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In today’s episode, Allan welcomes Jack Gibson. Jack is an international, serial entrepreneur and financial thought leader. He began his entrepreneurial journey at the age of 19 in direct sales and built a multimillion-dollar venture. Allan and Jack discuss how starting and growing a business is a very gratifying and empowering experience for entrepreneurs. In addition, Jack explains the progression of the entrepreneurial journey through three developmental stages.
Guest Links
https://www.myindestructiblewealth.com/
Allan has started and grown several multimillion dollar businesses, his mission is to help you do the same. Welcome to The Business Growth pod, building the future, one entrepreneur at a time.
Hey, everyone, Welcome to the Business Growth Pod. I’m Allan Draper happy to be with you today. Thank you so much for spending some of your busy day with us. I know that, you know, that’s a really big task. And you know, I want to make sure that I’m adding a little bit at least back to your day, and adding some value to help you scale your businesses. I don’t listen to podcasts very much. But when I do, I try to hone in on one or two things. So as we’re chatting today, think of one or two things that you can apply, don’t let yourself get overwhelmed with what we’re talking about. And you know, the path to success, which we’re going to, we’re going to talk about today and cover. So go to my website, Allan draper.com. Make sure to follow me on Instagram everywhere on social I’m Allan Draper pretty easy to find, make sure to follow me and I’m always posting reels and videos and quick tips about how to improve your financial life, your business life, your relationships, things like that. So without further ado, I’d like to welcome to the show. Jack Gibson. Jack is actually an international serial entrepreneur, and Financial Thought Leader. He began his journey at the age of 19 in direct sales from his college dorm room, in a nutrition distribution company that he built into a multimillion dollar venture. Before he was even old enough to rent a car just kind of funny. After a series of stock market setbacks, he became obsessed with learning everything about real estate investing. And he actually ended up building another multi million dollar portfolio generating passive income. So welcome to the show. Jack, excited to have you.
Thanks, Allan, appreciate being here. And gosh, I love pouring into your audience, you told me about what they’re made of. And this is going to be fun. So we’re gonna definitely make a difference. So are you
I don’t know, if mentally you can turn back the clock to the year first business for re like, you know, put yourself in, in the shoes of you know, the startup entrepreneur or somebody that, you know, we have quite a few people that listen to, they’re trying to figure out if starting a business is right for them. You know, they might be part time entrepreneurs or just have a couple of ideas. What would you say to that group, specifically, the folks that are trying to decide whether they’re going to take the risk and go out on their own?
Yeah, that’s a great question. I can definitely it seems like yesterday, you know, I’m 25 years and entrepreneurship. I’m on my fourth fifth company, and I can feel it like yesterday, you know, my pivotal moment was when I was 19. I was working on my uncle’s farm. I had two dads like I had the Rich Dad Poor Dad scenario, kind of but my real dad was not poor. He was a professional. But I also had a rich, wealthy uncle who had no kids of his own. So I was, in essence, a you know, adopted child of his. And so I got to watch you know, the two of successful professional my father, he did work for State Farm investigated arson, so that essentially is, you figure out if somebody lit their house on fire on purpose or not, right. So it’s, it’s a cool, he had a cool gig. And then my uncle, he had three businesses. He had a 500 acre 1000 acre farm operation, he had $1,000,000.02 million dollar insurance book, and then he had a party rental business too. So I got to see how wealth was created. And when my uncle passed, he passed with three, four $5 million at a very young age to 58. And my father, you know, he inherited a big chunk from his father who was an entrepreneur who ran a company and so I just got to see like, wealth is generally built through starting businesses. And then if you really want to protect that money that you’re making, you know, put it into real estate, that’s where more millionaires have been created than any other asset class. So I kind of got that teaching getting to see both perspectives. So I was working on my uncle’s farm, I put in 20 hours of work turned in my timesheet and gave me 100 bucks. And I’m like, what just happened? That was the most terrible work I’ve ever done in my life. I got five bucks an hour, and even back and you know, 9798, you know, five bucks an hour still was craps. I realized, and just that week, I just started in my direct sales business, I made a $200 sale, put $100 profit in my pocket and you know, 20 minutes. So looked at it and said, Wow, 20 minutes, 100 bucks. May had fun made a sale. Yeah, it was uncomfortable. Yeah. You know, I kind of sucked at it at first, you know, in terms of generating sales. I mean, I was very, very not good at it when I started. And then 20 hours of back baking work working for somebody else making peanuts. And I said, I’m never, never going back. Jim Rohn was right when he said profits are always better than wages. So that was the pivotal moment. I’ve never had a job or a wage job since that moment, that was it line in the sand. So I’ve been an entrepreneur ever since. And I can say that it is difficult. I mean, you would think like, I’ve had all this entrepreneurial experience, and I’m in my fourth, you know, startup, and it’s still very difficult. And that’s because you have to understand the three stages that you go through as an entrepreneur. So I wanted to dive into that, if you had another question. Let’s do it.
