What Are You Building?
From the street, you can't appreciate the foundation being dug behind the fence.
There is no such thing as an overnight success. Long before you knew their songs, wore their jerseys, or used their company's products, they were putting in the work...digging the foundation.
Anton Anderson: Hey, what's up everyone, Anton Anderson here with Elite Resource Team. I wanted to shoot a quick video today, talk to you about laying the foundation. I'm going to show you this project that they've been working on next to us here. You can probably see these two cranes, as well as this high-rise that's starting to go up right here. It's four or five stories up now. The reason I wanted to show you it is because they've been working on that thing for two years. For two years, and you can tell, it's a beautiful location, ultimately it's going to be a gorgeous high-rise.
This weekend my wife and I, we were out walking, and we live just around the corner from here. We ran into a neighbor, ironically, and the neighbor said: oh, looks like they're finally starting to do some work at the Pacific Gateway property. I kind of laughed, and I told my wife afterwards that she has no idea what's been going on there for the last two years.
The problem is her view is only from the street level, so when she walks by, she sees on the street those ... They put those colorful posters on top of the fences, or in front of the fences, so when you're walking by you just see this beautiful vision of what this high-rise is ultimately going to look like. She's walking her dog by every day, and she sees this beautiful photo of what the high-rise is going to look like.
There's no high-rise, so for two years they must not be doing any work. Oh, look, they finally are starting to do some work because they got to the fourth or fifth floor. The problem is, with that perspective, you have no idea how much work has been getting done for the last two years digging that hole. Guess where the parking lot is? Underground. Guess how strong that foundation has to be in order to build a tower 41-stories high? They've got a parking garage, then they've got the foundation for this high-rise, and by the way, we're in San Diego, we have some earthquakes once in a while, so that thing has to be twice as safe.
The irony is that a lot of people, just like my neighbor, look at success in the same way. It really doesn't matter if you're talking about a musician or an athlete or a successful business, long before we heard their songs on the radio, long before anybody was wearing their jerseys at the sports bar or cheering their names, long before the company was a household name, people were doing work, laying the foundation, ultimately doing the hard work.
When nobody knows the time they're putting in, they're not getting paid for it, they're pursuing a vision. That's exactly what was going on with this high-rise, is they're digging deep to build that foundation, to build something off of. I want to encourage people in our industry because I feel like unfortunately financial advisors and insurance agents, we've kind of been wrapped up by insurance carriers, and RIAs and BDs, to really only think about the gross revenue, top-line revenue: do things as fast as you can to create revenue.
They don't really think about it from the perspective of: what am I doing today that's actually building something of value in 24 months from now, 48 months from now? Where is this thing going? Am I just buying short-term leads, closing leads, doing dinner seminars, doing follow-up meetings with those people who attended the dinner seminars, and then I'm going to do the same dinner seminar next week or next month? All of that is very short-term thinking.
It might be able to build a one-story or two-story house, but there's no way you're going to build a gorgeous 41 foot high-rise, in the bay, in San Diego, off that type of activity. You have to be doing something that's actually creating skills, creating the right mindset, creating the right type of business model that you're going to build something off of. The first year of our company, we just celebrated our five year anniversary, and we did the first quarter of 2019 just over 1.1 million in revenue, which sounds pretty strong, for this industry it's pretty strong.
The first year, entire year, we started our company, we didn't make any money. In fact, we lost over 52 thousand dollars that year: 52 thousand dollars we lost. The point was we were okay with that because we had this vision of ultimately what we wanted to build, and we're not there by any means yet. We're just on maybe the 10th story of what we want to be the 41 foot high-rise here, but it's gone a long way in five years from losing 52 grand to making 1.1 in a quarter, but the point is during that time period, man, we were used to going on the trips and having the carriers pay for things, and managing over 100 million of AUM.
We were talking to people in the industry and they're like: what are you doing? Why did you stop what you were doing? The reason was because we knew there was a better way to actually properly build a business. Now, something that can produce like a machine, has value, has a team, has a vision, has a culture, something that can ultimately be sold one day. Everybody has to go through that time period, so I would just encourage you to ask yourself: what are you building? What are you working on today that is building something that's not just going to feed you tomorrow, but that's going to be producing in 12 months, in 24 months, in 36 months?
If a 100% of your day is short-term activities that are only like a hunter, going to produce some food for you and your family for the next week, or couple weeks, then we've got to shift our mindset and really ask ourselves: how do we create something that's going to be more of a farming mentality? We put in more work, more effort upfront, perhaps, but then it lasts for years to come, so ultimately, when we show our friends, when we show family what we've built, we can very proud of that 41 foot high-rise because we know what it took to get there. That's it for today, have a great week, everyone.