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Decision Vision Episode 143: Should I Learn Another Language? – An Interview with Lýdia Machová, Language Mentoring

November 18, 2021 by John Ray

Lydia Machova
Decision Vision
Decision Vision Episode 143: Should I Learn Another Language? - An Interview with Lýdia Machová, Language Mentoring
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Lydia Machova

Decision Vision Episode 143:  Should I Learn Another Language? – An Interview with Lýdia Machová, Language Mentoring

Lýdia Machová of Language Mentoring says that you don’t have to be a genius to learn multiple languages. You only need to be motivated and use the right tools. On this edition of Decision Vision, Lýdia and host Mike Blake discussed the ease of learning a language in the internet age, methods that work and don’t work, what it really takes to succeed at learning a language, and much more. Decision Vision is presented by Brady Ware & Company.

Language Mentoring

Language Mentoring is Lýdia’s way of guiding anyone on their language learning journey – whether starting from scratch as a beginner or trying to achieve fluency in a language that’s got rusty. The main pillars of Lýdia’s philosophy are having fun (enjoying the process), having intensive contact with the language, using effective methods, and building a sustainable system in one’s learning. The methods range from watching TV shows and listening to podcasts through learning vocabulary using the Goldlist method to learn vocabulary, to talking to oneself in order to practice speaking. Lýdia has already helped more than 10 thousand people learn more than 30 languages.

Company website | Instagram | Facebook

Lýdia Machová, Ph.D., Language Mentoring

Lýdia Machová
Lýdia Machová, Ph.D., Language Mentoring

Lýdia is a polyglot from Slovakia who has learned 9 languages on her own, without ever living abroad. In 2016, she turned her language passion into a business and founded Language Mentoring – her own way of helping people learn any language by themselves, using natural and fun methods known by polyglots. Formerly, Lýdia worked as a professional conference interpreter and interpreted several high Slovak politicians as well as international speakers such as Tony Robbins and Brian Tracy. She also organised the world’s largest event for polyglots and language lovers called Polyglot Gathering. Her TED talk has received more than 12 million views within the first 2.5 years of being online.

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Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

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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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

TRANSCRIPT

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

Mike Blake: [00:00:22] 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 owner’s or executive’s 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 when you might need help along the way.

Mike Blake: [00:00:43] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware and Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. My practice specializes in providing fact-based strategic and risk management advice to clients that are buying, selling, or growing the value of companies and intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta and also Slovakia for social distancing protocols, probably the ultimate in social distancing.

Mike Blake: [00:01:15] If you like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. And, also check out my new LinkedIn group that is called a group that doesn’t suck because they wouldn’t let me use LinkedIn in the title, but most LinkedIn groups suck, so this one doesn’t. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:44] So, today’s topic is, Should I learn a second language? And, I’m just going to get out in front of this and I will freely admit that this is something of a self-indulgent topic.

Mike Blake: [00:01:55] Language learning has been a hobby of mine for a very long time. I grew up in an environment where I was very fortunate to have exposure and training in foreign languages that frankly most people did not in the United States and it’s been a passion of mine.

Mike Blake: [00:02:13] And so, one of the benefits of the internet, believe it or not, there still are benefits of social media was, there’s been no better time to be somebody who likes languages. There’s so much material out there now. You can learn so much about language learning. You can learn so much about a particular language and you can engage with languages to an extent that’s simply when I was growing up many centuries ago was simply not – was not available.

Mike Blake: [00:02:43] But I do think that that the discussion of learning a second language does have applicability in business. I can tell you that in my own dealings with others who weren’t perhaps as comfortable in English as I am and speaking in other languages that it delights somebody when you make an effort to make their life easier and communicate with them, especially if it’s a language they don’t expect somebody like me to speak. But that may be a podcast for a different time.

Mike Blake: [00:03:16] According to the data that I found, 20% to 30% of Americans can converse in more than one language. I imagine most of those are immigrants. I imagine if you’re actually born here, I bet that statistic is much lower, but it’s compared with 50% to 60% of Europeans and I think that has a lot to do with the fact that in most European countries, you take a two-hour car drive and you’ve crossed three borders.

Mike Blake: [00:03:38] Bilingual workers in the United States are 5% to 20% more than their single-language counterparts, and bilingualism is associated with brain and mental health benefits as well, including the delay of the progression of Alzheimer’s disease, as well as fighting anxiety and depression. The most popular second languages in the United States are Spanish, German, and French, the usual suspects.

Mike Blake: [00:04:03] And so, I am so delighted to have joining us today, you know, really one of the neatest, I would say, language thinkers. We’re going to talk about why I put it that way in a minute. I discovered her on a TED Talk that I think about a million people or two million people have probably watched. So, that’s pretty darn good marketing, but also other YouTube videos that she’s done and not just about languages themselves, but the process of learning a language. And I think that that’s so important because learning a language is a challenge, but I think it’s often assigned a greater challenge than it necessarily needs to be.

Mike Blake: [00:04:45] So, joining us today from Slovakia is Dr. Lydia Machova of Language Mentoring. Lydia is a polyglot from Slovakia who has learned nine languages on her own without ever having lived abroad, which is hard to believe. Her English is just outstanding, better than mine.

Mike Blake: [00:05:02] In 2016, she turned her language passion into a business and founded Language Mentoring, her own way of helping people learn any language by themselves using natural and fun methods known by polyglots. Formerly, Lydia worked as a professional conference interpreter and interpreted several high Slovak politicians as well as international speakers such as Tony Robbins and Brian Tracy.

Mike Blake: [00:05:26] She also organized the world’s largest event for polyglots and language-lovers called Polyglot Gathering. And that’s on my bucket list to get over to Europe and do at some point.

Mike Blake: [00:05:34] Her TED Talk has received more than 12 million views, excuse me, I underestimated it by a factor of 10, within the first two-and-a-half years of being online.

Mike Blake: [00:05:44] Language mentoring is Lydia’s way of guiding anyone on their language learning journey whether starting from scratch as a beginner or trying to achieve fluency in a language that’s got rusty. The main pillars of Lydia’s philosophy are having fun, having intensive contact with the language using effective methods, and building a sustainable system in one’s learning.

Mike Blake: [00:06:04] The methods range from watching TV shows and listening to podcasts through learning vocabulary using the gold list method to learn vocabulary to talking to oneself in order to practice speaking. Lydia has already helped more than 10,000 people learn more than 30 languages.

Mike Blake: [00:06:20] Dr. Lydia Machova, welcome to the program.

Lydia Machova: [00:06:23] Thank you, Mike. I’m very happy to be here.

Mike Blake: [00:06:28] You know, there are lots of people who teach languages out there, but quite frankly, I don’t know anybody that has branded themselves as a language mentor. So, tell our audience, tell me what is language mentoring and how is that different from a language teacher?

Lydia Machova: [00:06:45] Right. So, it’s a term that I introduced. When I started in 2016, I was looking for someone doing what I considered to be different from language teaching, helping people to learn languages, and no one was doing it at that time. So, I said, “Okay, I’m going to call myself a language mentor.”

Lydia Machova: [00:07:00] And basically, the biggest difference is that I don’t teach anyone a language. I am not a teacher, so I never cover any grammar points with anyone. I don’t test anyone vocabulary. That’s very different from what I do because I teach people languages, which I don’t even speak, so to say.

Lydia Machova: [00:07:20] I help people learn any language by themselves. I always put a lot of stress on this themselves. No one can ever teach you a language, give it to you on a platter. You need to spend some time with it. And, I help people find the best methods and the best system to do it in a way which is enjoyable.

Mike Blake: [00:07:37] So, and I’m going to approach this conversation from an American perspective because that’s who I am and that’s who most of our audience is, I think. And, you know, I can tell you that among Americans who are not people who study languages a lot, they view people like us who are multilingual, especially those of us who are self-taught as opposed to having lived in a place where you learn five or six languages because that’s the country you live in, like India or something, they think we’re geniuses. Are you a genius or people like us geniuses because we’ve learned a couple of extra languages?

Lydia Machova: [00:08:14] Definitely not. I do not believe in that. Not any special talent or anything like that. We have a special knack. We like something that most people don’t. I’ve always considered myself as someone who simply loves learning languages, and that’s why I’ve spent a lot of time with them. But just like that, I could fancy gardening or computers or anything like that, and I would spend more time with it and I would have results in that area, right?

Mike Blake: [00:08:42] Yeah. Doesn’t it come to at the end of the day? And, I know you emphasize fun in your approach to language learning. At the end of the day, doesn’t a lot of it have to simply do with if you like doing something, you’re more likely to devote more time with it, be more focused, as opposed to viewing it as a job or a chore, or you’re forcing yourself to have to do it, and you don’t like it, and therefore it’s just not going to be as effective.

Lydia Machova: [00:09:08] Yeah. Exactly. And I believe this is a really, really strong factor. And, actually, that also answers the question why most people fail in language learning. Because when you look at the process that they have tried to learn the language, it’s usually not much fun, is it?

Lydia Machova: [00:09:22] I mean, when we look at the school methods, I know I didn’t enjoy learning languages at school using the traditional methods. But I have seen people now, as in my job as a language mentor, where this can really change. Because if you show someone a different approach to language learning, which can be fun for that person, suddenly they say, “Oh, why, why hasn’t anyone told me this? For 15 years, I’ve been trying, struggling to learn a language. I never enjoyed it, so I never had any results with it. Now that it’s fun, it actually works.” So, yes, I think this actually applies generally to anything, not just language learning.

Mike Blake: [00:09:59] And, I think and I’m curious as to your opinion, but I think maybe that desire might be a little more important for foreign language learning or, yeah, learning, which you can use that term, than in many other fields of study because when learning a foreign language, failure is a constant companion. Right? Mistakes are a constant companion. And, many of the mistakes are public, right?

Mike Blake: [00:10:28] If I mess up, if I make a mistake in a math problem, nobody knows except for me and my teacher. If I make a mistake in a language and I’ve made plenty of them that I wish I could have back, it’s out there and it’s public and it’s socially embarrassing. And, the human mind is hardwired to avoid those things, right?

Mike Blake: [00:10:49] So, doesn’t that mean that there has to be kind of an extra incentive or an extra way to make it fun to make it worth that vulnerability, to make it worth that the failure that is a necessary part of the learning?

Lydia Machova: [00:11:05] That’s a very interesting take, and I agree. It is more embarrassing for people to make a mistake when learning French than learning this and learning math.

Lydia Machova: [00:11:16] But I’m thinking this – I think this really has to do with one’s approach to making mistakes in general, in learning anything. And, I believe this is a problem that the school system again has taught us. Making mistakes is bad because the teacher is there to test you. And if you fail the test, if you make a mistake, then you will get a lower grade, right? And, that means that you are, let’s say, in inverted commas, but they are worth less or something. That’s what the students get, right, the feeling from it.

Lydia Machova: [00:11:46] So, obviously, they want to not do that because they don’t want to get bad grades and feel inferior in a way. And, I believe this has to change in the mindset of anyone trying to learn a language. And, just as you said, you need to embrace the fact that making mistakes, that is really what you want to do. Make as many mistakes as you can because that’s how you improve, right? If you don’t practice, you will not make any mistakes, but you will not learn.

Lydia Machova: [00:12:12] So, language learning really is a skill. It’s a skill that needs to be trained. And, just like any other skill, whether it’s playing the piano or doing any sports or anything, when you start working with it, when you start doing it, you will definitely make many mistakes. But that’s how you learn and you get better at it.

Mike Blake: [00:12:31] So, let’s dive in to, I think, what may be the most important question from a business perspective, and that is why learn a foreign language and in particular recognizing that. I happen to be fortunate. I was born in a country where my native language is one that is effectively the global trade language, right? Someday it might be Mandarin, but for now, it’s English. And so, a question that will come up here is, well, isn’t everybody that matters going to speak English and they’re going to speak it well enough so why do I need to devote my time to this? What’s the answer to that?

Lydia Machova: [00:13:13] Well, yes, you are lucky. If you were born speaking English and that is currently the lingua franca, the international language let’s say, yes, you are lucky, and it’s probably you are not that motivated to learn other languages. And, I think that’s okay for someone who doesn’t come in contact with people from other cultures.

Lydia Machova: [00:13:32] If you’re living in your little town and you don’t interact with people online or live and you plan to stay all your life in that English-speaking country, then, yeah, it’s okay. I don’t think anyone, everyone needs to learn a language at all costs.

Lydia Machova: [00:13:46] But if you do interact with other cultures, then just like you said, it makes a huge difference if you show even a tiny bit of interest in the other person’s culture, which definitely has to do with the language itself. So, even if you learn some basics of the language, you can actually go to great lengths with that.

Lydia Machova: [00:14:07] But personally, I’m a promoter of learning a language to fluency. So, not just basics of many different languages to impress many people in a two-minute conversation but what I try to do is to learn a language to a comfortable fluency level where I can really use it. I can read any book, talk to anyone, watch any movie. And that gives me immense possibilities in my life. But I understand that if someone is stuck in a little town, in an English-speaking country, then that’s a different scenario.

Mike Blake: [00:14:36] So, an interesting trend that I have noticed is, during the pandemic, and I don’t know if this is a cause or they’re simply a coincidence, but more people seem to have an interest in learning foreign languages now, which I find ironic because the opportunity to travel was closed, making it less likely that you would encounter somebody where a foreign language would be useful. Yet, many people, I think, who never would have considered trying to take on the challenge of learning a second language have chosen to do so during the pandemic. And, I’m curious, A, have you noticed something similar? And if so, do you have any kind of ideas as to why that might be?

Lydia Machova: [00:15:27] Yes. I have noticed that. We have noticed a greater interest in our courses. And, I think it’s not because people would want to use the language right away when speaking to foreigners, but maybe because they realize they know on some level that in order to speak a new language, you need to give it more time, right? And it seems like a never-ending process, and you never have time for it because you are so busy doing your everyday life. And so, when COVID came, people started to think, “Well, how could I use this time? I’m at home. I could do something useful.” There were so many videos out there, right? People calling to others, “Okay, do something with your life, learn some new skills.” And, I think for many people, the language has been probably on the backburner for some time and they have wanted to learn it, but they never had the time, right?

Mike Blake: [00:16:07] Right.

Lydia Machova: [00:16:17] I think this is the natural way of looking at it. So, now that people have time, they wanted to spend it with language learning, which I think is cool.

Mike Blake: [00:16:27] An observation, excuse me, that’s often made is that children learn languages much more easily. And, there’s a perception that one can be too old to learn a foreign language that if you’re at my old age of 51 years old, I’m too old to learn a new language. Is that true? Is there something to that or there’s a significant benefit to being younger, even very young, and does it create a big obstacle if you’re older?

Lydia Machova: [00:16:58] It’s definitely not true that someone is too old to learn a language. But it’s a very convenient excuse, right, for people who have tried a little and they found, “Oh, this is quite difficult. Maybe I’m too old. Okay, I will keep telling everyone I’m too old to do that and I don’t have to explain myself why I don’t speak other languages.” Right?

Lydia Machova: [00:17:15] I know for sure that this is not right because this is not true because I have met people at the polyglot events that you’ve mentioned at the beginning, someone who has started to learn languages in their 60s and I had a conversation with them, with him, in at least six or seven languages and he was very good at it. He was fluent and he was, when I met him, he was 72 or 73, and he just got so excited about language learning. He couldn’t stop learning new languages, right?

Lydia Machova: [00:17:43] And then, I asked him, “Well, why start so late? Why in the 60s? Why didn’t you do it earlier?” And he said, “Well, I didn’t know about the amazing possibilities and they weren’t there when I was younger.” Just again, as you mentioned.

Lydia Machova: [00:17:43] So, this only proves to me that it is possible if the person is really interested in doing it and spending time with the language obviously. It doesn’t come within a week or a weekend. Language learning takes its time. But if you dedicate the time to it, then you can achieve the results at any age.

Lydia Machova: [00:18:11] At the same time, I have to say that obviously children are more able or they learn quicker. But it’s not just languages, it’s anything, right? This is a natural thing. This is how our brains work. They are like sponges when they are very, very young, and then it gets a little bit more difficult. But there is definitely not an age after which you wouldn’t be able to learn a language at all.

Mike Blake: [00:18:36] Now, you touched on something, and I want to move into this now because I think it’s really important. And, that is, one of the things the internet and, I believe, social media has done is that it’s made it possible to have an outlet for a language in a way that was not possible when I was learning, when I was studying languages at first in the 1980s. Right? You know, there might be five-year-old magazines in the library and some old tapes or even records, Pimsleur came out on records initially, and a foreign language bookstore or something. But nothing in the order of today, whereas one of the languages I’m learning now is Swedish and I can walk out and I can use it today. I can engage on social media. I can listen to podcasts. I can watch anything that I want. And, you know, talk about that, you know, does the fact that we have the opportunity to engage in foreign languages does that lead to a greater interest and even a greater benefit of learning a new language?

Lydia Machova: [00:19:46] I think so, yeah. I mean, I was born in ’89, so I cannot say how it was in the ’80s or ’70s learning a language, but I think it would be very difficult. I cannot imagine how I would do it, even how I would go about doing it and learning a new language. But I also think that if people didn’t have so many opportunities to travel and to interact with other people, then obviously the motivation was a lot lower.

Lydia Machova: [00:20:12] And, I’m speaking of someone coming from Slovakia. We were a communist country at that time. You could not travel anywhere. The borders were closed, right? You could go to Russia or Ukraine, and that was it. So, no one really was motivated to learn English or some other Western languages.

Lydia Machova: [00:20:29] So, yeah, I think this is very natural. But I also look at it from the point of view of the process of the methods, how to learn a language. I think if someone just had one book available at the library with some tapes that go with it, that must have been really boring. I personally hate this type of learning because you listen to a short recording. It’s usually very artificial. It’s nothing, nowhere close to real-life conversations.

Lydia Machova: [00:20:59] And if you compare it to today, we have, I mean, just YouTube is the immense source of materials for any language. I mean, I used YouTube to help me learn Swahili, right?

Lydia Machova: [00:21:10] Any language that all you can have any content you like. It can be about a topic you’re genuinely interested in, and you don’t only listen to it because you’re supposed to practice, you’re listening right now, but because you actually want to learn about this interesting topic and you can see how much you understand. And it’s such a fascinating process when you are interested in the topic, right, and you listen to a recording, you’re still just a beginner, you only get a few words. But then you keep on listening and working on your language, improving your vocabulary, getting to know the grammar, and in a few months, you can actually start understanding whole pieces of the video. It’s such an amazing, fascinating process that I think people who were learning in the ’80s, ’70s just couldn’t get.

Mike Blake: [00:21:57] So, you mentioned that you learn Swahili and, of course, you know, nine languages. Somebody listening to this podcast may now be intrigued about learning a second language. How would you go about deciding which one to pick? I mean, there’s so many of them. How do you decide which one to learn?

Lydia Machova: [00:22:23] I would definitely say you need to have a solid reason for learning that language. Because if you pick a language randomly, like, “I think it would be cool to speak whatever,” right? Then you will have to put a lot of effort into something which doesn’t really enrich you in any way, right? You need to know why you want to learn that language or where you will practice it, how you will interact. As you said, you can use Swedish on social media.

Lydia Machova: [00:22:49] It can be just a hobby of yours, so you don’t need to necessarily have something to do with Sweden or the language that you want to learn. But you need to find it interesting to actually use the language in practice because otherwise why bother? Why learn the language at all?

Lydia Machova: [00:23:06] So, I personally had a reason to learn all of my languages, and some of the reasons, most of the reasons, were traveling. For example, I really wanted to do the Trans-Siberian Express, from Moscow to Mongolia. And, I said if I do this, I only want to communicate in Russian the whole time. I want to have a full experience, not be a tourist, smiling politely and hoping someone speaks English, right? I wanted to have genuine conversations with the locals. So, I spend two years learning Russian. And then, I took the trip and it was the most amazing trip in my life.

Lydia Machova: [00:23:39] So, yeah, definitely have a reason to learn a language. So, if someone is listening to this and thinking, “Hmm, I might learn a language just because.” I would actually say think twice or think how would that language enrich you? And if you have a strong reason, I believe you can get it to fluency. If not, if it’s just like I can give it three minutes a day, well, that will not work. You will not learn a language with three minutes a day.

Mike Blake: [00:24:06] So, yeah, I’ve never done the Trans-Siberian railroad, but I lived over there for a number of years. That’s another bucket list thing. That has to be an amazing experience, but anyway.

Lydia Machova: [00:24:22] It is.

Mike Blake: [00:24:22] So, you talk about fluency – actually, there’s one other question I want to ask before I get into that, and that is, you know, in business there may be something of a conflict in terms of which language to study. There may be a language that you want to study because it will help you in business. But that may not necessarily be a language that you’re interested in because you have an interest in the culture or interested in other things that are connected with the language.

Mike Blake: [00:24:49] So, I’m curious, have you mentored people that maybe kind of felt like they had to learn a language for business, but their heart really wasn’t in it? Maybe, there’s another one that wasn’t as useful immediately, but that was really – you know, maybe they had to learn Spanish, but they wanted to learn Finnish or something, right. Have you encountered that? And if so, how does that work? Are there people that can sort of overcome the feeling like they have to learn a language for business or does it have to be more organic to really be successful?

Lydia Machova: [00:25:26] Yes. So, my answer in that question, I have obviously met a lot of people. This is actually quite a common problem. “I feel I should improve my German because I have learned it at school and it’s useful and, you know, I want to put it on my CV, but actually, you know, my heart calls me towards Italian or something.” In that case, I tell those people to go where their heart calls them because you cannot really trick your mind.

Lydia Machova: [00:25:54] If you are not genuinely interested in learning that language, you can do whatever you want. You can have the most effective methods, but your brain is just not interested, right? I believe learning is a very natural process, and our brain wants to learn stuff that it finds interesting and useful for life.

Lydia Machova: [00:26:12] So, if you feel you should and maybe, you know, like kids at school, my parents want me to learn the language and it will be useful to me one day but I have no idea how right now, then it just doesn’t work, and you will not really pick up any of that language.

Lydia Machova: [00:26:27] So, that’s one way to put it. I would say start with the language that you really want to learn because then you can see what an amazing progress you can make in a much shorter time, and I believe that you will get so interested in the process of learning the language that you can then easily apply it to learning other languages that you will need later on in life. Right?

Mike Blake: [00:26:47] Right.

Lydia Machova: [00:26:48] But also, so if someone has a situation where they really need to learn that language, it would really help them and they cannot quite get interested in that, I would say work on making it interesting for you. And, I can use my own example. Speaking of German, that was my second language. So, my first language was English when I was 11, and then we added another language when I was 15, German, at school. And I just hated it for the first two years. I thought it was the most boring language in the world. I didn’t like the sound of it. It was too complicated. I just didn’t like it. I got good grades, right? I could learn those words and learn some grammar, but my heart wasn’t in it.

Lydia Machova: [00:27:28] And then, I realized that I wanted to become an interpreter and I will need two languages for that. And, now I’ve already spent two years learning German, so German should be probably the other one. So, I was thinking, how can I make this more fun? How can I make it more interesting? And that’s when I actually started developing the methods that I now teach people. And, for example, with German, I started to watch German TV massively, half an hour every single day, and I didn’t understand almost anything at the beginning. But I got into it, and then I started watching some sitcoms that were repeated on TV and that got me interested. And, it was just fascinating for me to see how I fell in love with the language just simply by spending time with it, by using materials which I found interesting, by being hooked to the content, right?

Lydia Machova: [00:28:20] So, you can change your attitude to the language to sum this up. But I think that you cannot really force yourself to learn a language that you are not interested in and you do not find any joy learning the language.

Mike Blake: [00:28:36] I have my own sort of language abandonment story, and I’ll probably come back to it at some point as a matter of personal pride. But for a while, I was learning Dutch, and for whatever reason, Dutch and my mind just did not click. Everything was such a struggle. And I think it’s because Dutch is so close to English that I couldn’t get my mind off of applying English to Dutch. And, you know, I never got the word order right. And, I can explain to the grammar, I could never get the word order right. And, at the end of the day, I wasn’t so interested in Dutch culture. I didn’t have so much interest in doing the business in the Netherlands, especially because that’s one of those countries where everybody really does speak English quite well, so, and they’re happy to do so, that I just could not sustain the motivation.

Lydia Machova: [00:29:30] Yeah. I totally understand that. And, actually, again, you are not the only one. I have so many friends who told me that they found it extremely difficult to practice their Dutch in the Netherlands because everybody replies in English and the Dutch find it a nice gesture like, “Oh, I see you’re a foreigner, so I’m going to switch to a language which you are comfortable with.” But then my friends, polyglots, wanted to practice the language, right? They came to the country to practice and they felt really heartbroken. It’s like, “Oh, is my Dutch so bad that you switch to English?” But that’s because it’s so natural for them to switch to English, right?

Mike Blake: [00:30:05] Yeah. The Scandinavians are the same way. I probably learn Swedish more by not actually going to Sweden because if I’m engaging on social media, it’s just there’s no incentive for them to switch the language, right? But if I try to speak Swedish in Sweden, they’ll look at me and they’ll say, “Well, you’re kind of cute, but let’s not do this.” Right?

Lydia Machova: [00:30:26] Sorry. That just proves the point that you don’t need to travel to that country to learn it. And as you said in your case, maybe you even shouldn’t, because that can be counterproductive, right?

Lydia Machova: [00:30:40] With the internet and with the immense possibilities we have today, you can create that country in your mind, right? You can put on podcasts and YouTube videos, and you can have people speaking in that language to you in your ears all day long. So, yeah, you really don’t need to travel to another country to learn the language.

Mike Blake: [00:31:01] So, you mentioned a term that I want to explore with you because I think, to me, it’s a very sensitive term, almost an explosive term in learning a language, and that is the term fluent or fluency.

Mike Blake: [00:31:21] I learned years ago or I decided years ago I was never going to tell somebody I was fluent in a language because somebody will always come along that knows it better than I do. And, it served no useful purpose for me. And so, I tend to use the term I’m comfortable in a language or I can generally speak it without a translator unless it’s something that, you know – if I were representing the United States in a nuclear arms discussion with Russia, I would have a translator regardless. It’s too important to miss that, right? Even though there’s nothing I couldn’t do in that language if I wanted to.

Mike Blake: [00:32:03] But, but fluency, you know, the first question I receive if it comes up that I’ve learned a language – fluent – are you fluent? How fluent are you? I’m not even sure you can say how fluent are you where it’s sort of how pregnant are you.

Mike Blake: [00:32:20] So, I’d like you to comment on how you see the word fluency. What does it mean to you and do you sort of have the same – do you have a similar experience with the word that it can be almost a dangerous word in learning languages, the term fluency?

Lydia Machova: [00:32:38] That’s a very good question, and I really love this metaphor about how pregnant are you. Actually, I think we can explain this using this metaphor because with language fluency, just like you said, there is – we kind of tend to think about it that there is this highest level of speaking that language. And if you are not there yet, you shouldn’t call yourself fluent, right? You shouldn’t tell other people that you know this language already.

Mike Blake: [00:33:04] Right.

Lydia Machova: [00:33:05] But this is just like with a pregnant woman. Is a woman pregnant when she’s one hour before giving birth? Probably not, right? You see her with a belly, so you will say that she’s pregnant even earlier. But in the first three months or four, she doesn’t really show, so, right?

Lydia Machova: [00:33:22] This is really quite similar to learning a language. So, when the belly starts showing, coming back to this metaphor, that’s when you are gaining fluency. And, I believe there is a certain level when you are really comfortable using that language, although you are still making mistakes and this is perfectly fine. Fluency doesn’t mean that you don’t make any mistakes, that you know every word and you understand everything.

Lydia Machova: [00:33:52] For me personally, this is my definition of it. It means that you can easily have a conversation with a native speaker of that language, and it is not unpleasant or painful for the other person to have this conversation with you. Because a native speaker can have a conversation with a beginner and be very patient, right? But they need to be very careful about how to express themselves and what words to use, and then this learner will ask them, “Well, can you please repeat it? Can you say it in a simpler way?” This is not a very natural and nice conversation to have, right?

Lydia Machova: [00:34:24] So, I personally try to achieve the level where I can have a nice fluent conversation and I can read stuff in that language, which was meant for native speakers. So, not some simplified text, but normal textbooks, usually nonfiction, that is understandable to native speakers. If I can understand it, if I can read the book and it’s not painful for me, it’s actually enjoyable, that’s how I know that “Okay, I got to this. I got to this level and I can now use the language in practice.” Right?

Mike Blake: [00:34:57] Right. So, in Europe, of course, as you know, but our listeners may not, there’s a testing system to determine your level of facility with a language A1, A2, et cetera. I forgot what it’s called, but I know it goes all the way up to C2 as my understanding. In your mind, what is your experience with that system, and how valid is it as a measurement of your command of a particular language?

Lydia Machova: [00:35:27] All right. I believe it’s quite unfortunate, actually. It’s called the European Framework of Reference for Language Learning, and it’s very heavily used in here, in Europe. So if you ask someone in the street, they will tell you, “Oh, my French is B1 and I’ve got a certificate of B2.”

Lydia Machova: [00:35:47] But again, it’s unfortunate because it kind of gives you the idea that what you want to achieve is the highest level, the C2. That’s when you can say that you can stop learning the language and you don’t need to work on it anymore, right?

Lydia Machova: [00:36:01] So, just to clarify, there are six levels. A1, A2. This is beginners, just basics in the language. Then, we have B1 and B2. This is intermediate. And then, we have C1 and C2. But what most people don’t really know is that C1 and C2 levels are for people who want to use the language professionally. That’s for translators, interpreters, language teachers. You do not need to be a C-level speaker in order to use the language comfortably.

Mike Blake: [00:36:27] Okay.

Lydia Machova: [00:36:28] So, getting back to the metaphor, sorry, these [inaudible] fluency level, that’s what I would call a B2. And, I have a nicer metaphor, maybe to explain this. Have you seen the movie Cast Away with Tom Hanks?

Mike Blake: [00:36:44] I’m familiar with it. Yes.

Lydia Machova: [00:36:45] Okay. So, he gets stuck on an island, right? And, I hope I don’t make any spoilers here, but he tries to get away from the island and he fails several times. He builds a little raft and he cannot get across the last wave because the waves further away from the island are bigger and bigger and they always kind of drag him back, right? So, he stays there for a long time.

Lydia Machova: [00:37:08] I believe this is very similar to language learning because you are trying to overcome those waves and they are very small at the beginning. That’s when you are learning your first words and everything seems easy because, you know, you learn hi and thank you and everything else. But then the waves start to get bigger. So, the more advanced you are in the language, the more difficult problems arrive. And, for you to get to a comfortable fluency level, you need to overcome that last wave so that you get away from the island and you are not dragged back towards it with the waves.

Lydia Machova: [00:37:40] And for me, this level is the B2 level. It doesn’t mean that you cannot get any further. You can always go deeper and have a better, more professional understanding of the language. But if you get to B2, you are above that, beyond that last wave, and that means that you can stop rowing. You don’t need to work on the language. You don’t need to keep learning and go to language schools and pay teachers. You are already there. You will not get dragged back towards the island to zero knowledge, to complete beginner. And, the only thing you need to do is to brush it up when you need to activate it.

Lydia Machova: [00:38:15] So, you can afford not to use the language even for several years. And then, when the occasion comes, you will say, “Okay, give me a weekend or a week or maybe a month, you know, and I will get back into the language and I’m back on that fluent level.” This, I believe, is something that most people don’t know and that’s why they try to either get to C2 or they think that they don’t speak the language yet. But this is just like with the pregnant woman, right? You are pregnant even when you are not one hour before giving birth.

Mike Blake: [00:38:47] I like that. I like that way of analogy. It takes me back to my Russian experience. I had the very good fortune to start learning Russian in high school, believe it or not, and then through college. But then I got a job in, sorry, I studied in Moscow, and then I got a job in Minsk. And, the first three months that I was there, I realized that my school Russian was not going to be enough. And in a place like Minsk, nobody spoke English whatsoever. I either spoke or starved. And, I remember for the first three months I was in bed by 7 o’clock because I was so exhausted from learning the language and the flying because I was translating it. I didn’t have the brain pathways that I was speaking it as a language. I was translating in real-time all the time.

Mike Blake: [00:39:36] And then, there is one day where I crossed that wave and I don’t know exactly when the day was, but there did come a time when I realized I was now thinking in that language. That was now – that time was a third language, and it was no longer that kind of effort. But I never thought of it that in that metaphor. So, I may borrow that.

Lydia Machova: [00:40:01] Please do. Yeah. I think it explains it well because you don’t need to achieve the highest point of a mountain or something, right? But you get to that level. And, I’m sure that it was a great feeling for you when you woke up that day and you realized, “Wow, I can speak Russian.” It’s an amazing feeling, isn’t it?

Mike Blake: [00:40:19] It was actually a great day when I realized I got home from work and I didn’t want to go to bed right away. That was the big thing.

Mike Blake: [00:40:19] So, it’s interesting. So, your definition of fluency then I think is very important because I think there’s a belief that if you don’t achieve sort of your level of fluency where you’re a professional linguist, you’re a professional translator, that therefore that you fail. But in point of fact, and again, this gets into – again, you know what your definition of fluent comfort level, whatever, you can still get a lot done in a language without achieving that level, right?

Mike Blake: [00:41:10] I think the statistic I saw was that if you learn 2000 words in a target language, you can engage in 80% of what you need to engage with, and then if it’s ten thousand words or it’s about 95%, which isn’t that much if you pick the right words, right?

Mike Blake: [00:41:26] And, is that kind of what you teach your clients that it’s not about knowing every word because even native speakers make mistakes. You know, a lot of Russians don’t fully know all the grammar rules with all the connections and so forth. Is that what you teach them to sort of set their expectations at a realistic level?

Lydia Machova: [00:41:52] Yes, yes. And, I think that many people don’t even know that there is, as you say, an attainable level that will not take you ages. We are used to, at least in Europe, we are used to learning languages all our lives, and most of the people I meet here, they will say, “Lady, I’m just – I’ve been learning English for 15 years. I still cannot speak it. What does that tell me? It tells me I’m obviously not talented. It tells me I obviously cannot learn a language because I’ve been trying for 15 years.”

Lydia Machova: [00:42:24] But then when we dig a little deeper, we realize that, well, what were the methods? How did you enjoy that process? How much time did you really spend? Because if someone goes to a lesson once a week and there are 10 people in the classroom and then they spend one lesson reading and then on one learning grammar, and then they speak every fifth lesson and they say two sentences. Well, no wonder you don’t speak the language because you haven’t practiced the skill of speaking, right?

Lydia Machova: [00:42:47] So, this is one problem that people feel that they have been learning the language forever and they still don’t have the results, but also they don’t realize that the result is actually usually very near at their stage. If they’ve been – if they’ve spent some time with the language for 15 years, then they can actually achieve amazing progress within half a year or a year if they give it maybe half an hour, an hour tops, a day, they can actually get to that fluent level and stop learning. You don’t need to keep on learning forever, so it actually saves you time, right? Rather than, if you decide to give it a little bit of your time, one hour one lesson a week for 15 years, and you feel you will never ever get there. It’s a huge difference. So, yeah, people don’t usually know about this comfortable fluency.

Mike Blake: [00:43:36] I’m really glad you brought that up because I think that point is so smart. Because when you look at it, if we tried to learn any skill, it could be computers, it could be making shoes, if the only exposure we had to it was one hour of lecture a week and hands-on experience of five minutes a week, you’d never make very good shoes. You’d never be very good with computers either. So, there’s no reason that should be different with a language.

Mike Blake: [00:44:06] And, I want to kind of pause on this a little bit because, and you’ve mentioned this before that people say they’re too busy to learn languages. I suspect you and I agree. It’s not that you’re too busy. It’s, A, you don’t know how – you don’t really understand what time it takes. And, B, you’re just choosing to do something else with your time, which is fine, right? But unless you tell me you never watch television, you never surf social media, you have time to learn a language. You’re just deciding those other things are more important.

Lydia Machova: [00:44:35] Exactly.

Mike Blake: [00:44:36] But, you know, and there’s a common, I think, misconception and I think you agree, but please tell me if you don’t, that the only way that you can – sorry, I was going to say the bad word, that you can learn a language well is through immersion that you have to live in that country or you have to be in a U.S. Military Monterey school, which is really good, or a three-month – live in a farm for three months where they only speak Egyptian or something. But that’s not really true, is it?

Lydia Machova: [00:45:10] No, definitely not. And, I believe it’s so comfortable for people to think of language learning in this way because it is easy, right? It’s like, “Hey, here’s my money. Come and teach me or bring me to your course where you will give me exactly the right material I need to have every day and walk me through your process. And after three months, I speak the language.” Right?

Lydia Machova: [00:45:34] I think that people like to approach it in this way. You need to travel because they want to maybe get rid of the responsibility for learning, right? And, obviously, it helps. I mean, if you can immerse yourself in the language by going and living in the country or being around the native speakers of that language, that’s awesome. Use it, use those opportunities. But you don’t have to in order to learn the language.

Lydia Machova: [00:45:59] And, I know so many people and actually, I’m an example of that too, that you don’t have to do it because you, as I said, you can create that environment, that language environment in your headphones, on your computer. You can look out for those opportunities to talk to people with today’s international world. Even for me living in Slovakia, it’s very easy to find native speakers speaking French or Spanish or Polish here in Bratislava, right. So, however you decide to approach this, make sure you find the right opportunities to practice the language and you can absolutely do it if you take the responsibility for doing this by yourself, right?

Mike Blake: [00:46:42] What in your mind is the most common mistake people make when setting out to learn a language?

Lydia Machova: [00:46:50] Well, it boils down to this responsibility again. They look for external resources that will feed them the language, spoon-feed them, right. They want a ready-made solution, a shortcut, something that will not cost them any energy, any time. They are willing to pay money but just do it quick, right, preferably in my sleep. And people just –

Mike Blake: [00:47:16] I was going to ask you about that. I take it you’re not a big fan of these programs that say they’ll teach you a language while you sleep.

Lydia Machova: [00:47:25] Well, I won’t say that they don’t work, but I haven’t found one that works yet. If someone comes and convinces me that this work, I’m very happy. I believe that technology has still to bring us a lot of inventions, amazing inventions, which will probably change even language learning.

Lydia Machova: [00:47:42] But so far, nothing like that has ever worked. I haven’t met a single person who would say I learned a language effortlessly. It doesn’t work because it’s a skill. You need to learn so many new words and you need to have listened to so many recordings, right, and need to have had so many conversations that it just doesn’t work. It does take time.

Lydia Machova: [00:48:01] So, most people realize this and they want the shortcut. And, usually, they look for the easiest solutions. So, they download an app, right? There are many very popular apps and they just want to give it this five minutes a day and they expect that this is how to learn a language, but it’s just not enough. It cannot work like that.

Lydia Machova: [00:48:20] So, I believe this is the biggest problem, taking responsibility for the learning and approaching language learning as a skill that requires some time.

Mike Blake: [00:48:29] We’re talking with Dr. Lydia Machova of Language Mentoring, and the topic is, Should I learn a second language?

Mike Blake: [00:48:35] Just a few more questions because our time is nearly up. But I did want to – you just touched on something I want to ask you. What is your opinion of all these new apps that are out? The Duolingo, the Memrise, the beams of the world. Maybe, even Rosetta Stone gets lumped into that. How useful are they as a language learning tool?

Lydia Machova: [00:49:00] I believe they are useful, and I’m personally also a fan of them. But I take them as a nice, playful addition to my language learning because I believe it’s very difficult for an app like this to cover all of the language skills that you need to learn.

Lydia Machova: [00:49:19] So, if I only put words to pictures within the app or I only repeat some phrases, I’m not forced to really think about some words and say them to create content in the language. It cannot help me to learn to speak. There is no process in this app that can help me to speak because the only way to learn to speak a language is to practice speaking it, right.

Lydia Machova: [00:49:44] So, these people expect that just by being playful with the language and playing with the words, they will somehow magically learn to speak the language. I don’t get it how it should be even possible. I don’t expect this from the app because I know I’m not practicing that, right?

Lydia Machova: [00:50:01] So, I’m not opposed to the idea. I think they’re a great gateway to learning languages, and I like it when people get excited and they’re very addictive. Let’s face it. They are built to be addictive, right? And, I myself have been hooked on Duolingo and Memrise and all of these apps. But I’ve always realized that this is a very nice game, right, to be in contact with the language but I need to work on the language elsewhere, too, if I want to really speak it. If I just want to kind of dabble in it and learn a few phrases to use on my holiday, then they’re the perfect solution. Go for that. Use them and go on holiday and impress the native speakers, right?

Lydia Machova: [00:50:40] But if you want to actually use the language, learn it, know it. Be beyond that last wave. Be fluent in it. The apps will never be enough, at least not the ones that we have so far. I haven’t seen an app which would cover all that.

Mike Blake: [00:50:54] I think I agree with that. I’ve found Duoling – I tend to use Duolingo and Memrise, and to me, they’re a good start, but I quickly found that if I really – if I wanted to achieve the level of comfort that I wanted to achieve, I needed to have an actual textbook in front of me where I could see how the language is structured. And, I’ve also found a word frequency dictionary to be helpful, as well as flashcards. Of course, everything’s different for other people.

Mike Blake: [00:51:30] In your system, and I hope I’m not asking you to give away too much intellectual property, but when somebody sets out to learn a language and maybe they did start with Duolingo but they realize that Duolingo can only take them so far, what are other tools does a person need to have in order to be successful?

Lydia Machova: [00:51:50] Right. At the very beginning, I agree that a textbook is a must. I have known a lot of other courses. I tried learning some of my languages with them so that I can test different resources and different materials. But at some point, I agree that in order to really understand the language and start understanding the nuances and the differences and why does it work like this, you need to have certain textbook material, right?

Lydia Machova: [00:52:19] But afterwards, if you get over those first two stages, A1, A2, beginner stages, and you become a lower intermediate where you can already understand roughly what texts in the language are about or you watch a movie and you don’t understand everything but you get different phrases and you can kind of get by, that’s when it starts getting really interesting because that’s when you can use immense resources online and you can start using them according to the topics you enjoy.

Lydia Machova: [00:52:49] So, that’s when you can introduce podcasts and start reading books. You can start with simplified books or bilingual books. There are hundreds and thousands of them online available. And, you can pick materials that you are interested in and then spend time with them systematically so that you can acquire new vocabulary and understand more of the grammar and also gradually start speaking, practicing the output as well.

Mike Blake: [00:53:16] So, just a couple more questions before you go. I want – I’d like to talk about the word polyglot because, you know, at least in the English language, I can’t speak for other languages, but the term polyglot has almost a magical meaning, in a way probably too magical, if I’m honest about it. Is a polyglot somebody who, in your mind, is that somebody who speaks three languages or more? Is it five? Is it 12? Does the term really even matter?

Lydia Machova: [00:53:56] I wouldn’t say it does, and there is no official definition of the word. A polyglot is a person who speaks multiple languages. But in today’s world where there are so many people from different backgrounds and countries, it’s very natural for people to naturally go through life and pick up two or three languages, right? Your mom is Spanish and your father is American, and you spend a lot of time in France, so you end up speaking three languages.

Lydia Machova: [00:54:24] But I believe polyglot is really someone who enjoys the process of learning new languages and learns them also for pleasure. So, it’s not that you picked up the languages because you had an international life or your dad was a diplomat or something, but because you are truly interested in the language, right? So, I see polyglots more as people who take language learning as a hobby.

Mike Blake: [00:54:50] Okay. Yeah. I think that’s right. I like that definition, and maybe it’s no different than somebody who just learned as a musician, who learns different instruments. Right? Maybe, someone plays the guitar and the piano, and that’s just what they decided to do.

Mike Blake: [00:55:05] Lydia, this has been a fun conversation. I could talk to you for hours, but I know it’s Friday evening where you are. So, I want to be, of course, respectful of your time. There are probably questions we didn’t get to that a listener would like to know about, or maybe a question we didn’t go into as much detail on. If a listener wants to contact you to find out more about this topic or maybe take advantage of your expertise, can they do so? And, what’s the best way to do that?

Lydia Machova: [00:55:35] Yeah. I would be happy to. So, you can find me at languagementoring.com. And, we are on social media as well, Facebook, Instagram. You can watch some YouTube videos. I have some lectures and presentations in polyglot events, also findable on YouTube. So, yeah, language mentoring is the term.

Mike Blake: [00:55:59] That’s going to wrap it up for today’s program. I’d like to thank Dr. Lydia Machova so much for sharing her expertise with us.

Mike Blake: [00:56:05] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next big business 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. If you’d like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblackeable on Facebook, Twitter, Clubhouse, and Instagram. Also, check out my new LinkedIn group, a group that doesn’t suck. Once again, this is Mike Blake. Our sponsor is Brady Ware and Company. And, this has been the Decision Vision podcast.

 

Tagged With: Brady Ware & Company, Decision Vision podcast, language learning, Language Mentoring, learning a language, Lydia Machova, Mike Blake, second language

Decision Vision Episode 142: What Should I Do After Graduating High School? – An Interview with Joseph Lambert, Joseph’s Junk Removal

November 11, 2021 by John Ray

Joseph Lambert
Decision Vision
Decision Vision Episode 142: What Should I Do After Graduating High School? - An Interview with Joseph Lambert, Joseph's Junk Removal
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Joseph Lambert

Decision Vision Episode 142:  What Should I Do After Graduating High School? – An Interview with Joseph Lambert, Joseph’s Junk Removal

As a senior in high school, Joseph Lambert started his junk removal business with a rented truck and hasn’t looked back. Now 20 years old, Joseph is in a unique position for this conversation with host Mike Blake on options for young people after high school. They discussed why college may not be a given anymore, Joseph’s path in his business and the lessons he’s learned, why Joseph believes undergraduate business degrees are a “waste of time,” how young people should figure out their own direction, and much more. Decision Vision is presented by Brady Ware & Company.

