And finance, they call that the lemon theory. The limit theory basically says if you won’t do it, then I’m not gonna do it. That’s all the limit theory says. It says, if you tell me to, if you sell me a car and you say no, wanna ask all this question, this is a consciousness exercise. If you’re trying to sell me a car and let’s say you come to me and you say, hey, boys, I got a great deal for you.
It’s a 2,024 Mercedes Benz with fresh out of the factory with wood paneling, leather seats, you know, nice air condition and just, you know, just like all the bells and whistles, you know, I, it’s a AI is infused in the car. It pack practically drives itself. And it’s just amazing for your whole family. And I got a special deal for you. I’m gonna give you this car for $12,000. So it’s a 2024 Mercedes Benz, top of the line.
It’s a big S6500 series or something, and it’s brand new out of the factory. And I’m gonna give it to you for $12,000. What should be the first question that you ask if somebody makes an offer like that to you? What should be the very first thing that you ask? Okay, I see.
I think Natasha says, what’s wrong with it? Let’s see here. Chelsea says, what’s the catch? Derek Mackle say, do you own one, right, though, in more specifically, the first question you should really ask is, I, it’s similar to that is, okay, well, if you’re so great, why are you selling it? If it’s so great, why don’t you have one?
You know, if you’re so great for me, they, you know, w, why are you, you know, why are you asking me to pay for it and buy it, but you didn’t get one? And, and then if you ask a question like that, and then if the answer is like really flimsy, like, eh, well, you know, I’m not, I don’t like mercy. I don’t like nice cars, you know, and I decided to get something different for myself and I would drive one. But, you know, hey, I just, you know, I don’t know. I just kind of think it’d be better for you. Well, you know, little flimsy answers like that would kind of tell you everything you need to know.
That that would, it would tell you that the fix is in, that there’s something going on here that isn’t quite right. Maybe you’re scamming me for my money. Maybe you are gonna do a bait and switch. You’re gonna give me something completely different from what I purchase. Maybe the car is a lemon, right?
Actually, yeah. So with that lemon theory, they basically say that you can tell what people’s incentives are by what they’re doing for themselves, that you really, and in fact, actually it happens in investing.
Did you all know that there’s a reason why whenever the CEO of a company starts selling the stock, what do you think the stock price does if all the insiders in the company, the insiders who have special information, what happens when all the insiders start selling the stock? I’m gonna give you a second to guess. Does stock price go up or does it go down? What do you think? It goes down because a lot of people, when they’re not sure what to do next, they look at the people who have more information than them and they look at their, and what they’re doing. And that also is, another theory is called signaling, basically says, look, I’m just gonna watch what you do.
And if you know more about this company than I do and you don’t wanna invest in this company. I’m not invested in this company. You know, if this is something to consider too, when you’re asking people to support your business. Well, you got this great idea and you’re like, hey, I need you to put up some money so I can pursue this idea. A smart person or smart business person, first question they’re gonna ask you, at least that’s the one I the question I ask and I say, okay, well, how much did you invest in this?
How much blood, sweat, tears and money have you put into this? I know you’re asking for my money. What did you do? Tell me what you did first and then I’ll tell you what I might do. You understand?
You see what I mean and what, and you be amazed how many times I’ve been pitch business ideas, where the person pitching the business idea has not done anything. They they haven’t put in any time, they haven’t put in any money. And I’m serious that thinking. Okay, so you want me to put in my time and my money and I don’t even need any of this. Like I’ve already, you know, made the investments. I’m already, you know, the reason you’re even calling me is because you know that I probably have some still stacked in the back.
I don’t need to even be here and you’re asking me to put up all this stuff. And what did you bring to the table? You brought an idea to the table. There’s a billion good ideas everywhere. Ideas are, you know, ideas are. Diamond doesn’t honestly.
Not that all ideas are equal, but the, so many people think that because I came with the idea, that’s the same as actually doing the work. That’s not true. If you have an idea, you have to give life to that idea. You have to give birth to that idea. Coming up with an ideas like having sex, building a business is like raising a baby, raising a child.
And some people think that because they had sex that they’re actually parents, you know, parent just cuz you had sex. Anybody can have sex. It doesn’t take that long. Are you? Whatever, you know.
So how in the hell, you know who taught you that? Who told you? They’re simply coming up with an idea. That’s the fun part. That’s the sex. Okay. Yeah, coming up with the idea.
Who told you they coming up with the idea is the same as actually investing in something and building. So like, who told you that you can get all the rewards without taking any of the chances. So one question I would ask you is, who also told you that you should not have to invest in yourself? I mean, really, I mean, if you’re not willing to invest in yourself, then what makes you think other people will invest in you? If they’re smart that they’re gonna know.
This is the signaling theory. When you haven’t invested in yourself, well, that tells you that even you don’t think that you’re a worthy investment when you don’t invest in yourself.
That’s a message to the world cuz you know you better than anybody else. You know you better than anybody. So when you did not take that step to put out any money anytime, any consistent work toward building this great idea that you have the, and yet you’re asking other people to get on board.
What, you’re asking them to invest in you so that you gain enough confidence to invest in yourself or that doesn’t work. It doesn’t work that way. You have to be the first one to step out there and allocate your time, energy and resources toward whatever it is that you’re doing. And you have to do a lot of it, and you have to do it consistent. And you have to assume that then maybe Superman will never arrive. You know, I almost think about the road to success like being at a bus stop. And you’re on the bus stop and you’re looking to get to a destination.