Episode 165: Equipment Leasing Fund! How to become a bank and creating a win-win?
In today’s show, Pancham interviews Josh McCallen – a business turnaround expert, resort rehab specialist, owner of Renault Winery Resort and Golf and investment firms Accountable Equity and VIVÂMEE Hospitality.
In every business that you think of, you would always need some sort of equipment to be able to operate the business. What if we tell you that instead of sourcing and leasing your equipment from external companies, you could be the bank itself by creating a fund and be able to create a win-win situation for you and your investors? Today, Josh is back on the show to unpack all this knowledge!
In this episode, join us as he discusses the concept of equipment leasing funds and how he became a bank in his resort business! He will also share how he was able to turn around his hospitalities and was able to strive during the pandemic, how the Efficient Income Funds (EiFs) benefits both parties, and why maximizing your riches is simply like a golden carousel!
Listen and enjoy the show!
Tune in to this show and enjoy!
- 2:13 – Pancham welcomes back Josh to the show
- 4:03 – His background and how he has been during the past year
- 6:27 – How their hospitalities survived through the pandemic
- 12:25 – Overview and how equipment leasing fund works (and how it came about!)
- 22:54 – How EiFs helps provide satisfactory yields between him and investors
- 25:51 – On the types of equipment they’re leasing and where they focus their funds on
- 27:23 – Their payment model and the price breakdown on the investor’s yield
3 Key Points:
- The COVID-19 pandemic had hospitalities kept under wraps as some would shut down but he was able to turn it around through wedding contracts.
- Curating the EiFs has helped provide a win-win situation as they can get profit from equipment leasing and investors could get their capital back along with other benefits.
- Rather than building wealth, the EiFs intend to give a steady cycle of payment and be able to preserve your wealth.
Get in Touch:
- Accountable Equity – https://accountableequity.com/
- Renault Winery Resort and Golf – https://www.renaultwinery.com/
- Listen to the previous The Gold Collar Investor’s episode with Josh McCallen at https://thegoldcollarinvestor.com/show60
- The Gold Collar Investor Club – https://thegoldcollarinvestor.com/club/
- Pancham Gupta Email – firstname.lastname@example.org
- Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! By Robert T. Kiyosaki – https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680194
Welcome to The Gold Collar Investor Podcast with your host, Pancham Gupta. This podcast is dedicated to helping the high paid professionals to break out of the Wall Street investments and create multiple income streams. Here’s your host, Pancham Gupta.
Hi, this is Tom Burns, author of Why Doctors Don’t Get Rich. You’re listening to The Gold Collar Investor Podcast with Pancham Gupta.
Pancham Gupta Welcome to The Gold Collar Investor Podcast. This is your host, Pancham. Really appreciate you for tuning in today. When I was a W2 earner, I always used to think of owning a business so that I could create a second stream of income and also reduce my tax liability at the same time. And I was on this train every single day when I used to go to work and coming back from work and I used to see so many franchises. I used to go out to Subway to get lunch and always used to think about, you know, owning franchises like Subway or you know, Dunkin Donuts and things like that. So, owning a franchise used to fascinate me but I did not know anything about owning a franchise. If you have been thinking of owning a franchise, then this show is actually for you. You will find out whatever you need to know how to get started with owning a franchise. Giuseppe, my guest today is a franchise veteran coach, author, speaker, and consultant who simplifies the process of franchising and excels at guiding his candidates to the business model that best suits their desired lifestyle. His greatest joy is helping people realize the American dream and sharing the freedom that comes from franchising. Giuseppe is the author of Franchise Freedom, a new manifesto for your financial and time freedom as well as the host of his podcast, Franchise freedom. Franchising is a powerful vehicle for success, but the franchising world can be overwhelming, to say the least. Giuseppe takes the guesswork out of the process listens and teaches along the way and finds the very best fit for his candidates. Hi, Giuseppe, welcome to the show.
Giuseppe Pancham, thanks for having me looking forward to it.
