Young and Profiting with Hala Taha - Brandon Dawson: 97% of Startups Fail! How to Beat the Odds and Scale to 9 Figures | Entrepreneurship | E364

Episode Date: August 18, 2025

A few years after being voted 'least likely to succeed' in high school, Brandon Dawson defied expectations by scaling his first company from zero to $75 million. Since then, he has built and sold multiple nine-figure businesses. As the co-founder of Cardone Ventures, he helps entrepreneurs build wealth, scale effectively, and lead with purpose. In this episode, Brandon reveals why 97% of businesses fail and shares how to beat the odds and achieve business growth. He also discusses his core leadership principles and the key traits of a great business partner. In this episode, Hala and Brandon will discuss: (00:00) Introduction (02:21) His Early Life and Entrepreneurship Journey (09:27) Bootstrapping a Startup vs. VC Funding (19:10) Why Entrepreneurs Should Prioritize Cash Reserves (26:14) Scale vs. Scaling: Redefining Business Growth (36:48) Why 92% of Businesses Fail to Scale Past $3M (40:25) The ‘Law of the Lid’ in Leadership (45:47) Actionable Steps to Improving Leadership Skills (55:46) Building 9-Figure Businesses with Grant Cardone (01:03:01) The Key Traits to Look for in Business Partners Brandon Dawson is an entrepreneur, scaling expert, and co-founder of Cardone Ventures. As CEO of Sonus Corporation, he grew it to over 1,400 locations and raised $58 million. He later founded Audigy Group, scaling it from $500,000 to $35 million before selling it for $151 million. With over 30 years of experience, Brandon helps businesses scale using data-driven strategies, navigate breakpoints, and avoid common pitfalls. Sponsored By: Shopify - Start your $1/month trial at Shopify.com/profiting Indeed - Get a $75 sponsored job credit to boost your job's visibility at Indeed.com/PROFITING  OpenPhone - Get 20% off your first 6 months at OpenPhone.com/profiting Airbnb - Find a co-host at airbnb.com/host  Mercury - Streamline your banking and finances in one place. Learn more at ⁠⁠mercury.com/profiting⁠⁠  Policy Genius - Secure your family’s future with Policygenius. Head to policygenius.com/profiting  Framer - Launch your site for free at Framer.com, and use code PROFITING Resources Mentioned: Brandon's Website: bdawson.com  Brandon's Book, Nine-Figure Mindset: bit.ly/9FigureMindset Brandon’s Podcast, Building Billions: bit.ly/BuildingBillions-Apple  The 21 Irrefutable Laws of Leadership by John C. Maxwell: bit.ly/21-Laws  Good to Great (6 book series) by Jim Collins: bit.ly/GTG-Series  Rich Dad's Cashflow Quadrant by Robert T. Kiyosaki: bit.ly/CashQuadrant  Sell or Be Sold by Grant Cardone: bit.ly/Sell-Be-Sold  Start The Work by Natalie Dawson: bit.ly/StartTheWork  Three Feet from Gold by Sharon L. Lechter: bit.ly/3-Feet-Gold  Active Deals - youngandprofiting.com/deals  Key YAP Links Reviews - ratethispodcast.com/yap YouTube - youtube.com/c/YoungandProfiting LinkedIn - linkedin.com/in/htaha/ Instagram - instagram.com/yapwithhala/ Social + Podcast Services: yapmedia.com Transcripts - youngandprofiting.com/episodes-new  Entrepreneurship, Entrepreneurship Podcast, Business, Business Podcast, Self Improvement, Self-Improvement, Personal Development, Starting a Business, Strategy, Investing, Sales, Selling, Psychology, Productivity, Entrepreneurs, AI, Artificial Intelligence, Technology, Marketing, Negotiation, Money, Finance, Side Hustle, Startup, Mental Health, Career, Leadership, Mindset, Health, Growth Mindset, Passive income, Online Business, Solopreneur, Founder, Networking

Today's episode is sponsored in part by OpenFone, Shopify, Mercury, Indeed, and Framer. OpenFone is the number one business phone system. Build stronger customer relationships and respond faster with shared numbers, AI, and automations. Get 20% off your first six months when you go to openphone.com slash profiting. Shopify is the global commerce platform that helps you grow your business. Sign up for a $1 per month trial period at Shopify.com slash profiting. Mercury streamlines your banking and finances in one place so you can focus on growing your online business. Learn more at mercury.com slash profiting. Attract interview and hire all in one place with Indeed. Get a $75 sponsor job credit at Indeed.com slash profiting. Terms and conditions apply. Framework is the

designed first, no code website builder that lets anyone ship a production ready site in just minutes. Launch your site for free at framer.com and use code profiting to get your first month of pro on the house. As always, you can find all of our incredible deals in the show notes or at young and profiting.com slash deals. 97% of businesses fail out of 34 million and most of them stay at 3 million or less. If the business is going to grow and scale, the person in charge of the business must grow and scale. Brandon Dawson is the co-founder and CEO of Cardone Ventures with Grant Cardone, and he's a serial entrepreneur who's built not one but multiple companies into nine-figure success.

I wouldn't raise my first million. I made 100 presentations. I was laughed out of most of them. I bought my first business. I had no idea what I was doing between 26, 27. You ended up selling your next company for a lot of money, like 77 EBITA. Why do you think you were able to sell it for so much? Boostrap your company, be in control of it, and learn to force the company to make money. And if the company doesn't make money, there's sort of like a bottleneck or a plateau, a three, to five million that a lot of businesses hit. How do people get over this? You shouldn't be trying to push your business by spending more money and by hiring more people and by buying more assets. You should be trying. Yap Gang, get ready to 10 extra thinking,

your money and your business. Today, we're joined by Brandon Dawson, an incredibly smart business scaling expert who went from being voted least likely to succeed in high school to now proving everybody drastically wrong. Brandon is the co-founder and CEO of Cardone Ventures with Grant Cardone, and he's a serial entrepreneur who's built not one, but multiple companies into nine-figure successes. In fact, he sold his last company for $151 million, and he's helped manage over $2 billion in business assets. In this episode, Brandon talks about how he 10x his life, from ringing the stock exchange bell

at the young age of 29 to scaling multiple nine-figure businesses. We'll also unpack all the leadership strategies and strategic frameworks that helped in turn his biggest failures into a foundation of massive success. And guys, if you're new to young and profiting, don't forget to hit that follow button so you never miss a powerful episode like this one. If you're ready to stop playing small and start thinking like a 10x leader, then tune in to this one. Brandon, welcome to Young and Profiting Podcast. Thank you for having me on your show.

Today, you are a scaling expert. You scaled multiple companies to over $100 million. You're the CEO of Cardone Ventures. But when I was doing research, I found out that in high school, you were actually voted least likely to succeed, which is really surprising, considering how far you've gone in life. You're probably the most successful person

that has come out of your high school. So talk to me about how that happened, and what kind of a chip that put on your shoulder as you grew up? I don't think school has any determination on who somebody's ultimately going to become. And the one thing I was in school is I was very competitive in sports. In fact, it's the only reason I cared about school. My parents told me if I got less than a C average, they would not let me play sports. So honestly, the only reason I did anything in school is so I could play sports.

But I graduated from a little tiny school in the middle of nowhere in Carvalos, and it was kind of a joke with my classmates. It was a small school, 35 of us in our class. We had all been going to school together, most of us, since the seventh grade. I was the athlete slash class joker. And so it was kind of a running joke because I was the one with the worst grades. So I didn't go to school because I loved school. I went to school so I could play sports. And as soon as I was out of school, I was out of that little town, too. And you didn't go to college. You just went straight to work. Well, I tried. You know, I went for a few months until they told me I was going to fail map and have to do it again.

