Ep. 18: Joel Block on Why Recurring Revenue Is The Future Of Business

In this episode, David sits down with Joel Block, Futurist, Longtime Venture Capitalist, and Hedge Fund Manager, to discuss top trends businesses need to be paying attention to and why recurring revenue is the future of business.

Joel’s Bio:
Joel’s a futurist and longtime venture capitalist / hedge fund manager (gobbledygook for professional investor) who lives in a Shark Tank world like on TV. Since selling his publishing company to a Fortune 500, Joel’s cage-rattling keynotes expose Wall Street insights and the inside track on high-velocity innovation – empowering business executives and their teams to “Disrupt Their Competitors’ Future”.

Joel’s Links:
The Business Trend Report for 2021: http://bit.ly/Bullseye-Trend2021
Website: http://www.joelblock.com/
LinkedIn: https://www.linkedin.com/in/joelblock
Facebook Personal: https://www.facebook.com/joelblock
Instagram: https://www.instagram.com/joelgblock/
Twitter: https://twitter.com/JoelBlock
YouTube: http://bit.ly/Joel-on-YouTube
Wikipedia: http://en.wikipedia.org/wiki/Joel_G._Block

Key Quotes:
1. “The biggest thing is the fallout of the work-from-home phenomenon.”
2. “For professional investors, this is an opportunity.”
3. “Every one of these asset classes that’s distressed, is an opportunity.”
4. “Whenever there’s flux, for professional investors, there’s opportunity to go in and buy.”
5. “Everything that’s bad is an opportunity for somebody.”
6. “Subscription revenue is probably the most important phenomenon that companies need to pay attention to.”
7. “Every single company, needs to look at ways that they can convert and get themselves onto a recurring revenue basis.”
8. “But there’s got to be a big picture. People get out of bed every day because of the big picture.”
9. “It’s not just vision, its also about cause.”
10. “The best leaders are really really good at helping people understand that what they do every day matters.”
11. “The world has softened up a lot.”
12. “When it comes to money, everything is rigged.”
13. “Its critically important that companies reevaluate their business rules to make sure that they’re not egregious.”
14. “Consumers have a lot of power using social media.”
15. “Ultimately, regulation will always lose out to whatever the will of the people is.”
16. “People are specialists, they’re not generalists anymore.”
17. “Capital is not just money. Capital is any of the tools that a company uses.”
18. “Every kind of person needs to be treated with more respect.”
19. “Constant disruption is the new normal.”
20. “People need to be specialized.”
21. “Demonstrate that you care.”

Links Mentioned In The Episode:
Zoom: https://zoom.us/
Otter.ai: https://otter.ai/login
Evernote: https://evernote.com/

Buy David’s NEW book Trusted Leader: https://www.trustedleaderbook.com/

David’s Links:
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Show Transcript

David Horsager: Welcome to the trusted leader show it’s David horse soccer i’ve got a special guest today Joel block welcome to the show.


Joel@BullseyeCap.com 818-917-0670: David, how are you hey I see you today.


David Horsager: Yes, jealous jealous a good friend i’m doing great detail.


David Horsager: But Joel is, let me tell you a little bit about him a futurist long time venture capitalist hedge fund manager he lives kind of in a shark tank world.


David Horsager: Like on TV since selling his publishing company to a fortune 500 joel’s cage rattling keynotes expose Wall Street insights and the inside track and high velocity innovation.


David Horsager: He really tries to empower business executives and their teams to disrupt their competitors future, and you know he’s a brilliant guy I am so excited to have you maybe a couple more thoughts just on on who Joel block is and then we’re going to get into your trends.


Joel@BullseyeCap.com 818-917-0670: Well, I started in the CPA world as a youngster Price Waterhouse I was not a soldier, it was not a fit for me if I didn’t quit i’d been fired for sure.


Joel@BullseyeCap.com 818-917-0670: But I did I did work on a couple of accounts that really kind of got me all excited.


Joel@BullseyeCap.com 818-917-0670: I was working on a big syndication company is a company that like raises money and goes and buys assets.


Joel@BullseyeCap.com 818-917-0670: And I thought you know what I don’t want to do tax work, but I want to be a dealmaker like these guys and.


Joel@BullseyeCap.com 818-917-0670: Sure enough, I left the firm and set up a little company with met another guy we raised the money bought a building raise more money by another building go, you know we just kept calling on guys, to give us money.


Joel@BullseyeCap.com 818-917-0670: And you know sure enough over time we’d raise millions of dollars and the life after that was kind of winding down I raised $10 million and started a little media company.


Joel@BullseyeCap.com 818-917-0670: That I ended up selling to a fortune 500 so i’ve just constantly been kind of looking forward in time and on the leading edge and and now I do a lot of media and I make a lot of predictions and i’ve done pretty good.


David Horsager: But you sure have well let’s get into that your new report competing on capital 2021 29 trends for maximizing sales and optimizing profits in the next decade.


David Horsager: let’s take a look at this, you know you have a lot of experience, both being on boards vcs hedge fund, you know watching.


David Horsager: Information really being an advisor to many CEOs and leaders around the world, so i’m interested in I think others will be very interested in this report let’s take a look first of all, at just maybe a couple things that jumped out to you.


Joel@BullseyeCap.com 818-917-0670: Well, do you want to talk about what I like or you know or you’re working.


Joel@BullseyeCap.com 818-917-0670: With you like them, and I ask a.


David Horsager: few things that I like, but I want to hear a few things that you.


Joel@BullseyeCap.com 818-917-0670: Listen, you know we write this report for the for the clients of our firm for friends of our firm, like you, and then you can share with your friends, of course.


Joel@BullseyeCap.com 818-917-0670: And so we just look at things that we think are going on, these are these a lot of these things are people on Wall Street are talking about and just bring them to.


Joel@BullseyeCap.com 818-917-0670: middle America, and because the largest companies get this kind of Intel but the the middle sized ones, typically do not so.


