Latest / Exit Algorithms / From RN to Serial Entrepreneur: Building a Business You Can Actually Sell | John S. Smith Jr. (#64)
Transcript
- Pete, Exit Algorithms: Welcome to exit algorithms, the podcast where we decode what it really takes to unlock growth, streamline operations, and prepare your business for a high value exit. I'm your host, Pete Vera. And today I'm excited to bring on John S Smith Jr. He's a registered nurse turned serial entrepreneur, certified exit planning advisor, keynote speaker, and founder of Prestige healthcare resources. John, super excited to have you here. Welcome to the show. John S Smith, Jr, RN, BSN CEPA: Thank you so much. I'm excited. Thank you for having me here. Pete, Exit Algorithms: Absolutely, yeah. ⁓ I love your background. Do you mind sharing with the listeners who haven't heard of you, some of your journey and venture into business? John S Smith, Jr, RN, BSN CEPA: Yeah, thank you for that. I started my career as a registered nurse, you know, because I've always been close to the patient and also been a frontline reality of care, right? And over time, I moved to leadership and then I realized that there's a lot of challenges, changes that happen in health care that is not clinical. It's not a clinical issue, but the problem is operational. So that kind of get me and pushed me into executive role. Then I've been focused on performance improvement, scaling teams, stabilizing organization, then eventually I began to make a shift into entrepreneurship. So in 2009, that's actually when we actually started CFK Resources because we don't want to be a solution, right? Not just a money problem, right? Solution is there, how do we really, mean, problem is there, but how do we find a solution that works for the patient, for the population? So my journey has just been About bridging the clinical insight with business execution right? Clinical is different Business is different, but how do you breed that execution? So that's what I bring to play and now I'm laying AI on top of that right to drive the NERSC evolution of FKM Pete, Exit Algorithms: Hmm. Yeah, wow, that's exciting. ⁓ Yeah, can you talk a bit more about, know, Prestige Healthcare? ⁓ What do you what exactly, you know, who do you serve? And maybe what is the some of the hardest parts of scaling your business? John S Smith, Jr, RN, BSN CEPA: Yeah, so Perceptive Care Resources is, initially when we started, right, it's a continuous journey as an entrepreneur, start, you have this passion, you start from somewhere that you discover over time what are things that you can do, right? So initially when we started, we started as a home care company, we provide home care services for elderly population. Then from there, we now moved to, we do staffing, medical staffing for different companies. Then we begin to realize where can we get the most where can we solve the most problem, right? How can we bring system instruction in place? So in 2018, then we begin to diversify into the mental health, behavioral health services. our main focus population has been those who are underserved, those who are homeless, those who need support in the community, specifically the Medicaid population. So those are the population that we actually serve. specifically at this time. Pete, Exit Algorithms: Got it. ⁓ And yeah, were there any challenges, you know, growing growing that that business? How was that process? So when did you decide to, you know, take on more employees and things like that? John S Smith, Jr, RN, BSN CEPA: It's been very, very challenging to say the least because if you don't have the playbook in terms of how that will work, then it becomes more challenging. Especially if you are in a small business, mid-business, middle market organization, right? You don't have that playbook or secret sauce that all this big enterprise company has. So everything we do, we have to start from the scratch. So remember when we signed 2009, actually it's funny because I used to work in a hospital setting. The last hospital job that had was working as an OR, Operating Nurse, right? We used to do a lot of surgical procedure and everything. I resigned from that position, got home, and told my wife that, look, I resigned and no longer working. She said, like, are you out of your mind? I said, I don't know. I just want to do something different. She said, OK, I hope you know what you're doing. I said, I hope so too, right? So that time, we're just employee of But she supported me all through that time. So we just two staff employees started business in two bedroom condo, right? There from there we grew the business from that two employee in 2009 to at this time we have more than 300 employees and then we have about two or three locations, right? But along the line to your point is not an easy journey because you have to learn a system. You have to learn a structure. You have to learn how Pete, Exit Algorithms: Bye. Wow. John S Smith, Jr, RN, BSN CEPA: to do with people, have to learn a lot, you have to learn. And as a nurse, clinicians, we don't learn that in the nursing school. You don't learn that in school. So all those things I learned that along the line as we're building, it's like you are flying the plane, you build it at the same time, right? You're building it at the same time. So that's basically how we've been doing it. it's challenging like any other businesses, but