The Truth Spoken to Young Entrepreneurs at Texas A&M University
But I’m going to tell you guys, you’re in
college, so most of you have probably tried some sort of drug. I was never a fan of drugs. And I’ll tell you why I was never a fan of
drugs. That doesn’t mean I didn’t try them. I’m just not a fan of them. I tried almost all of them.
But the reason I didn’t like them is because of control. It controlled me. And I couldn’t think. I like to be in control. I don’t like it when things are controlling
me. And drugs control you. I don’t need an escape for me to go into la
la land. I want to make my life an escape. I want to make my life so cool that I am the
Earth is the escape for me, from the reality that most people live. And I realize, guys, that out of all the drugs,
the most incredible sex, the most incredible things you do, there’s nothing, the most incredible
highs in life are all natural highs. I prefer natural highs. That’s what I seek. I want to encourage you to seek natural highs. All the other stuff is temporary. How long does sex last? The best one. Then you’re tired. And then it’s like, okay, you go to sleep. How long does highs last with pot? An hour? What do shrooms do? Take you a whole different place? What does cocaine make you feel like? Like you can conquer the world for 30 minutes? What does ecstasy do? Get you a massage? Wasted time. It’s a waste of time.
When you’re winning, imagine being high for 50 years. Holy shit. I’m frickin high non-stop. Now that’s a high. Right? And I know it’s, you guys are probably going
to leave a little confused tonight. You’re going to say, who the hell did this
guy invite today, man? He said everything you’re not supposed to
say, man. But it’s the truth. And that’s my thought.
So going back to the question on scheduling, it’s all day, every day, non-stop. And then once you make it, then who do you
want to be? Because when you start making money is when
you really learn a lot about yourself. So what are you guys going to do when you
start making a quarter million a year?
It’s easy to say, “I’m going to go for a house!” You don’t know that. Do you know how many guys at a quarter million
slow. . . do you know what a quarter million is? A quarter million is a $7,000 mortgage payment. It’s a pretty nice house. It’s a million dollar house. A quarter million is a nice, $2,000 car payment. That’s an S550. That’s an SL63. That’s a Porsche 911. Everyone’s checking you out. A quarter million you’ve got a nice Rolex
watch or a Brighton watch if you want it. A quarter million, you don’t go to Macy’s. You don’t even go to Nordstrom. You go straight to Neiman Marcus. So how do you know you’re not going to slow
down? We don’t know that.
Here’s the reality, though. Most of you guys look at me as an old fart,
because I’m 38. Right? I talked to one of the cats, and he’s like,
well, you already seem old to us. You seem like an old man to us because you’re
twice our age. Great. Do you know, I’m counting on your inventions
like our generations counting on your innovations. Like we are truly relying on what you guys
are going to be doing. 100% of the world’s problems, guys, I’m at
Harvard Business school. There’s a part everyone’s got to go up there
and pitch. I’m one of the 16 people that pitches in front
of a couple hundred people.
I believe 100% of all of the world’s problems are going to be solved by entrepreneurs. 100%. 100% of all of the world’s problems are going
to be solved by entrepreneurs. I 100% believe that. 100%.
Watch this. I’m at Harvard Business School. Everyone’s pitching their opportunity. One guy gets up and pitches and he says, “Here’s
what we have invented. We have invented a technology that tells the
city, the state, the county, to expect an earthquake in three minutes. We give them a three-minute warning.” We’re like, get out of here. “Let me show you the technology.” We’re literally sitting there like Oh my gosh.
How many people have been killed by earthquakes this last year? Did you see Italy, what happened, a hundred
and some people died in Italy? Earthquakes. We don’t worry about it in America because
the buildings are built solid, but what about some places that don’t have the best things
Another guy in Lagos, Africa. People don’t have water. We’re okay with water here, but one of the
biggest world problems today that everybody’s fearing is what? Water. This company starts this machine. It’s $100 million plant you create. It produces a million gallons of water every
day from air. Air. This water problem is done. Because of entrepreneurs.
