Latest / AI for Founders with Ryan Estes / Stop Doing Your Own HR
Transcript
- 0:00What if I told you that right now, the government might be
- 0:02calculating a surprise tax bill for your business, and the only
- 0:05way you'll find out is when a letter shows up at your door
- 0:08demanding $38,000? Well, the government's awesome
- 0:11at that, and most founders learn the hard way.
- 0:14The moment you hire someone in another state, you've entered A
- 0:16compliance maze that actively designed to punish you for not
- 0:19knowing the rules. But with AI, it can see the trap
- 0:22before you fall in an AI that watches every state's payroll
- 0:25tax in real time, flags the change before it costs you and
- 0:28rebalances your payroll spend. And automatically that
- 0:31technology is being built right now.
- 0:33So what's the most expensive thing in your business right now
- 0:35that you don't even know You don't know.
- 0:38Welcome to AI for founders. I'm Ryan Estes.
- 0:40Today's guest is John, founder of Cognet HRO in this episode is
- 0:45for founders who are scaling fast hiring across States and
- 0:48realizing that HR, payroll and compliance are quietly eating
- 0:51their company alive. If you want to understand how AI
- 0:54is reshaping outsourced HR from the inside out and how to stop
- 0:58getting blindsided by regulatory for surprises, this one's for
- 1:01you. And if you want more insights
- 1:03like this delivered straight to your inbox, head over to AI for
- 1:05founders.co and join thousands of founders who refuse to be
- 1:09caught off guard. AI intelligence that gives you
- 1:11unfair advantages. Subscribe today.
- 1:13AI for founders dot. Co And if the show's ever saved
- 1:16you a painful surprise, the least you can do is give us a
- 1:18five star review. And you know what?
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- 2:07Co All right, John, welcome to the show.
- 2:14Thank you so much for joining me.
- 2:17Thank you for having me, I appreciate.
- 2:18It it's a pleasure. It's it's a Monday.
- 2:20I love to kick the week off with a good conversation.
- 2:22So I can't wait for this one. So.
- 2:25Nothing better than starting up a week with a.
- 2:27Podcast, right, yeah, well, especially, you know, 11:30 AM
- 2:31is about the time when my gears start working.
- 2:34Anytime before that I I'm I'm no good, you know, did you eat
- 2:38before? No, you know, I'm a a lot team
- 2:40guy in the morning. I I don't do breakfast because
- 2:43breakfast will kind of like it kind of slows me down.
- 2:45How about you? Are you at breakfast in the
- 2:46morning, guy? Absolutely.
- 2:49Bright and early. Yeah, yeah.
- 2:50Nice. I wish, because I love breakfast
- 2:52foods more than anything. You know, I've been
- 2:55experimenting with this new breakfast burrito spring roll.
- 3:01So you take all the goods you got that the the eggs, the hash
- 3:05Browns, the bacon and some cheese, and then you put it into
- 3:10like a rice paper and then make like a spring roll and then put
- 3:14it into the air fryer, mist it with a little avocado oil and
- 3:17crisp it up. It's so good.
- 3:22Just happy you put the avocado oil on it to give it one healthy
- 3:25ingredient so that that I know that it it met that need as
- 3:29well. That's good for you, right?
- 3:31That's what they've been telling me.
- 3:33Absolutely. You know when health food
- 3:35becomes cook a steak and melt cheese over it, I'm like, Oh my
- 3:38gosh, I've died and gone to heaven.
- 3:41Yeah, turns out I've been the picture of health and fitness my
- 3:43entire. Life.
- 3:45Well, welcome to Colorado. Exactly.
- 3:48Well, John, why don't you begin by giving us kind of an overview
- 3:52of your company, Cognet, and people can find it at
- 3:55cognethro.com, but give us an introduction to the tool.
- 4:02Sure. You know, we, we're a
- 4:03traditional business process outsourcer or more of the BPM or
- 4:07management space now because we're bringing AI and technology
- 4:10to, to the forefront on top of BPS services.
- 4:14So my, my history simplistically is I've been in the HR
- 4:17outsourcing business all my life.
- 4:19We won't talk about how many years of experience that
- 4:21entails. Been doing business in India for
- 4:24about 20 years. We've been in business about 20
- 4:27years as well. Cognitive was kind of founded on
- 4:31the fact that I wasn't a client at one time and had a vendor in
- 4:34India, learned my way through that, went to another company.
- 4:38We, we turned it around, sold it.
- 4:41The the buyer did not want the offshore help of it.
- 4:44So basically I kept the best 10-15 people I have today.
- 4:49Honestly, I still have most of those people.
- 4:50There is a Management Today, which is a good story.
- 4:54They've stuck with us and, and we've been very lucky to have
- 4:57them. Over that 20 years, you've seen
- 5:00a lot of change. Obviously where, where we are
- 5:03now is in our space. AI is, is impeding, whether you
- 5:08like it or not. The, the, our philosophy
- 5:12recently has been that it's coming whether we like it or
- 5:14not. So we've started to develop on
- 5:17top of our traditional services. Let's say we process payroll for
- 5:21people. The AI side of that is, OK,
- 5:25great. We need to compare last week to
- 5:27this week very quickly and make sure that it's in good shape.
- 5:30We've got a tool to do that instantly while they're sitting
- 5:33there in the session. So the, the, the hard part of
- 5:38this was that we were just talking about it prior, the
- 5:42sensitivity of the data. We have a lot of Phi and infra
- 5:44and data you cannot share with the LLM.
- 5:48So we have started developing our own internal tool set called
- 5:51Drive. It's sole purpose in life is to
- 5:54ingest anything and then we decide what to do with it.
- 5:58Whether that be with AI, robotics, LOMS which we don't
- 6:02use as much of, but we had to have that on our own platform.
- 6:06There was no way our clients would ever want their data
- 6:10running around in our friends clawed or anything like it.