Pancham Gupta Absolutely. It’s a pleasure to have you on the show. I’m sure you’re going to add a lot of value to people who are thinking of diversifying their income streams. So, before we get started, are you ready to fire up my listener break on Wall Street investments?
Giuseppe Heck, yeah. I’ve been there done that.
Pancham Gupta Yeah, I want to get into that. So, tell our listeners about your background and you know how you actually got into this franchising business?
Giuseppe I’m glad, yeah. So basically, I was a corporate executive working in New York City doing really well work for some of the larger investment banks, and just did not like it, I felt like I was a number. I felt like I just didn’t have a future in the business. So, I went from job to job, or I should say, interviewing from job to job company to company to find out employment just wasn’t a good fit for me, me personally, and for my family, so decided to work with a business coach, fast forward a couple months business coach told me, I like systems in place. And she noticed that and when we own the family restaurant that that really excited me just the ownership that being a business owner. And long story short, she said a franchising may be the answer to what you’re looking for. It’s entrepreneurship, it’s, you know, business ownership, and the systems are in place for you. So, work with a franchise coach and consultant just like myself over 15 years ago, or actually 17 years ago, I believe that’s been, and we found a few franchises and purchased my first franchise and 2007. And it’s been great. I’ve been able to become a soccer coach and go to my daughter’s Girl Scout events and things like that. And it’s really created the life that I envision years and years ago.
Pancham Gupta Yeah, that’s a great story there. So, you really started in 2007, and we are in 2021. How has that progression been? Have you added a lot of franchises after that and what kind of different kinds of the same genre you stayed with that?
Giuseppe Yeah, I invested in my first franchise beginning of 2007. And my second the end of that year, it was a really great year. The business did well was it was in the same space building services. And company did well actually recently sold those businesses back last year and had a nice exit had an investor approach us and I was able to double down my efforts to be a franchise coach and consultant. But one of the cool parts of what I do for a living is you can see what franchises are doing. Especially we’ve had the biggest test and that’s through COVID. You know which franchise is really in businesses really kind of not did well per se, but which franchisor is really kind of took a step back and said, Okay, this is how we’re going to pivot. This is how we’re going to really help our franchisees. So, on a monthly basis, we have franchise calls with some of the brands we work with, and always kind of have my finger on the pulse looking for the next investment, so looking to potentially make an investment in another franchise towards mid to end of 2022.
Pancham Gupta Great. So, you have at this point, I don’t know if you can share, like how many franchises you have owned since 2007. And how many different genres have you participated in?
Giuseppe It’s been with the same, it’s always been in building services as a master franchisee, or a franchisor, you can use both terms. So, it’s been the same industry master franchising a little bit different. It’s essentially where you are a sub franchisor where you’re purchasing a region, it may be an entire state, international, maybe an entire country from the franchise company. And instead of me being the owner of Dunkin Donuts, as an example, I may own the state of New Jersey and find the Dunkin Donuts franchisee. So essentially, I’m a sub franchisor and able to find the franchisees but not only that, once we find them, we actually get to coach them and help them open and run their businesses. So, so I’ve owned that two of those master franchises that we that we sold over a year ago in the same industry and looking to invest in others, hopefully in the next six to 12 months.
Pancham Gupta Great. So let me switch gears. Anyone listening, you know, what are your top reasons to buy a franchise?
Giuseppe I’m not a salesman for franchises, I’m a big believer in them. But if you rewind it back a little bit, a franchise is a business, right? I don’t consider franchising an industry, it’s just a proven business model. So, in the business of restaurants, you have mom and pops, and then you have franchises, right one is not better than the other, it’s really kind of what you’re looking for. So, there’s the obvious benefits of a franchise. So, if you’re looking for the business to be built for you, for the systems to be put in place for you the economies of scale, that they have much higher or greater buying power than other companies, smaller companies, a franchise may be a good fit. So major advantages there. But I love for me why I made that decision was I didn’t want to create the business from the ground up, I wanted the infrastructure to put in there, the CRM set up the QuickBooks system, or the accounting system, I should say, all set up so that I can follow a simple policies and procedures manual. I had all my vendors, and everything set up for me. So, it was a way to give you that unfair advantage, a way to kind of expedite growth in the process by me going in, going through training, and getting the business up and running. So, lots of benefits for those people that are looking for the system in place for others that don’t want to follow the system that want to create it, I would advise not getting into a franchise, as you know, maybe you’re looking for something that you can essentially create from scratch. But I will say sometimes a franchise is a great springboard or a great steppingstone into business ownership, especially for a corporate executive that’s never owned the business. I talked to countless people over the past 20 years that have you been sitting on business plans and not doing anything with it. So sometimes getting into a franchise is what motivates you for what’s next. And maybe the first business is a franchise spraying for mosquitoes. And maybe your second business is that startup. So, I encourage everyone to really take a look at the benefits and see if that matches what you’re looking to accomplish.
