In this week’s episode, WealthBuilder founder, Kevin Whelan, presents to 1,500 business owners and entrepreneurs at the recent BizX 2022 event. Tune in to hear Kevin talk on how to create streams of recurring revenue both inside and outside of your company. At the event, Kevin announced his brand new book co-authored with ActionCOACH Founder, Brad Sugars – The Wealth Coach. BizX is a two-day event packed with a wealth of knowledge from global thought leaders covering everything you need to drive your business forward.
In this week’s episode, WealthBuilder founder, Kevin Whelan, presents to 1,500 business owners and entrepreneurs at the recent BizX 2022 event. Tune in to hear Kevin talk on how to create streams of recurring revenue both inside and outside of your company. At the event, Kevin announced his brand new book co-authored with ActionCOACH Founder, Brad Sugars – The Wealth Coach.
BizX is a two-day event packed with a wealth of knowledge from global thought leaders covering everything you need to drive your business forward.
Resources Mentioned In This Episode:
>> Watch the full video presentation of Kevin Whelan live at BizX 2022
>> Check out ‘The Wealth Coach’ book by Brad Sugars & Kevin Whelan
>> Join the WealthBuilders Academy
>> REGISTER HERE FOR FREE RESOURCES ACCESS
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Unknown Speaker 0:01
The purpose of wealth talk is to educate, inform, and hopefully entertain you on the subject of building your wealth. Wealth builders recommends you should always take independent financial tax or legal advice before making any decisions around your finances.
Unknown Speaker 0:19
While Welcome to Episode 148 of wealth talk, my name is Christian Rodwell, the membership director of wealth builders. And I'm joined today by our founder, Mr. Kevin Whalen. Hi, Kevin. Hi, Chris. Good to be with you again. Yeah, and we've got a bit of a special episode today, because we're very lucky to have a copy of your presentation from the basics conference just a couple of weeks ago, when you were live on stage,
Unknown Speaker 0:40
who I'm excited about that the fact that we can capture it and share it. And in two formats, I guess, Chris, both video format for those who kind of want to see what the event looked like. And it was spectacular. And those who just want to listen and get that leverage, you know, when they're running when the multitasking, whatever it is they want to do so. Otherwise good.
Christian Rodwell 1:05
Yeah, that's right. So we do have the video copy of the presentation available for anyone listening right now who wants to go and watch that with all the slides and see the huge audience there of over 1500 business owners and entrepreneurs. And you can go and check that out by heading to wealth builders.co.uk forward slash recurring revenue, or one word. And Kevin, just give us a summary then of what this event was all about.
Unknown Speaker 1:31
Yeah, so biz X stands for business excellence. And I think it was a long overdue idea really born from action coach, who are the largest coaching franchise in the world that help business owners become bigger and better business owners. And they invited world class speakers to talk and to share ideas and thoughts. I suppose really, to give an injection of ideas and inspiration post, the pandemic, and to give people new ways to think about their business, which was the title of my presentation, a new way to look at your business in 2022. And that originally designed the presentation, Chris for 2020. So but it didn't happen, of course, and at that time, that would have shared the stage with lots of other people, lots of famous people who were also looking to you know, give their knowledge and inspiration Bob Geldof being one of those, he wasn't available this time around. But it was a star studded lineup of people sharing their knowledge sharing their wisdom. And and I hope, and I think now it's an ongoing event. So this was in Farnborough in Surrey, not too far from us, of course. But I think next year, and we'll we'll announce that I think Chris, because x will be in Liverpool in 2023. So I've no idea whether I'll be invited to speak again. But either way, you know, we'll be action packed from action coach.
Christian Rodwell 3:12
Absolutely. And of course, it was the launch of your new book that was co authored with the founder of action coach, Brad Sugars. And that book is called the wealth coach, and hundreds of copies were sold. I know you were signing away all day. And, you know, we've had great feedback from that. So anyone who's listening, who'd like to grab a copy of that that's going to be available on Amazon in the next week or so, can head to wealth builders.co.uk forward slash wealth coach, and we'll let you know as soon as that is available, but that's a really good book. And, you know, a lot of key lessons in there that we talked about across the podcasts.
