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Search Results for: marketing matters

Toni Kirkland with The Hidden Bookshelf, Travel Agent Jo’El Lapp and Kelly Nagel with Nagel’s Bagels

January 23, 2023 by angishields

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Charitable Georgia
Toni Kirkland with The Hidden Bookshelf, Travel Agent Jo'El Lapp and Kelly Nagel with Nagel's Bagels
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Toni-KirklandToni Kirkland is the owner of The Hidden Bookshelf and Beacon Marketing. She’s also the Marketing Director for Aurora 360, and also the creator and main cheerleader for I am here to stay which is a community for survivors of abuse and trauma. You can say that she wears a lot of hats along with being an author, al-anon wife, CoDa member, and currently single mom to a very bright and busy 23-month-old.

With 20+ years of Graphic and Web Design experience, 17+ years of Customer Service experience, 5+ years of Management experience, and being a published author of multiple books available on Amazon under M.A. Grace, Toni has lived a very interesting life.

Her main goal in life, along with being an excellent mom, is to help build communities wherever they are and provide support and encouragement to those chasing their dreams.

Connect with Toni on LinkedIn.

JoEl-LappJo’El Lapp is a graduate of Canisius College and earned a Bachelors in Political Science with a minor in Criminal Justice. She went on to work for several years as a Customs and Immigration Agent on the Canadian Border.

She retired when she was pregnant with her eldest daughter, Madelynn Rose. Soon after, she started Blossom Hill Farm, a farm-to-table livestock operation while raising two daughters as a single mother. After leaving the farm, divorcing the life there, she met the love of her life, Jon Lapp.

Jo’El has had several businesses from working for Pampered Chef to being a Sales Agent for Rome Radio. Currently, she is stretched very thin running a travel agency as well as being a full-time foster mom for high-risk dogs.

She is also the State Director for Convention of States, a grassroots organization which is working towards change in the federal government. Between working to make major changes in policy, and saving foster dogs that have been within hours of being put down, she has continued being a mother and making the world a better place.

Connect with Jo’El on LinkedIn.

Kelly-NagelKelly Nagel and her husband Rich have been married for 23 years and started Nagel’s Bagels in 2019 after they both had long careers in the corporate world.

Kelly specializes in marketing, business development and facilitating connections within the community.

She has a Bachelor of Science from Florida State University, is a native of North Georgia and loves sports, mostly football (some say a little too much). Rich and Kelly have two teenage girls.

Connect with Kellyl on LinkedIn.

This transcript is machine transcribed by Sonix

TRANSCRIPT

Intro: [00:00:07] Broadcasting live from the Business RadioX studios in Atlanta. It’s time for Charitable Georgia, brought to you by Bee’s Charitable Pursuits and Resources. We put the fun in fundraising. For more information, go to Bee’s Charitable Pursuits dot com. That’s B.S. Charitable pursuits dot com. Now here’s your host, Brian Prewitt.

Brian Pruett: [00:00:45] Good, fabulous Friday morning. Everybody out there in the listing world, it’s another fabulous Friday and Stone, first and foremost, Happy National DJ Day. Did you know it was National DJ Day?

Stone Payton: [00:00:54] I did not know that. So what a marvelous opportunity.

Brian Pruett: [00:00:58] So we should have had some bagels for National DJ Day.

Kelly Nagel: [00:01:00] Can we have and we should have had some actual disks, you know. Exactly. Vinyl.

Brian Pruett: [00:01:05] So. Stone I’m also excited. I don’t know if you are looking around the room, but three fabulous young ladies in the room. And then there’s us.

Stone Payton: [00:01:14] Yes.

Brian Pruett: [00:01:14] Yeah, right.

Kelly Nagel: [00:01:15] So that’s so sweet.

Jo’El Lapp: [00:01:17] So sweet.

Brian Pruett: [00:01:18] Now we got another great show for you. So our first guest this morning is Toni Kirkland. So, Toni, there’s a lot of stuff that you do. Probably the best thing is tell us what you don’t do. But first of all, welcome and thanks for coming this morning.

Toni Kirkland: [00:01:31] Thank you. Yes, it’s a smaller list, if I tell you what, I don’t write right.

Brian Pruett: [00:01:36] So I know you have the hidden bookshelf. You have Beacon marketing, Aurora, you have an hour on the show getting ready to start as well. But the reason I wanted you to come on this show again, for those who don’t know or maybe the first time listening, this is a show about positive things happen in the community and that can be from sharing great things to doing great things to just being vulnerable. And that’s what you’ve been able to do and you’ve shared it on Facebook, a lot of stuff. So you have a story of perseverance in not giving up. So I’d like for you to share that, if you don’t mind.

Toni Kirkland: [00:02:05] Sure. My 2022 was very crazy, so best way to put that. Over summer, my husband let his addiction take over his life, and in the process of that, he took his family down to rock bottom with him. So in August, he got arrested and that left me with no money and a lot of unpaid bills. August and September. I spent a lot of time being unaware of what I was going to do. I wasn’t sure how I was going to make it, but I kept getting up because of our toddler, and every day was just another step. I didn’t know what direction it was going, but it was another step. And then in October one morning, I just woke up and I was like, This has to stop. I have to be able to provide for my son. I have to build the life that I want for us and the life that I want to live. And at that point is when I started pouring more of my attention into the Hidden Bookshelf Club and really putting focus on which direction I was going. I managed to get a remote marketing job for Aurora, and that mostly pays my bills.

Toni Kirkland: [00:03:39] I sometimes have to borrow from Peter to pay Paul, but for the most part it pays my bills and also the community. I would not have been able to get through all of this without the community. The people I have met at Canton Business Club at Roswell Business Club at Ball Ground, Business Club. They would bring me food. They helped me with fixing, trying to help fix a car that he had totaled. Ultimately, my mom had to help me get another car and another cell phone. But yeah, the community just really stepped up, and all the friends I’ve made in Cherokee County and surrounding counties have really stepped up and helped me get through that and continue today to support me. And when I’m having rough days, which is getting smaller amounts of time, but it still happens, they remind me of how strong I am and how much I inspire them. And I’ve had people come up and tell me that by me being vulnerable and talking about my story has helped them in their silence of their struggles. So I continue to do it.

Brian Pruett: [00:04:50] I think it’s awesome that you’re able to be that vulnerable and even putting it out there on social media because again, like like people have told you, people are reading that they’re going through something similar, you know, and that just helps those people to know that they’re not alone. But there’s also people out there sharing that they can feel like they can share. We’ve talked the last couple of weeks about the power of networking, and she just shared Stone and other positively awesome thing about networking where she mentioned three business clubs and they’ve helped her with food and just inspiration and just helping her along the way. So that’s just another great example of networking.

Stone Payton: [00:05:23] Well, it certainly is. And everybody in this community just loves them some. Toni Kirkland for one thing. But we have such a marvelous support system here in this community. I just I love everything about it. And every day I see tangible examples of us all kind of living into that mission of wanting to support each other and our growth. Yeah, I love it.

Brian Pruett: [00:05:44] These other two guests that we’ll be talking to, we’re all part of another group together too, so it is definitely a community. So Toni, share with us, first of all about Aurora, share what they do and then how people might be able to benefit from them.

Toni Kirkland: [00:05:57] So Aurora 360, is a renovation and handyman company, and they also use global cabinet central for their cabinetry, putting in cabinets and all that stuff. So if anybody needs a handyman to do things to help property maintenance, they do that and they do kitchen and bathroom remodels. So it gives you the time back because some of that stuff can be very time consuming. And it’s surprising how long it actually takes to replace a ceiling fan. So yeah, there’s no no project too small and no project too big. They will come in and they will tackle it for you.

Brian Pruett: [00:06:38] Do they work all over metro Atlanta or just certain areas?

Toni Kirkland: [00:06:41] Do they work all over Metro L.A.? So everything they try to stay in Atlanta or north of Atlanta. But yeah.

Brian Pruett: [00:06:50] How about Beacon marketing share? What do you do with Beacon?

Toni Kirkland: [00:06:53] Beacon Marketing is a small local marketing. So I work with the local community and the local businesses in those communities to help bring them together. So I work online and offline marketing to let your community know that you are there and for them to find ways to support you and come visit you so that you are part of the community and the community is in return supporting you.

Brian Pruett: [00:07:21] The coolest thing I think you’re doing is the Hidden Bookshelf Club. So share what that is.

Toni Kirkland: [00:07:26] The Hidden Bookshelf Club is connecting the literary world one book at a time. I do that through a blog podcast, literary magazine. In online, offline events, in book clubs. I work with everybody and anybody that is connected to the book world. So I have things for readers all the way up to authors, including publishers, editors for matters, graphic designers, you name it.

Brian Pruett: [00:07:54] You’ve written books yourself.

Toni Kirkland: [00:07:55] I have. I have written a young adult action adventure story called The Blazing Charm Series, which is available on Amazon. And my pen name is Emma Grace, and it is about high school kids who are into street racing and take on the Mafia.

Brian Pruett: [00:08:14] Nice. So your show, I guess, is going to be part of the Hidden Bookshelf Club or is that separate?

Toni Kirkland: [00:08:21] Yes, The podcast is also called the Hidden Bookshelf Club, and I bring on the people in the literary world. So I have authors, editors. I even bring on book bloggers and we talk about books, and then we also talk about the person so that we can connect with the people behind the websites that we or the books that we love.

Brian Pruett: [00:08:42] That’s really cool. So if somebody was just listening and listening to your story and going through something similar or, you know, having just a bad day or whatever. Can you share a little bit of inspiration for somebody? And just obviously, like I said, your stories of perseverance and not giving up, but can you just give them some advice for maybe some of our listeners?

Toni Kirkland: [00:09:03] So my my advice that I live by is that I focus on one day at a time. I can only deal with so much at a time. So whatever that day brings me, and then I remind myself every night that I’m worthy of being here. And my motto last year and it’s also part of my motto is this year, is that I’m doing it all scared that I don’t know how it’s going to end, but I’ll never know if I don’t do it.

Brian Pruett: [00:09:39] You know, definitely has some some strong words there. Great words, too. So if somebody wants to get a hold of you for any of the things that you’re doing, what’s the best way for people to get a hold of you?

Toni Kirkland: [00:09:52] They can find me on Facebook and on LinkedIn under Toni Kirkland.

Brian Pruett: [00:09:57] Awesome. Toni, thank you for again being here. Do you mind sticking around and listening to these next young ladies?

Toni Kirkland: [00:10:02] I am excited to listen to these next ladies.

Brian Pruett: [00:10:05] All right. Well, we’re going to move over to Ms. Jo’El Lapp from travel, John and Jo’El. So, Jo’El, thanks for being here.

Jo’El Lapp: [00:10:14] Thank you for having me.

Brian Pruett: [00:10:15] Jo’El is another one who’s got an incredible story. So what I know about and I’m sure we’ll hear more, but she is a former federal agent, so then she went from that to being a farmer to doing things in like sales and radio and fostering puppies and now a travel agent. So you also are a state director for convention of states. So just I mean, that’s a lot of stuff. How did you give us give us a little bit of background.

Jo’El Lapp: [00:10:45] Oh boy, how much time we got?

Brian Pruett: [00:10:48] As long as someone wants us to let this go.

Stone Payton: [00:10:50] That’s right. I got all day, man.

Jo’El Lapp: [00:10:55] Well, yeah. In like, the very beginnings of Joel after college, I got into the federal law enforcement right out of college. I was basically an intern, a paid intern with US immigration. And then I switched over. I went to the dark side because we were wearing dark blue from white. So we called it the dark Side. And I went over to customs. So basically you’re just trading at the port of entry, trading from inspecting people to items. And then I had a really good fall off my horse and followed by the birth of my first daughter. And I just couldn’t physically do that job anymore. So I kind of went from there. We went my husband, my ex husband and I bought some land out in the country because I’ve always loved horses. And then that kind of morphed into, you know, we bought a couple of cows because I was we were doing this game called Team Penning where horses chase cows into pens, and my horse hated cows, so I had to buy some cows so that she could get used to them. So I mean, I got disqualified once because she bit a cow on the butt.

Kelly Nagel: [00:12:07] So I’m sorry. That is hilarious.

Brian Pruett: [00:12:10] I love.That visual.

Jo’El Lapp: [00:12:12] Right. So I had to get some cows and that’s how it just started. It’s like, yeah, I’ll just make I’ll make her like cows. So then people started, Well, you know, if you have if you have beef, I’ll buy beef off you. And then, well, why don’t you get some pigs? Because, you know, if you raise in beef, you might as well raise pigs. Well, what about chickens? What about sheep? And then it just kind of morphed and then sell into friends and family. And I’m like, you know, I could make some money doing this. So I just started selling at a farmer’s market in downtown Buffalo, New York. And from there, I just I started knocking on doors of restaurants and just talking to them. And before you knew it, I was selling to some of the top restaurants in Buffalo, and I created some really cool programs that other farmers were actually coming to me. As far as marketing goes, you know, I say one of the silliest things I did and it worked like a charm was adopt a chicken. And people would come at the beginning of the season and they would adopt a chicken and they’d pay way ahead in advance for like a year’s worth of eggs, and they’d get a picture of a chicken and they’d hang it on their refrigerator and they’d name it. They didn’t know what chicken they had. But the the you know, it was great. The kids loved it. You know, they’d come and be like, Oh, how’s Percy? Oh, Percy’s doing great. And and then I started selling veal to restaurants, which was a big deal because I won’t eat veal because it’s, it’s ridiculously inhumane. So we started buying calves and putting them with mama cows, and they were pasture raised. So they lived a great, you know, life. Obviously, they’re butchered when they’re young, but they’re still living a very good life before butchering. And the restaurants loved it. They loved that humane aspect. Like anybody could come to my farm and the animals were in very good conditions, not factory farming at all.

Brian Pruett: [00:14:06] So you should do the chicken thing now, especially with the price of eggs.

Kelly Nagel: [00:14:10] Absolutely. I would adopt. Can I name the chicken that I adopt because I would name her Diana Ross just so you.

Brian Pruett: [00:14:17] Yes. Yes. So. Well, first of all, Stone, a pretty cool I mean, I know I’ve known Jo’El for a while and but her daughter, I wanted her to be on the show. So you have a daughter. Very proud of you, Mandy Rose, Shout out to Mandy.

Jo’El Lapp: [00:14:30] Thank you. You know. Yeah. That’s so funny, because she’s the type of kid where teachers will come up to me and be like, Oh My God, your.Daughter is amazing. She is such a nice kid. And I’m like, Are we talking about the same kid? Because it’s always the mom doesn’t see that side all the time, you know?

Brian Pruett: [00:14:47] So I’m curious to the convention of states that you’re the state director of. Sure, sure. What that is.

Jo’El Lapp: [00:14:53] All right. Convention of States is a national organization that is centered around Article five of the Constitution. So Article five of the Constitution allows the states to make proposals to amend the Constitution because you know how Congress can do it, where they make proposals. Then it comes back to the states and then 38 states need to approve it and then it becomes an amendment. Well, the states can do that, too. So the states can actually bypass Congress completely. And that’s if you’ve been paying attention. Congress isn’t going to regulate themselves. So convention of states has three main issues term limits, fiscal responsibility, and limit government overreach. So I can’t see any of them voting for term limits. Sure as heck can’t see any of them reducing their fiscal spending. And I sure as heck can’t see them reducing the amount of how they get into your business at home. I mean, they’re they’re regulating everything from what light bulb you can have in your house to what kind of toilet you can have. So we really want to push back on some of that and maybe get rid of some of those ABC agencies and, you know, save some money because why do we need to duplicate the Department of Education and Department of Energy, the Department of Transportation? We have all that and in every state has that. So why do we need to duplicate it? So I think the biggest two questions and answers is who should make the decisions and where should the decisions be made? You know, it should be made here.

Brian Pruett: [00:16:21] So if you had a lot of stuff coming up lately with that supposed outlawing of gas stoves.

Jo’El Lapp: [00:16:29] You know, it’s the ridiculousness of it. The. Legislators can throw anything out that they want. And if you look at some of the stuff that doesn’t get media attention, it’s all just ridiculous, the stuff that they come up with. So, I mean, it’s not going to happen. They can say all they want and they like the publicity. They like standing up and making a name for themselves. I mean, that’s how they get reelected. But yeah, it’s it’s not going to happen.

Brian Pruett: [00:16:55] That’s good to know, because I like a good gas stove.

Stone Payton: [00:16:59] So do I. It’s so much easier to cook on. And I do a lot of cooking.

Jo’El Lapp: [00:17:02] It is it’s much easier to regulate the heat. And I like a gas stove.

Brian Pruett: [00:17:05] Although you don’t want me cooking because I might burn down the place. You have a passion, obviously, for. For change, for people, but also for animals as you share with your farm. But you do a lot of stuff for at risk dogs. Yes, sure. Well, first of all, what is it that at risk dog.

Jo’El Lapp: [00:17:23] A dog that is dropped off at an animal shelter? Pretty much the animal shelters in Georgia are to the max. Those there’s oh, my gosh, hundreds of dogs being euthanized. And it’s just really irresponsible ownership. The dogs that are in the animal shelters are not there for the most part because they’re bad dogs. They’re there because humans pretty much suck. I mean, I really don’t have another way to say it. You know, when people drop off their dog because they’re getting a puppy for Christmas, how do you even wrap your head around that? And it happens all the time. As soon as they start advertising puppies around Christmas time, the animal shelters just get so full because people just, Oh, I want a puppy now. And these dogs come into the shelters and they’re I mean, they’re just they’re heartbroken because you’ve taken them away from their family, you know, So they’ve been removed from their family. Now they’re in this really obnoxious, horrible. If you’ve never been in an animal shelter, it is the most stressful environment you can’t even imagine. All the dogs are barking. All the dogs are terrified.

Kelly Nagel: [00:18:29] As some of.

Jo’El Lapp: [00:18:30] Them show aggression because they’re so scared. Just so scared. So what fostering does is it pulls the animal out, gives it a chance to unwind. You get to see what the dog is like. Do they like kids? Do they like other dogs? Do they like cats? Do they chase just all the little nuances? And right now I have actually I’ve got two foster dogs at home and one of them she came to me. She’s a bully, a Grabe, She’s a great pit bull and she’s a year old and she is the biggest knucklehead you’d ever want to meet in your life. But she’s she came to me at only about £40, and she should be about £60. So she was literally a walking skeleton. But she’s had no no socialization, no training, no nothing. So she is like literally the Tasmanian devil. She’s just she’s got so much energy. She just wants to go, go, go, go, go. So she’s actually the rescue is helping me raise money for her to send her for training. So she has a chance because she’s the sweetest girl you’d ever want to meet. But you know, she she’s a sled dog on a leash. And, you know, she’ll jump four feet in the air to get the bowl of food out of your hand and just little things like that. So she’s going for boot camp for three weeks. And and the rescues do all that for you. So people complain about spending money, you know, three or $400 on a rescue dog. But the amount of you’re getting a dog that’s been through all the paces, it’s usually house trained and leash trained. And just all those kinks are worked out and you don’t have to housebreak it and, you know, do all the stuff with the puppy.

Brian Pruett: [00:20:14] So a couple of months ago, am I correct that you actually drove some dogs to Virginia yourself?

Jo’El Lapp: [00:20:18] No, I didn’t drive them. I rescued them from a bad situation. It was a mom and four puppies. They were two weeks old. Actually. The the woman who owned them, she just she dropped off the dog. Her name was Jasmine and her for two week old puppies and just said, I’m sick of her having puppies. Well, hello and get her fixed. But she just dropped her off and the dog had obviously had many litters and she was gray around the muzzle. And here she is with her puppies just being dropped off at Bartow Animal Shelter. I mean, it was it was a horrible situation. So the mama was having a hard time lactating because of the stress and everything. So I just they called me and I went and I got her and I brought her back to the house and I. Put her up at that point. It was over Thanksgiving. And besides my three dogs, it wound up being 11 dogs in my house over Thanksgiving. It was lucky I’m still married.

Brian Pruett: [00:21:16] Or there’s got any food left.

Jo’El Lapp: [00:21:18] But yeah, they I just kept her for a week. And that’s a lot. A lot of times what it is, you just keep them for a couple of weeks until they can transport them out of Georgia because there’s a massive push to get dogs out of the south, because in other states there’s just a different mentality, you know, about getting your dogs fixed and proper, taking care of them and not chaining them outside. And they’re just treated better in other states or just the South in general, just has has a hard time with how they treat animals.

Brian Pruett: [00:21:49] So how hard is it to foster and find new homes? And I’m sure you get attached to them. So how hard is that?

Jo’El Lapp: [00:21:54] It’s hard, but you have to look at it. You have to just weigh it. You know, you’re saving their life. And when you get them into a new house and I am not fully responsible for getting them into a new house. The rescue does most of the heavy lifting. But, you know, you get pictures and you find out how they’re doing like that. Mom I just told you about, she just got adopted and it was just oh, my gosh. I mean, in her later years that she’s found a she’s with an older couple and she just looks so happy and it’s like, okay, that’s it’s worth it.

Brian Pruett: [00:22:25] Well, you also have a passion for helping people. And you guys are doing that with your business of travel by John and Joel. So share a little bit about your travel agency.

Jo’El Lapp: [00:22:34] Well, my husband and I have always just loved to travel and I’m like really OCD with doing our travel. You know, just everything’s very detailed. I mean, we would go around Disney and I had an itinerary at Disney so that we got into the rides at the perfect times and we just just really, really detailed. And so we started traveling by John and Joel and we put together trips that are customized. It’s kind of funny that you said that we’re talking about this because I just got an email from somebody that we know from Cartersville Business Club and she’s like, Well, I know you guys do packages and sales. Like, I never said that, but we don’t. I mean, we if you if we know what you’re looking for and it happens to come up as a special or a package, obviously we’ll, we’ll put you in that direction. But like right now, I’m planning a two week trip to Italy for somebody as a honeymoon. So and it’s it’s morphed from, you know, a couple cities to being out in a villa in the country and just having a rental car. So we just take whatever the client wants and just make it as special as possible.

Brian Pruett: [00:23:40] What’s the biggest myth about travel agents.

Jo’El Lapp: [00:23:44] That you’re going to be paying more to hire a travel agent? I mean, most before COVID, most travel agents did not charge a planning fee, But then after COVID, most are because when COVID happened, if you had say, let’s just say you had 30 trips planned for people, you now had to plan and cancel all of those trips. So you put all the work into planning them. Now you’re putting all the work in on planning when you didn’t get paid for anything. So it was it was a real hit to the industry. So I think now it’s like 70% of agents are traveling, know, doing a planning fee. But that planning fee, we sell insurance with all of our trips. So I’m now if you have to cancel, I’m now getting your money back for you. So it extends way beyond the trip. I’m getting that money back, lost luggage, switched airlines, whatever. I mean, I’ve had people message me in other countries and want to change their plans. Well, they they decided they want to do something else or go somewhere. And we’re changing that for them in real time so that their their vacation continues without a hitch.

Brian Pruett: [00:24:59] Does that fee vary, I guess, with the different travel agents, or is it kind of.

Jo’El Lapp: [00:25:02] Across the board to say, no, It does vary. I mean, some are a little they’re very proud of their planning fees, but it just depends.

Brian Pruett: [00:25:14] I had a question. I just kind of left me. Oh, I know what it was. If somebody is looking to travel and can you give any tips? I mean, I know people think about, you know, what can you do? Is there still people worried about COVID or any just any tips you can give somebody about the travel route now?

Jo’El Lapp: [00:25:29] Travel right now is tough. The airlines are overbooking. See, what happens is there’s so many different suppliers that sell travel. So you’ve got your Expedia’s your Travelocity’s you know just go online and search airlines and everybody selling airline tickets, everybody selling hotels and they overbook. So traveling with air right now is really difficult. So if you’re going somewhere, you know, well, there’s two things. You know, try, try, try to get a direct flight because they will lose your luggage, I guarantee you. And secondly, if you’re if you’re flying, just, you know, do like a Google flight search and try to find the you know, the if you do Google flights, you’ll see all the flights that come up and you want to be on. The earliest flight possible so that if your flight is canceled or you’re bumped, you can try to get on later flights. Otherwise, you’re going to be you know, if you try to get like a 10:00 flight, you’re going to be staying somewhere overnight, you know, until that flight goes out the next morning. So try to get on the earliest flight as possible because you just might have a long day at the airport.

Brian Pruett: [00:26:41] If somebody wants to get a hold of you for travel, how can they do that?

Jo’El Lapp: [00:26:45] They can go to jlapp travels dot com. So it’s Jlapptravels.Com and we’re on Facebook and Instagram at at jlapp travels.

Brian Pruett: [00:27:01] On the convention of states. Can people also get a hold of you in case they are concerned about any of that stuff.

Jo’El Lapp: [00:27:06] Yeah. Yeah. They can go to convention estates dot com and there’s a petition there. We ask that you sign the petition and what that’ll do is that’ll go to your legislator, your state legislator and let them know, hey you know, I really believe in all of this. So let’s make sure that Georgia supports it. Georgia’s was the first state to pass the convention of states resolution, and we have 19 states right now. We need 34. We’ve got nine on the docket this year. So we were we were involved in 450 elections last year or not last year, but this past year, in order to get more friendly legislators to pass the states that we’re holding out. So I think it’s going to happen pretty soon.

Brian Pruett: [00:27:47] Wow. You know, STONE Every time I listen to a show, I keep saying one word over and over, and that’s awesome. But I know what else to say when the when you hear these stories.

Stone Payton: [00:27:55] It sounds like a perfectly descriptive word to me. It is awesome. I think it’s incredible what these ladies are doing. What a pleasure to get a chance to visit with them and have them share their story.

Brian Pruett: [00:28:05] Yeah. So, Jo’El, thanks for again for coming. Do you mind sticking around for this next young lady?

Jo’El Lapp: [00:28:11] Absolutely not.

Brian Pruett: [00:28:12] All right. All right. We now have missed Kelly Nagel from Nagel’s Bagels to the show. She is I like what she says, Stone. She’s the carb dealer. And you can tell that I like carbs.

Kelly Nagel: [00:28:23] So don’t we all.

Brian Pruett: [00:28:25] Yes. Kelly, thanks. Thanks for taking your time to be in here as well this morning.

Kelly Nagel: [00:28:29] Absolutely. Thanks for having me.

Brian Pruett: [00:28:31] So I know you have a giving heart. You do a lot of stuff. So first of all, just share. I know you have a marketing background, but share how Nagel’s Bagels got started.

Kelly Nagel: [00:28:40] All right. Well, yes, I was in the business development marketing world very diversely. I did fundraising for nonprofits for a long time. I worked and actually produced content as well as did marketing for a thread and stabilizer company. I do. I am a seamstress. I do so as well. So that was there. I did it for a credit union for a little while and then I was working for a credit union when COVID and this whole thing hit. And and I got laid off because, you know, if your job is to go out and network and talk to people, you know, you can’t do that anymore during that time, allegedly. And so. Parallelly is that a word.

Brian Pruett: [00:29:32] Now.

Kelly Nagel: [00:29:33] That it communicated right? So at the same time, so my husband has had a long and amazing career with pharmaceutical companies. He is a subject matter expert in how your data is supposed to look when it gets submitted to the FDA for a clinical trial. So he has worked directly with pharmaceutical companies or has been a consultant and worked for Oracle. You know, just making that data look the way it’s supposed to look. And as you could probably guess, that was a lot in front of the computer. And Rich really just wanted something that was completely different as a hobby. It was supposed to just be his hobby. I just want to say that very clearly that this was supposed to be a hobby surprise. And and he was always obviously our last name is Nagel. He was always kidded with, you know, Oh, Nagel bagel. It was a little chubbier in middle school. And and then we had always said, Oh, wouldn’t that be fun? We could have a bagel. You know, Nagel bagel is a bagel company. Never took it seriously. I actually hate to bake. I’ve been fired from the bakery several times. And but he was like, I’m going to see if I can make a bagel. And he researched. He’s good at that and did watch some YouTube videos. And then he made the worst bagels in the entire world. I mean, oh, my gosh, they some of them couldn’t have even been a bagel. It was like a boat anchor and.

Brian Pruett: [00:31:07] Sell.

Kelly Nagel: [00:31:07] Them. Yeah, right. And so but he kept that was actually a really good thing to happen because he was like, well, this isn’t going to beat me. I’m going to figure this out. And so he kept trying. Kept trying. And then. They he started getting good and we were giving them to friends and things like that. And one of those friends that tried happen to be the person that runs the Cartersville Farmer’s Market. And so she called us and said, By the way, you have a booth at the farmer’s market. We had no idea what that meant. Like, we didn’t know, Is that good? Is that bad? But we figure we should bake. So we took 6 hours and baked 12 dozen bagels and we sold out in less than an hour. And at this point, this was 2019. At this point, I’m still thinking we’re this is just a good hobby. Like this is going to pay for some vacations that we can use John and Joel to help us plan, buy some more books, because that’s like my fantastic hobby is I and we should probably talk like, you know, but and, and then it just kind of started snowballing. And we kept at people kept wanting more bagels and and cafes and restaurants were wanting to sell our bagels and coffee shops. And so, so now we’re back at 2020 and I got laid off and our a friend and CPA said, if anybody can make this happen, y’all can just go for it 100% and make it happen. And that’s what we did. And we opened our new bakery and cafe in June in Cartersville, 125 West Main Street. And it’s so now we have a actual cafe, we have a full bakery that we can do both wholesale catering and support the restaurant. And, and this is what we do full time, both of us, which is awesome and scary and all those things.

