Transcript for Hopping Over the Rabbit Hole: How Entrepreneurs Turn Failure Into Success
One of the reasons why championed today is his book. Hopping over the rabbit hole there's a lot of good chapter titles here one of my favorites is sell without personal. Because they think that so many. Or starting her own company there is this fear that in order to get through in order to break through to whatever audience you're trying to break through to you. You have to sell yourself. Yeah I think it's very if it isn't parity message you know more acumen is different mind walk and talk about this it. A good salesperson. Wanted man is somebody opened up person so. I try to train people that are in sells its average that your any console stated C. Here they are helps them here let's certainly there was something somebody as much as you're. So he's right. It's how to deal with the word no because. What often happens is when somebody says no no in my mind is the most powerful war which. It's two letters it's one syllable and we lowered it from like the age of eighteen months. Going to Texas though we are now work. Or when you're an analyst that you're asking the gras day that they've your biggest fears the word no and so no no no easy very be. Predictive in your life the way you can handle the work now is in this you know your successors here so try to tell people. Think it out selling formal. Consultation. Not from this like forcing. Quid pro quo exchange. Making anomaly here cool and try to help people and when someone says the work don't you. Well to me no spelled backwards on. And so I try to get him and got a game and figure out a way it this person comfortable meaning the products are right for them today. Let me build a relationship with them an actor needs change there may be an opportunity for me there you the conversation. Absolutely have to do that because if you know T. Europe Longley the opportunity absolutely future relationships if you require. I thought I was really interesting because one thing that every person that talks about whether it again whether it worked inside the company and there. Coming up through direct exports are starting their own company. Personnel issues the people you hire the people you surround yourself with even even you have no ambition to start company people who you surround yourself with in this life. Will dictate so much of no question that life. And you talk about not hiring quarterbacks instead hiring line what do you mean by that. Well you know I I idea had a debate my editor and I was a quarterback in high school on them too short to play in any other poison and high school but. But what I meant by that is you really want to hire people. Don't necessarily need to be this are. That they can support me there ego and he can do something wrong did dirty work. And some of them think the title I probably shouldn't sit you can hire quarterbacks that make sure they have the right he goes because you. You don't you're your colleague back a little younger I. They had because I was I was organ with my federal it was the it was one of my favorite chapters that you like you know I. There aren't used by next interview I'm not gonna do that let nobody. Detective I think you should know about it in in people because they think the hardest thing is to read people in the Hartley converts eat where they're hired. A couple of cases really a couple of watch their use of language OK when someone is describing their success. If they're saying I need. I did this idea dat won't let me say something about life in my opinion. Life is a collaboration and so no one group that has ever worked for me. People were with me seated differences that word. The four makes it subordinate the fort Mason like oh my ego I got to express Q how many people working for me. I think that's just not as people were Whitney. Were together in a collaboration. To. Create a purposeful goal for our clients and try to achieve that I'm looking for people. That use the right process the use we use our they think it needs. Right you know you remember this but my school teen. Together every one achieves more OK it's a simple basic concept I can get my staff or our staff thinking that outweigh. And what happens is. Two people can do the job of twenty people and so that that was a poignantly that you liked the title. And when you're a goal that I don't know on. I think you're. Eating out with an Obama yes you're right it's not your pre order it's pretty obvious it is my wife is initially well. You were actually be quarterback in high school them easily he wouldn't hire yourself. I don't might well I actually went higher myself you have to subordinate you re. That's the that's. She need more. You hear Gary big list so when when it comes I'll question let's come back at people's effort he. All for joining us now can use explain it. The title of the book and let it what you got lucky enough or go ahead. I did everything I titled it that way is coming at you is the first title the book was from nowhere to somewhere so just quickly on the I grew up in middle class family. I get very lucky ones who really good public school is going to tufts and Harvard Law School then go you weren't really hard work super art and so. So when I started my first business. We had a lot of fits and starts and and failures and successes and it ultimately was successfully sold that successfully. When I started this business. We win almost completely into the rabbit hole which is from Alice in Wonderland. The rabbit hole is you know you go to this bizarre world where bad things start to happen to you and you really can't