Joseph’s Junk Removal

Joseph’s Junk Removal is a customer service company specializing in junk removal.

Serving the Atlanta area, the Joseph’s Junk Removal Team is on a mission to help people “Clear clutter, relieve stress, and live cleaner lives.”

Company website | LinkedIn | Facebook

Joseph Lambert, Owner, Joseph’s Junk Removal

Joseph Lambert, Owner, Joseph’s Junk Removal

Joseph’s Junk Removal’s story really starts when Joseph was 12 years old. As his parents were finalizing their divorce, Joseph realized the challenge ahead for his mom as she would try to provide for him and his four younger siblings. In an effort to help, Joseph started mowing lawns and working in construction to cover his own expenses. As a result, Joseph was able to release some of the burden off his family and discovered a hunger for growing a business in the meantime.

As mowing lawns grew, Joseph partnered with a friend who was older and could drive. The business model was simple: Joseph handled customer service, marketing, and scheduling. Sam handled the transportation.

At age 17, Joseph made $1600 in 4 hours by removing a bunch of junk for a landscaping client. He couldn’t believe it! After completing the job, Joseph researched the junk removal industry and was blown away by the margins, simple process, and scalability potential. From this point on, he focused on junk removal.

By senior year of high school, Joseph’s junk hauling business “Highschoolers Hauling Junk” was growing rapidly. As he juggled work, football, and baseball, Joseph put classes on the back burner. Consequently, he ended up failing a crucial class necessary to earn a diploma. As a result, he stayed in high school an extra semester (while all his friends went off to college) to finish the class.

While Joseph finished the class, the junk removal business (now called “Joseph’s Junk Removal”) was booming! By now, he was convinced of the immense potential in junk removal. After a full power-point presentation, Joseph got the greenlight from his family to pursue it full-time after graduation.
Less than 2 years after Joseph “officially” graduated high school, Joseph’s Junk Removal has grown to 25+ employees and 5 trucks. In that time span, Joseph and his team have fallen on their faces a lot. Lessons have been learned (some the hard way). But ultimately, every challenge the team has faced has made them stronger and more equipped to conquer the future.

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Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

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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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

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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.

Mike Blake: [00:00:21] 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 when you might need help along the way.

Mike Blake: [00:00:43] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware and Company, a full- service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. My practice specializes in providing fact-based strategic and risk management advice to clients that are buying, selling, or growing the value of companies and intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols.

Mike Blake: [00:01:13] If you would like to engage with me on social media with my Chart of the Day and other content, I am on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:32] So, today’s topic is different from what we normally cover, but I think it’s applicable. And I think the story that leads to the topic is so compelling. I think you, in our audience, are going to enjoy and, frankly, be inspired by hearing it.

Mike Blake: [00:01:53] But the topic is, What should I do after graduating high school? And you might be thinking, “Well, this is a show about executive business decision making. Why are we talking about the decision process for what an 18 year old kid should be doing with their life?”

Mike Blake: [00:02:14] And here’s my answer to it. The first answer is, it turns out that some number of listeners out there are actually in high school or high school age or younger, believe it or not. And I know this because they contact me. In fact, I will tell you that as a father of a 19 year old son, I have about as little street cred as you could possibly imagine. I can’t even do the white man’s overbite well.

Mike Blake: [00:02:43] But when he heard that I had a podcast that’s up at 30 million downloads and counting, all of a sudden for a brief moment, there is a glimmer of admiration and respect in his eyes, and I’m not sure I’ll ever see it again. But he is telling me that his friends are listening to the program as well. And they say that they look forward to it, and they enjoy it, and they feel like it speaks to them because, in many cases, this is the first time a lot of them are being privy to business kind of conversations as adults rather than as teenagers.

Mike Blake: [00:03:23] So, you know, to those of you who are in that demographic, you’re, of course, welcome. We love the fact that you’re listening. We love the fact that you’re taking an interest in business and becoming a better decision maker. And if you’re of that age, you are going to face one of the most important decisions of your life, almost unfairly so in terms of what you do with your life going forward.

Mike Blake: [00:03:48] You may choose to go to college, and I’m becoming increasingly convinced that asking 18 year olds to make decisions as to whether or not they should be taking on a quarter of a million dollars of debt, I’m not sure that’s a position we should be putting kids in. I think there needs to be a different model.

Mike Blake: [00:04:10] And we’re not going to talk about this explicitly today, but you may choose to risk your life serving our country. You know, the military has obviously been a route for upward mobility for many people. I have two cousins of whom I’m just tremendously proud that have had distinguished military careers where they’ve really just accomplished things that I’m not sure they would have necessarily accomplished had the military not given them those opportunities. And maybe we’ll cover the military separately in a different episode. We did do one with Jason Jones on the hiring side, should I hire people with a military background?

Mike Blake: [00:04:46] But the fact of the matter is, whether you’re not at age 18, life is going to force some pretty heavy decisions upon you. And I hope that the conversation we have today will at least add a different perspective than you may be getting from whatever advisors that you have. I think, also, that the show is going to be useful because parents are making an executive decision, if you will, or helping their children make an executive decision. Should I go to college? Should I undertake the enormous financial obligation that college entails? Or should I do something else?

Mike Blake: [00:05:31] And it’s tough. I can tell you as a parent, again, of a 19 year old who has chosen not to go to college at least for the time being, it is a very heavy decision. And as parents where many of us are for executives, not all of us, of course, but many of us grew up in a generation – I’m Gen X – where college was something you just didn’t even think about. If you had the opportunity to go, you just went. That’s all there was to it.

Mike Blake: [00:06:01] But the world has changed. The economics of college have changed. The psychology of the American teen has changed. The environment, of course, has changed in every way imaginable. The nature of the labor forces – we’ve gone into a lot of detail over several episodes – has changed. So, even though this is a little bit off the wall from what we normally talk about, I do believe that many of you will find that it holds relevance, if not today, then at some point down the line when you reach a later life stage.

Mike Blake: [00:06:40] So, with that as a preamble, I hope I’ve convinced you to hang in there and continue listening because I do think we have an excellent program lined up. And joining us today to talk about this might be our youngest guest ever, if not the youngest, probably in the top three – and that’s a good thing, by the way – is Joseph Lambert of Joseph’s Junk Removal.

Mike Blake: [00:07:04] And as I said, he has a story that I think just sets the table so nicely. I cannot possibly do justice to it, so I’m going to break from tradition here. And I’m going to just welcome Joseph to the program, and ask Joseph to talk about his background and how did he get from his first job as a kid, as a young teenager or adolescent, into being the founder and CEO of Joseph’s Junk Removal. Joseph, welcome to the program.

Joseph Lambert: [00:07:35] Hey, man. Thanks so much for having me on. I just can’t echo enough about how important this topic is, which you already laid out. Because, you know, for kids coming out of high school at 18 years old, 17 years old, they’re oftentimes forced to make the decision on what the next four or five years of their life looks like. And that’s a lot of time. And I’m a firm believer in time is the most valuable currency we have. So, there’s just a lot that goes into that decision.

Joseph Lambert: [00:08:04] So, whether you’re actually in the midst of making that decision for yourself right now, whether you’re a parent, or whether you’re somebody who is involved in somebody’s life who is going through that decision, this is a topic that can really apply to everybody because everybody either has to make that decision or can help somebody else make that decision.

Joseph Lambert: [00:08:23] But as far as my story goes, so I grew up in Atlanta, Georgia. Oldest of five kids. Really was very blessed growing up with two loving parents. But at 12 years old, my parents got a divorce, and it just shook our family, created a lot of challenges. Probably one of the most immediate challenges was my mom had to go from a stay at home mom to being in the workforce to put food on the table.

Joseph Lambert: [00:08:51] So, for me at 12 years old, I just was trying to figure out ways to help. And one of the clear pathways that I saw was just go out and earn money and cover your own expenses. So, I started mowing lawns for neighbors. I also started working in construction with a friend. So, I was doing everything I could just to earn as much money as possible just to lighten the burden on my mom.

Joseph Lambert: [00:09:18] So, that was kind of what got me kick started into working, you know, kind of the idea of entrepreneurship. And, really, it caught my attention. Like even at a young age, I loved it. I was, you know, seeking every opportunity to grow and get more clients. I remember it was such a big deal for me just to order business cards. And I spent so long even designing it. We didn’t have any lawn equipment, so I had to go out and actually buy all my own lawn equipment. So, there was like these lessons that I learned really early on that I think we’re super helpful.

Joseph Lambert: [00:09:48] And then, as I grew a little bit older, you know, I saved up. I bought a truck when I was 16 years old and I went from just kind of doing things that were within reach in the neighborhood and sometimes going around with some friends to be able to drive and get to a lot bigger client base.

Joseph Lambert: [00:10:09] And then, when I was a little bit older in high school, I ended up having a landscaping client who asked me to haul away some items out of her home. And I, really, at that point had not been exposed to the junk removal industry, but ended up doing that job for her and really hit a grand slam with it. I made about 1,600 bucks in four hours. So, at that moment, the junk removal industry just really caught my attention. I was like, “Wow. I need to look into this a little bit more.” Because landscaping had frustrated me up to that point because there was just so many moving parts and it was hard to replicate the process over and over and scale it.

Joseph Lambert: [00:10:49] But with junk removal, I saw a perfect pathway to just replicating that process and scaling it rather quickly. So, like even at the time I saw, you know, how this could go from one truck to four trucks to ten trucks. So, anyways, I started moving into the junk removal side of things kind of around senior year high school. So, in the meantime, I’m working a lot in senior year of high school. I’m playing football and baseball. And those are my two loves working and playing sports. And really put school on the backburner.

Joseph Lambert: [00:11:23] So, what ended up happening was, I ended up actually failing a class in my senior high school that I needed to graduate. And it ended up being a huge blessing in disguise because I had to stay home what would have been my first semester, my freshman year of college. And I had to finish that class so I could get my diploma. But in the meantime, I was working full time, 50 plus hours a week doing junk removal. And the beauty of it was, I was really able to give all my effort into the junk business at the time. And in the course of a couple of months, made around $50,000. And I was like, “Whoa. Okay. This is even better than I thought.”

Joseph Lambert: [00:12:03] So, you know, I was never really opposed to going to college. I just really wanted to run super hard after whatever my best opportunity was. And after doing junk removal for a semester full time, I realized, “Wow. This is a great opportunity. I don’t want to pass this up.” So, I discussed it with my family. I even made a PowerPoint presentation. It was like, “This is why this is the best option and I will happily go to college. I’m not trying to go against the grain. But I need to run hard after this because this is an awesome opportunity.” So, they saw the numbers, they saw the track record, and were totally supportive of it. So, anyways, that was January of 2020 that I’m doing this with them.

Joseph Lambert: [00:12:43] So, I go all in on the junk business after getting my diploma that spring, and then COVID hits. And, unfortunately, a ton of businesses suffered during COVID, but we were super blessed to actually really thrive because everybody was now at home staring at all the junk in their basement and in their closet that they didn’t want. So, my phone was ringing off the hook. And I went from just me driving around in a truck and trailer.

Joseph Lambert: [00:13:12] At one point we had four big U-Haul, 26 foot moving trucks that we parked in a Walmart parking lot, and I was stuffing them with every college and high school buddy I could find. And we were going all over Atlanta just hauling junk for people. It wasn’t perfect. And quite honestly, we really weren’t profitable for all of 2020. But, you know, there was a lot of lessons learned.

Joseph Lambert: [00:13:36] And, ultimately, we grew at such a fast rate that I realized, you know, we have a lot of potential here. This is legit. And I also proved myself that the revenue was there. And I just had to figure out how to make the revenue profitable. So, basically, we went from doing about $15,000 me by myself in January, to that July, we were doing about over 60,000 in revenue. And I’m doing this all at 18 years old. Like, I didn’t even know it was possible to make $60,000 in a month at that age.

Joseph Lambert: [00:14:09] So, anyways, I recognized at the time that what we were doing was not profitable, so I basically tore the business back down. We returned all the rental trucks, and we started buying our own trucks. And doing a bunch of other things to basically run our business in a way that would actually make money and make money long term. So, that kind of brings us to where we are now about a year later, so we don’t have any rental trucks now. We buy all brand new trucks. You know, we’ve transformed our team, transformed all of our processes, our web presence, and everything. But, man, it has been a tremendous learning experience. There’s nothing like the school of hard knocks. So, super thankful to be where I am today.

Mike Blake: [00:14:49] I think about what I would have done if I’d had $60,000 a month at your age. And I probably would have landed in jail somehow. So, whatever I would have done, it would not have been constructive. So, good for you. I mean, I think that’s a differentiator. Clearly, you have the maturity to kind of handle that and realize the responsibility that comes with that kind of money. And presumably now you have employees that are depending on you for their livelihood and so forth. And really just a remarkable responsibility to take on.

Mike Blake: [00:15:32] Gosh, there’s so many questions that’s coming out of this, so I got to sort of take a deep breath here and go back into my own script here. You started the business. You chose to do it. You’re sticking with it. Do you agree with me or not agree with me – either one is fine. I’m not going to, like, stop the program or anything – it seems to me that college isn’t the obvious path that it once was, right? I think times have changed. And do you find, like among your peers, it’s not just sort of college or bust anymore. It’s still like graduation and then maybe college, maybe later, or just something else?

Joseph Lambert: [00:16:11] Yeah. That’s an interesting question, and I’d love to dive into that one. So, I went to a small Christian school and I had a super close knit group of guys in high school. And what I thought was so cool is, you know, everybody before us, everybody went to college before our grade. And our grade was the first one where we really broke that mold. I think the majority of everybody still went to college. But there was probably at least five or six guys who did not go to college. So, I was one of them. There was another guy who actually started a landscaping company, and still doing so right now and running it rather successfully. And there was a couple of other guys who did the same thing.

Joseph Lambert: [00:16:52] So, I don’t by any means think college is a bad option when it’s used properly. I think what’s hard for me nowadays is, you know, I think for so many kids, college is the only option. I grew up around Kennesaw State University. So, even when I wasn’t in college, I knew a lot of guys that were students there, and there was a lot of guys who had tremendous potential who really didn’t need to go to college, but they just weren’t presented with anything else. So, my goal is to really speak into a lot of young high school guys and say, “Hey, there is other options. You just need to do what’s best for you once you’ve seen all there is to offer.”

Mike Blake: [00:17:33] So, if you could, what are your peers doing that chose not to go to college? What other paths have they taken? Are any entrepreneurs like you? Are they going to trade school or they’re doing something else?

Joseph Lambert: [00:17:47] Yeah. So, there’s a couple of them and they’re not all successful, by the way. So, there’s me. I’ve got my buddy who runs a landscaping business who’s doing great. I’ve got another buddy who went to trade school to be a welder. So, I don’t think he’s finished school yet. But, you know, as soon as he gets out of school, he’s going to have his choice of jobs and be employed for the rest of his life. There’s some other guys who just kind of aren’t going anywhere in life, who I think kind of tried and followed suit. They didn’t really want to go to school, so they thought they can make it without it, but really don’t have any direction. And it’s not for a lack of skill, it’s for lack of effort. There’s one or two other guys who were working for other people, but still knocking out of the park.

Joseph Lambert: [00:18:36] So, you don’t have to necessarily go out and be an entrepreneur to start doing business to be successful outside of college. And this kind of is getting into another topic. But I think the key is just having a plan and a goal regardless of what you’re going to do. So, if you’re going to college to be a doctor, let’s make a plan. What kind of doctor are you going to be? Let’s go for it and let’s work at it with all of our might. If you’re going to get a job, well, go work for somebody where there’s a runway, where you can really move up and learn things and get better. If you’re going to start a business, let’s make a plan. Let’s do it. But don’t hover in that ground like I don’t know what I want to do. That should never be the path.

Mike Blake: [00:19:17] So, let me ask this, how much do the economics of college do you think play into the decision now of people of your age, your generation? And I want to contrast that with my generation where, you know, you just went to college and it was just assumed that it would be a good investment, even if you didn’t necessarily get a practical major, even if you’re a literature major or basket weaving or whatever, right? If you have a degree, that was going to set you up. And I kind of look at the landscape today, and I think that conversation has changed. But you’re kind of in it at that age group. What do you see?

Joseph Lambert: [00:19:58] Yeah. So, I think we need to look more long term. Let’s look at this as a ten year decision, not as a four year and five year decision. Or not even like a now decision, that’s a really bad idea. So, let’s look at the ten year college decision. If you’re going to college to be a doctor, a lawyer, an engineer, first of all, you’re not going to get into any of those fields without going to college first. And due to the compensation for those type of jobs, it makes sense to go to college and possibly take on some debt to get to that end goal of having that position.

Joseph Lambert: [00:20:33] However, if you’re going for a business management degree, I would say you’re wasting your time and your money royally, because you can go and work for somebody and learn how they manage or learn how they don’t manage well. And then, you can move up and do it yourself. So, it just really depends on what you’re going for, I think.

Mike Blake: [00:20:53] So, I want to pause on that because I think you bring up a very interesting point about undergraduate business administration degrees. And while I don’t totally agree with your statement, I’m certainly very sympathetic to it. And I think there’s a lot to agree with there. But have you ever taken online courses, the Udemys of the world, for example, or others to find the education if you needed any or training that it didn’t make sense to go get a degree for?

Joseph Lambert: [00:21:28] I have. I have.

Mike Blake: [00:21:29] How was it? How is your experience with that?

Joseph Lambert: [00:21:33] So, my general experience with learning is, it depends on what kind of class you’re taking. So, I’m not a big fan of big overview courses that are just going to inform like large – I don’t know, I just feel like they’re not giving you a whole lot of content to actually use practically. Nevertheless, I have to learn a tremendous amount for my job today. So, the approach I take is, I think, just a lot more efficient in the sense that, when I learn something, I go learn everything there is to know about what I need to use it for. Versus, going and learning a bunch of information that I may never use.

Joseph Lambert: [00:22:13] So, take for example, if you’re starting a business, “Okay. In order to start a business, I’m going to need you to know how QuickBooks work. I’m going to need to know how accounting works.” So, go take three accounting classes, I think that’s a brilliant use of your time. But do you need to go to college for four years to figure that out? I don’t think so.

Mike Blake: [00:22:34] So, you bring up what I think is an interesting distinction, and I’m curious if you agree. And I see this in my son and his peer group too. They are much less interested in being – what we would call – educated, and are much more interested in being trained. And the difference being, education implies a well-rounded renaissance person kind of education. You have a lot of kind of required core courses because the institution wants you to be a well-rounded education individual.

Mike Blake: [00:23:06] But he tells, “Look. This is great, but I don’t want to learn French. I don’t plan on doing business in France or Quebec. And by the time I’m rich, I’ll just hire a translator.” But they are interested in, “Hey, here’s something that I can learn how to do.” It could be graphic design. It could be using a software package or accounting, for example. I can learn about and then walk right out of the video and then start to apply in something that actually matters to me materially. Does that sort of sync up with your thought process as well? Or am I way off base?

Joseph Lambert: [00:23:43] Totally. And I think there’s older guys who would, I think, agree with my standpoint. And I fall back on what Warren Buffett talks about. I mean, we all know Warren Buffett is brilliant, but he’s said multiple times like, “I’m really not that well-rounded of a person. I just picked one thing and became the best at it and learned everything there was to know about it. And that’s why I’m super successful.” So, I apply the same thing with junk removal. Like, I’m not trying to learn every business there is out there. I’m just trying to be the best junk removal business owner out there. And if I’m the best at it, then my business will be the most successful.

Joseph Lambert: [00:24:25] So, I take that general approach to learning in general. I’m not just out there to learn as much, I guess, content as possible. But what can I just zero in on and be the best at it? And I think there’s a lot of, you know, kids today who were, I think, trending towards that direction.

Mike Blake: [00:24:45] Well, yeah. And, frankly, I’m very sympathetic to it. You just cannot look at education anymore, unless you’re just independently wealthy already. Most people cannot, and I think should not, look at education as something that you do for its own sake, but has to be analyzed as a business investment. Otherwise, it kind of gets you into trouble. And we’re seeing millions of people that, I think, didn’t take that approach and, now, they’re experiencing real financial difficulty. And that’s prompting a very fundamental question right now about how education should be financed. But that’s a separate issue.

Mike Blake: [00:25:25] There’s a question I want to make sure to ask you, and that is, putting aside how it impacted your business, because you said that the pandemic was probably a net positive, I wonder if the pandemic and the way the job market now has shaped up after the pandemic, does that provide more opportunities to high school graduates than the world looked like before the pandemic? Because we have a general labor shortage. There’s shortage of everything. And there’s disruption. And my own personal belief is, wherever there’s disruption, there’s opportunity. Is this providing an opportunity because employers and customers are having to think about or having to rethink what they think qualifies other people to work with them or be their providers?

Joseph Lambert: [00:26:28] Absolutely. I mean, you hit the nail on the head because there is tremendous desperation right now. I mean, even in my own business, we’re having trouble with staffing, like everybody else is. So, there are opportunities for young individuals that previously just weren’t available to them simply because of their age. So, I truly think it is a golden opportunity right now to really go get some awesome experience that probably wasn’t available before and probably won’t be available in years to come.

Mike Blake: [00:26:57] So, did you have any kind of opportunity to dip your toe in the business? I mean, you had your business, obviously. But what I mean is, some schools will have business classes, some schools will have an entrepreneurial club, something like that. Did your school have anything like that? And if so, how did that help you or not help you?

Joseph Lambert: [00:27:20] Yeah. So, there’s kind of a two part answer to that question. First of all, we did have a business law class, which I think was helpful in that class. Actually, we had an entrepreneurship project where we had to start a business on paper. I was sitting next to my buddy, Sam, who now runs the landscaping business I told you about earlier, and he was about a-year-and-a-half older than me. So, after, like, making this landscaping business on paper, we looked at each other and was like, “Why don’t we actually do this?” So, sure enough, we started it. I was 15, he was 16. He had a car, I didn’t. So, we ran a business together at 15 and 16. You know, I was great at marketing and talking to people, and he had the car and could work circles around anybody. So, we were a great team for about a year. So, that was helpful.

Joseph Lambert: [00:28:14] But I think the biggest benefit I’ve had in my life kind of in that realm would just be some awesome mentors. So, I had a mentor in high school who was a Georgia Tech grad entrepreneur at the time, who was incredibly influential in my life. I mean, we pick up any call. We talk through every business idea. I had talked through his own business ideas. So, he taught me a lot about how to think as an entrepreneur and as a business owner.

Joseph Lambert: [00:28:39] And then, more recently started meeting with a new mentor of mine a little over a year ago, who’s the president of Thrive: Senior Living, a large senior living company, I guess, on the whole East Coast.

Joseph Lambert: [00:28:55] So, anyways, learning from those two guys has been tremendous. Probably the best way to describe it is just they’ve turned years into months just by sharing all their experience. So, that’s been incredibly helpful.

Mike Blake: [00:29:10] You know, I’m glad you brought that up because I wanted to have this discussion about mentors. Even though mentors have been getting a lot of attention, I think, and well deserved, I still think they’re a little underrated. I haven’t had many mentors in my career just the way things turned out. But early in my career, I did. And you know, they laid the groundwork for some things that still impact me and impact the way that I work, you know, almost 30 years later.

Mike Blake: [00:29:41] Tell me a little bit more about your mentors. How did you find them? How did they find you? And what do you think was it about you or what you’re doing that made them want to invest their time and energy in your success?

Joseph Lambert: [00:29:54] Oh, okay. Yeah, great question. So, first of all, my whole philosophy was, number one, I can learn something from anybody. And number two, I’m going to go and ask every successful person I know out to breakfast, coffee, or lunch. So, really, all throughout high school, I was constantly asking guys, “Hey, would you go grab lunch with me? Would you go grab breakfast with me? I don’t care what time it is. Just, can I get an hour of your time?” And very few of those – really, only two of those ended up actually being mentors. A lot of them we met for breakfast or lunch once or twice, and that was it.

Joseph Lambert: [00:30:31] But I think I learned a tremendous amount from each of them. And, also, I learned how to ask questions, how to ask about their story. And I think just to garner little bits and pieces from each one of them that kind of built who I am today. And these guys, like when you get the good ones, their time is incredibly valuable. So, like, they really have to be sought out and pursued. They’re not going to come knock on your door, especially a young guy.

Joseph Lambert: [00:30:57] But I think the reason why the two main guys ended up really being willing to invest in me is, they saw I was hungry, number one, because I continue to pursue them. And then, number two, direct application. So, the latest one, something he said he appreciated later on was he was like, “You know, a lot of times you apply stuff that we talk about in, like, three hours or less.” And I was like, “Yeah. That’s one of my goals, actually.”

Joseph Lambert: [00:31:26] So, one thing for these guys is because their time is so valuable, they want to know that they’re using it effectively. So, if they’re sharing things with you and then you go right away and apply it and they know they’re impacting things, man, they just want to keep feeding that. So, yeah, I think just really seeking these guys out, asking their story, asking for their advice on things. And then, when they tell you something, not just letting go in one ear and out the other, but going and doing it.

Mike Blake: [00:31:54] And, you know, I speculate that this is actually a benefit of youth. I think that there’s more enthusiasm to mentor people as young as you are versus people that are somewhat older. You know, I’m 51, nobody is going to mentor me. They’re like, “You should be the mentoring person.” But I do think that if I’m approached, somebody like you that is focused, is very young, is clearly focused on being a high achiever, that’s an easy person to say yes to because you can just imagine kind of what the trajectory looks like over a 30 year or 50 year period with that mentoring.

Mike Blake: [00:32:43] And I would just point out to the audience that while it may seem daunting to get mentors, on the same token, I do think that people like me in terms of age and seniority, we are actually more inclined to mentor people that are younger because we see a bigger impact, and the youth in itself is inspiring.

Joseph Lambert: [00:33:04] Yeah. If I could add one more thing too, one of my rules that I hope to live out the rest of my life is, always be learning from people 30 years or older than you. And, for me, I didn’t start out just trying to go find mentors. I just wanted to learn from guys, even if it was one breakfast or lunch. So, I started really small just trying to learn from those small bits. And then, a couple of them ended up turning into these long term relationships.

Joseph Lambert: [00:33:31] So, you know, to any of our listeners who say, “Hey, I would love a mentor.” I wouldn’t start out with that being your goal. Just start asking successful people in whatever area of life, whether it be as a business person, a husband, a father, whatever it looks like, ask them out, ask them how they do it. And then, maybe that will turn into a long term relationship.

Mike Blake: [00:33:53] So, another question I want to ask – and this may reveal my curmudgeonly-ness, but that’s okay. If it is, you can smack me down. That’s okay. I won’t take offense. But it’s been commented on quite a bit, and I think I see this, that it’s harder for young people to be focused and really concentrated on a goal today simply because, I think, there are more opportunities for distraction. And assuming you agree with that, you seem to have managed to avoid that. You’re clearly a very focused person. You have specific goals in mind. You sound like no nonsense. If this is not contributing to my goal, I’m not interested – which I think is fantastic.

Mike Blake: [00:34:49] Is that true? And how did you come by that? And is there any lesson from that that you can impart on our audience, either as parents to help our children with, or, again, people maybe slightly younger than you in terms of how to gain that focus that seems to be serving you so well?

Joseph Lambert: [00:35:07] Yeah. So, I think what it really starts with is defining your priorities or your roles in life. So, for me, I have three real roles. Number one is my family, so spending time with them. Number two is just being a part of my church. And number three is running my business. So, really, I look throughout the course of my life if my task throughout the day don’t fall into one of those three buckets, then it’s really not important. So, I’m going to make sure I do those three things really, really, really well. And then, everything else is secondary. So, nothing that’s contributing to that I’m not going to worry about it.

Joseph Lambert: [00:35:49] So, I think that’s where you’ve got to start because there’s so many things that are competing for our time and attention that sometimes it’s hard to decide what’s actually important. So, once you figure out what’s actually important, I think that’ll help people filter through what that actually looks like. Then, you can get to the point of actually setting goals for those specific roles that you have.

Joseph Lambert: [00:36:11] So, a goal for me with my family is, I’ve got four younger siblings who all play sports. And my goal was to not miss any of their games. So, like for this fall semester, I think I only missed one game for each sibling. And one time it was because I was at another cousin’s game and the other time I was doing a church serving opportunity. So, I think setting those specific goals for those roles is really helpful.

Joseph Lambert: [00:36:41] And then, I don’t think expecting perfection either. You know, as humans were all fallen and we’re all going to fail at some point. So, just the important part is learning from those failures and putting the things in place to not let it happen again. So, knowing what those roles are, setting the goals for those roles, and then not expecting perfection, necessarily.

Mike Blake: [00:37:07] I’m curious about something, and that is that, you’re now in a position of authority and you’re in a position now where there are people that want to sell stuff to you as a B2B business. You’re a business owner, the executive decision maker. Now, I’m not going to ask your specific age, but you’re in your late teens or early 20s. You’re not that far removed from socially having to refer to everybody as Mr. and Miss and Mrs. and so forth. And now you’re not only a peer relationship, but in some cases you’re in a position of authority over people who might be significantly older than you.

Joseph Lambert: [00:37:49] And I’m curious, is that a hard transition to make? And do you ever feel like you have to struggle with commanding the respect that you deserve because people look at your age and then assume certain things?

Joseph Lambert: [00:38:06] Yeah. I would say it’s always a challenge, but I’m going to start with the assumption on my end that I don’t think anybody owes me anything. So, I don’t necessarily expect respect from anybody if I haven’t already earned it. So, I think this depends on what setting. And there’s certainly still people in my life that I call Mr. and Mrs. just because that’s what I’ve called them for the last decade.

Joseph Lambert: [00:38:30] But in regards to people that I have authority over from a professional standpoint, I’ll go ahead and tell you, “I’m 20. I’ve got somebody on my staff who’s 40 and somebody who’s 60.” So, that right there is two times and three times my age. And I think that standpoint, we respect each other for the different roles we’re at in the company.

Joseph Lambert: [00:38:53] But then, again, something I emphasize to my team all the time is, we’re all in this together. We just have different roles. So, your role may be truck team member. Your role may be customer care representative. And my role may be chief decision maker. But we’re all here to make this company successful and earn a paycheck. And the question is, how do we do this best together? You know, I’m not trying to let my ego or their ego get in the way of what we actually need to do to get things done.

Mike Blake: [00:39:26] So, when you chose the entrepreneurial path, were you looking at all at other entrepreneurs who’ve been very successful despite not going to college either, they didn’t go right away, or they dropped out early? You know, one of my favorites is Dave Thomas, who founded Wendy’s. You know, he had a high school education and, obviously, built a very successful restaurant business. There’s, of course, a Bill Gates’, the Mark Zuckerbergs that that dropped out of college and so forth. Were people like that at all a role model to you? Or were they just in such a different world that it didn’t really connect?

Joseph Lambert: [00:40:09] I mean, I would say, yes. You know, we’ve all heard about the guy who started Microsoft. I can’t –

Mike Blake: [00:40:16] Bill Gates.

Joseph Lambert: [00:40:18] Bill Gates’ of the world and so many other guys who didn’t go to college or dropped out of college. So, I think them setting a precedent helped me realize this is possible. But, you know, I also really relied on people around me. I was asking them like, “Hey, do you think this is a good idea? Let’s talk through this.” I wasn’t trying to trust my very young and undeveloped brain to make all the decisions or at least inform all the decisions.

Mike Blake: [00:40:46] So, we hear frequently – and I’m not sure how good this advice is, but it’s certainly out there – that whatever you do in business, you should have a passion for it. Not everybody necessarily agrees with that, but that’s certainly a widely held view. And my question is really two part, one, in getting into your business, did you have a passion for junk removal? Do you feel like like God put you on this planet to do that in service to your fellowmen? Or is it more of a means to an end? But if you did that, how does somebody at your age figure out what they’re even passionate about? That’s so rare when you have so little life experience to, I think, even begin to answer that question intelligently.

Joseph Lambert: [00:41:39] Yeah. Well, first of all, let me start by saying this is still something I’m learning, and I don’t think I’ll ever fully figure it out. But I think the key to what you just said is, what is it that you’re passionate about? And it, I think is very rarely going to be the industry you’re in. It could be a variety of different things. So, what I start by asking people – because we’ve discussed this question a bit – what gets you excited? That’s a good start to figure out what you’re passionate about.

Joseph Lambert: [00:42:09] So, for me, personally, I’m passionate about people. I love conversation. I love teaching. I love just caring for people. So, one of my favorite things to do with my team is, you know, I do one on ones with a couple leaders on my team. So, what that means is, we meet at 6:00 a.m. at Starbucks. We have a little agenda we go through. We’re going through books together and we’re just learning and we’re talking about life. That is what I’m truly passionate about. So, my business is a vehicle for me to do that as well as many other things.

Joseph Lambert: [00:42:46] But I think the flip side of this question is, a lot of people can bar themselves off from some great opportunities because on the outset they don’t feel like they’re passionate about it. But what they’re probably really not telling themselves is it’s just not comfortable what they’re doing. There’s a big difference in being comfortable and being passionate. Because you may be passionate about something or you may not be passionate, but it may be really uncomfortable. And if we’re going to really be successful or high achieving in any way, shape, or form, you have to be really okay doing really uncomfortable stuff.

Joseph Lambert: [00:43:22] So, for me, like when I was just me and a truck with one other guy, like, I didn’t fully articulate that “Oh. I’m passionate about people.” I just thought, you know, junk removal is a great opportunity and it’ll lead to my next opportunity. So, that’s kind of really the thought train that it looked like for me. But I think definitely thinking about what you’re passionate about is good, but it definitely should not be the governing factor in your decision.

Mike Blake: [00:43:54] We’re talking with Joseph Lambert of Joseph’s Junk Removal. And the topic is, What should I do after graduating high school? And so, I want to flip the conversation a little bit because I do suspect that there are parents who are listening to this conversation. And, frankly, they’re probably blown away by you, Joseph. I know I am. I feel like I need to retire right now and sort of get the heck out of your way.

Joseph Lambert: [00:44:23] But as a parent – actually, I’m going to phrase this a little bit differently. So, you originally went to work because you had to supplement your income for your mom, who’s now became a single working mom. How, if at all, was she supportive of you in preparing you for this path? I know you said she was supportive of your decision. And I don’t know what your relationship with your father was after. But I’m just going to ask this very generically, you know, as a parent, were your parents able to kind of help encourage you, prepare you for this path? And whether that’s the case or not, if another parent would ask you for advice, how could a parent be constructive in helping their child who might be considering taking this path?

Joseph Lambert: [00:45:14] Yeah. So, first of all, they were very supportive. And I think what they were telling me the whole time was, you need to have a plan, we need to think this through, but it’s not like there’s a path that you have to take. So, what they didn’t want to see was they didn’t want to see Joseph just going kind of, you know, scatterbrain into life with no idea what he’s doing. But as long as I had a plan and it was realistic, they were going to come behind me completely.

Joseph Lambert: [00:45:43] And I think that is what a lot of parents, I would encourage them to do for their kids today. Encourage the process, not the results. So, the results may be get a job, go to college, start a business. Really, the results don’t matter. Because every kid is different. Every kid has different hopes and dreams and passions. But if you can encourage certain processes in them, like time management, like goal setting, like social skills, communication skills, writing skills, self-discipline, all those together. Encourage those processes, that’s what’s going to create the kind of person who can be successful in whatever they’re doing.

Joseph Lambert: [00:46:25] And, by the way, success is so much broader than anything financially. It could be, you know, they’re just super successful as a stay at home mom. Like, there are some awesome stay at home moms I know who are amazing at it. So, it can take a variety of different forms but I think setting those processes and encouraging those versus the results would probably be my biggest two cents.

Mike Blake: [00:46:53] Now, in the time we have left, we haven’t really talked about one potential decision path here, and that is trade school. And I know that’s not a path that you’ve taken, but I’m curious if you have a view as to the value of trade school as an alternative to starting a business, getting a job, or going to college. Are you a fan of that? Not a fan? How do you see your peers kind of looking at trade school? What’s your general impression of that path?

Joseph Lambert: [00:47:30] I think it’s an absolutely phenomenal option. So, quick stat for you here, the majority of HVAC technicians right now are in their 50s. So, over the next ten years, if we follow current trends for every ten HVAC technicians that retire, you’re going to have one technician coming into the workspace. So, right there, there is just tremendous opportunity because salaries are going to go up and there’s going to be a ton of demand for just things to get fixed.

Joseph Lambert: [00:48:03] So, whether it be HVAC, welding, plumbing, or a variety of other industries, I think there is tremendous potential to do it and really just provide a great living for your family and just a great foundation. Because there are certain things that are always going to have to be done, welding, fixing your air conditioner, I don’t think robots are taking over those roles anytime soon.

Joseph Lambert: [00:48:25] So, honestly, if we even look at these three options, going to college, getting a job, or starting a business, and we look at, ideally, which category would consume the most people, I would love to see more people going into the trades than any others, because there’s just so much opportunity there and it’s stuff that’s always going to be needed. So, I would definitely encourage anybody that’s considering it to go for it.

Mike Blake: [00:48:54] Yeah. I would agree with you. I don’t see those roles being roboticized anytime soon. And when you look at or analyze the expense of a trade education or trade training versus the tuition, the ROI is much more obvious, isn’t it?

Joseph Lambert: [00:49:14] Oh, totally.

Mike Blake: [00:49:18] So, I’ll follow this up a little bit before we let you go, because I do want to give this at least a little bit of its fair due, thinking about kids who are – I shouldn’t say kids – thinking about young adults that are graduating and they’re going to go directly into the labor force, how important is it in your mind that they take the kind of job where they can learn something, observe something that they’ll take with them through the rest of their lives, as opposed to just getting a job for the sake of having a job?

Joseph Lambert: [00:49:57] I think it’s incredibly important. So, let’s put it this way, whatever job you get from 18 to 22, 23 years old, from a financial standpoint, it’s more or less available. Because you’re really not going to make that much money anyways. So, you’re just figuring out a way to put food on the table and gas in your car. So, whatever else you’re getting from that role is really going to be what’s important, whether it be you’re learning something, whether it be you’re developing a reputation with a company, or just in the work field in general, that’s what’s going to have the lasting effect, not the actual money you earn in that time.

Joseph Lambert: [00:50:36] So, you know, I would even go as far as to say, if you’ve got two opportunities and you’ve got one that you know is a great opportunity from the perspective of a learning opportunity but maybe less pay versus a little bit higher pay for not as much as learning opportunity, I take the one with the learning opportunity and less pay, because that’s going to set you up much better for the next 10 to 20 years than with the other option.

Mike Blake: [00:51:00] Now, you are in a position – I don’t want to say fortunate – but I think you are in something of a minority position where you had a really clear idea of what you wanted to do when you graduated. Not everybody your age, I think, has that or even thinks that they have it. And so, if somebody is in that situation, where do you think they’re better off kind of waiting until they do figure out or – that’s the wrong question.

Mike Blake: [00:51:30] What in your mind is a good environment for people to help them figure that out? Is it school of some kind? Is it getting a job until you figure it out, see how the work world works? Is it traveling the globe in a backpack and meeting Sherpas in Nepal? Is it something else? In your mind, if you’re not there yet, what’s the best way to use that time constructively until you do figure out what direction you want to pursue?

Joseph Lambert: [00:51:58] Yeah. Great question. Using the time constructively, like you just said, is the key to that. Because everybody has something sitting in front of them that they can either choose to go about in a very mediocre way or they can absolutely crush it and do it with everything they got. So, I think the key is just whatever’s in front of you, do it to the best of your ability and try to be the best at it, regardless of what that is. And then, on top of that, always be thinking ten years down the road.

Joseph Lambert: [00:52:25] So, even when I graduated high school, I was thinking far enough down the road to see this could be something big. But I didn’t know it was going to be something big. I didn’t know that I wasn’t going to find a better idea three months down the road and go with that. So, it wasn’t like I knew from the get-go I’m going to do junk removal for the next five years. I mean, I still don’t know that. I’m two years into it. But I think the key is just really crushing what’s in front of you and then having the end goal in mind. And, usually, you’re going to figure stuff out in between there that you had no idea about before that’s going to, I think, inform your path as you go.

Mike Blake: [00:53:05] Joseph, this has been a really a fantastic conversation. You’ve got so much wisdom to share here, really candidly, beyond your years. I’m not sucking up to you. I just think it’s really a fascinating, really profound conversation that I’m really glad we decided to do this podcast and I’m grateful that you decided to come on. There are definitely topics that we could have explored but didn’t or maybe questions we could have gotten into more depth but didn’t, if somebody wants to follow up and maybe ask you, either as a parent or as a graduating young adult, to follow up on something regarding this conversation, can they do so? And if so, what’s the best way to contact you?

Joseph Lambert: [00:53:49] Yeah. Absolutely. So, you can just email me joseph@josephsjunkremoval.com. But, actually, I started using the Marco Polo app recently, and I absolutely love it. So, if you are interested in – I guess, videoing me through there is the new thing now – just search, put my email in there, joseph@josephsjunkremoval.com, I’d love to chat with you. You know, let’s talk.

Mike Blake: [00:54:18] That’s going to wrap it up for today’s program. I’d like to thank Joseph Lambert so much for sharing his expertise with us.

Mike Blake: [00:54:25] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business 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 that we can help them. If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware and Company. And this has been the Decision Vision podcast.

 

 

Tagged With: Brady Ware & Company, Decision Vision podcast, high school, Joseph Lambert, Joseph's Junk Removal, Mike Blake, starting a business, young entrepreneur

Decision Vision Episode 141: Should I Hire a Copywriter? – An Interview with Maria Constantine, Mindmaven

November 4, 2021 by John Ray

Copywriter
Decision Vision
Decision Vision Episode 141: Should I Hire a Copywriter? - An Interview with Maria Constantine, Mindmaven
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Decision Vision Episode 141:  Should I Hire a Copywriter? – An Interview with Maria Constantine, Mindmaven

Knowing how a copywriter can help you, Maria Constantine notes, is the first step in deciding whether to hire one or not.  Copywriters make business communications easier, more effective, and build relationships through the emails and marketing pieces they write. Maria discussed with host Mike Blake how a copywriter enhances a brand presence, how they write in a client’s “voice,” how hiring one frees up the client’s time, when to hire a copywriter with a particular expertise, how to know whether they’re good at what they do, and much more.  Decision Vision is presented by Brady Ware & Company.

Mindmaven

Mindmaven is an executive coaching firm that’s spent the last 12+ years working with 100’s of leaders at companies like Reddit, Thumbtack, and Roblox, as well as heavy hitters in the tech startup world such as Sequoia Capital, Andreessen Horowitz, Benchmark, and First Round Capital.

Mindmaven helps leaders drive greatness by unleashing three key executive superpowers: Leverage, Intent, and Fellowship. With Leverage, you’ll free up 8-10 hours of your time each week by fundamentally changing how you work with your EA/Chief of Staff. With Intent, you can become more proactive and highly focused on growth, mastery, and the things that matter most. With Fellowship, you’ll learn how to build an irrationally loyal following of people (both within your company and greater network).

Company website | Twitter

Maria Constantine, Head of Educational Partnerships & Programs, Mindmaven

Maria Constantine, Head of Educational Partnerships & Programs, Mindmaven

Maria Constantine is an educator turned marketing generalist with a background in ed tech, entrepreneurship, and copywriting. As the Head of Educational Partnerships & Programs for Mindmaven, Maria partners with CEO peer groups and organizations to host educational workshops on how to free up 8+ hours/week—through reimagining the role of an EA—and how to become a leader people are proud to follow.

LinkedIn

 

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

LinkedIn | Facebook | Twitter | Instagram

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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

TRANSCRIPT

Intro: [00:00:01] Welcome to Decision Vision, a podcast series focusing on critical business decision. 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: [00:00:23] 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 when you might need help along the way.

Mike 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. My practice specializes in providing fact-based strategic and risk management advice to clients that are buying, selling, or growing the value of companies and intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols.

Mike Blake: [00:01:12] If you’d like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:31] Today’s topic is, Should I hire a copywriter? According to statistics published by Real Business – and I have no idea, by the way, how real Real Business is or not, but it sounds good. And it’s on the internet, so what could possibly go wrong? – 59 percent of people would actually avoid buying from a company who made obvious spelling or grammar mistakes in their copy. Which, I can understand. That sort of drives me crazy as well.

Mike Blake: [00:01:56] And I think many firms are faced with a decision as to whether or not they should hire a copywriter because writing has actually taken on a much greater level of importance. I think that it ever has in human history. And this is with all due respect to LinkedIn videos, and YouTube, and everything else, and videos out there, certainly, is an important platform.

Mike Blake: [00:02:25] But there’s so much written content out there and everybody now has connection and access to a global marketplace and a global audience that, you know, I’m old enough where I can remember my first emails were written on a digital emulated VT100 VAX terminal in the bottom of a computer science lab that I had to get special permission to use. And back then, email was pretty easy, right? Nobody is ever going to see it. We didn’t know yet that all caps meant that you were shouting at people. In fact, I think our terminal didn’t even have a caps button. Everything was all caps.

Mike Blake: [00:03:10] And, now, we’re in a world that has exploded where, whether we realize it or not, we’re writing all the time. We don’t do phone calls nearly as much as we do. We text. The only way I can communicate nowadays with my 19 year old son, I try to actually talk to him in a real conversation or have him pick up the phone. Forget it. He’s had a phone for five years. I don’t even think he’s set up his voicemail, so I know that that’s not a winning proposition. But if I send him a text, I’ll get something right back.

Mike Blake: [00:03:41] So, whether it’s texting, whether it’s social media, whether it’s newsletters – and we’ve had an episode not long ago about whether you should have a newsletter – writing is just so endemic now. And I think there’s some real questions as to whether we, as decision makers, should be writing as much as we are. Is it a good use of our time? Are we qualified to write on behalf of our companies our information ourselves?

