How To Start A Successful Business (Backed By Data)

In a discussion featuring Scott Galloway, the conversation centers on achieving economic security by focusing on non-romantic industries where one can excel, emphasizing practical skills over passion-driven pursuits. Galloway advises young people to develop financial discipline through savings and diversification, highlighting the power of compound interest and the importance of handling failure. He underscores the value of corporate experience for foundational skills and networking, while promoting entrepreneurship as a viable path only when necessary. The dialogue also touches on the societal pressures young men face and the importance of community and self-discipline.

• Passion is derived from artistry, mastery, and economic security rather than just following one's interests.
• Economic stability in a non-glamorous industry can lead to passion over time.
• Success in less romantic industries can provide financial freedom and personal satisfaction.

"Passion comes from artistry, mastery, and economic security, so whatever that thing is that gives you the ability to make some good money that you're good at, maybe even great at, in an industry that's not sexy, you're going to be passionate about it."

• This quote emphasizes that passion is often a result of achieving mastery and financial stability, rather than simply pursuing what one loves.

• Most people avoid entrepreneurship due to fear of public failure.
• Success in entrepreneurship often requires resilience and the ability to handle rejection.
• Not every business venture will succeed, but one successful venture can lead to financial freedom.

"Most people will never be entrepreneurs because they don't want to risk public failure. My superpower is rejection. I've started nine companies; four have failed, three are kind of a tie, two are hits. All you need is one."

• This quote highlights the importance of resilience and learning from failure in the entrepreneurial journey.

• There is a formula for achieving financial freedom, which involves learning from successful individuals.
• Studying the strategies of those who have repeatedly succeeded can provide valuable insights.

"What if I told you there was a formula to become financially free, and in fact, we could steal the homework of a guy who had done it a bunch of times, even lost money, and then done it again?"

• This quote suggests that financial freedom can be systematically achieved by learning from others' experiences and strategies.

• Focus on finding something you are good at, potentially in a non-romantic industry.
• Developing expertise in a specific area can lead to financial success and personal satisfaction.
• The journey to find one's niche may involve exploring various fields and forgiving oneself for past choices.

"Find something you're good at, and the key part of that is find something you're good at in a non-romantic industry."

• This quote stresses the importance of focusing on one's strengths in practical industries for sustainable success.

• College education is not the only path to success; many successful individuals do not have college degrees.
• There is societal pressure and shaming around not attending college, but alternative paths can also lead to success.
• Exploring different career options in one's 20s is essential to finding a suitable and fulfilling career.

"Two-thirds of kids don't end up in college, and there's this industrial shaming complex."

• This quote points out the societal pressure to attend college, despite many successful people taking alternative paths.

• Economic security can lead to career satisfaction, even in industries that may not seem appealing initially.
• Mastery and financial success in a field can lead to passion and fulfillment.
• Examples include professionals in various industries who find satisfaction through financial success and expertise.

"Passion comes from artistry, mastery, and economic security, so whatever that thing is that gives you the ability to make some good money that you're good at, maybe even great at, in an industry that's not sexy, you're going to be passionate about it."

• This quote reiterates the idea that financial stability and mastery in a field can cultivate passion and satisfaction.

• Financial discipline is crucial, and developing a savings habit early is essential.
• Aligning financial goals with peers or partners can help in maintaining financial discipline.
• Gamifying savings and spending can make financial management more engaging and effective.

"The one thing that's in your control is spending. You got to develop a savings muscle when you're young and see if you can get alignment with your roommates or your romantic partner and gamify savings."

• This quote underscores the importance of financial discipline and collaboration in achieving financial goals.

• Personal anecdotes illustrate the importance of financial discipline and the impact it can have on life choices.
• Sacrifices made during college years to save money can lead to long-term benefits and opportunities.

"I spent $78 a week, including rent and food for 12 weeks. I ate top ramen, bananas, and milk."

• This quote provides a personal example of the sacrifices and discipline required to achieve financial goals during college.

