Latest / Profit With A Plan / EP310: Scaling Smart: Private Equity, Profit & Purpose with John Brooks

Transcript

EP310: Scaling Smart: Private Equity, Profit & Purpose with John Brooks · Profit With A Plan

• 0:07
  Marcia Riner | Profit Booster®: So what does it take to scale from 4,000 to 37,000 in assets with private equity, backing
• 0:14
  Marcia Riner | Profit Booster®: on this week's profit with a plan. I'm joined by John Brooks, CEO of Warehouse on wheels, which is acronym, is Wow, which is cool. It's a private equity, fluent leader who's helped scale and reshape multiple businesses into multi location and multi-million dollar powerhouses from just 2 locations in 2018 to 35 offices and 37,000 trailers across us
• 0:43
  Marcia Riner | Profit Booster®: in North America, John has architect is, has architected. Wow! Their explosive growth while delivering massive returns for their investors. So if you're thinking about scaling, exiting, partnering with investors. Then this is the episode that's going to give you the blueprint for sustainable success.
• 1:08
  Marcia Riner | Profit Booster®: Hey? Entrepreneurs! Are you working too hard for too little profit. Well, welcome to profit with a plan podcast where we help you scale smarter, increase profitability and build a business that's worth more, whether you keep it or you sell it.
• 1:21
  Marcia Riner | Profit Booster®: I'm Marcia Reiner, business growth strategist and the profit booster behind infinite profit. And I've helped countless entrepreneurs to turn their businesses into highly profitable and sale ready assets. So they enjoy more income now, and a bigger payday later on. So join me for practical strategies, expert insights, and proven steps to make your business more profitable, more valuable and built to last.
• 1:46
  Marcia Riner | Profit Booster®: Today's episode is sponsored by infinite profit. Where we don't just talk profit, we deliver it.
• 1:52
  Marcia Riner | Profit Booster®: But before we dive in, I have something special for you. And what if you thought, maybe, that your entire marketing system might be able to run smarter, faster and simpler. Starting today
• 2:05
  Marcia Riner | Profit Booster®: the profit booster marketing hub is built for busy business owners who are trying to make better leads, smarter automations, and more sales without hiring a bigger team or learning complicated tech
• 2:18
  Marcia Riner | Profit Booster®: for a limited time. You can get a free 30 day trial of the full suite at profitboosterbiz. All right. So let's jump into today's episode. Our guest today is John Brooks, CEO of warehouse on wheels, one of North America's fastest growing trailer rental providers providing or servicing businesses across the Us. Mexico and Canada.
• 2:43
  Marcia Riner | Profit Booster®: since joining the company as the 1st CEO in 2018, John scaled wow! From just 2 locations to 4,000 trailers in over 35 offices and 37,000 units on the road.
• 2:58
  Marcia Riner | Profit Booster®: He's a two-time Inc. 5,000 leader, Ernst, and young entrepreneur of the year finalist and a multi time multiple time. If I can get my mouth to work. Acg, dealmaker of the year with decades of experience, building private equity backed companies. John brings a unique perspective on growth, leadership and delivering exceptional returns. John, welcome to profit with a plan I'm excited to have you on today.
• 3:27
  John Brooks: Thanks, Marcy. It's an honor to be here.
• 3:29
  Marcia Riner | Profit Booster®: Yeah, so this is cool. So 1st of all, I just love your concept of having warehouse on wheels, which are those trailers that you can. You can lease and rent to companies that need temporary, you know, extra space. So that was a brilliant marketing idea.
• 3:47
  Marcia Riner | Profit Booster®: and I know you couldn't have done it just on your bootstraps. So how did you get into the the PE space, the private equity space.
• 3:56
  John Brooks: Yeah, so I am now, I guess. A 7 time tour of duty executive with PE. So I've made a career. As I left Arthur Anderson. I like to say I was there till the end, rearranging the deck chairs on the Titanic, because that thing was going down. I was, bless. I was blessed to have an opportunity to step into a Cfo role with a private equity backed company. We had an extremely successful exit.