And I was like, I'm not doing this. I'm going to do something I'm excited about. And I moved up to Portland, Oregon and started inside sales and then very quickly moved to Atlanta, Georgia, become an outside sales rep for device manufacturer. And that's where I really grew up and realized I love selling. I love the randomity of traveling around to 11 different states at 18, 19 years old and really just learned to grow up working with older people. and it taught me a lot about how to communicate. And initially, you first started working with your family, right? Your family was in the hearing aid business.

And then you eventually got fired by your own family or kicked out of the business. So talk to us about what that was like and then how you ended up starting your first business on your own. When I was eight, my mom married a guy that invented the end-year hearing aid. And it was a startup. And so by the time I was 23, 24, we were the largest. many factory in the world. And I had been inside sales. I had worked in every area of that business. And I was the youngest of all the kids. It was a mixed family. But by the time I was 24, 25, I was running North American sales. I was director of U.S. sales. I had hired and fired all my

older brothers. And my parents started going through a pretty vicious divorce that went on for like seven years. And about halfway through that, the new family was coming in, whom I was very close to and still very close to, but I just felt trapped between my mom and being in the way of the new family. So I just removed myself from the situation and decided I was going to be an entrepreneur 26 years old. And so you took your skills from that industry and you started your own company and you ended up scaling it and selling it going public at 29 years old. Yeah, well, it wasn't such a great success story. I wouldn't raise my first million. I made 100 presentations. I was laughed out of most of them. I bought my first business, and I was the only person ever at that point to consolidate the

hearing care space. I had no idea what I was doing between 26, 27. Finally, Warburg-Pinkus backed me, and at 29, I was the youngest person to ring the opening bell, the American Stock Exchange. It was phenomenal. The experience was unbelievable, but trying to go from zero to 75 million in three years, buying 130 businesses was not easy. It taught me a lot. I learned a lot about Wall Street, and then one day, right at the point where I was going to be unbelievably valuable, they said, we're selling your company. So I didn't get fired. They just sold it out from underneath me, and I went and started over. Yeah, so that was a company called Sonos, right? Sonus, yeah. S-O-N-U-S. We've got a lot of entrepreneurs tuning in, and you starting a company

at such a young age, you raised money. What are some of the lessons that you learned that you were like, I'm never going to do that again if I start a business? Patience, perseverance. and persistence because, I made hundreds of presentations. I was laughed out of most of them, to be honest with you. I had a deal full of a half a billion of businesses. I couldn't raise enough money fast enough to close on them. I couldn't integrate them fast enough. I couldn't systematize them. You know, this whole idea of creating a platform company where you're 125 to 175 million, you have all the technology, all the systems, all the people, all the leadership, all the marketing, sales, everything's perfect, everything's flawless. It sounds great, but it was a beast.

trying to shove it all together in five, six years. And about the time I shoved it together and we were going to be a global leader was in 2001 when the tech industry busted in my private equity group, I was in a fund and they said, hey, we're liquidating the fund and we're going to turn all our equity to cash. And, of course, getting flushed into that system wasn't something I was very excited about. But I learned the most important thing is I was a victim of private equity for a year or two until I realized I created my own conditions. And I also was a victim of the time.

2001, there was a lot happening, and then September 11th happened and everything changed. The point here is the biggest lesson is I want to be in control of my destiny. I didn't want to use anybody else's capital. I never wanted to be in a position where somebody could flex on me, tell me what to do, and certainly sell my company without me wanting it to be sold. So I decided I was going to reinvent how businesses were built for small businesses and the marketplace was showing me a huge opportunity because 97% of businesses fail out of 34 million and most of them stay at 3 million or less.

So I just saw a massive opportunity to reinvent how small business can be scaled up. I want to double tap on this because it's really interesting. One thing I didn't get to introduce myself properly when we first started. I'm an entrepreneur myself. I have two companies, basically. I have a social media and podcast agency.

And then I have the number one self-improvement podcast network. So I get podcast sales for people like Russell Brunson and Neil Patel and Jenna Coucher and all these really big. It's awesome. Yeah, it's awesome. And I bootstrapped my company. I just sold what I was good at for myself, like LinkedIn and podcasts and getting sponsorships. And then I just started making money and did it step by step and bootstrapped. Now I have a new boyfriend who is a VC entrepreneur and he raises money.

And our experiences are totally different. His is not about being profitable. He just has to grow three X a year and just raise more money and raise more money. And for me, I'm just making money and that's all I'm focused about. And he's got way less equity than I do and I have almost 100% of my company. And it's just so interesting the two different paths for entrepreneurs who haven't started yet. Just talk to us about pros and cons of taking VC money versus just trying to bootstrap yourself and like when people should think about taking money if any time. Obviously, VC, private equity, they all have their place.

If you have something that you can time to introduce into the marketplace to reinvent a space that you need massive horsepower, you need great relationships, and you need sophistication of people that understand how things are supposed to work along with their network of people, venture capital and private equity is a perfect place for that. If you're a novice entrepreneur with an idea, most of you aren't going to access private equity or venture capital. So you've got to have something that a venture capitalist or private equity group really says this looks amazing. So you could spend all your time pitching to never get a deal. So you can waste an enormous amount of time with your concept of your business and never find funding for it. And you've got to remember 97% of all businesses fail. So if I'm at VC and I've got $100 million, and I'm going to go put $3 million into 33 companies, I only need one of them to work, and I can still get my returns marked at 3, 4, 500 percent.

Whereas if you're the entrepreneur and you're one of the 33 that succeeds, that's great. But if you're one of the 32 that fails, they'll also cut you off of the knees faster and you can blink. So it's not for the faint of heart, and you better have a solid plan, and here's the thing about businesses, and you'll know this more than most people understand, that what you do is only going to get you so far. It's who you do it with and how you do it that's going to scale and create value. And so you can have the greatest idea and be the smartest technician and be the greatest inventor, but most likely at some point you're going to screw it all up because you don't understand leadership. You don't understand all the science behind actually finding, attracting,

aligning, and developing and keeping great people. You don't understand how to actually properly run a sophisticated financial organization that's responsible like a public company would need to be. And so all these things get learned through trial and error. And VC is not patient money. And private equity usually has a fuse on it somewhere between four and seven years. And if you're trying to personally scale up and learn all these different things, at the same time, you've got to create the product, deliver the product, make the product work, make sure it's differentiated in the marketplace. That timing usually doesn't work out. So they start bringing new people in and they start cramming down and you need more funding. And next thing you

know, you don't have control of your company. They do. And they've got better choices because the thing you built worked, but they don't need you involved anymore. And you don't know how to handle the other aspects of the business, which is how and who, and you end up getting replaced. And that's usually, and Steve Jobs even went through that cycle. So that's usually what happens. And if you don't have the stomach for that, and statistically, if you're going to be the 32 that fail versus the one that succeeds, then I think there's a different way to do it, which is the way you did it and the way I've done it now four times over. Which is bootstrapping. Yeah. Okay, so you ended up selling your next company for a lot of money, like 77 EBTA, when you usually.

Usually things sell for like four to eight X, right? Why do you think you were able to sell it for so much? And were there things that you did intentionally to ensure that you were going to sell so much? So when I launched the business, first of all, I was the first person to create a what I call reverse consolidation equity model. The problem with the consolidation is you go raise capital from VC or private equity. You go out and start acquiring a whole bunch of other people's problems. Then you got to systematize them.

Then you need to build leadership. all this complexity. And so usually you go through a period of when you're buying, you go through devaluation on your way there. So you're always trying to raise more capital. You're always, you know, the idea you could be out of business any time. So more money, more money, more money, more money. Your story gets diluted.

