As an entrepreneur, my general advice is you want a lot of people who are more successful
than you, certainly Elon Musk is more successful than almost all of us, but he did make
some recent comments on the United States and on immigration that I have to agree with,
and today I'm going to tell you where I think Elon Musk is wrong.
So Elon Musk has been attending some of these political events recently,
and he made some comments about saying that the US needs to be more pro immigration,
because it's a great place to come and bring your business, bring your ideas,
and open yourself up to a lot of opportunities.
No doubt he took advantage of that as an immigrant,
I think he's wrong, I'm going to tell you why I believe that is.
If it's your first time here, I'm Andrew Henderson, founder of NoMed Capitalist,
where a boutique insulting from the help of seven and eight figure entrepreneurs and investors,
basically do the opposite of what he's saying, which is go where they're treated best,
overseas, two other countries often more emerging countries, asset havens, tax havens,
to reduce their taxes, keep more of their money, protect and diversify what they have,
and get seconds of this into making sure that they are always in control.
Elon Musk, ostentally a multiple citizen, I think,
South Africa, Canada, and now the United States has some diversification,
perhaps none of those countries are moving light speed into the future,
but he is diversified and he has options.
Here's why I think that he's wrong, when he says the US needs to step up
and be more pro immigration.
I'm pro immigration, I think people are special with skills,
and I think also people with wealth, which have the chance to move somewhere.
And so when I see countries, when I see blocks of countries like the European Union in general,
let's say we don't want wealth, we don't want golden visas.
Wait a second, do you want investment to your country?
It's an increasingly competitive world.
You should want wealth and you should want talent, okay?
And so he thinks the US needs to do a better job because it is one of the hardest countries
in the world to move to.
My belief in the United States is it's the best place to live if you want a job.
Now, we've had multiple clients of the years who work, like, for example, for Google,
make huge salaries, and many of them have ended up leaving the United States
and going to work in, let's say, Switzerland, for example.
And they find that the huge salaries in Switzerland, from a tax perspective,
from a lifestyle perspective, from just all the benefits on a personal view,
is better in a place like Switzerland than it was in the United States.
They think they're getting more value for their money, they're enjoying their life more.
And so even in some cases, being a very high value employee,
there may be better options if you work for, let's say, a multinational company.
But when I chose to give up US citizenship, my perspective was,
I haven't had a job in a long, long time, and I'm someone who's an entrepreneur,
and, hey, there may be certain benefits of being in the US.
You can go and be on Joe Rogan's podcast or give a speech at some conference,
but for most people, you can just go back to the United States,
you can get a visa, you can go for the visa waiver program.
So you can still go, you just can't be there on the time.
But I realized, I'm not going to have a job, I'm not going to rely on that.
And by the way, even today, even a job can have to be freelance,
it can have to be, you know, pay people working remotely over the world.
So even having a job today, you don't have to live in the United States with the job.
But that was my perspective.
If you're going to move to the United States, or if you're already in the United States,
and you're considering moving, why wouldn't you?
It would be, I want to make a job, a good job, because even many Western European countries,
you're going to make a lot less due to the higher social taxes, higher income taxes,
higher costs there.
You're going to have less in your pocket than you would if you did the same job in the United States,
which is why people from places like Canada, the UK, Western Europe, sometimes do come to the United States.
In fact, the fact that they may want to stay in their own country,
they can actually make more money for doing the same job.
But if you are Elon Musk, if you're me, if you're perhaps you,
and you are someone who wants to start a business, here's my perspective.
Know that it's a good advice, good idea to take advice from, from multi billionaires,
and I've got a lot of respect for what Elon has done.
I also look at some of like an Alex Ramosi,
who I found myself optionally agreeing with when I watch his channel,
which is, I'm a security minded person.
I like opportunities that have a high probability.
And so for me and my person out, and I think a lot of people who get into business,
their personalities are, I would rather have an 80% chance of a 5x return on my money,
than a 10% chance of a 500x return on my money.
Guys, like Elon Musk, it became very successful by playing the latter, right?
They basically go out and, you know, what was the chance that PayPal was going to work?
You hear about him, but how many people do you not hear about, right?
You hear about Tesla, you hear about other companies, how many people do you not hear about?
There's the graveyard of companies that just never made it, never got more funding.
For someone like myself who has, you know, started with no family money,
started with no loans, never got a small business loan,
never raised capital from investors,
owned pretty much 100% of my companies, or had a business partner who put in the same that I did.
Someone who is basically always cashflow positive,
pretty much every business I've ever run, we get to cashflow positive,
we're not losing money every month, we're not on a burn rate.
If you're that, I happen to think it's a better way to run a business for the average person,
because to me, like getting to 50 million in this day and age isn't really that difficult.
If you really apply yourself, business itself strategy is rather straightforward,
you find a product people want, and you find a way to sell it at a high margin,
and you just scale them all the way up.
And so if you can do that, you can get to, let me $30 million,
they call ultra high net worth of individual, if you have $30 million,
you're one of few within a million people in the world that has that.
All right, so you get to 50, you can get to 100,
and if you build a company, they can be sold.
I mean, I think those numbers are very much attainable.
How do you get to $100 billion?
Well, that's the kind of person I think perhaps wants to live in the United States,
because I want access to the market.
By the way, you can sort of business overseas, you can sell to,
we work with Americans, by the way, does an impact how our company is run?
