I Asked A Billionaire How To Start A Business (In 10 Steps)

0:00 web 3 is the internet of ownership meaning that for the first time you can actually own a piece of the internet in my 35 years in business I built 19 companies invested in 78 startups and made millions of dollars along the way however the man I'm about to introduce you to has made billions with a bee yatsu is a billionaire founder of Anoka Brands one of the leading companies in the web free space and his company's currently valued at $6 billion an hour of this man's time is more than the average salary in the UK so if you can't sit down get a notepad listen I'm sorry but you're probably not going to make it yeah what are we going to cover today well today we're going to cover what we think is uh the purpose of business our business philosophy and what it means to be early in the space I'm also going to be talking about how you as an

0:45 entrepreneur can manifest your own future as in how you can find success I also want to talk to you about the role of money what is money uh how much you need to know about it and the importance of ownership which is the next topic and of course that covers into the area of why capitalism is so important and why it's actually a Force for good if you know how to apply it don't hate capitalism don't hate it you've got to learn why you've got to love it and how to leverage it uh and in the context of that then I want to talk to you about sort of this really Next Generation internet that is web 3 why it's so important and of course you probably heard of tokens which is my next topic uh and then of course the importance of finding your particular Niche and then we we cover a little bit about community and you know Talent as well hiring people and how to raise funds and and grow your business let's

1:32 go let's do this so let's start off with the purpose of business this is something people never talk about and it's such a shame and I'm excited to get into this so go ahead tell us what we need to know yeah so I mean the very first important thing I think when you think about purpose of business I think you need to think about what it means to you I think you need to think about that as a really important part because you know some people might do it just in very simple terms they just want to have a better life and make money that's one level but later on actually as you grow your business your purpose actually becomes bigger and more important it could be as simple as owning a restaurant but you want to give pleasure to people in terms of having great food or you know basically the question really comes down to what impact do you want to actually create to your customers to community or to yourself right and I think that then

2:18 ends up being a net good for society so the other thing I like to think about business as well is what role does your business do in helping society as well uh generally speaking if you make money and you employ people you're already helping Society in a very small way because you're helping grow business and making money for other people and growing the economy but to me those are some of the key purposes of business but maybe then delving a little bit into the philosophy of business I would say focusing on areas that you think that give you impact means the things that you think that you are good at right which kind of I guess moving a little ahead is around finding your Niche right in other words what do you think you're good at your friends will tell you you might know that as well and for us for instance instance you know one of our philosophies of business is to be early

3:03 in the space because that was how we believe we can make the most impact uh and drive more value in society uh and for that we often use this chart called the diffusion of innovation chart and you know this stage is typically known as the innovator stage this is when you have new ideas that are being created and then you have a stage that's called the early majority in that stage actually businesses typically already know about it so for instance if you're talking about the internet in early 2000 or if you're talking about mobile apps in 2011 that will be the early majority stage and that stage of business when it develops here it will grow just because the market grows and if you're able to build your business in the area of early majority up until you get to this part which is kind of known here would be known as a late majority or essentially um developing to that stage you will

3:49 benefit from more natural growth because the market will just simply grow it's kind of like if you've been in China in in 2000 and you're in that stage you'll grow just because of that for instance so how do people identify this if if you're listening to this video and you're like oh I love the idea I want to be early how do you how do you be early what what what's a practical example how can people go about being early well I think it goes down to essentially I think you having to understand yourself your impact and the impact on society this is almost like a secondary thing if you if you discovered these first three steps how you can impact your life what you're good at what you what you're going to do to help Society what you enjoy doing primarily right so I mean this this this philosophy does doesn't only have to apply for wanting big impact business for billions of people like for instance if you're early on the

4:34 internet you want to build like an e-commerce company sure that's one way to do it but for instance let's say you're in your community in your neighborhood and you identify in your neighborhood that nobody has a Chinese restaurant for instance but all of your friends are talking about Chinese food you're the only Chinese restaurant in your neighborhood and you think everyone loves Chinese food you're early right you know and how you notice when something becomes popular then actually all these other restaurants that are the same or these other fast food chains or these other shops that are the same all suddenly pop up in the same neighborhood because it's a demand for it but typically the one who's been early actually has you know early bird catches worm as they say so they have typically an advantage again that's not a sort of a universal rule of course there's people who come late as well and do really well but generally speaking that's where you basically benefit from the area and and so this philosophy I think can be applied for any business

5:21 whether it's big or small it could be your community are you early in your community or are you trying to do something Global in terms of impacting the world I think this lies in in in everything we do to use your restaurant analogy for people listening as well like you might think well I I um I don't there's already a Chinese restaurant in my neighborhood or move where there isn't one you can also be early in places you can go to markets where things don't exist yet right so that's you can create the early even if it's not where you live which is another reason I tell people not to get a mortgage when they're young CU they get trapped by the location they Liv go where the opportunity I went to Hong Kong as you know in 1997 because I saw people were leaving and there was an opportunity right so and this is about niches as well right so for in since back in the early days when we started building internet companies in the '90s and early 2000s that was a niche I mean