Mike Blake: [00:04:14] And if you want to exhibit A as to the cautionary tale, look no further than the National Football League. We’re seeing ten-year-old emails that are being dug up, in really only tangentially related legal matter that have so far gotten a National Football League coach fired. And are now having Congress calling to potentially subpoena – I don’t know the legal grounds, I’m no lawyer – basically, years of emails involving the Washington Football Team.

Mike Blake: [00:04:45] And so, writing is just more important than I think, frankly, it’s ever been when you think about it. And because it’s so important, the question really boils down to, can we afford to to leave writing to amateurs like ourselves?

Mike Blake: [00:05:04] And joining us today to help us understand this question and talk about it is Maria Constantine, who’s head of Educational Partnerships and Programs for Mindmaven, and has also been a freelance copywriter for the past, nearly, seven years.

Mike Blake: [00:05:20] Maria is an educator turned marketing generalist with a background in educational technology, and entrepreneurship, and, of course, copywriting. Maria partners with chief executive officers, peer groups, and organizations to host educational workshops on how to free eight or more hours per week through reimagining the role of an executive assistant and how to become a leader people are proud to follow.

Mike Blake: [00:05:45] Mindmaven is an executive coaching firm that has spent the last 12 plus years working with hundreds of leaders at companies like Reddit, Thumbtack, and Roblox, as well as heavy hitters in the tech startup world such as Sequoia Capital, Andreessen Horowitz, Benchmark, and First Round Capital.

Mike Blake: [00:06:03] Mindmaven helps leaders drive greatness by unleashing three key executive superpowers: leverage, intent, and fellowship. With leverage, you’ll free up eight to ten hours of your time each week by fundamentally changing how you work with your chief of staff. With intent, you can become more proactive and highly focused on growth mastering the things that matter most. And with fellowship, you learn how to build an irrationally loyal following of people both within your company and greater network. Maria, welcome to the program.

Maria Constantine: [00:06:33] Thank you, Mike. It’s wonderful to be here.

Mike Blake: [00:06:36] So, let’s start off because it may not be obvious to everybody in the audience. What exactly is a copywriter? And what do people like you and your copywriting persona, what do you guys do?

Maria Constantine: [00:06:51] Yeah. The best way I can describe what a copywriter does is by giving you a little story. So, first of all, a copywriter, I would say, is to words, as a master painter is to paint. They can take the most basic, most regular, even most boring ideas and turn them into something that’s compelling, something that is a masterpiece.

Maria Constantine: [00:07:14] As I was thinking about this podcast, it’s really interesting, actually, just this week, I bought a bed frame from a company that I used a couple of years back, probably about six years ago now. And when I was looking for this bed frame that I just bought this week, I remembered this company from six years ago. Because when I ordered from them the first time, I got this welcome packet along with the bed frame. The bed frame was great, by the way.

Maria Constantine: [00:07:40] But what stuck out to me was the welcome packet, because the copywriter who created this welcome packet invited themselves into my life. They congratulated me on this piece that was turning a house into a home. They made me feel like they were a friend that knew me that was part of this journey with me. It was a little bit cheeky. There were some puns in there. I laughed. I took pictures of it and sent it to my friends.

Maria Constantine: [00:08:08] And this connection that I had with this person I’ll never meet and never know who wrote that is exactly why, six years later, when I was comparing models and I could go with the same company that I went with six years ago or a new company that had a cheaper bed frame – exactly the same, but cheaper – I went with the more expensive bed frame because I love these people. I feel like they’re part of my home buying journey. And that right there is the magic of a copywriter.

Mike Blake: [00:08:38] So, do copywriters only serve marketing needs? Or are there other needs that copywriters serve?

Maria Constantine: [00:08:45] That’s a great question. So, of course, typically they work in marketing but, especially in Mindmaven, we think about copywriting pretty uniquely. We have this role called an engagement manager, which is like an executive assistant, but upgraded, who works to support the office of the CEO, but also can work with a leadership team to actually increase how many opportunities come from the leadership’s network.

Maria Constantine: [00:09:16] So, if you think about it, every time you send an email, you’re building a relationship with someone, right? So, a copywriter can help actually craft that email for you – or with you, rather. We do something where we’ll have the executive dictate an email, so it’s still a genuine expression of what they’re doing, it’s still coming from them. But then, you have an engagement manager who often has some kind of copywriting experience come in and wordsmith that to really bring an extra level of intention and help the exact to really connect with people in a meaningful way. So, that’s another way that a copywriter can support a business.

Maria Constantine: [00:09:56] Also, copywriters can help sales teams. They can help you craft outreach emails or follow up emails. And even social media is under marketing, but it’s not. Sometimes there’s actually an overlap between customer service and social media. That was something I did in one of my jobs where my role was a social media manager. But a lot of times, I just spent a lot of time writing answers to customers. People would ask us questions, I would answer, but then also engage with them to, again, try to form that relationship with them. So, there’s a lot of different ways that a copywriter can support a business.

Mike Blake: [00:10:37] Yeah. You know, it occurred to me that we see, of course, the gaffe email that a company sends out. But I think the most damaging internal communications, not just emails, are ones that are internal because they don’t see the light of day, they aren’t intended to see the light of day. And, therefore, I wonder if sometimes the authors feel a little bit more careless about them. But that internal email or internal communication can be disastrous. It can be demoralizing. It can set you up for liability. It can undermine your brand. The wrong communication can send, like, five very valuable people over to indeed.com looking for their next job, right?

Maria Constantine: [00:11:35] Yeah. Absolutely.

Mike Blake: [00:11:38] And so, you know, it just gets back to at least my point – I want to pat myself in the back – it does go back to the point where we’re just writing so pervasive. And so pervasive, we don’t even think about it. And when you don’t think about it, that’s when you get killed.

Maria Constantine: [00:11:54] Yeah. Yeah. Absolutely. And actually this is the concept of good to great. That’s something that a lot of people are familiar with. One area where leaders can really shine is in their personal communications. When you send an email, you can be the person who sends two liners that are quick, short to the point, not a lot of fluff. Maybe as a follow up email to someone that you’ve met with, you want to just kind of quick grab the things that you both agreed on, you throw it into an email, you send that out.

Maria Constantine: [00:12:27] Or you can spend 30 extra seconds wordsmithing that with the support of a copywriter. And then, you leave this impact on the person you’ve met with where, again, it’s the relationship building. They’re going to feel like, “Wow. I really like this person. I’m walking away from this meeting feeling really good about this.” And a lot of that is because you took 30 extra seconds on the follow up email that you sent them.

Mike Blake: [00:12:55] So, what are some signs that a company could see that would lead them to the conversation or the question, “Hey, maybe you need to think about hiring a copywriter? What are the warning signs?”

Maria Constantine: [00:13:07] Yeah. I would say a big thing is, if your leadership team, if you are the CEO, or in the senior leadership team, and you spend more than 20 minutes wordsmithing one particular thing, I would say that is a sign that you should be hiring a copywriter. Because at the end of the day, that’s opportunity cost. As the leader of a company, you can outsource this, you can outsource copywriting. There are brilliant, talented people who do this. But there’s not a lot of people you can outsource the leadership of your company to. That is your role.

Maria Constantine: [00:13:43] And if your very valuable time is being taken up trying to figure out exactly what to say in an email or even on a newsletter or in a blog, those are things that you can do in a much more effective way while being supported by a copywriter. So, that’s a big thing.

Maria Constantine: [00:14:02] I would say, if you feel some hesitancy around this, I think it’s really common for leaders to feel like they have control over their messaging when they do the copywriting. If you are the one typing the words out, that gives you a sense of control over that, some ownership. And it feels good to have that. But if you feel yourself resisting, that you want to hold on to that for longer, that’s actually a sign. It’s probably time to let that go because that’s not your core objective as the leader.

Maria Constantine: [00:14:36] Again, there are so many other things that you can use your time for. And being able to bring in someone new is going to help you connect with your audience more, because you’re going to get some fresh perspective in there, you’re going to be able to pump out content in a much higher rate. And it’s just going to be better for you to be able to have that support to do so many more things that are really going to push the needle forward.

Mike Blake: [00:15:01] Now, of course, the name of the game with marketing is engagement. It’s one thing to write something. It’s another thing to have somebody actually care about what you wrote and read it. How can a copywriter improve engagement?

Maria Constantine: [00:15:18] Yeah. So, this, again, comes back to relationships. If a copywriter is good at what they do, they are going to give the reader the sense that you have a relationship with them. One of these funny things that we love to think that people are rational. We like to think that we make decisions based on facts and data. But we don’t. No one does. We make decisions based on how we feel, how someone else makes us feel.

Maria Constantine: [00:15:47] An example of this, actually, I subscribe to a lot of different tech newsletters. That’s a big part of our clientele. So, I’m on a bunch of newsletters, but I get busy, so I don’t read very many of them. I’ll admit I can’t keep up with all of them.

Mike Blake: [00:16:02] No, you can’t.

Maria Constantine: [00:16:02] But the one that I do keep up with is TechCrunch. And it’s not because it’s particularly better than the others – maybe some would argue it is – but it’s because the editor is a riot. Every time they write their newsletter, it starts with some personal note from the editor that has me cracking up. It is so fun and I feel like I have this connection with the editor who writes the TechCrunch weekly newsletter. And so, right there is an example of this very talented copywriter is bringing me back because of the relationship that I feel that I have with that writer on the other end of this newsletter.

Mike Blake: [00:16:44] So, it’s a very interesting theme that you’re kind of coming back to, which I hadn’t considered but it makes sense now that you bring it up, which is writing is relationships. If that’s where most of our communication is taking place and the thing about writing is that it is permanent. When we were kids who are always warned that something was going to go into our permanent record. And now that we’re adults, everything we write, it goes into our permanent record, whether we like it or not.

Maria Constantine: [00:17:09] Yeah. Exactly right. And the fun thing is that, unlike in-person communication where maybe there’s other emotions happening, of course, you want to communicate well in-person as well, but there’s not as much time, there’s not as much space to really craft the communication the way you want. In writing, the amazing thing about it, is that, you have as much time as you need. I mean, you have the opportunity, you have that space to really craft. It’s like a gift that you’re giving someone. That communication is an opportunity to make them feel good, to make them feel connected to you, to make them feel good about themselves. Every time you right something to someone else, you have that opportunity.

Mike Blake: [00:17:57] So, I think what we’re learning here is there can be an impression that you might hire a copywriter just because you don’t write well. And there is some of that, right? Not everybody can be a good writer. And I wonder if writing is kind of like driving, we all think we’re better at it than we actually are. But if you hire a copywriter, it’s not necessarily kind of admitting that you think you’re a bad writer. It’s not just for people that struggle with, you know, grammar and vocabulary.

Maria Constantine: [00:18:29] Yeah. Absolutely right. And, actually, I would say that if you have strong copywriting skills, if that’s just a natural skill of yours, it’s actually going to be easier for you to find and really leverage a copywriter. Because one skill that, at least, good copywriters will have is that they’re going to be able to emulate a tone, especially someone with agency background or who’s done freelancing similar to what I’ve done. They need to be able to switch hats really quickly and slip into the tone and the branding of whatever account that they’re working on.

Maria Constantine: [00:19:07] So, that means, if you have a really strong brand, if you have a really strong voice already, your copywriter is going to be able to hit the ground running because they don’t have to start from scratch creating a voice. They can just learn from what you’ve done that you really like. And then, again, increase the amount that they can output.

Mike Blake: [00:19:28] So, I’ve heard an argument – and please tell me if I’m wrong. Although, you’re welcome to tell me if I’m right, if I happen to be – there’s benefit to hiring a copywriter simply to gain some distance from the topic. You talked about, for example, in your answer to the first question about adding excitement. You know, if I’m working, I’ll just cop to this. I’ve been doing business appraisals and strategic advisor for 15 years. It sometimes can be hard to summon up the excitement for one more piece of collateral material, because I’ve been doing it for so long. Somebody who’s encountering it for the first time, I’ve been told, can bring a different energy, a different level of excitement that somebody who’s in the weeds every day isn’t necessarily going to be able to summon. Is that fair?

Maria Constantine: [00:20:21] Yeah. I think that’s totally fair. And thinking about this, you know, in terms of there are different sort of industries where I would say having someone with familiarity is really important. If you have a very technical business, if you have something very technical that you’re trying to communicate – because copywriters, again, you can do that outward facing like marketing copywriting, but you can also do product descriptions, technical instruction books, those kinds of things, all of that can be done by a copywriter.

Maria Constantine: [00:20:55] So, depending on what you’re looking for this copywriter to do, if it’s more technical, of course, having someone in the industry with experience is really essential, really important. But if you’re looking for that marketing spark, if you’re looking for someone to bring an excitement to reinvigorate the brand, and even to see your product from the perspective of an audience member who’s seeing it for the first time, if you think about that, if you’ve been doing this for so long, you have certain blinders because you know what to expect, you know this inside and out.

Maria Constantine: [00:21:35] But someone from the outside is coming at your product, coming at your service, the way your target client would for the first time. They’re going to find the things that make them excited, which is probably going to be similar to what’s going to get your audience excited.

Mike Blake: [00:21:52] So, is there a typical model in that? Let’s narrow this down. We’ll talk about for our audience. Most of our audience is comprised of owners or executives and businesses with, say, $100 million of annual revenue or less. For businesses like that, are they more likely to find it beneficial to hire somebody full-time? Or are they more likely to find a beneficial to outsource it?

Maria Constantine: [00:22:21] Yeah. That’s a great question. So, freelancers are amazing. You can get some incredible work from finding folks on places like Upwork or Fiverr. There’s a lot of talented copywriters out there. One thing that you want to know if you’re going to be doing a freelance position with a copywriter is that, every time you find someone new, every time you find a new freelancer, you are paying them to learn your brand. So, there’s a cost to that.

Maria Constantine: [00:22:51] A really good copywriter can do that quickly. But there is a learning time, where if you give them a deadline and say, “I need something by the end of today,” it might be a stretch for some freelancers where they say, “Well, you just brought me on. I need time to get to know your brand first, to get to know your product first.” If you have someone that’s on your team as a full time copywriter, you should definitely look for someone who can really help you in other areas of marketing as well.

Maria Constantine: [00:23:24] Most people who have in-house copywriters, especially for smaller businesses, they don’t only do copywriting. When I was a full-time marketing specialist, I was a copywriter, a social media manager, and I ran interviews, actually, for our sales and training team. So, they found areas where they could plug me in, where, “All right. You’re good at words. Here are the places where we need someone who’s good at words.”

Maria Constantine: [00:23:49] So, if you’re going to have someone full time, really think big. And when you hire that person, think about where your needs are and look for overlaps. Because there’s, like I said, a lot of copywriters who overlap with funnel building, copywriters who overlap with social media. So many different marketing channels that you can get out of someone who’s a copywriter, if you choose to do that, bring them on board full time.

Mike Blake: [00:24:16] So, if you are going to go the outsourced route – and I suspect many companies will do that if they’re using a copywriter for the first time to sort of try before they buy – where do you find them? Where do they hang out? How do you identify people that are identifying themselves as being capable in that area? How do you find them?

Maria Constantine: [00:24:36] You know, there’s a couple of different ways. Upwork is the obvious one. They’re a huge hub for copywriters. I would say, actually, maybe an unconventional one is Instagram. One thing about Upwork or even Fiverr, Elance, places like that, is that, the copywriter is going to be a little bit mad because part of their pay goes to Upwork, goes to the other platform. So, they have to charge you more, but you’re not actually paying them that much. So, there’s a disconnect there, where it doesn’t feel as good as a copywriter to know I’m worth this number, but I have to give part of that to this platform.

Maria Constantine: [00:25:19] But if you can go directly through Instagram or even Facebook, maybe LinkedIn, I would say Instagram is a big one where more and more copywriters are starting to create their branded profiles on there. I have a couple friends that I follow. A Cup of Copy is one example where she’ll just highlight some incredible freelance copywriters that are out there. I think she now doesn’t do freelance work. But she still will highlight freelancers.

Maria Constantine: [00:25:51] And if you can find someone directly, it’s better for you because you don’t have to pay them as much because they don’t have to bump up their rate to compensate for that charge from Upwork or whatever else. But then, Instagram is a great place to see their portfolio. A good copywriter will know how to market themselves as well and have a lot of great examples for you to look through.

Mike Blake: [00:26:17] Yeah. And that actually brings us back to what you touched on that I want to make sure that I addressed, are there copywriters that are industry specialists that tend to do most of their work in one or two verticals? And if so, is there a benefit to that? Is it worth looking for somebody that already has deep or at least deep-ish industry knowledge is somebody that you select for that role?

Maria Constantine: [00:26:43] Yeah. So, I would say, definitely, if you’re doing a freelance sort of set up, you should look for copywriters who have some experience in the industry where you’re working. The reason for that is, again, it’s going to shorten that learning curve.

Maria Constantine: [00:26:58] I remember I did a freelance arrangement once where I was writing for, it was like a scientific journal about fishing. And, you know, I’ve gone fishing with my dad a couple of times as a kid. But beyond that, my knowledge of fishing, technical tools, or even the type of fish, I had to do a lot of research to be able to talk about this as an expert. So, they were very happy with the product in the end, but they paid me for the research that I did. If you had someone who has a lot of experience in your technical field, then you’re able to pay more just for the actual writing and not so much for that research bit.

Mike Blake: [00:27:43] So, there’s a train of thought and I do think that there’s some value to it that suggests that companies, or individuals, executives, owners, should do as much writing as possible as they can themselves because that’s the only way to capture their authentic self. It’s got to sound like your voice, your hand, your fingers, your keyboard, whatever. How much weight do you place in that argument? How do you strike a balance? Or is it a non-issue? Maybe good copywriters are really good at capturing your voice. That’s a spurious argument. But what’s your take on that?

Maria Constantine: [00:28:27] Yeah. I would say, especially for smaller businesses where your relationship with your customers is a big part of your brand, where they feel like they’re connected with you, they feel like they’re working with you because of the ownership, because they know the owner, there is value in making sure your genius is captured whatever your authentic tone is. But the thing is, you do not have to type it up in order to do that.

Maria Constantine: [00:28:59] So, at Mindmaven, we teach people to use dictations for everything that you possibly can. We actually talk about rather than hiring a copywriter first, we tell people to hire an engagement manager first, that executive assistant plus. And all of our executives, all of our senior leadership team will dictate, whether it’s a blog or an email or anything, anything that you would have typed, you can dictate to your engagement manager. And then, they type it up and publish it for you. So, it’s still your voice, it’s still your authentic experience, and even just your personality will still come through. But you have a copywriter, especially who’s good at editing.

Maria Constantine: [00:29:42] If you’re going to go that direction, if you’re looking for an engagement manager and want someone with a copywriting experience, you look for someone who has some editing experience who really loves the details, very detail-oriented, so that they can polish that for you, so that when it goes out, you’re not worried about grammar mistakes or spelling mistakes. Also, it goes so much faster. You can talk like four times the speed you can type for most of us. And then, you have that ability, again, to leverage a copywriter but still capture your authentic contribution.

Mike Blake: [00:30:17] My question is this, is it reasonable to look for a copywriter that has the capability to write with SEO in mind?

Maria Constantine: [00:30:29] SEO is incredibly important for any business. I would say, you know, if you only are going to hire one person for SEO, if that’s all that you have in your budget, then, yes, your copywriter should have some experience with SEO. What you should know about SEO is that there are very, very technical bits of it that you have the writing side of it, which any copywriter should be able to do. But then, the technical side of SEO, really, it’s not quite fair to expect that from a copywriter. Those are like two very different skills.

Maria Constantine: [00:31:06] So, actually, as an example, here at Mindmaven, we work with an amazing firm called White Hat Ops, and they do our technical side of SEO. But then, our writing team, our copywriting team will implement the insights that we get from our technical SEO support. So, you don’t necessarily have to hire someone who has all of the magical SEO skills because it’s kind of a unicorn. That person doesn’t really exist. Either you have someone who’s an incredibly talented creative writer or you have someone who’s incredibly skilled at the technical side of things.

Maria Constantine: [00:31:41] Just starting with the writing is a great place to start. If you want to go really deep into SEO, it’s worth at least talking to an SEO expert and really considering all the bits that go into really making your website and your content optimized for search engines.

Mike Blake: [00:32:02] Okay. So, Maria, where do copywriters come from? I don’t know that people necessarily grow up saying, “Hey, I want to be a copywriter when I grow up.” I mean, I didn’t say I want to be a business appraiser when I grew up either. It’s not a criticism. It’s just the way it works. Is there a common path that people take to become copywriters?

Maria Constantine: [00:32:28] That’s a great question. I actually love that. It made me think back on my own journey getting into copywriting, and it’s fun. So, for me, personally, I always wanted to be a writer as a kid. But I had two accountants as parents. So, when I told them I wanted to be a writer, then like, “Oh yeah. That’s nice. Who’s going to feed you? Who’s going to pay for the heat in your home when you’re an adult?” Like, “Okay.” So, writing is not a career, I guess, that my parents encouraged. My parents are wonderful and encouraged all my dreams. But, you know, they like to keep me nice and pragmatic too.

Mike Blake: [00:33:04] Some dreams more than others.

Maria Constantine: [00:33:06] Exactly. Especially the dreams that pay the bills, you know? So, I went into teaching. I taught English. I taught writing, creative writing and drama. And that was a really fulfilling way to use my love of writing. But I found pretty quickly that it wasn’t enough. I wanted to do more. And somehow, I don’t even know, I think it was a friend who needed help ghostwriting their dissertation, it was something like that. That was my first freelance project. And, suddenly, I was making better money than I ever had before doing something that I loved.

Maria Constantine: [00:33:43] Freelancing can be tricky because it’s hard to be a full-time job. You’re just constantly spending a lot of time looking for jobs, which isn’t very fun, I’ll admit. So, for my copywriting journey, it’s something I enjoy on the side, but it wasn’t something I wanted to pursue full-time. I think a lot of people who end up in copywriting have a love of human behavior. People who notice things, who watch, who like to tell stories, there’s a lot of different tracks into copywriting. And I guess, I’m really focusing on the more creative copywriters because there are also, like I mentioned, more technical copywriters who will help.

Maria Constantine: [00:34:26] Actually, that dissertation project is a perfect example, a ghostwriter on a very technical dissertation. That would be a copywriter job, but someone with a very specific technical skillset. And they’re probably going to get into it because they’re just in the industry, because they have that expertise and they maybe want to make a little money on the side, they want to give back to this industry that they love. So, there’s a lot of different tracks into copywriting.

Maria Constantine: [00:34:53] I think the creative copywriters tend to be folks who love storytelling in one way or another and want to contribute to that connection that we feel when you read some good copy. Really thinking about how do I move people to action? You know, there’s a lot of power in that. That’s a really exciting thing to be able to inspire people or help people. And that drive, I think, is what is behind at least the best copywriters. I’ll say it that way.

Mike Blake: [00:35:27] An observation that I have is what you’re describing in terms of the mindset of the copyrighter very closely resembles how I’ve heard comedians describe.

Maria Constantine: [00:35:39] Hmm, interesting.

Mike Blake: [00:35:41] Because I mean, they observe the world, and they’re creative, and they have a story that they want to tell. Every comedian comes up with a series of stories that they’re trying to tell. And, you know, I wonder if there’s two sides really to the same coin. And maybe that’s why there are a lot of people who write for comedians that are effectively copywriters.

Maria Constantine: [00:36:04] Yeah. Yeah.

Mike Blake: [00:36:05] Jimmy Fallon doesn’t just show up and write jokes, right? He has a whole team of people that are writing content for him all day. So, I wonder if there’s a common thread there.

Maria Constantine: [00:36:14] Yeah. I think that makes a lot of sense. And we see humor is a huge tool in marketing. If you can get a copywriter who has the ability to write jokes, to write some good humor into your content. The amazing thing about humor is that it’s based in an understanding of the human condition. Humor is only funny because we all get it. We all recognize something in it. And that’s what the best marketing is, too, you read a piece of marketing and you say, “I see myself in that.” Or, “I didn’t even know there were words for this thing I was feeling. Now, I’m compelled to do something about it.” That’s what really good copywriting is at its core.

Mike Blake: [00:36:59] I’ll bet you’re funny. I don’t know you very well, but I’ll bet you can tell a joke or two and hold an audience. I’ll bet you got some funny stories. I’m not going to put you on the spot to say something funny. That’s idiotic. But I can tell that resonates with you because I’ll bet you in a social setting, you’re probably pretty funny. Your friends would say, if I ask them, that you’re funny.

Maria Constantine: [00:37:22] I do like making people laugh. That’s something my poor teachers in school didn’t love it because I was a bit of the class clown. But I worked hard, too, so, it was okay. I balanced it out.

Mike Blake: [00:37:36] So, I think I know the answer to this, but I don’t want to assume. Do copywriters get better over time by working for the same client or with the same company? Is there sort of like a break-in period? Maybe the first couple of pieces are good. But after developing a relationship with the company, the people, the brand, they internalize it, do they get better? So, is this sort of like a break in period or ramping up period with copywriters? Or should you expect them to just be awesome right off the bat?

Maria Constantine: [00:38:10] Yeah. I would say a really good copywriter will show you how good they are within the first week. So, a really good copywriter should be able to slip into your tone, into your brand, and produce excellent content within a week. Now, that being said, I think there’s a lot of benefit to having continuity with a copywriter because, of course, as they get to know you more, as they get to know your audience more, really, it’s almost like they build traditions with your audience, whether that’s through a specific type of spotlight content or maybe it’s the newsletter having a specific style of how you start the newsletter. You need continuity for that.

Maria Constantine: [00:38:59] It’s much harder, I should say. I won’t speak in absolutes there, but it’s much harder to do that if you have a different copywriter doing your newsletter every quarter or so. And building that long term relationship is something that is easier if you have someone there to really go deep with your audience.

Maria Constantine: [00:39:19] One thing really that comes out of that as well is kind of like what I mentioned with the social media, sometimes the copywriter is on the frontline to actually consume feedback from your customers. Maybe because your customers are responding to the emails that they wrote. Maybe it’s because they’re reaching out on social media or engaging in comments and your copywriter is responding. So, they’re really as a forward facing person to your audience. And having them around for a while allows you to have really valuable insights from your audience, but it also allows your copywriter to then write with that insight in mind.

Maria Constantine: [00:40:01] And a lot of what copywriters do is hard to translate or to, like, capture in a best practice. Sometimes it does come down to your copywriter generally feels they have a connection with your audience and so that comes out. There’s a little bit of magic there that’s – so let me backtrack. Because I said they’re going to write good content for you in the first week. They’re going to do great work for you there. But you’re not going to have that magic until they find their legs a little bit more. And that’s maybe a little bit of a difference here if we’re talking about, “Yeah. It’s okay to expect excellent things from them right off the bat.” But if you’re expecting magic right off the bat, give them a little bit of time to actually learn your audience and your product a little bit deeper.

Mike Blake: [00:40:52] We’re talking with Maria Constantine of Mindmaven. And the topic is, Should I hire a copywriter? Have you found that copywriters are more effective or less effective in certain industries? Do they work well in one particular industry versus another? Or can they work well across the board? Is there such a thing as an industry that doesn’t lend itself well to working with copywriters?

Maria Constantine: [00:41:19] No. I would say, if you are a business that sells a product, service, or experience, which is every business I have ever heard of, then you can benefit from a copywriter. Because your copywriter is going to take whatever you are selling, whatever you are giving back to the world, and connect it to your audience. Whether that’s super technical, whether it’s very emotional, relationship driven, your copywriter is your mouthpiece to the world. And getting an audience, getting more attention to what you are creating is the goal of any business. So, there’s no field that wouldn’t benefit from a copywriter.

Maria Constantine: [00:42:01] And like we were talking about earlier, even technical pieces, like your instruction books, sometimes people will kind of use those as a throwaway opportunity. They just get someone to write out something that’s basic, straightforward, no bells or whistles. And maybe that’s okay, you know, it doesn’t have to be shiny and fancy every time. But if you have a copywriter who takes care of any piece of writing that your company puts out, people are going to notice, people are going to feel connected to you.

Mike Blake: [00:42:38] I mentioned at the top of our program, videos are now sort of riding shotgun along with writing in terms of being the preferred communication. And as much as I love podcasts, I mean, podcasts are a little bit behind that. That’s fine. You know, I’m dabbling in video now and I’m predictably terrible at it. But the one thing that strikes me I wanted to ask you was, can copywriters help write scripts for people that are going on video?

Mike Blake: [00:43:14] My wife, has a skill that she doesn’t appreciate how good that is. She can turn the camera on, look in the camera, talk for several minutes and sound intelligent. Me, if I do that, I sound like I’m in the middle of a hostage tape, basically. And so, I’ve got to have a script or it’s going to be beyond terrible. And so, my question is, are copywriters now providing services to help people write scripts for their videos?

Maria Constantine: [00:43:43] Absolutely. Yeah. I did a freelance gig for a company that had only two products, if you will. They created SEO rich websites and they created videos sponsored by cities to attract tourists. That was all they did. And they had two teams of writers for both products. They had a team of writers that did SEO and they had a team of writers who created the scripts. And more than that, they created the storyline of the video. Because at the end of the day, a good video is a storytelling tool.

Maria Constantine: [00:44:18] If your video has a beginning that captures you, a middle that has some kind of conflict that you’re resolving, and an end that wraps up and makes you feel good or like you want to know more, then that video is successful. That is an amazing storytelling tool. So, to have a writer support you on creating scripts for videos makes so much sense.

Maria Constantine: [00:44:42] And even better, I’ve actually done some work in my freelance career where I wrote the storyline of the video. I wrote the copy that actually showed up on screen. And I created the video. I have a little bit of video experience, so I did the whole thing for them. So, you can find copywriters who have a really rich experience in video creation or even editing.

Mike Blake: [00:45:08] So, we’ve learned, ladies and gentlemen, that Maria is a triple threat here.

Maria Constantine: [00:45:13] I don’t know about that. I find problems and I solve them, you know?

Mike Blake: [00:45:19] So, Maria, this has been a great conversation. We’re running out of time and I’m sure there are questions that I might have asked and our listeners would have liked me to ask that we didn’t get two or maybe a question that they would have liked us to go into more depth with. If somebody wants to follow up with you on this conversation, can they? And if so, what’s the best way to contact you?

Maria Constantine: [00:45:39] Absolutely. You can find me on LinkedIn as myself, Maria Constantine. I’m also behind the Mindmaven Twitter, @mindmavenHQ. You can also email me, maria.c@mindmaven.com. And then, you can also always reach out on our website, mindmaven.com.

Mike Blake: [00:46:02] That’s going to wrap it up for today’s program. I’d like to thank Maria Constantine so much for sharing her expertise with us.

Mike Blake: [00:46:09] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business 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. If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware and Company. And this has been the Decision Vision podcast.

 

Tagged With: Brady Ware & Company, Content writing, copywriter, copywriting, Decision Vision podcast, Maria Constantine, marketing, Mike Blake, Mindmaven, writing

Decision Vision Episode 140: How Do I Select an Attorney? – An Interview with Juliana Neelbauer, Drew Eckl & Farnham, and Jackie Hutter, The Hutter Group

October 28, 2021 by John Ray

Attorney
Decision Vision
Decision Vision Episode 140: How Do I Select an Attorney? - An Interview with Juliana Neelbauer, Drew Eckl & Farnham, and Jackie Hutter, The Hutter Group
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Decision Vision Episode 140:  How do I Select an Attorney? – An Interview with Juliana Neelbauer, Drew Eckl & Farnham, and Jackie Hutter, The Hutter Group

Two seasoned business attorneys joined host Mike Blake to discuss factors one should consider when choosing an attorney. Juliana Neelbauer and Jackie Hutter addressed how to find the right fit, setting expectations for the engagement, why the heavily promoted website ratings you see are misleading, why an Ivy League law degree doesn’t guarantee you’ll receive the counsel you’re looking for, and much more. Decision Vision is presented by Brady Ware & Company.

Juliana Neelbauer, Senior Attorney, Drew Eckl & Farnham

attorney
Juliana Neelbauer, Senior Attorney, Drew Eckl & Farnham

Juliana Neelbauer is a senior attorney who is the outside general counsel for companies that are product- or SaaS-centered, or IP-driven and that work with data and sensitive information in highly regulated industries. Her practice leverages her insights in cybersecurity, data management and analytics, government contracting, fintech, consumer-web, enterprise-software, health care delivery, medical products, supply chain, film, and political action sectors. She handles the full lifecycle of her clients’ needs including venture capital or private equity rounds, subsidiary formation, contract or governmental compliance, licensing, international transactions, and mergers and acquisitions. She is known as an attorney who brings an operator’s mindset, a technologist’s know-how, and an executive’s strategy to her client’s legal concerns.

Prior to joining Drew Eckl & Farnham’s Atlanta office, Juliana was the chief operating officer of Ad Hoc LLC. Ad Hoc is a Maryland-based mid-market federal contracting company that builds custom web portals that deliver government services to millions of Americans. Juliana oversaw the scaling of Ad Hoc from a 2-person small business to a 90-employee mid-market prime contractor with a 10x increase in revenues within a 14-month period.

Juliana started her career in software and business operations, founded two high-growth companies, and has overseen the scaling of many startups and mid-market companies in the tech industry before building a technology-focused law firm in the DC-metro area. She was born in Decatur and after more than 18 years away from the State, she was happy to return with her husband and daughter in 2017 to build the Drew Eckl & Farnham technology law practice in Georgia.

LinkedIn | Twitter

Drew Eckl & Farnham

Drew Eckl & Farnham is a full-service law firm that offers deep litigation experience, strategic corporate and transactional counsel, and practical legal advice to companies, individuals and families. Their approach to practicing law is to resolve each new legal matter as expeditiously and efficiently as possible. They strive to propose a legal strategy that directly correlates with the risks involved.

Powered by their diversity, innovation, and commitment to the communities in which they work, Drew Eckl & Farnham has grown to more than 100 attorneys in Atlanta, Albany and Brunswick, Georgia and serves local and national clients throughout the Southeast.

Company website

Jackie Hutter, Principal, The Hutter Group, LLC

Attorney
Jackie Hutter, Principal, The Hutter Group

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 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.

LinkedIn

The Hutter Group, LLC

The Hutter Group, LLC is an IP and legal strategy consultancy. As Principal, Ms. Hutter advises C-Level executives on how to create and enhance return on innovation investment.

They apply decades of experience in IP and business to identify the right IP strategy for your company. They don’t just dive into the technical aspects of your innovative product or technology to generate a patent application for you. Instead, they start with understanding your customers and how your competitors will react to your success. Their goal is to make it cheaper for someone who desires access to your innovation and customers to go through you than around you.

As IP Strategy consultants, they make their living helping you attain your business goals by providing IP solutions that allow you to achieve your desired revenue or exit. Only then do they start down the patent path.

In short, they won’t tell you to spend money on IP just because you can, but because you should.

Company website

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

LinkedIn | Facebook | Twitter | Instagram

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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

TRANSCRIPT

Intro: [00:00:03] Welcome to Decision Vision, a podcast series focusing on critical business decisions. Brought to you by Brady Ware and Company. Brady Ware is a regional, full-service, accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:22] 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: [00:00:43] 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. My practice specializes in providing fact-based strategic and risk management advice to clients that are buying, selling, or growing the value of companies and their intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols.

Mike Blake: [00:01:13] If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:33] So, with this podcast, we’re taking a little bit of a different take on Decision Vision. The overwhelming majority of the Decision Vision podcast topics are framed as a binary, should I do X or should I not do X? Or should I do X versus should I do Y? And some time ago, in an idle moment, it occurred to me that that’s not the only kind of decision that you, the audience, are faced with.

Mike Blake: [00:02:03] You may make a decision to proceed, but then there’s another kind of decision where you then must select. You make a decision that, yes, I’m going to eat out. You arrive at the restaurant and then you are generally presented with the menu. Although, now I guess a lot of them give you a QR code and you have to squint on your phone, which I hate, and I hope that goes away.

Mike Blake: [00:02:24] But I’m going to kind of test out a series of these topics because I do think there’s some value to them for, what I call, sort of a second order decision. You know, we’ve decided to do X, how do we proceed? Because that how do we proceed, typically, involves, again, a choice among various alternatives of how to proceed.

Mike Blake: [00:02:46] And so, today’s podcast topic is actually sort of going Back to the Future, if you will, and you’ll understand why in a second as I introduce our guests. But today’s topic is, How do I select an attorney? And most of us, at some point in our lives, are going to have interactions with and rely upon the advice provided by legal counsel. And that advice may be in a transaction, maybe in contract law, employment law, intellectual property law, you name it. There’s a law out there and there’s an attorney out there who wants to be your advisor and provide that advice.

Mike Blake: [00:03:27] And it occurs to me that it’s not all that easy to select an attorney, not for lack of them. There’s certainly an ample supply of attorneys in the United States who are, again, happy to become your advisor and counselor. But you can be overwhelmed with those choices. And unless you kind of have a legal background or you hang out in the legal community, how do you make an informed decision as to the right person, or the right firm, or some combination of the two to represent you?

Mike Blake: [00:04:05] And, you know, because attorneys provide such critical advice, it’s important that that’s a decision that you make correctly because bad advice or a bad relationship with an attorney that causes you, maybe, to not listen to their advice and not act on their advice can undermine what might have been a good decision to retain legal counsel in the first place.

Mike Blake: [00:04:30] So, we’re having sort of a panel discussion today or a tag team, if you will. And we have two guests today, both of whom are alumni of the Decision Vision podcast. In no particular order other than looking at them on the screen, first is Juliana Neelbauer, who is Senior Associate at Drew Eckl & Farnham, which is a law firm here in Atlanta. They’re a full-service law firm that offers deep litigation expertise, strategic corporate and transactional counsel, practical legal advice to companies, individuals, and families.

Mike Blake: [00:05:03] Juliana focuses her practice on virtual general counsel for for-profit, nonprofit, charitable trade organizations, and high net worth individuals and families, which hail from consumer technology, commercial technology, healthcare, industrial supply chain – boy, that’s a mess – finance, government contracting, and political action industries.

Mike Blake: [00:05:23] Also joining me today – talking about Back to the Future – is the host/victim from the Inaugural Podcast. I think back to, like, Star Trek when they had Christopher Pike as the captain, Jackie Hutter was the first guest ever on the podcast to talk about should I get a patent. And incredibly enough, she’s agreed to come back on.

Mike Blake: [00:05:48] And 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 IP Strategist for I don’t know how many years now. I don’t know, it’s got to be at least a decade. Every time I open up LinkedIn, she’s named like another top IP something or other.

Mike Blake: [00:06:09] 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. Prior to striking out on her own, Jackie was a senior intellectual property lawyer at Georgia Pacific and a shareholder at an Atlanta intellectual property law firm.

Mike Blake: [00:06:31] She started her non-legal career as a research scientist in the innovation group of a hair and skin product company. She lives in the Decatur area in a groovy mid-century house with her husband. Far too many pets, and we may hear one of the dogs barking in the background today for no extra charge. And she has two daughters in college. Juliana and Jackie, welcome back to the program.

Jackie Hutter: [00:06:52] Thank you.

Juliana Neelbauer: [00:06:54] So glad to be here.

Mike Blake: [00:06:59] So, here’s a question I want to jump in, and we could almost talk an hour on this one topic, but we’ll just sort of see how this goes. My question is, how do people end up with bad lawyers or at least lawyers that are a bad fit for them? As I said, there’s no shortage of lawyers out there. There’s no shortage of information. You can find out about them, whether they wanted to be found out or not. But, nevertheless, we all encounter scenarios in which we have clients, contacts, friends that are frankly unhappy with their legal counsel, and sometimes they feel trapped in that relationship. In your mind seeing it from the semi-inside, how does that happen?

Jackie Hutter: [00:07:42] Well, I thought about this on the way to drop my daughter’s really awful car at the car mechanic this morning. And the reason why people end up with bad lawyers is the same reason why so many people end up with bad mechanics. They just don’t know what they’re looking for. And, usually, you know, the good news is, it doesn’t really matter because it’s a pretty simple thing. It doesn’t take a whole lot of skill. It takes some skills. It take some expertise. But it doesn’t take a whole lot of expertise.

Jackie Hutter: [00:08:16] But in the case of my auto mechanic – who I adore, by the way – I learned about him from a very dear friend who was himself a car mechanic. And he doesn’t fix his own cars anymore and he happened upon this gentleman’s business. But, importantly, my good friend who introduced me to this car mechanic collects vintage cars. He has a Jensen, and he doesn’t take his Jensen to our car mechanic because he knows that our car mechanic is not qualified to fix a Jensen.

Jackie Hutter: [00:08:52] And my point there is that, sometimes you need a skillset that is really, really hard to find. And not only do you not know what the general skillset is for something but, again, it won’t matter. But if you need something very, very specialized and you don’t know, and you’re likely not going to know, you’re not going to know whether the guy on the other side of the counter knows how to fix that or not, because it’s probably pretty likely that they’re going to say, “Oh, yeah. I can fix this.”

Jackie Hutter: [00:09:24] And when you end up with a with a Jensen, if you will, that’s currently worth $100,000 and then they screw up the wiring on that, it is not worth $100,000 anymore. You’re going to be pretty upset but the damage done and did.

Jackie Hutter: [00:09:41] Now, I think it’s just the nature of the specialty. You could talk about that with any number of other specialties. Doctors, sometimes you just have a broken bone and it’s pretty easy. But sometimes it’s something more serious. And you hope and you should expect that the doctor, he or she, is going to recognize that they are really qualified to do what needs to be done. But a lot of times they don’t.

Mike Blake: [00:10:14] So, in your case, you benefited in your mechanic story. You benefited from the adage that if you want to catch a jewel thief, hire a jewel thief.

Jackie Hutter: [00:10:23] Yes.

Mike Blake: [00:10:24] And, actually, I’m going to come back to that because I do think there are resources that at least purport to sort of be that higher jewel thief to catch a jewel thief. We’ll get there. Juliana, anything that you want to add to that discussion?

Juliana Neelbauer: [00:10:37] Of course, I have something I want to add to that. I’m a lawyer, I love to talk. But, also, because, quite frankly, the reason why I am sitting in this seat and in this role in life, the reason why I went back to law school, was because I personally felt this pain of how do you find the right lawyer and then having a lawyer that you’re not really happy with. And after having that experience in my own businesses, I regretfully shared it with some other technology company owners and discovered, “Oh, I shouldn’t be embarrassed about this. We’re all suffering this fate or a large number of us are.”

Juliana Neelbauer: [00:11:16] And I thought at the time, “Well, this is just a market inefficiency or a gap that needs to be filled.” And so, perhaps foolishly, I left the tech industry, and went back to law school, and put up a shingle, and started serving my management consulting clients with legal services as an attorney in my own firm. And I’m still doing it, so I guess it’s a good sign. And I was trying to solve some of that problem.

Juliana Neelbauer: [00:11:45] But to Jackie’s point, being an industry specialist and who could also provide legal specialty for that industry so that I had deep understanding of your transactions, of your business models, but also of the law that you needed to then overlay on top of that.

Juliana Neelbauer: [00:12:02] But, in addition to all of that, I think it comes down to, now that I’ve been in the seat for a while and I see it from the other side, I think that the client has just given very limited education about the different types of lawyers that are out there, what they can actually do for you. And so, the expectations that they bring versus the expectations, quite frankly, that the lawyer has when you are starting an engagement, the time is rarely spent to truly vet that those are aligned because, yeah, you need a specialist.

Juliana Neelbauer: [00:12:42] But sometimes I find in my practice, half of my clients I would guess, come to me because of my IP/specifically technology industry or product driven experience. And so, they initially come to me with an IP related question, a licensing question, a commercialization question, and that’s all they really want. But then, very quickly, we discover that all of the other aspects of their business that an outside general counsel can provide maybe are even more of what I end up doing for them over time than what they initially came for me as a specialist for.

Juliana Neelbauer: [00:13:17] And so, I think we have to put it on the lawyers that we don’t do a great job of making sure that our clients understand what we really can do. And that’s also outcomes, to Jackie’s point, like, I think people expect that by hiring a lawyer and making that investment, there should be almost like a guarantee and an outcome that’s better than what they could have had on their own. And in many cases, that is the case. But, you know, what is that spectrum of possibility and then also what is the style of communication and working styles like every other human being.

Juliana Neelbauer: [00:13:55] Your lawyer is a part of your team. It’s like hiring a co-founder. And if you don’t think of it that way, if you think of your lawyer as just sort of another vendor that you’re plugging in and out, you’re probably not getting the most value out of them. But you could be. It’s an inefficient relationship. But, also, you’re much more likely to have that feeling of dissatisfaction because you’re not giving them as much information, they’re not giving you as much. And if your communication styles aren’t aligned, what you want delivered to you is not expressed clearly. And then, if they don’t express to you how they’re going to deliver the work so that it’s most useful to you, I think you’re going to be pretty unhappy or, at least, not thrilled.

Jackie Hutter: [00:14:37] And I just have a quick follow up to what Juliana said. The question is, is your lawyer solving a problem or is this lawyer solving your problems? And a lot of lawyers like to solve problems and get their joy, get their pay for solving problems. But they may have very little to do with what your real problems are as a business.

Juliana Neelbauer: [00:15:02] That’s an excellent point. I think Jackie, by the way, I mean, giving her a shoutout, I love sharing this time with her because I refer a lot of clients to her, because I know that she’s not just going to solve a patent problem, but the client specific one. And that is a huge distinction, and so I’m a better lawyer to my client and they’re happier with me when I refer them to someone like Jackie. And I had the gumption to do that as well.

Jackie Hutter: [00:15:29] Right back at you. Right back at you.

Mike Blake: [00:15:31] So, Juliana, you mentioned something in passing, I actually think it warrants a little bit of expansion. So, if you don’t mind, I’d like to pause a bit on that. And I’d love Jackie to comment as well. You talked about a scenario under which maybe an attorney is brought into the team for an initial task. And then, that task develops into a relationship. And, therefore, the spectrum of problems that the attorney is going to address will become broader and the relationship will become deeper.

