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Finding the Ain’t

April 8, 2022 by John Ray

Finding the Ain't
North Fulton Studio
Finding the Ain't
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Finding the Ain’t

A visit with one of my clients and a CPA we were interviewing led to “finding the ain’t.” The “ain’t” in this meeting was the intangible my client identified which attracted him to this CPA. A real-life lesson in how intangibles are what makes prospective clients lean in, not our certifications or experience. The Price and Value Journey is presented by John Ray and produced by the North Fulton studio of Business RadioX®.

TRANSCRIPT

John Ray: [00:00:00] Hello. I’m John Ray on the Price and Value Journey. In the work I do as an outside CFO for a few clients and as a business advisor, I rely on CPAs to handle the tax work for my clients because compliance work, like taxation, for example, is not my expertise.

John Ray: [00:00:21] Not long ago, I had a series of different meetings with a client and a few prospective CPAs. After we’d completed our interviews, I asked my client which one he preferred. And he told me his favorite. “Why did you like him?” I asked. He answered, “Because any man who says ain’t is a man I know I can talk to,” he said. That’s not exactly the answer I was expecting, but I wasn’t surprised either. I was expecting to hear an intangible, and the only question was which one or two of those intangibles might stand out for my client?

John Ray: [00:01:03] I expected to hear an intangible rationale for my clients’ selection because clients do not select professional services providers like CPAs, attorneys, bookkeepers, or coaches based on qualifications and expertise. No, they don’t really care what school you went to, unless, of course, you just happen to go to the same school they did and then they might care. But they don’t care that you’ve got a great website. They don’t really care about your certifications and in a lot of cases, they don’t even know what all those letters mean. Your certifications and mine are worthless.

John Ray: [00:01:45] Okay. Now, that’s a deliberate overstatement. Certifications and all of the education and work that we’ve put into becoming subject matter experts in our given field are vital but only to a point. They are just the tickets to get into the show. They don’t get you backstage in that client’s mind. What gets you backstage is to have a value conversation. And that’s what this particular CPA who got chosen did. He didn’t spend any valuable time covering all the things we already knew and had moved past. He didn’t talk about his qualifications or his certifications or whatnot. He asked a lot of why questions and then he shut up and listened. His use of the word ain’t wasn’t really the ultimate determinant for my client, of course. It was just a symbol that he could point to, which indicated for him that this professional understood his problems, hopes, fears, and dreams.

John Ray: [00:02:48] As professional services providers, our job is to be known as someone who understands and holds solutions to problems. But you already know that. What can be hard for us to internalize, though, is that clients come to believe that we have solutions because of intangibles, which often have nothing to do with how you and I end up solving their problems. There’s an ain’t with every client. Spend your time trying to find it.

John Ray: [00:03:22] I’m John Ray on the Price and Value Journey. Past episodes of this podcast can be found at pricevaluejourney.com. Or, you can email me if you’d like to connect directly, john@johnray.co. Thank you for joining me.

 

About The Price and Value Journey

The title of this show describes the journey all professional services providers are on:  building a services practice by seeking to convince the world of the value we offer, helping clients achieve the outcomes they desire and trying to do all that at pricing which reflects the value we deliver.

If you feel like you’re working too hard for too little money in your solo or small firm practice, this show is for you. Even if you’re reasonably happy with your practice, you’ll hear ways to improve both your bottom line as well as the mindset you bring to your business.

The show is produced by the North Fulton studio of Business RadioX® and can be found on all the major podcast apps. The complete show archive is here.

John Ray, Host of The Price and Value Journey

John Ray The Price and Value Journey
John Ray, Host of “The Price and Value Journey”

John Ray is the host of The Price and Value Journey.

John owns Ray Business Advisors, a business advisory practice. John’s services include advising solopreneur and small professional services firms on their pricing. John is passionate about the power of pricing for business owners, as changing pricing is the fastest way to change the profitability of a business. His clients are professionals who are selling their “grey matter,” such as attorneys, CPAs, accountants and bookkeepers, consultants, marketing professionals, and other professional services practitioners.

In his other business, John is a Studio Owner, Producer, and Show Host with Business RadioX®, and works with business owners who want to do their own podcast. As a veteran B2B services provider, John’s special sauce is coaching B2B professionals to use a podcast to build relationships in a non-salesy way which translate into revenue.

John is the host of North Fulton Business Radio, Minneapolis-St. Paul Business Radio, Nashville Business Radio, Alpharetta Tech Talk, and Business Leaders Radio. house shows which feature a wide range of business leaders and companies. John has hosted and/or produced over 1,100 podcast episodes.

Connect with John Ray:

Website | LinkedIn | Twitter

Business RadioX®:  LinkedIn | Twitter | Facebook | Instagram

Tagged With: certifications, customer discovery, experience, intangibles, John Ray, Price and Value Journey, pricing, professional services, professional services firms, professional services marketing, solopreneurs, value

ATDC Radio: Anju Mathew with OncoLens and Nakia Melecio and Brandy Nagel with ATDC

February 21, 2020 by angishields

OncoLens-ATDC-Ep3
ATDC Radio
ATDC Radio: Anju Mathew with OncoLens and Nakia Melecio and Brandy Nagel with ATDC
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ATDC-Ep3

Anju Mathew is CEO and co-founder of OncoLens. Most recently, she was the head of technology and innovation at McKesson’s Medical Surgical business unit where she led the development and launch of several successful tools and business partnerships positioned to take costs out of our healthcare system.

Prior to her role at McKesson Medical Surgical, Anju was part of McKesson’s corporate strategy group. She was also co-founder and executive at LumaMed, a medical device company focused on cancer imaging. Prior to LumaMed, she worked with Thomson-Reuters, A. T. Kearney, IBM and i2 Technologies.

Anju has an MBA from Northwestern University’s Kellogg School of Management and Bachelor’s in Industrial Engineering from the Indian Institute of Technology. She is a member of the Atlanta Technology Angels group and a former member of the board of directors for Illuma Care Connections, headquartered in Atlanta.

Follow OncoLens on LinkedIn, Twitter and Facebook.

Nakia Melecio is a serial entrepreneur, developer, and an executive with over 20 years of experience in founding, operating, and growing successful companies.

Brandy Nagel is an entrepreneur educator at Georgia Tech with more than 8 years of experience helping turn ideas into business models.

Follow ATDC on LinkedIn, Twitter, Facebook and Instagram.

What You’ll Learn in This Episode

  • OncoLens was recently named one of the Top 10 innovative companies in Georgia by TAG, the Technology Association of Georgia
  • OncoLens’ value proposition to the customer and cancer patient
  • How do you drive innovation within OncoLens?
  • What customer discovery is and why it matters
  • Best practices for customer discovery

Tagged With: customer discovery, lean startup, oncology service line, precision medicine, quality improvement in cancer care, tumor board management

Decision Vision Episode 44: Should I Run for Political Office? – An Interview with Rep. Dar’shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock

December 19, 2019 by John Ray

should I run for political office
Decision Vision
Decision Vision Episode 44: Should I Run for Political Office? - An Interview with Rep. Dar'shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock
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should I run for political office

Decision Vision Episode 44: Should I Run for Political Office? – An Interview with Rep. Dar’shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock

More business owners than ever are running for political office. What should I consider in making this decision? How will holding political office affect my business? On this edition of “Decision Vision,” host Mike Blake speaks with business Rep. Dar’shun Kendrick, Georgia House of Representatives, and Councilman Colin Ake, City of Woodstock on these questions and much more. “Decision Vision” is presented by Brady Ware & Company.

Rep. Dar’shun Kendrick, Georgia House of Representatives

should I run for political office
Georgia Rep. Dar’shun Kendrick

Dar’shun Kendrick was born and raised in Decatur, Georgia. She has a dual degree in political science and communications from Oglethorpe University, a law degree from the University of Georgia and a Master in Business Administration from Kennesaw State. Both of her parents are entrepreneurs so she grew up understanding the unique challenges of business owners, particularly business owners of color.

That’s why since 2010, Dar’shun has dedicated her capital compliance law firm to making sure everyone has access to legal services and tools to raise capital for their business in a way that makes sense for every size business and every investor. Her passion and focus have specifically been on making sure that minorities and women have access to the tools and resources they need to reach their capital raising goals. To date, she has helped companies raise over half a billion ($500MM) in investment funds. In 2019, she became a Series 65 license holder (investment adviser representative) with the ability to provide strategic investment advice to her corporate clients as a part of her services.

Dar’shun is also an innovator and community activist. She was featured in the Huffington Post as 1 of 25 people positioned to Scale Atlanta’s Growing Inclusive Technology Start Up Ecosystem for Black Americans and Beyond. In 2017, she was elected to the Technology Association of Georgia’s (TAG) Corporate Development Board and in 2018 elected to the TAG Diversity Board. She is also a past contributor to Black Enterprise Magazine focusing on economic justice issues. In 2017, she founded Georgia’s 1st ever Georgia Blacks in Tech Policy Conference & Follow Up “Day of Action” with the focus on advocating for inclusive tech policy throughout the state. This event continues on today as the “Tech for All” Policy Conference.

Dar’shun’s service extends beyond her capital compliance firm. Since the age of 27, she has also served as a member of the Georgia House of Representatives. She represents over 54,000 Georgians in DeKalb and Gwinnett counties. She also founded Georgia’s first Technology, Innovation & Entrepreneurship Caucus which is a bipartisan caucus of Georgia legislators and stakeholders committed to the mission of supporting entrepreneurs within the state. She currently serves as the Chief Deputy Whip of the House Democratic Caucus and a ranking member of the Small Business & Jobs Creation committee.

Awards (last 3 awards awarded)- She was awarded the Urban League of Greater Atlanta Young Leader Award (2019) and named as an awardee for the Atlanta Business Chronicle’s “40 under 40” awards (2019) and nominated for 2 NAACP awards for criminal justice reform and her business (2017 and 2019).