6:06 people forget that in the internet back then had literally only tens of millions of users globally worldwide not the six to seven billion people that there are today so that was a niche but from that Niche we were able to sort of develop being really early and then just grow with the market as more people entered that space interesting it's the hardest thing is surviving when you're early cuz I mean I I remember trying to sell uh you know Digital Services to brands that just come through the dot bust yes no one cares about the internet you know the early 2000s the internet's over you know the headlines and sometimes it's surviving long enough to stay in the niche to stay in the early part of this gra right and just to be clear just because I'm drawing this chart doesn't mean the chart goes this way actually what happens is when the well even though there's a general goal which again it talks about sort of your goal

6:52 and your impact that you want to have the chart to that looks more like this right basically right sometimes it can go all the way down here before looks up which by the way ties into why you've got to enjoy it it's got to be for you it's got to it's got to feel personal otherwise you won't stick at it and I think this is the thing when you get to something where you feel so strongly about your impact um where the purpose is greater than just your own so to speak then you will survive these Cycles because you're doing something that is so meaningful for you so purpose of business not talked about enough because people too quickly jump into like how to make money and the niche of how you can build a business that's worth millions having a purpose in your business think about this carefully so it works for you right next what are we talking about next next up manifest your future now

7:39 when I was 20 someone said to me manifest and I laughed I didn't think it was a real thing but let's talk through manifestation maybe you can explain to us how you see it all working in a practical way well first you know when that we talk about manifesting we should talk about a little bit about what drives us as humans and what drives us as humans universally in everything we do is narrative we are narrative creatures right and I think uh there was an interesting commentary being slightly bit quasa intellectual in this one I think they called it homans I forgot who actually quoted that basically saying that we live on stories we exist as storytelling creatures even things like money and society and culture are all

8:25 storytelling and so when you think about the biggest ideas in the world whether these are you know revolutions ideas about our freedom ideas about who we are as individuals what rights we have these are all stories these are people manifesting their future right these are people who imagined something that would be better for them or their society and then they created that and that's true for all entrepreneurs I mean I remember a time when being an entrepreneur wasn't cool right it was was was that long ago it was it was only like maybe 20 30 years ago where being an entrepreneur was the equivalent of being unemployed couldn't get a job could get a job so so that's why you're an entrepreneur you couldn't work for a company right uh but actually really manifesting your uh sort of your future is Right imagining where you could be and the business that you're growing and while it sounds a little bit like oh sort of oh wow you're

9:11 manifesting and you're imagining but actually that's what we're doing you're imagining you know imagine when you you want to buy a house for instance that's an that you know there's a dream for you you want to achieve that dream what are the steps that you get towards that or you want to open a shop somewhere or you open a business or you impact a community that's all a form of manifesting right and that's also one of the reasons why I also look at business plans especially early stage a little bit skeptically in terms of yeah you need to have an idea of how to get there but the actual business plan will always change uh because you know you have to sort of navigate the space as it goes but manifesting the future I think is absolutely critical because at the end of the day if you manifest you can actually turn that into reality and every entrepreneur story you will have heard of started with this idea of

9:56 manifesting which maybe some people call A IM ination right or creativity but what are these things what is Imagination what is creativity it's all things that happen in our head in our own reality that we then turn into actual reality everything if you're watching this on a phone on your laptop sitting on a chair that was all in someone's mind and they made it real correct that's right they manifested something totally and even think about in your own life if you're not thinking about it in terms of being an entrepreneur when you're sort of running in a competition and you're running in a race there chances over your success if you manifest your Victory even if you don't necess get there will actually be much more powerful because you're actually going to run harder or you know if you believe you have a chance of winning even if it's remote you're actually going to work hard for it if

10:43 you enter a race thinking you're going to be last place what's going to happen probably you'll be last place but if you're going to enter the race thinking you're first place even if you don't achieve first place you're going to do everything in your power before to try to get there and business is exactly the same I actually imagined uh the last my last company fluid getting bought by PWC who we were partnering with at the time I never said it out loud and it happened you know cuz you kind of you work towards that goal because you believe it and know Henry Ford once said if you believe you can or you believe you can't you'll be right so it's also important to have a positive mind around this stuff right I mean manifestation generally you should be optimistic and positive right uh that's very different from you know you got to deal with Market realities of course but you need to be optimistic I think if you're not

11:28 optimistic I think it's very difficult to be uh an entrepreneur because then you're coming in with it from with a wrong mindset which is which is really what manifesting is about okay so any other practical advice around manifestation before we move on well not practical advice but I would say for instance you you gave that story about um people selling their businesses well this became a very typical exit strategy for a lot of tech companies and suddenly that became the norm but people forget that say you know decades before that selling your business was completely not normal at all right and so so an entire entrepreneur community in the tech World essentially manifested a path towards saying we can have an exit by selling the business right and then suddenly VCS came around actually asking you as an entrepreneur what is your exit strategy

12:13 was specifically more about when and how do you sell your business for instance I mean you know that became a strategy again and again this was something that didn't exist before well again I think like um the whole concept of manifestation for a lot of people is is considered woooo but they apply it to their lives they can manifest whatever they want their life to be if you believe your life's going to be a certain thing you can work towards making that certain thing one of the things I love about sort of you know family life or you know as a as as you know with a as a parent is um I think of cooking as a form of manifesting right you imagine what the food is going to be look look like at the end you know you're making you haven't seen my cooking you that's probably one of the things to try to help people like you need the right ingredients you need the bit of guidance exactly so we can get to that a bit later right you need the right funding yes exactly but yeah but that's true that's is a great way

