Alex Hormozi, Codie Sanchez, & Daniel priestly reveal how they would ...

I've got three boxes here. One of them contains $1,000. One of them contains $10,000 and one of them contains $100,000. So you're going to tell me what you would do with that amount of money to build a scalable business. So I have a thousand dollars. I would take the thousand dollars, put it in my pocket, do nothing with it. And I would watch YouTube videos on AI integration into small businesses. And then I would go to small businesses. Once I had a specific integration that I would do, which would be around likely email list activation, because that's typically like fastest, easiest money that most business owners have is their contact list. Been in business 10 years, 8,000 customers, maybe a list of 20,000 leads that they've had. And I would say, Hey, um, I will email those people and I will, uh, get everything approved by you and don't pay me anything, just pay me a percentage of the sales that we generate afterwards. How's that sound? To try and build an entire business from scratch, absolutely can do, and we'll make you more money over the long haul. But if I'm time constrained and cash constrained, then I want to drain as much money as I can, as fast as possible, which typically means I'm going to leverage an existing asset. Find a main street business that's brick and mortar, normal service and does get somebody who knocks on the door and says, Hey, can I just make you more money in exchange for nothing? I'll take all the risk. I'll do all the work. And that offer tends to do well. And I know that because I've done it. You got the 10 K. All right. I would find the person who would buy what I was selling for the highest dollar amount humanly possible, which means I would probably go to private equity companies. So what is a private equity firm? It's basically a fancy way for saying that people use their own money to buy businesses as opposed to public equity, where people use the stock markets. The money actually doesn't matter. Even though I have $10,000, 10 X, what Alex has, what I would do still $10,000 is not enough for me to make a couple million, which is what I would want to do with this. There's two ways to sell to a PE company. On one hand, there's something called the deal sourcing fee, which is if you can find companies that are in the niche that PE companies want to buy, they will pay you for sourcing the company. And I would say, what type of companies are you actively purchasing right now? What's your investment thesis and deal box. I would find that deal box and then I'd play the game of door knocking. I'd go to a bunch of these businesses and try to find companies that wanted to sell. And then the private equity company will pay me either a percentage of the sale or a flat fee for sourcing it. What might that look like in terms of a percentage? The normal sourcing fee is somewhere between three and 5%, but you're not going to get that when you're brand new. I like the idea of making 10 K on one deal to start. This is the highest leverage activity I know how to do. If it's already profitable, it gets out of the valley of death, which is where a company starts and never actually makes any profit. The second that they see that I'm good at sourcing deals, there's going to be they're going to be throwing offers at me or maybe they'll say, come work for me. Then I can make a couple hundred thousand dollars. I can learn what I think is the best skill out there to learn, which is deal making. And I can use my leverage, which is knowing what a company's worth and how to buy it using other people's money in order to increase my earnings. So I have a hundred thousand. This is a dangerous amount of money. The danger of a hundred thousand is you can kid yourself into thinking that you've got money and it will make your head spin how fast you can blow through a hundred thousand dollars if you don't know what you're doing. The first problem that I have is I don't have the knowledge. I don't have the network. I don't have the reputation. So here's what I'm going to do. I'm going to leverage Cody's. I'm going to go to Cody and I'm going to say, Cody, can I do a deal with you? I would like to start a business. I know you've got lots of ideas that you just don't have time for. I'm going to invest a hundred thousand dollars as debt for equity for 10%. So I'm going to put a hundred grand in and that'll come out of the business at some point. And I'm going to do sweat equity for 10% and you keep 80%. And it's your idea and it's your network and it's your reputation. The only condition is that as the business becomes profitable, we can repay the hundred grand. And then once it's repaid, either you buy it or we can sell the business. And what's cool is that when the time comes that that business becomes valuable, I've got one buyer on the table. Cody's either going to say, hey, look, I'll buy you out because it's only 20% and now I own the whole thing. Or we go to market and Cody will know someone who can buy the business and I get 20% of the exit. The key here is that really it's the knowledge, the network and the reputation that is the valuable bit. And the money is a bit of a red herring. And you're going to get Cody's skills because you're going to be in her proximity. You're going to get a little bit of her reputation. At the end of that deal, I will then have knowledge. I'll then have reputation. I'll then have all of those things will have leveled up for me.