What are those three stages?
So the first stage is essentially where you’re putting in 10 units of work, that could be 10 hours of work, or whatever could be 100 hours of work, but the concept is, I’m putting in 10 units of work, and I’m getting one unit of pay. So this is the stage where the mantra is, and you keep saying to yourself over and over, it’s not worth it. I’m putting in so much effort, and I’m getting so little back, what is going on, this is terrible, I should quit, I should go back and retreat and go get a job. And the stage one, you know, if you don’t get through stage one, you don’t get to get to stage two, right? So stage one usually costs more money than you think it does, it’s harder than you think it’ll be, it takes more time, it takes more effort, and it takes a longer duration of time to get through it. And if you are, recognize that you’re aware of it, you realize that upfront it is difficult. But the rewards that you get, if you make it through stage one, they become incredible. So you get to stage two. And this is where the mantra is, it’s about worth it. So I’m putting in 10 units of work, I’m getting about 10 units of pay, like I’m glad I’m here. I’m glad I stayed. I’m glad I got through stage one, you’re not getting rich, you’re not like exceptionally, you know, high earner at this stage. But it’s starting to say, Yeah, wow, like this is starting to become worth it. And then if you can get through stage two, it’s this where you really need to scale and, you know, leverage off the efforts of other people learn how to build teams to be able to get to stage three, which the mantra there is, I’m not worth this much. This is where you’re putting in 10 units of work and you’re getting 100 units of pay, you’re getting two unit 100 units of pay, maybe you’ve got your systems and your team. So set, that you’re putting in one unit of work and you’re getting 100 units of pay. That is the beauty of entrepreneurialism, what I think is more important than the money and the financial reward is, as Jim Rohn says, famous business philosopher who train Tony Robbins in case the listeners haven’t heard him. He said that if you work through all of that, and you get through it, it’s the person that you become, it’s who you become, in terms of your personal development, that is really the most meaningful part of it. Because you know, that if you become the person that they could take everything away from you, and you’ll be able to build it all back.
You know, I’ve heard it said before, something like, in order to get to the point where you’re paid for more than you work, you have to work for more than you’re paid something like that. That’s the essence of being an entrepreneur. And I think you know, the interesting point, as you were kind of going through this is for me and my experience, I feel like you know, because at the end, you tighten into personal growth and development. I think stage one is where 80 plus percent of that occurs. It’s during that time where it’s 10 units of work for one unit of pay, which is why I’m so passionate about the startup phase, which is interesting, because when I first started my business, I couldn’t wait to get out of it. I couldn’t wait to even step two, let alone stage three or whatever. But, you know, as we’re talking about these things, it’s kind In a funny because I tried to put myself back in my 25 year old 30 year old shoes. And we talk about these things that are, they’re kind of they might sound like a little bit of voodoo, right? Where it’s like, hey, but you know, you’re not making any money. But how much did you progress? How much did you develop? The 30 year old me, I’d be like, you know, I don’t want to listen this crap, I want to know how to make more money, or I want to know how to grow my business. Now that I’ve kind of seen a little bit of the life path of an entrepreneur. It’s like, that’s the real value. And it’s might be cliche. And, you know, you mentioned, hey, I can build it again. And nothing’s more valuable than that. Because as entrepreneurs, I think we are trying to increase the area of our influence what the things we are that we can control, we can’t control the market, we can’t control, you know, inflation, we can’t control interest rates and, and things like that. But if we put ourselves in a position where if we had everything taken from us, we could build it again, it’s a really good position to be in,
that’s what I formed my platform on that concept right there indestructible wealth, which is my financial education company. It’s not about having money that can never be taken away. Because that always can go, it can always be a bad event, a lawsuit, something that wipes out your money. So that’s, that’s not indestructible. What indestructible wealth is, is the mindset in the person that you are at, that’s indestructible, to where you can have all the physical things taken away from you. But what you still have inside of you is the real value. And yeah, sure, sir, it sounds cliche. And I’m sure that if you told me that when I was 25, I’d be like, you know, look, I just, I want to make money, I want to grow this business, I don’t care about that part of it. As you mature, you get a better sense of perspective. And that’s all that really is, is that as you grow, you’ll get that perspective. The sooner you get it, the better.