Brian Pruett: [00:33:14] Have you seen a bagel that’s become the popular bagel?

Kelly Nagel: [00:33:18] Well, the looking at the stats, you know, our is the most sold bagel is the everything bagel in the plain bagel. And those are the most common. Most people know those. And so those are probably as far as actual sales. But I would say we do some unique things because we’re not Yankees. I say that term lovingly and we’re also not Jewish. So we don’t have like we don’t have to hold to this ancient recipe that great grandfather told us, and this is how you make bagels, because this is just the way it’s done. So we do some things that are different, a lot of things actually. And so we have a Asiago Jalapeno bagel that’s very popular.

Brian Pruett: [00:34:04] It’s very good, too.

Kelly Nagel: [00:34:05] Yes. And our maple bacon, which our youngest daughter actually came up with, was the maple bacon bagel. That’s probably the other one. That’s our unique that’s popular.

Brian Pruett: [00:34:14] So it’s not just flavors in cream cheese. You guys can make bagels, sandwiches and stuff as well.

Kelly Nagel: [00:34:19] Absolutely. And that’s part of what we do differently with our bagels is we have everything is natural. We don’t have a single preservative or anything artificial in the entire place. I could go off on my soapbox on that, but I won’t. We use the best flour. We use local honey, that is, you know, we use raw organic sugar, we use special oil, everything. So it’s actually good for you. But we also have Millie, who is our sourdough yeast starter. And Millie is what is the yeast? It’s in every bagel. And that actually that process and the proofing process we use makes them softer. And so they’re easier to make into sandwiches and to use, you know, in other ways than just like your regular bagel with just cream cheese. Although we do have that.

Brian Pruett: [00:35:12] Yes, you can get that because that’s one of my favorites is the blueberry that you have. Yes. So another cool thing that they’ve got in stone is they have a bagel bus, which, if I’m not mistaken, you got got you actually got that and brought up from another country.

Kelly Nagel: [00:35:24] Yes. So my husband is from Southern California and grew up in the bad part of Los Angeles.

Stone Payton: [00:35:30] That is another country, right?

Kelly Nagel: [00:35:31] Yes, that is actually completely different culture. He was it was very funny to when he moved here. And even though it’s been like 15 years that we’ve I grew up here, but we I brought him back after we lived in California. I still can use the excuse when he does something wrong. Well, you know, he’s from California and people are like, oh, yeah, that makes sense. That makes sense. But yeah, so we he’s always loved vintage VW busses and bugs and you know and we’re both car people anyway And so he actually commissioned a 19 6823 window VW Microbus and we had it restored in Brazil and brought over and got that in August I believe and it’s a. Bryant because it was fully restored, and yet he is in the garage every day doing something. And every day Amazon sends something and it’s for the bus. And I was like, Huh? Just thought it was fully restored.

Brian Pruett: [00:36:36] Which his baby. He’s got to take.

Kelly Nagel: [00:36:37] Care of it. Absolutely. Absolutely. We do love it, though. It’s a great, great thing.

Brian Pruett: [00:36:41] It’s a conversation piece as well.

Kelly Nagel: [00:36:43] It is. It’s a great marketing piece, quite frankly. I mean, people come in and they’re like, hey, I saw the bus. And so I decided to come and try a bagel.

Brian Pruett: [00:36:52] You guys actually sponsored our breakfast at the golf tournament That helped in September for Aces Youth Homeward Experiences Foundation. And if I’m not mistaken, that might have been the first event you brought the bus out to.

Kelly Nagel: [00:37:01] It was it was the first event. He was a little nervous driving it that far and everything, so but it went great. He and of course, got a great reception.

Brian Pruett: [00:37:10] Yeah, the golfers loved it. They couldn’t they just kept wanting to talk about they didn’t care about the bagels. Well, they did, but after they wanted to talk about the bus.

Kelly Nagel: [00:37:16] It’s true. It’s true. We get that a lot.

Brian Pruett: [00:37:18] So I know you have a big heart for giving as well. And you shared a few months ago at a luncheon about a nonprofit or program you want to do eventually with the bagels. Can you share share that?

Kelly Nagel: [00:37:31] Absolutely. As part of our vision statement, actually having, you know, having a marketing background, of course, we wrote, you know, a marketing plan, a vision statement, mission statement for needless bagels. And part of that is that we want to end hunger in every community where we are, have a presence, and we get that. That’s a big goal. We’re okay with that. With why? Why dream if you don’t dream big, right? And so as a part of that, we support organizations that feed people. So currently the big ones we do are a good neighbor, homeless shelter. We support backpack buddies and we support Live 2540, which is the love shirts that you’ve seen all around. And those are organizations that feed people. And eventually we would are. One part of that vision is to have our own nonprofit or arm, you know, of our business and it be called Bagel on the Hook because in Eastern Europe, every bakery, they buy their bread every day over there and you go in and you can buy a loaf of bread and then you could buy another loaf for the hook. And then when somebody else comes in to the bakery, if they don’t have any money, they just ask the proprietor, Do you have any bread on the hook? And if they do, no questions asked, they grab that bread off the hook and give it to the person. And so it just feeds people. And I don’t know, I just can’t make the basic sustenance of life, which is bread, and then not be giving that bread to people who are hungry. It’s ridiculous that we live in this country and there are still people that go home and don’t know where they’re going to eat their next meal. And that is, quite frankly, our irresponsibility as humans. And so we to we want to rectify that, not to make people feel bad, but just I just think people if people see more people doing it and if they see how easy it is, then they want to follow suit. And so that’s that’s how that’s how we do it.

Brian Pruett: [00:39:37] So you just mentioned the good neighbors, homeless shelter and backpack buddies, and you and Rich are taking part and the dances with Dancing with the Stars. Share what that is and how can people support you?

Kelly Nagel: [00:39:48] Yes. So I. Kondracke into dancing with me for the Cartersville Dances with the Stars. So we will be dancing as a couple. The event is actually March 4th, but up until then, every couple that’s dancing has to raise money. And Brian, you won’t be this doesn’t surprise you how competitive Rich and I are. So we’re like, oh, we want to raise the most money. And so we are doing several fundraisers and things as well as dancing several hours a week. Practice, y’all. I don’t even have to go exercise anymore. Just that in and of itself is so much exercise and quite frankly, so much fun to be able to do and do together. It solves a lot of arguments in our house that, you know, we can you know, you can’t be mad at somebody after you’ve danced with them for that long. And so that’s fun. But but yeah. So we they. The event goes to good neighbor homeless shelter and backpack buddies in Cartersville, Georgia. And if you don’t know what those do. So good neighbor homeless shelter has a an emergency shelter as well as transitional housing. They also help straight. They do a street program out of there. And it is the epitome of teaching someone to fish instead of giving them a fish. Guests come in that are you know, in situations like what Tony was in, they had no idea that they would be. I mean, so many people have no idea that they are one incident away from devastation and they can walk into this place that is a home and they are a guest and they are given education and they’re giving the resources on how to get back on their feet and they’re able to stay there for up to 10 to 12 weeks.

Kelly Nagel: [00:41:50] And there they get a job and they’re helped with how to do all those things. And I mean, there’s so many roadblocks to people if they don’t have a driver’s license or lost their driver’s license or Social Security card and, you know, just having help to get all that is awesome. And then to the point that then there’s transitional housing to help them get back on their feet that way. And and and it’s just there’s so many success stories. I met a guy a few years ago who was at the shelter, came in destitute. He had been living on the street for a long time, and he left the shelter as a manager of a fast food restaurant. And he was actually moving to, I think, South Georgia because they had transferred him to take over another store within this thing. And that that story is common with Good neighbor. So they’re not you know, they’re feeding people, obviously, and all of our leftover bagels for the day go to them. And but they’re also helping people get back on their feet and backpack buddies. A backpack goes home with children who don’t have any food. The only meals they get are at school and a backpack full of nonperishable food goes home with them on Fridays to feed them and most likely their family over the weekend. And it’s very discreet program. People, you know, other kids don’t know it’s happening. And that way they’re able to eat and still have some dignity and they do feed them over the summer as well.

Brian Pruett: [00:43:28] So, you know, let’s see, Wednesday night I started the first charity trivia giving back event and Good neighbor homeless shelter is going to be February’s. Yes. So make sure you put February 22nd, come to Saint Angelo’s, enjoy a great buffet, a great organization, and I’ll be doing backpack parties later in the year. So.

Kelly Nagel: [00:43:49] Yeah. And so rich and I’ll be there to to cheat so we can win.

Brian Pruett: [00:43:53] Yeah, we the trivia. I’ll make sure that all the phones get taken next time. So.

Kelly Nagel: [00:43:58] Yeah, that’s a good idea. That’s a good idea. So can I do a shameless plug for people to give money to our.

Brian Pruett: [00:44:04] Sure, go.

Kelly Nagel: [00:44:05] Ahead. All right. So if you text 4144, four, if you text the word Nagel in AGL to 41444, it will send you a link that you can donate to us so that we can raise the most money.

Brian Pruett: [00:44:19] There you go.

Kelly Nagel: [00:44:20] We’ll get a trophy for that. So.

Brian Pruett: [00:44:22] Well, there’s I mean, you’re doing a lot anyway, but you also have a heart for helping other small businesses. And you are the new president for the Growth Business Association for this year. So first of all, congratulations on that.

Kelly Nagel: [00:44:35] Thank you. That gave me a tiara. It’s the only reason I did it.

Brian Pruett: [00:44:38] There you go. Share a little bit about the ABA and how people can get involved with that.

Kelly Nagel: [00:44:43] Absolutely. So, yeah, the Acworth Business Association was integral in helping get Nagel’s Bagels started. I had been involved when I had worked for the credit union and met a lot of just amazing people. And I and so when I got laid off and said, Hey, this is what we’re going to do, we’re going to make it work, that organization was like the people, you know, that are members. They were like, What can we do? How can we help? And they really helped get us off the ground and continue to support us, which is amazing. And so my theme for this year, our goal with Acworth Business Association, is facilitating connections. We want to connect people with other people. One of that is that we have lost connection with humans because we had we do have that silly phone and we think that we’re really connecting people when we’re not. And so I want people to get face to face with other people and get vulnerable and, you know, really get real connection. But also I adhere to the business philosophy that Zig Ziglar says, and he says, if you can have anything you want. As long as you help enough other people get what they want. And so that’s what we do and that’s what we push for people to do, is, you know, you’ve been in business for a long time, Brian, so somebody who’s just starting out, you give them an hour of your time and hey, this is this is some mistakes I made. These are some right things I did. Here’s some connections. You’re amazing at connections and, you know, here’s some connections. I have to help you get started. I mean, those things are invaluable. And I mean in that what we’re supposed to do just as humans helping other humans.

Brian Pruett: [00:46:24] Absolutely. I mean, that’s I think I share this, but obviously my passions are are fundraising and sports, but connecting others is my other passion. And it’s just you get it high when you can see those connections and they work with other people.

Kelly Nagel: [00:46:36] Absolutely. Absolutely. Speaking of sports, I do feel like we need to ask Joel if she is in the Buffalo Bills Mafia. Oh, okay. Think. I mean, they kind of forced us all to be in it because of, you know, DeMar Hamlin, which I love and I’m glad he’s doing well. But isn’t it like the Mafia to, like, force us to be seafaring today? So I know I knew you were a Bengals fan. That’s why I was, like, making sure you didn’t bring the enemy into this room.

Brian Pruett: [00:47:03] Well, you can be frenemies.

Kelly Nagel: [00:47:04] Okay.

Jo’El Lapp: [00:47:05] All right. Yeah. My parents had season tickets for, like, 33 years for the Bills Games? And when you’re a Bills fan, you’re a fan because you’re going, you know, they’re shoveling off snow right before you sit down.

Kelly Nagel: [00:47:18] It’s ridiculous. I mean, they know they live in Buffalo, right? Like they know it snows there.

Jo’El Lapp: [00:47:25] And they go to season. Yeah.

Kelly Nagel: [00:47:26] I mean, we have a dome and we’re in Georgia. I’m pretty sure Tampa’s is a dome, isn’t it? No, not anymore. No.

Jo’El Lapp: [00:47:33] Once in a great while, my dad would take me to a game and we would have to pack, like, tons of newspaper to have, like, sit. I mean, it was like it was an endeavor to get ready for the game. It was. It’s very hardcore. So I spent my whole life like, my my whole my entire childhood was organized around home games.

Kelly Nagel: [00:47:52] Well, that I mean, that makes sense.

Jo’El Lapp: [00:47:54] Go on vacation. No, you can’t go to a friend’s house. There’s a game on. So I’m not really a very big Bills fan. My husband still watches the Bills, guys, but I’m just on my phone, you know, on Facebook.

Kelly Nagel: [00:48:05] All right. Well, yeah, I got married. They did. We chose the date of our wedding because it was a bye week for Florida State. So I get it.

Brian Pruett: [00:48:14] So nothing more cool or cooler? Is that a word? It is. You put food in, but nothing more cooler than women in sports, right? So, absolutely.

Kelly Nagel: [00:48:22] I unfortunately know more about sports than most humans should. So we won’t unless you want to do a whole hour on sports. We’ll have.

Brian Pruett: [00:48:28] Another show on.

Kelly Nagel: [00:48:29] That. All right.

Brian Pruett: [00:48:29] Sounds good. So somebody wants to get a hold of you for some catering or you also do a program, which is pretty cool with the bagels that have a company wants to send a thank you to their customers. You will do that as well. Sure. About that real.

Kelly Nagel: [00:48:43] Quick. Yes, absolutely. We do great bagel boxes. And it could be just bagels. It could be bagels and cream cheese. It could be like a bagel charcuterie box. And yeah, if you want to send thank you gifts to clients or whatever, we can do that. We can deliver them, packaged them, use your specific label, help design a label, all those things. And we have different price points for that, you know, depending on how much you want to thank them, you know, are you $10 happy with them or $75 happy?

Brian Pruett: [00:49:10] I think somebody gave the idea for the label, didn’t they?

Kelly Nagel: [00:49:12] So, yes, Brian was very integral in helping me figure out what how to do labels and personalize them for everyone. So I do thank you for that. Sure. Yes. But yes, we also do catering. We can come to your event. We can put a bagel bagel, breakfast board or charcuterie board in your, you know, your bridesmaids and bride room, if you want that before wedding or for Super Bowl Super Bowl party, you need a grazing table. I got you, though. Yes, we do that as well as have you know, we have specials every day at the shop. It’s today’s Friday, right? So it’s a brisket. We use Jonny Mitchell. He’s a award winning smoker and he provides us our brisket every Friday and Saturday. We have brisket bagels and they are addictive.

Brian Pruett: [00:50:02] Are you hungry now, Stone?

Stone Payton: [00:50:03] I am starving, absolutely. I love brisket and so does my bride. Yes.

Brian Pruett: [00:50:08] So again, if somebody wants to talk to you about catering, how can they do that? Or if somebody wants to talk to you about the Acworth Business Association, how can they do that?

Kelly Nagel: [00:50:16] Yeah, So anybody can go to our website. We it’s Nagel’s Bagels, Dot Co or Nagel’s bagels and brews because we do have beer and wine. So nagel’s bagels and brews. You can find us on Instagram, Facebook, all those as well as just you can just email me Kelly K l.y at Nagel Unlimited dot com.

Brian Pruett: [00:50:44] So the last couple of shows started the new Year. I think I’m going to do this all year long, though, is I want to ask you guys to share. You’ve already shared a little bit, but share either one word or something positive for this new year all year long that people should should do or live by. Tony let you start?

Toni Kirkland: [00:51:02] I would say that my words directly are worth and respect. You should respect yourself and know your worth and know that whatever room you walk into, you are worthy of being there and everybody starts somewhere. So don’t ever look down at yourself by comparing yourself to other people.

Jo’El Lapp: [00:51:25] Joel I would say be true, but be kind so you can absolutely stand up for what you believe in. You don’t have to cave, but just do it in a kind way.

Kelly Nagel: [00:51:34] Kelly Oh, that one’s good, both of them. So I always do pick a word every year. And my word for this year is not surprising. It’s connection. And I am all about connecting real with people, being vulnerable. All that, all of that. But I also I have I have ADHD, so I have trouble getting things done sometimes. And so I developed a thing called the Rule of three, and I write my list of all the things I think I have to do. And some, you know, sometimes it’s, you know, solve world peace or hunger or whatever. And then I pick three that I can do today, and I turn that piece of paper over. I write those three on there. And as long as I get those three done for that day, I don’t have to do anything else. And if you do the role of three Monday through Friday for a month, you get done 60 things, you check 60 things off your list. And quite frankly, if I can check 60 things off my list every month, I’m doing better than I am without that. So that’s kind of my my advice for this.

Brian Pruett: [00:52:36] Year, you know, doing this show. First of all, Stone, you and I have talked about this before, but it’s a great platform to get all these stories out there. Again, there’s so much negative in mainstream media. It’s great to get all this positive stuff out there. I’ve maybe I’ve had a long week and be tired and exhausted, but come Friday morning, man, I know I’ve got the shows coming up that are just incredible and being able to share these these stories. So everybody out there listening, remember, let’s be positive and be charitable.

 

Tagged With: Nagel's Bagels, The Hidden Bookshelf, Travel by Jon & Jo'El

How to Improve Earnings to Maximize Business Value, with Bill McDermott, The Profitability Coach

December 27, 2022 by John Ray

maximize business value
How to Sell a Business
How to Improve Earnings to Maximize Business Value, with Bill McDermott, The Profitability Coach
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Earnings

How to Improve Earnings to Maximize Business Value, with Bill McDermott, The Profitability Coach (How To Sell a Business Podcast, Episode 4)

Improving earnings to maximize business value was the focus of this episode with guest Bill McDermott, The Profitability Coach. He and host Ed Mysogland discussed key things business owners can do to improve earnings, strategies to improve profitability, the need for delegation, financial management, planning your exit strategy, and much more.

How To Sell a Business Podcast is produced and broadcast by the North Fulton Studio of Business RadioX® in Atlanta.

The Profitability Coach

Every business owner has a big dream for their company and wants to make it happen. The problem is many business owners don’t know how to manage the finances of their business leaving them frustrated and confused.

The Profitability Coach comes alongside the business owner and analyzes the financial health of the business and develops a plan to take them from financial confusion to clarity. Then he executes the plan focusing on areas of financial growth. Together they travel the road of financial success to profitability and healthy cash flow.

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Bill McDermott, The Profitability Coach

Bill McDermott, The Profitability Coach

Bill McDermott graduated from Wake Forest University and launched a banking career that spanned 32 years. He was laid off from his position as Chief Commercial Lender in the Great Recession of 2009. With a treasure trove of banking knowledge and analytical skills, Bill launched the Profitability Coach with the purpose of making business owners better financial managers.

Over the past 13 years, Bill has helped over 200 clients by delivering results-oriented insights, taking them from financial confusion to clarity.

Bill is also the host of ProfitSense with Bill McDermott. ProfitSense dives into the stories behind some of Atlanta’s successful businesses and business owners and the professionals that advise them. This show helps local business leaders get the word out about the important work they’re doing to serve their market, their community, and their profession. You can subscribe to the show on all the major podcast apps, and the show archive can be found here.

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Ed Mysogland, Host of How To Sell a Business Podcast

Ed Mysogland, Host of “How To Sell a Business”

The How To Sell a Business Podcast combines 30 years of exit planning, valuation, and exit execution working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and what makes it salable. Most of the small business owner’s net worth is locked in the company; to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won’t be able to sell their companies because they don’t know what creates a saleable asset.

Ed interviews battle-tested experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business for maximum value.

How To Sell a Business Podcast is produced virtually from the North Fulton studio of Business RadioX® in Alpharetta.  The show can be found on all the major podcast apps and a full archive can be found here.

Ed is the Managing Partner of Indiana Business Advisors. He guides the development of the organization, its knowledge strategy, and the IBA initiative, which is to continue to be Indiana’s premier business brokerage by bringing investment-banker-caliber of transactional advisory services to small and mid-sized businesses. Over the last 29 years, Ed has been appraising and providing pre-sale consulting services for small and medium-size privately-held businesses as part of the brokerage process. He has worked with entrepreneurs of every pedigree and offers a unique insight into consulting with them toward a successful outcome.

Connect with Ed: LinkedIn | Twitter | Facebook

 

TRANSCRIPT

Intro: [00:00:00] Business owners likely will have only one shot to sell a business. Most don’t understand what drives value and how buyers look at a business. Until now. Welcome to the How to Sell a Business Podcast, where every week we talk to the subject matter experts, advisors, and those around the deal table about how to sell at maximum value. Every business will go to sell one day. It’s only a matter of when. We’re glad you’re here. The podcast starts now.

Ed Mysogland: [00:00:35] Welcome to another episode of How to Sell Your Business Podcast. I had the opportunity to visit with Bill McDermott, who’s known as The Profitability Coach. And, you know, I’m really skeptical on those consultants and people like that. And it came from a referral from Business RadioX, John Ray. And the first thing he said was what a quality guy he is, and this is such an understatement.

Ed Mysogland: [00:01:11] And so, I’m thrilled to death about the time that you’re getting ready to spend here on the podcast because Bill really helped provide some clarity on, number one, how to identify an advisor. If you’re going to hire somebody, what’s the difference between signal and noise? When should you expect a return on your investment? And so, as we went through the podcast, you know, not only was he well versed in so many different attributes of the selling process of what creates value to actually the whole exit process.

Ed Mysogland: [00:01:56] So, I think you’re going to find that Bill, as The Profitability Coach, really helped provide some really helpful nuggets on how you can make some immediate changes to your business to increase the transferable value. So, I hope you enjoy my conversation with Bill McDermott of The Profitability Coach.

Ed Mysogland: [00:02:22] I’m your host, Ed Mysogland. I teach business owners how to build value, and identify and remove risks in their business so that one day they can sell at maximum value how they want, to whom they want, and at maximum value.

Ed Mysogland: [00:02:36] On today’s show, I’m so excited to welcome Bill McDermott, who is known as The Profitability Coach. And for anybody that are small business owners, they know how important profitability and earnings are to the success of their business. And so, I am so fortunate to have this guy. I was connected by another mutual friend, John Ray from Business RadioX, and he connected us. And, boy, what a great opportunity this is. And I’m looking so forward to learning a lot about earnings.

Ed Mysogland: [00:03:17] And so, Bill, welcome. At the beginning I shared a little bit about your bio before we started recording, so can you just kind of give just a little bit of the lay of the land how you got to be The Profitability Coach?

Bill McDermott: [00:03:34] Sure. Sure. Absolutely. Well, Ed, first, let me say thank you for having me. The excitement is mutual on both sides. I was excited when you invited me to come on the show. And so, yeah, my background is I was a Wake Forest University grad. I spent 32 years in the banking industry. And then, all of a sudden 2009 hit, the Great Recession hit, and so I was laid off from my banking career. I was scared to death. But I also realized looking back, it was the best thing that had happened to me.

Bill McDermott: [00:04:17] During my banking time, I really discovered that business owners really struggled with the financial management aspect of their business. I had built up a treasure trove of banking and financial knowledge in my career as a banker, and so I launched The Profitability Coach, really helping business owners drive earnings through becoming better financial managers.

Bill McDermott: [00:04:45] You know, every business owner has a big dream for their company and wants to make it happen. What happens sometimes, though, is they don’t really know if the decisions they’re making are helping or hurting. They may not know exactly how to manage the finances of their business. And so, we have a process where we identify the hurdles that are getting in the way and to deliver to them a company that has profitability that, honestly, they never thought was possible. And so, excited to talk about that with you today. You’re absolutely right, it is all about earnings, and I would love to dive into that with you.

Ed Mysogland: [00:05:27] Well then, that’s where we’ll get started. Most of my career has been centered around working with owners and business value. I mean, ultimately when we start the process of selling a company, that’s what everybody wants to know. And everybody gets so hung up on multiples that they hear. They’re at the club and they hear the multiples. They’re watching the news and they hear price to earnings ratios and different things like that.

Ed Mysogland: [00:06:03] And I guess the longer I’ve been in the business, and I’d been in it 30 years now, it is all about earnings. And I guess that’s where I’d like to start. It seems so fundamental that value is based on profitability, but it doesn’t seem to resonate with business owners. Or, you know, they’re so caught up in working the business and if I’m able to pay myself, if I’m able to do the things I want to do, and have the freedom I want, no big deal. Up until the part where they think they want to sell. So, why is that component so glossed over?

Bill McDermott: [00:06:48] You know, I think you hit on it – by the way, absolutely great question and great topic – you mentioned it a little bit yourself. You know, I hold the view that business owners are so busy working in the business. They don’t really take time out to work on the business. They don’t have that time where they’re really looking at strategy. And so, honestly, I think every business owner should take time to stop working in the business and work on it.

Bill McDermott: [00:07:22] To your point on earnings, I share with my clients that generally speaking, a one percent increase in your top line is equivalent to a ten percent increase in your bottom line. You know, revenue is vanity, but profit is sanity. And so, in order to be sane, we really need to be focusing on driving earnings, but also by driving revenue.

Bill McDermott: [00:07:51] We could go down the path of, you know, generally speaking, clients I talked to, their prices are too low. They have more value to their product or to their service than they think they do. Or, second, they maybe haven’t figured out a way to actually increase volume. But both are equally important and both can equally drive revenue, therefore drive earnings.

Ed Mysogland: [00:08:13] Yeah. But, boy, I’ll tell you, it’s hard to make that leap of faith. Like, I’m going to increase prices and, oh, my gosh, if I do this what’s the likelihood I’m going to lose customers? So, I totally see that that’s low lying fruit that you can do. But, I mean, if I’m a business owner, how do you coach me into just go ahead and throw caution to the wind and let’s increase price by 15 percent. How do you do that?

Bill McDermott: [00:08:49] Yeah. Well, excellent question. So, the way I approach that with my clients is, let’s pretend I go to Walmart. When I go to Walmart, I’m prepared and I go there because I’m going to get the lowest price. But I’m generally not going to be able to find any kind of help in the service aisle, so I have to know exactly where it is. And then, when I get to the checkout, I have to wait a long time in line because the lines are so long. And by the way, because the parking lot is so full, I even have a hard time finding a parking spot. But, by golly, they’ve got the cheapest prices.

Bill McDermott: [00:09:31] On the other hand, if I go to Ace Hardware, the guy meets me at the door, “What are you looking for?” “Well, I need some fertilizer for my garden.” “Okay. It’s on Aisle 3. And by the way, these are the three types that we have. This one has a fertilizer and a weed killer in it.” And by the way, most of my clients like that one, I get a whole lot of service, a whole lot of value. And so, therefore, I go to Ace Hardware because I want the help, I want the expertise, and I pay for that in the price.

Bill McDermott: [00:10:05] So, we, as business owners, have two choices. We can either be a Walmart or we can be an Ace Hardware. And the value that we create for our clients, either in time savings or money savings, is worth the increase in price. So, a lot of business owners, I think, position themselves as providing a commodity and not really diving into the value that they’re creating for their clients. And they’re afraid to price accordingly.

Bill McDermott: [00:10:39] And I think a lot of that is a mindset issue. And we all have self-limiting beliefs that maybe our business, our product or service just isn’t worth the price. And everybody else is telling us we’re silly because it really is. And so, I think it really boils down to more of a mindset issue. Not raising prices is a scarcity mindset. And the reality is, there’s an abundance of clients out there that appreciate you and value the product or service that you offer.

Ed Mysogland: [00:11:10] Yeah, I get that. And I’m an Ace Hardware guy. I love Ace Hardware. And one of the things I recognize is that I’m willing to pay a premium for that. But I guess the follow up to that is, I’m already paying a premium because Lowe’s and Home Depot and Menards, you know, they’ve got lower prices, but, like you said, I’m paying for the service. So, if I’m that Ace Hardware, I’m already doing service, how do I stress test what that threshold is before I start losing customers? You know what I mean?

Bill McDermott: [00:11:55] Yeah, absolutely. So, I adopt the idea that I’m going to ask my clients, Am I continuing to deliver the value that they expected when they first hired me? And, also, as I’m putting my services or putting my products out there, if no one is telling me I’m too high, I’m going to automatically assume I’m too low.

Ed Mysogland: [00:12:26] That’s a good point. That’s really good.

Bill McDermott: [00:12:27] So, where is that area? Back when I was in banking – it was great – this client told me, “Bill, my loyalty to you ends with a quarter of a point on my interest rate.”

Ed Mysogland: [00:12:44] It totally makes sense.

Bill McDermott: [00:12:46] Yeah. And so, I knew that I could get another quarter, but I wasn’t going to get a half. And, by golly, I’d better be right on with that loan fee as well.

Ed Mysogland: [00:12:56] Yeah. I’m with you on the scarcity versus abundant mindset. I think the race to the bottom is always a losing proposition. And I know it’s the default position for a lot of owners that they feel that they have to compete. But, boy, but like you were saying on mindset, that is a real big ask for some of the change.

