January 2, 2025 • 25 mins
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Peggy Beauregard, a veteran in the world of commercial real estate, graces us with her presence to share over four decades of wisdom. Discover how Peggy transitioned from hands-on property management to becoming a limited partner, reaping the rewards of real estate without the everyday grind. Learn the ins and outs of diversifying income streams and the strategic advantage of turning to real estate as a steady asset class, especially as markets evolve. Beauregard's insights on embracing economic changes are not to be missed for those looking to secure financial growth and stability.
We dive deeper into the crucial subject of planning business exits, particularly as retirement looms on the horizon. Uncover the necessity of significant financial reserves, potentially up to $2.8 million, to ensure a comfortable future. We'll dispel myths surrounding business valuations and reveal why the real payoff is in the profits and dividends earned over the years. With examples of multigenerational businesses, she explores effective strategies for handing over the reins, whether through selling, liquidation, or generational succession, underscoring the need for foresight and preparation.
On a lighter note, we highlight the importance of nurturing financial literacy from a young age. Richard Wilson's approach to instilling entrepreneurial thinking in his children shines a light on the timeless principles of integrity and customer care. These values build a sustainable business and prepare the next generation for future success in an ever-changing world. Beauregard caps off our episode with a call for continuous learning and networking within the real estate industry, offering her expertise and encouragement for listeners eager to enhance their financial journeys.
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Hosted and produced by Gary Pageau
Edited by Olivia Pageau
Announcer: Erin Manning
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Erin Manning (00:02):
Welcome to the Dead Pixel Society podcast, the
photo imaging industry's leadingnews source.
Here's your host, Gary Pageau.
The Dead Pixels Society podcastis brought to you by Mediaclip,
Advertek Printing andIndependent Photo Imagers.
Gary Pageau (00:18):
Hello again and welcome to the Dead Pixels
Society podcast.
I'm your host, Gary Pageau, andtoday we're joined by Peggy
Beauregard of the Nest EggBuilder.
She's coming to us fromSouthern California and she's
been investing for 40 years.
Hi, Peggy, how are you today?
Peggy Beauregard (00:34):
I'm fantastic.
It's so nice of you to inviteme.
I'm very honored so.
Gary Pageau (00:41):
Peggy, tell me a little bit about your experience
as an investor over, you know,four decades, the kind of the
basics you learned that havecarried you now to this point.
Peggy Beauregard (00:58):
Well, thank you for asking that and
commercial real estate inparticular, because one of the
things I learned early on isthat the tax advantages when you
are invested in real estate aresomething that are not offered
in the stock market, and I'mkind of allergic to the stock
market.
So I have invested, I've been alender, I've done my own deals
(01:21):
where we bought properties.
I put people together, we buyproperties, we'd fix them up,
and then I became later, after Iput enough away, I started
becoming a what's called alimited partner, where I would
invest my money with somebodyelse and they did all the work.
Because there could be a pointand I know we're talking to a
(01:42):
lot of entrepreneurs, soentrepreneurs know that there's
a point where you're tired ofdoing all the hard work yourself
, right?
So I became what's called alimited partner, which means I
put my money in with somebodythat's still willing to do all
the hard work.
I work in the commercial world,so I work.
That means invest my moneybecause I did work to earn it.
(02:04):
Work that means invest my moneybecause I did work to earn it
and I put my money in like theself-storage mobile home parks,
multifamily industrial retail.
We're not doing a lot of officeright now, but that is coming
back a little bit It'll justtake a little bit longer and we
have to pay attention to all theeconomies.
Because we invest all over theUnited States and we work with
(02:25):
other people who want theirmoney invested.
Because we can all have ourprinciple working for us and
never worry about running out ofmoney, which is why I'm doing
this.
I expect that I'll be living tobe at least 100 years old,
because I have that longevity inmy family and I don't want to
run out of money.
(02:46):
I want my money.
Working at at least 8% usuallysomewhere around 20 makes me
much happier.
I like double-digit returns.
Double-digit returns are thebest.
Gary Pageau (02:59):
Everyone would love to have a 20% return.
I think these days.
Peggy Beauregard (03:01):
Yeah, well, they're not always.
Gary Pageau (03:04):
It's probably not realistic for most people, but
knowing that you know myaudience is primarily, you know,
small business owners,entrepreneurs in that space, who
you know they're runningprimarily service businesses,
right they're.
You know they're processingother people's work.
They're not really building acapital foundation.
(03:26):
What would you say to thosefolks in terms of maybe
diversifying their assetallocation to consider maybe
some real estate or commercialinvestments, or even just buying
the building they're leasing asan option?
Peggy Beauregard (03:39):
Oh, absolutely Well, and you have to set that
up differently so that you getthe right tax deductions.
But we know how to do all ofthat and we consult on things
like that.
Absolutely, we should all haveat least two or three or maybe
four or five or six differentincome streams coming in.
Can't just depend on our ownbusiness for that, particularly
(04:02):
if we're looking to transitionin some way.
We look at very different ways,like can you do some sort of
consulting?
Can you affiliate links?
All these people have affiliatelinks.
Well, you refer someone tosomeone else and get paid a
(04:23):
little bit every time you refersomeone.
So, just, it's just littlethings like that.
Again, I think real estate isthe best because you can invest
in a multiple number ofdifferent real estate and have
cash flow coming in from five orsix or 10 different assets and
you're set.
But yeah, you always have to belooking, because when you're in
(04:46):
, when you're entrepreneurial inthe business world, the
economies keep changing.
So you've got to be preparedbecause you never know what's
going to disappear or what'sgoing to reappear or what's you
know.