Dar’shun is a community activist, public speaker & teacher, elected official, private securities attorney, and a proud member of Alpha Kappa Alpha Sorority, Inc. She currently resides in Lithonia, Georgia.

Councilman Colin Ake, City of Woodstock

should I run for political office
Councilman Colin Ake, City of Woodstock

Colin Ake was elected to Woodstock City Council in 2017. Prior to announcing his run for City Council, Colin served as the Mayor’s appointee on the Woodstock Planning and Zoning Commission for a year and a half. While on the Planning Commission, he was elected Vice-Chair by his peers. Colin served as the Chair of the Greenprints Alliance Board of Directors in 2016 and 2017, and as the Vice-Chair in 2015. He was invited to represent Greenprints Alliance on the Woodstock Police Department’s Body-Worn-Camera Working Group. Colin has provided significant input to the Cherokee Office of Economic Development and Woodstock Office of Economic Development on Fresh Start Cherokee and The Circuit as they work to incorporate startups into their economic development plans.

Professionally, Colin is employed by Georgia Tech’s VentureLab, where he works with commercialization projects. He teaches entrepreneurship to commercialization teams through the NSF I-Corps Program, where he is a Regional Lead Instructor. He leads programs across the southeast and assists in the administration of the I-Corps South grant at Georgia Tech. Colin has taught at Georgia Tech’s Scheller College of Business and is a member of the Georgia Tech Faculty Senate. He also represented Georgia Tech on the State Senate’s Camden County Spaceport Study Committee, where he studied the opportunities and challenges facing the potential spaceport on the Georgia coast.

Prior to joining Georgia Tech, Colin spent four years rebuilding an aerospace company focused on reusable launch operations and lunar/planetary lander technology development. He previously worked at the Georgia Tech Research Institute and at an early-stage technology startup for two years. Colin holds a Bachelor of Science in Management and a MBA from Georgia Tech.

Colin grew up a mile from Woodstock and moved back to the city with his wife Nikki to start their family. Colin, Nikki, and children (Owen & Lealynn) are members at Sojourn Community Church in Woodstock, where Nikki is an active member of the finance committee, and Colin plays drums and works on long-term planning projects.

Michael Blake, Brady Ware & Company

Mike Blake, Host of “Decision Vision”

Michael Blake is Host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

should my business buy real estate?“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast. Past episodes of “Decision Vision” can be found here. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

Show Transcript

Intro: [00:00:09] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:28] And welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners or executives perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand where you might need help along the way.

Mike Blake: [00:00:48] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia, which is where we’re recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe in your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:11] So, today, we’re going to talk about whether you as a business owner executive should run for political office. And regardless, I think, of where you are in the political spectrum, if you are at any place, I’m not sure where I am anymore, I think that’s an increasingly important topic. I think we’re seeing more people with a business background seeking office at all levels. And indeed, like them or love them, love them or not like them, the current President of the United States does come from a business background. And indeed, he ran on his business background as a reason why that is the case he made that he would be a good president of the United States. And that’s something that he invokes fairly regularly.

Mike Blake: [00:02:02] And it’s not just he that’s doing that. Mike Bloomberg has recently jumped into the race. There’s discussion now about, you know, whether billionaires can buy their way to the presidency. And again, we’re not going to talk about that particular topic, but I think there’s an increasingly blurred line now between politics and business. And maybe there’s always been a blurred line and depending, again, where you sit, maybe it’s an uncomfortably blurred line. But the fact of the matter is, I think, that the people who did not think that they had the stuff or the wherewithal, even the desire to run for political office and just sort of put themselves in the seat of being a business person, now, are thinking of themselves potentially in a dual role or maybe it’s even something they do with either a subsequent or intervening chapter in their lives.

Mike Blake: [00:02:56] And, you know, the recent statistics on this podcast still are flooring to me. We’re pushing about three-and-a-half million downloads, I understand, since February. Chances are good at least one of you has thought about running for political office. So, at least, this could be interesting to one of you out there. But I think it will be interesting to more on that. And we actually have a director at Brady Ware & Company that was elected mayor for one of the towns, I believe, outlying Dayton. He took over as mayor when the previous mayor resigned. And then, ran and was elected in his own right. So, we’re even seeing that inside our own company.

Mike Blake: [00:03:35] So, as you know, when you listen to this podcast, we’re bringing in people who actually know what they’re talking about, because I certainly don’t. And coming in to talk about this topic today are two people who are balancing public service and their own careers. And so, joining us today is Dar’shun Kendrick, a five-term member of the 93rd and/or 94th Districts of Georgia in the Georgia House of Representatives as the chief deputy whip. And I say the 93rd/94th, because I think it was a 94th District for her first term. And then, thanks to redistricting, I think it then became the 93rd. But for those who aren’t in Georgia, our assembly is made up of 180 members, a fairly large body, partially because we just have, I think, more counties than anybody in the country.

Mike Blake: [00:04:25] We’re not serving her constituents in this capacity. Dar’shun is a capitol compliance lawyer dedicated to guiding Black and female founders in the capitol, raising investing process. She provides these services through her company, the Kendrick Advisory, an advocacy group. She’s an arbitrator of the Financial Industry Regulatory Authority or FINRA. I did not know that before I was researching this podcast and she holds a bachelor of arts from Oglethorpe University, I live about a-mile-and-a-half from there, holds an MBA from Kennesaw State University and a law degree from the University of Georgia.

Mike Blake: [00:04:56] And she’s joining us by phone today. So, you may hear some noise in the background. With those of you who are not from Georgia, we have a unique driving environment here. And one of the unique features of the driving environment is that rain, particularly cold rain, will turn the streets of the greater Atlanta metropolitan area into an episode of Ice Road Truckers, basically. So, Dar’shun, please drive carefully as you’re on the podcast. Thanks for joining us.

Dar’Shun Kendrick: [00:05:25] Yeah. Thanks so much. And I’m sorry I couldn’t be in the office or in the studio today. But as you know, we are getting ready for session. So, we’re trying to make do with the 24 hours we get.

Mike Blake: [00:05:37] Yeah. Well, if you guys can vote a 26-hour day, I’d really appreciate that.

Dar’Shun Kendrick: [00:05:42] Yeah. So would I. I’ll work on that.

Mike Blake: [00:05:45] Also, joining us today is Colin Ake. Colin was elected city councilman in 2018 for the City of Woodstock, Georgia, a municipality of southern Cherokee County, the population of just over 30,000. And Woodstock is, oh, I’m going to say about 20 miles north and west of downtown city of Atlanta, maybe a little bit farther than that. Prior to serving in that role, Colin was a—or give me some help here, was it a or the planning and zoning commissioner for the City of Woodstock.

Colin Ake: [00:06:13] I was one of seven.

Mike Blake: [00:06:15] Okay. One of seven. So, a planning and zoning commissioner. When not serving his constituents, Colin is a principal at Georgia Tech VentureLab, where he serves as an instructor on innovation and entrepreneurship. Colin actively works with entrepreneurs and researchers to commercialize research, identify, and secure grant funding, mentor startups, and modify and implement Georgia Tech’s evidence-based entrepreneurship curricula. This includes training and evaluating other instructors in the customer development methodology employed by the I-Corp program and across Georgia Tech.

Colin Ake: [00:06:44] At some point, I’d have you back to talk about because that’s an interesting program. It’s one that I think is unique. Colin holds his bachelor degree in management and his MBA from Georgia Tech. So, regardless of any kind of political discussion here, we have somebody from the University of Georgia and somebody from Georgia Tech, and that’s probably going to create more tension on this program than anything. And if you are from Alabama or Auburn or Florida, Florida State, you know exactly what I’m talking about. Colin, welcome to the program.

Colin Ake: [00:07:10] Thanks, Mike. Thanks for having me.

Mike Blake: [00:07:12] And interestingly, you’re wearing a shirt today that’s yellow with black stitching on that. Is that something that you arranged or?

Colin Ake: [00:07:20] Not specifically because of where Dar’shun went to get her law degree, but I did pick it out.

Mike Blake: [00:07:29] All right. So, let’s jump into it, because we got a ton to cover here. So, Dar’shun, let me let you go first. Ten years ago, you began to serve in your capacity in the Georgia legislature. What motivated you to do that?

Dar’Shun Kendrick: [00:07:49] Well, here, I have a very unique and interesting story. So, I essentially was at the right place at the right time or the right place at the wrong time, depending on which day of the week it is. I was a 27-year old who had just started practicing law for small business litigation firm downtown. And the law firm imploded one summer. And so, they let everybody go. And so, I had started my MBA program. And I had to start my own law firm.

Dar’Shun Kendrick: [00:08:28] So, I actually happened to be down as the capitol because two hours before I got down there to meet with our rep on some sort of marketing for my new firm, the person in my seat decided to run for governor. And so, they were looking for people. And I just so happened to be at the capitol meeting on an unrelated matter. I didn’t even know they would qualify me. And so, the person I was meeting with, I had known since I was a teenager because I worked at the capitol and they asked me what district I was in.

Dar’Shun Kendrick: [00:09:04] And I said, House District 94, which is 94 at the time. And he said, “Well, we need you to run for office.” And of course, I thought he was crazy because I was starting the MBA program and a new law firm. But the long story short is I ended up qualifying 30 minutes before the qualifying ended. So, I actually went from a private citizen to a full-blown candidate unexpectedly overnight. So, I wish I had a better inspirational story about how I worked hard enough and I planned to be in this position, but that is the true story of how it happened.

Dar’Shun Kendrick: [00:09:43] But I ultimately decided to say yes because I knew I eventually wanted to work on state house. I just thought it would be kind of be, you know, sort of when I had a more stable career, when I was older, maybe with a family. But I decided to say yes, because, you know, I grew up in DeKalb County and I represent Dekalb County. I knew that I was more qualified than the people that were running. I already had tremendous support before I even signed the qualification document, so I knew that I could do it. And even though it came unexpectedly and it came fast, I have had a pleasure of serving 54,000 Georgians ever since.

