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Podcast Episode Summary
Startup Stories - Mixergy
Episode
#2273 What Happened to Our Partnership? Description: In this episode, Andrew Warner discusses the evolution of his partnership with Jesse Pujji. They explore the initial excitement of their collaboration, the challenges they currently face, and Jesse's current business focus, including his ventures in AI and investment strategies.
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Key Themes and Discussions
- Evolution of the Partnership
- From Camaraderie to Challenge:
- Initially, Andrew and Jesse maintained a close relationship filled with frequent communication and shared excitement about their business potential.
- Over time, they noticed a shift, feeling disconnected and questioning their commitments to the partnership and each other.
- Business Arcs and Seasons:
- Jesse explains that every business and relationship goes through different phases or "arcs."
- Recognizing these cycles can help partners understand the dynamics at play.
- Zone of Genius
- Identifying One's Strengths:
- The conversation centers around the importance of understanding and committing to one’s "zone of genius," which refers to the areas where individuals feel most energized and effective.
- Andrew and Jesse discuss how they each struggle with acknowledging their strengths and balancing their creative impulses with operational responsibilities.
- The Importance of Commitment:
- Jesse shares insights on how he learned to commit to his zone of genius after stepping back from his role at Ampush.
- He emphasizes how essential it is to focus on what truly energizes them instead of getting bogged down by tasks that drain their energy.
- Navigating Responsibilities and Relationships
- Communication and Responsibility:
- The episode discusses the concept of "100% responsibility" in relationships, where both parties should feel empowered to negotiate their needs without fear of imbalance.
- Andrew recognizes his tendency to "hero" others, taking on burdens that may lead to resentment.
- Business Strategies and Future Aspirations
- Exploring M&A Opportunities:
- Jesse expresses a desire to explore mergers and acquisitions instead of starting new businesses, citing the challenges of launching new ventures and the appeal of acquiring existing companies with momentum.
- He mentions the potential of using AI to enhance business operations and marketing strategies.
- Investment Insights:
- Jesse outlines his investment strategy, highlighting a balanced approach with a mix of index funds, private equity, and real estate investments.
- He discusses the importance of being open to new opportunities while also being mindful of personal energy levels.
- The Role of AI in Business
- Future of Work with AI:
- The conversation shifts towards the impact of AI on business and entrepreneurship.
- Jesse shares a sense of excitement about the ongoing advancements in AI and its potential to revolutionize industries, particularly in marketing and operations.
- Personal Growth and Spiritual Journey
- Shifting Mindsets:
- Both Andrew and Jesse touch upon their personal growth journeys, especially regarding their relationships with money and spending.
- Jesse notes a shift from a scarcity mindset to one of abundance, allowing him to enjoy his success more fully.
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Key Takeaways
- Recognizing the phases in partnerships can lead to better understanding and improved communication.
- Committing to one’s zone of genius is crucial for personal satisfaction and business effectiveness.
- Exploring mergers and acquisitions may provide a more viable route for business growth than starting new ventures.
- The potential of AI presents new opportunities, emphasizing the need for entrepreneurs to be adaptable and forward-thinking in their strategies.
- Shifting perspectives on money and success is essential for personal and professional fulfillment.
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Conclusion This episode provides insightful reflections on the dynamics of entrepreneurial partnerships, the importance of self-awareness in leveraging strengths, and the evolving landscape of business strategies in the age of AI. Jesse and Andrew's candid discussion offers valuable lessons for entrepreneurs navigating their journeys. ```
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:28Hey there, Freedom Fighters. in the last year. I feel before we were working together, there was a lot of like buddy, buddy text messages. And you're killer at that. I keep trying to do that. And it's not fully me, but I'm getting closer. Then we were in like building infinite possibility land together. And that was really exciting. And then it got to this, why the fuck is Andrew not doing this? And me going, why is Jesse constantly coming up with different ideas all the time? and it went from buddy-buddy to world of possibilities to this, I don't know. How would you describe where it is right now?
1:10You know, I think every business has, and every relationship has different arcs and seasons, right? I think that's where I start with it, which is like that's somewhat, it's not totally abnormal.
1:24I think that it's been interesting from my vantage point to watch you sort of the creative genius version of you versus the businessman version of you they're pretty different and I think from my vantage point it was like oh there's this creative genius who just saw something in me and part of the reason I wanted to start doing this podcast with you is that we can actually get out and get back to that get back to the things that make us make you great, make us great together. And versus the, you know, I think the side of the business stuff is like, oh, you're running a business and like, you want to run the business, like I would run the business, but that's, you're not me.