12:59 if you can make you the idea of what you want to happen happen but uh it's like bit like your graph previously it's not going to go up like that it's always going to be like that but that's why I love the second bit is manifestation and the first bit we just talked about that whole all all purpose of business it all ties together and I think the thing is that if you can manifest for the long tail if you can manifest where it goes here which could be years away then I think you have the stuff to be an entrepreneur whereas if you might only be able to manifest short term I think it's harder for you to do that I think most successful entrepreneurs have a great imagination and it's something you can learn we actually get detau it my son at school is being told not to imagine so much he his daydreaming is what they call it and actually we get told as adults not to daydream right and I think manifestation is a form of

13:46 Daydream well I don't know if we have time for this but I do want to sort of share that story when you talk about sort of um uh not that you're taught imagination all humans are born creative and imaginative there was a study uh by George land and Bethany Jarvis this was in the 60s and they were basically doing a test to show how um you know astronauts and like scientists if you send them to the moon for NASA how can they solve a problem divergently as and how do they solve a problem in a creative imaginative way because you know when you send someone to the Moon blows up and you know nobody's never done this before so someone has to be able to problem solve so they took that same test and applied it I believe in the' 60s to Children between 5 10 15 and then gave the same test to adults

14:32 and so children who were 5 years of age were able to solve the problem 98% of the time crazy the vast majority which basically meant all children could solve it in creative and technically they were all Geniuses when they at that age they have there's no limit to their imagination right and then when they became I don't know the exact number anymore but then basically when they became 10 and then 15 the number gradu went down guess what the number was for the ones that were 21 years and above very low is it like 1% or something ridiculous 2% 2% % yeah yeah and now when you think about what is the percentage of change makers entrepreneurs crazy guys in the world it's probably somewhere in that number yeah so in part you got to get back to your childhood I think to be a successful entrepreneur you don't lose your creativity yeah yeah and I think there is a role for parents as well if

15:17 you're a parent to actually make sure that your children maintain their creativity because in this future world of you know Ai and sort of you know machines and so on much of the sort of manual work is no longer necessary I mean your children are not going to be truck drivers they're not going to basically be sort of you know accountants in the classic sense they have to be creative which is what we as humans are I yeah I think it's something um again that why we need to fix education system because the education system today is not is not designed to help people be creative it's help it's designed to help people memorize to get an A in some exam based on what you've remembered instead of what you've come up with critical thinking is missing talking thinking the ability to come

16:02 with an idea of and brains are incredible Sol problems creativ yeah and and so um we need to bring it back and if you want your business to be successful you need to have this and you have it if you think you haven't got it it's being suppressed in you through the education system so wake up next up what is money I had no idea how money worked until I left school and started a business so what do we need to know so there's a lot of YouTube videos that talk about what is Money store value basically um you know exchange currency that kind of stuff but today I want to give you a perspective on money that is quite different but important to understand I think of money as a social system it's a social network so when I think of money when you think about all these little nodes around the world

16:49 right basically the ability for you to transact and interact with each other actually is what money facilitated the value of money also comes through the power power of that social network so why do we think that the US dollar has value for instance it doesn't come from the fact that it actually is gold back because the gold standard is long gone people say oh yeah it's the GDP of the economy of America but you know America has more debt than its GDP so technically speaking uh you know why does money have value and it's upheld because we as a community believe it has value and we're creating a system around that through banking through loans through mortgages through systems around the world that basically give us that power or what in terms of you know having money having value But ultimately to understand money we think it's

17:35 understanding money as a social currency as a social network and the systems around it therefore have implications of power if you understand how the social network and the social power of money works then you understand how power Works in financial systems right which currently is centralized and controlled by Banks and by governments and so forth right uh and this then comes down to another element which is when you study Financial literacy people often confuse financial literacy with oh I studied economics but it's completely different having sort of economical theory about sort of how how Economics work as a social system but understanding the role of money in our current world for instance is completely not understood so I'll give you exam for instance you know one example about sort of how money is created most people believe that money

18:21 might be created by a central bank or that money is created by you know the government but actually uh most of the money today is created by the private bank and how do they create that money basically if you get a mortgage from from a house or something actually you end up getting a mortgage they print that money it's digital money that's printed at a moment in time which creates an inflation of that cash and theoretically you need to pay that back but actually what's created is a kind of social debt one of the reasons why so much money has been poured into real estate is because the banks have come to realize that actually they make money through loans the money that they loan you which they print isn't actually money that uh they own they make money through interest so s makes angry I feel

19:07 angry towards the banks when you describe it because basically it's a bit of a fugazi isn't it like the banks create well the house prices go up Inc they have an incentive for their prices to go up they have an incentive for giving more loans because the more loans they give uh the more interest they can charge and the interest is their income yeah right so when you look at the balance sheet of a bank actually the the the the money the issue technically sits as a liability right um and the assets belong to the bank as the pledge of that liability right and so this housing bubble that we've seen over the last decades has really been an incentive system that incentivized Banks not to promote small entrepreneurs and businesses because it was more risky but to actually just continue giving real estate loans because that was