Mike Blake: [00:10:29] Okay. And I have a feeling there are probably other stories that are kind of like that. But Colin, how about you? What’s your story? Did you also sort of fall into public service that way or is that the more of a longer term ambition of yours?

Colin Ake: [00:10:44] No, I kind of fell into it. I grew up in Woodstock. And Woodstock has changed a lot. It has grown massively in the last couple of decades and really become a place that is much different than where I grew up. My wife and I moved back to Woodstock in 2013. And I got involved in a local nonprofit focused on building a trail system just because I want to be able to raise a family somewhere over there. It was a good outdoor recreation opportunity. And from there, I got asked one day to serve on the Planning and Zoning Commission, which was not on my radar, not something I’d been to, not something I was involved in.

Mike Blake: [00:11:26] Did you know anything about planning and zoning?

Colin Ake: [00:11:27] I did not know anything about planning and zoning. But I love learning new things. And so, I dove in and had a lot of fun over the course of about a-year-and-a-half. Planning and zoning in the State of Georgia, most bodies are recommending bodies. In other words, they’re appointed by mayor and city council, but they recommend decisions. And then, the mayor and city council make the final decision. And after about a-year-and-a-half of seeing recommendations go one way or the other and the city council listened to some of them and not listened to others, I decided, well, it might be time to make this vote count if I’m spending the time on it.

Mike Blake: [00:12:05] Like the Christmas song goes, if you’re so smart, you rig up the lights, right?

Colin Ake: [00:12:09] Something like that.

Mike Blake: [00:12:10] So, let’s go into that then. Your first election, talk about running in your first election was like.  You, yeah.

Colin Ake: [00:12:21] Yeah.

Mike Blake: [00:12:22] Colin.

Colin Ake: [00:12:22] So, my first election was an experience. So, I ran against an incumbent that was first elected and hadn’t been in office continuously, but was first elected in the year 1990.

Mike Blake: [00:12:35] Wow.

Colin Ake: [00:12:36] So, 2017, I’m running against a guy who has been in office in and out a couple of times, but for for a while. Nice guy. But I wanted a shot. So, I qualified and started running. Somebody else also qualified. So, I had a three-way race and that was quite the experience. It’s a lot of door-knock and it’s a lot of talking to people. It’s a lot of time. It is a great experience. You know, I teach this entrepreneurship stuff at Georgia Tech, right? We teach researchers to go talk to customers and actually understand the people. I mean, knocking on doors is all that, right?

Mike Blake: [00:13:12] Yeah.

Colin Ake: [00:13:12] It is essentially sitting there and that-

Mike Blake: [00:13:13] I hadn’t thought about that. That’s right.

Colin Ake: [00:13:15] … you are learning about your constituents or potential constituents at this point. And what do they care about? Why do they care about those things? And it’s a lot of fun, but it’s a lot of work. You wear through some shoes and it was a good time. I was fortunate enough to avoid a runoff. I won outright. I was a little surprised. You know, I know a lot of people do these victory parties, I didn’t do any of that. I was ready to find out who I was going to be against in the runoff. And I had about four people at my house. And it turned out okay.

Mike Blake: [00:13:51] Well, knowing you, that sounds about right though. You’re kind of a low-key guy, so I don’t see you as a victory lap guy. Dar’shun, how about you? I mean, I know you, sort of, were an overnight qualification story, but what was that first election like? Were you opposed?

Dar’Shun Kendrick: [00:14:09] I was. So, I had four other people was—and my district is largely democratic. So, obviously—general. But I did have four other people in the primary. It is somebody who is very active in the Democratic Party. Somebody who had ran for this three times before. And there’s somebody who was very, very active that have supporters in Rockdale. But I’m just—so, I was the youngest. And so, every time the media printed something, they just ask it without at least letting you know for whatever reason.

Dar’Shun Kendrick: [00:14:53] But I, you know, knocked on doors. I have been involved in politics since I was 18. So, we have to like run a campaign. And so, I had a number of primary voters who were at least three times. And that’s when the primary—fly. It wasn’t in vain like it is now. So, it was a long, hot summer, a very long, hot summer. And I, you know, didn’t quite know how I was able to—start a law firm while knocking on doors. That still felt quite interesting in how I did it—business.

Mike Blake: [00:15:38] Well, let’s, in fact, talk about that, because, you know, one of the things that draws me to this conversation is, you know, where does running for office intersect with business, right? And both of you, in your case, you have a business and Colin has, you know, a career and neither of your post, they’re not designed to have you be a career politician in that respect. But I’m curious, as you are knocking on doors, do you think that that actually helped you kind of understand your market better, Dar’shun?

Dar’Shun Kendrick: [00:16:20] You know, I think it helped me not only to understand my market better, but just to broaden my understanding of just opinions and the issues facing Georgia in general. When I first ran for office, I was—at Rockdale County. And Rockdale County is that county who have very, very active supporters of commerce. And so, you know, on the campaign, so obviously, I was engaged with those two views. But it helped me that I did have a business background to sort of, I think, connect with people on the campaign trail at these retail or business centers.

Dar’Shun Kendrick: [00:17:06] And I am accused more than I would like about being one of the more full-business Democrats. But I think it served me well, because I am able to understand sort of the base of my calling, which is labor and balancing with the people that I represent, which are obviously founders of this. So, I definitely learned a lot about that market, but around Georgia issues as well. It was a really great opportunity to just meet people and hear different views. I really enjoyed the campaign. I know it’s hard, but I learned a lot of their stories.

Mike Blake: [00:17:47] So, Colin, my next questions for you is, you know, as you are preparing to run, have you had professional mentors or advisors in your life that maybe, you know, have helped you along the way to get to where you’ve been professionally? Did you also rely on them as you contemplated this political step? And if so, were they helpful? If not, then where did you kind of find that expertise?

Colin Ake: [00:18:11] Yeah, it’s a great question. So, you know, I tend to be the student of, you know, whatever world I’m going into. I worked with a bunch of different entrepreneurs from a bunch of different backgrounds and bunch different industries, right? And so, that’s taught me to take advice from the people who have experienced something before and go find people that can share something with me that, you know, is based off that experience. I certainly had conversations with business mentors or people that I worked with previously. I’m about running for office. I got encouragement to do so.

Colin Ake: [00:18:45] But of course, you know, if you’ve not run a campaign, you generally go well. But I’ve never run a campaign and that’s kind of, you know, where that stops. I had some help from some friends that had experienced parsing data and find someone that they can parse data well. And go grab some voter data and, you know, data’s data. You got to know what you’re looking for, but once you know what you’re looking for, it’s fairly easy to pull together a strategy.

Mike Blake: [00:19:13] Indeed, I’ve heard that superior command of data was a big factor in enabling the president to win in 2016, right? It wasn’t whether he’s a better candidate or not, but this was a lot of analysis. And I think there’s some truth to this that he and his team just paid more attention and just did better with parsing data.

Colin Ake: [00:19:36] My experience has been that the data certainly gives you an edge. And it helps inform whatever strategy you’re developing as a team. Dramatically different to run for president than it is to run for city council for the City of Woodstock.

Mike Blake: [00:19:49] Sure.

Colin Ake: [00:19:51] For the small business owners that are out there that are thinking about getting involved in local government, at either the local or the county or the state level, it’s really easy to not even be—you know, you don’t have to be a presidential level data parser to make a difference in a small race.

Mike Blake: [00:20:12] Yeah. And in fact, interestingly enough, there is one of these rare cases where a meaningful office was won by one vote, a Boston city council office, after their fourth recount was just decided by one vote with over 70,000 thousand votes involved. So-

Colin Ake: [00:20:30] That’s fairly narrow.

Mike Blake: [00:20:31] There’s probably going to be a lawsuit, too. One vote, you know, you got to believe that’s gonna be challenged, I would think. But still-

Colin Ake: [00:20:39] Hanging chad somewhere.

Mike Blake: [00:20:40] Yes. So, it does happen. So, Dar’shun, how about you? I suspect, but you tell me. I don’t want to put words in your mouth. What about your mentors and advisors? Have they been the same for you along the way in business as in politics or have you found that they’ve been different?

Dar’Shun Kendrick: [00:21:01] So, my sort of mentors in business have always been my parents. So, I grew up in an entrepreneurial household. So, I love business owners, but typically, minority female founders and Black-owned founders share sort of the challenges that they went through. So, my parents have kind of taught me a lot about business. And, you know, I have people that I sort of look up to. I wouldn’t say that I have a formal mentorship with anyone. And that’s probably because, believe it or not, I’m—about it. So, you know, I just had not gotten opportunity to ask somebody to do that mentorship. But I am because one of the things that I added to my success and firm is I just recently got a series of job life investment-

Dar’Shun Kendrick: [00:22:05] So, I am intentional about how people have been successful in the state for a very, very long time with that aspect of it. But political-wise, you know, as a politician, I value amongst anything else—good and anything like that is people who are persistent in their belief and that is true. So, one of the reasons that one of my best friends is a partner is because we are very, very truthful with one another. And because above all else, we are very persistent in our belief. So, for me, you know, I will look up to or admire anybody in the political world that is consistent in their belief and persistent about it.

Mike Blake: [00:22:59] So, you’ve been in public service now for a decade. Really remarkable. And which means you’ve won five elections. Again, remarkable. How have you found that’s impacted your legal practice and your consulting practice?

Dar’Shun Kendrick: [00:23:20] So, obviously, in the beginning, since I was an overnight candidate, from a law firm perspective, I wasn’t prepared to be a full-blown candidate. So, I think that was the hardest time because I didn’t have the preparation. I literally went from a private citizen to a full-blown candidate overnight. So, those early years are very, very rare. I’ve done a very good job, indeed, of managing it.