Unknown Speaker 3:50
Yeah, I mean, essentially, it's more of a narrative style. One walking, I suppose a journey, a transitional journey, a transformational journey of a family who suffered tragedy like I did. So there's some parallels in the story. Albeit the coach who's Frank who's who's the coach in the book is 68 years of age. I am not 68 It's not me. Anyway, the lessons are really to help the business owner create recurring income, both inside and outside of the business. And also to help an employee who equally you know the common denominators always being time poor, successful people in their own right of course, but successful generating income is not successful at keeping it when things change. I think I said in the presentation, Christy, the new order is disorder. And that's certainly true. And I think for employees or for business owners getting recurring income In your life as a way to become financially bulletproof, whatever wind blows upon us from an economic viewpoint, or whatever would come at us from left field, which are so many things we haven't predicted in recent years. And I'm sure the more of those coming down pipe.
Christian Rodwell 5:15
Yeah. So here we go with the live presentation. This was from the 31st of March of this year at the biz X conference. And don't forget, if you want to watch the video of Kevin on stage with all the slides, head to wealth builders.co.uk forward slash recurring revenue. And Kevin, we won't debrief this one. So we'll leave our listeners with this 30 minute presentation.
Unknown Speaker 5:36
Yeah, only one thing to correct Oh, Chris, because in the heat of the 1500, well, sets of eyes plus 500, of course, online. So that was a mixture was kind of a hybrid event. I did say something which I now realised was was factually incorrect, but not major. So there's a session there are a section there where I talked about being your own private bank, and that most people in business will get either nothing or nor point one. And I show an example there where I get 12% on my money. And I think I misguidedly referred to as you'd have to leave your money in the bank for tuned in 40 years to get the same kind of return. But of course, it's 120 years. But that's still a very long time. And I think if anybody can help you get a return, which is 120 times bigger than you get in the bank, I would still sit up and take notice.
Unknown Speaker 6:30
Yeah, we'll allow you that one when you've got all of those 1000s of eyeballs staring back at you. So here we go. Enjoy the presentation.
Unknown Speaker 6:41
Well, good morning, ladies and gentleman, I'm I have to say I'm so delighted to see real faces to be able to share, and to celebrate being in business and what business is all about and how appropriate it was Did you notice when you drove in, it said the home of pioneering spirit. And I think our pioneering spirit has been tested, hasn't it? Over the last few years, and therefore I believe we've got good reason to be celebrating. And I just want to extend a quick note of thanks to Julie, and the team at action coach, because I was invited to speak at this event two years ago. This is the longest speech I've ever done. And as a result, you know, the perseverance that they put in to make this special to get world class speakers and thought leaders to share their ideas with you, I think is absolutely fantastic. Oh, thank you. Now they, they demonstrated perseverance in great order. And I want to just say to you persevere with me for the next 30 minutes. And do not especially you high DS, you know who nobody tells me what to do, right? Don't open the envelope, because what you'll get is a surprise, and a gift from me that will bring you and I promise you good fortune. So ladies and gentlemen, I'd like to invite you to look at your business in a new way to look at your company through a new lens. In fact, two lenses. And if you do that, I promise you'll get two outcomes that I hoped you would want one a huge increase in the value of your business. A number two more free time than you ever thought was possible. Is anybody up to that? Oh, I'm in the right room. That's good. What I'd like you to be is to imagine you are an entrepreneurial magnet, a magnet that's attracting two streams, recurring streams of income, not income that you get from the same customer, not income that you trade time for money, but income that repeats, and repeats, and repeats. And if you can do that, you can become financially bulletproof. And in a world where the new order seems to be disorder, I think if we can get those recurring income streams coming in both inside of our business and outside of our business, then you can create that financial independence whether you sell your business or whether you keep your business. But just as a reminder over the last two years, as business owners, we've been through the mill, haven't we? I mean, let's just take a quick review of what's happened over the last two years. Who can remember break, no exit hadn't we've seen other royal family indiscretions as well? Brexit I mean, that just seems like a done deal now, isn't it so so long ago? Now, of course, once in a century, we get something, a black swan event, like Coronavirus, and that's devastated many businesses, but just imagine the devastation going on in Ukraine right now. I mean, just not just 3 million people over the last three weeks have become refugees. But imagine if you were in business and Ukraine, and your business was devastated by an unjust war. I don't want to make a political statement. I'm not a political guy. I think he makes enough statements as name we've seen party politics, and a whole new world and a whole new light. And we've seen Rishi Sunak. And I believe Rishi has done a good job. I'm an economist myself. And I think he did a sterling job, putting the power of the Exchequer behind the lives and livelihoods as affected in Coronavirus. But I'm sad to say ladies and gentleman, that it's we as the entrepreneurs, the backbone, the beating heart of the economy will be suffering as a direct result of this in two ways. Number one, the massive hike in corporation tax coming in 2023. And number two, well, you can see there the entrepreneurs relief was slashed.