People stop believing in you. Every time you do a valuation, the next round evaluation, it gets less in value because you need more money. And so you go through all this, what I call the devaluation cycle when you're using other people's money and then you ultimately lose and give up control and then it becomes is it really worth it with everybody mad at you and things not working and those are the cycles so if you know that that's what you need to be prepared for

then the other option is bootstrap your company be in control of it and learn to force the company to make money and if the company doesn't make money you don't have a lot of headaches because you don't have a lot of people and if the company does make money and you set up your reserves you have enough money to invest in the next iteration and if you make a mistake you don't have somebody cut in your throat because you don't know what you're doing and they're going to get rid of you. When I was running around with my private equity groups, I was looking at what they would define as platform companies. A platform company is between 125, 175 million. It has leadership. It has systems. It has processes. It's profitable. It's predictable. It's got growth trajectory. And it's

dependable because all private equity, venture capital is entirely different. Private equity likes to invest in things. It's predictable. It's consistent and it has upside. Otherwise, they're not interested in it unless they're going to consolidate it into somebody else they like and they're just investing in you to get rid of all you and the people around you. So you got to know who you are and what kind of target you are because a lot of people are excited, oh, I'm going to do a deal with private equity and then they close and then they're fired and their teams wiped out because they were a bolt on or they were a plug-in or they were a whatever. They just got rolled inside of somebody else's organization.

So seeing all this, I was like, how can I in the small business space create multiple platform companies and that gave me the idea of reverse consolidation instead of me raising capital and diluting my equity and going out and buying businesses and trying to turn owners into employees,

which doesn't really work very well, why don't I start a platform company and go to owners who are struggling and say, I'll build marketing, sales, leadership, operations, finance, technology, you can offload all that to me. And instead of me buying your company, I'll give you equity in my company and with the right to swap to buy into your company at a predetermined valuation. And I was told it wouldn't work. The SEC said I couldn't do it. All this taxation issues,

franchise laws, I bumped up against all that, but I was able to create a workable model that I launched in 2006 with the idea that if I could build a prototype to consolidate a vertical I could do it across hundreds of verticals. I launched that business, bootstrap, built the rules and requirements of how I wanted to build a business without needing anybody else's capital. And read a lot of books to really become an expert in the things I was not good out the first time around. And then all of a sudden, by 8, 9, 10, I was Inc. 500, Inc. 5,000, Fastest growing this, fastest growing that, entrepreneur of the year. And so I hired a research firm when the market went to shit in 2009 because of the real estate space. and I was able to hire FTI, a billion-dollar research firm,

and I looked at 10,000 verticals. I hired eight people inside from Wharton and Stanford, and I wanted to understand what makes businesses work, what causes them to fails, what are the things that we could create from an infrastructure, and I built what I call now the transformational growth platform, which is taking belief, operational effectiveness, and leadership, and in the center of all that,

scaling it from zero to a billion. there's 11 breakpoints from startup to a billion dollars we identified seven from zero to 125 million and just reverse engineered based on the businesses approved they could become a platform exactly what's involved with doing it and I built basically 10 elements 76 subit elements and 240 things you got a master to get to 125 million and then it multiplies that to get to a billion I built it all off the research with the idea that when I sold my business I was going to start a new company, which is Cardo Mentors now, one of my mentors told me in 2013, you can't just go start a whole bunch of new companies. If you don't prove this concept work where you're using a shared

equity model with your clients versus a crammed down acquiring model, you've got to prove the cycle. So what I did is I looked at all the highest valuations paid for businesses with the same research company. And I said, why did some of these businesses sell for 30, 40, 50, 100 X EBITDA? What did they have? And I took that, put her on top of the other model I created, and I had an idea in 2013. If I positioned my organization, like the highest valued companies that sold, and I sold it the way they sold, I could command one of the highest values for me and my partners. And I went, and on 2015, I did a roadshow, eight specific targeted potential buyers,

and these are sophisticated, like EQT out of Europe, you know, 56 billion dollar PE group, Siemens Medical. These are not small companies. And I pitched them, and my pitch was, I'm Brandon Dawson. I have a $35 million company. It makes $2.2 million in EBITDA. I've reversed engineered your business. And if you acquired me, I would add $2 billion worth of value within 36 to 488 months, and I want 10%. That was my pitch. I was totally, it would never fly. I had eight presentations. I had eight bidders. It was a reported 151. It was an actual 189. It was better than 77X EBDA. And the company that acquired me was a billion, and within three years, they were four and a half billion in value. Yeah, bam, picture this.

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One of the things that you mentioned is that significant cash reserves were really important for you when you were growing your business. Talk to us about the importance of having cash reserves and how you think about it and what is a good amount of cash that we should have on hand? And the reason that was a rule is because literally four years of my life in the previous company, I would be sweating by 10 o'clock in the morning every other week because I'd have payroll coming and I was always short, 200 grand, 300 grand, and I was dialing for dollars and I was scrambling to try to get money and I was like, I am not going to live that way. It's so horrible.

And for any entrepreneur that's living that way to date, there is an alternative. The alternative that I decided I was going to create a rule for myself when I started my company. I turned the whole idea of revenue, profit, and cash into a game. And so what I did was when I launched my company, I had 90 days of cash. And I told my team, for every two weeks, here's the target we have to hit in revenue, and it buys us two more weeks of being in business. And when we launched that business, June 15, 2005, I had literally 90 days of capital. My target was to generate 15,000 in the last two weeks of June.

I generated 76,000. So then my goal was to get 30 days of cash reserves. So if I went to zero, I could live for 30 days. That was Target 1. Target 2 was 90. Target 3 was 180. Target 4 was a year. Target 5 was 18 months of cash in my account.

So I never had to think or worry about money. It showed a discipline in the business. Well, within 36 months, I had 18 months of cash in the bank. I never once thought about money in that 14-year cycle. I was running events with 12, 1,400 people. I would pay for millions of dollars. Money became zero issue, and that's the discipline. And that's how we teach business owners to grow and scale.

Consequently, I launched this business with Grant Cardone six years ago, and I said to him, we're going to launch a business. We're not going to use any money. I don't want you to put any in. I'm not going to put any in, and I said in the first 60 months, we're going to go from deadstop to 125 million of revenue, and then the next 60 to a billion. We just finished our fifth full year, it's five and a half of years. And last year, between Cardo Ventures and TenEx Health, which I bought Gary Breck's $1.5 million business, and then turned it into a $125 million

business within 36 months. So between the two businesses, we own 99% of Tenex Health and Cardo Ventures. Last year, we did 240 million in revenue. We made $45 million of EBITDA, and we've never borrowed a dime. We've never invested a dime, and we have cash reserves about $50 million. So do you recommend 18 months to be like the ultimate goal for entrepreneurs to have on hand? Ultimately, because people will say you don't need 18 months. Of course you don't. But if you had 18 months and all of a sudden you can buy a competitor and you had an extra

cash, that would just accelerate your growth cycle and you have confidence to be able to run it. But if you don't have 18 months and you've got one month, you're never going to buy anything and you're never going to risk anything. You are going to. You know this. I don't know how many people you probably hired thought they're going to save my life. And then you're firing them six or nine months later. Like, they didn't do shit. They caused problems.

