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Decision Vision Episode 144: Should I Be Thankful? – Mike Blake, Brady Ware & Company

November 25, 2021 by John Ray

Mike Blake
Decision Vision
Decision Vision Episode 144: Should I Be Thankful? - Mike Blake, Brady Ware & Company
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Mike BlakeDecision Vision Episode 144:  Should I Be Thankful? – Mike Blake, Brady Ware & Company

Decision Vision host Mike Blake reflects on 2021 and shares what he is thankful for this season. He discusses his family, events from the past year such as SpaceX, guests who’ve appeared on the show, and much more. Decision Vision is presented by Brady Ware & Company.

Mike Blake, Brady Ware & Company

Mike Blake
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: [00:00:23] Welcome back to Decision Vision, a podcast giving you, the listener, a clear vision to make great decisions. And, last year, about this time I recorded, I guess, what amounts to an address, if I’m really honest about it, regarding the question, should I be thankful? And, as it turned out at that time, that was the most listened to episode of the podcast, which, you know, I’m a data guy that tells me that for whatever reason you are interested in what I’m thankful about and I’m certainly interested in sharing that with you.

Mike Blake: [00:01:03] This is not an attempt to be a knockoff of Oprah and her favorite things sort of stuff. It’s really just, you know, an opportunity to sort of take stock of the last year and pull something positive out of it, even though the things that are going on around us and in our lives aren’t necessarily always positive.

Mike Blake: [00:01:26] And so, I want to – what I’d like to do is I’d just like to express the things that I’m thankful for and I hope that you’ll find some value in it. Some things to think about, some things to find hope and positivity, and to give you a – you know, to give you an opportunity to kind of see through the fog, if you will see through the smoke of a lot of things that are negative, that surround us and find the good in things. Because if you don’t do that as we approach the holidays, at least here in the United States and most of what we would call the Western world, this is an important time for reflection. It’s a time of, for many of us, heightened spirituality. And, hopefully, you find this – hopefully, you find this useful and resonates in some way.

Mike Blake: [00:02:20] So, the first thing I want to be thankful for, express my thanks for is my family. You know, it’s a cliche, but, you know, those things are cliches for a reason. And, my family has been very supportive of my career. They have been very supportive of my doing this podcast, which takes some time.

Mike Blake: [00:02:41] They’ve been very supportive of the boundaries that I’ve had to set that in spite of the fact that I am at home, I’m not really at home, I’m not really available because I do have a job to do and there are people who are counting on me to do it.

Mike Blake: [00:02:55] And I’m grateful that all of them have cooperated in observing the coronavirus protocols that we have as a family have agreed upon. And that has, I think in no small part resulted in the fact that, knock on wood, nobody in the immediate family has contracted coronavirus, which, of course, is a good thing and particularly a good thing, because only just recently did my youngest son become eligible for the vaccine, and we do have a person close to us that visits us quite frequently, who if he did contract the virus, it would be a grave prognosis. So, I am thankful for that.

Mike Blake: [00:03:41] And, I’m thankful for a family that is more or less stayed unified, not just the immediate family, but the extended family. And in times like these, discussions such as race, such as the vaccine, science overall, policy, politics have divided families. They have disrupted family bonds. They have destroyed friendships.

Mike Blake: [00:04:09] And, I am thankful for the fact that that we have largely been unscathed in that regard, not that we are monolithic in our thinking. We are not. We have healthy debates all the time and sometimes I learn something and , I’ll change my mind if I’m presented with a compelling argument and in particular compelling thoughts and data to support that argument. But I am thankful for that.

Mike Blake: [00:04:36] And, as an extension, I’m thankful for my health. I’m thankful for the fact that vaccines that protect us, at least partially from coronavirus, are now effectively available to anybody who wants them whenever they want them. I need to get my booster shot and I will be doing that in the next few days and I guess I’m one of the fortunate ones. I don’t tend to react to those, unlike my wife, who unfortunately is very sensitive to them. But, you know, she grits her teeth and she gets vaccinated anyway.

Mike Blake: [00:05:09] If you choose not to be vaccinated, I don’t judge you for that. I don’t judge anybody for that. There’s really no point in judging you for that. I disagree with it. I may have a different personal risk profile than you, but it’s your risk profile. And, you know, at the end of the day, we all have the power to take whatever protections we see appropriate, at least, for the most part, to protect ourselves from the coronavirus and make our own decisions in terms of risk-reward. And I only encourage people to be vaccinated because it does seem to be, does seem to be effective. That’s how I interpret the data that I see. And I would rather people not get sick and die rather than have people get sick and die. So, it’s really as simple as that.

Mike Blake: [00:05:09] I’m thankful for SpaceX. I’m thankful, in spite of the fact that I’m on record as saying, you know, I think Elon Musk is both a genius and an inspired one as that and he’s probably a little bit nuts. And maybe those two things go hand in hand.

Mike Blake: [00:06:15] But thanks to SpaceX. There now exists a privately funded or privately derived, I guess, technically the government funds, but it’s privately operated crewed space flight program. And, I think that’s an important – an extremely important step for humanity.

Mike Blake: [00:06:36] I think that the fact that we have not returned to the moon since the early 1970s is really a shame. I think it’s something that has held American society back. I understand it was expensive to do that. I understand the main reason for getting there was so that the Russians wouldn’t or the Soviets wouldn’t, or at least get there before then.

Mike Blake: [00:06:58] But, you know, we do need to expand. We need the resources of extraterrestrial bodies. We need to understand what it takes to colonize other worlds and adapt to space flight, I’m sorry, life in space and new generations in space. And, you know, it’s such an extremely important step for all of human civilization what SpaceX is doing, you know.

Mike Blake: [00:07:24] And hopefully, Blue Origin will follow. They’re not there yet. They’re sort of doing the go outside the atmosphere fall back down, and that’s fine. But it ain’t what SpaceX is doing, where they actually have crewed missions that achieve orbit and ferry people to and from the space station. And they do so in a way that is economical. So, I’m very thankful for that.

Mike Blake: [00:07:49] I’m thankful for those who ask me for help. I serve in a volunteer capacity in a number of ways. I serve – have done office hours [inaudible] get back to that. But there are companies I coach informally that have decided that probably against their better judgment but have decided that I can help them achieve whatever it is that they want to achieve.

Mike Blake: [00:08:14] And, I’m mainly thankful for the opportunity to serve, to learn about new – about businesses that I don’t know a whole lot about and to support people as they grow and that includes my staff and my own company that has entrusted their careers – have entrusted their careers collectively to me. And, it’s an awesome responsibility and honor to do that.

Mike Blake: [00:08:43] I’m thankful for the fact we are having a very important discussion in a very, I think, listened-to discussion about the changing relationship between labor and employers. I don’t think the data suggests that people are leaving the workforce because of generous government benefits, though I remain open to being convinced. As I say very often, economics is a slow science. You know, it takes us a year to figure out if we’re in a recession, another year to figure out if we’re out of it. That’s just the way economics goes. It’s getting better. But economics is a slow science, and maybe we won’t really know the full effect of extended government benefits until early next year. But the data right now that I see indicates that there’s something more secular going on. It’s not simply about paying people not to work anymore. It’s about changing priorities. It’s about people deciding that if they don’t have to work, if they’re a second income in the family, at some point it’s not worth it. They’d rather take a step back in their so-called economic standard of living to get back a part of their life that they’re missing.

Mike Blake: [00:09:59] And I’m not – I’m neither cheering those people nor am I denigrating them in any way. I just think that it’s a very important discussion that needs to be had, and I’m grateful for the fact that both employees and employers are engaged in it. And, you know, it’s a scenario that’s been exacerbated by the fact that we have chosen to make immigration into the United States harder than it has been.

Mike Blake: [00:10:29] It’s been exacerbated by the fact that roughly 2 million people retired earlier than they would have because of the coronavirus pandemic. It’s exacerbated by the fact that roughly 350,000 working-age Americans are now dead that would not have been dead if not for the virus, and it’s a classic supply shock to go on top of a steadily declining workforce in terms of sheer numbers. And you know, that’s just we’re looking at.

Mike Blake: [00:11:01] And, I’m glad we’re having this conversation because it’s giving a chance to reopen the discussion of what we want the relationship of labor in our economy to be. Now, maybe it’s time to go back to right where it was in 2019. Maybe, we were all going right back to offices and cubicles and we’re going back to the hours we worked and, you know, pushing mental health aside and maybe not changing boundaries at all. I don’t think that’s the case, but I acknowledge the fact that it could happen. But if it does happen, at least it’s happened as a result of an intentional, society-wide conversation, which means there’s an implicit choice as opposed to millions of people feeling like that has been forced upon them.

Mike Blake: [00:11:45] I’m immensely grateful to you, the listeners, or at least the downloaders. You know, I can’t track who listens to this thing. That’s the way podcasts go. But I do know that I’m pretty sure over 30 million downloads have occurred since we launched this thing about 20 months ago. And, that’s a big number any way you slice it. And, you know, we’ve been consistently hitting now 40,000 downloads in the first 30 days after a new podcast is released. That puts us in the top 1% of at least business podcasts and maybe all podcasts altogether.

Mike Blake: [00:12:22] And it’s nice to get that feedback. It’s nice to feel like you’re having an impact. You know, the thing about podcasts is that it’s one of the least engaging social media formats out there. I talk in a microphone. You may or may not listen. That’s it. There’s no conversation that happens except for when I have the guests on. All I know is the download. So, the fact that you’re downloading and presumably you’re not all just downloading without listening.

Mike Blake: [00:12:56] I appreciate, at least, your willingness to take up valuable storage space on your cell phones, your smartphones, and that you find what we do useful. And as long as you find what we do useful, I think we’re inclined to keep doing it.

Mike Blake: [00:13:12] I’d like to thank the guests who’ve come on and have provided just a ton of expertise and, as I’ve said many times on this program, this is a way of my institutionalizing mooching from guests and their particular areas of expertise. You know, they come on, they’re not compensated. I don’t think they get a lot of referrals from the podcast. The podcast – podcast doesn’t really work that way. They do it because I asked them to, and they do it because they feel like they have something they want to share with the world and they want to share with our listener base and they take the time to do this. And, I’m enormously grateful to our guests or when they want to do that.

Mike Blake: [00:14:01] I’m grateful for political stability relatively speaking. I didn’t think I’d have this on the list at some point. Maybe, I always should have, but you don’t take – I guess you take things for granted until they’re not there anymore.

Mike Blake: [00:14:18] You know, the incidents of January 6. I don’t know how you view that as anything other than an insurrection. It was a minor one. It was one that had no chance of actually overthrowing the government. Nevertheless, it was an insurrection. Just the fact it was ineffective doesn’t mean that it wasn’t that; still met the definition.

Mike Blake: [00:14:43] And, you know, what happened afterwards were extraordinary events. Our president, whether you voted for him or not, our president was sworn in under circumstances of having to be surrounded by 25,000 National Guardsmen. We did not have a peaceful transition of power. They try to – they try to dress it up as such I guess because nobody threw a rock at the president during his oath – taking his oath of office and the vice president. But we do not have a peaceful transition. There’s a reason we needed those National Guardsmen there.

Mike Blake: [00:15:21] And, I’m thankful that at least in the first election since we’ve not had a repeat of anything like that, and, you know, our political environment while still highly divided, highly charged, highly unpredictable, at times irrational on both the left and the right. But we are, for the moment, enjoying political stability, and I’m thankful for that because I have no interest in – I have no interest in being put in a position where there’s martial law. I have no interest in picking up a gun because I have to defend my family. I don’t own a gun. I don’t want to own a gun. I don’t want my – my preference is to be in a scenario where I don’t need to have one. And, I think most people agree. Even those who own guns I think would agree with that.

Mike Blake: [00:16:16] So, I’m grateful for the relative political stability that we’ve had, and I hope that it – I hope that it continues, and that goes also for other insurrections, and I know that in other places in the country, they’re still going on. Portland, Oregon being one of them. But at least here in Atlanta, it’s a fairly safe place physically, and I am grateful for that.

Mike Blake: [00:16:43] I am grateful for digital transformation. This is not a new thought. It’s been said before and not by me but by others smarter than I am. The pandemic forced us to swallow ten years of digital transformation in about 18 months. We are learning to adopt new technologies. We are getting over Zoom fatigue. We’re starting, you know, I think most of us are starting to see Zoom calls as just simply something we do now. And, I wonder if there was ever a telephone fatigue where people were fatigued when they had their first phone call. I don’t know, I wasn’t alive back then. Sometimes it feels that way, but I wasn’t alive back then.

Mike Blake: [00:17:27] And, you know, companies are evolving to accommodate this in the ways they feel are most appropriate to accomplishing their missions. And, managers and leaders like myself are learning every day on the fly. How do you lead and engage teams digitally? How do you engage your audiences digitally? How do you maintain relationships digitally? And, I’m grateful that this has happened because I do think it was something that had to happen. It was more comfortable – more uncomfortable than we wanted to because of the suddenness of the transformation. We weren’t ready for it. But I think we’re going to find that we’re a better society for it.

Mike Blake: [00:18:10] I’d like to thank those who have engaged with me on LinkedIn, particularly with my content. It’s rewarding to write and to have people respond and feel like they’ve learned something and feel like they’ve been led to a thought that they hadn’t thought of before that there are some intellectual value.

Mike Blake: [00:18:27] And, I started a LinkedIn group recently that I’ll tell you about in a minute because the LinkedIn algorithm has become, I think, a form of alchemy at this point. And, I got tired of writing things that not everybody was seeing, just because it didn’t get enough likes in the right time period. So, now there’s a more consistent way to engage with my content.

Mike Blake: [00:18:52] I like writing. I like the way writing forces me to think. I like the way writing forces me to organize my thoughts, and I’m very thankful for the opportunity to do that for you.

Mike Blake: [00:19:05] And finally, I’d like to thank Brady Ware and Business RadioX for supporting this program. You know, Business RadioX has been a fantastic partner. There’s no way we have 30 million downloads without them, and it just ain’t happening. And you know, they do a lot of work behind the scenes, particularly in helping us schedule guests and get all those moving parts set and publishing this on social media and taking care of all the nice details to make sure that our guests feel like they’re appreciated and well treated and that the show has the high production quality that it does.

Mike Blake: [00:19:42] And so, you know, the folks at Business RadioX, in particular John Ray who’s been my recording partner for most of these programs, you know, has just done a fantastic job. And, you know, if you’re thinking about doing podcasting in a serious way, I cannot recommend them enough. We are where we are because of our partnership with them. And, it would be very hard to convince me otherwise.

Mike Blake: [00:20:11] And, Brady Ware deserves a lot of credit here too. Brady Ware pays Business RadioX to do this. John is not doing this out of the goodness of his heart. He has a good heart, but ain’t that good. And, it shouldn’t be. But Brady Ware does spend some significant money to produce this podcast. And, they don’t do it because they think it’s a massive business generator, it’s not. That’s not what podcasts are for. They do it because they have a commitment to increasing body of knowledge and business to help people become better business decision-makers.

Mike Blake: [00:20:52] And, my fellow shareholders have agreed that this is a good investment, that this is a way to give back to the community. This is a good vehicle to carry that knowledge forward. You know, and they, in effect, relieve me of some of my other duties as a shareholder in the firm so that I can invest the time and energy to do this and to do it at least well enough so that you’re inclined to listen to it.

Mike Blake: [00:21:22] So, to my partners at Brady Ware, I’m immensely grateful that you give me this platform to do this show.

Mike Blake: [00:21:32] So, that’s going to wrap it up for today’s program. Starting next week, we’ll go back to the normal format. I should know which one that is, what episode it is, but I don’t, but it’ll be awesome like all the other ones. So just, you know, tune in and keep tuning in so that when you’re faced with your next business decision, you have clear vision when making it. And, again, if you like these podcasts, please leave a review. Your reviews really help us because they help people find us. That helps us help them. We can’t help them if they don’t listen to us. They don’t listen to us, they don’t know we’re out there.

Mike Blake: [00:22:06] And, if you like to engage with me on social media, I published a chart of the day on LinkedIn and I’m also @unblakeable on Facebook, Twitter, Clubhouse, and Instagram. And, also check out my new LinkedIn group called A Group That Doesn’t Suck. And I call it that because most LinkedIn groups do suck and this one sucks a little bit less because we have more control over it. And, you know, I moderate it. I make sure there’s more content in there every day. I archive some of my old content because otherwise it disappears. And, again, if LinkedIn didn’t see fit to show it on a given day, it goes away. But there was some stuff that people thought was pretty cool.

Mike Blake: [00:22:43] And it’s also a place where other people are expressing their ideas and starting conversations, which I just really dig because that’s how I learned. It’s not about – it’s not a vehicle for Mike Blake to go out there and try to show off how smart he is. That would be a fool’s errand. But it is a vehicle for other people to share, I think, smart things and engage with smart ideas. And that, I think is, for me, is the primary attraction of any social media asset.

Mike Blake: [00:23:16] So with that, I’m going to wish you all a happy thanksgiving in 2022 whether you celebrate it or not. And this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been, once again, the Decision Vision podcast.