• 4:22
  John Brooks: And I think when you start that high off that high of that success, it just kinda says, Okay, this may be my niche. And so my career has sort of worked its way through a number of different opportunities like that. And then, ultimately, I was a customer of my largest competitor here in Cincinnati in the mobile storage space.
• 4:41
  John Brooks: and
• 4:43
  John Brooks: I looked at it one night and thought, Well, maybe we should buy those trailers. And then I started looking at the unit economics, and I thought, no, maybe I should just own that company. And so that was really the the impetus for why I wanted to get into this business, and and we've just had such a blessed run since 2018. We got started.
• 4:59
  Marcia Riner | Profit Booster®: Yeah phenomenal run. You know. If you could put the little unicorn on your forehead, then you'd work perfectly with that with that phrase right?
• 5:09
  Marcia Riner | Profit Booster®: Because not every company is gonna come. And they're gonna have the smarts, the know-how, the systems, the the ability to take somebody else's money and turn it into really high multiple returns, but yet still kind of control their own company, because you know, from what I hear most times the PE comes in. The the owner or founder is kind of pushed to the side, and everybody else runs the show for them.
• 5:35
  John Brooks: Sure. Now, that's definitely, I think the stereotypical view of private equity. So I think it's why it's important for people that hear this to really do the due diligence on their partners and understand their track record, and and really almost interview them if you will. There is so much in the way of capital in the market dry powder, as we'll call it, for investment, that
• 5:57
  John Brooks: most instances will have multiple suitors. And that's good as a seller, obviously, but it also then creates that opportunity for you to really understand and do your own due diligence. Who are you who you marry? Really in all senses of the word.
• 6:12
  John Brooks: So it's it's definitely a challenge for for owners. The other challenge, I think, is, they're used to be in their own boss, and and now they have a board of directors and and other people that they have to answer to. So that's a big culture shift. And so again selecting that right partner becomes mission critical.
• 6:27
  Marcia Riner | Profit Booster®: Oh, exactly. But you know, before we get into that a little bit more, let's kind of set the groundwork.
• 6:34
  Marcia Riner | Profit Booster®: why would someone want somebody else's money to help them grow their business. I mean.
• 6:40
  John Brooks: Absolutely.
• 6:40
  Marcia Riner | Profit Booster®: Yeah. But let me let me throw that one back to you.
• 6:43
  John Brooks: You know, here's how I positioned it the last time we sold this business is as we stood in front of these potential investors, I said. Look.
• 6:50
  John Brooks: we've built a rocket. We've designed the flight pattern. We know where we're going. We need jet fuel. And and so that really is the the motivator, I think, for the private equity groups to participate. One, because they know. Then we're gonna lift that rocket off and we're gonna get the right returns but 2. It helps that management team who has a vision, a dream, a structure. Accelerate. That path.
• 7:15
  Marcia Riner | Profit Booster®: What a great description of when you're going to need that money right? You know you've got everything going, and and you do need rocket fuel in business sometimes, because there's so many other things that you want to do. And if you're the visionary like like you are, and I am, you know, you see the potential of where it can go and map it out, and it's like, usually you're carrying an anchor along with you
• 7:38
  Marcia Riner | Profit Booster®: of of either your wallet or your team members that can't quite get that momentum going. So having those kind of partners that can
• 7:47
  Marcia Riner | Profit Booster®: see it with you
• 7:48
  Marcia Riner | Profit Booster®: and go, yeah, let's do this. I mean it just to me. It sounds tremendously fun, you know, to have people that have deep pockets that wanna
• 7:59
  Marcia Riner | Profit Booster®: to trust you and then want to invest in you.
• 8:02
  John Brooks: And it really is a self. Well, I wouldn't say self filling but once once you get kind of one of them under your belt. It just becomes that flywheel where you, you build the brand, the trust.
• 8:12
  John Brooks: the the understanding that that you know how to run the playbook. And so that 1st one's tough. You got to pick the right partner, but when you hit it right on that 1st one it can be very, very rewarding.
• 8:23
  Marcia Riner | Profit Booster®: Yeah, I bet. And then they're lining up afterwards, when you hit the next one, they're like, Okay, so what else do you got, John?
• 8:28
  John Brooks: The hope.