Pancham Gupta Make sense? So, let’s say the person who’s listening, right, he has a great career in Wall Street or maybe in a tech company, and you know, wants to create a second stream of income through a franchise. But what advice would you have for him or her? I think you answered the second part of my question, which is why would they not do their own business versus own a franchise? And the answer to that is, it’s like dating, you have to first see you can even do even like doing business because once you’re doing your own business, you have to take it off like you mentioned all the vendors and all the systems and
Giuseppe A lot of work.
Pancham Gupta Yeah, all of those things have to be done from scratch and it could be a lot for someone starting out. So, franchisee is like, you know, giving you a glimpse into the world of business by giving you all the systems in place. So, but what advice would you give to that person who is thinking about it, and is on the fence, what would you say?
Giuseppe Yeah, the advice I would give it’s pretty people are shocked by this advice, but I tell everyone get off the internet, you know, stop researching every single franchise company out there, I think you’re doing yourself a disservice, I did the same thing. You’re just causing, in my opinion, confusion. I think everyone, and I noticed this as a trend, including myself, and I’m guilty of this as well. I work on Wall Street. I worked in Wall Street for many years and had a great career. But why are you even looking at a franchise or business, you can easily invest, I’m an investor as well, I can invest in the S&P 500, all day long, I can go to my financial advisor and just or throw extra money into my 401k. You know, there’s various vehicles to get you to where you want to be. So, there’s the obvious reasons of owning a business, the tax advantages, the growth, the exit, just sold my businesses last year. But you know, what is your why and what is your vision? And the reason I bring up vision is where do you want to be in three, five, even 10 years? Because many of the people on Wall Street and we would just help someone recently make that switch was he was looking at it as an investment. And then he turned around and said, you know what? I don’t even like my job. Can I start full time? Or can I eventually go full time into the business? So, think of your vision, because that also affects the type of business that you’re going to invest in. So, what’s your vision? And what’s your why for doing it, if your why is simply money, and you’re just looking to diversify, you have some homework to do, you need to really figure out your time commitment. A business is not absentee, a business is going to be at most semi absentee, the successful business where you have some type of involvement, maybe it’s not during the day, but it’s on the nights and weekends, following up with your management team. So, figure out what the long term kind of goal is the vision, figure out what you’re looking to accomplish. So, to give some context to everyone listening in my why was not money. That’s a not a great why, in my opinion, I think a why has to be a little stronger than that. So financial freedom. Yes, we like that. But mine was more time, you know, I wanted to me had a newborn on the way I wanted to go to all the soccer games and to date,, I don’t think I’ve ever missed a soccer game. I became a soccer coach. That was my why my why was to be involved with my family. But I would consider the why the vision why you’re looking to do that there are many, there’s 4000, franchise companies out there. So really, once you kind of get granular and figure out why you’re doing this, there are certain franchises that may be a good fit. But I encourage you to start with a vision and why before doing anything else and being 100% crystal clear. And for those that need help, we can assist in that area as well. ,
Pancham Gupta Great advice there. So, let’s dive into now, after listening to that, someone is like really excited. Now let’s do this, right. So, what is what are the actual steps of owning a franchise? Let’s say they want to dive in, and it’s a completely blank slate, right? They totally have no idea what to do. So, what are the steps?
