,
please do so. By the way, those videos you guys have made,
“Why I Love Valuetainment,” with all the impersonations, today’s the last day to submit, your videos
are hilarious some of you that have posted. If you don’t know what I’m talking about,
go on YouTube and type, “Why I love Valuetainment” and you’ll see a bunch of funny videos. People are impersonating me. One person said I’m a combination of. . . you’ve just got to see how they’re impersonating
me and who they say I remind them of. But if you haven’t subscribed to this channel,
please do so. Our goal is to get a quarter million subs
next. We just crossed 100,000 subs. And if you’ve got any questions, or any stories
about the scariest moment you ever had in your career, please comment on the bottom. Take care everybody, bye bye.

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100 thoughts on “The Scariest Moments in Business as an Entrepreneur

  1. These videos keep me going for real. Never have I ever watched videos from someone talking about the real things that happen in business that we all as entrepreneurs face. Usually its just some wack motivational speeches from others but pat keeps it real. I have had many of these scary moments and pat you were spot on.

  2. #10 hit it on the nail for me. Sorting everything out right now since my partner changed her mind. Initially, i felt like this past year has been a waste structuring everything for a partnership. Now I've learnt. Partnerships are good but rely only on yourself.

  3. Great Video! I'm currently experiencing some of these scary moments while setting up my business. I feel that we should just hang in there & don't give up in these moments. Having Patience is the key here and gradually we'll see things happening for us. Its very tough, but its worth trying 🙂 👍

  4. please make a video on how to potential target investors and what too present to ensure we received funding… you're a legend i love you man

  5. So I'm active duty military and want to make the transition to Civilian life, and every thing in my gut is saying Entrepreneurship is my place. where do I step? I've watched countless of your videos and found them extremely helpful. Where do you step and plan? How do you find your spark? I have the drive I just need the nudge.

  6. told myself I would try to sneak this 1 in and already was on not much sleep, thanks for taking me back down memory lane PBD! woke up in a pool of sweat hustled with my biz like it was yesterday all day. 💯check me @
    always remembering where we came from is a principle to live by that also drives us giver getters and like minded Entrepreneurs daily. it's at an unconscious level.

  7. There is actually a very interesting story about the founder of FedEx. He started business with all his money, but because of a series of issue he nearly ran out of money. And then, out of desperation, he raised his fund in a way that is unimaginable – gamble his remaining fund in the Casino of Las Vegas. And he won.

  8. right now, having a scare moment, passing decided to open a new branch.. Thank you for your advise, you are the best!!

  9. Pat, not sure what you did or what is it when you speak, or if it was just me a bit too emotional…, but I dropped a tear and got goosebumps listening to you on this episode… especially when you talked about the "I told you so" and when you had to pay your people at the end of the month even though you had $0.00 in your bank account given that you'll go out of business next week if you don't power-through.
    And I've only cried once in the past 5 years so far.
    I know I should've not said this in this here, but you really empathised with me and many others like me, I'm sure, so I thought you deserve to know the power of the message you're delivering out to people.
    The burden so many entrepreneurs face every night is overwhelming many times. I've got thick skin now, but I know, just as you mentioned, there will be hard times, and the newcomers have to be prepared for them. It is those times of adversity that allow us to grow as individuals.

  10. You know what patrick? You build me. You build a business through me. You build a life. You build a dream. Thank you from the deepest corners from my heart. I will remember you when my pinnacle is staring at my face. And deep inside me, my heart will say "I owe Pat".

  11. Thanks Pat for sharing reality of business.
    For me your videos is like my mentor advising me about business as I do not have one good mentor.
    Will you be my Mentor Pat plz…

  12. this is gold, this is very important for who start a bussiness.

    i have had learn to speak english for this videos, for this information. in méxico is very few information about this.

    thank patrick.

    Jorge Colín.

  13. Most of that actually happened to me and I ended up loosing my business ontop of that getting a divorce. but you can't stay down and am starting over but now with your help am getting all the help I need to do better. its good to know this things happen.

  14. Thanks for sharing your stories Pat. I'm leaving my good job with AWS soon to go on my own and I'm shitting my pants everyday. but getting comfortable with the idea that IT WILL HAPPEN makes me feel a tad bit more confident.

  15. Привет, супер видео! Мне понравилось. Я ваш постоянный подписчик. Кстати жду гостей на свой канал . Буду очень рад гостям.

