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[00:00:13]

Hi, this is just B with Bethany, I want to talk today about money, there are just topics that people will sort of talk about and then won't talk about, like people do sort of talk about sex, but they don't talk about masturbation. People talk about money, meaning what they have and what they bought. And some people will say what they made or kind of try to find out what somebody else made. But they won't really talk about their true feelings about money like the bread winner.

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What does that what does that mean and what does that mean in marriage dynamics later? What does that mean as it pertains to prenups? And I hear I spoke to a man recently who's going through a divorce and he was married for, let's say, 20 years. And, you know, he really doesn't feel that because of the laws in the state that he's in, he should have to pay her half. And if he gets divorced now, he'd have to give her half.

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And his particular career is tied to like being liquid. So he stays married because it's cheaper to stay married. And is the woman entitled to 50 percent if she was the stay at home mom? I think so. But, you know, women have to have their own jobs and have their own identity and have their own careers, make their own money. So these dynamics get set up properly. In the beginning, it's when the woman has more money than the man that it gets confusing because I've been in that situation and I've been the one paying and I've been the one paying the lion's share of the rent and paying the bills in the home and signing all the checks.

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And it sets up a power struggle in other ways. So I wonder how people navigate that fundamentally. One of the other nice things about being married for so long, people are young. They may get married when they're twenty five. Nobody has anything. Everybody builds together and then they grow together. And whether or not one person was a stay at home mom or a woman who. Supports the man a lot of times that women support the men in the beginning, I've heard of doctors.

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The woman helps put the man through medical school from, you know, from being a nurse or from being used to call it a secretary and assistant. So there's a fine, fine balance, because I have to say that I think being at home is really just as hard I think, about there doing work in my house. That's why there is hammers going up. But I think about women who deal with have four kids, no help cleaning the house, cooking the meals, everything that breaks.

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Just this morning, the alarm went off my house. The fire alarm went off in the house. There are the cracks in the paint that I want to have to deal with. There's my daughter, home schooling. There is laundry. The dogs literally just peed on two bean bags and a coffee table. There's a lot goes on at the house. At least I think men have really men that have stay at home. Women don't realize and we've talked about this for years.

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It's not a new concept. Obviously, that would be Mr. Mom a thousand years ago. But men go away into a cave in an office and a singular focused women are sitting around. And even when women have a job, they sort of somehow societally expected to be still cooking, still running to the nurse's office if your daughter or son doesn't feel well and running a household decorating for holidays. So I just think that the male female gender conversation will go on forever and should continue.

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And I want to hear what you all think about it. I think these things have to be discussed in the beginning of a relationship. These are fundamental dynamics. I know a very successful woman who makes a lot of money and she doesn't want to go out with a man who makes less money than her. She's definitely not a gold digger. She makes her own money, but she doesn't want. To feel that feeling because it can feel awkward. So, I mean, things have to be discussed.

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That's all I'm saying is very awkward and it has to be discussed because you don't want to stretch people and you also don't want people to pretend in the beginning they can handle. And then later they're like, I can't handle this. Let me know what you all think about that, because I'm sure that you have been in maybe more successful relationships, maybe more relationships, maybe longer relationships, maybe. I don't know what I'm talking about. Let's hear what you have to say.

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Thank you.

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I am so excited to share my conversation with John Paul DiGiorgio. I've actually known him for years and we have this connection. A thousand years ago, he was really good friends of one of my friends. But then when I used to talk about the skinny girl Margarita, I used to mention Patrón in the initial recipe just off the top of my head. And then that company would send me cases and I would ask them if we could do some sort of a spokesperson deal or anything.

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And they weren't into it. And it's just funny because he was sort of my entree into tequila. He has so much more going on. He is a philanthropist and entrepreneur who founded the Patroni Spirits Company, as I just mentioned, co-founded Paul Mitchell Hair Products. He signed the Giving Pledge in 2011 and has contributed to countless life changing organizations. Today, we're going to talk about how to be a business person and a philanthropist and how you literally started out sleeping in his car only to then become a billionaire.