Mike Blake: [00:16:06] And it strikes me that maybe that is perhaps an example of best practices of how to hire an attorney, to try to figure out a model of, instead of just sort of like a mail order bride kind of thing where you’re getting married sight unseen, can you have a date or two to see if you actually like each other before you really kind of dive in and commit to a massive relationship? Does that make any sense?

Juliana Neelbauer: [00:16:35] It does. And that is almost always the way it starts. Maybe two clients, three, who come to me and said, “You’re going to be our outside general counsel immediately and you’re going to handle everything.” It’s usually a discrete project. Now, the reason why I think that is, is partly fee fear. And that’s a whole another reason, which is the 800 pound gorilla in the room for why people are unhappy with their lawyers. And we definitely need to talk about that some more.

Juliana Neelbauer: [00:17:04] And I think in those cases where it was the case, it was because also critically, I was referred. Or in effect, they knew my work quality, and my work product was going to be good, and they had their expectations set as far as how that would be delivered from another attorney or another professional who could speak to that. Or they actually observed my work product because they saw me in action in a different context, either through mentoring at university or teaching at a university, collaborating with someone else’s project where I wasn’t their counsel and then they wanted me as their counsel.

Juliana Neelbauer: [00:17:38] And so, again, when we live in this world where it’s very difficult to evaluate lawyers or even just assemble the collection of those who are available in a specialty so that you can begin to search them properly, I think it’s really important that you look for folks who you can observe their skill, their expectation of how they want to work, how you want to work with them, and their working style. You know, how they deliver work and how they communicate ahead of time, if possible.

Juliana Neelbauer: [00:18:10] And I know most of the time you have an urgent fire and now we’ve actually got to hire a lawyer. And so, there’s a rush and you don’t have that. And so, in that case, even more, I would say if it’s an attorney who is referred by another attorney, that’s a very good sign, in my opinion.

Jackie Hutter: [00:18:26] What I’d like to say is, it’s just as important for me to love my clients. And I had spent a lot of time, and I’ve actually worked very hard at making sure that the folks who are going to work with me, it’s going to be a good fit. Because if it’s not a good fit, they’re not going to be happy and I’m not going to be happy.

Jackie Hutter: [00:18:46] So, I’ve created an intake system where I get to know people. I make sure that they’re the right people for my practice because I have a very bespoke, different type of practice. But the reason I learn that is through, you know, real, not very comfortable experiences. I woke up as an equity partner in a law firm where I was being paid hundreds of dollars an hour and more money than I’ve ever made in more than 15 years ago when I left that position.

Jackie Hutter: [00:19:18] And I woke up one day and I said, “I have nothing in common with my clients. We don’t really click. And yet they were paying me ridiculous amounts of money, and neither of us liked each other.” And that’s no shade on them, that’s no shade on me, but it was not a good fit from that standpoint. And, yet, because I was working at a law firm with massive overhead, associates reporting to me, all the stuff that goes along with that, my business model did not allow me to say, “You know what? You need to go somewhere else because this is not a good fit.” And that creates unhappy clients, unhappy lawyers, and it becomes a cycle that’s really, really difficult to extricate yourself from.

Mike Blake: [00:20:08] So, I want to stick on that point, too, because I think that’s really important. I don’t know if it’s right or wrong, but I can say as a matter of my practice, I do make clients in a way sell themselves to me. I make them jump through hoops to make sure that I think it’s a good fit. It’s sort of a life’s too short thing. And I also don’t want to have a bad outcome because there’s just a bad fit. I don’t want that on my record basically, right? And I suspect that both of you do the same thing in some fashion or another.

Mike Blake: [00:20:41] And to somebody listening now, going back to the topic how do you choose a lawyer, is it a red flag if I’m a client and I call an attorney up and I say, “Hey, I need this done. They say, “Ok, I’ll send over an engagement letter.” No conversation. No hoops to jump through. No prequalification. Not even any hint of a client acceptance process if you’re a larger firm. Is that in itself a red flag? Like, “Geez, really?”

Juliana Neelbauer: [00:21:10] Yeah, 100 percent. Like, I’m going to go back and say it again because I think it’s worth repeating, you know, it’s like hiring a co-founder. It’s like hiring another C-suite operator of your company. And so, to Jackie’s point, yeah, you got to get along. And in her case, love her clients, which is why I love referring mine to her. But, also, you’re going to be in the trenches.

Juliana Neelbauer: [00:21:33] By the way, my clients and I joke that when they hire me, they expect me not only to live a long time, but to outlive them, because they don’t want to have to go find another lawyer if I die before them. So, I’ve got to be a lawyer forever and I’ve got to do it longer than they’re going to be alive. And so, you know, as a result, like this is a long term relationship.

Juliana Neelbauer: [00:21:53] I have many clients now that has exits from companies. Some had companies that didn’t work out. And I will stick with those founders in different contexts for years and years and years. And so, is that worth an extra hour, an extra 30 minutes of discussion upfront? I think so. I don’t know about you. I wouldn’t want to get married to somebody – going back to your analogy, Mike – that I hadn’t had at least a 30 minute worthy conversation. When you don’t do that, both sides are treating this like a purely transactional relationship. And that is the fiction. This is a deep relationship over time.

Jackie Hutter: [00:22:32] So, to Juliana’s point, I tell clients and any potential new client, that contacts me, I make sure that in our initial call, I say, “You know what? You’re not going to hear this from any other lawyer I know.” Maybe Julianna, because I have done an intake with her. I say, “I will always tell you the truth, even though you don’t want to hear the truth. And I will always treat your money like it’s my money. And if that’s not, if that’s not something you want, if you want somebody to say yes to you all the time, somebody who makes you comfortable -” which is, effectively, what I was required to do when I was an equity partner at a law firm, I couldn’t make my clients uncomfortable because – oh, my gosh – if they’re uncomfortable, if I cause them any kind of like, “I think maybe we should try something different,” they might go down the street to another expensive law firm.

Jackie Hutter: [00:23:23] Because in actuality, there was really no competitive differentiation between what I was doing and any number of expensive law firms that also existed in the city – I have a federal practice. I’m a patent lawyer – but throughout the country.

Mike Blake: [00:23:39] So, let me change gears here. If you look at most law firm websites and the bios, this is changing a little bit, I think, to be fair. But it hasn’t changed enough, in my view. An attorney’s academic credentials are very much front and center. And I’d like to get both of your viewpoints, how important should the brand name of the school – you never know if that person graduated top or bottom of their class – how much should the name of the school matter in terms of selecting who an attorney is going to be?

Jackie Hutter: [00:24:17] You’re asking somebody who went to a fourth tier law school in another city that had the same name of a law school here in Atlanta that wasn’t accredited. My resume went into the circular file of every law firm that I applied to. And I was at the top of my class. I had all kinds of rewards or whatever. And bottom line is, I went to a really good school for where I lived in Chicago, but nobody knew it outside.

Jackie Hutter: [00:24:46] And I was fortunate enough to get brought in to a very prestigious law firm, working with a very prestigious lawyer/litigator at the time. And everything is history in that regard. But I can say that some of the least talented lawyers I have ever worked with and worked directly with went to some of the best law schools, unquestionably.

Jackie Hutter: [00:25:09] But how do you know that from the outside? At the end of the day, where you went school, often, is an infinity game. At least there’s some perspective. There’s some assumption that somebody else has done the filtering. And you have to worry about fewer things. But that requires you to have absolute confidence that the filtering was done correctly. And that’s irrational, if you ask me.

Juliana Neelbauer: [00:25:38] Thank you for saying that, Jackie. A hundred percent. Well, it’s a filter. But is that filter relevant to why you’re hiring the attorney? So, I went to, I’ll say, an upper mid-tier law school, University of Maryland School of Law. And I went to an Ivy League undergrad. And neither of those degrees are framed on my wall in my office because that’s how much I think they matter to my practice of law, by the way.

Juliana Neelbauer: [00:26:05] But I do agree that they do create an efficiency and a filter for those who need to quickly sort through a thousand lawyers. And it matters too. And why would that matter? If you are in the middle of a high stakes, a federal appeal, and the people who are going to determine the outcome of your issue, your problem, are people who care about that, it could be a useful tool to consider putting in the quiver or a useful arrow to put in the quiver to have an attorney who’s got a storied degree or background.

Juliana Neelbauer: [00:26:43] If you need someone to write your IP commercialization agreement for a specific type of software, I think a much better filter is whether that person understands that software or software in general, or commercialization of software in the world or commercialization at all in the jurisdictions where you’re looking at, or if they’ve ever had to think about the commercialization of a patent, in Jackie’s case, and how that actually plays into your business plan.

Juliana Neelbauer: [00:27:11] And so, I think it is perfectly relevant and reasonable if you’re looking to use the appellate system to change the law for your industry to try to get somebody who’s got the credentials that a federal judge would appreciate, who’s going to help adjudicate and determine the outcome of your appeal. But in most other cases, I think industry experience, I think the ability to mesh with you and your perspective as far as how legal services are going to be prioritized and delivered communicates well with you, has good rapport, and has just the raw skill to do the work is much more important.

Jackie Hutter: [00:27:49] And I would say from the standpoint of the business, you know, an entrepreneur that needs real world guidance in a way that somebody who’s a large corporation may not need that kind of guidance, you’re much more likely to find somebody with real world experience that went to a “lower tier law school” than went to one of the Ivies that may have had a job before, may have gone to school at night.

Jackie Hutter: [00:28:16] Because you’re not going to get somebody who went to GSU versus here in Atlanta if somebody went to Georgia State at night versus somebody who went to Emory. And you want them to to give you practical advice. And the reason why they went to GSU, Georgia State, at night was because they were working in a laboratory during the day to feed their family. In the patent world, that’s a big deal. Somebody who has actually got practical science experience so their law degree isn’t as “premier” as going to Emory. But the reasons they went to the lower tier school or indicative of their expertise as you need in context.

Mike Blake: [00:28:54] So, Juliana alluded to an image which I want to touch upon – so it’s great you’re basically doing my job for me – and that is starting off with a list of a thousand lawyers. And one way one might get a list of a thousand lawyers might be to look at the Martindale-Hubbell website ratings, that sort of thing. And I assume that’s still a thing. I actually didn’t look for this podcast, but I suspect it’s still out there. So, from people or industry insiders, definitionally industry insiders, how useful are those?

Juliana Neelbauer: [00:29:34] How many referrals have you gotten from those kind of sources, Jackie?

Jackie Hutter: [00:29:37] I don’t. A lot of them are business models of the folks that do the books. I was a Super Lawyer one year. I had no clue why I was named a Super Lawyer. But they sent me a solicitation, “Send us X number of dollars so you can have your pretty picture in the magazine that comes out every year.”

Mike Blake: [00:30:03] So, I want to come back to that.

Jackie Hutter: [00:30:06] There’s some criteria for reaching that point. But I actually don’t know what it is. Now, on my top IP global IP strategies or whatever, they do solicit an advertisement for me every year for several thousand dollars. I have never advertised and that has not affected my ability to be named every year. So, you know, it’s kind of a black box as far as I understand.

Juliana Neelbauer: [00:30:35] I would say I have the same experience. I mean, maybe I get like a spam email here, and I’m not sure if it’s a spam email with a referral from some of these places. But, honestly, that is not any part of my marketing or my business development pipeline at all. And so, if I was out in the world trying to find a lawyer – that’s either the Jackie or the Julianna or someone similar who I felt like would be a good fit – and I could bet they were quality, I think it’s kind of logical to go to your industry events. You could go to the legal committee or related industry events, but those are kind of adjacent. Those tend to be both people who care a lot about effecting legal protocol for your industry or are marketing themselves to other lawyers.

Juliana Neelbauer: [00:31:26] But if you go to the actual industry events or blogs and see which lawyers are actually engaged with your industry, and are present in it, and interacting with it, and accepted and embraced by it, I think you can get your hundred person list or even a five person list, and that five person list is going to probably be a lot more representative of who is doing the real work related to what you need done than the opposite.

Juliana Neelbauer: [00:31:52] I mean, if you just go to a podcast digest and put in patent law Georgia, Jackie Hutter’s podcast is going to come up and you’ll be able to listen to her work product, in effect, by listening to her talk about the specific issues that you care about. I think it’s a much better way to create a list.

Jackie Hutter: [00:32:12] And the neighborhood list serve, like so many of us have these days. And people ask, “I need an estate lawyer. Who would you hire?” I’m pretty sure that when I, as somebody who the neighbors know, is a senior lawyer says, “Yeah. I have used this person. And even though I’m not an estate lawyer, I like what they do.” I know nothing about estates and trust law, but I know somebody who’s handling my stuff, my things that are important to me, and I feel they’re doing a good job. The likelihood that they’re going to also do a good job for you is probably better. Not always the case, but I at least know who I would and wouldn’t recommend.

Jackie Hutter: [00:32:54] Because when I recommend somebody, my reputation is on the line. I consider my reputation to be on the line. Even though I don’t make any money from that but, still, people rely on me for my expertise, and it’s meaningful to me. So, I would ask people who are in the business who have gone farther along than you, and maybe had an exit or maybe had a situation, and they were happy with the result.

Jackie Hutter: [00:33:21] And, you know, Mike, you always like to say, what business result are you seeking to obtain from whatever decision you’re making? And so, look around for other people who have been through the entire process and see what their result was and whether or not they were happy with that.

Juliana Neelbauer: [00:33:40] Can we highlight that, what Jackie just said in particular. The part about it’s her reputation on the line, Mike, you said the same thing about taking in a client and that you want it to be a good relationship because, quite frankly, it’s going to hurt your reputation if it goes sideways. This is so important.

Juliana Neelbauer: [00:33:58] It’s not just, you know, reinforcing existing networks or cronyism to talk to other lawyers, or your accountants, or your wealth managers, or your community entity, or industry group leaders about who they like because they have that real world experience. And it’s their reputation on the line if they refer you to somebody who you’re going have a bad experience with.

Juliana Neelbauer: [00:34:21] And oh, by the way, for Jackie and I under certain jurisdiction interpretations of our ethical rules under the bar, when we refer someone to another service provider, particularly another lawyer, in some cases we can be liable for malpractice performed by that secondary attorney. Now, not in all cases, but in some cases you can. So, there’s that thin risk added on top of our reputational concern that all lawyers feel every time we make a referral to any other third party service provider for our clients. And I don’t know about you, I take that very seriously because you can’t control that other person’s actions. So, you’ve got to know from experience they’re going to do a good job.

Jackie Hutter: [00:35:03] I’m always very careful also telling somebody how I know somebody. I have worked with this person or they have actual knowledge of the work they’ve done or I met them and they seem like they know how to do it. But I’m not going to necessarily push into any real degree of knowledge about whether I know that they’re trustworthy or not.

Jackie Hutter: [00:35:27] And maybe that comes from the fact where I grew up. I’m from Miami, back in the bad old days, and everybody wanted to steal your money. So, what it was or do something else that was not good because, you know, it’s Miami watch Miami Vice, it’s actually worse in Miami Vice. It wasn’t as pretty. But in any event, you created your own networks and those weren’t who you went to church with or who you went to school with or anything, because you couldn’t trust anybody in an environment like that unless you really knew them.

Jackie Hutter: [00:36:01] And so, we created these very diverse networks of people, and the focal point of creating those networks was the canoe that they were trustworthy. And the reason they were part of your network is because they had been vetted by somebody else you trusted. And I treat every referral I have today like that. And I cannot attest to that. I’m absolutely honest and straightforward about that.

Mike Blake: [00:36:30] So, you touched on something that I need to make sure that I cover today. A big negligence for me as a podcaster if I don’t. And I’m probably going to put you ladies in the hot seat, but I know you can handle it. What is a Georgia Super Lawyer? What does that mean? If I’m a client and I see that somebody is a Georgia Super Lawyer or Super Lawyer someplace in their bio, and they shout it out on LinkedIn, I mean, does that say, “Man, I got to hire that person.” Do I have a cape?

Jackie Hutter: [00:37:03] This is a much funnier question than it was a year ago, because there’s now a guy who’s got a set of billboards – have you seen these, Juliana? At least they’re up on 85 on my way. Next time you’re going to go down the highway from your house, look at this. I’m sorry, we’re going sideways.

Jackie Hutter: [00:37:21] There’s a bunch of billboards by a lawyer who says he is the superlawyer.com, which is not a Super Lawyer, TM. Because a Super Lawyer is a trademark of the company. So, this guy, it’s like, how could he be the superlawyer.com but he’s not a Super Lawyer, TM. So, that’s indicative of the fact, it’s like, “You don’t know. I don’t know. Who knows?” It sounds like a trademark infringement suit to me.

Jackie Hutter: [00:37:56] But bottom line is, like I had alluded to before, I was a Super Lawyer. I have lots of friends who are Super Lawyers. You know, there’s some filtering mechanism that they get you. Juliana, you have more information on that.

Juliana Neelbauer: [00:38:12] Yeah. So, our firm looked into it, because there was, actually, a women’s law group said, “We should make sure that the women and the folks who are represented through the diversity committee are also participating in whatever it needs to be done to ensure that they can be nominated, if their own networks are not deep enough to nominate them.” And so, we looked into it.

Juliana Neelbauer: [00:38:34] And for Super Lawyers, unlike some others, you do have to create an account to nominate somebody so that you can get into their marketing pipeline as a lawyer. And it is only other lawyers nominate lawyers. You have to have multiple other lawyers nominate you and they can’t be from your firm. Maybe one or two, but you can’t. And as a nominator, you can’t just nominate everyone in your firm. For every person that you want to nominate in your firm, you have to nominate either one or two or two or three other lawyers.

Juliana Neelbauer: [00:39:04] And so, what is your motivation? I mean, there isn’t a lot of disincentive, again, to not just nominate a bunch of other people. Except for the fact that, again, if you do so, you’re on the record in some level and potentially there’s some liability there. But since this is through a pipeline and it’s not directly referring to a client, that’s less of a risk. I would say, there are some where it definitely feels much more pay to play.

Juliana Neelbauer: [00:39:28] Super Lawyers does, in fact, have a process where a certain number of other lawyers, more than two, have to nominate you and they can’t be from your firm. So, there’s less of an incentive to just nominate your own team. And so, that is not a perfect filter. It’s better. It is a filter, I think. I think it has some value.

Juliana Neelbauer: [00:39:50] Because, again, I just have a feeling from my experience that our jobs are hard. It’s very easy to make mistakes in the job that requires as a baseline you can perfect. Because think about it, if we aren’t perfect, that could lead to very bad outcomes for our client. And so, almost every lawyer could wince about thinking about moments in life and in practice where they haven’t been perfect. And often that happens in the context of performing in front of another lawyer who observed you being imperfect.

Juliana Neelbauer: [00:40:24] And so, to get another lawyer to want to say, “Yeah, this person is super” – and, oh, by the way, lawyers are very competitive – I think actually there’s some value to that. But beyond that, I think to my point, it is not a deep filter. It is a filter.

Jackie Hutter: [00:40:45] So, I don’t have a marketing budget and I haven’t been nominated for being a Super Lawyer since I was in a law firm. And the referrals that I get, typically, are from my own clients who are happy with what I do. So, presumably they think I’m a Super Lawyer, but it’s not in the context of some magazine that gets floated and it becomes marketing collateral that’s distributed, you know, in all kinds of press releases and stuff every year.

Jackie Hutter: [00:41:15] But more power to anybody whose name is Super Lawyer. Like, I have dear friends who were Super Lawyers. No shade on them. But if I was choosing a lawyer, you know, it wouldn’t be because they were a Super Lawyer.

Juliana Neelbauer: [00:41:26] That might be a great filter question when you’re interviewing a lawyer going to some of how do we workshop, your real question here, Mike. One of the questions that you could ask is, what percentage of your existing clients are referrals from your other clients?

Jackie Hutter: [00:41:42] That’s a good question.

Juliana Neelbauer: [00:41:43] And just even if they’re a young lawyer and they just haven’t had enough time to have it be that high of a percentage, it would be very informative for me as a potential client to hear that answer and how they address it.

Mike Blake: [00:41:54] I think that’s a fair question that probably has different degrees of relevance depending on what area of law. It’s probably okay if you’re seeking a personal injury attorney, it may be okay that you saw them on the side of a bus, because just the nature of that business or DUI kind of thing. I know that’s not your world. But you’re right, it does sound to me intuitive that a very fair question to ask is, where do most of your referrals come from?

Jackie Hutter: [00:42:25] So, Mike, you brought up the bus side, and this is something that’s very passionate about this. And I tend to drop a lot of criticisms to my fellow attorneys at times as you think you know. And this is not just buses, this is not just billboards, but this is any swag that you get. If your potential lawyer takes you to lunch, and gives you some swag, and takes you to baseball games or whatever, and you’re not a real client who’s delivering revenue to them now, recognize those billboards don’t pay for themselves. That swag doesn’t pay for themselves.

Jackie Hutter: [00:43:04] So, it’s a loss leader for them where they’re going to get that money back somehow, whether they’re going to beat it out of your hide or out of every client’s collective hide. But from my perspective, any time I see a law firm that is spending huge budgets on marketing in a way that does not result in substantive content for a client that lets them learn something to drive better decisions, that’s like a television commercial watching a primetime TV show.

Mike Blake: [00:43:43] Is it fair for a client to ask an attorney for specific references? Somebody that they could call and ask a client or previous client how happy they were with their work?

Jackie Hutter: [00:43:53] Absolutely. And a couple of years ago, there’s a very famous attorney – of course, I won’t say their name – who was a contact of mine. And asked that attorney for referrals, they were in the startup world and wanted to see whether they were a good patent expert, because they’re in all the startup shows. They’re everywhere. So, you know, it’s like you would think this would be the person that you would hire to do your startup patent work for you, very senior person in town.

Jackie Hutter: [00:44:22] And this patent person told my contact that it would be impossible to give the names of other clients that they had worked for because that would be a violation of attorney-client privilege. And I had never heard anything like that before. And I said, “Well, if they don’t want to introduce you to their existing clients and to satisfy clients, you, by then, can take a negative inference on that and assume that there are none.”

Mike Blake: [00:44:51] [Inaudible].

Juliana Neelbauer: [00:44:52] Oh, okay. Okay. Okay. I’m going to weigh in on that. So, I agree with everything Jackie said up to the very last inference there being such a broad brush. There are certain types of practice areas where the client that might be related to what you’re doing, in fact, might be needing some confidentiality because there’s an active litigation matter. And just the fact that they’ve hired this attorney, this fancy, well-known attorney could be very bad for their business

Jackie Hutter: [00:45:18] But in the patent world, your name is public record on the pad.

Juliana Neelbauer: [00:45:24] Yeah. So, I just don’t want that to be painted across all law. But not every single client, if they only have three clients or four in your industry, and they’re all new, and it’s a litigation attorney and a litigator, and so you need a reference. They should be able to give you some client reference or multiple, even if they can’t give you one that might be directly related your industry right now. And then, also, it’s information. You now know breaking into your industry is a more recent experience for that attorney because they aren’t currently in active litigation right now. And that usually means they’ve only had that kind of client for the last two-and-a-half years max. So, there are other attorneys that might have more experience in your industry. Maybe you should look around.

Mike Blake: [00:46:16] We are talking with Jackie Hutter and Julianna Neelbauer. And the topic is, How do I choose a lawyer? In the financial world, there’s often public record when people sort of have marks against them, whether it’s an official censure by an accrediting organization or a complaint filed with a regulatory agency. Is there anything similar that pertains to the legal profession where I could do my own background check and see if there have been any complaints filed, say, with the Bar Association or if there’s been a censure or anything just to at least do that that basic level of due diligence?

Juliana Neelbauer: [00:47:00] Yes. In fact, unlike other industries, there’s at least three places that you can search to see if your attorney has been subject to an unhappy client outcome. One of them is the the court system itself, where they can file a malpractice claim against the attorney. Another one is a grievance proceeding with the bar association. And if you’re not sure how to search for that, you can even call the bar association and they have clerks that will help you look that up. That’s a second resource for that.

Juliana Neelbauer: [00:47:28] And the bar one for the grievance is nice, because even if it doesn’t rise to a level where the client can afford to file a claim in court against their attorney, or it doesn’t rise level where they could show damages easily where they could file a claim in court, if they still have a legitimate ethical grievance with their attorney, they can file a grievance with the Bar Association.

Juliana Neelbauer: [00:47:48] And then, third is the Better Business Bureau. I mean, again, this is where I come back to, you know, we are vendors, we’re partners in your business, but we are running our own operations here. And so, you could certainly have consumers file unhappiness-es with the Better Business Bureau too. And Jackie are there others?

Jackie Hutter: [00:48:10] Yeah. But while practically speaking, however – and I have recent experience on this – we had an outside counsel for two of my clients. One was an entrepreneur, a small business. And another one is a fairly large company, well-known company. And outside counsel was doing work for us under my management. And who knows? Maybe he has a health issue, maybe he has a drinking problem, who knows? Because for a lot of lawyers, especially when you have time dependent things like litigation or you have dates, you expect your lawyer to report stuff to you and to give you the information, and, of course, respond, but also respond in a timely manner.

Jackie Hutter: [00:48:53] And in this case, we found out because no news was not good news in this case. And what ended up happening is, there was a clear pattern in retrospect that this lawyer was not maintaining ethical standards. Yeah, it was likely malpractice. But for both of these clients, the decision was just like, “Let’s just find somebody else and move on and mitigate the damage here.” Because I was managing things, we found that before there was real damage.

Jackie Hutter: [00:49:25] But what the effect was just, basically, let this guy off because he did things. It didn’t make sense for us to make a complaint, you know, because there really was no damage because we were able to stop that damage. But this guy is just going to go ahead and continue to whatever other health problem he has or drinking problem or whatever, whatever reason he’s not maintaining ethical standards.

Jackie Hutter: [00:49:51] And is he the equivalent of letting somebody drive a car without all his faculties? Maybe. But he’s not going to hit my client. He’s not going to hit me anymore. It’s an awful thing. But what do you do? And so, relatively speaking, just like with medical malpractice, there’s very few complaints made where there should be.

Juliana Neelbauer: [00:50:13] Although there are kind of legal industry gossip sources, too, that you could go to. Some of them are not very journalistic at all and potentially are defamatory. Others are, maybe, a little bit more balanced like Above the Law. Which, by the way, if you search for Jackie on Above the Law, all you’ll find is positive stuff about her.

Jackie Hutter: [00:50:40] Wait. Am I on Above the Law at all? I didn’t know I’m in Above the Law.

Juliana Neelbauer: [00:50:42] You are. You’re an IP Dealmaker listed on there in an article for winning an award as an IP dealmaker at the IP Dealmakers Forum.

Jackie Hutter: [00:50:51] That was a trivia contest.

Juliana Neelbauer: [00:50:54] Yeah. But you still get a plug. You get a plug on there. So, if you want to kind of see what might not have been filed, but it’s sort of like gossip – and it’s usually about a firm, not necessarily a specific attorney, unless a specific attorney does something very untoward – that is another source you could go to.

Juliana Neelbauer: [00:51:13] And Law 360 covers the industry, but it is more, I would say, always positive generally and not necessarily so much gossip. But it’s sort of like, again, dating and hiring anybody in your C-suite. It’s not always easy to know unless, again, you had this referred to you by one or more people in the field or people in your industry. And this is why I go back to, like, watch this person in action as much as you can, hear them in action, read them in action as much as you can.

Mike Blake: [00:51:45] We’re running overtime here, but if you can bear with me, I have a couple more questions I’d love to get through because I think they’re important. And one of them is, how would you advise somebody who’s retaining counsel but there’s a disconnect between either the reputation or just the general feeling between an attorney and the firm for whom they work? It could be a situation, maybe you like the attorney, but maybe you don’t love the firm so much. Or maybe it’s the opposite. Maybe you don’t love the attorney, but the firm has a reputation of being the “BEST FIRM IN TOWN, TM.” Do you try to reconcile those things? Do you run screaming if those two things are not aligned, you just sort of shuffle the deck and start over? Do you prioritize one or the other? How do you address that mentally?

Juliana Neelbauer: [00:52:41] Again, this relationship is really between you and the attorney for the long term. In my experience, the firm can make that relationship more or less fun based upon administratively, like how easy they make it to work without attorney or difficult. If that attorney is not empowered, unfortunately by their colleagues that they might work for, to work directly with you, and their colleagues are going to insert themselves in your work, and you don’t like those colleagues, you, as a client, have a lot of power to request who you want to work with and make that demand. And say, “I only want to work with so-and-so,” or “Not that person.”

Juliana Neelbauer: [00:53:21] And I had a client whose business model was in ESG space, and she was a female founder who was helping to fund other female founders. So, shoutout to EnrichHER and Dr. Roshawnna Novellus for what she has done and her success. And I’ve had clients in that space who come to me like her or others who have said, “I really want all of the attorneys who work on my project to meet diversity standards of the Mansfield Requirements -” which is a diversity standard, “-to represent my company.” And so, in some cases, “I want only female attorneys” or “I only want people who represent that on my case.” And in some cases, you can have quite a bit of power to get that outcome if the firm is willing to accommodate that and if it’s a legal request for you to make.

Jackie Hutter: [00:54:09] And then, also, if you’ve been assigned an attorney that you just don’t feel is the right fit for you, and if you like the managing attorney, I have no qualms with telling my primary IP or outside LP counsel, “No. I don’t want that person working on my stuff.” Or, “I just did not feel that they really were passionate about,” “They didn’t get me,” that kind of stuff, that’s not happening anymore and we need to find somebody else.

Juliana Neelbauer: [00:54:39] And, in fact, the bar rules make it very difficult, if not impossible, for a firm to place a non-compete so that the attorney can’t work with a specific client. Because it is so important in our judicial system and our justice system for the client to have that choice of who is going to represent them. And so, to Jackie’s point, you have the right to ask for counsel that you request, and need, and want. And if you don’t feel like you’ve got good representation, you have the right to request representation that you want.

Mike Blake: [00:55:17] So, ladies, we’re sort of out of time, but I know we didn’t get to all the questions that I wanted to. And there are probably other questions that we cover, but maybe somebody, a listener, would like to go into more depth or, hey, maybe somebody who listen to this wants to hire one or both of you guys, can they contact you for more information? And if so, what’s the best way to do that?

Jackie Hutter: [00:55:43] Well, for me, I’m at jackiehutter@gmail. And I also have a podcast, Winning with Patents (and IP), that’s now entering its second season. And I write a lot on LinkedIn, so look for me on LinkedIn. And if I sound like somebody you think might be fun and create value for you to work with, I’d love to hear from you.

Juliana Neelbauer: [00:56:05] Similar to Jackie, I’m pretty prolific on LinkedIn. I’m on Instagram. I’m on Twitter. I’m getting off of most of the Facebook products and may wind down my Instagram presence soon. But for the time being, I’m cemented there. So, you certainly can reach out to me there, neelbauerj – that last name is so long. You certainly are welcome to look at the show notes to get that email address. But neelbauerj@deflaw, D-E-F-L-A-W, .com is my email address. And I’m certainly always interested to talk to new potential clients, especially those that have heard me or seen me speak or write. And so, you know, seeing that work product, if this feels like a good communication style, I’m very interested in speaking with you.

Mike Blake: [00:56:53] That’s going to wrap it up for today’s program. I’d like to thank Jackie Hutter and Juliana Neelbauer so much for sharing their expertise with us.

Mike Blake: [00:57:01] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review with your favorite podcasts aggregator. It helps people find us that we can help them. If you like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware and Company. And this has been the Decision Vision podcast.

 

Tagged With: attorneys, Brady Ware & Company, business attorney, choosing an attorney, Decision Vision podcast, Drew Eckl & Farnham, Jackie Hutter, Juliana Neelbauer, Lawyers, Mike Blake, The Hutter Group

Decision Vision Episode 137:  Should I Form a Company Advisory Board? – An Interview with Karen Robinson Cope, Mara6

October 7, 2021 by John Ray

Karen Robinson Cope
Decision Vision
Decision Vision Episode 137:  Should I Form a Company Advisory Board? - An Interview with Karen Robinson Cope, Mara6
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Karen Robinson CopeDecision Vision Episode 137:  Should I Form a Company Advisory Board? – An Interview with Karen Robinson Cope, Mara6

What’s the function of an advisory board, and how does it differ from a board of directors? Should you have both, and why? Who should you have on your advisory board? In this conversation with Decision Vision host Mike Blake, Karen Robinson Cope, Managing Director of Mara6, answers these questions and much more. Decision Vision is presented by Brady Ware & Company.

Mara6

Mara6 is an advisory and consulting firm that helps young companies and entrepreneurs identify needs, develop scalable business models and drive innovation, strategy, and revenue.

LinkedIn

Karen Robinson Cope, Managing Director, Mara6

Karen Robinson Cope, Managing Director, Mara6

Karen Robinson Cope is a visionary and inspirational leader who takes ideas and disparate teams and builds great companies. As evidenced by her successes as a CEO of multiple early-stage, fast-growth companies, and numerous boards, she can identify a new market opportunity and then develop a clear strategy to quickly become a market leader. She is a decisive leader who is not afraid to take risks, appropriately utilizing strategic financing partners and developing sound financial metrics to keep new initiatives on track. She has been recognized numerous times over the last twenty years by multiple
organizations for her excellent leadership skills.

In a variety of industries and companies, Karen has joined an existing leadership team where she has developed the vision, rallied the existing team as well as recruited star performers, and executed a bold strategy that resulted in market leadership as well as strong financial performance.

She is exceptionally able to motivate marquis clients to embrace new companies or new business models because of her authenticity, servant leadership, and superior communications skills. In three prior companies where she was CEO or a board member, she was able to successfully build great companies generating tens of millions in revenue, drive new markets and industries and provide shareholder, employee, and customer value.

Karen holds a BS in Political Science and Economics from the University of Redlands. She serves on several Boards of Directors where she is helping to identify new opportunities, drive innovation, and expand businesses globally. In her spare time, she and her husband Rick, also a CEO, like to travel to out-of-the-way places, experience wild adventures, and mentor young entrepreneurs.

LinkedIn

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

LinkedIn | Facebook | Twitter | Instagram

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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

TRANSCRIPT

Intro: [00:00:01] 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: [00:00:21] 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 when you might need help along the way.

Mike Blake: [00:00:42] My name is Mike Blake, and I’m your host for today’s program. I am 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. My practice specializes in providing fact-based strategic and risk management advice to clients that are buying, selling, or growing the value of companies and their intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols.

Mike Blake: [00:01:11] If you would like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:29] Our topic today is, Should I form a company advisory board? The Business Development Bank of Canada did a neat study a while ago showing the companies with advisory boards enjoy stronger growth than those without. And you can look that study up on the internet.

Mike Blake: [00:01:44] Interestingly enough, there’s actually not a lot of empirical study that’s been done on the impact of advisory boards, yet there’s a lot of interest in them as well. In addition, I’ve learned over the years that I’ve been doing this, whatever this is, that a lot of people have a misunderstanding of what it is that an advisory board does. But I think it’s something that’s on people’s minds.

Mike Blake: [00:02:15] I know of companies that have never considered advisory boards that are now exploring that question because the world simply, as we all know, has changed so much from what it was nearly two years ago now. That companies need an outside perspective or at least feel that they would benefit from outside perspective to understand how to survive and thrive in this new normal.

Mike Blake: [00:02:42] And so, joining us today is Karen Robinson Cope of Mara6. Mara6 is an advisory and consulting firm that helps young companies and entrepreneurs identify needs, develop scalable business models, and drive innovation strategy and revenue. She especially enjoys driving customer and shareholder value.

Mike Blake: [00:03:00] Karen Robinson Cope is a visionary and inspirational leader who takes ideas and disparate teams and builds great companies. As evidenced by her successes as a CEO of multiple early stage fast growth companies and numerous boards, she can identify a new market opportunity and then develop a clear strategy to quickly become a market leader. She is a decisive leader who is not afraid to take risks, appropriately utilizing strategic financing partners, and developing sound financial metrics to keep new initiatives on track. She’s been recognized numerous times over the last 20 years by multiple organizations for her excellent leadership skills.

Mike Blake: [00:03:38] In three prior companies where she was CEO or board member, Karen was able to successfully build great companies generating tens of millions of dollars in annual revenue, drive new markets and industries, and provide shareholder, employee, and customer value.

Mike Blake: [00:03:52] Karen holds a Bachelor of Science in Political Science and Economics from the University of Redlands. And she serves on several boards of directors where she is helping to identify new opportunities, drive innovation, and expand businesses globally. In her spare time, she and her husband, Rick, also a CEO, like to travel to out-of-the-way places, experience wild adventures, and mentor young entrepreneurs. Karen Robinson Cope, welcome to the Decision Vision podcast.

Karen Robinson Cope: [00:04:19] Mike, it’s so good to hear from you.

Mike Blake: [00:04:22] So, before we get started, I have to share with you something that I don’t think that I’ve ever told you, but I’ve told numerous other people, and you need to be let in on it. You actually taught me one of the best lessons I ever learned about valuation. And it was years ago when you and I were sitting on a panel together and somebody asked about valuation. I chimed in and I said something, I don’t know if was smart, dumb, or somewhere in between.

Mike Blake: [00:04:51] But you said something which I’ve never forgotten, and I don’t know if this is your original thought or not, but I attribute it to you happily. And that is that, “You can name any valuation that you want as long as I get to name the terms.” And someday I’m going to do a podcast on that topic exclusively and maybe try to cajole you back in. But I now use that all the time when I teach classes, advise clients, whatever the context, it comes up all the time, and I make sure to give you full attribution for that.

Mike Blake: [00:05:23] So, before I get started, I want to, on this public forum, to thank you for that bit of wisdom because it really has made me a better advisor and better practitioner.

Karen Robinson Cope: [00:05:32] Well, I appreciate your kind words. You know, as many years as I’ve been doing this, and you and I have been doing this together for many years, I’m more convinced than ever that terms are so critical. And I’ve had some great successes where the valuation made may have been really great but the terms were not and, vice versa, where the valuation was off the charts and yet the terms weren’t. And I can tell you that it’s all about the T, the terms, the terms, the terms. So, I’m glad you’ve been able to use that because I find it so valuable.

Mike Blake: [00:06:02] Well, it just comes up all the time. And I promise everybody in the audience, actually, we’ll cover the promised topic today. But in particular, as I see unicorns come to market, and one of the things you recognize and I suspect you sense this as well, not all unicorns are created alike. And some unicorns are legit unicorns and some unicorns got there because the founders felt like they wanted or needed that headline number, and they gave away the store in terms of terms so they could go to market with that headline number.

Karen Robinson Cope: [00:06:37] You are so correct. And, again, you see this more and more. Quite often, again, it’s very exciting – and, Mike, you and I, I think even met back then – when I was first raising money in my first company and our first valuation was a couple of hundred million and then it got to a billion dollars and we were so excited. And I got to tell you that the terms is what it’s all about. And I’ve seen it again and again. If you don’t fully understand what that cap table looks like in those contractual terms, you can be blown away when you’re thinking about a great exit. And by the time the founders are counting their pennies, it’s only pennies because they’ve given it all away through the term.

Karen Robinson Cope: [00:07:15] So, you’re exactly correct. It’s a great topic, and you and I should have that conversation again, definitely over drinks or on a podcast.

Mike Blake: [00:07:22] Maybe both. I mean, we’re not FCC regulated.

Karen Robinson Cope: [00:07:26] It sounds like a great idea.

Mike Blake: [00:07:29] All right. So, let’s dive into it because our audience is expecting us to cover advisory boards. And so, let’s start off as I do with most shows, provide us, please, with a definition of what an advisory board is and how is an advisory board different from other kinds of boards, such as a board of directors?

Karen Robinson Cope: [00:07:49] What a great question. I get asked this all the time. Let me start by saying, a board of directors, contrary to what you may have read or heard, it’s got a legal and a fiduciary responsibility. It literally is responsible for representing all of the shareholders interest. Compare that to a board of advisors, and a board of advisers has no legal, has no fiduciary. They’re really there to advise. And I think it’s important to recognize, if you’ve got investors that are expecting a return, that it’s important that you legally and from a fiduciary perspective, make sure that you have directors that are representing the interest of all your shareholders.

Karen Robinson Cope: [00:08:33] However, if you own the company 100 percent or it’s a tightly controlled company, then a board of advisers may be the appropriate direction for you. And this is another one, I think, Mike, you’ll enjoy this – I like to say that a board of advisors can help you opine. You ask the big questions. They talk about esoteric. They talk about the big picture. They talk about strategy. But when it comes right down to it, all they’re doing is giving advice. Compare that to a board of directors when they literally have a fiduciary and a legal responsibility to ensure that the shareholders interests are protected. So, they’re very different, and I would suggest, have a very different role.

Mike Blake: [00:09:16] So, I’d like to riff on this. I’m going to kind of tear up the script here a little earlier than I normally do, because I think that distinction you just made is really important. Because my observation – and please correct me if you think I’m wrong – is that, because of its nature, a board of directors in many ways is going to have an incentive structure that is fairly defensive in nature.

Mike Blake: [00:09:46] Whereas, a board of advisors might be able to encourage more risk, encourage more of an expansive offensive nature. Because there is no fiduciary responsibility, you can afford to dream a little bit bigger, if you will, and encourage more risk taking. Whereas, perhaps a board of directors, because of that fiduciary responsibility, and nobody ever gets sued for taking too much money, but you sure can be sued if you lose a lot. Is there that kind of dynamic there between the two? Is there that kind of different personality, if you will?

Karen Robinson Cope: [00:10:22] Absolutely. And we’ll talk a little bit later about the program that I actually developed is a nonprofit organization to help companies develop board of advisors. I think you said it so well. Think about of a board of advisors, it’s almost like spitballing. You can kind of sit around, brainstorm a little bit. Their job is – I literally mean this word – opine. To think about the big picture, think about what could, what couldn’t, why, why not. It’s not to ensure that you do it. It’s really to get you to thinking about, where the board of directors has a very defined legal set of responsibilities. And part of that is to make sure that you manage risk.

Mike Blake: [00:11:04] So, I think another distinction is kind of the relationship with the founder and the CEO, right? And I think we’re just kind of expanding upon that last part of the discussion, which is, an advisory board might be thought of as a resource, but a board of directors could very easily be simply defined as the boss of the CEO.

Karen Robinson Cope: [00:11:26] I think that is so well said and that is exactly correct. When you own your company 100 percent or it’s a tightly controlled company, you might want some advice, but bottom line you’re responsible for those decisions. Conversely, when you have a board of directors, the CEO reports to the board of directors. And they, therefore, in most cases or many cases, have the ability to actually fire the CEO, even if you’re one of the largest shareholders.

Karen Robinson Cope: [00:11:53] So, it’s a very different mentality. And you’re correct and I think you said it really well, Mike. One way is to kind of think big and one way is to think of all the things that could go wrong and let’s make sure we manage against them. Very different perspectives.

Mike Blake: [00:12:09] Yeah. And from my vintage, anyway, maybe the best example of a board firing a CEO is Apple’s board firing Steve Jobs.

Karen Robinson Cope: [00:12:19] A hundred percent correct.

Mike Blake: [00:12:20] Which he said – by the way, interestingly – he thought that was actually one of the best things that ever happened to him because it made him a much more mature leader when he came back.

Karen Robinson Cope: [00:12:29] Absolutely. Because, as you know, once you take on shareholders, it doesn’t really matter what you want. It matters what’s best for all the shareholders. And especially when you have multiple rounds of funding and in each subsequent round, as you said, we talked about earlier in the conversation, there’s different terms for each one of those. And you as a CEO, if you have outside investors, it’s incumbent upon the board to make sure that every one of those shareholder groups and shareholders is being treated fairly.

Karen Robinson Cope: [00:13:01] Whereas, if you own your own company, you can make decisions. And with a board of advisors, you can make decisions that are in your best interest that may not be in your employee’s best interests, it may not be in your customer’s best interests. But, again, if you don’t have outside investors and you don’t have that outside board, you have tremendous flexibility. And like Steve said, as a board of directors, I think that it really helped him to, again, not only be a more mature leader, but obviously helped him to, unbelievable, what has happened to Apple over the last 20 plus years. An amazing story. And part of it, I think, was because Steve came back as a much more thoughtful leader.

Mike Blake: [00:13:46] Yeah. And he realized that he had friction and he realized that Apple is no longer sort of his personal playground. And that does force you to think in a different way. And, frankly, that’s what a board of directors is supposed to do, too.

Karen Robinson Cope: [00:13:59] Absolutely correct. Whereas, the board of advisors, again, I don’t want to say it encourages the CEO in their worst proclivities, but I think providing advice allows you to really think outside the box and do some what ifs.

Mike Blake: [00:14:14] So, since we’ve identified now that a board of directors and a board of advisors serve two different purposes and really have two different personalities and responsibilities, is it out of the question that a company might have both?

Karen Robinson Cope: [00:14:29] Absolutely. And I think that’s a great question. Again, part of it is the legal and the fiduciary responsibilities. Part of it is – and I think you said it’s so well, your question a few moments ago – about risk management. But also think of it as almost like the advisory board is there, as you think about your dreams, how might you be able to do that. Which is, again, a board of directors would take that same topic and say, “Okay. What could go wrong? How do we mitigate against that? How does this improve overall shareholder value?”

Karen Robinson Cope: [00:15:05] The board of advisors almost gives the CEO or the executive team a chance to almost role play or do a trial pitch, if you will, and think about what might happen. Remember, when an executive team or CEO is presenting to the board, they’re literally being evaluated, potentially for compensation, potentially for other opportunities. Whereas, an advisory board is really there to help you dream about that, help you think about it, and bring in that necessary expertise that you might not have in your executive team.

Mike Blake: [00:15:40] So, let’s drill a little bit down to this, because I think in some cases it may seem strange that a CEO, founder, and executive team that maybe one of the reasons they founded the company in the first place was not to have to be answerable to anybody, would suddenly choose to give up, if not their independence, but at least sort of share the wheel, if you will, a little bit or share the sandbox with somebody else. So, what are the benefits that you typically see that advisory boards offer that are attractive to companies?