• 8:28
  Marcia Riner | Profit Booster®: No, you did so great on the 1st one. Let's do the second one right, and for us crazy entrepreneurs, you know, we will probably never retire. We'll just sell and buy some, start, something else.
• 8:39
  John Brooks: We just keep growing our trailer business. So there's there's all these different levels of firms that the guys that want to participate when you're kind of sub 10 million of Ebitda, or even a million dollars of Ebitda. And then there's these different tiers of firms. So as we outgrow that firms kind of
• 8:55
  John Brooks: bandwidth there's there's a whole other universe of firms that you get access to.
• 9:00
  Marcia Riner | Profit Booster®: Wow! It's great. So are you privately or publicly held right now.
• 9:04
  John Brooks: Privately held.
• 9:05
  Marcia Riner | Profit Booster®: So is there a dangle of a carrot to go public.
• 9:09
  John Brooks: Maybe.
• 9:09
  Marcia Riner | Profit Booster®: I mean, that's a whole. Another nightmare right there.
• 9:11
  John Brooks: Yeah, yeah, maybe sometime in our future. And I often comment to folks that when that happens there'll probably be another guy sitting in this chair, so I'm not sure about, you know, having come through the Arthur Anderson ranks. I'm not sure I'm a public company kind of Guy, but I enjoy building them along the way.
• 9:26
  Marcia Riner | Profit Booster®: We'll have it. Love it. Okay? So then let's talk about how maybe we do set ourselves up for success when we're taking other people's money, whether it's a private equity firm. Or maybe it's a self-funded group of people that decide they want to buy in for you. How do you manage that for success?
• 9:49
  John Brooks: You know, I think 1st and foremost, you need to run your business as a business. So many entrepreneurs will run their business as a lifestyle. And so it just complicates the process when things like this arise. So for an outside investor to make a decision about whether or not to participate in a business
• 10:06
  John Brooks: if the numbers are complicated with the lifestyle of the entrepreneur all the expenses associated with that, while it may be a fine tax strategy and and fit for the day before that. It just really makes that much more difficult. So I would tell you, having your house in order. Really making sure books, records, all those sorts of things are tight and ready to go.
• 10:27
  John Brooks: And then the other thing again, I think it is that dating process of understanding who you're gonna partner with and and understanding what the rules of engagement are, gonna be, you know, is it a controlling interest? So they're gonna have 51%, and you're gonna have 49, or some version thereof, and all that's negotiable in the early days, and probably
• 10:44
  John Brooks: easier to negotiate early on in the process, when everybody's interested and excited. And so I think, having your house in order, I think, understanding the partners you're you're evaluating, and you're going to pick. And then 2 laying the ground rules of what's the day. One kind of operating mindset.
• 11:01
  Marcia Riner | Profit Booster®: Yeah, because you can end up pushed aside very easily if you don't have that kind of relationship laid out and set out. And I think it's easier for the business owner to get pushed aside when they don't have a solid plan that would allow them to get in, and then they choose the wrong partners that are a little strong, arming them and and off to the side. But in reality.
• 11:26
  Marcia Riner | Profit Booster®: if if I understand PE correctly, there's a window of opportunity that they're looking for. Right? It's a period of, you know, 3, 5 years is just as an example that they're saying we want to get from here to there, and then we want to exit.
• 11:44
  Marcia Riner | Profit Booster®: And and I think that's what sometimes scares business owners as well when they're bringing on a PE is. Maybe I don't want to exit.
• 11:53
  John Brooks: Well, the good thing is most firms has been my experience. They want the owners or the the CEO of the business at the time to stay with the business and to reinvest in the business. So, for example, we have sold this business from 1 1 sponsor, one PE firm to another already in our history. And so, as we did
• 12:13
  John Brooks: part of what the second sponsor was buying was the management team, the the intellectual property, the vision, the business plan, all those sorts of things.
• 12:23
  John Brooks: and they encouraged us to reinvest with them at that event. And so.