predict them and so. The respect and with that title is it sky bridge we actually hop over the rabbit hole we miss. The failure that could ask you this correct after the financial crisis and so 20082000. And we're very rough years for me. On now I have a number of different businesses Simon real estate business I have a couple of restaurants we on the hunt and fish club on wild west 44 street. I own southern hospitality Justin Timberlake. And so I'm in the food business. You thought it just me in. I actually met him through his agent. He's aged so what do that are happening was we are we were trying to book him for the salt comforts. And I have to give us we couldn't afford him for the Salk. Kind of going with. Well I don't he's kind of view lautner there outs I'm happy to say he was over a million dollars. He's way more than that now by the way he's he's so much more infinitely thing. You want and mom somebody like that but that is an interesting things sent from people out there when you see these big celebrities performing. At conferences and things like that I see them all over social media yeah exactly cost a million dollars. Probably 250 on the low end to a million dollars on high but. But he turned out to be a phenomenal guy and he loves more acute food and Mike to business partners and I talk to him now become a partner of ours and summer hospitality. So so we have this wide range of businesses. My core businesses asset management and we all wants fails. In 2008 in 2000 and I wanted to write a very real story. So that somebody that was thinking about entrepreneurship. War going through something in their life they can beat it. And say okay this guys being honest I didn't want to sanitize or satellite you would I have read those stories and out. People and have the perfect career in the Oracle perfection is going like this and they did everything right eat and they. Sanitize all the mistakes they made out like I hate wanted to yes I want a young person to pick up this book is okay. I did this guy groping a blue collar family. He worked super or he mean a lot of mistakes I mean if I listen all of my mistakes this would be a phone book Atlantis as it posted a 200 page book. You think of all the mistakes that you've made what what is the one that. If you go go back and change it today that you know would you differently. Well there's many but they want specific when I was actually talking with this person's oh. Wife at the property Smith and her last week so my old boss John McNulty nasal recipes she passed away in November 2005. And he wanted me to stay Goldman Sachs when I left in 1996. And so I was leaving to start a registered investment advisor go out of my own. A see you really silly do that we've got a great relationship you can come here and work for me Goldman Sachs is asset management. Area that would have been probably easier less risky. It probably would have been more economically rewarding. And it was steel mining impetuous this in my stubborn as I could easily going to work with him and in five years later laughed. And so I ate ice sometimes really regret that you know we were talking about it I ran into his widow and and then unfortunately. He or second I do. I I missed a lot of the opportunity to work with him. But here is something I would say to you were listeners and viewers is that and allows you said it better than he saw paraphrase if you think he too much about your past. You've made mistakes in your past we all have. And so you have to you know now I think about them too much because you'll feel yourself with depression eating too much about your future. Well your future is uncertain we don't know the future's gonna bring it so we get anxiety so. Pass causes depression future causes anxiety. That sort of live in the present that the president would each other right now and enjoy today it is beautiful day and this great couch and Eusebio. He called thing is some. College Hockey this moment I think he's look at that right I gotta get it did mode you. If you didn't get mode you don't go on I make myself taller thinner that bit Moochie. And I actually am in real life. He. Air. They give you error you were better looking in person and that motion but that she's working. Thank. You did you hear out there watching right now allegedly working at the humane for me. We have questions yeah. Annie asks what do you think it's changed about entrepreneurship. With today's news technologies. Well for she wore in some ways it's gotten easier in some ways it's gotten orders obviously look at what we're doing right now. We're talking to you through an iPhone that iPhone is effectively now a television studio photography studio. A radio studio and it's a social media opening portal into FaceBook snatch Twitter all these other places and so. So I think what millennial some people of all ages for that matter to really use understand these technologies so. So for sky bridge what I would say about us. Is it because some sort of one of the order guys at the firm I've got to hire young people and get them into the firm would meet you explain to me these new technologies and how to deploy them effectively so. The good news for entrepreneurs today. The production of PowerPoint presentation and word V slide show or all the things that we edited ten or twelve years ago on our own. You can sort of do through the computer now and with great ease the graphics are better than Randy needs better. The delivery of information is a little bit easier or. But whipped out the information is more fragmented. You know so. Yet you have to really think about how you're gonna lay out your