Latest / Scrappy but Successful [Consultant's Personalities When No One's Watching] / 24. 100% Scrappy: How Drew Dowd Diagnoses Broken Businesses and Grows Them
Transcript
- 0:03What's happening everybody? Welcome to Scrappy But Successful, the show where I sit down with your favorite consultants.
- 0:10We take the comedic route through their life and find out if they're successful because they're sophisticated or scrappy.
- 0:18I'm your host Jack Tompkins, CEO of Pineapple Consulting Firm, always helping small businesses become more data-driven.
- 0:26Fun fact: the average person makes about 35,000 decisions in a single day - but what's for dinner takes half an hour.
- 0:34Today I'm joined by my friend Drew Dowd, an operations and revenue leader with an MBA that doesn't quite tell the full story.
- 0:42He walks into broken systems at companies, diagnoses them, fixes them, and watches the business grow because of it.
- 0:50Drew, we know you're successful. The question is: do you fall more on the sophisticated or the scrappy side?
- 0:56Without a doubt, I'm 100% on the scrappy side.
- 1:01Nice! We're gonna see if the data agrees with you. Where'd you grow up? Any scrappy entrepreneurs in the family?
- 1:09Not really. My great-grandfather was a sniper in World War II, my grandpa was a mechanic and drag racer.
- 1:20My dad owned an automotive shop for a while. But mostly my life was just figuring things out.
- 1:30I grew up in rural southeast Missouri. It was all about finding ways to have fun with what you had.
- 1:40My hometown was about 15,000 people. The next biggest city, maybe half that size, was two hours away. All farmland.
- 1:51A lot of my time was spent in farmland - trail riding, horses, stuff like that growing up.
- 2:00My high school - if you're familiar with Missouri - I graduated with about 330 kids. Surrounding schools had classes of 30.
- 2:10In high school? Yeah, there was candy. World's Finest chocolate. But I ended up just eating it all myself anyway.
- 2:20We also sold discount cards. That was my real intro to cold selling - walking door to door with a bike and a buddy.
- 2:31Local stores would offer discounts on these cards. It got them more foot traffic and customers more savings.
- 2:41A lot of doors got shut in my face. But that was kind of my real intro into actual selling.
- 2:51My first real job - froyo. I worked at a frozen yogurt store for about a year, year and a half, learned how the machines worked.
- 3:01After that I worked at a food truck that started as a lemonade stand at a farmer's market.
- 3:11The owner had 20 different lemonade flavors and was maniacal about the temperature he heated everything at. A genuine science.
- 3:20Then he introduced burgers. One was the Memphis King - peanut butter on a Hawaiian bun. Eventually eight different burgers.
- 3:30People just kept coming nonstop. The menu grew to 15 burger types. He couldn't handle the foot traffic, so he went brick and mortar.
- 3:41In that small town, you really only had Mexican, Chinese, and a buffet. Something different from that could actually work - and it did.
- 3:51He tracked lemonade sales week over week. That was the product people kept coming back for. He'd forecast from that data.
- 4:02He'd start prepping at 5 or 6 AM. I was responsible for the lemons - we're talking 500 to 1,000 lemons in a morning.
- 4:12You become the sous chef. You prep the buns, the condiments, and he's only doing the grill. Teamwork clicked into place.
- 4:22I didn't consciously understand systems thinking at the time, but I picked it up: if the right things are in place, it's really not that hard to have a successful business.
- 4:33He always kept saying: no matter what the customer requests, you just do it. And you take the time to actually talk with them.
- 4:44Everybody became a repeat customer. If they came one day, they were going to come back the next. No one-and-done visitors.
- 4:55I was there from ages 17 to 20. That's when a lot of this started taking shape for me.
- 5:05It didn't influence my college major directly, but it influenced how I saw how a business could function.
- 5:15In elementary school, when I'd get in trouble and had to write a sentence 100 times, I'd never write each sentence fully.
- 5:25I'd write one letter 100 times, then move to the next word. I got done way faster than everyone else.
- 5:35That connected to business: if you have consistent inputs like Henry Ford's assembly line, it applies everywhere.
- 5:45In my capstone class we ran a business simulation and those things finally started surfacing consciously.
- 5:55I have a brain that just walks in somewhere and thinks: okay, there's more money to be made here. It's instinctual.
- 6:05I was an athlete growing up. If there's a scoreboard, I'm going to find a way to manipulate outcomes to my advantage.
- 6:15Most of the time your initial instinct of what needs to change is not actually correct. It's usually just a symptom.
- 6:25I was at a company running an outbound dialing system. Appointment booking rates were dropping. Everyone said: dial harder.
- 6:35But it had been a slow degradation and the input numbers hadn't changed. So brute force didn't make sense.
- 6:45If you've read The Goal by Eli Goldratt - it's the theory of constraints. Every business has one bottleneck.
- 6:55Turns out we were only connecting with 2.5% of our leads. Not because of effort - every call was showing up as spam.
- 7:05I researched TCPA compliance, how phone systems flag spam, made some tweaks, and raised our connection rate to 10%.
- 7:15Nothing else changed. We tripled booked appointments, cut ad spend by 30%, and margins improved from there.
- 7:25A phrase I love: you can't prescribe dosages until you understand mechanisms.
- 7:35In 1962, researchers wanted to give an elephant LSD. They assumed a linear dose based on body size versus humans.
- 7:45The elephant passed out within five minutes and was dead within two hours.
- 7:55They didn't understand the mechanisms of how LSD worked in the brain or how it was metabolized.
- 8:05With the phone system: unless you understand what causes a number to flag as spam, you can't prescribe the solution.
- 8:15You have to be diagnostic. Like a doctor - understand the full body, not just height and weight.