• 12:29
  John Brooks: as an owner, I think the the issue becomes one. How long do you want to stay in the business? Is this ultimately your exit plan, this this initial sale? And if it is, you need to make darn sure you've got some sort of management team in place to carry on the business because it
• 12:44
  John Brooks: it produces another risk for financial investors that don't. They don't typically want to run the businesses. They want to be engaged, they want to know. And so you got to have that backstop. But if you want to stay with the business, those are always on the table, and and really something that I think they encourage, especially when you put your money where your mouth is.
• 13:02
  Marcia Riner | Profit Booster®: I like it well, that's encouraging to those that are always, you know, they've heard the negative side of PE. And now we're exposing a very positive side of PE. You know that rocket fuel that can really help you get to the area. You can. You can almost taste right.
• 13:20
  Marcia Riner | Profit Booster®: And and to have that kind of feeling that you've got a partner that can drive you there, help you there, support you mentorship financially. Structurally, I mean, I know there's a lot of pieces that PE companies can bring in. What kind of other things can PE companies bring to the table when they're looking for when they're looking to partner with a company.
• 13:44
  John Brooks: Yeah, I think one of the things that I found very rewarding personally is if you pick the right partners, there's the ability to grow the personal wealth of your team.
• 13:52
  Marcia Riner | Profit Booster®: Who is.
• 13:52
  John Brooks: So we've actually instituted a program all the way through all levels of the organization that the next time the business is sold every employee will benefit financially beyond their just paycheck and bonus structure. So if you find the right partner.
• 14:07
  John Brooks: and since the the missions aligned.
• 14:10
  John Brooks: oftentimes there's opportunities for you to build a structure where your team can reap financial rewards that in some instances can be, you know, life changing. And so I think that's an exciting part of it. It's another tool in the toolbox that when you have that right partner, you're able to bring to your team members and add value to them personally.
• 14:30
  Marcia Riner | Profit Booster®: Oh, that's amazing. That's kind of like an esop, right? You know where you're.
• 14:34
  John Brooks: A lot of ways. Yeah.
• 14:35
  Marcia Riner | Profit Booster®: Yeah, where you're building out the the employee owned. So they're getting shares of the future company which creates that amazing buy in on
• 14:44
  Marcia Riner | Profit Booster®: their their work opportunities, their their level of engagement, the production that they give, because now they're striving to build that company the way the owner does. So I love that idea there. Okay, do they often come in and want to help with leadership and direct them in better ways? Or are they expecting the leadership to be strong on their own.
• 15:08
  John Brooks: You know, I think they're about enhancing it. And and because, again, if you, if their goal is ultimately to sell the business, they want to position the business in the best way possible for the next owner. We often talk about leaving some runway for the next guys, and so if you invest in the management team, the leadership team, their personal development
• 15:28
  John Brooks: strengthening some some weak spots in the team as you step in. That's all value creation ultimately. And so there's a big motivation to do that. So I, you know, in this particular instance, we've added to our senior leadership team
• 15:41
  John Brooks: between ownership groups as they've seen opportunities. And in ways we're gonna grow they've allowed me to invest heavily in our learning and development. We literally have a member of our management team that is the director of our organizational learning and development. He's a Phd. Out of the university setting.
• 16:00
  John Brooks: So I I found a frustrated Phd. Over in the university setting and brought him on our team. And now we've designed this wonderful learning and development work, and that's all been supported by the financial partners that are behind us.
• 16:11
  Marcia Riner | Profit Booster®: Wow! And that's amazing. Again, it sounds like they're adding tremendous value to the company culture as well as the bottom line and the opportunities that are in front of you, that now you can grab because you're bigger, better, stronger.
• 16:26
  John Brooks: Absolutely. I agree with that.
• 16:28
  Marcia Riner | Profit Booster®: Wow, I love this. Okay. So now that we've talked about the benefits of of a PE relationship that could really boost, let's talk a little bit about the exit on that. What generally happens and what's a typical timeline.
• 16:45
  John Brooks: So
• 16:47
  John Brooks: assuming you're you're not sponsor owned or PE owned at the time, and you're exiting to them. Oftentimes you can expect you'll you'll hire an advisor of some sort. So whether that's an investment banker or a lawyer depending on your trusted advisor network that you have.
• 17:03
  John Brooks: And they they basically run an auction process.