mortgage strategy across a lot of different segments of the economy in different segments of social media so there's no question. The stuff has changed dramatically. On and I don't know how old you are asking the question what if your on the young side makes street stay as current as possible. Well your shot higher the regular people to help you stay cart because let's face it when you're an old book it's hard to learn new tricks. It's a question in my early forties tell this to become nor the case that it was really really good question and it really depends on you and what you're passionate. What I finally people. Our I write about in the book. Archived for new words or that type of people that this is the only things they can really do. And so I ask you to look in the mirror and really think about what your journey is right now. If it's not completely. Untrue I just ordered new business were tried to get out there in the world of entrepreneurship. And it really doesn't matter you can start at any age as long as you feel it yet the energy. Yeah this Dominic for the ups and downs because here's the one thing. That I remember from Fred Smiths is speech Horford Fred Smith was the inventor of FedEx. He wrote a paper at the university of Pennsylvania's Wharton school about this overnight delivery service he got a C on the paper from his professor. I said okay Bremer dude anyway went to Harvard Business School and he graduated he created FedEx came back to the school. I was at Harvard Law School would oversee and speed I'll never forget what he said. And I knew how hard it was for that he's like but your heart was just or FedEx I never would have done it. And so my a little sister now a little more she's also in her forties. She just started this eighty gasket business on the Internet so yet what you can't beat new baby. It's called scare which he designs they're actually I spicy things season he I think the website is actually going up next month but. But she's got these beautiful baby. You know gas gets it to put together for newborn baby even her birthday. And she was reluctant to start this as long as you're willing did cake. The ups and downs of the business and recognize that whatever you how important thing is it's gonna beat out much horror. Then you should do you know that you already know letting your horror you're receiving your soul this is the reason why John McNulty at Goldman Sachs because. I always want to have my own business that was something. And I always felt even since the age of eleven talk about it paper route in the book. Talk about selling seats. Amend or consequences T shirts. I blew that up you read the part about the ice cream truck weren't lost half my money screen. I bought ice cream before the Boston Marathon. I've got to make a fortune it was rainy and 39 degrees and no edge no hot swap other doughnuts on the truck. And I lost 2500 dollars at a time of my life where I didn't need to lose it so. You have to be prepare for those things and if you are. There is nothing more exhilarating or more rewarding and do. We're questions. Arnie athletic from the most crucial step function take when starting any incidents. A. OK so really it depends on the business but I'll give you three simple things as they get out find people that are already in the business that you want to go win. And try to befriend them and try to creating network of strong people around you that can help you know how. Each first with yeah it's going on finding the right people because I think there's often this concern that. If you're a new convert to a business that people worried there might either seat was competition war as just somebody would nor. Yeah why wouldn't want to help you. OK so this is something that I think is elemental the success of entrepreneurs for whatever reason. There's a great bonding experience is like a band of Brothers and sisters and so when I find. He's at I'm on the phone constantly with. Guys men and women that have started businesses like mine. And it's almost like we have this collaboration. Were like okay what we really know or this is right let's try to help each other and so there's more of a cooperation. And there is competition and so yes. There's no question you'll get somebody that you'll want to hall and asked for advice and hang up on them all around you because they think that your competition but by it will orange. I have down by asking the question going out there and saying hey I'm getting started up so quick story sort of my first business in 96. The legendary hedge fund manager Steven A Cohen when you know. Now ranks of the call point 72 that he was running SEC capital I Cole call. And I should listen and figured assortment hedge fund and I know your name from what you see coming come up and see you signal problem. And so I drove up Stamford Connecticut I want to go see him in his office we spent two hours together. We became very close friends as a result of that and yes. I've gotten the Heisman you know summits that the army. I don't want to deal with me. But you have to do that because if you think you can build it very interesting group of helpers very interest in group of he positive people around you to you'll identify positive people in your attic when have a bad day pick up the phone call telling bodies that are. Doing the same thing and I'm doing they're probably had a bad day to rank draft pick me up. So no one reach out and try to create a network. Number two. I'm your business plan you've got to really really define your business plan that we've had been he's got that it's like what Mike Tyson says about plans. You know everybody