How to Determine Net Worth

Audio Transcription

 

How much are you sure worth? How much are they worth? Well, how much are we all work really? You know, baby, you with worth thousands of millions of dollars. You would like a billionaire. You would just back diamond covered in gold and bacon and all that stuff just here. How is Clay Clark net worth determined? How is it possible that Twitter was worth $31 billion without ever having turned a profit? Because they have beautiful, how is it possible that square could be founded in 2009 and the lose $100 million in 2013 you see, baby, it ain’t about the money. It’s about the flag of this business and still not be profitable in 2015 but but be worth two point $9 billion. How was it possible for a company that loses money to be worth two point $9 billion you with just cause it possible. So negative. How’s net worth determined? All this and more on today’s edition of the thrive time show some shows don’t need a celebrity in the rotor to introduce the show. This show to math eight kids, Koch created by two different women, 13 mode time million dollar businesses. Ladies and gentlemen, welcome to the thrive time show.

Got It.

Yes, yes, yes and yes. Thrive nation

today show we’re having a conversation about net worth. Jason, welcome onto the show. How are you at this incredible morning at 5:02 AM oh, I’m doing great. How are you? Well, I’m excited about this coffee. Thanks for the coffee man. Oh, you’re welcome. Do you have a certain blend that you prefer? Um, typically in the morning light roasts cause it’s rumored to have more caffeine. So just a little bit more spark. You’re kind of a of a coffee snob, you know, kind of a coffee, uh, kind of sewer, kind of, uh, a coffee king. Could you tell us about your favorite coffee in the world and where you get that? Currently right now my favorite coffee that I buy from like a coffee shop is a, just like the standard house blend or the Americano from a double shot here in Tulsa. Now if you don’t buy it, do you make it at home too?

Yes, I knew you would say that. Now, what? What coffee do you make it home? There is a coffee that comes from New Mexico and I can’t remember if this is just a brand name or what the coffee is, but it’s pinion coffee. Are you serious? Yeah. Oh No, I’m talking. I don’t even know what it is. But yes, it comes in like this, like shiny red bag and it’s like roasted over opinion would really, yeah. Oh Wow. That sounds great. Okay, well today’s show, we’re talking about net worth and so I want to give you a little fun factoid here to start off. Okay. All right. Are you, uh, do you, do you follow the value of, of companies very much? You’re like, go read Wall Street Journal just for giggles. I never do. Okay. Well, here’s an example. Did you know that Twitter was worth $31 billion before it ever turned a profit?

That’s insane to me. So a company was losing money and was worth $31 billion. Let’s do another example of a net worth. It doesn’t make any sense. Um, in 2003 Facebook started, it used to be called face mash and opened up on October 28th, 2003 the website was set up as a type of hot or not for the Harvard student community. Then two dozen for Facebook. The social networking service launched February 4th. It was owned and operated by Facebook. It was founded by Mark Zuckerberg with his college roommates and fill a university, Harvard University student Edward or Edwardo Savrin, who’s featured in that and then the movie. If you’ve ever seen the movie about how Facebook happened, Edwardo Savrin is the guy who got billions of dollars that are being pushed out of his own company. Oh yeah. Then it doesn’t. Five on October 1st, 2005, Facebook expanded to 21 universities in the United Kingdom and others around the world.

Facebook launched a high, a high school version in September of 2005 which Zuckerberg called the next logical step. Facebook turned its first profit in 2009 Jeez. How many years was that? 2003 we’ll carry the math moved over the six years. Could you imagine thinking about that today, imagine that you opened up an elephant in the room store cause you, you are the elephant in the room. Super Manager. See mean that you manage all three stores. Could you imagine opening up a store and not making any profit for six years? It’d be tough. Do you think, I mean, would people consider you to be successful if you hadn’t made a profit in six years? I feel like overall people would not consider you to be successful. I just want to make sure that we’re on the same page here, but yet at the same time, now, you know, Facebook is worth billions of dollars.

Right? And again, going back to my first example, Twitter was worth $31 billion, although it had never turned a profit. Consider this Twitter turned its first profit on February of 2018 February of 2018 but it had an, and it had an initial public offering there. Uh, basically the company was a privately held company and they decided to become a public company where other people like you and me could buy stocks and invest in the company. Right. And at their initial public offering, which can only be participated in by what you call accredited investors. People with a net worth of over $1 million and income exceeding $250,000 per year. Twitter was valued at that point as we’re $31 billion. This is five years before they made a profit. That’s insane. Right? This is what I’m saying. So then why am I giving you all these examples? Well, because I think your, your net worth or your value, a lot of the people you read about who are billionaires don’t actually make any money.