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And of course, we're going to talk about tequila. But he is such a nice man. He is so spiritual, so honest, so loving, so giving. And I'm really excited. Hi, so I know that you're a massive philanthropist, which is one of the reasons that I wanted to speak to you because thank you. Most people don't really walk the walk. They talk the talk. And you've really dedicated your life to to your philanthropic efforts.

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Yes, ma'am. So I want to get to that also. But I want to start out by. You really lived in your car? Yes, I did.

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I lived in my car in nineteen eighty. Bethany, what happened was I knew I had to have through my experience in the beauty industry, I need to have a half a million dollars to start this business because I was in sales and marketing. I'm not a hairdresser but we knew we needed a good friend of mine. Paul Mitchell was the all bongard hairdresser of all hairdressers. We decided to do it together, but we needed a half a million dollars.

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We got the backroad, we pulled out of everything we did. All stops gone, left. Everything I did, the relationship I was in wasn't working left. That two took the older of the two cars down the hill to the bank to get the money coming in that day. It never came and bastardy never came in. And my partner from Hawaii flew in and that's Paul Mitchell. He flew with his girlfriend and he needed somebody to. He was a little older than I was.

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He needed somebody to. It never came in. So I will tell to Paul, we've got everything set up. I've arranged 30 day credit and everything, you know, how much money do you have? Can you pitch in? I just left everything I'm doing. I got a few hundred bucks in my pocket. Paul said three hundred and fifty bucks. JP that's it. I'm really low on money myself, so I had a couple hundred bucks in my pocket, but I went to my mom's house.

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I didn't tell her how bad things were. I could have stayed in my room there. She lived in L.A. I was too embarrassed. It was like pride. So I said, Mom, can I borrow three hundred and fifty dollars from you because I needed a couple of hundred to live off of. And she says, y you do good in business. Why, son, I said starting a new company. I'll give it back to within a month.

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Mom. Thank you. Took it and split. Too proud to tell her mom. Would you feed me for the next couple of months. Could have room back. I know except I was just too darned proud so I lived in my car for a few weeks. That's how we started. John Paul Mitchell Systems. I learned how to live up to dollars and fifty cents a day. Wow.

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What were you eating? What did you use the two fifty on a day. Good question.

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For ninety nine cents at the Freeway Cafe at Bahram Boulevard. And Kohanga, if you went there after 9:00 in the morning, they had what they called the bikers breakfast. You got one egg, your choice of one sausage or one piece of bacon or an a little bit of potatoes just a little bit and a piece of toast. And then you had a choice of coffee or orange juice for ninety nine cents to get traffic where they didn't have it before.

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So obviously I put the sausage, it was bigger. I took a little bit of potatoes and I took the orange juice over the coffee. That was ninety nine cents. And at that time in Burbank, which was real close by, there was a place called El Cerrito that started some called Happy Hour. If you got there between four and six, which was a slow time, you could get a ninety nine percent Marguerita. It wasn't Patrón obviously wasn't invented yet but it was nice.

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But at that same time they would give you like they would give you a little tacos many years, but mainly salsa and occasionally a chicken. Wait. Well twenty chicken wings later you're full. I never forgot those folks. When I started making money I went back there. They had two people still working there from the time I was there. And of course they were. The tips blew them away, which is why we say thank you for helping me out, you know, when I didn't have anything.

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So yes, I did. That's a true story.

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That's amazing. And but also, by the way, that's a business lesson, truthfully. Ninety nine cents, obviously, they weren't making money on you, but that you just said it to get people in the door, which is a big thing. Exactly.

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That maybe they would order something, which many of them did, or they'd have a second drink or whatever, but the first one was ninety nine cents.

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So during that time you're spending two dollars and fifty cents a day and you're embarrassed to go live at your house and you're living in your car, even if it's for a couple of weeks. Did you think you were going all the way? What did success mean to you? What was the goal? What did you what was your big goal like?

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Let me cover two things. What goal is and then what success means to meet. The goal was if we could only use speaking with my partner at the time, if we could only get this business up to five million dollars a year, we would each make a quarter of a million dollars and be set for life. That was our goal. We had no idea that we'd learn business as time went on and how I would learn how to run a major company.