19:52 technically safe and basically just continue to charge interest from it thereby creating this huge inequity that we have in the world where if you're a landowning You're great and if you're not you're basically right plus even the land owners are enslaved they're basically working for the bank they don't even realize it you know that the P price of the house has been inflated they're paying huge amounts each month for that house and they're having to go to work to pay selling hours most of the time to pay for that that that thing this all being created from nothing yeah so so money is literally being created from nothing and I think this is the thing where you know they used to be the gold standard where you were supposed to they got rid of that long time they got rid of that you know also by the way they only got rid of it in the last century so this wasn't something that was uh something that they got rid of thousands of years ago this was something really just pren Nixon where the gold so money today is the first virtual reality that we've all

20:38 bought into is real really I mean we think it's real like this is most prevalent in Hong Kong where we're both from you know because they actually are a little bit more honest the banks actually print the money so each of the banks there Standard Charter HSBC they actually print the money and they have their own design for the money which Which is less transparent in places like America or the UK because it looks like it's come from the government right but yeah it and and as you say um so when people are listening to this and they they hopefully just blown their mind about how money Works how can they leverage this knowledge what what do you think is is my translation my quick guess is going to be like we'll take control of your network yes so so first of all uh you know the most important so money in itself accumulation of money is

21:24 therefore not to be viewed as traditional type of savings right you you hear so I hear a lot of people saying oh you know take a certain portion of your money putting in Savings in your bank get your like x% of interest but the problem is is that because of the way that money works and the inflation and the printing that happens in the space actually if you did that over the last few decades you would have actually had negative value on your interest the way to get there is ownership right basically holding the type of things that is one level higher than money so money is no longer that store of value that people used to think that it is but because you don't understand the financial system you don't understand the sort of how how money works you you basically get taken advantage of and so there's multiple classes of capital going slightly philosophical if you look at for instance bordo's example he says that

22:11 there's economic capital then there is symbolic Capital there is um there is social capital and there is cultural capital and ultimately we Aspire in a way kind of like this it's not exactly kind of diagram but essentially what we're saying economic capital which is money is actually the base level and it helps us get to these areas for instance I use economic capital to send my kids to better school so they can therefore have a better cultural capital or better Social Capital because they have a University degree if I have a University degree then I have symbolic Capital right I care about that type of stuff right if I don't have money I can't send it to the school I can't partake in this in fact there's an interesting thing about cultural capital I being from Hong Kong um you know how people who speak

22:57 with a slightly English accent in Hong Kong and you know basically our Caucasian often get treated better in Hong Kong that's cultural capital yeah I was an idiot young kid when I went to Hong Kong but they've let me uh in meetings to talk about important things I think CU I'm I'm from England somehow that gives me some weird English Posh accent whatever maybe if you're in the UK you wouldn't feel that but it's it's one of the things so for instance even like mannerisms right if you know how to behave in a meeting if you have table manners if you go somewhere that's a form of cultural capital but how do you get there is you get through essentially using money as a way to basically sort of travel through this right and this symbolic social and cultural capital is actually what's really powerful so owning real estate for instance or owning a house or owning your business or being an entrepreneur having equity in things actually ways in which you

23:43 enhance that and then grow that and these are the areas that actually are not naturally inflatable in the way that money is right so in Broad context I would say that money is a means to an end and it's a means to end to these things that matter to us as humans and we need to invest in ways in which we can grow into these things that we can own whether this be reputation in cultural sense ownership in terms of you know other cultural symbolic assets for instance but just saving money is actually not the right answer if you save money for your kids education over the last 10 years it'll be worth less today than uh what it was uh 10 years ago uh just because of the way it was inflated out and I think if we follow you know people who were listening to this the takeaway I'd probably try to give people is don't make money your top priority um you can

24:28 i i i for example think if someone's enjoying what they're doing every day they're rich you know there's plenty of people have' got a lot of money but they're trapped in working 50 hours a week as a lawyer for example and they don't enjoy it you know so maybe understanding how money works also makes you realize that it's not a real thing you need it because that system set up that you've got no choice right now you need money to pay for food and pay for rent but actually if you kind of restructure this around like making life about enjoying what you do I think you're already because you got the social capital yes and if you're enjoying your dayto day and around people you like you you've got the co cultural U money you know I I would argue for instance that a sort of well respected Chef in a local community restaurant enjoys much higher status in

25:16 symbolic social and cultural ways than perhaps the banker who makes a big bonus and drives a Ferrari but who happens and happens to live you know in some fancy District somewhere around the world um because of that capital and I think that's a respect people look for at the end they want that type of capital rather than necessar purely economic the econom is means to end you know how that expression is there's a point where having sort of endless amounts of money or you know lots of money somehow doesn't give you happiness well I think the threshold is 100,000 a year technically and after that it doesn't make any difference to your happiness right but I I want people as we get further into this video now we get into the other parts that you need to know remember how money works and how actually shouldn't control you you probably listening to this video wanting money we're going to help you get money

26:02 but remember what real value is what being truly rich is and we're going to come to that more in a minute next up ownership now I've had the privilege of hearing this from Yak directly over the years you don't own your and we're going to teach you how ownership works and why you need to own your stuff so go ahead now tell us what we need to know well the very basis of ownership is what you probably heard of many times in your own life or with your friends and it comes from this thing called property rights this is something that you have the privilege of today because you live in a democratic country at least most people watching this channel I presume and you if you own an asset it is truly yours by contract and there a government that's protecting it it wasn't and I I would say ownership starts not only just