If you're a young entrepreneur, as you go through the growth cycle from 1 to 3 million and 3 to 8 million and 8 million and 8 to 15 and everything, everything, everything, everything, everything, everything. everything dynamically changes with a multiplier because when you're three million or less and you know this, you're doing everything. When you go to 8 to 15, you now have to do everything but through other people. And if you're not skilled at finding, attracting, aligning, developing, and keeping great people, how do you do it through other people without them degrading what you did that worked? And if you can't, you end up breaking and going out of business. By the time you're 25 million, on average, you've got somewhere around 50 to 150 people working for you. If you've never taken a leadership class

or you've never taken a communications course or you didn't become an expert in personalities and communications and leadership, you're in big trouble. And so the things you need to evolve, if the business is going to grow and scale, the person in charge of the business must grow and scale. I've never seen an entrepreneur

that built a $3 million business that stayed a $3 million entrepreneur and grew it to 100. So the business will follow the leader, 100%. And then after $15 million, the business will follow the leaders. And then after $45 million, the business will be culturally the leader.

And if you can't make those transformations, you're out of business. Let's go deeper on some of those concepts. So one thing I want to talk about, you were just talking about teams. One last question on your sale of audigy. Is that how you pronounce that business audigy? That's correct, yes.

You actually shared some of the earnings of when you sold with your employees. So just curious on, is that not correct? No, that is. In fact, I was going to add to it. When I started the model, I shared 45% of the equity with my customers on an innovative program I put together and my employees. So your employees knew when you were hiring them that that was part of their compensation package. Yeah, I had a very specific, this is where most business owners, John Matt, Maxwell talks about 21 eerie feudable laws, a leadership law of picture.

I love that book. Where there's no picture, people get lost. They get confused. They don't know where they fit into the picture. So they start emotionally self-selecting in or out of certain things. And how many times do you think a business owner set back and said, man, I was just getting ready to promote that person and then they quit? Well, because that owner did not paint a picture.

There was no destination. The employee could not see themselves inside of the owner's bubble. They couldn't translate if I'm here eight years or 12 years, what do I get out of it? How much could I put in my bank account? How wealthy could I become? Because no business owner generally starts their business with a 10-year plan showing valuation enhancements and increases and what it means to the individual because they build it year by year, step by step, brick by brick from the ground up until it traditionally collapses

because at some point your best people feel overwhelmed, overworked, underappreciated, and they have options. So if you can't keep your good people, every person I hired, in fact, my president started first job he ever had, and I said you're going to have seven to eight bosses. And if you want to quit at any time I put a boss in charge you, then you're the wrong guy for me to let you run this company eventually. And he's like, but I don't like these guys. I'm like, yeah, but I have to hire them because they technically know how to do the work

that you don't know how to do. And what makes you great is you culturally understand the organization and you represent the brand. But if you culturally, operationally, and financially don't learn to integrate those three things, you can't be in charge because you won't understand how to grow the people underneath you. So you have to have the competency to do the job, not just the confidence to do the job. And so everyone understood it. When I sold the business, 65% of my leadership that got 15 million out of the business, it was the first jobs they ever had in their career.

Wow. All right. So let's move on to some of your scaling and leadership, principles. First off, you always talk about the difference between the word scale and grow. Can you talk to us about the difference? Scale versus scaling. People confuse those things. Scale is maximizing what you have. So if you're a 10 million of revenue and you're making 15% profit, before you try to go to 25 million, you should try to go from 10 million in revenue to making 3 million in profit. That would be scale, maximizing what you have. Scaling is the rapid expansion

of what you can prove work. So now, once I'm 10 million and I'm, move my $1.5 million to $2.5 million of profit. And I'm feeling like that's a really good spot for our organization. So instead of trying to just bank a bunch of revenues, I'm actually trying to increase the bottom line, create bigger cash reserves, create discipline into the organization. And basically, once you do that, and then you're like, okay, I'm going to hit the go button because I have safety. I have cash reserves. I have great people. We know what we're doing. We were able to improve the performance of the organization, not just chase revenue. And now I'm going to bump to the next level because the thing is, is that each time you bump in 10 million increments, what got you to that 10 million isn't going to get you to the 20 and what got you the 20 is not going to get you to the 30.

And if you're the main driver of the business, you have no idea what you're doing. And if you think you're going to hire anybody to come fix your problems between 25 million and startup, you're wrong. Most people you bring in will break your business because they're bringing in the context of their problems from their other jobs and they're bringing them into your little business. So if you want to go from zero to 25 million, you're just going to have to concede that you have to homegrow that team if you've never done it before because you don't know what that team actually looks like. And you've met plenty of people that are like, oh, they're $6 million of revenue. Here's my CEO, here's my CFO.

Here's my CMO. There ain't no CEO, CFO, CMO that is worth their weight of anything you're paying them at $6 million of revenue. Those are $75 million to $125 million jobs. somebody considering their CFO and their CMO at $6 million in an organization like ours or yours would be a director level. Someone make an $80,000 to $150,000 a year. They don't know anything about a $25, $50, $100 million business. So what happens is business owners hire these people in, they get close to them, and then they're constrained by the competency, the skill set, the leadership abilities, and the thinking of the person they gave a big title to, but they've never actually

run a big company. And so now they're stuck. And all the decisions they're going to be made across the spectrum of five or six people are all going to be wrong because nobody's ever done it. And so you just have to own that. And if you want to build a $25 million company, you have to say day one, I have to grow into being the kind of leader and responsible business owner that knows how to build a $25 million company. Once you make that commitment, you're like, what does a $25 million? responsible, profitable, successful business look like. And if you don't go out and find that data, then you have to concede you're building your business through trial and air.

It's the slowest way to do it. It's the riskiest way to do it. And if you let your ego get involved, you're going to go out of business. Why don't we take my business as a case study? And you can tell me, what do you think I should do? Or like, because I'm kind of at like a pivotal point. So my company made $7 million last year.

How many employees do you have? I have about nine U.S. employees and like 40 international. We do a lot of international talent, lots of people in India, in Nigeria. In terms of my executives, I just have two. I have one girl, Kate, who helps me run my social media agency and then my business partner, Jason, who helps me run my network, who's more of my C-O. To your point, we don't have fancy titles. We don't have a C-It. We have, like, somebody who helps us with finances, but he's not a CFO. And I haven't really spent a lot of money hiring executives yet, because to your point, I feel like when I do hire expensive U.S. hires, they don't do anything. Like, they're not helpful, especially at this

stage, because to your point, they don't know enough. Kate, for example, who's one of my highest paid employees, she was an intern that started with me seven years ago. We want to get to $30 million in the next three years. What do we do? Zero to $3 million is just the thing that you do it has to work. Now, you just mentioned that effectively you have two different businesses doing $7 million. Yeah, I have two different business doing $7 million. My podcast itself makes a million a year. It makes a million and the other business makes six? Six and a half. So what you got to look at, those are two separate businesses. And what you already said is you have a service leader, somebody who's running each of those businesses is what you defined, right? So you have a key

stakeholder in each of those businesses and then you're the visionary. And then you hire and help for finances and things like that. So that's how it's built. The what you do will get you to three million, who you do it with gets you to eight. So what's allowed you to get to where you're at is you've got a couple people you can rely on and depend on, and I call this the rule of three. I've never seen a successful $8 to $15 million business that didn't have three stakeholders because no one person can do all the things that you need help doing. You can't run a podcast plus an operating company, plus be the host, plus be this, plus be that, plus be doing the books in the middle of the night.