Giuseppe Yeah. So, I’m gonna describe it as our four step process. So, whether you use someone like me, or if you do it on your own, it’s similar, the advice is similar, except you’re not having that coach kind of guide you through the process. So, number one is the visioning goal, as I mentioned, and we cover that on an intro call. So, I’ll kind of do dual purpose here. So, you could do that on your own get clear. So not look at the franchise, work in reverse, reverse engineer it and work with that blank slate, which is actually part two of the four parts. So, the four phases, part two is a blank slate, meaning, forget about what you know, about certain industries or certain franchise companies, but look at the business and list that all the characteristics of that business of your ideal business, not what you think can make more money or what’s hot, throw that aside? What does your ideal business look like? Is it a physical location? Are you putting that key in the lock unlocking that door every day and opening up a whatever type of business or do you prefer a home based business where maybe you’re working from home? What’s your employee count? What do they look like? What I mean by that is not what they physically look like, but are they 1099 or are they W2 employees? Big difference there. Are they meaning 1099, subcontractors? Are they part time, full time? Is there a lot of turnover? Or are there few highly skilled employees involved in your ideal business and the list goes on including even where you want to be located. I mean, you may be in New Jersey like I am or are in New York, but you want to relocate to California. Great, jot that down as well. So that’s kind of the second stage and then figuring out not just your strengths, weaknesses are great. And then figuring out kind of what you want to be doing, what’s your ideal role in the business right and I mean, just because it has to do with mosquito spraying doesn’t mean the owners is spraying for mosquitoes, the owners networking with the Chamber of Commerce and all the other events going on in town. So, think of what your skill set is and what your ideal day looks like. Step three, is what we do is we summarize this in a model or blueprint, you could do this on your own, and write down on one piece of paper, what that summary, clean it up what the ideal business looks like. And then step four, which is where we bring a lot of value is we find two or three franchise companies that match that model, you could do that on your own, it’s gonna be a little bit more difficult, since we’re speaking with the companies, but you’re looking for companies that match your model versus the old way of doing it, which is, let me look at the franchise, and then try to make it fit my model, right. So, the example I give is, I want to work five days a week, nine to five in the business. So, I’m around for my kids activities, schools, sports, things like that. But I’m buying a fast food franchise, that’s going to require me to be open seven days a week. So, I’m going to compromise a little bit, I’m going to compromise a little bit more, I’d rather work from home. But this is a physical location. So, by the time you compromise, compromise, you have that ideal business is the complete opposite of what you were looking at. So, four basic steps, I encourage everyone to kind of search within at the very end, you look at what franchise companies because when you look at the also, when you look at the franchise, not every system is built the same. If you have two residential cleaning businesses, one is built for semi absentee owner for someone on someone you know, one of the corporate executives of Wall Street, you know someone on Wall Street that is only looking to do this a couple hours a week, one franchise may allow semi absentee, it’s built for that, whereas the other is built for someone to be involved full time. So, once you get clear on that, that’s how you narrow down your search to two or three. And last thing, you do your research, the research is great. I assist with the process through my experiences. But if you’re doing on your own one of my top pieces of advice, talk to multiple franchisees, not just in your area. If you’re in New Jersey, call someone in California, Florida, some local franchisees, mix it up, people that are going to be running it semi absentee as well as you want to get a picture of what that business will look like with the same type of ownership. But don’t just take the franchisors word for it, talk to existing franchisees
Pancham Gupta Great. The four, five step process that you have is very good to narrow it down. So, my next question might be very general question and might vary from industry to industry and I believe everyone gets that, but at a very high level, like what is the average cost and average cost of owning a franchisee or starting a franchisee. And if you have some examples to give out, that’d be great.