Okay. Another example, square was founded in 2009 what year do you think square made its first profit? I’m going to say 2000 late 2018 yes. The third quarter of 2018 is when square turned its first product. Now again, square was founded in 2009 right. Have you ever seen square? I have seen square, I’ve used squared a hundreds of times. We’ll explain then to the folks out there. What Square is in house? How square works. Roughly Square. You plug in a little thing to your phone or your iPad. You Swipe a card and it processes payment and the things in the shape of a square. Yeah, it processes payments. That’s all it does. Okay. Now think about this. The company started in 2009 right? Check this out in 2013 how much money do you think square lost it just in that year alone in one year. Now we’re not talking about like how much money a square profited were. I’m saying how much money did the square lose four years after its founding in 2013 I’m going to say somewhere in the neighborhood of 200 million negative.

They’re very, very negative. Very negative.

We lost $100 million. Only a hundred. See you gotta be more positive. Okay, so get to come up. That square started in 2009 and lost $100 million in 2013 alone. Wow. And yet, and yet? Oh, and yet it was valued in 2015 at 2.9 billion, despite having never, ever turned a profit. How does that work? This is what I’m talking to him now, Google. Uh, another example, 1995 Google began with as a research project by Larry Page and Sergey Brin. While these two are attending the University of Stanford, they were studying to become phd’s. In 1996 page Larry Page introduced his web crawler to begin indexing or Aka downloading the internet. Right. In 1998 Google received its first investment of $100,000 from Andy Bechtle shine in 1998 the domain Google was registered in 1999. August 31st, 1989 Google filed its first patent in 2001 Google turned its first profit. This actually makes more sense to me because in 2004 when they were profitable, they were valued at $4 billion.

Well, but at least they’ve made a profit first. Yeah. I just think people don’t think that. I think what a lot of people see somebody who’s worth $1 billion or a company that’s worth $1 billion, they have to, they as they assume this company had to have made a profit, right? Of course. Isn’t that the thought? That’s, I think that’s everybody’s thought. So if a company that’s losing $100 million a year can be worth over $1 billion, what am I worth? Right? I mean, what’s, what’s Clay Clark net worth? So I thought I would do is I’d give the listeners just one example of how you can determine Clay Clark net worth. And uh, but at the same time, just calm down. When you read the news and you see somebody worth $1 billion, make sure it just understand a lot of times they can be losing money, right? So, okay, so you’re, the definition of net worth is your net worth is defined as your assets minus your liabilities.

And unless you’re a really good salesperson and you’re losing $100 million and you have a tech company, right, then you could be worth a billion. So your net worth is defined as your assets. Minus your liabilities. Basically it’s a way to determine what an entity is worth for a human. It represents the value of your personal assets versus your liabilities. For a company, net worth is the value of the company. Here’s a deep thought value is just what someone is willing to pay you. So if you pulled up our franchise disclosure document for the South Tulsa store, elephant the room, I’ll just say this, we have, you know, thousands of members, right? Uh, you know, 4,000 members ask, right? Yup. And let’s just say we had 4,000 members and you said, you know what, I’m tired of elephant in the room. I want to buy it. I’m tired of competing with these guys.

I want to buy elephant in the room. Yeah. Well if we had 4,000 members and let’s just assume that you came in and wanted to buy the business. All right? So if you took our, our annual revenues and let’s say our annual revenues, and again, it’s all in the franchise disclosure document, so I’m not going to make any claims about how much it’s worth. You have to go to this particular podcast page and click on our franchise disclosure document, or you can go to Eitr lounge.com and you can click on our franchise disclosure document. And Jason, do you know why I can’t make financial claims about the elephant in the room? Do you know why? Well, I would have say that, or I would say it’s federally mandated that you have to be honest, yet you gotta be honest. And what else? Well, you have to prove how much the company can make.

Right? And so it’s in the franchise disclosure document, right? And so that document is filed with the Federal Trade Commission. And so I want to make sure listeners know this. Every franchise out to that you want to buy, they have to disclose their financials, they have to. So they’re out there for you to see. All right. But just say we have 4,000 members, is that roughly correct? Yeah. Okay. So 4,000 members in what are, can you tell listeners about our membership options out there for haircuts? And by the way, if you’re in Tulsa and a, you’re hearing my voice right now and you’ve yet to come in to the elephant in the room. Jason, how much is the first hair cut? And your first haircut is a $1 just 100 pennies. Wow. Okay. So Jason, tell us what we get included with the memberships. You get a free beverage, a consultation.