Joel@BullseyeCap.com 818-917-0670: To me, the biggest thing is really all the fallout from the work from home phenomenon, this is the biggest one of all and and you know what I see happening here.


Joel@BullseyeCap.com 818-917-0670: Work from home is here to stay, now that doesn’t mean that everybody’s going to work from home every day but.


Joel@BullseyeCap.com 818-917-0670: Probably 50% of the people are going to for some reason or another, end up being home, so there may be an A team to be team that come on on Tuesdays and Thursdays or Wednesdays and Fridays, or whatever they do, but a.


David Horsager: Great time great time to buy into office commercial space right.


Joel@BullseyeCap.com 818-917-0670: well.


David Horsager: not exactly and we’ll get to that.


David Horsager: end in minneapolis, by the way, as one trend.


David Horsager: I think normally downtown was 80 to 90% occupied and in January this year, I think I heard 16 one up 16% occupied.


Joel@BullseyeCap.com 818-917-0670: Well, how about here’s here’s the thing.


Joel@BullseyeCap.com 818-917-0670: For professional investors, this is an opportunity.


Joel@BullseyeCap.com 818-917-0670: For non professional investors, maybe not so much, but for guys like me i’ve run a mastermind of all hedge fund managers I advise these guys and.


Joel@BullseyeCap.com 818-917-0670: tell them what kinds of assets, they should be buying and you know let’s look at the implications of work from home let’s say that it is 50% you know just for whatever reason.


Joel@BullseyeCap.com 818-917-0670: If 50% of the people are not going downtown to work let’s look at the implications on traffic, I mean you know I mean and then who wins and who loses I mean it’s pretty good consumers when on traffic because it’s.


Joel@BullseyeCap.com 818-917-0670: it’s awesome right less people on the freeway and i’m in Los Angeles, which is especially terrible and you know the roads are busy, and there it’s a long distance.


Joel@BullseyeCap.com 818-917-0670: But what about the impact let’s say on gasoline I mean you know to me.


Joel@BullseyeCap.com 818-917-0670: Demand on oil is going to be down demand on oil for airplanes is going to be down to over the next several years as people kind of adapt to a new.


Joel@BullseyeCap.com 818-917-0670: A new reality about using electronics for communication that doesn’t mean that there isn’t going to be movement, but it might be less, which means that there’s reduction in demand.


Joel@BullseyeCap.com 818-917-0670: What about governments, you know when when there’s less cars on the road sounds to me Left will be less speeding tickets less traffic tickets less parking tickets.


Joel@BullseyeCap.com 818-917-0670: Less collection of tax on parking spaces in in urban areas and then we’ll look at real estate real estate, for example, when you.


Joel@BullseyeCap.com 818-917-0670: When you think about you know, a company taking needing only half the amount of space that’s what you’re talking about now the reason it’s 16% is because there was a flight from urban.


Joel@BullseyeCap.com 818-917-0670: Which is just that that was kind of a short term thing but it’s going to go back to something around 50%.


Joel@BullseyeCap.com 818-917-0670: I means restaurants, are going to be down by 50% It means that shoe shiners are going to be down by 50% there’s just there’s a lot of implications and as a venture capitalist as a professional investor.


Joel@BullseyeCap.com 818-917-0670: We do an analysis and we look at different segments, and what kinds of things that we want to bet on and that’s what I do is I placed bets you know.


David Horsager: What are the opportunities that you see right now.


Joel@BullseyeCap.com 818-917-0670: Well, you know listen there’s as far as opportunities to me every one of these asset classes this distressed.


Joel@BullseyeCap.com 818-917-0670: is an opportunity, because when you think about buy low sell high, this is a bylaw opportunity, not so much for residential real estate, for example, but let’s say for.


Joel@BullseyeCap.com 818-917-0670: Commercial real estate buildings are going to be dropping in price, because occupancy is down there may need to be some conversion of space from commercial maybe into residential or something else.


Joel@BullseyeCap.com 818-917-0670: Industrial spaces are down, because people are not going to use that space quite the same way, they used it before so there’s lots of things that are in flux and whenever there’s flux for professional investors.


Joel@BullseyeCap.com 818-917-0670: there’s opportunity to go in and buy and i’ll give you, for example, you know, even in the stock market there’s been a lot of adjustment.


Joel@BullseyeCap.com 818-917-0670: companies like dunkin donuts because all the migration and traffic patterns change with parents taking their kids to school or not taking them to school.


Joel@BullseyeCap.com 818-917-0670: What ends up happening is that they had to close 600 stores and they still were doing poorly and they ended up having to put themself up for sale and they got sold arby’s.


Joel@BullseyeCap.com 818-917-0670: The cruise lines who’ve been closed for a year, those companies they’re burning $500 million, a month in cash, I mean how long can that continue so what ends up happening is that some large company probably a private equity outfit.


Joel@BullseyeCap.com 818-917-0670: Which is kind of the world where I operate is going to end up going in and buying that company for a song and and that’s just what’s going to happen, so let me the shuffle.


Joel@BullseyeCap.com 818-917-0670: carnival these other companies are not going to go away, but they may not survive the same ownership so every everything that’s bad is an opportunity for somebody.


David Horsager: Good quote tell me about the fruit and just starting at that number one fruit eat fruit trees toppled treadmills.


Joel@BullseyeCap.com 818-917-0670: You know what this is the second most important one, so you pick you pick an excellent one and that’s why we put it as number one.


Joel@BullseyeCap.com 818-917-0670: You know, it just you know the work from home as a brand new thing, but this is all about subscription revenue and subscription revenue is probably the most important phenomenon.


Joel@BullseyeCap.com 818-917-0670: That companies need to pay attention to and David I don’t know about you, but 10 years ago I didn’t have a single.


Joel@BullseyeCap.com 818-917-0670: charge recurring charge on my credit card, not even one and i’ve got about 50 of them you got hulu and netflix and we got business one so there’s just so many different things.


Joel@BullseyeCap.com 818-917-0670: But here’s kind of the bottom line is I can imagine about 10 years ago Microsoft just just an example.