Giuseppe It’s literally all over the map. When you look at the universe of franchises, you have kind of service based businesses and retail businesses. So just because it varies and depending on your markets and how you’re operating the business. All in when someone gives you an investment, you don’t just look at the franchise fee. A good franchisor will give you an item seven in their agreement, which is an investment range, six months of marketing expense, six months of rent technology fees and all that. So, on something service based where you’re not having to have a physical location where your customer comes to you or it’s maybe a small, you maybe need a small office, nothing fancy, you’re gonna look to spend with the six months expense and everything at least $100,000 all in for the business taking in consideration franchise fee traveling training and things like that. These are just general numbers from experience. Once you get into retail and this is retail and not standalone, but in a shopping center, you’re going to probably double so probably around that 200,000 mark, I keep those numbers general because there’s a lot of it depends and things like that but all and you may see a franchises online and they say the fees 25,000 but take a step back that 25,000 is a onetime franchise fee but you have to factor in all the other expenses, which the franchise agreement will outline and itemize those investments for you.
Pancham Gupta Got it. So, let’s say someone you know, already listens to this, and wants to know what the hottest franchise brands of 2021 were. Like do you have those? I know just name a couple. It’s good.
Giuseppe Yeah, we don’t get into we don’t sell franchises. We really try to, and I will answer that. So basically, at the end of the day, my response to everyone and I don’t say this to be difficult, but it truly I truly believe this. I don’t believe in facts are trends, right? I’m a long term investor in the stock market and I do the same with my holdings in franchising. So, you want something that not that your friend did well in last year or the last couple of years or your family member, that to me is irrelevant, you need to find something that matches a specific what you’re looking for, right? So, if your friend owns a subway or restaurant chain, they’re doing well, that does not mean you’re going to do well, it’s going to mean that hopefully it fits into what you’re looking for in the business. So, I think to make it simpler, you look for what’s a good match. As far as what we’ve seen, as far as trends go. You know, we’ve seen huge demand for home services. So, these are brands that are in residential cleaning, mosquito spraying because people are using their backyards a lot more, this is during COVID. There are even franchises that will come out and create a home office for you believe it or not. So, there’s been a lot of trends and that trend that they feel is going to, it’s always done well, as far as an industry, residential services, we kind of put those altogether, and then there’s painting, there’s roofing, there’s landscaping, and spraying your lawn fertilization, so, but that’s done well, because more and more people I believe are going to be working from home. So, with COVID, maybe less people traveling. So, taking back the home, you start to notice things that are wrong, as you’re as you’re working from home every day. I know, I know, as I’m talking to you, I’m looking at some work that I probably need in my office. So those are areas that I’ve done well, other areas, I’ll mention just a few others are for small business, specifically small business coaching. There’s even franchises around reducing expenses for small businesses where small businesses in trouble, you know, maybe they didn’t get their PPP loan, or maybe they did, but they didn’t pivot, they tried to continue to do business one way where they should have maybe pivoted and utilize technologies such as Zoom and things like that. So small business coaching franchises that work with small businesses to reduce expenses that have done well. We even have some new brands in you know, health and fitness, but primarily more health and wellness, I should say, that’s around mental health that is actually done well, given the crazy times we’re in and you know, this definitely took a toll on many people. It’s been a rough couple years. So, lots of businesses have done well. So, to go back to your original question, the great part about the time ran for anyone looking to buy a franchise is that I had the million dollar question. And the million dollar question was to ask every franchisee knowing what you know, now would you do it all over again, very simple, that that outlines and saves you a lot of due diligence and work if every other person is saying I would not do this franchise. But now for the first time or maybe yeah, I think it’s the first time I’m going to mention the $2 million question for everyone listening in. So here here’s my 2+1 $3 million worth of advice is, in all honesty, as the franchisor and the franchisee, what did the franchise company do to help me get through COVID? What did they step up? We had a couple franchises that said, we will not let any franchise go out of business, we will do everything it takes they broke up the entire corporate office to work with each and every single franchisee they even went back to negotiate with their landlords and say, you know what, we have thousands of locations or whatever the number is across the country, we’re going to work with every franchisee to make sure that successful work with the landlords work with the franchisees and on top of that we’re going to offer this was in the health and fitness space, we’re going to offer virtual training to every single member, you know, 10 times more offering than they would normally get just to, you know, make them happy, get them through this difficult time and to maintain their membership. So, I think asking about COVID is huge. And you’ll see the franchises that stepped up and then the franchise companies that just kind of sat on their hands and did nothing.