Bill McDermott: [00:13:20] Yeah, it is. And so, to your point earlier, if we kind of reverse engineer the conversation, those business owners that aren’t driving earnings through revenue want the multiple to be higher to make up for the profit that they could be getting by charging more, but they’re not. The reality is, it doesn’t matter what multiple I use, if I have a dollar’s worth of net profit that equates in a five times multiple, $5 of business value. And so, if I’m not driving the earnings, I want the multiple to be high. But that’s the wrong focus, to your earlier point, the focus on earnings.

Ed Mysogland: [00:14:09] Yeah. So, when you focus on earnings and you increase it to a 20 percent increase and you put a five multiple on that, versus put the same increase on the multiple, I mean, it’s two entirely different results. So, the earnings taking advantage of the number of turns on the multiple is always superior.

Ed Mysogland: [00:14:38] Okay. So, there’s four areas of profitability improvement that we typically see. So, it’s reducing costs, increasing inventory turnover, increasing productivity, and increasing efficiency. Those are big, big components of a business. But what do you think is the biggest area I should focus? If I’m a business owner, I should focus on this? And I suppose it’s company specific. But generally speaking, in your experience, where do I focus my attention?

Bill McDermott: [00:15:16] Yeah. So, I’m going to go back and maybe share a story, but this saying did not originate with me. Revenue is vanity. Profit is sanity. The cash flow is reality. So, I was working with a company that was a management consulting firm, international firm. They were doing incredibly well, but they got into trouble during the Great Recession because nobody was doing much, if any, management consulting when the downturn came.

Bill McDermott: [00:15:59] So, this company had to do a pivot. Basically did, and went from losing a-half-million dollars a year to making a-half-million. It was $1,000,000 swing in a year. It was absolutely fabulous. But this business owner said, “Bill, I made a-half-million dollars in profit this year. Where’s the cash?” And basically I said to him, I said, “Randy, look, you see that big honker accounts receivable number that’s sitting on your balance sheet? There’s your profit. If you go out and collect it, then you’ll have the cash.”

Bill McDermott: [00:16:37] So, certainly focus on profit. But I also think focusing on cashflow, I mean, profit doesn’t pay payroll, cash does. And so, I generally try to focus on profit. But if you aren’t doing, to your earlier point, turning the inventory, collecting the receivables, you’re missing out on cash that could be sitting in your bank account instead of sitting in your client’s or your vendor’s bank account.

Ed Mysogland: [00:17:10] Yeah. And a lot of business owners fail to understand that when a buyer goes to buy their business, there’s two checks that they write. The first one is for the business, the second one is for the working capital. And I don’t think that they recognize or I think they have a hard time recognizing that the more that’s tied up in working capital – to your point, that’s not in cash – it’s going to cost me to fund the working capital more than it should, because I’m not collecting receivables in a timely fashion or whatever the issue is, whether it’s debt, inventory, or whatever. That impairs a company’s ability to sell.

Ed Mysogland: [00:18:05] And I think you probably have coached a lot of people on, you know, if you hone in on your working capital, you’re reducing your risk, which is increasing your value, right?

Bill McDermott: [00:18:16] Yeah. To your point, recently we successfully completed a management buyout where this professional services firm sold the company for $13 million, and it was a combination of seller financing and bank debt financing. But when the negotiation on the purchase agreement came, the seller wanted, basically, to take as much cash out of the business as they possibly could. And so, the the broker stepped in and said, “Time out. We need to have adequate working capital. We got payroll, we got purchases, all of this.”

Bill McDermott: [00:19:01] And so, the owners were thinking about their pocket. They should be thinking about their pocket. But, also, since they had seller financing involved by stripping out all the working capital, they put their debt at risk to a certain degree. So, yeah, working capital is incredibly important.

Ed Mysogland: [00:19:21] And one of the best things that you’ve said today is just that, the seller financing and the working capital that they put the seller financing note at risk by how they were treating the working capital. And if I’m a business owner, that’s a big takeaway right there, that you don’t understand or you need to understand that they’re all intertwined together. Everything is intertwined. And each component of a business has risks and benefits. And by not acknowledging one, you’re putting another at risk. That was awesome. Go ahead. I’m sorry.

Bill McDermott: [00:20:20] I was just going to say, so in my banking career, as I was talking to business owners, I coined the term called bank speak. And what I found was happening is I was throwing out terms, working capital being one, cashflow being another, inventory turnover being another, I caught myself using terms that my clients didn’t understand.

Bill McDermott: [00:20:49] And so, I think you and I take for granted everybody knows what working capital means, Ed, but what I found is many business owners, because nobody taught them accounting in school and there’s no on-the-job training when you’re a business owner, I have to be careful to define terms that I’m using because a lot of times I use terms people don’t understand.

Ed Mysogland: [00:21:12] No, that’s a great point. And that was one of my questions is, with all of this information out there, with everything that’s all over the internet, just the vast amount of content, why do you think that business owners aren’t more versed in basic accounting?

Bill McDermott: [00:21:34] Yeah. I think everybody starts out, if you’re starting a business from scratch, it’s because you’re a great technician at whatever it is that you do. So, for example, coming out of a banking career of 30 years, I saw a lot of business owners that ran businesses, but I had never run a business myself. I was never one that had to go out and basically do everything that needed to be done for me to have a paycheck. And so, I think they’re great technicians.

Bill McDermott: [00:22:22] A CPA is a good accountant. An architect. You know, somebody like me who’s a business consultant now, thank goodness I had a lot of accounting and finance in my background. But they’re good technicians, they just haven’t learned how to become business people. And so, if you haven’t taken accounting and finance classes in school or gone to some seminar or maybe a community college to take some courses, you don’t really feel like you’re well-versed in how to manage or how to run a business. You’re a good technician. You’re just not a business person.

Ed Mysogland: [00:23:03] Yeah. And I agree with you. And one of the challenges that we bump into is just that, you’re a great technician, but you’re not a great business owner. And as a buyer of your business, I really need you to be a great business owner because that’s who I’m replacing. I’m not the technician. You know what I mean?

Bill McDermott: [00:23:25] Yeah.

Ed Mysogland: [00:23:29] One of your claims to fame is your coaching, that you’re able to coach people through complex matters. And I guess I’m curious to know how you get over the pushback of time. And as a guy with not a lot of it, I’m sitting here going, “All right. If he asked me to fix a component of my business, how do I make more time to do what you’re asking?” And you can have all the empirical evidence that it’s going to fix everything in the business or fix this part of the business. Do I have to wait until the pain is great enough? Or do you have some secret sauce to help me overcome that?

Bill McDermott: [00:24:20] Yeah. No secret sauce. But I think maybe just some common sense. Again, I think business owners tend to want to be all things to all people. They might also be very high control. It’s not going to get done well unless I do it. And so, the business owner becomes, for lack of a better term, Ed, the choke point in their own business. They’re their own worst enemy.

Bill McDermott: [00:24:57] And so, statistically, do you know how many companies break through the $1 million revenue barrier and the $10 million revenue barrier?

Ed Mysogland: [00:25:09] No. How many?

Bill McDermott: [00:25:10] Ten percent through the $1 million barrier, only three percent through the $10 million barrier of all businesses that ever start. What’s the number one reason? Delegation.

Bill McDermott: [00:25:24] And so, what I tell that business owner is, “Look, your time is valuable.” You know, I calculated an effective hourly rate for a business owner by taking the profit in their business, plus their salary. And it came out to about $150 an hour. And so, I said, “Look, any activity in your business that can be done less than $150 an hour, you need to hire somebody to do it because it will allow you to increase your hourly rate to 200, then to 250.”

Bill McDermott: [00:26:02] And so, the ability to take on those things that they’re not taking on is basically just giving those tasks to other people and allowing them to focus on more revenue generating activities versus administrative activities.

Ed Mysogland: [00:26:18] Yeah. I hear you. And I can hear the business owner going, “Yeah. Where am I going to find this person? Everybody that’s working for me is complaining that they’re overworked and underpaid. If I add another person, where am I going to find them?” And how do I – I shouldn’t say how do I. Then, it’s throw your hands up, screw it, I’ll do it myself. And that’s the default position because of the difficulty of what you’re asking.

Ed Mysogland: [00:26:58] I totally agree with you. I think the next generation of business owners, it’s about delegation and automation. I totally believe that that’s the path that we’re going toward. And those that either go from first generation to second generation or a successful third party sale, I totally believe that those buyers or that next generation, those people that have a command to delegate, whether that’s to third parties like Upwork or some of these organizations, the Gig Economy, or you can find help, personally, I think that is the long term of the successful business. I think.

Bill McDermott: [00:27:54] Yeah. So, a quick story on that. I worked with a client. Their books were an absolute mess. They were a multimillion dollar company. And they had an accountant who is moonlighting doing their books. And the financials weren’t done on time. There were errors. And the owners were spending their time going in and correcting errors. And I said, “Look, go out and find somebody who’s QuickBooks certified. They can be a CPA. They can just be an accountant. But somebody who is really, really good.”

Bill McDermott: [00:28:31] And so, I referred them to a service that I use, because you find people based on relationships. And so, they brought this accountant in. This person has straightened out their books in the span of two months. We just had the second month end close. Bank accounts reconciled. Financial statements were timely and inaccurate. And this client now has clarity in his financials where, before that, they had confusion.

Ed Mysogland: [00:29:05] Yeah. And, again, that’s back to knowing where to look for the talent. And like I said, I think most business owners are faced with the pain of making the change as opposed to the change itself. You know what I mean?

Bill McDermott: [00:29:25] Well, it’s the principle of inertia, right? A body at rest tends to stay at rest. A body in motion tends to stay in motion. You know, my business owner client was stuck accepting that moonlighting accounting person getting subpar financials. And basically just made a decision, “Okay. I’m drawing a line in the sand. I’m going to upgrade my requirements and get somebody in here to do a better job.”

Ed Mysogland: [00:29:56] And, again, to your point earlier on having good records and being able to have clarity of your cash position or your financial position, that’s an important thing. Reading your email and trying to figure out what to do next, somebody probably can do that a little bit more effective than you.

Bill McDermott: [00:30:23] Yeah. The other thing I’ll say on that topic, I’m a big believer that your balance sheet is more important than your income statement. Your income statement certainly measures your profitability, but there are three other things that you care about. You care about your liquidity, how much cash you have that’s on your balance sheet. You care about how you’re collecting your receivables and turning your inventory, that’s on your balance sheet. And you care about your leverage, how much debt you have relative to the net worth of your business. And so, three out of the four things that you track are on your balance sheet. Most business owners don’t look at that first. They look at their income statement first.

Ed Mysogland: [00:31:05] Yeah. We face that, too, when helping these business owners. There is a disconnect between the two. It’s what’s my net income. When we do value work, one of the things that we do is, this is what you’re going to put in your pocket. And that’s part of liquidating your balance sheet. And, oftentimes, that’s more than the tangible and intangible value of the company. You know, once you start liquidating current assets and retiring debt, that’s a whole nother event. Go ahead. I started to interrupt you.

Bill McDermott: [00:31:56] I was just going to say, the other thing that comes to mind, you’re mentioning, also most business owners when they’re selling their business, focus on the gross amount they’re selling. But they may not be factoring in taxes, if it’s an asset sale, as well as debt.

Ed Mysogland: [00:32:17] The highest price is not always –

Bill McDermott: [00:32:20] It’s the net.

Ed Mysogland: [00:32:21] Yeah. And we bump into that a lot, that it’s not the highest price that’s the best price. That allocation of purchase price is really, really important.

Bill McDermott: [00:32:32] It really is.

Ed Mysogland: [00:32:32] So, everything we read, it seems as though we’re heading into a recession. That there’s some level of downturn. So, granted, it was your greatest blessing that you got displaced and here you are. But how did you make that pivot? Because I think there’s going to be a lot of people that are in similar situations or are finding themselves in similar situations right now. So, how did you make that effective change into entrepreneurship? In your case, you started the business versus buying the business. So, how did you get comfortable with the risk that you were taking, I guess?

Bill McDermott: [00:33:26] Yeah. So, necessity is the mother of invention. My wife had two daughters in college. We had a mortgage to pay. And she was the preschool director at our church preschool. And that was not going to be enough to do it.

Bill McDermott: [00:33:45] So, I was financially motivated. I read a really great book. It was called The E-Myth by a guy named Michael Gerber. Michael Gerber says, establish a prototype of the business that you want to build, which in effect is, really, if you are going to franchise your business, this is what you would show a potential franchisor. So, I’m a person of faith. Part of my prayer time after I was laid off is I would say to the man upstairs, “Okay. You closed the door. Would you open a window? And by the way, would you put a little neon around it so I can see it.”

Bill McDermott: [00:34:34] But I found that business owners really struggled with financial management. I was passionate about helping them become better financial managers. Next, I found that I’m a pretty good teacher. And so, teaching these business owners how to be better financial managers was something that I was good at, and then figuring out how to monetize that.

Bill McDermott: [00:35:06] So, this is a page out of Jim Collins’s book, Good to Great. If someone’s thinking about becoming an entrepreneur themselves, what are you passionate about? What are you best in the world at? And what drives your economic engine? And where those three circles intersect is your greatness.

Bill McDermott: [00:35:28] And so, for me, passionate about making business owners better financial managers, teaching them how to run more profitable businesses with healthy cashflow, and then monetizing that as a business coach. And that’s kind of how I did it.

Ed Mysogland: [00:35:46] Yeah. Well, you know what? That whole leap of faith thing – also, I’m a red letter guy myself – I totally believe that, you know, there’s some divine intervention that goes into entrepreneurs where you’re building the kingdom. I totally believe no matter where you’re at on the spiritual spectrum, whether it’s the universe or God or whatever you want to call it, there is some level of wind behind your back to make these doors open.

Ed Mysogland: [00:36:26] I’m guilty of this, too, as far as hiring consultants. I am horrible at it. And one of the things is, you know, when should I expect a return on my investment? It’s not writing the check. It’s when am I going to get repayment for it? You know what I mean?

Bill McDermott: [00:36:49] Yeah. Great question. So, I think, in my experience, I’ve worked with quite a few professional services firms. I can think of one psychology firm, three locations, very well-established practice. This firm hired me for two years. And, essentially, what we did is we did an analysis of the business. We looked at the areas where we could really accelerate financial growth.

Bill McDermott: [00:37:33] And then, after a two year period of time, first, we focused on collections. A lot of their receivables were from insurance companies. Insurance companies are notoriously slow pay. So, we basically had them pick up their pace on collections, which put another $50,000 of cash in the bank. Then, I’m a big believer in the power of one percent. Looking at ways where we can increase revenue one percent consecutively over periods of time.

Bill McDermott: [00:38:10] So, the cumulative effect for this firm, over a two year period, we increased revenue 45 percent total, so roughly a little over 20 percent per year for ten years. The profit that was generated paid 100 percent of my consulting fees and gave the owner another 100 percent return on their spend. So, it took two years in this case.

Bill McDermott: [00:38:45] You know, I know for me, I hired a marketing firm to come in and help me with my brand messaging. I did that two years ago. This year, I’m having my best year ever in the 14 years that I’ve been in business. So, I would say, when you buy a stock, you’re interested in buying quality stocks that aren’t big gainers, because big gainers also can be big losers. But if you can earn 10 percent year over year, your money compounds every seven years, roughly. And so, I’d say slow and steady wins the race. You know, if you can get a decent return in the first year or two, I think you’ve hit a homerun.

Ed Mysogland: [00:39:36] Well, one of the things that we bump into is that everybody’s an expert now. How do you get between what’s signal and what’s noise? Like I said, and I was telling you before we started, you know, my wife’s a therapist and there is all kinds of noise in her industry of solving problems. When in fact, there’s a lot of complex trauma and different things that they have to deal with that requires specialization. So, my point is that anybody can write a blog article about profitability and this, that, and the other. But how do I find people like you that are going to give me that 10 percent return year over year over year?

Bill McDermott: [00:40:26] Yeah. I subscribe to the philosophy of people do business with people that they know and they trust. And so, I always put relationships first, Ed. I just think we were all put on this earth to figure out a way to live together and to help each other. And so, I find that relationships follow a progression. You know, first, I get to know somebody and they get to know me. Then, we like each other. Then, we try each other. Then, we trust each other. And then, we refer each other.

Bill McDermott: [00:41:03] And so, going through that relationship progression, I think it’s totally based on relationships. You sort the noise from the people that you really want to do business with based on the quality of the relationship that that’s developed.

Ed Mysogland: [00:41:20] Yeah, 100 percent. I mean, I was just looking at our deal flow and we spend so much money on external marketing. But I’ll bet 80 percent of our revenue comes from referrals, people doing business that we’ve done a good job for that have referred us. And so, I’m with you. This is how you sniff out – I don’t want to say a fraud because I don’t mean a fraud. This is how to sniff out who’s best in class versus those that probably should be on junior varsity. Anything come to mind?

Bill McDermott: [00:42:01] Yeah. So, I’m sure you’ve probably had this experience. There are a lot of people on LinkedIn that basically put relationships last. You’re their best friend. They don’t even know you. You don’t even know them. But, by golly, they have a solution to a problem that you didn’t even know you had. And we all get those emails and just messages on LinkedIn.

Bill McDermott: [00:42:35] And so, I think to kind of sniff those out, who approaches me trying to sell me something rather than getting to know me, you don’t have the right to sell me unless you know me and I know you. And so, that would be one easy way.

Bill McDermott: [00:42:57] The other thing I usually do is, when I’m going through and looking at my LinkedIn feed, if there are people that are really making some really solid comments or suggestions in a LinkedIn exchange, I kind of determine, “Hey, I’d like to know more about that person just based on some of the insights they’re sharing.”

Ed Mysogland: [00:43:23] Yeah, I agree. I mean, providing some meaningful comments versus just broadcast stuff. I get it. So, I know we’re pushing on time, so if you have a couple more minutes, I got a couple questions.

Bill McDermott: [00:43:41] Yeah. Absolutely.

Ed Mysogland: [00:43:41] All right. So, I know you do some exit planning work. And so, I wanted to focus a little bit about, you know, are you seeing business owners that are coming prepared to sell or are they playing catch up and you’re trying to fix things before they go to market?

Bill McDermott: [00:44:03] Definitely the latter. As I said earlier, that business owner is so busy working in the business, they’re not working on the business. All of a sudden, a business owner maybe that has run a business for 20 years, he or she finds themselves, “Gosh. I’m 60, 61, 62. I’m not going to be doing this a whole lot longer. And, by golly, I have done nothing to build the value of my business.” So, the default is the business owners that I run into have done little to no planning.

Bill McDermott: [00:44:47] And the other concept that you and I probably both deal with is that business owner that has not created transferable value in their business and how they do that is a way that you can truly try value but very little to no planning.

Ed Mysogland: [00:45:12] And that’s what’s heartbreaking is because either – I don’t want to say tragedy, but circumstances, life circumstances come bumping into them and now they’re forced into a decision on how to make this illiquid asset liquid. And, boy, that is a heartbreaking situation. Like I said, it’s not necessarily that you can’t transfer the business, but the problem is it’s not going to transfer for what you want. And so, that creates a lot of the challenges that at least we see.

Ed Mysogland: [00:45:51] I wanted to ask you, you know, what makes exit planning effective? I mean, granted, if you have a lot of runway, that’s an easy layup. There’s all kinds of things you could do. But the people that are hearing this going, “Man, I really want to sell my company. I haven’t done anything.” So, as the profitability coach, is there anything that you can suggest that would lead me to a better than average exit?

Bill McDermott: [00:46:34] Yeah. So, I’m going to try to answer that question and try to tell a story at the same time. So, we’ve all sold houses. And when we sell a house, we get it ready for sale. Usually, a fresh coat of paint, maybe some new carpet. What sells houses from what I’ve been told are bathrooms and kitchens, and so you want to be sure that you’ve got everything updated. Generally, you’re not going to try to sell your house yourself or you shouldn’t, because what you think it’s worth and what that appraiser for that mortgage lender thinks it’s worth or the buyer, you always want to have someone between you.

Bill McDermott: [00:47:26] So, selling a business, sprucing things up is really creating a management team that can successfully run the business and transfer the value to that team. I found having that management team, being sure they’re compensated in a way that they’re not going to walk out the day the business gets sold, so you need to have some kind of arrangement where there’s what I call a stay pay.

Bill McDermott: [00:47:58] Frankly, financial statements need to be reliable. Preferably audited, but at least reviewed by an independent CPA, so that you have financials that have been verified by an independent third party. Just like when you get your house appraised, it’s by an independent third party.

Bill McDermott: [00:48:21] I think it’s ideal to have a business growth plan that you can hand that potential buyer to show how the business can be grown. And I think it’s also important to have documented processes so that that business owner knows how you make money, how you have a repeatable sales process, a repeatable operations or delivery process, and then an accounting and finance process.

Bill McDermott: [00:48:55] So, mostly, I’m looking for management with stay pay, reliable financial statements, and documented processes. I’m sure there are some other equally important things. But I’m certain those are the main ones.

Ed Mysogland: [00:49:10] Yeah. And I’m going to ask you even a harder question. Out of those, which ones most important? Right. I know. You’re welcome.

Bill McDermott: [00:49:23] Businesses are run by people. Real estate is location, location, location. I’m going to say companies are management, management, management. So, I’m saying having the management team is important.

Ed Mysogland: [00:49:41] Okay. I got it. You know, in your analogy of selling a house, you know, its bathrooms and kitchens. And there’s empirical data that says, you know, if you fix up your kitchen and your bathroom, your house will sell or you’ll get X number of dollars back. Unfortunately, to my knowledge, I don’t think there’s anything like that in business, that if you replace your antiquated lades, you’re going to get your money back. I don’t think that’s going to happen.

Bill McDermott: [00:50:20] I’m in agreement. You know, when a buyer buys a business, they’re looking towards buying that business and the income stream that comes with it. But they’re entitled to a return on their investment. And at the end of the day, they have a return that they want to earn based on the amount of the business that they’re paying.

Bill McDermott: [00:50:44] And pure and simple, when we invest in stocks, we’re looking for a rate of return. When we’re investing in a closely held business, we’re looking for the same thing. And, potentially, we’re looking for an even higher return because we want to get compensated for the risk of buying that business as well.

Ed Mysogland: [00:51:06] Yeah. We say the same thing. Not only are you looking for a return on your investment, you’re looking at return of your investment. So, it’s two components. All right.

Ed Mysogland: [00:51:19] So, I finish every one of my interviews with the same question. So, if there is one piece of advice, just one – you know, they spent a-half-hour with you and me – what would that piece of advice be that would have the most immediate impact on their business? You’ve got one good nugget?

Bill McDermott: [00:51:41] I love that question. So, I think what I would say is, where are the one percent improvements that you can make in your sales process, in your cost of goods or cost of services process, if you’re a service business, your delivery process and then your billing and payment process? We’ve already talked about a one percent increase in your top line in sales. What’s the cumulative effect of those one percents? What if I can buy my materials or labor better and reduce my costs that way? What if I can reduce overhead one percent? What if I can collect my receivables one day faster or turn my inventory one day faster?

Bill McDermott: [00:52:42] The cumulative effect of all of those would be huge. And the way that you’re doing that is you’re shortening either the cycle times, you’re eliminating your mistakes, or you’re improving your business model in each of those three aspects of your business. Doing that, I think you’re well on your way to really having a game changer of a company.

Ed Mysogland: [00:53:09] I agree. So, where can people find you? And do you do work throughout the country?

Bill McDermott: [00:53:17] I do. I do.

Ed Mysogland: [00:53:19] Oh, good. All right. Okay.

Bill McDermott: [00:53:20] I have clients in Seattle, Texas, all over the Midwest, up and down the East Coast. So, where there’s technology, I can play.

Ed Mysogland: [00:53:32] You’re based in Georgia, right?

Bill McDermott: [00:53:35] I’m based in Atlanta, Georgia, yes. My website is www.theprofitabilitycoach.net. You can also find me on LinkedIn, my profile is Bill J. McDermott. I am on Instagram as The Profitability Coach. And you can also find my phone number and email contacts either on my LinkedIn profile or on my website as well. But my email, for anyone that’s listening, is bill@theprofitabilitycoach.net.

Ed Mysogland: [00:54:13] Well, we will have all your contact information in the show notes. So, if you didn’t catch it, I can assure you we will have it readily available for you. So, Bill, you know what? This absolutely was everything I’d hoped for. So, I’m so grateful for all the time. I know you and me, we start talking about time and the value of it. And I so appreciate you going over with me a little bit. And I’m certain everyone will have gained a lot from this, from our time together. So, thanks again.

Bill McDermott: [00:54:54] You made it easy for me. You asked some great questions. It was a pleasure to be on the show. Thank you for inviting me.

Ed Mysogland: [00:55:02] All right. Well, I’m going to cut us off. And once again, I appreciate you being with us.

Bill McDermott: [00:55:08] Very good. Thanks again.

Outro: [00:55:12] Thank you for joining us today on the How to Sell Your Business Podcast. If you want more episodes packed with strategies to help sell your business for the maximum value, visit howtosellabusinesspodcast.com for tips and best practices to make your exit life changing. Better yet, subscribe now so you never miss future episodes. This program is copyrighted by Myso, Inc. All rights reserved.

 

Tagged With: Bill McDermott, Business Owners, business value, Ed Msyogland, exit planning, How to Sell a Business, How to Sell a Business Podcast, maximum value, P&L, profitability, ProfitSense, ProfitSense with Bill McDermott, selling a business, The Profitability Coach, valuation

Dan Fisher With Bottle Rocket Media

December 21, 2022 by Jacob Lapera

Chicago Business Radio
Chicago Business Radio
Dan Fisher With Bottle Rocket Media
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Firmspace-sponsor-bannerDan FisherAs a Principal and a Director at Bottle Rocket Media, Dan Fisher is excited to be able to combine his years of experience as an Editor, Producer, Director, and Photographer to create content across many platforms.

Connect with Dan on LinkedIn and follow Bottle Rocket Media on Facebook.

What You’ll Learn In This Episode

  • Business lessons learned over the last 10 years
  • Smart risks as a business owner
  • About Bottle Rocket Media Rocket Sauce
  • Favorite shoots over the years and why
  • The importance of video in current times

This transcript is machine transcribed by Sonix

TRANSCRIPT

Intro: [00:00:03] Broadcasting live from the business radio studio in Chicago, Illinois. It’s time for Chicago Business Radio, brought to you by firm space, your private sanctuary for productivity and growth. To learn more, go to firm Space.com. Now, here’s your host.

Max Kantor: [00:00:21] Hey, everybody, and welcome to another episode of Chicago Business Radio. I’m your host, Max Kanter. And before we get started, as always, today’s show is sponsored by firm Space. And thanks to firm space, because without them, we couldn’t be sharing these important stories. And we’ve got a good one for you today. On today’s show, we have the principal and director of Bottle Rocket Media. So please welcome to the show, Dan Fisher. Welcome to the show, Dan.

Dan Fisher: [00:00:45] Thanks for having me.

Max Kantor: [00:00:46] Me. Let’s jump right in. Tell me a little bit about bottle Rocket media.

Dan Fisher: [00:00:52] Well, Bottle Rocket Media is a company that my partner, Brett Sager and I, we started 11 years ago. We’re a video production company that work in the advertising and marketing space and internal communications, which is basically to say we do everything but feature films.

Max Kantor: [00:01:11] Gotcha. How did you guys get into that industry?

Dan Fisher: [00:01:14] So I’ve been in this business forever prior to prior to starting this business. Brett and I, we both met, we were working on the Oprah Winfrey Show, and when the show ended, we were looking for what’s next, and we decided to take matters into our own hands and just start this company to bring broadcast quality work to the private sector.

Max Kantor: [00:01:36] And what year was Bottle Rocket Media founded?

Dan Fisher: [00:01:40] 2011.

Max Kantor: [00:01:41] Wow. Okay. So you guys are like ten years old. So over these ten years, like, what are some lessons that you’ve learned? Because I’m sure along the way things have gone smoothly, Things have gone poorly, you know, what have you learned over this decade plus of experience you now have?

Dan Fisher: [00:01:56] Yeah. You know what? What’s interesting is that for me, this is a this is my second or third iteration of my career. And so starting a business later in life has sort of given me perspective that I might not have had otherwise. Whereas colleagues and friends of mine who start a business younger, you know, they just grinded it out from the very beginning because they learned kind of, you know, learned on the streets for us. You know, we had a little bit of perspective and we knew from the beginning we wanted to create create a community where where the work life balance was good, where the work was quality. And the clients that we work with were of a certain standard. I’d say for me, there’s a few things that come to mind. One is be honest, no matter how uncomfortable it might be, is important these days. I learned through through a couple of relationships that when when you’re not honest up front, it’s just kind of festers and then things become challenging later on. I’ve I’d say another one that comes to mind is there’s no substitute for just doing the work. It’s hard work to to start and run a business. And there’s only so much that you can farm out and have other people do. And, and to really understand what’s what’s going on under the hood, you got to get your hands dirty and take risks, which is a common trope that people say all the time. But it’s true. You have to you have to push yourself to take risks in order to in order for the company to grow, in order for business to move forward.

Max Kantor: [00:03:36] So what does a client have to think for them to go, You know what? I could use bottle rocket media right now. What’s going through their mind?

