#AskGaryVee Episode 15: Pareto's Principle

on this episode I talk Topline bottom line my Dad's shoes and papo's law hey everybody this is Gary vay Nerd Chuck and you're watching episode 15 of the Ask Gary ve show fun fact of the number 15 that's roughly about the amount of hours I've been working today it's actually closer to 16 I want to ask

what would you if you were in your Dad's shoes and you didn't come to the US until you were 23 you know I want to believe that if I came to the US uh in the way that my dad did which was not only at 23 years old but also with a child and another one on the way that I would do the same thing that he did which was completely work his face off to allow the Next Generation to kind of build on top of that and so you know I don't think I would have done anything different um you I think a lot of its circumstance my dad had a great uncle who had a liquor store that he got to work in that great uncle passed away and it was just all these kind of different variables I think circumstance has a lot to do with what I would have done but the one thing I know I would have done is work every hour of every

day Tommy asks in 13 thoughts of being an entrepreneur you say you focus on Top Line versus bottom line why Tommy you know one thing I think a lot of entrepreneurs do especially ones that are just starting companies since I invest in so many of them that completely blows me away is they start looking to drive margin uh profit very early on the reason I always focus on Topline revenue and it was something I did in my dad's business and something that AJ felt when I started going full-time on the Vayner front was you could always drive your profits higher eventually but when you got a moment in time and when I run businesses I tend to innovate and I tend to be slightly ahead of the market I and the market eventually catches up to me and then that's the good thing that's the moment when it gets exciting people start believing in social media marketing or believing in Internet e-commerce wine businesses or believing in Australia New Zealand South African wine I have to really run fast and grab as many customers because I'm slightly ahead then 3 four 5 6 seven eight years down the line I can start driving profit you can always start cutting costs raising prices at any time but land grabbing more customers gives you leverage of the scale that you ultimately need to convert that and so I think people go in for the right hook the big right hook a lot of times way too early sometimes to appease investors sometimes because they just want to start buying boats and Rolexes and I just uh you know I'm just kind of pushing and building leverage for the long term hey Gary

Johnny doomis entrepreneur on fire here and I have a hash Ask Gary V question paro's law states that 80% of our desired outcomes come from just 20% of our activities do you agree with this if so what's your 20 that's a great question I think a lot of people have uh have brought that up I know a lot of people in our organization believe in that I've heard a lot of people believe in that you know do I believe in that and what is my 20 John first of all congrats on your podcast um you know I probably think weirdly enough that it might even be more extreme there's a big part of me that thinks it's probably closer to 98 and two then there's another part of me that believes that it's 2 and 98 I am the kind of person that doesn't give a crap about other people's laws or principles what feels right for me is execution I think when people start knowing you know this is kind of what I talk about my naive or lack of knowledge helps me I think if I knew about this law prior to you bringing it up I mean I've heard about the 8020 rule but I didn't know your official name if I knew about this law it would actually make me want to play Within that law and then that would probably take away from the strength that I create every day I mean people ask me what the ROI of the askary V show is a couple episodes ago you hardcore Watchers know that I say well this is selling my fourth book here's what I think human beings overthink right and try to buy into some sort of thesis read a book it makes them feel good whether it's crush it or peruto law or whatever it's called and I think that is a fundamental problem I think when we start coming from what's authentic and what feels more natural you know the law I believe in is that my mom and dad had sex at a moment created me and I'm taking this DNA to the finish line that law That's the Law I believe in Robert

asks I know viewers get a lot out of your new show but what is the most significant experience that you get out of it Robert that's a tremendous question uh I appreciate it uh you know for me I it's kind of weird right I had this whole chapter of doing video blogging on an everyday basis uh that I enjoyed so much I did it for five and a half years um I think the best thing I have is like being back in the game a game that I love I mean I love running businesses but doing this video blogging thing it's just a lot of fun for me the other thing that really I get a lot out of it a lot of you hardcore old schoolers remember M and those kind of things I mean d Rock show this show Andy and there Zach and Joe stunwin and and here we are in by the way and drock he loves it like all clean show the table dck he like was like scared that you guys would be like I mean he's a little polished for me at times but like the biggest thing I get is that here I am in Atlantic City by the way little fun fact real quick pre-show to this Sunday nights Miss America from 8:00 to 9:00 I think I'm getting a lot of like action so make sure you DVR that and check that out but here I am in Atlantic City what would be going on right now I would be sleeping or doing email but here I'm jamming there's kind of like team like family thing I love that so much I'm creating something is special and so I appreciate you guys caring enough at enough scale to make me want to continue to do this and build something there's no substitute for the uh feeling of accomplishing something uh and that's what I feel is happening here so thanks so much uh thanks for watching this episode question of the day this is very simple I'm keeping it basic keeping it very basic what state do you live in you keep asking questions and I will keep trying to answer them