Ep 1: Ask And You Shall Receive | Ask The 50 Billion Dollar Man by Dan Peña

Introduction

Overview: Introduction to the podcast and instructions for the contest.

Contest Terms and Conditions:

• Attendance at the Castle Seminar is free, but not the airfare.

• Winner of the contest will be announced after the last scheduled seminar for 2014.

• Limit of three questions per participant.

• No business school case study questions.

Where to Buy Official QLA Product

Overview: QLA products are no longer sold, but can be found on torrent.

Why Not Sell QLA Products?

• QLA was not set up as a non-profit organization.

• The goal is to help as many people as possible cross the goal line.

Thanks

Overview: Thanks to Brian Rose and Peter Sage for helping reach more people.

Self-Esteem and Lending Criteria

Overview: In this section, the speaker discusses self-esteem and how to build it in one's 40s and 50s, as well as tips for loosening the lending criteria of banks and venture capitalists.

Building Self-Esteem in 40s and 50s

• The average of the five people you hang around with most will determine your level of self-esteem.

• If you are not surrounded by high self-esteem people, it will be difficult to build your own self-esteem.

Loosening Lending Criteria

• To get more money, create a dream team of credible and successful people.

• Banks will be more receptive to your loan application if you have a dream team backing you.

• Banks will not change their lending criteria, but they will look at you more favorably.

Starting a Business

• High-performance people are usually full-time, not part-time.

• People will ask if your business is a full-time commitment, so make sure to give a positive answer.

• If starting from scratch with limited resources, telecommunications and healthcare are good industries to get involved in.

Entering a Lunch Meeting with Confidence

Overview: This section discusses how to enter a lunch meeting with confidence and make a good first impression.

Preparation

• Look like a million dollars - dress to impress and exude confidence.

• Practice, practice, practice - be prepared and practice your answers beforehand.

Mentorship

• Find a mentor - pick someone who is where you want to be in the future.

• Learn by example - use case studies to connect the dots and practice with the help of your mentor.

Improvising vs Planning

• Improvising can be as good as planning - with practice and the help of your mentor, you can learn to improvise.

Lifetime Partner

• Not necessary - having a lifetime partner is not absolutely necessary for success, but it can help.

Priorities

• Financial success not highest priority - do what you are passionate about and financial success will follow.

Risk Taking

• Gauging risk - take risks that you feel confident about and don't listen to naysayers.

• Benefits of taking risks - taking risks can give you more choices and help those around you.

Strategies for Acquiring Financing

Overview: This section covers strategies for acquiring financing, including the importance of having a dream team, interviewing lenders, and understanding where equity and debt financing is coming from.

Building a Dream Team

• Focus on getting the thing done and don't focus on the risks involved.

• Start with a mentor, then have three to five board members, one in accounting, one in legal, and one in your industry.

• Get people to do stuff on a success fee basis.

• Take risks to build your own business.

Finding Equity and Debt Financing

• Do not need to know where the equity or debt financing is coming from.

• Find the deal first, then interview accountants and lawyers.

• Consider seeking out real estate investors for equity partners.

Leadership Qualities

• Look for ethics, morals, and passion in a co-founder.

• Most successful tech startups have at least two founding members.

• Types of leaders include commanders, visionaries, executors, and strategists.

Raising Capital

• Money back guarantee if you can't find the money in 12 calendar months.

• Make two independent financial presentations per week.

• Go outside your comfort zone and cold call on financial institutions.

Applying for Loans

• Be honest about the amount of debt you have.

• Banks have open information about how much one owes.

What Deals Still Excite You?

Overview: In this section, the speaker discusses what deals still excite him and what makes them stand out.

What Makes Deals Stand Out?

• Deals that are different.

• Healthcare and telecommunications are still hot.

• New ideas for the internet and handheld devices are the future.

Average Ratio of EBITDA to Debt Service

• Free cash flow should be 1.1 to 1.3 times debt service.

• Risky deals may require 1.5 times debt service.

• If a financial institution says no, it's because you didn't give them the right information.

Can QLA Work Without a Warrior Mentality?

• Yes, but having a warrior mentality is beneficial.

• The dream team and mentors can help you achieve success.

Balls or Brains Assisted You?

• 50/50 balls and brains.

• Courage is necessary to take risks and follow your dreams.

Single Ingredient to Success?

• Taking action.