How does somebody fast track that perspective? How does somebody that’s listening, maybe as my dad used to say, they don’t have two nickels to rub together? They’re thinking about starting their business, or they just recently started, they’re just trying to keep the lights on? What’s the practice? Or what’s the mindset? Or what does that individual do, to kind of start looking at things that cannot be taken away from them that mindset, that personal growth, that attitude of I went to law school, and I practice law for a while, but left the law of eight, nine years ago, and people asked me a lot, hey, if you could do it over, would you go to law school. And I say that I would, mostly because of the confidence that it gave me just getting through law school, passing the bar exam. And I think starting and growing a business adds to that confidence. And I think that’s a big chunk of it. I suffer a lot from impostor syndrome, where it’s like, Alan, you don’t deserve to have, you know, this number of businesses or net worth or coaching platform or podcast, whatever it is. So ultimately, what do we do to kind of how can we help the listener See you around that corner of gaining that perspective, before they have to put in the same number of years that you and I did, you know,
I think some cases, Allan, the only way that they’re gonna get it is they have to go through the mistakes, they have to go through a lot of adversity to be able to get through like as you can tell people all day long, but at the end of the day, they’re never really going to get it until they actually make the mistakes, go through that whole process. And then just learn it by experience, right. But on the other hand, you have a certain segment of people that, you know, they do want to learn and avoid those mistakes, and they’re willing to learn from those, you know, walked the path before them. So for them, and for everybody, the most important investment that you’ll ever make monetarily is into your own self. The real estate between your ears is the most valuable real estate and what you feed that on a daily basis, and the degree of the value and the quality of the input is going to determine you know, the thoughts that you have and the output. So I put out an an Instagram real look, I can it’s funny, I can raise $5 million in capital much easier than I can get a short form video to go viral. That’s if anybody’s out there and you can’t get your short form videos to get any views. You know, like look, I mean, I just met with my neighbor and I got $100,000 You know investment from him and that was easier for me than getting a you know, short form video to go viral. But I did have one that went relatively viral least for me, it hit 100k views and for me, that’s huge. And the concept of it. What I taught was your best investment is not a stock, a bond, a real estate, a crypto, all of that is meaningless compared to putting that money into yourself coaching, getting coaching going seminars, reading books, you know, listening to a great podcast like yours, you know, that is the real deal. And that’s how you’re going to speed up that process of what you’re asking essentially, is how do they get to that part quicker? It’s just, what do you put up in your in your head? And how much do you value, your own personal growth and development, and your income will rarely exceed your personal development. And if it does, then it usually finds its way back to your level of your mindset and your personal development. So you want to be constantly making sure that your personal development is outpacing your income so that your income is always trying to catch up to it. If your incomes outpacing your personal growth, and we’ve seen lots of entrepreneurs over the the years that they’re in that boat, their income just shoots way up, maybe the market was really good. And market conditions were great, or they just figured out something system process marketing technique that just scored. And then sooner or later, they don’t grow as a human, don’t grow their mind, then boom, the income comes right back down. So we want to be avoiding that. Of course, it’ll cause
I think a great example of that principle is the stimulus checks that the government will send out, they did some study, and I need to find it, and I’ll put it in the show notes. The idea was that, like 80% of that stimulus package ended up back in the hands of like, top one or 5%. In the United States, within like, 90 days, I’ve been thinking
the same thing. I just never saw a study on it. But you know, it’s funny, because I’ve said this recently, I don’t know where podcasts or whatnot. I said that, you know, I didn’t get a stimulus check. You know, we made too much money to get one and I was kind of like, Man, why don’t I get one like I work hard. And, you know, like I’m getting kind of singled out here is not being able to qualify. And then I like reframed it, because I’m like, Well, my business is went up so much my nutrition, business sales, my real estate stuff, my crypto, my stocks all that went like, up so fast. So because all of that stimulus money started flowing into my businesses, right, so I can see exactly like how that happened and what you’re describing, I live that so yeah, it’s amazing how that all transpired.