Dan Fisher: [00:03:45] Well, today, today it’s easy. It’s an easy sell because video is ubiquitous. Everybody needs it everywhere all the time. You kind of can’t get away from it. So I would say that if you have if you have any sort of communications that you want to get out there to more than a handful of people. Video is what my clients are using. I have, like I said, I have internal clients on the larger side that need to communicate with thousands of employees at once. There’s no better way to do that than with video. I have product based clients that need to show off their products to millions of customers. Potentially. There’s no better way than that. There’s no better way to do that than with video. And I have educational clients that are trying to teach people how to. Well, it depends depends a lesson about how to teach people. And there’s no there’s no better way than than video. I mean, personally, I’m a fan of of reading in the written word, but I acknowledge that in order to communicate with with large groups of people. Communicate your message. Communicate who you are. There’s no better way to do that than with video. So kind of anybody that’s in business or marketing that wants to communicate wants to do something with video.

Max Kantor: [00:05:12] So what does a client need when they come to you? Can they come to you with just a concept for a video? Can they come to you with absolutely nothing and you’ll help them build it out? What do they need?

Dan Fisher: [00:05:23] Yeah. So basically. Basically a client can come to us with anything they need with. I’m sorry. Basically, a client can come to us with a fully baked idea or or just a notion that they need a video. We we pride ourselves in being able to step into the process at any at any part of the at any part of it. So. So we have a lot of agency clients and of course, advertising agencies and marketing agencies often typically come with the idea already baked and ready to go. And we have a lot of client direct clients that know they need a video, they want they have a message, but they don’t have the ability to translate that into a creative idea. So at Bottle Rocket Media, we are writers, directors, editors, producers, motion designers, and so we have all these creative people at our disposal, and we build a team to fit the client’s needs.

Max Kantor: [00:06:27] Now, you’ve been doing it for so long. You’ve gone through so many experiences. Do you have a favorite shoot over the years, one that sticks out to you for being maybe unique or fun?

Dan Fisher: [00:06:40] Yes, and not really. There’s just so many. Let me think what comes to mind. So we we we’ve done a lot of work over the years with American Girl. I really enjoy I really enjoy working with them because I like the organization. But also Kid Energy on set is a lot of fun. We did a shoot a handful of years ago that was maybe a dozen kids on a stage dancing with a choreographer. That was a lot of fun for me. The energy was just incredible. The kids were having so much fun. The client was was was really enjoying the results. So that was one. But then we’re in the middle of a project now. We’re working on a series of videos for a client that revolve around conflict resolution. So it’s the almost the opposite. It’s docu style, it’s super serious and educational, it’s super engaging material. And that will definitely be one of my favorite one of my favorite shoots, because the conversations that were had were just enlightening for sure.

Max Kantor: [00:07:55] And I can imagine, you know, doing that wide range of content at Bottle Rocket Media, it just keeps you on your toes. You know, you’re learning every day dealing with different subject matters and how to make it look its absolute best.

Dan Fisher: [00:08:10] Yeah. I mean, I think one of the things that Brett and I did really well was we’ve assembled a talented team of people that have overlapping skills but also individual talents. And so I have, you know, in the design space, if I have a great three D person, I have a great two D person in the in the directing space. I’m I’m a documentary person. But, but Brett and and other other people we work with Mark are might do more scripted work so we’re able to sort of stay stay versatile because people bring different different skills and different talents to the party and we find a way to engage those as opposed to putting our content in a certain box and only doing that thing.

Max Kantor: [00:09:01] Now, I was on your website to learn more about you guys and what you do, and I saw this phrase the bottle Rocket Media rocket sauce. Can you talk a little bit about that?

Dan Fisher: [00:09:15] Yeah, I mean. To me, the the rocket source is something that’s individual to each of the team members, which is what makes it kind of like a secret sauce, I think. You know, Dave, our lead editor, would would look at it very differently than than I might on any given day. For me, the sauce is transparency, both with my clients and with my team members. Authenticity. And mostly, I think it’s this desire to listen and learn from others.

Max Kantor: [00:09:58] Hmm. That’s awesome. I mean, I was reading it and I was like, This is such a fun phrase. And I think it after hearing you explain it, I think it perfectly describes what you guys are going for. And I love how you keep going back to the team, because at the end of the day, especially with what you’re doing with film shoots, the team is so critical and it sounds like you put together the perfect one.

Dan Fisher: [00:10:19] Yeah, I love my team. You know, our philosophy, Bret’s and my philosophy has always been, let’s find smart, talented, creative people. Put them in a room together and get out of their way. And it took us a while to do it since the company started with him and I and a camera. So it took us a while to hit our stride, to get our vision. But now that we’re there, I mean, we work with you know, there’s just under 15 of us at Bottle Rocket Media and probably another ten regular freelancers that are that are with us every week. And then when when we have crews, our crews sizes could be anywhere from three people, a small documentary project to 20 people and above. If it’s more of a commercial shoot. And, you know, it’s just really important to find what what makes people passionate and let them thrive in that space and everybody wins. The creative is better, the content is better, the experience is better. And it’s really how we how we approach every project.

Max Kantor: [00:11:30] Now, this next question is a question I ask every guest that comes on Chicago Business Radio, and you’ve touched on it a little, and I kind of have a feeling of what you’re going to say, but I still want to know for you, Dan, what is the most rewarding part of what you do at Bottle Rocket Media?

Dan Fisher: [00:11:50] Thank you for asking that. It is the impossible question, and I have what I think is a reasonable answer. The. I started this company to make videos and support my family, of course. And so the most rewarding part was the creative process going through, going through an idea with a client, figuring out what it’s going to look like. Maybe it’s a shoot, maybe it’s an edit only project. Maybe it’s all graphics and watching it come to fruition and seeing the joy on their faces when when it looks, feels and communicates what they want. I still love that. Of course. That’s what we do every day. That’s our product. That’s our service. But I think things have shifted for me personally in the last couple of years. The pandemic has, of course, given us a lot of time to think and rethink and overthink how we do business and the way we do business. And I think for me, the shift has come in the area of building the team where it’s no longer about making the video. For me, it’s about assembling a great team that makes the video. I really enjoy working with other people and so I think for me, the greatest joy I have is when my team is thriving.

Max Kantor: [00:13:18] I love that. And Dan, if people want to learn more about Bottle Rocket media or maybe we have someone listening that wants to utilize what you guys do and, you know, pay for your services as a video company, how can they learn more about you guys?

Dan Fisher: [00:13:35] Well, probably the best place to go is Bottle Rocket Media, dot net. That’s our website. And we’re all over social like everybody else. So on Instagram, we are Bottle Rocket three, one two. On Facebook, I think it’s just bottle Rocket media. And we’re on LinkedIn, of course, and I’m all over the place in all those places as well. So but certainly if you want if you want to get the full experience, the website is the best place to go. We have we have a great team that. We have a great sales team that on boards and takes care of everybody and makes sure that the process is seamless.

Max Kantor: [00:14:18] Awesome. Well, Dan, thank you so much for being on Chicago Business Radio. It was great talking to you. And you guys are really doing some really great work, so we appreciate all that you’re doing.

Dan Fisher: [00:14:27] Hey, thanks. Thanks a lot. Thanks for having me.

Max Kantor: [00:14:29] And thank you to listening for another episode of Chicago Business Radio. I’m your host, Max Kanter, and we’ll see you next time.

Intro: [00:14:38] This episode of Chicago Business Radio has been brought to you by firm space, your private sanctuary for productivity and growth. To learn more, go to firm Space.com.

Tagged With: Bottle Rocket Media, Dan Fisher

Dr. Phillip Hearn with Mid American Capital Holding

December 21, 2022 by angishields

Dr-Phillip-Hearn-Mid-American-Capital-Holding
Buy a Business Near Me
Dr. Phillip Hearn with Mid American Capital Holding
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Dr-Phillip-Hearn-Mid-American-Capital-HoldingDr. Phillip Hearn Ed.D. is a results-driven Senior Executive, Consultant, and Board Member with more than 15 years of success in the telecom, construction, professional services, and farming industries.

Leveraging extensive experience with expansion, and financing, Phillip is a valuable asset for companies, particularly in real estate, seeking guidance on growth opportunities and process improvement. His broad areas of expertise include research and learning, networking, account management, talent management, and customer service.

Currently Phillip is Managing Member for Family Business Properties, Lafayette Consulting LLC, Mid American Business Brokers LLC , and most recently Capital Investments USA LLC. His newest endeavor is a real estate-based LLC that focuses on investments, mortgage notes and real estate transactions. Capital Investments USA LLC, established in 2018, was spawned from the success of Family Business Properties, that Phillip has steadily grown to 7 figures over the last 14 years.

At Family Business Properties, Phillip facilitates construction project and supply management, project consulting, heavy equipment rental management, full commercial and residential renovations, enabling his clients to strategically grow their businesses, utilizing lean practices. Lafayette Consulting LLC has been operational since 2014. Phillip provides his clients with an array of services, spanning Telecom project management, bank financing, personal credit coaching, fiscal capital utilization and professional development training.

Phillip also leads new client development, public relations, marketing, and coordinates group travel for business entities. His role focuses on working with clients to find value adds and value engineered solutions to help complete projects on time and on budget.

Throughout his executive career, Phillip has held leadership positions with Good Life Growing LLC; CenturyLink; Verizon Wireless, and T-Mobile USA. Previously, as Managing Member of Good Life, Phillip formulated and implemented company policy; directed strategy towards the profitable growth and operation of the company; developed strategic operating plans reflecting the longer-term objectives and priorities.

He put in place adequate operational planning and financial control systems; ensured the operating objectives and standards of performance; maintained the operational performance of the company; represented the company to major customers and professional associations; built and maintained an effective executive team. During his prior tenure, as Global Account Manager for CenturyLink, Phillip led all prospecting and sales-related activities within an assigned territory; grew revenue and new bookings; utilized professional networks, relationships within customers, and other industry forums to create new opportunities/prospects.

Phillip built insightful and influential champions and coaches within accounts to help identify and qualify opportunities; he oversaw the customer’s decision process and created a closing process to ensure deal closure in a complex environment.

Phillip has obtained an Ed.D. from Capella University and holds an Executive Masters in Health Administration (EMHA) from Saint Louis University; an MA in Marketing and a BA in Media Communication, both from Webster University, and Lean Six Sigma (Black Belt) from Villanova University. He has served as a Board Member for the National Sales Network St. Louis Chapter and Ready Readers, for which he has also served as the Governance Department Chair and President of the Board.

Connect with Phillip on LinkedIn.

This transcript is machine transcribed by Sonix

TRANSCRIPT

Intro: [00:00:07] Broadcasting live from the Business RadioX studios in Atlanta, Georgia. It’s time for Buy a Business Near Me, brought to you by the Business Radio X Ambassador program, helping business brokers sell more local businesses. Now, here’s your host.

Stone Payton: [00:00:32] Welcome to another exciting and informative edition of Buy a Business Near Me Stone Payton here with you this afternoon. Please join me in welcoming to the broadcast with Mid-American Capital Holdings, Dr. Phillip Hearn. Good afternoon, sir.

Dr. Phillip Hearn: [00:00:49] Good afternoon, Stone. How are you?

Stone Payton: [00:00:51] I am doing well, man, and really been looking forward to this conversation. I think maybe a great place to start is if you could share for me and the benefit of our listeners mission purpose. What are you and your team really out there trying to do for folks, man?

Dr. Phillip Hearn: [00:01:09] Absolutely. So first, thanks for for having me on. I’ve been looking forward to this as well. So this would be great. So the genesis of Mid-American Capital Holdings is that we are working and trying to focus on experience to kind of give a mainstream feel to quote unquote the private equity experience. So that’s everything from focusing on companies that we’re looking at purchasing, also working with folks who are new to potentially purchasing companies or maybe even have experience, but want to start to expedite that process. So with our experience, my team and I have had over 45 years of business ownership experience, and then we have a expanding network of contacts, lead generation, the whole nine yards that allows us to go into that process and try to find a streamline. Because one thing that I hear about, no matter how seasoned or how new a business acquirer is, is trying to really streamline processes so you can’t get it right usually 100% of the time. But you can definitely work towards a method that is closer to perfection than chaos.

Stone Payton: [00:02:21] That sounds important. So what’s the backstory, man? How did you find yourself in this line of work?

Dr. Phillip Hearn: [00:02:27] So like most of my good stories, it’s kind of an accident, actually. So I actually started my first business. It will be 17, 16 years ago next month. I started my own procurement management company, so I’ve been used to starting businesses from scratch. I also have a background working in corporate America. I’ve done enough education pride to kill a horse. Right. So undergrad to master’s and a doctorate. But this is fun for me because it’s basically problem solving. And so as opposed to starting from complete scratch, which I’ve done with using most of my businesses early in my career to starting to buy smaller acquisitions and then growing into that particular space. It’s fun because you’re able to solve your use, your skill set to solve problems or challenges as you’re looking at those new businesses for acquisition and looking at even those opportunities where you see, Hey, I can play this role, I’m actually much more skillful than maybe sometimes you give yourself credit for to dive into that role of a C level or assembling teams or understanding what’s actually happening in that business and how to make it better. So I started with an accident with starting my own business, and it’s the closest thing I could find to playing sports. I’m a little older now, so trying to move around, playing certain sports is not quite the same as when I was 16, 17 and 18. So.

Stone Payton: [00:03:51] So now that you’ve been at this a while, what is the the most rewarding for you mean, what do you what do you enjoy the most?

Dr. Phillip Hearn: [00:04:00] You know, the two parts that I enjoy the most are the journey and the people. Everything is a people business. And I think if we’ve learned nothing else with everything that we went through with the pandemic, we’re now more connected than we ever have been, I think not only within the country, but but globally, truthfully. So dealing with people is kind of that tried and true piece of it. But it’s the journey. I mean, not every day is going to be perfect, nor do I expect it to be, but it’s a lot of fun. Even my worst days, quote unquote, in this type of business are better than some of the days I spent in different corporate settings. Right? I kind of look at it like I control my own destiny. I’m surrounded with fantastic people and I get to do something that is a becoming more of a passion project than even just work. So I would say the people in the journey are the two favorites for me as I as I work through this stuff on a daily basis.

Stone Payton: [00:04:51] Have you had the benefit of one or more mentors, particularly as you sort of embarked on on this fork of the path to kind of help you navigate this, this new terrain?

Dr. Phillip Hearn: [00:05:03] Great question. I’ve had mentors help with what I think is my mindset as I’ve navigated this. But I feel like with all the the trainings that I took in and trying to read up about it, I felt like I was going back to a master’s or a doctorate program. So part of my background is I’m not an MBA student or anything like that from your Harvards or your Wharton’s or your Stanford’s. My undergrad was Media communication. I originally wanted to be a sports broadcaster, so this is fun to be back and kind of a radio podcast scenario, right? I’m having flashbacks, which is fantastic. Undergrad, my first master’s was in marketing, second was in health administration, and then my doctorate is in education with an emphasis in leadership and management. So I’ve taken maybe a circuitous route to it. But at the same time, I think my past experience is there’s a ton of transferable experiences have helped me kind of get to this point. So mentors in my other facets of life, I think have helped me with the mindset of how we we attack and how we go about doing our business on a daily basis.

Stone Payton: [00:06:10] So, yeah, let’s talk about the work a little bit. Particularly I’m interested in sort of the the early part of the engagement cycle, if that’s the right. I’m kind of from the consulting world, so but the early on I would think that there’s quite a bit of information exchange and just kind of getting to know each other and speak to that that process a little bit if you could.

Dr. Phillip Hearn: [00:06:33] So I’ll give you two parts of that and I think you’re dead on with having that consulting background. So kudos to you. The early part of the engagement, any time you’re actually getting deeper into the deal. So let’s go all the way back to the beginning. The earliest part of the engagement is really just lead generation and understanding the data and the lead flow that you’re you’re trying to figure out. So what’s your criteria? Right? So we’re lucky to have some different experiences within my my leadership team on our end. So we kind of look a little wider in terms of the criteria piece. So when I say criteria, are you looking for deals that are cash flow or ibotta? How much are you looking for a specific purchase price? Are you looking for a specific vertical or industry? So that kind of starts the baseline and helps that search as you do your legion work, whether it’s email campaigns, direct mail campaigns, the whole nine yards, you’re really trying to understand that. So once you get a potential interested seller, let’s say, so we’re going to look at this on the buyer side. Then you start to dig into it’s a getting to know you stage, right? It’s kind of like dating stone.

Dr. Phillip Hearn: [00:07:36] If you’re early in the relationship, you’re everybody’s on their usually their best behavior. Right. But you’re trying to really understand what’s across the table from your what’s across the coffee shop from me or wherever your first date may lead. So you’re trying to get an understanding of what the business is. Right. Tell me more about the seller. Tell me, how did you get here? So very much like you did with me today, which is great. Let me understand why you’re looking at potentially selling. So all of the why type questions. What I’ve learned in this business is that you revert back to being a five year old, which is you ask a lot of why questions, right? Why are you looking to do this? Why is this the case? Why are you looking to retire and move on from this business? We hear that quite a bit lately. So you’re really just trying to get an understanding of the story. Why is this taking place? Why is this owner or this seller at that particular point? And then what are they looking to accomplish with the sale? So I think if you start there in the early stages, that starts a good baseline for the conversation.

Stone Payton: [00:08:34] I got to believe you must run into people on both sides of the equation. You must run into some myths or some preconceived notions, some misconceptions, just things that people think they know about the process and the arena that is just, you know, not not the way it is. Is that accurate?

Dr. Phillip Hearn: [00:08:55] That would be very accurate. Yeah. You said it better than I probably could. So yes.

Stone Payton: [00:09:01] Like, what are the what are some of the things they get confused about? Are they just they don’t they just they’ve got it wrong.

Dr. Phillip Hearn: [00:09:09] So I’ll give you one from each side as a buyer. Don’t think that the seller is necessarily trying to trick you. So one of the myths is, and you see this a lot in any size deal, but you see this a lot where you you take the information, you’re trying to understand the data. Right. So let’s say now you’re deeper into the process. You’ve written your letter of intent or your LOI. You have gone into the due diligence phases, so you’re working with your teams. So we’ve got a great, for instance, commercial fiscal, as well as legal team that helps us with those due diligence. And so as you’re finding information, you can take one or two tacks. I personally like to take the tack of, Hey, maybe this is something depending on the skill set and the experience of the seller that they maybe have never run into before. A lot of people will go, Well, wait, they’re trying to trick me. That means we need to just recast this deal. You start to throw the baby out with the bathwater when you do that right automatically. So being able to listen to the information or get the information, come back with salient questions. But nine times out of ten buyers, the seller is possibly not trying to trick you. You just may have to ask an additional set of questions to understand where they’re coming from. For the sellers themselves, it’s being realistic with the process. So the process is going to be chaotic, right? And you can preplan. So I’m a bit of a planner.

Dr. Phillip Hearn: [00:10:36] My friends would maybe call it something different, but we’re going to say the nice planning, we’re going to use planning as our baseline. So I like to have my checklist as a buyer or a seller, right? I want to have my checklist. I want to see how much of this stuff is applicable. Well, in some cases we’re dealing with sellers or you’re you yourself as a seller are maybe not experienced in selling your company. Maybe this is the first company you’ve ever had and this will be the last sale. So being understanding of maybe what’s being asked of you by the buyer is going to help matters because there’s there’s an honest fear, right the first time we do anything and I’m sure Stone you could tell us the same thing the first time we do anything, there’s going to be a little bit of fear, right? You call those guts, nerves, whatever. But there’s going to be a little bit of internal fear. So what you’re trying to do is find those ways to keep going forward while you know you’re walking a little bit in fear. Sometimes sellers are in that book. So Sellers understanding that it’s okay if you don’t know everything, hopefully you either have a trusted broker, a trusted intermediary, or you do your research to understand what you have in terms of the value and what you’re going out to do when it comes to the sales process. So a little bit for the buyer and seller in that particular book.

Stone Payton: [00:11:50] So on the on the seller side, there is helping that person go to market with their business and so often their baby. But how does the whole sales and marketing thing work for for you, for your practice? How do you attract the new clients?

Dr. Phillip Hearn: [00:12:07] Great question. So we I would say if we narrow it down to three major sections, if you will. So we create email marketing campaigns. Those are kind of that constant drip, right? So that gives us an opportunity to reach out to sellers, for instance, ones we know that are interested in selling, potentially ones that may not know they’re interested in selling, but they’re at least interested in hearing more. Right? So again, facilitating those conversations, I would love Stone to lie to your viewers and say, Oh, this happens overnight, right? Definitely does not. So some of that lead gen can take a little bit of time, right? So second, then you have your mail campaigns. So we like that too, because there might be some folks that go great. I have an email address almost because I have to. It’s important for me to get a piece of mail. I want to see it. I want to be able to call you. So mail and phone calls, it’s kind of our second direct bucket. Third, which sometimes can be the most fun and sometimes can be the most adventurous, would be through our leads and our our network, Right. So within our having leads or direct contact, someone saying, Hey, I hear you’re trying to buy a business. I’ve got someone that I hear is wanting to sell a business. Those direct connections are always beautiful. And again, every once in a while you can you can kind of choose your own adventure and kind of go down some rabbit holes based on what that seller is looking for. But it’s always great to know that people in your network are thinking about you to the point of you’ve told them exactly what you’re looking to do. Hey, we’re looking to purchase businesses. We kind of give them a criteria piece and then when they see it, they think of us before going elsewhere. So that’s always a plus when we get our network to do that. So I would say email campaigns, mail and phone call base campaigns, and then those beautiful word of mouth leads from your network.

Stone Payton: [00:13:54] Yeah. So let’s get a little bit tactical, if we could for a moment. And specifically, one of the things I wanted to ask you about was timeline and timing, because I I’m beginning to learn candidly from from hosting this series that it’s it takes a little longer than I would have anticipated. So so like, for instance, for example, you know, I own 40% of a pretty successful media company. If Lee and I felt like we wanted to achieve some sort of exit, I mean, this is not something that we start talking about in December and get done in. Q one probably, right?

Dr. Phillip Hearn: [00:14:33] Probably not. Yes. And unless you guys have all of your ducks already in a row, and if you’re a business owner like I am, that’s sometimes is not the case. So that’s okay.

Stone Payton: [00:14:44] But but you’ve got to there’s the ducks in a row, there’s the valuation, and then there’s just sometimes it takes a little while to get there, get it on the market properly and find the right buyer. Candidate. Yeah.

Dr. Phillip Hearn: [00:14:57] Yeah. So you just basically work through a process that could go, let’s be hopeful and say as short as 4 to 6 months, you could be looking at a year process. It’s I’ll give you maybe a quick correlation. It’s kind of like selling your house, but on steroids in the sense of, you know, what it may take to to get your house updated. Of course, there’s right times of season. Everybody always says spring, for instance. Right. But if you know, your market maybe is a little different than others. So there’s some intrinsic information that you have to understand. So I’ll give you a quick case in point. What I mean, part of this process, when you start to look at when you’re setting up the asking price, right, so you’re the seller and you say, hey, everybody always tells you, hey, I want $10 million and hand me $10 Million in cash as an example. I’ll leave tomorrow. Well, of course you would, because it’s $10 million in cash. But really trying to get to those valuation pieces. It’s interesting based on the time of year. So case in point, we’re now getting to the year end for 2022. So you’re going to have potentially pals, balance sheets, those types of things. So it becomes a little less of a projection than if you’re talking about this in April, May, June, July, Right. Or September. We’re still kind of on that projection schedule. But depending on how fast you file your taxes, like we look at tax returns as kind of the helpful portion. So when we talk to any of our investors, we can say, hey, we’ve seen a tax return, which kind of becomes the gospel, if you will, right? Chances are most people are not going to purposely lie on their tax return to to hurt themselves.

Dr. Phillip Hearn: [00:16:35] Right. So that B kind of becomes an ironclad piece. And so if you are just after that long projection window from, let’s say, April to September, October, and now you’re in this window where we are now into December to moving forward into tax season, how long is it going to take for your taxes? Right. So you can say, hey, we had the greatest year on record. Well, cool. Do you have your tax return? We’ll know. So there’s times of the year, right, that like kind of everything happens. And I also tell people this very quickly, think about real estate. You can get an appraisal in four different points in a year and depending on what the external environment dictates, that appraisal, maybe not 30 40% difference, but could be 5 to 10% difference as we’ve seen with the interest rate rise. Right. Same thing with your business depending on the time that you have everything together. Going out to market may be a little bit different. On what is a realistic asking price, meaning it will sell. Not saying you’ve got to give away the form, but it will sell at a quicker rate if everything else is in place versus something that sits on the market for longer. So little things to think about like that in the overarching process of either buying or selling a business.

Stone Payton: [00:17:43] Well, I’m glad I asked just to keep talking about me for a minute. It’s my favorite topic. I love it. But now I was thinking about me and Lee, like, let’s say we you know, I represented our company as pretty successful. Well, that’s you probably can’t put that on the on the contract so.

Dr. Phillip Hearn: [00:18:02] Well that actually be what part of be a goodwill right so see.

Stone Payton: [00:18:05] There you go. So we come to you and we think we got something around 10 million for example, since you use those numbers and then we get to talking and you know, you do your magic and you know, really realistically it’s it’s worth seven. But with your background and experience, if we come to you early enough, you can probably say, But you know what, guys, if you want to get it to where you where it really will be worth 10 million, here’s some things you can do over the next couple of years, right? I mean, you can you can help with some strategy and help us sort of think about things so that we are going to get the most for it. I’m thinking. Yeah.

Dr. Phillip Hearn: [00:18:41] Absolutely. And and I think that’s a very key component. So I’m glad you talked about you. So it’s worked out great. So this is a this we see this quite a bit, so let’s use that as the example. You think the business you and your partner think the business is worth $10 million and the current let’s let’s say fair market value, right, is $7 Million. But there are definitely ways and we do this quite a bit with some of our our contacts where we advise or consult on how to grow that company to a specific point or how can we help you grow to that point. There’s also strategic ways to structure the deal, right? So maybe we give you a chunk of that what you think is 10 million. We think it’s seven. But let’s try to figure out the gap of how do we fill in that gap from 7 to 10 million. That could be anything from earnout. So that could be anything from incentives, seller finance, There can be some ways to work it. So those are definitely sweeteners in the deal that allow. We like to work with business owners who, number one, are willing participants. So if we’re having this discussion and we’re talking to you and we’re saying, hey, the fair market value in terms of just straight cash or based on that kind of EBIT and multiple, everybody uses EBIT, right? So even the multiple here’s how we got to it.

Dr. Phillip Hearn: [00:19:59] Here’s what your fair market multiple is. Now we’ve got we’ve got a gap of $3 million. Some people could say, all right, you know what, I’m just going to walk away. We try to look at it and say, are you willing to be strategic to get to that 10 million? Maybe we can actually put more in your pocket depending on what we structure. So I think structure of the deal and negotiation skills is one of the main core components, I would say, of positively keeping a deal because the goal is we don’t need to fleece anybody to get a good deal, right. We can work with you. We can actually help you get to your end goal. And it may be in different ways. We may come on as as a consultant, we may come on as an advisor and have a piece of the equity. So now when you want to go back out to the marketplace and sell it for 10 million, maybe it’s actually worth 12 or 15, or maybe it is that ten and you’re comfortable with where you are. So there’s there’s some definitely different ways to attack different scenarios and strategies. But again, that’s the fun of understanding and and solving for those challenges.

Stone Payton: [00:20:58] Yeah, and you’ve probably seen other deals, participated in other deals that have similar components. And so you’re operating from an experience base that has that I think would be very helpful in those situations. I’m also learning that deal structure is not always, you know, here’s your check, here’s the keys. So like in that same scenario, you know, if they saw value in it, you know, Lee and I hanging out for a while or running a couple of the key studios for a while or I mean, you could you can build some of that stuff in there, too, right? Or financing? Absolutely.

Dr. Phillip Hearn: [00:21:28] Yeah, absolutely. So I’ll give you a quick quote from and I saw this this author so much in my marketing masters. His name was Stephen Covey. And one of my favorite quotes that I think about almost on a daily basis when doing this type of work acquisition, M&A type of work is begin with the end in mind. Why do I give you that quote? Well, if you go back to what we were talking about, when you’re in that getting to know you phase, asking one of the most simple questions to the seller is what do you want to accomplish? Right? So to some people, that means I’m going to you’re going to hand me a check, I’m going to jump in the money like. I’m Scrooge McDuck from Ducktales. Right. And I’m going to jet set to Europe. That’s it. That’s all I want to be done and done. Others will say, Look, I just don’t have the energy, let’s say, to run the business at the full capacity that it needs. But I still want to be involved because I still I see upside. I think I can help with that upside.

Dr. Phillip Hearn: [00:22:26] So those are two completely different and diverging paths, right? So asking those initial questions allows you then to come back and say, Hey, Stone, I know that you and your partner actually still want to be in the business, right? So we could try to give you all cash and then then you’ve got to worry about your taxable liabilities and all that fun stuff, right? And I’m not playing an accountant, but those are things that are there. If I hand you 10 million, how much do you all take home? Right. But how do how does this sound if we go down this route? Right. We still want you to be involved in the business. We may purchase X, Y, and Z of the equity, or we may come in and be a consultant and work to help you grow the equity in the business. All of those layers to it. But it’s asking those initial questions that seem early on might seem like throwaway questions, but they could be some of the most important questions in the process and actually get everybody to a winning solution on all sides.