• The importance of developing a savings habit early in life is emphasized, focusing on the need to set aside a small percentage of income.
• Young people often underestimate their lifespan and the speed at which time passes, which affects their financial planning.
• The "Instagram generation" is critiqued for its materialistic view of success, which can lead to financial irresponsibility.

"If you from the age of 22 just figure out a way to get 2, 3, 5% of your income out of your hands... find a force savings mechanism."

• This quote highlights the necessity of establishing a savings habit early on, suggesting specific percentages of income to save as a practical guideline.

"The nice thing about being young is you don't need as much money to have fun."

• This statement underlines the idea that young people can enjoy life without excessive spending, contrasting with the pressures of consumerism.

• Compound interest is presented as a powerful tool for growing wealth over time.
• The concept is explained with the potential for significant growth in investments over decades.

"Time is going to go fast... well I'm only going to get you, you know, 9% in the markets... in 24 years it's going to be up Eightfold."

• This quote illustrates the exponential growth potential of investments through compound interest, emphasizing the importance of starting early.

• Diversification is portrayed as a crucial strategy for financial stability and risk management.
• Personal anecdotes are used to illustrate the consequences of lacking diversification and the benefits of spreading investments across various sectors.

"Diversification is your Kevlar... I invested $5 million in a teex based Healthcare Company... it went out of business last week... but it didn't even ruin my day."

• Here, diversification is likened to protective armor, showing how spreading investments can mitigate the impact of losses in any single venture.

"The way you stay somewhat rich is through diversification."

• This succinctly encapsulates the principle that while concentration might lead to wealth, diversification is key to maintaining it.

• The speaker reflects on personal financial mistakes, particularly the lack of diversification and overconfidence in specific investments.
• The narrative includes a sense of regret and lessons learned from past experiences.

"I was sitting there at 40 years old... I'd made so much money and I was broke because I wasn't smart enough to diversify."

• This quote conveys a moment of realization and regret over past financial decisions, highlighting the importance of diversification.

"You never more prone to a big mistake than after a big win."

• This statement warns against the complacency and risk-taking that can follow financial success, stressing the need for caution and humility.

• Emphasizes the importance of saving money early, regardless of one's career success.
• Suggests real estate as a good savings method and stresses the importance of consistent saving.
• Highlights that wealth accumulation is a slow process, but starting early ensures economic stability.

"You don't need to be a billionaire, just start saving some money. Real estates are great for savings. Figure out a way to get it out of your hands."

• Encourages financial discipline and early saving habits to secure future economic well-being.

"I can get you rich. That's the good news. The bad news is the answer is slowly."

• Wealth accumulation is a gradual process, emphasizing patience and consistent effort.

• Discusses the reality of early career jobs being monotonous and challenging but essential for skill development.
• Highlights the importance of enduring early career hardships for long-term benefits.
• Points out that one's first job rarely aligns with their dream job, but it provides valuable learning experiences.

"Your first job is not supposed to kill you from how hard it is; it's supposed to kill you from the pure monotony of labor."

• Early jobs may be tedious but are crucial for developing work ethic and resilience.

"Your first job, even if you don't like it, give it a couple of years to see if it gets better."

• Encourages perseverance and patience in early career stages to allow for growth and learning.

• Describes corporate experience as a valuable training ground, offering skills and credibility.
• Emphasizes that entrepreneurship often stems from necessity rather than choice.
• Advises against romanticizing entrepreneurship and acknowledges corporate America as a significant wealth creator.

"The US Corporation is the greatest wealth creator in history. The reality is most of us don't have the skills or patience."

• Highlights the structured opportunities and benefits offered by corporate careers.

"When kids come to my office hours, they say, 'I have an offer from JP Morgan, but I'm thinking of starting my own business.' I'm like, 'JP Morgan, here you come.'"

• Advises young professionals to consider stable corporate opportunities before venturing into entrepreneurship.

• Corporate jobs provide extensive training and benefits equivalent to higher education.
• Corporate experiences are likened to a graduate degree, offering practical skills and networking opportunities.
• Highlights the cost-effectiveness of corporate training programs compared to traditional education.