We’ll go through every aspect of the haircut. A beverage. Oh Man, we’ve got water, we’ve got coke products. We have a slew of different coffees to Oh yeah, great. Okay, so we got water, got the coke product. Well what else do we have? Yeah, so um, you get the consultation with your professional license. Stylists kind of go over every aspect of the haircut you want to get. You can get a tailored haircut with every package, a shampoo and condition, both of the scalp massage, hot towel over your face during that whole process. You can relax, you get a face moisturizer if all a small face massage and a style. Wow. Now how much, how much are we talking about here for the unlimited haircut package? So for the unlimited, you get all of that plus two free add on. Oh yes. 10% off all your products, limited haircuts, unlimited haircut.

Come in everyone. You can come in every day. I come in every week, every week, every day, every hour. If you want to date. We’ve done limits on that. Do we have anybody that comes in more than once a week? Uh, I don’t want to say his name is. Joe Won’t give a last name of Joe comes in. And who love you Joe? Probably two times a week because he’s about every four or five days. Wow. He does, he have, does he have perfect here? It’s, I mean coming in that often. Yeah. Okay. And then, uh, okay. So is it, does it often as often for us to see our customers once a month or once a week? Uh, definitely it’s more often once a month. But we do have guys that are once a week now, now, and then what does it cost? If I want to come in once a month, if you want to come in once on the street, that’s where it come onto my, off the street.

I don’t know street, I don’t want a membership. I just want to come in off the street off the street for our first two packages, you’re going to pay $38 and then you’re going to pay $46 for the deluxe. So let’s just say that the average person’s paying us 40 bucks a month. Yup. Which just adds to the average, right? Yep. So if we do, the math you take are at 4,000 members, 4,000 members times $40 per member. You say, okay. So that right there, I got my total. That’s okay. That’s not multiply that times 12 right. Okay. Then you can kind of guess at the gross revenue before product sales, before Walkin’s, before whatever. Right? So if somebody wanted to say that a company did $3 million a year of, of gross revenue, any business out there to three land hours a year of gross revenue, Jason, do you know how to determine the value of what a company’s worth?

Are we talking net worth? But yeah, we’re, we’re, we’re, we’re trying to do is we’re turning to talk about Clay Clark net worth and a nun square kind of way. Gotcha. Because in it’s in the square kind of way. I have no idea. I haven’t, I mean seriously, if you started a company 2009 and you lost $100 million in 2013 and then in 2015 you get up there. I mean, what kind of pitches that is a gentleman. Um, we have yet to make a profit. Um, last year we did, now we did lose $100 million as recently as two years ago, but we believe we’re worth two point $9 billion. That is like a, a homeless man pushing a cart, declaring that he should be mayor and that he is worth $2 billion to me. I mean it’s, it’s like, again, that kind of evaluation, I can’t even begin to speak to it because all on potential, right? It’s all based on technology that could take over now, now to, to the credit of the good folks at square, by the way, and we liked the product. Square square did make it’s first profit in the third quarter of 2018 so square is now profitable.

Oh God.

Right? But let’s, let’s figure it out. The value of the average business for the listeners out there that don’t have a company that’s losing $100 million per year that they’re trying to get evaluated, okay? The it, so we want to do is step one you want to take up, you want to add up the value of your assets to get it. So gotta get down a sheet of paper and write down all of your assets. All right, so write down your assets. Now, Jason, how would you define an asset? An asset is anything that you own of value. All right? So that would be like, I want shampoo bowls. Now it’d be the chairs, computers, computers, sheers, sound systems. Sound systems. What else we got there? Uh, if we have square, no, no payment payment system. Yeah, we’ve got to have some print, some frames, all the tools.

