Investing for Cash Flow And Balancing Multiple Businesses | #FFLTV Ep 7


– Oh, hey everybody! I’m Ryan Daniel Moran
and today we’re going to talk about what the heck
you should invest in. We’ll talk about balancing
what you’re passionate about versus what you need to get done, how I manage my time, and we’ll look at a new type of
physical products brand. Show some clips of me! (upbeat pop music) A few weeks ago, I brought in some of the best investors that I know and put them on stage all at one time. We called it The Investment Panel and we had individuals who ran funds versus people who invested in real estate versus people who had multimillion
dollar stock portfolios versus someone who had
just sold their business and was looking to invest
in a lot of different things and they talked about how
they mitigated their tax bill and how they diversified
for passive income. We put all of them on stage at one time and my only regret from
Freedom Fast Lane Live is that we did not allocate
more time to that panel. It was the most fun I probably
had during the conference and will definitely be going more in that direction for future conferences. But there was one specific
topic that came up a lot and it was about if things hit the fan, should you be invested in gold, silver, Bitcoin, and other hedges. Let’s look at a clip from that panel. – I’m still doing Bitcoin. Precious metals is definitely something that’s still close to my heart. And then online companies, so something that’s existing, running,
probably something similar to what they would buy (laughs). I’m like what I call “asset agnostic” I care that it produces cash flow so– – But gold doesn’t do that. – Don’t get me started. (panel and audience laughing) – [Ryan] Actually go
ahead and get started. – And it has lousy tax treatment. Gold is overrated. – Again, there’s the holistic portfolio and then there’s the single
asset, you are correct. However, in an inflationary economy, would you agree we’re at least in that? – [Ryan] Hold on, hold on, referee moment here for a second because what you are going to make an argument for is it as a hedge, right?
– Correct, well Bitcoin — – [Ryan] And you say, what the heck is the point if there’s no cash flow? Is that right? – Yeah, I mean ultimately
I buy investments because I want them to
pay me money over time and anything that doesn’t
pay me money over time, I just don’t care because
I want that income. – Sure, but define money. – Define money is somebody
handing me a dollar bill. – Yeah but, that dollar has value because? – Because we believe it does. – Correct. – Yes, but I don’t think that the world is going to hell in a handbasket. – I don’t either! – But then why are you doing this? – Because I want to be
ready in case it does. – It’s not going to. – I don’t lose!
– It’s only a percentage. – No.
– I don’t lose though. – But even if the world does go to hell, you’re not going to want
gold rocks in your house you’re gonna want blue jeans, water, guns, and food.
– I said precious metal. That’s true but also silver. Again it has a purpose in the portfolio because you have to have
this offsetting thing. I’m taking on millions of dollars in debt every time I buy a building, right. The world goes to less than someplace none of us wanted to
see but I can use that as a way to get rid of that debt. – Now of course this is fun
for us to speculate about. Is the economy going to go up or down? Is gold gonna go up or down? What’s gonna happen with Bitcoin? I’ve shared my opinion on Bitcoin and it’s the same kind of
opinion as gold and silver. It might be an okay hedge but if you’re treating
that as an investment you’ve got the wrong
strategy from the get-go. Look, the primary question that we need to be answering is, how are you producing? That was the question that will lead into what should we be investing in because the primary thing that
you should be investing in is things that you can control. You can’t influence the price of Bitcoin, the price of gold, the
price of real estate. You can change the paint and carpets and if that’s the business
that you’re in, go for it, but if you’re a business
owner, buy other businesses. If you are an email marketer,
buy other email lists. You know you can affect that. That is where your greatest
ROI is going to come from. You are the greatest
ROI that any portfolio will spit off rather than hitching your wagon to gold, Bitcoin, real estate,
or any other vehicle. The primary thing that
you should be investing in is you and the things that
you can control and impact. Of course, it’s fun and it’s sexy to talk about the things that
might go up in value. Look, I had a penny stock
NDEV go through the roof in the last couple weeks
and it was awesome! I thought I was so cool ’cause I made all this money from one investment. It was a company that I
had held for several years because I think that
industry is gonna go way up, but I’m not changing my strategy now to go buy a whole bunch of penny stocks. The reason is ’cause I can’t impact that. I can’t affect that. Make your money in business. Invest primarily in
things that you can impact and diversify through the
rest of your portfolio. So if you wanna have a hedge account where you’re in gold, silver, Bitcoin, go for it but by no
means should your hedges be where your primary
focus is as an investor. Your primary focus as an
investor should be in cash flow and your primary focus
as a cash flow investor should be on things that
you can control and impact. That’s when you’re bulletproof. That’s when you will continue to be able to maintain a lifestyle
no matter what happens to the economy and then you
can diversify into other assets but let’s not call that a
primary investing strategy. That’s speculating. You’re speculating on what’s
gonna happen in the economy. You’re speculating on how someone is gonna manage a business. You’re speculating on
what is going to happen to the price of whatever
asset it is that you’re buying but it’s not speculating
to double down on yourself and to double down on your skillset and to double down on the