 

Tagged With: Brady Ware & Company, Business Radio X, Decision Vision podcast, grateful, gratitude, John Ray, Mike Blake, thankful

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.

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 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.

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: [00:00:43] 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 139: Should I Incorporate Virtual Reality into My Corporate Training? – An Interview with David Beck, Foundry 45

October 21, 2021 by John Ray

Foundry 45
Decision Vision
Decision Vision Episode 139: Should I Incorporate Virtual Reality into My Corporate Training? - An Interview with David Beck, Foundry 45
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Foundry 45

Decision Vision Episode 139:  Should I Incorporate Virtual Reality into My Corporate Training? – An Interview with David Beck, Foundry 45

David Beck, Founder of Foundry 45, and host Mike Blake discuss virtual and augmented reality and its potential for corporate training. They describe the technology, cover the difference between augmented and virtual reality, its use case for training, frontiers and limitations of the technology, the impact of the pandemic on the industry, and much more. Decision Vision is presented by Brady Ware & Company.

Foundry 45

Foundry 45 is passionate about using leading-edge technologies to create better process training outcomes for enterprise clients. We are a team of strategists, technologists, engineers, creatives, computer programmers, and project managers who are all driven to create powerful, immersive VR experiences.

By leveraging new, interactive content, we help organizations break the monotony of their current business training routines while providing safer, more efficient, and engaging employee training solutions.

We have deep expertise creating scalable, effective procedural training solutions that focus on the learning objectives and the needs of the trainees. Our innovative process and approach is rooted in the importance of integrating VR solutions into a holistic, manageable training initiative.

We embrace collaboration within our team and with our client partners. Being accessible, transparent, and honest is the approach that allows us to deliver great work through a nimble and iterative process.

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David Beck, Founder and Managing Partner, Foundry 45

David Beck, Founder and Managing Partner, Foundry 45

Dave Beck is a Founder and Managing Partner at Foundry 45, an immersive technology company that develops enterprise-level virtual reality training experiences. His company has built over 250 experiences for notable clients such as AT&T, Coca-Cola, Delta, and UPS.

A passionate advocate of his industry, Dave is a frequent speaker on topics related to technology and the future of learning.

Before starting Foundry 45, he held leadership positions in both training and technology. Dave also serves as a board member at Georgia Tech, where he earned his MBA, the Metro Atlanta Chamber of Commerce, and the MAK Historic District.

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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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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 where 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 their 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 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: [00:01:31] Our topic today is, Should I incorporate virtual reality into my corporate training? According to Statista, global shipments of virtual and augmented reality headset shipments in 2020 amounted to five-and-a-half million units and was projected to reach 11 million in 2021 and forty-three-and-a-half million by 2025.

Mike Blake: [00:01:51] As it turns out, I actually own two of those things. One is connected to my PlayStation 4 and another that is on Oculus Rift, which I’ve only recently got that, I’ve not tried it out yet. And, you know, I became really aware of augmented reality when we had the Pokemon GO craze, if you guys might remember. I remember I was on vacation up in Boston, actually, we had a Vrbo in the north end. And I didn’t realize what was going on, then all of a sudden you just saw people these days they’re walking along the streets looking into their phones because they’re trying to find these virtual Pokemon to battle. And it was the most bizarre thing I’ve ever seen.

Mike Blake: [00:02:35] But I think for many people, that was probably their first exposure to augmented reality. And I think one of the best examples of virtual reality, of course, we’re not there yet in terms of technology, but Star Trek: The Next Generation introduced the Holodeck, which is basically a big virtual reality simulator. And like so many things in technology that we have today, they appeared in some form of Star Trek first. So, it’s kind of interesting to see how we’re seeing that reach full circle.

Mike Blake: [00:03:08] And I became enamored of virtual reality in a training context when somebody came to one of my office hours years and years ago, and they showed me a demo of a VR platform that helps mechanics repair airplanes. And as most of you can appreciate, a passenger jet is an incredibly complex piece of equipment. There’s hundreds of miles of wire, heaven knows how many moving parts. And it’s amazing that the people who work on those aircraft, especially the engines, are able to keep things straight.

Mike Blake: [00:03:44] And I saw this fascinating demo of a platform where there’d be augmented reality, where the technician would wear a headset, they’d see into the jet. And then, for maintenance, it would show them step by step in real time what part they had to address, they had to remove, lubricate, replace, whatever it is that they had to do. I saw that and I said, “Man, this has got to be the future of training.”

Mike Blake: [00:04:12] And so, I think it’s a really neat topic. It’s one that I’ve wanted to do for a while because I suspect our guest will tell us if this is true or not. But I suspect that given where we are from a work relationship and a work paradigm in the current economy here as we’re in Q4 of 2021, I suspect that technologies like augmented reality and virtual reality are taking on maybe a more important role more quickly than we might have imagined.

Mike Blake: [00:04:43] So, joining us today is Dave Beck. Dave is Founder and Managing Partner of Foundry 45, an Atlanta based company that helps brands train their teams and tell their stories through virtual and augmented reality. His company has built over 200 experiences for notable clients such as AT&T, Coca-Cola, IBM ,and Delta.

Mike Blake: [00:05:04] Before starting Foundry 45, Dave served as a chief operating officer at EquipCodes, a mobile SAS and augmented reality company. Dave also serves on the boards for Georgia Tech, the Metro Atlanta Chamber of Commerce, and the MAK Historic District. He earned his Bachelor’s Degree in Marketing from Wake Forest University and his MBA in Technology Commercialization from Georgia Tech.

Mike Blake: [00:05:27] Foundry 45’s team works with global brands, as I said, like Delta UPS, IBM, and they also frequently partner with manufacturing companies and government entities. Dave, welcome to the program.

Dave Beck: [00:05:39] Hey, Mike. Thanks a lot for having me. You mentioned, you know, going to grad school at Georgia Tech. I think that’s actually when you and I met way, way back in the mid-2000s.

Mike Blake: [00:05:51] It might have been. Were you in TI:GER program at that time?

Dave Beck: [00:05:56] I was.

Mike Blake: [00:05:57] [Inaudible].

Dave Beck: [00:05:57] I was one of the first students that went through there. And I’m still pretty actively involved with the group there as well. It’s a really interesting program that combines PhD students and MBA students at Tech with law students from Emory. And I know you’ve been a big part of that group for a while too.

Mike Blake: [00:06:13] Yeah. I’ve been an adjunct or visiting instructor or special instructor in that group for a while. And you’re right, it’s a fascinating program that has actually produced some really interesting companies. You know, they are making an economic impact and not just an educational one.

Dave Beck: [00:06:32] Yeah. They were actually kind enough to let me start my first company from the fourth floor of the management building way back in 2005. So, yeah, I owe them a lot.

Mike Blake: [00:06:44] And I saw that company. I think, wasn’t it on Piedmont or Ponce de León that decrepit single floor building that could not have been more than 500 square feet? And it looked like something that the big bad wolf tried to blow down and failed. But the building itself must have been 100 years old, right? You remember that building?

Dave Beck: [00:07:05] Yeah. We were right next door to Eats on Ponce, basically, across the street from Ponce City Market. That was a great place. I think it’s actually a recording studio now.

Mike Blake: [00:07:19] That makes sense. I know there’s a lot of music that’s moved into that area. And, actually, I could see that being a very good recording studio spot.

Dave Beck: [00:07:27] Yeah. I mean, it’s in a pretty busy area. But it’s kind of off the beaten path.

Mike Blake: [00:07:32] Well, look, I think because the thing is made of solid brick, too, you don’t need that much soundproofing to make sure that you have a quiet spot too.

Dave Beck: [00:07:40] So, and the bones were great because they told us at one point it was actually a tortilla factory.

Mike Blake: [00:07:47] Oh, is that right? I didn’t know that. I mean, look, that building was run down. And no disrespect to you or anybody else, you may do with the resources you had. But that building is not going anywhere. I mean, you and I are going to be long gone and that building is still going to be there.

Dave Beck: [00:08:02] Yeah. Well, you know, the real estate there is probably worth a ridiculous amount of money right now, too.

Mike Blake: [00:08:08] Yeah. I suppose if anything’s going to get rid of that building, it’s going to be a developer, right? I think it’s not going to be time.

Dave Beck: [00:08:15] I think the Eats is the one that’s keeping developers out because I don’t know if they’ll ever move.

Mike Blake: [00:08:21] Yeah. Probably not willingly.

Dave Beck: [00:08:24] I hope they don’t move. I love that place.

Mike Blake: [00:08:26] So, Dave, tell our audience, because some of our audience may not have really experienced this, even with my background, they may not have a good handle. What is virtual reality?

Dave Beck: [00:08:39] So, virtual reality is a technology where you put on a headset and you’re basically transported to a new kind of completely digital world. You mentioned the Holodeck, I mean, it can be almost like teleportation device or a time machine. It could take you anywhere, any place. And the main thing that we use it for is training. I think that’s the killer application for VR today on the business side. And so, we do things like help UPS train their teams out sort packages or load trucks. And you mentioned Delta, we help them train people to work on the runways. You know, challenging environments to train in.

Mike Blake: [00:09:19] And I think about virtual reality, and you tell me this, one of my favorite games growing up was playing Microsoft Flight Simulator because my dad was a pilot, so I was kind of into that. And, to me, I think that was actually sort of the first widely commercially produced – I’ll call it – kind of Neanderthal virtual reality. It wasn’t an immersive environment, but it was a simulation of a flight environment that, actually even back in the ’90s, was sufficiently detailed that you could actually use that as flight training time as you prepared to kind of go solo.

Mike Blake: [00:10:00] And you know, it’s just fascinating to see where it’s come from that point now into this virtual reality now where the environments are just so detailed and the impact almost every sense as well.

Dave Beck: [00:10:16] Yeah. It’s really interesting. I’ve actually had a chance to try the $5 or $10 million flight sims at Delta. And the difference between doing that and doing something in a VR headset, they’re huge pieces of equipment with all kinds of hydraulics underneath them, big screens around you. So, it really does look like – I mean, the graphics might be a little bit Microsoft Flight Simulator from a few years back, but it’s pretty immersive.

Dave Beck: [00:10:48] And the thing there is that you get the actual feel and touch of everything that’s in the cockpit. And that’s pretty interesting from a VR standpoint, you can get a lot of the value out of that on a $1,000 headset as opposed to a $5 million sim. But what you’re not going to get is the same kind of tactile feel, at least not today.

Mike Blake: [00:11:12] And that’s where I’m kind of headed in a way. I mean, virtual reality, I think, is on the modern consciousness because you don’t have to have a $10 million dedicated flight simulator. But I would argue that those flight simulators, which have been around for 30 years, are effectively against sort of Neanderthal or Cro-Magnon virtual reality. They’re designed to create a virtual environment so that when you’re a pilot at 20,000 feet, if there’s a crisis or whatever situation, you’ve already been in that same exact environment. So, when the real thing happens, you know exactly what to do.

Dave Beck: [00:11:49] Yeah. Interestingly, the military is actually leading the way on using virtual reality in flight sim because they’re not actually beholden to quite the same regulations as the commercial airlines are through the FAA. That’s not to say that they don’t have really strong regulations.

Mike Blake: [00:12:11] But it’s different tolerances.

Dave Beck: [00:12:12] It’s different. And they’re able to be a little bit more agile with that. And the issue they have is twofold. One is that, you can’t get actual pilots on real jets nearly enough. And, two, the sims are backed up as well. And so, what they’re using VR for is to just give reps and reps and reps and reps. You know, you can have an entire room of people just sitting in a chair doing the same thing. And you’re probably getting 80 or 90 percent of the benefit that you would out of the much, much, much more expensive sim. But you can use it a hundred times more. And so, the hours rack up very quickly.

Mike Blake: [00:12:58] Yeah. I mean, for example, if I’m going to play Call of Duty with their zombie apocalypse scenario, who has the time to get, like, a whole bunch of real zombies and bullets to shoot them over and over again? It’s so much easier and cheaper if you’re doing it on a PS4 headset.

Dave Beck: [00:13:14] I mean, it’s funny you say that. But, yeah, that’s exactly right. The same thing kind of applies for things, like think about a hazard emergency response preparedness. We did an experience for the Centers for Disease Control a while back that was helping train first responders how they would deal with a crisis in a foreign country. You’ve never dealt with an Ebola outbreak in Sudan, how do you actually prepare somebody for doing that?

Dave Beck: [00:13:44] And for a lot of the disaster preparedness stuff they actually do, they really have real actors and they do a full reenactment. And that’s crazy expensive. It’s not repeatable. So, being able to do that in a virtual environment is a great use case.

Mike Blake: [00:14:04] You know, you just said something, remind me at the end of this podcast as an introduction, I need to make to you. I think if they’re using VR already, they may not. I think I may actually have a customer for you. Perfect.

Dave Beck: [00:14:16] All right. The podcast is over, let’s talk business.

Mike Blake: [00:14:20] So, now people are hearing the term augmented reality. And I describe sort of my first widespread encounter with Pokemon Go. And we’re seeing more and more of it now. Can you define for our audience what is the difference between augmented reality and virtual reality? Where do they overlap? Do they work together? Are they separate or parallel things? What’s the relationship between those two?

Dave Beck: [00:14:44] Yeah. It gets complicated. And it’s funny, there’s also the term XR, which is extended reality, which kind of covers everything. We actually have a – I don’t know – like a glossary or alphabet soup blogpost on our website, if anyone wants to really nerd out on what all the terms are.

Dave Beck: [00:15:05] But the thing is, augmented reality is augmenting your actual reality. So, it’s placing digital assets over top of the real world as opposed to, in VR, you’re completely immersed in a headset to be in a different place. Between you and me, I think it’s not binary or it’s one or the other, it’s a spectrum from if you completely include your vision, that’s VR. If you’re not included at all and there’s things out there, that’s AR. Pokemon Go is a great example, that was like the gateway drug for most people.

Dave Beck: [00:15:42] We started working in AR back in 2011, I think, and actually kind of went through a trough of disillusionment with it because there were all these just kind of cheesy marketing, gimmicky things that came out there. And then, all of a sudden, when Pokemon Go came out, it was just boom. Part of it was because, typically, you’re going to view augmented reality. Your example of Pokemon Go is you’re looking at your phone. Actually, really, what you’re doing is you’re looking at camera feed of your phone and seeing stuff superimposed there.

Dave Beck: [00:16:13] But there’s now a better hardware that are the HoloLens or Magic Leap. HoloLens is from Microsoft. People may have heard of Magic Leap. But they’re kind of goggles that actually allow you to see the real world, but superimposed things on top of it. For my money, those technologies are years behind where VR is. Because if you think of a VR headset, it’s a souped up phone, it’s a souped up smartphone. And so, all the screen, all the processor, all that stuff is actually very much just standing on the shoulders. The VR is standing on the shoulders of the whole mobile phone ecosystem.

Dave Beck: [00:16:57] It’s harder for augmented reality because if you want to make that seem real, you really need to sense depth. So, if you played Pokémon Go and if you’re standing there in your house and you look at it and Pikachu – well not that you’re ever going to find Pikachu – you’re in there, and –

Mike Blake: [00:17:15] Charizard. Call it a Charizard.

Dave Beck: [00:17:15] Charizard is actually in the table or in the sofa. It doesn’t register to actually set it on top of it. That’s why it gets to be a really hard problem. And when it’s not in the right place, you get that – have you ever heard the term uncanny valley?

Mike Blake: [00:17:32] No, I haven’t.

Dave Beck: [00:17:33] That’s when I think about a movie that has bad special effects. And you’re believing and you’re believing, but then something weird happens or glitches or Pikachu is in the middle of the floor or something, like actually under the floorboard, and it takes you out of it. So, you don’t want that uncanny valley because it totally kills the sense of immersion.

Mike Blake: [00:17:59] So, we’ve talked a little bit in a qualitative sense about the benefits of virtual reality training. Is there any data to support that it actually is more effective? It does enhance effectiveness of training?

Dave Beck: [00:18:14] Yeah. I mean, that’s actually one of the reasons why it’s such a great use case for training is because it’s a digital environment. And, therefore, you can pretty much measure anything you do. You can measure how long it took somebody. You can measure whether they did it correctly or not. And it’s not like you can’t measure those things on an e-learning, on a 2D screen, or whatever. But can you measure if you’re doing a chemistry experiment and you’re not supposed to take compound A over top of compound B. We can actually tell whether you did that or not.

Dave Beck: [00:18:48] And there’s a lot of research out there that says, you know, everything up to 80 percent more effective for things like retention. Partially, retention is so much more powerful because it really does feel like you’re actually doing it. So, basically, it’s experiential. So, you’re actually doing the thing you’re learning about. And people say do you learn more from reading a book about something or do you learn more from actually doing it? And for most people, it’s the latter.

Mike Blake: [00:19:16] It’s like Montessori School for grownups.

Dave Beck: [00:19:20] Yes. Maybe that’s all we need is like Montessori branded VR training.