26:50 by assets you own that's the way the way we think of it today but it starts with owning yourself I grew up in in in in in in Central Europe so in Germany and Austria right you know our last names last names like you know mea which means butcher for instance right or maybe if you're in certain sort of Township you have this name what is it why do we have these names is because for the longest times most of us didn't even own our own identity we were surfs working for a lord we didn't have our last name so imagine if you can't even own yourself what that actually means you know and and that's when people talk about sort of being a slave and being a surf we evolve from that I mean you know uh England was one of the first places in the world with you know the establishment you know the Magna cter to sort of talk about a Bill of Rights of some form that basically said that actually we can own our stuff and we have rights that are sovereign to us

27:37 Beyond some type of sort of you know sort of feudal power that can basically tell us what who we are and what we are slight of hand though because I mean nowadays people they think they own their lives but they don't they're controlled by the bills they have to pay and and actually even property rights right most people if you look at the contract either the bank owns your property or the crown in England has the right take your property off you at any point without even asking you yes so the basis though though on this point is that when you have property rights on something you TR truly own something then actually you can invest in this which then allows you to have an investment possibility and an investor uh investor mindset because if you don't own something you can't grow it because it's not yours and this by the way isn't

28:22 just in terms of for instance all of you who might be running a restaurant and you're building the success of the property by bringing lots of traffic into the restaurant big problem in Hong Kong after 10 years a landlord goes and says well thank you for that I'm going to rent out that restaurant to someone else will pay me higher rent and you're basically nothing you ended up building the value of that property even though it's not yours because you you never had ownership and this now goes into other areas of course which is basically our data right we don't own our data every time we post a photo on Instagram every time we share something on Tik Tok we're getting some kind of network attention we're getting likes and follows which is actually their money by the way right they're paying you in their social money of likes and follows but actually they're receiving all that value

29:08 creating their networks creating value and who owns that property who is able to create that value it's those platforms right if you're on social media right now you don't own that Community the social media platform you're on owns it right so so in the future you have to own if you work somewhere you need to own Equity where you work if you're on a platform you need to own a part of that platform otherwise you are not leveraging your own personal B back to the point about you're kind of a slave you don't even realize it back in the old days when you didn't even own your name correct and in very simple terms the most successful people in the world today are all people who have ownership in important things that matter to them or to society the wealthiest people in the world today are the biggest shareholders in the companies or are the biggest landowners in whatever you know property that they

29:54 have or own the equities in in you know what whatever companies or restaurants whatever they do they are actually the wealthy class and the ones that aren't are typically the labor class and this is one of the biggest problems we have today is that again because they don't understand money and they don't understand ownership and capitalism they therefore don't Valu it and the 1 percentile which is where all the wealth is going is actually the capital class which actually has ownership and so you need to have ownership in what you do and you need to own you know whatever time you invest in whether it's a company you work for a project you do you need to seek a way in which you can have ownership in this cuz that's the only way you can guarantee a long-term stake in this and you know in the past you know governments used to do this

30:40 with high taxes right they with you know in some ways you could say government took away a number of your rights through taxes by redistributing that to Society at large in some form or fashion but that no longer is true you know even though you know people are complaining about tax rates tax rates are much much smaller today than they were even 50 years ago but the tax system now is more efficient so like you know if someone pays me £500 I'm paying tax on it but that £500 they paid me they already paid tax on it and then when I give someone £500 that I pay tax on that person is also paying tax on it so it's just become more efficient doesn't it the way the tax system works than it used to be and I I I feel a lot of people listening are struggling to get ahead because they're probably paying in England 45% tax and then National Insurance then vat so translating this back to someone

31:25 listening who has no money we're basically teaching them a mindset right we're teaching them a mindset here to own what you work on yes and to basically think of yourself in everything you do as an investor in some form or fashion right uh I would argue that as humans we all have an investment mindset because we all growth oriented and investment mindset doesn't have to just mean money although that's obviously a very obvious one you want to invest your money to have ownership in something but ownership translates into all of our Social Circles I want to have a great relationship with my family I want to have great relationship with my friends in my particular Network actually when you're in your social network you stake a claim in it you have a stake in that which means you have a sense of ownership right and if you get ejected from that Community or that social network that's really painful

32:12 right that's something that actually you lose ownership in that that that aspect is really important to understand so meaning your investor mindset isn't just economical it's social and it's cultural as well I think it's also about control so recently someone approached us and said oh we'd like to Launch clothing brand their clothing Manufacturing Company they're like we'll make the clothes and then you sell them and we'll split the profit which initially is like oh that's great you know we don't have to make the clothes and we can we can make profit but then I realized on this mindset well I'd rather own the company that's making the clothes there's no point in building up their business and their brand and not having any benefit in our case for our community because we get the money we make our way to our community but but but the remembering each time you do a deal well do I own the source or am I just part of the