Dar’Shun Kendrick: [00:23:54] And so, one of the things that I do, particularly during this upcoming legislative session, is I’m very, very good about saying no. Obviously, I have about 31,000 followers on this and everybody, you know, wants to pick my brain or hear a story or just advice about this. And I just say, “Hey, listen, I’m very good about saying no.” But the other thing is I try to focus on policies that I have an expertise into it, which is capital label, security work, investment, strategies, and things like that.

Dar’Shun Kendrick: [00:24:32] So, it makes the work a little, not only more fun or more engaging, but a little easier to just pass the learning curve as you’re not spending as much time on it, you’re just focused on things that you really couldn’t deal with. So, over the years, I’ve been able to really find that balance. And I think that it served not only me will, but the State of Georgia will to have somebody focusing on policies that is also a part of their day job.

Mike Blake: [00:25:06] And Colin, how about you? You haven’t been in service quite as long, but it looks certainly long enough to have an impact. How have you found that’s impacted your career?

Colin Ake: [00:25:13] Yeah. It’s got a time impact for sure. You know, juggling multiple responsibilities is a challenge. You have to be very good about saying no.

Mike Blake: [00:25:25] And you’re moonlighting. Both of you are basically moonlighting when it comes down to it.

Colin Ake: [00:25:28] And, you know, there’s beauty and there’s challenge in citizen legislature and in citizen governance, but there’s balance that comes from having those multiple perspectives and experience. You have to find things that are important to you and prioritize them. You have to say no to a lot of things. People ask me what my hobbies are. My hobby is serving the citizens. You know, there are no other hobbies.

Colin Ake: [00:25:53] I’ve got a family, I’ve got a real job, and I’ve got an elected office. And that’s the majority of my time. So, you know, it changes things because it gives you different perspectives on life. You know, we don’t manage a budget anywhere near the size that Dar’shun deals with. This is, you know, at the city level, it’s a much smaller world. You know, our form of government, we have a city manager that’s full-time, essentially the CEO.

Colin Ake: [00:26:25] And we act as, you know, kind of a part-time board. But there are infinite subjects at any point time you can go learn a lot about, right? There are people who have built their careers off of public safety response, out of public works, out of community development. And to be a student of each of those games, enough where you’re informed, but not enough where you’re unable to focus on other things as, you know, you just have to juggle it.

Mike Blake: [00:26:50] So, the question I want to ask both of you, I’ll give Colin first crack at this, is there’s what I would call a romantic notion out there. And I used to have this. I’ve moved away from this view myself. But there’s a romantic notion that if you could just run government the way you’d run a private business, everything would just be hunky dory. And I’m not sure that our attempts to do that have worked out well, but I’m willing to be educated otherwise. Colin, in your experience, is that a realistic expectation? Is it partially realistic? Where do you kind of come down on that?

Colin Ake: [00:27:30] I’m going to say and I am making up an answer on the spot here. I think it depends on the level of government. Local government, small municipality is dramatically different from large municipality, it’s dramatically different from county government, and dramatically different from state government, which none of that, you know, is nearly as complex as the federal government. When you’re in a small municipality or, you know, we’re just over 30,000 people, it’s growing fast, there are elements that certainly translate.

Colin Ake: [00:28:05] You have HR challenges, you have budget challenges. So, there’s elements that translate. I don’t think it’s necessarily the same, right? Because you’re dealing with a lot of things like social contracts between neighbors and zoning issues that are really personal for people and really come down to, you know, interpretation of and belief in basic rights and principles. And so, there’s elements that translate, there’s elements that don’t translate even at the local level. But I don’t know if at the local level there’s more of it or less of it. What’s your your thought, Dar’shun?

Mike Blake: [00:28:43] Dar’shun, where do you come down on this?

Dar’Shun Kendrick: [00:28:46] Yeah. So, it’s interesting. I just had finished going to a retreat with the technology advancements in Georgia. And my colleague, Joe, does a lot of technology work. He said, when he first got elected, which was last year, he said, “I have the misconception that government is—like a business. And boy, did I get a big surprise?” And I think if that is right and that—the problem with running government like a business is that their end goal is different, right?

Dar’Shun Kendrick: [00:29:20] So, for businesses, this is representing corporations like I do, their first responsibility is a job upholder, which is to make profits, right? That is the end goal. There is the fiduciary duty that’s involved there. With government, obviously, it’s very, very different. The end goal is uphold constitution, improving for the public safety and welfare of their citizens. So, I think, the common point, you are going to have some-

Dar’Shun Kendrick: [00:29:53] You know, sometimes, when it works well, like under Georgia, we have a 26-billion dollar budget and we are not allowed to print money or borrow money like the federal government is. So, every year, we have to balance our budget like I effectively—but at the same time, you know, we were making those various techs and things that the priorities are going to be very, very different. Because it is a government entity, I suppose they have really different budgeting.

Mike Blake: [00:30:23] You know, that’s an interesting point. I want to kind of underscore something that in terms of that capacity to borrow. And in fact, most private businesses can borrow at some point, right? Even if you’re a sole practitioner, you could put a $20000 Mac Pro on your credit card if you wanted to. I’m not sure what you’d do with it, but you could certainly do that. Whereas, you know, as you said, if you’re not in the federal government, generally speaking, there is no borrowing capacity. You balance the budget, end of discussion or you just run out of money.

Dar’Shun Kendrick: [00:31:03] Yeah. And, you know, that’s one of the things that obviously, the—this upcoming legislative session. And those conversation is just going to be different than if I was having a conversation with a board that I represented in the business.

Mike Blake: [00:31:22] So, has there been at some point, Dar’shun, where you’re concerned about there being a negative impact in your business? I mean, you know, we’re taught that we should be not discussing politics and business and generally speaking from the except of some very close business associates, I don’t entertain that discussion. You can’t avoid that because you’re out there and you got bumper stickers and you got signs on people’s house corners and so forth. You know, have there been points in which, you know, maybe that’s negatively impacted your business? Because there are people who look at you as a Democrat and say, “You know what, I’m just not going to do business with a Democrat, end of discussion.”

Dar’Shun Kendrick: [00:32:06] Yeah. That’s very possible. You know, I don’t have any empirical data that somebody has done that. But two things to your point. So, the first thing is I am an oddball and that I am not one of those people that think that we shouldn’t discuss policy. I think that’s the reason. Otherwise, because you don’t have those horrible sessions, that dinner on the table, so I am free and open—probably to my social media rather than dinner table.

Dar’Shun Kendrick: [00:32:39] So, I am probably an anomaly and that I think it will never be obviously the factors of—it had taught me to be more tolerant of other people’s opinions. And so, I just think holding it up doesn’t serve anybody. So, I’m definite in my belief in that respect. But the second thing is, as I mentioned before, I tend to be one that criticized on both sides. But particularly, for Democrats, because I do understand and relate to business owners and founders, what they might do for the underlying labor movement.

Dar’Shun Kendrick: [00:33:16] And that’s not to say that, you know, I’m against labor or anything like that. It’s just that I bring a different perspective. And so, I think knowing that and because of the things that I do as far as policy and collaborations and things like that, people might know that I’m a Democrat. But when it comes to business, particularly when it comes to technology, really, the people are more willing to—to me because of my support of businesses on the side.

Mike Blake: [00:33:55] So, let me switch gears here, because I think there’s an important question. And somebody out there is thinking about this question, I guarantee it. And that question is this. Colin, let me put it to you first. Somebody is thinking, “Wow. If I could just run for office, that would really help raise my profile.” What a great resume build or what a great thing to put on LinkedIn. And maybe it even gives you some other opportunities as well. And we’ll talk about conflicts of interest in a minute. But just generally speaking, you know, in your mind, is it worth running for office to help your career?

Colin Ake: [00:34:37] To me, no. There’s different opinions on this, obviously.

Mike Blake: [00:34:41] Right.

Colin Ake: [00:34:41] I think it’s worth running for office if you want to invest yourself in something and you want to learn a different perspective. Sure. I am sure there are examples of people who’ve gone into politics and their career has blossomed as a result. But at the local level, right? To me, I want counterparts on council, I want counterparts on the county commission that are dedicated to making the place that we live a better place, right?

Colin Ake: [00:35:12] And they come with a desire to invest their time and their resources and their energy in making those decisions that are never easy. And that’s a much better motivator to me than someone who’s there for them. It’s about a group. It’s about, you know, building consensus amongst people that don’t necessarily always see eye-to-eye and understanding nuances of issues and finding ways to come to agreements. Like that’s what it’s about. It’s not about, you know, personal gain.

Mike Blake: [00:35:50] Dar’shun, how about you? If somebody is thinking about running for office because they think it would help them personally or from a business perspective, is it worthwhile to have that thought process?

Dar’Shun Kendrick: [00:36:08] I think that is probably the biggest myth besides—that I have heard with respect to public office. Well, because you want to prove and just have the heart to prove it. That I will tell you personally, one of the biggest, most helpful things that people just adviced that I got before I entered the legislature or that before I entered the legislature, it came from my predecessor, who was a lawyer, a legislator.

Dar’Shun Kendrick: [00:36:40] And for those that don’t know, lawyer legislators are a dying breed. When I first got into office, we were about almost 25% of the general assembly and now, we’re down to about 17%. So, you might think that’s not bad, but it is what it is. So, that is—in the general assembly. But historically, we had less than that number. So, this lawyer legislator said it and put it ever so distinctly and it has been every bit of truth, is that it’s not a matter of if we will lose revenue and income in this position, it’s a matter of how much.

Mike Blake: [00:37:26] Okay.

Dar’Shun Kendrick: [00:37:27] And every time a lawyer legislator is thinking about running for office, even if they have zero motives, I always give them the same advice. Your revenue and you income will go down. It’s not a matter of if it is going to go down, the question is how much. And a lot of that had to do with the fact that, you know, we especially engage in policy making for the first few months of the year, right? But then, there’s also, you know, possible conflict of interest, particularly if you work with bigger firms that might come about.