Gary Pageau (04:58):
Look at, we don't know because I mean, I mean
you're exactly right Because,like, for example, you know, in
our space, the photo imagingspace, right, there is the
chemical film print.
You know dynamic, right whereyou took a roll of film and you
process it and you need to'reprinting on.
You know glass and tile and andceramic and wood and canvas and
there's all these great thingswhere people are printing on um.
(05:31):
So so the process changed, butthe hopefully that the business
didn't change that much.
So but that also gets into someof the things that I think
business owners wrestle with,which is reinvesting back in
their business, Because ifyou're one of these small photo
companies and you have all theseopportunities to buy equipment,
(05:55):
to do all these other things,you may actually be limiting
your growth potential becauseyou're tying a capital you could
be using elsewhere.
Peggy Beauregard (06:02):
Right and you don't know where you're going to
need that.
You were talking about that andI was thinking you know, eight
tracks are gone, right, well,and all of that's gone.
You know, I have a computer now.
I used to be able to put, Iused to be able to put a dvd or
cd, and now there's no place toput any of that.
And I found a whole bunch ofpictures that are on cds and I'm
(06:25):
like how am I going to seewhat's on there?
Now they've got those cam,whatever those things are that
you, that the pictures just keeprunning Digital picture frames.
And they go on the Internet andthey go to all your family and I
don't know, my family's got alleverybody's got their own color
.
So if they've all been havingdinner together, and when they
(06:46):
get home they hit this thing andit changes the color.
So you know that person gothome.
Ok, like that's a whole world.
Whoever I mean whoever thoughtof that.
I think that is genius, becausethen you just hit it when you
walk in, you don't have to worry.
My sister's like call me whenyou get home and I always forget
because I'm home, yay.
Gary Pageau (07:08):
So anyway.
So let's get back to that sortof equation that a business
owner needs to look at in termsof you know investing, because
they would say, hey, they'reinvesting in their business, but
you know.
Let's say, you know theirbusiness probably isn't getting
your 8% to to 20 percent, thatyour target number is right.
I mean, if they're, if theirbusiness is getting you know
(07:31):
five or six percent, it'sprobably doing pretty well these
days.
Just knowing how the, you knowthe, the that business world is.
So do you?
Is there a formula or anequation or a guideline you have
for people to start looking atredirecting some of their
capital into outside of theirown business?
Is there a number or apercentage you think they need
(07:53):
to reach?
Peggy Beauregard (07:54):
Yeah, Well, I think you just opened a can of
worms.
Really, I talked to a lot ofpeople about money, money
working for you and retirement,because we some of us are never
going to retire but we stillwant to have that money there
(08:14):
that you need to look at howmuch it's costing you to live,
how much it's costing you tolive and you've got to take.
So there's some things thatyou're using for business right
now, but one day like your phone, your phone you can write your
phone off right now, but one daythat'll be your own and you
will have that expense comingout of your own pocket.
You need to look to see thatyou need to have somewhere like
(08:36):
between 10 and 20% of whateveryour money is.
So most people who need between10 and 20% of whatever your
money is, so most people whoneed between $60,000 and
$100,000 a year need to haveabout $2.8 million put away and
have that money working for them.
When you think about that, mostcompanies aren't going to sell
for that kind of money.
Right, You've got to be puttingyour money away.
(08:59):
When you are making a profit,you need to take part of that
profit and put it into a savingsaccount of some sort or life
insurance policy that hascompounding in it and then use
that cash value to invest thatmoney into something else.
Gary Pageau (09:15):
Right.
Peggy Beauregard (09:16):
That's why we like to teach people about how
to invest, what it takes to savethe money, and then how to
invest it.
Gary Pageau (09:24):
Yeah, because I think that is one of the things
that always I know in mymarketplace, where I talk to
business owners who are lookingto exit and maybe they expected
the valuation of their businessto be higher because they think
so highly of it and they justthink, well, of course it's
worth more.
I've done all this work and thereality is the reward came
(09:48):
before when you were taking yourdividends or your share or your
payout or however they were.
You're getting paid.
That was your reward.
The sale for the business isreally future potential.
Peggy Beauregard (10:01):
And here's one other thing Most people don't
know how to set themselves up tosell their business.
I started, I met this gal.
Actually she's quite an amazingwoman and I'm sorry her name
slips my mind at the minute, butshe wrote this book called Quit
no.
She wrote it's called Exit Richand she tells you all the
things you need to do to getready to sell your business.
(10:22):
So, just as a suggestion read abook or call her and there's
people that will consult withyou on all the things you need
to do to make sure you're readyto sell.
What is it that?
Not the asset, the class ofbusiness they all sell for
(10:42):
different, you know, two orthree times of whatever their
grosses or their net, dependingon what the appraisers say.
Gary Pageau (10:50):
And all different multiples depending on.
Peggy Beauregard (10:52):
Yeah, the multiples and your EBITDA and
all that stuff.
You've got to know all of that.
Gary Pageau (10:59):
But you know, sadly , you know, I think when some
people get into some businessesthey are not thinking about how
they're going to get out of it,right?
Peggy Beauregard (11:09):
When you go into real estate, that's one of
the before you even put yourmoney in, you want to know what
the exit strategies are.
So that's the great thing aboutreal estate is are there exit
strategies?
And we've got people that whatthey do is that some of them
like turn the property, fix itup, sell it in five to seven
years or whatever their timelineis.
(11:31):
We have other people thatactually buy you out because
they don't want you in.
They want to be owners.
So you get money back and nowyou have all your money to
reinvest.
So you need to know your exitstrategy.
Gary Pageau (11:44):
But I would say that's true for almost every
business, right that no matterwhat you're doing, you should
have an idea how you're going toget out of it, whether it's
even just liquidation, right?
