Becoming Entrefied with Patrick Hughes

ENT 55: $1 Trillion Business Models You Can Create

February 04, 2020 Episode 55
Becoming Entrefied with Patrick Hughes
ENT 55: $1 Trillion Business Models You Can Create
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Becoming Entrefied with Patrick Hughes
ENT 55: $1 Trillion Business Models You Can Create
Feb 04, 2020 Episode 55
Patrick Hughes

I always start at 1. Then 10, then 100. That’s how I eat elephants.

Show Notes Transcript

I always start at 1. Then 10, then 100. That’s how I eat elephants.

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Are you ready to be entre Vied? Let's break free of the life we're told to live, create freedom and well, by adding value to others live, challenge traditions, challenge authority and get onto ified. Hey, guys, Welcome to the show. Thanks for listening. Bled the heavy here today. This is actually going out to 23 different countries. Well, you know, I don't even know. I could even name off 23 countries off top my head. Can you name 23 countries off the Dobby ahead? Probably not. I mean, if you can. That's impressive, because there's apparently a lot of countries, but I digress. So today, what we're gonna be talking about is we're gonna learn about how trade our companies have came about, what they're doing and how you can create one yourself. Now, I'm not going to give you the full detail hiding created because that is a lot of steps. A lot of steps on how those guys got there, but it's monkey. See, monkey, do your modeling, but you're improving. Why you do it? So we're gonna be talking about that. What these trillion dollar companies are like I said, subscribe to the show. We got people from 23 different countries. Come on. This is awesome. All the subscribers out there I have now followers, whatever you call it. Thanks for following. Thanks for following along. Thanks for being here. You guys really make this show great. And if you're not a follower, hit that follow button. All right, love the heavy along. So what does Aunt if I do? Well, Aunt ified helps you to get that next step in your business and your life, whether your brain knew or a veteran to business. We're here for you today. I'm kind of talking Maurin depth because clearly you can't just go from brand new two trillion. So this is this is four people that our brain even want to know how to get started or if you're already in the game just to give you an even clearer picture where you need to go. So just throwing that out there up. So an example An example to the next step is making a dollar with your business, getting you closer to that $1 trillion. You know, I always started one. I always started one. Anything I do like, let's say Let's say I askyou together a 1,000,000 postcards. All right, Our sticky notes. A 1,000,000 sticky notes. So how would you do that? Well, first you would need to find one sticky note just to prove that sticky notes air rial. You can get him, you confined him, it's achievable. And then when you get one sticky note, next thing you know you're gonna find 10 sticky notes and then you're gonna find 100 sticky notes, then you're gonna find 1000 and 100,000. You get the point. But the point is, is you need to break down your goals to be smaller, an achievable that way you get mo mentum going and you build a sno ball or, ah, you know, basically, you just build a big, massive ball of momentum that keeps you rolling and you're getting those small winds and small victories that ultimately and let you win the war. So I like I said, I always start with one. You know what? Well, when I started this podcast, I said, I'm gonna get one listener. If I can get one listener, I'll keep going. And do you know how possible that is? It's really possible that my end go. Maybe to get a trillion listeners. Now, that's impossible, because they're on the train, people on the planet. But, you know, maybe I could go to space, get space six, meet Eli. Must get him to see me on a rocket, you know? Hey, man, broadcast my podcasts out to the universe. All may. We got a trillion listeners from different planets. All Yeah, I don't even know that would show up on my stats, spades, But, you know, it's possible. No, I'm just kidding. But my point is is if you were going for 100 million people you wanted to impact, you would start it one. All right. I'm not gonna keep beating that in the ground here, but you just started one. So what's gonna dig into the weeds here? And I was looking at the trillion dollar companies off all the stock market fairly closely. And, you know, one goofy company that came out with, like, an almost like 1.5 trillion evaluation that I p O did that. That's actually crazy. Um, fresh out the gate, they went in, like 1.5. That's Saudi Aramco as the Saudi Ah, Oak Oil company. So that that one was kind of that was not typical. You don't? I mean, what kind of companies just go from privately owned 1.5 trillion to a corporation R I p O off you know, 1.5 train does. That's very big anomaly. So I'm not going to cover them because they just don't count. They're just no count. Um, I'm gonna talk about the other companies that are at a trillion dollars or flirting with it. There's two here that are flirting with it as of today's recording, which is Ah, February. What? It's they the Tuesday hold on one. So you may see that get a calendar is kind of sad. I don't even know what day it is. Lose track all the time. Geez, it's It's February the fourth. So yes, Oh, February 4th. As of now, these these two companies air flirting with it, they're not there. So the four