Joel@BullseyeCap.com 818-917-0670: going to Wall Street, and having a meeting and Wall Street says to Microsoft, of course I wasn’t there so i’m just speculating, but I can imagine this.


Joel@BullseyeCap.com 818-917-0670: That somebody on Wall Street says listen your your numbers are there, a little jumpy you know, then the revenues up and down, you know if you could kind of stabilize your revenues somehow.


Joel@BullseyeCap.com 818-917-0670: will give you a better multiple which increases the value of your stock increases the the overall value of your company and it’ll be good for everyone.


Joel@BullseyeCap.com 818-917-0670: So Microsoft Microsoft goes back and says well what business are we in well they used to be in the business of selling software, but they’re not in that business anymore.


Joel@BullseyeCap.com 818-917-0670: Now they’ve moved into the business of renting software so here’s the here’s kind of the way it played out as they converted their office package.


Joel@BullseyeCap.com 818-917-0670: into what they call the office 365 and it took three or four years for it to catch on the almost nothing happened, for the first couple of years.


Joel@BullseyeCap.com 818-917-0670: But by 13 1415 the thing starts to pick up some steam, and by 16 it just takes off, and it really their whole business has changed, ever since then and their stock price, for example.


Joel@BullseyeCap.com 818-917-0670: went from where the stock market let’s say in general and President trump took over was.


Joel@BullseyeCap.com 818-917-0670: Whatever it was and went up say 40 or 50% in those four years Microsoft is up, five, six or 700% and that’s not a coincidence, because as their business stabilized.


Joel@BullseyeCap.com 818-917-0670: They did better and every single company needs to look at ways that they can convert and get themselves onto a recurring revenue basis, because if you want to sell your company your company will be worth more.


Joel@BullseyeCap.com 818-917-0670: The the multiplier on ebitda or the multiplier on your stock value it’s bigger in a trend in a in a business that has recurring revenue, rather than transactional.


Joel@BullseyeCap.com 818-917-0670: Because it’s more predictable it’s easier to understand, if you need to borrow money from a bank banks like it, I mean all the way around this is a really, really good way to go, and so you’re seeing companies convert to this.


David Horsager: So yeah absolutely and there’s some there’s some there’s some great you know I I research and look at the trust world right.


David Horsager: I don’t like having to pay subscriptions maybe but there’s some great things that happened with subscriptions as from us trust standpoint is.


David Horsager: you’ve got to keep delivering I gotta keep delivering to you i’ve got to keep providing value and making it worth it for you to pay me every month right so.


Joel@BullseyeCap.com 818-917-0670: yeah.


David Horsager: We got to keep that that there’s a value to kind of this this social contract trust where hey if you don’t keep delivering i’m not going to keep paying you know we got to keep in a bill can build a relationship right.


Joel@BullseyeCap.com 818-917-0670: Listen there, there is there is some of that.


Joel@BullseyeCap.com 818-917-0670: You know there there’s also some psychology where people kind of forget about these things, and they just let them go for a long time and that’s kind of a problem.


Joel@BullseyeCap.com 818-917-0670: But you know if you just just to finish the Microsoft thing if you think you know back in the old days we’d buy the software, we go to the.


Joel@BullseyeCap.com 818-917-0670: store we’d buy the software for a couple hundred bucks and we keep it for five or 10 years now.


Joel@BullseyeCap.com 818-917-0670: it’s 100 bucks a year and, and I pay them every single year, so over a 10 year period of time they probably make three or four or five times as much money as they made before.


Joel@BullseyeCap.com 818-917-0670: And it just it’s better for them they’re getting a better multiple and it’s all showing up their stock price.


Joel@BullseyeCap.com 818-917-0670: And they are delivering what I like about it is that I get their brand new updates whenever they come out so you know that’s I don’t have to feel terrible that I own a an old product that’s not got all the bells and whistles anymore so to your point.


Joel@BullseyeCap.com 818-917-0670: You know that’s I feel better about it.


David Horsager: It forces it, you often say vision drives leadership and it’s one of your trends, this year, and you often you’ve even said privately to me how momentum matters and vision drives momentum tell me about your thoughts on that and why that’s even a trend.


Joel@BullseyeCap.com 818-917-0670: This is one of the most important things you know companies are really realizing.


Joel@BullseyeCap.com 818-917-0670: That it’s not about mission it’s not about the job that you do every day, although that’s terribly important it’s very important that everybody does a good job they turn the bolts just right that they fill the machine just right that all those things work.


Joel@BullseyeCap.com 818-917-0670: But there’s got to be a big picture people get out of bed every day because of the big picture.


Joel@BullseyeCap.com 818-917-0670: Because they’re excited about something, and this ties a lot David into the work that you do.


Joel@BullseyeCap.com 818-917-0670: Where you know companies, they just they have to do a good job with their people, they have to be honest, have to do all those kinds of good things, but they also have to we’ve kind of.


Joel@BullseyeCap.com 818-917-0670: Vision for the company where employees say you know what that is awesome but there’s another component to it it’s not just vision it’s also about cause.


Joel@BullseyeCap.com 818-917-0670: Our company has to do something that makes the world a better place, and when you have cause and vision.


Joel@BullseyeCap.com 818-917-0670: And you and you, you promote that using a mantra of some kind, and everybody in your company kind of gets the mantra, and these are simple things that.


Joel@BullseyeCap.com 818-917-0670: they’re hard to put together but they’re simple concepts that ultimately needs to be communicated when everybody’s on board.


Joel@BullseyeCap.com 818-917-0670: Number one you can tell who’s not on board right away, and you can fish those people right out number two.


Joel@BullseyeCap.com 818-917-0670: People just get out of bed excited every day that they’re doing something that matters.


Joel@BullseyeCap.com 818-917-0670: People want to know that their life matters, they want to know that what they’ve contributed matters and the best leaders are really, really good at helping people understand that what they do every day matters.