Dar’Shun Kendrick: [00:38:04] People think we just work for four months out of the year. But I can tell you that I work no less than about three hours outside of session a week on legislature side. So, you know, you can be one of those legislators that just shows up and doesn’t advice anything and never say anything and just for like a check. I mean, that is, you know, “Why don’t you show up and vote for the budget?” Constitutionally, you’ve done what it is that you’re required to do on this constitution.

Dar’Shun Kendrick: [00:38:32] But most people, you know, don’t want to do that and they wanted to be re-elected, so it does become a full-time desk job during the session and then, the other part is the time we’re out, it’s more of a part-time job. So, I would caution anybody who thinks that this is better, it’s going to raise your brand, for sure, but if you think that is going to translate to dollars, I would just be cautious about this and that it’s going to have a correlation.

Mike Blake: [00:39:00] So, Dar’shun, you brought something up that I want to jump on, because I think it makes sense to talk about here. And it’s another critical question we got to cover, which is I have to imagine there are many opportunities, particularly in your position, for conflict of interest to arise. How do you manage that?

Dar’Shun Kendrick: [00:39:22] So, it actually is not as much of a conflict as you would think. So, because there are citizen legislators, right? Everybody knows we have a full-time job and we have to work. So, if I work for a bigger firm and I had a client of the firm that was advocated for a deal, that would be, of course, sort of conflict of interest right there. But because I’m a solo and because I am an attorney, you know, constitutionally, nobody can prevent me from practicing law, because just by law—right.

Dar’Shun Kendrick: [00:40:06] So, you know, I consult on reviews that we have and things like that because that’s literally my job as a lawyer. But there are sometimes that the legislature will specifically set the legislation that we can’t engage in particular firms, particularly AJC—which was cannabis bill that we passed for the—growing the cannabis. I have never in my mind used to being down there seeing legislation that specifically sits in what I call a poison pill.

Dar’Shun Kendrick: [00:40:47] And that it specifically prohibits legislators, former and current legislators, from investing in the cannabis business past 5% of an investment. And that was put in there for a long, drawn out reason that I know about. But anyway, it does prohibit. So, for example, I started an investment group that is going to participate in investing in the supply chain for cannabis. Well, I started the group, but I only serve as general counsel.

Dar’Shun Kendrick: [00:41:23] I’m not investing into it. I’m not putting any money into it. I’m not, you know, having input on the pitch process, in the investment process. Just because there is that specific proposition in there and I don’t want to be on the front page of AJC. So, there are times when the conflict is written into either the law or they probably prohibit us from engaging in it. But because, you know, it’s literally my profession, I’m generally allowed to sort of practice law and give advice, even though I might vote on this bill.

Mike Blake: [00:42:05] So, Colin, I’ll ask you a different question as we head to the end here. You know, how does sort of having a job and doing what you do alongside being a city councilman inform how you vote and how you propose and pursue policy?

Colin Ake: [00:42:29] It’s a good question. So, how does having a job help inform policy? So, I’m an entrepreneur turned academic, right? My day job is down at Georgia Tech. As such, I get access to a ton of people who are really smart in any given field. You know, we’re very fortunate to have a school of city and regional planning that is really good at pumping out good planners. There’s people down there that I can learn from on a technical topic. There’s a balance there, right? There’s obviously people with deep expertise that we can learn from and turn that into knowledge that informs policy.

Colin Ake: [00:43:18] There’s also a balance of, you know, when I’m at Georgia Tech, my Georgia Tech hat is on. And when I go off the clock there and go to City of Woodstock, my City of Woodstock hat has to be on. So, it’s a great question. For local policy, it’s different, I think, because local policy is often about things like sign code or zoning regulations or, you know, it gets into the minutiae really fast. And it’s not necessarily, you know, directly the same thing that I do with it at Georgia Tech. So, you know, I’ve got all sorts of ideas on an entrepreneurship policy or policy that could impact that world, the professional world that I deal with, but it’s not the same scale of policy that we deal with at the city level.

Mike Blake: [00:44:08] So, if I’m understanding correctly, in reality, you’re kind of in two parallel worlds that don’t necessarily meet a whole lot.

Colin Ake: [00:44:15] They don’t meet a whole lot.

Mike Blake: [00:44:18] Okay. We are running out of time here. And I want to thank you both so much for joining us. We could talk a lot longer about this, but we have to let you get back to serving your constituents. Dar’shun, how can people contact you if they may have an interest in running for office and want to learn more about it and why to do it and maybe why not to do it?

Dar’Shun Kendrick: [00:44:41] Yeah, sure. Anybody can follow me on social media. Beware, though, I am very vocal. So, just like yourself. But it’s just Dar’shun and Kendrick, D-A-R-S-H-U-N, Kendrick, K-E-N-D-R-I-C-K on Instagram and LinkedIn and Facebook and Twitter. So, people can, you know, invite me on there. I’m a millennial and I will give out my cellphone number, but that might be a little dangerous. So, if you can contact me on social media or either email me, just dkendrick@kendrickfor, F-O-R, georgia, Georgia—.com, then I will try my best to get back with you if we can if I’m not very, very busy. And short messages and questions.

Mike Blake: [00:45:33] Very good. And Colin, how about you?.

Colin Ake: [00:45:37] Email me at cake@woodstockga.gov, C-A-K-E, @woodstockga.gov. More than happy to lend some thoughts. My encouragement would be find a way to get involved in your local community and invest your time and energy somewhere near you. It doesn’t have to be an elected office, but we need people that are engaged, that are giving back, and that are trying to make the world a better place.

Mike Blake: [00:46:05] Okay, that’s gonna wrap it up for today’s program. I’d like to thank Dar’shun Kendrick and Colin Ake so much for joining us and sharing their expertise with us. We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcast aggregator. It helps people find us so that we can help them. Once again, this is Mike Blake, our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: CPa, CPA firm, customer discovery, Dar'Shun Kendrick, data analytics, Dayton accounting, Dayton business advisory, Dayton CPA, Dayton CPA firm, Decision Vision, Georgia Tech, Mentors, Michael Blake, Mike Blake, political campaigns, political consulting, politics, running for political office

Decision Vision Episode 1: Should I Get a Patent? – An Interview with Jackie Hutter, The Hutter Group

February 7, 2019 by John Ray

Decision Vision
Decision Vision
Decision Vision Episode 1: Should I Get a Patent? - An Interview with Jackie Hutter, The Hutter Group
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Jackie Hutter and Michael Blake

 

Should I Get a Patent?

Michael Blake, Director of Brady Ware & Company and Host of the Decision Vision podcast, interviews Jackie Hutter on when it may be best to forego the patent process, the steps in a patent process and the cost, how an entrepreneur should select and manage their patent attorney, and other key topics related to patents.

Jackie Hutter, The Hutter Group

The Hutter Group enables start ups and small companies to generate and deploy intellectual property that can enhance revenue and exit goals. While working with innovators to obtain meaningful patent protection that “makes it cheaper to go through you than around you,” we work with our clients to identify IP Strategies that are meaningful to their businesses, with the objective of creating IP that is aligned with real value.

Jackie Hutter has been recognized for each of the last 8 years for her innovative insights in creating value from IP Strategy with the peer-awarded Top Global IP Strategist by Intellectual Asset Magazine. Ms. Hutter’s IP Strategy clients have been varied, and include a Fortune 500 consumer hardware company, a large alternative energy company, several funded medical device ventures and dozens of startup companies with diverse technology offerings. From 2011-2015, Ms. Hutter also served as a the CEO of a startup battery-related company, which has provided her with a unique vantage point among her experienced colleagues about what it means to work with counsel to generate the critical IP necessary to prevent competitors from “knocking off” the innovator’s technology. Her experience extends beyond the IP realm: she frequently handles contracts and related matters for her clients, especially those relevant to clients’ IP rights.

Michael Blake, Brady Ware & Company

Michael Blake is Host of the Decision Vision podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. Mike is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

He has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

Decision Vision is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the Decision Vision podcast. Past episodes of Decision Vision can be found here. Decision Vision is produced and broadcast by Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn: https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

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Show Transcript:

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions brought to you by Brady Ware & Company. Brady Ware is a regional, full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Michael Blake: [00:00:23] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we’ll be covering a key topic to discuss the process of decision making rather than making recommendations because everyone’s circumstances are different. We’ll talk to subject matter experts about how they would recommend thinking about that decision. And then, you can make that decision on your own.

Michael Blake: [00:00:44] My name is Mike Blake, and I’m your host for today’s program. I’m a Director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton, Columbus, Ohio, Richmond, Indiana, and Alpharetta, Georgia, which is where we are recording today. Brady Ware is also sponsoring this podcast. If you like this podcast, please subscribe on iTunes, and please consider leaving a review of the podcast as well.

Michael Blake: [00:01:07] So, today we’re going to be talking about — We’re going to be talking about patents. And patents are increasingly important. There’s a lot of data out there that suggests that, in the last 30 years or so, most of the value that’s being created in our economy consists of intellectual property. Now, the accounting world is actually only very slowly catching up to this. A lot of intellectual property does not show up on a balance sheet. In fact, some of the benefits of having intellectual property is that nobody knows it’s there at all. And that’s one of the things, I think, we’ll be talking about today.

Michael Blake: [00:01:41] But one of the things that I’ve learned over the years I’ve been, myself, working with advisors, and entrepreneurs, and business people is that some patents are great, some patents aren’t great. Sometimes, they are all cracked up to be. Sometimes, there are better ways to accomplish protecting your intellectual property. But I’m not an attorney. I don’t know anymore about patents than I just said over the last 35 seconds or so. So, in order to not commit malpractice and be sued because I do not have the bar, we’re going to bring on a subject matter expert to talk to us today.