it's very, very rewarding because when you begin to see the impact that is making the community and population then it ought to work all the effort. Pete, Exit Algorithms: Yeah, man, that's awesome. Yeah, I imagine you have to have some meaning in your work to, you know, withstand that grind and I'm sure sleep hasn't been a priority in those growing years either. John S Smith, Jr, RN, BSN CEPA: Yeah, for you got a lot of sleepless now and I've really asleep about two three or four hours in the day like I went about 12 midnight today I've been up since 4 o'clock. I treat area this morning unfortunately, that's Difficult, but I just part of the you know part of the issue right about all the game Pete, Exit Algorithms: Yeah, man, no, it's awesome. It's impressive. ⁓ And I see you're really into fitness also very, you you keep your body and your health front and center. ⁓ What does your regimen look like around that? John S Smith, Jr, RN, BSN CEPA: Good question. So... Every day I'm up at 4.30 right like today I woke up a little bit earlier but 4.30 every morning then five o'clock I'm at the gym five o'clock so I work out from five o'clock to six 15 6.30 and then I head home right so that's what I do every almost every day then that's Monday Monday Wednesday Friday then Tuesday Thursday I do a lot of cardio so Monday was Wednesday Friday I do weightlifting all those things then. Wednesday, Tuesday and Thursday I do cardio. Then on the weekend I do a lot of stretches and then I do cardio as well depending on what is going on. Then every month I do about go for three hiking trips every month right. So my goal for this year to do 30 hiking trips. So this year already this is what this is May I've done about 13 already so now I get about maybe you I have not edited this month that I am to 2 3 more this month. So right now I have been on track with those for the year. that is pretty much my workout, wellness regimen because what good is the body? What good are you if you have all these things and you don't have a body to use it? What does that look like? It doesn't make sense. So I drink my own medicine. consumer of my own solution or what I preach right so that's pre-machine Pete, Exit Algorithms: Yeah, man, that's really impressive. ⁓ And I love that philosophy too. And I think it helps ⁓ when you're, you know, yeah, you're advising people, you're doing, taking your own advice as well. Man, that's awesome. Yeah, and you said you, you you layer in AI in your healthcare business. ⁓ Do you mind elaborating a little bit on that? How are you leveraging ⁓ AI? And yeah, what do you John S Smith, Jr, RN, BSN CEPA: Yep. Pete, Exit Algorithms: what are some of your processes around that. John S Smith, Jr, RN, BSN CEPA: And that's a good question ⁓ because AI is not, this AI has been around for the past what, years, right? So for the past two, three years, we've been kind of hearing about AI. What does that look like? I wasn't really like pay attention to that literally or to begin to see that, okay, I think we need to pay attention to this now because like everything is like solution driven and solution that we experiencing now, you have to incorporate AI. to some of the solution. So today we are using AI to reduce admin boarding, right? Because if you are in healthcare, there's a lot of administrative boarding that is in there that sometimes it can really, you can be stressful. And 93 % of healthcare provider reported a burnout, right? Reported a burnout. So because of that, we have to really incorporate AI into what we are doing. And also we also use AI to streamline our workflow as well. Pete, Exit Algorithms: Mmm. John S Smith, Jr, RN, BSN CEPA: because in healthcare, it's a lot of multiple workflow, right? And also, it's a lot of decision making that has to be done. So we use that to really kind of leverage that. So we also like a documentation support, right? Workflow automation, operational insight, right? So that will create a real impact. So we're using AI in those areas. So we can see exactly what is happening tomorrow, what will happen tomorrow in the future and begin to be ahead of that. A few weeks ago, ⁓ I was tagged that, okay, I'm gonna be an AI evangelist in the healthcare space, right? So I'm gonna be the evangelist really talking about AI, making sure that we be able to, ⁓ because healthcare is always the last. industry to adopt technology but this time we shouldn't be the last to adopt the country we should be the one at the forefront of it because every human every citizen of this country touches health care touches health care so why should we be the last one to adopt technology that is Pete, Exit Algorithms: You John S Smith, Jr, RN, BSN CEPA: the problem, the solution we bring into the mainstream so that people can know that we should not be the one afraid of the healthcare, I mean the technology, should not be afraid of AI, we should be at the forefront of that, education so that we can get a better outcome. Pete, Exit Algorithms: Yeah, yeah, 100 % agree. I think, you know, it's people don't necessarily think of AI as in the healthcare space as like one of the first things to do. But if it makes your operations so much more efficient, you know, why wouldn't you implement it? Prevent, prevent burnout? Where do you see it, you know, affecting your industry the most? John S Smith, Jr, RN, BSN CEPA: Is that? Yep. Pete, Exit