Pancham Gupta Well, that’s great. So, all right. My last question, actually, before we move on to the second part of the show some great advice already. And this is a very subjective question and you’ve answered a lot of things on all the steps that you have to take to get you know, hone into what kind of franchisee you want to own. And a lot of people who are listening, they do want to do things like you were saying that they have a business plan which never gets executed on the side, right? Because they never get to take action because it’s feels like a gigantic mountain that they have to climb. So, they just never end up doing it even though they have this vision and dreams to take that action. Right. So, and they listen to this and they’re excited, right? So, they want to kind of follow your full step five step approach. But inside there is this little voice telling them like is this owning this franchise even for them, right So is there a way to answer that little guy that’s inside of them telling them? Yeah, you’re going that route? Do you have this way or any way to find out that if this is even for you? Or, you know, the answer could be, they have to do it to find out, but which is true for many things in life. So, yeah,
Giuseppe So yeah, so my answer to that little voice that can kind of see them on over one of my shoulders over here, is that, that it’s normal? As human beings, we’re hardwired, right? To have fear, right? Or else, we would just do some really crazy stuff so and make some crazy decisions. So having that little voice is normal. But what do you do with that voice and so let’s start there. It’s extremely normal. Number one, it’s a risk but it’s also a mindset shift, if you want to call it where people also think their jobs, we have the advantage and not saying COVID was good in any way. But we have the advantage of what we went through, but they feel that jobs are safe. And let’s call it what it is, you know, I’m not saying business ownership is for everyone. But your job is also at risk. And it’s always has been risky in that, you know, with a business, you’re investing money, you can lose your investment. But what can you gain from it with a job, which, again, is good for a lot of people and not for others. But with a job, you’re at risk of losing your employment at any time, you have zero control of the ship, the ship is on its voyage, and you have no control and no say as to making the big decisions that unless you’re obviously the CEO of the business or upper management, so you can lose that job at any point in time. He may have a bunch of managers above you that are in control of your position, and how well you’re going to do within the company. And then we blindly invest our money in a 401k that it’s managed, and you’re given options. No one gives me options in my 401k, I can invest, what is it 50 or 60,000, a year and a 401k, basically, whatever I want, I’m not told I have to invest in XYZ mutual funds. So, I think if you’re looking for control, if you’re looking for just having control of your time, you know, giving, you know diversifying and creating a safety net. So, a business can be a part time investment for that if you lose your job, and you can walk into a full time position within your side business, right. So now you’ve basically created employment for you. So, I would not say business ownership is the right fit for everyone. Fear is normal. But at the end of the day, if you want to change bad enough, as I did, basically, I made my decision was I was not going to see my children. If I continued working in New York City, in financial services, that’s a pretty darn strong why. So, if you’re kind of interested in franchising, your business ownership, do a little bit of research, I would say just maybe stick with the job. But if you have that strong why and passion, go for it, do your due diligence. The advantage you have in franchising is you can talk to dozens or hundreds of franchisees, you don’t have that maybe with a startup. I mean, you could talk to other people at that started a business, obviously, but you can talk to franchisees, the franchisor they can give you this is the investment range. This is what the average franchisee makes you don’t have that with other businesses. So do your due diligence, do it in a timely fashion, and then just pull the trigger and move forward with it. If you have a hard time making that decision, take a step back and figure out again, why are you doing this? Because it’s a lot of work. It’s stress, it’s work, you can lose your investment, you can go out of business, or you can work from home and not ever miss a soccer game again. So, I challenge you, if you don’t have that strong enough, why? Think about it. And if you can’t think of anything, maybe it’s just not the right time. That’s not to say things can’t change but maybe you need to give it a little bit more thought before you pull the trigger.
Pancham Gupta Great, you know, you have mentioned knowing your why so many times, and I am a big proponent of that myself, like the why has to be strong enough. The reason that business plan never takes off, is because the why is not strong enough. Anything in life that you have always been thinking of doing and you don’t do it is because other things in life have taken more priority and your why is not strong enough to make you believe that this thing has higher priority.