- 8:25For the small business owner who says "we don't have a system" - everything is a system. It might just not work well.
- 8:35The most helpful thing is centralization. Just have one place where all your projects live.
- 8:45Everyone sees the same thing. Take each project, identify the high-level process, and assign an owner.
- 8:55What I uniquely think about are cognitive bottlenecks. When you don't have visibility, your mind has open loops.
- 9:05As a business owner, thinking is your single highest-leverage asset. I try to frame everything around: how do we free more of that up?
- 9:15I don't think every business needs a project management system. You just need some way to have clarity and know what's happening.
- 9:25Not anti-documentation at all. But you don't need SOPs for everything. You need them for your core revenue-driving processes.
- 9:35If you have 100% trust, most SOPs aren't needed. People would just know their job and do it.
- 9:45The real question: do people know what their job is and what "done" actually looks like? That's on the business owner.
- 9:55I helped a company go from $500K to $1M per month in revenue. Our entire project management was a Google Doc.
- 10:05We had two meetings per week: a leadership meeting for projects and a KPI meeting for department health.
- 10:15Everything else was async in Slack. No recurring one-on-ones. That's all we ran on, and we didn't need anything more.
- 10:25A lot of people use "we need to document everything" as a means of escaping something - procrastination, avoidance.
- 10:35Before you even document, you need to know what actually exists. Document how things really work now, in their less-than-ideal form.
- 10:45What you'll find is those processes aren't actually bad. People just drift, and nobody has true ownership.
- 10:55I was at the company that scaled and started as a sales rep. I was always thinking three levels above me.
- 11:05I built overly sophisticated dashboards at first and they just didn't get used because they were too complicated.
- 11:15It took three or four projects of that happening before I got the hint: usability matters more than sophistication.
- 11:25There was a period where I made a bad call - adjusted the system, and it led to about a 15-20% drop in revenue.
- 11:35I was able to fix it and run it back. But yeah, you've got to mess up a lot.
- 11:4599% of things are reversible. Fail fast. Get the feedback and fix it.
- 11:55I gear toward launching at 50% because every system still has humans interacting with it. It has to be flexible.
- 12:05If you over-engineer to 90%, half the stuff you built won't even be useful once real users touch it.
- 12:15People are smarter and more intuitive than you think. Get the bones right, and they'll tell you what to fix.
- 12:25Speed over structure. From speed you can get structure faster. I have impatient patience: patient for the outcome, impatient with the path.
- 12:35Whenever I over-thought things or was super intentional, things rarely worked out how I expected.
- 12:45Might as well go fast, see what breaks, get the feedback. That's also just what keeps me personally engaged.
- 12:55Lightning round. Booking a meeting: do you say "I'm free Thursday afternoon" or send a calendar link?
- 13:05Sending a calendar link.
- 13:10How do you answer the phone for someone you know? Usually just "yo." If I don't recognize the number: "this is Drew."
- 13:20Voicemail or text? Text. Work from the couch? Maybe 30 minutes a month.
- 13:30If I'm on the couch, that's relax mode. I have to be at a desk or a cafe. Only two options.
- 13:40Office setup: the big monitor plus the laptop propped open. Dream setup is three monitors, but I haven't needed it yet.
- 13:50I've got a docking station. No weird lighting maneuvers unless it's cloudy - then I have to tie the cheap stand to the desk.
- 14:00I bought the expensive light, but the cheap stand. It just falls over. I have to tie it off with a coin.
- 14:10Workspace: not exactly clean. Allergy medication, phone holder, a tablet I don't even use. Color-coordinated books in the background though.
- 14:20I'm probably borderline psychotic. I'll get on a stint where I need the books color-coordinated but everything else is chaos.
- 14:30My productivity app is a notebook and a pen. The most important things I will remember. I won't forget them.
- 14:40I used to do Notion boards. Found that I was just procrastinating. Give me pen and paper, I'll get more done.
- 14:50Sold something I'd never done before? Yes. Telecom and cybersecurity, a $3-4K per month phone system deal.
- 15:00I just said we'd do it, went back, the engineers weren't thrilled - but they said it was figureoutable. Ended up working out.
- 15:10At the media agency I'm at now, a client asked us to completely rebrand their website and logo. Owner said: yeah, we do that all the time.
- 15:20We had to outsource half of it. If you're confident it's figureoutable, say yes and figure it out.
- 15:30Most scrappy gift moment: when my wife got back from her bachelorette party, I completely forgot I was supposed to get her a gift.
- 15:40Went to Trader Joe's, got five-dollar flowers and a card. But I have a fountain pen, so I wrote calligraphy on the note.
- 15:50Took two hours to write six to ten lines of calligraphy. But it worked - it's in a frame on the wall now.
- 16:00Last-minute scrappiness turned into a forever memory. That's the scrappy mindset at its best.
- 16:10How do you define success with clients? From the high level: did the business grow ethically?
- 16:20Profit volume is always number one. Revenue staying in range without margin - what are we doing?
- 16:30In a restructure phase, it's individual KPIs. In a growth phase, it's profit volume. Depends where you are.
- 16:40I'm a data nerd - it's everything to me. But data tells me where to look. It doesn't necessarily tell me what to do.
- 16:50Close rate is a lagging indicator of prior actions. That's not actually a lever you can pull.
- 17:00The only way to find the real lever is through the data. Data tells you where to look - not what action to take.
- 17:10Drew, thank you so much for coming on. 100% scrappy. There's sophistication in there, but we're calling it scrappy all the way.
- 17:20Anything you want folks to know? Ways to connect with you?
- 17:30Connect with me on LinkedIn - just Drew Dowd. I'm very responsive on there and I love connecting with people.
- 17:40That's how we connected - it works folks. 100% scrappy. Drew Dowd, everybody. Thanks so much for listening.