- 6:13Amazing. So let's hover on merchant
- 6:17service. Or not merchant service
- 6:18processing, but payroll processing, you know, 'cause
- 6:21this is a sticky one for, for founders.
- 6:23It's, it's reared, it's, it's headed me largely because
- 6:26there's always changes that are happening all the time.
- 6:29And it's, it seems like a perfect application for AI from
- 6:33your standpoint, because say, for example, employee tax or
- 6:41what am I trying to say, workman's comp insurance, that
- 6:47kind of thing. It changes by industry, it
- 6:49changes by time. So, you know, my previous
- 6:53business, it was a, a tech company.
- 6:55So I think we're at 1.7. And then after COVID, you know,
- 6:58everybody went on unemployment. And so it, it jumped up to like
- 7:014.5 and I never knew about it. And that created a differential
- 7:05that the state of Colorado was happy to inform me that I owed
- 7:09them a check. So that sounds like a good
- 7:12application where AI could kind of like keep an eye on like
- 7:16statutes and like percentage increases or decreases so that
- 7:20founders can adjust their payroll spend accordingly.
- 7:25The way we have a lot of clients who are in the professional
- 7:27employment organization business or PE OS and they're, they're
- 7:30managing, for example, state unemployment, the the downfalls,
- 7:34the data from the state isn't as accessible as you'd like it to
- 7:37be. But you, you've kind of come
- 7:40across the great use example there that that's not mature yet
- 7:44won't be there. But hey, can I get my claims
- 7:47electronically and basically recalculate my rate at all
- 7:49times? That recalculates annually.
- 7:52So every year, like you, you got a surprise bill, hey, that we
- 7:55want all this money or we'll lean against your house or
- 7:57whatever it is we got to do to get your money.
- 7:59But what I love about jurisdictions especially is that
- 8:02they're not asking that they want the money.
- 8:05So you find out the hard way. Yeah.
- 8:08And and we see like California, I'll give you, I mean, let's
- 8:11just be honest, in California it changes by the minute.
- 8:14So we have a lot of clients who have sophisticated platforms.
- 8:18We we do not run HR platforms. We're agnostic to that type of
- 8:22technology. Whatever our clients who are
- 8:24mostly bureaus or providers are using, we use a lot of those
- 8:28systems aren't compliant and, and come back to the, you know,
- 8:32the big beautiful bill, if you will, that you know, the use of
- 8:35overtime and all that. The systems are not ready for
- 8:38that. Some are more so and some are
- 8:40less so. So the examples are laying
- 8:43around from a compliance perspective, specifically
- 8:45payroll and payroll tax for AI to jump in there.
- 8:48It's not there. If you look at all the big
- 8:51providers, you know, ADP, pay core, let's go down the list.
- 8:54They all have a, an AI tool right now.
- 8:56It's a bot. You know, you can ask it a
- 8:59couple of questions. We have a partner who rolled out
- 9:02an AI payroll tool. He was supposed to compare the
- 9:05last week and say, hey, where am I?
- 9:08It's not there yet. But the complexity that comes
- 9:12with payroll is is ripe. It's going to bring AI to the
- 9:16forefront as long as they're careful about handling the data.
- 9:19Yeah, you know, second time founders are are listening this
- 9:22with a careful ear to hear exactly what you kind of can do
- 9:25for them because HR, payroll, insurance, these are the kind of
- 9:32things that make you want to jump in a well as a start up
- 9:35founder because, you know, start up founders have an idea.
- 9:38They want to bring it to the world.
- 9:39They want to inspire the team, they want to they want to help
- 9:42their customers, delight their customers.
- 9:45And then what you get hit with right in the mouth is like, oh,
- 9:47you're responsible for everyone's insurance.
- 9:50Oh, you have all these disclosures.
- 9:52Oh, you have to figure out how to not only make payroll, but
- 9:56deal with all the payroll and insurance and, and all these
- 9:58things and you know, for for the folks that are just kind of
- 10:01starting out right now, brace yourself.
- 10:04It's. Awful.
- 10:05I mean, and that's why I love this category of business
- 10:09because ultimately, you know, you can be like kind of a saving
- 10:13grace for folks who are like, dude, I just don't want to deal
- 10:14with this. Yeah, but, and our clients are
- 10:18as well the the PEO spaces we're talking about 50 and under or
- 10:22our new, new starts and, and founders like we're talking
- 10:24about they, they belong there. They'll take care of your tax,
- 10:27your payroll, your benefits. They'll provide you benefits you
- 10:30can't even get, you know, you won't be able to even achieve
- 10:33that. That's why we like them as our
- 10:36clients as well. But it's, it's the first tax
- 10:40notice that you get and you will get one.
- 10:43That's the little wake up call there and, and knowing what to
- 10:45do with that and or a garnishment or let's just go
- 10:48down the list of surprises and sit around in this space.
- 10:52If I, I've started up a few companies doing today, there's
- 10:55no way I'd do this internally. It's just not value add enough
- 11:00and and it will suck up a lot of your time.
- 11:02Yeah, yeah, it's, it's the a really challenging, ticky tacky
- 11:07part. You get those letters, you know,
- 11:10whether it's from the IRS or you get a letter from the, the, the
- 11:13state and you're just like trying to interpret like, what
- 11:15are they telling me I need to do this looks like it's a bill for
- 11:18$38,000. Like what?
- 11:20What are we? What's happening right now?
- 11:22That is a wake up call. You know, by the way, they only
- 11:25send letters. So let's be clear about that.
- 11:28Forget the 20 e-mail scams I get a day, realize my background was
- 11:32being ACFO. So you know, I just look at
- 11:35those scams I get on a daily basis and just shake my head
- 11:38like seriously. But but I do know there are
- 11:40really smart people out there that fall down that hole in this
- 11:44example. They just don't understand, you
- 11:46know, the HR side of things and that's the way it goes.