You can't do all that and be $8 million by yourself. It just doesn't work. So $3 million, you can get there by yourself. The move to $8 million, there ultimately is always going to be $3.000. people involved with doing it. To get to 15 million, those three people need to evolve to critical positions in the organization. The visionary founder, you're going to be one of those. There's no question. But if you don't flank yourself with a controller level of financial person who is easy for you to communicate, easy for you to get along with, easy for you to trust, because theft is a

big thing in these businesses, if you don't have that by your side, you're going to start making technical, financial decisions that will break your company eventually. The other side of you is you're going to need that operator, that person that you just talked about, but they're going to have to help you across both organizations. Now, that moved to $25 million. By the time you get to $25 million, because you're going to be running your business on somewhere between 12 and 17 different systems at $25 million. You're going to have your CRMs, probably different ones for different businesses. You're going to have your technical teams. You're going to have your different automation you're running on. You're going to be using your social media. All this needs to get

consolidated into something that you can look at and take action against. And at 25 million, you're going to be having to switch your business from cash to accrual somewhere in there, which means you're going to start changing compensation structures. You're going to piss off people. You're going to start realizing that the money you book is revenue, is really deposits. And so you're going to think about the context and the strategy, your business is a little different. You're going to need a different caliber person who can make that transformation financially for you. We did that already.

We did the accrual already. Perfect. So you go from cash to a hybrid, cash accrual, and then eventually you go full accrual. So these are all the things for your business to mature. But at $25 million,

you're going to need five people that are running your business alongside of you. You're going to need a financial person. You're going to need some level of technology person. You're going to need your operating person. You're going to need your salesperson

to make sure you're closing and getting the money in. And then you're going to need you, setting the tones. Here's where we're going. That rock, over there is where we're sailing to. There's no compromises. And we're going to do it within the boundaries of how we structured and run the organization. You're going to be looking at cash

collected daily against monthly targets divided by 30 days. And people say, but we don't work 30 days. There's only 20 days in a work week. You're like, no, that's a rule that somebody else made up. We take money in 30 days a week. So how do we offer things where we can collect money or how do we run dual teams so Saturdays and Sundays we can also generate capital? Somebody has to be in charge. And this is what happens with businesses is they start to grow. The business owner gets trapped in doing all the work and hopes the people they surround themselves with, they're going to set that tone. But those people have never been in that kind of environment. They don't work in that environment. The work-life balance starts to become a conversation, all because targets are being

missed. People are not making the money they want. And all that way starts landing back on your shoulders and people are saying, you don't give us the attention, you don't give us the time, you're too busy. You're not giving us the right direction. I would start today at seven and say target is, if you're going to do 30, you might as well through 45 because what you're going to happen you to get to 30 isn't going to be any different to 45. You could say 25 and say, okay, this is what it's going to look like. At 25, I'm going to have four other partners. At 25, we're going to be running 25 percent profitability. That's $6.25 million of profit. We're going to be generating $2 million on average, $2.2 million, every single

month, divide it by 30. That's our daily cash target. And I'm going to be looking at that cash collected every single day. And if we're ahead of schedule, we're going to adjust our target up. If we're behind schedule, we're going to attack it and get back on target. And you're going to drive with that level of intensity. And if you don't, and you're like, oh, it's working and I hope it works. And they're going to be great. It's all going to fall apart around you. And that intensity never ends all the way to 125 because to go from 25 to 45, 45 to 75 to 75, you as the owner are going to have to make the leaps and bounds of a skill set adjustment. And the way I have done that is I bring retired people in who are really an authority. I hire them for up to 18 months to

work side by side with the younger people I'm developing. So they understand how to make the move from cash to accrual or hybrid. They understand what cash collected is. They understand how to put money aside and how to get money on the money. And they understand how to manage the balance sheet. Somebody has to teach, if you have a great finance person who's young and hungry, that you trust. Somebody's got to develop them on what a $125 million CFO looks like. Well, you start hiring those people, and then if you don't like them, you get rid of them and get somebody else, right? But you're not burning out. You're one person you really like, but they just don't know what they're doing. And the biggest risk is those people aren't going to want to let you down and they're

not going to want to show you weakness. And you're going to find out something really bad when it happens, but they're not going to let you know it's happening to fix it ahead of time because they're scared that you'll lose confidence in them. So that's what you're going to do to get to 25 or 30 million. And hopefully this was helpful for everybody else tuning in that's in my spot because it seems like it could apply no matter what industry you're in or anything like that. Hello, young and profitors. Running my own business has been one of the most rewarding and overwhelming things I've ever done. There's always something to figure out, and even small decisions can feel huge. Now, what really helped me was finding a platform that just gets it.

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So how do people get over this? And what are some of the common challenges that you see at that stage of entrepreneurship? Just statistically, 34.5 million small to mid-sized businesses, 92% I believe are stuck at 3 million or less with 12 employees are less. So it is break point one.

And that's because the what works and then you hire a friend or two and then maybe you got your daughter or your wife or your mother working in the business. And so things are kind of working because you are good at what you do. Now you're at three and you're stuck and your profitability shrinking. You don't really know how to manage your business well because you have all these personalities.

You're not exerting leadership because you don't end up to set your mother-in-law and your daughter or your wife. People are tiptoeing around each other. But now you're spending more money. You're hiring marketing agencies. You're hiring employees. You're buying vans or you're increasing your location size. because you're pushing your business to growth.

And all along that you're pushing it, this is scale versus scaling, you're getting diminishing returns. As you get diminishing returns, you start to get flustered, you start to get frustrated, you start to get fear, you start to have anxiety,

you start to get more stress because you're making less money and you're working even that much harder. And you start to give up on the idea of getting big and you decide to settle on what worked with the people it worked with. This is the cycle these businesses go through. I call it the washing machine cycle. It just keeps going.

You take something out of washing, you put some out of washing, and they're still banging around, banging around. And it's because the what you do is only going to get you so far. Recognizing from 3 to 5 million scale versus scaling, you shouldn't be trying to push your business by spending more money and by hiring more people and by buying more assets. You should be trying to slide to 5 million

with the same people, the same assets, and the same resources you have at three, because there's no way you've maximized your operational effectiveness in your business when you have no idea what you're doing and you assume you do because it works. But it will not work when you go from three to five. Increasing the costs,

increasing assets, increasing time isn't the thing that's going to take you to five. Being more efficient, being more effective, hiring higher quality people who can execute without you babysitting them and do it for you instead of you, instead of you doing it, these are the things they're going to move the business and they will pull the business up versus you shoving it up. This is why so many business owners wear themselves

out and that if you listen to people, they'll use the right language. It's like rolling a huge rock up a big hill. Yeah, because you need a team to pull a rock up the hill. So you doing it because you're good at something and you've been doing it is the thing that's going to kill you. That rock will rule back on you. You recognizing you need to surround yourself with other people who are as committed who want to help you pull that rock up the hill and they come alongside of you, well, that's a different skill set because you have to create that. And you can't do it. No accountability, no discipline, all that stuff in your business. And you can't do it by giving people bigger titles because you don't make enough money to give them raises. Those aren't the things that are going to get you there.

And if you don't technically choose to change who you are, how you think, and what you do as the leader of the business, you're guaranteed to have the business follow the leader. As we're talking about these leadership principles, you brought up John Maxwell, who I love. I've been to a bunch of his events. I haven't interviewed him yet, but I love his books. And you mentioned one of his principles. You also talk about in your book, The Law of the Lid. Can you talk just about the importance of the Law of the Lid when you're thinking about leadership in a business? You know, I was not a good leader in my first business. The first thing I had to acknowledge is I really sucked. I was practicing on everything. I let my ego get in the middle of it. I thought leadership was telling people what to do and demanding that they do it. It was really all backwards. Okay. So when my mentor, when we went through what I did well and all the things I screwed up when I was going to reset and start again, he gave me a list of books based on where I identified my biggest weaknesses, leadership, operations, finance. And he gave me a bunch of

books. John Maxwell, 21 irrefutable laws of leadership, Sharon Lecter, cash flow quadrant, beyond positive thinking because my thinking was broken. Jim Collins, good a great, great by choice, how the mighty false series, gave me all these books. I said, read those, come back to me and tell me what you did wrong the first time around. So I had that context, contrast, right? You need that as a business owner. And I came back and I created this massive list of all the shit I did wrong. And then I started reading the books and fill them in the gaps. And the first book on leadership was John Maxwell's 21 irrefutable laws. He ended up writing three, now he's got four,

but he ended up writing three additional law books, so he had 53 laws, and then I created a whole algorithm out of the 53 laws. But the first one I read in the first chapter was Law the Lit. Lit is a cap. You cannot be a five leader and have eights working for you. They'll leave you. You can't be a five producer and develop ten producers.