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My partner was one of the greatest hairstylists in the world but didn't do business. I was a businessman and of course in marketing promotion and so we got along really great. We never argued about the things. We couldn't argue with one another over anything because we trusted the other one to give us the right direction or put input. It was just a great relationship with my dear friend. And he died. Nine years later of pancreatic cancer, but a good guy and of course, as time went on, we put in what it took to build the company because we wanted to survive and eat.

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It wasn't because we thought we could be one hundred million or two, a billion dollar company, anything like that. It was just that we have to survive. So we did what it took to really make it what we had virtually no money.

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But you did have a clear goal, which I think is important for people just to set the bar, just to set the bar. And also you're basically saying and a lot of people make this mistake. I see this mistake in the fashion business. I see this in a lot of creative businesses where the creative type makes the mistake of thinking because they're good at something or smart and very innovative that they're a business person. And then I think the most important thing is knowing what you know and knowing what you don't know and staying in your lane.

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You have that exactly right. And the second half of your question, what does success mean to me? Success to me is this success is not how much money you have, how powerful you are, what influence you have. Success to me is how well do you do what you do and continue to do it better if you can and you're happy while you're doing it.

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That success, by the way, I love that I wrote in my book Everything is your business. And what I mean is whatever you choose to do, do it to the best of your ability or don't do it. People think they're above a job. People complain they don't do it. But if you're going to be a P.A. and you're delivering coffee, that coffee better be hot. It better be the best latte and on time and just whatever you're doing, do it the best so that that's even me.

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If I make if I make my daughter a meal, I either we should order in or go out or I'm going to make it make it great. If I, if I organize my room, it's going to be perfect. Like I just like to do things well or I would prefer not to do them and enjoy. I love that. I enjoy the customer is always right.

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Or if the is with your own family or a customer, they're always right. Smile. Treat them as they're the love of your life. Just really I mean obviously they'll go overboard but you know, treat them like they're the most important people on the planet. Smile. Be happy they're there because they're creating you and your future. And it's fun when you do that. And they love coming back. A lot of entrepreneurs have got to know that. Are people in business right now you want to create an environment like many beauty salons do where everyone is happy they're working with you and you feel special when you go there.

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So you want to come back. I say to many people that one of the things is one of the several things that you do to be successful is, number one, do not do not go into the selling business. Let me explain. Go into the reorder business. Make sure your product or your service is so darn good that people will want to repeat and reorder it. Or if it's a one time service or one time product, they'll tell people about it.

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So your whole goal is to make sure that your product or service is so darn good that people want more and more of it or tell other people about it. Very, very important. Go set your company up to be in the reorder business, not just the selling business. It's true.

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And I think that people do underestimate just old fashioned hard work. I've hired people that have been waitresses or cocktail waitresses or there was a girl and a kids is like a kid's jewelry store, like a little arts and crafts store because the woman was so nice. And just so I call it a place of yes, it's going the extra mile. And I feel that people. People underestimate just coming from a place of yes, just someone who works hard, that is you can teach any skill in business.

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I can't teach them how to be a brain surgeon, but you can teach pretty much any skill in business, but you can't teach hard work and loyalty and that sort of resilience if you cut it badly.

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By the way, I want to give you a little kudo. You've inspired others. There's a young lady named Elizabeth Vargas who's on what you were on a show in New York. She's on one. I think it's the Orange County Housewives, because what you did and excited her to introduce Vargus vodka. And I think your inspiration on what you did years before your success inspired her to do it. And she's a great lady and it's a great product. And it's interesting how one person does something great and somebody else is inspired by it to want to be just as great.

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So you're an inspiration to others said that Elizabeth Vargas, Vargas Abarca will be, I think, a good thing. I hope it's as successful as you were with yours.

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Well, I appreciate that. Yeah, it's true. I was what people used to be embarrassed people celebrities would never hold alcohol before. And then when I did my deal with Beahm. You were working with him for a minute with Petrona in the beginning? That's correct. Which is interesting.