Next guy comes up with cancer. I’m sitting there and I’m saying, Man, entrepreneurs
are going to rock the world. We have 7.2 billion people living in the world
today and only 400 million entrepreneurs. That’s 5.7%. That’s not enough. We need to take that to 20%. If we take that to 20%, you know what can
be figured out? Any problem. Pick it. I don’t give a shit what it is. Any problem is going to be solved by entrepreneurs. Any problem will be solved by entrepreneurs. You know why? Because if you don’t figure it out, you’re
going out of business.
You don’t have to figure out the solution at your job. You’ll still have a job tomorrow. So we sit there and we’re like, hey, what
do you think about this? Bro, what are we going to do? Give me a pen. Give me a paper. What if we did this? You know what? We’ve got to call this guy. We got to get ahold of this guy. Call this. How can we get ahold of him? See if anybody’s got any mutual friends. I got three mutual friends. Who are they? Message them. How do they know Bobby? This girl knows Bobby. They went to school tomorrow. Hey, Mary, can you give us Bobby’s phone number? Bobby knows Jackie. Hey, Bobby, when can we get together, man? We understand you did this, this, this. Hey, Bobby this is what we got. What do you think about this? Oh my gosh, you guys have to talk to Jack. That’s exactly who we want to talk to. We want to talk to Jack. Well, what am I going to get? We don’t care. 10%. Let’s do a deal. I want 20%. Great. Let’s do this. Jack, deal. All of a sudden, oh my gosh! That’s entrepreneurs.
You don’t have to do this as a job. But you’ve got to do this as an entrepreneur. 100% of world’s problems are going to be solved
by entrepreneurs. We only have 5.7% of the population that’s
entrepreneurs. And we have some countries that have the most
ridiculous minds ran on a communistic system that doesn’t give birth to entrepreneurs. That’s a problem, because you know what a
communistic system does to entrepreneurs? It just goes, wham! Shut up. Stop thinking. We don’t care. We tell you what to do. We have all the problems. No, but I’m telling you! Be quiet.
So we have an economical system that’s broken that doesn’t work because a guy wrote a book
called Karl Marx, called Communist Manifesto that universities are fascinated by. Bourgeoisie are terrible people!
Oh my gosh, what nice, noble people. Really? Really. When we’re young, we want to save every problem
in the world and we want world peace and we want to make sure taxes go up to 60, 70 percent. You know why? Because you’re not paying taxes. You don’t care if taxes go to 90%. No, it’s not fair. These rich people are so greedy. Really? Man. I haven’t met many rich greedy people. Rich people are so greedy! They’re so greedy. What makes them greedy? Tell me what makes them greedy? They’re greedy people. Rich people are greedy?
I grew up in a family. My mother was 100% communist. My father was 100% imperialist. You know what’s imperialism? It’s crazy stuff. You know what’s communism? It’s crazy stuff. So I grew up a confusism, or whatever you
want to call it. What the heck is going on here, man. One side saying rich people are terrible people. The other side saying poor people are lazy.
Oh my gosh. Maybe they’re both. Maybe there’s a little bit of both going on. So on one end, people ask, why are you doing
I got a book that I wrote, it’s a fiction book that none of my family members want me
to publish because if I publish it, it’s a very controversial book. But the purpose of Valuetainment, I’m not
making money off Valuetainment. Why do you keep making these videos? Man, we need the world to buy into entrepreneurship. We need these dumb economical systems to be
converted to capitalism because it works.
Do you realize how much good you’re going to do when you make money if you’ve got a
good heart? What the hell do you think you’re going to
do when you have a good heart, when you make money? Listen, this is how money works. If you’re a jerk, and you’re broke, you know
what happens when you’re a billionaire? You’re a jerk billionaire. But if you’re giving when you’re broke, guess
what happens when you’re a billionaire? You’re giving.
We got to get these giving people who are poor to become rich. The hard working people. Not the ones that say, “I don’t think it’s
fair.” No one cares if it’s not fair. No one. I’m telling you right now. No one cared that this cat was born in a family
that mom and dad got divorced and I had a 1.8 GPA and my dad worked in a 99 cent store
in Inglewood and I’m living in Granada Hills. My mother goes back to Iran. And every time I go to school, my counselor’s
looking at me like, “Son, it’s okay. Not everyone’s supposed to go and do big things. The military’s a good fit for you, sweetheart. You don’t know how to read very well. Because business is tough, and school is tough,
just go into the military.” And I’m like, Okay, you’re right. I’m not supposed to do anything. You’re right. I mean, my dad worked in the 99 cent store. Maybe you’re right. Maybe you’re right.