All Man. So many tools. Tools. What about the toilet? The toilet washers, washers, dryers. What else? Refrigerator is fixtures. Coffee Machine Lights. Oh yeah. Uh, what does it to Murphy? The inflatable elephant, right? We’ve got signs. Yo Science. So I’m going to, uh, the workstations, like the deck, like the desks or the workstations. Yep. Uh, what else do we have hooks to hang? Hang gear on hooks. Hairdryers hairdryers called. There’s more stuff. Paraffin thing, the paraffin machines. Eyebrow wax machine, eyebrow wax, Michelle warmers, Calvin. And that we have left over hair. That’s probably worth something to somebody. Oh yeah. I mean we’ve cut some celebrity’s hair, so we, we have like lots of celebrities and Oh man, we should’ve, we should’ve bottled those. Okay, so did he, so we have, those are our assets, right? So you add all that up. I don’t know. I know that’s worth a lot. I don’t know. Maybe it is. Maybe, maybe it is. Maybe it’s not. All I know when you open a store now in the franchise disclosure document, we have a list of what it costs to buy it. But Jason, why is a barber chair maybe not worth much to the average person? Well, the average person might not have much use for a barber chair. So again, other than sitting in it. So then again, I go back to my deep thought value is what someone is willing to pay. Again, value.

It’s what somebody is willing to pay. So I don’t know. I mean think about that person. So if someone’s willing to pay two point whatever billion dollars for your company and loses money, you might’ve won the game of life and that might be a plastic.

That might be a big thing. So again, values what? Someone’s willing to pay. Okay, so now we’ve got our assets written down, then we need to take our actual profits. Gotcha. Our profits. What? Yeah, the profit. This is, this is after all of the income. After all the expenses, after everything, how much money is left now, Jason, why do we advise our clients to operate it at about a 20% profit margin will that way they’re always, excuse me, that way they’re always a profitable, but by default most people are not profitable. Why? Well, I would assume that they are either undercharging for something or they’re overspending somewhere. Can I educate you as to why most people are not profitable? I would love to know and I’m going to use an example by picking on your, your fiance. Who’s awesome. Let’s do it. She’s a great photographer.

Am I correct? She is finally a big shout out to her. What’s your, what’s your website? It is a Alexis Newton in.com there’s a lot, a lot of letters there to repeat it again. I’m a slow, I’m a slow, slow on the uptick. So it’s an [email protected] okay. So we go to her website and let’s just say she’s taken photos cause that’s cause she’s, because she’s a photographer. Correct. So I’m not, I’m not saying she charges this. Let’s just say she charged me $1,000 for my company headshots. Yup. Well then she hires her second photographer because she’s so busy she can’t keep up. Right. So she hires another photographer. So she pays that photographer to say, hey, a photographer friend, I charge a thousand typically and because you are a great person, I’m going to go out and charge you or I’m gonna pay you $300.

Yup. So now one could go, wow, there’s $700 a profit left. Yeah. Well the problem is now we got another person. We got to pay their taxes. True. See if ad going to pay taxes, employment taxes. We’ve got to pay for uh, you know, occasionally will be legal disputes between employees and bosses. Always. You got to cover the legal stuff. You got to get, you covered. Workman’s comp. Yup. You got to pay for the office space because the employee wants a place to work. True. Got to pay for their computer, got to manage them. And your dinner and your, your lady friend soon to be wife. In this case. Let’s say she goes, she said, she says I’m not going to hire a manager cause there’s only one person. Yeah. It’s all just manage to myself. Right. Well eventually when it gets to house, how big Jason Do you think, do you think it gets before you need to hire a manager?

Like how many, how many people do you think one owner of a company can handle? Again the owner of the company is handling, they’re wearing multiple hats, they’re handling the sales, the marketing, the accounting, they’re handling, handling all those aspects of the company. How much of that can they handle before they need to hire a manager? How many employees? I would say, and in my honest opinion to having managed a team, um, once you get to about five or six people, depending on what your company is, I would hire a manager. That way they can focus on the team and you can focus on all the back office nonsense. So what happens is people just don’t factor in all of the costs associated with hiring somebody. They just don’t, they don’t factor in equipment breaking. Yup. Cause they say, when I, when I take the photos myself, the photo, the camera’s never break.

Yeah. But Jason, we manage a great team of stylists. True. But do we not seriously go through some equipment? I’ve got a box full of broken tools that new would be so expensive. Right. But we, but we were, you know, we cut hair. No one’s perfect, but it’s going to break some time. Oh yeah. And people typically are a little bit harsher on equipment that they didn’t buy. Am I correct? Oh yeah. Okay. And then you have unemployment taxes, you’ve got workman’s comp, you have, you know, the company, uh, staff meetings. You’re paying people to attend those, right. You’re paying for rent, you’re paying, there’s all these costs. Add them all up. If you’re not careful, you might not be profitable after paying somebody $250 per shoot. Yep. But then when you added a manager, you pay a manager to go, well, what am I going to pay the manager?