32:57 systems so are you not really owning what you're working on again people get tricked quite a and I think the question when you don't have ownership is what value are you receiving from it and we often get tricked into thinking that the value we're receiving is reasonable like for instance me creating a million user following as in your case on Instagram or on Tik Tok is great value for you when in fact the platform benefits much more broadly for instance right it's okay to have a partnership in which you have co-ownership and you work together but typically speaking bear in mind that you are renting their space right and you need to build your own Equity that's really important by the way a very practical point if you're building up a social media Network today and I've got 8 million people following me the way to really own it an example would be and what I'm doing is I'm asking people to join my mailing list I'm asking people

33:42 to connect to me directly so yes the social media platforms are using me and I'm using the social media platforms but once I build my community I asked them to join a platform where I am in control of that community and that Facebook can't take it away from me Instagram can't take it away from me I can always connect to you without their permission um I don't need to let them be the gatekeeper but it's a step-by-step process sometimes getting out of the uh let's call it the poverty trap partly like getting out of it is a step-by-step process right yes you need to basically begin to own some form of property in which is a step out of that and it doesn't have the other thing is it doesn't have to be expensive for instance I mean one of the more famous stories uh in in our particular world is that you know we used to have a lot of games and apps on the App Store on Apple and we were developing our products we thought on Apple and then um a year

34:29 later they didn't like us for a reason they never explained to us and simply theplatform us and removed all of our apps there like hundreds of apps that we lost uh you know hundreds of employees were potentially out of a job uh simply because someone said we don't like you and they didn't even give a proper reason right and so at least at least when you're in the government there is some kind of judicial process you can take them to court you know which is all around this idea of the defense of your property rights which doesn't exist in the digital world which uh you can now do but the best thing they have happened to you probably cuz then you developed your own platform that's right that's right and also that's one of the reasons why we ended up going into web 3 because we realized that's actually how we can have Sovereign ownership we're going to get into that in a minute really important ownership thanks that's really important for people to learn this to help them scale up their lives and be financially free later so uh

35:14 capitalism actually an evil word to a lot of people an opportunity for others I think it's not understood tell us what we need to know well capitalism really is if you understand capitalism you will understand property ownership and you will understand the value money and you will understand essentially how you can build your wealth um the whole world today is run on capitalism the top one percentile in the world understand what capitalism is and it starts with this idea of property ownership but what is the foundation of capitalism it really is the exchange of you know your free goods and services between people so in other words I if I'm able to have basically you know again I sort of draw this in people right if I'm making apples I can sell it to this guy who wants um you know Pairs and whatever and I create create a network of people and this basically creates an element where

36:00 you can have trade of of um uh and you can grow assets from them you know that actually you know Fame forms a foundation in which you have a free market right and you will know that in the places where where you have a free market uh you know that's where capitalism can can truly Thrive but it begins with this Foundation of that you must own something right in other words if you don't own your apples then you can't sell them right that means you can't actually partake in this thing called capitalism uh but in capitalism basically is the element which you basically can then build wealth from um as a as a business one of the problems that a lot of people have in capitalism is that look at they look at the concentration of wealth because of the fact that maybe a small number of people own the property and they look at capitalism as something evil because they can't partake in it

36:46 but I think the answer isn't that you try to take wealth away from the capitalist but rather you do what the capitalists do which is you become Property Owners you basically become a capitalist yourself the vast majority of the world where the wealth is concentrated is amongst the people who know capitalism versus the ones who don't right and it begins with property ownership and it begins with the idea that you have a free market I would also sort of say that you know when people build this thing called a monopoly which is a bad thing um which is what some people say is why capitalism is bad right you have basically you know one giant company controlling everything actually my my perspective on that is it's the opposite of capitalism right meaning uh when you build a monopoly which is what a big company becomes they destroy this idea of a free market right

37:32 for instance when you think of the advertising industry today when you're buying advertising on Facebook are you buying advertising if someone wants to buy advertising on Instagram to sort of uh use your platform is he talking to you directly no he's talking to Facebook and Facebook runs an algorithm that doesn't benefit your cause it actually benefits specifically um the platform and they will disintermediate I can't necessarily even buy traffic on Simon Channel if I wanted to because maybe Instagram doesn't want that they want to give you 10% and then they give you traffic somewhere else they decide who gets the money that's not a free market right so the foundation of capitalism also comes with this element of a free market I think people listening like funny you mentioned Monopoly because you know Monopoly was invented by a woman who was tried to highlight the problem with putting property ownership into a

38:18 capitalistic system so something shouldn't be in the capitalist system basic human needs like water these days electricity it's Brilliant Invention we're now stuck with but people need these things in life so a lot of people hate capitalism now because they see it as like what you know the evil landlord um which are many of them but they you know if if you play Monopoly there's only one winner at the end that's the problem so how how do people navigate that my answer and let me know if you think this is the right way to go is like be a capitalist like you said make a business that makes money own your network but then do good with that profit like put it back into your community for example or give it back to uh the cuse you care about so the foundational idea of capitalism is to say that humans are motivated by a form

39:04 of self-growth and some people translate it as greed right so in other words I'm driven and motivated by self-interest and if we're all driven and motivated by self-interest we will then achieve something better for society because I will make you know better Goods than you in a free and open market and the consumer who's applying and buying it is actually the one who benefits because we're competing to be better at what we do in other words capitalism is the engine of innovation if we didn't have capitalism you wouldn't have things like Tesla you wouldn't have companies like Google and apple you wouldn't have you know uh blockchain you wouldn't have you know you wouldn't have many of the innovations that we enjoy today including probably the sort of materials that we have when we go to a restaurant when we eat at home the materials in your house they've all been possible in the places because capitalism was that