2:00So you're not going to do that. So it's going to feel weird to you all the time. And it's never going to feel great. And like, I think a big part of this whole thing working well for me with everybody is, is like letting them be the best version of themselves, not like a shitty version of me or my methods. And so it's constantly like a question of how do you take those absorb the stuff but make it your own uh and i think that's like a there's a lesson there i think for anybody building that's been a big wrestling match for me like how much do i amplify who i am and how much do i take a step back and say no jesse's got a different approach here that i'm trying to learn from knack has a different approach that i'm trying to learn from rachel has a different approach how the how do you integrate how much do you integrate and how do you just amplify the part that's that's mine how do i amplify the part that's mine that's been challenging yeah i think it starts with knowing what your zone of genius is and and it's like in some ways you can say that's a difficult thing to figure out in other ways it's like well what do you feel most energized and excited about what do people compliment you on the most what like you know in your case i think it's pretty obvious it's like you're amazing at at directly supporting and networking getting showing entrepreneurs and helping people do that i think you're amazing you have a great taste and content eye and perspective you're very curious like you've got all these things and even as you look at your history your career and all that like it also becomes very obvious and i think once you're clear about that and you're willing but you know it and you're willing to stay inside of it like the second part the harder that's been the hardest thing for me i like learned my zone of genius at ampush but i wasn't actually willing to commit to my zone of genius until i probably started gateway x what was your zone of genius and what could you not like what what did you do outside of it that was hard to break like i knew i loved coaching and teaching people i knew i liked starting new things and kind of the like the entrepreneur energy i knew i liked learning new things or and and building relationships and developing relationships but when we were at ampush like we tried we tried investing in startups off of our balance sheet we bought a company we um we uh we we launched and something called ampush x believe it or not It might sound familiar because I was like, oh, we're going to go start a business.
4:12And so I knew what I wanted to do. Like it was very clear to me what my genius was, but then I was still the CEO of the company. And so Ampush X went nowhere because it was like a weekly meeting with me and two employees who were not staffed on any clients. So that like, oh, let's go start a new business idea. And it just went nowhere because I wasn't engaged at the level I needed to be because I would like every time a client called, I would run away.
4:36and you know when I like left as CEO Rick actually he gave me sort of his feedback which was right as it always is which is like he's like no you should stay a CEO like make John the GM of Ampush and get it out get it off your plate so you can go do whatever it is you want to do but don't you know don't fully give that up and in my case I just sort of said okay I'm out like it's not working I'm out I'm going to go start something brand new but willingness to actually stay in your zone of genius because when something goes wrong somewhere when a client's not happy when something's breaking when you know you know this because you you see that issue and so the thing i see in you is you kind of know your genius but you're not willing to commit to it and usually you're not people aren't willing to commit to it because they don't trust they don't trust that they know my genius and i also feel like i'm the person who does the everything i i have to go and do every part of it and show people that i'm a part of it and partially it's because i love being with people like you know we've got but let's start with something like what what are the what's the things what are two or three things we don't need to nail it perfectly what are two or three things that you know you're really good at that also energize you
5:43i got two one is i do love this what's your problem customer discovery let's talk through and iterate it together and the other one is how do i bring people together persuade them to try this new thing, you know, they're kind of similar, but those are, those are the big ones. And, and what are things that you know, actually, you're not actually that good at and they de-energize you? Writing a first draft of anything, even though I feel like, all right, I know what to say and I should just be, I could tell a writer, this is what the first draft should be like. And then I go, no, I should just go do it because now it's taking too long to even explain to them.
6:25That's one example for sure. So how many times have you done that in the last year to date? The only reason that I can't tell you infinite number of times is because I just broke. I couldn't keep sitting and looking at that. But you've done it a lot. You've probably spent 20, 30 hours of your year doing that. That's fair. So are you willing to just commit to not doing that? You know, when you say that, I feel like such an irresponsible prick. Why can't you just sit down and type out what you want to do or what you want to say? why does Jamie have to write the first version? Well, but herein lies the issue with why it's so hard to commit to.
7:04You can know it. Now, you literally know it. And we got very specific and tactical. You know you like bringing people in and doing things, but you're not. And so the whole framework is like you're at 75%, 80 % of your time is in your genius. And you're clearly not there. You're at 30%. So not only are you less effective, but you're also more burnt out. and what keeps you there what keeps everybody there is the stories and it's scary like when I started gateway x like the first time I saw adrian doing something weird I wanted to grab the steering wheel from her and go no no no no go here right or like one extreme version is grab steering wheel from her another version is like yell at her to tell her what to do and and like none of those are right because those aren't those just aren't like they would have led me down this other path right and and I think it was hard and it still is hard sometimes to commit into my zone of genius and be willing to go, no, I'm not going to like go run the staff meeting for growth assistant.
7:56I'm not going to go pitch the client on the upsell. Those are, those are two things that are, I would pull my zone of excellence, by the way, like pitching clients for sure zone of excellence, like does it, you know, doesn't necessarily energize me. Sometimes it does, but, but doesn't often energize me, but I'm amazing at it. Um, and so I think that it's, it's a pretty high bar and it's a pretty, in some ways, I think most people just kind of like roll their eyes at it being unrealistic. I think it's one of the most life-changing things that I've done for myself. I do feel it's like it's understanding and persuading is probably it.
8:31Like in one moment, it's the understanding through customer development. What's the problem that they can't solve? How would they want help solving it? That's customer development. The other one for me is persuading. Like I wanted to have this dinner tonight here. I wanted to have the speakers of the a conference to come over to my house and i knew that there's like a path to doing it understanding to persuading those are the two what would you say yeah there's something else though yeah there's you're seeing well i'm thinking in myself yeah i mean that there's have you done done the genius exercises no i'm afraid of doing too much with dave cash in by going okay help me plan and i got updates for you on that help me deal with this other stuff and also help me deal with zone of genius.
9:14So that's why I put him to work. I mean, that's his job. Um, I'm like his Chirag. I like, I get everything I can out of him. You know, you are really good at that. So I keep telling Chirag, here's what I'm watching with a Jesse does. Like, for example, I always thought you have a coach like Dave Cashin working with me. The thing is I have an hour with him every two weeks. That's the limit of what we pay for. That's the limit of what we have. And you said, go text him in the middle of the week about this thing. And then you said, if you're having an issue, just message him right now. I go, but text, he goes, it's too much.