Karen Robinson Cope: [00:16:16] Great question. Again, you and I have both been entrepreneurs and both CEOs and so forth. When you think about it, you’re running so hard, you’re so involved in the business, you’re thinking about, How do I sell? How do I collect? How do I build? How do I deliver? How do I manage my supply chain? You’re so focused on so many things, especially early on in the company’s lifecycle.

Karen Robinson Cope: [00:16:43] Typically, what a board of advisers can do is they’ll literally step outside. You almost think you have your own little bubble as you’re the CEO, and you’re the executive team, and you’re running 24 hours, or 28 hours a day nonstop. And I like to say you focus on the urgent, because that’s what you have to do. You have to worry about how am I getting my customer to pay so I can pay my employees? And that’s an urgent issue. Long term, is that an important issue? Probably shouldn’t be. And so, I like to say that an advisory board can help you think about the important, not just the urgent. Does that make sense?

Mike Blake: [00:17:18] Yeah. It does. And it’s something I’ve mentioned on other podcast before, there’s a third dimension to that now – at least that I’ve heard of that I learned through a TED talk a while ago – which is impact. And I think one of the things that a board can do also is help guide an entrepreneur or a team to ensure that whatever time or investment they’re making in X, that X is also not only addressing something important, but also impactful.

Karen Robinson Cope: [00:17:50] Absolutely. Great comment.

Mike Blake: [00:17:51] It has not just a long term outlook, but long term and sort of fundamental implications.

Karen Robinson Cope: [00:18:00] Absolutely. Great. And that’s a great comment. The other thing – and, again, we think about entrepreneurs as young. And you and I both know that’s not the case. Entrepreneurs can be any age – quite often, especially in an early stage company, they can’t afford to get the best. Potentially, they can’t afford to get the best talent out there. If you’re in a software company, you might be able to get some good software, but you may not be able to get the best person in cybersecurity or the best person at e-commerce.

Karen Robinson Cope: [00:18:32] And quite often what an advisory board member can do is bring in that really kernel of information or expertise that you need that you couldn’t afford to get. And what you’ll find, especially in a city like Atlanta – and you and I’ve talked about this before, Mike – successful people really do want to give back. They really do want to help this next generation. They really do want to help entrepreneurs succeed. And I think you’ll be very surprised to see so many successful entrepreneurs or corporate executives that are more than happy to give back, especially in an advisory board role, because they don’t have the legal and the fiduciary responsibilities and the headaches that come with being a board of director.

Mike Blake: [00:19:16] I mean, I think this will be the case, somebody who is going to be listening to this in a couple of weeks when we publish it is sort of taking inventory about maybe themselves, or company, their team. What are some signs that a company might benefit from an advisory board? What are some triggers that might get a wise founder to start thinking in that direction?

Karen Robinson Cope: [00:19:42] Great question. So, I think the first one is you’re kind of stuck and you’re trying to figure out what to do next. And, again, one of the things that I will say, and, again, I look at it from both being an advisor as well as a board of directors, but being an adviser, but also coaching companies on this, you’ve got to be a CEO who’s willing to listen and learn.

Karen Robinson Cope: [00:20:06] If you’re in a position where you think you know all the answers, if you’re in a position that you don’t think you need any help and you’re just adding a board of advisors to check off a box, wrong answer. For you to get a really good board of advisors, you need to be coachable and you need a position where you say, “Here’s what I need. You know, I’m kind of stuck here. What do I need to do to go to the next level?”

Karen Robinson Cope: [00:20:28] The second thing, I think, is when you’re thinking about going into a new market or kind of changing direction, again, if you’ve got both an advisory board and a board of directors, it’s almost like the advisory board is an opportunity to kind of brainstorm – I call it spitballing – to think about what could happen, and kind of think through the ramifications, and help you to solidify your plan before you actually present it to your employees, your shareholders, et cetera, your board of directors.

Karen Robinson Cope: [00:20:57] I think the third thing would be, if there’s some regulatory – and in this world that we live in, there’s so many new regulations coming on, on a regular basis. It’s hard to keep up with them – if you want to understand – again, I’m not talking about replacing your counsel. That is not what we’re talking about. This is not expensive advice that you’re trying to get free. It’s really about that word I use, opine.

Karen Robinson Cope: [00:21:21] A very dear friend of mine is the CEO of a very large real estate firm. And she and I were together just a couple of years ago and we were kind of brainstorming about the impact that regulatory could have on her. And, again, her lawyer gave her all the issues. Her lawyer told her, here’s the legal issues that are coming, here’s the regulatory issues, here’s what the law and the regulations says. Our job was to brainstorm about it and say, “Well, what could that mean? What might that mean for agents? What might that mean for contracts? So, does that make sense as a kind of a different approach than your paid advisers will give you?”

Mike Blake: [00:22:04] And, you know, that actually segues nicely into the next question, which is that – in fact, I think this is true because I think I’ve observed it – some founders struggle with the distinction between an advisory board and paid advisers, and what you can expect of one versus the other. And I wonder if you see that too. And if so, can you help the listeners understand where is the distinction? Where do you draw the line where you might be either asking too little or asking something that your professional advisers maybe ought to defer to the advisory board and vice versa?

Karen Robinson Cope: [00:22:50] Great question. And I know I’ve said this word now twice, and I promise I won’t say it again, Mike. And my friend, Fran Dramis is the one that told me about this word opine. I just think that really goes right to the heart of what it is an advisory board. Their job, again, is to opine and think about the what ifs. I like to say that a good advisory board is probably going to ask you more questions than give you answers.

Karen Robinson Cope: [00:23:20] Again, like my girl friend, we were sitting down and talking about the impact of regulations on real estate. And, again, her lawyer gave her all the specifics. What we did is she and I said, “Well, what if this happened? Okay? What would happen if this happened?” Whereas, a paid adviser’s job is really to get it, roll up their sleeves, and help you get the job done. Again, typically, because there’s a financial transaction that’s occurred, there’s probably more of a tactical or an implementation. Not always, because clearly you can hire a strategic advisory company. But, again, I think the difference is more of thought provoking questioning and an advisor is more of an answering. Does that make sense?

Mike Blake: [00:24:10] Yes, it does. So, what are some things that might be unreasonable to expect of an advisory board? What might be trying to ask too much of them or taking it too far?

Karen Robinson Cope: [00:24:23] Great question. And a lot of that goes back to kind of the agreed upon terms, if you will, the compensation. There’s a lot that goes into it. And if I could just digress for a minute. One of the things that’s so important if you’re thinking about advisory board is – two things. The first one is, Why do you want that? And I like to say, write it down. And the reason I say write it down is because it forces you to be very specific.

Karen Robinson Cope: [00:24:51] So, an example would be, “I need an advisory board because there’s so much going on with sustainability. I need to better understand how that impacts my business. Therefore, I want to bring in some experts from both ESG. I want to bring in some experts on these various things to help me better understand that.” Go ahead.

Mike Blake: [00:25:13] So, you know, I’m curious if you’ve seen the same thing. I think some entrepreneurs, or managers, executives have been disappointed in the past with some of their experiences with advisory board simply because, I think, they are hoping an advisory board could fill a gap left by a fundamental weakness or hole in the company’s management or in their professional advisers, for that matter. And, consequently, they’re asking people to fill a role where they might hire and fire them. But that’s not the role for an advisory board to fill, is it?

Karen Robinson Cope: [00:26:02] And that’s exactly the point, I think, for a couple of reasons. Number one, again, it’s unrealistic. And to be frank, it’s disrespectful to go to someone like you. If I were to go to you and say, “Mike, I really want you to be on my advisory board.” And the first thing I do is say, “Mike, can you do a full blown evaluation for me?” It’s disrespectful. It’s kind of like when you have a party and your neighbor comes over and they’re a dentist and you say, “Hey, what do I need to do with my teeth?” It’s disrespectful.

Karen Robinson Cope: [00:26:32] I think that part of it is defining exactly what you’re looking for, but recognizing that the adviser’s role is really to advise. And, again, I’m going to keep going back to this point, ask questions. The advisor’s role is to say, “Have you thought about X? Have you thought about Y?” Not, “Here is the answer to X or here’s the answer to Y.” If you want the answer to that and you want someone to go through – I don’t want to say the heavy lifting – and roll up your sleeves, you need to hire someone for that role.

Karen Robinson Cope: [00:27:09] And, again, I’m sure you go to parties and people say, “So, Mike, what do you think my company is worth?” And it’s fun over a cocktail to maybe spitball. But if they say, “No. No. Give me specifically what it’s worth,” that’s disrespectful.

Karen Robinson Cope: [00:27:23] And whether you’re an advisor or someone to want that from you, they need to be prepared to pay you for that service. And so, to me, part of it is understanding exactly why you want the advisory board, recognizing that these are probably people. In many cases, your advisors are people you probably couldn’t pay to get on your board. In many cases, when I try to match advisors with companies, they are people, typically the CEO, even if they ever knew them, would never be able to get them on their board.

Karen Robinson Cope: [00:27:55] And part of it’s because we have a very specific definition of – what I call – the rules of engagement. And again, to the extent you can define those upfront, agree on those up front, and even go so far to say, “Hey, Mike. I really want you on my advisory board because you’ve seen a lot about how the financial markets react to X, Y, Z. I’m thinking about next steps and I’d love to have your guidance as we kind of think through the questions I should be asking.” To me, that’s a perfect role for an advisory board, which is very different from, “Hey, Mike. I really need you to tell me exactly what my company is worth and what are the three things I need to do to make it more valuable?” Is that distinction kind of clear?

Mike Blake: [00:28:41] Well, it does. I’m also amused at the the image of somebody asking me for advice and what their company might be worth, as I’m literally holding a martini with three olives in my hand. If you really want to make a $20 million decision with me in that state and you’re not even paying me, I don’t know that you really want to go in that direction.

Karen Robinson Cope: [00:29:07] That’s a great comment. I hear you.

Mike Blake: [00:29:09] So, let me ask this, 44would it be crazy for a company to even have multiple advisory boards if, maybe, boards that have a specific discipline in which they’re experts and you may just need separate resources?

Karen Robinson Cope: [00:29:28] It’s a great question. I don’t know if I have got a very good answer. Let me give you my initial thought of that. On the surface, I say absolutely. Because you see this quite often with health care companies, they might want a technical board, which again helps them with, really, the technical – again, I’m going to go back to questions. It’s very different than like a customer advisory board. Many people have successfully brought in their customers. It’s a chance to hear firsthand what customers think about not so much current product, but about the future product roadmap.

Karen Robinson Cope: [00:30:05] And it’s very possible that you could have multiple advisory boards. The thing that I would caution a CEO, especially a younger – and I don’t mean younger in age – but younger in tenure of the company to pull together is to really make an advisory board work, you’ve got to be prepared to spend some time on it. And let me tell you what I mean by that, and I’m not sure you could do that if you have multiple advisory boards. Does that make sense?

Mike Blake: [00:30:32] It does. And let’s go into that because I didn’t want to ask that question. What are the best practices to maximize the value out of the advisory board?

Karen Robinson Cope: [00:30:42] I think that’s probably one of the most important questions, if not the most. The first thing is, again, clearly define what you’re looking for, and that includes wanting to solve these couple of issues. And I usually think it’s the big issues that you don’t have time to solve on a day-to-day basis of the company. Figure out the term, how long?

Karen Robinson Cope: [00:31:03] I’m going to try to get together once a quarter – I’m not going to try. We’re going to have a meeting once a quarter. Here’s the meeting. Let’s go ahead and get the calendar set up at the first meeting. It’s going to last for two years or your term is for two years. What I’m looking for you, Mike, to bring to the table is I want you to bring X, Y, Z to the table in terms of your thought process. That’s what I’m looking for you to bring. Which, by the way, I’m asking Karen to bring a different set of expertise, if you will.

Karen Robinson Cope: [00:31:32] Then, when you put that together, the most important thing is to make sure that you use the time diligently. That involves two things. The first thing it involve is get information to the company directors or the advisers in advance. This nonprofit that I’ve started, we put together a binder which, basically, you have to provide some financial information, some customer information. There’s a set of legal questions. Basically, you put together your planning, if you will. You get that to your advisors in advance and then you say, “These are the things I want to cover. I want to cover these two questions.”

Karen Robinson Cope: [00:32:14] Typically what I like to say is, the things that keep the CEO up late at night especially in your first meeting. What are the things CEO that you really have a hard time sleeping because you were thinking about that? Get that meeting, get the board presentation put together in advance, and run it as if it’s truly a board of directors meeting. And by that, I mean you make sure that you start at a certain time, there’s a formality to it, and then you follow up with action items.

Karen Robinson Cope: [00:32:46] And so, that’s important for two reasons. The first reason is, it helps the CEO and the management team learn how to work with the board. Quite often, I use advisory boards as almost an intro before they get a fiduciary board. We teach the discipline, the cadence of that. Again, especially if you own the company or its closely held, it teaches you some accountability. Because even though the board can’t fire you – I don’t know about you, Mike – but when I’ve been in advisory board meetings and somebody asked me a question and I have a bad answer, I feel accountable. So, I think the board of advisors, if you can run it in that way, it teaches tremendous accountability.

Karen Robinson Cope: [00:33:30] And then, I think the other thing is, even when your board advisors have left the board and moving on to other things, keep them abreast of what they’ve done and how they’ve helped you. I so appreciate you starting this call today saying, “You know, Karen, something you told me years ago has really stuck with me.” I can’t tell you how good that makes me feel. And you’ll find that your advisors – again, people that you didn’t think you could ever get as an advisor – you can get them and keep them if you are diligent about keeping in track with them. Don’t just call them when you need them. Have that formalized meeting schedule. Follow up with meetings.

Karen Robinson Cope: [00:34:13] And even after they’ve gone onto other things, say, “Hey, one of my favorite ones is I was able to get the CIO of the Southern Company, again, a very high position, into a company that was literally $20 million in revenue. This person would have never joined that. To this day, they still speak positively about it because, to this day, the CEO continued to give them updates.”

Karen Robinson Cope: [00:34:36] So, that’s kind of, I think, the right way to structure advisory board. It’s the right way to get the most value from it. And it’s the right way truly – and back to the Steve Jobs comment – it really helps that CEO in the executive team grow, and grow into their next level, it helps them grow to be a better executive. And then, hopefully, at some point they’ll be in a position to give that expertise back to a younger, if you will, CEO or executive team.

Mike Blake: [00:35:06] So, there’s so much to unpack there, and there are two things I do want to unpack. One, the thing you just mentioned, which I hadn’t really thought of, but it makes all the sense in the world now that you articulate it. And that is that there’s a long tail element to an advisory board if done right, particularly if the company is successful. If it’s not, it’s not so great. But there is this unique opportunity to develop relationships that could theoretically help you for the life of your company, even over the life of your career.

Karen Robinson Cope: [00:35:42] So well said. And I love the word long tail, that is so correct. And I’ve seen it again and again when you watch these relationships that form. And quite often, if you’re one of the companies that got a huge amount of money at a ridiculous valuation, you may not have the challenges to get that A-plus team. And you and I might know, most entrepreneurs don’t end up with that $100 million out of the gate cash infusion. And so, for them to be able to get great talent, sometimes the best way to get it is an advisory board.

Karen Robinson Cope: [00:36:15] And if you go in there and say, “Mike, this is what I need. I would be honored if you would consider to be on my advisory board. I’m only going to ask you to sit in on four meetings a year. I’m going to bring in two or three other great people. And here’s who I’m thinking about bringing in, Mike. I know you like those people. And oh, by the way, I’m only going to ask 25 hours or 30 hours of your time per year because each board meeting is going to be four hours. I’m going to give you four hours to prepare for it.” Wow. Who’s going to say no to that?

Mike Blake: [00:36:44] And that leads into the other part of this that I wanted to unpack, because you said one thing which I’m going to take slight issue with and I think you’re going to agree with it the way I frame it. I actually think an advisory board can fire a CEO because you can just decide, “Look, this person doesn’t have their stuff together. And I’m not making an impact. And I’m going to put my time someplace else.”

Mike Blake: [00:37:09] And I don’t know about you, but there have been a couple of boards that have agreed to be on that I wound up regretting because the founder simply didn’t use us very well. They didn’t give us information in advance. Or the things they said they were going to do between meeting one and meeting two never seem to get done. And, again, if that’s happening and why are we doing this, right? And so, I do think there is a need for a founder or a CEO to be mindful that that advisory board, even if you’re compensating them, they’re not making so much money on that board that they’re going to stick around just for the money.

Karen Robinson Cope: [00:37:53] Exactly. Correct.

Mike Blake: [00:37:55] They are going to walk away if you don’t sort of have your stuff together and take that seriously.

Karen Robinson Cope: [00:38:00] You’re right. I absolutely agree with you on that one. And, again, especially in a city like Atlanta, which I think is just very friendly, the folks that have been there, done that. I find so many cases are willing to give back. But they’re only willing to give back if, as you said, they’re respected, their time is respected, and the CEO is truly learning and becoming a better CEO because of the advisory board.

Mike Blake: [00:38:31] And I think that takes a certain kind of mindset. You know, in my experience, I’ve walked into a couple of boards where, to me, it became clear the CEO is looking more for validation than they were for guidance. And some people maybe want to do that, that is not my bailiwick to just provide validation for no reason whatsoever for just gratuitous validation. I don’t think you’re really about that either.

Karen Robinson Cope: [00:39:00] No, I’m not.

Mike Blake: [00:39:01] I know you can dish out the tough love.

Karen Robinson Cope: [00:39:04] You could just put some cool thing on social media and get millions of likes, and that’s the validation you need, 100 percent agree. If you really want to use an advisory board, you’ve got to use them, and you’ve got to respect them. And, again, part of what I think is so good about starting with an advisory board is it really teaches you the process.

Karen Robinson Cope: [00:39:25] So, it’s the process of thinking about spending some amount of time. Because if you know you’re going to have your advisory board meeting next Tuesday, then you’re thinking, “Okay. What are the big issues?” It causes you to get outside of the urgent. It causes you to think about the important. It causes you to get prepared. And being prepared for somebody else means you’re prepared for yourself.

Karen Robinson Cope: [00:39:48] So, when I think about all the positives, again, I am surprised people don’t use, I’m surprised every company doesn’t use advisory board. Because if you really want to get better and you’re coachable, to me, it makes all the sense in the world.

Mike Blake: [00:40:02] And you think about it, there’s some business models out there or some companies pay quite handsomely to have a board of some kind. For example, these peer advisory boards – and I’m not saying anything against them, by the way. I think in certain cases, they had quite a bit of value. But there are companies that pay $100,000 a year to have a peer advisory board. But in some cases, I wonder if they need to actually do that. If they were a little bit more diligent about their networking or simply willing to make the ask they might be able to have a very competent board advise them for a lot less than they’re paying.

Karen Robinson Cope: [00:40:40] That’s a great comment. And, again, I think there’s a great role and a great application for peer advisory. You and I are both visual people, so you’ll get this. I think a peer advisory board is a bunch of little baby sparrows in the nest and the moms trying to feed them all. And they’re all saying, “Feed me. Feed me.” Because everybody wants attention. And it’s difficult. Again, it’s very valuable because you and I are both CEOs, we’re struggling, there’s camaraderie. And for that, I think it’s a brilliant idea.

Karen Robinson Cope: [00:41:17] But I think I will go on record to say, a peer advisory group, in my estimation, if you’re trying to really grow as a CEO with an external board, it’s best for the board to be focused on you as opposed to you and all your 10 or 11 or 15 other baby birds that are trying to be set at the same time. It’s not in any way suggesting that CEOs are that way, but you can get the picture of everybody saying, “Feed me. Feed me.” Whereas, if you’ve got your own advisory board, they’re all about, “How can I feed Mike? What can I do to make sure Mike’s healthy?”

Mike Blake: [00:41:55] I like the sound of that. So, I think we made a pretty compelling case for the value of an advisory board. And some of our listeners now are thinking, “Well, how do I start to put this together?” In your mind, what’s a good process for starting to recruit and assemble this advisory board?

Karen Robinson Cope: [00:42:21] Great. So, I think first off, the first thing I would do is, again, in your quiet time, in you’re quiet space, what exactly am I trying to accomplish? And you need to get real with yourself, because if you’re fortunate enough to be able to pull together an advisory board that really is top notch executives, people that you really admire, very quickly you’re going to get tired if all it is, is about reaffirm how smart I am or reaffirm how cool I am because I got Mike Blake to join my board. That’s not what is it.

Karen Robinson Cope: [00:42:51] Think about, really, what you’re trying to accomplish. Make sure you’re prepared to commit the time. Again, I can give you example after example of companies that I’ve watched that bring on advisory board and I’ve watched just the growth, the progress, and even the CEO themselves. But make sure that you really know what you’re trying to accomplish. Make sure you’re prepared to spend the time for it. And then, based on that, say, “Okay. What then are the skillsets I’m looking for?”

Karen Robinson Cope: [00:43:25] And, again, when I’m being asked to be an adviser, when someone comes to me and says, “Hey, Karen. I need you to be an adviser because I know that you’re pretty open about talking about your failure as a CEO and what you would have done differently. I want to learn from that.” That’s very different example than somebody says, “Hey, Karen. I’ve read about you in the press. I want you to be in my advisory board.” You see, it’s very different.

Karen Robinson Cope: [00:43:51] So, when I can come to you and say, “Mike, I would ask you to consider being on my advisory board. I’m trying to accomplish this. I’m looking for X amount of hours per year. And, by the way, the reason I want you, Mike, specifically is because of the experience you’ve had with X, Y or Z.” That’s, to me, a compelling argument. Then, you need to think about, “Okay. How do I compensate them?”

Karen Robinson Cope: [00:44:20] Now, everybody thinks if I’m going to get, you know, a C-Suite executive or successful entrepreneur, I’ll have to pay them a lot of money. But as you said yourself very well, Mike, they don’t need your money. You cannot pay a person enough, someone of that caliber, to make it worth their while. Most times people will give to the advisory boards will be available to be an advisor is because they really want to see the CEO or the company succeed. Maybe they believe in the mission. Maybe they just believe that I want to hang around with other really cool people like Mike, because it’d be fun for Mike and I did together to strategize about this company.

Karen Robinson Cope: [00:45:05] So, once you’ve got those and you’ve identified who you want, the skills you’re looking for, what you’re trying to accomplish, then, I think, absolutely either through a third party or reach out to that person and say, “Hey, I’d really love for you to consider to be an advisor. Here’s why? How much money?” Typically, early stage companies, you’re going to pay some equity. And, again, I’m not a lawyer, so I don’t want to go down the the legal issues. But, typically, there’s some warrants or some options that are based on some sort of timing or performance.

Karen Robinson Cope: [00:45:42] Sometimes it’s cash, and quite often what I’ll do is say, “Hey, give some money to a certain charity,” and that makes everybody feel good. Sometimes it’s just going to and having a board meeting at a really cool place. And, you know, whether it’s a round of golf, or a sailing adventure, or fishing for the day, whatever it might be, quite often a board member will agree to be an advisor just for that fun experience.

Karen Robinson Cope: [00:46:16] But, again, the most important thing, I think, is being very clear with yourself, your executive team, and the board member of the expectations on both sides. And that, of course, includes compensation.

Mike Blake: [00:46:32] Is there an optimum size in your mind for how many members a board might have?

Karen Robinson Cope: [00:46:37] That’s a great question. I think it should be an odd number.

Mike Blake: [00:46:43] I agree.

Karen Robinson Cope: [00:46:43] And it can’t be no more than, probably, seven at the most. If you’re an early stage company, probably, no more than three. And I think part of that is, again, your purpose in doing this is just to get some vigorous discussion going, some debate going, some strategizing. And I think when it’s too big, especially when you’ve got some high profile people, they kind of want their voice to be heard. And I’m not sure that if you had chief sales officers or CIOs or even established executives that they’re going to want to be in a meeting where there’s six other people that are chirping for their comment. So, I think for a couple of reasons, it’s easier to manage, probably, three to five is what I think is probably the best.

Mike Blake: [00:47:31] And how often do most advisory boards meet in your experience?

Karen Robinson Cope: [00:47:37] Well, I think once a quarter. I’ve heard people say once a month. But, again, at some point, it feels like I’m trying to get your expertise free. If I have a meeting every single month, then part of me feels like, “Wait a second, you know, if you want to pay me to do consulting for you, I’m happy to do that.” That’s why I feel once a quarter feels right. I’ve heard some people do it once every six months. But I think once a quarter just feels right to me. Again, a three to four hour meeting with either a dinner or a lunch, maybe an afternoon of golf, or whatever, just feels right. And most executives say, “You know what? I’m prepared to commit that amount of time to a young entrepreneur that I believe in.”

Mike Blake: [00:48:25] I’m talking with Karen Robinson Cope. And the topic is, Should I form a company advisory board? Just a couple more questions before we let you go and help some other companies I know that you’re advising. But one question I have is, let’s say, somebody out there – in fact, it’s a certainty. Somebody in our audience is listening right now and maybe they have an advisory board, but they don’t feel like it’s working that well. It’s not clicking. They’d like to have one, but for whatever reason, they’re just not getting the value out of it. What questions would you ask that person to diagnose kind of what may or may not be wrong or dysfunctional with that advisory board?

Karen Robinson Cope: [00:49:10] Great question. And, boy, let me think about that. I think one thing is, if the CEO or the executive team is not seeing the results, then my guess is you probably have some frustrated board members as well. And so, I think that’s a good sign. I would go back to, again, hopefully it’s been written down what the goal of the advisory board is. And I would go back and say, “Let’s talk about this.” Why or why not? Is it the wrong goal? Is it the wrong people? Is it the wrong subtopics we’re talking about?

Karen Robinson Cope: [00:49:48] I think going back to the preparation, again, if, in fact, you’re running your advisory board meeting just as if you would a true fiduciary board, at the preparation for the meeting, you’re going to have notes at the meeting, they’re going to follow up. And if the follow up is not occurring, then, again, you need to say why or why not? So, I think those are a couple of things.

Karen Robinson Cope: [00:50:12] It’s funny – if I could just take just a moment to digress, Mike -I started something called Council of Board Advisors, which is, again, a 501(c)(3). I was a judge for the Ernst and Young Entrepreneur of the Year for a number of years, and I was surprised because part of the process – and this is, again, the gold standard for entrepreneurial business companies and so forth success. And one of the first ones – every year, literally, get to sit down and talk to the management team. And I was surprised again and again when I’d see these great companies that look so good on paper. But then, you start to drill down and you realize, “Wow. There’s really some cracks underneath this veneer,” if you will.

Karen Robinson Cope: [00:51:00] And let me give you an example. One company I remember in particular, they were an entrepreneur, they were a finalist, and we were talking to them. And then, afterwards they said, “Karen, can you help me? I’m having some cash flow problems. I think I just need a short term note. A short term loan would fix this.” Again, not telling them anything, just asking them questions, it was clear. It was not a cash flow issue. They had a strategy issue. They had no customer diversification. I mean, their products became obsolete quickly. So, there was just a number of strategy issues.

Karen Robinson Cope: [00:51:33] But this great company on the surface had thought they had a cash flow problem. That got me thinking and I said, “Boy, I don’t even know anything about this industry. But I was able to help this company just asking some questions.” So, I started something called Council of Board Advisors.

Karen Robinson Cope: [00:51:48] At the same time, I had a group of my executive friends who, once they sold their company or retired with their big pension, they would go to Florida, because Florida has no taxes and Florida has great weather. And I said, “We need to somehow figure out a way to keep these executives engaged.” They didn’t want to give full time. They did not want to be in a startup company. They didn’t want to be hit up for money all the time. The CEO said, “Boy, I’d like to get some help, but I don’t know what to do.”

Karen Robinson Cope: [00:52:17] So, I put this process together where we get great companies that are coachable, typically 5 million to 150 million, which is a pretty big range. But they were coachable CEOs, profitable companies that were kind of at a stalemate. And I’d match them, talking to them and say, “Hey, what are the things that keep you up at night?” And then, find advisors for them that really fit their needs.

Karen Robinson Cope: [00:52:40] And, again, we were able to get one of my favorite advisors, which is one of a well-known executive here in town, who was the president of one of the fastest growing companies in America. He had sold a company. He was tired of playing golf. And he said, “I don’t want to get involved, so I’m doing the business, but I’d sure like to get in and opine.” And it’s just been a great experience. We’ve probably helped – I don’t want to guess how many companies. But that’s what got me so excited about this whole advisory board because it is coming into view. It is becoming more important. And I think people are realizing the real need for it.

Mike Blake: [00:53:14] Karen, I was going to give you an opportunity to mention your nonprofit, so I’m glad you did that. Because it’s important that people know there’s resources out there and what you’re doing. We could have easily had another hour in this conversation, but, unfortunately, our time is running out. There are probably questions we either didn’t cover or might have covered in more depth for somebody. If somebody is listening and has as a question they like to ask you to follow up, can they do so? And if so, what’s the best way for them to contact you?

Karen Robinson Cope: [00:53:43] Well, thank you. Again, I appreciate it. And I always love to talk with you. And I just kind of hit myself because we’ve let too much time pass. But I’d be delighted to help in any way. There’s a number of some good organizations. I actually put my nonprofit under TiE, The IndUS Entrepreneur, which is a great worldwide entrepreneur organization. And we’ve got a very successful program where we work with these great companies.

Karen Robinson Cope: [00:54:12] If someone wants to call me, I’m more than happy. krobinson, K-R-O-B-I-N-S-O-N, @mara6. By the way, Mara after the Maasai Mara, and our daughter’s middle name, Alexandra Mara Cope. So, it’s krobinson@mara, M-A-R-A, the number 6.com. And I’m more than happy to opine, give some free advice. And, again, anything I can do to help because I really do believe that the Atlanta community is becoming so fulsome and so exciting. But we clearly need to make sure that we can give guidance to these entrepreneurs and these companies as they go to the next level.

Mike Blake: [00:54:53] Yeah. We need to send the elevator back down. But I think the good news is – at least as long as I’ve been here about 20 years or so – I think Atlanta’s been a town that does that. And, hopefully, for our listeners that are in other areas of the country or the world, really, that can find communities like that as well.

Karen Robinson Cope: [00:55:11] Absolutely.

Mike Blake: [00:55:12] That’s going to wrap it up for today’s program. I’d like to thank Karen Robinson Cope so much for sharing her expertise with us today.

Mike Blake: [00:55:18] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business 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 that we can help them. If you’d like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

 

Tagged With: Advisory Board, board of directors, Brady Ware & Company, Decision Vision podcast, Karen Robinson Cope, Mara6, Mike Blake

Decision Vision Episode 135: Should I Create an Email Newsletter? – An Interview with Michael Katz, Blue Penguin Development

September 23, 2021 by John Ray

Miichael Katz
Decision Vision
Decision Vision Episode 135: Should I Create an Email Newsletter? - An Interview with Michael Katz, Blue Penguin Development
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Miichael Katz

Decision Vision Episode 135:  Should I Create an Email Newsletter? – An Interview with Michael Katz, Blue Penguin Development

Do you need an email newsletter? How long should it be? What should you write about? Although written off quite a few times, email is still not dead. Mike Blake’s guest Michael Katz, email newsletter authority with Blue Penguin Development, discusses the strategy of email newsletters, how to make them effective, how to make the most of the content, and much more. Decision Vision is presented by Brady Ware & Company.

Michael Katz, Chief Penguin, Blue Penguin Development

Michael Katz, Chief Penguin, Blue Penguin Development

Blue Penguin Development Inc is a marketing and advertising company based out of Hopkinton, Massachusetts.

An award-winning humorist and former corporate marketer, Blue Penguin founder and Chief Penguin, Michael Katz, specializes in helping professional service firms and solos talk and write about their work in a way that is clear and compelling.

Since launching Blue Penguin in 2000, Michael has been quoted in The Wall Street Journal, The New York Times, Business Week Online, Bloomberg TV, Forbes.com, Inc.com, USA Today, and other national and local media.

He is the author of four books and over the past 20 years has published more than 500 issues of “The Likeable Expert Gazette,” a twice-monthly email newsletter and podcast with 6,000 passionate subscribers in over 40 countries around the world.

Michael has an MBA from Boston University and a BA in Psychology from McGill University in Montreal. He is a past winner of the New England Press Association award for “Best Humor Columnist.”

Company website | LinkedIn

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

LinkedIn | Facebook | Twitter | Instagram

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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

Website | LinkedIn | Facebook | Twitter | Instagram

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.

Mike Blake: [00:00:21] 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 when you might need help along the way.

Mike Blake: [00:00:42] 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. My practice specializes in providing fact-based, strategic, and risk management advice to clients that are buying, selling, or growing the value of companies and intellectual property. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols.

Mike Blake: [00:01:09] If you like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:27] Our topic today is, Should I create an email newsletter? And in doing this topic, I almost think like what’s old is new again, back to the future, retro, however you want to call it. Email newsletters, I think, have been declared dead more times than your typical cat or Rasputin, take either one.

Mike Blake: [00:01:52] First, it was spam blockers. And the next was social media. Of course, social media was going to obviate the need for email newsletters. And then, of course, everybody told us, if we don’t send people things in the analogue world and handwrite them, then nobody’s ever going to read it. And the list goes on and on.

Mike Blake: [00:02:12] And to coin a phrase from, about, five years ago, “And yet they persist”. And I think they persist for very good reason, is that, they’ve taken all kind of all comers. And in spite of that, in spite of many attempts and ongoing attempts to disrupt that world, email newsletters continue to thrive. And perhaps the best indicator of that is the fact that Atlanta’s own homegrown startup Mailchimp was just bought by Intuit for $12 billion. Mailchimp basically exists to help people and companies publish email newsletters.

Mike Blake: [00:02:53] Now, why does a tax company want a newsletter company? I’m not sure. I was going to say I’m not in that business. But I guess working for a CPA firm, I technically am, but I’m not. And I don’t even do my own taxes although I’m a CPA. And I don’t understand the strategic rationale for that deal or the price that they paid. But, you know, good for Ben Chesnut and his team, they’ve worked hard on that company for a very long time. They certainly deserve to see the fruits of that labor. And that’s a big feather in the cap for those of us who believe in the Atlanta startup ecosystem as I do.

Mike Blake: [00:03:33] And so, you know, I think that this is a topic that requires and I think many of us will benefit from this discussion. And helping us with this is is Michael Katz, who’s an award-winning humorist and former corporate marketer and Founder and Chief Penguin of Blue Penguin. And he specializes in helping professional services firms and solos talk and write about their work in a way that is clear and compelling.

Mike Blake: [00:04:01] Since launching Blue Penguin in 2000, Michael has been quoted in The Wall Street Journal, The New York Times, BusinessWeek Online, Bloomberg TV, Forbes.com, Inc.com, USA Today, and other national and local media. And you can tell that he had nothing to do with my introductory comments. He is the author of four books. And over the past 20 years has published more than 500 issues of The Likeable Expert Gazette, a twice monthly email newsletter and podcast with 6,000 passionate subscribers in over 40 countries around the world.

Mike Blake: [00:04:33] Michael has an MBA from Boston University – I grew up in Boston. A B.A. in Psychology from McGill University in Montreal – home of my favorite actor and yours, William Shatner, or at least birthplace. He is a past winner of the New England Press Association Award for Best Humor Columnists. Michael, welcome to the program.

Michael Katz: [00:04:52] Great to be here. Thanks for having me.

Mike Blake: [00:04:55] So, you know, there’s so many ways to communicate in the written word now with our intended audiences. And I actually think it is helpful, it may sound like the most inane question in the world, but I do think that the definitions have been blurred and it is important. In your mind what makes a newsletter a newsletter? And what separates it from other forms of written – I’m going to say – mass communication. I probably cringe at saying that, but it is sort of a one-to-many kind of communication model. What makes a newsletter a newsletter?

Michael Katz: [00:05:31] Well, I think it is pretty blurry. I mean, I always think of it, it’s just a glorified email sent to more than one person. Maybe the email that Target sends to you telling you you’ve got 30 percent off and the email that your accounting firm sends with useful information, they’re both technically newsletters and people pretty much use them interchangeably. So, you know, the definition really hasn’t gotten any clearer over the years. It sort of depends what business you’re in, but I think it applies when you send it by email to a number of people and generally not personalized beyond, you know, dear name.

Mike Blake: [00:06:12] You know, it’s interesting, even I would not have thought of the Target virtual flyer being a newsletter. But I guess it is, right? And that definition between advertisement, newsletter, blog post, something else, I think, has been blurred. And I guess I’ll follow up with this question, is that distinction even meaningful?

Michael Katz: [00:06:41] I think the distinction is, is this a thing that lands in your inbox or is it somewhere else, social media, video, all that? So, you know, I think as you were saying, Mike, earlier, it’s written and it shows up in your email. And so, that then becomes the question. So, is that still valuable or not? But I think all those things, I suppose, are the same species, email and newsletter.

Mike Blake: [00:07:05] Okay. So, those of us who are listening to this podcast, they may well be hearing newsletter and wondering, “Oh, my gosh. Do I have to basically now become a professional writer? I didn’t like writing five page essays in school. And, now, I got to do something every week or maybe more than that.” Is there an ideal length in your mind for a newsletter? Can newsletters be short? Do they need to be long form? They need be very long form? What’s best practices in determining just how much content goes into a newsletter?

Michael Katz: [00:07:41] Yeah. I always say one word is perfect. However, you have to get over two bars at least, again, in the world that I live in. So, again, I’m not doing the Target 30 percent off. I work exclusively with small professional service firms, financial planners, consultants, recruiters, coaches. So, these are all people who are selling themselves or their small firm, essentially. And so, those kind of newsletters are information-based. They’re not about an event. They’re not click to buy kinds of things, like click here and buy it. They’re really about – and we’ll talk more about it – getting in front of a group of people. So, yes, shorter is better because I can get your stuff sooner.

Michael Katz: [00:08:26] However, two things. One is, you have to tell me something that I will read it and have learned something. So, I’m always saying, you’re looking for me to read it and go, “Oh, there’s something I just learned about accounting, legal, management, consulting, whatever.” The second thing is, I think you want your newsletter to be long enough that you include some of your personal voice story experience. Because if it’s just information, well, I can get information by Googling it.

Michael Katz: [00:08:56] So, if you can say something that includes something useful and enough story – which I know we’ll talk about – then I think that’s good. I would say that for most people then, you’re talking 500 to 800 words to get that in there. But even among my own clients, there’s variations there.

Mike Blake: [00:09:18] So, how do you decide what goes in? And I’ll preface this with kind of my experience with this podcast, and you’ve done a lot more of these things than I have, so God bless you, I don’t know how you do it. But the question I’m asked most frequently is, how do you decide on the topics and how do you kind of keep it fresh? And my answer to them is, “Well, for me, I just keep a running note in every note. And every time something pops in my head, I write it down. And then, if I’m really stuck, I’m not afraid to revisit something if I think somebody else can bring a different voice to the same topic.” How do you decide what goes into your newsletter?

Michael Katz: [00:10:06] So, my point of view is, I’m trying to help my readers not need to hire me, which sounds counterintuitive. But what I mean is that – and this is true for any profession that I’m working with – help them learn not to need you. So, if you took a very simple example, suppose you’re a carpenter. Your newsletter should be about how to use a hammer, how to buy wood, how to climb a ladder. It’s very simple stuff. And, yes, if I got and received and retained a thousand newsletters like that, I suppose I would know as much as my carpenter.

Michael Katz: [00:10:42] But the truth is, you’ll never give away your business with those 500 or 700 word tidbits. But it has to be useful so that I read it like everybody thinks about what do I say to promote my business. Which is fine, that’s why we’re doing it. But your readers don’t care about your business. They are only going to read it, and stay with you, and tell other people about it if they find it useful.

Michael Katz: [00:11:06] So, that’s the sort of basis of it always, you have to match up to the audience that presumably would hire you by giving them something that will make them live their lives better or do their jobs better instead of running out of information. I mean, I’ve written 500 newsletters. I have, like, 30 ideas. So, it’s funny, I mean, I don’t republish them. And, by the way, that’s where stories come in.

Michael Katz: [00:11:30] But I’ll address a similar topic with a slightly different angle or something. Nobody says, “Wait a second. Four years ago in April, you said the same thing.” It’s sort of like, you know, if you have a personal trainer at the gym, the guys told you a thousand times to keep your back straight when you do pushups. You don’t say, “Wait a second. You already told me that.” So, people need repetition anyway. That’s fine.

Michael Katz: [00:11:56] The other thing is, even your most loyal readers will probably read every other one, so it’s fine. You’re trying to be out in front of a particular population over and over again with useful information and some personality because, again, your goal is that they refer you or maybe they hire you. So, it’s sort of easier than you think. I always say, if you know enough to be in a profession, you’ll never run out of content. My longest running client, an attorney, we’ve been doing a newsletter for 18 years and still publishing.

Mike Blake: [00:12:29] You know, you bring up that topic of what’s the likelihood that somebody’s going to remember a topic? I guess that’s right. In fact, I would love it if somebody has actually listened to this podcast with enough intentionality and frequency that they could spot any kind of repetitive material. And, frankly, I think I might actually buy a steak dinner if you sort of organically did that. Because I don’t think I have the kind of following like somebody, a dragon con, who shows up and questions one of the actors like, “In episode 192, how do the physics work when the spaceship went from galaxy to galaxy?” I don’t think I have that kind of following.

Mike Blake: [00:13:09] So, it probably is okay to kind of recycle stuff. And if you put a slant on it, so much the better. But you’re right, the portion of the population that’s going to have encyclopedic recall of all of your newsletters is a pretty small one. And if they are, you’ve probably already got them hooked anyway.

Michael Katz: [00:13:27] Right. I agree.

Mike Blake: [00:13:29] So, I’m going to go off script a little bit because your narrative brings to mind what I think is a really innocent question. And that is, can you recall the most memorable newsletter you either received or published? Either one you’re really proud of, or one you helped somebody publish because I know that’s what you do, or one that you received that maybe you said, “I really got something great out of that newsletter that I still use. I got it ten years ago. I still use that today.”

Michael Katz: [00:14:01] That’s a good question. And my answer is no, but here’s why. Because the value of a newsletter is a cumulative event. It’s like if I said to you, “Can you remember the best work you ever had?” You’re like, “How do I know?” Like, “Oh, yeah. It was like a Tuesday five years ago.” It’s the same thing. And I often have to talk people down from this, even people who are thinking of hiring me to say, “Look. It’s not a Super Bowl ad. You’re not going to publish a newsletter and have your phone ringing off the hook.”

Michael Katz: [00:14:34] And I do always use the exercise metaphor, that, exercising five times, you may as well not do it at all. But without question, if you exercise regularly for six months, you’ll get results. The same thing, it’s an ongoing event where people start to know you. They start to remember what you’re writing about. And then, one day, somebody needs what you’re selling. So, one important thing about a newsletter in its regularity is, it takes timing out of the equation.

Michael Katz: [00:15:04] So, the problem with advertising is you have to keep doing it. Because if you see a car ad today and you just bought a car last week, you have zero interest. Or if you’re planning to buy it in a year, zero interest. So, the reason that car people, for example, have to advertise constantly is because there’s always a slice of the population that’s ready to buy a car. So, they waste a ton of money on everyone else who isn’t.

Michael Katz: [00:15:26] Well, the newsletter, and particularly if you’re a small professional service firm, you don’t have advertising money, this is putting you in front of people over and over again. And so, one day they’re tired of their financial planner, their accountant doesn’t return their phone calls, whatever. They say, “Do you know anybody who could help me with this?” The newsletter acts as that constant prompt in front of them. So, visibility is a big part of what’s going on.

Mike Blake: [00:15:53] I think that’s really smart. And I actually kind of want to pause a little bit on that, because I’ve talked to many people, for example, in the podcast – I don’t have a newsletter. I eventually have to come out with one, but I don’t have one yet. But I think with the podcast it’s the same – I’m frequently asked, “How much business have you gotten out of it?” And my answer is, “Frankly, I have no earthly idea.” Because nobody is going to listen to my podcast and then pick up the phone and say, “Hey, I need you to do an appraisal of my company.” It’s just not going to happen. And podcasts, in particular, really don’t work that way.

Mike Blake: [00:16:32] But it’s the cumulative reminding people that you’re out there, that you have this expertise, you have that service so that it’s much more likely that that need is going to meet availability. And so, it’s about impact. It’s not so much about it’s important and it’s urgent. But there’s a third dimension out there about impact. And when you do a newsletter consistently, I think there’s a very similar philosophical ingredient to it or foundation to it that it’s not about the newsletter that you published today. It’s the aggregate of newsletters that you have published and continue to publish over an extended length of time.

Michael Katz: [00:17:13] Right. In fact, I’d even say, the person who calls you because they heard one podcast is suspect. That’s not a good client. That’s like, “What can I say to a woman in a bar to get her to marry me?” Nothing. Anyone who would say yes is bad. You want someone who’s listened to your podcast for a year. Because, first of all, you’ve screened out all the people who would actually hate you if they hired you. Because they’re like, “I like this guy.” And the people who don’t, go away.

Michael Katz: [00:17:46] Because my entire business is based on my own newsletter. No one ever gets in touch with me who isn’t kind of pre-qualified. So, it’s very effective in that way. And the best clients are the ones who’ve been listening for a while and finally say, “Hey, we’re ready to hire you.” I mean, it’s the easiest sales call you’ll ever get, an inbound call like that.

Mike Blake: [00:18:08] So, as I said in my introduction, newsletters, they’ve been declared dead a lot. And they’re still here and you’re still here. You don’t look dead to me. You don’t sound dead. So, why have they survived? Why do they continue to thrive? And I think they thrive, see if you agree with me. Why do they continue to thrive where there’s so much competition now for our attention?