39:51 driver because there was a human incentive for you to make that happen in other words I accumulated something for my personal interest which was a form of wealth um and therefore I made better and and nicer products as a result of that right that's that comes down to sort of the the the the root of why capitalism is so powerful but the reason why people don't like it is because uh for those who don't have access to that is because they don't see a way in which you can access this and the answer is that we need to have more people own Capital we think but we want everyone to be rich we want everyone to be property owners and so I think there is by the way when you're talking property not necessarily property realate but General assets like a company or your your your products let me let me let me put this how many people in the world use Apple

40:36 products I know like hundreds of millions right how many shareholders are owning Apple stock 40,000 40,000 40,000 institutions and individuals own Apple stock Microsoft's about 80,000 right but yet every person in the world basically uses either Microsoft or Apple product the answer we think is that every person who is a user of these products own should own a part of it because they that's the future that's what we think well a lot of companies a lot of capitalists won't want that though well lot of existing successful people won't want that well and I think this comes down to the power Dynamic but actually what will happen is you have more wealth overall so for instance kings and queens in the time I mean the Queen of England or the king of England as it is today right would uh had more power but

41:22 actually I would argue that they're wealthier today in terms of capital wealth because uh it's more decentralized it's more open and the whole market economies are greater because more people are partaking the capital I've we've seen in China the last 20 years 400 million people have come out of poverty into middle class and China you know less likely to go to war with other countries less likely for more poverty driven Wars which happen I think that that's made the world a safer and better place that so many people in China most people don't appreciate that China is probably more capitalist than most European I know yeah cuz they instantly think communism but it's you know taking away the word communism China has a respect for property rights people can make money in those places and so actually China is very capitalist in fact if you look at Asia you know for

42:07 instance two great examples have you look at South and North Korea 40 years ago South Korea had a lower GDP than North Korea and a smaller population what was different about South Korea versus North Korea South Korea adopted capitalism also democracy which is a tenant of that and uh as a result of that you know they actually grew their economy to become essentially the 12th largest GDP in the world um because initially it's decentralization of money so the money in North Korea is all with one family decentralization of power decentralization of power and and the capitalism in a way if you right can decentralize money in a way because then everyone gets a piece not just the king and queen think of the history here even just here in but hasn't it gone wrong like because now today you've got Facebook and you've got Google you got this massive companies that control I'll

42:54 get to that but if you look at the history of the UK all that power was centralized around essentially the monarchy right and the kings and queens and the Lords around that and then you had a merchant class that came and what did they have they didn't have an army what they had was capitalism they had money they had wealth they made the country richer but then they became more power that ended up decentralizing power so more capitalism more property ownership as in property rights actually with the distribution of that wealth and power creates a more balanced economy and so what we think the future should look like is essentially this thing that sort of RS talks about which is this prop property property owning democracy and if most of the world if most of us actually in a democratic framework were property owning in the

43:40 things that are meaningful I think society would be much better broadly speaking and what to your question as to what's wrong now is that we've gone the other way so we actually went more property owning somewhere 30 40 years ago and then essentially through tech companies the ownership of data and the concentration of power and also so the the I would say the Betrayal of money in the sense that you know um quanti QE quantitative easing or basically the central banks started printing money to solve for some of the financial issues actually created more disparity in the wealth created inflation it created massive inflation which basically um only benefited the people who were already property owning making it harder for people in the classic sense to become Property Owners well I mean physical property now is getting bought up by all the big companies as well so

44:25 you know it's it's no it's all getting centralized so again on the conclusion for capitalism because I think this is a very deep subject people listening I think maybe they need to use capitalism to build wealth but learn how to turn capitalism into a positive by sharing that wealth is that is that a way of something else well I think the important it goes back down to I think first of all don't look at capitalism as a bad thing don't you know I know that words like capitalism and socialism are ideologically charged words but look beyond that and essentially look at what it means for people who are capitalist how did they make money how did they you know leverage you got compete with those peoplewise you won win exactly and and you can't look at it just simply from I think there's a lot of people just reject capitalism oh that's bad they don't understand it but you need to understand it but I think social

45:11 capitalism is pretty interesting where you do good with the money I think it's a business model that can if you use it like if you were Amazon today and every time someone bought something from Amazon they benefited profit-wise from Amazon not just to select few you'd have a company everyone would want to use instead of Amazon yes I also think though that if you know if everyone was you know um in an open market where you're actually competing then the outcome of the product that you building will be broadly better and you know in this case Innovation is the winner um and but I also agree that you know in it's not specifically about social capitalism I think if you are a successful capitalist you will hire more people you will invest more as well and that's the idea as well imagine if apple and Facebook actually used 10% of the cash and and actually invested it into

45:58 companies building on the app store or just broadly speaking entrepreneurs they would basically have a fund that's larger than most VCS put together and that to me is another form of good right investing in communities and growing businesses you know which can also be profit generating is still a positive net positive impact on society okay web 3 in very simple terms web 3 is a internet of ownership meaning that for the first time you can actually own a piece of the internet which seems kind of funny cuz after all what are you owning at the end of the day and what you're able to own through web 3 is your data and the related Network effects that basically this data produces and why we're so excited about web 3 is that it is the one framework when I talked