Mike Blake: [00:19:25] So, what you said that I think is really interesting – and I had never thought of it, but when you say it, it makes perfect sense – is that because VR is a digital experience, which means that everything can be measured and recorded if you want to, it does lend itself to being a much more effective tool in terms of measuring performance and measuring the effectiveness of the training. And not just measuring the effectiveness but identifying, let’s say, you’re in a 20 step process.

Mike Blake: [00:19:55] I go back to the jet engine because this is the thing I have in my mind. And the person does great, except for step 16. With VR, it’s much more obvious I would imagine, because you can even play back the whole thing. It’s much more obvious to the trainer that step 16 then requires special attention and focus to get where you need to be from the entire training perspective.

Dave Beck: [00:20:21] Yeah. That’s interesting. I think you could actually think about it almost on three different levels. Actually, yeah, you can record it, and definitely a lot of people do that to be able to play it back for an instructor. Or you can even have an instructor be involved in it, kind of as the puppet master behind the scenes, controlling it on an iPad or on a laptop.

Dave Beck: [00:20:41] But then, second, you could have aggregate information where you don’t have to have personally identifiable info. But you could say, at an aggregate level, there’s 20 steps, everybody seems to be missing step 16. So, that’s the feedback that the trainers need to know, “Okay. What’s missing here?” You could drill down more and maybe find out everybody’s missing this one piece of it, or it’s not clear, or whatever. Or you can maybe test it and try two different 16s?

Dave Beck: [00:21:10] But then, if you want to get super granular – this is nerding out a little bit on training – real quick, there’s actually something called a learning management system, which is just like a content management system. And that’s where, if you go to work for IBM, Mike Blake signs in and they give you your laptop. And when you get online, it says, “Hey. Welcome, Mike. Take our sexual harassment training or diversity inclusion training. Oh, and you’re the airport -” I should have said Delta, “You’re the plane mechanic. The first thing you’re supposed to do is this.”

Dave Beck: [00:21:45] Well, you can actually have the VR training experiences live within that environment as well, so that anything you do gets put into that place. Because nobody at an enterprise level wants to actually keep the information separate. They don’t want a Foundry 45 system or a file cabinet in the corner or something that has the info on it.

Mike Blake: [00:22:06] So, I’m going to diverge because I think this is going to such a fascinating place, at least for me. It’s all old hat, too, but I’m learning as we go along. This is becoming my LMS now. VR brings in data analytics now to training that probably was not available before, doesn’t it?

Dave Beck: [00:22:24] Yeah. There’s all sorts of really cool stuff that you can do there. I was mentioning it before where, oftentimes, if you want to measure how someone does on a task, you have to have an observer, they would just sit there. And that’s kind of twofold. There’s a lot of times it’s just kind of tribal knowledge. And if Mike trains somebody versus Jim training somebody versus Sally training somebody, you know, it’s all a little bit different. So, the repeatability is there. But then, also, the repeatability on being able to tell whether they did it the way you want them to do it is also there as well.

Dave Beck: [00:23:02] I mean, there’s all sorts of biometrics stuff that’s coming out now. I mean, there’s eye tracking to see where you look. You can hook it up to a heart rate monitor. There’s actually a bunch of really interesting research that’s been done about kind of the optimal state of learning, where you don’t want it to be too easy and you don’t want it to be too hard. And if you try and keep somebody kind of in that band, if it’s getting too hard, you back off. If it’s getting too easy, you make it a little harder. It’s almost like an SAT or something that is adaptive.

Mike Blake: [00:23:40] So, what are the limitations? Let me ask this differently, what are the frontiers of VR learning and training? Where are the boundaries now that are being pushed in that area?

Dave Beck: [00:23:52] I mean, at the very highest level, everyone’s always working on better, smaller, cheaper, faster. And that sets have gone insane. I can talk more about that in a minute if you’d like. But the frontier is more on, like, haptic feedback, so bodysuits that actually you can feel the bullet hit you or they change temperature. Basically, if anyone saw Ready Player One, an omni track treadmill that allows you to actually run in any direction. And there are ones of those, and some of them work well, and most of them are a little cloudy right now.

Dave Beck: [00:24:34] But then, maybe the kind of furthest along, but is still a little ways out for me is haptic gloves. Because you’re first starting to ask is thinking, what’s one of the limitations? Well, getting forced feedback. Like, it’s hard to teach somebody – if you’re talking about that mechanic, it’s hard to teach them how to actually feel. You can’t feel the torque on the wrench. You can have a scale in the scene that shows, “You start at zero and now you’re at 70.” It stopped. Muscle memory.

Dave Beck: [00:25:04] We get to train people how to drive trains. We got some light rail training. A bunch of stuff for a bunch of different lines out in Portland recently. I mean, they have a throttle, it’s a feedback. You can feel it’s almost like you’re shifting gears in the car or something. You can feel when you get to the next one. And we spent a ton of time going back and forth about how they really wanted a physical throttle as part of the experience.

Dave Beck: [00:25:42] We could do that, but that adds additional cost upfront, just getting it to work. But more so, it’s like one more point of failure. These headsets now are super inexpensive. You can spend a $1,000 on a headset and do 20 different experiences, 100 different experiences on that same headset. Whereas, if you build a specialized thing with a throttle, you can only do that one thing.

Mike Blake: [00:26:10] So, in your experience, are there industries that lend themselves better to VR training than others? Are there industries where there’s a more natural fit?

Dave Beck: [00:26:21] You know, I think anything that’s procedural. We like to say when there’s one right way to do things. You know, if it’s A, B, C, D, E, F, G, that’s the most straightforward and it’s very easy for me to help somebody to rely on that. Because you can say, “This is exactly what you need to do.”

Dave Beck: [00:26:46] But it gets a little more interesting, maybe, even on kind of the branching narrative stuff. Think about Choose Your Own Adventure. You can do anything. If you make decision A, B, or C, it changes the way the experience ends up. That can get pretty complicated. But there’s a platform called Tailspin, for example, out there that’s doing a lot of work in that space that’s really interesting. But, basically, you can set it up and you can do anything.

Dave Beck: [00:27:18] So, softer skills type opportunities, they weren’t as easy to do. It was back to the Uncanny Valley, it was a little bit hard to have that interaction more with that person than with a piece of equipment. But that’s changed really fast. And everyday, it gets more and more immersive. There’s another one – real quick – called Varjo, V-A-R-J-O, that’s out of Europe that has a really high end one that’s super immersive.

Mike Blake: [00:27:49] Oh, yeah. That’s a Finnish company, I think.

Dave Beck: [00:27:51] Yeah. Yeah. Swedish. They have it set up so you can do pass through – I’ll try and explain this on podcast. Imagine that you’re in that digital environment, but you can actually see your hands that are in the digital environment. Because what it’s really doing is taking a video of your hands and just superimposing them over the digital. So, if you’re looking at the plane, you can actually touch the little dials in the plane and whatnot. It’s very cool.

Mike Blake: [00:28:25] So, how broad are the offerings for VR training off the shelf? And what I mean by that is – correct me if I’m wrong – my sense is that we’re at the point now where buying the headset is the easiest part. That’s sort of the easy entry point. But it doesn’t do any good unless you have software to kind of run it with. So, when we’re discussing VR based training programs, is there a wide range of off the shelf training that is available? Or do a lot of companies have to budget in, in effect, having a custom training program written for them?

Dave Beck: [00:29:07] It’s a little of column A and a little of column B. So, for things that are actually pretty common and available in 2D video format, for example, like diversity and inclusion, you know, your company doesn’t necessarily need a specialized one of those versus a different company. A lot of things that are happening in, you know, clean room manufacturing that have very similar kind of formats. Those are actually being productized a lot more now.

Dave Beck: [00:29:48] For things like the Delta aircraft engine, the question is, is Delta different enough or Boeing needs to be the one that’s actually providing that? And in the market, it’s interesting to see, whether the vendor or the actual purchaser is the one who has the need. Today, some of that’s getting pulled through from the vendor to the purchaser.

Dave Beck: [00:30:19] Oftentimes, we don’t even work with the training personnel at Fortune 500. So, oftentimes, we work with ops people because the ops people have a specific problem that’s costing them money. And they can say, “If I spend X on this virtual reality training thing, I’ll save Y. And that’s a net positive in six months.”

Mike Blake: [00:30:40] So, I’m curious as to your view on the following, in my view, my experience, I think the entry point for most people into virtual reality is some sort of entertainment function, some sort of entertainment activity. And in preparing for today’s conversation, that still seems to be the case. It seems like more people are still using VR sets for some sort of entertainment activity than they are for a work activity.

Mike Blake: [00:31:14] But my question is this, has the pandemic either forced or motivated a reckoning or reconciliation of the value of VR and AR because it’s made sort of old school analog kinds of training sort of taking them off the table? Or at least sharply reduced their availability? Does that make any sense to you?

Dave Beck: [00:31:37] Yeah. I mean, it’s interesting, I think like a lot of industries, when the pandemic first hit, the virtual reality training industry just kind of went on pause. People that were already doing work and we’re already getting value out of it, it was easy to say keep going. We do a lot of work in supply chain and transportation. Transportation, especially on the passenger side, not the cargo side, took a huge hit. So, those people all just kind of went into hibernation for a little bit. But on the other hand, supply chain went bonkers. I mean, that was pretty busy. So, it just kind of depended on the industry.

Dave Beck: [00:32:26] But I think what you’re also probably getting to is, you know, did the pandemic change how people want to actually consume technology and training? And I’d say, yes. I think everybody freaked out and said, “How do I put my normal training on Zoom?” That was kind of the first six months. And then, everybody said, “Oh, okay. Well, wait a minute.”

Dave Beck: [00:32:51] One of the cool things that we do is – you don’t have to be on the job to do on-the-job-training – we can bring the job to you. You don’t have to be on the tarmac to learn how to work on a plane. You don’t even have to be at Delta or United or JetBlue, you just have to have a headset. So, one of the challenges is getting people the headsets. Getting the headsets on their face. Because if it’s a mobile app, if it’s Pokémon Go, there’s billions of smartphones out there. So, distribution isn’t an issue.

Dave Beck: [00:33:23] The biggest friction point for a lot of folks is content distribution, because you can’t just put it on an app store and say download it. I mean, it’s getting further but I don’t think we’re anywhere close to that today. So, the companies have to manage it. And, oftentimes, that’s going to involve either you’re there in person doing it or they’re shipping them to you, which is super easy now because the vast majority of all VR that’s taking place now is on these all-in-one mobile headsets, like an Oculus Quest or HTC Vive Focus 3 or Pico. And those headsets weigh a pound, it take up a 6 by 12 box or something. I mean, it’s nothing.

Mike Blake: [00:34:07] Now, we talked about the need to customize software, potentially. What about the hardware part? I mean, you discussed the case study and train operators, for example, that trying to solve the problem of creating a realistic throttle assembly for that experience might have been prohibitively expensive and complicated. How often do you run into that? Do you find that most of the time you can just kind of use off the shelf hardware? Or should companies that are considering VR training also brace themselves to the fact that they may need purpose-built hardware as well?

Dave Beck: [00:34:48] So, we actively work to convince our partners not to use specialized hardware, just because, in my opinion, they get a lot more value by having a wide breadth. However, there are certain use cases where it does make a lot of sense. There’s a a company that we know pretty well called Serious Labs. I like their name. Serious Labs makes simulators, and a lot of what they do are for kind of bucket trucks and/or forklifts. And the forklift is pretty straightforward. But for bucket truck, that’s actually useful for scissor lifts and bucket trucks and all sorts of different excavators, whatever.

Dave Beck: [00:35:34] So, they have this purpose-built thing that you actually stand in and it’s got some hydraulics underneath it that move you around. And you have physical levers. It’s super immersive. But that same thing that you would use on a construction site is actually used on the back of a plane. You’ll see the next time you’re at the airport, you’ll get on the tarmac, a lot of times they’re back working on the planes with them. So, there are use cases for that.

Dave Beck: [00:36:05] The concern that you were bringing up, I think, is that there’s a huge cost associated with that. Well, they’re actually offering hardware service. So, you have a subscription, you might have to kind of cover the cost of the hardware, but basically it’s a hardware as a service model, HaaS.

Mike Blake: [00:36:31] Yeah. It’s not surprising it’s gone that way. We don’t know anything anymore. We’re always renting it now.

Dave Beck: [00:36:36] Just rent everything, man.

Mike Blake: [00:36:40] So, how far along do you think virtual reality is in terms of it being accepted as a serious business tool as opposed to a gaming technology?

Dave Beck: [00:36:54] I think we’re just scratching the surface right now. I mean, I don’t want to get all metaverse cheesy on you here.

Mike Blake: [00:37:02] Go metaverse.

Dave Beck: [00:37:03] But it’s interesting, when Zuckerberg came out and said that Facebook is going to be a metaverse company, and they’re actually talking about changing games now and whatnot, there’s a lot of interesting stuff going on there. I really do believe that there’s a lot to that.

Dave Beck: [00:37:23] You mentioned your Chart of the Day on LinkedIn, which I love and always check out. I do a vlog series every Tuesday at 2:00 on LinkedIn. You know, feel free to connect with me. I’m very promiscuous on there. But, basically, it’s called Foundry 45, and it’s 45 seconds-ish of quick soundbites about new technology, virtual reality, training, whatnot.

Dave Beck: [00:37:53] And my most recent one, that was yesterday, was actually with Elizabeth Strickler, who is a brilliant professor down at GSU. And she’s kind of an expert on all things metaverse. And it’s very interesting to hear what she has to say. And there’s a few other interviews we have coming up with her as well. So, I definitely encourage you to check that out. And I’m a believer, you know, I’m drinking the metaverse Kool-Aid.

Mike Blake: [00:38:21] In your experience, do people with a background of having been video game players have a greater affinity or greater ability to kind of absorb VR? And the reason I say that is because I read somewhere that, for example, in the U.S. Military, they find that video gamers tend to become very good drone operators. It makes sense, like joystick kind of environment.

Mike Blake: [00:38:47] Not that I’m trying to encourage people to let their kids become professional gamers to do VR. But I am kind of curious, does that skillset or that affinity for being in, let’s call them, light simulated environments, as a lot of games are now because they’re so immersive, do people with that kind of background have an easier time transitioning into VR?

Dave Beck: [00:39:13] I mean, anecdotally, I would say, yes. I haven’t actually seen any data around that. Maybe a slightly higher level is people that have an affinity for technology. It’s interesting because you have some folks that just don’t like new things. And I get it, we’re very conservative – I don’t mean that politically. I’m just saying in general – change is hard.

Mike Blake: [00:39:41] That’s why we have adoption curves.

Dave Beck: [00:39:43] Well, yeah. And we often find that the biggest challenge with implementing a VR training program isn’t creating the software or getting it set up. It’s change management. It’s getting people used to actually training in a different way, and realizing that it’s not scary. It’s actually fun. I mean, people like it so much sometimes.

Dave Beck: [00:40:07] Delta, the first experience we built for them out of Atlanta, they went up to the hub in Madison or the station in Madison. And the trainers just gave it to the people up in Madison to run. And they were just kind of blind to everyone else. And they were sitting in the break room at one point, and a bunch of people came in and were like, “When are we going to do that VR game? When are we going to do that game?” And they’re like, “No one has ever called training a game. No one’s ever asked to do training.” So, you know, I mean, I think that’s just an interesting kind of side effect.

Mike Blake: [00:40:39] And sort of to that point, I think one of the areas of resistance to VR, to be blunt, I think a lot of people feel silly putting one. They look awkward, right? They’re not quite at the point yet where they look like Terminator sunglasses. You got to wear sort of this helmet that looks like Luke Skywalker learning how to use a lightsaber. And it’s awkward. It’s gawky. You don’t necessarily want to have that be in your wedding photo. Are people starting to get over that? Or is part of what you do starting to condition people to realize, “Hey, this is a tool. You may look goofy.” How do you address that?

Dave Beck: [00:41:27] I mean, that’s been an issue. I can’t believe I’m giving Facebook props again here, but they own Oculus Quest and they have spent so much money on marketing. They’ve driven the all-in-one mobile headset market, which has been amazing because the other groups that are a lot easier to work with, actually, had to keep up. And so, it’s really driven innovation. It’s driven the prices down. It’s been a pretty exciting time, actually, for the last couple of years and on that front.

Dave Beck: [00:42:09] And so, when you see a bunch of commercials about it, that helps. Typically, if I’m in a corporate sales pitch or something, oftentimes, you don’t necessarily want to ask the senior most person in the room to put the headset on first because they don’t want to get all in, and not be able to see other people, and whether or not they’re laughing at him or making fun of him, or whatever. But if that person says they want to go first, you know you’re in a good place because they actually appreciate technology.

Dave Beck: [00:42:42] You know, you mentioned gaming. I mean, there’s so many cool, fun things. I don’t know, there’s something called Beat Saber, which is the most popular game ever.

Mike Blake: [00:42:51] I’ve played it. It’s a great workout.

Dave Beck: [00:42:54] You’re holding light sabers and you hit the shapes that come towards you to the beat of popular songs. And it is a great workout and it’s super fun. And so, more and more people are doing that and getting into it.