David Horsager: hmm I love it, this is the in how does this relate to the big uptick you know it’s not I was on the.


David Horsager: platform last year or last time it was live at National Association of corporate directors and there’s so much movement toward cause toward toward SG toward you know kind of this not just compassionate capitalism, but a different way of thinking, what are your thoughts on some of that.


Joel@BullseyeCap.com 818-917-0670: yeah I think that’s that’s a little bit faddish I don’t think that that’s a long term trend when i’m talking about is not so much you know.


Joel@BullseyeCap.com 818-917-0670: Corporate niceness you know which, which is important, I mean it’s because that falls into a different category with that we can examine for a second but to me.


Joel@BullseyeCap.com 818-917-0670: it’s i’m talking about the CEO and the leadership people getting the the team to be excited about what they do every day when they come into work.


Joel@BullseyeCap.com 818-917-0670: I definitely think that the world has softened up a lot, and we are, we are absolutely softer and nicer than we were 50 years ago.


Joel@BullseyeCap.com 818-917-0670: we care about people more we need to care about people more it’s working the old way of being brutal and mean and rude and.


Joel@BullseyeCap.com 818-917-0670: You know, you know kind of hard drivers is not working and and just the nature of our of our workforce has changed and that style is not a style that really works anymore, and so.


Joel@BullseyeCap.com 818-917-0670: Although some of us kind of grew up with that style that style is going away with us, and so I.


Joel@BullseyeCap.com 818-917-0670: I don’t think that the conscious capitalism thing is entirely you know going to stick around because I don’t think that it really works, all the way, in the long run, I think that.


Joel@BullseyeCap.com 818-917-0670: There are certain principles of capitalism they’re important but on the other hand, I don’t think that you have to be so ruthless that you hurt other people along the way.


David Horsager: Why do you love capitalism.


Joel@BullseyeCap.com 818-917-0670: Well, you listen it’s why I love the United States of America is because anybody can accomplish what they want, I can’t tell you how many people of color my firm serves that call me and they’ll say you know Joel.


Joel@BullseyeCap.com 818-917-0670: i’m having a hard time taking care of my family i’m having a hard time you know the company, where I am whatever whatever the problem is they’re having.


Joel@BullseyeCap.com 818-917-0670: You know, can you show me how to do something and we help people set up funds and syndications and raise money, and you know some of these things.


Joel@BullseyeCap.com 818-917-0670: Can you show me how to do that, so I could take better care of my family, I mean that’s capitalism.


Joel@BullseyeCap.com 818-917-0670: that’s a person taking a step out and saying you know what i’m having trouble doing it, you know the corporate way and and the corporate way is is you know it’s a couple of hundred years old.


Joel@BullseyeCap.com 818-917-0670: I mean, one of the things that happened during this whole pandemic is that we recognize that some of our systems and institutions are hundreds of years old, the bail system which, which is under attack, right now, if you stop and think about it.


Joel@BullseyeCap.com 818-917-0670: Listen to if a person can be let go on their own recognizance because they’re not dangerous, and then maybe let them go and if they’re too dangerous then don’t let them go.


Joel@BullseyeCap.com 818-917-0670: But the ability to put up money, maybe isn’t the right measure of whether they should be let go or not and.


Joel@BullseyeCap.com 818-917-0670: You know I mean I get why because you want to kind of have a hook and i’m that they don’t run away, but you know they’re the way that we educate our children we line them up and rose and we educate them basically to be like soldiers to be workers in.


Joel@BullseyeCap.com 818-917-0670: Factories that’s not what the world looks like anymore, so I don’t know that our education system is right anymore I just I worry that we’re not really on the right track and to me capitalism really helps to straight, a lot of these things out if we work it the right way.


David Horsager: and interesting that you said, the what you said about institutions, because you know in our in the.


David Horsager: In the global trust research basically institutional trust is down steeply so you take.


David Horsager: Trust in our governments since Watergate it’s tanked considerably to now where it’s you know you know from 80% used to be that people trusted the government to do what’s right it’s like seven or 9% now.


Joel@BullseyeCap.com 818-917-0670: Well yeah it’s gonna be at an all time low now after after in the last couple months.


David Horsager: Well, all kinds of things, but, but other but big institutions are not as trusted except for.


David Horsager: Well, I just think like food like we want to know what’s grown right next door we don’t trust big food out there, maybe, or we don’t trust.


David Horsager: Education just brought up education, one of the trends, right now, from a trust perspective is big education is less trusted they want you know charter or private or homeschooling is taking a big ups uptick.


David Horsager: sure you know, same with churches, the same almost the same percentage of people believe in God, and yet the people, the percentage of people that actually go to a House of worship consistently or.


David Horsager: You know, give and those kind of things that’s down steeply so some of these big old institutions as you’d say they are taking a big hit and maybe, many of them for for good reason, but this is a.


David Horsager: Building over.


Joel@BullseyeCap.com 818-917-0670: Listen, you know the Brits are dealing with this this whole problem right now with Prince Harry and megan you know spilling the guts on this whole thing this could be this could bring the whole monarchy down.


Joel@BullseyeCap.com 818-917-0670: Because if if young people in Britain or anything like young people here in the United States of America.


Joel@BullseyeCap.com 818-917-0670: that’s an event that’s a cataclysmic event that could make them say this is a real anachronism it just doesn’t have any place in our society.


Joel@BullseyeCap.com 818-917-0670: And I mean I look at it as an American and I wonder what what the deal is I mean I get all the pomp and circumstance, but you know that’s the kind of thing that could really take them down, and you know to me.


Joel@BullseyeCap.com 818-917-0670: You know the way that the future works, we don’t we don’t just slowly change our attitudes over time.


Joel@BullseyeCap.com 818-917-0670: It happens because there’s an event George floyd was an event that that rocked us in a big way and made us say.


Joel@BullseyeCap.com 818-917-0670: This has to stop this has to change, we cannot move forward the way that we are right now and we have to do things differently.