Let’s say you take the manager and you say, I’m going to pay the manager per shoot, $200 per shoot to manage a team. Yup. Why don’t you add it up there? There might not be enough for the manager to make a livable wage. And so now you have to increase your prices and it just, it gets kind of weird. So people just don’t factor in the profitability of their business. So what I would encourage you to do if you’re a, if you’re a small business owner out there and it’s just you, you’re the owner and you’re managing a team of one or two people or five or 10 people, I would go ahead and factor in. Now moving forward, hiring a manager and ask yourself, what does it cost to hire a manager and make sure you’re charging enough to be able to afford that manager.

All right? So what you’re gonna do is gonna figure out your, your income, your, your profitability. Yup. After all expenses. Now everyone has their own way to affect her. This in, I’m saying after all expenses. So let’s say that you had a business that had $3 million a year of revenue. Yup. And it produced a profit of $600,000 a year. All right. Yeah. So can you kind of mentally picture that? I can’t. Okay. So this, this is how you would determine the value of the company. You would take the profits times of factor of between two and a half and 15 times. Okay. Yeah. So there’s a company called the Hartford. There are financial group, and this is what they say. They say a more relevant measure. It’s probably a multiple of the company’s earnings or the price to earnings. Pe ratio estimate the earnings of the company for the next few years.

If a typical profit or price to earnings ratio is 15 and the projected earnings or 200,000 then the business would be worth $3 million. Hmm. So let’s just say he had a company that produced a profit on an annual basis of $600,000. If you took $600,000 and you multiply that times, let’s say five. Okay. Because you’re factoring in saying the profitability, the company times five is worse. So that they are up to a, let’s do my math here be $3 million plus assets. Right? So one could argue, but the Hartford saying times 15 you know, the Hartford Saint Times 15. So one could argue, they could say, well, if a business is doing $3 million a year and a $600,000 a year profit times 15 one could say that business is worth $9 million plus the cost of the or plus the assets, which can be in this case, photography equipment or hair equipment or something like that.

Yeah. But a business is only worth what someone’s willing to pay for it. True. So, uh, did I tell you about one of my clients this week getting offered a $5 million offer? The Timothys? No, but that’s good news. Okay, well, one of my clients has a brick and mortar company and they’re up in the northwest and they got offered a $5 million cash offer who by their competition to go away today or this week. So the offer was this, they could blame. They literally got a call from a competent, from a competitor who said, I don’t know what your revenues are. I don’t know. Uh, we respect your business model, but we’d like to buy you to acquire you because they already have a business that it’s similar, right? It’s in the same their, their, their, their competitors. And they figure it’s better. It’s better to just buy the competition than to compete with them.

I could see that. So that’s a, you know, nice deal. Yeah. The only problem is it’s a brick and mortar company who, who knows, it might cost $3 million just to build the thing or 5 million just to build the, build the business. I don’t know. Yeah. So all I’m saying is I could run around, they’re saying to you today, I could go, Jason, look man, this company has a $600,000 a year profit. And because it does and I’m going to factor it based off of times 15 cause that’s the Hartford says, yeah, well I got a $9 million best as I can run a rag, a 9 million. But the question is who’s willing to pay for it, right? Who’s willing to buy it? So again, we go back to this idea. Value is what someone is willing to pay. So I’m going to give something to give some examples.

Even going, going back to coffee. We come back full circle. Let’s do it. So let’s get back into the circle. Yeah. When you go out to your super high end coffee place, what does it cost you for a coffee? For my specific coffee, it’s like $3 and 80 cents. $3 and 80 cents. Is it worth it to you? Um, yes. Why? It’s just one. It does the job. I actually feel like I have been energized by it. Yes. But it also just tastes good and it’s provided by somebody who cares about what they’re doing. So it’s just, it’s they branded well. They market it well and then they also make it well you care that the person who sells it to you cares. I do. Now this coffee here we have in our hands. How much was this cock? I won’t, I won’t ask you the name of the company, but how much was this coffee?

This coffee was like a buck and some change. Did the person who sold us coffee to you, did they seem to care? Um, no. He was very helpful. They changed their lids sizes and walk me through what lid. So he did care today. I mean, yeah. Did he seem like sarcasm mo? Was He, was he in rare form today? I know, I know. I am. I’m speculating where you went and if you went to the gas station, I’m thinking of um, there’s a high probability, but the person selling you to coffee does not care. I will say he was listening to an inappropriate podcast very loudly while we were having our exchange. Was He? Yeah. What was it? Was the podcast about it? At some point it had to do with mountain climbing, but then it also had to do with the guy was like, well I’m not going to say that a woman can’t do what a man can do.