• Leadership at both ends of the continuum.

• Balls and brains make it easier.

• Passion and taking action.

• Pushing mentees and making them accountable.

Achieving Success in a Short Time

Overview: This section discusses how to achieve success in a short time, and the importance of having an experienced mentor or board on your side. It also covers the importance of taking risks and pushing yourself out of your comfort zone.

The Benefits of Having an Experienced Mentor

• Having an experienced mentor can help you avoid making doofus mistakes.

• Mentors can provide valuable insight and guidance that can help you make better decisions.

The Benefits of Attending the Castle

• Attending the castle can be a life-changing experience, and it's important to bring your partner or business partner along.

• You're never ready to attend the castle, just like you're never ready to make a hard decision.

The Benefits of Taking Risks

• Taking risks can lead to new experiences and opportunities.

• Bungee jumping is a great example of pushing yourself out of your comfort zone.

Becoming Part of the Solution

• Changing the five people you spend most of your time with is key to becoming part of the solution.

• Having a dream team and a mentor can help you reach your goals.

Knowing When You'll Be Successful

• There is no crystal moment when you know you'll be successful, but having an epiphany can be a sign.

• For example, the speaker had an epiphany when he was commissioned as a second lieutenant in the US Army.

Military Training and Success

Overview: In this section, the speaker discusses his military training and how it led to his success. He also reflects on his regrets and shares his thoughts on the importance of being born into poverty.

Military Training

• The speaker went through regular infantry training, interviews, ranger training, and survival training when he was 21.

• He finished four years of college in two and a half years, which he believes was the beginning of his success.

Success

• The speaker believes that turning $60,000 into $100 million was a sign of his success.

• He questions the importance of being born into poverty.

Regrets

• The speaker regrets never seeing combat despite being trained for it.

• He also regrets not treating his mother better when she was dying.

• He wishes he had started his mentor program earlier.

Q&A

• The speaker recommends using standing desks to work from instead of sitting ones.

• He advises on staying focused on long-term goals when life throws you into dwelling on short-term misery or wins.

• He explains why conventional wisdom says birthdays, anniversaries, and Christmas are important, but not in business.

• He suggests having a dream team mentor to surround yourself with high performance people.

• He questions whether it would have been better to have a non-profit instead of a for-profit.

Developing Leadership Skills

Overview: This section covers the three ways to effectively and rapidly develop leadership skills, as well as relevant affirmations. It also includes recommendations for books to read and advice on how to communicate effectively.

Developing Leadership Skills

• Mentoring is a great way to develop leadership skills, and can be done without getting paid.

• Giving away products for free is a great way to reach people who may not be able to afford them.

• Beating, kicking, and slapping are no longer acceptable methods of developing leadership skills.

• Spend time taking action rather than reading books.

• Develop leadership skills by being around people who have them.

• Communication skills are developed by communicating and practicing.

Books to Read

• Think and Grow Rich

• Release Your Breaks

Pre-Negotiation Preparation

• Find out if the other side wants to grow, have a stable income, or just exit.

• Structure your offer towards their desires.

• Make the other side's accountants and lawyers part of the transaction.

• Address deal-killing questions during the interviewing process.

• Make sure everyone involved wants to get the deal done.

Qualifying Potential Buyers

Overview: In this section, Mr. Pena discusses the importance of properly qualifying potential buyers when structuring a purchase deal. He also shares his financial objectives and why he continues to meet with people for free on his worldwide trips.

Qualifying Potential Buyers

• Money is tighter for small deals, but it's still possible to make presentations and get deals done.

• When structuring a purchase deal, it's important to properly qualify potential buyers so that they get paid if the deal goes down.

• Be prepared for presentations and be willing to make more presentations in order to get the deal done.

Financial Objectives

• Mr. Pena's financial objective is to turn the 50 billion dollars achieved in the last 20 years into 100 billion or as much as possible in the next several years.

• He has mentees running around the planet who are involved in dynamic stuff that could have geometric results.

• His goal is to help others become more successful and pull more of them across the goal line.

Continuing to Meet for Free

• Mr. Pena continues to meet with people for free on his worldwide trips because it gives him an idea of what people are thinking and allows him to keep his thumb on the pulse of the rest of the world.

• He also enjoys seeing people accomplish what they wouldn't even think possible.