9:48And you said, he's an adult. He'll tell you if it's too much. I actually have a question for you about that. I don't know if now's the right time, but okay. You will say, ask this person to do the thing. They're an adult. They'll tell you no. I get that. And I do think I need to ask more, but I wonder if you realize the power that you have over people and their inability to say no to you. And maybe that's on them that they should learn. But if you're asking, say, a writer to also edit something else or video producers also, they won't say no to you the way they might say even to their mom, no, they feel like they want to please you.
10:24And that's, what do you think? Yeah, I think, I mean, look, I think it's important. There's two pieces to this, right? One is like this concept, I think, from conscious leadership around 100 % responsibility, right? Which is like, when there's between two people, there's 200 % of responsibility and we should each take our hundred percent. And if I, if I worry about asking you for something that I'm taking more than my hundred percent in our relationship versus you being independent and me going, Hey, Andrew, will you do this? And you go, no, I can't do that right now. I can do it tomorrow or whatever that trend.
10:57So I think, I think practicing that as a general frame is really valuable in every relation, even in your marriage, like the, the concept, you know, the, the, the lingo that people use is, is heroing someone, right? If I asked my wife, can you wake up in the morning and, uh, cook me breakfast and take care of the baby and drop the kids off. And she's like, well, he's tired. I'm going to hero him. Like I'm going to do that even though I don't want to do that. That's called heroing. And when you hero someone, you're taking more than a hundred percent responsibility for, for like your relationship dynamics.
11:27And what happens, what do you think happens when you do that with someone? I think if I'm heroing someone, I, there's resentment that just, you build resentment and then you break the person. That's a hundred percent what happens. Right. And, and so it's not like, it's, it's not like it's costless. Like, yes, in the moment, it's easy to hero some situation, right? The opposite of heroing is like either blaming someone or you're pulling back and being the victim and saying like, I'm not going to, I'm not going to do my part here. I'm going to, I'm going to run away from this. And that's kind of this whole concept of a hundred percent responsibility on both sides.
11:58So I think I like to stand for the concept of 100 % responsibility, which is, which is, yes, I can ask for anything I want. And you can also tell me yes, no, maybe, or negotiate it back. And so some of it is just teaching people that and getting to know it, I think. And with that said, I think that, you know, you do have to be mindful of power dynamics, um, for sure. Right. And, and I think like power dynamics in for, for a junior employee versus whatever, like calling it out, it's okay to say no here. And I want to ask you for what I want. So the idea behind it is, is to, is to create the space, but not like a, you know, sometimes people call it negotiating against yourself.
12:35If you already start to go and say, well, I don't want to put pressure on them today. So let me wait till tomorrow to ask them. And you're all of a sudden you're playing all these games that are very actually energetically draining. If you think about it, cause you're like, well, I don't want to ask that person now. Let me ask them tomorrow. And this person, this, and then, and you kind of just go, Hey, you can say no to this. And I want to ask for my a hundred percent. Uh, Dave sent me this thing one time that was like, ask for your a hundred percent, a hundred percent of the time, be willing to hear no and negotiate for a win-win.
13:02And I think that's the best formula version I've heard of it. Always ask for a hundred percent of the time you ask for your a hundred percent, but you're also willing to hear no. And then you're, and then both parties are willing to negotiate for. And if you think about where it breaks down at one of those things, either you don't ask for your 100%. That's one way it breaks down. You don't do it 100 % of the time. So you only do it some of the time, right? You're not willing to hear no, or both parties are not willing to actually have the conversation around a win-win, right? And if all four of those things are true for both people all the time, it's an incredibly healthy and empowering relationship.
13:42And I think it's important to train people. And the best way that I've done that, by the way, as a leader is like, I let people say no to me. And I'm like, Oh, I'm so glad you said, okay, let's, but let's find the win-win. Like what's okay. You can't get it done today. Let's get it done tomorrow. Or like, can you stop doing that other thing? And I think once you get people trained in that way of being, it's like highly addictive. I like the, you could say no to me, but I'll ask you for the a hundred percent. I do think that makes it easier for me to ask for things. Um, cause I do struggle with that because I feel like I want to protect people.
14:13And part of protecting people is protecting them against imaginary problems that they don't even tell me they have but i'm assuming that they don't want to take on this extra responsibility and sometimes it's the opposite they do want more but here's a here's a here's one that might stun you andrew is you're taking on the hero position can you see that i do that all the time what does that but does that mean you think about the other person that they need my protection because
14:41if you're on the hero spot where can they be than me correct you know i do you're treating someone like a victim you're literally saying someone is less than you when you take that posture you're putting them beneath you not only do i do that sometimes i do that intentionally as a way of building myself up like i'm gonna do this because now i'm seeing how strong i am and it's it's little things like i'm gonna show how strong i am at doing this work and that maybe you need to get done. Sometimes it's, I'm going to show you how impressive I am that I can now drink you and still show up the next morning to go take care of the baby.