Michael Katz: [00:18:38] Yeah. Well, you’re right. I mean, it’s so interesting how much it’s changed. So, I started doing newsletters in 2001. And the biggest objection I received from potential clients was that not enough of their clients and customers had email. And, like, blogs came out. That was going to kill it. Then, it was the whole spam thing. I mean, it’s amazing to think that Congress got together and passed a CAN-SPAM Act. That spam was so bad that there was a law passed about it. And then, social media came.

Michael Katz: [00:19:14] And I have to say about, maybe, whatever it was, ten years ago when social media sort of started, I was concerned. Like, you know, I don’t want to be so selling this thing that’s like a dinosaur. And so, paying very close attention what’s the next thing, looking around. And I think a couple of things. One is, nobody is in charge of email.

Michael Katz: [00:19:37] So, the problem with social media – and there have even been some very high profile examples – they can kick you off if they want. They run the whole thing. Like, nobody knows what the algorithm on LinkedIn is or Facebook to get you in front of different people. It’s a secret. So, you could be very popular on LinkedIn, and tomorrow they change the algorithm, and now it drops.

Michael Katz: [00:19:59] So, you don’t own the real estate if you build a business on any of the social media platforms. There’s somebody in between you and the recipient. Email is a completely distributed system. Nobody is in charge of email. So, the only people who decide whether my newsletter is read and opened are the people on the list. So, that’s very powerful.

Michael Katz: [00:20:21] Secondly, it shows up in your inbox. So, it’s funny, sometimes if I’m talking to you a live group, I’ll say, “Okay. Raise your hand if you’ve checked LinkedIn today.” And you get, like, half the group. “Raise your hand if you’ve checked email.” Everybody. So, as much as email is dead, it’s sort of like the day you can sign up for a social media account without an email address, I believe it’s dead. It still is the default in our life. It’s not even do you have email anymore. There’s things you can’t do. I can’t make a doctor’s appointment anymore without an email address. So, even though I’ve been wondering will it die, it still continues to be very compelling.

Michael Katz: [00:21:05] And, again, because my newsletter will sit in your inbox until you delete it, I think that’s also more powerful than a post on LinkedIn, which in the time we’ve been talking, if somebody posted, it’s already gone. You know, it’s pushed down. So, it’s funny, it’s like skinny ties – for no good reason, but if you wait long enough, I guess – I don’t know if something will replace it. But I’ve never found anything that says effective in all the ways we’ve been talking about is email, so still a lot.

Mike Blake: [00:21:39] Yeah. That’s a really interesting description. I hadn’t thought of either of those things. But it’s right to me. Social media, we don’t own the real estate. We don’t control who sees our thing, who sees our content. And we try to read the tea leaves in terms of what’s going to to gather the most, first of all, visibility, and then engagement, which is entirely a different animal. But then, this notion that, in a way, email has become like broadcast television. The way that you described it, I think that’s so smart.

Mike Blake: [00:22:26] And I guess it resonates to me because several years ago we cut the cord. No cable T.V. But we still do subscribe to the Netflix, Hulu. I have no idea if we’re saving money. We’re probably not, if I’m totally honest about it. But one of the the reason we still do that is because you can’t just sort of turn on Netflix and a program appears. You have to be with the modern television model. You have to be intentional about what you want to watch. Unless you do cable and then you can do that. That’s what we want to do.

Mike Blake: [00:23:02] Email is kind of the same thing, right? It’s so ingrained. Like you said, you cannot make a doctor’s appointment, you can’t do almost anything you want to do in life. The phone book has been replaced by email in some regard. And so, if you’re a functional adult in the society, you are actively managing and looking at an email account. And that’s the way in to everybody is through that channel. And I had not thought about that until you raised that before. That’s really interesting and that’s really important.

Michael Katz: [00:23:33] I think it does somewhat depend on the population, too. So, you know, everyone I work with is – I don’t know – 40 or older. Whereas, you know, I have a 22 year old son, I have to text him to tell him to check his email, even though he has an email account. It is possible if you’re talking to that audience – and who knows the sort of next generation that it moves on – at least for now, you know, my people are the middle aged and older, we’re still very much tied to email.

Mike Blake: [00:24:06] Yeah. I’m with you. I’m on the older side of Gen X myself. So, email is going to be my primary conduit. And I have a teenager and I kind of do the same thing. But what he’s finding is that texting amongst themselves and his friends is fine. But for the really important stuff, he misses a lot if he doesn’t check email. For what it’s worth for now, you and I are still controlling the world. In 20 years, it maybe different, but we still rule the world with an iron fist.

Mike Blake: [00:24:39] So, let me switch gears here, and it’s a little bit more the how. So, there are services out there, as you know, where you can send out a newsletter that’s basically canned content. Somebody writes it for you and then you put your name on it, you say that it’s yours. What do you think of those? Is there any value to those in your mind? Is there a value case to a certain kind of customer? Are they really valuable? What’s your view there?

Michael Katz: [00:25:08] I think there’s value there. I mean, again, because the option of not doing that is you’re invisible. So, even if I never open your email, but you show up once a month or whenever, and I, for whatever reason, don’t unsubscribe, at least I know you’re alive. So, that’s better than nothing.

Michael Katz: [00:25:33] There’s a few things missing, though. The problem is, you know, back in the day when it was print emails, and the insurance industry was famous for this, where you could get your photo and your contact information onto something they mailed. Well, back then, it was valuable to have someone give you some information about buying insurance, for example. Today, I can get any piece of information I want on anything in a minute with Google. So, if all you’re sending me is canned information, number one, it’s not unusual in any way. And number two, it’s not even your point of view.

Michael Katz: [00:26:10] So, this sort of funny thing going on, people sign up for your newsletter because they want the information. But what I’m trying to do is get them to know who I am or who my clients are. Because if you’re selling a professional service, the problem is the people who are your prospects and even your clients cannot tell how good you are relative to the other options.

Michael Katz: [00:26:31] It’s like you don’t have the slightest idea how medically capable your own doctor is. You don’t even know where he or she went to medical school. You’re like, “I don’t know.” And if I said, “Do you like your doctor?” So, again, I often will say to an audience, “Raise your hand if you like your doctor.” You get a lot of hands going up. “Keep your hand up if you know where your doctor went to medical school.” Nobody. So, why do you like your doctor then, or your accountant, or your auto mechanic? “I like the way they talk to me. I like their point of view. I like their personality.”

Michael Katz: [00:26:59] It has nothing to do with their capability. Yes, you have to be capable. But everybody who’s worth worrying about is capable. In fact, if you’re in an industry like yours, Mike, that’s where certification is required, CPA, medical school, you know, whatever. It’s actually harder to distinguish yourself because I know as long as I hire a CPA, I got somebody who’s over the bar. So, the differentiator is not capability. Again, you have to be good enough. It’s all this soft, squishy, non-professional business stuff.

Michael Katz: [00:27:35] And so, to me, what a newsletter ought to be is story and personality wrapped around useful information. Because over time, people get to know you. What’s funny is when I write a newsletter, let’s say, for myself, I’ll write about my family just took a trip to Colorado. Nine out of ten of the comments I get relates to someone else who went to Colorado. It’s not about the business thing. If I only wrote a newsletter and just told you about a family trip, you don’t subscribe.

Michael Katz: [00:28:05] But when I wrap this around the useful information, the soft stuff is what they notice. And, ultimately, I think that’s why you hire me versus somebody else or don’t hire me because you don’t like me. But again, I’m happy about that. You’re better off if we wouldn’t get along to go elsewhere.

Michael Katz: [00:28:24] So, it’s a really weird thing, but it’s extremely powerful because that’s really how word of mouth works anyway. People just passing other people around. And the newsletter done this way is just a very scalable way to do this, you know, to network, essentially.

Mike Blake: [00:28:43] And, you know, that’s interesting how you bring the individual voice into that, and I agree with that. And you’re right, it is in the accounting industry very challenging for people to separate themselves. And you ought to be really careful and say I’m the best accountant in the world. That’s a hard position to sustain or quantify. But you can always make yourself different. But you can’t make yourself different unless you’re actually communicating with somebody that they can see how you’re different. And I don’t think it’s all that effective to just say, “Well, I’m different.” You have to lead people to their own conclusion that you’re different by acting differently.

Mike Blake: [00:29:30] So, I want to get to creating a content in a second, but I do want to cover another model for newsletters, which is not a canned service per se, but maybe a newsletter that’s based on curating somebody else’s content. Like, you’re a big reader and you’re doing a service for your readers who don’t have as much time to read and gather information as much as you do. So, you’re going to kind of aggregate information on behalf of somebody else. In your mind, how effective is that kind of newsletter content strategy?

Michael Katz: [00:30:05] So, I think of it as a long a continuum. So, all the way to one side is, I never publish anything. As far as you know, I’m dead. Next step is, here’s a newsletter where it’s got my picture on it and my contact information, but it’s totally candid and I had nothing to do with it. But way better than nothing. I mean, because, I think half the game is showing up.

Michael Katz: [00:30:25] The curated one is one step further because, now, at least you’ve had input into what you decided is important. The downside is, you’re hosting other experts, essentially. So, I don’t know anything about how you think. I don’t know anything about your voice, your story, your personality. I just know, “Okay. He or she said these things matter.” What I want to get to is one step beyond that, which is, this is my point of view.

Michael Katz: [00:30:48] Again, if you’ve been a CPA for 20 years, you know a lot of stuff. And the other thing is people will think, “Oh, so I have to write something that’s never been said before in the world of accounting? I mean, we all have one or two things, maybe, and that’s it.” You got to remember your audience. If I’m a reader of your newsletter, I don’t know anything about accounting. I don’t want to know a lot about accounting. I just want a little insight that goes, “Blah, blah, blah. Here’s what you need to do.” It’s accounting 101. It’s embarrassingly simple.

Michael Katz: [00:31:21] Again, in that carpentry example, how to buy wood. Another carpenter would be like, “Well, no kidding.” But to me, as a homeowner, I don’t know. So, super simple. A little nugget that makes me go, “Oh. Okay. I just learned something. I’ll come back next month.” And, again, if you include that with some personal story, which, by the way, the only unique thing you have in terms of information is your story. Like, nobody can tell the story I told about going to Colorado with my family. I’m the only one on Earth who can do it. Anyone could have told the insight – whatever it was, I don’t really remember – that came with it.

Michael Katz: [00:31:56] So, it’s the more custom, I think, the better. Because, again, you’re trying to not just be known as an accountant. You’re trying to be known as that guy, Mike, that I like. And maybe one day I will hire him because I’m kind of sick of our accounting for whatever reason.

Mike Blake: [00:32:12] So, when I think of newsletters – this probably reveals my age. Again, I’m a Gen Xer. That’s the way it is – I think of newsletters that have maybe three or four articles in them and they have sort of a professional publishing format and so forth. Is that best practices now? Does a newsletter have to talk about three or four different things to kind of be worthy of the name? Or can you send out a newsletter that, in effect, is one message?

Michael Katz: [00:32:46] So, now, we’re getting into stuff where it’s like I don’t think there’s a must be this way or must be that way. As long as you satisfy useful information wrapped inside personality, I think you’re there. Because the other question is, should I make them click to read it or should I put the whole thing in the email? Pluses and minuses on both sides. It’s funny how in the same breath people will say, “Nobody has time to read anything. Should I have five articles?”

Michael Katz: [00:33:15] I mean, I wasn’t kidding when I said one word is the best. Because although I don’t think length equals quality, there’s reality that if your newsletter is too long, I think people stockpile them, which kind of adds up to never read them.

Michael Katz: [00:33:30] I have a friend/client, the only person I’ve ever met who can satisfy the useful information and personality in 300 words. I don’t know how he does it. But his newsletter is so short that when it arrives, I read it right away because I know it’s going to be short.

Michael Katz: [00:33:47] So, I think it’s okay to have the several stories. But, again, my goal isn’t to be a publisher. It’s to generate business. So, I just want to make sure I tick the box of useful and story. And so, I’m inclined towards the main article. There’ll be some tidbits like, “Hey, you know, we just won this award.” Or, you know, again, with my clients, that might be another section. Or I have someone who does, like, a book of the month that she reads, she’s an attorney. But there’s that one main article, and I find that works pretty well and it gets read as a result.

Mike Blake: [00:34:27] So, you talked about – and I agree – that it’s important for a newsletter, if possible, to reveal as much of the voice of the creator of the newsletter as possible. What do you do if you’re not a particularly good writer? Some people are good at math, some people are good at writing, some people want to be good at writing, and others couldn’t care less. Are newsletter just sort of closed off to you? Or is it a massively hard slog if you just don’t fancy yourself as a writer?

Michael Katz: [00:35:04] Okay. So, I’m going to use another exercise analogy.

Mike Blake: [00:35:09] Please.

Michael Katz: [00:35:09] So, like, ten years ago, I had knee surgery. I had my ACL replaced. And afterwards the physical therapist said, “Okay. You’ve got to go to the gym and get on an elliptical machine because you can’t run for a while.” And I never used an elliptical machine but I did belong to a gym. So, I go in there and I looked, and there’s, like, four different kinds of elliptical machines.

Michael Katz: [00:35:31] And so, I go up to the front desk and there’s the guy, and it’s huge muscle guy with just tiny little T-shirt reading a muscle magazine. He doesn’t even look up at me. And I go, “Hey. Which of these elliptical machines is the best one?” And he said what I believe is, like, the most wisdom I’ve ever heard, without looking up, he goes, “Whichever one you’ll stay on the longest.” The reason we have multiple machines is because some people like this one and some people like that one. The point of exercise is more of it too.

Michael Katz: [00:36:05] It’s sort of the same thing that you’re trying to do something you don’t hate. So, I can talk all day about why newsletters are great. But if you’re going to do it yourself without help and you hate writing, you’re not going to do it. So, find something else. Maybe you’re a good talker and so podcasts is better for you. Maybe you’re good on camera and video or social media, whatever. You have to pick marketing tactics that you, at least, can tolerate – the same thing, some people hate running, some people like swimming – or you’ll never do it.

Michael Katz: [00:36:41] Because the rest is really sort of nuance. Is a podcast better than a newsletter? I don’t know. The point is, keep showing up. Keep doing it. I don’t think you have to be a great writer, though, as long as you’re willing to do it. It’s funny, I’ve had so many people over the years say, “I’m a terrible writer.” No one has ever said to me, “I can’t talk to other people. What do I do?” It’s sort of the same thing. This isn’t like you’ve got to be Stephen King here.

Michael Katz: [00:37:08] In fact, I spent a lot of time unteaching people to stop writing like they’re writing marketing. Like, they get into this mode of it’s either a super formal or it’s like, “Hey, dude. Let’s kill it,” and the guy is, like, 60. I think your newsletter – because, again, it is an email – it’s inherently informal. So, your newsletter, I think, should sound like you speaking, as close as that as you can get. And since most people can speak coherently, if you do that, you’re good. Now, you may need an editor because you don’t want it to look unprofessional with punctuation or misused words, but that’s okay.

Michael Katz: [00:37:52] Most of my clients, the arrangement is some people I interviewed them and they never touched a keyboard, that’s fine. But I have other people where after we’ve figured out all this voice and, you know, it’s the design and the Mailchimp set up and all that, every month we talk about, “Okay. What’s the topic going to be?” We’ve already identified a bunch of areas. We go back and forth on, “Well, yeah, I think that sounds like three topics. What if you did this one?”

Michael Katz: [00:38:19] They write the first draft badly. I always say, “I don’t need you to write it well. I just need the raw material. Give me enough information that I can do it.” I don’t do any research. And, by the way, neither do they. Because, again, you don’t need to do accounting research. You could talk forever. And then, I fix it. So, I’m essentially a writer.

Michael Katz: [00:38:40] But as long as they just give me the blah, I then take it and fix it. But, again, whereas there’s other professionals I know who do the whole thing themselves. So, you can do it. But you’ve got to do it. It’s like you can’t go to the gym twice. You’ve got to keep going.

Mike Blake: [00:38:57] Has the advent of mobile devices changed at all how you do, or how you create, or think about newsletters as a medium?

Michael Katz: [00:39:05] Yeah. I mean, you know, when it starts to become a thing – I don’t know – five or six years ago, we had to get rid of the newsletters with the side column, which was sort of the standard, because it has to look good on a phone. And then, there’s this term responsive, meaning your newsletter response to whatever device it’s on. So, the same newsletter will work on a computer or a tablet or a phone. And, you know, the Mailchimps of the world have made that automatic, so you don’t have to worry about it.

Michael Katz: [00:39:35] But half of the world, at least, is opening email on a phone. I don’t know what percent will actually read it there. But you have to make sure you know the font is big enough, that you don’t have graphics that don’t work on a phone, so you just test it. But it’s not a problem, but you certainly have to account for it.

Mike Blake: [00:39:56] So, I want to switch gears here. An important driver of success in a newsletter, I would imagine, is having an audience to send it to. And it seems to me that building an email list – well, I’m getting ahead of myself. I’m sure there are listeners who are listening to this right now that think, “You know what? Newsletter sounds great. I don’t know who I’m going to send it to.” Is there a special order of operations? Or how do you come up with a mailing list? Or are there tips? Do you think about building a mailing list really quickly? And then, how you do that? Any content? I mean, is the newsletter only a game, I guess, for somebody that already has a big mailing list?

Michael Katz: [00:40:46] No. Because, again, I’m working with professional service providers. No. None of those people have mailing lists. But you’re mailing lists are the people you know. I define people you know as, if you call them up, you wouldn’t have to introduce yourself. So, it’s not everybody you went to college with. It’s not the membership list of your professional organization. That’s spam. But it’s the humans on Earth you know. I find like the average middle aged person knows, like, 400 or 500 people. They always say, “Oh, I only know 50”. But now we sit down, it’s your college roommate, it’s your brother-in- law, it’s former clients. We’ll talk about what’s the value of your brother-in-law here?

Michael Katz: [00:41:26] So, people make two mistakes. One is, they just get every email they can get and now they’re seen as a spammer. Don’t do that. The other is they think, “Who might hire me? They only have, like, 15 people.” It’s a word of mouth game. So, the way I get hired as a marketing consultant, yes, sometimes it’s a potential client. But more often than not, you know, four out of five, it’s somebody else. My brother-in-law who reads my newsletter and finally knows what I do for a living after how many years, and a friend.

Michael Katz: [00:41:58] If you think about how word of mouth works, it’s two people sitting in Starbucks and somebody goes, “I’m just so sick of my accountant. He never calls me back, blah, blah, blah.” And then, the other guy goes, “Look at this guy’s newsletter, call him.” What’s funny is when people refer professionals like that, they don’t even necessarily know how the professional works, what they charge, how good they are. If I said, “I need a guitar teacher,” your brain goes, “Who do I know? Call this guy.”

Michael Katz: [00:42:27] So, if you take those 500 people, your brother-in-law, your college roommate, colleagues, more business people, and you’re in front of them every month, talking, whatever it is you do, what happens is they refer you. So, when I start a newsletter with a new client, I’m like, “Give me those people. Again, only people you know.” The first time you publish, out of 500, 50 of those people are going to unsubscribe. And, yes, you’ll get one person maybe.

Michael Katz: [00:42:51] Although, it doesn’t even happen anymore, who’s angry that they’re on the list. It happened ten years ago and when everybody was like, “Spam. Don’t spam me.” Now, for whatever reason, like when was the last time you heard somebody complain about spam? It’s not even a thing anymore. But, now, you’re off and running with your 450 people. And, yes, it’s good to add people because it’s a leaky bucket. Every month, people move or whatever. But you don’t need to, like, aggressively grow your list. In fact, I don’t know a way to do that that isn’t spam.

Michael Katz: [00:43:19] But I practice what I call aggressive opt in. When I meet somebody, I go, “Hey, can I do my list?” And we connect. So, I’m adding onesies, twosies all the time. You will get some people who wandered over to your website and sign up. But not a lot if you’re the average professional person. So, you have to kind of work it intentionally. But what’s amazing is, you only need, like, 500 people you know. Yes, if you’re selling products, you need 50,000 people. If you’re selling professional services, I mean, if I get 20 new clients a year, it’s all I can handle.

Michael Katz: [00:43:54] So, the numbers are small. And, again, it works very well for this population, which is different than if your target needs to do all kinds of stuff like this. It’s really not a list size thing. It’s a quality thing. Quality of the list.

Mike Blake: [00:44:09] Is there an optimal frequency for publishing newsletters?

Michael Katz: [00:44:12] Everyday. I think, again, for a professional service newsletter – once again, just to say – it varies. If you owned a bar, it’s probably once a week on a Thursday afternoon. But in my world, almost everybody I work with, it’s once a month. So, it’s only 12 times a year. And I say only, because it has to be manageable. I publish my newsletter every two weeks, which I think is perfect in terms of effectiveness. But most people can’t sustain that because they have real jobs. Once a month is a nice rhythm to that. It gives you time to get it ready, publish it, and then get some breathing room for a couple of weeks and start again.

Michael Katz: [00:44:57] It’s funny, like, 18 years ago, I would say to people, “Once a month, and your troubles are over.” Now, I say, “The least you can do it, I think, is once a month because there’s so many other things out there that you’ll be invisible if you back up to the default, which is quarterly.” I don’t think that’s enough anymore. But it’s more than enough – well, it’s enough. I mean, again, all my clients do it that way, mostly. And they all regularly, because people share their success stories, like, “Hey, I just got a new client. They read some of my newsletter.” You know, it happens all the time. So, it’s a good pace.

Mike Blake: [00:45:30] So, we’ve talked a little bit about, in effect, a long tail of newsletters and how you measure performance. But it also seems to me that one of the benefits of newsletters is that, unlike podcasts, for example, there’s a lot of data out there that can give you insight in terms of who’s opening it and who’s reading it, that sort of thing. Are those metrics that you follow? Do they matter to you? And if so, what do you really pay attention to? What do you use? And maybe what’s overhyped too?

Michael Katz: [00:46:02] Well, I think newsletter data is overhyped, because the only thing you can measure is opens and clicks and bounces. So, because that’s the only thing you can measure, that’s what we measure. But the truth is, if I’m not selling sneakers or something, what’s the difference how many clicks there were? It doesn’t matter. What matters is, has anyone ever said, “I called you because of your newsletter”? And I’d say even there, yes, you get these direct connects, which are great. I love when a client tells me that or I get that. My favorite call is somebody goes, “Hi. We’ve been reading your newsletter for two years and want to talk to you.” That’s a client coming up right there.

Michael Katz: [00:46:47] But people like to measure stuff. The thing is, with opens is, first of all, it’s inaccurate in many ways. And, by the way, Apple just made a change to their privacy policy. So, every Apple device is going to look like it opened your newsletter, so everybody is going to become even more irrelevant. But we’re not in a click to buy world. We’re in a relationship building world. So, it’s almost like if you went to a networking event and measured how many hands you shook, it kind of relates to did you make your way around the room. But it’s not really what you’re measuring.

Michael Katz: [00:47:21] So, although I do provide data to my clients, and people ask about it often or usually before they hire me, I’m not even sure they even look at it after they’re up and running. There’s a certain leap of faith, though, because it’s relationship building. It’s hard to connect A to B.

Michael Katz: [00:47:40] Part of the reason I work only with small firms now – I used to work with big companies – is because I got tired of having to defend it. Because if you’re the marketing guy in a big company – because I used to be – you got to defend everything you spent to the CFO. If you owned the business, I don’t need to explain to you the value of relationship building. So, I’d much rather work with someone who goes, “Yeah, I get it.”

Mike Blake: [00:48:03] So, we’re talking with Michael Katz. And the topic is, Should I create an email newsletter? Does the time of day that you send an email newsletter out matter?

Michael Katz: [00:48:19] Not anymore. I mean, back in the day when we all closed our computers at 5:00 on Friday and didn’t look at them until Monday morning, I think so. But it’s very much a 7 by 24 thing now. I try and avoid the times people are in heavy delete mode. So, even though it’s 7/24, people do sleep. So, you wouldn’t want to send a newsletter overnight.

Michael Katz: [00:48:40] Like, my wife wakes up, reaches for her phone, and starts deleting. She’s trying to clear the day so when she gets in front of her desk, she’s got less stuff. You don’t want to be in that pile because the bar is higher. I also avoid Mondays, because even though, yes, it’s 7/24, we do sort of slow down.

Michael Katz: [00:48:57] So, to me, a newsletter, any time between, like, 9:00 in the morning or 8:00 in the morning, I try to do in the morning rather than in the afternoon. But I have no data for that. And then, you know, Tuesday through Friday, again, for a business newsletter. But I have never found a difference in any measurable way that says, you know, middle of the week, middle of the day is better. But this kind of stuff, I don’t think matters.

Mike Blake: [00:49:26] One piece of advice you hear pretty frequently when engaging in digital marketing is to reuse that content if you can. If you’ve got a newsletter article, make it into a YouTube video, podcast, whatever, do you – no pun intended – subscribe to that theory? Or do you think that content needs to be more kind of siloed?

Michael Katz: [00:49:49] I totally agree. In fact, the best thing that happened to email newsletters is social media. I mean, when I first started doing a newsletter, you’d send the thing out and then it evaporated, it was email. So, if you subscribed to my newsletter 30 seconds after I sent it out, not only did you not get that one, you didn’t get any of the other ones because it was in the days before WordPress, where you could easily put the thing on your website. So, initially ,it was just email, send it, gone.

Michael Katz: [00:50:18] Then, the blog is invented. Now, you could send it, but also post it on your website, same content, though. But the nice thing is it now lives on your website, Google likes it, people can check it out after the fact. So, that was the state of the world for another five or six years.

Michael Katz: [00:50:34] Now, in social media, for example, with my newsletter. I put it on my website before I send it, now it’s a blog. Then, I send it, then I record it, now it’s a podcast. I don’t interview people like you’re doing, I just record it. But there’s a lot of sight impaired people, people who prefer to listen. What do I care? It adds 30 minutes to the process. So, now, I have a podcast. It’s on my website. It’s on iTunes. Then, I take it and I chop up little pieces of it.

Michael Katz: [00:50:59] And for the next year, I cycle it through my social media – which, for me, is almost entirely LinkedIn – with all my other newsletters. And then, it expires in a year. It’s just a little bit of a segment of it, an image, and I link it back to the thing on my website. So, I’m getting people who missed the first one. I mean, even your best readers, you know, if you’re open rate is north of 35 percent, you’re doing well. So, that means two out of three people don’t read each one at best. So, they see it on social media. I published a book, it was just 29 slightly changed newsletters.

Michael Katz: [00:51:38] So, it’s great. The hard part is writing it once. Then, how many different ways can you just spray this around over and over again? And, yes, I suppose – as I was joking earlier – there are some people who are like, “Hey, wait a second. I read this before.” But most people don’t. And this way you get way more mileage for your hard work of writing it once.

Mike Blake: [00:52:01] Michael, this has been a great conversation. We’re running out of time and I want to be respectful of yours. There are probably questions that we didn’t cover that somebody would have asked or didn’t go as deeply as somebody would have liked. If someone wants to contact you for more information about this topic, can they do so? And if so, what’s the best way to do that?

Michael Katz: [00:52:19] My website is just michaelkatz.com, and they can subscribe to my newsletter or contact me there.

Mike Blake: [00:52:27] Well, great. That’s going to wrap it up for today’s program. I’d like to thank Michael Katz so much for sharing his expertise with us.

Mike Blake: [00:52:35] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business 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 that we can help them. If you’d like to engage with me on social media, with my Chart of the Day and other content, I’m on, LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

 

Tagged With: Blue Penguin Development, Brady Ware & Company, Decision Vision podcast, email marketing, email newsletter, marketing, Michael Katz, Mike Blake, professional services marketing

Decision Vision Episode 126: How Do I Choose a Manufacturer? – An Interview with Susan Dudas, My Day Screen

July 22, 2021 by John Ray

choose a manufacturer
Decision Vision
Decision Vision Episode 126: How Do I Choose a Manufacturer? - An Interview with Susan Dudas, My Day Screen
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My Day Screen

Decision Vision Episode 126: How Do I Choose a Manufacturer? – An Interview with Susan Dudas, My Day Screen

Inspired by her husband’s skin cancer diagnosis to create line of natural sunscreen products, Susan Dudas was confronted by the dilemma of how to choose a manufacturer for her products. Susan joined host Mike Blake to share what she’s learned from her experiences, including how to search for the right manufacturer, the types of questions to ask, managing the relationship, product liability, and much more. Decision Vision is presented by Brady Ware & Company.

Make2Give LLC dba My Day Screen

After her husband was diagnosed with skin cancer in 2018 and a search for natural, mineral sunscreen was unfulfilled, Founder Susan Dudas decided to create a mineral sunscreen brand that offers products she would want to wear daily. She launched the My Day Screen™ brand in October 2020.

My Day Screen™ offers natural, mineral sunscreen products that feel and look good on your skin. My Day Screen™ is defined by four pillars:
1. Plant-based, natural ingredients.
2. Holistic Light Protection – protection against UVA, UVB and Blue Light.
3. Eco-friendly packaging; and
4. Donation of $2 to nonprofits on every qualifying sale. My Day Screen™ products are sold online at www.mydayscreen.com and on Amazon.

Company website | Facebook | Twitter | Instagram

Susan Dudas, Founder, Make2Give, LLC

My Day Screen
Susan Dudas, Founder, Make2Give, LLC

For over 20 years, Susan Dudas has served as a business consultant to multinational companies in a variety of industries. Susan designed and facilitated organization effectiveness initiatives for her domestic and international clients. She’s also an entrepreneur, having co-founded and operated a mobility transportation company, co-founded two charter schools for low-income students, and founded the My Day Screen natural sunscreen brand.

Susan is also an avid volunteer and supporter of non-profit organizations that help foster care youth, homeless youth, and adoptive families. After her husband was diagnosed with skin cancer in 2018, and a search for natural mineral sunscreen was unfulfilled, Susan decided to create a mineral sunscreen brand that offers products she would want to wear daily. She launched the My Day Screen brand in October 2020. My Day Screen products are sold online at www.mydayscreen.com and on Amazon.

LinkedIn

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the 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.

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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 at decisionvisionpodcast.com. Decision Vision is produced and broadcast by the North Fulton studio of Business RadioX®.

Connect with Brady Ware & Company:

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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.

Mike Blake: [00:00:22] 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 when you might need help along the way.

Mike Blake: [00:00:42] 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. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols. If you like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:16] So, today’s topic is, How do I choose a manufacturer? And I’m particularly excited about this topic for two reasons. Number one, I’m not a manufacturing guy. I don’t know anything about it. I’m a professional services guy, and most of my clients are in the tech space. And so, I do a little bit of work with manufacturing clients, but I’m certainly not going to sit here and try to be any kind of expert in it.

Mike Blake: [00:01:43] I’m also excited because this is an experiment or, I think, more likely the start of an evolution of the program. Throughout the first 125 episodes or so, our decision content has been positioned as a binary question, should I do X? Should I fire my client? Should I sue my partner? Should I have a business partner? Should I raise angel capital? And so, forth.

Mike Blake: [00:02:14] And with this topic, we’re going in a different direction because there’s another kind of choice that we really haven’t addressed and, I think, will be helpful to the listeners that we do address that in various cases, which is not a choice to act or not act, but rather a choice that is borne out of selection. Many decisions that we have to make as business people or executives are of a nature where it’s not that we’re deciding whether to do something or not. But we’re deciding, maybe, on the right way to do something or the right path, the right advisor, the right resource, the right company, the right model. All kinds of decisions which, again, are not binary. They’re simply choices.

Mike Blake: [00:02:59] And so, today’s topic is, How do I choose a manufacturer? Which would be sort of the maiden voyage of this new kind of topic. And I hope you’ll like it as much as I think that we’re all going to find enjoyable. And joining us today is Susan Dudas, who is founder of Make2Give LLC, which does business as My Day Screen.

Mike Blake: [00:03:20] For over 20 years, Susan Dudas has served as a business consultant to multinational companies in a variety of industries. Susan designed and facilitated organization effectiveness initiatives for her domestic and international clients. She’s also an entrepreneur, having co-founded and operated a mobility transportation company, co-founded two charter schools for low income students, and founded the My Day Screen natural sunscreen brand. Susan is also an avid volunteer and supporter of non-profit organizations that help foster care youth, homeless youth, and adoptive families.

Mike Blake: [00:03:53] After her husband was diagnosed with skin cancer in 2018, and a search for natural mineral sunscreen was unfulfilled, Susan decided to create a mineral sunscreen brand that offers products she would want to wear daily. She launched the My Day Screen brand in October 2020. My Day Screen products are sold online at www.mydayscreen.com and on Amazon. Susan, welcome to the program.

Susan Dudas: [00:04:18] Great to be here, Mike. Thanks a lot for having me.

Mike Blake: [00:04:21] So, My Day Screen, was that the first time that you ever had to select a manufacturing company?

Susan Dudas: [00:04:32] Actually, it was. It was. I was in manufacturing prior to this. I’ve also been involved in education and consulting. But this was really my first venture into having to seriously select a manufacturer.

Mike Blake: [00:04:48] And how much did your background consulted with manufacturers? Did that help you a lot? Or do you find that there’s a big difference of advising on the choice, maybe advising how to work with them versus actually making the choice yourself?

Susan Dudas: [00:05:03] It really did help me in the preparation. Early on in my career, I was an H.R. Manager in a production plant. It was a clean plant, circuit board design and assembly. So, I was aware of quality. I was aware of a lot of the compliance. So, there were a lot of things that were top of mind as I was going through this process. But that was a very different process than formulating and manufacturing mineral sunscreen. So, I would say it helped in terms of framing the kinds of questions that I needed to have and what I need to be aware of. But it didn’t prepare me for the world that I was entering.

Mike Blake: [00:05:43] So, I’m always interested in kind of the language of business because every industry, I think, has, if not their own language, certainly their own dialect. If you’re somebody like me that’s used to communicating with people like accountants or attorneys, is that different? Is the way that you communicate different from communicating with, say, manufacturers?

Susan Dudas: [00:06:06] It’s same in many ways. I mean, you’re talking about deliverables with service providers, you’re talking about your goals, what you want to accomplish. You’re going to have a contract. You’re going to have service agreements. You’re going to talk about that. You’re going to talk about compliance. But it’s different in many ways because, most likely, you’re talking about a finished product. You’re talking about a tangible product. You also are able to negotiate your terms with manufacturers, which maybe not so much so with service providers, the fixed fees. So, yeah, you’re definitely having different conversations about quality, about shipping, about the product design, different conversations.

Mike Blake: [00:06:50] So, once you decided that you need to define a manufacturer for My Day Screen, what was the first step? How did you find or identify potential candidates to become your manufacturer?

Susan Dudas: [00:07:02] I love this question because it’s my natural nature to prepare, and that served me well. Because, absolutely, the first step in any advice I would give to someone, maybe on the doorstep of this process, is to prepare. Because the more that you know going into these conversations while you’re looking for manufactures, the better you’re going to be positioned. Because if you think about it, they’re going to ask you questions. So, why not have those questions prepared ahead of time? It gives you an advantage.

Susan Dudas: [00:07:35] And for instance, the very first question that I learned I had to ask myself was, do I have a design? And in my case, it was a formulation, so I didn’t have a formulation. So, if the answer is yes to that, you’re going to go down one path. If the answer is no to that, you’re going to go down maybe a couple of different paths. So, I can elaborate on that if you like me to.

Mike Blake: [00:08:00] I want to come back to that part. But what I what I like to sort of stand for the segment and clarify, you know, is finding a list of potential manufacturing candidates as simple as doing a Google search? Or are there specific places that you went to sort of look to give yourself a leg up on the search?

Susan Dudas: [00:08:22] Sure. Sure. Obviously, I did the Google search and I Thomasnet, and that got me nowhere. I mean, it gave me names. But in my particular case, mineral sunscreen is a subset of the sunscreen market. So, I was looking for specific manufacturers that manufactured mineral sunscreen, and a lot of them don’t. And a lot of beauty manufacturers don’t even get into sunscreens because it’s an over-the-counter drug.

Susan Dudas: [00:08:51] So, where I found that I got the most mileage was to look within the industry, our industry of indie beauty, within the beauty community, and there’s directories within that. I also talked to people. Now, within the beauty industry, sunscreen included, we don’t talk about who we use as manufacturers. We hold our kids close, but we hold our manufacturer’s names closer. So, we just don’t discuss this. However, you can get enough information from your peers in this peer group – and I did – that was able to open some doors and at least get me started. And along the way, I was much more fruitful to talk within the industry than to just do a general online search.

Mike Blake: [00:09:36] So, that’s interesting. I’m going to go off the script a little bit, but I think that’s a really interesting observation I would not have expected. Why do you suppose that people keep the identity of their manufacturer such a secret? For example, I wouldn’t keep my CPA a secret. I wouldn’t keep my lawyer a secret. But I guess manufacturing is a different animal. So, why do you think that that’s such important and sensitive information that people are reluctant to reveal it?

Susan Dudas: [00:10:07] Well, I can’t speak across industries. But within the beauty industry, you don’t see patented formulations. We are over-the-counter drug, FDA regulated, we have to put all of our ingredients out there. So, we publish our ingredients list and it’s required, which is a wonderful thing, that transparency is beautiful. So, that takes some of the mystique away of what’s in this. I guess, you don’t see a lot of patents within the beauty industry. They might patent a process or a function within a formulation, but you’re not going to see that. So, you don’t have those protections there around. “Oh, what are they using?” Because we publish that.

Susan Dudas: [00:10:51] So, there are protections then about who’s going to make it. Because you’re going to see a lot of similarities and formulations, so who is making it? That might change up your raw materials. That might do things a little bit different. Process might be a little different. So, that’s the way I look at it, is, we’re an open book in terms of our ingredients. So, we do protect our manufacturers because we don’t want some pirating. We don’t want someone to necessarily mimic our formulation.

Mike Blake: [00:11:24] Interesting. So, the fact that you’re in an FDA regulated sector and the fact that your value proposition is using all natural mineral products, do those two features make it more difficult for you to find a manufacturer?

Susan Dudas: [00:11:45] Absolutely. Absolutely. Yes. Because a lot of people don’t want to touch OTC, over-the-counter. There’s a variety of costs involved. There’s testing. The facilities we look for are FDA regulated. We want to get current good manufacturing process certifications with our manufacturers. So, there’s a lot of hoops to jump through for manufacturers that manufacture over-the-counter products, over-the-counter drugs, and some of the beauty products. If you’re making eyelashes, you necessarily want to go through the pain of having to get the FDA auditing and regulating you on a regular basis.

Mike Blake: [00:12:30] And, you know, the natural part is kind of intriguing, too, because in a way – I’m probably totally off on this – I almost wonder if it’s like kosher rules. I wonder if a manufacturer kind of has to have a certain outlook or a certain culture, if you will, to properly apply manufacturing processes with all natural products or inputs as opposed to another manufacturer that really just doesn’t care. “Just give me the formulation and I’ll do it.” Am I making more of that than it is? Or does it take a special kind of manufacturer, a special kind of owner, and a plant manager to do that effectively and kind of stay true to what you want to accomplish?

Susan Dudas: [00:13:16] Yes. No, I think you’re right on point, Mike. Especially when you talk about organics, because there is a certification process with organics. So, when you have naturals, you have the organics. Now, natural, there’s not a certification process for naturals, but you do want to find a manufacturer or I want to find a manufacturer that embraces that. They understand it. And maybe from the sourcing standpoint, you want that manufacturer to source those raw materials that are totally aligned with your brand and where you’re taking it, and they are natural. And I was very, very careful about that.

Mike Blake: [00:13:58] Of course, we hold the worst of the coronavirus pandemic. We’re in this trans-pandemic phase right now. I don’t know if you’re still active in maybe finding alternative manufacturers, but even if you’re not, I mean, how do you suppose that the coronavirus has changed the way we even search for manufacturers? Maybe the way the questions you ask, the due diligence. Of course, we’re all familiar with the supply chain disruptions that have been prevalent in every place, from semiconductors to porkchops, basically. Does that change, do you think, in any way the approach or at least tweak the approach in trying to find the right manufacturer?

Susan Dudas: [00:14:41] I would think that anyone that lived through COVID – in my case, I was trying to launch during COVID – I would think would have a very different perspective and more careful perspective on preparation when it comes to the manufacturing process, preparation in terms of, you mentioned, supply chains disruption. Initially when things were shutting down in March of 2020, everyone was trying to gobble up components, you know, their packaging components. It felt like almost a free for all of what can you get, when can you get it, and how can you secure it.

Susan Dudas: [00:15:24] Interestingly, we were not only competing against other beauty manufacturers, but we were competing against our own manufacturers who were completely changing their lines over to manufacture hand sanitizer, because that’s where the margins where. Everyone wanted hand sanitizer. So, obviously, not only impacted our lead times and our ability to get the attention of our manufacturer, but it also impacted the supply chain components. Trying to get bottles and pumps at a time when everyone was trying to fill bottles with hand sanitizer was a real challenge.

Susan Dudas: [00:16:06] So, you know, my take away from that is, I really can expect longer lead times. It is definitely impacting lead times. I need to be prepared. I need to keep track of my inventory. Especially in my business, because I can’t turn on the faucet tomorrow. There’s a lot of testing with over-the-counter drugs. It takes a good year – for me anyway – to bring a product to market because of all the testing involved. So, with a long lead times with the manufacturers that I think just will be there, I really sense will continue to be there post-COVID, that you have to really be more careful with your planning.

Mike Blake: [00:16:50] And I haven’t thought about what you just described, that all up and down the supply chain you’d be fighting not just for the resources for the manufactured product, but the packaging as well. In your case, the dispensing packaging. Did you have any recourse? I mean, do manufacturers make any commitment they’re going to allocate X amount of production with you? Or do they have more or less complete power in terms of where you are in the queue?

Susan Dudas: [00:17:19] I think it’s also where you fit in the food chain, right? As a small indie startup, they have MOQs, Minimum Order Quantities. And as a startup, my quantities are going to be small relative to their larger customers that can keep their lines going for a long time. So, it depends on where you are in, like I say, the food chain as to how much negotiating power you have. I realized that having heated conversations about lead times were getting me nowhere. Because I suspect that every time they picked up the phone, they were having those very similar conversations with their other customers.

Susan Dudas: [00:18:01] And manufacturers were at low capacity. At some point, they were below 50 percent in terms of their ability to operate. So, it wasn’t just their lines. They were cleaning all the time. In particular clean industries that are going to be shut down for cleaning. They have protocols they had to have in place. And to your earlier point, I think some of those protocols will continue on because of just good manufacturing practices. But, yeah, it was definitely more challenging, and I think those things will continue on. And I realized that as a small startup, I didn’t have a lot of leverage.

Mike Blake: [00:18:45] So, you and I were having a conversation yesterday in preparing for this one, in which I learned a lot just having a preliminary. And one of the things that came up that I’d love you to talk about a little bit is, the role of the manufacturer often is not, I guess, just, “Hey, make me some stuff.” They provide other services. Many of them, it sounds like, provide many other services to help move the product from idea into production. And can you talk about what some of those are and how you’ve availed yourself of some of those support services?

Susan Dudas: [00:19:25] Sure. The first question, I need to ask myself and anyone, again, about ready to embark upon this journey is, do you have a design? Now, that’s critical. So, that’s going to determine which direction you go. If you already have a design, then you’re going to look for a contract manufacturer. If you don’t have a design, then you have some questions to ask yourself. Do I want a custom design? Do I want my manufacturer to do some R&D, create my design, a custom design, and make it? Or is it so special that you need to find a specialist to create your design or formulation and then come back to manufacture and have them make it?

Susan Dudas: [00:20:06] Or are you such that you just want to get your product to market, you’ve got a phenomenal marketing distribution strategy and you’ll do private label? Meaning, I don’t need to own this design. I just need you to make it. Pull some stock design off the shelf, make it for me. I’ll put my fabulous label or packaging on it and away I go.

Susan Dudas: [00:20:33] So, upfront, the design question and the ownership, which is closely coupled to that, is really, really critical. It was critical for me. I wanted custom formulation and I went through that process. So, I found a great manufacturer that had a phenomenal R&D team and we worked together to create some great products.

Mike Blake: [00:21:03] Now, since you’re an Amazon seller and my wife is an Amazon seller. She’s been on the program before, I think it was episode 49. And one of the things that is always on your mind, especially with Amazon, I think, is product liability. And I understand from my conversations with Cordelia, anything that’s FDA regulated, Amazon, some justification watches like a hawk, and they have low to zero tolerance policies for mess ups. And, again, one of the things you and I were talking about that I haven’t thought about before was handling liability. If a product is bad and then gets released into the wild and then hurts the customer, it’s going to move back up the supply chain or somebody else has to take responsibility.

Mike Blake: [00:21:53] And the question I’d like to ask you is, if something goes wrong, is it going to be somebody like you that’s actually ultimately paying the manufacturer? Or does the manufacturer have responsibility, where if they do something wrong that they’re the ones that pay the price as opposed to you, or is it shared, or some entirely different kind of model?

Susan Dudas: [00:22:14] So, I do want to look for shared responsibility. And I have walked away from contracts. As we discussed yesterday and prepped for this show, I have walked away from manufacturers that were not willing to look at a shared responsibility. And those things that they control, I believe they should have responsibility for. If they use the wrong ingredients or they use the wrong processes, and they’re out of compliance, there needs to be some liability capability and a risk falls on that. If I take ownership of the product and I mishandle it, placed it in conditions that are going to affect its effectiveness, then I should have a liability.

Susan Dudas: [00:23:00] So, I look for shared responsibility and I’m willing to spend the money for attorneys to make sure that we get that right. And as I said, I walked away from very much one sided risk contracts, where the burden is on me and not on that manufacturer. It was so important, because something is going to happen. There’s going to be some type of claim. It’s going to happen. So, you really need to negotiate that upfront before you become a partner or married to a manufacturer.

Mike Blake: [00:23:40] So, at the start of our conversation, you emphasized pretty heavily the need to be prepared. What does that look like? How do you prepare for a conversation with a manufacturer, particularly for the first one?