Stone Payton: [00:23:20] You mentioned that you’re not playing accountant and that sort of touches on on another point, I bet you find yourself kind of quarterbacking sometimes a team of other trusted advisors who are experts in their domain to bring all this together, right?

Dr. Phillip Hearn: [00:23:36] Absolutely. So I get a chance to kind of go back to my sports day. So I played quarterback growing up in high school and then I also played point guard. So I get to either be Joe Montana or Magic Johnson in my brain, right? I get to facilitate, get people in the right spot. Let’s run the offense. Let’s do what we have to do. But all kidding aside, you’re exactly right. So case in point, as we talked about some of those trusted advisors before, so let’s say we’re buying or selling. We’re looking at those legal components, right? So we have a legal due diligence going on. We do commercial due diligence. We want to understand the background of the company. Are there any nefarious acts going on in the company, all those types of things, the financial due diligence, proof of cash, quality of earnings. So, so many people hear these terms. And it’s interesting because once you’re in the deal, it’s kind of like being in a playbook again, right? So again, I play football. If I’m running a deep pattern, my playbook might say nine pattern or not or fly or whatever. Same principles here you have subject matter experts that you can defer to and say, I understand X help me to understand how we can apply that to this scenario. Or hey, they come to you and say we’ve seen something similar, Here’s what we did. Do you think this will work for you? So having those subject matter experts, they are if you do it right, they are worth all of the money you pay them and then some. Right when you get into trouble is if you’re paying, let’s say, the wrong group, the wrong person, whatever. But if there’s as good as advertised and they do what they need to do, they’re worth every dollar for sure.

Stone Payton: [00:25:09] Well, and I’m thinking it’s worth it to me as a buyer or seller that you are helping identify the right person to to fill that role. You know, I don’t even I don’t even know that I would even know what questions to ask or how to go shop for the right type of person in a specific area to. So that seems like that would be incredibly powerful as well. So you have other irons in the fire, as my daddy would say. You also have quite a bit going on in the real estate arena. Can you speak to that briefly?

Dr. Phillip Hearn: [00:25:42] Yes, I can. So I actually started dabbling in real estate when I was 17, so almost 21 years ago now. I always called it the first deal that I did. I was about 19 or 20, somewhere around there. And I always call it the smartest, dumbest thing I ever did. When I started, it was smart because I got into the business. It was dumb because I was only good at putting holes in stuff. So for me, it it has been it has become, again, a passion play. So I like to do if you can’t tell, I like to do things that I really get into and can enjoy, right? And it’s been great because I’ve learned everything that I’ve learned in real estate. I’ve been able to translate to acquisition type work, right? So one of the things that you mentioned is those processes. So again, I’m a planner, so when my friends will call me, will say I’m a planner. So within that planning piece I see the similarities. So I’ve done anything from be a part of ground up construction projects with developers and general contractors to doing fix and flips on single and multifamily homes. I now have my broker’s license in real estate. I’ve had my salesperson’s license for years. And so it’s funny because there’s so many tools that you learn in putting a process together for a piece of real estate. If you’re doing, let’s say, a ground up, build the scheduling, the coordination. Everything else. It makes business acquisition almost easy based on that experience. So coordinating a maybe a ten person team to get a deal across the finish line and of course having to work with the seller or maybe the seller’s broker I think is almost as easier, scuse me, than working on a job site and you’ve got hundreds of contractors and you’re trying to build a 200 unit project. So there are some transferable experiences in my real estate life that I’ve been able to now use and always tweaking to make better. But I’ve been able to use that in my acquisition life. Now.

Stone Payton: [00:27:44] I’m not even sure this applies to you, but I’m going to ask it anyway because I’ve got to believe even you from time to time, you need to give yourself some space, hit the brakes, recharge, get inspired. So I’m kind of curious where you go. And I don’t necessarily mean a physical place, you know, I don’t know if it’s helping out a cause that’s dear to you or going to the mountains or how do you. Yeah, I guess that’s the right word. Kind of kind of recharge, get inspired to get back out there and do it again.

Dr. Phillip Hearn: [00:28:12] So that’s a great question. I do luckily find some time. I have friends of mine that ask me. They go, Do you sleep? So the first question is, yes, I sleep and when I go to sleep, I sleep like a baby. So thank goodness for that. So there’s a couple of things that I do to recharge. I love to stay active. So I try to get in workouts. Right now I’m at home and it’s freezing here so I can’t go out and play golf, which is another passion of mine. But I like to work out, play golf, just kind of get outside or get moving as much as I can. I love music, so if I get a chance to go to concerts or just even listening to music at home while I cook, something as simple as that helps. I am a bit of a movie dork, but I’m more of like a documentary guy. I’ll watch movies and I’ve got some favorites, of course, but but I like I like even tapping in on my time off of things that force me to kind of learn and stay sharp. So some days it’s golfing for me. And even within golfing it’s hacking or digging a hole into the earth. But that’s all right. But that’s fun. Working out is always a good thing. I can kind of let out some steam after an hour. Just trying to stay, stay consistent and stay moving. I do a bad job when I sit completely still. I don’t do that. Well, I don’t know why that’s the case. I’ve always been like that even as a kid. But staying active, staying kind of locked in on things that are interesting to me, I think always helps. So that allows me to recharge and refocus when it’s time to go back and quote unquote do work, because I don’t even feel like I’m doing work. I feel like I’m enjoying what I’m doing, whatever that is.

Stone Payton: [00:29:42] I can certainly tell that. But I do think it’s important. And it sounds like you agree that you do periodically. You need to give yourself that opportunity to sort of regroup and and circle around. Sounds like you’ve you found a way to do that. What a marvelous conversation. What is the best way for our listeners that they would like to reach out and learn more, have a conversation with you or someone on your team, begin to tap into your work. What’s the best way for them to connect with you guys?

Dr. Phillip Hearn: [00:30:10] Man Absolutely. So one way would be taking a look at our website which is mid American capital holdings within us dot com so mid American Capital Holdings dot com on the website you’ll have contact information for myself and my team shooting email over. You can use the email address of info at mid American capital holdings within us dot com. So info at mid American Capital Holdings dot com Ask questions we can set up some time, dig into different scenarios. So I love to consistently learn. I’m a bit of a dork when it comes to research and learning. So any time somebody wants to reach out and touch base more than happy to try to set some time on the calendar.

Stone Payton: [00:30:57] Well, Philip, it has been a real pleasure having you on the show this afternoon. Thank you for for sharing your insight, your perspective, your enthusiasm and your and your energy. Keep up the good work, man, and thank you for investing the time with us today.

Dr. Phillip Hearn: [00:31:12] Well, thank you, Stan. I appreciate being asked to be on and love the show. So this is something I’ve been looking forward to. So thank you so much for sharing your time.

Stone Payton: [00:31:21] My pleasure, man. All right. Until next time, this is Stone Payton for our guest today, Dr. Philip Hearn with Mid-American Capital Holdings and everyone here at the Business Radio X family saying we’ll see you again on Buy a Business near me.

 

Tagged With: Mid American Capital Holding

Student Leadership Johns Creek

December 20, 2022 by John Ray

North Fulton Business Radio
North Fulton Business Radio
Student Leadership Johns Creek
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Student Leadership Johns Creek

Student Leadership Johns Creek (North Fulton Business Radio, Episode 593)

Irene Sanders, Executive Director of Student Leadership Johns Creek, and SLJC members Lakshana Ramanan, Neha Gurram, Maggie Dowd, Katie Bernard, and Aria Smith joined host John Ray on this special episode of North Fulton Business Radio. They discussed local political debates led by students, last year’s project on Macedonia Cemetery, and this year’s project on the pandemic, “Same Storm, Different Boats,” which received a grant from the Library of Congress. The students shared why they’ve treasured their experience in Student Leadership Johns Creek, Irene talked about the organization’s ten-year anniversary, and much more.

North Fulton Business Radio is produced and broadcast by the North Fulton studio of Business RadioX® inside Renasant Bank in Alpharetta.

Student Leadership Johns Creek

Student Leadership Johns Creek was created in 2012 as a result of the success of Leadership Johns Creek. Student Leadership Johns Creek is a collaborative effort of our business and civic community to provide leadership training to our local youth.

Student Leadership Johns Creek in in their 10th year of service to Johns Creek student leaders.  The program begins in August each year with a one-day team training event and will conclude in April with an announcement of the upcoming class, celebration of the first year students and a graduation for the second year students who receive graduation cords (which they can wear at their respective schools graduation) and certificates of completion. Applications will be available to rising sophomores and juniors on December 1st.

Website | LinkedIn | Facebook | Instagram

Irene Sanders, Executive Director of Student Leadership Johns Creek

Irene Sanders, Executive Director of Student Leadership Johns Creek

Irene Sanders has always be actively involved in her community, as a parent volunteer for over 20 years, a community organizer, and now in her role as Executive Director of Student Leadership Johns Creek that encompasses the five high schools that serve Johns Creek students.

She has served on her neighborhood HOA board for over twelve years, and continues to serve as President. In this role, Irene has successfully synchronized efforts of over thirty-five neighborhoods to thwart a rezoning case that would have negatively affected the way of like in their particular character area. In this role she branded a grassroots effort called Johns Creek Citizens, this included a website, social media presence, communication effort, engaged media coverage and presented their case before the Johns Creek Planning Commission and City Council.

Currently she serves on the Johns Creek Planning Commission as co-chair. They meet monthly to listen to developers and residents state their cases regarding zoning matters that affect our city.

In short, Irene is a person who cares enough to roll up her sleeves and figure out a way to get the job done.

LinkedIn

Lakshana Ramanan, Student at FCS Innovation Academy

Lakshana Ramanan, Student at FCS Innovation Academy

Lakshana Ramana is a junior at FCS Innovation Academy. She is interested in going into the healthcare pathway to be a neurosurgeon.

LinkedIn

 

 

 

Neha Gurram, Student at Northview High School

Neha Gurram, Student at Northview High School

Neha Gurram is a Sophomore at Northview High School. Neha wants to study political science in college.

LinkedIn

 

 

 

Maggie Dowd, Student at Johns Creek High School

Maggie Dowd, Student at Johns Creek High School

Maggie Dowd is a junior at Johns Creek High School. She is interested in pursuing a legal career as a prosecutor.

 

 

 

 

Katie Bernard, Student at Northview High School

Katie Bernard, Student at Northview High School

Katie Bernard is a junior at Northview High School. She is interested in becoming an engineer.

 

 

 

 

Aria Smith, Student at Chattahoochee High School

Aria Smith, Student at Chattahoochee High School

Aria Smith is a senior at Chattahooche High School. She plans to study pre-med in college.

LinkedIn

 

 

 

Questions and Topics in this Interview

  • Debates led by students
  • Library of Congress Grant Project
  • Community Projects
  • Civic action of our Ambassadors
  • Macedonia Cemetery documentaries update
  • Adult program beginning
  • Expanding our program
  • 10 year anniversary

North Fulton Business Radio is hosted by John Ray and broadcast and produced from the North Fulton studio of Business RadioX® inside Renasant Bank in Alpharetta. You can find the full archive of shows by following this link. The show is available on all the major podcast apps, including Apple Podcasts, Spotify, Google, Amazon, iHeart Radio, Stitcher, TuneIn, and others.

RenasantBank

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

Since 2000, Office Angels® has been restoring joy to the life of small business owners, enabling them to focus on what they do best. At the same time, we honor and support at-home experts who wish to continue working on an as-needed basis. Not a temp firm or a placement service, Office Angels matches a business owner’s support needs with Angels who have the talent and experience necessary to handle work that is essential to creating and maintaining a successful small business. Need help with administrative tasks, bookkeeping, marketing, presentations, workshops, speaking engagements, and more? Visit us at https://officeangels.us/.

Tagged With: Aria Smith, Irene Sanders, John Ray, Katie Bernard, Lakshana Ramanan, Leadership, Library of Congress, Maggie Dowd, Neha Gurram, North Fulton Business Radio, Office Angels, renasant bank, student leaders, Student Leadership Johns Creek

How To Sell a Fitness Club for Maximum Value, with Jim Thomas, Fitness Management & Consulting

December 20, 2022 by John Ray

Fitness Management & Consulting
How to Sell a Business
How To Sell a Fitness Club for Maximum Value, with Jim Thomas, Fitness Management & Consulting
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FItness Management & Consulting

How To Sell a Fitness Club for Maximum Value, with Jim Thomas, Fitness Management & Consulting (How To Sell a Business Podcast, Episode 3)

Jim Thomas, Founder and President of Fitness Management & Consulting, joined host Ed Mysogland for a conversation about the fitness club and gym business. Jim owned and operated numerous gyms over his career and now serves current and future owners. He and Ed discussed business differentiators, customer retention, customer acquisition costs, improving the value of the business, what a club owner needs to do to prepare to sell, and much more.

How To Sell a Business Podcast is produced and broadcast by the North Fulton Studio of Business RadioX® in Atlanta.

Fitness Management & Consulting

Fitness Management & Consulting is focused on helping clients achieve success in a highly competitive business. Their services cater to both operators of single clubs and multi-club operations. Their scope covers all types of operations from full athletic clubs to small corporate fitness centers.

Fitness Management & Consulting offers flexibility in serving its clients to best serve their needs. They specialize in helping current owners and future owners of gyms, fitness centers, health clubs, and multi-purpose athletic clubs to find solutions for how to open a new gym, gym start-up, billing and collection, real estate site selection, and lease negotiation, broker services, fitness center sales, financing, consulting and troubleshooting, health club promotion, fitness center advertising, gym equipment, and flooring.

They welcome the opportunity to meet with current and potential club operators and investors to discuss how they may be of service to them.

Company website | Facebook | YouTube | LinkedIn

Jim Thomas, Founder and President, Fitness Management & Consulting

Jim Thomas, Founder and President, Fitness Management & Consulting

Jim Thomas is the well-known founder and president of Fitness Management USA, Inc., a management consulting and turnaround firm specializing in the fitness and health club industry. With over 25 years of experience owning, operating, and managing clubs of all sizes, Mr. Thomas lectures and delivers seminars and workshops across the country on the practical skills required to successfully build teamwork and market fitness programs and products.

Since forming Fitness Management, Mr. Thomas has been turning health clubs around at an amazing rate and garnering a reputation as a producer of change…a sharp-eyed troubleshooter, a brilliant sales trainer, and a motivator. Fitness Management provides programs that show measurable results and Jim’s team is proud of their ability to glean profit from every square foot of a client’s investment.

A dynamic, articulate motivator, Mr. Thomas exudes confidence without artifice and accomplishes wonders without the bruised feelings that can so often accompany change. “We pride ourselves in reaching people and motivating change in a way that encourages self-esteem on the part of the players.”

Whether you operate a health club, fitness center, gym, or other type club, Jim Thomas and Fitness Management have a program to fit your need, expand your market base, and keep your members and staff productive and enthusiastic.

LinkedIn

Ed Mysogland, Host of How To Sell a Business Podcast

Ed Mysogland, Host of “How To Sell a Business”

The How To Sell a Business Podcast combines 30 years of exit planning, valuation, and exit execution working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and what makes it salable. Most of the small business owner’s net worth is locked in the company; to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won’t be able to sell their companies because they don’t know what creates a saleable asset.

Ed interviews battle-tested experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business for maximum value.

How To Sell a Business Podcast is produced virtually from the North Fulton studio of Business RadioX® in Alpharetta.  The show can be found on all the major podcast apps and a full archive can be found here.

Ed is the Managing Partner of Indiana Business Advisors. He guides the development of the organization, its knowledge strategy, and the IBA initiative, which is to continue to be Indiana’s premier business brokerage by bringing investment-banker-caliber of transactional advisory services to small and mid-sized businesses. Over the last 29 years, Ed has been appraising and providing pre-sale consulting services for small and medium-size privately-held businesses as part of the brokerage process. He has worked with entrepreneurs of every pedigree and offers a unique insight into consulting with them toward a successful outcome.

Connect with Ed: LinkedIn | Twitter | Facebook

 

TRANSCRIPT

Intro: [00:00:00] Business owners likely will have only one shot to sell a business. Most don’t understand what drives value and how buyers look at a business. Until now. Welcome to the How to Sell a Business Podcast, where every week we talk to the subject matter experts, advisors, and those around the deal table about how to sell at maximum value. Every business will go to sell one day. It’s only a matter of when. We’re glad you’re here. The podcast starts now.

Ed Mysogland: [00:00:36] I’m your host, Ed Mysogland. I teach business owners how to value and identify and remove risks in their business, so one day they can sell their business at maximum value when they want, how they want, and to who they want.

Ed Mysogland: [00:00:51] You know, today is a special day. I’ve had no hiccups in all of my episodes with exception of one, my man, Jim Thomas of Fitness Management and Consulting. We recorded, and for whatever reason, he didn’t record. And what a gentleman to come back on the show and rerecord with me. And I am 100 percent certain that you are going to have just an unbelievable amount of value nuggets that he shares. So, Jim, welcome to the show again.

Jim Thomas: [00:01:27] Well, once again, I am thrilled to be here. Appreciate it.

Ed Mysogland: [00:01:31] Well, before the show started, I kind of gave an overview of you and what you’ve been into. But do you mind talking a little bit about Fitness Management and Consulting?

Jim Thomas: [00:01:40] Yeah, sure. Absolutely. And just in the big picture of things, one of the things that I think that really makes us unique and me unique in terms of the services provide, is, I’m a former gym owner. I owned eight of them, had four of them that I started from scratch, four of them that were acquired. And one of the unique things I tell folks all the time, you know, I’m qualified to go clean your bathroom and I can go at the same time do a review of your P&L statement and kind of everything in the middle, because that job of ownership is the folks out there listening that are in that role, boy, it changes moment by moment.

Ed Mysogland: [00:02:19] Well, it’s funny you say that, because in our practice, we talk more people out of business than into business. You know, when they realize, not only am I the CEO, but also head janitor, that changes the dynamics of don’t we pay somebody to do this? Well, yeah. But for every dollar you do, that’s a dollar out of your pocket. So, pick your poison. What would you prefer?

Jim Thomas: [00:02:44] That’s it. That’s it.

Ed Mysogland: [00:02:45] Right. So, my first question is how complicated the gym business is. I mean, it’s not just an assemblage of assets and build it and they will come. There are many silos, little profit centers all working together to make that gym profitable, or marketable, or however you choose. So, can you just tell me a little bit about the gym business and where do you find the profit.

Jim Thomas: [00:03:22] Okay. And so, you know, it’s interesting because folks that want to get into the business, there is a tendency a little bit to oversimplify this, that, if you build it, they will come mindset kind of hops in there. But in terms of profitability, I’ll give you some things that we look at here, particularly with something that’s new. And then, if it’s already existing, we have to work to kind of reach these numbers.

Jim Thomas: [00:03:47] But we want to be able to negotiate a lease that at maturity – I’ll call that a year – that lease represents on a monthly basis 15 percent of our revenue. We want to be controlling our payroll to the extent that that’s going to be at 40 percent. And so, this being a very fixed cost business, we keep our rent in line, negotiate it right – and that’s a challenge for some folks that have not done it. They need to get help – and then keep our payroll in line. Now, we’ve got to run and shot.

Jim Thomas: [00:04:23] You know, I get some of these that are turnaround situations and that rent at 40 percent or 50 percent, we can many times fix it, but there’s some challenges in there. So, you want to make sure you start off right.

Ed Mysogland: [00:04:36] So, with the rent, I’ve always thought that gyms are a destination location, so it’s not necessarily you need a lot of frontage. Is that true or not?

Jim Thomas: [00:04:48] You know, I would agree with that. You know, when we look at locations, the way I like to look at this, you’ve got an A location, which is that prime spot, prime street corner, all these great things, but you pay big money for it. What I’ve always liked, and what I suggest to many folks, is, let’s look at a B location. Maybe it’s pulling from that same demographic area, but because it’s a B location half mile down the road, maybe even a mile, the rent is substantially lower.

Jim Thomas: [00:05:18] Now, here’s the key, though, you have to be good at marketing. You have to be good at getting the word out. And if you’re good at that, that B location is perfect.

Ed Mysogland: [00:05:28] So, the radius that you’re talking about, if I remember right, it’s, like, three or four miles is where you’re pulling your constituents or your members. Is that right or not?

Jim Thomas: [00:05:44] Yeah. Yeah.

Ed Mysogland: [00:05:45] Okay. So – I’m sorry. Go ahead.

Jim Thomas: [00:05:47] What I was going to say there is, generally, it’s going to be about a 15 minute drive time, which is about a three mile radius. But here’s the thing for folks to think about when they’re doing this, the greater job that a gym owner does of creating differentiation, you know, providing a different product than what everybody else in the market is providing, this will expand that pull radius, you’ll pull further distance. So, there’s a lot of things we’re going to be thinking about here.

Ed Mysogland: [00:06:21] So, when you say that, though, the differentiators, are you talking different types of exercise? Like, you have your normal bodybuilder types that are just using free weights, machines, kettlebells. And then, you have CrossFit, you have Pilates. I mean, what other, I suppose, fitness silos are we talking about?

Jim Thomas: [00:06:53] Yeah. When you start looking at differentiation, I can use some things you see out there right now without kind of naming names necessarily. There’s products out there that’ll charge $10 a month. And you mention their name and everybody knows it’s $10 a month. And that’s a massive differentiation compared to most folks.

Jim Thomas: [00:07:16] You’ve got others, maybe they’re running a women’s only operation. That is a significant differentiation because there’s a lot of women that don’t want to be in that coed environment or won’t even go in given that. You’ve got some that are open 24/7, you can workout at 2:00 in the morning if you want to. And where you have hospitals or maybe auto manufacturers, those are some good places for those. Those are some more of the obvious points of differentiation.

Ed Mysogland: [00:07:48] So, I know one of the challenges that gym owners face is trying to create a community within the pool of members that everybody kind of gets along, and everybody is taking the same classes, and they go out for beers afterwards, and that kind of thing. How does an independent create that? I know CrossFit kind of has that vibe where you see the same people over and over again and we’re all in this together. But how do you make that inviting atmosphere, because that makes a sticky client, you know?

Jim Thomas: [00:08:37] Absolutely. It’s a fabulous question. Maybe the question of the day, because it gets back to attrition and how do you retain your customers. And what you’re looking for – you used this word – that sense of community. And in very simplistic terms, here’s what I would suggest that any club owner want to look at. Are you treating your members like they are consumers? Or is it a sense of community? Are we providing something, we’re doing it for free, we’re doing it to help, we’re doing it to benefit them, we’re a resource center to them? Or are they simply consumers?

Jim Thomas: [00:09:20] Because the big mistake that I see is we say we want a sense of community where we’re going to provide all this. But the reality is we’re really looking at them like they’re consumers. Now, that’s not to say we’re not going to sell them something. We’re going to have all that available. But there’s a big mindset shift right there in terms of how you view your customer.

Ed Mysogland: [00:09:42] Right. And one of the nuggets that you shared last time was the proactive manner in which you red flag your clients or your members that are perhaps flight risks and you do some outreach to retain them. So, can you circle back and talk a little bit about that?

Jim Thomas: [00:10:09] Yeah. So, in terms of retention and in keeping our members, you know, when a customer comes in – and I get asked this question a lot – “Hey Jim. What should you say when somebody wants to cancel?” Well, let’s try to not be in that situation, first of all. And so, what we suggest that any club does is, every day when you come in, you want to pull a member usage report.

Jim Thomas: [00:10:38] And depending on where you’re at – every club’s a little bit different – let’s just say, we’re going to identify being an inactive member as coming in four times or less the previous 30 days. And so, every day I’m pulling a memory usage report of folks that have been in four times or less, and I’m going to start making phone calls. And this is a brand new kind of CRM category. I’m going to call and I’m calling the idea to nurture, to help maintain interest, maintain desire, be a resource center, be a servant. Because the data tells us every interaction we have with that inactive member, they’re now 20 percent more likely to come back in. And it’s highly effective if we’ll do it.

Ed Mysogland: [00:11:25] Yeah. I was going to say, I’ll bet it is. Because if I got a call from my gym saying, “Hey, we haven’t seen you in a while, you may want to think about getting your butt back to the gym,” that’s certainly a differentiator. In all my years, I have not known anyone, any gym owner, to have that type of outreach. I mean, that’s not a regular thing, right?

Jim Thomas: [00:11:54] So many folks don’t do it. And I would say, you know, the lion’s share of the folks that I talk to, me coming in are not doing it. And it’s one of the things that we encourage because all the time and effort and money that goes to acquire a new customer to not have a similar system on the back end to save that customer is kind of crazy. Because, ultimately, what you’re trying to create is this member experience that keeps them wanting to stick around.

Ed Mysogland: [00:12:25] Well, you made mention of something I wanted to ask, the customer acquisition cost. I mean, and I know it probably varies between markets, but I mean what should it cost for you to acquire a customer?

Jim Thomas: [00:12:41] You know, it could be expensive if you’re not careful. And here’s what happens, most gyms, what they will do, they’ll set up, like, Google AdWords and maybe it’s a $300 budget. And now one of the problems you have sometimes is we’re not tracking that so we don’t know. And then, we’ll do some kind of a digital marketing program. And these digital campaigns, not including the actual advertising, they could cost you $1,000, $1,500 a month, and maybe you get 50 good leads, and maybe 25 of those you get to talk to, and maybe you sign up 12. So, it can get expensive if that’s all you’re doing.

Jim Thomas: [00:13:32] But, see, that’s where really you have to understand all the moving parts here because there’s a lot of things that are going to cost you little or nothing, member referral programs, former member programs that I call alumni. I’ll give you an interesting stat, Ed. There’s currently more former members in the U.S. than there are current members, and that’s not really pandemic related. It was that way before the pandemic. There’s just that much of a churn. But the beauty of it is, most folks will look at them and kind of ignore it, but that former member is like your number two source of new members behind referrals.

Ed Mysogland: [00:14:11] I had no idea.

Jim Thomas: [00:14:12] And so, you want to have both of this. You want to have – what I call – that boots on the ground, that guerilla marketing. And then, you want to have your paid marketing. You want to get that acquisition cost down.

Ed Mysogland: [00:14:22] Well, I’ll tell you, if a gym owner can calculate and identify where their customers are coming from and how much it costs to acquire them, I can tell you they’re miles ahead of the next guy because they’ll survive.

Jim Thomas: [00:14:37] You know what happens on that a little bit, is, on some of this, because we don’t understand the sales process, there’s a tendency to charge very little to get started. And maybe it’s just month to month, where it’s easy to kind of leave. And you could literally have situations, if you’re not careful, if you’re not monitoring this on all ends in how you’re doing it, is, you actually don’t make money until month number four in some cases.

Ed Mysogland: [00:15:10] Yeah, and that hurt.

Jim Thomas: [00:15:12] I got involved with the club one time. They were losing maybe 20,000 a month and they were doing big enrollments and they could not understand it. I went in and did the math on it. It turns out they were losing money upfront every time they sign somebody up. And we had to cut out certain things they were doing. Their dollar volume dropped, but the profit margin went up.

Ed Mysogland: [00:15:37] Yeah. And that’s funny, I was getting ready to ask you, because we fight that a lot, you know, I really don’t care about the top line. I really care about your bottom line. So, however you make your machine profitable and if it’s repeatable, pal, you’ve got a sellable business all day long.

Jim Thomas: [00:16:00] Yes, absolutely.

Ed Mysogland: [00:16:02] So, who are the typical buyers buying gyms these days?

Jim Thomas: [00:16:08] You know, we did one recently. It was a gentleman who was living in the Midwest. I think he was an insurance agent and he was freezing cold up there. And he bought a gym down in Florida.

Ed Mysogland: [00:16:22] So, it’s a lifestyle business. I mean, we view it as you have financial buyers that are basically replacing the ownership and they’re going to sleep, eat, and breathe it as a lifestyle. And then, you start moving into people that are looking at this as more of an investment. So, in your practice, I mean, what are you seeing more of, the guys that are looking to buy it as an investment and have somebody run it or somebody that’s kind of changing gears and moving more into a lifestyle?

Jim Thomas: [00:16:55] Yeah. Nine times out of ten, it’s someone who’s going to buy it and run it themselves. And, of course, we’ll help direct them a bit where you don’t want to get anchored to what you’re doing there. But more often than not, that’s really the buyer that we’re talking to.

Ed Mysogland: [00:17:12] I got it. So, with that type of buyer, and we spoke about it before – this is a layup for it – where are you finding those buyers?

Jim Thomas: [00:17:27] You know, many times they’ll find us in a sense, in terms of going to our websites, and hearing me speak, and hearing me talk, and existing operations. I’ll tell you what’s interesting, our broker division, how that originally got started. We’ve been doing it for quite some time. But how it originally got started was clients would say to me, “Hey, Jim. I think it’s time to sell.” And I wasn’t really involved in doing that at the time. And I said, “Well, yeah. We need to find you a broker if that’s what you want to do.” And they said, “Oh, no, no, no. Jim, we know you, we trust you, we want you to do it.”

Ed Mysogland: [00:18:04] Good for them.

Jim Thomas: [00:18:05] And that’s really how it led to that. So, existing clients, people that will search us out, they’ll find us. I mean, we do our own email marketing, social media marketing, things like that. We’ll get folks that, “Hey, Jim. I don’t know if you remember me, but we talked about two years ago.”