Unknown Speaker 11:30
Previously, you could sell a business for 10 million and pay 10% Capital Gains Tax, that's been slashed to 1 million. Now, that's not just a cut is it? That's just a huge slash. And what that means is it's denying us as the entrepreneurs. That right I think that we have to gain the maximum value from the sale of our businesses. But I think the combination of the two will depress the value of our businesses. This isn't a depressing point. But I want to show you how to do things differently. But in order to do that, I need to invite you. Do you want to take the blue pill? Or the red pill? What do you think? Take the blue pill and you wake up in your business on Monday morning, it will all been a dream and you believe whatever you want to believe. Take the red pill. And I'll show you how deep the rabbit hole really goes. What do you think? Reds? Who wants red? Right? We'll go down the red route. Shot shocking statistics coming your way. Now see if you can work out what they are. Okay, so you can interact with me on this one. So I'm going to share with you some numbers, what do you think they might represent? 5 million, what do you think is the number of businesses in the UK but about 50,000. That is the number of businesses that are sold each year in the UK, the vast majority of businesses that are up for sale don't get sold. Only 50,000 businesses are sold in the UK. Now the data is sketchy and I have rounded some of these numbers for effect, but it's approximately correct. What about 5000 5000? is the number of businesses based on capital gains tax records, who've claimed the maximum entrepreneurs relief now called something different of course 5000 out of 5 million. So only naught point 1% of the business owning population are selling their businesses for more than a million pounds. That's interesting, isn't it? How are we getting paid for our blood, sweat, and tears? Well, most businesses that would appear seem to be selling or the average age of the business owner is 57 years of age. So it feels more like a retirement plan. And I mean many business owners. And here's an interesting number one do you think this is five? When you think when I ask a business owner, I say you know According to Michael Gerber, that great book, The purpose of a business is to sell it. When do you think you might be ready to sell your business? What do they say? About five years? Yeah, about five years. About five years Kevin had this great plan. If I meet them again at a networking meeting live like this and say what do you think? Imagine selling your business. What will they say? About five years? Yeah, it's always about five years away. But of course, for many business owners five years, just doesn't come. Now I'm very passionate about business owners. I mentioned, I'm an economist, and I'm the business owner just like you. But my specialty is recurring income. I've spent my life building businesses around recurring income. And for my sins, I've also written a few books. And yesterday, I arrived, and I was thrilled that the latest book called The wealth coach, yes, I'll take that written, or co authored by myself and Brad Sugars, which is really designed to try and help you understand the ways that you can create that recurring income, both inside and outside of your business. And I hope some of you will avail yourselves of this was a tenner. And by the way, the first speaker said, you know, you should take action. So who wants a copy of the book, come and get it. Who's quick, He's quick.