has pleasantly partisan basis that you have to anticipate. That your business plan is not going to work. And that's with the third thing comes in Riyadh the state constantly creative about your business. I think I can tell you right now that this is that I and in. Will be very different five years from now in the or today Rebecca so others. To keep Kennedy. That recently that tell. I was curious its your here to talk about hedge fund industry because it has been a very difficult year yeah for a number of funds returns are down. And can only you know what you're saying that issue and brutal act is big girl yes well. What happens at an industry where does it go from here people keep paying that kind of money that they need funds. For the reasons that they're not getting. He's who the nominee is the last question first I say no the fees are gonna come down an area half in the industry if he's been lowered. Verna lower interest rate environment and so at all hours for less fees. And most managers have adapted to the lower interest rate environment. I had three came across the border at least we heard her. Back door deals being worked out all the different people in each time. Well because of regulations now you most of these funds that was holding most favored nation status so. They can't give me a better deal than you what's that we both coming with ten million dollars then there's an agreement that people have to be at the same. But what I what I do you think is happening is that some of the better manager it'll obviously Biehl at chart higher fees but in general fees are going to come down. But the answer the first part of your question is that I have been in the business as my 28 year on Wall Street. I have read he'll be traded hedge fund industry no less than six times over one is being written right now Rebecca little bit longer than the first five. President new financial reality. Well people railing on the industry. Them there's a lot of money in the industry. Eight probably. It may drop or more time if I was up and dropping more bush I was just. That was a go right back with game in the Lewis at the jet skiing yesterday accuser he plays Bobby acts on the idea the show. Billions we're talking about this we're talking about like the industry. Is one por people love the industry want our people want to hate on the industry. It's a very complex relationship that the industry with people. But here's that I would say there's three trillion dollars in henchmen in history back for reason. People that are good in this industry are doing their were there. They're adding. Performance. As a measurement of risk they're taking less rison more it. And they're helping people restructure our goals and hopefully sky proceed defeated you know we have a very good. We have not so good record this year were about tuning out percent. We have a very good 35 and ten year record we just won the hedge fund management work for the past five your record for a fund like ours over dollars. And I do you think that over time we will get this thing right. And so I think that reports of the death of that nature grades. How. And war. Here you go after. Days. I can only explain as he with a quick story so I mean. I'm in Hong Kong's Sunday morning my phone is ray you know tell him what little or friends from Goldman Sachs is calling me and saying. Superman is going to be so who Superman. That's league action he's still he's 85 today as the wealthiest. Person in Hong Kong. And doubt he's a phenomenal guys a number of different interest media property otherwise. And it was a Sunday morning and I get the opportunity to Rich's most successful guy in aegis on putting sued on getting more excited. I go over to his office security taking upstairs CN. And he's pouring a cup of tea for me and him. He's about deterrence and India at that time about 35. And he says okay if he tell me out a more. I'm Mike Rebecca I'm talking about the market the most successful person in Asia I'm fail him personally so. Memo to all of you out there you gotta listen that's like two years and wants out so significantly. Who cares about them organized prime never going to be she again or see you again. Com I'm exactly half your age please tell me something about your life. And I can take with me from us while. And Russia listen and for about 45 minutes he told me his whole story but the essence of what he's. Was you have to be money on the table for your partners he said when you're negotiating with somebody don't go for the last nickel in the transaction don't. You know chiseled person. On try to come out with a win and because what happen is two things number one person always want to do business with you. Number two people learn about the way you think in the way you operated business and the be attracted to you and we'll bring you business opportunities because they know your fair. And in the past these days you know you know national ethnical Anthony I said why mr. leases because shall walk away from the table. Likely will have gotten that last nickel. But the UBC unit and keep that needed to get to Nichols. And you're setting your soap opera pattern of on happiness we are always trying to win. At the expense of the other person and so this is one of the seminal meetings of my career try to write movement in the book. And it's really had not thought like that when Citibank was selling the alternative investment management business. I would have never been able to one transaction. In a competitive auction. I really tried to listen to what city they needed some it was price related Desalvo was also taking care customers and so