• 17:06
  Marcia Riner | Profit Booster®: Okay.
• 17:07
  John Brooks: So you'll be asked to put together a, a book and a data room. So an online repository of all your information.
• 17:15
  John Brooks: and then they'll market your business just like you'd market a piece of real estate.
• 17:19
  John Brooks: and you'll receive inquiries and so forth. That process could be a 6 month process from start to close might encompass a year even, and it can be pretty distracting to your teams if you're not well prepared. So I would tell any of the entrepreneurs stepping into this, find the right advisor. So the right investment banker, the right legal advisor, you know not your family lawyer that did your trust, but someone that's done. M. And a work.
• 17:44
  John Brooks: Yeah.
• 17:44
  John Brooks: And we we've done about 20 acquisitions in this business, and God bless them! Almost every one of them has taken us to their buddy, the attorney, to work the deal, and it's like it. It always works out. We've never lost one but man. Some are harder than others because of that. So get good advisors.
• 18:01
  John Brooks: Yeah.
• 18:01
  John Brooks: kind of buckle in, because it it'll be a distraction if you let it. And if you're not prepared.
• 18:07
  Marcia Riner | Profit Booster®: Yeah, and you have to keep the business moving in.
• 18:09
  John Brooks: Absolutely.
• 18:10
  Marcia Riner | Profit Booster®: Direction during that time. So if it is a distraction that you're not prepared with properly, and you're scattering to run and do do books or correct audits or things like that. Then it could be a real nightmare. I could, I can imagine. Okay, so so say, now, where we've had a partner and the partner new relationship. How long would we
• 18:32
  Marcia Riner | Profit Booster®: run a typical relationship with a partner before we potentially either outgrow them or they've decided that they want an exit at this time.
• 18:42
  John Brooks: I think most firms will tell you. They have a 5 to 7 year time horizon, but about year 3 you probably start evaluating where the business is going. If you're exceeding expectations from a growth trajectory standpoint. If there are other market conditions and things are more favorable than not those sorts of things, all that's in play. It's really about trying to time the market from from an exit standpoint that aligns.
• 19:07
  Marcia Riner | Profit Booster®: This is.
• 19:07
  John Brooks: Which is.
• 19:09
  Marcia Riner | Profit Booster®: Possible, but close to impossible.
• 19:12
  John Brooks: Yeah, I think it's just to check the box. So if the business is hitting its numbers and exceeding the expectation, if it, the interest rate market is favorable. Then you're probably, you know, in the.
• 19:21
  Marcia Riner | Profit Booster®: Then all planets are aligned.
• 19:23
  John Brooks: Exactly.
• 19:24
  Marcia Riner | Profit Booster®: The sun is to the back. Then we can go.
• 19:28
  John Brooks: It's the same sort of dance again. You're you're gonna hire an investment banker. You're gonna get your information ready. Probably at this point when you've been owned by private equity, you've professionalized your data, gathering your financial analysis. So you're more prepared this time around. And by the time you're getting your second rep at this. You're kind of old school at it.
• 19:46
  Marcia Riner | Profit Booster®: Yeah, okay, that that gives that gives a really clear kind of history or window of what these things look like. What would cause a PE. I mean, you've kind of hinted at them. A PE relationship to fail.
• 20:02
  John Brooks: Yeah. So I think a misalignment on expectations. So as I bring in new executives to our teams, I tell them the basic ground rules are, tell them what you're going to do and do it.
• 20:14
  John Brooks: or if you
• 20:15
  John Brooks: or if you're not, you need to show up with your corrective action plan to get back to what you told them you were going to do. The the element of surprise is the worst thing in that relationship that, coupled with any
• 20:28
  John Brooks: ambiguity or lack of communication, just like in any personal relationship.
• 20:33
  John Brooks: is detrimental. And so, where I have seen them be more difficult and and more adversarial is when there's a lack of transparency. There's a misalignment on expectations.
• 20:45
  John Brooks: or we told them something, and when we showed up that wasn't what we delivered, and we didn't have a plan to get back there. And so I think it really is that simple.