- 11:50And some of them couldn't fall into to the wrong place quickly.
- 11:53Absolutely. So as I'm looking at your
- 11:55website a little bit, you know, services, sales and underwriting
- 11:58support, payroll services, benefits in H&R, benefits in HR,
- 12:02finance and accounting, tax services, HRIS implementation,
- 12:08I'm not sure what that is. And then you have automation
- 12:10between all of those things. So you know, if we're if we're
- 12:13talking to startup founders, you know, they got a small team,
- 12:15they're starting to grow, they're starting to fill out
- 12:17sales, they're getting fulfilment, customer success.
- 12:20When's a good like point for them to reach out to you to see
- 12:24kind of like how you can help the organization?
- 12:28I'd say, you know, anytime the course as my first CEO hat
- 12:32dancer, But as you get complexity, I'd say when you
- 12:37fall into more than one state too, that's when it really
- 12:40becomes different and unique in in the post COVID world of we
- 12:45work from everywhere and we all care.
- 12:47You find yourself in five states, even if it's five
- 12:50people, you've gotten yourself in a whole different ball game
- 12:52now from a compliance perspective.
- 12:55So I would say that that's usually your indicator that hey,
- 12:58I might have gotten myself in over my head just a little bit
- 13:01here. John, where were you 6 years
- 13:03ago? Colorado is always a lot of fun
- 13:07by. The way, Oh my gosh, Colorado I.
- 13:11I live in Florida. We have you know, no income tax
- 13:14and not much going on, but but it it does matter as you because
- 13:18you get multi state and get some size from an employee
- 13:21perspective that you got to think I had on your services.
- 13:24South Carolina seems to be problematic for some reason.
- 13:27I'm not sure, but I always got letters with those guys.
- 13:29Yeah. Interesting.
- 13:30And then what about, like internationally?
- 13:32I mean, we're starting to even look outside of the state
- 13:34borders and looking at talent all over the place, you know, is
- 13:38there, what are maybe some pitfalls that that founders
- 13:43overlook? Well, I'll tell you as an
- 13:46employer in India of quite a few people, probably over 600 today,
- 13:50but it's not fun and it's not here.
- 13:53And now what you will find, there is a product out there
- 13:57that you could find called Employer of Record.
- 13:59So you have vendors all around the world, basically they'll
- 14:02just employ the person for you. But that gets you through.
- 14:05I mean, if you decided that you want to educate yourself on
- 14:08Malaysian employment law, go for it.
- 14:11But if you find somebody in Kuala Lumpur that you want to
- 14:13work for, you and EOR will actually employ them and take
- 14:17care of everything locally and then you direct them and tell
- 14:20them what you want them to do, That's an excellent product for
- 14:23somebody who wants to look at international employment.
- 14:25You bet. Hey do you guys do employment of
- 14:27record? We, we do not actually we're
- 14:31quite the opposite. So we, you know, everybody I
- 14:33have works for me and we do work on behalf of our clients.
- 14:37Yeah. Is there exposure if if founders
- 14:39are just using contractors or you know, there's a bunch of
- 14:43different services like that, you know, assistance do it
- 14:46working part time, things like that?
- 14:49Yeah, 'cause I'll tell you I'm going to use what I what I know
- 14:52in India, the laws on contractors are very strict.
- 14:54So that doesn't mean you're not doing business with one.
- 14:57You may not be doing so legally. I would caution people in, in
- 15:02all markets. I'm not going to pick on Asia or
- 15:04South America. Any place in particular.
- 15:07Be wary of whether that person's actually doing the work.
- 15:10So you know, I've seen especially in technology where
- 15:13people, hey, I hired this great guy in India and he's doing all
- 15:17this coding for me. He might or might not be doing
- 15:19that coding. They.
- 15:20Hired a guy in Philippines. And you're going to you're going
- 15:24to find out that the quality of the work of the person the hard
- 15:26way. So the international is is
- 15:30tough. So be cautious with it.
- 15:32If you can find somebody that lay liability all fun like an
- 15:35EOR, do it. Yeah, love it.
- 15:37OK. And you guys have a fleet of
- 15:40different services. What's the business model?
- 15:42Do you have kind of like a core offer and you have expands and
- 15:46upsells like how does that work? Yeah, we, I coined it.
- 15:51I wish I would have service. Mark, this year's a guy called
- 15:54Land and Expand. So we typically, you know, our,
- 15:58most of our clients are providers of services.
- 16:01So we'll come in and if their current problem is a tax
- 16:04problem, we'll solve that problem then.
- 16:06So, oh, by the way, you know, here is our other areas.
- 16:10You you mentioned them. Those are our practice areas.
- 16:12We're actually internally organized that way.
- 16:15So I have a payroll practice with the payroll leader who's
- 16:18been doing that, you know, 15 years and knows they're
- 16:20everything more, more than I've probably forgotten.
- 16:24So as you look through our, our service model, you know, finance
- 16:28kind of fell because I used to be ACFO.
- 16:30So that's not a tough one, you know, benefits and, and there
- 16:34are just other HR transactions as well.
- 16:36I 9 let's go down the list. We, you know, we, we built that
- 16:41by functional area versus the client by client.
- 16:44Yeah. OK.
- 16:46So most do. Most people kind of come in the
- 16:48front door for tax preparation. I'd tell you right now, a lot
- 16:53do, yeah. And then you know.
- 16:55They still supports it or April snakes.
- 16:58Because they've got a problem. Yeah, it's because it's like
- 17:01you. I got that $38,000 letter.
- 17:04Oh my God, do I hire an attorney for $600.00 an hour to figure
- 17:08this out for me? You know what, what is what are
- 17:10my options or how do I, as we say, we're an ISO 9001 shop 2.
- 17:15We're we're process driven. The biggie is, how do I make
- 17:18sure it doesn't happen again? 100% awesome.