"I hear they spend about $100,000 a year training new members, so that's probably the cheapest university you can get."

• Corporate training is a cost-effective way to gain valuable skills and experience.

"Anyone who right out of college can go get a graduate degree called a US Corporation, I would say do it."

• Encourages leveraging corporate training as a form of advanced education and career development.

• Discusses the importance of resilience and the ability to handle failure for long-term success.
• Emphasizes transparency in sharing opinions and learning from mistakes.
• Highlights the role of atheism in providing perspective on life's finite nature and reducing fear of judgment.

"You are not quiet about your opinions. If they don't turn out to be right, you go, 'Well, here's my thought process.'"

• Openly sharing and analyzing one's thought process helps in learning from failures.

"I'm convinced that at some point I'm going to look into my kids' eyes and know our relationship is coming to an end."

• Acknowledges the transient nature of life, encouraging a focus on personal growth over others' opinions.

• The speaker discusses the importance of embracing failure and using it as a stepping stone for future success.
• Public failure is a significant fear for many, preventing them from taking risks in entrepreneurship or personal endeavors.
• The speaker's personal experiences with repeated failures have been pivotal in developing resilience and the ability to move forward.
• Life's balance between tragedy and joy is partly out of one's control, but one's reaction to failure is within their control.

"Most people will never be entrepreneurs because they don't want to risk public failure. It's humiliating."

• Highlights the fear of public failure as a major barrier to entrepreneurship and personal growth.

"My superpower was when I had a business fail or when I was divorced or when I lost my mom, I knew how to mourn and I knew how to move on."

• Emphasizes the speaker's ability to recover from personal and professional setbacks as a key strength.

"The only thing I can guarantee anyone is you're going to have a certain amount of tragedy and a certain amount of joy in your life."

• Life's mix of tragedy and joy is inevitable, but one's response to these events is crucial.

• Young men face unique challenges, including aggression and lack of direction, especially in areas with social unrest.
• The speaker coaches young men to reallocate their time and energy towards productive activities.
• Key strategies include physical fitness, earning money, and engaging in community activities to build confidence and social networks.
• The importance of having "guard rails" like community involvement or relationships to guide young men is stressed.

"You know what civil unrest looks like? It looks like a lot of fighting-aged men on the side of the streets without anything else to do."

• Describes the consequences of unchanneled energy and aggression in young men in unstable regions.

"First thing we're going to do is we're going to get fit... we're going to feel better about ourselves, we're going to feel more confident."

• Physical fitness is a foundational step in building self-confidence and improving mental health.

"You need the way you make a lot of money is by starting to make some money because you get a taste for flesh and you start thinking wow this money thing's awesome."

• Encourages starting with small jobs to build financial independence and motivation.

"Young men need those guard rails."

• Highlights the necessity of structures and communities that provide guidance and discipline for young men.

• The speaker is writing a book on masculinity, exploring the roles of a provider, protector, and procreator.
• Emphasizes the importance of community and social networks for men, as isolation can lead to negative behaviors.
• Men often struggle with discipline and self-regulation without external structures or relationships.

"I think of a man is supposed to be kind of three things: a provider, a protector, and a procreator."

• Defines traditional masculine roles and their positive aspects.

"Men are dangerous when they sequester."

• Warns against the risks of isolation in men, leading to potential negative outcomes.

"Without guard rails, men don't demonstrate the same discipline as women in their early years or early adult years."

• Compares the developmental differences between men and women, stressing the need for external guidance in men.

• The speaker shares personal anecdotes illustrating growth through relationships and external expectations.
• Importance of adapting behavior for personal improvement and success.
• Encourages continuous learning and self-improvement through various life experiences.

"My First Girlfriend told me if I didn't stop smoking so much pot she was going to stop having sex with me."

• A personal story highlighting the influence of relationships on personal behavior change.

"This is incredible. Thank you for being here today. This was so interesting. I learned a ton."

• Acknowledges the value of the conversation and the insights gained, reinforcing the importance of learning from others.