And I almost bought into that! I almost bought into that! Somebody closed me on that deal. Hell no! We’re not being sold on that deal. And I finally questioned it. No! You’re not selling me on this deal. I’m not doing it. Stop it. I’m not buying it. That’s your sale. You’re not going to sell me here. That’s a sale over there I’m not buying. I’m going to pay for price. What’s full price? I’m going to bust my ass to get the full price,
because I want control.
You’re not going to dictate what this guy’s going to do with his life. Neither are you going to do with my kids. It’s not going to happen. Period.
I tell my kids. You know, I’ve got three kids. The oldest one, a four-year-old. He’s got a three-year-old brother. And the three-year-old brother is like, you
feel his calves, and this guy’s got calves. Seriously, thick. He walks around like this. But his older brother keeps bullying him. And the younger one is like six months old. She has no clue what’s going on. She’s just beautiful.
So, I sat my older son down. I said, listen, son. In this family, there’s four things you’ve
got to do. If you do these four things, you’re never
going to have problems with your daddy. What are the four things, daddy? You got to lead in any situation you’re in. You’ve got to respect people. You’ve got to improve. And you better love people. Because everyone’s dealing with some kind
of shit. Okay? You’ve got it? Tell me the four things. And he tells me.
Here’s another thing. Let me tell you another thing. Do you know what a bully is? No. I’m going to show you what a bully is. Okay! He’s thinking it’s a fun game. This is not a fun game. I said, ready? Here’s what a bully is. Give me your shirt! And I go take it off. Daddy, that’s my favorite shirt. You just bought it from Disneyland. Give me your pants! Give me your shoes! No! Give it to me! And I pushed him the back. Because that’s what he does to his brother. Do you like that? No. Do you like that? No. I said, come here. Let’s go. I said, “Pop. There’s two things in our family. One, we don’t bully anybody. You bully anybody, I guarantee you no one’s
going to bully you more than I bully you. There aint no bully going to be bigger than
me. Is that clear? Yes. And number two, no one bullies us. Let me say it again. No one bullies us. No one does. No one bullies this family. Do you understand that? Yes. So now both of them are saying, Daddy, Bet-David
family we don’t bully people. And Daddy, no one bullies us. And then I ask them. Look what happens. I say, Daddy, who loves you Pop?” He says, “Daddy, you love me, Pop.” I said, “Daddy, who believes in you, Daddy?” He says, “Me” meaning himself. Oh man, that’s powerful. He said, “I believe in me.” I said, “You’re right, Pop. You believe in you.” Man, half this game’s a mental battle.
I didn’t believe in myself. Simple as that. Someone convinced me I’m just supposed to
be a regular cat that goes to military. I put in 20 years, come out and work at a
place as a civil engineer somewhere or whatever. I’m going to make 72 grand a year. And I got my $2200 pension from the Army. Hey man, you did good, bro. You did good.
There’s a place for that. I respect anyone that’s served the military. There’s a place for doing that. But if you have more upside, my goal is to
maximize your upside. That’s purely it. The rest, it is what it is.
So that was a long winded, that’s why it wasn’t two minutes with Pat. It’s like seven minutes with Pat.
Alright, next question. There were a lot of answers in that one.
Q:What would you say to someone who is about to graduate and wants to run a startup. Should they go right into it or should they,
you know, get some sort of day job first?
So have you ever ran a business or not yet?
Small stuff, like selling door-to-door.
But you’ve sold something? Yes.
And how long did you do door-to-door?
For three months over the summer.
I wish we had something to write on. It would be so much easier if we had something
to write on. Can I write on that? Can you do that or no?
So, Paul do you have the GoPro on? Where’s the GoPro? Okay, got it. If we can increase that and move that up,
I can explain it to you.