But listening to that while ball, he’s selling you coffee. Nice. And that coffee was how much again overall I spent less for these two then I would for my one at double shot. But I mean I think that the dollar is probably the most we should have paid for this coffee. Yeah. And and the it gets the job done. Yeah, but it has a slot as kind of a side of sarcasm. It’s an instance of your coffee. All right, so if you’re out there today and you’re asking, well, okay, well clay, what are you worth? Well, well buckaroo that’s a great question. I want to, I want to just throw it out there. Again, I don’t like to make claims as to Clay Clark net worth. I just like to show facts because me claiming I, if I, if I hopped on this show and I said, well, based upon the data that I have and based upon the delirium and you know what I’m into, I would say my one business alone is 9 million.

Right. Well, that’s not true. It’s not accurate. It’s only what someone’s willing to pay. Now I can’t tell you I have had offers to buy certain businesses and I think it’s important for the stability of the employees who work at elephant in the room to to know this. My goal with that business is to open up 100 franchises in great locations and to try to sell the franchise to its few of people as possible. Right. Could you explain to listeners out there why you think or what, why, why you believe or why you would, well, why, I would probably rather sell a 50 franchises to Sherry and nace and Jordan who owned the Oklahoma City stores as opposed to selling elephant. The rooms to 50 different people will team has to machine, knows what they’re doing. They spent a lot of time researching the products.

Like they shout at us, they sat in on all the meetings, but now they’ve also proven that they can follow the system and they are very successful in their own business. Yeah. They get it. They understand how a business works. Right. And they’ve been a coaching client of mine for a long time and there are great people. They really are. They’re great people. Um, also let me give you another example. Um, with Mike Company, epic photography, we sold that company a while back, right? And that sales price was agreed upon based upon what the buyer was willing to buy it for. Yeah. I could sit there and argue again all day. Well here’s the profits are multiply it times 15, and this is why it’s worth, you know, you, cause you kind of make that, that’s the greedy sound man and people, I see a lot of people doing that though.

Yeah. You can’t do that. It’s only what someone’s willing to pay. Right. I just think it’s so important now. So again, you can speculate. I would encourage you, if you want to figure out what more, what my net worth is, just go to Eitr lounge.com and a download the franchise disclosure document. Oh, it’s a lot of fun. Or you could do a Google search today. This is fun. We have this available now. Let me pull it up here. Do a search for, let me see it. It’s a, I do a search here for thrive time show and then franchise disclosure document. I did a search for that and then there you go. You should be able to find that the franchise disclosure document right there. You can download it. If you want to get a copy of a franchise disclosure document, all you have to do is go to Eitr lounge.com and request one.

We’ll send it to you and then in there you will see real numbers. Jason, you and I read the franchise disclosure document out loud, didn’t we? We did. How long did it take us? We’ve recorded for nine hours after the edits. It’s about four and a half hours of power. There it is. There it is. Now I want to make sure the listeners out there are getting this. If you are out there trying to achieve success and you look up and you go on Facebook or you go on Fox News or you go on Forbes and CNN and you see, look at that luck. Twitter’s worth $31 billion. Okay? Yes, you’re right. In 2013 he had a valuation of 31 billion, but you’re also, you’re also wrong. If you think the company made it, made any profit at all. Yup. The company was losing money until 2018. This happens a lot.

Did you know it took Tesla over a decade to make a profit? I can see that. Why? Why do you think it’s a good, why do you think it took them over a decade to make a profit? Well, I don’t think he had a everything sorted out like he should have based off of, um, there’s a lot of r and d that goes into what he’s doing. Research and development, right? Yes. There’s, there’s just so much overhead that nothing caught on until the product one. I mean, I don’t think he was able to actually make the product for half that time. It was all him sleeping in the factory and trying to get the design perfect and overseeing every little detail. There is a lot of, there’s a lot of people out there wondering, like Elon Musk, he built a space x, you know, the new company that makes reusable rockets.

Oh yeah. And they’re going, when is this company ever going to be profitable? Is it profitable? Is it, is it ever going to be profit profitable? What’s the value of this company? Um, well, right now, uh, the space x is valued at $21 billion. Approximately 21. Well in 2018 is worth $21 billion. However, the company, many are speculating that it’s not sustainably profitable. It’s not going to be sustainably profitable. I mean, how many people out there, if you’re listening today, how many of you out there are going to be buying a rocket suit and what your thought about what it costs to buy a space x rocket? I mean, I want one. Do you have you, have you ever thought about buying one? Um, I’ve never thought about that because that would require a lot of investment. Okay, let’s just look it up real quick. To buy a space x rocket, it’s approximately $62 million.