cos I'm talking about apple, Amazon, Google, Microsoft, and it's funny because they're all tech companies. So you're telling me the largest companies the world were just recently created over the past 10 2030 years, while Apple's a little older than that. But yes, that's very true. And it's crazy how that is a possibility. How they went from, you know, such young cos I think Amazon came about in the nineties 91 or something like that and exploded $2 trillion in like 20 years. That's just unheard of. So let's let's start it off. And I'm gonna point to you guys a very specific trend and you'll probably pick up on it on what all these guys have in common. Besides that, they're just software companies. So there's a big trend that really sticks out to me. And it's just those red flags and says, All right, if you wanna get that trillion dollar company, this is what you gotta do. I'm not saying this is all you gotta do. You don't just do one thing and that's it. It's just your next step. So let's look in Microsoft. They make their money from the cloud from personal computing and from business stuff, which is like Office suite. All that so Basically, Microsoft built its success on the licensing of software such as Windows in their office, 365 products, their software their office software that really, I mean, how many computers and businesses run windows? Almost every computer in any business you will ever see runs windows. It's crazy. They have the entire, um, entire America pretty much under their belt with their software of their operating system software. It's It's insane. All right, so that's one. So Apple, what do they do? Whether business miles based on innovation, you know, consumer centric devices. And guess what? They have I less software. They have their own software that the watch runs on that. The phone runs on that there. Max run on, and a lot of people have iPhones nowadays. They're very common to see iPhones. I mean, how many You guys right now listening. Having iPhone I'm and guarantee you it's probably 60% of you, maybe 50 to 60%. That's a really high number. And you know, how did they do that? Well, because the Apple software is actually way simpler and easier to navigate and use as opposed to Windows. It's a little more advanced, so just a simpler software, all right, And then you have Amazon. They do direct sales. They have a platform of marketplace for other sailors. And guess what they have last Amazon prime Amazon Kindle subscription. Amos on audio books Software. What Those software that they use to make I mean billions of dollars off off of everybody. I mean, how many people do you know have Amazon prime? I guarantee you like freakin 80% of people have a mazon prime in America. It's stupid. It's so stupid, Everybody. I talked to his like Yo, bro. Yeah, I got him some pride, you know. Oh, you don't have Amazon prime. I mean, it's kind of like the internet Now. I remember 10 20 years ago, not everybody had the Internet. Not everybody. You know, you're going to somebody's house and they have the Internet. I remember when it first came out before while dial up, you'd be like, Oh, do you have internet here? Oh, man, so cool. And then nowadays, if you don't have Internet now, you're a loser. So I mean that I mean, it's so it's so funny how those things change. So Amazon prime 10 years ago. People probably don't know that waas Well, I don't know when Prime took off, but let's say 20 years ago to be safe. It didn't even exist. And then, boom, they're software popped up. Everybody has it. Almost everybody has prime for that one day delivery. It's crazy. Okay, And and now the final company talk about Google. Google does advertising and guess what they used to do their advertising. Google AdWords, google dot com I mean, what what is that to software, if you haven't, if you haven't figured it out yet, guys, the four of the I don't know. It's like it's like five or six companies that trillion dollars Right now. Four of those 5 to 6 hurt software companies built around. They have a huge point of software or an Internet, an Internet presence coupled with software. That's a very now I'm not saying that's the entire picture, but I'm saying that is a massive piece of the puzzle. You have IOS, we have windows. You have, um, Amazon prime. You have Ah, Google AdWords, Google ads, all those things, their software and all four of those things combined. I mean, that's definitely trillion dollar market right there, and that's what I'm pointing towards today, guys. Clearly, there's a trend in each of these companies and it's software. Software makes things easier, more efficient. It last for years. It's evergreen. How many companies have you went into That that is still using the same crappy software for the past 30 years are mere one time back. When I worked in tech, there was a bank. They used this crappy product. It was called, like bank pack or something. Oh, my God, it was so crappy of so bad. And it looks so outdated, like 2030 years old. And I remember I would, uh, I would go to troubleshoot it and work on. And we're just so complicated, outdated, so bad. But they were. They had sold this software to multiple companies, and that's and that's what's crazy. Is it? The software was absolutely garbage, but the companies, we're used to it. They liked it and they still had support. I mean, not only did you have to pay for that initial software license, but he had to pay for the thesis. A port to that comes with it, and then you had to pay for any upgrades. You get to your software. You know any, um, any, any extra stuff? Oh, and