Algorithms: in ⁓ moving forward. John S Smith, Jr, RN, BSN CEPA: Biggest issue we have right now in the industry is the adoption, right? That's the main thing. The adoption of AI is the main thing that we're looking at. There will be challenges. And to really address those challenges, you need somebody in the healthcare space who can speak the language to really talk to the staff, clinicians, physicians, social workers, therapists on the benefit of utilizing AI. it's AI, right? Especially when it comes to, for instance, authorization, for instance, right? It's a lot of admin boarding that goes into authorization for patient before you can provide the services for the patient, right? With the help of AI, there's a lot of repetitive tasks that could be automated where it can help their staff to focus on what's most important and spend more time with patient than admin boarding. Pete, Exit Algorithms: Yeah, it makes a ton of sense. imagine to, you know, your background coming from the kind of the clinical side of the business probably helps you a lot as you grow and, you know, enter the, you know, enter the business side as well, knowing where to automate and or what what processes are most ripe for AI automation, right? John S Smith, Jr, RN, BSN CEPA: Yeah, absolutely. I mean as an AI, as a healthcare expertise, right, or specialist, right? So it gave me a pattern recognition that I cannot fake, right? You cannot fake it, right? This and that, right? So I understand what is happening on the floor, right? So when I make a decision, they are grounded in reality, not just a spreadsheet, right? You know, also build credibility, right? Because clinicians trust the leader who have been in their shoes. Right? And most of these vendors, they are not clinicians. They set product. I mean, there's no, no offense to them, but I'm just saying that that is something sometimes difficult for staff to resonate to them. Right? So that trust is what translate into better execution, stronger team, and ultimately a better outcome. Because now I with their language, I know exactly what they're going through and I can really relate to them and help them to really improve their operational processes. Pete, Exit Algorithms: Yeah, wow, now it makes a ton of sense. ⁓ You've been in their shoes, exactly. Yeah, I want to also, I saw you're a SIPA or Certified Exit Planning Advisor. ⁓ When you consult with businesses, what are some things you recommend to get their business in order for, because a business has to be in a great place financially and, organized in order to be ready for a sale. I'm curious from a SIPA perspective, what are some of those things that you know that you recommend business owners implement? John S Smith, Jr, RN, BSN CEPA: Yeah, so some of the things that we do, right? Like we have a new brand, right? That actually focus on AI specifically that addressing this need for business owners, not just Hineske, but business owners as a whole, right? I it your lifestyle navigator. That's the of my company. Your lifestyle navigator. So I founded a company three years ago. I've already been doing a lot with it, but for the past month, I'm like, you know what? Let's bring this back to 44 and the reason why I find the company is that we have so many providers or business owners, right? They do, they run businesses, but instead of running business, business is running there, right? They don't have a lifestyle. They don't live life in the way that they can have the freedom that they wanted, right? So, so I'm like, everything's only about lifestyle. And if you don't really have that lifestyle and you are running a business, guess what you got? You got a job. That's what you got, you got a job. So, what buyers are looking for when they the business is trading? Pete, Exit Algorithms: Hmm. John S Smith, Jr, RN, BSN CEPA: I think you kind of mentioned one of those already. Looking for predictable revenue is one. You must have that strong leadership, right? And system that does not depend on the owner. Okay, let me repeat that again. Predictable revenue, strong leadership, and system that does not depend on the owner. Pete, Exit Algorithms: Mm. John S Smith, Jr, RN, BSN CEPA: What most owner get wrong is, they built a job, not a business. What does that mean? It means that... every relationship, every decision, every operation is surround around them. Right? And when they do that, that kills scalability and also evaluation. Right? Because if I'm buying a company, everything is dependent on you and you want to exit, so what am I buying? Pete, Exit Algorithms: A job. John S Smith, Jr, RN, BSN CEPA: Probably nothing, right? So, and also some of them also underestimate the importance of clean financial and operational data, right? So, but for buyers, want clarity, a covenance, not chaos. That's what bias is looking for, right? And real life experience, I learned this that way, to be frank. I learned this the hard way, myself personally, because we acquired a business about two or three years ago, ⁓ doesn't have a very strong leadership stuff. We acquired a business and we had to a lot of effort just to get the business going. It took us almost a year and half just to get the business stabilized. What if that business already have a system in place is a shipping place, then it's more like a plug and play, right? So I learned a lot from that and I'm