012 | Peter Halm | Joint Venture SupremoJoint venture supremo, Peter Halm, shares with Nicola Cairncross, his strategy for surviving if you put him in a city with no contacts, no internet and a $1,000 in his pocket.Connect with Peterjointventuremasters.comPrefer to read? Nicola: Hi, I’m Nicola Cairncross, and you’re listening to “The Money Gym” podcast, where I interview successful entrepreneurs and investors, and ask them, if they could go back in time, and give their younger selves one big tip about money, what would it be? I really hope you enjoy the show.Born in Brighton, England in 1967, Peter home had a standard education that finished abruptly at age 13 and a half. for personal reasons he had to start work at a very early age. After moving from job to job for six years, he ended up in heavy engineering and property development.In 1999, after working for a very long 19 years he decided to retire, a year or two off and move to the Canary Islands. He and his wife are qualified divers, so that was the plan. But they ended up in Lanzarote he at the end of 1999 amid the timeshare boom, and he ended up selling multimillion pound villas to very well heeled individuals who grace the offices of his newly found business partner.They then returned to England because they missed the English food and the seasons, excellent quality Spanish red rioja whose was playing havoc with his liver. He became a successful property investor, and ended up buying and developing property in the Czech Republic where his wife was from originally. He lost everything along with many other people in the credit crunch, global recession and housing market crash in 2010.Since then, he’s rebuilt his career as a joint venture supremo putting people together, we’ve got big lists and great products. He is now one of the founders of the Las Vegas mastermind, where over 100 personal development experts come together to share, learn, and just have an amazing time. Pete’s been a really good friend of mine for many years. So I hope you’re going to enjoy what he’s got to say about money.What have you learned about business and money and yourself money, and how to use money?Peter: Depending on what type of business that I’m actually operating in, it’s all about understanding risk. It’s all about understanding what levels you are prepared to go to. With me, large portions of money I was dealing with, where when I was into property development, and we were dealing in millions of pounds, leverage money from banks, different institutions, and our own capital as well.From there on, it becomes a very arguable point, because it’s down to what comfort you’re prepared to live with. I do believe in putting a certain amount of money away on a personal basis, regardless of the situation every week, and as a business, setting yourself up for investment or expansion, you should do the same.If you’re going into property or into an industry where in quite it requires a large amount of investment to potentially see a large capital return whether you’re investing in stock or in land, or your buildings something or or any particular product, then it’s down to your to your risk what you’re comfortable with.Obviously, the higher the risk, the more chance you have living on the street the following week. The sensible thing is, as you already pointed out, Nicola, regardless of your situation is to percentage of your income a by each week, increase that percentage as you feel more comfortable.But this all all goes out the window, when you look at your your risk reward basis, what are you prepared to invest? What are you prepared to gamble because, quite frankly, we could talk about business money all day long. But I don’t think there are many business people out there today that got started.If they did get started with large bank accounts, and they don’t count in this category anyway. But people that started at some point or rather, in business, as an entrepreneur will have taken a educated risk, they would have gambled at one point or other.Nicola: Even if you’re bootstrapping a business, you’re still investing your time that could have been used to go off and earn money elsewhere, aren’t you? A lot of people at the beginning discount the value of their time and the opportunity.Peter: Absolutely, I think that this may be pulling off the subjects a little but I’m quite passionate this because I think it’s very relevant. When you’re looking at going into business personally. You’re talking about investing x, y, z, some people will say that’s an investment that could potentially damage my family’s well being in a short or long term basis.But from another point of view, you may be at this point in time employed by somebody else. You have no idea of that company’s financials or its position in the marketplace? It could close tomorrow. You would still be without a job. When you look at risk in your own arena, starting your own business, investing your own money into your own project. There’s a risk and there’s a reward.The reward should be phenomenally higher in your own business than it is working as an employee for somebody else and there’s nothing wrong with that whatsoever. Don’t make me think that there is but you never know what your position is, within that company. Whether a company is secure, it’s on the verge of a takeover, whether it’s, you know, on the verge of bankruptcy itself.There are risks and rewards in business, and when you’re referring to business money, and referring to recapitalizing a business or reinvesting in a business, whether or not it’s your money and investors money, a bank’s money, whether or not you’re talking about saving a percentage of your personal money or your business money to reinvest later, there’s always risks, there’s always rewards. It depends on what you’re comfortable with. That’s my view, Nicola, there’s no set principle for me.Nicola: No, as you were talking, I was reminded very strongly of one of the guys I play poker with who is a born salesman, he’s a brilliant salesman, he’s a great face to face and telephone salesman. But he he’s in a situation at the moment where three or four companies that he’s gone to work for him just closed, and he’s been thrown back on looking for another job.He had one, at one point, all the business cards, he’d been in a job for about five or six years, he have all the business cards, all the companies that he’d been to selling coffee, I think, or water. He knew he had this huge database of potential customers for any for any business, in his pocket in his business card Rolodex if you like, but because he’s not techie, he’s never transferred it into a database.At one point, I said to him, you can just take photos load from your mobile phone, and it goes straight into a database. He said, Oh! I didn’t know that. So anyway, his boss paid for that. And he managed to get all the contacts into the database. But when that company closed, he lost all his own context, he thrown away the business cars. So he also got the contacts out of him and company