They'll leave you. You can't be an inspiration as a three. Oh, business sucks and everything's hard and expect people to be excited and work for you. So it just became so obvious when I started getting into Jim Collins and John Maxwell, I realized there was three lids in business. Lid is the cap. It's the belief lid.

The higher you believe, the more energy effort you'll push into achieving it, as soon as you lower your belief, you give up on pushing. So the higher you believe, higher you achieve, lower you believe, lower you're capped. Well, the only way if you believe high that you're actually going to reinforce getting there is through operational effectiveness. So I realized there's an operational effectiveness lid in the business. If I'm a three sales manager, I'm only going to produce twos and ones. If I'm a three producer, I'll have twos and ones. So the only way for the business to grow and scale, proportionate to my belief about what's possible, is if my operational effectiveness grows

in scales. So conversion, all the numbers and the stats, and all those things have to grow, or eventually I go, oh, it's not going to happen, or my team says, oh, he's crazy. He believes he's going to be $100 million, but he's been doing $3 million for 10 years. Nobody believes me anymore. Well, to have high effectiveness in operational effectiveness, and to have a high belief,

there's three stages of leadership I identified. First is the me leadership. Do I have the patience, the persistence, the perseverance? If I really believe in getting to $125 million, I am never giving up until I get there. I don't care if I fail a thousand times, I'm going there. Okay, now, that takes strong me leadership. People like, oh, we can't do it.

It's not going to work. Screw it. I'm going there anyway, right? Strong me leadership. If I lower my me leadership, I am guaranteed everyone around me is going to lower their leadership expectations. But once I start going, I have to create we leadership because that move from $8 million to $15 million to $25 million is no longer me propping everybody up.

It's the core leadership team telling everyone and inspiring everyone, we can do it, we can do it, we can do it, we can do it. I can't do it all by myself. But something magical happens. So that goes from me leadership to creating we leadership, a group of us doing it. That'll be three at 15, five at 25. At 45 million to 75 of your business is still pushing, it becomes us leadership. And the definition of us leadership I created was cultural leadership.

Your group and your company is pushing and, pulling the company to success. Because if you take the statistics a gallop poll for 25 straight years, every year they interview 100 million U.S. workers. Two-thirds say they're actively disengaged or disengage. 18% admit they're sabotage in the company. So if you have 100 employees, 60% are doing little to nothing and 20% are trying to put you out of business. So that's a lot of weight for the business owner to hold themselves. But by the time you make those moves, your we leadership teams dragging those people, but at 45 to 75, your culture, your people who have been there and they're committed and they got your logo and they believe in what you stand for and they believe

in you and they believe in where you're going and they believe they're going to win with you, they'll run off the bottom 30, 40 percent. And so if you cannot understand that it goes from me to we, us, and you grow yourself your lid, because those are all three different lids, that's why when people are like, oh, I'm a great leader, how many employees do you have, 20. You're just benchmarks against the wrong person. You're good from where you came from, but you're not good to what is available. And I think most people get stuck on where they came from versus what's really available. In terms of actionable steps that people can take to level up their lid, you mentioned a bunch of really great books, which we can put in the

show notes for everybody. What else should people do? Should they get a mentor? Should they join an entrepreneurship group? It's a tricky subject. First of all, on the books. I consult, I took 15 books that I created my business model, and I highlighted, if you went to one of my events in 2008, you would have had 15 books in front of you, and there would have been 500 tabs and my notes as to why those 500 tabs are relative. I consolidated a majority of that for the belief aspect. So the three lids, belief operational effectiveness and leadership, I consolidated the belief into my book, nine figure mindset. So if somebody's, how do I take the shortcut to not having to read all these books? You can simply go to my nine-figure mindset and you'll get it. My wife wrote, Start the Work and Teamwork, which is the people aspect of growing and scaling your business.

And then my partner wrote, Ten X rule, Sell or Be Sold, which is for you and learning how to communicate your sales proposition. And then, of course, I would rip through the John Maxwell's, the Lid's books. He's got four of them now, or the laws books. He's got four I would go through right now. So you can consolidate into just that group of books. But Sharon Lecter, three feet from gold. Everyone should read that and think about what's my one little thing I'm not thinking about where I could tap into the gold in my business, because most people do that wrong. Here's the net of it, though. If you're not committed to personal development beyond where you're at today, if you're not willing to grow your awareness, if you're not willing to really judge your overall effectiveness, if you're not willing to test into your own ideas on, are you actually evolving as a remarkable leader, or are you relying on what you've already developed for leadership skills? You have to be honest with yourself because when things stop working, you've tapped out your lid. And then you're going to start defaulting to blaming everything around you when the truth is it's simply you chose not to continue to grow your

lid. So the resources for this, there's plenty of these resources. Now it goes over to mentors and it goes over to advisors. And what I'll tell you is most people are communicating entirely to the wrong mentors and wrong advisors. They're what I call polling, asking people, what would you do? And what do you think I should do? And how did you do it? Or how would you do it? Well, the problem is they don't know what they really want to do. They don't have that clear picture where they're going to. they're talking to the wrong people who have never done it, or maybe they did it, but they don't know exactly how they did it. So they give you the same thing you're going to get at Harvard,

which is you've got to be a great leader. You've got to be strategic. You've got to have a plan, stuff that's like, okay, how exactly, right? What is the specific, exact way to do it where it builds one on another? And that's what I developed because I realized it doesn't exist in the marketplace. The only way really today is trial and error. There's no science. So I wanted to be the first in the marketplace to create the science of scaling.

And that's what we've done. So we've been able to show people now since launching this business, I personally have created $200 million companies from dead stop, no invested capital, no debt. We've run nine billion of businesses through Cardone Ventures. We've got a portfolio of about 230 business owners that are doubling and tripling in size. And so now we're going back and studying what we did with all of them so people can just get the quick answer, but here's the net effect. If you're talking to somebody, and I have some friends in the marketplace, and you've interviewed some of these people who have been hugely

successful building their business, but the information and data they're giving you is still somewhat generic. So it's like, here's what I did, and here's how I did it. That's great, but that doesn't tell you in the moment, in the heat of battle. If I'm making a choice between one, two, or three, or A, B, and C, which decision do I need to make to get the fastest result, and what should I expect that result to be? It's very difficult. And here's the thing I would tell everyone watching or listening to your show. If you're asking guidance or advice from somebody who's never done it, like what I call polling, your friends, your family, other business owners, what do you think how to do? You're already going to go bro. That's a guarantee. The only people you should be asking

anything of are people who are living, breathing examples of what you're actually trying to do. because if you go to people in multiple industries, it's going to be different, those nuances of the things you need to do, the 10. If I'm trying to build my H-FAC business from $5 to $25 million, it's going to be entirely different metrics,

different things I look at than if I'm building my restaurant chain from three to 15 locations, because you're going to have a lot more employees, a lot more moving parts, a lot more inventory issues that you have to manage versus the H-FAC business. If I'm building the H-FAC business

and I'm comparing myself to the dentist that wants to have 100 locations, there are base similarities, but the nuances is what's going to make or break you. So you need to find people that are actual living, breathing examples in the thing you're trying to do. And here's a pro tip. If you're sitting here right now thinking you want to start a business,