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You know why we left it. This is a good segment. Do you know why we left Jambin? May I tell you? I remember we were the first ultra premium tequila after being with Jim Beam for a couple of years. We said, guys, you're only doing like less than fifteen thousand cases a year. And you've been with us for a few years now. And we think we could do a lot more. They said to us, this is upper management guys.

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You may want to leave us and go elsewhere because I'm going to tell you the truth. And they said the truth is this. You got the best tequila in the world right now. There's none better but people. And that time it was thirty seven ninety five a bottle where people could buy a tequila for five or six bucks a bottle they could buy. These other ones are supposed to be premium for under fifteen dollars. Guys, you'll never sell more.

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You will never sell more than twenty thousand cases a year. I'm just telling you the truth. We didn't believe him so we parted ways. They were nice people. We parted ways and then went with another organization and built it. When Patrón was sold about two and a half years ago, we were doing at that time approaching four million cases a year.

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And so another lesson for people to learn is what people tell you. You're not going to do as good as you think you can do and you're willing to work to strive for it. Don't listen to them because they don't know. Who knows is you your ambition and where you could take it, never give up and never let anybody else. And that's another thing I want to share with you, if I can. All your listening audience, another rule I have to being successful is telling people be prepared when you start a business or even with your business.

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Now, be prepared for a lot of rejection because you're going to get it people to say you can't do it. This is not going to happen. You're not the right size, whatever. You don't have the money, you know, the marketing thing, all the stuff. Right. So here's that little realize. Try and tell people if you're prepared for a lot of rejection, it's not going to hurt you. If people know that and get a lot of rejection, it goes off the top of their head.

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It's like when I sold encyclopedias door to door in my early twenties, you knock on one hundred doors, maybe you get through one. It's commission only. Know Lease four, call your encyclopedia. But I was taught in those days. It's the one that knocks on one hundred and one door that had one hundred slammed in front of them, just as enthusiastic and motivated as they were on the first store event. You're going to make it. They're going to get better, better, better and better.

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And they were right. The average encyclopedia salesman lasted three days. It's commission only. Your training is one week. You're not paid for that. Three days they're gone. I lasted three and a half years because I believe what they said. And as I did it, I found out that there's rejection. But I remember what they said. I did not let it get me. I was just as enthusiastic. And it's a good thing for people.

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Remember, don't don't go to the people, tell you, be enthusiastic and keep going with your motivation and you get better as time goes on.

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Well, I had the same exact experience. I was told by had a car Bacardi, I was told by Diageo, et cetera. They didn't like the idea of the skinny girl Margarita. They didn't get it. I just had one one flamer. That was all I wanted to do. I just wanted to be a spokesperson at one of these liquor companies. I'd just like you. I had smaller goals. I was thinking, oh, I could make a couple of hundred thousand dollars being a spokesperson and nobody wanted to do.

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And I thought, OK, I'll do it myself. And when I ended up doing it, I had this lawyer who said to me, Do you want to do a licensing deal or an equity deal? And I said, I don't even know what that is. And he said, well, licensing, you get the money now, but equity, you own it. It's your blood, sweat and tears. And, you know, it's more risk the more reward.

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And I said, OK, I'll take that one because this is my ace in the hole. But I literally was told by the guy from Bacardi, you listen, there are no there are no monster brands right now in liquor. It's hard to break through. You don't know what your. Talking about and this isn't going to happen, and I was told that by so many people, but you can feel it if not about everything, by the way, I don't think every idea is a good idea.

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And I think everything should be pushed to the end. But when you have that fire in you and you have that feeling and you just know you've got something, you owe it to yourself to go all the way with it. Same language.

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We are speaking the same language with that philosophy. No money for advertising, no money for promotion. I went door to door of Ventura Boulevard in North Hollywood, knocking on salons, selling the product of the back of my car because we believe we get somewhere we would do whatever it took. It's unbelievable.

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Do you think what percentage lucky and what percentage smart do you think you are?

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I would say probably more lucky than smart. I think I'm wise in many areas and became smarter as I started building my business. A lot of it was luck, but a lot of luck has something to do with what you believe in being enthusiastic, have a drive, believe in yourself. Believe there is a God. At ease with you there. If you going out, you don't want to get religious on anybody I want. But there is a spirit there that if you believe in, you're a good person, you help others out along the way.