  16. i came from syria 2011 with nothing started and lost 3 business because of wrong partners i choose i didn't know lots of ppl and never started a business before and like you said its the best thing that ever happened to me i just love taking calculated risk now

    i just love listening to you you r a great persian businessman that look syrian lol

  17. One of the best things about starting your own business, you have a great possibility of never working for another lazy short sighted idiot employer ever again. You can then compete against them, see them driven before you and hear the lamentations of their women

  18. Hey Pat, Just had to watch this video..
    I am literally exactly at the third point in the video. Literally. I only have so much left. Right before Christmas, I was in panic at that moment and I'm still trying to figure out what to do coming month with all due dates approaching. At this point, the "I told you so" moment seem so inevitable and I can't even sleep or eat just thinking about delivering the bad news to different parties. Sickening moments that I wouldn't wish to any business person at any age really. Definitely not starting the year off on good terms but I am hanging in there…

  19. Pat, I workout in an empty gym every morning and your voice is the only sound that comes out of the speakers! Thank you for sharing your experiences.

  20. It is almost guaranteed that you will experience terrifying moments in business. Most everyone will deal with the fear of failure when facing your friends and family. You'll more than likely run low on money to the point where you're leveraging all your assets, lawsuits are scary but you can work through it. Partners can split from you and ravage the business. You must learn how to deal with problems that you can't control.

  21. "Let me tell you something you already know. The world ain't all sunshine and rainbows. It is a very mean and nasty place and it will beat you to your knees and keep you there permanently if you let it. You, me, or nobody is gonna hit as hard as life. But it ain't how hard you hit; it's about how hard you can get hit, and keep moving forward. How much you can take, and keep moving forward. That's how winning is done. Now, if you know what you're worth, then go out and get what you're worth. But you gotta be willing and take the hit, and not pointing fingers saying you ain't where you are because of him, or her, or anybody. Cowards do that and that ain't you. You're better than that! " -Rocky Balboa

  22. I love your videos but please don't use a black background, the youtube page is shades of bright white and the black is so much of a direct contrast that it hurts the eyes. So much so it caused me to write this comment . I love the the important information and support this channel offers thank you for the informational video.

  23. I m doing bussiness in india and my comptitor just lawsuit and won over trademark i m small trader and i hve to stop trading that product .my comptitor is not right but i m small tader no money for advocate but i will do more bussiness in other product and show him

  24. currently going through an investor changing their mind, Partner pulling out and we're running out of money. We still have our edge though and we know something good will come of this. Thanks for the encouragement!!

  25. Comment #5

    I'm having problems with my business partner but I'm young enough and I'm willing to rebuild. It sucks though.

  26. that was a really inspiring video Pat! thanks so making this vids and sharing your knowledge. Its awesome

  27. The Scariest Moments in Business as an Entrepreneur

    Key Takeaways:
    1.Hearing others said "I told you so"
    2.Receiving bad news
    3.Running out of money
    4.Not knowing everything about the business
    5.Not ending well final straw of negotiation
    6.Big customers changing their mind
    7.Big players in your company leaving
    8.Managing law suit
    9.Investors pulling out
    10.Partners changing their mind
    11.Managing uncontrolled events

    For most of these scariest moments, there is a way out.

  28. Hello. I need some advice. I am 16 years old, and I wonna become and entrepreneur and an investor. Right now, I'm in the sciences course, where, we learn physics, biology, math, ect.. Should I switch to the economy course to learn about economy, and businesses? One of the things that's making me hesitate is the lack of job oppurtunities in this course, as well as the not so high salary. What should I do? Stay or switch?

  29. Hello Patrick,
    You said in the video that "if the other company had not taken us, we would be out of business".
    Why did you get into a business where other businesses have control over you.?
    Did you go into business with too many competitors?
    Or did you not a have a compelling differentiator?

    Can you just comment on how easy was it to get into business in your financial industry? What was the exact process?

  30. I just have a scary moment, my friend & 50/50 partner for 10months isnt delivering his part, after 2 months of trying to solve it in a way we could continue forward I had to tell him we can no longer be partners. I could not sleep for couple of days and its still a difficult situation and I dont know how it will all end.

  31. Um, I do want to know how Pat went through and figured out all these predicaments though.

    It's not very helpful just listening to these stories.

  32. This episode was EXPLOSIVE! It drives the mindset you need to truly become a #realentrepeneur great REAL STORY feedback of PBD experience. Very uplifting to those of us shoving all our chips to the middle of the table!

  33. Thanks for the insight now I know that in the first 2 year or so will be tough but that when I make it though great things will start.