This will probably make you feel a little better. If you think about it this way. You didn’t receive any but you paid for it. Isn’t that how it works sometimes, if you frame it in that perspective, where it’s like, hey, unless your personal growth, your mindset, the things that you’re focused on the things you’re capable of match the level of your wealth, eventually, the level of your wealth is going to drop, and it’s going to look more like a windfall. We hear a lot about the people that hit the lottery, right, these people that they have large windfalls. And then they’re broke within a couple of years, you know, we all know professional athletes or celebrities that are broke, because, you know, quick rise to fame, lots of money, but their personal development wasn’t at the level of where they could keep it. But then you look at people like Shaq, who’s way more wealthy now than he ever was, as a player. Great advice, great businessman. And I think if I’m listening to this, and I’m thinking, Yeah, I don’t want to hear about like my personal growth, my mental state, like, what’s in between my ears, whatever, I want to hear about just how do I get that money. And it’s like, well, you may get lucky. But then you’re gonna lose it as fast as you get it right. Easy come easy go. I have some really high paid contractors that work for one of my business very high pay their college students age, usually. And they can make in a four month period, anywhere between, you know, 100 to 200,000. So I can make 251 time, so a quarter of a million dollars in four months, very highly specialized skill, but then the money goes as fast as it comes. And they need to just like you’re saying, match that level of development, with the money that’s coming in, and their resources that are coming in, and then they’d be able to flip that on their head. So let’s talk about some principles of money and wealth. Let’s talk about some of those things through indestructible wealth. What are some things that you are trying to educate people about in order to build, you know, this wealth that cannot be melted away or
whatever? Yeah. So you know, being an entrepreneur, I went through a lot of these financial mistakes myself, you know, and I, for example, when I was 22, in college, my senior year, I’d saved up 50 grand, and which is, you know, 9099 I was doing well, I was just living so frugally. You know, I still had the same basketball shoes from my like, senior high school, my senior level of your college, right? I mean, I just didn’t spend anything banked all that money and then I wanted to invest it to become a millionaire by age 30. And sure enough, my timing was terrible. I put the 50 ran into tech stocks the.com bubble burst, you know, I lost 50% of that money or probably more than that. And so it changed me to where then I said, You know what I need to invest into things that I can control and that I understand, and what’s one thing I can control and that I understand, I know how to grow my business, I’m gonna put all this money back into my own growth of my own business into marketing, mainly, generate more leads to do more sales, generate more revenue, get more referrals, all of that. So for the next 10 years, I mean, I didn’t really invest in anything else, I didn’t invest in much in stocks, real estate I didn’t invest in at all, you know, we didn’t have crypto. So that was it into my business, and that accelerated the path to the business, you know, exponentially. And then there hit a point where I did have some excess cash, you know, started save up 100 200 grand, so then, okay, what do I do with that, to put it to work, I’m not going to make the same mistakes and blow my principal capital. So first thing that the wealthy think is safety first. So you got to protect that first 100k to like, at all costs, and most entrepreneurs, the problem with them is that what got them to where they are, they took risk, they’re willing to gamble, they’re aggressive, they think that those same traits are going to do just as well in their investing career. So then they take on even more risk, they’ve already taken on a lot of risk with their own business and having a lot of their assets tied up net worth tied up in their own company, right? Well, then they go on, and they’re like, well, this worked in this setting. So this is gonna work investing, and then they do really risky things, they buy digital assets, crypto, tech stocks, you know, they want to exponentially grow that money fast. And most of the time, those things, you know, tend to go against them, and blow up. And now they’re starting back from zero. So I really am adamant, like, protect that first 100 200k and get it into things that are going to create additional streams of passive income, take your lower return, just get into safe things that you understand. And so I teach real estate rental property if people can qualify for syndication, you know, that’s where you got to be an accredited investor have over 200k filing single 300k filing jointly, you start getting those kind of incomes, and you start banking, some cash, you know, I teach people how to get into bigger, safer deals that they don’t have to manage, that can be passive in nature. So there’s a progression, of which most people, including myself, ignore with their capital. And not only that, you know, I’ve seen a huge amount of people, and just in the last couple of years, were there businesses during COVID, they just exploded, you know, and I know some industries really got hurt, right. And then there’s some that just just blew up. And so I see a huge group of entrepreneurs, they were making money really fast. And they all put it into risky stuff, ecom stores, and not that those are bad, but they’re risky. And you know, a lot of them lost all their money that the 100k that they had worked so hard to save up. So I’m like cringing, I’m like, I have a platform, I created this platform for you guys. So you don’t have to do this. And then you don’t listen to my platform. Because you want it to go fast. You don’t like that I’m telling you to, you know, play it safe with your first set of capital. So, yeah, I have a five stage kind of philosophy or five stages of growing wealth that I’d love to share. We can dive into that or any other questions on that topic?