Susan Dudas: [00:23:53] Right. Yeah. I think it’s easy as anticipating what you think they’re going to ask you. So, they’re going to ask you, do you have the design? I went over that. They’re going to ask you what capabilities does this design require? You need to know that. Do you need extruding? Do you need molding? Do you need clean manufacturing for printed circuit board design or if you’re manufacturing food. Is it stamping? Is it an assembly line? Is it batch? So, you need to know that, what those capabilities are that are required. And then, you need to know what else you want them to do for you.

Susan Dudas: [00:24:37] One of your questions before, they do an array. Many manufacturers can offer an array of functions, filling, labeling, packaging, testing if required. Some of them do fulfillment. Some will do a full turnkey. I mean, they’ll offer marketing services and design your packaging for you. I’m not sure I’d recommend that. You’re not their core business. So, knowing what you need from the manufacturer is really key.

Susan Dudas: [00:25:12] A couple of things that are really important, know what your costs are, what are your target costs. Go into that conversation knowing what’s your retail costs, what margins you need to get, and then you’re talking to them about that per unit target cost. That’s going to weed out some manufacturers right there. Quantities, your MOQs, that’s going to weed out some manufacturers. If you’re a startup and their MOQ is, maybe, 100,000 and you’re like, “No. I can’t order 100,000 for my initial order.” Well then, you need to walk somewhere else.

Susan Dudas: [00:25:45] And then, of course, you want to know about lead times. Given your particular design, your product, how long is it going to take, not only for that first order, but how long is it going to take for successive orders so that you can plan for your inventory so that you’re not out of stock at a very important critical time, maybe in the year, the selling cycle. And then, the contract, knowing what you need to have in a contract, is it ownership, is it liability? The compliance.

Mike Blake: [00:26:16] That’s good. So, let’s say we’ve identified some manufacturers. We’ve done our homework. Who do you contact? Is it a plant manager? Is it the owner? What’s the title of the job function? The person you need to talk to that can have that conversation and represent the manufacturer to you so that you don’t have to have the same conversation three or four times?

Susan Dudas: [00:26:43] I think it depends on the size of the manufacturer. My experience has been sales reps, account managers typically are your initial contact. That’s typically who you’re going to have that rapport with. Most manufacturers in the sides I’ve dealt with have had that function within the organization. So, you’re dealing with a sales organization, an account manager function. But I wouldn’t stop there as you move through. That’s going to be your initial.

Susan Dudas: [00:27:12] But as you move through the relationship, and you’re vetting, and you’re narrowing down your list, you really want to start having additional conversations up the hierarchy. And here’s why, as I mentioned before, you’re going to have problems. You’re going to run into problems, whether they’re external problems or internal manufacturing problems. And you really don’t want that first conversation that you’re having the escalated conversation. You don’t really want that first conversation with that director of engineering or director of operations to be a heated discussion. You want to have some relationship points in the bank so that if you’re negotiating with them, it’s not your first time discussion.

Mike Blake: [00:28:06] So, as you then move into that process, what are you looking for from, I guess, how the manufacturer’s present themselves? How are you vetting them then to make sure that they can do what they say that they can do?

Susan Dudas: [00:28:23] I use a spreadsheet, so I list my options along the left hand side and I list my criterion across the top and I just start keeping track, whether it’s a rating number or check mark – I’ve done both. But I keep my spreadsheet. And as I talk to manufacture and move through the process, I’m seeing how many checks I have or how their score is. That’s how I really vet and move through. And, obviously, you can prioritize those. If their costs are too high, off the list. Or if they’re quantities are the threshold, quantities are too high, off the list. So, I think it’s keeping that spreadsheet, continuing those conversations. As I said, the contract that was key for me. I actually vetted down to a few on a couple of occasions. And I was surprised and saddened that I had to remove them from the list.

Mike Blake: [00:29:28] Do you ever have an opportunity to talk to some of the manufacturers or other customers, get kind of a testimony or review?

Susan Dudas: [00:29:36] I have not. Not in my industry. We just don’t really talk about the manufacturers. Maybe I’m in the wrong circles. Maybe I got to get in better circles. But, no. In terms of references, I have. But that’s very, very, very few because they keep their customers very, very close. In fact, very rarely would they release a customer name. Maybe at a trade show or something, I might have a little bit of exposure to that. But, typically, it’s a good manufacturer that does not release their customers names. They’re very careful about that.

Mike Blake: [00:30:21] And in your process, did you make any site visits? Did you actually go there and walk the floor?

Susan Dudas: [00:30:26] Absolutely. Absolutely. That’s a key criterion for me. And I’ve done it twice. Typically two visits for the ones that I’m seriously considering. Two visits, because the first visit your eyes are wide open. It’s a good exchange. They’re on their best behavior. After that, you’re going to have a lot of questions. As you go back and you get those questions answered, you definitely see things differently, hopefully not too differently, but it’s a deeper dive that second time. I would clearly recommend that.

Mike Blake: [00:31:06] And when you walk the floor, I’m curious, what are some of the things that you’re looking for?

Susan Dudas: [00:31:11] Well, I’m looking for quality. I’m asking about maintenance of their equipment, asking about their testing procedures. I love seeing their testing room. Sometimes they leave you out of there if they have anything that’s proprietary going on. But, typically they don’t. Their customers names are not visible. But I love going into their labs and their testing facilities to see that I’m looking for safety. Safety, not only employee safety precautions, but product safety, people wearing nets, their shoes covered, what kind of environment does that look like. So, eyes wide open. And am I being introduced to different people in the different organizations, touch points that I would have if I was a customer of them.

Mike Blake: [00:32:08] Now, over the course of your selection process, did you find yourself developing a relationship with the manufacturers management? A chance to really talk with them and see how much they really seemed to care about you or your idea? Did that ever factor into your decision or no?

Susan Dudas: [00:32:30] Yes, it did. It was important for me to meet the R&D manager because we were looking at custom manufacturing. I wasn’t pulling a stock formulation off the shelf. I wanted something custom. I wanted to be right there. I wanted to show them samples of what I was looking for. And I wanted them to see it. I wanted them to try it. I want to touch it, put it on, tell them what I liked about it and didn’t. That was the R&D director – that was really important – because he was overseeing the customization, the formulation process. So, that was critical.

Susan Dudas: [00:33:07] I did not meet and I have a regret that I didn’t meet the sales executive, the sales director. Because we had had some conversations during COVID that were not always pleasant with lead times and such. And this is something I would recommend to your audience, as I mentioned before, you really don’t want that first conversation to be that heated conversation. So, the extent that on your visits or even post-visit that you can make contact with the head of sales or head of account management, other leaders, I would recommend that build some rapport, it could be helpful in your negotiations.

Mike Blake: [00:33:51] So, in your particular search, how long did it take you to find a manufacturer from the time you said, “Hey, I need to find a manufacturer,” to the time when you said, “Okay. I’ve got one, and they’re going to be my primary source.”

Susan Dudas: [00:34:05] About six months.

Mike Blake: [00:34:07] And do you think that’s typical? Do you think that it takes most people that amount of time in your experience?

Susan Dudas: [00:34:13] I think the question, it depends. I hate to say that, but it really does depend on the complexity of your product. It depends on the industry that you’re in. It depends on the amount of labor you put into the search. If you still got your day job and you can only do this at certain hours, it might prolong your search. But I think that’s probably a good standard. And, also, it depends if you’re going to private label, just pull a stock item off the shelf or design off the shelf and you’re going to label that yourself. That’s going to be a rather quick process. Most of that time is going to be around, you know, getting your packaging ready and making sure that your contract is in place.

Mike Blake: [00:35:01] And in your search, how many manufacturers did you talk to before finally settling on one?

Susan Dudas: [00:35:07] Oh, wow. At least 20.

Mike Blake: [00:35:10] Really, 20?

Susan Dudas: [00:35:11] Oh, my gosh, yes. At least 20.

Mike Blake: [00:35:14] Yes. And I assume just calling them up or emailing them and having your initial conversations. I’m sure you didn’t visit all 20. Your probably narrowed —

Susan Dudas: [00:35:23] No, I did not. That first call, because I knew what to ask, “Do you manufacture mineral sunscreen?” “Sorry. We don’t do over-the-counter drugs.” Or, “No. We don’t do mineral. We’ll do chemical,” which is very different. So, I was able to eliminate maybe 40 percent just with those first two questions. And then, after that, we get into the MOQs and locations and lead times. And in my industry, the demand is greater than the supply of manufactures. So, there’s long lead times.

Mike Blake: [00:36:08] We’re talking with Susan Dudas, founder of Make2Give LLC, which is also known as My Day Screen. And the topic is, How do I choose a manufacturer? So, I’m curious also, did you only consider domestic manufacturers or were you inclined to explore, perhaps, foreign manufacturing?

Susan Dudas: [00:36:28] Yeah. I love that question. I was only looking for domestic, not only the made in America, but just very practical. I mean, that was primarily why I wanted the products made in America. But, also, I think about the time zone, that was very much a consideration for me. As well as you think you take possession of product, you’ve got the whole shipping. Do they store it then? Or do they bring it back here then I have to find storage over here? It was actually something I didn’t put a lot of thought into international, but I’m aware that there would be a lot of considerations if you’re considering that. Fortunately, I was able to find a great manufacturer that we could arrive on a lot of the terms within the contract, and have had great success with them.

Mike Blake: [00:37:21] So, do you have or have you given thought to having backup manufacturers in case the first one, for whatever reason, isn’t able to fulfill an order, you get shoved to the back of the queue because you’re the small fry in the pile? Have you thought about or maybe do you even have a backup manufacturer? And if so, how many do you have? And what do those agreements look like?

Susan Dudas: [00:37:46] Right. I would say, just in general, that’s really wonderful. That’s where the spreadsheet helps out as you’re narrowing down your choices. You’re looking at those that meet most of your criteria that could be considered a backup. I think that’s critically important because you don’t want to be caught with not having inventory. Or if they have a problem, maybe they’ve got some compliance issues that come up. That wasn’t my case. But, you know, if they have some audit issues or something comes up, you need a backup. You really don’t want to keep your customers hanging or your employees hanging as well.

Susan Dudas: [00:38:28] So, in my case, in my situation, I am looking for another manufacturer for a very specific process and product, because my current manufacturer does not use that particular process. And I don’t have a good sense from the industry state on this, but you’re not going to find a manufacturer necessarily that’s going to be able to do all of your line, the current and future line. There might be some processes that they’re not able to do. So, that’s the situation and so I am looking for another manufacturer. And it is very, very challenging. Quite honestly, I think it’s because of the demand and supply. It’s hard to get their attention, hard to get them to reply back on the phone. So, it is a challenge.

Mike Blake: [00:39:21] And, you know, finding the first manufacturer is hard enough. I’m guessing the second manufacturer where you’re basically saying, “Hey, I basically just need you on standby, but I’m not necessarily sending you a lot of business right now.” Not as exciting a conversation from their perspective, if we’re honest about it.

Susan Dudas: [00:39:38] That’s very true. Very true. Or this other product that I want to manufacture, maybe, it’s not going to have the yield, the volume, that would be exciting. So, absolutely to your point, yes.

Mike Blake: [00:39:54] Susan, this has been a great conversation. I want to be respectful of your time and we’re running out of time. If there’s somebody in our audience that wants to ask you a question that we didn’t discuss, somebody who wants to go deeper into something that we did, would you be willing to kind of take their question? And if so, what’s the best way for them to contact you?

Susan Dudas: [00:40:16] Oh, I’d absolutely love to help. Anybody that’s been through this journey knows it’s not an easy one. So, I’d like to make it easier for someone else. I can be reached at dudas, D-U-D-A-S, @mydayscreen, S-C-R-E-E-N, .com. That’s dudas@mydayscreen.com.

Mike Blake: [00:40:38] Well, thank you, Susan.

Susan Dudas: [00:40:39] Thank you, Mike.

Mike Blake: [00:40:39] That’s going to wrap it up for this program. I’d like to thank Susan Dudas so much for sharing her expertise with us.

Mike Blake: [00:40:45] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business 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 that we can help them. If you like to engage with me on social media with my Chart of the Day and other content, I’m on LinkedIn as myself and @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

 

Tagged With: Brady Ware & Company, choose a manufacturer, contract manufacturing, Decision Vision podcast, Make2Give, Manufacturing, Mike Blake, My Day Screen, outsourced manufacturing, Susan Dudas

Decision Vision Episode 63: Should I Buy a Business? – An Interview with Ray Padron, Brightworth

April 30, 2020 by John Ray

should I buy a business
Decision Vision
Decision Vision Episode 63: Should I Buy a Business? - An Interview with Ray Padron, Brightworth
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should I buy a business
Mike Blake, Host of “Decision Vision,” and Ray Padron, Brightworth

Decision Vision Episode 63:  Should I Buy a Business? – An Interview with Ray Padron, Brightworth

Why buy a business? How do I manage the process of buying a business? How do I prevent an acquisition from destroying the culture of my existing business? Ray Padron speaks from his experience as CEO of Brightworth, an acquisitive private wealth management firm. The host of “Decision Vision” is Mike Blake and the series is presented by Brady Ware & Company.

Ray Padron, Brightworth

Brightworth is a boutique private wealth management firm that empowers its clients to focus on what matters most. They do that by helping their clients build, preserve and to make an impact with their wealth.

Their advisers have deep expertise across the financial disciplines with certifications that include the CFA,CPA, CFP and CIMA, JD and CFTA. The major client focus of Brightworth includes the dental industry nationwide, corporate professionals and executives, business exit transition services, and retiring well.

should I buy a business
Ray Padron, Brightworth

Ray is Brightworth’s Chief Executive Officer, leading strategic and management operations across the firm. In addition, as a Wealth Advisor, he provides comprehensive financial and investment advice to help clients achieve their financial goals and dreams. His experience working with senior executives and business owners and their complex transition and succession strategies helps him guide both Brightworth’s and his clients’ success.

Ray began his financial career with what is now PricewaterhouseCoopers, later working for the Marriott Corporation and then serving as Vice President of Accounting Operations and Financial Reporting for Finalco Group, Inc. In 1986, Ray became a Principal and Senior Vice President of Finance for Capital Associates, Inc., a regional venture capital firm that provided both capital and funding services for portfolio companies.

In 1988, Ray created ARC Financial Services, a financial planning firm that focused on the unique needs of business owners. He later merged that firm with Ron Blue Trust, a national wealth advisory firm, starting their Washington, D.C. and Baltimore, Md. branches and eventually becoming the Vice President of Practice Areas and Chief Financial Officer at the national headquarters in Atlanta.

Ray is a Certified Public Accountant and CERTIFIED FINANCIAL PLANNER™ practitioner. He has completed the Investment Management Consultants Association’s Investment Analyst Program at the Wharton School of Business at the University of Pennsylvania and is a Certified Investment Management AnalystSM. In addition, he is an Accredited Estate Planner®, a Chartered Life Underwriter and a Chartered Financial Consultant. Ray has been named several times in Atlanta Magazine‘s list of Five Star Wealth Managers*.

Ray is currently on the Board of Directors for the Georgia Chamber of Commerce as well as Junior Achievement of Georgia, the Executive Committee of the Buckhead Coalition, and is past President of CEO Netweavers, a community of CEOs and trusted advisors committed to helping and improving the Atlanta business community. He is also a founding board member of Matchbook Learning, a national non-profit K-12 school management organization focused on a unique blended, competency-based model of learning for struggling schools.

He is an active member of Business Executives for National Security (BENS), a non-profit organization focused on bringing the private sector together with our government partners to apply best business practice solutions to its most difficult national security challenges. In addition, Ray is a past member of the board of directors of the Financial Planning Association of Georgia, and a past chairman and board member of an international faith-based ministry.

Over the years Ray has been a frequent speaker to executives on retirement planning. He has also spoken on operational excellence within the financial planning and wealth management industry.

Ray and his wife, Sharon, have four grown children and ten grandchildren. His hobbies include international travel, golfing with friends, reading and exercise.

For more information, you can visit the Brightworth website or email Ray directly.

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 I buy a business“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: [00:00:02] 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 that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] 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 owner’s or executive’s 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 when you might need help along the way.

Mike Blake: [00:00:39] My name is Mike Blake, and I’m your host for today’s program. I also touch my face, at least, 35 times a day. I’m a Director at Brady Ware & Company, a full-service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; and Richmond, Indiana; and Alpharetta, Georgia, which is where we recording today. Brady Ware is sponsoring this podcast. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:07] So, we’re talking about a subject that I’m a big fan of. And I’m a big fan of it because I think it’s extremely important, and nobody talks about it. And that is whether you should buy a business. And I say nobody talks about it because I’m in the transactional world, and I do my fair share of M&A, thankfully. And one thing that I’ve noticed is that there are plenty of seminars around that will talk about how you should sell your business and why. And there’s some that will even talk to you about succession planning, how do you transition at your business to a succeeding generation?

Mike Blake: [00:01:54] And I think those two subjects get covered a lot, quite frankly, because I think that’s where the most money is made. There’s a lot of money to be made, certainly, anytime a business sells, or brokerage fees, or legal fees, or accounting fees are, I don’t know, after deal dinner fees. There’s a lot of money on the move that occurs and is set in motion because a business is going to be sold. And that’s usually initiated by the seller. Not always, but usually. And to a lesser extent, that is true for businesses that are in succession. There’s a whole industry now around succession planning. There are organizations that offer some form of accreditation or some source of letters after your name because you’re a really awesome succession planner.

Mike Blake: [00:02:41] But buying a business, it’s really crickets. And even to the point where it’s actually hard to find an investment bank that wants to take on what we call buy side transaction. They don’t want to work for buyers because the perception is that buyers have less of a motivation to buy a business than a seller has to sell a business. And therefore, if you’re working on contingency, it’s a less reliable source of income. But buying a business, I would argue, is just as hard, if not harder than selling a business because the burden of information is on the buyer and it’s going to be in the asset that you buy.

Mike Blake: [00:02:41] So, Warren Buffett is famous for saying that “Price is what you pay. Value is what you get.” And if you do things right, you hope that value is, at least, equal to or maybe greater than the price. But the seller walks away with money, and they know what money is worth. But the buyer, they may not understand exactly what they’ve bought for a year or two or more after they’ve bought the business. And so, this is a rich topic for discussion. This can be one of these things. I may ask our guest to come back for a second part because I can just see right now that we’re going to cover a lot of ground and leave ground uncovered.

Mike Blake: [00:04:11] So, with that having been said, I would like to introduce you to my friend Ray Padron, who is Chief Executive Officer of Brightworth, a boutique private wealth management firm headquartered in Atlanta. Founded in 1997, they empower their clients to focus on what matters most. They do that by helping their clients build, preserve and make an impact on their wealth. Today, Brightworth has over 1400 individuals and families across the US, whom they helped build, preserve and be generous with their wealth, which is currently, according to their website, about $4 billion under management, letting them spend more time on the things that truly matter to them.

Mike Blake: [00:04:48] From the beginning, Brightworth built their firm to align their interests with those their clients that they’re always on the same side of the table with those they serve. A critical way in which they accomplish this is by being fee-only, selling no proprietary products and refusing to let compensation influence the guidance Brightworth provides to its clients. That’s important. Fee-based advisors are hard to find. Fee-based advisors who are good are very hard to find. That is not a usual model. So, pay attention to that.

Mike Blake: [00:05:16] They’re a team of over 50 professionals in Atlanta and Charlotte who are dedicated to providing independent and objective advice, taking care of their clients in the same manner they would want their own parents taken care of provide. By providing outstanding depth of expertise, the uniquely personal approach, they continue to create lasting relationships with clients to help build their financial future with confidence. Ray Padron, thank you for coming on the program.

Ray Padron: [00:05:40] Mike, it is a pleasure to be here. I’m glad you and I are getting to spend time together.

Mike Blake: [00:05:45] So, you’re now CEO and grand poobah of Brightworth. I know you’re a co-founder, but have you always been the CEO?

Ray Padron: [00:05:54] No. Actually, I took over the CEO position in 2014.

Mike Blake: [00:05:59] And in that time, how many acquisitions have you led Brightworth either through or maybe better yet into?

Ray Padron: [00:06:06] Sure. We actually have done three. And it was a very fortuitous. We had a chance to do a very small transaction first, which helped us sort of learn the ropes of integrating an individual practice into our firm. Then, the next transaction, which was probably within 12-18 months of that, it was sort of a team that was rolling out of another firm, they wanted to leave, and we brought them into our firm. A little more complicated. There was a lot more client work to do, paperwork, more conversations with the exiting that was taking place, et cetera. And then, there was a very large transaction we did, which doubled the size of the firm in 2017.

Mike Blake: [00:06:49] So, I’d like to talk about that one because it was clearly so material and so important. Why did you want to make that big an acquisition? Were you nervous about making that big an acquisition?

Ray Padron: [00:07:02] Right. Two questions. Yes, we were nervous, but the big reason for doing the acquisition was we decided we needed to actually have a a non-organic growth strategy. We’re in an industry, the wealth management industry is not actually that old, particularly the fee-only practice. So, when you look at what’s happening in our industry, there is issues around succession planning. We have literally hundreds, if not thousands of firms that are struggling with their own succession plans. All the first-generation owners who’ve created this business now were in what we would call a succession trap. They can’t sell their practice or their businesses to the next generation. It’s too late. It’s worth too much. And what’s happening is there’s this huge amount of consolidation that’s actually taking place because they have to do something.

Ray Padron: [00:07:54] At the same time, we’ve got private equity firms that are in large banks like Goldman Sachs that are buying up RIAs because they’re seeing changes in their own industry. So, there’s a lot taking place because the industry’s matured to the place it is. So, our choices are stick with organic growth or to do things that put us in the better position for the future. The future of this industry, there’ll be a handful of national firms. There’ll also be maybe 5 to 10 regional firms. And our decision six years ago was we want to be a regional firm. Let’s work towards that. And then, we can go from there. So, from a strategic standpoint, we needed to to do something and we needed to learn our way there. So, that’s pretty much the motivation for why we wanted to do an organic growth.

Mike Blake: [00:08:45] So, I like that distinction. That’s important kind of vocabulary point, organic growth versus inorganic. For our listeners who may not necessarily know that, organic growth simply means growth that you drive on your own by either expanding revenue from existing clients or adding new clients to your portfolio.

Ray Padron: [00:09:02] Exactly.

Mike Blake: [00:09:03] Right? So, I infer something. I wanna clarify. I wanna make sure I’m not assuming, but I infer from what you just said that you had a concern that if you did not acquire to become larger, you are at risk of potentially being acquired and maybe not under the best circumstances that you would like.

Ray Padron: [00:09:26] Sure. That’s exactly right. We actually had made the decision to work on our own succession plan 13 years ago. I was only 50 years old at the time. I was the oldest partner. So, we started our transition and our strategy for our own internal succession plan well in advance. We’re now at a point where the next generation, and we’re almost into third generation owners, own more of the firm than the original founders do. In fact, two of the founders are already gone. And the other two, myself included, will probably be gone in the next five to seven years. So, we’ve taken care of our part. Now, the question is, what do we want to become? And with all the consolidation taking place, it really is we wanted to be the masters of our own destiny. We’ve sold all our own succession plan. We should be able to survive all the changes that are taking place in the industry.

Mike Blake: [00:10:18] So, this big acquisition that you did in 2017, it’s hard to imagine. It’s three years ago now. How long did that take?

Ray Padron: [00:10:27] Longer than I anticipated. There was a really interesting process. We actually had met several years before that. They were interested in their own succession plan, wanted to meet with us to understand how we had done ours, and approached one private equity firm, in particular, to help them do that. After, I think, working with them for 18 months realized there wasn’t enough time, and they came back to us and said, “Would you be interested? We really like you. Why not consolidate the two firms?” And that was a great opportunity for us.

Mike Blake: [00:11:04] So, you said that the acquisition took longer than than expected. What knock-on effects did that have on other aspects of your business or maybe the acquisition itself? How did that change the tenor?

Ray Padron: [00:11:19] Sure. And I didn’t really s answer the last question well in a sense of why did it take so long. But there are a couple of things that had to take place. You have this whole LOI, which is our first time we actually did something as formal as sending out an LOI. You start doing some due diligence, and you realize, “You know what? The way we structured the LOI, some of the provisions really did need to change.” And one of those was there was a follow-on transaction that we felt was really important. There were two parts to the transaction. There was the investment, the registered investment advisor. And then, there was a planning firm. And there was issues with the planning firm. We realized we needed more than just a — what would you call it? An option. We needed an actual drop-dead date where we would actually be able to do something.

Ray Padron: [00:12:09] So, anyways, that process required us to sort of renegotiate from the LOI a different transaction. And that really is the reason why it stretched out. The cascading consequences of that are both positive in a sense for us and negative. The negatives, as I’m sure everybody can imagine, the longer you take, it’s like a death march. The more time people have to think of things, they want answers that I’m trying to explain to them, we’re going to answer those things on the other side of the transaction. So, where there are blanks in in people’s minds, they filled it with usually negative things. So, it’s this constant grind of trying to solve things and ghosts, I call it, that they think exist that just aren’t there. So, those are the negative things. The positive things where the firm actually grew during all that time, the firm we were buying. So, our initial upfront cost relative to the revenue we’re buying ended up becoming much lower.

Mike Blake: [00:13:10] Now, that’s interesting. And that speaks to the fact that on the sell side, they ran their process well because the more frequent outcome you see as that the firm stagnates or even declines in the sale process because selling a firm, and as I think you discover, buying a firm becomes a full-time job in and of itself. And so, frequently, the very asset you’re targeting can be neglected. If it’s not run well, if it hasn’t scaled well, it’s not as valuable an asset at the end of the process as it was when you started, but you encountered the reverse phenomenon.

Ray Padron: [00:13:42] Yeah. Good point.

Mike Blake: [00:13:43] And that must have given you, then, a lot of confidence. You found the right partner. You are doing the right thing.

Ray Padron: [00:13:48] Yeah, they’re a very focused business. They’re focused on the dental industry. So, they were able to continue to—what’s the word? Kind of run their flywheel. And they have this great marketing engine, which is one of the things that absolutely attracted us to the acquisition. And that marketing engine just kept working.

Mike Blake: [00:14:08] So, actually, I want to I want to touch on that ’cause something you led off with and now are coming back to, I think, is a very important instructive point, which is you didn’t buy a business for the hell of it. You bought a business because you had a specific objective that you wanted to meet with buying one or more businesses, right?

Ray Padron: [00:14:30] Correct.

Mike Blake: [00:14:30] And presumably then, you are prepared and perhaps did walk away from potential targets that we’re not going to help you meet that objective.

Ray Padron: [00:14:38] Correct.

Mike Blake: [00:14:38] Right? So, a there’s a deliberate process. And I think that’s important because— actually, what I’m going to back out, I’m assuming some of that may not be true. Do you, on occasion, receive unsolicited offers? Some firms or brokers say, “Hey, this this thing’s available. Would you like to buy it?”

Ray Padron: [00:14:54] Absolutely.

Mike Blake: [00:14:55] And most the time you say?

Ray Padron: [00:14:57] No.

Mike Blake: [00:14:57] Why?

Ray Padron: [00:14:58] Well, there’s some very specific things that we’re looking for. One is we love the idea of there being a succession trap because, usually, that means we can get this at a decent price. But there has got to be a whole host of things that have to be behind that to make it work. You got to have talent. There’s got to be a set of hungry next generation people who’ve been waiting for something to happen, so they can take over this business. I can’t just ask somebody from Atlanta to move up to Charlotte to run the firm.

Ray Padron: [00:15:31] So, we were looking for several things. One is a strategic location. If I get an offer to buy a firm in some small town in Alabama, I’m not interested in that. So, Charlotte was a strategic location. You’re looking for a strategic talent –  the credible talent and group of next-generation people that were ready to take over the business. And then, I’m trying to think of what the third thing was. Oh, a strategic market. So, our Atlanta business is very focused on corporate executives and professionals, as well as with business owners. Having a business up in Charlotte that’s entirely focused on the dental industry nationwide was a really cool and very unusual. You, usually, don’t see that in our industry.

Mike Blake: [00:16:13] And we had another guest on, Rod Burkert, who talked about the need to specialize. This is not really in our script, but I sort of have to ask you, do you feel that specialization has been a benefit?

Ray Padron: [00:16:24] Absolutely. People want to work with people who know their business and the phase of life that they’re in.

Mike Blake: [00:16:32] Yeah. And I think clients appreciate not having to educate their advisors-.

Ray Padron: [00:16:39] Absolutely.

Mike Blake: [00:16:39] … about their business. And being a generalist, it’s hard to sort of defend to a client that says, “Hey, should I get somebody that’s done one of these before or not?” No, you don’t need someone who’s done one of these before. Your business is any old business.

Ray Padron: [00:16:58] Right, exactly.

Mike Blake: [00:16:58] I’ve never been able to really figure how to carry that conversation and not sound dumb doing it. If there’s a way, please send something into info@decisionvision.com, whatever the hell our email is. Help me figure out how to do that.

Ray Padron: [00:17:11] Really.

Mike Blake: [00:17:14] So, this opportunity came about because you had some kind of relationship, and there was sort of a slow-burn conversation. Let’s just sort of dip your toe in, and I think sort of gradually weighed in. Is that fair?

Ray Padron: [00:17:25] Yeah, that’s fair statement.

Mike Blake: [00:17:27] So, at some point, you then flipped the switch from conversation to real negotiation discussion. You touched on this before, but I want to really dive into this. What was your due diligence process like?

Ray Padron: [00:17:40] So, the due diligence process actually went incredibly well. There are several reasons. The individuals we were dealing with, some of them actually were attorneys. And so, they had a really good understanding of some of the things we were going to be asking for. We also had a private equity firm, our financing arm, if I may, that was helping us do the acquisition, had done literally dozens and dozens of these in this space. So, we really knew exactly sort of what to ask for, and how to build out the data room, and et cetera. So, that process actually went really well and smoothly. We have a full-time compliance officer who knows exactly, again, what we need to be doing and looking for. So, it was a pretty smooth process. It didn’t take very long.

Mike Blake: [00:18:27] How long did it take? Do you recall?

Ray Padron: [00:18:29] It’s about 30 to 45 days.

Mike Blake: [00:18:31] Okay. That’s a well-run due diligence process, which I’m sure your buyer— I’m sorry, your seller appreciated.

Ray Padron: [00:18:37] Yeah, it was.

Mike Blake: [00:18:38] Because a seller, when I advise sellers, I tell them to be prepared for a 90-day, sometimes even 120-day due diligence. And that gets them to the death march things you talk about.

Ray Padron: [00:18:48] Exactly.

Mike Blake: [00:18:48] Everybody’s happy and cheerful for the first two weeks of questions. And then, after that, it’s, “Oh, God. I got to do this again,” right?

Ray Padron: [00:18:55] Yeah, yeah.

Mike Blake: [00:18:56] I can’t imagine what it’s like by day 100. You just want to chuck everything and say, “You know what, I’m just gonna sell this to the government.”

Ray Padron: [00:19:03] It’s funny, and I mentioned it earlier, there were these two parts – the getting the RIA part in the due diligence done. Really, we had that done all in 90 days, including the purchase agreement. It was renegotiating the aspect of the LOI that required the acquisition of the other part that took us another 12 months. It was that, which where we had the death march.

Mike Blake: [00:19:26] Now, what’s interesting in the due diligence too is that in your world, you’re a highly regulated industry.

Ray Padron: [00:19:26] Very, very very.

Mike Blake: [00:19:36] And one in which potential liability and, frankly, disaster is lurking around every corner. And as you said, you have a compliance officer, all RAs either have an internal or outsource compliance officer. You pretty much have to, I think.

Ray Padron: [00:19:51] Absolutely.

Mike Blake: [00:19:55] How afraid were you, concerned were you about finding that or maybe not finding that gremlin under the rug that, all of a sudden, now, it becomes your responsibility? How big a concern is that in your industry?

Ray Padron: [00:20:13] It’s a big concern. Obviously, there’s two things that you do. Well, or maybe three things that you’re doing that kind of help mitigate a lot of that. Obviously, we did an asset purchase. We weren’t buying the stock of the company. So, there’s sort of step one.

Mike Blake: [00:20:28] So, that gives you some level of protection.

Ray Padron: [00:20:30] They actually have compliance files, which they have to have. And if they’ve been recently audited, they’re probably very up to date. So, that gives you another layer of comfort. You’re going to do an audit of their CRM. Well-run firms got every client conversation or every issue sitting in CRM. So, you’re going to do a set of tests through their CRM for, particularly, their larger clients where there might be larger financial exposure. In this case, the firm that we purchased did have one issue with a client. It was disclosed to us right upfront. It wasn’t a big deal. Clients get upset sometimes.

Ray Padron: [00:21:08] And then, the last thing is the clients are required to sign a consent on the transaction. So, we can’t just buy a firm and then the clients go, “Wait a minute” all of a sudden, “Who’s Brightworth?” So, there’s this whole communication process. And the clients actually consent to the transaction. So, there’s another set of affirmations that there’s no problems lurking out there or if they are, they’re going to make a decision not to come.

Mike Blake: [00:21:32] So, that’s interesting. I think I kind of knew that but hadn’t really internalized it. Is a client consent such that they consent to be transitioned over or could a client potentially even hold a transaction?

Ray Padron: [00:21:46] They can’t hold a transaction, but what they can do is isolate what issues are. And effectively, then, they would not sort of consent to moving over, and they can no longer be a client.

Mike Blake: [00:21:57] They can opt out basically.

Ray Padron: [00:21:58] And then, it changes the math of the transaction.

Mike Blake: [00:22:01] Now, I wonder, the way you kind of work through this due diligence process and compliance, I guess I wonder if in a way it’s easier because you can kind of look up with FINRA what kind of actions have been taken, if any sensors, anything like that, that’s gonna be a matter of public record.

Ray Padron: [00:22:18] Exactly. And that’s not just at the firm level but also at each advisor level.

Mike Blake: [00:22:23] Okay.

Ray Padron: [00:22:23] Right. If there’s an action against a specific advisor that maybe they even hired after that issue came up, it’s all gonna be out in the disclosure systems that we check.

Mike Blake: [00:22:34] So, that’s a luxury relative to a lot of other industries-

Ray Padron: [00:22:38] Absolutely.

Mike Blake: [00:22:39] … that the skeletons, they can’t be in a closet or it’s a very easy closet to open.

Ray Padron: [00:22:44] Exactly.

Mike Blake: [00:22:47] So, you’re working through a due diligence process. At what point does your conversation talk turned to pricing terms?

Ray Padron: [00:22:56] Most of the pricing terms were worked out upfront and were in the LOI. We structured it that way. We are basically saying, “We’re going to purchase your revenue at X. And we’ve built out an earn out of whatever, over a five-year period.” And so, most of the pricing was already determined.

Mike Blake: [00:23:14] And how difficult was that? Was there a lot of back and forth? Or did you and the seller find that you had kind of a similar mindset?

Ray Padron: [00:23:22] In this case, it was very similar mindset.

Mike Blake: [00:23:25] In other cases. were there not? Are there cases where you found that a show stopper?

Ray Padron: [00:23:30] No. In the other ones, it was less of an issue because there was much smaller transactions and the multiples were just one time; where this was an earn-out calculation. So, it gets a little bit more complicated. And when you have market volatility like we do today, yesterday anyways, it becomes a much more complex conversation.

Mike Blake: [00:23:51] So, did you do this transaction yourself or did you have a team of advisors helping you with us?

Ray Padron: [00:23:57] Great question. Probably one of my— I call it both a strength and a fault was this one transaction, in particular, I did most of the work from a Brightworth perspective. Now, the good news is I had a private equity firm that specializes in this. So, they were a big part of helping keep things on track, make sure our thinking was clear, and moving the transaction forward.

Mike Blake: [00:24:23] You said you had a private equity firm. In what way? What? How are they involved? Were they a client that’s just sort of helped you along the way or professional contact?

Ray Padron: [00:24:30] No. They’re actually an investor in the transaction. So, it’s a-

Mike Blake: [00:24:33] Oh, I see. Okay.

Ray Padron: [00:24:34] Yeah. They’re just partly a Brightworth private equity purchase of the business.

Mike Blake: [00:24:39] Got it. Okay. So, I didn’t know that out of the transaction. So, it sounds like, I would think initially, my first reaction would be having another seat at the table would make the transaction more complicated, but it sounds like in your case, it also made it easier.

Ray Padron: [00:25:01] Yeah, it absolutely did make it more complicated. Quick funny story. My wife and I have a place in Florida condo. One day where I was working, negotiating with and against the private equity firm on pricing, I was working on the transaction itself, negotiating compensation. I don’t think I got off the phone over a 10-hour period, and I’d walked over five miles just inside my home working through those kinds of issues. So, yeah, it can get really complicated.

Mike Blake: [00:25:36] Now, a lot of people talked about the importance of culture. I’ve known you long enough to know, you are a big culture guy.

Ray Padron: [00:25:44] I am.

Mike Blake: [00:25:44] This is not something that’s just a Harvard Business Review article that you read. This is something that is critical to you. It’s part of who you are and what’s made you successful.

Ray Padron: [00:25:54] Thank you.

Mike Blake: [00:25:54] You are acquiring a large firm. How did you explore culture and get comfortable that an acquisition of that magnitude wasn’t going to blow up what you’d spent the prior 20 years building?

Ray Padron: [00:26:09] Yeah, great question. And probably the biggest concern that you have with your own team when you’re proposing this to your own management committee and your partners, in this case, it was really kind of an interesting process. Step one, and I do this as I’m looking at firms that are out there that I would call targets, they’re what I’d call stealth targets. I’m not using their name. Nobody else in the firm knows. But I actually go to their website, and I’ll sit there and look at the bios of what I would call the next-gen leaders or the senior team that we would probably be buying out. And in this case, when I looked at their website, it was, “Wow! I could take that that bio and that person, lift it out, I could set it right in the Brightworth, and you would know the difference. They’d look and feel just like a Brightworth advisor.” That’s not culture, but it is a big step. You see the things that they’ve done. You see what their hobbies are. You see what’s important to them, their certifications, et cetera. They were definitely felt like Brightworth.

Ray Padron: [00:26:09] The next thing is you’ve got to talk about how they make decisions. How do they govern themselves? That’ll tell you a lot about the leadership. Is it a top-down kind of thing? Is it consensus building? And then, the other part is you actually go in there and you show them, “Here’s how we run our firm. Here’s what we expect from ourselves as human beings working together to get things done for our clients. We want to look as healthy on the inside as we look to our clients on the outside.” And the other thing is you spend time with them. We encourage to do assessments if we can get them to do there. Step one is I share mine, “Here’s my assessments. I want you to see what my profile looks like.” The fact I’m a take charge person and I tend to be a bit spontaneous, et cetera. Those are the things I want them to know about. So, I open the firm up to them. And at the same time, hopefully, allow them to be and feel more open to us. And we kind of learn our way there.

Mike Blake: [00:28:15] I’m glad you say that one. When my firm was acquired by Brady Ware two and a half years ago, I volunteered my profiles because I wanted them to know what they are getting into, and I wanted them to self-select out. And my profile basically says that I am a raving lunatic that is always pushing the edge of stuff, that is a creative type, that doesn’t follow rules, that doesn’t pay attention to administrative detail and doesn’t acknowledge that they’re even important. And basically says that you’re retaining an anarchist.

Ray Padron: [00:28:51] Right.

Mike Blake: [00:28:52] Right? And I thought it was important that they sort of understood what they’re getting into. That when I told them that, I wasn’t just being self-deprecating. I have empirical data that demonstrates that’s the kind of person that I am, so that they understood what they kind of getting into.

Ray Padron: [00:29:10] Sure.

Mike Blake: [00:29:10] And I think that’s why our relationship has, although it’s had some bumps, I’ve only threatened to burn the building down twice, it’s had its bumps along the way, I think it survived because we also realized a culture is going to be a threat. And even as one person who was a loud mouth going into 160-person firm can be just as disruptive to culture if you don’t play it correctly-

Ray Padron: [00:29:38] Absolutely.

Mike Blake: [00:29:38] … as a large acquisition.

Ray Padron: [00:29:40] Yeah. If you think about it, you really are. The closer you can get the authenticity or in transparency is the sooner you can get to a win/win. They don’t want to buy trouble, and you don’t want to inherit trouble. And the best thing you can do is lay it out there, and just be clear on what life forward is going to be like.

Mike Blake: [00:29:59] And you don’t want to walk into trouble either.

Ray Padron: [00:30:01] Exactly. The other thing, and I did mention this, that you should look for, and that is turnover. Go back through the last five years and see how much turnover did the firm actually have.

Mike Blake: [00:30:12] And you’re an industry that has some turnover.

Ray Padron: [00:30:14] It really does. In large part because the way these businesses have been built, they tend to be very siloed. Everything’s concentrated at the top. And you have all these young advisors coming up through the ranks who are looking for opportunity. If you don’t bring that to them, which includes ownership, something we solved at Brightworth a long time ago, they get frustrated and leave. And we earn in talent race in our business.

Mike Blake: [00:30:37] Yeah. So, you’re the chief executive officer, but I don’t think you’re a dictator. You didn’t come in wearing a sash or a big hat and frilly shoulder pads or anything like that. So, how did you get your other partners on board? How involved were they? And how did you manage the— I don’t want to say politics. That’s not the right word. But how do you manage the relationship and communication, so that they would be inclined to be a constructive force in the transaction?

Ray Padron: [00:31:11] Sure. Great question. And there’s sort of several parts to this one too. There’s the management committee and the partners. And then, there’s the entire Brightworth team sitting in in Atlanta. So, one of the things we already had was what were our critical success factors in our mergers and acquisitions strategy that we were looking for? Check the boxes, strategic location, strategic talent, a focus in a niche market. Check, check, check. So, all of the basic things were covered.

Ray Padron: [00:31:43] The other part to this is that you have to realize that there’s sort of a— I call it there’s two kinds of people. At Brightworth, I saw two kinds of people. There’s always the wow group, which is, “Wow, this could be amazing and great.” They see the check next to the critical success factors. And then, there’s the other group, which is, “How in the world are we going to pull this off?” And you really have to take your time with the hows because they’re going to have a billion questions sitting in their head about, “How is that going to work from a compliance? How is that going to work from an investment standpoint? How are you going to integrate all this?” There’s all these millions of questions. And I’m an influencer. I am a very positive person. And at the same time, I have to be patient. You’ve got to bring them along. You’ve got to give them the time to process these things. And partly, you’ve also got to say, “Well, you’ve got to have a little bit of faith here.”

Ray Padron: [00:32:39] I had a great question at a staff meeting when I announced that we were pursuing this large acquisition. A gentleman in the group, he was one of our planners, said, “What makes us think we can pull this off? Like, what makes you think we can actually do this?” And the fact of the matter is I didn’t know we could do this. I can’t prove to them that we can do this. But I looked around the room, I said, “Look, we’re one of the few firms who’ve invested a lot in our next-generation leaders. They’ve done an amazing job over the last 10 years of moving from where they were to where we are now. We’re at the right place in our maturing as a company to go find out. I don’t know if we’re riding a 5-speed bike, a 10-speed bike, or an 18-speed bike. But the only way we’re gonna find out is to attack the hill, and let’s go see.” And that really won a lot of people over.

Mike Blake: [00:33:30] Interesting that you bring up, and not just bring up but that you involved your employees. I think that’s an unusual step to take. I think when most executives pursue a material transaction, buy or sell side, they try to keep that a very closed discussion with a very tight inner circle, I think, primarily, because they’re afraid of causing fear and uncertainty.

Ray Padron: [00:33:58] Sure.

Mike Blake: [00:33:58] Right? Although, I think that tends to backfire. We’re kind of seeing now with the coronavirus thing, the more that you try to cover up, all that does, it makes people’s imaginations become more active.

Ray Padron: [00:34:12] Yep.

Mike Blake: [00:34:12] Right? So, it hurts in the long run. But also, what you did is that you made yourself subject to scrutiny. You  put yourself in a position of a public forum where one of of your planners said, “Basically, what makes you so great? Who do you think you are that we can pull off this really successful thing?” and gave you the opportunity to put you in the position of being vulnerable and saying, “Well, I don’t know. But here’s what my faith is based on.”

Ray Padron: [00:34:41] Yeah, exactly.

Mike Blake: [00:34:43] But not all leaders appreciate being questioned right by the “rank and file” of the organization.

Ray Padron: [00:34:50] Sure. Just from a personal philosophical standpoint, I have found that the benefits of having the open conversation and the challenge outweigh the other way, which is don’t tell them anything. And we actually used to have that culture of telling these people very little. I want to have the questions in advance on a card. And that’s just not my style.

Mike Blake: [00:35:18] Well, I think you get buy-in. We just recorded a podcast with another individual talking about CPA firm relationships, and what he said was that the most disruptive thing to a CPA relationship is a surprise, a material surprise. Very few things are more surprising than an e-mail at 8:30 in the morning on a Monday saying, “Hey, we just acquired a firm equal our size in Charlotte. More to come.”

Ray Padron: [00:35:46] Right. Yeah, exactly.

Mike Blake: [00:35:48] Is that really helping you retain people? And B-.

Ray Padron: [00:35:52] No.

Mike Blake: [00:35:52] And [B], have people be more comfortable with the transaction than if you’ve kind of at least said some information along the line?

Ray Padron: [00:35:59] Exactly. Exactly.

Mike Blake: [00:36:02] So, you made this acquisition in ’17. You’ve had a few years to step back. How has it change your firm?

Ray Padron: [00:36:09] Okay We have not stepped back. That’s the funny part.

Mike Blake: [00:36:12] Okay.