Like, hey, listen, I know after10 years I'm just going to
liquidate and be done, and I setmy finances up for that.
You're not forced to do that,but you know, or else I'm going
(12:07):
to sell.
And then how do you set up thebusiness to sell at the right?
Peggy Beauregard (12:08):
multiple that you want?
Yep, my grandfather startedArborist.
He was Arborist, started abusiness in the depression and
it went three generations andthey just sold it to another
company.
So, yeah, you need to know.
So what how it used to work is.
My children will take over thebusiness, right, but that's
doesn't really exist that muchanymore.
Gary Pageau (12:30):
I don't think well it does, may not exist.
I mean, it's interestingbecause it kind of depends on
the industry too.
Right, like I like there's onesegment of the industry that I
work in, the the volumephotographer, and it's right,
the people who take schoolpictures, and there are
businesses there that are 100years old and they're run by the
grandkids and it's it's amazinghow they've trained and there's
(12:53):
multiple examples in thatbusiness of of
multi-generational familybusinesses and they know they're
an anomaly because they knowmost of them don't make the
transition Even beyond thesecond generation.
It's very unusual becausesometimes the kids are not the
best people to take the businessover.
Peggy Beauregard (13:15):
That's right.
It all depends on how you raisethem and then what their
interests are.
That's why we like to starttalking to our children when
they're four and five years oldand bring them into the business
to start working on it early,so that they you as a parent
will know whether this is theright thing for them or not, so
that you're prepared thatthey're not going to be the
(13:36):
right people to run yourbusiness life yeah, yeah.
Gary Pageau (13:41):
Well, you know there's a lot of people don't,
who don't want to, you know,address the reality of life
decisions, right, they want toput things off, and put things
off, and put things off, and Ithink business owners can do
that too.
They're so focused in theday-to-day operations that they
don't look at you know the wayout, what maybe the best out,
and you know either, if the kidsaren't going to take it over,
(14:03):
all right, do any of theemployees want to buy into it?
How will that?
Peggy Beauregard (14:07):
you know, because there's a lot of robbins
, tony robbins.
The only thing that tonyrobbins has is tony robbins.
So what did he do?
He brought all the people thatare his that work for his
company.
Gary Pageau (14:19):
They own the company what's going to happen
when he's not on stage anymore?
Peggy Beauregard (14:26):
well, they've got that.
They're working on that yeah,right they've got.
They've got everything thathe's ever said recorded.
Gary Pageau (14:33):
I don't know what they're going to do with it,
because all tony and tony willmake him into a hologram or
something and he'll just I don'tknow what.
Peggy Beauregard (14:40):
AI Exactly.
Gary Pageau (14:44):
I don't know.
I actually had a guest on thepodcast a while back who was
actually one of the fire walkerstrainers for Tony Robbins, so I
got.
So this is sort of a TonyRobbins revisited top section of
the podcast.
Peggy Beauregard (14:58):
Yeah.
I've walked the fire a fewtimes, not just with him, but
with others also.
Oh, that's cool.
Yeah, it's hot.
No, it actually is cool.
You don't even notice, sopeople get all crazy about it.
And Tony Robbins was theeasiest one I ever did.
It was like five steps.
I'm like oh, I'm good with this.
Gary Pageau (15:18):
Happened to be raining too so that was nice,
and they know what they're doing, because they've done so many
of them too right.
Peggy Beauregard (15:25):
Right, that's right, right.
And so all entrepreneurs.
They've done so many things ofwhatever they do, and they're
experts at it also.
One of the things is, again,our communication with our
children.
Don't start early enough inlife.
Again, our communication withour children don't start early
enough in life and then and thenpeople get upset because their
kids don't want to come into thebusiness, but they didn't bring
(15:47):
them in the business when theywere five or six years old but
don't you think people wouldargue that that is disrupting
like the work-life balancewouldn't?
Gary Pageau (15:57):
wouldn't most people say you know there's your
work life and your personallife and those should be well,
now it's kind of intertwined.
But what would you say to folkswho are saying well, you know,
it's two separate, I'll bringthem in later.
Why is five or six the age?
I guess is the question.
Peggy Beauregard (16:16):
I heard a Catholic priest tell someone
else that if you give me a child, by the time they're five I
will give you a Catholic, and Itook a lesson from that.
And if you give me a child andI talk to them about money, by
the time they are five they willunderstand money.
(16:36):
They will understand not all ofit, but they will understand
not all of it, but they willunderstand the basics of it.
They'll understand what ittakes to buy something, for
instance.
They'll understand what thework is like.
Any job I've ever had, I'vealways felt I should be doing
everything.
So how do I know what to expectof an employee if I haven't
(17:00):
done it myself?
Right?
So that kind of thing.
And how will your kids?
How will you know if your kidslike it or not if you don't
bring them into it early?
right part of their life.
Right, this is what mom and daddo.
Right, it's what I'm gonna do.
I go to a family office clubrichard wilson's family office
(17:20):
club and he his kids, say theywant something, and he tells
them okay, let's think of waysyou can earn the money so you
could buy that.
And he's got them out on thestreet with their lemonade
stands.
They are doing all I meanreally seriously.
I mean part of the book I'mputting together.
I will have his recording andtranscription in the book about
(17:44):
how he talks to his kids.
All his kids know everythingthere is to know and they're not
quite teenagers yet, butthey've started about money at a
very young age because it'spart of life, right?
We learn how to walk, we learnhow to talk, we learn how to do
that.
You know, tie our shoes andtell time.
(18:06):
Why isn't money a part of that?
Why isn't?