Unknown Speaker 16:20
Oh, I love that. I love that. Now, as long ago told by a speaker coach, that if you have an accent, you need to tell people where it comes from. Otherwise, they'll spend more time concentrating on trying to work out where you're from, instead of listening to the content. This is where I'm from. Anybody know where that is? Is the time bridge. It's not the Sydney Harbour Bridge is the time bridge. And when I crossed that bridge, I know I'm going home. And I was raised there. And when you live in Newcastle, my mum and dad came from a very poor background. My father, in fact, when you had two choices, when he left school at 15, you either went down the shipyard or you went down to coal mine. He went during the shipyard. And he was a worker in the shipyard and my mother stacked razor blades in Wilkinson swords, long before disposable blades and those sorts of things. And, you know, we didn't do too well. You know, we lived in a council house. But he got lucky. Because he was a welder. He was a very good welder. If you remember when we used to explore oil in the North Sea, I mean that the whole thing is turning now isn't it about changing the way we evaluate fossil fuels, but he got a job in the North Sea with BP. And the money started to come in a bit more, it was worth much more to do welding on a pipeline than it was on ships, which of course now no longer have made that. And I discovered for the first time that he became a business owner, because when he was doing the work, he also noticed that BP and other companies needed more welders and needed more inspectors. And he created a business and I remember him showing me something that I'd never seen before and I guess of you showing your kids this. It was a certificate of incorporation. It was a business he created a business called I SL limited inspectors, supervisors and labour and it was essentially an agent and he would hire people. So he get paid for the work he did and paid a proportion of the work of others. And the money started rolling in. So we moved out of the council house from biker no we don't know anten deck, right? Not everybody from biker knows them. And we moved to a house which he bought with a mortgage. And instead of having a Ford Anglia parked on the drive, we had a couple of cars while on the street really because didn't have a drive a couple of cars then and things were going swimmingly well. Until it all stopped. And I remembered the year it was a seminal year for me. Is 1985 Anybody old enough to remember 1985? A few of the see a few grey hair, no hair just like me. Right? 1985 some great things happened, didn't they? Remember the mobile phones? You know, remember that break? And the first electric car 1985 Did 20 miles on a single charge but you could only well this was Clive Sinclair I think he was way way way ahead of his time. I'm, sadly no longer with us, of course. But in 1985, I got a call. And it wasn't a call you expect. And the call that I got was Kevin, your dad's dead. He died on a North Sea oil rig, he had a heart attack, they couldn't fly him off, they couldn't save him, and he died there. Now, that's a personal tragedy. And I'm not looking for sympathy here. That happened a long time ago. But the financial consequences to my dad, as a business owner, passed on to the family in a way that I want to share with you. See, he didn't get round to things. And I've heard business owners say these two words to me, or these two sentences to me, almost every week of my life. Kevin, I've been meaning to get round to that. But I'm just too busy. Anybody ever said that? Yeah. Do you recognise that, you know, I'm genuinely trying to help you think about this stuff. Now, when my dad died, unfortunately, he was 46 years of age. He didn't have a business succession plan.
Unknown Speaker 21:21
He didn't make a will. He didn't have life cover for the mortgage. He didn't do things that he should have done. Now, if I could ask him now, dad, you know, you put the family in a position where we went backwards as a family. He would say I was meaning to get round to it some. But I just got busy. Some of you maybe might want to make sure you've taken care of your families by doing your wills during your powers of attorney but that's for another day. Now, immediately, that effect on me I was in 1985 was another I met my wife I moved to London to find fame and fortune in employment. But I realised you know, we were genetically cut from the same cloth if I lived the same length of time, I simply couldn't save enough money as an employee. So in 1990, I stopped trading time for money and decided instead to become a business owner, just like you. And I built businesses in my businesses reflected my interest in finance and money. And I built a mortgage broking business and I sold under licence. I've got an IFA practice with many, many millions on the management, a pensions administration company, and a wealth coaching and membership business. That currently generates more than seven figures in recurring. So I don't need to turn up for the money to turn up. And I'm going to show you how to do that. In the remaining time that I've got, but this is my office is on a farm in Sussex. And when you work on a farm, you have different levels of risk, you have to think about who couldn't remember what this means? Anybody? What's it mean, sir? It's mad cows disease. Now mad cows disease, ladies, gentlemen, is pretty rare. But I want to show you a disease that I see that's not a pandemic, but it's completely endemic. And I call it mod entrepreneurs disease. And now the face is a man but it could equally be a woman. And what I want to do is honour and pay respect to you for being smart. Because look at all the hats you have to wear. It's not like you've got a job. And you do one thing, you've got to do everything, the sales, the marketing the admin, you've got to build and manage all the relationships. And of course, you've got to build and grow your team. And that puts pressure on you, doesn't it? And where does that pressure show more than anywhere else in your time in your time. And I would want to encourage you yesterday, be smart but be smarter. And the E stands for have an enterprise that works without you. And I'm sure Brad would be happy for me saying that. an AR is generate recurring income become smarter as an employee, as a business owner, I'm sorry. And I think what I noticed the blind spots when your bandwidth is affected, you have so little time to take care of some things that should be urgent, but they never get on the to do list so they never get to done. One of those is recurring income. This is a pretty wealthy guy. And I think you can see what he said. If you don't Find a way to make money while you sleep, in other words, recurring income, your work to your day. And that's true. I'm going to show you a case for recurring income and focusing on that, and then different ways that you can use to do that. Now, remember, I said to you, I want you to be an entrepreneurial magnet.