Joel@BullseyeCap.com 818-917-0670: And that’s the way that everything is everything is focused on an event there have been so many events where people have seen companies act badly.


Joel@BullseyeCap.com 818-917-0670: religious institutions act badly where they don’t police themselves properly, where the lobbying and the money you know and and this all kind of falls into another category that I.


Joel@BullseyeCap.com 818-917-0670: I call them business rules and it’s another trend, by the way, and one of the things that I talked about often is that when it comes to money.


Joel@BullseyeCap.com 818-917-0670: everything’s rigged absolutely everything is rigged now it doesn’t mean rigged in the illegal way.


Joel@BullseyeCap.com 818-917-0670: You know so nobody’s going to jail, but every single company has the right to write their own business rules and they can say hey listen here’s how we want to work with customers.


Joel@BullseyeCap.com 818-917-0670: Some companies are very fair about that some companies are very egregious about how they write their rules now just to tell you I mean these rules exist in every area of our life.


Joel@BullseyeCap.com 818-917-0670: And in a place like Las Vegas, we all know, it’s right, we all know that the House is supposed to win, and in fact it’s so common that we don’t even call it right, we just call it the House advantage.


Joel@BullseyeCap.com 818-917-0670: You know, and we just go there, we go well, we know how it is, but we’re going to play and it’s gonna be fun and we know that those hotels weren’t built by winners.


Joel@BullseyeCap.com 818-917-0670: Right.


Joel@BullseyeCap.com 818-917-0670: that’s actually but, but we do it anyway, but we don’t expect it when it comes to a bank or when it comes to you know, a food maker, or when it comes to a credit card or an insurance company, you know.


Joel@BullseyeCap.com 818-917-0670: We don’t really understand that those companies are making rules to suit them they’re not really designed to suit us.


Joel@BullseyeCap.com 818-917-0670: And we all really have to educate ourselves about how these rules work, and I would say that, for the business listeners of this show.


Joel@BullseyeCap.com 818-917-0670: it’s critically important that companies reevaluate their business rules to make sure that they’re not egregious because, and this is why it’s a trend is because consumers have a lot of power, using social media.


Joel@BullseyeCap.com 818-917-0670: And when they’re mad.


Joel@BullseyeCap.com 818-917-0670: They can cause a real firestorm and that’s embarrassing to companies and then companies retrench and then you know back down and do something different so.


Joel@BullseyeCap.com 818-917-0670: These are, these are some of the things that I notice, and hopefully are helpful to the listeners of the show.


David Horsager: I have so many questions for you, I you know I want to jump into something that I didn’t see as a specific trend on its own, then I want to get to some more a few more trends, if you have time, are you are you doing okay.


Joel@BullseyeCap.com 818-917-0670: No time no time constraint.


David Horsager: Okay well you know you talked about money so just jumped to bitcoin right now what’s what’s the what’s the trend there, what do you, what do you think.


Joel@BullseyeCap.com 818-917-0670: Well, I think that.


Joel@BullseyeCap.com 818-917-0670: Fear caffeine, money which is dollar bills its Government issued money really is probably getting ready to go out, I mean it’s really kind of going out of fashion, I mean a better a better kind of money.


Joel@BullseyeCap.com 818-917-0670: is really necessary, but for a lot of reasons, the government doesn’t want that to happen it’s very difficult for the government to track and tax money.


Joel@BullseyeCap.com 818-917-0670: The way that bitcoin moves between people, it just it’s almost impossible, the government is 20 or 30 years behind.


Joel@BullseyeCap.com 818-917-0670: In computers and technology, and all these kinds of things, and although it probably is better, you have this Ying and Yang this this kind of like fight between.


Joel@BullseyeCap.com 818-917-0670: The government and the private sector, and you know, ultimately, the private sector will win.


Joel@BullseyeCap.com 818-917-0670: But there are a lot of things that the government can do to put roadblocks in the way for 20 or 30 years to slow it down, ultimately, they will not win.


Joel@BullseyeCap.com 818-917-0670: You know, ultimately regulation will always lose out to whatever the will of the people is but it might take some number of years before that comes to be.


hmm.


David Horsager: So let’s let’s take a jump here to to what I sighs number 10 in the trends and that was leaders are casting directors in a way haven’t they always been and what do you mean.


David Horsager: Well, that.


Joel@BullseyeCap.com 818-917-0670: they’ve always they’ve always been but it’s getting more and more important and it’s getting more important because.


Joel@BullseyeCap.com 818-917-0670: People are specialists they’re not generalists anymore, and the more specialized a job becomes.


Joel@BullseyeCap.com 818-917-0670: The more important it is to cast the right person into that job you don’t want to put a person who’s got a marketing personality into a selling job.


Joel@BullseyeCap.com 818-917-0670: And you will, and vice versa, the same you don’t want to put a selling person into a marketing job.


Joel@BullseyeCap.com 818-917-0670: Because those people are not going to be optimized in their responsibility now that’s, not to say when a person is young.


Joel@BullseyeCap.com 818-917-0670: That you don’t want to give a young person, the opportunity to experience multiple different departments.


Joel@BullseyeCap.com 818-917-0670: But by the time you’re 35 or 40 years old, you need to kind of pick a lane and start going down that lane and that’s how you make the most money that you can make.


Joel@BullseyeCap.com 818-917-0670: And that’s how a company is benefited as well, and so great leaders pick people that exhibit the right kinds of skills for the right kind of responsibilities.


Joel@BullseyeCap.com 818-917-0670: And they help them to kind of move in the right direction and that way they’re building up their team and the best way they’re doing the best thing for their for their team for their staff.


Joel@BullseyeCap.com 818-917-0670: they’re doing the best thing for their company and they’re doing the best thing for their balance sheet and remember that.


Joel@BullseyeCap.com 818-917-0670: This report is called compete on capital capital is not just money capitalist any of the tools that a company uses it’s the intellectual capital, the human capital.


Joel@BullseyeCap.com 818-917-0670: it’s the invisible capital, the political capital social capital relational capital all the kinds of capital and this report.