So let’s stay, while he’s doing that, let’s you and I talk. Guys, let’s try to not get distracted. Just stay with me, stay here, they’ll figure
Stay here, stay here. It’s okay. They’ll come back. Believe me. If you can’t stay focused as an entrepreneur,
you’re screwed. Stay focused. Okay.
Okay, so what do I do? Do I go get a job or do I go and start a business
now, if I have a startup idea?
In Hollywood, have you guys noticed in Hollywood that the same give actors or three actors
play the same types of movies every year? And they come out with a movie. Like Adam Sandler has the same what? Squad. Vince Vaughn, and these guys have the what? Same squad. Like Jennifer Lawrence did what movie with
Bradley Cooper? Crazy movie. Silver Lining. How many of you have seen the Silver Lining? It was unbelievable movie. And then they did another one again that came
after that, because they connect. So they keep going again and again and again.
Okay, just like in Hollywood, you’re doing that, and the actors find a team, imagine
if you and I. . . think about if you, so one day I’m playing poker, 12 years ago. I’m playing poker at Hollywood Park. And it’s late. 12 o’clock at night. The main head table is Jon Favreau, Vince
Vaughn and another guy that’s their friends who did the Christmas story back in the day. Okay? And I’m sitting there, playing poker with
these guys. And they have no clue what they’re doing. So it’s an easy five grand made in a night
because they’re clueless. And five grand is nothing. All in they’ve got two tens. But I stayed six hours with them. We became buddies, conversation was phenomenal. If you get into that circle, you’re automatically
Right? Automatic. Guilty by association. So the one thing, if you are going to become
an entrepreneur, man, see if you got a good team. Like if you guys are here in school, find
out who’s the sharpest cat here, that has opposing strengths to you. Not the same. Opposing personality to you. Not the same. Okay? First build this [team]. If you can build this, honestly forget about
the rest. Because all I need is, I need three minds
and a marker and a board. That’s all I need. So then what are you going to do?
Let’s go through the formula. Do people stand on this, or what’s this here? Yes. Okay, I’ll stand up.
So now here’s the next thing you do. It’s very simple. You go through industries. So write down the industries. Telecommunications. Okay. Media. Financial. Write every one of these industries. Okay? Write every one of these industries that you
have. When you write these industries, identify
the problems. One, two, three. Identify the problems. Then see if anybody is trying to solve those
problems. Then find out if the person that’s trying
to solve these problems, how good are they doing. Are they MySpace, are they Friendster, or
are they Facebook? Big difference. They were all doing the same thing. But Friendster had no clue what they were
doing. And then MySpace was just about the money. And Facebook, the guy’s legit.
So are they Friendster, are they MySpace, are they Facebook? If they’re Friendster and MySpace, hey, maybe
there’s an opportunity for Facebook. Okay. That’s this part.
Next, have you guys all read Blue Ocean Strategy or no? MUST, must, must must. It sold three million copies.
Blue Ocean Strategy is a concept you’ve got to read before you start your business. In Blue Ocean Strategy it talks about how
most people are in a shark infested ocean where all the sharks are trying to do what? Eat each other. And eventually when you don’t have food, who
do you start eating? Each other. So the ocean is red. It’s a dog-eat-dog type of environment.
They recommend to go into a blue ocean. A blue ocean has no sharks. You’re by yourself. Makes sense? So how do you create the blue ocean strategy
formula? You’ve got to create, you’ve got to eliminate,
you’ve got to increase, you’ve got to decrease. Whatever somebody’s doing, this formula take
it and apply it to them.
Let’s just take Snapchat. Snapchat – what can be eliminates with Snapchat? For instance, if you could eliminate anything
with Snapchat, what would you do? What do you not like about Snapchat? [inaudible]. It’s a tough search? So what are you going to do? So that’s more on the create. Right?
So let’s just say we’re going to go easier to search. Is that fair? That’s just one thing. So we’re going to increase search.