Michael Blake: [00:02:12] Joining me today is my dear friend and colleague, Jackie Hutter. Jackie has been helping innovators capture the value of their ventures at The Hutter Group since 2008. During this time, and probably not coincidentally, Jackie has been named by her peers as a Top Global Intellectual Property Strategist. For several years, Jackie took a break from the law as CEO of a startup technology company where she experienced entrepreneurship from the inside, which gives her a unique perspective among patent experts.

Michael Blake: [00:02:42] Prior to striking out on her own, she was a Senior Intellectual Property Lawyer at Georgia Pacific and a shareholder at an Atlanta intellectual property law firm. She started her non-legal career as a research scientist in an innovation group of a hair and skin product company. I didn’t know that. Jackie lives in the Decatur area in a groovy, mid-century house with her husband, teen daughters, and far too many pets. Again, joining us today is Jackie Hunter.

Jackie Hutter: [00:03:08] Thank you, Mike.

Michael Blake: [00:03:09] Thanks for coming today. And how many pets do you actually have now?

Jackie Hutter: [00:03:12] Oh, gosh. We have three very large dogs, including one that’s just emerging from puppyhood that requires me to walk him about six miles every day.

Michael Blake: [00:03:22] That’s why he looks so fit.

Jackie Hutter: [00:03:24] Well, thank you for that. We work hard. And then, three cats.

Michael Blake: [00:03:28] So, how far — I mean, what is the line between having too many pets and being the cat lady from The Simpsons?

Jackie Hutter: [00:03:34] Having a husband.

Michael Blake: [00:03:39] All right. Well, you heard it here, folks. You heard it here, folks. If you have too many pets, and you want to not be clinically insane, be married. That is apparently the line.

Michael Blake: [00:03:47] So, Jackie, thanks for coming on today. I’m really looking forward to this conversation. And you and I have had patent discussions forever, as long as we’ve known each other. I do a lot of work with entrepreneurs, many of whom think they want to have patents, and you sort of help talk them off the ledge, or maybe they should have patents, and you’re like, “God, why don’t they have a patent? They need to talk to me,” like, “Stop.” But let’s kind of build a foundation here. I’m not sure everybody understands what exactly a patent is. So, talk about what is a patent and how do patents work?

Jackie Hutter: [00:04:17] Well, patents are confusing because, quite frankly, lawyers make it too complicated. It’s really a simple framework in that a patent sets out the property lines of what you want to own. And when you file a patent application, you are setting out, laying a marker, if you will, into the world that, “I have come up with this, I have invented this, and I want to own it.” And so, that’s a very important part of the process that people don’t spend enough time on. But, generally, folks will think, “I need a patent,” and not really understand why they need it and why it creates value for them.

Jackie Hutter: [00:04:59] And because there are so many people who write about patents and who actually obtain patents for a living, there’s a lot of junk that’s out there that prevents people from really understanding. But, at the end of the day, a patent is something that protects something you’ve brought — that should protect something you’ve brought to a customer, and that customer will pay for it. And in order to retain that customer — In other words, to get them to be able to continue buying from you as long as you want them to, you need to consider whether or not it makes sense to draft a — obtain a patent that actually covers that stuff. And if it doesn’t, then patents are irrelevant to you.

Michael Blake: [00:05:47] So, just having a patent for the sake of a patent doesn’t sound like a great idea.

Jackie Hutter: [00:05:51] Well, if you like to have really pretty things on your wall. For a lot of people, the objective is, “Hey, I got a patent.” And, sometimes, they don’t even think about what the value is, or they assume there’s value, and they never really care or have to figure out what that value is. Certainly, for patent attorneys, the goal is to get patents because if they didn’t, they wouldn’t be in business. But the ultimate goal if you’re doing this the right way is because you have a validated customer, somebody wants to buy what you’re selling to them. And in order to continue to hold that customer and realize that value, you should have a patent. You don’t have to have a patent, but you should have a patent.

Michael Blake: [00:06:38] Okay. So, let’s say you sold me. I want to get a patent. And, for the moment, let’s leave a side value. Maybe, I do just want something pretty on my wall, and it’s cheaper than a Warhol.

Jackie Hutter: [00:06:51] Maybe not.

Michael Blake: [00:06:52] Maybe not. We’ll talk about that later, right. But I decided I want it, how do you go about that? Can I just go down to Washington and say, “Hey, give me a patent.” How does that work?

Jackie Hutter: [00:07:01] Well, it’s a very arcane process, even for patent experts like me. I’ve been doing this for far more years than I like to admit. And the details are just way too complex. Now, if anybody is a DIYer, there are plenty of books out there that purport to tell you how to do it, and I have seen some patents that have been generated that way. Usually, they’re not worth anything, not even the paper that they’re written off, but that’s just the nature of the business. Although there are some exceptions, but they’re very, very, very extremely rare. So, then, what you have to do is you have to hire a patent expert. It’s kind of like, “the fox guarding the hen house,” as a mentor of mine used to say. When you ask a patent attorney if you need a patent, the answer is probably going to be yes.

Michael Blake: [00:07:52] Of course, you need a patent.

Jackie Hutter: [00:07:56] And that made-

Michael Blake: [00:07:56] I got to get paid.

Jackie Hutter: [00:07:57] Yes, well-

Michael Blake: [00:07:59] I don’t know if you need a patent, but I need a patent.

Jackie Hutter: [00:08:01] Well, you said it, I didn’t, or maybe I did. But what typically happens in that process – and I know this is the way the training is – we say to our clients, “What did you invent?” And this is what my retainer is going to be. And most of the time, the vast majority of time, that gets things off in the wrong direction because when you’ve talked about what you’ve invented, you’re talking about what has happened in the past.

Jackie Hutter: [00:08:32] But if patents are to have value for you in your business strategy, as part of your business strategy, you need to be looking at the future and understanding why this patent is going to have meaning for you at some point in the future. And that’s with respect for my clients, with respect to potential sales and potential customers in the future.

Jackie Hutter: [00:08:53] So, by starting with, “What did you invent?” and starting writing about the past is where most patent applications and, actually, granted patents go awry, but it’s just the nature of the business. I take a different approach, a very different approach actually. When clients come to me, I use a gate. I will not take any client who has not been able to demonstrate or will not be able to demonstrate to me that they know who their customer is, why the customer cares, and why the customer will write a check in the future.

Jackie Hutter: [00:09:31] And when they do that, and only if they can do that, we talk about why it matters for them in the future to have this protection. And very often, it won’t be relevant. So, I say, “No, you don’t need a patent. Let’s go ahead and work on another type of intellectual property that might give you even more value than a patent.”

Michael Blake: [00:09:52] I think that’s great. I’m going to go off the script here because, I think, it’s a sign of a great professional that makes a client work a little bit to hire you. And I like to think I do the same thing in my practice where you don’t want to do an unnecessary operation, right. You got to live with yourself. And, at the end of the day, the client’s going to wise up and realize you took out their appendix when it’s perfectly healthy, right. And they’re going to be mad. It’s going to harm your reputation. And Atlanta is a big small town, right. So, I think that’s really important that you go through that process, and you challenge the client to think, “Do you really need a patent?” as opposed to, “Are you looking for something really pretty to put on the wall?”

Jackie Hutter: [00:10:36] Well, for professionals like us who had gone to school for a long time and been doing it for even longer, it’s really easy to make it complicated. And it’s hard to make something simple when it really is hard. And therefore, it has become, or not even become, I think it’s always been this way in the patent world that folks just want to hand stuff over to somebody else because it’s uncomfortable and difficult to learn something new, especially when you’re professional does not take the time or have the skill to be able to explain it to you in a way that’s meaningful to you.

Jackie Hutter: [00:11:13] And, actually, that’s sometimes the hardest part of my practice is to figure out the right way to talk to this person, this client, this potential client because you have to meet the client where they are and to be able to communicate to them in a way that’s meaningful for them. So, that has — I have actually fired clients and, I think, I’ve had my clients have fired me because I require them to do the work. At the end of the day, a patent is a business document. It’s not a legal document. It’s not a technical document. It’s something that sets out your business plans, and you have to be able to execute on those business plans. That’s why I write patent applications with my clients the way I do.

Michael Blake: [00:11:54] If you haven’t been fired, and you have never fired a client, you’re not really doing your job as an advisor because that means you’re just rolling over every time, and that’s not a good advisor, right? So-

Jackie Hutter: [00:12:06] Yeah, but it pays well, right?

Michael Blake: [00:12:08] In the short term, it does. So, they talk to you. Let’s say they’ve now convince you that a patent is the right thing, and you agree, they’re going to take you on. What happens then?

Jackie Hutter: [00:12:19] Well, what I’ll do is first figure out what the lay of the land is. Usually, we all. And that’s very different than what other folks do. People, just generally, clients will say to me, “I’ve done a patent search.” Well, usually, a patent — Well, not usually. The vast majority of times, clients really have no idea what a patent search entails. It is really a specialized process. So, that, you do need to have somebody who’s trained. You don’t necessarily need a lawyer. But the traditional way of doing searches is quite binary. Actually, that’s right. You can’t have quite binary. It is binary. And it’s either, are you patentable or you’re not patentable?

Jackie Hutter: [00:12:57] So, when you say, “Is something patentable?” you have defined what you’re going to patent. That is, again, looking backward, not looking forward. So, the approach I take with clients is I say, “I don’t know what we should patent. Help me understand your business better. I will go out and look to see what others have done and what the patent world looks like.” I don’t want to say landscape. I don’t want to use existing words because it really is a graze. It’s just trying to collect information and develop a frame of reference for moving forward.

Jackie Hutter: [00:13:36] And what’s interesting in there, especially since I work with early stage, smaller companies that are seeking to create patents that are meaningful to others, to get others to potentially write a check for the rights to practice or own that technology is you really have to patent for other people, and use the language, use the framework, use the context that the folks that you want to get their attention are going to be interested in.