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So good energy comes your way even if you help out without money, volunteering time, whatever you pull in all this energy and then energy puts you forth and you have the enthusiasm on what you're doing and you believe in it. And, you know, there's more energy coming from the universe to you. It gives you that extra little bump and maybe that creates something that we call luck. A dear friend of mine is Roger Daltrey, who's the head singer of The Who, been my buddy for thirty five forty years.

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He told me every year for several years, J-P, all I wish upon used to be lucky. That's what I wish upon you. Whatever it takes to be lucky, let's do it. And luck isn't just what you have a roll of the dice or you're lucky there. It has a lot to do with how you live your life, your energy, what you do for others and what you pull in the universe works that way.

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I agree. Karma and energy and I do agree the universe here is everything.

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So it's not not in the beginning, I know you felt like you were failing in the beginning at times, but since you made money, since you are already successful, have you had any failures at a bigger level like things that you really thought were going to happen but just you are off or they would?

[00:21:54]

I certainly did. You better believe it. Obviously, Paul Mitchell, a great success. I'll have that for the rest of my life. I'll never sell that company. But from John Paul Pett rocket things of this nature. OK, but along the way, there were other companies I try to get in telecommunications reselling time that didn't work well at all. I try to get the boat business. Lost a lot of money there. I've tried to get it to several businesses that I thought would be OK, maybe the next Paul Mitchell or the next patrol or whatever.

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And I feel that it's OK. I feel that it and it did not work out, but it was at the time. Thank God I you get out, you're wasting your time here. You can't dedicate all your time to this. The other people are they're not doing right. Pull out. So yes, I've had quite a few losses but I had enough wins that more than compensated.

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Yes, but you cut bait and do you feel that it was your instinct that it was off the climb? It was off, the partners were off. Are it just like you're not going to hit every home run? That's just what it is.

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Well, one is you're not going to hit every home run. And number two, shame on me. I left the running of the country up to others and didn't check on on a regular basis. I had done that. I would have pulled out earlier.

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OK, got it. All right. Well, that's a good lesson for people. So I know that you almost sold petrol, but you ultimately went with your gut. It's funny because I sold the skinny girl cocktails because I went with my gut. There's certain times that you have to really. Think and think about it again and massage it and walk away from it and come back to it and really ultimately find your God because people think it's just in your stomach, it's not.

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You have to kind of massage it, in my opinion. I want to hear what you have to say. So I decided to sell because of my gut, but found it.

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I love it. Bethany, you're so right. Go with your heart, your gut, your heart. Go with your heart what you feel. When I didn't want to sell petroleum, but they made me an offer I couldn't refuse, I said, you know what? In my in my heart, it says this is the thing to do. So obviously, I got more money than for the company than any alcohol company ever in the history of alcohol.

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But it was the time for me to do that. I knew that who I sold my 70 percent to would build it even bigger and that they gave me plenty of money for me, my family, my charities and all the work that I'm doing on the planet for the rest of my life. And I could pay more attention to my philanthropy, which is what I do right now. So I knew in my heart, call it your gut, your heart.

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It was the thing to do. It was. And and that's why I did.

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Do you work really hard now? How hard you work, Bethany?

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I stopped working in 1980 when I started Paul Mitchell and slept in my car. And here's what I mean by that. I loved what I was doing. When you love what you're doing, you're not doing it anymore. Am I still involved in businesses overseeing of special investments? Of course I am. But the majority of my time is spent in philanthropic work, whether it's building whole communities for homeless, working with the Sea Shepherd to save the whales and the dolphins or the sharks on the open seas, feeding people with gropple to let them have their own gardens.

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And I could go on and on and on. And that really thrills me. And I found out in life that whether you do it a little bit or whether you do it a lot, whenever you do something for somebody else and ask absolutely nothing in return, it's the greatest high you'll ever get higher than any you'll ever smoke. And I'm a child of the 60s, so I high. Yes, but you can't smoke anything to get you that high.

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I mean, it's just like, wow, I did some for someone else. I wanted nothing in return, but it made me feel great. So I do that. So I'm into it.