don't. Go find a business owner that has a $5 to $10 million business that's frustrated. They've been able to demonstrate that they're able to be in business, but they're not really growing, and perfect the art of identifying the perfect kind of, perfect kind of client, how to communicate to them through what you do, what you teach people to do, how to promote to them so they can actually hear what you're saying, how to engage them to get them to be interested in what you're talking about, and how you can help them

and just work with a business owner and figure that out because that's what most technician owned businesses, 88% of them, never learned how to do, is to activate new clients because they started their business with friends or with an inner circle or a warm market, and they just built it till that ran out and tapped out at $3 million and then they don't know how to promote and get new customers. Every business needs new clients. And so if you could just perfect that, you could build just about anything. So it reminds me of what Cody Sanchez talks about, which is buy boring businesses, but you're suggesting go work for somebody. She talks about buying laundry mats and stuff. I mean, look, Cody's awesome. And if that's what you want,

and I've got a lot of wealthy friends that own 50 laundromats or 20 car washes, those are unbelievable. I'd just be completely transparent. I started buying many storages in 2000. In 2000, I have 680,000 square feet with a couple partners and they pay me 60,000 a month. And I've got all my money plus out. So those things are great. I view that as a different type of business. That's more of like if I want to build a micro portfolio of things that will cash flow. And there's nothing wrong with that. And Cody's the best in the world at talking about it. I'm a business builder of businesses. things that actually can become 10 million, 50 million, 500 million, a billion. That's the market.

I don't do startups. I'm not even interested in talking about how do I earn my first employer or my second employee. It's just it's not my expertise or where I choose to spend my time. My sweet spot is $3 million to $100 million and 10xing that. And if you're a business owner and you're at that stage and you're frustrated, you just simply need to understand. You just don't know what you don't know.

and the hardest and slowest and most complicated and dangerous way to do it is through practicing trial and error. And so you need a different solution. So if I'm in HVAC or dental or anything, who do I want to talk to? I want to talk to the dentist that built a hundred chain unit and sold it. If I want laundry mats, I want to go find somebody. I learn from Cody and then I go find somebody that owns 10 laundromats. And I say, look, you teach me how you did this. I'll go find 10 more and make you a 50-50 partner. Drafting is always faster than being in the headwinds by yourself. Every professional sport proves that out in motorsports and in bicycling as if you can tuck in behind somebody who's already moving quicker, you both move quicker. I'd rather learn from somebody

who's a living, breathing, prove an example in whatever I want to do, and I'd rather give them half of whatever I'm going to do because that was my value pop to Grant. Grant, I don't know how to bring in millions of people into this audience and do all this social stuff, but I do know how to take a business owner and blow their business up and make it highly profitable and valuable. I'll give you 50% of a new company. I'm the managing partner. I control everything because it's my IP. You're my partner and own half. Once I prove to you and you feel that I'm credible in what we're telling you, me, my wife and I, we're business partners, then you just blow on us and tell people, go talk to my partner. And that's how we've created a quarter of a billion dollars

in five years when no invest in capital, no debt that's worth probably a couple billion right now, to be honest with you. So the idea is doing it by yourself is broken thinking, because you're never going to get big by yourself. Doing it and inventing an already invented space is stupid. So that's going to be a high condition for failure. So what is the fastest and biggest way to become successful? Find an example that's doing it. Make a commitment that you'll add value to them. Make a bigger commitment that if they teach you how to do it, you'll partner with them, and go become an expert in something that's already proven to work by somebody who's proven they know how to do it. There's $6 trillion of businesses getting handed

off in the next eight years from baby boomers who have three, five, ten, $50, $100 million businesses and they never made any money. They're just giving those businesses away. So becoming an expert on how to start, grow, optimize, scaling, blow it up, and then exiting at a high value makes a lot more sense than just starting something hoping over the next 20 years you can create a legacy value in that business. You just tapped on something that I was going to be my next question, which is your relationship with Grant and Cardone Ventures. And this idea of creator entrepreneurship is really popular right now.

And essentially, it's all about getting eyeballs online and having social media and the biggest entrepreneurs out there also have a huge personal brand like Grant does. So talk to us about why you teamed up with him and how you see things evolving and why you thought having a partner who had a big personal brand was really important for your next company. We hired the same research firm in 2016 when I sold my business for the 77 times I hired IGS out of Boston. It's another huge research company that private equity uses. I gave the original work we did with FTI out of Chicago and I said refresh this 10,000 business scoping thing over the next three years while I integrate my business into the Danish public

company that we took from one to four and a half billion. And when we had done all that and all that new data came back. I told Natalie, Natalie and I were talking about starting our new company. So we were like, what's the fastest way to success? And she's half my age. And she said, you should look at some of these social media people who have legitimate businesses. So she made me a list of 25 people because I wasn't following social media. And I hired my same research company and I said, here's what we want to build. We want to build a business that helps entrepreneurs and business owners across these hundreds of sectors to be able to grow, scale, create massive value. We want to do it with someone who has.

has high credibility, somebody who understands how to build a business. And so I turned them loose. They came back and said, here's a list of three people. We went deep on those three people. The reason we picked Grant and Elena Cardone is because Grant, I created the first reverse, triangular merger, decentralized, democratized equity structure with business owners long before blockchain came out to innovate the small business space and create platform companies. Grant was the first person that actually took the laws that changed from David Weald during the Obama administration, crowdfunding laws, and he was the first to actually do it in multifamily. And when I went to his event, he had raised $250 million directly from his community.

Nobody else had done that. I knew we were going to buy businesses and wanted to do it with our community. So I said, that's a perfect fit. He does it for real estate. I'll see how he does it, and I can do it with business owners. then underneath that he was the number one marketing and sales guy in the marketplace so he had that down now i'm a scaling expert based on the engineering i know there's 10 things to build a big business you got to be an expert at first strategy second promotion marketing third sales conversion

fourth people you got to find people fifth you got to be able to deliver sixth you got to understand your finances and get your numbers right seventh you got to become a masterful leader eight data you've got to know what you're looking at. Nine, systems and technology, because that's different than data and expands and grows as your business. And then 10, investment thesis, what to do with your money

to get the highest returns and grow scaling faster, right? By either amalgamating or acquiring assets or bolting on or tucking in or buying your technology, whatever it is. Well, he had the sales and marketing and investment thesis for real estate.

I had everything else. So we went to that conference. My wife scoped it. went there to say, okay, what does his audience look like? Who shows up? And while we were there, we had our list of all the verticals we were excited about. And we just started a meeting of 34,000 people. I never knew anything about Grant Cardone. Other what I saw online, we went and bought seats, 35 grand, sat in the front row with the idea that if we didn't see what we wanted to see by the end of the half of the first day, we're out of there. We saw everything we wanted to see.

We met so many remarkable business owners that were there. And we're like, why are you here? what are you doing with Grant? Well, it just so happens John Maxwell was speaking at that event. John and his leadership team, whom Natalie and I are extremely close to for the last 10 years, we went to dinner the night before and we were talking about, I wonder what this is going to be like, I wonder what we're going to see, I wonder if it's all hype. Well, both of us agreed at the end of day one that this was an unbelievable thing that Grant was able to do. And I had decided that if he could put 34,000 people in a stadium on Super Bowl weekend with the lineup, I could look through the things I didn't like and I could hone in on the things that I was blown away by.