- 17:22So now did I hear you correctly that you've been living in India
- 17:25for 20 years? Oh, no, no, I've been doing
- 17:28business. I live in Orlando, actually.
- 17:30So oh, OK, OK. I was like, oh.
- 17:32Right now my biggest problem is getting to India because I
- 17:35actually need to go. There's a small little excursion
- 17:40going on over there that does is causing me problems from a
- 17:44flight, the flight so perspective.
- 17:45So we're trying to figure that out right now actually.
- 17:48Is this related to the whole Iran thing?
- 17:50Oh, absolutely. Yeah, I fly Emirates.
- 17:52So yeah, as you can imagine that that's not happening right now.
- 17:57There's not a lot of flights going on.
- 17:58Interesting. So it so you're, you're based in
- 18:01Florida and your team is in India.
- 18:04Yes. Cool.
- 18:04And how? How big's a team?
- 18:07600. 600 Incredible Quick side note for founders.
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- 19:59we went. From 67 to over 600 in the last
- 20:033-4 years. Wow.
- 20:05That's insane growth like 3 Xing every year over the last couple
- 20:09years is that. Well, 100 / 100 we're only 5000
- 20:12lists coming up for the third year in a row.
- 20:14Hopefully I'll give him my pitch right there.
- 20:18But yeah, you know what I, and I hate to, you know, I, I was in
- 20:21this industry and I had all the people that I knew within it.
- 20:25The, the story side of this was COVID.
- 20:27I quit. I quit my day job during COVID
- 20:30and said I'm going to go do this all day, every day.
- 20:32I wonder what would happen. It's turned out good so far,
- 20:36that's for sure. Yeah.
- 20:37It sounds like it. So zero to 60 in about two years
- 20:41and then 60 to 600 in another three years.
- 20:44What talk about the growth like how did you kind of like what's
- 20:48the sales process like where, where's your acquisition coming
- 20:52from? Yeah, it's, it's honestly
- 20:56because I'm, I spent 30, you know, six years in the industry.
- 21:00It's a lot of it's people that I know.
- 21:02We're finally getting ourselves to a point where it's referral
- 21:05based. So with a complex product like
- 21:08we have, I used to joke like standing in the booth and
- 21:12saying, hey, do you want to outsource a bunch of stuff to
- 21:13India that that is not what you call an easy sale.
- 21:16You know, I'm not selling the fruit or anything like that.
- 21:19So this is a longer term, more sophisticated sale.
- 21:23And we, we've been very lucky. And now what we're looking at is
- 21:27kind of branching out a little bit.
- 21:30We, we'd only do HR. So I've always said we're going
- 21:32to stay at our lane. It's very tempting to take
- 21:34anything. Hey, I'll do you know, just a
- 21:37big accounts payable deal. No, you let the big guys have
- 21:40that. They know what they're doing
- 21:42there. We we stick to our niche and
- 21:44we're just getting broader. So staffing is one thing that
- 21:47we're looking at today, but on top of that.
- 21:50And your niche, is it like startups and SMBs?
- 21:57Absolutely. Actually, we, we love startups
- 21:59because they can grow into us. You know, we tell them you well,
- 22:03when it's a mature model and I have both client facing people
- 22:07on my own back office, let's say it's hard to get that to move.
- 22:11It's a little bit harder when when their client facing because
- 22:15they're small and they're growing like crazy.
- 22:17You say, great, just grow with us.
- 22:19You know what scale is one of the things we're here to provide
- 22:23somebody on the up upside of growth.
- 22:25That's a very easy decision for them.
- 22:26They just stay client facing and, and keep it there.
- 22:30For your mature business, it's a bigger shift because there's the
- 22:33cultural aspect that you have to manage and, and people don't
- 22:36understand you have to manage culture on both sides.
- 22:38Yeah, we have a lot of really educated people.
- 22:40They don't like. I used to go to call centers in
- 22:44India that I would laugh. Like, I know the, the, the US
- 22:47person's irritated, they've hung up, pissed off, but you know,
- 22:51they didn't go. Well, it happens on that end
- 22:53too. They're they're like, I have a
- 22:54master's degree, really. I don't have to take this crap.
- 22:57Yeah, yeah. Other I, I've been looking to
- 23:01see both sides of that equation. It's been very educational for
- 23:04me. Yeah, I mean, Indian people are
- 23:07incredibly oppressive, you know, I mean, not the stereotype or
- 23:10whatever, but like, I have the great fortune to work with a lot
- 23:14of folks from India and they're incredible.
- 23:18It it's the reason we're there. People ask us why not
- 23:20Philippines, why not Costa Rica? Why not hear one out there?
- 23:24And one, one of my founders who runs the India operation, his
- 23:27wife works for a very large outsourcing firm and they're all
- 23:30over the world as well, near and far shore India.
- 23:33The bottom line is betting on the education system.
- 23:36It's a fantastic education system.
- 23:38The quality of the kids that we hire out of school are, are
- 23:41really good. There are some quirks that are,
- 23:44you know, things that you have to work through, but you have to
- 23:47learn within your market where where we see now going is
- 23:52applying technology on top of that.
- 23:54That's the other part of why in the the tech talents there now
- 23:58in AI land, what you're finding out is the there's no seasoned
- 24:02experts on these tools unless you're going to steal somebody
- 24:06from Anthropic or you know, whatever and you can't afford
- 24:09that. So what one of the reasons why
- 24:11we've gone where we got is the talents laying there to to build
- 24:14the tech stack. Let's build it and let's apply
- 24:17it to the sides of client who can't afford to do and doesn't
- 24:20have an IT person or an IT department big enough.
- 24:23I think the race here at AI is that everybody's messing with
- 24:28it. Is anybody proving they have an
- 24:29ROI on it? No, not yet.