Unknown Speaker 25:24
And if you can generate recurring income, then you're already finding the E, which is the business is no longer dependent upon you, the income becomes predictable. It's less risky. And that suits a business buyer and acquirer, because that's what they're buying is predictable revenue. So the more you have predictable revenue, the more your business's worth. And John Warrillow, who wrote a great book called Built to Sell, definitely one worth looking at, said, a business where the predominance of the income is recurring, is worth eight times more than a business that's trading a product for money or a service for money. What would you rather do work eight times as hard to make the profit. And then the business acquirer sees the risk, or find a recurring method of generating that revenue. So that you can sell that business for maximum value, at minimum risk to an acquirer. And by the way, if you don't ever sell it, you pass it on to your kids, or you pass it on to your employees, or you keep it it still gives you all the free time that you could have, because you don't have to show up in the business. The money shows up, but you don't have to. So take stock, because you think about your business, how much money is coming, recurring automatically. I don't mean the customer buys again. But it just comes automatically, time after time, after time. And what could you do about that? Because everybody can do something and I spend my time trying to help business owners do that, as a business wealth coach, to show them how they could find that and utilise, see things they don't see. But let's give you some real life examples. If you've got a product or a service, could you find a way to automate the delivery of that product or automate the delivery of a service and be curious about it? Can you think of things that you're doing you're subscribing to you're investing in, in a product or a service that you do? Or you buy? I do. I mean, this is Mr. Laithwaite, Tony Laithwaite? Anybody know Tony Laithwaite is he sells wine by mail order, and he sells a lot of it to me, unfortunately. But he's worth 160 million. That's not bad. And you've seen a proliferation of food things, haven't you? Restaurant boxes and food boxes and so on? What about membership and subscriptions? You know, the value of the money from Amazon Prime coming for Mr. Beezus, they're 25 billion a year 25 billion. And that's before we shipped the product, that's just the people paying the prime figure. And I'm thinking Mr. Sugars is doing okay. 10,000 coaches or paying some kind of a fee? Now, these are examples of people who have mastered this, but what could you do to do something? Could you find some way to create a membership, some way to create a VIP experience some way to create some form of relationship that people would willingly pay for. Now, you don't even have to have a business, you can create a gateway, a gateway is where you find an opportunity where people are looking, and you put the business together. By connecting people. It's a connection idea. And this is anybody you know, this is Martin Lewis, the money saving experts sold his business for 90 million. So lots of good things you can do inside your business. But don't get tunnel vision don't get focused exclusively on what you can do inside of your business. But everybody can do something. And inside the book, there'll be some other reasons or some other ways they can show you everything in 30 minutes. So I'm going to show you three things that you can do outside of your business that anybody can do. And it's pension property and private bank, private private bank, Kevin Do I have a private bank A private bank exists when you think about something in a different way, do you remember that's the title of my presentation. If you've got more money in your business than you're taking out in dividends, then you're accumulating money were
Unknown Speaker 30:18
in your bank account that somebody else is using and lending that money to a third party. Now, usually, you get about naught percent or naught point 1% on the money that you've got. But I can show you how you can become a bank. And we use that money as a private bank. You can see this property here. This is a property on the Isle of Wight is a commercial property, which I funded, or part funded. And I loaned to this project 200,000 pounds from my business. And I got 1% a month for one year, how much did I make 24,000 pounds? If I'd had that money in the bank at naught point one, how many years would it take me to earn that money? Yes, 240 years, probably, if you can do the maths, even if I've got the decimal point in the wrong place, it's a huge amount of time. So you can turn yourself into a private bank. And this is what I do. And this is what I show. And the returns can go back to the business for you to do what anything. So if you wanted to use that money to pay for a coach, an action coach, a wealth coach, or to pay for marketing, or some other way to