we set up eight. Package that we thought a comedy and all those different facets rather just. And on price. How do you think. Think that rule applies if you're a person at some point I company didn't a lot of people out there who are typically accompany they're not for doors yeah they haven't seen increases. Over the last decade there's probably keep up you're listening right now you're thinking well. I I've left multiple things that he will be time here well yeah you're riches. Yeah. Yeah so. You know listen and I have total empathy for actors I am obviously work for other people died in that situation before where I thought that the playing field was on even. There's an expression of that October doors that they working eighty hours a week to prevent themselves from working forty hours a week. You know that expression meaning that they don't want to work for somebody out and hide her fortune. And destiny you the other person. But here's what I would say even in those circumstances. The best thing you can do when I tell listed even people on staff this guy average tell me what is unique. Tell me why you needed lay out the business plan put together what it is that you need to execute if somebody wants to make more money at my fur. Awful words but you have to add more you can't just make more money without making you more value for the company and the people around you so I always tell people. The Sonoma forget either raise but let's talk about what the expectations are on both sides and so if you're working for somebody right now. And you feel you're being underpaid or being under utilized. Try to see the boss or see the person you're working where there that people and try to develop that kind of communication. And I got to tell you something this gives people a tremendous and and anxiety Rebecca. Because they don't want to lose your job they don't wanna be be viewed by a rabble Rouse or most of us have fear about things like this in dealing with it. On but there's a way to do it and some get the person outside the office try to get him in a relaxed setting your over a drink or. Relaunched as soon be listening just need some advice I need some career advice on how to better myself. Allman I think most people are responsive to that some people are not. And you're out there you know your boss is a good person a man or woman and you know there. Com and and but the truth of the matter is telling kids is we sometimes have to work with people that we don't want this has been part of I spent probably you know I don't certain like all. When these guys that data dimensions and I love all you can't exactly it's not all your plays are awesome right. You're out you're at Saudi Arabia the only over or convert or. What went isn't it nice I actually get to black people. Mile path about how to ask for a raise or were they tell me that they have asked for one and Abbas at now. Yeah one piece of advice that I if people you work for companies are looking for this. I'll tell people per stop he greeted by. About you but second it's really hear that conversation. I understood from your boss your manager. What's expected of me how can have a conversation six months from now when eat all of those expectations. To reevaluate. This this question batteries because they think. Want to prevent that he's conversation. Is knowing what the expectations are so that he hadn't. EO. I mean you're you know we should write duo another Japanese we get paperback as it write that chapter because that is exactly right you half to. Here's the one thing I would say okay. Have to believe yourself and you have my worst moments I don't. I feel the bar exam twice and it really bummed that memo. I got fired from Goldman Sachs. I have been awkward situations where lost business clients fire me I could list all these things. The way you maintain that is you have to think of yourself as being enough. You've got recognized. And it roll putting our fans on the morning or skirts. We ought to do certain bodily functions we all are roughly the same OK and so. But we can't do is key to intimidated by people that are famous war. Or we can't get two and hated by people have more power a us. We have to view ourselves as being enough I'll tell quick story. My twelve year old daughter she's now twenty. But she's a very good singer she was in lane is a rock with you Jack in an Anne Hathaway 2012. This is going to act of 2008. I put her on the field at Shea Stadium. And Paterson god bless America in the seventh inning during the seventh inning stretch 53000. People. And I say to listen to me if you can do in this adding that each 1253000. People you're never gonna have any stage fright. Here's how high it is that you're gonna think of yourself as being enough. You could sing like this beautifully for me one on one just think of those 53000 people that there one person at a time you were sitting. As she did and she was very very nervous. But he totally changed her mind. Turns out she thinks that herself and so. If you're listening. You have to have the right self taught in the right mindset to believe Peter enough even had a bad day because they okay. You know people at that he's in so hopefully this book I've had so many bad days. I wouldn't analysts them all but by staying in the game staying focused and trying to do the right thing good things war. It's can't he's chairman and CEO as well. Hopping over a rabbit hole it will be coming out October 31 tally but it's available for prayer break. It is is also on Kindle and I books right now you can read your rightful. I think you some.
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