Gary Pageau (18:09):
kids today can't even make change, so which is
what shows that it's gone to theextreme on the other end?
Right yeah?
Peggy Beauregard (18:21):
Oh yeah, make change, yeah, but I mean, but
all of that, we we don't look atit as part of life, and yet it
is part of life.
We make up these stories but wedon't know, you don't know what
other people are thinking.
And if you actually sat downand talked to your kids and
listened to them, they haveideas right.
(18:41):
That could probably make you amillionaire If you listen to
them and take it in, becausekids come from nothing.
And then about this age ofseven or eight or nine, all of a
sudden you see they startacting differently and now they
start closing down a little bitand just life changes and we,
(19:03):
just we don't start early enoughwith our children.
My dad was in the service buthe wanted to be a farmer.
So when I was a little tiny kid, I was out there, uh, bailing
hay.
Well, they bailed the hay andthen we had to move the hay and
we had to feed the cows and wehad to be kids and we did all of
that, but we were just littlekids.
(19:25):
I know how to farm.
I live on a third of an acreand I farm.
I know.
I know that it's important tohave things go to seed so you
could take that seed so that youcould have more.
Gary Pageau (19:37):
Like how much do you think being raised with that
sort of taught you about longlike um, either long-term
planning or delayedgratification right, because I
think that's an issue withtoday's folks is, you know, I'd
rather spend the money now andnot have it for later because
(20:00):
who knows what will happen well,that's just part of the
upbringing.
Peggy Beauregard (20:04):
We give every.
We give our kids everything.
Now I mean when I went toschool, when we graduated.
We graduated from high schoolafter 12 years of school and
then we graduated from collegeafter four or five years or
whatever it took.
We didn't, there wasn't agraduation for every year.
You didn't get a reward notparticipating.
(20:25):
You had to wait.
Gary Pageau (20:27):
Right.
Peggy Beauregard (20:28):
Right.
Until you got through the 12thgrade in America, there was no
graduation there was.
You passed to the next Right.
You got your report card andyou looked at it and you went oh
, I'm going to the next gradeBarely or whatever.
It happened.
Gary Pageau (20:45):
Good things come to those who weighed is what I
always heard.
Peggy Beauregard (20:48):
There's that line, but why do we give kids
immediate gratification foreverything?
Gary Pageau (20:55):
I'm sure there's a lot of psychological and social
constructs around there which wecould delve well into, but then
we'd be not actually on ourtopic, which is how business
people can build their wealththis way.
Peggy Beauregard (21:11):
You have to wait till you're 16 to drive a
car.
You have to wait till you're 21to have a drink.
You have to wait till you're 18to vote, but you can start a
lemonade stand at seven.
But you could start a lemonadestand at seven.
But you can start a lemonadestand at any age.
That is correct.
Gary Pageau (21:30):
Unless you need a permit, which I hear now they're
doing in California.
They're making Well you?
Peggy Beauregard (21:34):
can go get a permit.
Nobody said how old you have tobe to be a permit, and I'm sure
you need to have somebody withyou that can sign for you,
because you can't sign your ownat your 18.
Gary Pageau (21:46):
So so there's a lot of discussion that you know
things are different now.
You know the old rules don'tapply.
Things are different now andyou know, you just don't
understand.
But there's also a school ofthought that says certain
concepts, certain things areuniversal, they're timeless and
they don't change.
(22:07):
And these are what we got tofocus on.
So what are some of thosetimeless things you think small
business owners need to focus onto get either their business
ready to sell or diversify?
Peggy Beauregard (22:20):
well integrity , keeping your word, taking care
of your customer.
Your customer may not be right,but you still need to treat the
customer with the golden goose.
They're the golden goose.
That's why we have our eggsright.
(22:41):
We have the eggs you've got.
You've got to take what'simportant.
Why did you start this business?
Did you start this business tomake money or did you start this
business to serve?
We started our business toserve.
We want to show people there'sa way to have a better life by
(23:01):
investing in real estate, goodtax deductions and to be able to
build so that you can haveanything you want without
breaking your butt and having agood life like and all those
things are important but youknow it's interesting because I
(23:21):
would think some of the thingsyou were just talking about were
kind of like.
Gary Pageau (23:24):
You know, because of the Internet, with air quotes
going or you know, things aredifferent now.
People just will look for aquick fix or something like that
, and you know that may beadvantageous to some people.
There's always outliers who cancapitalize on something like
that.
But for the most part, for thevast majority of people, it's
(23:47):
what you are talking about Justgoing in, slogging, doing the
you know, having integrity,doing the hard work every day
and just showing up every dayand treating your customers
right.
Peggy Beauregard (24:00):
That's it, and what you want is you want your
customers to keep coming back,because you make more money with
a repeat customer than you dogetting a new customer.
Gary Pageau (24:10):
Right.
Peggy Beauregard (24:11):
So keep those customers and treat them like
the golden goose.
I don't know what else to sayabout that.
Gary Pageau (24:19):
Well, I'm sure you have a lot more to say because
you have your own podcast.
Where can people go to learnmore about your podcast and your
website and all the things youguys offer?
Peggy Beauregard (24:30):
oh, thanks for asking.
So we actually call ours a showbecause it's live and we have
it every tuesday at 2 pm pacific, 5 pm eastern, and it's at the
nest egg builder showcom and wehave different speakers.
Come on, so you might be a goodspeaker.
We have the.
We have the people who have thereal estate.
(24:51):
Come on.
We have cpas and all thedifferent aspects of real estate
.
Come on, and and a few bonuseshere and there, and the idea is
that you get to learn somethingthat you didn't know before, and
and it's every week, becauseyou never can learn too much.