Joel@BullseyeCap.com 818-917-0670: You know, takes you know four or five trends from each of five or six different categories and examines it because.


Joel@BullseyeCap.com 818-917-0670: Listen, a great golfer doesn’t play great golf just by bringing a driver and a putter I mean they bring a range of clubs and you have to know when the when you pull out the right club and that’s kind of the same thing with capital here is the great leaders know which.


Joel@BullseyeCap.com 818-917-0670: Which kind of capital to lean on it, which in.


Joel@BullseyeCap.com 818-917-0670: Time.


Joel@BullseyeCap.com 818-917-0670: Now I happen to believe that money is the fuel it’s kind of the the main driver that makes it work but it’s not the only one every other One of those is critically important, so there are trends in here, for you know, most of the members of of any companies team.


David Horsager: Even for individuals and entrepreneurs, I see we’re gonna you know you’ll see at the show notes at trusted leader show.com.


David Horsager: you’ll see the the how you can go to bullseye capital, and you can get joel’s report, but another way to do it is you can text trend.


David Horsager: To 72000 just text trend to 72000 72,000 and you’ll get you can get the the.


David Horsager: This great competing on capital 2021 and it’s got a special report we’re going to get to at the end about social media because i’ve got a quick question about that.


David Horsager: Before we get there, you know you, you talked about different types of capital like relational and one of the trends is about engaging from the heart and I think we’ve seen.


David Horsager: People that haven’t had a heart did not make it to the pandemic and those that lead with empathy did tell me about it.


Joel@BullseyeCap.com 818-917-0670: Well, listen, I think that as we talked about a few minutes ago, the world has gotten a little softer.


Joel@BullseyeCap.com 818-917-0670: And it hasn’t gotten so soft that we all lay down and we don’t try to make money, I mean it’s i’m not saying that’s gone that far.


Joel@BullseyeCap.com 818-917-0670: But you know, but the world is a softer nicer kinder place and and you know and people want to be treated with more respect all people every kind of person needs to be treated with more respect.


Joel@BullseyeCap.com 818-917-0670: we’re a society that in order for us to get along everybody has to be treated well it isn’t it’s not in any of our interest to keep anybody down or.


Joel@BullseyeCap.com 818-917-0670: penalize people because that’s just more burden for the rest of us to carry let’s get everybody to be.


Joel@BullseyeCap.com 818-917-0670: You know, productive let’s get everybody to be happy in their life will have a better society and a better country as best as people can.


Joel@BullseyeCap.com 818-917-0670: But you know that’s really the engagement, the heart concept is really let’s just slow down a minute and take a look and let’s help people to to just feel better about themselves do better be better, and I think all the way around that it’s an important thing.


Great.


David Horsager: You talk a lot about disruption and that’s what you’ve been a route about helping even disrupt competitors, for your clients when the 14 trend is all about disruption, what can you say about that.


Joel@BullseyeCap.com 818-917-0670: Well, constant disruption is a new normal is that just, we have to remember that the world is changing fast changing faster than it’s ever changed and it’s changing faster for a couple of reasons.


Joel@BullseyeCap.com 818-917-0670: In the old days you know, and when we were kids probably in the 60s 70s and 80s.


Joel@BullseyeCap.com 818-917-0670: You know, if you want it to figure something out, you have to take out a piece of paper and a pencil.


Joel@BullseyeCap.com 818-917-0670: And you had to figure it out with with by hand and then we got calculators I remember it in the 70s in junior high school, we had calculators but now.


Joel@BullseyeCap.com 818-917-0670: You know it’s not just a matter of just doing a little bit of math and you know computers are doing this at incredible rates of speed and now with artificial intelligence and all the other tools that exist.


Joel@BullseyeCap.com 818-917-0670: Decisions in progress are moving at record pace, I mean nothing has ever happened like this before and so constantly.


Joel@BullseyeCap.com 818-917-0670: Companies are under you know assault by competitors, and let me just tell you that every companies may not like to hear this, but.


Joel@BullseyeCap.com 818-917-0670: Right now, there are a couple of kids sitting in the garage building a torpedo and they’re aiming it right at your company and if you’re not prepared for that.


Joel@BullseyeCap.com 818-917-0670: You know disaster could be on the horizon and people say oh yeah that’s just a couple kids not a big deal, you know it’s a couple kids until they get $20 million in venture capital.


Joel@BullseyeCap.com 818-917-0670: And then they go back and they get their second round for 100 million and now all of a sudden their player and they can buy advertising and they can they have resources they’ve got the smartest people on the planet they’re helping them, you know, using.


Joel@BullseyeCap.com 818-917-0670: grown up in.


David Horsager: yeah exactly and how do you stay in front, how do you not be blockbuster and how does netflix really keep from being blockbuster right like how.


Joel@BullseyeCap.com 818-917-0670: Do yeah.


David Horsager: So keep this innovative environment that that can stay ahead of that can stay competitive and it’s very few companies that have reinvented like an IBM that’s done it maybe 12 times and still here, and you know kind of this blue chip company and very few have done it how.


Joel@BullseyeCap.com 818-917-0670: Though so let’s say you know another another great example beside IBM is at amp T they’ve reinvented a few times they went from landlines they went into mobile, then they went into cellular now they’re going into you know into you know other kind of things so.


Joel@BullseyeCap.com 818-917-0670: they’ve done a brilliant job as well.


Joel@BullseyeCap.com 818-917-0670: But other companies let’s say Amazon they don’t keep reinventing they just keep raising the bar so they’re different things you know one is keep reinventing the other one Amazon First they come out with books online.


Joel@BullseyeCap.com 818-917-0670: And then they come out with other consumables online, then they come out with their aws cloud platform.


Joel@BullseyeCap.com 818-917-0670: And then movies, and all these different things that they keep adding on they just keep raising the bar higher and higher.


Joel@BullseyeCap.com 818-917-0670: And they’ve done a good job, and so, companies need to recognize that there are those two different things are happening.