15:15And you're not even checking on what I'm doing with the baby. You don't even know that I have a baby, but in my head, it's like the way I build myself up. Yeah. I mean, and that sounds consistent with the pattern and you're, you're a three in the Enneagram. You're like, you have some deep fear that you're not enough or that you have to keep proving yourself. And so these are all these various ways that you keep trying to make yourself better than everybody else. Yeah, I do. Yeah, there was when we were doing that 833 meeting with other founders, and there was another one who was a three. And I said, not only do I need to know that to have people tell me that what I've done is great, it has to be absolutely irrefutably great.
15:54And I need like evidence. And then I could go, okay, this is good. Which is why running is good, because I could finish a marathon and know, okay, I hit this number and I'm good. But if you just say, Hey, great work, Andrew. I like this article. I'm like, did you, how do I know that it's really right? Where's the metric? Where's the outside proof? Where's the rigor? By the way, I'm drinking a shake now. I've been, you know, I've been working on how much I'm eating. How the hell do you not eat all day, especially with the stressful work that you have and everyone else dumping their problems on you?
16:26The shake is, is not even doing it for me no i'm not i'm not i've still another two or three hours till i have my shake yeah don't you feel like you get stressed and so the worst thing about working from home is there's always food around though i remember the gateway x office also had my like number one snacks which is like nuts and seeds that kind of a thing how do you how do you go to whatever what are we now 12 30 without eating especially when other people are dumping their stress on your head I go till two or three I think as long as I stay busy I think on these calls or whatever like I I don't really I find the easiest thing for honestly once I start eating I find it hard to not keep eating during a window but as long as I'm not eating a lot of liquid coffee and water I feel like I can I can really block it and then I can and then I can start eating yeah there's something about having a no in my head I know I'm not eating until noon so it's not a question anymore.
17:22Yeah, exactly. I think that works in a lot of things. All right. So you were saying that you see the genius that I'm not noticing. How, how do I get to notice this? I mean, there's a couple exercises, right? One is there's, there's this exercise that CLG people have, which is just email the 20 people in your life and ask them like, when have you seen me most energized? What do you think I'm best at? And by the way, they say that genius is like asking a fish if they're a good swimmer. They don't even say, they say, what do you, what's water? I don't even know what water is. So I don't even know what you mean by the question.
17:56Like when you tell me that I'm so good, like riffing off of people and giving them feedback, like it just, it's so natural to me that I don't even realize I'm doing something like that. And so you, I think getting other people to reflect it back to you is a really powerful way to figure out what your genius is. There's a couple other exercises of like reflecting on times you worked your best. There's the energy audit, which, you know, you look at when, when you've been energized versus not. I had to do that actually. Before we were working together, you gave that to me. And now I want to go find that notion doc where it basically what I was doing was keeping track, keeping this notion doc on my computer all day.
18:30And anything I did, I would mark what I was doing and then write whether it gave me a reduced energy. Well, there's something about you, Andrew, about information and content that you have a genius around. Like you can, it's some of it's, you have this unique curiosity where you constantly ask questions or you, you, you sort of probe and ask these questions. Like, here's an interesting example. We had that very private conversation with Rick Elias where he shared a really private thing about himself and was like, you know, and he wasn't going to do that. He just said, I had a tough, I had a tough couple of years and everyone was like, okay.
19:04And everyone was satisfied. And you were like, oh, give me a real example. And then, and then the example he shared, we were all in tears, right? It floored all of us. but like so there's something you and i think the same thing with me you've done that a lot of times like i think the whole sales accelerator was a function and many much of what bootstrap giants is is you you doing that you found these situations where you've been like um well hold on wait how did you get that meeting how did you meet supercell like what was that client and and there's something that you're really naturally good at digging in uh that i think is part of that and then you find an angle or you find the unlike you then connect it with people who need it the most and I think there's an element of that too.
19:42But yeah, I think you shouldn't undervalue your taste and your ability to kind of like see something content-wise or information-wise other people don't see. Yeah, I see what you mean. Do you feel like you're, I know you took this big change in your life this year where each business was going to get one day. I know that your calendar was chaotic. Do you feel like this is reducing the chaos and allowing you to live in your zone of genius? That's a good question.
20:15What? So I think the context switching has been helpful. To not have to go from Aux one day, on the same day Aux, Bootstrap Giants. In the morning and then Bootstrap Giants in the afternoon. And I think the clarity for everyone else has also been super helpful of just like, if you work on Aux, you're like, Jesse's available Tuesday. This is a great topic to talk about because it's very present for me right now. I think what it has also led to is that like everyone crams everything into those, these days. And then my days end up these three, the Monday, Tuesday, Wednesday, end up feeling like crazy for me.
20:51And if I'm a little off energy wise or I'm not fully there present, like I, it definitely just drains me by the end of it. And then I think what's happened with Thursday and Fridays is, you know, Friday has become this like marathon networking or like all the other calls basically get dumped into that day. but then, you know, it just ends up with the situation where my calendar is completely packed. And it's not even that I like want to get any work done. You know, I don't like doing work. Like that's not a thing I like to do, but it's, it's honestly like, I, like I'm, I'm more, more I'm growing in my spiritual journey and my personal journey, like type seven.
21:26One of the things about the Enneagram type seven is they like to fill their calendar with things. Cause if they have free time, they literally feel anxious. So they're like, it's a way they avoid feeling. And now that I'm like more in touch with my feelings than I ever have been, I actually find the, that I don't like it as much. I just want spaciousness. Like I literally want an hour where nothing is booked where I can, I can putz around and like not do anything or pick up something that I haven't done in a minute or read. Like another thing I realized is like, like listen to podcasts or read, read stuff.