  34. I love your video Patrick! I watch 1 or 2 every day! You give me so much value and I learn a ton…you're like my virtual mentor. Please keep coming out with great content! I'm growing a new business and you keep me driven to succeed…thank you!

  35. Developing your startup idea and putting it out there for the first few times is pretty scary too. You always get the "Maybe it makes no sense" or "Yes, go for it!" mental debate.

  36. The best prewarnings/predictions/precautions I believe I have ever heard. Thank you for sharing your experiences.

  37. Pat — I loved the intention of this video but I was surprised that you kept sharing the problem w/o sharing what you personally did to resolve it.

    I think this video would def be even way MORE powerful if you were able to discuss what you did to make it through. That stated, I so appreciate the energy you put into these videos + the great quality found throughout so many.

    Many continued blessings to you! Thank you for sharing a bit of your story. x

  38. Thanks for sharing Pat. My biggest fear has always been going back into the workforce. My first 8 months in business I didn't make a penny. I had savings put away and quit my job to go full time & by the 8th month I had $700 left in my account, I had 5 deals that fell through at that point and 1 more that was about to fall through due to a $10,000 dispute. I'm out for my birthday with some friends having a few drinks to get my mind off of it when I get a text from my client(uncle), "We're closing tomorrow, was able to come to an agreement with seller. Happy Birthday." made $6,500 off that deal which fueled me to finish the year making about $20,000. I'm on track to do almost 5x that in my second year. Easily one of the greatest moments in my life so far. Thought it was an interesting story and wanted to share. Much love to you & the team Pat. Thanks for being a great mentor!

  39. Can my college's project-partner sue me for my startup?

    I am doing an AI project for last TWO YEARS for my startup. I recently joined Master's degree in Computer Engineering. To complete some courses, all students are required to do mini-projects. So I decided to do small part of my core business' project as the college's mini-project. By doing this, I make sure I don't waste time in things I do not want to focus whatsoever. But there is one problem: My project supervisor says, we must be in group to do this first mini-project. So I teamed up with one of my classmates to do this mini-project. Since this guy and I met just 1 month ago, I don't know him well. He seems good but I don't know if I can accept him as my business partner. I have already sensed that its gonna be solely me who is going to do this mini-project. However, along the way, he might contribute some work also. I can't easily judge anything about him — at least at this point. We may work together on other mini-projects for next two years. But again, I am not sure, if I he is qualified enough to become my business partner. That's because I believe, business partners should possess the same values and equal level of drive. (Needless to say, we haven't signed any agreement documents whatsoever.)

    So later after next two years, if I decide to discontinue working with him, would he be able to sue me claiming a part of my startup?

  40. Im experiencing all of the thing that Patrick are talking about right now this year in my business…..if you are a person that's looking for some fear factor because nothing scare you, try entrepreneur, if it doesnt want to make you commit or thought about suicide then i envy you for having such a strong mind set…or just extreme luck.

  41. Patrick, i had several o'shit moments when i first started we ran out ouf cash twice. First time we reorganized and found more money keeping the business open, the second time we changed or business model and we were able to reduce expenses qnd improve profit margins. Now we embrace the o'shit moments because it allows us to improve the business.

  42. Hi Patrick,

    I have searched on the internet to see if there is any video you did about a Franchise Business. And nothing yet…

    After having a startup which is so like what you said on this video I am just gonna sign a franchise contract this month so it will take the unknown next steps in business for me.

    What is your opinion about this #Franchise Business model?

    Best regards,
    Dan Nistor

  43. Very sobering and man thank you for this one. When I am stressed literally every day I keep thinking maybe I am just not doing this correctly. Maybe I don't do anything correctly. Nah, its business, lol

  44. This guy is talking ONE TAKE. no breaks no mistakes no nothing. He starts the cam on. Does his thing. And turns the cam off 🤣💯 great video man!!


  46. Hi Pat, could you please make an episode just on that October of 2010?! Running out of money, what did you do? Do you offer equity, do you go promising paying more later? What do you do? Thanks a lot!

  47. Indeed customers canceling stings. It is the reason I switched to paid reservation. Many people in the automotive industry is use to sub-par work. I stand by my work and will not bargin at all. I have counted my ducks before they were in the bank as well.

  48. When I started building my business 7 years ago, I never told anyone. I down played all my cards when everyone asked what I was doing or what was keeping me busy because I know there would be a lot of people who would discourage me or who would say I would never made. So my advice would be to downplay your cards too and act as if your not trying to build something big to avoid all the people from discouraging you and just surprise them when you have already built something big.

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