Gary Pageau (25:11):
Absolutely Well.
Thank you, peggy, for your timeand for your knowledge.
I have learned a lot and I'vebeen reassured that the next
generation, if raised properly,will be able to take care of us
in our older age.
Peggy Beauregard (25:23):
I hope so, and if anybody does want to get a
hold of me, I'm on LinkedIn.
I'm happy to set up a time tohave a conversation with anyone.
Gary Pageau (25:32):
Great Well, thank you so much.
Peggy, Take care.
Peggy Beauregard (25:34):
Thank you, gary, it's been a great honor.
Erin Manning (25:38):
Thank you for listening to the Dead Pixel
Society podcast.
Read more great stories andsign up for the newsletter at
wwwthedeadpix.
Welcome to the Dead Pixel Society podcast, the
photo imaging industry's leadingnews source.
Here's your host, Gary Pageau.
The Dead Pixels Society podcastis brought to you by Mediaclip,
Advertek Printing andIndependent Photo Imagers.
Gary Pageau (00:18):
Hello again and welcome to the Dead Pixels
Society podcast.
I'm your host, Gary Pageau, andtoday we're joined by Peggy
Beauregard of the Nest EggBuilder.
She's coming to us fromSouthern California and she's
been investing for 40 years.
Hi, Peggy, how are you today?
Peggy Beauregard (00:34):
I'm fantastic.
It's so nice of you to inviteme.
I'm very honored so.
Gary Pageau (00:41):
Peggy, tell me a little bit about your experience
as an investor over, you know,four decades, the kind of the
basics you learned that havecarried you now to this point.
Peggy Beauregard (00:58):
Well, thank you for asking that and
commercial real estate inparticular, because one of the
things I learned early on isthat the tax advantages when you
are invested in real estate aresomething that are not offered
in the stock market, and I'mkind of allergic to the stock
market.
So I have invested, I've been alender, I've done my own deals
(01:21):
where we bought properties.
I put people together, we buyproperties, we'd fix them up,
and then I became later, after Iput enough away, I started
becoming a what's called alimited partner, where I would
invest my money with somebodyelse and they did all the work.
Because there could be a pointand I know we're talking to a
(01:42):
lot of entrepreneurs, soentrepreneurs know that there's
a point where you're tired ofdoing all the hard work yourself
, right?
So I became what's called alimited partner, which means I
put my money in with somebodythat's still willing to do all
the hard work.
I work in the commercial world,so I work.
That means invest my moneybecause I did work to earn it.
(02:04):
Work that means invest my moneybecause I did work to earn it
and I put my money in like theself-storage mobile home parks,
multifamily industrial retail.
We're not doing a lot of officeright now, but that is coming
back a little bit It'll justtake a little bit longer and we
have to pay attention to all theeconomies.
Because we invest all over theUnited States and we work with
(02:25):
other people who want theirmoney invested.
Because we can all have ourprinciple working for us and
never worry about running out ofmoney, which is why I'm doing
this.
I expect that I'll be living tobe at least 100 years old,
because I have that longevity inmy family and I don't want to
run out of money.
(02:46):
I want my money.
Working at at least 8% usuallysomewhere around 20 makes me
much happier.
I like double-digit returns.
Double-digit returns are thebest.
Gary Pageau (02:59):
Everyone would love to have a 20% return.
I think these days.
Peggy Beauregard (03:01):
Yeah, well, they're not always.
Gary Pageau (03:04):
It's probably not realistic for most people, but
knowing that you know myaudience is primarily, you know,
small business owners,entrepreneurs in that space, who
you know they're runningprimarily service businesses,
right they're.
You know they're processingother people's work.
They're not really building acapital foundation.
(03:26):
What would you say to thosefolks in terms of maybe
diversifying their assetallocation to consider maybe
some real estate or commercialinvestments, or even just buying
the building they're leasing asan option?
Peggy Beauregard (03:39):
Oh, absolutely Well, and you have to set that
up differently so that you getthe right tax deductions.
But we know how to do all ofthat and we consult on things
like that.
Absolutely, we should all haveat least two or three or maybe
four or five or six differentincome streams coming in.
Can't just depend on our ownbusiness for that, particularly
(04:02):
if we're looking to transitionin some way.
We look at very different ways,like can you do some sort of
consulting?
Can you affiliate links?
All these people have affiliatelinks.
Well, you refer someone tosomeone else and get paid a
(04:23):
little bit every time you refersomeone.
So, just, it's just littlethings like that.
Again, I think real estate isthe best because you can invest
in a multiple number ofdifferent real estate and have
cash flow coming in from five orsix or 10 different assets and
you're set.
But yeah, you always have to belooking, because when you're in
(04:46):
, when you're entrepreneurial inthe business world, the
economies keep changing.
So you've got to be preparedbecause you never know what's
going to disappear or what'sgoing to reappear or what's you
know.
Gary Pageau (04:58):
Look at, we don't know because I mean, I mean
you're exactly right Because,like, for example, you know, in
our space, the photo imagingspace, right, there is the
chemical film print.
You know dynamic, right whereyou took a roll of film and you
process it and you need to'reprinting on.
You know glass and tile and andceramic and wood and canvas and
there's all these great thingswhere people are printing on um.
(05:31):
So so the process changed, butthe hopefully that the business
didn't change that much.
So but that also gets into someof the things that I think
business owners wrestle with,which is reinvesting back in
their business, Because ifyou're one of these small photo
companies and you have all theseopportunities to buy equipment,
(05:55):
to do all these other things,you may actually be limiting
your growth potential becauseyou're tying a capital you could
be using elsewhere.