support your business, or scale your business, you could do that. And this is what it turned into, which is just a commercial property that was turned into residential. My client who's the developer made 150 grand and I made 24 grand, and that was fine. And that's just using the money in your bank. The second is pension, most business owners don't like pensions too much, because they think it's a long term play that we saw earlier on, most people are in business for a long term play, because the average age is 57. But because you can ring fence, the money, it's protected from creditors is protected from legal action, it's protected from HMRC. You can use your profits and put it in a bank that then you get the tax back. So your corporation tax is refunded to you. But you still got access to your own private bank account. And it's income tax free corporation tax free capital gains tax free, and inheritance tax free. I don't know about you, that's pretty damn tax free in my view. And there's a special kind of pension that I have expertise in it's called a SAS. Sorry about the complexity of the language for that HMRC for you wouldn't win any marketing prizes, you marketing gurus out there, small self administered scheme. And basically what it means is you own your pension. So instead of it being with a legal in general, or Aviva or any other company or convention, the money belongs to you. And what you can do with that money is anything you want because you become the trustee, and we teach people how to be trustees. So if you want to buy funds, you can buy them at wholesale prices. So instead of paying 2%, which most people pay in the UK, you could probably pay naught point two. That's a huge reduction in fees. If you want to buy gold or commodities, you could do that if you want to invest in crowdfunding or cryptocurrency, but the most popular investment is property. Most people are using their SAS pensions in the UK, certainly with us. And we help 1000s of business owners do that to buy and acquire property, because it gives them a diversification. And it's a great legacy because you can pull the money with your family. And what it allows you to do then is create an increase in the lifetime allowance. So I've got five people in mind. Okay, so wife, myself and three children, that means the lifetime allowance now is 5 million, not 1 million. Because you're pooling your assets, you can have up to 11 people in a small self administered scheme. Okay. And then finally, lots of ways that you can buy and own property and if you hold them in a SAS completely tax free. So lots of things that I think I can share with you and share with you more in the wealth coach book. Come and see us later on if you want to get access to that. But I'm going to leave you with the thought that when you go back to your businesses, I hope you've taken the red pill and not the blue pill. And although you don't have too much time You've got time for a cup of tea, or a cup of coffee, and a little snack and my favourite snack to have with my cup of tea. Is that what is it? And of course, when we look at our businesses in a different light, we always know that KitKat wrappers are always
Unknown Speaker 35:18
except when they're blue. And they were blue in the wall, because there wasn't enough milk to make milk chocolate and it was all dark. But the most fascinating thing about KitKats and can you believe I'm talking about that is in Japan. Because KitKat is not a confection, it's an obsession. And they have over 200 flavours of KitKats in Japan, and they sell millions and millions because the word KitKat in Japanese is key to katsu literally means good luck, or good fortune. And they use them to give gifts or good luck messages to children and to students in their exams. So I think you've probably already worked out what's in your envelope. You can open now by the way. A round of applause for a KitKat I never thought that would happen. But what I would like you to do, ladies and gentleman, is go back to your business. I've given you a two finger fat KitKat not because I'm cheap because it's entirely appropriate. The first finger I want you to have a cup of tea and go snap. How do I create recurring income inside my business? And the second one snap? How do I create recurring income outside of my business? And if you want to know how well you've got that curiosity, I'll be here for the next few days with my team on a standard the back called wealth builders and we'll be happy to share with you how to do that. And when you do that, you are financially bulletproof. And I wish you ladies and gentleman, Quito katsu good fortune, thank you
Unknown Speaker 37:34
We hope you enjoy today's episode. Don't forget that we are constantly updating our resources inside the wealth builders membership site to help you create, build and protect your wealth. Head over to wealth builders.co.uk/membership right now for free access. That's wealth builders.co.uk/membership
Transcribed by https://otter.ai