businesses you advise, the businesses that you’re invested in, the businesses that you partner with as an affiliate or in a partnership. That’s where your focus should be as an entrepreneur and
then you can diversify through your speculative investments. (upbeat techno music) Of course I believe that the fastest way to financial freedom
is to build a business and invest the profits so let’s address some questions that’ll
help you do just that. – [Question Reader] Lavenda Tupou asks, “How do you disconnect what
you are passionate about “from what you have to get
done to escape the rat race?” – Now this is an interesting question and there are multiple
schools of thought on this. There are people who
say, follow your bliss, follow your passion and
the money will follow. There are some people who say follow the money and
the passion will come. Both work. Both are perfectly viable. What works for you? What drives you? I think the important
kind of x factor here is, you’ve gotta be passionate
about something, right? You could be passionate about
quitting your crappy job but something has to be driving you. Let’s talk about it like that. It’s not what are you passionate
about ’cause then that brings in the question about how do I find what I’m meant to do in this world? How do I find what I’m passionate about? And none of that exists, right. It’s just whatever you
decide, whatever you create. That’s what your life becomes. There is no outside of yourself passion that you have to find. There is no you that you have to discover. There is no life path that
has been preset for you. It’s just what you decide and
what you create along the way. What’s driving you is
a much better question and that can be your reason why. That can be your passion. My suggestion for somebody who is still in the rat race, follow the money. Do what you need to do to make the money, let the passion be running away from what it is that you’re trying to avoid and once you have cut that off, you’ve cut the source of
your stress and frustration. Then you could say, okay great. What am I gonna do with my
life and my business now. The important question, I think, is, what do you do once you have freed yourself from the
thing that you resent? If you hate your job and
you’ve gotta pay bills and you’re trying to start a business to try and get away from the job, what’s your life gonna
look like when that’s gone? Most people never answer that question. So what happens is they cut off the job and then they take the resentment, they bring into their business and then they just resent the business. So, what is your life gonna
look like once that’s gone? Is it gonna be in this business? Is it gonna be in a different business and you’ll wind that one down? Does it mean that you
just automate that one so you can live a nice, cushy lifestyle? There’s no right or wrong here but answering the question
of what fills that gap, what fills that space will allow you to make a healthy pivot
from being able to justify I’m gonna do this thing
that I might not even enjoy right now but I’m
gonna put all of my attention into it so that I can get
rid of the crappy job. That will allow you to do that. Now some people will argue that this is just easier if you do what you love or what you’re passionate about and if that’s what drives
you, if you’ve got a topic that you’re interested in
and you wanna build a blog and a side hustle about that specifically, you have my blessing to do so. That has driven a lot
of my business decisions but only once I was successful. I had to have the stress
monkey off my back before I felt free to be able to pursue what it was that I was passionate about. That’s me. Other people don’t have that but if you’ve got something
that’s holding you back, I say it’s a logical and
easy thing for you to do to follow the money so that
you can quit the thing you hate and then we can answer the question, what am I passionate about or
what am I doing with my life? Derek Sivers had a great blog post on this and he basically argued that the happiest people that he knows have a job that they’re committed to, meaning it’s a career or a skillset that isn’t their passion. It’s not their gift to the world but it’s something that they’re
at least invested in enough to where they can constantly
be growing in that skillset and then they have an art form or the thing that they’re passionate about that they’re not reliant on for income and what that allows them to
do is to balance both worlds. Is to be committed to their work and committed to their art and they’ve got they do for money and
the thing that they do for fun or as a gift to the world. I think the same is true in business. I have cash flow businesses. I have business that pay for my life and then I have my gifts to the world. I make the least amount of
money from Freedom Fast Lane. Of all my projects, I make the least from me taking home Freedom Fast Lane. I talk about this stuff
’cause I can’t not. If you took away all of this,
I’ll be on the street corner talking about capitalism and free markets. I can’t not talk about
it but for those of you who’ve been following
me for several years, you know that I haven’t been doing this show and the podcast
with full commitment until I had the cash flow piece built up from my physical products
brands, which I love. I’ve become passionate about
them ’cause they’re my babies and now that they’re more
automated, I can focus more time on the thing that I think is gonna really change people’s lives
and give me fulfillment. So, I do the same thing. I balance the things I do for money and the things I do for passion. They’re just businesses rather
than a job and a business. – [Question Reader] Joe Smolenski asks, “How do you manage being involved “in several ventures at once while also “allocating time for sleep and family?” – It is very hard to be in multiple things at the same time without having very clear expectations for what you bring to each project or what you bring to each relationship. My life changed in a great way a few years ago when I
started Zen Active Sports, which is the yoga company
that I built and sold and my business partner on that is Sean. He’s one of my best friends to this day. We spend every Friday night as guy night, which usually revolves