• 20:54
  Marcia Riner | Profit Booster®: You know. I think that sets the stage, too, for getting the the business owner in the right mindset that they're
• 21:01
  Marcia Riner | Profit Booster®: no longer the business owner alone, right? That they've got those partners like you mentioned early on. That's a huge shift, because here they've birthed this child right? It's an ugly child. It's dirty, you know. They're they're growing it. They're trying to do these things, and now they have to shift that mind and go. Oh.
• 21:23
  Marcia Riner | Profit Booster®: here you go board of directors, and here you go. I'm gonna show up in a clean shirt, and and you know it. Just it just seems really counterintuitive to the business owner's mind
• 21:35
  Marcia Riner | Profit Booster®: mindset. How do you shift them so that they can be successful in that spot?
• 21:41
  John Brooks: Yeah, I think that's where, fundamentally, at the beginning of the process, the owner has to commit to one or the other either. This is my swan song. I'm gonna exit, and I'm gonna hand this child off to you know the the college or university to finish training them and to get them a job kind of thing, or
• 21:58
  John Brooks: I'm in it for the long haul, and if you're in it for the long haul, and you have the emotional intelligence to deal with it. Then we're off to the races.
• 22:06
  John Brooks: But you you gotta set your mind right on. What do you want out of this? And oftentimes
• 22:13
  John Brooks: folks will start with. I'm gonna ride this out. I'm in it. I'm gonna do it. And after the 1st one or 2 of those board meetings or phone calls with expectations and answering to someone.
• 22:24
  John Brooks: They kind of get the wake up. Call that okay. Maybe this isn't me, because I'm an entrepreneur at heart I'm not.
• 22:29
  John Brooks: I'm not a A. W. 2 employee, so to speak.
• 22:33
  Marcia Riner | Profit Booster®: Yeah, that's that's that's where I can imagine the biggest the biggest trouble would lie is is in the owner, and not realizing to the full extent of granted the you can. You were told your advisors told you they set you up for everything, but in reality you didn't quite. You know you didn't expect that it was going to be like this right? And you know, I think I
• 22:59
  Marcia Riner | Profit Booster®: that to me seems like the hardest challenge is to get past that for for many business owners. But in all reality
• 23:07
  Marcia Riner | Profit Booster®: nobody makes a successful business.
• 23:10
  Marcia Riner | Profit Booster®: a loan. You just you can't. You're either going to self fund yourself and and go to the bank and get a loan, and then you still have to provide all your financials. You just don't have to answer to them, or you're going to get partners that are going to come in and tell you left or right the same way, or you're going to go to PE. But rarely can you, Bootstrap? Rarely can you Bootstrap a business and make it
• 23:38
  Marcia Riner | Profit Booster®: something significant.
• 23:41
  John Brooks: Sure. I I think that's you know again, it's that entrepreneurial mindset versus an executive's mindset, you know, and especially when it's something you've started and you've built, it's got that emotional attachment. So for a lot of folks, I think it's really getting it to a point where it's part of your exit. Strategy is probably the optimal setup
• 24:00
  John Brooks: but
• 24:01
  John Brooks: not saying you can't go the other way. You just got to set your mind right on it and understand it, because to your point, it's like reading the book and understanding the steps that need to happen. But then you got to go, actually execute it and implement it, and that executing and implement it is is a fundamental disconnect from how your brain's probably been wired for the 10 or 15 years you've been building that business.
• 24:21
  Marcia Riner | Profit Booster®: Yeah, absolutely. I mean, I could just imagine the challenges. But on the flip side of that, those that have not appeared on Shark tank, but have actually done favorable relationships with companies to expand and grow and fund their rocket ship
• 24:40
  Marcia Riner | Profit Booster®: have been hugely successful.
• 24:45
  Marcia Riner | Profit Booster®: and in having the company that they wanted right. And now it no longer becomes Smith and Company. It's Smith and Company, with this brand, right? And these people behind them. And it's this legacy that maybe Junior isn't going to step into. But it's still that legacy that you created. And and it continues onward with the right team and people. And you know it's it's
• 25:09
  Marcia Riner | Profit Booster®: to me that that's that's cool.