Ray Padron: [00:36:12] All the work starts. You get that signature, you cut a check, and now you’ve got a lot of work to do. And we went from, like I said, with effectively, what were we? We were about 25 people. They were 16. We’re now 80 people. It was a big giant step for our firm. So, we had an awful lot of infrastructure we needed to build out while we were integrating. So, at the time that we did the acquisition, I was effectively CEO, CFO and COO. Well, that couldn’t last very long. So, over the last two years, we’ve spent time building out the infrastructure. We now have a chief operating officer, a chief financial officer, people officer. I’m trying to think what else, but we’ve built in the matrix management between the two offices, so that it’s really clear where all the planners actually report to. And it’s taken an awful lot of time and effort.

Ray Padron: [00:37:13] We’ve answered all the questions that I tried to push off until the other side of that the transaction, and that’s worked out really well. We follow through with our promise, which was we told them, “Look, we realized you’re the same size as us pretty much.” We had more infrastructure built out than they did, but we told them, “We will figure this out together.” I’m sure that was a Jimmy Carter ‘Please trust me” kind of a comment but we follow through. We said, “Look, okay, let’s go sit down. Let’s start talking about CRM. Let’s talk about our trading software. Let’s talk about where trading should take place.” And we’ve worked through all those things together.

Ray Padron: [00:37:51] Now, that’s going to be a lot harder on the next one because we’ve made a lot of decisions about how we’re going to organize ourselves, et cetera. So, the next one won’t be as— what’s the word? Together, if I may. It’s going to be-.

Mike Blake: [00:38:03] Quite as collaborative.

Ray Padron: [00:38:06] Thank you. We’ll be quite as collaborative. It’s got to be more our way than the highway or whatever, but we’ll still take the best. Like if we find another firm that’s of substantial size, and they’re doing something we really like, I think the pain of change now is going to be way better than just trying to force people into a system that’s not as good. So, we’ll make changes. It just won’t be as many changes as we’ve done this time.

Mike Blake: [00:38:34] So, you sound like you’re happy with the results of the acquisition.

Ray Padron: [00:38:37] Yeah. Great team. I love our partners. I can’t tell you how many times they’ve come up to me and said, “Man, we are so glad that we’re part of Brightworth now.” And from that standpoint, people’s standpoint, I could not ask for a better decision. Their firm, if I may, their part has grown by leaps and bounds. And so, everything’s working out. But it’s, again, really hard work. There are periods of time where they probably feel like, “We’re starting to feel like the stepchild,” and it means I’m not spending enough time up there or we’re not putting the right resources there. And we’re working through how to do all of that.

Ray Padron: [00:38:37] Our decision making around hiring, for example, is a little bit more driven around real calculations of what capacity is across the organization. Theirs was a little more by the— I’m not going to use the word seat of the pants, but hey, we’re feeling really busy. I think we need to hire somebody. So, now, we’re bringing structure around all that. They’re not used to that. And we’re learning a lot of things from them. So, it’s been a lot of, I would say, really a win/win from that standpoint.

Mike Blake: [00:39:43] Are you finding that your offices still have slightly different cultures? And maybe that’s a good thing.

Ray Padron: [00:39:49] Sure. And part of that is their service model is a little different. It needs to be. We’re very, obviously, Atlanta-centric. We, obviously, have clients all over the country. Those larger clients, we go fly to. And the Atlanta clients, they just kind of drive to the office. Well, their space, the dentists are all over the country. They actually have the dentists fly into Charlotte. So, the dentist will come in, come to the building. It’s almost like a Mayo Clinic structure. They’ll meet with the attorney. They meet with the transition’s person, the TPA, the CPA, and they meet with us. So, there are some cultural differences but we really are merging the cultures, and that’s working really well. We have very defined sort of terms and accountability around our culture. So, there are a lot of things and behaviors we don’t tolerate, and we’d make sure we jump on those. So, we’re seeing it really come together.

Mike Blake: [00:40:43] I don’t know if this is either here or there but I feel compelled to add in. Microphone’s turned on, so I’m just going to say it. But we were the result of the acquisition of Brady Ware and several firms, including two in the Atlanta area that became the Atlanta office. And our Atlanta office does have a different culture, I think, than the rest of the firm. And I think that’s a good thing. It’s a good thing for me because I do believe that our office is a little bit more entrepreneurial. We do feel like we’re kind of the rebels a little bit, and we’re not afraid to kind of do skunkworks kind of stuff and put things in place that we know are going to hurt the rest of the firm, but we just don’t feel like we got to wait for everybody to catch up to realize how brilliant we are and that we’re right. And we think that if we set a good enough example, the rest of firm will come along.

Ray Padron: [00:41:35] Sure.

Mike Blake: [00:41:36] Personally, our headquarters are in Dayton, Ohio. I don’t know that I would thrive in our headquarter office because it is the central office. It is the core of the firm. They are accountants. There’s nothing wrong with accountants. I worked for an accounting firm but it’s much more of a by-the-numbers kind of place.

Ray Padron: [00:42:00] Sure.

Mike Blake: [00:42:00] And so, personally speaking, having another location of the firm that is willing to be a little bit different where I can be a better fit, for me, has been a huge benefit. And I actually think it benefits our firm.

Ray Padron: [00:42:15] Sure. And I think that’s a really good thing. And I would think every organization, and this is even true around operational issues, which is what are things that have to be absolute, and what are the things where we have some flexibility around? And part of that is also culture and how people operate. But there are also some boundaries where things are just plain not acceptable. And we think those boundaries are really also important to enforce and make sure that there are no exceptions, particularly at the partner level. If we let the partners live in the exception area, the staff will never follow. So, they have to see that at the partner level. And we’ve actually had issues around that, and we’ve dealt with them. And that really speaks volumes to the team.

Mike Blake: [00:43:03] So, you’ve been through a couple of these. And thank you again so much for spending all this time with us and sharing your experience. If someone listening is thinking about buying a company, if we can distill down to a couple of pieces of advice, couple of bullet points, can you do that? Or are there a couple of pieces of advice you’d just give blanket thinking about buying a business, what do you need to think about?

Ray Padron: [00:43:26] Couple of things. One is we talked about it, it’s the death march. So, it’s almost like preparing for a marathon. You have to mentally say, “Okay. I may get this done in six months, but it also may take a really long time.” And just prepare yourself, which also means linked to neglect. So, you have to prepare. Also, know your team. Who are you going to draw into the process and when? And sort of understand how they’re built, right. Are they a wild type of a person or are they going to be a how type of a person? Knowing that it’s good to have those people were always asking how because they’re the ones you’re going to help you with the due diligence and really ask a lot of good questions. So, know your team, expect a long march.

Ray Padron: [00:44:07] One of the things that really was hard for me was realizing that everything matters to somebody. And I have to realize that, “Even though it may not matter to me, like, yeah, that’s just not an important deal point. Why are we bothering with that?” it matters to somebody in the firm. So, you have to take the time to address it and address it well. So, in a sense, details matter. Everything matters.

Ray Padron: [00:44:31] Know your boundaries. I work a couple of times where I got hooked on some policy that they had that they wanted to keep, and it was an absolute no for Brightworth. But when I really looked at it, it was just not a big deal. And I let it bother me. And I was really ready to just say the heck with it and walk away when the PE firm or our attorney would step in and go, “Ray, it’s just not that big a deal. It’s just small potatoes. We’re talking billions of dollars of assets to manage. Who cares whether you’re going to charge your parents or not for the services you’re doing,” that kind of stuff.

Mike Blake: [00:45:08] You want to charge a $5 million fine for a 50 cent crime.

Ray Padron: [00:45:10] Yeah, right. And then, the other thing is when you’re doing the LOI, again, it was my first time, there’s just an awful lot of cascading consequences of anything that’s in there and you need to think ahead. Like what are the cascading consequences of putting this specific thing in your LOI? I found myself having to cover a lot of areas that I didn’t think about because you’re sort of sold that the LOI is just this general document, you want to put too much detail in it, but sometimes you do. You really want to think ahead. Those are my suggestions.

Mike Blake: [00:45:47] I’m going to use that quote. I may even make it my quote of the day that I do on LinkedIn, “Everything matters to somebody.” That-.

Ray Padron: [00:45:53] Really do.

Mike Blake: [00:45:53] That is profound and insightful.

Ray Padron: [00:45:56] Thank you.

Mike Blake: [00:45:56] At least, to me, it is. I think, to other people, it will be as well. If somebody wants to ask a question about how to buy a business, as somebody who has been through the wars before, can they contact you?

Ray Padron: [00:46:05] Absolutely.

Mike Blake: [00:46:06] How do they do that?

Ray Padron: [00:46:07] Well, there’s always the website. My my email address is ray.padron@brightworth.com. And you can always call our phone number, which is 404-760-9000.

Mike Blake: [00:46:20] That’s going to wrap it up for today’s program. I’d like to thank Ray Padron so much for chair for joining us and sharing his expertise with us today. We’ll be exploring a new topic each week, so please tune so that when you’re faced with your next executive decision, you have clear vision when making it. If you enjoy this podcast, 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’s Brady Ware & company. And I’ve just touched my face three more times. And this has been the Decision Vision Podcast.

Tagged With: acquisition, Brady Ware, Brady Ware & Company, Brightworth, buy a business, buying a business, Decision Vision, Decision Vision podcast, due diligence, management succession, merger, Michael Blake, Mike Blake, private wealth management, Ray Padron, succession

Decision Vision Episode 55: Should I Change My Customer Profile? – An Interview with Andy Goldstrom, Midcourse Advisors

March 12, 2020 by John Ray

should I change my customer profile
Decision Vision
Decision Vision Episode 55: Should I Change My Customer Profile? – An Interview with Andy Goldstrom, Midcourse Advisors
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should I change my customer profile
Mike Blake and Andy Goldstrom

Decision Vision Episode 55:  Should I Change My Customer Profile? – An Interview with Andy Goldstrom, Midcourse Advisors

Why is developing a customer profile so important? How should I develop a customer profile? Andy Goldstrom, Midcourse Advisors, answers these questions and much more when he joins host Mike Blake on this edition of “Decision Vision,” presented by Brady Ware & Company.

Andy Goldstrom, Midcourse Advisors

should I change my customer profile
Andy Goldstrom

As Managing Partner at Midcourse Advisors, Andy Goldstrom and his team grow companies profitably and do it fast. Andy is an expert with B2B companies and is a sought-after business partner and speaker.

Early in his career, Andy started and built a division of a real estate brokerage company that generated 30%+ margins and grew from 1 to over 500 employees. After that, he took over an existing national recycling company and grew the top line from $70M to $100M and profit from $10M to $17M in 3 years. Both businesses were both designated as Inc. 500 companies, the fastest growing privately help companies nationwide, and subsequently sold to Fortune 500 companies at high multiples. Most recently, he served as Global  Director at a major investment bank, where he grew service capabilities over in 70 countries while saving $12M annually.

In each case, Andy led sales teams that competed efficiently and effectively to win an extraordinary amount of business. In addition, he reduced cycle times and increased the frequency of incoming sustainable business, creating incremental value that was monetized when the companies were sold.

He started Midcourse Advisors as a way to give back to the B2B services community and now offers his knowledge and experience to organizations looking for ways to grow and improve.

For more information, go to the Midcourse Advisors website.

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 i change my customer profile“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®.

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Show Transcript

Intro: [00:00:01] 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: [00:00:20] 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 when you might need help along the way.

Mike Blake: [00:00:39] 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 sponsoring this podcast? If you like this podcast, please subscribe on your favorite podcast aggregator and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:04] So, today, we’re going to talk about whether you should change your customer profile. And I’m excited about this topic. I mentioned this topic for a number of reasons. Number one, as it happens, it’s very timely. I just came back from a strategy meeting at our global headquarters in Dayton, Ohio, where the valuation practice of Brady Ware got together and we decided, in effect, our strategy for the next five years.

Mike Blake: [00:01:36] And in the nine hours that we had that meeting, about eight of them talked about defining what our customer profile is going to be going forward. And I think that’s so critical because unless you figure out what your customer profile as all the other things that you want to talk about in terms of marketing and staffing, investment, and other strategy, none of those are going to be right unless you understand what your customer profile is going to be.

Mike Blake: [00:02:06] It’s that central, it’s that foundational to your business strategy. And therefore, you know, we decided that if that’s all we accomplish in that particular day, then that was going to be a win for us. And I’m not leading up to a big announcement or anything like that. But, you know, we will probably, in about four to six weeks, as we flesh out the strategy. But the strategy part is not time well-spent unless you’ve identified that customer.

Mike Blake: [00:02:39] The other neat part about going out to Dayton was I discovered something that I did not know because I do not pay attention to college basketball that much, now that Georgetown has somehow managed to be irrelevant in college basketball. But the Dayton Flyers, I don’t know if I ever realized it, Dayton Flyers are ranked number six or seven in the country. I have no idea. So, anyway, good for Dayton out there. And by the way, what a cool name, the Flyers.

Mike Blake: [00:03:04] Of course, with the Flyers because that’s where the Wright brothers originated, even though they did their flight in North Carolina. So, a shout out to the Dayton Flyers. We’ll be rooting for them when the tournament shows up. But, you know, the customer profile is so foundational. And, you know, when companies—every company, I don’t think there’s a company in the world that is satisfied with selling. Every company believes that it can sell better than it’s currently doing.

Mike Blake: [00:03:31] I think most companies look at revenue and sales and says, you know, look, when I wake up in the morning, that’s one of the things that I worry about. It’s one of things that I worry about going to bed the night before, too, is sales. And if you don’t have that customer profile right, everything else just doesn’t matter. And that requires, quite frankly, deep thought and requires some understanding of what that customer is going to be because you’re literally going to build everything around that.

Mike Blake: [00:04:01] And in spite of having a big powwow about this, I’m not the expert on that. But instead, we’ve brought in somebody who is an expert on this. And that’s my friend, Andy Goldstrom, who is managing partner of Midcourse Advisors. Midcourse Advisors are business strategists and growth experts for small and medium-sized service businesses. They help leaders focus on the right pursuits and execute effectively using proprietary tools and methodologies that enable them to scale their businesses and grow rapidly.

Mike Blake: [00:04:29] As managing partner of Midcourse Advisors, Andy and his team grow companies profitably and do it fast. Andy’s an expert with business-to-business companies and is a sought-after business partner and speaker. Early in his career, Andy started and built a division of a real estate brokerage company that generated over 30% margins and grew to over 500 employees from one. After that, he took over an existing national recycling company, grew the top line from $70 million to $100 million in revenue and profit from $10 to $17 million in three years.

Mike Blake: [00:05:02] Both businesses were designated as Inc. 500 companies, the fastest growing privately-held companies nationwide and subsequently sold to Fortune 500 companies at high multiples. Most recently, he served as global director at a major investment bank, where he grew service capabilities in over 70 countries while saving $12 million, annually. He started Midcourse Advisors as a way to give back to the business community and now offers his knowledge and experience to organizations looking for ways to grow and improve. Andy, thanks for coming on the program.

Andy Goldstrom: [00:05:33] Thanks so much for having me. And good to see you after we met several years back and have been in touch.

Mike Blake: [00:05:39] Yeah.

Andy Goldstrom: [00:05:39] I appreciate being on your show.

Mike Blake: [00:05:42] So, before we get started, have you just published a book or is a book about to come out?

Andy Goldstrom: [00:05:48] I have a book coming out. I’m just working on the right promotion.

Mike Blake: [00:05:53] Okay.

Andy Goldstrom: [00:05:53] I got all the content in place, but it’s got all the basics about how to grow your business lessons from an Inc. 500 person, an executive. And it has some things about customer profile in it that can be used, tools and methodologies and anecdotes and case studies and all the rest.

Mike Blake: [00:06:14] And when do you think that book will come out?

Andy Goldstrom: [00:06:16] Probably in the next 60 days.

Mike Blake: [00:06:18] Okay.

Andy Goldstrom: [00:06:18] And when we reference my website, you can see a link for it.

Mike Blake: [00:06:22] And do you know what is the title of the book? Do we know that yet?

Andy Goldstrom: [00:06:25] We’re trying to finalize that.

Mike Blake: [00:06:28] Okay.

Andy Goldstrom: [00:06:29] Yeah. Right now, it’s called the Ten Deadly Sins of Growing Your Business.

Mike Blake: [00:06:35] Oh, nice.

Andy Goldstrom: [00:06:36] Yeah. So, I’ve got 10 themes. The only thing I’m trying to struggle with and I’m getting feedback from experts is that if you Google that, you get a lot of other junk.

Mike Blake: [00:06:47] Okay. I guess that makes sense.

Andy Goldstrom: [00:06:49] Right? So, I just want it to be poignant and on point. Title is an important thing.

Mike Blake: [00:06:54] Okay.

Andy Goldstrom: [00:06:54] So-

Mike Blake: [00:06:55] Well, good luck with that.

Andy Goldstrom: [00:06:56] Thanks.

Mike Blake: [00:06:56] And make sure we know about when the book is launched, so we can publicize it.

Andy Goldstrom: [00:07:00] I will. Absolutely.

Mike Blake: [00:07:03] So, you mentioned in your book, in fact, you deliberately discuss or separately discuss customer profiles. So, let’s get the vocabulary right. What is a customer profile? Is it the same thing as what people call a customer avatar?

Andy Goldstrom: [00:07:16] Sure. The first thing I just want to do is step back. When you talk about customer profile and when you had your meetings in Dayton, you had gotten to a specific point, knowing that you were serving the customer in certain markets and you knew you were doing accounting work and valuation work and other work. So, there’s a bigger picture than just the customer profile to successfully grow a business, but the customer profile is foundational.

Andy Goldstrom: [00:07:40] So, you need to know your industry and your target market and your customer segment before you even get to your customer profile. But when you get to that point, it’s really a representation of your ideal customer and it’s defined. It’s something that allows you to target, given that you have limited resources. And the thing that happens is most companies don’t do a really good job and it inhibits them from reaching their goals, which is a credit to you and your company in terms of how much time you’re spending on the, trying to get right.

Mike Blake: [00:08:16] Well, you know, we hope we got it right. Now, we got to execute.

Andy Goldstrom: [00:08:19] Yeah.

Mike Blake: [00:08:19] So, it all looks great on the whiteboard. We’ll see how it turns out in practice, but-

Andy Goldstrom: [00:08:23] And you mentioned the avatar.

Mike Blake: [00:08:25] Yeah.

Andy Goldstrom: [00:08:26] So, an Avatar is kind of a physical representation of it. I teach at Georgia State in addition to doing my consulting and we call it a persona. And it’s a physical representation with a name to it, so you can kind of feel it and look at it. So, for instance, as an example, just if someone’s a really avid tennis player and you know that they’re going to buy premium products because they love tennis so much and they want to differentiate their game and have every advantage possible, that avatar might be Peter, the professional tennis player or something like that. So, you actually can have a physical look as an avatar in terms of what that target customer could be or what that customer profile would look like. And then, obviously, there are a lot of different characteristics associated with that person.

Mike Blake: [00:09:17] It’s interesting. I never thought of it from a physical manifestation perspective, but that makes sense. And I know you specialize in service businesses. Do you go through that process with service businesses, too? Can you do that with professional services in terms of building a customer avatar like that?

Andy Goldstrom: [00:09:33] Absolutely. So, I’ll give you an example. I worked with a company that was a generalist type of company and they weren’t growing as fast as they want. They happened to be in the real estate services space, which is one of the things I focus on. I work with companies outside of that, but I’m focused on my customer profile. And they had expertise and background and hung out in technology areas, like where you sometimes spend your time, Michael.

Andy Goldstrom: [00:10:05] And so, we said you have to create an avatar or a customer profile based upon what that technology company leader looks like and what he looks for and what he cares about. And so, we developed a profile on that and it was Tom, the technologist. And literally, it was an opportunity to understand how they need flexibility in what they’re doing, how they care about vision, how they want to be able to grow their business quickly and how they care about all the technological aspects in the wiz bank things. And so, that kind of profile and being able to address their needs specifically knowing what they’re like compared to a corporate executive is very important.

Mike Blake: [00:10:55] So, you obviously agree, we think a customer profile is important or critical, but can a business theoretically be successful without one? Is that what we would think of as a mass market? For example, does Procter and Gamble have a customer avatar for Tide? Do they make Tide? I think they do.

Andy Goldstrom: [00:11:17] I think that’s right.

Mike Blake: [00:11:18] So, for some of us, that’s truly mass market. You know, do they have a customer profile, do you think or do they just make a product they think is really good, position it and distribute it in a certain way and sort of off they go? What do you think that looks like?

Andy Goldstrom: [00:11:33] No, they definitely have an avatar and it might be broader. But when they first started making Tide, it wasn’t as mass market or broad as it is. So, when you get a certain appeal, you can expand it. The example I use is McDonald’s. McDonald’s actually has brand ambassadors to focus on specific customer profiles for their specific type of food that they sell. So, they actually have somebody who just focuses on salads, you know, and people who just focus on burgers and literally, the customer segment that would be more in line with that.

Mike Blake: [00:12:15] You know, that’s interesting. I’d like to drill down on that for a second because I would not have guessed that, but I guess that perhaps makes sense because when McDonald’s—I find McDonald’s fascinating. I worked there as a kid. I used to think the way they produce things is just so cool.

Andy Goldstrom: [00:12:30] The whole story about, you know, the mass customization and the way that-

Mike Blake: [00:12:35] Yeah, it really is fascinating. But anyway, when they first introduced salads, that did not go well for them initially, right? Because it’s very confusing to the market, right? Because I think they didn’t have a customer avatar for that. And it sounds like what you think they discovered is maybe they have multiple customer profiles.

Andy Goldstrom: [00:12:58] They do. But they started from a foundational element and a base. And if you’re a new company, you really can’t afford to spread yourself too thin.

Mike Blake: [00:13:06] Right.

Andy Goldstrom: [00:13:06] And if you’re an existing company that’s starting something new, it’s just as important.

Mike Blake: [00:13:12] So, what are the pieces or components of a customer profile?

Andy Goldstrom: [00:13:18] Sure. There are several pieces. The key thing, what’s really important is it needs to be data-driven. So, it’s not something where you talk to your friend or you see something on TV or you just have something in your gut that tells you this is what my customer could look like. You really have to do the research to understand it, to inform your decisions. And, you know, Michael, when you post on LinkedIn, you have all these data charts and data, and I think you do it because it’s interesting, but you also do it because it can inform—you know, it’s sparks curiosity, but also informs how people make decisions.

Mike Blake: [00:14:01] And it also is indicative of my ideal customer profile.

Andy Goldstrom: [00:14:04] That’s right.

Mike Blake: [00:14:05] Right? If you like to guess, you’ll need to pay me to guess.

Andy Goldstrom: [00:14:09] Right.

Mike Blake: [00:14:09] It’s like when, you know, I tell my son, “Go tell your mother something”, right? And then, he just screams at the bottom of the staircase, like I could have done that. I wanted to go up the stairs and do that. The same thing, you don’t need to pay me to guess, right? But I’m trying to build a brand that suggests that we’re data-driven.

Andy Goldstrom: [00:14:27] That’s right.

Mike Blake: [00:14:27] I’m glad you picked up on that. I might be doing something right.

Andy Goldstrom: [00:14:30] Right. Absolutely. So, let me answer your question. Common elements are demographics. So, if it’s a B2C, it tends to be income, gender, marital status, things like that. For B2B, it’s the size of the opportunity, the industry and the location. You have to focus on customer needs. And it’s interesting. Customer needs are both perceived in latent needs. And it’s really interesting. A latent need is so important in terms of getting somebody to buy. And a perceived need is something that a customer knows, a latent need, they might not know or might not be out in front, but it’s something that drives their purchasing behavior.

Andy Goldstrom: [00:15:11] And the example I’d like to give best is just a phone, like the iPhone, you know, the perceived need is it’s a communication tool, right? It’s a way I can look up things on the internet, call my friends, text whatever. But it’s actually a security blanket for people. That’s their latent need. They feel a sense of connection and they need it. And when they don’t have it, it’s a problem. So, when people buy, you have to understand both the perceived and the latent needs when you’re looking at your customer profile.

Mike Blake: [00:15:43] Steve Jobs is so good at that, by the way. I mean, he was the Mozart of understanding that latent need, wasn’t he?

Andy Goldstrom: [00:15:50] He created a market, which is hard to do. He created several markets.

Mike Blake: [00:15:54] More than once.

Andy Goldstrom: [00:15:54] Yes, he created several markets. And so, yeah, he was the master at that for sure. Other elements are attitude. So, it’s the values and beliefs of the customer profile or the customer. Behaviors, which are use cases, meaning how they will consume the product or service and then, their purchase preferences, like what information? Do they need to understand what they’re buying? What channels are they going to find in order to be able to purchase it via online or store or in-office or somewhere else and how frequently they may purchase. So, if you understand all of those things in a data-driven way, you can actually put on a whiteboard, you know, with the customer in the center, all the different elements that influence their buying behavior and understand what your customer looks like.

Mike Blake: [00:16:48] Now, when you say data, that can scare some people. And it doesn’t even have that much to do about understanding how to do basic math, but data can also be very expensive, right? Some of the things you’re talking about on the surface sound like you’ve got to hire a marketing research firm to do surveys and focus groups and all those things can be very expensive. Is that true? Do you have to go that way or are there ways you can get data that is at least sufficient, where you’re not making multi-thousand-dollar investments in specialized studies?

Andy Goldstrom: [00:17:26] Sure. It depends on the scale and the size of the product or service that’s being implemented. There are a lot of resources that are available that don’t cost any money that are just on the net. PricewaterhouseCoopers has information. You look for companies that have traded and see what the profile of that competition looks like. There’s a lot of opportunity to find things on the net. At Georgia State where I teach, they’ve got a myriad of resources. You can find it through the SBA. There are a lot of different ways to do it.

Andy Goldstrom: [00:18:03] There certainly are paid resources where you can hire, you know, a professional firm that collects that information and does that all day and night and is an expert in that. And if you have the resources to do it, that might not be a bad thing. But ultimately, the data is not just looking up facts and figures. It’s actually engaging with prospective customers to get feedback on what their beliefs are and why they would buy something and what their feedback is. And there’s a term called ethnography. You ever heard of that term?

Mike Blake: [00:18:39] I have.

Andy Goldstrom: [00:18:40] There you go. Well, ethnography is direct observation and interviewing of potential customers, suppliers and partners, right? And if you are trying to get data or feedback from potential customers and you’re doing it on the phone or you’re doing it via email, you’re not going to get—the quality of the feedback you’re getting and the context of the feedback you’re getting isn’t going to be as good.

Andy Goldstrom: [00:19:09] And I can assure you that whether it is Procter and Gamble or McDonald’s or, you know, some of the other small to medium companies that I typically consult with or the students in my class, they get in front of their ideal client to be able to actually understand that feedback. And they draw on some other sources of information in order to understand the income brackets and things of that nature in order to do it. And they typically say you need 10 to 12 quality interviews or discovery sessions in order to develop a pattern or have enough of a sense. And certainly, you know, some companies go well beyond that.

Mike Blake: [00:19:55] Interesting. So, what you’re talking about resonates with a couple of things. One, Atlanta has an interesting technology market. You know, we’re not Silicon Valley, but we’re very deep in a few areas, right? And the venture market, in my view, has improved tremendously over the last 10 years or so. But one of the practices that is very much involved here, I think, more so than other places is something called customer discovery, where investors want entrepreneurs to have gone out and talked to lots of potential customers. In fact, in the Georgia Tech and Emory entrepreneurship programs, you cannot graduate without having actually gone out and talked to potential customers, even for a hypothetical venture. They make you develop that skill.

Andy Goldstrom: [00:20:49] I do that with my students, too.

Mike Blake: [00:20:50] You do, too.

Andy Goldstrom: [00:20:51] Absolutely.

Mike Blake: [00:20:51] Okay. And what a valuable skill and valuable asset that is. And it’s interesting that that intersects with a recent experience of mine. In preparation for the strategy meeting that I described, I read twice Michael Porter’s book on competitive strategy. And Appendix B, I think, of that book is entirely dedicated to the practice of interviewing customers and developing customer profiles, which I did not expect. I didn’t think it would be that granular.

Andy Goldstrom: [00:21:24] It is. And the way you ask the questions is really important. As an example, you want them to be open ended and not be yes or no answers.

Mike Blake: [00:21:34] And I think it might have actually been the most useful part of the book I read. I’m so glad because normally, I’m so happy I got to the end of a book that I skipped the appendices. For whatever reason, I didn’t this time. And I’m really glad because that is so chock-full—because conducting a customer interview is not walk into an office and just start asking questions.

Andy Goldstrom: [00:21:58] Appendices are where you get most of your charts, right, Michael?

Mike Blake: [00:22:02] They are.

Andy Goldstrom: [00:22:03] There you go.

Mike Blake: [00:22:03] They are, yeah. Especially in academic papers, for sure. So, what are some signs that maybe you have a customer profile that’s not working?

Andy Goldstrom: [00:22:21] The signs that it’s not working is you’re not getting traction.

Mike Blake: [00:22:25] Okay.

Andy Goldstrom: [00:22:25] Right? So, if you have initial traction with innovative customers who can validate, you can solve their problem, then you know you probably have the right customer profile. And a lot of people don’t because they’re not data-driven or they’re too broad in their customer profile that they’re focused on. And so, you know, results speak. And there’s actually something called the law of diffusion of innovation. Long, interesting, impressive set of words that I believe in, but I haven’t put together, that kind of tells you where your tipping point is relating to having that kind of traction. And it’s why people accept new ideas.

Mike Blake: [00:23:09] I love that. So, like calculus in it.

Andy Goldstrom: [00:23:12] It does. It does.

Mike Blake: [00:23:12] When you work it through. So, you’re talking dirty to me now. But I think where I want to get to is I think executives and entrepreneurs sometimes fall into the trap of thinking that they’re failing to get traction not because they have the wrong customer profile, but because they are not executing approaching that customer profile well or correctly or maybe they don’t have enough resources, right?

Mike Blake: [00:23:42] So, theoretically, maybe you do have exactly the right customer profile, but the thought process goes, “You know, we know who our customer is, but we just don’t have the right salespeople. The salespeople aren’t doing their job. Marketing is not doing their job. We don’t have enough money to get in front of those customers”, et cetera. You’ve heard all these things before, right? And this is a hard question, but that’s what we’re about on this podcast. The hard question is how do you know if your failure to gain traction is in fact the result of poor execution versus having the poor, the incorrect foundational customer profile?

Andy Goldstrom: [00:24:21] You’re right. It is an excellent and complex question. And it could be something else, right? Your sales team might not be executing well. Even though you have the right customer profile or avatar, you might not be executing once you get the sale, which impacts your reputation and ability to sell. So, there are a lot of different aspects to it. And all you have to do is be able to measure with certain KPIs about each stage of that process to get the appropriate feedback.

Andy Goldstrom: [00:24:59] And certainly, if you’re not getting any inbound interest, if you’re not getting good feedback on what your product or service could be, if there’s not a problem that you’re solving, you’re not going to pass go. You’re not even going to get started. And then, there’s the question that you have to measure, is, okay, a sales cycle is a multi-stage process, right? You have to have marketing and good salespeople and a good value proposition and good references. And they all have to work together. But if you don’t have the right target, none of it matters.

Mike Blake: [00:25:30] And the main part of it goes back to what we just talked about a few minutes ago, which is maybe you just ask the question, “Why did I think I had the right customer profile? Did I do the work that you just talked about in terms of actually going out and talking to 10, 15 customers? And did I do so in kind of a rigorous way?” You revisit how you got to the customer profile.

Andy Goldstrom: [00:25:55] The first Inc. 500 company I was with, I joined in 1995 and we grew really quickly in a period of time and became an Inc. 500 company in 2001. And we didn’t have all these tools, a business model, canvasses and customer profiles and avatars and things like that. We just had good common sense to be able to see a need in the marketplace that we could solve, there were changes going on in the marketplace. Getting some customers who were lead innovative end users who were willing to give us feedback and also pay us for the service even though it wasn’t fully fleshed out yet.

Andy Goldstrom: [00:26:46] And so, in essence, we were doing those things in a less structured way. And it provided validation along the way. Now, there are amazing tools and methodologies that are used in corporations by consultants who understand this stuff. It’s taught in schools. And if you use it right and do the right due diligence, you’re reducing your risk. And being an entrepreneur or being somebody who’s an intrapreneur in a bigger company, who’s trying to target a new business, what you’re trying to do is you’re trying to peel the onion back and reduce the risk in each stage.

Andy Goldstrom: [00:27:26] And so, if your customer profile is right and you were talking about discovery that investors in Atlanta are looking for, if you’ve done that discovery correctly, you’re reducing the risk and you go on to the next stage in terms of—and if you’re looking for investment along the way, like beyond friends and family to angels and series A and series B, you have to have reached certain milestones in terms of revenue, customers, discovery that you’ve done in order to get to those platforms.

Andy Goldstrom: [00:27:58] And then, the best companies are ones that actually start with a narrow solution to a problem via a product or service and then, they build on it modularly. So, an example is like Salesforce. Salesforce started out with like a free type of app or free system, where you could manage certain aspects of your CRM, but then, they have higher level premium services that you can choose based upon the number of users or the sophistication that you want. But it’s built on the same chassis, just like an Infiniti is, you know, built on a Nissan chassis.

Mike Blake: [00:28:42] Now, let’s move up from the startup into maybe a more mature company. At some point, presumably somehow, whether they do it analytically or reluctant with, they had a customer profile match and a successful identification, can a customer profile change? Is it possible that, you know, once a company reaches a more mature stage, they see sales growth drop off or maybe even retrench? Is it something that executives need to look out for, as maybe your customer profile can change over time?

Andy Goldstrom: [00:29:18] It can almost change overnight. So, you really have to stay with the times. And the reason things change overnight is innovation, communication channels, time and social systems have all been compressed. And the communication channels have been compressed because of the internet. The social systems have been compressed because of social media. And time has been compressed because of technology. So, what happens is trends change and preferences change and you need to keep up with that. Some of the big trends are relating to demographics, millennials and baby boomers on both sides of the spectrum in terms of their needs and in the size of that demographic.

Andy Goldstrom: [00:30:08] Technology and regulation are all changing. So, an example of a trend that, you know, could change very quickly or has changed is people weren’t as concerned about their health. You know, they cared about their health, but they weren’t as concerned. And, you know, there’s a big push and it’s not so new anymore. But all of a sudden, things change when people really cared about organic and pure products and, you know, there are a lot of vegetarians and vegans. And I think, you know, Amazon purchased Whole Foods for a variety of reasons, including distribution. But one of the reasons was to reach that audience, which is growing.

Mike Blake: [00:30:49] You know, one of those areas where I’m seeing it, we’re recording on Valentine’s Day today, although this will be published probably closer to St. Patrick’s Day.

Andy Goldstrom: [00:30:57] Happy Valentine’s.

Mike Blake: [00:30:58] Happy Valentine’s Day and happy St. Patrick’s Day coming up and whatever else is coming up. But you know, one of the things I sort of had to do in order to purchase for my wife is she’s big into the fair-trade chocolate now, which is harder to get, right? Organic chocolates, not hard to get now. But then, you got to make sure that it’s fair trade, which is an up and coming trend.

Andy Goldstrom: [00:31:23] Sure.

Mike Blake: [00:31:24] I’m not sure that’s overnight, but these customer profile things, I think, change the way a lot of things do. The change is very subtle for a long period of time. And then, it seems to sort of change overnight. Organic food was definitely like that. You know, this meat alternative, Beyond Meat and so forth, I think, looks like that. And fair trade may be the next thing which will delight me because I spent more time looking for fair trade chocolate than I think the whole of my Christmas shopping this year. So, it can’t happen fast enough.

Andy Goldstrom: [00:31:56] Did you find it?

Mike Blake: [00:31:57] I did eventually. Yes.

Andy Goldstrom: [00:31:58] Okay.

Mike Blake: [00:31:58] I did. And in a nick of time because my wife is actually on—she and my children left on vacation today. So, I had to come through it last night and I did. It was a buzzer beater.

Andy Goldstrom: [00:32:08] Good for you.

Mike Blake: [00:32:11] We touched on this a little bit, but I want to come back to it because I think it’s important to hit. Companies can evolve into multiple customer profiles, too, right? It may not be that your customer profile is wrong, but you may need to add to it, correct?

Andy Goldstrom: [00:32:26] You do, but there’s a method that you need to evolve in order to do that.

Mike Blake: [00:32:33] Okay.

Andy Goldstrom: [00:32:34] And again, whether you’re in a startup or whether you’re an established firm, you don’t just all of a sudden cater to try to cater to everybody. And so, what you usually try and do and what we teach and what I work on with my clients is getting a beachhead strategy. So, it’s what’s a use case for a particular customer that you can focus on in that first year? Use the law of the diffusion of innovation, where you can actually get some market share and prove up and get some cash in the door.

Andy Goldstrom: [00:33:10] And then, you can grow from there to other use cases to other types of customers with other different profiles. And that could work. In the chocolate case, for instance, there are some people who eat chocolate because it’s a snack. There are some people who eat it because it’s healthy for them. They have these, you know, health bars now Clif Bars and other things. And some people want to give it as a gift, right? And then, there are different customer types along those lines depending upon their age bracket.

Andy Goldstrom: [00:33:42] So, you can’t be everything to everybody out of the gate, but if you focus on one of those uses and one of those age brackets to get started, to get traction, then you can leverage and go from there. And that’s the best way to do it. There’s a client I have in town that is a technology company that does app development and they do training. So, they’ll train people how to be app developers or to have the newest, latest and greatest to do it. And they also develop apps. They were trying to go out to both customers and the message got mixed and diluted.

Andy Goldstrom: [00:34:24] And so, they didn’t know, their customer base didn’t know what they really were and this company itself didn’t know where to really put its resources into because they thought that the growth area was the one that was the low-margin business, which isn’t necessarily a good play. But they thought that that was where they wanted to put their emphasis and they really had to pick and choose one. And when they did, which was, “We’re an app developer”, their business took off.

Mike Blake: [00:34:55] Now, when a customer profile changes, it can be an existential threat to the company if it comes as a surprise to you and you don’t act upon it, right? I mean, you know, Microsoft was putting a lot of trouble because, you know, Steve Ballmer just blew it on mobile. And it caused them a lot of problems, I would argue Major League Baseball has some issues because their customer profile is primarily White and older. And that’s not the way the demographics of the country are currently going. That’s something they’ve got to figure out. Is customer profile so important that if it changes on you, do you agree that it actually could be a company killer?

Andy Goldstrom: [00:35:43] No doubt.

Mike Blake: [00:35:44] And if so, once you make that discovery, let’s say you’re kind of late to the game, say, “Crap. My customers just flat out changed. They don’t want a beef anymore. They want to eat something that’s not beef”, right? But all I do is I raise cattle, right? How do you go about kind of a crash course, if you will, to basically kind of save the company if you’re late to the game and you make that realization or by that point, is it already too late?

Andy Goldstrom: [00:36:20] The answer is it depends.

Mike Blake: [00:36:22] Okay. Yeah.

Andy Goldstrom: [00:36:22] Right?

Mike Blake: [00:36:22] I figured.

Andy Goldstrom: [00:36:22] So, you’re talking about baseball. I’m a big baseball fan. Grew up as a stats guy and loved baseball. And you saw what happened here in Atlanta. Atlanta saw that the demographics were changing and they actually moved their stadium to where the demographics were more applicable to them.

Mike Blake: [00:36:39] Yeah.

Andy Goldstrom: [00:36:39] Now, not everybody can pick up and change like that. That was an expensive proposition for them, but it seems to have paid off. But for other businesses, you want to be in the growth area, not the mature area of a business. And so, if you’re trying to make a pivot, you can certainly make that pivot, but you don’t want to change your business. You want to find customers that are a better fit for what you have. And so, if it’s a new business, hopefully, you can do it right the first time and adjust along the way.

Andy Goldstrom: [00:37:16] But if it’s an existing business, find new customers that are a better or closer fit. And the reason, primarily, is you’ve got all this investment and knowledge in your existing business, don’t try to be something that you’re not just because you’re trying to chase something, because you’re not going to have the knowledge or the relationships or the understanding to be able to actually solve that problem. So, find a problem based upon where you are and what you have and you can make subtle adjustments to it, but don’t try to be something that you’re not all of a sudden.

Mike Blake: [00:37:48] So, interesting. What I take away from that is one, option for a company that finds that their customer profile has shifted and maybe their business can’t necessarily shift with it as easily. Let’s take the beef example. All right. Maybe that means you get out of mass-market beef, but then, you switch to a niche market of organic or Kobe steaks or something that is lower volume, but higher margin, something like that as, you know, a ham-handed example.

Andy Goldstrom: [00:38:20] Sure. You know, if you’re Burger King, which came out with, I guess, the Impossible Burger first and was the one that kind of made the name, their distribution channels and the way that they serve their customer didn’t change. So, they had a lot of things in place. All they had to do was get the raw product to be able to serve it. Most other customers don’t, you know, have a bigger change than that.

Mike Blake: [00:38:46] I’m going to be really interested to see how Burger King does with that, because I actually like an Impossible Burger, but I’m not sure what the use case is because if you bother to look at the nutritional information, it’s for the most part unhealthy for you in a different way than conventional beef.

Andy Goldstrom: [00:39:06] It’s still just caloric, is it?

Mike Blake: [00:39:08] It is just as caloric. It is a lot less cholesterol, but it is massively higher in sodium, right? So, it’s a different kind of-

Andy Goldstrom: [00:39:17] So, we talked about latent needs.

Mike Blake: [00:39:19] Yeah.

Andy Goldstrom: [00:39:22] People who care about animals and don’t want—you know, some people are vegetarians because it’s for their health, but some of it don’t want animals to be killed.

Mike Blake: [00:39:31] And also environmental, right? We’re now hearing that-

Andy Goldstrom: [00:39:33] So, it’s an environmental thing so that’s serving a latent need that they’re trying to cater to as opposed to just people who just want to eat supposedly healthier.

Mike Blake: [00:39:42] Right. But I don’t see that that in their commercials yet, right? Maybe that’s their next phase. Right now, it’s, “Hey, this is just as good as any other Whopper, so you might as well have one.” But I don’t see the—I guess they’re just saying, “Well, if you’re just inclined to eat vegetarian, anyway, here it is.”

Andy Goldstrom: [00:40:02] Businesses don’t typically promote latent needs, but they need to understand them in order to capture the business.

Mike Blake: [00:40:11] Interesting. So, I’m being blatantly unfair, by the way. This is off-the-cuff questions for Andy. I’m asking to analyze a strategy of a multinational corporation real time. So-

Andy Goldstrom: [00:40:23] And I haven’t had an Impossible Burger yet, but I’ve heard it’s good.

Mike Blake: [00:40:28] Now, I’m getting hungry. So, how long do you think it takes to develop or maybe redevelop a customer profile?

Andy Goldstrom: [00:40:39] Depends on the size.

Mike Blake: [00:40:40] Does it have to take years?

Andy Goldstrom: [00:40:41] No, not if it’s done right.

Mike Blake: [00:40:44] Okay.

Andy Goldstrom: [00:40:44] So, you know, in my classroom, we’ve got people, young students, some of them are as old as 27, 28 because they’ve worked full time and they’re going back to school or, you know—but some of them are 18, 19, 20 years old who actually go through what we’re doing and are actually able to launch a business that I stay in touch with them. And they’ve actually launched fruitful businesses. One is launching a supplement product for gamers.

Mike Blake: [00:41:21] Okay.

Andy Goldstrom: [00:41:21] That’s specific to gamers. There’s another one that has an app that actually connects people to hold them accountable at the student level, where when it comes to health or getting somebody who can study with you or go to the gym. And they went through a process over several weeks as opposed to months and years to actually validate that that used the right tools or methodologies and did that.

Andy Goldstrom: [00:41:46] And when I work with my clients, it’s the same kind of thing. It doesn’t require push—you know, you don’t have to be Sisyphus. We’re not trying to push the boulder up the hill. You really can do it relatively quickly. And obviously, if you’re in a larger corporation, there are more stakeholders to please. That doesn’t mean the work needs to take longer. It just means that there are more stakeholders who you need buy-in from.

Mike Blake: [00:42:12] And it’s worth emphasizing. You have students that are doing this.

Andy Goldstrom: [00:42:15] I have students that are doing this and doing it well. And some of them, it’s just a practical exercise in class that instead of it just being a textbook kind of thing, which makes it more real, but some of them are actually pursuing these business opportunities and have been successful at it, believe it or not. And it’s exciting. And then, what I do with my clients, you know, it’s just as exciting because frankly, there’s more at stake.

Mike Blake: [00:42:46] Yeah.

Andy Goldstrom: [00:42:46] You know, they have families to feed. They have house, you know, mortgages. And they don’t have unlimited resources in terms of money or time or cash. And so, making the right choices and the right decisions along the customer profile route or how they manage their money or how they operate as they grow is really important. And I take a lot of pride in how I work with customers to do that.

Mike Blake: [00:43:11] And we are running out of time, so we’re going to have to wrap it up. This is a topic that, you know, probably deserves a lot more treatment than we’re able to give it in the span of one episode. But if people want to contact you to learn more about this topic, can they do so? And if so, what’s the best way to do it?

Andy Goldstrom: [00:43:28] Sure. Well, Michael, thanks for your time. I hope, you know, we covered enough, that people that were listening actually understand how important it is. And maybe it piques their interest or reinforces what they’re doing correctly or makes them think a little bit harder about what they need to do in order to really hone in on, you know, who they’re approaching and how they’re marketing their services or products.

Andy Goldstrom: [00:43:52] I can be reached at midcourseadvisors.com. My company is named Midcourse because it’s kind of the mid-course of a journey of a company, where adjustments need to be made. And my email address is agoldstrom@midcourseadvisors.com. And my phone number 770-633-2260. And you can find me on LinkedIn. And be happy to talk to anybody, to share, to learn about their perspectives and share any background I have.

Mike Blake: [00:44:19] Well, that’s going to wrap it up for today’s program. I’d like to thank Andy Goldstrom so much for joining us and sharing his 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: customer avatar, customer profile, Decision Vision, Decision Vision podcast, Michael Blake, midcourse advisors, Mike Blake

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