around a really good meal and then being asleep by 10:30. That’s what happens when you have a kid. Sean and I started Zen
Active Sports a few years ago and when we were starting
that business I remember being in my bedroom on the
phone with Sean and I said, Sean, look, I have other commitments. I have other businesses that I run, so the way this is going to work, the only way I can be involved is if I’m the capital
partner and your advisor but this is your business. You run the operations. I will walk you through the process. I will bring relationships to the table. I will bring money to the table but those are my only
commitments that I can bring. Does that work for you? Yes. Then we outline what the
arrangement was gonna be. I have supplement company
called BodyVega Nutrition, same exact conversation with
my business partner Paul. Paul, I can be an advisor and an investor but that’s all I can bring to this. I can commit a few hours a
week to working with you, to bringing in certain relationships, to bringing you suppliers
that I know to the table and that’s my commitment
to those projects. Where as with some of my other projects where I’m much more involved, that’s because either
we started it years ago and it’s really successful or I have other skillsets I bring to the table. I have other relationships
I bring to the table, so I am not fully time
committed into every project. I set the rules up front for what the relationship is going to look like. So that is how I manage
having multiple projects. On top of that I just
block out certain times for certain projects, so
when you hear the podcast I will record two or
three podcasts in a day and that will be spread
out over a couple of weeks. Or if you look at some of my projects, like my physical products brands, I have certain days of the week that I have blocked out for those projects and my other members, my
other team members, know not to bother me on certain
issues on those specific days ’cause I’m going to be
committed to something else. So scheduling and blocking out that time has worked out really well for me so batching that time if you will. If I don’t batch time, I’m at my computer trying to figure out what
am I going to do today? What am I going to work on? Whereas if I know Wednesday
I’m showing up for this meeting on this project with these team members, that has helped me be fully present in the project that I’m focused on and I surround myself with implementers so that I can be the idea guy. I can bring what I know best
to the table for a project and then get out of the way because I work with people who are better than me at the things that I’m not good at doing. (upbeat techno music) One of my favorite things is when someone sees what we’re
doing on the podcast or here on Freedom Fast Lane TV and says, I finally felt inspired
to start a business after hearing something that you said. So this is the part of the show where we look at one of our student’s businesses and analyze what we’re doing but today’s a special
edition because someone near and dear to us at FFL TV said, “You know something you
said finally inspired me “to start a business,” and that was the guy behind the camera,
the guy you can’t see. Chris, let’s talk about your business. Whoa that was weird. – Hey Mr. Moran, thanks
for having me on the show. – Oh hey Chris. Good to meet you sir. So you gave me an idea for a business that I thought actually
had a lot of merit to it so why don’t you talk a little bit about how you were inspired to this business and what you’re looking at. – Sure. Following Ryan has definitely inspired me and also from my own personal journaling with the five minute
journal to create something for couples and this would
be like a couple’s journal that you hand off back and
forth and it could help you build up your relationship,
communication skills, love life, all that good stuff. So that was a big resolution
for me this year, 2017, launch my own physical product
that I’m passionate about but I also think could
generate some cash flow. Then, doing a little bit of research, I realized that there’s already
two pretty popular companies doing more-or-less the
exact same thing and I — – And they were on Amazon, right? – Yeah and I kinda knew
from the beginning, well surely someone
else has had this idea. Someone else has done it. I’ll just do it better, but then I saw that they had
over four stars on Amazon, over 500 reviews and they’re selling for half of the price that I had thought this would sell for, maybe 22, 25 dollars. They’re selling for 10 bucks
and they have raving reviews! So at this point I’m just thinking, so I’ve ordered it and I’m
gonna keep doing more research. – You have ordered the competitor — – Yeah
– Okay, got it. – I order these competitors’
products to see if I can really improve upon it, but I’m also
just thinking, do I need to stay within the same target demographic and pivot to a different product, maybe even like an app or something that’s a little bit different
or just get out of this entirely all together
because it’s so crowded. There’s already been success
with other people doing this that maybe I just need to back
out and do something else. – Okay so a couple of things. This is gonna be a good
news bad news thing. First of all, it’s not crowded. Two competitors is not crowded. Two competitors is wide
open so it is not crowded just because somebody
else had the idea first and made the product first. That just means they proved the concept for you to go in and clean up. – Good. – Now on the other side of things, here’s the good news bad news piece, this is not a product that
is gonna kill it on Amazon. When you hear about products
that kill it on Amazon it means people are already
searching for that thing. They’re going to Amazon just to complete the order and yours shows up. That’s why there’s been so many successful cash flow businesses because they don’t have to do any marketing. They just throw out
product in front of people who are already looking for it. Yours needs some explanation. There’s no one going to Amazon going, journal to improve my love life. – Yeah not really.