Every time they new launches, that’s not as bad as I thought. Okay. It’s $62 million. It cost $62 million every time it launches. Right? So what does the rocket itself cost? Uh, $57 million. Ooo, all right. So anyway, I’m just throwing out here is that if you are out there today and you’re trying to compete with a net worth, you’re trying to compete with some, you know, to stop it. Stop trying to compete on that. All I’m saying is don’t, don’t spiritualize this. Just know that your net worth is your assets minus your liabilities. However, even if like say I owned a rental house, okay, Jason, let’s say I own rental houses and the rental houses are valued at $250,000 a piece. Yup. And I owe 160,000 on each one. Yep. All right, so he’s up. That means the house is worth two 50. Let’s make it easier.

The house is worth two 50. I oh one 50 and I own 10 of them. Right. So that means per house, I have roughly a hundred thousand dollars of value there. Yup. $100,000 of of worth there. That’s my own cause that’s assets minus the liabilities. Yup. If somebody wants to come in and buy all 10 to go, hey, I’d rather just buy all 10, uh, for 3 million cause they’re already profitable and you already have renters and when somebody can pay you much more than something’s worth more than you think it’s worth. Right. Um, our land, can you explain, um, our, our house, the man cave where we are recording right now. Yeah. We’re on, it’s basically like a 17 acre chunk, a 14 of which it is one of which is, is inhabitable. There’s a creek and that kind of thing. Yeah. I would, I would guess that it’s more than 17.

Cause when you look back it just goes on forever. Yeah. But I’m saying like what are they building to the east of us? Have you driven just a little bit east of us. Have you seen all those houses? I have not actually. Okay. The blue show homes is building homes everywhere. Oh, nice. Then you have the, the the street corner there at Lynn Lane and a hundred and first that area. Right. Um, that, that, that land has been zoned commercially. Okay. So soon it will probably have a Walgreens there or something. Oh yeah. And if you drive a little bit west of me, there’s a, a Mexican restaurant there. There’s a research, there’s a come and go. Ugh. It’s all suburban sprawl. They’re right. Right. Have you seen that? I have. There’s what? Like a GNC over there? Oh yeah. There’s a, there’s a tiny little gym is a tiny genders.

All these different, that’s all business. Yup. Have you noticed they’re not, there’s not really a lot of other patches of land like mine in broken arrow. I have noticed that. I think we’re the only one. Yeah. In, in Tulsa, in the Tulsa area. Maybe. Maybe your neighbors with the horse farm. But even then when my wife and I were looking, we’re like, well, this is the only piece of land we can find like this. Right. So already, just already it’s already happened. There’s already people who have offered me three times more than I’ve paid for this to to turn it into like a housing development. Yeah. And why it, why do you think I’m not going to sell my property and turn it into a housing development? Because this is your property. You find value in it. This is your home is with a man cave resides.

Yeah, but, but, but my house, she’d go on Zillow and figured out like, why that house according to yellow, you know, sent not worth that budge. Right. Well maybe it is, maybe it isn’t. Yeah, because value is what Jason Values, what people are willing to pay or what you were willing to accept. So somebody could come through and say, Hey, I’m going to pay you a six times what you paid for the house, but the house was worth more than that to you. Let’s say that out of this studio right here. All right. This d we record every day. We record every day, every day. And we’re, we’re a, we’re, we’re interviewing what Wolfgang puck John Maxwell. Yeah. Uh, who are some of the biggest names we’ve had on that you love? We had, we had Justin ran on the show. Justin wren. Yes. Mixed Martial Arts Guy Fighting the Mitch.

Mitch. Yes. Can you explain who mench was? Um, so a ship was chef Gordon. He was and still is in my opinion, the greatest manager that Hollywood has ever seen. We’ve interviewed him, we just interviewed Ross Golan. We interview a lot of people, so many people. And let’s just say that out of this very studio here, let’s say that we end up getting to the top of the iTunes charts six times, which we did. Yeah. And let’s say we keep doing it though for a decade. I just a decade a hit. Let’s say we interview everybody. Let’s say eventually on this very microphone, someday you and I interviewed Oprah. Oh Man. Let’s say that we interviewed Dr Phil. Let’s say that we interview. By the way, if you’re listening out there and you know somebody that you want us to interview, just email us info at thrive time, show.com and we’ll invite them on the show and we’ll see what happens.