- 24:32Yeah, I and that's where I think like AI can be very
- 24:36instrumental. It's just internally,
- 24:38particularly with, you know, workflows for administrative
- 24:40purposes, you know, I, I'm assuming with like startups and
- 24:44SMBs that they've got a long way to go infrastructure wise before
- 24:48they're trying to develop AI tools.
- 24:49It's like, Hey, we could do some simple automations that might
- 24:52make your world a a lot easier. But also just when you have a
- 24:56suite of administrative kind of services, all they want is just
- 24:59make this easier for me, which you can you apply and just like,
- 25:03you know, hey, it just works like magic.
- 25:05It, it, we're not reinventing the wheel.
- 25:07You don't need to like, you know, create a, a picture of
- 25:10dinosaurs having a picnic, rather you like, just give me
- 25:13the information I need as fast as I, I can get it and, you
- 25:16know, let me work it out. So, you know, all those tools
- 25:19are kind of like available now. And the great thing about it is
- 25:23we can just learn from what is successful.
- 25:25So the second that somebody finds a workflow that's, you
- 25:27know, amazing, then like you can implement that into yours.
- 25:30I think we're going to a place now too where well, there will
- 25:32be marketplaces of agents for very specific tasks.
- 25:35So it's like, hey, I want to tag everything in QuickBooks over
- 25:38here and I wanted to connect to, you know, Monday over here.
- 25:42And it like all those things, a very specialized tool.
- 25:45We can just go pick that up, plug it into our business, but
- 25:48that's a little ways away. Yeah, and there's a real
- 25:52intonation point there too. We see it where we use robotics
- 25:54as well when you know, it's not all AI, but the grey AI might
- 25:59have collected the data, got us here.
- 26:01OK, now I just need to do 5 steps with it over and over and
- 26:04over again. You know, robots are very
- 26:07efficient of that para automating the made the tools
- 26:09that are already out there, they're very good at it.
- 26:12They also don't expose the data, they're simply doing the same
- 26:15thing over and over and over again.
- 26:17And we'll have projects come in where, OK, great, we'll just
- 26:20pull up 18 robots on Amazon AWS and let them go rock'n'roll on
- 26:25this and knock it out 24 hours a day, seven days a week.
- 26:28Where it LED for us or where people need to think their way
- 26:31through is size. So I had a project where, OK,
- 26:35I'm moving from one payroll provider to another.
- 26:38Oh crap, I forgot all those PD FS that I have out there.
- 26:41You know, my W twos, my W fours, my nines, you know the benefits
- 26:46sign up form whatever I need to move them from here to there.
- 26:50We could do a small project with humans.
- 26:52We'll just put people on it, you know, and work overtime and get
- 26:54it done. If you brought us a 500,000
- 26:57document project, we couldn't do it where where we went with that
- 27:01as a is more robotic and less AI.
- 27:04So people have to to decide their tool set.
- 27:07It really does matter. And and also what's the
- 27:10sensitivity of the data that you're touching?
- 27:11Yeah. If we're talking about finances,
- 27:13it's very sensitive. Yeah.
- 27:17I mean, we for you for example, probably don't want your bank
- 27:19account number, Social Security number around through ChatGPT or
- 27:23anything like that. Or Claude.
- 27:26Or Claude, well, Claude, yeah, Claude was blackmailing people
- 27:30in their test bed. So that would And you know, we
- 27:33find it, We, I went to an AI conference last year in Vegas,
- 27:37AI four. It was fantastic.
- 27:39Hallucination was one of the things we talked about.
- 27:41We see it in our practice today, meaning I I've standing up and
- 27:45it worked perfect. I haven't doing exactly what I
- 27:47want it to do now. OK, next week comes in and we
- 27:50run it again. And now it makes mistakes
- 27:53because it's trying to learn at all times and do things slightly
- 27:56different. We're having to monitor it or,
- 27:59or it's hallucinated and it's it's read the wrong thing and it
- 28:02doesn't understand what it's seeing.
- 28:03And it comes out with an output that makes no sense to you, so
- 28:07that the tech itself has a ways to go.
- 28:11But the practicality is you got to, you have to watch it.
- 28:13Yeah, yeah, You kind of got to babysit it, right?
- 28:15It's like the agents are are all shiny and new and they're great
- 28:18and then a model changes and then it's broken and you're
- 28:20like, I got to go rebuild it, you know?
- 28:24And is what the age of doing for you matter?
- 28:27I know there's some really cool stuff and maybe could set some
- 28:29appointments for me or whatever it's doing.
- 28:32I have some staffing clients. I'll give you an example of
- 28:35recruiting, fighting people. The the AI exists to recruit
- 28:39somebody contacted them, set them up an interview.
- 28:43Some of them could interview them probably.
- 28:45So that, that works great if you're looking for warehouse
- 28:48workers, if you're looking for physicians, yeah, there, that's
- 28:52where there's a lot in between where the human needs to jump
- 28:55into the process, you know, can I have the AI do the legwork for
- 29:01me, which is the answers, of course.
- 29:03And then where do I need to step in and take care of the human
- 29:07element? Yeah, it's interesting too.
- 29:09It's like, you know, in the beginning it was like, oh, AI is
- 29:11going to take our jobs. But it looks like a lot more
- 29:14it's, it's kind of like reshaping the, the nature of the
- 29:17job where you used to be kind of a individual contributor or
- 29:21operator, and now you're more of a manager, you know, So if
- 29:24you're building like automations and agents that kind of take
- 29:28some of the data entry load off your off your shoulders.
- 29:32And, and that's just, you know, if you're a creative, that data
- 29:34entry, it might be deeply entwined with your identity, you
- 29:38know, creating things. Now we're using AI to create
- 29:41things. We're more like giving them
- 29:43tasks. You know, what you think is a
- 29:45lot really challenging to a lot of people of like, I don't know
- 29:47if I want to be a manager, you know, I, I like doing the thing,
- 29:51you know. You remember that day when you
- 29:54go they said, oh, congratulations, you have 20
- 29:56people working for you was the worst day You go exactly.