• He has little time for people who pretend to be interested in being a QLA high performer but are not willing to make the sacrifice.

Factors to Look for in Deals

Overview: In this section, the speaker discusses the factors he looks for when considering a deal.

High Gross Margins

• The speaker prefers businesses with high gross margins of 20-40%. This allows for more flexibility in managing people and resources.

Leveragable Assets

• Leveragable assets are important as they can be used to borrow against.

Owner Financing

• Owner financing is when the seller of the business takes back the paper, which can replace the equity portion of a deal.

Discovering Deals

Overview: In this section, the speaker explains how to discover deals in a particular industry.

Go Where the Money Is

• The speaker suggests going where the money is, but also looking for something that you can be passionate about.

Don't Follow the Herd

• The speaker advises against following the herd, as it can lead to bad decisions.

Lucinda Burst Collateral

Overview: In this section, the speaker explains how Lucinda Burst was able to secure collateral for a seven million dollar deal.

Over Financing

• Lucinda Burst over financed the deal by having more than one financing institution. One was for debt and one was for equity.

Taking Responsibility and Moving On

Overview: In this section, the speaker discusses his strength of taking responsibility and moving on.

Strength

• The speaker believes that taking responsibility and moving on is one of his main strengths.

Lesson Learned

• The speaker learned a lesson from Fire Resources, which taught him to never forget it. He has the logo hanging near his office as a reminder.

Courage and Successful Business Life

Overview: In this section, the speaker talks about courage and how it is necessary for successful business life.

Necessary Substance

• Courage is a necessary substance for successful business life, but many people talk about it without actually having it.

Dream Team

• The speaker suggests having a dream team of mentors to help keep students on track and maintain good habits.

Greatest Strength and Weakness

Overview: In this section, the speaker talks about his greatest strength and weakness.

Greatest Strength

• The speaker's greatest strength is his passion and drive.

Greatest Weakness

• His passion and drive can also be his greatest weakness, as it can be difficult to differentiate between the two.

Best Advice Ever Given and Received

Overview: In this section, the speaker discusses the best advice he ever received and gave, as well as what books he recommends reading.

Best Advice Given and Received

• The best advice the speaker ever received and gave is to "just do it".

• He recommends reading "Your First Hundred Million" and "The New 50 Billion Dollar Ebook" in conjunction with one another.

• He also recommends reading "Release Your Breaks" by Jim Newman, "Think and Grow Rich" by Napoleon Hill, and "Winning Through Intimidation" by Robert Ringer.

• He suggests reading Michael Gerber's book "The E-Myth" to understand how to work on your business instead of in it.

Ego Management vs. Ego Enhancement

• The speaker believes that people should be taught about ego enhancement rather than ego management.

• He recommends watching Steve Ballmer's speech at Oxford on YouTube to understand how to have a big ego without being cocky or arrogant.

Being Nice

• The speaker explains that the origin of the word "nice" means foolish, silly, ignorant, and not knowing.

• He believes that people should strive for high performance rather than niceness.

Making Money

• The speaker answers an "idiot question" about whether any of his students have made money in his system by pointing out that the [__] website has been around for 21 years and has made over 50 billion dollars.

• He emphasizes the importance of coming prepared and doing one's homework.

Self-Improvement Through QLA

Overview: This section discusses the benefits of using QLA for self-improvement, such as weight loss and physical fitness. It also covers the importance of owner financing in business deals and how to avoid getting corrupted by power.

Weight Loss and Physical Fitness

• The speaker has used QLA to lose 70 pounds in the last several years.

• Banks typically lend 100% of a deal, but it is better to have owner financing as part of the deal.

Avoiding Corruption

• The speaker's experience is that people who become wealthy tend to become more generous.

• Donald Trump has a reputation of being a hard-ass businessman, but he is actually generous.

• The speaker believes that having a strong work ethic is key to success.

• High self-esteem is the secret to success, and one way to raise it is to surround yourself with high-performance people.

The Power of Work Ethic

Overview: This section discusses the importance of having a strong work ethic, and how it can lead to success. It also provides examples of how this work ethic has been demonstrated in the speaker's family, military experience, and other successful people.

The Impact of a Strong Work Ethic

• The speaker's father retired from the Los Angeles Police Department after 28 years with almost 700 days of accumulated leave.

• His younger brother is an Assistant Fire Chief at one of the biggest fire departments in the world, and has the same work ethic as his father.