Joel@BullseyeCap.com 818-917-0670: But the most important thing that companies can do, whether they know how to do it or not, is they need to ask really hard questions and, by the way this trend report at the end of every trend has a heart.


Joel@BullseyeCap.com 818-917-0670: And question that a Board should sit around and ask about their company, and you know you can at least do some preliminary work by yourself, now, you might need some professional help.


Joel@BullseyeCap.com 818-917-0670: You know, to make some predictions and things just like I made some predictions about how some of these different industries are going to unfold.


Joel@BullseyeCap.com 818-917-0670: that’s a lot of what we do, but you know but company should at least take a stab by themselves.


Joel@BullseyeCap.com 818-917-0670: The second thing is there’s a lot of things that companies can do number one they have to pay attention to the ecosystem in which they operate.


Joel@BullseyeCap.com 818-917-0670: They cannot be so insular that they’re looking internally all the time.


Joel@BullseyeCap.com 818-917-0670: And they need to be constantly looking out what other companies are in our space what companies might come into our space.


Joel@BullseyeCap.com 818-917-0670: What are other companies in our space doing what do we need to be doing differently, they need to analyze.


Joel@BullseyeCap.com 818-917-0670: What they’re doing in fact we developed a tool we call the disruption algorithm and we we actually put information about.


Joel@BullseyeCap.com 818-917-0670: Issues whether we if we invent something we’ll build an algorithm for that, and if a competitor built saying we’ll put that information into the algorithm.


Joel@BullseyeCap.com 818-917-0670: And and it’ll spit out a score and tell us how how dangerous this thing is for us and how much we need to pay attention to it.


Joel@BullseyeCap.com 818-917-0670: You know I mean some companies will go as far as buying the competitor or they may go as far as investing.


Joel@BullseyeCap.com 818-917-0670: In you know in getting a piece of the action in the competitor because bettered own little bit of it than to be wiped out by it, I mean so there’s a lot of strategies that companies can use.


Joel@BullseyeCap.com 818-917-0670: A little bit beyond the scope of this discussion, but there’s a lot of places that companies can go and they what the one thing they should not do is put their head in the sand.


Joel@BullseyeCap.com 818-917-0670: And just throw up their hands and say I don’t know what to do it when I talked to work out if that’s the case fold down the tip.


David Horsager: Well that’s that’s that’s that’s the work for all of us we’re all in, we have to be innovators today in this disruptive world we have to think differently next year.


David Horsager: You know, we say it all the time if you’re leading the way you were 20 years ago I don’t trust you if you’re.


David Horsager: You know, selling away were 10 years ago I don’t trust you if you’re teaching the way you were five years ago I don’t trust you, we have to be so changing and to be competitive and to be relevant.


Joel@BullseyeCap.com 818-917-0670: You know, so I would um you know I would use instead of the word trust, I would say don’t have confidence.


Joel@BullseyeCap.com 818-917-0670: Which which really is the same thing as the word confidence in French it comes from the same word trust, I mean, but just the connotation in English is a little different.


Joel@BullseyeCap.com 818-917-0670: You know I wouldn’t have confidence in somebody who is doing the same, the same way, they were doing it five or 10 or 20 years ago just there they’re irrelevant and they’re they’re actually a you know, a ship going into the dark night right off the cliff.


David Horsager: let’s come to your you know let’s take a look at your.


David Horsager: BONUS report this year, the social media time bomb, I know you even said something even just to touch on it here as we wrap things toward a close, you said something social media is business rebellion is coming.


Joel@BullseyeCap.com 818-917-0670: yeah well actually the that number 12 turned into this 30th trend that we kind of blew out as a special report because it was so important.


Joel@BullseyeCap.com 818-917-0670: You know a lot of companies have gotten really enamored with social media.


Joel@BullseyeCap.com 818-917-0670: and social media it’s a great thing they’re great things about it but it’s very dangerous and i’m not talking about dangerous for people.


Joel@BullseyeCap.com 818-917-0670: Like netflix had that docu drama some months ago that’s not what i’m talking about i’m talking about for businesses.


Joel@BullseyeCap.com 818-917-0670: A lot of businesses are building large communities online, which sounds like it’s just a fantastic idea it’s a great thing, but at the end of the day, what they realize is then they make a post and nobody sees it.


Joel@BullseyeCap.com 818-917-0670: And they don’t see it, because the Facebook and the linkedin and these companies are very smart.


Joel@BullseyeCap.com 818-917-0670: And you know they’re not going to let you, you know build your your community and then advertise to it for free, I mean it’s their real estate.


Joel@BullseyeCap.com 818-917-0670: And, and so one of the questions I asked people is you know, would you build a multimillion dollar mansion on real estate that you rent on a month to month basis.


Joel@BullseyeCap.com 818-917-0670: I mean, nobody would do that that’s ridiculous but that’s what they’re doing on Facebook as they’re building these communities on real estate that they do not own and they don’t have any control over so when they go to put an ad out there.


Joel@BullseyeCap.com 818-917-0670: Of course it gets throttled there you know and i’m not you know, not even an ad when they go to put a video or a message it gets throttled so hardly anybody sees it.


Joel@BullseyeCap.com 818-917-0670: And then they pay and still hardly anybody sees it, because people are inundated with you know many things you’re not the only thing in their feed.


Joel@BullseyeCap.com 818-917-0670: So they’re seeing all this other stuff and so your message is getting lost in a sea of other.


Joel@BullseyeCap.com 818-917-0670: of other things, and it just it’s a big mess and then, if you decide, you want to migrate to another platform.


Joel@BullseyeCap.com 818-917-0670: You can’t take the people with you because you don’t have email address you don’t who they are, so the most important lesson for companies is they have to pull.


Joel@BullseyeCap.com 818-917-0670: Their communities off Facebook and into into their own ecosystem.


Joel@BullseyeCap.com 818-917-0670: And you know, David of you and I went fishing, we put the line in the water, and the fish would come on and would bite the hook we wouldn’t leave the fish in the water, we would pull the fish out of the water and put it into the boat.