- 29:59They they tell me why it didn't pay more than it.
- 30:02Should, but totally I'll. Tell you he's an old financial
- 30:06person. That's where it's really going
- 30:08to hit hard. First is the the accounting
- 30:10department that there is, you know, people that it's people
- 30:15spreadsheets and systems. AI is very effective at figuring
- 30:19those things out. Let's say something as simple as
- 30:21a bank or consolation the So you know, we do some for some
- 30:25clients, but we built so we're building tools to do them
- 30:28knowing that it's coming anyway. Yeah. 100% man, I am still just
- 30:32taking aback of you know, 5-6 years zero to 600 person team.
- 30:37There was 15 years of pretty flat there before then, so yeah,
- 30:42it's been the last five years where we've really grown quite a
- 30:45bit. 15 years, kind of a side thing and you still had kind of
- 30:48a you know what? Yeah, I had a day job and then
- 30:51we did this on the side and we had friends as clients, which
- 30:55was great. And I'll tell you, that's been
- 30:57the struggle of our organization that you anybody that's as a
- 31:01founder, I'm in the same place, Anybody else's?
- 31:04Hey, am I in the way now? Are we getting so big or are
- 31:08they going in a trajectory where somebody else could could be as
- 31:12effective, more effective or differently effective, I guess,
- 31:15and that's kind of what have with the growth.
- 31:17You have to re examine ours. Ours was build technology first
- 31:22and foremost, you know a lot of internal technology.
- 31:25We, we have a lot of pretty sophisticated internal
- 31:27technology from a productivity perspective to say because we've
- 31:32grown, how effective are we? You know, if I, if I'm not more
- 31:35effective than my client at the task, then what?
- 31:37They don't need me. Yeah, so why not?
- 31:41Why not hire Aceo and go chill on a beautiful boat and do some
- 31:45fishing? Because I my golf game sucks.
- 31:51I have a really nice boat and I can't catch anything, catch
- 31:54cold. My dad's in his late 80s and he
- 31:58and I talked quite a bit and he he's like, what would you do?
- 32:03I don't have an answer to that question yet.
- 32:05So I, I will, I will tell you I spent and I don't know when your
- 32:10forever I was, but you know, I was CFO and I, I did a lot for
- 32:14other people. I was good at it.
- 32:17I didn't love it doing what we're doing now in the last five
- 32:21years. I love every second of that.
- 32:22So doing something else has yet to even come close to occur to
- 32:27me yet. Amazing, So any idea what
- 32:30revenue per employee is? Yeah, but we're private, so
- 32:36we'll stay away from that one. Ballpark.
- 32:38I'll tell you one, John. We want to know.
- 32:41You know, we, well, I'll, I'll tell you how we price.
- 32:43It's that simple. We price by the person, by the
- 32:45seat. So it's $2000 per month, SO24 a
- 32:49year. 24/20/2000 per month How many clients?
- 32:55About 60. 60 amazing, great business.
- 33:01It's not an easy one. It's one of, you know, it's my
- 33:04personality a little bit too. It's one of the ones, well, you
- 33:06guys will never be able to do that.
- 33:08People in India will never understand the complexities of
- 33:11what's going on in HR from AUS perspective.
- 33:15And then you know that my answer was no, they, they can't.
- 33:20I'll tell you, we compete against the model.
- 33:21There's a model out here in outsourcing land where, hey,
- 33:24I'll just find you the people in India.
- 33:26And then you can train them and teach them and, you know, manage
- 33:30them. I just, I just found them for
- 33:33you. What people ask what's different
- 33:35about us? We already know everything.
- 33:37We've been doing this for 20 years.
- 33:39My tax guy knows more about tax than I do, which is good.
- 33:43That's the way it should be so, so we don't need training, we
- 33:46just need you to show us how the process goes and what it is you
- 33:49want us to do. Yeah.
- 33:51Well, you know, that kind of growth with basically zero
- 33:54marketing it sounds like. I mean, that's how you that it's
- 33:58basically your, your validation right there.
- 34:01Because ultimately I have never had a good tax prepare ever.
- 34:06You know, I've been through a half dozen.
- 34:08It's awful. I'm jumping around.
- 34:10I shouldn't say that I I had a pretty good outfit last year,
- 34:14you know, but it it's I don't know why it's such a big demand.
- 34:19So when you find somebody good, hold on a dear life, you know,
- 34:22it's like, OK, cool, I can trust you.
- 34:24And again, I think it's because it's so scary and it's so out of
- 34:27the wheelhouse for most founder CE OS, you know?
- 34:31Yeah, I think you, you hit a point there from a founder
- 34:33perspective, my mostly my, my attorney and he and I own a
- 34:38place here in Florida at the beach and he's in Fort Connell.
- 34:41So he's not too far from you, but you know, I've known him
- 34:442530 years and he's excellent. So when you, when you have those
- 34:48three or four people, whether it be your tax person, your
- 34:51attorney, our chief operating officer and president used to be
- 34:56my boss at one of my last jobs. He was the CEO.
- 35:00He and I reconnected 5-6 years ago.
- 35:02And then I was like, are you kidding though?
- 35:05You think I want to do operations?
- 35:06Are you out of your mind? Yes.
- 35:08When can you start? So, so I do find I don't know if
- 35:12you have and you're endeavours, but you know, you got 345 people
- 35:15around that are really good that you trust you're doing pretty
- 35:19good. And in our case also my business
- 35:21partner in India, if you're, if you're going to be out of the
- 35:23store, you got that person's got to be a owner and you got to
- 35:26trust them with your life and you really need to know them.
- 35:30People that I hear. I have a large company client
- 35:34friend who's like, hey, we're just going to go to the Indian.