– It’s just not happening. They’re gonna hear about
it from someone else and I don’t know anybody
else who is talking about it in the way that you described it. So, if we look at how a
business like this is gonna fly, it’s gonna have to come as
the result of influencers and audiences talking about it. – Yeah. – And I don’t know any influencers who are talking about that but if you can show them that and show them a result, this is a result-based product, right? ‘Cause if somebody does five entries all that does is just like therapy. It gets you talking again. That’s the power here
so if you get somebody using it and talking about it, you become the price setter in that space and in that case I don’t worry about the fact that they’re half the price. I don’t worry about their reviews. I worry about who’s talking about it and what I like about this product is it’s essentially a consumable. It’s a consumable ’cause once you’ve written everything out,
you need a new one. I have like ten Five
Minute Journals in my house because I’ve gone through
it once and I buy a new one and I go through it and I buy a new one and you get the same benefit
out of what you’re doing. It’s just not gonna come as the result. They might re-order on Amazon but they’re not gonna
discover you on Amazon so your focus needs to be
on who are the influencers or where’s the audience
already hanging out that I can get in front of that
will talk about my product. – So, create a kick-ass
sales page, find affiliates, get mentioned by podcasts,
blogs, people in the space? – Possibly, that would work just fine but let’s look at the Five Minute Journal. – Yeah. – How often does Tim Ferriss talk about the Five Minute Journal? – All the time. I got a feeling he’s
gonna kick back on that. – I don’t think he does. I know the founders of Five Minute Journal and as far as I know, they do not have a business relationship together. And a result of him talking about it, we’re talking about it right now. – Yeah.
– As something that I use I don’t even remember how I discovered the Five Minute Journal
but it wasn’t through Tim. It was through somebody else — – For me it was through Tim. – Okay, I think I actually
was speaking with UJ, the creator of it and I
think he gave me a free one and now I’m hooked and
now I buy a bunch of them. So I don’t think that you necessarily need to go recruit affiliates
and pay them a commission. You just need to show the result ’cause people talk about results. – Yeah. – I talk about the products that have improved my life, so does everybody. You just need to get it
in front of the people who have a platform to talk about it. It might be relationship coaches. It might be authors. And here is the asset you can use Chris. When you’ve got an audience you can now have book
recommendations to the same audience and you can promote each other’s stuff. So if you’ve got an audience
of a few thousand couples, you can then promote your book to them, somebody else’s book. That author comes around
and talks about it to their audience and now you’ve got the same type of distribution network that you would have if you had affiliates. You’re just not paying
them affiliate commissions. You’re paying them in other book sales. – Yeah. Alright, I like it. – Good work man.
– Sounds good. – I like what you’re up to. Scene. Whether it is saving
marriages, saving lives, or saving the economy, I
believe that entrepreneurship and capitalism is the best way to solve all of the world’s problems. It’s why we need more success. We need more wealthy people
and we need less government because government gets in the way. Entrepreneurship is the solution. You are the best shot at the change you want to see in the world. That’s why this conversation
is so important. You can help us spread this message by subscribing to the podcast
at freedomfastlane.com/itunes. You can also subscribe on Youtube and like our page on Facebook
so you see every episode that we release on Freedom Fast Lane TV. Thanks for watching. We’ll see ya on the next show.

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