Ed Mysogland: [00:18:25] A hundred percent. I get the same. So, what’s the success ratio? I mean, for example, the industry average on all businesses is about a 20 to 25 percent success ratio to sell their business, which, to me, is absolutely dismal. And there can be a number of reasons why deals don’t go together, but I know size matters. The more sophistication, the more likelihood that the seller will withstand any kind of financial scrutiny in due diligence. But, I mean, what are you seeing as far as the likelihood of transitioning a gym?

Jim Thomas: [00:19:15] I think your numbers are pretty dead on. I find that at least half the gyms never sell.

Ed Mysogland: [00:19:23] Okay.

Jim Thomas: [00:19:25] They don’t even get off the launching pad. And in large part it’s because they’re overpriced. The owner has not valued it properly. They put value into blood, sweat, and tears, and they can’t come to grasp the reality it’s about cashflow.

Ed Mysogland: [00:19:44] Yeah. And, again, it’s across all industries. Valuation is always the challenge. I have been called the Grim Reaper of business valuation. And I get it, I mean, you don’t want to hear that perhaps what you’ve worked and sacrificed for is not as appealing as you might think to a third party. So, how are you coaching them to make more of a saleable business?

Jim Thomas: [00:20:22] Well, there’s a few things, and we actually just took on a recent client like this. They were looking to sell. They wanted to kind of get out. But we didn’t even really do a valuation. We could look at the numbers pretty quick and we could pretty well tell them this was not going to be a successful attempt at doing this. It was pretty significant.

Jim Thomas: [00:20:44] And we had a few conversations, and so what are we in the process of doing? We’re in the process of growing the sales. We’re in the process of growing the revenue. We’re in the process of training the staff. It depends on where you’re at financially, but we want to keep the gym looking as new today as the day that it opened. And so, if you’re short on funds, maybe we’ll put out some new carpet, we’ll paint some walls, we’ll do some different things.

Jim Thomas: [00:21:12] But we’re trying to bring this thing back up because if your sales are trending up and you’ve got good staff in place, I kind of jokingly tell folks, this is how you sell your business for more than it’s worth, because you’re trending up and there’s opportunity here. You know, you couldn’t even give the darn thing away if it’s losing money.

Ed Mysogland: [00:21:34] So, a lot of challenges that the business owner faces when you bring in like, “Hey, if you have the runway and you’re willing to give me a year or two years or whatever, I’m telling you, you can make another turn on your multiple.” So, I guess my question is, when someone hires you – and I know it depends on the scope of what you’re doing – how quickly can you start seeing a return on that investment? Because I know that’s probably real hard for, especially, gyms that are struggling. You know, it’s hard to take what they are making and plow it back into consulting. You know what I mean?

Jim Thomas: [00:22:25] Yeah. It’s an interesting question, because it’s not as difficult as you might think to start seeing results quickly. And there’s a couple of reasons for it. Number one is, a lot of these folks when the business is trending down, they’re not maybe doing everything they should or could be doing to make it work.

Jim Thomas: [00:22:48] And one of the common things that I’ll do in nearly every situation is, we’ll do an analysis of the existing assets, the website, how you answer the phone, your sales process, your referral process. These are things they’re already spending money on, so we’re not spending more money, we’re just doing a better job with what they already have. I mean, something as simple as putting Facebook Messenger on their website can get you a sale a day.

Ed Mysogland: [00:23:18] Yeah. I remember you saying that. I could not believe that that was the low lying fruit you’re talking about, that Facebook Messenger. I can totally see it, you know. I asked you, “What in the world is someone going to ask on Facebook Messenger?” And you’re like, “Well, that’s a real easy one. What are your hours? What’s the pricing structure? What’s the classes,” and so on and so forth. And once you said it, I totally understood it. But I’m with you. I think you’re right that there is a lot of opportunity with little to no expense outside of the consulting cost because you’re not adding layers. You’re just fixing what’s broke.

Jim Thomas: [00:24:14] That’s it. And there’s one simple secret to it. For these folks that we talk to, they have to be ready to make a change.

Ed Mysogland: [00:24:23] And that’s always —

Jim Thomas: [00:24:25] That’s the one simple key to it. If that’s in place, really, sky is the limit. And you can almost start having some results day one, believe it or not. Just because it’s simplistic kind of things. Things like getting a referral or maybe putting out a press release. Does the media even know you’re there? And none of these things is costing you.

Ed Mysogland: [00:24:49] No, that’s right. That’s – I don’t want to say a funny one, but that’s interesting that it can go that quick if you have – I don’t want to say if you just believe, but if you’re willing to buy in or give it 30, 60 days, you can recoup that cost associated with the consulting. I get it.

Ed Mysogland: [00:25:20] I don’t think I asked you last time, but what’s easier to run and operate, a coed gym or an all women gym?

Jim Thomas: [00:25:29] Oh, you know, from a process standpoint and everything you look at, they’re identical. I think the key is, where is your passion? I’ve owned both of them, actually. I’ve owned women only facilities —

Ed Mysogland: [00:25:41] That’s why I’m asking.

Jim Thomas: [00:25:42] … and I’ve had coed facilities. I found them no different. Now, I will say this, in the co-ed facility, your cost is a little higher because your equipment cost is higher, because you’re having to buy heavier equipment, because the guys are lifting some real heavy stuff, because the women aren’t really lifting at that level of weight training, and things like that.

Jim Thomas: [00:26:04] But, to me, they’re identical. I think it’s where your passion is and what you like. I’m personally a fan of the women’s only business. I’m a little surprised you don’t see more of it out there. I think it really would open up a marketplace to a lot of folks that are not currently attending facilities.

Ed Mysogland: [00:26:21] Well, I don’t know if it was in your neck of the woods, but we had Curves. They kind of evaporated. And I don’t know what happened to them. But I know that kind of was in your same bailiwick of that women-owned or businesses that are geared toward women would be successful. So, I don’t know what exactly happened.

Jim Thomas: [00:26:56] You know, it’s interesting on those guys – and I was never really involved with them. They were just south of where I’m at here a little bit – in large part, a lot of that growth on that type of operation, it came in these communities that were maybe under 200,000 people where it was easy to get a low rent, it was easy to advertise, easy to market. And a lot of those places, you know, 100 members, maybe 200 members in it worked. And as they started hitting, “Okay. We’re kind of full. We need to expand.” And now all of a sudden we’re going to go into Los Angeles and Dallas and Atlanta, the rents were much higher. You had much more competition. And it didn’t lend itself to who their customer was at franchisor. That wasn’t who it was.

Ed Mysogland: [00:27:44] I get it. Well, since I brought up the franchise, we talked men and coeds, so franchise versus independent – I don’t want to say which is better, but, I mean, in your consulting, what are you seeing as the superior? Is there that much difference, I guess, is where I’m going.

Jim Thomas: [00:28:07] Well, I try to actually compete against those franchises. Actually, that’s part of my marketing, no franchise fees, no long term contracts, no royalties. Because bring a consultant on just pay for what you need and you stay in control of your business. Whereas, the franchise are going to dictate a little bit to you.

Jim Thomas: [00:28:29] So, now, we worked with a lot of franchises, but the folks that come to me, by and large, they want to maintain control. And they’ll just say, “Hey, Jim. Teach me how to do it and I’ll go out there and do it.” They’re all good. And one of the things, if you’re doing something really big, the franchises are nice because SBA likes those kind of things because they’ve got that kind of seal of approval that it’s a proven system on it.

Ed Mysogland: [00:28:54] Yeah. But, again, it’s back to the system. You know what I mean? I don’t mean to imply that it’s not complex, but after you get the system, what’s left other than just add gas or revenue, it just seems that – you know, I don’t want to say I don’t see the value. I just don’t see the long term value.

Jim Thomas: [00:29:28] Yeah. I mean, it’s like anything that you’re doing, everything has to evolve. I mean, everything is going to change. When I was building them to what they are now, heck, I can look at my consulting business and what it is today and what it was ten years ago. I mean, it’s night and day difference. You know, the business has to evolve, but it can’t just be membership revenue. Whatever those other ancillary sources are going to be, personal training, supplementation, retail, your whole online component, there’s really no shortage of growth.

Jim Thomas: [00:30:03] And just kind of Business 101, you know, the three things you look at is, we have to acquire more members, more clients, make more sales, we have to get more money per customer, and we have to get them to buy more often. What amounts to everybody in our marketplace has to know who we are. And if we don’t do that, we’re going to struggle. But when everyone knows who we are, what a great competitive advantage.

Ed Mysogland: [00:30:29] Sure.

Jim Thomas: [00:30:30] And, now, you’re dominating. And that’s what you’re trying to do. You’re not trying to compete.

Ed Mysogland: [00:30:35] You know, it’s funny, my wife was talking about what appeals to her at a gym. And the funny thing is that her and her little group, it’s about the cleanliness of the facility. Not necessarily the hours. I mean, it’s nice that they have equipment and this, that, and the other. But it’s the cleanliness. Is this a dump to go into the bathrooms? Which, to me, is another – I don’t want to say low lying fruit, but the funny thing is, if you look at Google Reviews or some of the other review sites, one of the primary complaints you see has to do with cleanliness and hygiene and things like that. So, I think that’s another area to consider low lying fruit. You know what I mean?

Jim Thomas: [00:31:33] You know, it’s interesting when we’re opening new facilities, probably 80 percent of your finish out dollars to finish that new facility, 80 percent of it is going to go into your front desk reception area and into your locker rooms. And from a selling perspective, we want that front desk to have that wow factor when they walk in because that’s what’s going to grab them.

Jim Thomas: [00:32:00] But to your point on cleanliness, that locker room, it needs to be pristine. It needs to be as clean as what you have at home. Because that locker room, from a cleanliness standpoint, is one of the number one things that’s going to affect your member attrition.

Ed Mysogland: [00:32:16] Yeah. I mean, it totally makes sense. You know, you pay attention when it’s not clean and you don’t give any thought to it when it is.

Ed Mysogland: [00:32:30] Well, switching gears, we’ve got some businesses that just aren’t going to make it. And some of it is self-inflicted, some of it is competition. So, how does a business owner wind down the business and make as much as they can on the way out, knowing that perhaps there’s a personal guarantee on that lease, perhaps there’s some leases on the equipment. You know, I don’t want to eat cheese, but I want another trap. How do I do that?

Jim Thomas: [00:33:15] You know, we’ve used these strategies. We used them heavily during the pandemic for existing operators. And I want to answer this a couple of different ways, because the rub there a little bit is that personal guarantee on that lease. Now, some of this will depend on that relationship we have with the landlord, whether you filed bankruptcy or not. There are some things in there that can have some effect on that.

Jim Thomas: [00:33:42] But with that said, we’ve had a lot of situations where we’ve helped club owners unwind. They’re getting out of the lease and they’re simply, “Hey, I’m just going to go ahead and shut it down.”

Jim Thomas: [00:33:54] Well, here’s the reality. Number one, they can and should sell that member base to a local club. And it’s really a simple process. It’s a three way agreement between the two owners and whoever the building company is. It’s a pretty simple process. And for the club that’s acquiring it, it can be done for no money out of pocket. And so, you want to sell that. But there’s other assets that you have. You might have some equipment. If it’s not on a lease, you might have some equipment.

Jim Thomas: [00:34:24] But what you have also, you’ve got website URLs that likely have some SEO attached to them. Someone’s following that. Point those to yours. One of the great ones that I’ve always loved is, “Hey, we want the phone number. We’re going to point that phone number over to our place. We want member lists, renewal lists, guest lists, former member lists. We want all that. We want social media. We want your YouTube channel.” There’s value in all this. And there’s so much of a tendency because they don’t know how to do it just to walk away from all that.

Ed Mysogland: [00:34:58] But I’m the business owner, I’m like, “All right. I follow all that. These are a great list. How do I value that?” I’m not a fan of rules of thumb at all, but I’m putting myself in the shoes of the business owner and I’m like, “All right. Jim, that’s great. But, you know, what’s my website worth? What’s that URL?”

Jim Thomas: [00:35:30] And usually URLs, phone numbers, member lists, that’s going to push the multiple up or down. And so, for example – let me grab a calculator here – let’s just say, I’ve got a facility and I’ve got $20,000 a month coming in, in recurring fees. Generally speaking, I want to just take that times three, and that’s the value of that, $60,000.

Ed Mysogland: [00:36:03] And how you allocate – I’m sorry.

Jim Thomas: [00:36:06] And then, we’ll work the deal right now. However, I did it on a multiple of three. But you know what? If I’ve got a good URL, if I can get their phone number, if there’s some good reviews out there that I can grab on, Google my business or I can grab member list, maybe I take out multiple to four, maybe I take it to five. Maybe there’s some good personnel that might come along with it. Maybe there’s personal training that might come along with it. This will all do that, but I would start it at three.

Ed Mysogland: [00:36:36] I got three.

Jim Thomas: [00:36:37] And then, kind of go up or down depending on circumstances.

Ed Mysogland: [00:36:41] All right. So, that addresses the goodwill and the intangible assets. Or does that include the equipment that’s in the facility?

Jim Thomas: [00:36:56] Yeah. That would generally include everything. At least that’s where we would start. For the most part, used fitness equipment does not have significant value.

Ed Mysogland: [00:37:07] That’s where I was going with it, because I’m certain some of the people are like, “Yeah. I don’t need another Smith machine in the facility. But I am interested in your customers and guest lists and the intangibles.” So, that three multiple really could be just for the intangible assets. And then, if you’re picking up equipment, it can go up higher.

Ed Mysogland: [00:37:40] I think I’m putting words in your mouth and let me back that up a little bit, because you said the three typically includes equipment, and I get it. So, I’m sorry about that. I didn’t mean to [inaudible].

Jim Thomas: [00:37:56] It varies. I mean, over the years, you know, I don’t know if any one deal has ever been the same. They’re all a little bit different. So, it just depends on circumstances. There are some folks that they just can’t wait to cut the deals. They can get the heck out of the room. And there’s others that, “No. We need to figure this out.”

Ed Mysogland: [00:38:15] I get you. So, one of the things that struck me in one of our original conversations was that you were doing deals, financing and sourcing. So, that’s a different animal. I mean, from the lenders that I’ve worked with, I don’t want to say that they aren’t stoked about getting a gym on the banks portfolio. But that takes a real special bank or special lender to get their arms around what all is going on, especially when you’re talking about the recurring revenue and the attrition of members. I mean, there’s some risk to the bank. So, can you talk a little bit about that financing and structuring and how are you doing it?

Jim Thomas: [00:39:01] Yeah. Let me give you the two ways that we do it, we look at it from a new gym startup and then from an existing operation. And so, from a new gym startup, it’s simply personal financing. As long as they have a credit score of 680 or better in all three bureaus, and as long as they have a minimum income of 50,000 per year – and there’s going to be some other underlying things, but those are the key criteria – they can get funding for up to $400,000 to start a new business. And for the lion’s share of new businesses being started in the fitness industry, that’s more than enough. They may only need half that. So, that works.

Jim Thomas: [00:39:44] Now, for existing operations, of course, they have to improve their business. But the way that works – it’s a simple process – is we need to see the most recent 90-day bank statements. And it’s simply, “Hey, what’s the differential in there between the revenue that’s coming in and what the expenses are? And can you afford a new payment? What would that payment look like?” And – gosh – they could get funding for up to $2 million if that spread was big enough.

Jim Thomas: [00:40:15] And so, it’s not necessarily the industry. It’s more just about we want to see history of revenue. The longer the history, the better.” And we want to see that it’s working for you.

Ed Mysogland: [00:40:27] So, if I’m buying a gym, what’s my down stroke? Is there a percentage or no?

Jim Thomas: [00:40:33] Well, not necessarily if you can finance it all out. Say, I’m going to go buy something and I’m not in business, and so I’m going to go get a personal loan and I’ve got a place over here and I can buy it for $300,000. And I go out here and I qualify for 300,000, I buy it and I make my payments back, and everybody’s happy.

Ed Mysogland: [00:40:53] So, you can do it without any equity out of your own pocket?

Jim Thomas: [00:41:00] You can. You can.

Ed Mysogland: [00:41:02] And so, this isn’t falling under the SBA. This is just sources that you have. Yes?

Jim Thomas: [00:41:07] Yeah, that’s it. That’s it. The challenge is, SBA is a great source, but sometimes it can take a long time and there’s a lot of paperwork. And we’re looking for short time and not much paperwork.

Ed Mysogland: [00:41:19] Aren’t we all? What is the turnaround time? So, I submit, you know, here’s my purchase agreement. Here’s three years of tax returns. You’re going to run my credit. Now, what happens?

Jim Thomas: [00:41:31] Oh, if you’re buying a brand new deal and everything really checks out, I need to see your FICO scores – the higher the better, by the way – and I’ve got U.S. tax returns, you could probably be funded within a week.

Ed Mysogland: [00:41:46] Really? Because in my world, time kills all deals. Well, you know that. You’re in the same –

Jim Thomas: [00:41:53] Time kills deals, absolutely. It’s one of the all time great truisms.

Ed Mysogland: [00:41:58] All right. So, you can do no money down, assuming you have a great credit score, and it would take a week to fund.

Jim Thomas: [00:42:10] And here’s the thing, too, anyone who’s looking to sell, say, you have someone who wants to buy and, say, they’re struggling doing that, they don’t have the credit score, then they can’t qualify, so you’ve got a problem. But for a forward thinking seller, maybe do some kind of a down payment, do some owner financing, and then maybe a balloon in six months. Give that buyer a chance to get his credit score up and come back in here and take you out.

Ed Mysogland: [00:42:38] Oh, that’s a good idea. So, what I heard you say is, go ahead and do the deal. So, basically, you’re talking about refinancing them out for doing the deal. I guess if I’m a seller, though, I’m sitting here going, “Boy, you know, what’s going to induce this guy to refinance?” I guess you could structure it as painful as possible.

Jim Thomas: [00:43:10] Yeah, it’s a balloon. I mean, balloon in six months, you got to refinance. But (A) if you’ve got a good buyer, circumstances can’t do it. But here’s a couple of things that we suggest here, (A) Whoever your billing company is – this is to get another one of those three way [00:43:29] agreements – [00:43:30]say, that new owner is going to make you a payment every month of, let’s just say, it’s four grand a month, we’re going to have the billing company send it directly to you at the beginning of the month.

Ed Mysogland: [00:43:40] I got it.

Jim Thomas: [00:43:41] We’re not going to have it pass through the new buyer. It’s going to go straight to you so you make sure that you get it. Plus, we want to see that new owner’s P&L statements every single month until they refinance us and take me out.

Ed Mysogland: [00:43:55] Nice. Yeah.

Jim Thomas: [00:43:56] So, we’re going to stay on it. Because if I did have to take it over – which, hopefully, that didn’t happen – at least we know where we’re at and we can go in there and put our foot on the accelerator and make this thing work.

Ed Mysogland: [00:44:07] So, are you doing a lot of deals as far as the financing side?

Jim Thomas: [00:44:13] Oh, gosh. With financing deals, it’s a regular thing.

Ed Mysogland: [00:44:17] And anybody can use you or do you have to be a consulting client?

Jim Thomas: [00:44:24] No. Anybody as long as they have U.S. credit scores and U.S. tax returns. That’s the thing. And, you know, just to tease a little bit, we’ve got some more stuff coming up. So, maybe if you and I talk down the road, we’ve got even some bigger news coming up on some of this financing.

Ed Mysogland: [00:44:40] Awesome. Well, I’ll tell you what, some of the alternative financing sources are going to make a small fortune especially if the economy turns on us.

Jim Thomas: [00:44:52] You bet. And I tell you, one of the challenges, you know, it’s interesting when I talk to people about this, because most of them, they’ve been looking around trying to do things and they just can’t understand it, can’t figure it out. And just when they engage with with me or somebody like me, that can really simplify it, here’s exactly how it works, they can get that trust in there. It can happen so quick and so easily for folks and they don’t have to really be fretting over it.

Ed Mysogland: [00:45:21] Yeah. Well, I look forward to seeing what else is up your sleeve because, you know, you’ve been a leader in this industry for so many years. And if you do any kind of research, your name just keeps on coming up. So, I look forward to it.

Jim Thomas: [00:45:40] You bet.

Ed Mysogland: [00:45:41] All right. So, not only have I made you record twice, I’m going to ask you the same question that we concluded with the last time and see if it changed. So, I conclude every interview with what’s the one piece of advice that you could give listeners that would have the most immediate impact on their business? What would it be?

Jim Thomas: [00:46:04] The number one problem that I see in the fitness industry is a failure to properly understand and implement sales and marketing. And nothing else is even close. Coming up right behind is that issue of retention, but we can’t retain them if we don’t get them. So, sales and marketing is the biggest problem across the board.

Ed Mysogland: [00:46:30] Okay. So, what is the best way people can find you? I mean, I can tell you, as a guy that found you, I can assure you it is pretty easy to find you. You’re at the top in pretty much all the searches.

Jim Thomas: [00:46:45] Yeah. You Google Fitness Management and Consulting, Jim Thomas, you should find us. But go to our website, fmconsulting.net and there’s a host of information, a lot of free information there for you to help you grow your business.

Ed Mysogland: [00:47:01] Yeah. And you have a really robust YouTube channel. And we’ll have all of this in the show notes. So, don’t worry about if you were unable to take notes, it’ll be there. And, Jim, boy, times two, I appreciate so much of your time. And as always, it was awesome. Great value nuggets.

Jim Thomas: [00:47:27] You bet. I appreciate being here and I look forward to doing it again sometime.

Ed Mysogland: [00:47:32] Well, this time I think we recorded. So, we’ll do it in a few months. We’ll do a follow up when the new financing packages come out.

Jim Thomas: [00:47:42] Oh, I’ll keep you posted. We’re day-to-day on getting that done.

Ed Mysogland: [00:47:45] All rightm buddy. I look forward to it. Thanks so much, Jim.

Jim Thomas: [00:47:48] Thank you. I appreciate it.

Outro: [00:47:50] Thank you for joining us today on the How to Sell Your Business Podcast. If you want more episodes packed with strategies to help sell your business for the maximum value, visit howtosellabusinesspodcast.com for tips and best practices to make your exit life changing. Better yet, subscribe now so you never miss future episodes. This program is copyrighted by Myso Inc. All rights reserved.

 

Tagged With: Ed Mysogland, fitness center sales, fitness centers, Fitness Management & Consulting, gym equipment, gym management, gyms, health club promotion, health clubs, How to Sell a Business, How to Sell a Business Podcast, JIm Thomas

Your Past Doesn’t Dictate Your Future E39

December 19, 2022 by Karen

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Phoenix Business Radio
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Your Past Doesn’t Dictate Your Future E39

What a treat! We skipped over the pleasantries and interview-style questions and dove straight into real talk! This episode of Collaborative Connections Radio Show and Podcast was chock full of advice, lessons learned, motivational quotes, mindset tips, and inspiring stories.

Host, Kelly Lorenzen, was honored to be in the studio with this powerhouse panel of successful women CEOs! Jessica Herbert with IDEA Analytics, Lisa Rehurek with The RFP Success Company, and Sarah Hope with Vertical Identity Background Screening & Drug Testing joined Kelly on-air.

One of these women used to be in law enforcement and now has a doctorate, one is a child of immigrant parents who now owns multi-million dollar businesses, and one is an author, speaker, and has trained organizations such as ASU and SRP. Can you guess who is who? Check out this episode to find out! RFP-SUCCESS-COMPANYOrange-Converted

The RFP Success Company is an RFP strategy & support consultancy that focuses on helping mid-market businesses win more state, county, local and higher education bids. They focus on overall bid strategy and provide hands-on fractional RFP response support.

The RFP Success Company team knows winning responses aren’t just about checking boxes and filing the right paperwork: you have to capture the evaluators’ attention by telling a great story, too!

The RFP Success Company helps businesses create the kind of responses that capture the right attention and emotional connection, while building trust. Known for their enthusiasm, extensive RFP expertise and countless client successes, the RFP Success team drives your RFP responses forward so you can win more contracts.

Lisa-Rehurek-Phoenix-Business-RadioSpunky, fun, and full of energy- dynamic speaker, trainer, author and owner of The RFP Success Company, Lisa Rehurek shakes up the status quo.

She brings fun and a bit of real-world funk to the often-boring topic of responding to RFPs. Her 26+ years of business knowledge shines right alongside her down to earth, “get it done” approach.

Obsessed with strategies, systems, and simplicity, Lisa seeks to transform the most overwhelming processes into simple, attainable steps that get you & your team moving forward, faster.

Lisa has trained and consulted international organizations such as Salt River Project, Arizona State University, Mercer, Kronos, Myers & Stauffer, UC Davis, Hilton, SkillPath & more.

Connect with Lisa on LinkedIn and follow RFP on Facebook and Twitter.

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Vertical Identity provides comprehensive screening services such as background checks, education verification, employment verification, drug screenings, physicals, driver qualification file maintenance, and motor vehicle record checks.

From managing your random drug free workplace testing to running a monthly monitoring criminal search let Vertical Identity help you plan, prepare and implement your background screening and drug testing policy. Consistent screening helps reduce risk in pre and post hiring needs.

Sarah-Hope-Phoenix-Business-RadioSarah Hope is a Serial Entrepreneur and Visionary behind Vertical Identity, and 911OccMed.

Sarah is a child of immigrant parents from Cuba. She grew up cleaning houses, and mowing lawns with her parents to make ends meet.

Today, she runs two multi-million dollar businesses, in Phoenix Arizona, and spends her summers in beautiful Alaska with her husband Jason.

Connect with Sarah on LinkedIn.

IDEA Analytics provides strategic advising and analytical services for local governments, public safety and nonprofits that are interested in data-informed change. Comprised of researchers and data scientists, IDEA works with communities focused on solving complex social challenges by leveraging technology, people, and leadership. IAHorizontalLogoNoTag

They have worked in 34 states and over 80 cities on topics like gun violence, human trafficking, crime reduction strategies, economic development and workforce, and programs for youth and adults. IDEA works closely with clients to enhance the capacity of services and resources for sustainable, smart approaches for the next generation.

Jessica-Herbert-Phoenix-Business-RadioDr. Jessica Herbert (she/her/hers), Founder/CEO of IDEA Analytics, brings over 20 years of experience in policing, research, and data science to lead clients through transformational projects.

As the leader of IDEA Analytics, Jessica believes the best path for change and transformation includes meaningful collaboration with stakeholders. She implements these values throughout IDEA’s four-phased approach to help organizations Identify their current and desired objectives, Develop sustainable changes and responses, Educate staff and community on new approaches, and Assess progress toward organizational goals.

Jessica’s career has spanned government, public, and private industry. She began her path as a law enforcement officer in Fairfax County (VA) where her analytical and investigative skills supported multi-year investigations for the Northern Virginia Violent Crime and Firearm Taskforce, a collaboration among Fairfax County Sheriff’s Office, Fairfax Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), United States Secret Service (USSS), and the Federal Bureau of Investigation (FBI).

In this capacity, Jessica supported interstate and international investigations regarding firearm, human, and drug trafficking, money laundering, and other complex crimes. Upon leaving public service, Jessica leveraged her investigative skills with private industry on cybersecurity threats within financial, energy, and manufacturing industries, resulting in protections against domestic assets and intellectual property.

During this time, she also held a teaching position with George Mason University (GMU) Criminology, Law and Society Department on topics of Homeland Security, Intelligence Analysis, and Policing. She also sponsored GMU’s student-led Intelligence Community Group, developing events to engage with Central Intelligence Agency (CIA) and Department of Defense (DoD) leaders for intelligence simulations and exercises.

In focusing most recently on domestic policing topics, Jessica applies her leadership, expertise, and advisement to public safety officials on matters of data-driven or intelligence-led policing, problem solving, program strategies, and organizational change. Her expertise has been leveraged within national crime reduction initiatives such as the Office of Justice Programs’ (OJP) Diagnostic Center, the Bureau of Justice Assistance’s (BJA) Violent Reduction Network(VRN)/National Public Safety Partnership (PSP), Crime Analysis on Demand and Technology Initiatives, and Project Safe Neighborhood (PSN).

In addition, Jessica works with the Office for Victims of Crime (OVC) Human Trafficking Capacity Building Center and Field-generated Human Trafficking Training and Technical Assistance programs, and with Office of Juvenile Justice and Delinquency Program’s (OJJDP) juvenile justice reform efforts to coordinate with victim service providers, nonprofits, and community-based organizations. Her multi-system and collaborative work approaches resulted in sustainable, long-term strategies to support organizational shifts and enhance data-driven responses to community needs.

Jessica’s individualized and pragmatic approach to every project has earned her awards and commendations from local government leaders, United States Attorney’s Office, the ATF, and community members. These successes are informed by her past work in over 80 cities, focusing on strategic decision making for local governments of all sizes. Jessica’s ability to help clients quickly assess and articulate their needs and develop a path through implementation has made her a sought-after strategic partner.

Dr. Herbert holds double bachelor’s degrees of Administration of Justice and Sociology from George Mason University, a Master of Arts in Global Security Studies from Johns Hopkins University and her Doctorate in Criminology and Criminal Justice from Arizona State University. She has several professional certifications in topics of design learning, data science, and other technical skills.