Yes. Let’s say I’m this very microphone that we interview some huge names, man, and we just start just getting bigger and bigger names and more and more downloads and we began to just grow something huge. Yeah. And let’s just say one day while broadcasting the show, I’ll broadcast and show it at the peak of our, of our excellence. Somebody reaches out to me and says, I want to buy your house. And I say, well, why? And they say, because this is where you recorded the thrive time show and I place value and net microphone. Yeah. It’s like a museum for me and I want to buy it. Well then a house could be worth a lot. True. Think about Elvis’s house. Oh man, we’re Elvis lived Graceland. Yeah. What’s that thing worth worth? I’m sure it’s worth probably hundreds of millions. A guy who went to college with a Ryan Tedder, just sold his house to Ryan Tedder, the music recording artist.

He just sold his house to, uh, Cindy Crawford. He then, no, you was Cindy Crawford is the famous actress, right? Yeah. Now it’s a model actress, you know, so I’ll, I’ll pull it up here. So this would be a Ryan tedder sells house to a Cindy Crawford. Okay. And there it is. So it’s a, the article is published in the La Times. It reads, I’ll come on, I gotta get a commercial loading here. Let me see. I can pull this up here. Okay. Pushing through it. There is this one republics. Ryan tedder flips his Beverly hills home to Cindy Crawford for 11 point $6 million. Go Ryan. There it is. Do you think that the house would be worth more to somebody? You were looking through the photos here. It’s a very pretty house, let’s say. Would it be worth more to somebody years later if they said, you know, if the real estate agent says, you know, this house right here, this house was the house that Ryan tedder lived in and this is the house that Cindy Crawford lived in and now this could be the house you live in.

Do you think that that story makes the house worth more? I think the second that you added Cindy Crawford to that real estate agents be like, oh we could, we could tack on another five Mil for this. But you just mentioned your coffee that your coffee, you’re willing to pay more because why? Because it’s a better product. And what you said because the person actually cared. Yup. So I’m, I’m suggesting for the listeners out there, you could increase the net worth of your product, your service, just by the story of it. True. I mean, don’t you think? Again, if you’re a real estate agent and you’re showing the house that’s for sale and you say, Hey, this particular house has had two previous owners, Ryan Tedder, Grammy Award winning artist and Cindy Crawford, and you had pictures of them up on the wall when you’re showing the house. Oh, it would sell.

Do you think it’d be worth more? Oh, absolutely. Unbelievably. Now what? What did the real estate agent dresses up nicer? I go through here in a nice suit when they’re presenting. Oh yeah. Is the house worth a little bit more? I think to a lot of people they would. They would want to pay more because the person is, they seem of a higher caliber, which makes the product seem like it is worth more. Let let me tell you about this house. Okay. Tethered. His wife worked with Alvarez Morris Architecture to restore and expand the 1959 built house, which was one which was once owned by the film producer, Gregory Goodman, a new bedroom and family room were added to the floor plan while the bathroom’s fixtures and systems are updated. The original carpet was replaced with a three the original car port, not the carpet. The original car port was replaced with a three car garage.

The mid century modern style house has 5,386 square feet of living space. That includes five bedrooms, six bathrooms, a center island and banquet size. Dining room set behind ornamental screen doors. A floor to ceiling fireplace. What bar serves as a partition to the living room? Oh, and by the way, and by the way, Cindy Crawford has lived there and Ryan tedder has two. It features a swimming pool and a spa, a fire pit, and it covered barbecue station, mature trees and Alon makeup grounds of more of a, about an acre. A motor court sits behind the gated front entrance, a motor court. What’s that? Uh, okay. But the property came to market in June for 12.7 5 million records show. There it is. All I’m saying is if you’re out there today and you’re trying to calculate your net worth, the formula is this just your, it’s your assets minus your liabilities.

That’s how you determine your personal net worth. Now as a business, you take your assets and then your profitability times some factor in every industry. It’s a different factor right in, in, in, in the technology industry, it’s your gross revenue, not even your profit. They just take your gross revenue times some crazy number and they go, well, it’s my gross revenue times eight. That’s how much, how much, that’s how much the company’s worth. Oh, why? I don’t know. But it’s the wanting to buy your plumbing company. It’s your assets. Okay. Plus your what your, your profits times some agreed upon. Yep. That

my friends is how you determine your net worth. And that is all I have to say about that. And now that he further, I do like to end each and every show with a loom. So here we go. Three, two, one. Oh,

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