Yeah, let’s do it. What are those five stages? As you know, we’ve got about four or five minutes left is we’re okay.
Yeah, I’ll go quick. So first stage is build a cash flow producing business. It’s Robert Kiyosaki model that he talked about in Rich Dad, Poor Dad, and you know, the rest of his books, build a incredibly excessive cash flow producing business live below your means. And then take that excess money. And then in stage two, you’re going to buy assets that can produce additional streams of income. Okay, so this is where, again, you do safety. First you buy real estate, I have a guide on my site that gives 12 different ways that you can create dependable replenishing passive income off of your money. Those are passive income plays not active type businesses, you want to be so focused on your own business, that you’re putting your money to work passively. So it’s not distracting you from your main gig, what you’re really, really good at. Then in stage three, you take the income streams that are coming in from your safe, producing, you know, income producing plays, and then those are what you use only to invest into the risky type investments. So I have a rule now that the only thing that I will put into crypto tech stocks, pre IPOs things that are pretty risky, but it could go 10x 20x I’m only going They use the rewards the fruits of my money making money to invest into those things. That rule protects me from myself. Because I have a gambling nature. I’m an entrepreneur. Because I love risk. I love aggressiveness. And so that makes a huge difference. And then, in stage four, this is all about, how do I scale? How do I take my businesses, maybe buy another business, take my existing business to a whole new level, now I’m really on a good financial footing, I want to multiply my wealth. And then stage five is the good backstage. This is where, you know, you don’t need to wait till stage five to do it. But it’s all about charitable giving, it’s giving back, it’s being a philanthropist, it’s blessing other humans, that’s where you’re, you’re really going to ultimately have the live your ultimate purpose is when you are doing something to bless other humans and to make their lives better. And those five stages are for an entrepreneur, they will definitely create some incredible wealth.
I love that approach. I think I need to get more granular with what I’m doing. I actually just wrote a check for 150,000 to precede a tech company that is going to compete with Venmo. It’s like, okay, this is and I posted on my Instagram, I said something like this is either, you know, best case scenario, this 150 turns into 30 million worst case scenario, I lose it all. My guess is it’s going to be somewhere in the middle. But I’m able to do that. It’s funny, because I think I follow those stages, just, you know, unconsciously or whatever. Like without thinking about it, I think I could learn a lot from being more deliberate about a this is the category, you know, profits from this passive investment that can go to more risky stuff, just to ensure that you know, that nest egg doesn’t budge. So well, that’s awesome, Jack, where can people go to learn more about indestructible wealth, and all the things that you know, you’re doing all the great things you’re doing?
Yeah, you know, my biggest thing that I build my platform for Elon for indestructible wealth is to create a community of people that I could have relationships with, I believe, as an entrepreneur, and we didn’t get to dive into it. But relationship capital is more valuable than money because through good quality relationships with, you know, with great quality people, then you never know when those relationships are going to create fruits. I mean, I’ve known people for a decade, and we didn’t do any business, no deals together and then timing lined up and they knew liked and trusted me. And now we’ve got a deal we’re doing, you know, they’re investing a million bucks with me, it’s that type thing, right? So you’ve got to always be cultivating and looking at the relationship capital that you’re building up. That’s what I’m all about. I want relationships. I want people to ask me questions and learn and I don’t charge for, you know, questions they can give me at https://www.myindestructiblewealth.com/
And there I have a podcast with 118 episodes. I have a blog. I have a passive income playbook newsletter that comes out every Saturday. So I’d say God, I just hit my site. And if get on the newsletter, and then let’s cultivate a relationship. If you like what I teach you and have to say, then, you know, maybe we could do a deal. Maybe you could join my academy program. Maybe nothing ever happens and you just get some value from me.
Love it. Well, thanks for joining us today. Jack wish you nothing but success in the future.
Thank you so much. Allan, appreciate you having the opportunity. Thank you.
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