Dave Beck: [00:43:07] And back to your point before, I mean, obviously, if you’re a gamer, you’re going to be more predisposed to it. As far as getting any sort of motion sickness goes, the numbers are very similar. If you get motion sickness in a car, there’s a good chance you’re going to get motion sickness in a headset. It’s just if you have some sort of vertigo or vestibular condition, then that just might be a thing.

Dave Beck: [00:43:31] But part of the reason why it was such a talking point, there was a big disservice done to the VR movement a few years ago, when people were using smartphones and putting them in cardboard and letting people try and do these really crappy rollercoaster experiences. I mean, that stuff makes me nauseated, and I’m in it a lot.

Mike Blake: [00:43:56] I’m glad you brought that up because I was going to ask about that. And, candidly, there are parts of video games that I play, particularly ones that have you like dropping off a cliff and stuff, that they’re real enough but my body is expecting the movement, but it’s not moving. I have to close my eyes or I can’t sort of continue off of that. I think part of that is just age, where you get the thickening of the fluid in your inner ear and that’s part of the [inaudible].

Dave Beck: [00:44:26] Well, let me give a plug out, if anybody does own a Quest at home or something, there’s a game called Richie’s Plank Experience. There’s a few other things to it but, literally, the game is you’re in an elevator, you hit the top floor button, and when the doors open up, you’re looking out, like, 75th floor and there’s a two by four or two by eight or whatever out. From there, you have to walk out.

Mike Blake: [00:44:53] I couldn’t handle that.

Dave Beck: [00:44:54] And you know what? We have people that will do it barefoot so you could feel the carpet underneath your feet. And you walk out there, walk out there, walk out there, and then say “Okay. Step off,” and just will not do it. It’s like you can hear me talking, you know you’re in the living room, you feel the carpet on your feet. They will not do it.

Mike Blake: [00:45:18] I would probably be one of them.

Dave Beck: [00:45:20] That’s powerful.

Mike Blake: [00:45:20] Candidly, I do not do well with heights. If a third party doesn’t clean our gutter, the gutters doesn’t get cleaned, that’s just all there is to it.

Dave Beck: [00:45:28] You mentioned Star Trek earlier, there’s a Star Wars game that has two amazing pieces to it. One, you’re standing face to face or looking up at Darth Vader. That’s a pretty visceral reaction. And then, another one is, you’re on a cliff and it’s just –

Mike Blake: [00:45:48] Yeah. I mean, that’s some really cool stuff.

Dave Beck: [00:45:51] You might not want to do that one.

Mike Blake: [00:45:53] Yeah. That one, I’m not going to do. The one I’m really into is Star Trek: Bridge Crew, where you’re in a virtual Star Trek bridge simulator, that I really enjoyed.

Dave Beck: [00:46:03] And you don’t even have to be in a headset for that, right? You can have somebody on a headset, somebody on a computer, or whatever.

Mike Blake: [00:46:08] Yeah, you don’t. But it’s way better with the headset, in my opinion.

Dave Beck: [00:46:13] All right. All right.

Mike Blake: [00:46:14] We’re talking with David Beck of Foundry 45. And the topic is, Should I incorporate virtual reality into my corporate training? What’s the obsolescence cycle for VR? And to put it another way, let’s say somebody retains you to help them put in place a VR training system. What’s the shelf life for that? Does that have to get upgraded or replaced every three years, five years in your opinion? Can you even tell just because the state of the art is changing so quickly isn’t even a relevant question to ask?

Dave Beck: [00:46:53] I mean, it’s a great question. I think it’s actually pretty similar to a mobile app. Your mobile app has to be updated. You get downloads automatically from Apple or Google Play Store on the regular. Because any time they make a change in their operating system or when there’s a new phone or whatever, there’s new capabilities that are always better, you might want to update it for that.

Dave Beck: [00:47:23] But the good news is, for VR experience, typically, it’s going to be built on a software engine. And the main one that we use is called Unity. It’s a publicly traded company that just went public a year or two ago. And from building on that, we can deploy to any platform. And so, if HTC Vive comes out with a new platform next year, if you want to upgrade like you would upgrade to the latest greatest iPhone or whatever, then you can do that.

Dave Beck: [00:47:59] And the main thing that we would have to change, potentially, is the controllers look different and have different buttons or whatever. Then, we would have to remap to anything that was on those and/or change out pictures of those controllers. But that’s pretty much it. I mean, usually that’s like a day or two worth of work for us.

Mike Blake: [00:48:16] Okay. So, it is fairly scalable from that perspective, it sounds like.

Dave Beck: [00:48:20] Yeah. And I mean, a ton of work we’ve done over the last couple of years has been porting from these tethered, bigger, heavier headsets that are tethered to computers to these all-in-ones. And the all-in-ones don’t have nearly as much processing capability. But it’s gotten to the point where it’s a pretty easy process, that’s a week or two, probably, if you decide that you want to use a different platform completely from tethered to untethered. But going from one untethered to another is really pretty simple.

Mike Blake: [00:48:53] So, I’m going to ask you to step into your futurist hat here for a second, like that guy they always have in the History Channel, which doesn’t cover history anymore. But then, that’s a separate discussion.

Dave Beck: [00:49:04] UFOs, man.

Mike Blake: [00:49:06] UFO, I know. That’s a separate podcast. But I’m curious, how do you think VR technology is going to be different, better, more advanced in the next five to ten years?

Dave Beck: [00:49:24] You know, I really do think it’s going to get better, smaller, cheaper, faster. And overall, it will be a lot more immersive. The headsets right now, like you said, they’re pretty bulky. They can get hot. When you wear them for a long period of time, they get heavy.

Dave Beck: [00:49:41] So, there’s actually one that just came out that is called a Vive Flow, and it’s a much lighter, smaller, it’s more for watching movies, things like that in a virtual environment are really light gaming or something. And I think things like that are going to get a lot more easy, cheap, whatever.

Dave Beck: [00:50:08] And the thing that I’m really excited about – I don’t know, it’s been five years out for the last 10 or 15 years, so I don’t know if it’s really five years out now or ten or whatever – is Apple is about to put out their augmented reality glasses in 2023, I think. And you mentioned, when you have the Terminator glasses, that’s going to be a game changer, especially if they can go from completely opaque, which it would be more VR, to somewhat translucent, to being able to put cool stuff.

Dave Beck: [00:50:42] I mean, you don’t want to go too far and have too much of it, or whatever. There’s going to be a happy medium for it. Maybe it’ll be like a heads up display in a car or something. But there’s just a lot of excitement that’s happening on there, and some of that is just based on improvements in hardware, chipsets, and whatnot.

Mike Blake: [00:51:00] Dave, we’ve covered a lot of ground today. We could easily cover a lot more, but I know you’ve got to get to an Atlanta United game.

Dave Beck: [00:51:10] Vamos.

Mike Blake: [00:51:11] In case either we haven’t gone into as much depth in one particular question that a listener would like or maybe we didn’t cover something at all if they would have liked me to ask, can somebody reach out to contact you for more information about VR training? And if so, what’s the best way to do that?

Dave Beck: [00:51:28] Yeah. That’d be great. We’re always excited to talk to people that are interested in this technology. You can reach me at foundry45.com. dave@foundry45.com is my email. I am very active on LinkedIn, so please reach out to me, Dave Beck, Founder 45, LinkedIn. Every Tuesday at 2:00, we do the Foundry 45’s blog. And then, every Thursday at 10:00 a.m., we do Thursday things where we ask a question out there, is such and such a thing. And, actually, I get some great response and would love for people to join in with their thoughts as well.

Mike Blake: [00:52:11] That’s going to wrap it up for today’s program. I’d like to thank Dave Beck so much for sharing his expertise with us.

Mike Blake: [00:52:17] We’ll be exploring a new topic each week, so please tune so that when you’re faced with your next business decision, you have clear vision on 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 and Company. And this has been the Decision Vision podcast.

TRANSCRIPT

 

Tagged With: Augmented reality, Brady Ware & Company, corporate training, David Beck, Decision Vision, Foundry 45, Mike Blake, training, Training and Development, virtual reality, VR Training

Decision Vision Episode 138: Should I Hire Refugees? – An Interview with Lauren Bowden, International Rescue Committee 

October 14, 2021 by John Ray

Refugees
Decision Vision
Decision Vision Episode 138: Should I Hire Refugees? - An Interview with Lauren Bowden, International Rescue Committee 
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RefugeesDecision Vision Episode 138: Should I Hire Refugees? – An Interview with Lauren Bowden, International Rescue Committee

Lauren Bowden, Career Development Coordinator with the International Rescue Committee, joins host Mike Blake in a conversation about hiring refugees. She discussed the plethora of highly skilled talent among refugees and the role of the resettlement agency in supporting both the employee and the hiring organization. Lauren also addressed misconceptions about the process of becoming a refugee, the particulars involved in hiring refugees, accommodations such as “language buddies,” and much more. Decision Vision is presented by Brady Ware & Company.

International Rescue Committee

The International Rescue Committee (IRC) in Atlanta creates opportunities for refugees and immigrants to integrate and thrive in Georgia communities.

Since opening in 1979, the IRC’s locally funded office in Atlanta has welcomed more than 27,000 refugees from over 60 countries to resettle in communities across the state. A committed staff of professionals and volunteers work together to assist families in reuniting and rebuilding their lives in the greater Atlanta area.

The IRC in Atlanta offers a broad range of programs including resettlement and case management services, adult education classes, youth programs covering age 5 to 24, employment assistance, asset-building resources, community health response programs, and immigration services, all of which serve close to 3,500 clients per year.

Lauren also mentioned a list of resettlement partners at the UNHCR website which you can find here.

Company website | LinkedIn

Lauren Bowden, Career Development Coordinator, International Rescue Committee

Lauren Bowden works as the International Rescue Committee of Atlanta’s Career Development Program Coordinator. She has over eight years of experience in the nonprofit field and over 4 years of experience in refugee and immigrant workforce development. Lauren has worked with Microsoft, Coca-Cola, Delta, Sodexo, and other large corporations to recruit, prepare, train, and upskill their local refugee and immigrant workforce and help these companies provide empowering culturally competent work environments. To date, she has assisted over 500 refugee program participants and helped them pursue education, training, job placement, and job upgrade goals.

Lauren Bowden serves as an advisor to the City of Atlanta’s Welcoming Atlanta program and is also a member of the Global Talent Study Commission. She is a Transition Specialist for the Technical College System of Georgia and was awarded the Young Nonprofit Professionals 30 under 30 award in 2019.

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 and Company. Brady Ware is a regional full-service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:21] 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 & 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: [00:01:10] 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] Today’s topic is, Should I hire refugees? According to the U.S. State Department, the United States has admitted 3.1 million refugees since 1980. President Biden lifted the refugee limit to 62,500 in 2021, and a raise of the limit to 125,000 in 2022 is expected. In addition, the United States admitted 46,500 people on asylum, latest data available is 2019. Sixty seven percent of refugees are aged 15 and older, making most of them working age.

Mike Blake: [00:02:02] So, I wanted to address this topic – and we’ve done something like this before where we’ve talked about hiring people with criminal records and hiring people with disabilities – because we remain in a labor shortage environment. Now, as we record this on October 6,2021, the Labor Department published a very encouraging report, U.S. companies added roughly 565,000 new jobs to payrolls. That’s the biggest jump in quite some time. But there are still a lot of help wanted signs out there. Still, a lot of positions to be filled.

Mike Blake: [00:02:42] And as we’ve talked about before, there are structural issues that are curtailing the size of the labor force. Our population is aging, so people are simply retiring. Coronavirus has killed something on the order of 300,000 working aged Americans since the virus was unleashed in the country.

Mike Blake: [00:03:05] And then, I’m not going to get into the discussion in terms of what impact government benefits have played and not played. I think, frankly, because economics is a slow science, the data is just out. We may very well find out that generous government benefits did keep people out of the labor force. Or we may find that there are more structural issues, as some commentators have indicated, in terms of daycare availability and people just simply reorganizing life priorities. But maybe we’ll address that at the end of the year once we actually have data, but I’m highly disinclined to speculate.

Mike Blake: [00:03:44] But in this market, that means that we can’t afford to leave any stone unturned. And there’s a lot of labor available if people and employers are willing to maybe expand their efforts to find labor beyond what they traditionally have done. And I posted on Chart of the Day that was, I’m guessing, about two or three weeks ago now, that had shocking data. And the activities that employers had not and said they would not explore in order to add staff are just remarkable.

Mike Blake: [00:04:23] Even adding veterans, something like 29 percent of those surveyed said that they weren’t looking necessarily at veterans. I cannot imagine why one wouldn’t go in that direction. We had a show on that. Jason Jones came on that early in the program’s life, I think in 2019, to talk about hiring veterans.

Mike Blake: [00:04:43] And so, again, if you’re looking for people, we may find out from our conversation that we’re going to have with our guest, whose name is Lauren Bowden, that refugees are a place where you may look. And in some cases, if the model is similar to what we’ve seen with veterans, the handicapped, and ex-convicts, that there are resources out there that are geared to making that process easier. In some cases may be easier than just going out to the large labor markets. But I don’t want to spoil it because we have an expert here who’s going to talk about it, and I’m just going to ask questions and listen and learn like the rest of you.

Mike Blake: [00:05:21] So, joining us today is Lauren Bowden, who is Career Development Coordinator for International Rescue Committee. The International Rescue Committee responds to the world’s worst humanitarian crises and helps people whose lives and livelihoods are shattered by conflict and disaster to survive, recover, and gain control of their future. In more than 40 countries in over 20 U.S. cities, their dedicated teams provide clean water, shelter, health care, education, and empowerment support to refugees and displaced people.

Mike Blake: [00:05:55] They have helped 31 million people with access to health services. They have assisted 410,000 children under the age of five with nutrition treatment. They’ve provided 2.6 million people with clean water, 1.1 million people with cash relief, and 819,500 children with schooling and education opportunities.

Mike Blake: [00:06:19] Lauren’s role in International Rescue Committee includes providing advanced work readiness training workshops to clients covering business writing, resume creation, networking, interview skills, and goal articulation. Offering soft skill training, including help with professional dress, time management, job search skills, LinkedIn, and professional communication. Strengthening employment opportunities by developing relationships with local employers and advocating for client interviews. Developing new career pathway opportunities by encouraging local trainer partners to provide accommodation and culturally sensitive training for immigrant students and job seekers. And assisting clients with resume creation and to provide tailored job search assistance and interview preparation. Lauren Bowden, welcome to the program.

Lauren Bowden: [00:07:06] Thank you so much. I appreciate it.

Mike Blake: [00:07:09] So, Lauren, let’s jump right into it. Make the case that hiring a refugee is something that a business should explore, and not just because it might be a socially conscientious or socially conscious thing to do, but it’s also a good business decision.

Lauren Bowden: [00:07:30] Yeah. Sure, Mike. So, it really is both. You know, we talk a lot about the fact that there is a lot of mutual benefit. Yes, you’re able to help empower and help somebody who’s newly arrived find a great job. But, also, there is a lot of strategy for a business.

Lauren Bowden: [00:07:52] Businesses often spend a lot of money working with recruiting agencies, staffing agencies, temp agencies to be able to find talent. As you said, there’s a huge labor shortage. And so, businesses are spending a lot of money advertising for people trying to find talent.

Lauren Bowden: [00:08:12] And the way that most businesses will end up working with refugee talent is that they’ll partner with an agency like mine, a resettlement agency. And that resettlement agency is going to have a vested interest in doing a lot of that work for them. A lot of the work that a staffing agency, a temp agency, et cetera, might do, a refugee resettlement agency is willing and able to do all of those services for free.

Lauren Bowden: [00:08:46] So, the International Rescue Committee, where I work, we will work with businesses to recruit talent. We will go out into the community. We will flyer for you. We will set up job interviews. We’ll help people apply. We’ll even come to, like, your orientation or your onboarding, help with onboarding paperwork. So, there’s a lot of administrative burden that we’re able to relieve. And we know that there is a cost or a value associated with that. That’s one thing.

Lauren Bowden: [00:09:18] The other thing is, we are able to create dedicated talent pipelines. So, at the International Rescue Committee in Atlanta, I am all the time looking in Atlanta to see, like, where is it that we have these labor shortages, which industries, which positions do we have a huge shortage. And I will go and talk to companies and help them create programs where we are training people specifically for those roles. So, that’s the other thing is that we know you spend even more money when you’re looking for roles where there’s not a lot of talent to fill those roles.

Mike Blake: [00:10:00] Another thing is we have research now that shows us that the turnover rate for businesses that employ a large number of refugees is actually a lot lower. So, turnover obviously has a cost associated for hourly employees. We think it’s about $1,500 a person is which a company is going to end up spending any time there is a single person who leaves their job. And refugees, in comparison with non-refugee counterparts, the turnover rate is about 15 percent better. In some industries, it’s even better than that.

Lauren Bowden: [00:10:40] So, in manufacturing, there was a study where manufacturing companies that have a large refugee workforce, their annual turnover rate was about 11 percent. For those who had a large refugee workforce, it dropped to four percent. So, that is the other thing, is that, if you have a reliable flow of talent coming in, if there’s less turnover happening, you’re able to not spend as much money.