Joel@BullseyeCap.com 818-917-0670: And that’s what companies need to learn how to do they need to learn how to hook, the people using social media and then bring them into their own ecosystem in some other way.


David Horsager: And is that really important yeah is that gonna be a your own built Social Platform just for your community is that going to be.


David Horsager: Live email how you gonna stay in touch i’ll.


David Horsager: Go back.


Joel@BullseyeCap.com 818-917-0670: And a minimum.


David Horsager: So used to go into Facebook, are they going to come to your little ecosystem in mind.


Joel@BullseyeCap.com 818-917-0670: Well then, it’s not that they may not come there.


Joel@BullseyeCap.com 818-917-0670: But let’s say that you know they go to Facebook, they look at some stuff, but if you have something important and you want to send it to the people.


Joel@BullseyeCap.com 818-917-0670: You want to be able to control the sending part so that means that if people come into your ecosystem and you bring them into your world at the least.


Joel@BullseyeCap.com 818-917-0670: You could send them an email, I mean there are maybe tools that are developing that are already exist that are better but, at the very least.


Joel@BullseyeCap.com 818-917-0670: If you don’t pull these people into your own orbit your own new ecosystem, the whole planetary thing about, whatever your company is big or small.


Joel@BullseyeCap.com 818-917-0670: you’re not going to have the ability to communicate with people on your terms you’re going to always be subject to somebody else.


Joel@BullseyeCap.com 818-917-0670: And you know large companies are just fantastic and protecting their IP they protect all their stuff they have lost control of the communication their relationship with their customers.


Joel@BullseyeCap.com 818-917-0670: and talk about a breakdown and trust that’s a really serious place because if you can’t communicate with your people you can’t let them know what they need to know about you, when you want them to know it and it’s very problematic.


hmm.


David Horsager: Well, there is a whole lot more here for those of you interested, you can text trend to 72,007 2000 and you can get joel’s whole trend kit.


David Horsager: And the bonus social media kit and a whole lot more i’m going to give you the bonus round questions that we often ask just a few of them at least just because that’ll be fun before we get there, where else can we find more about Joel block.


Joel@BullseyeCap.com 818-917-0670: And you know what go to go to Joel block car.


Joel@BullseyeCap.com 818-917-0670: yep that’s good.


Joel@BullseyeCap.com 818-917-0670: Job black calm very simple.


David Horsager: love it and in your own advice come to your own place don’t go here on linkedin first are there on whatever, even though I know you’re on as.


Joel@BullseyeCap.com 818-917-0670: that’s it.


David Horsager: Alright let’s jump in here just a little bit for fun what’s a favorite book or resource right now.


Joel@BullseyeCap.com 818-917-0670: i’m favorite book.


Joel@BullseyeCap.com 818-917-0670: I like I like I like nonfiction, although I haven’t read recently i’ve been doing, I just listened to a lot of podcasts I listen to the Wall Street Journal every single day.


Joel@BullseyeCap.com 818-917-0670: I there’s a couple other ones business wars which are the strategies of different companies have used over time to you know to you know go to you know go to war battle.


Joel@BullseyeCap.com 818-917-0670: there’s a couple leadership podcast and I like I mean there’s some podcasting is spectacular I just love it I love what we’re doing right now and I loved I love to consume them as well.


David Horsager: Great you know favorite favorite like tech gadget or APP right now.


Joel@BullseyeCap.com 818-917-0670: God, you know there’s probably let me look at my phone here real quick because.


Joel@BullseyeCap.com 818-917-0670: Somebody I can’t even hardly remember but.


Joel@BullseyeCap.com 818-917-0670: You know what i’ll tell you there is for my business.


Joel@BullseyeCap.com 818-917-0670: I use zoom I get the transcripts all set up on order and then I put everything into evernote so everything is everywhere, I go, I mean I just I really love the cloud computing.


Joel@BullseyeCap.com 818-917-0670: thing where everything is in one place, I can send you a link to the note and then all the transcripts the links and everything is in one place, I love that system it works great for me.


David Horsager: love it.


David Horsager: If you’re going to give someone a piece of advice today.


David Horsager: One piece of advice for let’s say leaders.


Joel@BullseyeCap.com 818-917-0670: Well, you know.


Joel@BullseyeCap.com 818-917-0670: I think that, based on when I when I just said, you know earlier today is number one you know people need to be specialized it’s in their interest to be specialized.


Joel@BullseyeCap.com 818-917-0670: And you know show them some show them some care demonstrate that you care about them it’s not enough to be visionary it’s not enough to.


Joel@BullseyeCap.com 818-917-0670: You know just to lead and direct and be the good casting director, but you have to care about people, people, people need a little bit of attention we just people are there they’re good they’re alive they’re real and they just need a little bit of tlc.


David Horsager: Care yep human humanized.


David Horsager: So you can find more about gentle block at Joel block.com you can text trend to 72,000 last question of the day Joel, who is the trusted leader show who’s the Leader you trust and why.


Joel@BullseyeCap.com 818-917-0670: You know I trust my attorney.


Joel@BullseyeCap.com 818-917-0670: I mean you know I mean he’s not a famous person, but he he gives me good advice I trust his advice you know I understand the parameters our relationship.


Joel@BullseyeCap.com 818-917-0670: there’s not a lot of conflict there’s not a lot of you know phony baloney there it’s just it’s it’s real and we have a really good relationship when we do a lot of a lot of work together so you know I need a lot of protection and he provides me a lot of protection.


David Horsager: love it nothing like it, you know that the you can find all these ideas and show notes, I will say this about that you’re trusting your attorney.


David Horsager: there’s nothing like having a great team that you can trust around you right from attorney to financial to advisors to mastermind we’ve been in my group together, so no doubt about that.


David Horsager: So for anything mentioned in the episode just go to trusted leader show calm for the show notes, this has been the trusted leader show with Joel block, thank you for being here until next time stay trusted.

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