- 35:37I'll bring it up and say I'm sure it's easy.
- 35:39Somebody told me it's easy. I'm like, you have no one.
- 35:43Like, yeah, go ahead, yeah. Go ahead, it'll take you 18
- 35:46months. And a bunch of bribes you can
- 35:47get incorporated but other than that it'll all work out very
- 35:50easily. It's, you know, things that are
- 35:52hard and hard for a reason. Whereas equal.
- 35:55I tell them, hey, I can start LLC in Florida on this computer
- 35:59in the next 15 minutes for a couple hour bucks.
- 36:03Nobody believes that either. So it does does make me realize
- 36:06how doing business in in our market is is quite different.
- 36:10Yeah, I love that. You need, you need a.
- 36:12Like a, a small team around you like it like a pirate ship crew.
- 36:17You know, you, you got to have the tax guy.
- 36:19You got to have the attorney man, you know anybody, any
- 36:23business attorneys too. I, I could use one of those as
- 36:25well. What else you got to have, like
- 36:28the massage therapist? That's a real good one.
- 36:31I'm or a therapist? Yeah, yeah.
- 36:33Personal Therapist. I can't find a good one there
- 36:36either. Let's see a good General
- 36:40practitioner Dr. I'm looking for another one of those.
- 36:43I'm realizing that I'm out to sea without a crew like.
- 36:47What am I gonna and and? There are, you know, I'm in this
- 36:51business outsourcing some of that makes sense too.
- 36:55Yeah, I'll find and you trust and people that you trust that
- 36:58go by referral. You you asked about our model, a
- 37:01lot of it's referral, but it's people that I trust that that
- 37:04trust me or trust somebody I know.
- 37:06And you can't beat that and starting up any kind of
- 37:08business. Yeah, well, and I love that
- 37:10aspect. Of like, you know, basically
- 37:12we're just doing kind of a zoom call here with descript, but
- 37:15like, you know, that's just across the board.
- 37:17You know, it's like if I have to go see my General practitioner
- 37:20and that's kind of the hang up. It's like, look, I I want to get
- 37:23blood work done. On my.
- 37:24Terms send you the thing you send me back with like the fact
- 37:27that I have to go to an office and show up and you look in my
- 37:30ear and like, you know what I mean?
- 37:31It's like it feels dated, you know?
- 37:33So like a lot of these, these models are changing, which is
- 37:36great because it opens up the talent that you can pull for
- 37:39your, your pirate ship from all across the planet, which is
- 37:42amazing, you know, and we, we use a lot of chat.
- 37:46In our day, in our day-to-day interaction with clients.
- 37:49And we love it and we find it. That's what they want.
- 37:51They don't want to call us. Oh my God, no.
- 37:54The, the the world changed tremendously quickly.
- 37:57Yeah. All right, John.
- 37:59We're ready to go into the quantum round.
- 38:01Are you ready? I'll I'll try.
- 38:05First question. Why is ADP so terrible?
- 38:12Oh my God, yes, I'm going to divulge my, my girlfriend to be
- 38:17quiet. So I get to listen to this all
- 38:18the time because my answer is simply because they want to be,
- 38:23you know, they're, they're the big boy.
- 38:25Here's our service model, here's our five or six boxes.
- 38:28And here's how they work. If you if you don't like that,
- 38:31then maybe you should go someplace else, but that's how
- 38:34you build that kind of probability and scale in that in
- 38:37the, in the payroll business. So it's it's by design and I I
- 38:41don't generally trash. Companies, but ADP has done me
- 38:44terribly over the years and so QuickBooks too, just awful.
- 38:48You know, it's just like, boy, well, I'm, I'm with you.
- 38:51I'm a QuickBooks. Guy forever alone my clients are
- 38:53so yes, I agree with you there too.
- 38:55Like what? What do I got to do?
- 38:57You can't. There's and unfortunately with
- 39:01QuickBooks I got to call and there's nothing I hate more than
- 39:04that. Yeah, well, in QuickBooks it's
- 39:06like. How do I just get in to get
- 39:08something without 17 pop ups trying to sell me something new?
- 39:11It's like where's my dashboard? You're always moving around if
- 39:15they if they change. The damn look and feel one more
- 39:17time. I swear it's like a panic every
- 39:22time I log in. I'm.
- 39:22Like, Oh my God, what's happening?
- 39:24Oh my God, what's Where'd everything go?
- 39:27Yeah, we have our new. AI tool.
- 39:28That's great. It's just why I just, I just
- 39:30want to income state by my mum. How hard can this be?
- 39:34What experiments are? You running with AI right now or
- 39:36what are you tinkering around with?
- 39:39So, so our own. System that we called drive or
- 39:43pointed in four or five directions originally.
- 39:47I'll tell you this is where I want to be a little different in
- 39:50that it was easy for us to say internally, hey, let's take
- 39:54this, we do this for 20 clients, let's automate it and be more
- 40:00effective and make more money. Where where we are now is, hey,
- 40:03let's just talk to the client. He'll be upfront.
- 40:06There's a different economic model for it.
- 40:08It's software. It's software with ongoing
- 40:10support. It might be less money for me,
- 40:14but it's coming anyway. So, you know, they've, they've
- 40:18been cruising around looking at Cup Island, looking at different
- 40:20things that in their business that we could do together.
- 40:24So we're, we're taking that from practical perspective and say,
- 40:28what's our biggest volume problem and working our way down
- 40:32where, where I think that leads us to in the future is leading
- 40:36with that as the sale. But instead of, hey, you've got
- 40:40five people in your HR department, you know, I got 5.
- 40:43We'll do the work. Don't worry about it.
- 40:45It's, hey, I've got some technology that can, you know,
- 40:49take care of what three of them are doing already and they can
- 40:51go do something that has a lot more value to our organization.