clothes, leaving him high and dry, and he didn’t even have his business cards anymore.Now he’s in a situation where he keeps looking for a job. I keep saying to him, why don’t you go self employed as a salesperson, you’re brilliant at it, and people are crying out for good. Sales people always says, I’ve got to get a job. I need to I need a steady income and a car and all that stuff and a wage. But actually, he’s put himself in at bigger risk by not going out and being a freelance person who generates his own businesses name.Peter: Absolutely, because even though by the sound of it, this poor chaps experienced himself by by being made redundant, or losing his job and ending up with nothing. you’d actually think that would make somebody think, Well, okay, maybe I should look at the risk reward myself. It’s a fine line.Nicola: If you’re a salesman, you get a job, you get a car, you get a salary, you get a basic, you get paid, commissions on target earnings, he can’t even comprehend that there could be another way really.Peter: Salesman is a very motivated person normally, and considering they work off that under their own steam using their own initiative. I’ve always thought a salesman’s probably the first person that could get the contract that step into being self employed as an entrepreneur.Nicola: He sell your business and your products and services. So we’ve covered your business mind, we’ve covered your business marketing in a very different way. But I hope, I know it’s brought value to people listening. We’ve talked a bit about business money.I’m just trying to think the things I’ve learned about business money apart from how to manage your money, you touch several times on that whole, putting some aside every week, no matter what your circumstances, and I think we’ve all grown to believe that we’ve if you’re earning a tiny amount, if you put a tiny amount that way, as a percentage, then it does mount up and it does something psychologically to your brain, doesn’t it? It tells you somehow that if you’ve got a bit of money stashed away, that you’re not as poor as you, like, first appear or feel. And then it helps, doesn’t it?Peter: Absolutely, well with me, to be honest, it sits there for a few weeks, and another deal comes along and I spend it. I didn’t do it, I couldn’t pick up the deal.Nicola: Now you invest it, you don’t spend it, spending is different.Peter: Yes, I invest it, then I have to look at that investment as being the podcaster that I once had. But then you start building again. So it’s never, ever a bad thing, never a bad thing. It must be done, as you say, you’re training your brain, and not only that, there is a feeling of security and well being and comfort from achieving that and actually having it.Nicola: The other thing that I’ve learned is that is about taking money out of business, while times are good. You can always let it back to the business, if you really must. But if people leave their money in their business, when times are good, then should a downturn come then that that money quickly get sucked, sucked away by the business, when perhaps it would have been better to take the money out all times we could have it safely somewhere else.Then if there’s a downturn in business, you can decide either to kill it or to relend it again, can’t you but a lot of people leave money sitting in the business, which has been a mistake.Peter: Absolutely, Nicola. I learned a friend of mine, who we both know, I won’t mention him unless you want me to. But we had a very successful business perfect prior to the recession. I’m quite proud of the fact although in hindsight, I realized how stupid I was.We lasted probably two or three months, lot longer than our much love job competition and I look back and think how stupid we were. We were structured so badly, that when the downturn came, they are there might their businesses were already cleaned out their businesses were ready to go back at any second.They literally drop their businesses like a like a hot bread, hot potato and we foolishly had capital. We weren’t over leveraged, we continue to invest in our business and was squashed anyway.Nicola: Personally, less well off than the other, be milking their business all along.Peter: Exactly. It’s a very foolish move, the business is there to serve you, not vice versa?Nicola: I think that’s an important distinction and The E Myth that really drums that one home, but this one about taking money out of the business all the time, and then you can choose whether to lend it back or kill the business wouldn’t? What if things don’t go so well? I think it helps us get clarity of thought, is this business worth anything?Yes, it’s done well, but did it do? Well, accidentally? Or did it do? Well, because it’s a solid business. If your money’s out somewhere else nice and safe, you can then decide whether you think your business is still a good investment.Peter: Absolutely, fundamentally, for me personally, life can excel in in many, many areas. If you have one thing, if you have choice, everything is better. If you have choice in where you’re going holiday, what you don’t need to be a billionaire or millionaire.You just need choice. Do I do this today? Do I not do this today? Do I get out of bed today? Yes or no? Do I work today? Yes or no? Do I have a holiday this year. So I know if you can deliver choice, if you can actually have choice in whether or not you shut your business, keep your business running. If you create scenarios where you are in control, you give yourself choice.In every arena you work within your life is happier, you can remove any element of doubt you possibly can and enable choice where possible. It doesn’t have to be opulent. It doesn’t have to be vast. It just needs to be your decision. It needs to be your choice. I think that is so key in life. Give yourself that opportunity at every opportunity. Does that make any sense?Nicola: Totally, It’s what when it’s one of the secrets of happiness, isn’t it? Short of feeling like you’re in control your own destiny and let you go choices is just so different to when you we’re talking from experience the right way because we’ve both been in situations where we’ve had no choices and it’s a great place to be so you’re right, you learn the lessons and go forward.Peter: When your backs against the wall, it’s too late isn’t it? I wish I’d taken the money out of the business or vice versa.Nicola: You don’t make good decisions when your backs against the wall either. So by giving yourself the luxury of choices, you’re likely to make better business decisions, I think as well.You’ve been listening to Nicola Cairncross on “The Money Gym” podcast. If you’d like to find out more about The Money Gym and how we can help you become more financially intelligent, just come on over to themoneygym.com. We’ll see you over there.If you want to get control, get out of debt, make more money then grow that money by becoming a confident investor, check out the amazing offer we are making around “The Money Gym” book today!