Giuseppe That’s right. You know that’s exactly it. I agree. 100, 110% We all make choices. We’re responsible. We’re all adults. So, you’re why ain’t strong enough you made that choice to leave it on the backburner and that’s fine. That’s fine if that’s for you, but just make that decision don’t have any regrets in life. We live once. So, you know a franchise is a great way to have this support system, which can turn into other things so as a business, but factor in this last point someone said Well, a franchise is expensive. I said compared to what? Well, you have to pay a friend franchise fee. And I said, well, that’s based off the hundreds of thousands, if not millions of dollars of trial and error that the franchise company has made in order to figure out the system. How much have you lost an opportunity by sitting on a business plan for a decade when we look at the time value of money for all the for the finance guys, right for the investors, time value of money, I sat on a business plan for 10 years, alright, didn’t cost me anything an expense, but I lost 10 years’ worth of opportunity. So, I would let that sink in and think about that. And I say go for it. I’m not about regrets. Even the mistakes and decisions I’ve made in the past that didn’t work out. Everything is a learning experience.
Pancham Gupta Absolutely. Absolutely. Well, thank you for sharing that, Giuseppe. We’ll be back after this message…Do you ever feel overwhelmed by the thought that you have no time after work, and family time to learn about investing? Do you feel left behind that you are not putting your money to work for you? Do you want to create passive income, but you do not know where to start? If so, I have good news for you. I have created an investor club which I call The Gold Collar Investor Club for accredited investors, I will be putting together investing opportunities exclusively for this group. These are the opportunities where I have done my part of the due diligence for you and will be investing my own money alongside you. If you are interested, please sign up on thegold collarinvestor.com/club. I repeat, thegoldcollarinvestor.com/club. I will reach out to schedule a 30 minute phone conversation to discuss your investing goals. Once you sign up, this can be a good opportunity to diversify and take some chips off the hands of Wall Street to produce some cash flow. And in case you are wondering what an accredited investor is, accredited investor is someone who has earned more than 200,000 as filing single or more than 300,000 filing Jointly for the last two years. Another way to qualify as an accredited investor is if your total net worth is more than $1 million, excluding your personal home, it includes your stocks for one case, IRAs, cars, etc. Just not the equity in your personal home. If this is you, I would highly encourage you to sign up… Hey, Giuseppe, welcome back to the show. We are going to go to the second round of the show which I call taking the leap round and ask these four questions to every guest on my show for you. However, I have modified them slightly because of the topic. And here are my four questions. My first one is when was the first time you invested in a franchise was that 2007? You already answered that question. 2007. Yep, got it. So, did you have any fears at the time that you had to overcome?
Heck, yeah. It was very fearful. I left my job and to dive in full time. So very fearful. As I mentioned earlier in the show, I did my due diligence. And then when I sat down at the dinner table, I still remember this with my wife, we said, okay, I will do everything I can to make this business work. I got a great company behind me but or else I stay not happy, miserable at my job and not see my kids. So, we kind of were at that split in the road. And I said, I’m going for it. I want to do it 100%. I did have my wife working at the time and was very fearful and do not have a single regret of moving forward.
Pancham Gupta With my third question. Do you have any investment that did not go as expected and can you share with us?
Giuseppe Yeah, wow. Well, I started in Wall Street in 1998-99, as an intern, actually, at the age of 19, was a licensed series seven, financial advisor, did it on my own time, as I mentioned, as an intern, so I would say I rode the tech bubble, made an extraordinary amount of money on paper with my investments, because everything was going up. And I’m not going to name all the companies I invested in. And I held on to them and probably gave back everything and then some on those investments. So, I forget what the total number was in losses. I think at the time as a college kid over twenty some thousand dollars maybe in losses, it could have been more, best learning experience of my life. You cannot teach that in a school. Sometimes you just have to experience it. So yeah, I’d have to look at my stock list of all the companies that are probably not even around today.
Pancham Gupta Well, thank you for sharing that. My last question for you is what is one piece of advice would you give to people who are thinking of investing in a franchise? I know you’ve answered that question already. One last bit of advice.