Jackie Hutter: [00:14:07] If you look very different from them, they’re not going to want to buy you, right. They’re not going be interested. That’s just basic human nature, whether it’s patents or not. But, also, from the standpoint of companies that don’t file hundreds or thousands of patents a year, which seem to get all the noise is about all these large companies that are filing an enormous number of patents a year, those are not most of the people getting patents. Most people getting patents are much smaller companies, and they’re getting them Wednesdays ad Tuesdays.

Jackie Hutter: [00:14:41] Those folks don’t know their patent attorneys, as well as the people themselves, they’re not experts in getting patents. So, by going out looking at the existing patent literature and figuring out what other characterizations, what other language, what other definitions the experts have used, you can shortcut. You could not only make your patent look more similar to the people whose attention you want to get, you can also shortcut the drafting process and get a less expensive and higher quality work product because of that.

Michael Blake: [00:15:12] I’m sorry, go ahead.

Jackie Hutter: [00:15:13] No.

Michael Blake: [00:15:13] So, that front-end work, then, really makes a big difference?

Jackie Hutter: [00:15:19] Absolutely. And that’s one of the biggest problems with patents in the way that I learned how to do them, as well as the way that most folks do them today is that it’s a “File it and see what happens.” Well, that’s like going to battle without having any planning associated with it, right We know what happens from that. You’re fighting battles, and you don’t have a strategy to win, or even if you can win.

Jackie Hutter: [00:15:49] So, by setting up the groundwork in advance, it’s more work, and it can be challenging for the client to be pushed in this direction, especially for technical people. Business people get this. Marketing people get this. When I sit down with a technical person, they typically want to talk to another technical expert, and they get into a siloed conversation that ends up looking like a technical diagram, right, a technical document.

Jackie Hutter: [00:16:17] And to say to them, “I don’t care what your technology is. I want to know why it matters, and why it was so hard, and why nobody has done this before because you’ve been working on this for X number of months, X number of years, and it took you this long. We need to make sure that story is told to the patent office, so that the patent office is not going to say, ‘Looks like everything else that comes in.'” I don’t want to fight that battle on the back end. I want to make sure I’ve strategized, so I don’t have to fight a battle I know that’s going to happen.

Michael Blake: [00:16:46] I bet a big challenge of that too as an inventor has internalized that story so much that they find it hard to expressly articulate.

Jackie Hutter: [00:16:53] Absolutely. Everything is obvious in hindsight, even to the inventors sometimes. And I love to get to innovators before they have actually, hopefully, started their innovation journey or in the middle of the innovation journey because what I say to them is, “As a former research chemist, so often, nothing comes together until everything comes together.” And you’re struggling, you have that pain, you don’t know how you’re ever going to get through this block that you have. And then, you’re through that block, and everything’s going swimmingly. It’s the absence of pain. You have this feeling that, yeah, it was hard, but you can’t very often re-articulate it.

Jackie Hutter: [00:17:36] So, if I can get to folks before that that they get through that process, and everything is going swimmingly, I can get them to think about, “Hey, this is really hard. This is something I need to write down for Jackie, because Jackie said this is important to the story.” And for a lot of my clients, and this is where a lot of the noise comes about patents, you say, “You cannot patent this,” or “It’s really hard to patent that because of what the Supreme Court has done.” And I can’t change what that is. And there are many people who spend an inordinate amount of time trying to pull out threads from something that is frankly unintelligible because the rules are — There really are no rules these days that can’t be articulated to a client in a way that can help them plan and strategize. In other words, it’s left up to the lawyers and, hopefully, it’ll all work out.

Jackie Hutter: [00:18:29] Well, there is one rule that has been made by the courts that is clear and unambiguous in the realm of software technology, all this stuff where all the noise is out of Silicon Valley and here, actually, in various areas. Attorneys will say, “Well, let’s just try and see what happens.” Well, that’s the wrong approach because the courts have been extremely clear that, yes, you may not really be patentable, unless you can show more. Well, you know how to show more. You show more by telling a story, and why it was so hard, and why it’s meaningful.

Jackie Hutter: [00:19:08] So, especially for my clients that are in the software-related areas, I have several of those, we work really hard to be able to articulate that story in our patent application, which is very different from what they’ve done before, unquestionably, and it’s very different from other folks. They haven’t gotten it — The patent attorneys who do this every day haven’t gotten the message that you have to tell a story.

Michael Blake: [00:19:32] What you’re describing, try and see what happens, it’s like when I ask my teenage son to ask his mother a question. Then, he yells up the flight of stairs. It’s like, “Well, I could have yelled. I’m not that old yet.” And you don’t necessarily need to be a lawyer to sort of try something and see what happens.

Jackie Hutter: [00:19:51] But, also, there’s no accountability. There’s so many ways to blame other things, other externalities than your skills and abilities as a patent attorney on why something doesn’t work out. Even attorneys I really respect, they just seem to just shrug their shoulders sometimes and say, “Hey. Who knew? You never know what’s going to happen when it gets in the patent office.” Well, I know that’s not the case because while I can’t guarantee a patent is going to grant for any of my clients, by doing it this way, we consistently get broad patents out of the patent office in a very accelerated framework. But, again, we do the work, the hard work, on the front end, which effectively lays the groundwork for getting something through the office in the way we want it to get.

Michael Blake: [00:20:37] So, let’s drill down then. Let’s say we’ve sorted it. So, actually, there’s a bullet point that, I think, needs to be made here is that getting somebody like you involved early in the innovation process really helps. It sounds like it’s harder if I just say, “Hey, I just gave birth to an innovation. Let’s go patent it.” If you think that a patent is on the table, prepare for that along the process. Is that right?

Jackie Hutter: [00:21:01] I would not say if a patent is on the table. I would say that if you’re a company that’s bringing innovative technology to a customer to solve a long unmet need that you’re investing time, effort, and resources in that, then you need to bring somebody like me in at an early stage to, at least, lay the framework for what you need to know, what you need to be looking for. Waiting to the end is typically too late. It’s not always too late, but if you’ve already made all of your decisions, it’s kind of hard to go back if you’ve made the wrong decision.

Jackie Hutter: [00:21:41] And so, having that knowledge from the front end can be invaluable. And to that point, I’ve got clients that I’ve been working with on an ongoing basis, and they know to call me. One of the reasons why they’ll call me, and I’m not with them every day, but they know how important this is to their business strategy is, we’re going to go out and talk to a customer. And this customer does X. And we want to have, at least, a short meaningful patent application on file before we go talk to these folks because they know that, because I’ve trained them, they won’t to have a patent application on file today, so that if it works, they’ll be arguing in six months about how much their already-filed IP is going to be licensed for as opposed to arguing about who owns what was successful.

Michael Blake: [00:22:29] So, we’ve gone through that process. Now, are we close then to filing an application, telling the government that we’d like a patent. How does that-

Jackie Hutter: [00:22:38] So, you file the application, and you might want to talk about costs. We can come back to that, but we got the patent application on file. The typical process is to file the slow boat through Alexander — Is it? Arlington to get the patent. And it could be anywhere from two, to four, to five years based upon the technology. And, for my clients, that’s not an appropriate timeline for most cases. Some cases, we do file during that because it’s for non-leading-edge stuff but what I had incredible success for.

Jackie Hutter: [00:23:15] And unfortunately, it doesn’t seem to be in the toolbox of a lot of attorneys out there. I don’t know why. But there is an accelerated process. You pay a little bit extra on the front end to file a patent application. It goes in a special lane, if you will, in the patent office. And we have consistently begin the examinations within about six months. And if we do the front-end work correctly, we get allowances in less than a year. That is incredibly meaningful for early-stage companies, small companies that are looking to accelerate the value.

Jackie Hutter: [00:23:48] For larger companies where patents really aren’t meaningful because they’re not going out of business if they screw up their patents or don’t get a patent, then the longer path is fine. But specifically, for my clients, we do that. The examination process is back and forth. It’s like the patent examiner says, “You’re not patentable.” We say, “Yes, I am patentable.” And what often happens is that the attorney is incentivized to get an allowance. And so, they’ll amend the claims. And if they’re not absolutely talking very closely to the business team of the client, what happens far too often is that the client is left with a patent that doesn’t cover their product or anybody else’s product for that matter because you’ve got a patent, but you don’t have valuable patent, and the attorney has done exactly what you hired him to do.

Michael Blake: [00:24:39] Yeah, which is to get a patent. Okay.

Jackie Hutter: [00:24:42] Get a patent. Yeah.

Michael Blake: [00:24:42] So, good. So, I think that covers the process. And you touched upon this. It’s important. It’s a business decision. Can you talk about a range of what we’re talking about in terms of fees to obtain a patent?

Jackie Hutter: [00:24:56] Sure. I basically manage outside counsel a day. And that’s a big change than what I used to do because there’s really no transparency to legal fees if you’re not talking to a bunch of people. It’s to consult. Yeah, I’m a consultant. I see a lot of stuff, and I’m able to make assessments in that regard. Most of them cost far more than they need to cost. Typically, these days, I’m seeing — I’m not involved because I can keep these costs down and do it in a different way. Typically, what you’re looking at from outside counsel at a smaller firm, specialized firm, you’re looking anywhere from $8000 to $15,000 on the filing. For large firms that have different business models, you’re looking at double that. There are good attorneys, excellent attorneys at small firms, and there are lousy attorneys at big firms.

Michael Blake: [00:25:49] Same way the CPA works.

Jackie Hutter: [00:25:50] Yeah. And so, cost shouldn’t really be a driver. You should be hiring the attorney, not the law firm, but it’s the same way in your business, right. So, a lot of people immediately gravitate to a named brand firm.

Michael Blake: [00:26:03] Nobody gets fired for hiring Dentons, right?