46:43 earlier about ownership and how do we give Equity to all the world is you can have billions of people own things in web 3 which you can't do in the physical world you can't imagine how every citizen in the UK could now own the legal work alone would be too much work exactly but outside of the legal paperwork just the cost the capital the incumbent structures simply won't allow you to own you know a piece of England as it were uh if you're a UK citizen but in web 3 everyone through tokens Can essentially become a property owner in web 3 uh and you become an owner in those Network effects which you can go into later so that's really what it is it's the internet ownership to the extent that you know web 2 was the social internet in terms of where you could read and write to the web actually now you can read and write and own so you can own your followers you can own

47:30 your data you can own the value that's generated from it uh your identity is your Sovereign ownership right now the identity belongs to Google or Facebook or apple actually if Google deletes you you cease to exist as a as a business or as an individual for instance but in web 3 it's yours it's also decentralized right correct it's on a system that well they say is not hackable but you know you can make a mark as to what you own and it's there forever right so if someone's listening and they're like okay I'm quite like this web 3 thing how do I get involved what's what do you think the steps are to getting connected and involved in web 3 well I think the most important thing for web 3 is first you got to understand how it works um not a similar topic about money uh you do need to get a crypto wallet um I

48:15 think there's some topics in web 3 that you'll have heard of they' be like crypto and blockchain and again these are words sometimes even the metaverse right the these are words that might have some element of I guess charg to us in terms of what neot negative connotation just like the do com era the internet had a negative connotation for the longest time till people understood its power yeah but these are all elements essentially that that that form so try to get a wallet go learn how crypto Works how The blockchain Works how metaverse Works what else can be do right and I think and and of course the other thing is is that you can go on things like crypto Twitter right just say people people talk about crypto Twitter as a source of information but also there's tons of blogs and and and and resources out there which you can sort of learn but I guess the biggest

49:02 way if you want to get involved in web 3 is today it's become much more popular meaning that you'll probably find someone within your circle that will understand web 3 that's probably investing in tokens or doing something in the space and you just go talk to them and you'll find that that Community is very open because what we want is more people joining the space therefore they'll be very willing to help you explain and think about the space and there's talks on YouTube and there's videos for you for you to get resources on company-wise who who do you think is doing it who's interesting to look at if people want to go look at companies in web 3 that of course there's your business um yeah well outside of our our businesses and local Brands uh you can look at companies like coinbase coinbase is a is is is one of the leaders in in the exchanges they have lots of great information and resources that are out there for instance um and then of course

49:49 if you want to start sort of um learning more about the spaces different things like you can go on misari right misari is basically a crypto research type of place where you can get information on right and then of course there's news media like coin Telegraph uh and coindesk um there's coin Telegraph coindesk and forecast media right these are all places where you can get information and learn more about web 3 and of course help bank.com we're going to be doing more and more on web 3 because we want you to own a part of what we're building because that's the other thing isn't it I think people can actually own where they work it's not only where they where they put their time and Platforms in the future like Facebook equivalent there must be competitors coming up that are going to be building on web free and comp there's lots of I think again maybe some some

50:35 facts right I mean um you know web 3 today is about a $2.5 trillion Market but there's still only a small percentage of the world that is actually in the web 3 space and so earlier when you when when you talked to me about sort of you know I guess purpose of business and business philosophy if you want to be early in the space to me being in web three is kind of like being early in the internet and so if you partake in that space you'll get the same opportunities that you can have in you know the early internet days of making a mark having impact and purpose in in a space that has yet to Define itself right see a lot of people hear about crypto crypto went up crypto's gone down they think they're not early and it's all kind of come and gone but it's still very early right it is very early because you know when you talk

51:20 about volatility what are we really talking about right so at heart web 3 is a deeply capitalist system so I need to be be very clear about that and tokens are representation of network effects that we can own so when you think about owning a token you can actually own a network effect that is the property rights that we're talking about so you've probably heard of this thing called Bitcoin you've probably heard of ethereum these are tokens but why do people buy these tokens they don't buy the token because it gives you a great yield in fact Bitcoin gives you none right um they buy it because you become a member of that Network effect so you can participate in the growth of network and when more

52:05 people grow and build in that Network like developers and applications for instance you can benefit simply from that ownership tokens represent these Network effects one crude example is imagine if Instagram had a token actually those tokens would be in the form of likes which I think is a form of social currency likes is a social currency when you think about followers that is another kind of a follow is another kind of social currency how many times has someone come over to you and said hey you know Simon we want to you want to can can can you follow me please why do they want that because they want your social currency attached to them you are giving them credit right and that credit essentially creates a credit debit relationship no different than it does with money right except in this case likes and follow are an illusion because you don't own it but tokens is

52:51 actually a way to represent true ownership in that which you can then trade and you can give to someone and you can pass it on for actual value that then can be exchanged and it creates a market because you have property ownership and with property ownership as we said earlier that is the foundation of capitalism which is why I say again that uh you know it's inherently a capitalist system there is no way today in which you can own a network effect if you want to own partake in the network effect of Apple you have to sign the Apple developer

…