21:55Like I don't, I don't have any time in my day for that stuff. And that stuff I'm like it's it's better in some ways but it's not fully uh it's not fully where I'd like it to be I don't think yeah I feel like you're not quite where you need to be where I think you're your genius is in coming in and doing what you did this morning for our members where they had this problem and you came in with this like light bulb solution for them and that that's where you're great and i feel like instead we end up putting you into look at these slide sessions and why don't you give this kind of feedback on this thing saying the thing you've said 12 times before yeah i mean the way i would describe it at a high level is i think i'm still pretty heavily operationally involved in all the businesses and i think I think that's probably more zone of excellence stuff.
22:55And I think some of it is I'm also, the flip of it, by the way, is like, you know this from the Dave work. I can resist the reality of where we are now. I can change the reality of where we are now or my willingness to participate in it. I can say, guys, never mind. I'm not going to do this. I'm the chairman. You get two hours a week with me each and talk about your problems and I'll help you build a business. That's all I do. That's one way to solve it, which I could do. the other flip of it is like no that's this is like where we are right now as it is like this is where the thing is right now and accept where it is and show up with 100 against it and i think like when i look across the businesses like you know carolyn just started doing marketing for growth assistant you know they they just finished kind of a one big cycle of iteration she's figured out what channel she wants to prioritize she's doubling down on those like hopefully within the next few months there's going to be more of like a emotion there that's that's going right so there's certain things that we've growth assistant that's like they're operationally involved ox right now is i'm engaged with the case teams i'm helping casey recruit some senior people those are pretty operational things but like again they should create more scale like some more like independence of that business and bg we're you know we're figuring out various things we're still making content so i think part of it is also just accepting where i am right now in all of this and like it being like it's going to be part of the journey of getting it to the point where i can be that zoomed out, I believe, and holding myself accountable to not falling into the trap of next quarter signing up for more operational stuff.
24:26Do you think that maybe instead of launching these companies within GatewayX, it's better for you to just buy companies that have some momentum, but they're blocked, they've hit some plateau? Yeah. Have we talked about that? No. Oh, that's funny. You and I haven't talked about that. This is chaotic, and this is the messy part of entrepreneurship and I can see that you're good and excited about it and it's much more let's make it up which is creatively fun but it's also draining in little things yeah it's funny it's funny we I thought we I mean we've talked about that a little bit maybe like you know we decided not to start a new business this year partially because of all the things we're talking about partially like you know and there's another good sidebar we could take is like I've also learned to trust my energy a lot more.
25:13My energy has become like, I've, I've, I think it took me a while to learn what it was. Then it took me a while to trust what it was, but now I trust it. My energy is like, Nope, don't do anything new. You've got plenty going on. Um, but I, I, I think given that we've got more scale across all of the stuff we're doing now that plus like the, the starting a new business every year, even co-founding with you, co-founding with Casey, like your experience is like, and for Casey for, let's say that first year was tough. The first 15 months was up, but now she's like got a real business. It's got employees and like it, it's not gonna, it's tough in different ways, but my experience has been the slog of the first year of every business every year, which I think I was super hyped about for a minute.
25:52And now I'm like, like just not as excited that might, I might start another business in two years, maybe, maybe not, but it's definitely driven me to going like, yeah, wait, I think I do want to start it. Like, or I think I do think MNA is a more interesting path for me. It solves a lot of things. It solves that issue, right? So you get, no matter how good the idea is, I think ox is one of the best business ideas I've ever had and we've ever built. And yet it still took us a good two years to get it to like some sort of, I call it gravitational force, right? You kind of have to like the first cranks of the shaft you have to do a few times.
26:24And it's, I'm like, man, I'm like a little sick of that slog and I just don't want to do it. I think that's one thing that's driving me. I think the other thing that's driving me is leverage. Like again, it takes time to get these businesses to leverage. Whereas you buy something, you can get a lot more leverage very quickly. and then i think the third thing is uh is like it it will be different for me the expectations will be different for me to work on the business versus in the business like i think co-founding a business with someone there's just an expectation that i'm going to be part of the building of the business whereas if i'm like the owner i bought it it's like oh he's he's not like there's a business that runs and he's sort of helping make it better but he's not in it um and so i think that's that's driving it and i think the other thing we've proved a lot of interesting things Like we've learned from Ox that like growth marketing can be a really effective lever for, for, for businesses you buy.
27:14We've learned from bootstrap giants that there's a ton of founders out there who are stuck and there's like ways I can unstick them and I can actually have a lot of impact from the outside in. So I think there's like all these interesting things coming together. Then there's this whole AI thing, which is another vector we've been spending time on of like, now can you bring AI into the picture? And what does that look like? So I think it does it like I am getting excited for maybe the next season here to be more about M &A and at least to try it like it might not work. But but I'm open to trying it.
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27:42The other thing, by the way, energetically is like wanting to take a big swing, like all these businesses we've started so far, like GA, Ox, BG, they're great. They're all like they were like high confidence businesses that were going to work. I think they didn't feel like hugely risky businesses. And I think like I'm part of me is craving a little bit bigger of a swing. so what's a big swing meaning like um roll up like go buy a 50 million dollar company one that i might totally fuck up maybe maybe i won every two years i don't know like but but it's a big swing it's like no go do go like go go try something like that you don't know how to do that you haven't done that could fail yeah like none of these businesses felt have felt that way that so is this you though going back to the way you were before where you need to risk in order to really perform?