Lauren Bowden: [00:11:15] Then, the final thing I would say is, companies who hire refugees often think initially that, “Oh, I want to partner with a refugee resettlement agency just for low skilled jobs.” Refugees who come into the United States have all different kinds of talents, and skills, and educational backgrounds. A lot of them were mid or late career professionals in their home countries. And so, when they arrive in the United States, because they don’t have well-developed professional networks, they are often willing to work at below market rate.

Lauren Bowden: [00:11:50] Although, I don’t encourage people to pay them significantly below market rate. But slightly below in order to get a foot in the door, in order to be able to return to the industry that they have decades of experience. So, you can often work with people who have lots of experience, they have language skills, et cetera, and not pay them at that same premium for decades of experience.

Mike Blake: [00:12:15] So, would it be too stupid a question to ask you to define exactly what a refugee is? Is that definition important to this conversation?

Lauren Bowden: [00:12:25] No. It’s not a stupid question at all. It’s a really good question. Because I have had employers say to me, “Why do you call them refugees?” The word refugee was very [inaudible]. We’ve heard a lot of questions about it. But refugee actually is this immigration status. And the definition of a refugee is a person who has fled war or conflict or persecution, and they’ve crossed an international border to get to safety.

Lauren Bowden: [00:12:57] So, what happens is there’s some kind of crisis, the person has to leave their home country. Something about their identity that they cannot change makes it unsafe for them to live in their home country. They go to a second country, and, there, they will connect with a nonprofit, UNHCR, and file for refugee. Of all, the people who apply, actually, are eligible for resettlement in the United States because there is so much extensive vetting that goes on. It takes many years for people to get through that process and then come into the United States.

Lauren Bowden: [00:13:34] So, to answer your question, that is what makes somebody a refugee, is that they fled their home country, went to another country, and applied for refugee status.

Mike Blake: [00:13:46] So, that’s interesting. I guess on some level, I knew that, but I hadn’t really put together that that’s an arduous process. It sounds silly to say it now, but I’m just going to confirm it. It doesn’t sound like you can just sort of walk up to any U.S. Embassy or Consulate and say, “Hey, I’m a refugee. Can I come?” The U.S. Government, to my understanding, does a pretty vigorous and rigorous vetting process to ensure that somebody actually qualifies as a refugee.

Lauren Bowden: [00:14:18] Yeah. It takes years. There are medical screenings that you have to go through and make sure you don’t have something like tuberculosis that might infect the U.S. population. There are background checks. The State Department does a check. The USCIS does a check. The FBI, you have interviews. So, it’s very difficult to be granted that status.

Lauren Bowden: [00:14:45] Something I didn’t mention but another benefit to employers is rarely, if ever, do refugees ever fail a background check. So, if that’s a problem where you’re getting these candidates but they keep failing, rarely, if ever, does that happen. They’ve already been through such scrutiny. I have never seen it happen in five years that I’ve been working at the IRC.

Mike Blake: [00:15:08] So, interestingly, a refugee may in fact have the most vetting of any candidate that an employer’s going to look at. Which is interesting, I never thought of that before. Does the U.S. Government or do any state governments offer any special incentives in addition to provide jobs to refugees?

Lauren Bowden: [00:15:31] So, most refugees when they first arrive, are put on to food stamps, SNAP benefits by the resettlement agency. Ninety something percent of refugees become self-sufficient within six months. But in that first few months, most refugees are on food stamps. And because of that, they are a targeted group for the workforce opportunity tax credit for that first year, because they or one member of their family was accessing food stamps within the last six months.

Mike Blake: [00:16:11] I’m not familiar with that. I probably should be. But I’m not a very good accountant. Do you have at least some broad sense what are the benefits of that program? Is that a tax credit or is it a subsidy? How does that work broadly?

Lauren Bowden: [00:16:26] It is a tax credit. I’ll be honest with you, I don’t know the exact amount. But, yes, it’s a tax credit rather than an incentive.

Mike Blake: [00:16:37] Now, my understanding is refugees can have a temporary status, which I assume means that they may then be repatriated or a permanent refugee status. One, am I accurate? Is that true? And if so, is that something that employers are allowed to inquire as to whether or not the person has a temporary or permanent refugee status?

Lauren Bowden: [00:17:03] Sure. Yeah. Just to answer that question, refugees are able to work indefinitely. So, you know, as I was saying, only one percent of people are chosen after all this vetting to actually move forward and become refugees in the United States. And with that is a pathway to citizenship. And so, the first day that a refugee walks off the plane into the United States, they are documented and eligible for hire in the United States indefinitely. So, employers don’t need to worry about whether or not they are able to legally hire refugees.

Lauren Bowden: [00:17:49] There is some confusion because there’s a difference between somebody who is a refugee and an asylum seeker. Someone who is an asylum seeker is often afforded a temporary status. An asylum seeker is a person who came to the U.S. border and asked for asylum. And people who have that immigration status often have the ability to work temporarily until they go before the judge. And the judge decides whether or not they can have permanent status in the United States.

Lauren Bowden: [00:18:24] To answer your larger question, yes, it’s fine for an employer to ask about status. What I recommend is working with a resettlement agency that are able to help walk you through how to hire and how to understand documentation. So, you can put a refugee’s information into E-Verify. It’s easy. But just a lot of hiring managers who are unfamiliar with the kind of documentation that people get when they first walk off the plane. So, yes, it’s fine to ask, but also people shouldn’t be overly nervous.

Mike Blake: [00:19:07] So, you know, a concern I think employers have – this may or may not be an educated concern – may be any time you hire somebody that has – for lack of a better term. I don’t know the term of art is – some sort of “special status” or maybe even “protected status,” do refugees have any special protections that would – let’s say, frankly, the refugee is hired. But for whatever reason, the employer is figuring or has determined that it’s not a good match, not working out. Is there any additional risk or exposure? Or are you taking on an additional commitment by hiring a refugee as opposed to somebody who doesn’t have that status?

Lauren Bowden: [00:20:00] There’s no additional risk. Of course, like all Americans, refugees as new Americans have workplace rights. So, employers need to make sure that they’re not infringing upon a person’s ability to maintain any protected status, like their religion, or their race, et cetera. So, you’re not able to, for example, ask a woman to not wear a headscarf to work. If you insist upon that, then, yes, you’re taking on additional liability by breaking the law.

Lauren Bowden: [00:20:38] But in the spirit of your question, no. There’s no additional concern or liability that a business is taking on. And, actually, we really want to work with businesses who are transparent about what kind of issues they may face. Of course, there’s going to be misconceptions. There’s going to be cultural misunderstandings in the workplace. And we want to help smooth those over.

Lauren Bowden: [00:21:05] I mean, frankly, as case managers, it’s a lot of work for us to continuously keep trying to help people find a job and then another job, et cetera. We want to make a really good fit. And so, we have conversations with the businesses about what it is exactly that they’re looking for and ask businesses to be really transparent when things aren’t working out so that we’re able to recruit better in the future. Prepare the candidates better with better and more specialized training for those roles.

Lauren Bowden: [00:21:41] And, also, just because we want to have good relationships. We don’t ask that you hire our candidates and work with them forever. We want there to be that mutual benefit. That is good for our candidates as for the business. Our candidates don’t want to be in places where they feel as though there is some kind of resentment, or there is some kind of discomfort, they’re not an inclusive, welcoming environment.

Lauren Bowden: [00:22:08] So, we’re able to do things like create apprenticeship programs, if that’s something that the business is interested in. A working interview, where a candidate will work with the business for three weeks so that the business can kind of try out the candidate and see if it’s a good fit, address any issues upfront. We have a lot of flexibility. And the major takeaway is that, it’s important that the the needs of the employer as well as the needs of the refugee candidate are both being met, so that it’s a good fit and there is sustainability in that role.

Mike Blake: [00:22:50] So, that segues nicely into the next question that I wanted to ask. And that is, should employers be prepared to make any kind of special accommodations for refugees that might not necessarily be obvious or might not have to be made for somebody who’s not a refugee? Are there any special programs, facilities, resources that employers might want to consider or maybe have to consider making available in order for that relationship to work well?

Lauren Bowden: [00:23:24] Yeah. Sure. So, there are a lot of different accommodations that businesses can make that help them have a more reliable refugee workforce. So, part of your question is, really, what are the barriers that refugees have to employment when they first arrive. The obvious ones are the fact that there is, in many areas in the United States, lack of good public transportation and refugees often don’t come with enough money to buy a vehicle.

Lauren Bowden: [00:24:03] And so, one of the things that a business can do that make it easier to hire a large number of refugees and really rely on the refugee workforce is figure out transportation solutions. And there are a number of those. Everything from some things super low cost, like they can help us identify a driver in the community where a lot of the refugees live, and that person just provides carpool service. All the way to we have a lot of companies who have found that it is actually a better model for them to just provide their own transportation. They have a van pool that goes into the community, picks everybody up at the same time, and drives to the company. So, that is something that would be hugely successful.

Lauren Bowden: [00:25:01] I mean, I’m cautious here of the fact that I don’t want to give the impression that all refugees are low skilled workers. Refugees are a diverse group of people. There are a lot of refugees that come in and are willing to do low skilled work to get their feet under them and get stable. But there are also a lot of refugee workers who are able to buy their own car or are able to access reliable private transportation. So, that is not always necessary. It depends on what you’re trying to do.

Lauren Bowden: [00:25:36] The other thing that’s helpful is, a lot of refugees are not native speakers of English, right? So, something that can be super helpful is a willingness to hire people with an intermediate or lower English level on the condition that the business also hire some people who are fluent both in that community’s native language and also in English. We call this language buddies.

Lauren Bowden: [00:26:07] So, we’ll have a company who makes windows or doors, for example. And they will assign a few people as language buddies. They’ll pay them a little bit more. And those people are there to provide more technical or detailed instructions to people who have an intermediate language level, but speak fluently that language buddy’s native language. So, that is another thing that is helpful.

Lauren Bowden: [00:26:39] Of course, none of these are strictly necessary. You don’t have to make any of these accommodations. But the more accommodations you’re willing to make, the more likely it is that you will be able to resolve your staffing woes by utilizing this talent and working with the resettlement agency. I mean, there are a lot of things that companies just take for granted and don’t think about even in their application process.

Lauren Bowden: [00:27:15] I encourage employers, look at your application. Are people able to, with your current online application, enter their references if those references do not have an American phone number? Can they put in their education history if that education history came from a different state? Or will an automated form lock them out so they can’t even get into your application to apply in the first place, because there’s a dropdown list and their school isn’t on that list? So, these sorts of things will allow you to provide additional support and really shore up your workforce.

Lauren Bowden: [00:27:59] You know, we’re able to get people staffed. And there is a reason that I am working with a lot of companies right now who are making all of these investments. It’s not just a social decision. They have decided to provide van pools. They have decided to translate some of their forms or provide, like, little cheat sheets with jargon in the person’s language, because they get such a benefit knowing that they have this pipeline of talent, really. When you provide a really good, supportive workplace, you don’t have problems because refugees tell their friends, “Hey, this is a good place to work.” And you have too many applicants is often what happens.

Lauren Bowden: [00:28:47] So, yeah, I hope that answers your question. There are number of accommodations that you can make. And I encourage companies to work to make those accommodations because they are competing for talent. A refugee resettlement agency like me, we don’t work for the company. We work for the job seeker. And so, if there is a better employment opportunity available for our job seeker, of course, we’re going to encourage them to be in a more supportive environment.

Mike Blake: [00:29:16] So, you said a couple of things that I want to pause on for a minute because I do think they’re really important. One, in terms of the language issue, I can attest to that from the other end. Early in my career, I moved over to Belarus. Even though I had some Russian in school, there’s a big difference between learning in a textbook and being thrown on the ground. And my own experience, it takes about three months to really get from remedial to, basically, not having any language barriers anymore. So, it really doesn’t take very long to adapt to the new language. So, you know, if you can provide those transitional language buddies, I think that’s a sensational idea.

Mike Blake: [00:30:05] But, also, I would just simply, from my own perspective, encourage employers, if you’re concerned about a language barrier, even if there is one today, a little bit, there will not be one within three months. I mean, people pick up languages very quickly when they’re immersed and they have to, as I did, learn it for survival purposes. Because where I was, Minsk is the Russian equivalent of Des Moines, Iowa. They were not English speakers in Minsk other than in the U.S. Embassy. So, they’re going to face that here and they’ll pick it up.

Mike Blake: [00:30:37] The second was, actually, you touched on a question I wanted to ask and you answered a little bit, but I want to make it explicit, which is, I suspect that there is a widely held stereotype that the overwhelming majority of refugees are low skilled labor. The tired, huddled masses kind of deal. And, you know, I’ll bet you that’s not necessarily the case.

Mike Blake: [00:31:04] And, again, just going back to my own experience with Russians, I used to do a little bit of work with Russian resettlement. You know, there are a lot of people coming over that have advanced degrees in engineering and mathematics, and even people that were physicians. I mean, they wouldn’t be able to get their license here right away, necessarily. But people that are actually quite skilled that were refugees from that part of the world, not just Russia, but from Central Asia and so forth.

Mike Blake: [00:31:35] And I’d love to give you an opportunity to kind of set the record straight – whether I’m right or wrong, it doesn’t matter – are the bulk of refugees going to be low skilled labor? Or is there a high skilled labor pool out there that employers can be looking for?

Lauren Bowden: [00:31:52] Yeah. Absolutely. And thank you for that question. It’s a question I want to answer. There are so many high skilled refugees. In my State of Georgia, there are more immigrants with graduate degrees than graduate degrees among the native born population. In my case load of refugees and immigrants, I have doctors, I have lawyers, I have mathematicians, engineers. Refugees are people who, in their home countries, their lives were interrupted because of some kind of crisis. This can happen to anyone. It doesn’t just happen to people who have not had a formal education or working in some kind of low skilled job.

Lauren Bowden: [00:32:46] The other thing to think about is that, a lot of refugees do speak good English. A lot of our refugees were working with the U.S. Military in Afghanistan and Iraq as interpreters, and also as mechanics, and drivers. The U.S. Military were trusting these folks because of how good their English is and how highly skilled they are. These folks are some of the most impressive people that you’ll ever meet. I work with people all the time who have such detailed professional and impressive resumes.

Lauren Bowden: [00:33:28] A lot of countries outside the United States are placing more of a premium on STEM education than the United States is. And because of that, I have a lot of people that I’m working with right now who have a lot of IT experience, who started a computer science emphasis before they were even out of high school, because that is the way their education system worked.

Lauren Bowden: [00:33:57] Similarly, there are people who have experience doing technical skills or skilled trades. In our country, we have not put as much emphasis on those skilled trades, on trade schools. But in other countries there has been that emphasis. And so, when I call sometimes a construction firm and say, “Hey, I’ve got an electrician who wants to be recertified.” They’ll tell me, “I need 300 more.” “Of course.”

Lauren Bowden: [00:34:30] So, yeah, there is a really harmful stereotype that immigrant or refugee means a person doesn’t speak English, and doesn’t come to this country with professional experience and valuable education. And that is just not the case. There is a lot of brain waste happening. And by that, I mean people who are underemployed within the refugee community. Because when refugees first arrive, they need to get self-sufficient as quickly as possible. They don’t have cars. They need to pay their rent. They need to take care of their families. And so, they are just taking any job available to them.

Lauren Bowden: [00:35:11] I have a person who was the senior communications adviser for his country right now, who is working as a valet. He has great English. He’s worked with political –

Mike Blake: [00:35:22] We got to talk. I know somebody that needs to hire that person. So, we need to talk after the show about that person.

Lauren Bowden: [00:35:27] Let’s absolutely talk about him. I love it. Everywhere I go, I’m trying to make these connections. So, there are a lot of people that get stuck in these entry wage jobs. And they have these kind of strange gaps in their resumes because they spent years in a refugee camp. They have transitioned kind of strangely. And then, also, there are people that were professionals in their home country, but they come here and they don’t have that professional network built out.

Lauren Bowden: [00:36:02] And so, to compete with people and that same level of professionalism would mean going up against people who do have an American professional network built out. That’s probably not going to work for them. And then, they’re also overqualified for a lot of positions.

Lauren Bowden: [00:36:23] So, there are so many misconceptions about refugees. But when you hear that word, please do not think that what that means is a person who isn’t a well-educated person. Refugees are people, and like all people, they have different skill levels, different interests, passions, backgrounds, skills, languages, et cetera.

Mike Blake: [00:36:53] So many ways to go here, but here’s here’s a question I will make sure that we get in here because I do think it’s important. I speculate – and you tell me if I’m right or wrong, especially if I’m wrong, please – that refugees kind of definitionally are here because of having suffered a traumatic event. To flee your home country to another place in that way, I would imagine more often than not some sort of trauma, physical and/or mental was involved. And so, my question is, should employers have concerns that refugees may be facing particular mental challenges, it could be PTSD, it could be other things, because of the event or events or environment that caused them to become refugees in the first place?