Peggy Beauregard (06:02):
Right and you don't know where you're going to
need that.
You were talking about that andI was thinking you know, eight
tracks are gone, right, well,and all of that's gone.
You know, I have a computer now.
I used to be able to put, Iused to be able to put a dvd or
cd, and now there's no place toput any of that.
And I found a whole bunch ofpictures that are on cds and I'm
(06:25):
like how am I going to seewhat's on there?
Now they've got those cam,whatever those things are that
you, that the pictures just keeprunning Digital picture frames.
And they go on the Internet andthey go to all your family and I
don't know, my family's got alleverybody's got their own color
.
So if they've all been havingdinner together, and when they
(06:46):
get home they hit this thing andit changes the color.
So you know that person gothome.
Ok, like that's a whole world.
Whoever I mean whoever thoughtof that.
I think that is genius, becausethen you just hit it when you
walk in, you don't have to worry.
My sister's like call me whenyou get home and I always forget
because I'm home, yay.
Gary Pageau (07:08):
So anyway.
So let's get back to that sortof equation that a business
owner needs to look at in termsof you know investing, because
they would say, hey, they'reinvesting in their business, but
you know.
Let's say, you know theirbusiness probably isn't getting
your 8% to to 20 percent, thatyour target number is right.
I mean, if they're, if theirbusiness is getting you know
(07:31):
five or six percent, it'sprobably doing pretty well these
days.
Just knowing how the, you knowthe, the that business world is.
So do you?
Is there a formula or anequation or a guideline you have
for people to start looking atredirecting some of their
capital into outside of theirown business?
Is there a number or apercentage you think they need
(07:53):
to reach?
Peggy Beauregard (07:54):
Yeah, Well, I think you just opened a can of
worms.
Really, I talked to a lot ofpeople about money, money
working for you and retirement,because we some of us are never
going to retire but we stillwant to have that money there
(08:14):
that you need to look at howmuch it's costing you to live,
how much it's costing you tolive and you've got to take.
So there's some things thatyou're using for business right
now, but one day like your phone, your phone you can write your
phone off right now, but one daythat'll be your own and you
will have that expense comingout of your own pocket.
You need to look to see thatyou need to have somewhere like
(08:36):
between 10 and 20% of whateveryour money is.
So most people who need between10 and 20% of whatever your
money is, so most people whoneed between $60,000 and
$100,000 a year need to haveabout $2.8 million put away and
have that money working for them.
When you think about that, mostcompanies aren't going to sell
for that kind of money.
Right, You've got to be puttingyour money away.
(08:59):
When you are making a profit,you need to take part of that
profit and put it into a savingsaccount of some sort or life
insurance policy that hascompounding in it and then use
that cash value to invest thatmoney into something else.
Gary Pageau (09:15):
Right.
Peggy Beauregard (09:16):
That's why we like to teach people about how
to invest, what it takes to savethe money, and then how to
invest it.
Gary Pageau (09:24):
Yeah, because I think that is one of the things
that always I know in mymarketplace, where I talk to
business owners who are lookingto exit and maybe they expected
the valuation of their businessto be higher because they think
so highly of it and they justthink, well, of course it's
worth more.
I've done all this work and thereality is the reward came
(09:48):
before when you were taking yourdividends or your share or your
payout or however they were.
You're getting paid.
That was your reward.
The sale for the business isreally future potential.
Peggy Beauregard (10:01):
And here's one other thing Most people don't
know how to set themselves up tosell their business.
I started, I met this gal.
Actually she's quite an amazingwoman and I'm sorry her name
slips my mind at the minute, butshe wrote this book called Quit
no.
She wrote it's called Exit Richand she tells you all the
things you need to do to getready to sell your business.
(10:22):
So, just as a suggestion read abook or call her and there's
people that will consult withyou on all the things you need
to do to make sure you're readyto sell.
What is it that?
Not the asset, the class ofbusiness they all sell for
(10:42):
different, you know, two orthree times of whatever their
grosses or their net, dependingon what the appraisers say.
Gary Pageau (10:50):
And all different multiples depending on.
Peggy Beauregard (10:52):
Yeah, the multiples and your EBITDA and
all that stuff.
You've got to know all of that.
Gary Pageau (10:59):
But you know, sadly , you know, I think when some
people get into some businessesthey are not thinking about how
they're going to get out of it,right?
Peggy Beauregard (11:09):
When you go into real estate, that's one of
the before you even put yourmoney in, you want to know what
the exit strategies are.
So that's the great thing aboutreal estate is are there exit
strategies?
And we've got people that whatthey do is that some of them
like turn the property, fix itup, sell it in five to seven
years or whatever their timelineis.
(11:31):
We have other people thatactually buy you out because
they don't want you in.
They want to be owners.
So you get money back and nowyou have all your money to
reinvest.
So you need to know your exitstrategy.
Gary Pageau (11:44):
But I would say that's true for almost every
business, right that no matterwhat you're doing, you should
have an idea how you're going toget out of it, whether it's
even just liquidation, right?
Like, hey, listen, I know after10 years I'm just going to
liquidate and be done, and I setmy finances up for that.
You're not forced to do that,but you know, or else I'm going
(12:07):
to sell.
And then how do you set up thebusiness to sell at the right?
Peggy Beauregard (12:08):
multiple that you want?
Yep, my grandfather startedArborist.
He was Arborist, started abusiness in the depression and
it went three generations andthey just sold it to another
company.
So, yeah, you need to know.
So what how it used to work is.
My children will take over thebusiness, right, but that's
doesn't really exist that muchanymore.
Gary Pageau (12:30):
I don't think well it does, may not exist.
I mean, it's interestingbecause it kind of depends on
the industry too.