Her research interests focus on organizational behaviors and capacity building for public safety and communities to support change, which she is always excited to talk about with others. When not traveling around the US and other countries, Jessica lives in the Valley of the Sun (Phoenix, Arizona) where she supports the small business community, enjoys hiking, meditation, and the cultures of the SouthWest.

Follow IDEA Analytics on LinkedIn.

About Collaborative Connections

Kelly Lorenzen started the “Collaborative Connections” show to bring her clients and favorite charities together to meet each other, connect and collaborate in life and business.collaborative-connections-Radio-Show-Podcast-logo1

She hopes to build a stronger community one show at a time.

About Our Sponsor

KLM is a one-stop support shop for small business owners who are starting, growing, or trying to sustain. Our purpose is to foster the growth and prosperity of small businesses in our community.

Entrepreneurs & small business owners come to KLM for support in all areas of business. KLM clients think of us as a concierge, business snuggy, another arm, or duplicate for the business owner; They call us when they need us. Business owners can continue to do what they love while having the support they need when they need it.klm-logo-small

About Your Host

Kelly-Lorenzen-on-Phoenix-Business-RadioXKelly Lorenzen, CEO of KLM, is an award-winning entrepreneur with over 15 years of business-ownership experience. She is also a certified project management professional.

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Josh Bagby with Providence Insurance

December 7, 2022 by angishields

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Cherokee Business Radio
Josh Bagby with Providence Insurance
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Josh-Bagby-Providence-Insurance-bwJosh Bagby is a broker with Providence Insurance Advisors and owner of The Bagby Agency, Inc. He and his agency provide the ability to offer multiple insurance carriers to serve you and your family.

He is also the creator of Cherokee Connect, a collaborative Facebook Group to connect the residents of Cherokee County to local business and their community.

Connect with Josh on LinkedIn.

This transcript is machine transcribed by Sonix

TRANSCRIPT

Intro: Coming to you live from the Business RadioX studio in Woodstock, Georgia. This is fearless formula with Sharon Cline.

Sharon Cline: And welcome to a Fearless Formula Friday. This is Sharon Cline with Fearless Formula on Business RadioX, where we talk about the ups and downs in the business world and offer words of wisdom for business success. Today in the studio is a broker with Providence Insurance Advisors, but he’s also the founder or creator of the very popular Cherokee Connect Facebook group.

Josh Bagby: I don’t know what that is.

Sharon Cline: I know. Are you founder creator inside? This is Josh Bagby. Welcome to the show.

Josh Bagby: Appreciate you having me.

Sharon Cline: Do you call yourself a circus person?

Josh Bagby: Some days that’s what it feels like.

Sharon Cline: I was going to ask you a little bit about that. Like what? First of all, I just looked it up. 60 over 63,000 people are part of this group, Cherokee Connect.

Josh Bagby: In three years.

Sharon Cline: Three years. I was thinking it it started in 2000, 19, right before the pandemic.

Josh Bagby: And a presidential election year. That was that was a good decision on my part. Didn’t know about the pandemic, didn’t know about the election. I did know about the election. But that part was actually pretty smooth. But yeah, it was it was weird how the pandemic kind of brought the community together. I think that really did help the growth of it for sure. You had a lot of people that were at home and freaking out, to be honest, and they didn’t know who to ask or what to do. None of us did. And so it was kind of a I feel like it did kind of bond the group there early on to like we were all in it together and everything else and kind of figuring it out as we went.

Sharon Cline: So your main reason for starting it is because you had a lot of people moving into town and looking for people to help them with various things in this.

Josh Bagby: County, right? With insurance I would do they’d call me for home insurance and they’d be like, Man, hey, you know, I’m buying this house, but I hate the light fixtures. I need them swapped out. Who do you know? And hey, here’s my personal handyman or, Hey, you know, I need new tires.

Sharon Cline: Just randomly, people asking you because you’re you’re the insurance person, right?

Josh Bagby: Gotcha. Random. I grew up here for the most part, And so it was they and I would offer it up like, hey, if you need anything, let me know. Really let me know. I don’t mind giving it to you. And so I was like, okay, let’s just put our whole my whole network in a group. Facebook was kind of pushing groups at the time and I was like, Well, that makes sense. We’ll just ask somebody ask I’ll add them here, and they kind of introduce them to my network instead of copying them on an email to them or something like that. And by the end of that week it was 2500 people. And then by the end of the month it was 5000 and it just took off. So it was it feels fills a need and hopefully it still does. It has grown beyond what I ever thought it would be, but it is. There’s still a lot of people I get even the ball ground parades tonight and there’s people, Hey, I’m new to town. Where do you park? Where do you sit? You know, that kind of stuff. So it’s neat to kind of bring people along and kind of speed up how fast this place can feel like home to them. And it’s a beautiful community. It’s an awesome community, and they are very welcoming. And I mean, I’m not originally from here. I was nine years old when I moved here, so I’m pretty I’m from here now, but it welcomed me in and it’s still welcoming people in. So it’s fun to get to see that happen on a daily basis.

Sharon Cline: Do you feel like you can ever shut shut that down for yourself? Like are you always sort of on because it’s a 24 seven accessible, almost like PR thing?

Josh Bagby: Yes. I try not to look at it like that, but yeah, every morning when I wake up and I open my phone, I wonder what happened. You know, most of the time it’s pretty that we’ve never really had anything crazy happen overnight. But it it is a weird feeling at the, you know, when we get done with however long here, I’m going to look at my phone and see if anything blew up while we were talking.

Sharon Cline: What kind of things are you finding that blow up? Like, what are the main things?

Josh Bagby: Everything gets political. Random things that you would not think would get political, get political, and just trying to kind of not squash it. But, you know, things don’t always have to be political. That’s not the way things are meant. And you’ll get random, very benign posts that go crazy just because somebody decided to take it down a path that it was not intended to go. But that’s it. You can’t put your finger on any one thing because it’s so many random things that pop up.

Sharon Cline: Is anything have you sort of gotten an idea of what it’s what humans are like because of this? Do you know what I mean? Like the themes of people?

Josh Bagby: Yes. I just talk about the theme.

Sharon Cline: Good themes and maybe, you know, themes that are like the happiest.

Josh Bagby: There’s a lot of people that probably shouldn’t have a driver’s license.

Sharon Cline: If I’m seeing those posts, I hope they’re not about me.

Josh Bagby: You wonder. But I mean, they’re your friends and neighbors and they need help too. But it is you get some stuff where you’re like, Man, this is okay, I get it now. And there’s different strokes for different folks. And there’s a lot of that, too. It’s a very diverse group from all walks of life and all different. You got doctors and you got, you know, people that are struggling. And it’s just it’s it’s a great little cross section of and at that size, it’s it’s a very good cross-section of what our community looks like. So, yes, it is kind of fun to to joke about it. But there there is some crazy stuff every day.

Sharon Cline: But everywhere. Yes, I was on Nextdoor recently and was like, oh, my goodness, someone just talked about they talked about their trash cans or like a trash service. And it did become very political very fast. And I was like, I don’t want to see this. But then I did. Like I went back and looked.

Josh Bagby: Right, Yeah, you can’t look away.

Sharon Cline: I was like, How bad did it get? Oh, it got bad. Yeah.

Josh Bagby: Oh, and for every, every one of those posts that we have, like there will be this time of the year with it, I have noticed it’s kind of cyclical. Things get tight with people with money and they’re stressed because they’re having to visit their families and all that kind of thing. You know, it’s just a bunch of different stressors. And so it does get a little testy. And I did like an audit. Every now and then I’ll do an audit like, is this worth doing still? Like, does this make sense to keep doing? Is it more beneficial than it is harmful than anything? And every time I do it, it is like I’ll go through and I’ll look at 2030 posts just to see how it’s going. And there will be one that has has gone off the rails. I’m like that. That far outweighs what it is. And unfortunately the the back and forth and the tension of it is encouraged by the algorithm.

Sharon Cline: So really?

Josh Bagby: Oh, yeah, interesting.

Sharon Cline: I did not know that.

Josh Bagby: It has gotten better recently, but there for a while. Any kind of argument that was going on, it it would feed it and that’s crazy. Yeah, I wish it went true, but it’s it’s for sure.

Sharon Cline: Well, I’m kind of like trying to absorb. Well, you wouldn’t think that the notion of of drama would be something that everyone wants to see and you would want it to be furthered. It’s something like you said you would want to kind of squash, but how fascinating that that’s not even something you control.

Josh Bagby: It keeps you on Facebook looking at ads.

Sharon Cline: Uh, I’m sure I’ve been manipulated many times by that. Don’t even. I don’t even know it. I’m just like, oh, my.

Josh Bagby: Gosh, Like you said, you don’t want to look away. And that’s what it is. It keeps you.

Sharon Cline: There. Interesting. Well, has there been anything that’s just been the most surprising to you about sort of having started this this group?

Josh Bagby: I knew what kind of community we had.

Sharon Cline: I noticed, too, I looked a little bit well, I didn’t cyberstalking you too hard, but a little bit of history on you that you went to Cherokee High School. You’ve been in this county since, what, you were nine? I guess so. So essentially, you’ve been here and know very well this whole city. So you weren’t surprised by kind of what you were potentially getting into, I guess.

Josh Bagby: I’m the ever optimist. So like, I had really high hopes for it. And I still do. Like, it’s and again it again maybe I’m looking at it with rose colored glasses, but the majority of what goes on in there is is really cool. And but yeah, I knew it would do well and I knew what my personal network how they would treat people and how they would take care of people. And then I have been pleasantly surprised with how caring and encouraging the vast majority of the people in their.

Sharon Cline: And kind.

Josh Bagby: And they are. And I mean, some of the stuff in there. I mean, I’ll make you cry. Like there’s people that will screenshot it. One lady in particular, every time she makes sure that I see the good stuff because it’s oftentimes I just get brought in to handle the bad stuff and you don’t and the good stuff just passes and I’ll look and see. It was one a lady she thinks she donated a quilt that her that right that her great aunt it was all Goodwill’s casket. She thought she’d donate it to Goodwill. We got people that work at Goodwill tagged in there. We got people on the lookout like and there’s, you know, 2000 likes on it, you know, and it’s just like that. I didn’t even know it happened until I had 2000 likes and. The those like that. That’s what makes it worth it. And all the crazy lost dog posts, there’s dogs getting found. There was one guy called me one time. He was like, I didn’t even know my dog was out. I didn’t know my dog was missing. And I’m scrolling and I see my dog on Facebook and I go pick it up two miles down the road. I was like, This is crazy.

Sharon Cline: So I saw one about this woman who was walking in a park and she lost her wedding ring. And I swear the community, it came together. There were so many people out there looking for this ring. For her. It was so kind.

Josh Bagby: There was a dog that went missing and they had search parties, people coming from other states that they had put together in there. There’s a you know, there’s always car shows and fundraisers and stuff like that for and that that is what it’s for. You know, we try to let some people get upset when we decline stuff that’s critical of a business or critical of something. And it’s like, well, that’s not like there’s plenty of other avenues. Like you get a lot of negativity all over the place in your life and just let’s try our best to keep this as positive if we can. It’s not perfect, but you know, it’s worth trying.

Sharon Cline: Do you feel like you know so many people now or do you think people know you?

Josh Bagby: That’s a funny it’s a it’s kind of a running joke in my office because it’s it is kind of funny because, like, and before I’ve lived here long enough. Did I go to school with like you said, I went to six elementary, I went to Teasley Middle School and went to Cherokee, went off to college, came back, grew up going to church or playing ball. And so now in my brain’s not as sharp as it once was. And so I’m like, how do I know this person? Are they a client or, you know, like, how do I know them? And the other running joke is I will put my face on anything on a icebox, billboard or whatever I have come. I’ve stopped short of putting it on t shirts or something. But then, you know, who knows? But so like people, they’ll recognize me and they’ll recognize my name and my profile pictures on the Facebook group. It’s in my email signature, so they’ll recognize me before I ever recognize them. So until they tell me their name, I don’t know. Some people just won’t tell you their name. They get kind of shy talking to you. So yeah, there are I got I got paparazzi at a few times. Seriously, Once.

Sharon Cline: Was like at a.

Josh Bagby: Restaurant or last night. Yeah. What happened? This is so funny. Uh, I’ll leave the names and everything out, but there was a teen girl that I’ll show it to you because it cracked me up. And the.

Sharon Cline: Paparazzi.

Josh Bagby: The ladies in my office think it is just absolutely hilarious when this happens. Yeah, there I am In the back corner. Back there.

Sharon Cline: You’re just standing there.

Josh Bagby: Yeah. And so the mom, she texted it and sent it to her mom. And her mom and I have messaged on Facebook, she’s like, You’re going to think this is hilarious. And she sent it to me. So, yeah, I mean, that part is funny, but it you know, I don’t know why. Like, you try to I don’t want anybody to ever think I’m arrogant with it or that I think I am like a big deal because it’s not like it’s it I try to push all that back on the community like, oh, man, this thing is so great or whatever. I’m like, That’s not me. Like, it’s I hit the button to start the group and the community was going to find a way to come together regardless. And you just kind of had to be a little circumspect. You’re the kind of.

Sharon Cline: You’re the catalyst of it or an impetus for.

Josh Bagby: It. Oh, a catalyst. Just I hit the button, you know, like it just started and there it was.

Sharon Cline: So you’ve helped other counties, is that right, to create their own groups? What is that like to encourage or to teach someone or explain it?

Josh Bagby: It makes you thankful for where we’re at because there’s one in Hattiesburg, Mississippi, and he’s a great dude, very similar to who I am and everything. A lot of the same. Reasons for starting the group and Hattiesburg is just not the same as and Woodstock. So like the community doesn’t buy in. It’s not as engaged. It’s not as. Is loving for one. And now I’m not in that one a whole lot and it just kind of help him but it just doesn’t doesn’t feel the same. We had one that tried to start in kind of North Fulton and it just didn’t didn’t take off for whatever reason. Same kind of stuff. It just doesn’t I don’t know. That’s why I think Jerky Connect works, because it’s in Cherokee County for for whatever reason.

Sharon Cline: Oh, it makes me feel really proud of us.

Josh Bagby: Yeah. No, I mean, and I say it all the time and it feels. Like, I don’t know. I don’t want anybody to overthink it. I think it can sound fake when I say it, but it’s like it really is a special place. Well, if.

Sharon Cline: You do not compare it to other counties, you don’t know, you don’t.

Josh Bagby: Know you’re normal or if you’ve never lived anywhere else. And you know, I haven’t lived anywhere else very long. And I lived in Statesboro and my freshman year in Athens from there on. And that’s really it. But it’s not the same. And people that move here, like even you’ll see it like, man, I have never been in a community like this. And again, for all the negative and bad rap that we get, there’s so much good about this place.

Sharon Cline: It’s heartwarming.

Josh Bagby: It is.

Sharon Cline: You think about it. Well, actually, I love I love that you talk about kind of how you have this part of your life, Cherokee connect and that you feel like you’re out there a lot, but a lot of it has to do with your work. So they kind of are they’re not exactly married, but they have to do with each other.

Josh Bagby: I do.

Sharon Cline: Yeah. Right. So what’s great is that your work has allowed you to be able to get to know so many people and help so many people. So let’s talk about what you do as a broker at Providence Insurance.

Josh Bagby: So we, uh, I’m in year 13 of being an insurance agent. Had no intentions of being an insurance agent, and nobody ever wants to. I’m a washed up former athlete and that is an insurance is a great fallback career for when you don’t make the NFL and I was nowhere close so that’s I saw.

Sharon Cline: The I heard that you played for the Bulldogs.

Josh Bagby: I did you know it was a little it was.

Sharon Cline: Very you know, you played with Tim Tebow.

Josh Bagby: I played a game.

Sharon Cline: Against Tim Tebow.

Josh Bagby: Sorry, smoked button. But I spoke at a little elementary school one time and that came up. Did you ever play it in the kids wearing like a Gators jersey? I was like, Yeah, I play against Florida Gators. I was like, Yeah. He’s like, Do you shake hands with Tim Tebow? I was like, Yeah, actually I did after the game. And he comes up after he shook his hand, he’s like, I’m never watching this game. And I was like, I’m not that big a deal. He goes, No, but you should games with Tim Tebow. I was like, Cool, man. Go for it. He’s probably fifth grade, but how cute it was. But yeah the yeah. So got into insurance right out of college opened an agency had no business running a business at all.

Sharon Cline: So you know that something we talk about on the show all the time is how people don’t have everything planned out, all of the potential mistakes, anything that they just have a dream and they kind of figure it out almost backwards. Here’s what I want. So let me let me get go backwards to be able to get what I want, if that makes sense.

Josh Bagby: Yes. The I was just looking to make some money and well, and but but the timing of it. So I graduated from Georgia in May of 2009 and I was a finance major.

Sharon Cline: That was when.

Josh Bagby: I was planning on I was planning on getting into banking.

Sharon Cline: So as you say, that’s the time when the housing market was terrible.

Josh Bagby: It was terrible. There was one job per 75 college graduates. So that’s how I got into insurance, because it’s commission. And if you can sell, you can make money, if.

Sharon Cline: Not always need.

Josh Bagby: And oh well that’s well, people and I have realized that now and then kind of with the economy the way it appears to be going right now and people like man, you worried, I’m like, no, not really. Because I mean, you have to have it. And as long as we have a better price or better coverage or whatever, then we’re okay. But yes, I got into it. No business. The one thing that made me halfway decent at anything I’ve ever done in my life is a work ethic and just a just a grinder. I have never not once Little League any anything ever been the best athlete on the field ever. And it’s like, I’m probably not the best agent, but it’s like I’m going to try really hard and I’m going to put the work in. And most of the time, if you do that, you’re going to outlast the competition. And people like in sports, they’re not going to take, you know, they’re not going to cut you as long as you do it right and you take care of what you’re supposed to take care of. No, keep your warm bodies that halfway know.

Sharon Cline: What they do. Show up.

Josh Bagby: That’s it. You show up and you’re consistent and that’s and you can be trusted. And that’s what’s weird was when I did get to play at Georgia, you know, I asked my coach when I was leaving my running backs coach, I was like, why did you give me a chance? And he goes, I just I looked in your eyes. I knew I could trust you. I was like.

Sharon Cline: Well, that’s something you don’t forget.

Josh Bagby: No. The rest of your life. Yeah. I mean, actually, still, it’s been 15 years ago, and it still gives me chills. Um, I don’t know. I’ve never told anybody that, but it. It is. And so that kind of with this career, that’s the biggest thing. Like, if you can trust me with your assets and, and taking care of your family and all that kind of stuff, and then I’m going to work for you. And here we are just kind of marriage perfectly together. So and there’s a little competition aspect of it, even within our own office. So that kind of feeds that part.

Sharon Cline: That’s part of that sports, too, right?

Josh Bagby: Yeah. And it took me a long time for that to kick in. And now that I’m realized that my sports days are long behind me, I’m like, okay, this is the only way I’m ever going to compete going forward.

Sharon Cline: So do you have kids?

Josh Bagby: Yes. Yeah, I’ve got a five and a seven year old.

Sharon Cline: Is there like a boy? Does he want to play or if you have a son?

Josh Bagby: Yep. Seven year old boy. And he. Mhm. He does and he doesn’t and people like, Oh yeah, he’s in football. I’m like no I don’t know.

Sharon Cline: I wonder about that. You know when you have these dreams, like you said, it’s just kind of was on the back burner after a while. But wouldn’t it be reignited so easily, you know, if your child were in it.

Josh Bagby: I try not for I don’t want to be that guy that’s living through my kids like it’s I want him to do his own thing. And football’s great football opened a lot of doors for me. A lot. But his personality is a little bit different than mine. I’m a team sports kind of guy and he’s he seems to be more of like an individual sports kind of guy, which is fine. And maybe I was at six, seven years old. I have no idea. But from the outside looking in, that’s what it is. So like golf and tennis and stuff that he he is very critical of himself and very kind of his own own worst critic. And so that would probably lend better to something like that versus trying to take that out on a team now that my job is to coach him into being a team guy and not being critical of your teammates. So that’s my challenge going forward. But yeah, so he wants to do that. And my daughter is into dance and she’s she’s very laid back and it’s funny how polar opposite they are, but it’s it’s fun to I mean, they’re best friends and that’s why we had them close together. They’re 18 months apart. So it is it’s fun.

Sharon Cline: I appreciate that you kind of look at and you probably do this with every person that you meet with in your business to what what their strengths are, you know, and kind of play up to their strengths.

Josh Bagby: Well, and that I’m one of the people that I don’t think like yeah there’s some stuff that you’re bad at and but there’s a lot of stuff that you’re really good at. So let’s just use what you’re really good at and get better at that because that’s going to be what sets you apart. And then we can supplement what you’re not so good at because if you’re a D sales person or a D server, like you’re never going to be in a you can’t climb that far to take you your whole life and your personality is just not wired for that. So let’s highlight this. A If it’s a minus, let’s get to an A-plus and then let’s get your D to a C and hire somebody to help you or get a technology to help you a software. And so there’s there’s ways that piece together. We’re now the whole organization looks better. The whole team looks better because you’re you’re really good in these certain areas and then we’ll backfill it to to make you good at all the rest of it.

Sharon Cline: I love that because it really doesn’t put unrealistic expectations on anyone.

Josh Bagby: Well, and people enjoy what they’re good at. Like you want them to enjoy where they’re working. You want them to enjoy what they’re doing. So like, why would I make you like for me, when we got into CrossFit for a while, I hate burpees. Burpees to me are the worst thing.

Sharon Cline: You’re anything but. Yeah, no, they’re terrible.

Josh Bagby: Worst thing. And it’s like, yeah, you do some burpees get better. I’m like, You’re not. You know what I hate?

Sharon Cline: For me, I’m.

Josh Bagby: Really good at power cleans. I’m just going to get really good at power cleans and I’m gonna scrap burpees all together and only do them when I absolutely have to. Like, why would I force myself to do something I hate? Why would I force somebody at work to do something that they hate doing? They’re going to be passionate about what they’re good at, and that’s going to show to the client and liking stuff.

Sharon Cline: So interesting. Well, let’s talk a little bit about what you do with Providence Insurance Advisors. So it’s not just homeowner’s insurance and car insurance. It’s lots of other aspects. Correct.

Josh Bagby: So there’s a lot of layers to that. So we again, I’m not great at everything. I’m pretty good at Auto and Home Insurance because that’s what I kind of grew up on. The company I came from that was what our kind of bread and butter was, had some life insurance. So, you know, I know how to do live insurance. I’m good at it. Not great. So I have a higher life insurance specialist, happens to be my father in law. He’s been in insurance for 35 years now and we feed live insurance leads to him. Commercial insurance. It’s great. It’s where I kind of want my career to go.

Sharon Cline: I was going to ask you, like, what are your dreams for the future? So that’s where you would like to build it.

Josh Bagby: That’s where yeah, just like you said, you enjoy talking to business people like that. I enjoy that part of it too. It’s fun. I enjoyed team building and all that and kind of brand building and that you feel like you can kind of help people do that with their insurance. But so I hired a commercial specialist. I know enough about it to do it. Probably not going to be the greatest at it until I learn from somebody that’s been doing it. So she’s been doing it 20, 25 years now. At this point, I can learn from her and then by the time she’s ready to retire or whatever, then I’ll have figured it out by then and do that. Customer service piece of it. Pretty good at that. I enjoy taking care of people, so we’ve got that. But then you have people too. I have two customer service reps that are phenomenal at picking up the phone and loving on you on the phone. And then, you know, I’m like, what? Cherokee Connect, I’m putting out fires. And that’s that’s kind of what I’m doing now with The Office, which is, which is fine. That’s comes with the territory.

Sharon Cline: But yeah, I was thinking about this. So I did a story. I produced a story that involved the Cherokee, the Kent Police Department, and we talked about how what it’s like to to in like sort of interact with people under an extremely stressful situation. So normally they’re not just all calm and happy. It’s a ticket, it’s a it’s a domestic, it’s whatever. So it’s the same for you where you’re finding that you’re interacting with people under extremely stressful situations.

Josh Bagby: I wouldn’t call it extremely stressful most of the time, like even in a claim situation like it now, I have I had people call me right after an accident. Yes. You know, knock on wood, have yet to have a house fire in 13 years. But like that kind of thing, Nothing super major like we’re we’re the last. But you’re going to call 911 those people.

Sharon Cline: Are going to do. Got you. By that time you’re they’re ready to talk to you and kind.

Josh Bagby: Of I guess kind of chilled out a little bit. So now it’s just the just the random. Stuff that doesn’t flow the way that you would want it to. And so you just kind of figured out how to get it back on track and make it flow the way the way that it’s a good experience for everybody.

Sharon Cline: You reframe it for them.

Josh Bagby: You do, yeah. And explain it. And you know, a lot of the communication is key in so many things. And if you can just communicate it and you’re real and you don’t. Bs people and sugarcoat it. And you just kind of tell them like, Hey, look, yeah, no, that’s probably not a good idea. Or Yeah, hey, we screwed up. Like, you know what?

Sharon Cline: You admit those.

Josh Bagby: Things. Absolutely. And we’ll fix it. Like, if we screw up, 100% will admit it, fix it. Going down the road and the people. What’s crazy is that’s so rare, like you said, that, like, you will admit that that’s so rare that people cry if they appreciate you telling them that you screwed up.

Sharon Cline: But I feel like there is a BS meter people have.

Josh Bagby: They do.

Sharon Cline: Yeah. And I feel like if you don’t set that off, like if you are being genuine, I honestly think it comes across. Do you find that to be the case?

Josh Bagby: Oh yeah. People will read it. Yeah. Yeah, they.

Sharon Cline: Especially when you’re talking money and, you know, I don’t know, it’s so stressful. The whole thing of it is stressful, I think.

Josh Bagby: And it’s just do the right thing and it always comes back around. That’s one of the things the agency I was with before we had one carrier, and if it didn’t look right or I didn’t think we were the best fit for you, I send you on down the road, I’d give you a number for somebody else that had like a broker that has more options and then those people end up coming back to you, or they’ll refer you people that and you get more swings at being able to help those people. Like it’s just it always comes back around. And that’s kind of going back to the group. There are a lot of people in there. They’re giving free advice, you know, legal advice, a painting advice like just random stuff. And it always those are the ones that end up getting business out of the group are the ones that are encouraging and helpful and not just, you know, BS and you with sales stuff all the time.

Sharon Cline: So you’ve been in this industry 13 years, you said. So if you could go back to yourself 13 years ago, what would you have wanted to know before you got started?

Josh Bagby: You couldn’t have known it.

Sharon Cline: That’s a terrible answer, but probably the most real answer, actually.

Josh Bagby: I mean, I you know, I came out of school. I had taken in an insurance class. I had you know, you get your licenses, you go to school like the company school and all that. You know, I had a business degree and I was like, man, yeah, I can run a business.

Sharon Cline: You went to school for it.

Josh Bagby: You’re ready, right? Yeah. Like, here we go. And, you know, 22 years old and you have no clue how to run a business like none. And the age that really even matter. Like, if you haven’t ever done that before, there’s no way you know it until you do it. So and even on the insurance side, like, there was a lot of stuff that the company I was with was on Central Time. And so they closed an hour later. So I would stop answering the phone at five and I would blow them up with every question I could possibly do. So like, that’s the only way to learn it. My opinion is you just have to do it. You just have to take your reps and figure it out as you go. But now there’s nothing. I have no regrets on that at all. On how that whole thing went. It was drinking water out of a fire hose for six months and that’s it. I went back to school and got my MBA thinking I just needed it. And looking at that like, Man, you get an MBA in that first year of running a business. Like, that’s not that you have mastered business, but you, you know more than a lot of people that.

Sharon Cline: I think this is just so important, that notion that you do not have to have yourself completely set and ready in order to be able to follow a dream of.

Josh Bagby: Yours, you’re never going to be ready, ever. Like it’s like having kids. People want to wait to have kids until they’re financially stable or they think they have it all down it out. You will never be. It took me a long time to figure that out. I had my little plan in my head, my watching, like, well, you know, like, I think it was just go for it. Okay. Best decision we could ever make so that, yeah, you’re never going to be ready. If you have an idea, do your due diligence. Don’t get me wrong. Don’t just willy nilly go about it. But there’s a time where you will be. And having just launched this business a year and a half ago, the second agency in Providence. Yeah, I wasn’t ready for that. It drug out probably six months longer than it should have for me to launch it. And some of that was not my own doing, but and you just get it as ready as you possibly can and hit the ground and you’ll figure it out.

Sharon Cline: So you have some mentors you had mentioned. You’ve got someone that’s on the commercial side that’s kind of teaching you. So what? Who are some other mentors in your life?

Josh Bagby: My father One was a big one from the insurance standpoint. The you know, I had great parents and, you know, made me who I am and then off to college and come back. And then they moved back to Chattanooga to help my grandparents and everything and kind of on the family farm. And then my father in law was who got me into insurance and really coached me along like I would have left, probably would have gotten out a long time ago had it not been, you know, to kind of quell some frustration with what was going on. Like you think one way and then you would get the corporate side of why things work like that. And I think it’s made me better to do now when I’m talking to other carriers, like I understand what they’re looking for and I understand what we’re looking for in our frustrations. And it helps me convey that to my staff now. So like it’s he’s been huge in that aspect. Again, he was with an injured 34, 35, worked for the same company for 34 years and now he’s with us. So it is he’s he’s probably the biggest one. They lived down the street from us. We’ve got a ton in common and it’s my brother in law in him and my mother in law takes great care of us and everything. So it’s it’s a cool little. I married into a great family.