like... Nope, if you don't have a strong leadership, you need to have your bench. You need to have your bench. So imagine you go to basketball, right? This is how I coach some of these companies, right? Imagine you you love the basketball, right? You go to basketball. Why do you think a basketball team has somebody on reserve? So in case someone get injured, right? So they can get what? Replacement. In case somebody got hurt, they can have someone to take place of them. So if they have that, like the basketball, how much more a business that you have and you don't have a bench, you don't have a replacement, you don't have anyone to take your place, right? So, I learned to understand that if you don't have a bench, you need to start looking for bench. Look for a bench. Pete, Exit Algorithms: Mm-hmm. Hehe. John S Smith, Jr, RN, BSN CEPA: If you don't have that, nobody's gonna, not gonna, it won't be, it'll never be attractive, right? You basically have to be attractive, right, for a buyer to come in and give you a better valuation. Pete, Exit Algorithms: Yeah, ⁓ I love that. That's a great, great analogy. I don't know why I haven't heard that one before, but that's, that's perfect. That's gonna make a great ⁓ clip, I think, John. But yeah, and you, you say ⁓ AI also is part of that a bit, right? You, you mentioned at the beginning. ⁓ Yeah, how, how does that, how does that play in? John S Smith, Jr, RN, BSN CEPA: course. So good question. So right now, this is the perfect time, perfect time for any business owner to systematize and automate their business. Because this is even much easier than it used to be before, right? I can sit right now and write an operating SOP, right, for a workflow from a company in less than two minutes right now with the help of AI. Right now, I can write a business plan with marketing strategy in less than three minutes by the help of ⁓ AI. I had a webinar last week with a group of people, about 70 people in real estate company, and I showed them on how I can actually do a social media campaign. I show them in real life, We log in, screenshot. I show them in less than three minutes. Marketing campaign, calendar, script, and everything just like that, right? In less than three minutes, right there. So before it takes you a long time, have to look for marketing agency, you to look all those things. I'm saying that to say that if you are a business owner, and you are not leveraging AI to optimize your business to have a system of processing place, you are doing yourself a disservice. Because what people buy is people buy a company that has a system and process in place so that things can be predictable and then they can increase your value. Because the more system and process you have in place, it increases the value. They are not just looking at your, you can have Pete, Exit Algorithms: Hmm. John S Smith, Jr, RN, BSN CEPA: Yeah, you can have a good returns. can have your A beta can be good. You have a great A beta. But if you don't have that system instruction in place, nobody's going to look at you or they will just, you know, they just shall change you, right? They give you maybe one or two X multiple as opposed to five to seven X multiple. Pete, Exit Algorithms: Yeah, wow, that really powerful. ⁓ Man, thank you so much for sharing all this wisdom today, John. ⁓ At the end, I always forced my guests if they could narrow all of their knowledge into one recommendation for a business trying to scale and plan a successful exit, what would that be? John S Smith, Jr, RN, BSN CEPA: You start building your business like you are going to sell it today, even if you are not ready yet. So that means that you are in document processes, you build your leadership team, clear up your financial, reduce dependency on yourself. So the earlier you start doing this, the more option you got and increase the value of your. business and you create the down line that is most important. and only now it give you freedom that you wanted. But that's all we wanted, wanted freedom, wanted a better lifestyle, we wanted to a generational wealth through that. So most people they don't know that the business is that gateway, is that tools that help you to build generational wealth so that you can focus on something else as you get older and you can help yourself in the future. Pete, Exit Algorithms: Well said. Yeah, very well said. Thank you, John. ⁓ Man, great conversation today. I loved it. Got a lot out of it myself. Where can listeners ⁓ learn about you? Find more. John S Smith, Jr, RN, BSN CEPA: ⁓ You can go to yourlifestylenavigator.com yourlifestylenavigator.com. So that is where we actually doing a lot of coaching, a lot of AI optimization when it comes to enhancing your business with AI. That's where that is. And also I have a program called Nest. So Nest program is actually focusing a lot on how you can edit, what does that look like? And then we also have a lot of ⁓ two assessment, I can do less than three minutes and that can show where your business is and what you need to optimize in your business. Pete, Exit Algorithms: Great, sounds like a really valuable tool. If you leave it in the show notes, it'll be easy to find you. Leave your socials as well in case they want to see you get motivated by your workouts. Thanks for your time today, John. Great talking to you. John S Smith, Jr, RN, BSN CEPA: Absolutely. Send me a ticket.