28:33I don't think so. I don't think it's, it's not fear driven. I think it's just like a, it's like a, I feel like, honestly, I feel like fear has driven my decision making around some of the more boots, some of these bets. Like I didn't want to fail. And I think I actually have more of a willingness to fail than I did in the past. To have like, just like a bigger platform and more upside. Like the other, here's another frustration I've shared with NAC that's an interesting one. It's like because of BG and a bunch of things we're doing, we have so many smart people. Like let's use Michael Riley as an example.
29:08We have so many smart people around here and we can't keep Michael Riley because we can't, like we don't have, we don't have enough going on here that can pay him enough and make it upside more interesting and all those things. Like somebody like him problems too. Yeah. And like, we've got, we've got tons of smart people who want to work with, with me and work with us because of this. And I It's like one cool thing about a private equity firm and Ox re-showed me this. Like Ox has all ridiculously smart, motivated people. We're paying them all a lot because it's like a premium business. And I'm like, oh, it's so nice to just work with tons of smart, motivated people.
29:44It's a different type of person. It's like Lauren who you're talking to. She's just a different level of a person in terms of skills and capabilities. I still want to talk to you about both of those. but AI keeps coming up. I'm wondering what you're seeing in AI because the little bits that I see don't feel like they're big and I don't know what you're catching.
30:12I think that
30:17when I first started working with Facebook ads, we were trying to convince brands that they were going to be something.
30:27and they weren't at the time like you could get likes i think they worked for daily deal sites they were these right hand rail ads they were pretty shitty yeah and then one day and yeah we've talked about this in the past i like i love the concept of sandbox entrepreneurship like you find the right sandbox you play in it and you're gonna figure out what's there then all of a sudden the mobile phone became important then the news feed became important and next thing you know you know facebook ads were the most important thing that was out there and so i actually think it's interesting and the hype cycles are what they are and and so on and so forth but i think from what i can see from ai and like in the it's a really interesting situation where the level of advancement is unlike i think anything we've ever seen since maybe the mobile phone or the internet or the pc like it's that level of of scale the hype is even more than the reality like the hype is absurd and i think that's that turns a lot of people like you off that oh there's too much hype there i think the the few examples i invested in this business called figure the robot company and like i know the founder it's a crazy company i mean it's it's like a i invested at a 350 million valuation it's getting valued at 38 billion right now uh it might make it might make me more money than ampush made me um which would be hilarious but the things he's showing me are crazy i mean these robots are teaching themselves what stuff what stuff is the first time they've ever seen it and and when i see that stuff i go okay that is all i believe all that and then you go back to our world and you're like can we make a transcript of a thing can we make a twitter thread no we can't it sucks and actually for me andrew that's what gets me excited because i'm like wait the dfs versus the current reality is so far away that there's going to be massive opportunities.
32:10Now, if we, we're all like relatively tech forward, we're in the circles, we can't figure it out. Think about these like private equity owned businesses that Aux is helping with. I mean, Aux is doing work that's 10 or 15 years old at this point for a lot of these private equity backed companies. Like the stuff Ampush was doing 10 years ago, we're now doing that at Aux for certain of the private equity backed businesses, right? I see. So I just see a massive opportunity of being an early adopter to something that I think is going to be huge, even if it hasn't yet proven out that there's a there there.
32:40Like I see the value in being someone who goes and figures out how to put it into play. Yeah, I talked to Casey from Ox and I said, is there an opportunity to create an Ox for something else? Like what Ox does is marketing advice to private equity firms. And I know she says it in a different way, but she thought, well, do the AI version of Ox. Is that what you're thinking of where you go into businesses, private, I guess, yeah, you go into business. I mean, I would either probably start that as a part of Ox and just make it a practice group inside of Ox. Um, cause Ox already has the relationships and the distribution and sort of indifferent for me.
33:16What we're thinking is like, the first thing I want to do first with growth assistant is actually AIFI growth assistant. Right. And, and what does that mean, Jesse? I, yeah, I don't know what it was. I mean, I could give you examples, but I don't know actually, but that's exactly the point is that I want to go there and go, okay, sales team, what are your problems? Oh, you know, you don't know when to upsell someone. Oh, people are using different scripts. Okay. Can I use AI? And it could be gong. It could be third-party tools. It doesn't have to be, you know, some core language stuff or how, how is Carolyn doing marketing?
33:50How's she writing emails? Let's go try to solve a bunch of problems. And even the product itself, how do we enable the, the GAs to have AI knowledge and what does that do? And at the end of that, there's, there's, you'll end up in one of three places. One place is we tried this for three to six months and it was useless, which either means it doesn't work or we're too early. Right. And I would go, okay, that was great to learn. I'm glad I could learn that before I went too crazy on it with a company I knew and it was low risk. And I own, you know, like the second other, the flip side of that is holy crap.
34:20Like the, the, the DFS for it would be, we double, like I told Adrian, it was like, we double the revenue of the business business without growing costs at all. And if we do that, not only do we have more financial resources internally, but holy crap, now I've got a way that I can go buy businesses or I can transform businesses that like I only, I know I literally authored it with my own company. Right. And then the middle one is like, there's there it's somewhere in between one of those two. And in that case, maybe you start a consultancy, maybe there's some other play that maybe there's the product you figure out that you can turn into a, you know, SAS product or something like that.