Lauren Bowden: [00:37:52] Yeah. For sure. Absolutely. Refugees, almost definitionally, are in the United States because of trauma. The resettlement process in and of itself, because of research, is a kind of trauma. It’s very difficult to leave your home country, to be separated. There is survivor’s guilt. And then, there’s also so much to learn when you first arrive, so much that you suddenly have to adjust to very quickly.

Lauren Bowden: [00:38:33] If the question is, should the fact that these people have experienced trauma suggest to the employer that this person is not a good hire, I would definitely push back against that. I think that people who have spent years now in limbo in refugee camps are very, very eager to restart their lives, very, very eager to have stability. And these are people who are extremely resilient, who have made it through tremendous obstacle to be able to be here and bring their family here. So, I think often they’re great employees.

Lauren Bowden: [00:39:18] There are things, though, that businesses could do to provide a more trauma informed approach when they go to hire somebody. So, some of the things that you can do is provide a more inclusive and welcoming environment by making some of the accommodations that I mentioned. By being willing to have language buddies there to provide assistance when needed. Having an H.R. rep or someone there to help guide people to where they need to be on the first day of work.

Lauren Bowden: [00:40:01] A lot of what we know about trauma is that there is a big concern about retraumatization when you force people to talk and think about past experiences. So, something that hiring managers can do is just be conscious of the fact that they do not need to ask why is it that you’re here. There are other questions that you can ask. You can ask, what do you like most about the U.S.? What is the most surprising, et cetera?

Lauren Bowden: [00:40:31] Another thing is there’s a lot of additional trauma that comes from feeling isolated from community members and feeling isolated from native born speakers. So, some companies have programs where they have conversation partners, and over lunch, people in the company who are native English speakers will volunteer to essentially just have lunch with somebody who’s not a native speaker, and help them practice their English, help them socialize and make friends. All of these things can lower the stress level, make the person feel more included, and also ensure that they’re not retraumatizing by othering, isolating, and then really kind of asking that person to to talk about, you know, the most difficult parts of their life, which really isn’t relevant to talk about in work for the most part for any of us.

Mike Blake: [00:41:31] Yeah. And some of that goes to the sensitivity that is required to hire any foreign-born – I got to be careful about this. Not just foreign-born – any employee that has a cultural background that is different from the majority at that company.

Mike Blake: [00:41:55] An example that may have nothing to do with refugees, take a theoretical employee who is a Hasidic Jew. There’s a separate culture there. There are Americans. They may very well have been born here. But they have they have certain cultural and religious practices that, if you’re going to put that person in a successful work environment, that it would be wise to just be aware of. You wouldn’t celebrate national pork and shrimp day for that individual, for example.

Mike Blake: [00:42:40] And so, even just moving beyond sort of the traumatizing event – and I do think that’s important – on the one hand, you want to be curious, maybe even sympathetic. On the other hand, if you’re not trained in that conversation, you’re doing more harm than good, potentially. But some of this just goes back to, “Hey, you’re hiring somebody from a foreign country.” And it’s one thing to say, “Well, we’re an American company, so you ought to be like an American.” You can have that attitude, but then be prepared for a failed hire if that’s going to be your attitude going into it, right?

Lauren Bowden: [00:43:15] Yes. Exactly. So, you saying that made me think about the fact that I worked with The Cheesecake Factory for a while. And they had a terrible time, just they couldn’t get the back of house kitchen staffed. And we were able to place a lot of people, Rohingya Muslims. They were all from Burmese. There was a group of guys who were all working there, and really figured out the system, were able to keep the restaurant very efficient.

Lauren Bowden: [00:43:50] When it came time for Ramadan, we had to have conversations about the fact that for these folks, it was very important to be able to break their fast. They hadn’t eaten or they hadn’t drank anything all day long, and they wanted to be able to eat something, to drink, to be able to pray.

Lauren Bowden: [00:44:12] And so, the The Cheesecake Factory talked to us about that and we work something out. Obviously, it would not work for everybody in your kitchen to all of a sudden just stop working and pray. But we’re creative. We’re able to do that. We’re able to be limber. We’re a nonprofit. So, we worked with them. Everybody had, like, a quick snack and then people took shifts where they took a 15 minute break and then kind of tagged in or tapped out the next person to go and pray so that you still have a kitchen staff there.

Lauren Bowden: [00:44:48] Going back to our trauma discussion, it was very important for these folks who had experienced religious trauma and were persecuted because of their religion to be able to practice their religion and a very important religious holiday. And so, we had conversations about what that would look like and also be able to still work the busy shift.

Mike Blake: [00:45:18] Right. And, again, for someone like The Cheesecake Factory, that question was going to come up at some point, whether they are hiring refugees or not. Now that we’re in October here, it’s baseball playoff season, there’s a very famous event that happened. I think it was in the ’64 or ’63 World Series where the Dodgers Sandy Koufax, Hall of Fame pitcher, refused to pitch because he was an Orthodox Jew, and because that game was going to take place on a Saturday, he just simply would not pitch. And he was American.

Mike Blake: [00:45:57] But the point is, is that, really in our society, some of these things are not new. They may become more in focus because working with your organization, you may be hiring many people with those needs at the same time, so it becomes a much sharper focus. But, really, if you’re a company in the United States of any size, you’re probably going to face those issues and have faced them already to some extent.

Lauren Bowden: [00:46:23] Yeah. Absolutely. These issues are not just particular to refugees, you’re absolutely right. I mean, we have a wonderfully diverse country with people who celebrate all different kinds of faiths, all different ethnicities, all different practices. And if your company does not allow people to bring integral parts of their identity into work, if they have to leave those at the door, then you’re going to miss out on a lot of great talent.

Lauren Bowden: [00:47:00] It does not have to be this huge loss for you to make these accommodations. It can be something that is a learning experience for the entire organization. I think that it’s kind of hard to measure, but I think there is absolutely a value for your organizational culture to feel as though, as a company, we have decided to make these small changes because we want to be able to support the wellbeing and the identity of all the people that work there.

Lauren Bowden: [00:47:39] And like I said, there are things that don’t cost very much money or things that don’t take very much time, but they allow people to feel respected. And we know that when people feel included and respected at work, they are more likely to stay at that job. So, there is a value to the company.

Mike Blake: [00:48:01] We’re talking with Lauren Bowden of the International Rescue Committee. And the topic is, Should I hire refugees? I know we’re running out of time here and we have so many more questions we could go through, but there are a couple I want to make sure that we hit.

Mike Blake: [00:48:19] You’ve talked a little bit about, you know, what things would probably not make a company a good candidate to hire a refugee? And as you said, you work for the refugee, so I think your perspective on this would be really interesting. In your mind, as you examine or analyze a company as a potential employer for one of your clients, what are red flags? In your mind when you look at a company and say, “I don’t know that they’re ready for hiring a refugee.” Or maybe they’re just not even doing it for the right reasons. What are red flags that you look for?

Lauren Bowden: [00:49:01] Yeah. That’s a great question. So, when we talk to our employer partners, we essentially interview them. We are asking them about what the environment is like. The number one red flag that comes to mind is, when I speak with the company, and it’s pretty obvious to me that the reason they want to work with a resettlement agency is because wages for whatever position they’re trying to fill, the market rate has gone up. And instead of trying to keep up with the market rate, they’re hoping that if they hire refugee talent, they’ll be able to just sort of not have to adjust and they can just pay people less.

Lauren Bowden: [00:49:50] And there is an attitude of we are doing these refugees a favor by hiring them rather than, as I mentioned before, there is mutual benefit. We want to help people. We want to hire people. We need people. But also we want to provide a good and inclusive environment.

Lauren Bowden: [00:50:13] Other things, there are a lot of great materials that the Tent Partnership for Refugees and others have created for how to employ an onboard refugee. So, there are guides that we can give employers about how to process refugee documents in E-Verify, et cetera. There’s some documents and resources and literature that will allow you to understand that just because somebody’s employment card has an expiration date, it’s just like a driver’s license, you just need to reapply. It doesn’t mean the person can’t work anymore.

Lauren Bowden: [00:50:57] So, if we give you all of this information and there is still so much suspicion that this person should not be processed in the system, that this person is dangerous, et cetera, that would be a huge red flag.

Lauren Bowden: [00:51:14] Other things, not providing health insurance. Not being willing to make any kind of accommodation is also much a red flag. It’s just that, as I mentioned, there are companies that are doing everything they can to be able to accommodate the talent. They are providing a living wage. They have insurance. They have upskilling programs that they have made in partnership with us to help people train in-house to move to better positions. There’s some opportunity both for the company and for the refugee. Sometimes they have onsite ESL classes after work. They’re providing shift work that allows for the fact that people might be taking public transportation. Or might have split shifts with a spouse or a family member.

Lauren Bowden: [00:52:11] So, really, it is not that there are all these red flags. It’s just that if you’re not willing to make any of those accommodations, the talent is going to go to places where there are accommodations. So, you’re really competing to be a place that is inclusive, et cetera. Because then you’ll be able to have a steady stream of applicants. You’ll have that less turnover. So, that is really the way that I think we ultimately think about who’s a good partner for us.

Lauren Bowden: [00:52:45] It’s who gets really freaked out with little requests, like, “Can you print out their schedule? They don’t have a computer at home and so they can’t just look it up online.” And who is like, “Yeah. That’s nothing to us. What’s a few sheets of computer paper?”

Mike Blake: [00:53:03] Lauren, this has been a great conversation. There are questions that that are probably out there that some of our listeners had, but we didn’t get to or ones that they wished we would have spent more time on. If somebody wants to contact you directly to follow up and ask about hiring refugees and how your organization can help them, can they do so? And if so, what’s the best way to do that?

Lauren Bowden: [00:53:27] Yeah. Absolutely. So, refugees are resettled in 49 U.S. States and they are resettlement agencies. In addition to the International Rescue Committee, there are eight other resettlement agencies that are also doing this work. Chances are, if you want to hire refugees, there is an agency near you that would provide you with a lot of these free employment placement and skill training services and help connect you to this talent.

Lauren Bowden: [00:53:54] In order to find us, our website is rescue.org. And if you want to contact me or the IRC Atlanta directly, our email address is atlanta@rescue.org. And our Facebook page is facebook.com/ircatlanta. So, those are all the ways. Oh, one other thing is that, the UNHCR actually has a search bar where you’re able to put in your location and see which resettlement agencies are near your location, so that you can contact them directly and ask about hiring refugee talent.

Mike Blake: [00:54:38] Well, thank you. That’s going to wrap it up for today’s program. I’d like to thank Lauren Bowden so much for sharing her expertise with us.

Lauren Bowden: [00:54:45] 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 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 & Company. And this has been the Decision Vision podcast.

 

Tagged With: Brady Ware & Company, Decision Vision, hiring refugees, International Rescue Committee, Lauren Bowden, Mike Blake, refugee resettlement, refugees

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 136: Should I Hire a Finder to Raise Capital? – An Interview with Karen Rands, Kugarand Capital Holdings, LLC

September 30, 2021 by John Ray

Kugarand Capital Holdings
Decision Vision
Decision Vision Episode 136: Should I Hire a Finder to Raise Capital? - An Interview with Karen Rands, Kugarand Capital Holdings, LLC
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Karen Rands

Decision Vision Episode 136:  Should I Hire a Finder to Raise Capital? – An Interview with Karen Rands, Kugarand Capital Holdings, LLC

The task of raising capital for a startup is challenging at best, and outsourcing to a finder is often one avenue founders consider to attract investors. Host Mike Blake is joined by Karen Rands, President of Kugarand Capital Holdings and host of The Compassionate Capitalist Show, to cover how to find and evaluate a finder, regulations, fees, contracts, and much more. Decision Vision is presented by Brady Ware & Company.

Kugarand Capital Holdings, LLC

Karen is the President of Kugarand Capital Holdings where her extended team offers coaching and services to entrepreneurs help companies with capital strategy and investor acquisition through the Launch Funding Network and investors education, screening, due diligence, and syndication services through the National Network of Angel Investors.

Register at the contact page on the website to receive her Compassionate Capitalist Coffee Break mini video tutorials and have an opportunity to schedule a time to chat with Karen directly.

Company website | LinkedIn | Facebook | Twitter

Karen Rands, President, Kugarand Capital Holdings, LLC

Karen Rands, the leader of the Compassionate Capitalist Movement, is an authority on creating wealth through investing and building successful businesses that can scale and exit rich.

Karen turned the knowledge she gained from her corporate experience of working with startups and innovation at IBM, and the 12 years she spent managing the Network of Business Angels & Investors, one of the top 50 angel groups in the US at its peak, into the best-selling primer “Inside Secrets to Angel Investing.” Her book and the accompanying resource portal teach savvy investors how to diversify their investment portfolio to include private equity ownership in entrepreneur endeavors.Karen Rands
Karen hosts the popular business podcast: The Compassionate Capitalist Show. The weekly show is available on all the major platforms, with a library of over 240 episodes. Her chats with angel investors, VCs, business industry leaders have been downloaded over 145,000 times.

Karen also speaks to economic development, community, and corporate groups to spread the word about Compassionate Capitalism as a way to strengthen and grow our economy. Economics is a passion for Karen having received her Bachelor’s in Economics & English from Emory University before earning her MBA in Marketing from the University of Florida.

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: [00:00:36] 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 for 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: [00:00:58] 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: [00:01:26] If you 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: [00:01:44] Our topic today is, Should I hire a finder to raise money? And according to Carta, it takes about two years on average to secure funding for a startup. And according to the corporate finances to the chances of being funded by a bulge bracket venture capital fund, are less than one percent, and that’s probably being generous.

Mike Blake: [00:02:04] So, I’ve been around the startup world a little bit. And our guest who’s coming on today has really been around the startup world a lot, more than I have. And, you know, raising money for a startup is not easy and it’s not fun. Raising money for a startup means a lot of rejection, means a lot of unsolicited advice, some of which is good, some of which isn’t very good. And, you know, I think for many startups CEOs, it’s probably the part of the job that most of them like the least.

Mike Blake: [00:02:41] And, therefore, it’s not unexpected that one might anticipate that it would be tempting to outsource that task to somebody, and that somebody is typically called a finder. And we’re going to talk about specifically what a finder is. But if you’re in the startup world, you already know what a finder is. If you’re not in the startup world, but will be at some point, this conversation is going to come up, I promise, because a finder can perform, not just a very important, but actually an existentially important service for a startup. But the choice is not without its pitfalls.

Mike Blake: [00:03:20] And joining us today in this conversation is Karen Rands, who is President of Kugarand Capital Holdings. Karen’s extended team offers coaching and services to entrepreneurs to help companies with capital strategy and investor acquisition through the Launch Funding Network in investors education, screening due diligence, and syndication services through the National Network of Angel Investors. Karen Rands is the leader of the Compassionate Capitalist Movement, is an authority on creating wealth through investing and building successful businesses that can scale and exit rich.

Mike Blake: [00:03:52] Karen turned the knowledge she gained from her corporate experience of working with startups and innovation at IBM and the 12 year she spent managing the Network of Business Angels and Investors, one of the top 50 angel groups in the U.S. at its peak, into the best selling primer Inside Secrets to Angel Investing. Her book and the accompanying resource panel teaches savvy investors how to diversify their investment portfolio to include private equity ownership into entrepreneur endeavors.

Mike Blake: [00:04:21] Karen hosts the popular business podcast, The Compassionate Capitalist Show. The weekly show is available on all the major platforms with a library of over 240 episodes. Her chats with angel investors, venture capitalists, business industry leaders have been downloaded over 145,000 times. Karen also speaks to economic development community and corporate groups to spread the word about compassionate capitalism as a way to strengthen and grow our economy.

Mike Blake: [00:04:50] Economics is a passion for Karen, having received her Bachelor’s in Economics and English from Emory University before earning her MBA in Marketing from University of Florida. Karen Rands, welcome to the Decision Vision podcast.

Karen Rands: [00:05:03] Thank you, Mike. Great to be here.

Mike Blake: [00:05:05] And I’m going to try to not study here. I don’t know what the heck is wrong with me. I probably need another sip of my Earl Grey tea, but we will [inaudible]. So, Karen, again, thanks for coming on the show. I think our listeners are going to get a lot out of this. And and I want to start, for those in our audience who maybe don’t know exactly what we’re talking about so they have a shot of hanging into the conversation, what is a capital or a money finder?

Karen Rands: [00:05:31] So, typically, the finder will offer to locate investors for a company in exchange for a success fee, and that’s the commission based on what they’re able to raise. They’re most often not registered with the SEC, and that’s where it becomes a problem. But finders are also used for angel investors in startups and raising capital, but also could be a part of reverse mergers and also with merger acquisitions, trying to find people to buy a company or fund an acquisition of a company.

Mike Blake: [00:06:07] And why do companies find it attractive to work with a money finder?

Karen Rands: [00:06:12] Okay. Well, you know, the common perception, particularly with startups, is that finders are a cheap way to find capital. Because, you know, actually, if you’re only paying for a success, then it doesn’t actually cost the entrepreneur anything, right? The traditional type of finder that’s in this context, they don’t have the same types of retainers and fees like broker dealers, and the percentage that they charge on the money they raise is a lot less than a licensed broker dealer.