Let’s talk about create. You know what’s a terrible thing about creating
on Snapchat? No one knows how many followers anybody has. So the spirit of competition for people to
go get more followers is what? Not there. So what if we created Snapchat and we have
followership. I’m just throwing it out there. We’re not doing this. I’m just trying to show you how this formula
Okay, what do we minimize? What do we make lower? You know, what do we make less? Take a part of Snapchat and what can we decrease? And then take a part of Snapchat and what
can we eliminate? Pick a part that you want to eliminate.
Then, you are a blue ocean. You’re not Snapchat. You’re a blue ocean.
Lyft vs. Uber. Can you tip on Uber? No. Lyft says you can. That’s the point.
So you say, every time you’re done with an Uber, so Lyft said, Uber is for who? Customers. Lyft’s customer is who? Drivers. So Lyft is focused on drivers, Uber’s focused
on who? Customers. Lyft is not going to be as big as Uber. But it still became a few billion dollars. Because their focus was what? Let’s make sure the drivers are going to be
able to get what? Tips. So everybody here [Uber] who hates the fact
that they don’t get what? Tips is going to come to who? [Lyft]
This is a formula.
So pick a team. Build your team. Solid team. Go through the industries. Identify the problems, how would you solve
it, who’s there already, take the blue ocean strategy formula, and from there, you know,
Now, have you ever worked under a killer?
Is your father a successful entrepreneur? Is there an uncle in your family that’s very
good at business? I don’t know. Okay? You’re at Texas A&M. So Texas A&M is a solid school. And you guys are not here by luck. You’re either from a very successful family
or you’re as sharp as hell. It’s one of the two. You didn’t get lucky to get here.
Is somebody in your family very successful?
My mom and grandma.
Business or career?
So have you watched them grow their businesses and do very good for themselves?
Yes. I’ve also seen my mom go through bankruptcy.
But she still kept some of her wealth. Her one business didn’t work. Is she losing everything, or just the business
is losing everything? It’s okay. It’s going to happen. If you run a business, you’re not going to
win every single one of them. You’re going to have some failures, right?
So, on that end, I don’t know if you know work ethic yet. That’s the scariest part about business. If you don’t know how to work, you’ve got
to work under somebody that’s going to kick your ass and toughen you up. This business world is a very, very, there
are sharks in this world, man, and they want to eat you up. They want to make sure you don’t make it. They want to kill you in business. You better believe that’s exactly how it is.
You’re supposed to not ever have sex, save ourselves, get married, in our church, and
then that’s the best way to do it because that’s what makes it work. Okay.
If you take 100 people, and they do that. All of a sudden it’s like wait a minute. You guys were married for 20 years? And now they feel like they missed a part
of their lives. And one cheats, and they get a divorce. What the hell? They did it by the book.
And there’s another couple. Saves themselves, they don’t have sex, they
get married, they live forever together. And they’re very happy. Every argument has an argument that didn’t
work. But you’ve got to pick one that works for
who? For you. And you’ve just got to work with odds. You increase and decrease your odds.
When I was getting married to my wife, I bought a book on our second date. The book was called 101 Questions to Ask Before
You Get Engaged. Second date. I said, “A week from now I want to get together
with you. If you’re open to this, I want to go through
every question that’s answered. I’ve already done this exercise with three
other girls. I just want to see where you’re at.” Cool. That’s exactly what I did. A week later, six hours later, I’m like, yeah,
this is it. And a year and a half later, because you know,
the first six months is all acting. Oh, babe, I love flowers. I just look at flowers and you know where
it takes me, babe? When I look at flowers, I get connected to
God. It’s like a spiritual connection. I feel like I’m hanging out with Deepak Chopra
and it’s like Oprah’s there, and we’re just looking at it and we’re like, somewhere else. You know what I’m saying, babe?
Babe, I totally feel it. you’re so connected with your emotions.
I am, baby.
Six months later, how do you feel about flowers?
I’m so sensitive! Allergies. I can’t stand flowers!
Wait a minute. You just told me. . .
I was acting. I was trying to impress you. But you’re now in too deep.
Leave, go ahead! You know, it’s one of those things.
So the first six months dating is a bunch of B.S. when everyone’s acting and fake, so
don’t believe anybody for the first six months. That’s why you don’t get married in the first
six months. Hang tight.
And after about 12 months you’re like, oh, you are a psycho. Okay. Entertaining.