34:56But, but it's part of it is you, I, I at least, you know, we, you and I debate this sometimes cause you like to research and talk to people. I like to go do things and I like to figure them out experientially. And I'm like, if it works, it like, I don't want to talk to anybody about this AI stuff. I want to like go do it and I want to see what happens. You invested in this. The other thing that I thought was super interesting is you and you invested in a private equity fund and I saw the amount that you invested. I saw the direct connection. I didn't know that, that you could do that as an individual.
35:32I got to ask you, just give me some, like, what are some of the things that you invest in? What do you do with your money? Um, is this awkward? No, I, no, no, not at all. I don't think, I don't think I do anything that special, I guess, is where I was going to go. Like, I probably, you know, if you say I have$10 million, right, just made that number up. I think of it as, well, there's a couple of different ways I think about this, right, at a high level. One is, like, you have a certain amount of income you earn every year. Let's call it a make-up number. It's a million dollars a year. You spend, say,$600 ,000 a year.
36:13You keep adding some cash every year to that thing. And then what's the portfolio that it goes into. And my DFS is probably honestly like 50 % the index at this point. I'll tell you what I used to do, but like 50 % the index and like 25 % private equity, private credit type stuff, like the private equity fund, or there's some other interesting private credit things and 25 % real estate. That's kind of my DFS. What I've done. Regular real estate is what you'd like to buy. No, real estate funds, real estate funds, or there's like, there's these operators, I can send you an example, but they like, they go buy apartment buildings in Arizona and they have a, you know, a whole system that they use, whatever.
36:49Okay. What I've done historically, you know, we'll see how it all nets out. I think one is if you look at my, like, it's, it's probably more like 20 % random angel investments, which I'm like done doing. Even if this figure thing pays, like, it's just, it, I got attracted to it because I like entrepreneurship and I want to work with entrepreneurs. And I was like, Oh, cool idea. Write this check, write this check. And then it takes forever. and like the liquidity thing is so annoying and such a huge issue and then even and then like you're losing money and you're not really involved with the companies like i just didn't find it to be gratifying at all or exciting or enjoyable um and i think i'm pretty shitty at it like maybe i'll pull it out at the end but i don't know that it's going to have good returns and then the other thing i was doing that i've stopped doing is stock picking similar like i thought i was so smart and By the way, I've made some really good bets.
37:40The best one I've made, dude, is when we were selling Ampush. I can tell you it was October, November of 2022. Okay. Okay. We're getting term sheets for Ampush. And we're getting term sheets at like 10 to 12 times cash flow for the business. This is the final part of Ampush. Final part of Ampush. We're selling the company. And Facebook stock, because, you know, Apple had done that thing where they had changed the data. and basically like, oh my God, advertisers aren't knowing where they're going. Everyone's freaking out. Their stock had dropped to 90 bucks a share, which was six times Facebook's cashflow.
38:17And I was just like, this makes no sense. Why would Ampush, this entire business is built on Facebook, be worth double as a multiple? And then I called John in the middle of this. I'm like, hey, did you figure this out? He's like, yeah, we figured it out. Like we know exactly how to solve the Apple issue now. And of course, I knew Amplish was on the bleeding edge of figuring things out. And so I bought a ton of Facebook stock at$90 a share and look at it today. And you're still holding it on? I'm just holding it. Yeah. I mean, there's... How much did you put into Facebook at the time? Like a quarter million dollars.
38:52Okay. Oh, wow. It is$672 today. Yeah. And you can go back and look at that. But anyway, so that was a pretty good stock pick. I guess I'm not the worst stock picker, but in general, I think the reality of it is outside of maybe one or two instances like this, most of the stock picking I did, it did not go well. I bought some SPACs or whatever. And the index just works, right? And if you just do the math on it, if you have$10 million and you put$300 ,000 in a year, and this is another funny mindfuck of all this stuff is, and you compound it at 7 % or whatever, you're going to have, as long as you keep earning money, even if you don't, by the way, you're going to have$50 million by the time you're 70.
39:31years old. And then the question is more interesting, which is what the hell do you do with that money? Because my, my big issue is like, I don't know what to do with the 10. What am I going to do with the 50? And it's like a funny mindfuck is because you, we spend so much time we're trying to earn money. What are you thinking of? It's, it's been like a weird existential issue for me. I'm like, I don't actually know. I don't want to leave much to my kids. Although that starts to see, that's actually seeming more attractive these days because of all the stewards of it, they actually seem like they'll potentially be the best stewards of it.
40:01Right. yeah, I want to give to charity, but charities even like, as someone who's like a hard nose entrepreneur, I like, look at what they're doing. I'm like, I don't think you're good. You're going to make a lot of use of this money. Well, so should I start my own chair, like my own nonprofit? Like that's a thought I've had, like the gateway X version of, of like a nonprofit. Then you can give it to the government. No thanks. Right. Or you can spend it. And so I've actually gotten the expending has become a more interesting option, honestly. Um, and you know, Did you ever not enjoy spending money?