Right, like I like there's onesegment of the industry that I
work in, the the volumephotographer, and it's right,
the people who take schoolpictures, and there are
businesses there that are 100years old and they're run by the
grandkids and it's it's amazinghow they've trained and there's
(12:53):
multiple examples in thatbusiness of of
multi-generational familybusinesses and they know they're
an anomaly because they knowmost of them don't make the
transition Even beyond thesecond generation.
It's very unusual becausesometimes the kids are not the
best people to take the businessover.
Peggy Beauregard (13:15):
That's right.
It all depends on how you raisethem and then what their
interests are.
That's why we like to starttalking to our children when
they're four and five years oldand bring them into the business
to start working on it early,so that they you as a parent
will know whether this is theright thing for them or not, so
that you're prepared thatthey're not going to be the
(13:36):
right people to run yourbusiness life yeah, yeah.
Gary Pageau (13:41):
Well, you know there's a lot of people don't,
who don't want to, you know,address the reality of life
decisions, right, they want toput things off, and put things
off, and put things off, and Ithink business owners can do
that too.
They're so focused in theday-to-day operations that they
don't look at you know the wayout, what maybe the best out,
and you know either, if the kidsaren't going to take it over,
(14:03):
all right, do any of theemployees want to buy into it?
How will that?
Peggy Beauregard (14:07):
you know, because there's a lot of robbins
, tony robbins.
The only thing that tonyrobbins has is tony robbins.
So what did he do?
He brought all the people thatare his that work for his
company.
Gary Pageau (14:19):
They own the company what's going to happen
when he's not on stage anymore?
Peggy Beauregard (14:26):
well, they've got that.
They're working on that yeah,right they've got.
They've got everything thathe's ever said recorded.
Gary Pageau (14:33):
I don't know what they're going to do with it,
because all tony and tony willmake him into a hologram or
something and he'll just I don'tknow what.
Peggy Beauregard (14:40):
AI Exactly.
Gary Pageau (14:44):
I don't know.
I actually had a guest on thepodcast a while back who was
actually one of the fire walkerstrainers for Tony Robbins, so I
got.
So this is sort of a TonyRobbins revisited top section of
the podcast.
Peggy Beauregard (14:58):
Yeah.
I've walked the fire a fewtimes, not just with him, but
with others also.
Oh, that's cool.
Yeah, it's hot.
No, it actually is cool.
You don't even notice, sopeople get all crazy about it.
And Tony Robbins was theeasiest one I ever did.
It was like five steps.
I'm like oh, I'm good with this.
Gary Pageau (15:18):
Happened to be raining too so that was nice,
and they know what they're doing, because they've done so many
of them too right.
Peggy Beauregard (15:25):
Right, that's right, right.
And so all entrepreneurs.
They've done so many things ofwhatever they do, and they're
experts at it also.
One of the things is, again,our communication with our
children.
Don't start early enough inlife.
Again, our communication withour children don't start early
enough in life and then and thenpeople get upset because their
kids don't want to come into thebusiness, but they didn't bring
(15:47):
them in the business when theywere five or six years old but
don't you think people wouldargue that that is disrupting
like the work-life balancewouldn't?
Gary Pageau (15:57):
wouldn't most people say you know there's your
work life and your personallife and those should be well,
now it's kind of intertwined.
But what would you say to folkswho are saying well, you know,
it's two separate, I'll bringthem in later.
Why is five or six the age?
I guess is the question.
Peggy Beauregard (16:16):
I heard a Catholic priest tell someone
else that if you give me a child, by the time they're five I
will give you a Catholic, and Itook a lesson from that.
And if you give me a child andI talk to them about money, by
the time they are five they willunderstand money.
(16:36):
They will understand not all ofit, but they will understand
not all of it, but they willunderstand the basics of it.
They'll understand what ittakes to buy something, for
instance.
They'll understand what thework is like.
Any job I've ever had, I'vealways felt I should be doing
everything.
So how do I know what to expectof an employee if I haven't
(17:00):
done it myself?
Right?
So that kind of thing.
And how will your kids?
How will you know if your kidslike it or not if you don't
bring them into it early?
right part of their life.
Right, this is what mom and daddo.
Right, it's what I'm gonna do.
I go to a family office clubrichard wilson's family office
(17:20):
club and he his kids, say theywant something, and he tells
them okay, let's think of waysyou can earn the money so you
could buy that.
And he's got them out on thestreet with their lemonade
stands.
They are doing all I meanreally seriously.
I mean part of the book I'mputting together.
I will have his recording andtranscription in the book about
(17:44):
how he talks to his kids.
All his kids know everythingthere is to know and they're not
quite teenagers yet, butthey've started about money at a
very young age because it'spart of life, right?
We learn how to walk, we learnhow to talk, we learn how to do
that.
You know, tie our shoes andtell time.
(18:06):
Why isn't money a part of that?
Why isn't?
Gary Pageau (18:09):
kids today can't even make change, so which is
what shows that it's gone to theextreme on the other end?
Right yeah?
Peggy Beauregard (18:21):
Oh yeah, make change, yeah, but I mean, but
all of that, we we don't look atit as part of life, and yet it
is part of life.
We make up these stories but wedon't know, you don't know what
other people are thinking.
And if you actually sat downand talked to your kids and
listened to them, they haveideas right.
(18:41):
That could probably make you amillionaire If you listen to
them and take it in, becausekids come from nothing.
And then about this age ofseven or eight or nine, all of a
sudden you see they startacting differently and now they
start closing down a little bitand just life changes and we,
(19:03):
just we don't start early enoughwith our children.
My dad was in the service buthe wanted to be a farmer.