So, yeah, there’s no one formula. Okay?
And by the way, don’t compare yourself to anybody. You’re living your life. You’re building your life.
I had a group of guys that came together with me yesterday who they flew in. They run a very, very successful debt settlement
company. They can sell the company today for $30 million. But they’re upset because one of their friends
from high school is making more money than them. And they’re doing solar.
And I said, “Who cares what that guy’s doing?” Now they didn’t want to say it, but I knew
it. I said, Stop. Listen. Stop. That’s great you’re competitive. You’ve got to have a spirit of competition
in the world of business. If you don’t, you’re going to get killed. But who’s life are you building? You’re building your life. Go build your life. You’re going to be fine. Okay?
[Question] Describe what you do in five words.
[Answer] I run a financial firm.
So, my father back in India has a business for thirty years. I believe he’s successful in what he’s doing. And now that my journey’s coming so what do
you suggest in helping me take this business globally?
So you’re going to work under your father?
I worked for one year under him and then I came here.
So what do I suggest for you to do to take the business globally? I don’t know your business.
It’s a manufacturing [inaudible]. There’s a machine that separates the grains
from the rice husk.
Got it. And how well are you doing there right now?
In our tri-state area it’s very famous and my father is well established, doing his business
for thirty years.
What’s the long-term goal?
My goal or?
When you and your father sit down, what is the company’s long-term goal?
The long-term goal is to build the business and feed every poor people by whatever I gain. So that is my vision.
I get it. But what’s your long-term vision with it? That’s the mission, right? So the mission is I make a billion here’s
what I do to give back. But what is the vision of the business?
How big do you want to build it?
It’s like I want to have my own farms. I want to have my own machinery.
Are you saying it right now because it’s the right thing to say or do you really believe
that? Because you’re stuttering. Is it fully clear? You’re not bullshitting me? Like you’re really saying that? Is that a vision, though?
Okay. Alright. So, what other markets are close to yours
that you can go into right now. And you can test.
First of all is my main country, than I guess, China.
Okay. So start with testing. Then go fully big. You know, our company, PHP Agency, we started
off with California. Everybody started saying, Hey, Pat, we have
to go into New York. We just got approved in New York four months
Oh my gosh, we’ve got to go into Boston, Massachusetts. We just got approved in Boston, three months
ago. Okay. So initially when you’re building a business,
you’re going to think locally and then you build globally. Right? Sometimes you grow too fast globally, you
Uber went into China and it didn’t work out and they lost three and a half billion. Okay. So you’ve got to know if it makes sense, what
markets have a need for the product you’re marketing, and then you can test it. Start small and grow big. Small, grow big. But don’t go into too many markets too fast.
Why did Hitler not lead the entire world? Do you know why? Who knows why? He’d spread himself too thin. You realize if he doesn’t go to Russia and
doesn’t lose the people in Siberia? It’s one country over there. And his people are tired. So you’ve got to make sure you’ve. . .
Remember, the world of entrepreneur is sales
and what? That’s the strategy part. You’re going to get judged on the strategies
you create. So I don’t have enough information to tell
you exactly what to do. Figure out what market is comparable to yours
and go test out the market.
For memory, and memory is apparently very important for entrepreneurs so what would
you recommend for ways to develop one’s memory and what’s the best way to do that?
So I did a video on how to retain information on Valuetainment. Maybe write it down and go watch it. I go very, very detailed into it. It’s like 30 minutes. Look, it’s a game. It’s truly a game.
For instance, I’ll give you an idea. You know what’s hurt a lot of people’s memory? Especially the younger generation? Here’s what hurts the memory?
I grew up in a time when I had to remember phone numbers. You don’t have to remember phone numbers. So today you don’t have to answer anything. Everything is what? Google.
Watch this. What was the name of that movie? This is what we do today? [Google search on phone]. Don’t do that. Try to find it in your brain. Because you know it. It’s in here. Play the game. What was the name? And then your brain goes . . . oh, Gladiator! That’s what the brain does. So let it go. Don’t just go straight to Google, because
Google’s brain’s getting stronger, not yours. So play the game.