40:30I do see that you got a second house, maybe even a third, I can't tell. You seem to be actually enjoying the skiing, the relaxing, the taking space. Yeah, I think it's been a part of my personal spiritual journey for sure. I think it wasn't always easy for me. I think you just think it was going to jinx me. Why are we calling it a spiritual journey when it comes to spending money and having fun? Is it just the way you tell me? because no, because, because I think, no, no, no, not at all. I think like, uh, shifting from fear and scarcity around money to, to like abundance and, uh, and love and like openness, like that's, that's the shift that's actually made me enjoy money, not the money itself.
41:13Cause I think before I would be freaking out about like, okay, what are the scenarios here? I need to run them. Or like, I shouldn't spend X on a second house. That's indulgent. It's unnecessary. Like I grew up in an immigrant household. Like that's, that's crazy. Right. Or just like, or like, like buying a business. Like I was talking to my dad the other day and my dad is like a, you know, he's a bunch of real estate that he's built himself in San Diego. And my mom was texting me and complaining because they flew to Dubai where my grandparents, my grand, my grandfather lives and they went premium economy.
41:45Right. And, and so, you know, and I was like why why aren't you flying business he's like it was eight thousand dollars round trip per ticket and Anomaly is like yeah that is a lot like that's offensive even when I say it right now I'm like oh that's a lot of money on a plane ticket and I was like you're this many years old like you know I was like I donate 20 percent of my inheritance so you can travel business class for the rest of your life because you know there's this really good book called Die with Zero that Dave Cashin had me read after we sold Ampush. And it was so powerful for me. Um, because I started to really, and that's why I call it spiritual journey because a lot of it for me has been in, in allowing, like allowing myself to enjoy it.
42:28When you say spiritual, are you talking about like my spirit, meaning my energy and what lights me up or spirit as in like the way that we say religious when we don't want people to think that we're nuts? Neither spirit. I mean, there's some part of the religion, but spiritual means that like, there is a part of me that's not this physical body and not this physical form. Right. And the more we're in the physical form, then money is also, it's like all these things matter. It's like the, you know, it's like when you lose perspective on something, you're fighting with your wife about the pen on the table and why is the pen on the table?
42:57And it's like, how much perspective have you lost? But like day to day, we lose perspective. We'll go, this is my, this is me. This is my whole life. This is everything. My bank account is my life. That is everything. So when I say spiritual, I'm like, no, you let go. once you let go of attachments to that stuff, you, you spend it more freely. Like for me, at least I can't speak for anybody else. Like I, some people spend it out of insecurity, by the way, my mind was the opposite. I was like, no, no, no, I got to hold onto this stuff. Like, I don't want to, I don't want to lose money. I don't want to mess this up.
43:22And as I've gotten a little bit more less attached to it, I'm like, yeah, like spend it. And there's been a bunch of things that have helped with that. Obviously like starting, starting more companies and those being more successful. Like there's been things that have helped me get to that point, but, uh, but spiritual, like the spiritual journey has definitely been a part of it, which is just being more of like, this is not, I'm more than, than this body, than this bank account, than these other things. Why not buy real estate directly? Is there, I mean, is there the same benefit to having someone else manage your real estate, uh, and be a part of someone else's real estate portfolio versus owning it yourself?
43:57I honestly just haven't been able to make the time or get excited about it. Is the honest to God truth. It's, it's on my list as a, like my dad's like, why aren't you buying multifamily buildings? Why aren't you putting real estate? It's the only asset. And I'm like, you're right. And then I'm like, I don't want to go look at a bunch of eight unit buildings and St. Like, or wherever. And then have a property management business. Of course I can do it. I have the energy. I mean, I'm starting a million things, but I just haven't gotten being able to get excited about it. And then I see these guys who are good operators and it's like, this is their business.
44:23Like, let's just write them a check. Like, is your brother doing this on the side? What is he doing? Airbnb or something?
44:33My brother-in-law does a lot of real estate stuff. He's done it since he was like 21. My younger brother works with my dad and owns a multifamily place in San Diego alongside my dad. My older brother and I basically have just never sold a house. So I still have my place in San Francisco. You do? You're renting it out? Yeah, we just rent. I mean, I have a 3 % 30-year mortgage in Noe Valley. That's going to be a great asset. We lived so close to each other and we didn't even know it. That's crazy. I would have thought we'd run into each other at the farmer's market. I like this. You know what? This to me is like if you talk about, I don't know that I would say this zone is genius or not, but this is one of my favorite things to do to just have conversations like this.
45:22And I do feel like our relationship needed this. Frankly, I feel like my wife, maybe I should just do an interview with my wife and then save it in our file. When you came and met my wife, she was like, damn, how did I get so deep with this guy so quickly? And it's so funny because that happens with you and Dave Cashin in totally different ways. Yours is more like a podcast interview where all of a sudden you're like, well, why that? And what do you think about that? And Dave is like, she's crying within 10 minutes of talking to Dave because he just like, he asks a piercing question and then just stays quiet as you know.
45:51And then next thing you know, like the tears just start flowing out. That's so funny. All right. So we're going to do this more often. We're going to post it. And I have anxiety about the numbers about it. I have anxiety about people seeing that it doesn't have millions of views. We should talk about that in a future session. But I have to say, I do enjoy this a lot. All right. Cool. Likewise. Thanks. Bye, everyone. Bye.
From the publisher
Jesse Pujji is the founder of Gateway X, the venture studio. Jesse & Andrew are building Bootstrapped Giants, a resource for ambitious, unfunded founders.
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