Sharon Cline: You’re lucky.

Josh Bagby: I am. Absolutely. That’s a blessing. Absolutely. It’s great to have built in babysitters down the street.

Sharon Cline: Yeah, you can go on date night down in some really great Woodstock restaurants.

Josh Bagby: That’s it. We live in downtown ball grounds. Oh, dear. We will do. We’ll walk up there, drop the kids at the in-laws and just keep walking up the main street. And it it’s a cool, cool town background. It’s a great.

Sharon Cline: Spot. It’s growing so.

Josh Bagby: Much. Yes. And I’m hoping it holds on to the small town USA vibe. And it’s done a good job of it so far. And. Yeah, I don’t. I don’t.

Sharon Cline: Know. I know. It’s interesting. It’s like I see so many things that are being graded, you know, for new subdivisions and things. And part of me is a little sad, but part of me knows this is normal and it’s the way it’s supposed to be. But it’s funny, I can’t quite make peace in my heart with growth, even though where I am, you know, needed to be built. So I can’t complain.

Josh Bagby: Right. And that’s another tricky connect things like people move here and they move here. They’re not from here and they’re here for like four or five years and they complain about the growth and it’s like, well, you know, people complained about you and you got here too. Like, it’s kind of it’s kind of cyclical hypocrite. I right it’s, you know, ball ground and even Woodstock Woodstock’s got a personality to it and that’s just what you want. You don’t want it to be a.

Sharon Cline: Big, big, big city.

Josh Bagby: Yeah, just too, too big. And there’s not enough. And I think going back to the business owner aspect, I think the business owners are what create that culture and knowing the people’s name, knowing the regulars names that come in there and you know, the coffee shop and ball me and they walk in and they know you and your chit chat and, and there’s a group of eight guys in the morning that are there every Friday morning, you know, like that. That kind of stuff’s what makes it what makes it tick.

Sharon Cline: So for your business, what do you do for sales and marketing? Like what do you how do you handle that? I’ve seen your face on a billboard. I just recently saw it and was like, Oh, I’m interviewing him.

Josh Bagby: What’s funny is. I don’t know. Something about that one billboard is it works. I’ve had billboards on 575 before, and they don’t do for me what that billboard does. Now, are there a lot of people calling me off that billboard? No, but I think it’s really yeah, I think it’s I’ve gotten some it says call or text Josh Bagby on there and I’ve gotten some funky texts.

Sharon Cline: Really?

Josh Bagby: I’ve got some funny voicemails, too. That’s a whole nother shout out to the Arlene. Oh, dear. Oh, my.

Sharon Cline: I. There’s a whole side of your life that I have not, like, asked you about yet.

Josh Bagby: Good Lord, to send you that one. That one. That was pretty fun. She’s. She’s kind of become a character in Cherokee Connect. She doesn’t even know it. So that’s. That’s pretty cool. But yeah, sales, marketing, part of it just kind of building a brand. I realized that the agency I was in before, nobody cared about that brand of insurance and it had no brand recognition locally for the most part. So what made it different was, was me, and that people knew me from just growing up and going to school and that kind of thing. So that was part of the brand. And then now, you know, kind of trying to brand providence off of that, trying to transfer kind of my personal brand and being able to spread that to my my people, my my staff to be able to use that brand. And then but all the while trying to build Providence a brand and a logo from nothing to to make it mean something and hopefully be something good in the community. You know, I look at Southeast restoration and their, you know, their logo and their brand like that’s recognizable, you know, what they stand for.

Josh Bagby: And so that’s kind of some of our colors are very similar to not like in kind of long shot Looper for the but like it’s a they do a really good job and they’re great people and that’s kind of that’s what we want to be known as. And they’re a you know, a good employer in the community and they they give back. And so that’s kind of piggybacking on what they kind of set the example. Benz You know, a few years older than me, Greg, I kind of took me in and I felt like he respected me even at 22, and he had no business, you know what I mean? Like, it’s just that’s just who he is and he’s a good dude. And so I want to be that guy going forward as kind of he. I don’t know. Not that we’re talking on the phone all the time, but like, he kind of kind of set an example that I could follow. So trying to do that in and be that for whatever the next business is that comes, you know, five, ten years down the road.

Sharon Cline: So we talk about that on the show a lot. People talk about how important it is to have the right people around you and that networking is huge and word of mouth is even more important than than having some billboard or even an ad on on Facebook. One of my friends was saying that there’s no need. Like they just talked to some people and it spreads maybe through Cherokee Connect. I’m not sure. But it’s nice to know that you don’t have to have a ginormous budget in order to get yourself out there.

Josh Bagby: Well, and that was where that was kind of the three. Demographics are the three kind of pillars stool, legs, whatever you want to call of chicken and egg. So it was a solid that the people needed handyman, whatever. So had them. I was like, okay, well we’ve got to get the handyman and all them and the electricians and the plumbers and all that. Got to get them in there and then the charities. Because we’ve got so many charities, we’ve got so many great people that don’t know how to plug in that. And the charities don’t have a sales budget or an advertising budget or whatever. So how can we get them all in one spot to be able to? So everybody benefits from it. And I think it has done a good job doing that so far. And there are like me giving a shout out to a business for that. It just kind of highlights it. But it’s the people that are shouting other businesses out, Hey, I saw there was one family traditions in town, like there’s a hard of hearing class at a preschool or kindergarten or something, and they gave them a taste test of Thanksgiving food the week before so that they could practice signing what they liked and what they didn’t.

Josh Bagby: How sweet. So like that, like that kind of connection is cool to see happening there. The but the word of mouth part of it matters and you don’t like are any businesses in Cherokee County going to be able to outspend Wal Mart or Google or Verizon or anything? Absolutely not. Like for me, can I outspend Geico? No. Like it’s just not even not even ever in my wildest dreams would I spend that kind of money on advertising. But we can hyper localize it if all your clients are here locally. Like this is really this is all you need to advertise to. You don’t need to waste money on people in Tennessee that a TV commercial may do or a radio type thing so we can hyper localize it. Make make what little ad dollars are spent. Go further and let your. Your own brand recognition and your own name. Carry weight to where? Hey, man, this is the best plumber I’ve ever seen in my life. Let’s tell other people about it. And so now that dude’s able to do more locally to support his family. And those people, the ones that do it locally like that, are the ones that are giving back and they’re the ones sponsoring and they’re the ones.

Sharon Cline: Plugged in to the plugged.

Josh Bagby: In. They’re the ones with the banners on the on the football field and in the basketball gym like that, that they’re putting money back in in there and their kids are here. Like, it’s it’s a cool thing to see.

Sharon Cline: You have like a win. It’s a win win for everyone.

Josh Bagby: For everybody.

Sharon Cline: I love that. So if you were to kind of look back at your career, are there things that you were I don’t know if afraid is the right word, but sort of like trepidatious about that. You no longer.

Josh Bagby: Are. No. I still don’t. And that’s not like a it’s a good answer.

Sharon Cline: It’s your truth. And I love it because it’s, you know, everybody has a different one. But I like that you are. You’re being honest like you.

Josh Bagby: But I it’s it’s not like I’m fearless and everything I do, like, it’s not that like, it’s just like a it’s not that I’m any better at it or that I overcame it. It’s like I just don’t focus on it. Like it’s I have found other ways to make up for what you don’t like doing or, you know. So yeah, that’s not that was way too short of an answer.

Sharon Cline: No, that was a good answer because it does vary for lots of people. And one of the themes that I find with business owners is that the notion of not giving up like the fear of I’m not going to do okay, I’m I won’t succeed. I don’t have everything figured out. I’m going to stop even before you get started. Like, that’s my story, you know what I mean? Like, everybody has those moments, so. But I like that you’re kind of you’re not letting that be a defining factor of yourself.

Josh Bagby: Yeah, and I wouldn’t call it a fear. Am I anxious? Yeah. Like, they’re always opening the phone every morning, but, like, that kind of thing. I use it as a motivator, you know? And how do you how do you function under stress? Like, stress just makes me work harder and longer and that kind of thing. So if you can figure out how to use it, if you’re scared of it, figure out how to use it to to motivate you. And I don’t think that happens overnight. I think it does Again, it’s a it’s a reps thing.

Sharon Cline: Practice, practice.

Josh Bagby: I mean, I gave my old agency up and I went from making a good living to zero in a month by choice, which is kind of stupid.

Sharon Cline: Well, not everybody can can do this, of course. Right. But the but you had some really good support.

Josh Bagby: Yeah, absolutely.

Sharon Cline: Which is what people talk about, as well as having the right people around you.

Josh Bagby: And I had to I had to trust that the community would support a new what I was doing. And that was a like they supported Cherokee connect for whatever reason. And I’m like, well I think if they support that, they’ll support this. And, you know, we had done insurance, had a track record of it. So, you know, it wasn’t a blind jump. But, you know, you’re first night, you’re you’re anxious going, man, I don’t have a paycheck coming this month unless I go make it.

Sharon Cline: Did you have to have did you feel like you had to have something to fall back on, like a contingency? Or did you just say, I’m just going to go for this?

Josh Bagby: Yeah. There was no plan B like it was a plan B, it was a burn the ships kind of it was going to work. I was going to make it work. Now, was I going to hit every goal that I set? You know, I had a pretty realistic idea that, yeah, maybe not. And would it be okay if we didn’t? That was going to be something we were going to have to cross when we got there. Yeah, it was.

Sharon Cline: It worked. And I think I think sometimes situations are it’s timing, too. Like, you know, where you had just the right setup for you to be able to have this moment of success. So there’s something you can’t make happen at the wrong time, you know, And that’s meant to.

Josh Bagby: Be that’s a that’s a spiritual thing for me. That’s where the name Providence comes from. It was like it was there is a calm about that. Like when you feel like you’re not doing it on your own and it’s not you doing it, it’s just kind of trust that somebody else has got you and it works out. And it’s amazing how often, like there’s no reason Cherokee Connect should be what it is. That’s there’s no and there’s got to be. And I constantly remind myself like this is not for me to sell insurance this is for those nonprofit for the church is for sponsoring kids at Christmas for like all like that’s what it’s for. And yeah, it helps it helps me sell insurance, but that’s a byproduct of it. But. I’m talking about Tim Tebow. Praying to win football games like, do you care? Do I think God cares who wins or loses a football game? Absolutely not. Tim Tebow used his platform to further. The kingdom and because he won football games. So I think in a roundabout way, yeah. Like, as long as he’s using it the right way, then its success will come with that. I don’t know. Do I think God cares the turkey is successful or Providence is successful? No, but if I use it to continue to be a version of a ministry and yeah, it’s worth doing. And I think we’ll we’ll stay on the right track.

Sharon Cline: You’re kind of you’re kind of mayor of Cherokee Connect. You’re kind of it does feel a little like slightly political, doesn’t it?

Josh Bagby: A little bit. Yeah, the politics thing comes up a lot.

Sharon Cline: But like, do people ever say to you, you should run for mayor of background or mayor? I don’t know, Woodstock or something?

Josh Bagby: Yeah, it comes up. Do they really? Yeah. Running. Yeah, And I don’t know. I’ve looked at it. I think that my kids are at ages. I think that I’m at an age that it probably doesn’t make sense. I think that there’s more. Um. We can move quicker and help fill needs faster with the group right now. Then you can in government with less red tape and with both sides and not it’s red or blue or it’s so it’s you can you can bring people together for that and they’re not going to shut you down because you’ve got a D or that kind of thing.

Sharon Cline: So I love that because it’s it’s, it’s not the notion, it’s using the power that you have, but in a way that includes everyone.

Josh Bagby: It’s inclusive is a weird word. Like, yeah, it’s not.

Sharon Cline: Wait, did I just throw a bad word? I don’t know why I said power. It kind of is. I guess the, the, the, the, the platform has power.

Josh Bagby: The, the platform about that. Yeah.

Sharon Cline: And sorry if I made it seem like.

Josh Bagby: No like it’s, it’s, it’s influence I guess. Or it’s, it’s the ability to bring to shed light on something just kind of bring a need to the forefront that people may not know about like the school lunch debt, stuff like that is huge. It’s crazy.

Sharon Cline: That, that you talk about it and you give people ways to help.

Josh Bagby: That’s right. Yeah. And more than happy to help. But we got to figure out a way to fix it. And so now that like, can we help it a couple of times. Yes. But like, there’s got to be there’s got to be something going on to help fix a greater need that I can’t do. It’ll take I don’t know if it takes a voters or if it does take a politician like I don’t have all those answers. But yeah, I mean yeah, I guess you could be the, the mayor of the group, but it’s not there’s no I don’t have a gavel in there when we’re not taking votes unless we’re polling on who your favorite chicken place is, which people do best Thanksgiving food. Right.

Sharon Cline: Well, Josh, I really appreciate you coming on to the show and kind of giving us a little insight into what it’s like to be you, you know, and your and your every day.

Josh Bagby: It’s fun. Most days.

Sharon Cline: Hopefully today is a fun day being here on Fearless One Minute. Wait. I did want to ask you if people wanted to get in touch with you, how can they do that?

Josh Bagby: You can find me on Facebook and job.

Sharon Cline: Yeah, Really? It’s good to know.

Josh Bagby: Yeah.

Sharon Cline: That’s probably the best. That’s generally speaking, that’s where a lot of people are finding. Even in our all the different interviews that I’ve done, people just say, Find me on Facebook. It’s easy, you know?

Josh Bagby: You know, I mean, if you Google it and you Google my name, Providence Insurance Advisors, it’ll come up. There’s, you know, my email and my phone number and Facebook messaged me, you can Facebook, Instagram message me. There’s like, there’s a lot of ways to get in my phone there.

Sharon Cline: Wow, you’re busy guy.

Josh Bagby: You it’s fun. I wouldn’t have it any other way.

Sharon Cline: Well, on that note, thank you all for listening to Fearless Formula on Business RadioX. And again, this is Sharon Cline reminding you with knowledge and understanding, we can all have our own fearless formula.

Josh Bagby: Thanks, Josh. Thanks for having me.

Sharon Cline: Bye bye.

Tagged With: Providence Insurance Advisors

WBENC 2022: Fran Biderman-Gross with Advantages

December 7, 2022 by angishields

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WBENC 2022: Fran Biderman-Gross with Advantages
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Fran-Biderman-Gross-GWBC-WBENC-National-ConferenceFran Biderman-Gross, Advantages

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Intro: [00:00:04] Broadcasting live from the Business RadioX Studios in Atlanta, Georgia, it’s time for GWBC Radio’s Open for Business. Now, here’s your host.

Lee Kantor: [00:00:18] Lee Kantor here broadcasting live from the 2022 WBENC National Conference inside the GWBC booth, Booth 1812, if you want to come by and see us. I’m so excited to have our guest, Fran from Advantages. I just followed your lead, Fran, so don’t give me a hard time. Don’t start second guessing not telling me your last name.

Fran Biderman-Gross: [00:00:37] Fran Biderman-Gross.

Lee Kantor: [00:00:38] You could do that. That’s on you.

Fran Biderman-Gross: [00:00:40] I’m just Fran. I’m good.

Lee Kantor: [00:00:41] You said Frantastic.

Fran Biderman-Gross: [00:00:43] I did.

Lee Kantor: [00:00:43] You gave me a lot of options, so don’t blame me.

Fran Biderman-Gross: [00:00:45] I’ve been called a lot of things.

Lee Kantor: [00:00:48] So, tell us about Advantages. How are you serving folks?

Fran Biderman-Gross: [00:00:50] Sure. We drive profit with purpose through marketing performance. So, we are a purpose-based, values-based organization that helps purpose-driven leaders.

Lee Kantor: [00:01:03] Other purpose-based organizations.

Fran Biderman-Gross: [00:01:04] Yeah. Exactly. Get their message out from the branding and marketing perspective.

Lee Kantor: [00:01:07] So, what’s your backstory? How’d you get into this line of work?

Fran Biderman-Gross: [00:01:09] Oh, my gosh. You ask the fun questions. So, my late husband and I started a mere kind of printing company, and we just kind of kept –

Lee Kantor: [00:01:19] A printing company?

Fran Biderman-Gross: [00:01:20] Yeah.

Lee Kantor: [00:01:20] For authors? Or printing, like, brochures.

Fran Biderman-Gross: [00:01:25] No. No. Brochures. Authors. No. The book came much later. So, we were helping companies get noticed. We’ve really been very true to that message for the last, literally, October is going to be 30 years. Today is actually his an anniversary. I lost him 21 years ago, just before 9/11, after a two year battle. But long live the dream of visionary in Visionary Land of helping purpose-based individuals or very intentional leaders do the really great things that they do. So, we did start in printing.

Lee Kantor: [00:01:57] So, the heart of it was always around that purpose-based, values- based?

Fran Biderman-Gross: [00:02:00] I was going to say, you know, good people want to want to work with good people. That’s really the bottom line. And we really love working with good people. And we want to attract good people to them. And we want to help them lead great cultures that are really intentional. And we want to help them with the clarity of their message, hence the brand component to what we do.

Lee Kantor: [00:02:22] But was that a strategic choice or was this something that, “Hey, this is just how we are, why don’t we just hang out with other folks like us?” Like, how did this come about? Like, did you start out that that is the mission?

Fran Biderman-Gross: [00:02:35] Definitely not. We wanted to really help other companies get noticed. We wanted them to stand out from their competition. But when we started to really build the relationships, and good people just tend to stick with good people, good people doing good things. Look, we buy stuff from people we like, right?

Fran Biderman-Gross: [00:02:54] So, we tend to do business with people that are similar to us, and what we believe in, and realizing that there is a communication strategy called purpose. And really diving into that got us going from goods to services, and really helping build the internal side of how I’ve dissected a brand which is into your three keys, which is really how you lead your culture from an internal perspective. And the agency just does it on the external side.

Lee Kantor: [00:03:24] So, the heart of it was you noticed some characteristics and you’re like, “Hey, instead of just hoping the next client has some of these characteristics, let’s just hone in on people who believe what we believe.”

Fran Biderman-Gross: [00:03:41] Exactly.

Lee Kantor: [00:03:41] “Who think like we think and let’s serve them.”

Fran Biderman-Gross: [00:03:44] Exactly. So, when you think about it, why do you exist? Why do I exist? I know this can get into a very interesting conversation. But we think about, Why am I here? Why is this business here? What am I willing to fight for? What am I willing to stand for?

Lee Kantor: [00:04:03] And what am I willing to say no to? Well, that’s part of it, too, right?

Fran Biderman-Gross: [00:04:06] A hundred percent. When you think about the theory of purpose in general or why, you want to actually repel the wrong people as much as you want to attract. So, to me, it’s a two for one. Because you don’t want a ton of people in the funnel. You don’t want to attract a thousand people. I actually want a hundred people in the funnel because they’re more likely to be more like me. So, I don’t want to attract the mass. I want to attract the people that believe the things that I believe, we have a much better shot of building a really great emotional connection.

Lee Kantor: [00:04:38] And building a business that matters about the things that matter to me.

Fran Biderman-Gross: [00:04:43] Exactly.

Lee Kantor: [00:04:43] And that’s really at the heart of it. And especially with these professional services and the service-based businesses, they don’t need a million customers that they burn and churn through. That isn’t a good model for them. It’s not efficient. It’s not effective. It doesn’t make them feel good at the end of the day. These folks need a handful of new clients. That’s it. They don’t need a million.

Fran Biderman-Gross: [00:05:01] A hundred percent. I mean, you walk away from a conference this big, if you walk away with just a couple of really good connections, it could completely be life changing. So, it’s not about let’s pound the pavement, stop at every booth, figure out who every supplier is, and who’s the decision maker. Yes, you need a strategy to come here. But you need to leave with the strategy at the same time, because otherwise you’re just putting a lot of stuff in the funnel.

Lee Kantor: [00:05:25] And that’s going to take up time, distract you, and maybe get you even off course.

Fran Biderman-Gross: [00:05:29] Exactly. I like to say, we flip the funnel and make a megaphone. Amplify your one message so that you can attract and repel at the rate. And then, you can just spend a lot more of your time talking to people who most likely believe you’ll find the alignment somewhere, whether you’re a perfect fit or they need my service right now, it just doesn’t matter. You’re building the world.

Lee Kantor: [00:05:52] So, when you were doing this and you were starting out doing, you know, brochures or whatever you were doing at the beginning, when did you start feeling, “Hey, you know what? This attraction and getting the right people, this is a better fit.” Like, when did you start kind of getting the hint that maybe we’re onto something here?

Fran Biderman-Gross: [00:06:08] You know, that’s a great question. So, for ten plus years, I was the printing princess, getting noticed, carrying a wand, all these things, and I have a pretty outgoing personality, so people would remember me. And it was just too many people.

Fran Biderman-Gross: [00:06:22] And then, I met Simon Sinek long before his TEDx Talk at an event. And this might sound really bad, but it was an event at the Entrepreneurs Organization and it was, like, bring your marketing and bring your best piece. So, I did. And we have award winning graphic design and award winning blah, blah, blah. And I brought my best piece and then he just ripped it apart. And I’m like, “Do you not know me?” I was insulted beyond control, thinking in my chair.

Lee Kantor: [00:06:52] I’m a princess.

Fran Biderman-Gross: [00:06:52] I know. I was like, “Just, whatever, bleep,” all over me. But I was curious about, like, what does this magnetic connection really mean? And we began a phenomenal friendship of exploration. And we worked together for a long time just exploring, you know, how does this start with why things work? Oh, there’s a whole communication theory of purpose. And that really put me on a ten year trajectory of breaking it down and saying, “Oh. There’s a place in Y, and there’s three keys, and there’s what’s your purpose? Okay. Well, that’s your cause, purpose and belief.” But inside of that is your mission and your vision, your cause and your impact.

Fran Biderman-Gross: [00:07:32] Like, we could get all business-y and everything, but the bottom line is, human beings are here for a reason. And just because you’re making money at something as a result of what you’re doing for your company, you are making the world a better place in some way, shape, or form by connecting people for the right reasons. And as long as you get really, really clear at what that is, it makes it easier to do it better and faster with more people you like. And that started me on that trajectory.

Lee Kantor: [00:08:00] Now, when you’re talking to folks and they maybe aren’t thinking as deep as that, and they are more superficially looking at their business and the nuts and bolts of business, because we wanted all the time here in our business, sometimes they focus on metrics and they use the word metric like it’s some magic thing. It’s a number, so then it’s real. And so, it’s real, it must be important. And if it’s important, I better track it. But they don’t know how to discern the metrics that matter versus the metrics that can be counted. So, just because something that can be counted doesn’t necessarily mean it’s worth counting.

Fran Biderman-Gross: [00:08:37] First of all, you are a great interviewer because that is a fantastic question. Counting things that really matter is really important. And most of the times, actually unconventional things that you need to really look at, which really make the difference. So, when we think about metrics that matter, it’s like, What’s going to help me move the needle? What’s going to help me go further, faster? What’s actually going to be aligned?

Fran Biderman-Gross: [00:09:02] We talk about qualifications and why are we even talking to this type of person if it’s not really going to suit what we’re doing, and keeping everybody on track. Like we start working with companies all the time and like, “Great. Who’s your ideal?” And they start listing them. And then, we go – we call it – hand-to-hand combat, when we’re actually providing that lead gen to sales, I’m like, “Okay. Wait a minute. You told me he had to look like this, or she had to look like, or they had to look like this, this.” But when it came down to it, that wasn’t really right.

Fran Biderman-Gross: [00:09:40] So, what are we actually measuring? So, let’s redo the qualifications. Let’s really look at the data. Well, all these people took six months to convert, and da, da, da, da, da. What do we learn from that? So, you have to really look at things with a different lens very often to get the juice of what is really going to get to connect you. So, metrics are great. Vanity metrics are a whole other discussion.

Lee Kantor: [00:10:03] Well, we call them cost-metrics.

Fran Biderman-Gross: [00:10:05] Cost-metrics. I love that. That’s awesome. But you’re right, it’s hard to cut to the chase of which metrics really matter. And it’s really important to actually dissect the unconventional things. Dissecting that is really key.

Lee Kantor: [00:10:20] That might take work. And a lot of times they don’t want to do that. They want to look at a dashboard and say, “Oh, there’s 14 greens, so we’re having a good month while I don’t have money in the bank. But I have 14 greens.”

Fran Biderman-Gross: [00:10:31] You know, you can’t skip doing the work.

Lee Kantor: [00:10:34] I know.

Fran Biderman-Gross: [00:10:35] You can’t skip doing the work. I mean, like if I had a magic wand –

Lee Kantor: [00:10:38] That’s why we’re doing this, it’s for the work. Believe it or not, the work is what matters.

Fran Biderman-Gross: [00:10:42] Every step of the work matters. Making the decision, like marketing, our job is to fail things faster. But enough time that it’s fast enough. I still need to gather data. So, don’t say, “Oh, two weeks of gathering data is enough.” No, it’s not. You can’t get a critical mass of anything. I can’t get to a baseline. Everybody wants to get to the steady state without doing the testing, and you can’t do that.

Lee Kantor: [00:11:06] But the calendar I built two months ago said it would be done by today.

Fran Biderman-Gross: [00:11:10] Uh-huh. That’s nice. And how many things did you not account for that we ran into that we actually had to adjust for? But it is about testing and taking the period of time that it needs. I like to say it’s four to six months in one channel when you actually create a hypothesis that you need to prove. But, honestly, that’s the right way. You can’t get to a steady state unless I can prove something in one channel. I couldn’t scale it unless I can prove it somewhere.

Lee Kantor: [00:11:38] Right. So, talk about your book. What was the impetus of writing it all down? Because that’s fun. That’s a job by itself.

Fran Biderman-Gross: [00:11:47] It was a very long job. It was a really, really hard job. If you told me how much – nevermind. I wrote the book as a gift because I really believe that entrepreneurs, whether you’re in professional services or not, you really deserve to understand the anatomy of your own brand. And when you can harness the clear communications, it really unlocks a lot of things.

Fran Biderman-Gross: [00:12:16] And when you think about the most successful people in the world, we can talk about Oprah. She sits down in a meeting and asks for clarity, what’s the intention of the meeting, which always is trying to get to clarity. As leaders, it’s our responsibility to get to clarity. It’s our responsibility to lead with clarity. So, marketing strategist, it’s a leadership book as a gift for CEOs going, You can be profitable in every aspect of your business if you have clarity. So, how do you get to clarity? And I give you the baseline. I mean, the appendix is actually the process we take people through. I gave it away.

Lee Kantor: [00:12:49] Don’t tell anybody that.

Fran Biderman-Gross: [00:12:50] No. Go by the book. But if you want to help, reach out, and all that’s great. But everybody’s always happier when there’s more clarity. People understand where they’re going. Why do they matter? Everybody deserves to be safe at work, to feel valued for their contribution. And it’s the leader’s responsibility to do that.

Lee Kantor: [00:13:13] Right. To help them be seen and heard.

Fran Biderman-Gross: [00:13:15] Absolutely. And valued. And valued. And given the opportunity to grow and given the opportunity to advance the company.

Lee Kantor: [00:13:24] Right. Have bigger expectations and bigger dreams.

Fran Biderman-Gross: [00:13:27] Exactly.

Lee Kantor: [00:13:28] So, if somebody wants to learn more, get a hold of the book, what’s the coordinates?

Fran Biderman-Gross: [00:13:32] You can Google Fran Biderman-Gross on Amazon.

Lee Kantor: [00:13:36] You can spell it.

Fran Biderman-Gross: [00:13:38] B-I-D- no. You can go to 3keysbook.com and, really, you’ll link everything from there, from the podcast that I do to – I don’t know, – just learn more about it.

Lee Kantor: [00:13:49] All your good stuff there.

Fran Biderman-Gross: [00:13:51] Yeah. Well, that’s a good video.

Lee Kantor: [00:13:52] Thank you so much for sharing your story. You’re doing important work and we appreciate you.

Fran Biderman-Gross: [00:13:56] My pleasure. Thank you so much for being such a great host with incredible questions. It was super engaging. Thank you.

Lee Kantor: [00:14:02] All right. This is Lee Kantor. We’ll be back in a few at the 2022 WBENC National Conference.

 


About WBENC

The Women’s Business Enterprise National Council (WBENC) is a leading non-profit organization dedicated to helping women-owned businesses thrive.WBENC-Logo

We believe diversity promotes innovation, opens doors, and creates partnerships that fuel the economy. That’s why we not only provide the most relied upon certification standard for women-owned businesses, but we also offer the tools to help them succeed.

About GWBC

The Greater Women’s Business Council (GWBC®) is at the forefront of redefining women business enterprises (WBEs). An increasing focus on supplier diversity means major corporations are viewing our WBEs as innovative, flexible and competitive solutions. The number of women-owned businesses is rising to reflect an increasingly diverse consumer base of women making a majority of buying decision for herself, her family and her business. GWBC-Logo

GWBC® has partnered with dozens of major companies who are committed to providing a sustainable foundation through our guiding principles to bring education, training and the standardization of national certification to women businesses in Georgia, North Carolina and South Carolina.

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