Giuseppe Yeah. You know, put the end in mind that that’s the vision right or the goal. So, forget about how to get there. What’s the vision? What do you want to accomplish and work backwards? Just like when you look at a franchise you work backwards. I want to be working two days a week, write that down, I want to be living on the beach, I want to be, I only want one employee that does everything for me. I just work on the business, whatever it is, don’t worry about how you are know how to get there, put the end in mind. And then you figure out okay, how am I going to get this? And before asking how I challenge everyone start with the question, who, and that’s what I did. And that’s how I was able to grow my business exponentially. There’s a book called Who Not How by Dan Sullivan, from Strategic Coach talks about the four financial freedoms talk, I’m sorry, four freedoms from business ownership talks about who is able to help you, whether that be a coach, another investor, someone that’s own a business, whoever that coaches are that who is to help you get to the next step, it’s going to be a lot more valuable than just going on a website and doing research. So, find someone that can guide you, and coach you mentor you. And I think that’ll pay dividends over the years.
Pancham Gupta Great. Thank you for your time here, Giuseppe, I know you’ve free gift to share with the audience. You’ve written a book on this topic. Can you talk about the book really quick and how can they get it?
Giuseppe Sure, absolutely. So, you can see it here. So, it’s called Franchise Freedom, which is also the name of my podcast, we kept it simple, where we give advice on a weekly basis. And I wrote the book to help people guide them through if they want to explore business ownership, not just franchising have kind of figured out a lot of what we talked about today, but it goes into a lot more detail talks about the four, four to five steps, talks about building a team of attorneys, financial advisors, and the importance of that through your career. Even if you’re thinking about business ownership, if you go to Franchise Freedom, so the name of the book, @thegoldcollarinvestor.com, just request a copy of the book, we’ll get you a PDF copy of file of that book on us and would love to help you out in any way possible. So, feel free, read the book, my information’s in there, and you can reach out if you need any, if you have any questions and if you need any assistance, we’ll be more than glad to help out.
Pancham Gupta Yeah, thank you for mentioning that Giuseppe and one last thing there right that this is of no cost to them, right? You will get paid through franchises by helping them I think we didn’t cover that on the podcast. Is that true?
Giuseppe Yeah, actually, yeah, you know, usually talk about that, and I forgot to mention it. So, there is no fee for our service, we offer everyone a 20 minute right fit call, right fit means if franchising is a right fit. And if we are a good fit of working together, there’s no fee for that call any of our services or coaching is at no cost to you. We are paid directly from the franchise companies only if you invest in a franchise, similar to a real estate agent or a headhunter executive recruiter. So, no fee, you pay exactly the same amount for the franchise. If you go directly or through someone like us, it’s just that we help you kind of get to the front of line as a qualified person for that specific franchise. So, no fee. I’m glad I’m glad you brought that up. So, anyone that’s on the fence or wants to know, how do I keep a job because a lot of people listening have a corporate job right now. I can show you exactly how to build it, build it out so that you can keep your job. We have people doing that every single day, owning a business on the side, and then eventually transitioning full time into that business. I’d be more than glad to cover that even if it’s just one call and we talk a year after not a problem. We’re here to help.
Pancham Gupta Great. Thank you, Giuseppe for your time here today.
Giuseppe Pancham, thank you very much. It’s been my pleasure and looking forward to speaking again.
Pancham Gupta Thank you. I hope you learned something from Giuseppe, and he helps you in making up your mind whether franchising is for you or not. Thank you for listening. If you want his book, do not hesitate. Definitely email email@example.com. That’s firstname.lastname@example.org. You will get a free copy to his e-book Franchise Freedom. I really appreciate you. If you have questions, email them to me at email@example.com This is Pancham, signing off. Until next time, take care.
Thank you for listening to The Gold Collar Investor Podcast. If you love what you’ve heard and you want more of Pancham Gupta, visit us at www.thegoldcollar investor.com and follow us on Facebook @thegoldcollarinvestor. The information on this podcast are opinions. As always, please consult your own financial team before investing.