So when I was a little tiny kid, I was out there, uh, bailing
hay.
Well, they bailed the hay andthen we had to move the hay and
we had to feed the cows and wehad to be kids and we did all of
that, but we were just littlekids.
(19:25):
I know how to farm.
I live on a third of an acreand I farm.
I know.
I know that it's important tohave things go to seed so you
could take that seed so that youcould have more.
Gary Pageau (19:37):
Like how much do you think being raised with that
sort of taught you about longlike um, either long-term
planning or delayedgratification right, because I
think that's an issue withtoday's folks is, you know, I'd
rather spend the money now andnot have it for later because
(20:00):
who knows what will happen well,that's just part of the
upbringing.
Peggy Beauregard (20:04):
We give every.
We give our kids everything.
Now I mean when I went toschool, when we graduated.
We graduated from high schoolafter 12 years of school and
then we graduated from collegeafter four or five years or
whatever it took.
We didn't, there wasn't agraduation for every year.
You didn't get a reward notparticipating.
(20:25):
You had to wait.
Gary Pageau (20:27):
Right.
Peggy Beauregard (20:28):
Right.
Until you got through the 12thgrade in America, there was no
graduation there was.
You passed to the next Right.
You got your report card andyou looked at it and you went oh
, I'm going to the next gradeBarely or whatever.
It happened.
Gary Pageau (20:45):
Good things come to those who weighed is what I
always heard.
Peggy Beauregard (20:48):
There's that line, but why do we give kids
immediate gratification foreverything?
Gary Pageau (20:55):
I'm sure there's a lot of psychological and social
constructs around there which wecould delve well into, but then
we'd be not actually on ourtopic, which is how business
people can build their wealththis way.
Peggy Beauregard (21:11):
You have to wait till you're 16 to drive a
car.
You have to wait till you're 21to have a drink.
You have to wait till you're 18to vote, but you can start a
lemonade stand at seven.
But you could start a lemonadestand at seven.
But you can start a lemonadestand at any age.
That is correct.
Gary Pageau (21:30):
Unless you need a permit, which I hear now they're
doing in California.
They're making Well you?
Peggy Beauregard (21:34):
can go get a permit.
Nobody said how old you have tobe to be a permit, and I'm sure
you need to have somebody withyou that can sign for you,
because you can't sign your ownat your 18.
Gary Pageau (21:46):
So so there's a lot of discussion that you know
things are different now.
You know the old rules don'tapply.
Things are different now andyou know, you just don't
understand.
But there's also a school ofthought that says certain
concepts, certain things areuniversal, they're timeless and
they don't change.
(22:07):
And these are what we got tofocus on.
So what are some of thosetimeless things you think small
business owners need to focus onto get either their business
ready to sell or diversify?
Peggy Beauregard (22:20):
well integrity , keeping your word, taking care
of your customer.
Your customer may not be right,but you still need to treat the
customer with the golden goose.
They're the golden goose.
That's why we have our eggsright.
(22:41):
We have the eggs you've got.
You've got to take what'simportant.
Why did you start this business?
Did you start this business tomake money or did you start this
business to serve?
We started our business toserve.
We want to show people there'sa way to have a better life by
(23:01):
investing in real estate, goodtax deductions and to be able to
build so that you can haveanything you want without
breaking your butt and having agood life like and all those
things are important but youknow it's interesting because I
(23:21):
would think some of the thingsyou were just talking about were
kind of like.
Gary Pageau (23:24):
You know, because of the Internet, with air quotes
going or you know, things aredifferent now.
People just will look for aquick fix or something like that
, and you know that may beadvantageous to some people.
There's always outliers who cancapitalize on something like
that.
But for the most part, for thevast majority of people, it's
(23:47):
what you are talking about Justgoing in, slogging, doing the
you know, having integrity,doing the hard work every day
and just showing up every dayand treating your customers
right.
Peggy Beauregard (24:00):
That's it, and what you want is you want your
customers to keep coming back,because you make more money with
a repeat customer than you dogetting a new customer.
Gary Pageau (24:10):
Right.
Peggy Beauregard (24:11):
So keep those customers and treat them like
the golden goose.
I don't know what else to sayabout that.
Gary Pageau (24:19):
Well, I'm sure you have a lot more to say because
you have your own podcast.
Where can people go to learnmore about your podcast and your
website and all the things youguys offer?
Peggy Beauregard (24:30):
oh, thanks for asking.
So we actually call ours a showbecause it's live and we have
it every tuesday at 2 pm pacific, 5 pm eastern, and it's at the
nest egg builder showcom and wehave different speakers.
Come on, so you might be a goodspeaker.
We have the.
We have the people who have thereal estate.
(24:51):
Come on.
We have cpas and all thedifferent aspects of real estate
.
Come on, and and a few bonuseshere and there, and the idea is
that you get to learn somethingthat you didn't know before, and
and it's every week, becauseyou never can learn too much.
Gary Pageau (25:11):
Absolutely Well.
Thank you, peggy, for your timeand for your knowledge.
I have learned a lot and I'vebeen reassured that the next
generation, if raised properly,will be able to take care of us
in our older age.
Peggy Beauregard (25:23):
I hope so, and if anybody does want to get a
hold of me, I'm on LinkedIn.
I'm happy to set up a time tohave a conversation with anyone.
Gary Pageau (25:32):
Great Well, thank you so much.
Peggy, Take care.
Peggy Beauregard (25:34):
Thank you, gary, it's been a great honor.
Erin Manning (25:38):
Thank you for listening to the Dead Pixel
Society podcast.
Read more great stories andsign up for the newsletter at
wwwthedeadpix.
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