• The speaker attributes his own strong work ethic to his father and his military experience.

Quantum Thinking

• Geometric growth is when a business starts with nothing and grows to its first hundred thousand or five hundred thousand dollars in revenue.

• Quantum leap thinking is exemplified by President Kennedy's goal to put a man on the moon before the Russians. Despite not having the necessary infrastructure, millions of permutations happened and the goal was achieved 8 and a half years later.

• Gates, Zuckerberg, and other successful people have had similar ideas and are alive today to show that it can be done.

Forging a Fearless Mindset

• To forge a fearless mindset, one must engage in activities that put them outside their comfort zone.

• The CEO's job is to look for deals and capital 95% of the time, which may be outside of one's comfort zone initially.

• The speaker enjoys working and seeing the successes of others, which keeps him going.

Evaluating Transactions

Overview: This section discusses how to evaluate transactions and differentiate between what to focus on. It also provides advice on how to judge a young entrepreneur and how to determine what is important to focus on.

Focus on the Few Not the Many

• Most people spread themselves too thin by being involved in too many deals and transactions.

• A reasonably bright person can only do one to three things at a time. Women are better at multitasking than men.

• Find one thing to focus on and drive it until it succeeds or fails.

Judging a Young Entrepreneur

• 18 year old phenom attended the Council seminar and paid for himself. He has decided to postpone university for a year or two to see how he builds his business.

• He has laser beam focus attributed to his father, a martial arts trainer. He did 172 push-ups graduation night and has since done 200 push-ups.

• He has no bad habits and is focused on his passion.

Applying QLA to Other Areas of Business

• QLA can be applied to other areas of business such as diet and parenting.

• Determine what is important to focus on and protect yourself against. Don't worry about interest rates, real estate prices, recession, or depression.

• Focus on your deal and passion. Don't spreadsheet it to death.

Coming Back and Kicking Ass

• The best strategy to come back is to get involved in a new deal right away.

• You won't know if you chose the right financial path until retrospect.

• Know when to say no and don't worry about what others don't say.

Living in a Third World Country

• Dan's training is capable of turning someone from a third world country with no or very little capital into somebody successful.

• The system was written for someone like this and Dan started with no money.

• Mikey the pizza boy was dirt poor when Dan met him and now he is a movie maker.

Introduction

Overview: This section introduces the speaker's background and his parents' influence on his success.

Self-Esteem:

• The speaker attributes his extraordinary self-esteem to how he was raised by his parents in the first seven or eight years of his life.

• His father made 142 a month as a policeman and had two extra jobs to put food on the table.

• His father set an example of hard work, honesty, and integrity that the speaker and his brothers attribute their success to.

Letter from Father

Overview: This section discusses a letter the speaker's father wrote him when he was graduating from junior high school.

Letter:

• The letter encouraged the speaker to approach the future with honesty and ambition, to balance the rights of man with the rights of society, and to have faith in himself and others.

• The speaker admits to being a "total fuck-up" in his youth, getting expelled from school three times before the fifth grade and arrested four or five times, mostly for alcohol-related offenses.

• Since turning 60, the speaker has given up drinking in order to stay sharp and focused.

High Performance Person

Overview: This section discusses the speaker's commitment to being a high performance person.

Health:

• The speaker takes more than 100 pills a day spread over five or six times, drinks at least 3.5 liters of water a day, and exercises at least five times a week.

• His only health challenge is some arthritis.

Leadership:

• The speaker works hard to develop his leadership and communication skills.

• He is an example of a high performance person, not just in business but in all aspects of life.

Scheduling Podcasts and Reality Show

Overview: This section discusses the scheduling of a podcast with Bulletproof, as well as a potential reality show based on the Castle Seminar.

Podcasts

• A podcast with Bulletproof is scheduled to take place later this year.

• Another London Reel podcast is planned for October in conjunction with a night at the Castle.

Reality Show

• The reality show would be based on the Castle Seminar, which includes a dinner, six days of seminars, and a graduation night in formal attire.

• Attendees are expected to dress in business attire, such as coats and ties for men and the equivalent for women.

• The show would also include private time with the speaker discussing individual needs and desires.

• There may be a money element to the show, with seed capital given to the best attendee.

• The speaker and his wife will follow the attendee for a year through monthly conference calls and weekly reports.