Karen Rands: [00:06:39] They also have the idea that multiple finders working on their deal because, since they have no skin in the game for that entrepreneur, why not have a bunch of people trying to find its capital. But the risk in this is this false sense of expectation that those finders are actually doing the work. But what can happen on the investor side, particularly in a community like Atlanta where we live in, if there’s a lot of finders working it, it might pass an investor’s desk a couple of times or they see it someplace. And they start to think, “Well, what’s wrong with this deal? This deal must stink because so many people are shopping it.” So, you know, that’s always the way that you should consider it. There’s a different way to approach it and we’ll get into talking about, but most often it doesn’t work out near as well as entrepreneurs think it will.

Mike Blake: [00:07:30] Yes. I want to pause on both those points you raised because I think they’re both interesting. And one of them, frankly, I hadn’t thought of. The first point being that, you know, it can be tempting to wish your problems away because you hire a consultant, right? And that was a lesson that my first full time boss, John Noel, taught me was never let a consultant wish your problems away. And it’s easy to let a finder wish your problems away, right? I mean, you know the deal. Raising capital is not hard and it is not typically self-esteem building either.

Karen Rands: [00:08:05] Right. Yeah. It’s very hard. And you got to have Teflon in order to deal with all the nodes and rejection that you get in the process. Exactly.

Mike Blake: [00:08:15] Right. So, I mean, it’s tempting to say, “Well, who needs it? And you’re going to take this off my plate. Yes, please. And thank you.” Now, the other part I hadn’t thought about, but I think makes perfect sense – I love you to elaborate on it, if you can – is that if you do have multiple finders in the market – and I agree with you, that’s a strategy you should do – if everybody’s on contingency, it’s all about from the finder standpoint, which is the deal that’s closest to getting close and therefore my fee. So, you want to have it out there.

Mike Blake: [00:08:49] And we both know the deals that are circulating in the marketplace and we both know instances of “those entrepreneurs who seem like they’ve been raising money for 19 years and they’re still a startup”. And there’s that deal staleness. But I hadn’t thought of the fact that finders can actually create that as well if you have the same deal coming from different angles.

Karen Rands: [00:09:12] Yeah. Right. Right. Because, you know, sometimes what ends up happening, to your point about the paid advice, if a company goes through an incubator and accelerator and they get some information, and through that process of doing that, because of the mentors, the kind of finder you want is the person that loves your deal, is mentoring you on the deal, and is happy to share it with other people because they like your deal. They like you and they’re considering investing themselves in it. So, that’s not the finder that we’re talking about.

Karen Rands: [00:09:47] The finder that we’re talking about is, oftentimes – and I, myself, have been in this position back when I was running the angel group and working with screening deals and working with entrepreneurs and investors – is that you tell them that they have to do X, Y, and Z to be investable. They might have to pivot. They might have to do more research on their marketplace, their go-to market, how they’re going to scale. They might have something fundamentally wrong, but they don’t want to hear that.

Karen Rands: [00:10:14] So, it’s much easier to go to a finder that says, “Hey, I can raise you that capital. I know these guys. I’ll put it together at lunch or at dinner or this or that. Give me five grand or pay for the big hoo ha this stuff and five percent.” And then, when that finder doesn’t raise the capital, they get to blame the finder. And the finder is just doing a side gig because, come on, if you’re not really paying them, you’re not paying the 5,000 and you’re just doing the percentage of, well, how are they paying their bills? It’s not their core thing. And they will work with the ones that are paying them.

Karen Rands: [00:10:50] And you just become the one, if I come across an investor that didn’t like the deal that I’m getting paid for and they’re in your industry, then I might introduce you because I’m not leaving everything on the table. I might get a little something, something.

Mike Blake: [00:11:02] So, that brings up so many points here. We could probably make a whole podcast just out of that last two minutes. But one thing you bring up that I think is important – and correct me if I’m wrong – my impression of the finder market is that it’s very informal. We both know it’s unregulated or quasi-regulated by the SEC, and we’ll get to that in a little while, I think. But there isn’t, like, some storefront that says finders are us.

Karen Rands: [00:11:34] No.

Mike Blake: [00:11:34] If you do a Google search, you’re not going to find, like, capital finder generally. It’s often somebody that’s doing something else kind of for their living, isn’t it?

Karen Rands: [00:11:44] Yes.

Mike Blake: [00:11:45] It could be an attorney. It could be an accountant. It could be somebody else. Or, like you said, somebody that is genuinely interested in the deal, but they want to be paid for helping to close out the round. And so, how does that change the dynamic of the relationship as opposed to most service providers where you kind of own them after you pay the fee. I perform a service as a consultant. My client, to a certain extent, owns me rightfully so. That relationship with a finder is going to be a little different, isn’t it?

Karen Rands: [00:12:19] Oh, yes. Oh, yes. Because there’s really no skin in the game on the entrepreneur side. The only skin in the game is on the finder’s side because they’re the one that’s doing all the work. And for finders that have kind of played in that space, because I’ll come across young people that haven’t been burned by any of this stuff and they think, “Oh, I know people. I was a participant in X, Y, Z incubator. I met these investors. Now, I’m going to turn around and go and help you connect it, and you’re going to give me a percentage.” And so, they have a little bit of skin in the game.

Karen Rands: [00:13:00] But if they don’t get a hit in the first half-a-dozen conversations, then they will just not keep working on it. They’re looking for a low hanging fruit. And you don’t know that they’re not working on it because they think, “Well, maybe this guy will get back to me,” or maybe whatever kind of a thing. And so, you get a false sense of stuff getting done as an entrepreneur that don’t get done.

Mike Blake: [00:13:26] You know, that’s interesting. It approaches that sort of a different angle. Something I say a lot, whereas, in a way, a deal pitch is like a joke. If the person doesn’t get it right away, no amount of explaining after that makes the joke funny. It just never happens, right? Nobody says, “Now, I get it” and just hyperventilating. I mean, they may laugh politely, so a golf applies kind of thing or people will laugh, but they’re not really laughing.

Mike Blake: [00:13:47] And deals are kind of the same way, right? And I guess from a finder’s perspective, when a finder takes that on, they probably have in mind some small group of a handful of people they think would have an interest if it’s all knows. They’re not going to make it their life’s mission, like Indiana Jones to the jungle, to find those investors. Because that’s just not their thing.

Karen Rands: [00:14:17] Right. You know, the exception is if they have to have a vested interest. Somehow there’s got to be a vested interest. And I guess we’ll get into that and how that works.

Mike Blake: [00:14:27] Now, I think a lot of people, initially, if they don’t understand the finder market, they’re often turned on to or find themselves – what we would call – broker dealers of some kind, business brokers, investment bankers, and so forth. They don’t generally like to take on fundraising deals, which is a reason I think that finders have the niche that they do. Is that also your experience? And if so, why do you think that is?

Karen Rands: [00:14:55] Okay. So, this one is one to unpack because broker dealers have historically been the only people that were licensed to be able to raise capital for projects, deals, whatever. And there’s a bunch of licenses. It’s not just one license. But they not only have the ability to find investors but handle the transaction, structure the transaction, and the exchange of capital money for the stock. They can do all of that stuff.

Karen Rands: [00:15:31] And so, sometimes when a finder or a person acts as a finder and they’re not licensed, there’s this term that they were acting as a broker dealer, or acting as an investment banker that is licensed, or acting as a business broker when they really weren’t. And so, because they weren’t licensed to do that, so they can’t act as something that they should be licensed for. That’s illegal. And that’s where you get into who goes to jail and who pays fines and those kind of things when things like this blow up, which oftentimes they don’t because it’s not really something that the SEC is chasing after.

Karen Rands: [00:16:07] So, you know, it really happens when the company doesn’t perform the way the investor expected it to perform and they file a complaint with the broker dealer. The FINRA – which is a quasi not quite a government agency bureaucracy that I’m not a big fan of because I think they’ve done more harm to the financial markets than they’ve done to protect investors – they then go in and investigate, so the broker dealer is held accountable for all of that stuff.

Karen Rands: [00:16:39] And there’s a couple of different things that broker dealers are beholden to. One is what they call, it’s basically a fair – I forget the exact terms, but it’s like a fair disposition. So, that means that they have to make that opportunity available to all of their clients and all of their dealers. So, the deal has to be big in order to get spread out, particularly if you’re dealing with a giant company like Ameritrade or Raymond James or something like that, that a wire houses. Even a small, independent broker dealer who probably has a thousand clients that they manage money for. And so, they have to make it available. It has to be fair and equitable. So, if it’s not big enough to make available to everybody, then it’s not worth doing.

Karen Rands: [00:17:36] And the fees associated with that, they usually will have between $5,000 to 10,000 a month plus fees to do their offering documents, plus big percentages. They’re allowed to charge up to 15 percent. So, if a company is needing to raise capital, a startup that raises a million, 2 million, 3 million, maybe another series A round of 5 million or something like that, that’s all still small for broker dealers. So, broker dealers just won’t really touch it.

Karen Rands: [00:18:02] And because of the regulatory investigation environment of FINRA, it’s really easy if a deal goes south and they take on the responsibility of that due diligence and an investor, “Oh. You put it into my mom’s stuff.” The son says, “She should never have invested in that deal.” Then, they can say, “Well, it was too risky for that particular investor.” And, therefore, it’s a violation of their broker dealer, there’s another rule for that.

Karen Rands: [00:18:32] And then, one of the things that an independent broker dealer or independent financial planner that just has their license hanging with somebody, there’s this fear, uncertainty, and doubt, the FUD, that comes along with what FINRA can do and not do. There’s real rules.

Karen Rands: [00:18:52] And then, there’s this idea – they call it – selling away. So, where that financial planner that has clients that might want to be angel investors gets into a bind is that even if they’re not taking a commission on that transaction – unlike real estate, because a broker dealer doesn’t do buy and sell real estate – they can disclose that they helped this investor do a commercial investment in real estate that’s part of their portfolio, and it’s not considered selling away.

Karen Rands: [00:19:24] But if they help this person do an angel investment deal put 50 grand into some startup, then it might be considered selling away because technically the broker dealer could have – even though they wouldn’t have – handled that transaction. And that independent can lose their license. And so, they steer away from it. So, there’s really no way for companies to really go to the people in the financial services sector to get that. And that’s one of the big reasons why the Jobs Act was passed bipartisanly.

Mike Blake: [00:19:59] So, you touched upon this – this is a great segue into the next question, which is that, there are risks to hiring a finder and they go beyond simply sort of the stale deal syndrome, don’t they? I mean, there are instances where a finder deal could potentially blow up if things aren’t done correctly, right?

Karen Rands: [00:20:21] Right. Absolutely. So, the SEC has these rules that, as I mentioned, if a deal has milestones and they expect and say they went through a regular or private placement memorandum, which is the document that entrepreneurs prepare to disclose the risks of their offering. And in that, it doesn’t fully disclose, let’s say. And that investor thinks that they asked all the questions, but they don’t ask all the questions.

Karen Rands: [00:20:51] And they think that this company is going to get that big deal with Microsoft. And, therefore, they’re going to make all of those projections. And in reality, they never actually had a real deal with Microsoft. They just had a conversation at a trade show, let’s say. And so, they don’t get that deal, the deal fails or the deal stumbles. And they don’t raise the next round of capital or they don’t do their stuff and they don’t fully reach the objectives.

Karen Rands: [00:21:17] And that investor can sue because they can say, “That was fraud. They said they were going to get this deal. They didn’t get this deal.” And then, under those terms, when the SEC investigates, they’ll say, “Oh, that person did commit fraud. They didn’t fully disclose the risks of that investment.” Or they used their money in a wrong way, or they used a finder that wasn’t licensed.

Karen Rands: [00:21:43] And when the SEC finds out that they used a finder, they might also find this out when that company goes to sell to a public company and the public company has to do the disclosure, or they go to go public and the SEC is looking at all their stuff and they find that. In any of those circumstances, the deal can go south and the investors have the right of rescission – they call it – where they can get all their money back that they put into the company at whatever they put it in. They don’t make any money on that.

Karen Rands: [00:22:11] But that is a recipe for the company to go out of business because they have to pay back this money that they don’t have that they spent. And that founder or that executive office that did that has the potential to go to jail, too, depending on how serious the nondisclosure are or the fraud is. And they get labeled a bad actor. And so, a bad actor is one of those things that is now in all of the Jobs Act offerings, is that, you cannot have a bad actor in that company that owns more than ten percent of the company and that kind of stuff.

Karen Rands: [00:22:46] And so, those are all kinds of things that is all new language to people that are investing in some of these companies. But that’s what happens. So, the finder usually gets a slap on the wrist unless they’ve been doing it a lot and a lot. And I got some horror stories of people that have defrauded people all over in Georgia but never got held accountable because of the fragmentation of security laws when it comes down to a state level. But then, also, the big thing is that it really hurts the company when they use finders and it gets found out.

Mike Blake: [00:23:15] So, when typically do companies use finders? In your mind, do they typically find them at the pre-seed level, or the seed level, or when they get into more institutional capital? What stage of the company’s development do they typically engage with finders?

Karen Rands: [00:23:36] It’s usually when they don’t know how to go raise with friends and family round, or when they’re raising their first seed round outside of a friends and family round. So, it’s still really early on. Because once you have real investors in your deal, because you raise money from an angel investor group and stuff like that, if you maintain good communications with those people, those investors have a vested interest to help you find other capital. Because, otherwise, their investment doesn’t grow the way they expect it to grow.

Karen Rands: [00:24:06] And so, it’s really before there are real serious accredited angel investors involved in a deal. And that an entrepreneur doesn’t know where to go, and they’ve not been able to qualify to get to an angel investor group, for lots and lots of different reasons. It doesn’t necessarily mean that the deal is not meritable. It could just be the industry that that local angel investor invests in, and they’re not in that same industry. So, they get desperate to try to find investors. And then, they’ll go and they’ll ask people and they’ll say, “Hey, I need you to go help me find investors and I’ll pay you a commission.” I mean, that’s the conversation. And they really ask that.

Karen Rands: [00:24:45] The difference is that somebody that’s professional, such as myself, that knows investors, that knows how to structure what makes an entrepreneur investable, we’re professionals. And just like a lawyer or an accountant is professional, they rarely will go file patents and do all that stuff hoping that Wednesday you’ll raise capital and then be able to pay me. They don’t do that work thinking that they might get paid in the future. They do the work for the work they’re doing right now.

Mike Blake: [00:25:15] So, we talked about some of the pitfalls here. How do you mitigate those risks? I mean, the risks are obviously out there. You still want to use a finder. I mean, do you just have to sort of accept those risks? Or are there things you can do to lessen the probability that those things will happen to you?

Karen Rands: [00:25:33] So, part of it is really validating doing your own due diligence on a finder, if you’re going to be serious. Now, first of all, you’re not going to want to do it on 100 percent commission, we already covered that. You’re not going to want to have a whole bunch of people shopping your deal, we covered that. So, what you want to do is find somebody that really has relationships with funding sources, whether they’re angel investors, private equity funds, family offices, VCs, whatever it is. They’ve got relationships with people and know how to talk the talk of investors.

Karen Rands: [00:26:06] And the second thing is that you want to compensate them for the work that they’re doing. You need to put a contract in place. And the best way to avoid the pitfalls of what the SEC might do is to be able to give them some kind of equity ownership in the company, give them a title in the company, have some kind of compensation plan, that’s based, or come up with a fixed fee, “This is what it’s worth if you raise this amount of money” so it’s not a percentage. And then, you pay them for the work they’re doing and they’re reporting to you just like a consultant does, just like anybody else does.

Karen Rands: [00:26:40] They have a Google Doc spreadsheet where they’re listing the investors that they’re talking to, the status, the meetings, and all that stuff. And that unlicensed person isn’t acting like a broker dealer. So, they’re not selling the deal. They’re making the introduction. The founder has to sell the deal. The founder has to create the documents that one of the things that that person might be, that investor acquirer, the investor introducer rather than a finder, is, they know what kind of documents those investors are expecting to see to market the deal.

Karen Rands: [00:27:16] So, the entrepreneur has created it under the guidance of this person. And then, that person takes that document. And the document sells the company to have a conversation with the founder. Or to go to a due diligence portal. So, all that information and directing it back to the entrepreneur. And that person that’s helping you will validate their level of being accredited or validate their level of interest. And then, give them access to this portal to do due diligence and keep driving, overcome the objections of the company. But, really, it’s ultimately up to the founder, that entrepreneur.

Karen Rands: [00:28:01] But the entrepreneur should have people that are in their board, people that are in their company that all have a vested interest in the success of the company. So, in that situation, everybody in the company is acting as a finder. Because everybody in the company is trying to find the capital to help the company go to that next level. And somebody you might bring on is a board of advisor, because you want to hire them. They’re a top gun in an industry that’s really going to open up doors for other capital. So, what you want to tell that person to do is say, “Look, I’m going to hire you for 100 grand -” or whatever that is “- plus stock. But you’ve got to go find an investor that’s going to put a hundred grand in this company to pay your salary.”