So a few weeks later, we approached him and said, we'd love to talk about partnering. And the reason for that is, is he has a network of 25, 28 million people around this world. Most of them are business owners. Most of them invest with them. They have high trust with them. And he has his haters. Trust me, this whole social media thing for me is new, okay? But it seems like anybody's successful, half hate, half love. It just seems like it is. And they're a lot most are jealous. But he has now raised. over $2.2 billion. We've first in the marketplace to do a Bitcoin back balance sheet, multifamily, that is going to become a $100 billion business. We launched our Cardone Equity

group. His audience has been phenomenal for my wife and I. We've been able to add value to his business. He's added value to ours. And to put it in scale, when we partnered with him, his training business was only $50 million. Today, it's $150. Our business from startup is $120 and our health business that we bought for $250,000 from Breka's wife is $125,130 this year. So in five years, we've created three businesses, all over $125 million, all profitable, all following the exact example of what we teach over $9.8 billion of business owners to do today. So we're extremely bullish. We're launching our private equity group, Cardone Equity Group.

We're now out buying businesses with business owners that we have high trust and confidence in. We launched Cardone Financial Group. It's a whole series of financial assistance programs I've created for entrepreneurs and business owners. And we have Cardone Ventures, which is our growth scaling and venture company for entrepreneurs. So what we see combined is a multi-hundred billion dollar, maybe trillion dollar portfolio. As I've just opened Cardo Ventures, Cardone Financial Group, and Cardone Equity Group, UK. We're opening our UAE branches, and then we'll be in Asia by the end of the year. So when I partnered with Grant, I said, I will help take the Cardo name to a global enterprise.

That'll be my commitment to you. If your commitment back is to do all the things you're remarkable and teach me how to do it, and once you have confidence in my wife and I, let's just put our heads down and go full steam ahead. Well, after the third year, he's like, dude, we're going to kill this thing. And it's been a remarkable relationship. And that's why we partnered with them with the hopes that we would be exactly where we're at today, helping entrepreneurs and business owners create massive value, legacy. net worth, having a great time doing it, and having our brand reach, real estate, business,

finance, a whole thing, and innovate the small to mid-sized business and real estate space and create a trillion dollar portfolio where everyone's winning with us. I've been hearing about you and Natalie for years now, and it's just so impressive what you've built with Grant and Elena. Grant's actually coming on the show next week, so I feel like we've got like a Cardone Ventures month going on here. So in terms of picking your business partners, I know you have, I think it's like five different elements that you look for in a business partner. Can you break that down for us? First of all, that persistence, perseverance, and patience is very important.

People who want it now and demand it now, we won't partner with those people. It's not even realistic. Most of them have businesses that aren't anywhere near how valuable they can be, and they just want it now, want it now, and they demand, and they're unhappy immediately. It's the same behaviors that got their business in trouble in the first place. You have dealt with people like that in your marketing side. They hire you, then they bitch 90 days later. Your marketing doesn't work when the reality is they're getting more leads than they've ever

gone their life, but their internal operations suck. And instead of blaming their people inside, they blame you because that way they don't have to address their friends and their family and their people that have been around. So they go through these cycles. So what are we looking for? Open-minded, forward-thinking, high-integrity, patient, persistent, and willing to persevere. And if they have that, we will dominate anything we put our attention on. So I end my show with two questions that I ask all of my guests.

The first one is what is one actionable thing our young improfitors can do today to become more profitable tomorrow? Identify the three things that create the most value in your business right now and put 80% of your attention just on those three things, period. And what would you say your secret to profiting in life is? And this can go beyond business and financial, but what is your secret to profiting in all areas of your life? but my absolute secret is understanding that the only way to get huge is to amplify and multiply

through others by creating value. And if you can do that, there's an enormous amount of wealth creation no matter what you're doing. And so in all my decisions, I never think about me. I think about the impact of the people who I'm either working with, working for, partnering with, advising, guiding, because if they're winning, I'm going to win all day, every day. And I just want to do one quick shout out because I talked around it, but I didn't directly address it. Having the right partner. Partner is plural. My wife is absolutely a beast and she's incredible. Grant and Elena are also equally. Absolutely incredible. So surround yourself with people that you love, you admire, you respect, and here's the thing. I don't want to let any of

those three people down. So for those business owners that really want the hack to success, stop thinking about yourself and become the absolute best partner to everyone you work around and you work with and make yourself the center of that partnership, instead of thinking about you, think about how can I just do something so amazing? Because everyone's going to love you and they're going to want to be your partner. I love that. What a great way to end the interview. Brandon, this is such an incredible conversation. You're welcome to come back on the podcast whenever you'd like. Where can everybody learn more about you and everything that you do?

My Instagram's easy at Brandon M. Dawson. My YouTube channel is at B. Dawson. Obviously, I'm trying to build both of those. My podcast is building billions by Brandon Dawson. So those three areas. Or just go to cardoventures.com. You can look us up there too. But look, I love, I think you, my wife would kill it.

Yeah, she's coming on the show too. I'd love to have you come speak at one of our events. I'd love that. Give inspiration to all these young entrepreneurs. And I just want to tell you this. I looked you up and I looked at some stuff before we could do up with the show. I know how hard it is to be successful in this space. And you have done such a great job.

I just want to congratulate you on there. Thank you. That's so sweet. Thank you, Brandon. I really enjoyed our time together. As did I. Thank you for having me on your show. Brandon Dawson's journey is a powerful reminder that success isn't about where you start.

It's about how far you're willing to grow. From being labeled as least likely to succeed to taking his company public at just 29 years old, Brandon has built and has rebuilt multiple nine-figure businesses. But his real legacy, it's not just the revenue. It's the resilience, patience, perseverance, and persistence that carried him through the toughest moments. and those traits are essential for any entrepreneurs striving to scale. One of Brandon's most impactful teaching is the difference between scale and scaling. Scale means optimizing what you already have.

Scaling means expanding what's proven to work, but it demands more than hustle. You can't scale a business by applying the same resources, the same people, and the same thinking that got you stuck. To truly grow, you need new talent, better systems, and people who can help push the rock uphill. And the center of that is leadership. your own leadership. Brandon is the first to admit that he wasn't an effective leader early in his journey. It was only when he learned to grow himself to lead with clarity,

empower his team, and communicate vision with conviction, that everything changed. He teaches us that businesses outgrow their leaders. If the leader stops growing, so does the business. Leadership in Brandon's view is about setting a high standard, holding yourself and others accountable, and modeling the mindset you want your team to adapt. If you lead with uncertainty, your team will second guess you. If you lead with confidence and integrity, they'll rise with you.

Operational discipline is equally vital. Brandon believes a business will only grow to the level of its systems. And your belief system sets the ceiling. If you don't believe in big possibilities, you'll never build big results. And finally, be careful who you take advice from. Brandon warns that following the wrong guidance can be expensive. If somebody hasn't built what you're trying to build, they're not your mentor. The secret to success is learning from people who's already lived what you're trying to create.

So Yapam, if Brandon's story reminded you that growth starts within, share this episode with somebody who needs it, a founder who's stuck, or a leader ready for more. And if you got value from today's convo, leave us a five-star review on Apple Podcasts, Spotify, cast box, or wherever you listen to the show. Drop a quick comment, too, I read all of your messages. Subscribe to us on YouTube. We're closing in on 60,000 subscribers, which is awesome. We've only been taking YouTube seriously for a couple of years.

You guys can also find me on Instagram at Yap with Hala or LinkedIn. just search for my name. It's Halataha. I love to get your DMs. I love hearing your takeaways. Make sure you guys reach out. And before we wrap, I wanted to give a heartfelt thank you to all of you, all of our incredible listeners at Young and Profiting. Every download, share, and review means the absolute world to me. And it's your support that allows me to keep bringing these powerful conversations that help you grow, lead, and profit in every area of your life. That's all for now, Yapam. Catch you on the next one. This is your host, Halitaha, aka the podcast princess, signing off. Thank you.