• 25:12
  John Brooks: Yeah, and properly executed again, getting back to the rewards of your team. You know, when you're you're impacting the lives of of people that have been on that ride with you in the lower levels of the organization, and you can have a substantial impact on their life beyond just you and being there with them every day.
• 25:30
  John Brooks: It's pretty meaningful.
• 25:31
  Marcia Riner | Profit Booster®: I think so. I think so. And what? And and I always like to think of you know, when you when you have this business right? It's not just about you. It's not just about you feeding your family, but it's you taking care of your your work community, but also the community of your customers right when you can deliver better products and better services, and and you can be that mainstay that your customers depend on
• 25:58
  Marcia Riner | Profit Booster®: that to me is really rewarding as well, because then they know they can trust you and and know that you're going to be there to provide them for. Provide this service for them right? And then that that again creates more legacy that goes goes down the road. I think it's a fantastic thing, not for everybody, but for those that want to run and create a serious business, it's it's an incredible opportunity.
• 26:23
  Marcia Riner | Profit Booster®: So let me ask you. Let me ask you one more one more kind of round of questions when we talk about PE, you know you alluded to it and said, Yeah, the 51 49 split right? And the 51 is usually the PE company and the owners. 49. How? What are what is that? That's pretty common, right?
• 26:45
  John Brooks: There's a multitude of options. I tell you it seems like every time I'm I'm at a conference, or I'm talking to an investment banker. There's a new
• 26:53
  John Brooks: way to look at it. So there are firms out there. There's some folks I think they're out of Missouri, called permanent permanent equity, which it's long term non control equity. So you can take those guys in as partners. So there's options. That's why, again, I think engaging the right professional to advise you, and and I would recommend in most instances, an investment banker
• 27:15
  John Brooks: that that's going to lead you down to the right path, because if they do their job and and understand your desires and your goals, then they can align you with that source of capital, because that doesn't even we haven't even touched on the debt financing that's out there all the private lending that's going on. So you have your traditional asset based loans your lines of credit, and all the things we all know and kind of motherhood and apple pie.
• 27:36
  John Brooks: But then there's a whole nother option out there with the private capital markets that's in the debt realm. So you don't even really get into equity, where maybe they have some equity options and different things like that.
• 27:46
  Marcia Riner | Profit Booster®: Yeah, that's self funding. Right? So then they're coming in and going. Look, you can get financing for for this next phase, this next expansion that you want to do the next purchase you need. Yeah, there's all sorts of different financing tools that you can use that aren't necessarily ownership driven like you don't have to give a piece of your equity out.
• 28:07
  Marcia Riner | Profit Booster®: I think those are fantastic tools you have to monitor and manage and make sure that you know you're you can service the debt that you you bring on with the growth potential that you have. But yeah, that is another way to grow a little bit more on your own back rather than on the back of others.
• 28:26
  Marcia Riner | Profit Booster®: The the thing that always catches me, though is that
• 28:31
  Marcia Riner | Profit Booster®: when you're looking at that giving up equity or ownership percentage of your company. It's like, I always come back to the mindset of going. Well, I have. I have a hundred percent of of $100. We'll use 1 1 silly number. But then, or I could have 49% of a million dollars right? Which would you rather have.
• 28:54
  John Brooks: Right.
• 28:55
  Marcia Riner | Profit Booster®: That's that's the the idea potential is that that these people have skill sets that they bring to the table. They can offer opportunity to your workforce. They give you opportunity to
• 29:10
  Marcia Riner | Profit Booster®: to reach a vision that you want, but are. Don't quite have the capital to get there. So for me. It sounds like
• 29:21
  Marcia Riner | Profit Booster®: it's a win win, with maybe a few sprinkles of of, you know, potential Downside for the business owner in their mind. Right?
• 29:29
  Marcia Riner | Profit Booster®: So if you've got that vision, why not go for it?
• 29:34
  John Brooks: I I agree, but I'm partial, you know.
• 29:38
  Marcia Riner | Profit Booster®: And I've been partial the other way for years. So you know, I mean, this is something that that is definitely a shift for me because I've always been that. Well, they're gonna come in. They're gonna railroad, you. They're gonna take the company over and you're out on your on your ear. But then the other side of that is that if you've got that vision and you can't get there alone, you absolutely can't.