Mike Blake: [00:28:45] Actually, before I go on, there’s one comment I want to make because I think that’s really important. I think it’s really smart. People are surprised when I tell sometimes my clients that, “You’re actually better off, I think, paying somebody like a finder, a retainer, or at least a modest retainer in addition to their finder’s fee.” And they say why? And my answer to that is, “Well, because if you fire them, you want it to hurt them, basically.” If you fire somebody that’s on 100 percent contingency, it really doesn’t matter. And, again, whichever deal is at the top of the pile, they’re going to serve a little nibble on the line. That’s what the finder is going to go after, right?

Mike Blake: [00:29:31] But that retainer gives you a little bit of skin in the game. If I’m that finder, if I want to keep that gravy train going to keep paying some of the bills in addition to that bonus I get at the end in terms of raising capital, then I need to be doing something every month to show that I’m earning that money. And I think that you do get and are entitled to more sustained, focused effort on your deal if you do pay a retainer.

Karen Rands: [00:29:59] Yeah. It’s shared risk. It’s a shared risk model. That company is risking some capital, some of their cash flow, or something for that. And the finder is risking not getting the money that it’s really worth for their time, and knowledge, and resources, if they don’t perform, if they’re not able to do that. And it becomes a really shared value model because you want that entrepreneur to fully disclose.

Karen Rands: [00:30:28] Because if you bring a real investor to the table and the deal gets blown because of something silly, or stupid, or something that wasn’t disclosed, then all that work that that finder did is for naught because the founder couldn’t close it, it’s a term structure, all kinds of stuff, your documents, everything about it becomes more of a win-win and a collaborative approach to finding the capital.

Karen Rands: [00:30:55] Because the SEC is really clear on what finders should not be doing. And that’s the stuff that gets in trouble when you have them do that stuff purely on commission and acting at stuff. And somebody that isn’t familiar with those rules can jeopardize the company in the long run.

Mike Blake: [00:31:13] Yeah. And those things include, for example, don’t talk about valuation, right? Don’t go around with a securities price because that’ll make something look like an offering, for sure.

Karen Rands: [00:31:24] Yeah. I mean, you can share the offerings, because that’s through due diligence. You know, you’re doing the introduction and once they’re qualified that they have an interest and they have the ability to invest, then you give them the offering memorandum that the lawyer developed or somebody else developed for that company to do.

Mike Blake: [00:31:46] So, we’ve talked about finder compensation, and it’s probably an unfair question but I’m going to ask it anyway because I think you can handle it. And that unfair question is, when you’ve encountered, or maybe worked with finders, or maybe you’ve been a finder yourself at some point in the past, what sort of fee should I expect to pay? You know, typically if it’s a percentage of the deal, what percentage of the deal is going to that finder typically?

Karen Rands: [00:32:14] So, the formula that they usually use is called a Lehman Formula – I’m not even exactly sure how you spell that.

Mike Blake: [00:32:24] Lehman Scale.

Karen Rands: [00:32:24] Lehman. Lehman. There you go. So, it’s typically the same sort of thing that says it’s five percent on the first million, four percent on the next one to two million, three percent on the next two to three, and two percent on everything above that.

Mike Blake: [00:32:38] Okay. And you find that’s fairly consistent in the marketplace?

Karen Rands: [00:32:42] Yeah. Because most finders don’t raise more than a million dollars. And so, they’re going for the five percent. And most entrepreneurs that are hiring a finder, they balk at a large amount. So, sometimes a finder, some of the quasi-angel groups that let companies pitch for a a success fee, they will have a straight up five percent kind of a thing.

Mike Blake: [00:33:11] You know, that’s interesting. I just haven’t followed that market enough, so I wasn’t aware. But what’s interesting is that, that’s actually cheaper than paying a broker dealer to sell an existing business, right? They’ll charge between eight to ten percent for a business with a value of about a million dollars. So, interesting. I would argue that being a finder isn’t actually harder but the fee is lower, so I’m surprised to hear that.

Karen Rands: [00:33:39] And the other thing about it is that, if that entrepreneur chooses not to pay the finder, there’s really no recourse. Because technically the finder, if they were operating as a broker dealer and trying to sell the deal, not under some of the ways that we couched it before, then they’re going to go to court and try to get their money. Particularly if there’s not a real contract of here’s a services that were being offered and why I’m being compensated other than finding capital, then they don’t really have it.

Karen Rands: [00:34:16] And then, they also have to judge if their fee was going to be like, say, they were going to collect, you know, $5,000. Well, is it worth going and hiring a lawyer to try to go get that? So, it’s a risky world for finders out there if they don’t have the right structure or they’re trying to really fly underneath the radar of what’s legal and not legal and in the gray area.

Mike Blake: [00:34:40] Yeah. And that brings up my next question, actually, which on the surface sounds weird, but given what you just described, I think it’s very apt. Are finder’s agreements typically in writing?

Karen Rands: [00:34:55] Yes. Yeah.

Mike Blake: [00:34:57] They are. Okay.

Karen Rands: [00:34:57] I mean, there’s some. Like, if you’re doing this to test the waters, then you’ll say, “I’ll put an agreement in place with you when I find this investor that wants to invest.” And you have a verbal agreement on the fees and stuff like that. And then, you’re really involved. But like in the case of, you know, if you’ve worked with them and you did do investments and it’s 60 days or 90 days is the minimum engagement for an exclusive on that. And an entrepreneur is willing to do an exclusive because they’re going to have this committed focus and compensation on these three months with that person that’s going to acquire investors for them.

Karen Rands: [00:35:46] At the end of that, you want to have something that’s a non- circumvent because deals take time. So, if somebody you invested that you introduced them to in month two, invest month six, you still want to get paid because it happened as a result of that, even if you weren’t getting paid in month four or five and six. And so, that’s where that nonpayment comes because they might continue to work with them.

Karen Rands: [00:36:09] And if you’re not staying in touch with both the investor and the entrepreneur – because the investor doesn’t know. The investor, you know, isn’t expecting that. And investors don’t like to pay finder’s fees. And that becomes a big problem on the investor side if a finder doesn’t disclose, that’s one of the no-no’s at the SEC. If you don’t disclose that you’re collecting a fee for that introduction, then that’s a no-no.

Mike Blake: [00:36:32] So, I’m glad you brought that up. That segues right into another question I want to make sure to ask, which was, my experience is that, at least angel investors don’t love finders, don’t love paying finder’s fees. You know, you have lot more experience, much broader experience, than I do. How do investors react to finder’s fees? You do have to disclose them, as is often the case in finance. You can do almost anything you want as long as you disclose it. How do investors react to this?

Karen Rands: [00:37:08] I mean, because it’s their money, and so it’s not disclosed as a use of funds and it’s five percent of their money. Then, that’s a big chunk out of that pie chart of whatever they said, you know, is their thing. Or they’ve got it on there, say, even when they do their performance. A line item, consulting fees – you know what I mean? If it’s not in there as a use of funds, then they are in effect. It’s no different than – well, it’s a little different, but it’s almost like buying a sailboat with the money. Five percent of their money because I feel like I’m going to take a tiki vacation or something, right?

Karen Rands: [00:37:42] And so, they don’t like it. Now, if that person is bringing value to the company, like we described where they’re helping them create their documents, they’re helping them figure out what their go-to market strategy is going to be, what their capital needs are going to be over time based on their cash flow, validating the cash flow, they’re doing all that stuff and helping find capital, they have no problem paying the fees. Because it made the deal more investable and it’s helping them get that deal scalable so that the investment that they put in is most likely to produce a return on investment.

Mike Blake: [00:38:22] So, we’ve talked about kind of the regulation around this, and under the best of circumstances, financial regulation is Byzantine around finders. It’s borderline maddening. But I guess the SEC has proposed a limited exemption for finders starting last year. Where is that? Is that still under consideration? And are you familiar with this limited exemption? And if so, can you comment on what might be the impact on capital finding if it is in fact enacted?

Karen Rands: [00:38:55] So, I think it’d be terrific. I think there’s still rules, they’re still gathering info on that. They usually take a while to do that. They took a long time on the Jobs Act to work all that stuff out. And I think in some states, they’ve gone ahead and said that people can work with finders in those state, particularly on intrastate exemptions, which is one of the offerings with the Jobs Act.

Karen Rands: [00:39:26] And most lawyers and accountants and those kind of people, because they’re licensed in a different area, they may do introductions, but they don’t take any compensation because it would jeopardize their license and their field of choice. But they have relationships. And people, for whatever reason, because they’ve been around in these areas. They’ve been somebody that has mentored folks because they’re successful business person and they’ve mentored this. Or they exited out of a deal and they have a bunch of investors that they had originally raised money for and all of that stuff.

Karen Rands: [00:40:09] So, I think it would really help to open up Rolodexes for people to register as a finder. So, you would be able to know who those people are, and probably at a state level. And then, you know, it would remove that additional barrier between companies and potential investors, and it becomes a two-way street for those investor people to find deals that they may not get through their limited funnel of how they they get access to deals now based on that. So, I think it is really good and I’m hoping it gets official here soon. If it hasn’t already. I haven’t heard that it is, and I think I would have heard, but I also haven’t gone out searching to see if I could legally become a finder in such a way.

Mike Blake: [00:40:57] Yeah. I don’t think it has. I had a false start. There’s one law firm that posted some sort of blog that implied that it was. But since I couldn’t verify with a second source, I did some more digging and it was just either I’m just going to give them the benefit of the doubt to say it was a badly written blog. I think it’s all out there.

Karen Rands: [00:41:17] So, like, I know Florida, their financial commissioner – I forget the official title – he is trying to rewrite legislation down there because of these limits that their interstate has. And for your listeners, an interstate exemption is when a company in a state can generally solicit to investors within that state, accredited and unaccredited. Usually, every state has their specific rules. But the SEC modified the Reg D504 exemption to allow companies to raise up to $5 million in their state. And that works really well for established businesses that want to franchise or want to do this stuff and reach out to people that may not be traditional angel investors.

Karen Rands: [00:41:58] And the way sometimes it’s written, because legislators don’t often understand business, they may have put rules in place that really cause more of a barrier than it. And one of the things is, like, requirements of certain financials, and requirements of certain history, and requirements of certain people in the business. And so, he’s trying to fix that and then also enable people to use finders, because that way it’s a low cost way without going through a broker dealer to get access to capitals on people’s Rolodex’s legally.

Mike Blake: [00:42:38] I’m talking with Karen Rands. And the topic is, Should I use a finder to raise capital? Let me pull a 180 here. Who shouldn’t use a finder? Who’s not a good candidate to use a finder or work with a finder?

Karen Rands: [00:42:52] Yeah. I really think it is the people that do. So, there’s this thing that happens a lot of times with entrepreneurs where they’ll go, “Those investors, they just don’t get it.” And the problem is, is that the reason why the investors don’t get it is because that entrepreneur doesn’t know how to communicate their unique value proposition. Or they have real gaps that an experienced investor sees as a red flag that’s going to not have that company be successful.

Karen Rands: [00:43:31] And if the attitude of the founder is, “I know everything. So, it’s just these stupid investors that don’t get it, I’m going to go get a finder to find me the the investors that do get it.” And the investors that do get it are ending up going to be people that don’t have that same knowledge and level and skill of those sophisticated investors that know to avoid that deal. So, those are the ones that then, when it goes south, are going to be the ones most impatient about getting their money back and most likely to cause a legal action against that company.

Karen Rands: [00:44:06] So, it all kind of centers around if a company is struggling to raise capital, then there’s something that they’re not doing right within their business, or the way that they’re approaching their capital, the way they’re not doing a license. Because you get general solicit investors. You could be your own finder and find investors just by advertising legally that you’re raising capital. And so, you need a finder if you do that, but that costs money, too. So, it’s people that are trying to avoid paying money for the knowledge and the experience and the effort it takes to raise capital. And it doesn’t usually work out that way in the long run very well.

Mike Blake: [00:44:48] So, not all of these stories end well, right? You may retain one or more finders who are ultimately not successful in raising capital. How easy or hard is it to terminate the relationship with that finder?

Karen Rands: [00:45:06] Well, if you don’t have an agreement, there’s nothing. Nothing gets done. There’s no skin on either side, so it really doesn’t matter. You can just forget them. If you have a contract, then there’s usually terms. There should be terms in the contract of how you would in that contract based on non-performance. And then, if the finder is savvy, they’ll have a provision for a non-circumvent on the ones that they did find it in there. And you just would go through the procedure, that might be a 30 day cure period or something like that.

Karen Rands: [00:45:49] You might need to unravel to reach out to the investors that they talked to, to make sure that finder doesn’t say something bad about you. You know, that would be a good thing to do to make sure you now established that relationship because you’re not going to be able to depend on that finder from following up with them. And so, that’s a big thing that you need to make sure you’ve got the relationship.

Karen Rands: [00:46:11] I mean, the entrepreneurs that make mistakes are the ones that are naive about the process of raising capital, the time and materials and effort it takes to do that. And they’re trying to outsource that. Or they don’t have the skills to talk to investors. So, you could hire a coach to help you with that stuff. I mean, I offer programming and I have offered programs for that. You know, you can learn how to raise capital and talk about your business. That’s the beauty of these incubators and accelerators. And there’s a gazillion of them. There’s like over 35 of them in Atlanta. So, you could go get help on learning how to raise capital and find investors yourself.

Karen Rands: [00:46:52] And then, just accept that it’s going to take time, like you said, two years. It’s going to take time to do that. So, do what you have to do. It’s really difficult sometimes to build a business and find capital. That’s why it becomes something that all of your team can work on as part of their assignments and be in the company vested in the company, finding capital, but not operating as an unlicensed finder.

Mike Blake: [00:47:19] You mentioned all the accelerators. Now, we go back long enough where there’s basically one accelerator in town. And it’s like the new state bird of Georgia, right? It’s the business accelerator, basically. This isn’t criticism by the way. It’s awesome.

Karen Rands: [00:47:35] Well, they’re not all created equal. So, you got to, also, as an entrepreneur, do a little due diligence to make sure that they’ve got the right skillset and community that’s right for your business.

Mike Blake: [00:47:48] So, a couple more questions before we let you go. I know you’re busy. I want to be respectful of your time. But can finders be used to find capital other than seed capital? Are finders ever used to find debt or SBA lending or a purchase order financing anything of that less conventional financing form?

Karen Rands: [00:48:10] Yes. They are. So, it’s interesting about that, because I actually asked the SEC about finders through VCs. And they came back in a noncommittal sort of way that VCs are [inaudible]. But, you know, it’s all capital that regulated by FINRA rules. Well, broker dealers are the only ones. VCs are not regulated by broker dealers. And there is no investor interest. Like, there’s no harm to investors because the investors that invest the VC funds, you’re not finding investors for the VC. You’re finding a VC for the company. So, the only thing that the SEC and FINRA care about are those investors and what they put their money in.

Karen Rands: [00:49:05] So, technically, you can use a finder to go find VCs and VCs oftentimes will have a core group of people they trust to source deals that they’ve worked with. They might have been entrepreneurs and residents. They might be companies that they previously invested in. Or they got to know professional as a result of that particular company that they had invested in so they have a relationship with them. And they will pay a fee to that person that brought them the deal. And they have an agreement on that.

Karen Rands: [00:49:40] So, finders can go to VCs, also SBA. You can go find loans for entrepreneurs because, again, it’s not investor capital. It’s not regulated by the SEC. You could go to family offices. You can go to private equity funds. You can go to all of those other types of capital and find capital for an entrepreneur and it not be subject to SEC regulations.

Mike Blake: [00:50:09] I’m glad I made time to ask that question, because I didn’t know any of that, so that’s awesome. Karen, we’re out of time and I’m sure there are questions that either our listeners wish we had gone into more depth with or questions we didn’t ask at all and they wish we had asked. If somebody wants to contact you to talk more about this, can they do so? And what’s the best way to do that?

Karen Rands: [00:50:31] Well, a best way to have a live conversation like this would be to go to my website, karenrands.co, I think it’s in your show notes. And on the contact page, fill out and you say I’m an entrepreneur, I’m an investor, whatever. And it will send you a confirmation email with a link to my calendar. And you can set up a half-hour call. If you want to just ask a question, you can hit me up on Twitter, @karen_rands. Everything’s Karen Rands. On Facebook, the best way would be @TheKarenRands. That’s my public business profile. And you can just put in a comment there or send me a message.

Karen Rands: [00:51:06] And I’m happy to have a conversation or a dialogue with anybody that has questions about this topic or any other topic when it comes to raising capital, or doing due diligence for trying to validate a deal because you don’t have time, you’re not part of an angel group, and you want to validate a deal, any of those kind of things. I’m all about the compassionate capitalism of getting more companies funded, more people educated, and how to do that so our economy becomes bulletproof.

Mike Blake: [00:51:33] Well, that’s going to wrap it up for today’s program, I’d like to thank Karen Rands so much for sharing her expertise with us.

Mike Blake: [00:51:40] We will 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: Angel Investing, Brady Ware & Company, Decision Vision, finders, Inside Secrets to Angel Investing, investors, Karen Rands, Kugarand Capital Holdings, Mike Blake, obtaining investors, raising capital

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