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And I also you meet the most fascinating people. And it's funny because I'm thinking of you. You're the hairdresser world. They're the best tippers. Waitresses are the best tippers. And I'll say that the people who donate their time to philanthropy are not rich people. They are yoga teachers, school teachers, nurses, hairdressers, waitresses. And that's fascinating because it's just really just regular normal people that want to help. So I love what you're doing. I think it's amazing.

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You sound like a beautiful person inside and out. And I just want to ask too, I think a couple more questions. One is, what is your title in your household? If you had to give yourself a title, you, the president, the CEO, the CEO, what's your title in your household?

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Just add just that or JP. You know, my friends combined, JP, my friends call me JP, but that and occasionally they say, hey, you know, I'll turn around and laugh.

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What is your just your overall mantra? I mean, mine is to come from a place of. Yes. So what's your overall mantra? Success.

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Unshared is failure. And if something negative enters your mind, say that's not part of my life and don't think about it. Whatever you give thought to grows. So my mantra success. I'm sure it is failure and keep the negativity out of your mind by just saying you don't belong here. Get out of here and start thinking about something more loving. Success. Unshared is failure. And if you don't share the goodness in life and you clog it up with things that aren't positive, then you can't really share with success and share this failure.

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I love it.

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I love it. That's the diet everyone should be starting right now. The happiness, diet and love it. Thank you so much for your time.

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I appreciate everything that you've achieved and give my love to your family. And it's amazing.

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But to me, you rock and I'm here in Austin, Texas. We don't travel much these days because of the virus going on. And I believe you're on the East Coast. I just think that if I'm ever out your way, which I will be again, I'd love to say hello to you and maybe have a margarita with you.

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I would love that. Let's have a skinny margarita together. Let's do it. And I love Austin and my boyfriend loves Austin, so I'd love to come.

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All right. Peace, love and happiness. You too. So that was John Paul Jaurès up such a success story, such a life, immigrant parents lived in his car, created Paul Mitchell, created the really the first ever ultra premium tequila and Patrón, which is remarkable and, you know, just deserves to be a self-made billionaire, really a rags to riches story.

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But I, I know that you read on paper when someone's philanthropic and not until you talk to someone, do you really understand who they are. And I had no preconceived notion of who John Paul was.

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And he looks like he looks Hollywood, to be honest. And he could not be nicer, like so sweet, so loving, really seem so caring and just has the right ideas in mind about giving back.

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And was almost like he was doing a really, like, loving self-help slash business seminar.

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And it was amazing because there was so much take away and it just goes to show. I know it sounds ridiculous, but the one thing that everyone has in common that comes on here is super successful. They just really understand hard work from the beginning. Like there are no shortcuts. And I keep repeating this and I know. But you know, the difference. You know, when you've got a great idea and you're hustling you talking and you're moving papers around the desk, you know, when you're really working, when you're working and you're working smart and it's working.

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So I just love the confirmation and the reinforcement of the principles that really are the only reason that I'm successful. I love talking about, you know, a little bit of luck, but what you do with it and how you use it and if you're passionate about something and going with your gut and how to make decisions.

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And I think all these things, you could put these all together in a nice pie and figure out what your business path is.

[00:29:15]

So I'm just loving the way this is all shaping together and I'm loving the differences and all these people, so many successful millionaires that we've spoken to that. Have such different paths, but really just a couple of principles that everyone has in common, a couple of practices that everyone has in common. And so I hope we keep hearing that because then we'll really just be able to write our five to 10 rules to success and go get it. Thank you so much.

[00:29:42]

Please remember to review it and subscribe. And I can't wait to talk to you again.

[00:29:55]

Just be his hosted and executive produced by me, Bethenny Frankel, Bewail Productions and Endeavor Content. Our managing producer is Samantha Allison and our producer is Caroline Hamilton. Corey Preventer is our consulting producer with the ever faithful. Sarah Cattanach as our assistant producer. Our development executive is Nayantara. Just Be is a production of Endeavour content and spoke media. This episode was mixed by Sam Baer. And to catch more moments from the show, follow us on Instagram at just be with the.