• 30:00
  Marcia Riner | Profit Booster®: Then why are you giving up the vision.
• 30:03
  John Brooks: Yeah, I think that's the value judgment you have to make. I mean, it's a lot like people that decide. You know, the value of money to them, you know, is their time more valuable than making more money, or whatever their their life choices are. So
• 30:16
  John Brooks: fundamentally, I would say the entrepreneur has to decide. Yes, I'm committed to this, and I want to take it from here to here, and I need help, or yes, I'm still committed to this, and I think it can go from here to here. But now it's time for me to step away and let someone else carry the ball. Whatever the case might be.
• 30:34
  John Brooks: and just acknowledging that when you do bring in investors when you do, have the blessing of that capital.
• 30:40
  John Brooks: there's other voices in the room, and, you have to be willing to to accept that with it.
• 30:46
  Marcia Riner | Profit Booster®: Yeah, this is great, John, I love this idea. This is this has really been opening. And and
• 30:55
  Marcia Riner | Profit Booster®: for me, allowing me to come a little closer to the PE side versus staying on the Bootstrap side for so many years. So I really appreciate that. And I love the opportunities that can really, truly
• 31:08
  Marcia Riner | Profit Booster®: come your way. That could be favorable to the business owner rather than looking at it as as a negative side. So I'm glad we've had this conversation. So where can listeners? Yeah, where can listeners find out more about you and even your your trucking storage opportunities.
• 31:29
  John Brooks: Yeah, absolutely.
• 31:30
  Marcia Riner | Profit Booster®: Love it. It's such a great idea.
• 31:31
  John Brooks: So 1st of all, you can find us when you need a trailer. When you need some extra storage space@wowtrailers.com we'll be happy to help you. We like to say that we provide Ritz Carlton service at the Hampton in price, so we'll take really good care of you, and only ask a fair price. And then, if you want to hear more of my musings and maranderings of a slow, witted, bald man you can find me on Linkedin I post pretty regularly there, and would love to connect with anyone that would like to.
• 31:58
  Marcia Riner | Profit Booster®: Love it? I don't know. Yeah, okay, we'll go with that one. This is, this has been great. Yeah. Listeners. I would encourage you, you know, to to keep an open mind, you know. Look at opportunities to grow your company in a way that can really, truly take your vision the way you want, and I've said it.
• 32:21
  Marcia Riner | Profit Booster®: We're 300 plus shows in here. I probably said, at 150 shows worth that. You can't do this alone. You need advisors. You need potential partners or financial partners to help you get your dream
• 32:39
  Marcia Riner | Profit Booster®: that you've had with your company to get it to the place that you want to. Now, we're not talking Amazon or market domination. But we're talking growth. And this is a normal factor of growth, using other people's money to get you there, and if this is the way you might be able to get you there and sprinkle the rocket fuel, then I would encourage you to open your mind. Look at the opportunities, run the numbers.
• 33:06
  Marcia Riner | Profit Booster®: get some help and advice on the direction that's right for you, but consider it because
• 33:12
  Marcia Riner | Profit Booster®: I love it pouring rocket fuel on it. It's.
• 33:15
  John Brooks: There we go!
• 33:16
  Marcia Riner | Profit Booster®: Makes perfect sense
• 33:17
  Marcia Riner | Profit Booster®: alright. Well, thanks for tuning in today. I hope you picked up some valuable insight and actionable ideas to help you make your business more profitable.
• 33:26
  Marcia Riner | Profit Booster®: and if you're ready to simplify your marketing and get started with better results, grab your free 30 day trial of the profit booster marketing hub, no tech headaches, just smart streamlined marketing that works head over to profitboosterbiz and get started today.
• 33:43
  Marcia Riner | Profit Booster®: You don't want to miss future episodes. So go ahead and subscribe. You can always catch profit with a plan on any of your favorite podcast players. And we're looking forward to more great profitable strategies on next week's show. So until then make your plans and profit with them. Thanks so much, John.
• 34:00
  John Brooks: Thank you.