#236: Day Trader Turns Entrepreneur: How to Identify Market Trends and Create Value

Day traders and entrepreneurs have more in common that you might think. Maceo Jourdan and I take a deep dive into how market trends control both, and what lets the smart entrepreneur and trader know when to get in . . . and when to get the heck out as well. We’ll even go into how a mistake cost him $8 million and what you can do to avoid a similar fate. This episode is for you if you’re looking to be more market-savvy and find the right trend to hitch your wagon to.

 
What You Will Learn In Today's Podcast Interview

What entrepreneurs can learn from day traders (and what that means for your bottom line).
The incredible value of data and how to apply it successfully to your business for growth.
How entrepreneurs kill the value of their companies by not understanding true value.
Why Maceo waited to jump into the financial world and started a newsletter first.
Wal-Mart’s profit model and how it can work for anyone able to work on a larger scale.
Why you should look at trends first and capital efficiency second.
The importance of building in a buffer when making important decisions in emotional circumstances.
How Maceo recovered from a mistake that cost him $8 million.
Where to find small, concentrated pockets of value to capitalize on.
The effect the internet has had on market trends and value.
Why day traders understand business valuations better than first time entrepreneurs.
How Maceo grew a company from a $25,000 loan to $50 million in revenue.
The cost of being unaware that you’re running a job, not a company, and what to do about it.
Why Maceo says your business is not your baby.

 
Are You Growing The Value of Your Business

Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.

Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?

 
About the Guest:

Maceo Jourdan is a master day trader who uses his intimate knowledge of market trends—and how to predict them—to build better businesses and better entrepreneurs. He’s on the board of directors for Retire3 Media and cofounder of Canexxia, a company committed to acquiring in the home health care and hospice industries to execute on a buy-and-build strategy to improve quality of care and ease of access.

 
Quotes:

08:17 - “What traders intimately know that entrepreneurs don’t is value.” – Maceo Jourdan

14:56 - “The biggest risk as an entrepreneur is that you’re going to sell something and you’re not going to have enough buyers to relieve you of all of your inventory.” – Maceo Jourdan

18:41 - “Your solution is running to obsolescence.” – Maceo Jourdan

20:19 - “You can eat a lot off of a million contracts, but it’s going to end.” – Maceo Jourdan

20:30 - “Entrepreneurs don’t really dig down from this huge space that’s their market into a pocket of value.” – Maceo Jourdan

21:09 -

Day traders and entrepreneurs have more in common that you might think. Maceo Jourdan and I take a deep dive into how market trends control both, and what lets the smart entrepreneur and trader know when to get in . . . and when to get the heck out as well. We’ll even go into how a mistake cost him $8 million and what you can do to avoid a similar fate. This episode is for you if you’re looking to be more market-savvy and find the right trend to hitch your wagon to.

 
What You Will Learn In Today's Podcast Interview

What entrepreneurs can learn from day traders (and what that means for your bottom line).
The incredible value of data and how to apply it successfully to your business for growth.
How entrepreneurs kill the value of their companies by not understanding true value.
Why Maceo waited to jump into the financial world and started a newsletter first.
Wal-Mart’s profit model and how it can work for anyone able to work on a larger scale.
Why you should look at trends first and capital efficiency second.
The importance of building in a buffer when making important decisions in emotional circumstances.
How Maceo recovered from a mistake that cost him $8 million.
Where to find small, concentrated pockets of value to capitalize on.
The effect the internet has had on market trends and value.
Why day traders understand business valuations better than first time entrepreneurs.
How Maceo grew a company from a $25,000 loan to $50 million in revenue.
The cost of being unaware that you’re running a job, not a company, and what to do about it.
Why Maceo says your business is not your baby.

 
Are You Growing The Value of Your Business

Take The 2-Minute Assessment To Get Your Intentional Growth Score™ And 1-Page Vision Board.

Are your company's current initiatives intentionally designed to increase the value of the business?
Do you know what you want from your business long term and why?
Do you know what your company is worth?
Do you know the differences between Management, Family Transitions, PE Firms, ESOPs and Strategic Buyers?
Does the business have a written strategic plan on how to achieve the desired normalized EBITDA and valuation?

 
About the Guest:

Maceo Jourdan is a master day trader who uses his intimate knowledge of market trends—and how to predict them—to build better businesses and better entrepreneurs. He’s on the board of directors for Retire3 Media and cofounder of Canexxia, a company committed to acquiring in the home health care and hospice industries to execute on a buy-and-build strategy to improve quality of care and ease of access.

 
Quotes:

08:17 - “What traders intimately know that entrepreneurs don’t is value.” – Maceo Jourdan

14:56 - “The biggest risk as an entrepreneur is that you’re going to sell something and you’re not going to have enough buyers to relieve you of all of your inventory.” – Maceo Jourdan

18:41 - “Your solution is running to obsolescence.” – Maceo Jourdan

20:19 - “You can eat a lot off of a million contracts, but it’s going to end.” – Maceo Jourdan

20:30 - “Entrepreneurs don’t really dig down from this huge space that’s their market into a pocket of value.” – Maceo Jourdan

21:09 - “The internet gives us the ability to connect more pockets of value.” – Maceo Jourdan

22:51 - “Reverse-engineer your company to provide that, in a legitimate way.” – Maceo Jourdan

25:28 - “Go out and find where people are spending money.” – Maceo Jourdan

26:33 - “The real power of the internet is you can aggregate the long tail.” – Maceo Jourdan

30:54 - “As a business owner, you have to look at things how they are, not how you want them to be.” – Maceo Jourdan

37:27 - “The successful funds will make you see a psychologist.”  – Maceo Jourdan

40:58 - “No rational person is going to spend the decades it takes to amass 30, 40, 50, 60, 70 million in cash and then drop a couple of million on you without having a selection program.” – Maceo Jourdan

46:32 - “As the entrepreneur, you have to understand where your value comes from.” – Maceo Jourdan

50:51 - “How deep is your fund’s pocket?” – Maceo Jourdan

64:25 - “What we observe in the world is really a by-product of where somebody came from.” – Maceo Jourdan

 

Links and Resources:

Maceo Jourdan Official Website

Twitter: @maceojourdan

LinkedIn: Maceo Jourdan

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You can also reach out to me via email at [email protected], or on my LinkedIn.