We sell Americans, but okay, if you're manufacturing cards,
and you want to sell those in the United States,
that's not going to be as much of a conversation of how to pay zero taxes,
how do I manufacture my cards in the United States, or in Mexico,
and get the menu to the United States, whatever.
But how many people are running a car business, right?
How many people are doing the things that Elon Musk is doing?
And if I'm giving advice to someone who's starting a business,
I would say, don't swing for the fences and pay for,
like, just try and hit some singles, right?
Get a business that cash flows, you know,
if you look overseas and you're dramatically reduced to your taxes,
or eliminate your taxes, you can save a lot of that money,
especially if you live in a place that's lower cost of living, right?
So you can live in, whether it's, you know,
a more affordable European place, or you can live in Dubai,
you can live in Southeast Asia.
You can bank a lot of the money that you're making.
That gives you more money for future opportunities.
It gives you a cushion against, you know,
whenever one else is going into recession,
you're sitting pretty with plenty of cash in the bank.
Your business competitors are like having a cut staff, cut marketing.
You've saved up cash, so you're good, you're ready to go.
Like that approach of just being conservative
and building a conservative business, that cash flows,
keep more of the cash, just keeps scaling,
and that keep growing it up organically,
is a lot better than like I need to go and raise money.
I need to like be in Silicon Valley,
I need to be like, I need to be in the United States,
so I can go and ask for money.
Like you don't need, you don't need money to start a business.
And we've had numerous clients who make one, two, five,
I think recently, 14 million dollars a year,
they started with nothing, they started with their intuition,
they started with their effort, they just did it, right?
You don't need to like be hanging around in Austin,
like I get this a networking effect,
and we saw during the pandemic like you can do networking anywhere,
there's people all over the world who are smart,
there's an increasing number of Americans,
they're moving to Mexico, they're moving to Portugal,
they're moving all over the place,
like you can do networking,
but you don't need to be knocking people's doors,
and you certainly don't need to be like raising money,
I think in the average business.
And so if you're not one of those smaller numbers of businesses
that are like needing to be in that US ecosystem,
why would you be in the United States?
Unless you just really want to live there,
and you don't mind paying the taxes,
I think there's so many better deals, somewhere else,
because you're basically playing and cheap mode.
If you have a business that just spit that cash every month,
and you just grow it by putting the cash pick in,
putting the effort back in,
that's gonna be where 90%, probably a lot more than 90% of entrepreneurs
are successful, is running that kind of business.
And then again, the steroids is when the steroids to cheap mode
is when you go offshore and rather than keeping 55 cents of the dollar,
and then paying 30 cents of it living expenses,
you keep 95 cents of the dollar,
and you pay like 15 cents and living expenses,
and now you're ready for anything.
I was talking to a good friend of mine recently in Lisbon,
and we were talking about what I've said for years,
on sexy businesses.
He is now, after all, his business ventures,
including some pretty sexy businesses,
getting into, you see, like,
Kobysanches, for example, my old friend,
buying laundromats, for example, buying he's at a lumber yard, right?
Buying things where it's just like, okay,
I mean, a lumber yard, if you're in Europe,
and they wanna cut that, and I'm building,
maybe you could get squeezed there,
but you're not gonna get squeezed the same way,
like, oh, I have friends who worked for tech companies.
We didn't get the round of funding,
the companies now out of existence were all out of jobs,
the founders going into his next thing.
I'm looking for that 80%, 90% chance
of just having a cash flowing business,
that just builds over time and playing the long game,
rather than trying to build up the next PayPal.
I'm not saying Elon Musk, I think he really believes
in what he's doing, and I'm not saying like,
oh, how do we just make PayPal and get out of there?
How do I make Tesla and make a bunch of money?
But for me, most people, could you be a billionaire?
Yeah, sure, like, I don't want to have limiting thinking,
could you be a billionaire, of course you could.
And by the way, you could be a billionaire using the effort,
the former strategy of just scaling up, right?
You have people, they call grant card on a billionaire.
I think that I've seen, I won't comment
as what is net worth is, but I mean, the guy runs a business,
that turns out a ton of cash every year from wanting to understand.
And so, that's not a business where he had to go
like raise money from Silicon Valley.
You just skated up and just kept putting the money back in.
Imagine if he were outside of the United States
and had to be in more money to put back
into the company to scale it up, right?
And so, if you acknowledge that you probably
aren't going to be a billionaire.
And you're just like, listen, I want to get to a hundred million
and it's a little bit of a lifestyle conversation,
but I'm taking the more certain path, because I have a,
I don't have a pretty certain path to X million,
then a very, very uncertain path to billions.
And then I'm that guy that, like,
especially I'm getting a little bit older, like, almost 30
years old, like, do I want to be like,
I've started to five companies and they've all failed,
and I basically have nothing, but the next one's going to work.
Like, that's cool when you're, like, 25, 30,
but a certain point you're like, yeah, it's just nice to have some money.
And so, if you're following that approach that I talk about,
this more security might have more certain approach,
I don't really see why you need a high cost ecosystem
like the United States.
It's built around all the things like racing money
that has high taxes, that, sure, you've got to market.
You can sell in today's competitive world into this connected world,
into countries like the United States,
but being there can dramatically keep more of your money
through lower taxes, I just don't really see the point
of being an expensive country to do that.