# Why a Second Business Won't Get You From $7M to $20M Channel: Dan Martell Daily Video: https://www.youtube.com/watch?v=_t_IoONgeds Duration: 9 min Language: English Words: 1594 Transcript page: https://viewrankai.com/tools/youtube-transcript/_t_IoONgeds --- [0:00] Um, we're currently at 6 million. I want to be at 25. And I have the new financial director on board who's basically dialed in. This is kind of the max amount that you're going to make with this team that you have. So, we're about 7 million. Um and my I'm struggling around the idea of just copy-pasting this group um to do another seven and then another seven um or whether it's time to start like diversifying. But, we are you know, it's a luxury service. So, I am curious around your thoughts with [0:45] where we are and where I want to be. The the the challenge you have is you have a double-edged sword where you have a desire for um more and you you don't want to be bored. But, the truth is doing the thing that makes you the money a lot more makes you more money. Doing things that adds to the complexity [1:09] of the operation makes you less money. Right. So, you have to decide which one do you want more? Do you want variety or do you want growth and profit? Cuz I'm pretty sure you wouldn't give up growth and profit Right. for variety because you could probably get variety in a different area of your life. So, that just understand that. So, and I'll just tell you from personal [1:37] experience. When I was in my 20s, I had one of my mentors share the exact same advice I'm going to give to you. He said, "Look, Dan. Mathematically speaking, doing more of the thing you're doing that makes you money is a winning strategy to make more money. I know you want to go do these other things cuz as as soon as as it's like the more money you make, it usually starts at a million, then three, then [2:02] 10. You start thinking, well, if I can do a million, I can do another million, like in a separate thing, right? And I And I people come to me all the time. They're like, "Hey, I can do this I do this thing, right? I have this service, and I have this product idea, and I want to launch a product idea." And the truth is is you can win at anything, you just can't [2:21] win at everything. Like they're separate businesses, which means they're separate skills, they're separate skill stacking, they're separate mentors, they're separate go-to-markets, they're separate inventory, financial systems. And what creates wealth is perfecting and stacking new skills on top of the old skills that are aligned with the business. So, you have all this knowledge around how you do what you do to 7 million, you don't have the skill to get to 20 [2:48] million, cuz if you did, you'd have it. And instead of going on the journey to discover the new skills to get to 20, you want to go do something else that you can do in the zero-to-one to then go to three, but then all of a sudden the seven turns into six at less profit, and your finance guy says, "I [3:05] told you." So, here's what I did. I decided to take some of my profit, put it in a bucket, and start investing in the things that brought variety to my life. And what I did is when I made those investments, I said, "I'm open to having lunch with you once a month." I give you money, that's capital. I get a percent of your business for the [3:26] capital. My time, I'm protecting it. At minimum, one lunch per month. And that's not a lot. I don't think that was a lot. It's like, [ __ ] if I do five, seven, 10 of these, that's 10 weeks or 10 days out of the the month. I got to eat lunch anyways, and then I go have lunch with somebody where I have a piece of their business. It sounds like fun. But that way I stayed focused on my company. So, I've always had one [3:49] company. Even recently, people go, "Yeah, but then you have so many companies now." No, I don't. First off, I'm not the CEO of any of my companies. So, right off the bat, I don't run the companies. Two, I started with media 4 years ago. I built media, hired a CEO. Media's on its way. Built ventures, first thing I did hire a CEO, built infrastructure for ventures. Ventures is on its way. I only do one company at a [4:15] time. Did I invest in other companies? Sure did. I probably do two or three investments a week right now in other companies. Money? Yes. Dan's time? No. I literally write that in the email. I want you to understand, yes I have a media, I have a platform. My investment is in the company. I do not My media is not part of this deal. My name's not part of this [4:38] deal. My time's not part of this deal. If I happen to have some capacity and send you a text or make an introduction, that's outside of the investment, okay? When I'm talking about pure investments. So, when you say to me, "I want to like I think I like this business. I like the boutiqueness of it, the bespokenness of it, the creativity of it. Cool, but I also want to make sure that I'm building long-term wealth." Is that kind of maybe what it [5:02] is? Yep. Perfect. I like to align the long-term wealth in really simple businesses that align with what I'm currently doing. You do interior design. So, what do you think I'm going to tell you that maybe the other thing you should do is? Keep it in the creative markets? Yeah. And like where do you add value that is fun? So, I think value-added kind of projects, you can do homes or multi-units, would be an interesting place for you to evaluate. But I would only do it if you had somebody you could [5:37] partner with. I would definitely not do it as a new division of your current company. I would 100% find the person first that you then back with your money and your time and set the clear expectation. We'll start with one project. We'll see how that works. If I like it, then I can be a line of credit or I can be an investor and I can bring my expertise, but I'm not bringing my team and I'm I'm distracting my team. This is Dan. You [6:04] have to hire your own person to execute. I'm just going to be there as an advisor. And that's the arrangement. You have to like structure the thing. Cuz I get it. Every entrepreneur wants variety. Cool. Design the variety so it doesn't impact the focus. Yeah. And like that could be an outlet. Or again, what did I do? I put a bucket of money aside to give people checks so that I had some variety and some conversations and I could learn. I always looked at all my angel investing as like paying for education cuz all the companies I invested in I got exposure to a painting franchise, a gym, software [6:37] companies out the yin yang. I mean, I just sold one for 3. Was it 3.4 billion? Crazy. Okay. So, yes, learn. Diversify variety, but with structure. And then uh 50% of my income I put in low-index boring investments. Like literally pretty [ __ ] boring. Most people would be like, "Oh my god, so but guess what?" I have my exciting [ __ ] in my life. I have it in my primary business. I have it in my venture studio today. I don't need to take risk in public markets with [7:07] my capital. And I still do my angel investing as a portfolio strategy. And then I And I then what literally the North Star. Everybody listening, the North Star is designing your life where you don't add anything new in regards to your areas of focus and you do that for 25 years. Like Could you do your current business you know, very bespoke high-end luxury interior design and value-added flips or whatever you want to call it commercial or real estate projects with the right partner for the [7:42] next 25 years? Yeah. Cuz literally this will generate cash. This will create wealth. And you do that for 25 years, you're going to wake up worth hundreds of millions of dollars. That's That's the That's the math. Real quick, you've made it to the end. Let me tell you what I know about you. You're not somebody that's looking to do shelf help. You're not somebody just doom scrolling on social media. You're here cuz you want to build, build a real business, and you're sick and tired of not getting the real insights to grow inside your business. So, I want to help you avoid all the pain trying to figure [8:17] this out the hard way like I did it. That's why I put together everything I've ever learned into the Scale Workbook. It's the internal document that I use with every founder I work with that turns a chaotic business into a money-making machine and teaching you all of this without burning more hours. It's totally free. The link is in the description, or you can just scan the QR code on the screen cuz I'm here to help you build your --- About this transcript Read from YouTube's own caption track and laid out by ViewRank AI (https://viewrankai.com). ViewRank AI finds the videos already beating a creator's own average on Instagram, TikTok and YouTube Shorts, transcribes them from the audio itself in more than 60 languages, and turns what worked into new ideas and scripts. Free transcript tools, no account needed: https://viewrankai.com/tools How to read any video this way: https://viewrankai.com/llms.txt