then amount of users that you just offer. You gotta pay for that. And so people are just taking these software models, business models and just going hog wild with it, man. I mean, it's stupid because if I sell this software that I created or that somebody else made for me to a bank and they integrate implement that software in multiple banks across the state of Tennessee. I live in Tennessee from Nashville and they never admit that all across Nashville and everybody is using it all the banks and let's say, sell for $100 just to make it simple. Simple math. 100 bucks person. Well, what What What is your overhead on? That software? I mean, you're probably playing paying 10% of stored on a server somewhere. I don't know. 10% keep people hired the fix it. I mean, you really have no overhead because, like, let's say, in my bed Benz, I was buying a bed for 300 I was selling it for 600 so that's 50% profit margin. Well, then I had to pay $200 in shipping or 102 100. So really, you're making 15 to 20% profit margin. That's pretty terrible, but that's very common with, um, hardware. Like if I'm selling hardware, I think every Apple iPhone that sells for $1000 they make like a $200 profit, and that's 20%. And that's normal. That's good. But with software, you're looking at 60 70% profit margins because once somebody buys Microsoft Windows, that's it. And what does it take for you to make Windows? You slap it on a CD, and then you mail it off. You don't even have these CD Good, just email in my key. That's almost 100% profit margin emailing a key to somebody to activate their Windows products. Putting a CD in Walmart that they charge you 100 $20 from Windows. What is that? $5 not $5 with a dollar. To get a CD and put something on a CD and then put it in a case that's another dollar like $2. So my point is, is the profit margins on software is just astronomical. You have hardly any overhead costs at all, so you can get away with cheaper prices because, like, let's say I charge you 50 bucks and my overheads. $10. That's just stupid. You make a $40 off the sale. Now that is. You know, we're saying you have to have a really good product. You have never really get software so that initial investment has be pretty large. But running a software company, it's how you get to a trillion dollars. It's one of the it's honestly, in my opinion, the greatest business model out there, and I mean there. And it is a little harder to get into, which is good, because there's less competition because you have to hire people. You have to have a vision. You have to have a direction that your software businesses going. You have to have some kind of software in mind that you want to create. You have to do marketing test. I mean, it's not simple. You don't just throw up a website throw from software that does this X Y Z and that's it. No, you got to create something that's a good product and get it out there in people's hands. So the ex, except for you guys, is to identify software that you use every day is it free. How? How does it make money? What? What way does there's a software you using right now? Make money if you're holding an apple? IPhone Listening to this on Spotify How to Spot If I make money ads more than likely subscriptions. What is Spotify to software? How many companies air you giving money to? That is simply software like Netflix. Who? Lou Disney. Plus, they're all software companies. Almost every company that's making bank is a software company right now. So that's how you do it if you want. And not only that, but your potential to help people is massive. I'm I'm recording a podcast right now, and this episode is going out to 23 different countries that is massive reach to people because of what software Amusing, you know, audacity. Bus route uploaded into, and it's ever going green content. It stays there forever. I'm just using software, recording it off of my Windows machine. That's crazy, right? It's crazy. Everything is honestly software and today swirled. It's kind of weird toe to admit that, but the first step is awareness that, hey, software is the money maker. It is the the way to create massive value for lots of people out there. Millions and billions of people you could reach with your software. And that's what's more important is helping people. Because that's your first step. You know how many how many people are helped by Spotify. Do you love Spotify? Yeah, it helps you. Music helps you. Stuff like that helps you software that helps you. Then you get your profits. So the first step is awareness and the next step is market research. If you want to hit the jackpot, software is your best bet, and you could make it free. You could make it paid whatever, But that is your best bet. If you're new to business, that's your best bet. Hey, look, if you want to get started, if you want to start making a business, a software company, whatever, I can totally help you out. Just text me 6154318389 I'll talk to you. We'll get this party started. We'll get you. Rohan will get you well along the way to that trillion dollars. But first we got to get that first dollar for you. We've got to get that first listener that first, um, software user. All right, so text me 6154318389 I love the work with you. Have a great day, guys, and let's add a 24th country. Let's do it. Have a great day. Are you feeling entre fied yet? We hope so. For more information and news updates, check us out at www dot entre five dot com for contact Patrick directly on facebook dot com slash patrick Hughes 9000
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