Jackie Hutter: [00:26:06] Exactly, exactly.

Michael Blake: [00:26:08] Unless it bankrupts them. That’s a separate discussion. So, a patent is obvious. It’s a complicated process, not to be taken lightly. When do you find yourself talking people out of a patent? What are the kinds of things they say to you that sort of trigger, “You know, I don’t think a patent is right for you.” What does that look like?

Jackie Hutter: [00:26:28] So, in-and-out products. I think one of your guests today may be talking about in-and-out products. Nice business models, but they have a finite-

Michael Blake: [00:26:35] What’s an in-and-out product? I’m not familiar with that term.

Jackie Hutter: [00:26:36] Something that’s got maybe a six-month timeline, one-year timeline. I like to use the example of the endcaps in Target. Products-

Michael Blake: [00:26:45] The Snuggies.

Jackie Hutter: [00:26:46] Actually, Snuggies is a great story. Actually, I use that example. I probably could have got a patent on a Snuggie, believe it or not. It seems so obvious, but there’s a story there, right. So, you probably could have gotten something if it had been skillfully done. But there’s only a limited number of people that are going to buy a Snuggie.

Michael Blake: [00:27:06] I mean, it came and went, right?

Jackie Hutter: [00:27:08] Yeah. And also-

Michael Blake: [00:27:09] So, you don’t need 20 years of protection for a Snuggie.

Jackie Hutter: [00:27:11] But, also – and this is another aspect of that – really is Walmart going to slot to two shelf spaces for completely Snuggie? It ain’t going to happen, right. So, in that environment, patents really aren’t meaningful.

Jackie Hutter: [00:27:27] The other situation, and I use this example for folks that have products, Kim Cracks, whatever you want to call them, I ask people to walk through Tuesday Morning, which I effectively think about as the Island of Misfit Toys. You walk through Tuesday morning, and what I see is people’s 401(k)’s that had been totally evacuated because somebody convinced them that they could make a zillion dollars on their new way of doing X, Y, or Z. And the people who got that product to market, the people who patented that product, got paid. And this poor person had to sell. The only way they could make any revenue, which was far less than they invested, unquestionably, is to get it to be sold into a place like Tuesday Morning.

Michael Blake: [00:28:16] It’s like the gold rush, right?

Jackie Hutter: [00:28:17] Yeah.

Michael Blake: [00:28:18] You made money selling the axes, and the shovels, and the sifting pans but not actually digging for gold.

Jackie Hutter: [00:28:22] Great example, great example. So, I want people to realize that that’s not a real outcome, a probable outcome, for when you have just a better idea. You think, it’s a better idea.

Michael Blake: [00:28:34] Now, what about the argument that because when you obtain a patent, you’re also sort of opening the kimono, right. Is there an argument to be made that, instead, trying to protect something as a trade secret just by virtue of keeping something secret?

Jackie Hutter: [00:28:48] Yes and no. It depends on how you do it.

Michael Blake: [00:28:53] Okay.

Jackie Hutter: [00:28:53] The kimono only needs to be opened. That is a real legal term, opening the kimono, but it actually falls apart when I talk about this.

Michael Blake: [00:29:01] That’s a term of art?

Jackie Hutter: [00:29:02] Open the kimono, yeah, absolutely.

Michael Blake: [00:29:05] I have no idea.

Jackie Hutter: [00:29:05] Yes, absolutely. Yeah, it goes back to the old days when it was all men. But in any event, you only have to open the kimono if your claims are related to the goods, if you will. So, if you strategically define your claims in a way that doesn’t require the secret sauce to be disclosed, then there’s less probability that that’s the problem.

Jackie Hutter: [00:29:36] So, when I talk about my software clients, my software-related clients, we’re not claiming the algorithm. Why would you do that? Because there are probably 62 other ways to do the same thing with a different algorithm, but that’s not what we’re talking about here. If you claim the algorithm or the process, you have to disclose how you do the process.

Jackie Hutter: [00:29:54] But if you’re claiming something different – For example, what the customers buy, a product – the technology enables that claimed product. The technology does not lead that product. So, you have different — The legal requirements don’t change. But because you’re setting up the question to be different, very often, what I find is that the issue of trade secret disclosure is much different when you strategically define the claims in a way that’s actually more meaningful in the long run.

Michael Blake: [00:30:29] So, as we wrap up here, I would like to invite you to maybe share a little bit of a case study. Is there a patent success story you can think of that you could share?

Jackie Hutter: [00:30:40] I have, well, a couple of recent ones, but one that I had — And they’re a little bit different. So, I’ll briefly talk about both of them. First one is a medical-related client, detection client of mine that I’ve been working with for a few years now. They came to me very early. And they have been doing some really tough research on a condition, a medical condition that if you catch it before at the right time, it doesn’t become chronic. But if you don’t catch it, then the patient suffers for the rest of their lives.

Jackie Hutter: [00:31:15] And the problem there was you have to be able to detect it, and so that you can diagnose it, but the detection was very difficult because it has to be done fairly continuously. So, you can’t have a person come into the medical imaging office once a week. It’s just not feasible in most cases. So, they’ve developed a way to diagnose it on a regular basis. Ostensibly, there’s prior already out there, but why would they be working on it if the problem has been solved? That’s a big deal for innovators. Just think about you’ve got all these people working really hard on something, that means the problem is not solved. And that was the case here.

Jackie Hutter: [00:31:53] And they’ve got some really keen insights, amazingly smart people. They’re great technologists, great entrepreneurs. And it’s been a collaborative process. It’s always a collaborative process. And we were able to get them two patents within just shy of a year and a half. And after a year of really having cracked the code on this particular innovation, they obtained very substantial licensing revenue, a license agreement from a company that makes a medical device that has kind of been a moribund market.

Jackie Hutter: [00:32:29] And my client’s technology allows more sales to be had of an existing medical device that was pretty much a flat market. And they’re thrilled. And, also, importantly this revenue is not investor revenue. They didn’t have to give up any of the company to get this revenue. But they were very strategic. It was all about customer discovery, what the customer needed, why the problem existed, and the continuous collaboration with me to make sure our patents covered that.

Jackie Hutter: [00:32:55] The second example, and this is a quick example, but it’s a fun example because it tells me that I’m doing things right, I’ve been working with a startup technology company, actually, since the day they were they were founded: the CTO, a PhD, and a CEO. And we’ve been strategically working to generate IP protection. It turns out patents are very important in this space. We can tell that because there’s lots of patents in this space. It’s got a pretty obvious signal. And they have been getting the attention of the established companies in this market because of the patents because patents are technology-virtue signaling, right. I’ve got patents. I’m doing something different. So, that differentiates them from the other startups out there. But, also, that client is now going through Series A. And I found out that there was a bidding war between two VCs over the term sheet. And I found out the reason that-

Michael Blake: [00:33:52] Is it an Atlanta company?

Jackie Hutter: [00:33:53] It’s an Atlanta company, yes.

Michael Blake: [00:33:55] Two VCs bidding over an Atlanta company?

Jackie Hutter: [00:33:55] Yes, exactly, exactly. They were Atlanta VCs.

Michael Blake: [00:33:58] That’s urban legend.

Jackie Hutter: [00:33:59] Yes. It’s this truth. But how I found out about it was because the losing VC asked for my name, and they’re hiring me for one of their portfolio companies-

Michael Blake: [00:34:09] That’s good.

Jackie Hutter: [00:34:10] … which is great. But in this case, IP didn’t drive all the value. The technology and the validated business model for my client absolutely did that. But augmenting that with IP that actually covers what the customer cares about was a definite, definite plus to that valuation.

Michael Blake: [00:34:32] So, Jackie, I’d like to get a concluding thought out of you, kind of a 30-second sound bite. Most important to think about when deciding whether or not to get a patent, what do you think that is?

Jackie Hutter: [00:34:46] So. patents really matter. When they matter, they matter a lot. And being able to understand when and when that isn’t. And if it is, how to go about getting what you need in order to grow that company value, either in revenue or an exit, is the crucial first step to any patenting process.

Michael Blake: [00:35:13] Well, this is great. So, how do our listeners find you? I’m sure they’ve listened to us for the last, whatever, half an hour or so. They’ve fallen in love with you, as they should. How do they find you if they want to ask from ask you for more information?

Jackie Hutter: [00:35:24] Well, they can see me driving around Atlanta in my red Mustang convertible with the license plate that says, “I’m a lawyer,” or they can find me online at The Hutter Group. That’s H-U-T-T-E-R group.com. And more preferably look for my writings out there. I’ve been blogging for over 10 years – actually, 11 years now – about these topics. I’m passionate about them. And more importantly, I’m passionate about people learning about the patent process and why it matters before they come and talk to any patent expert, me or anybody else for that matter.

Michael Blake: [00:35:59] All right, terrific. Well, that’s all the time we have for today’s episode. So, we’re going to wrap up today’s program. I’d like to thank Jackie, again, for coming on, Jackie Hutter, for joining us and sharing her expertise with us. I think we’ve learned a lot, and there’s a lot to sort of unpack. So, the nice thing about podcasts, you can pause, rewind, play again. We’ll have a transcript posted as well. I have show notes posted.

Michael Blake: [00:36:21] Next week, we’ll be exploring a new topic. So, please tune in so that when you’re faced to making your next business decision, you have clear vision when making it. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company, and this has been the Decision Vision Podcast.

Tagged With: customer discovery, Dayton accounting, Dayton business advisory, Dayton CPA, Dayton CPA firm, Decision Vision, Decision Vision podcast, Decision Vision podcast series, global patents, Intellectual Property Law, intellectual property protection, Invention, Inventions, IP law, ip protection, Jackie Hutter, Michael Blake, Mike Blake, patent application, patent attorney, patent law, patent search, patent value, patented invention, patented technology, Patents, Technology, The Hutter Group, US Patent Office

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