- 40:54Yeah, they could build customized.
- 40:56Tools, dashboards and just plug into your information into your
- 41:00API essentially and you become kind of the the backbone for for
- 41:04for the data, but also for the compliance and and just the
- 41:07privacy so they don't have to worry about it.
- 41:10It's funny you mentioned. ADP because the one thing the,
- 41:13The funny thing, the HR business nobody wants to talk about, they
- 41:16make it hard to leave. So you're never going to get
- 41:19your data in a usable format ever.
- 41:23You're going to get a here, here, here's your stuff, good
- 41:25luck. And the minute you terminate,
- 41:27you're screwed because you're going to be turned off in 30
- 41:29days. The tools that are starting to
- 41:32exist, like the tool we develop can adjust that data pretty
- 41:36quickly. You know, run your last payroll
- 41:38register, we can adjust that. It's going to be sitting around
- 41:41in a Jason file. What do you want to do with it?
- 41:43Tell us, Tell us where you are to go.
- 41:45You had said earlier about our HRS implementation group.
- 41:48That's what they do. So we help people move from A to
- 41:51B Love it. OK, so.
- 41:56You know, let's say Cognet, someone shy or shows up at your
- 42:00front steps with with a duffel bag of gold bars and they want
- 42:04to buy Cognet. You're like OK, but as we well
- 42:08know that you need something to do and you're you're going to
- 42:10start something new. What would be the next project
- 42:13after Cognet if you had to? Something to work on.
- 42:17Not fishing and golfing. We.
- 42:19We've covered that easily, you know, for for me, it's the
- 42:24application of technology and what I've already been doing for
- 42:2635 years, which is HR. Yeah.
- 42:30In this space, you know, I have a friend who has a dream.
- 42:33He wants a system that makes coffee and does everything else
- 42:36that you'd ever wanted to do. But how do I shorten the, you
- 42:40know, quote cycle? For example, I'm you.
- 42:43I need workers comp and payroll. How do I get that?
- 42:46And can I get it, like today? Well, right now the answer is
- 42:49no, not even close. Solving a business problem like
- 42:53that, the one we've talked about is small contractors.
- 42:58So they they come build a house, they do the roof for three
- 43:00months, they take two months off, they go surfing, they come
- 43:03back and do it again. They still need a cert or a
- 43:05certificate of insurance, they need to pay people, they need
- 43:09instantly to create this infrastructure.
- 43:12How do we do that? That that's a problem that I've
- 43:14always thought about wanting to solve.
- 43:16So I'd probably take some of my gold bricks and do that.
- 43:20I'd probably also be asked to stay at Cognet for a little bit.
- 43:23So I'd have to think my way through that.
- 43:26You know, they're the that's the reality of of being a founder
- 43:29too, is if I sell it, great. I'm not allowed to go anywhere
- 43:33for a whole I don't sell. You got to manage that side.
- 43:37Yeah, that, that is interesting kind of.
- 43:38Instant infrastructure for businesses.
- 43:41I I'm thinking that, you know, down there in Florida too, you
- 43:43guys have a hurricane season every year.
- 43:45So like, you know, there's just a massive flood of contractors
- 43:49that that jump in to like rebuild stuff or at least
- 43:52contain it. You know that it could be that
- 43:54could be a really interesting business.
- 43:57Yeah, and some. Of the the larger insurance.
- 43:59Companies have tried to do this, but they only do it in in like
- 44:01clerical and things where they, they don't take any risk.
- 44:05So you know, how how do you help companies get infrastructure
- 44:09more quickly and anybody can incorporate online fairly
- 44:13effectively. The question is, how do I
- 44:16magically have a business? Around.
- 44:20Hiring, do you have any advice or frameworks?
- 44:23I you know, there's that adage of, you know, a hire slow, fire
- 44:26fast. That seems to be like a pretty
- 44:28good plan. And you know, do you anything
- 44:31you you might share with the audience?
- 44:34Yeah, they they don't. They were.
- 44:36Asking me because they know my first instinct is to say fire
- 44:39them and let's move on. And they, they hate that.
- 44:42So my HR person, Kevin surely hates to see my, my phone call
- 44:46come in. You know, the fact that we're,
- 44:49we're in a market that typically in a business that India BPO
- 44:52that turnovers 100% pretty much for our space.
- 44:56We're about 35 and we tried to make more of a science of
- 45:00hiring. I'm very lucky of the fact that
- 45:02I have a minority investor who's just a highly, highly
- 45:05intelligent HR guy and he's retired.
- 45:08And we're, we're going through a process right now where we're
- 45:10saying, what can we build predictive modeling on hires?
- 45:15Now humans are irrational. So I don't know how well that's
- 45:18going to work. But we're looking at all of our
- 45:20past data and saying, where did we win and where did we lose?
- 45:24And how can we at least understand that data when we go
- 45:27to hire? So we're trying to be more
- 45:30thoughtful on that end. We we though are in the business
- 45:33of growing managers and growing people.
- 45:37So we've we've learned to be a lot more, I'd say patient on
- 45:41that end. I have, that's for sure.
- 45:43Luckily I don't make a lot of the higher fire decisions
- 45:46anymore, you know, smart people doing that for us.
- 45:50But I think, you know, the, the, the tough part of where I've
- 45:54been in with the seat, I've said it in my past, is that you tend
- 45:58to move on. I think I love the bus theory.
- 46:01You know, we, we're moving around the senior manager right
- 46:04now. Hey, we need him on the bus.
- 46:05He's in the row seat. We just got to get him someplace
- 46:08else. I find more joy and more skills
- 46:12needed in that decision making process of let's move somebody
- 46:16around than anything else. And then to see them go there
- 46:20and do well is is very rewarding.
- 46:22How do you do that? How do you?
- 46:26Figure out what a good position on that bus is for somebody the
- 46:30tough. Well, I think #1 is what is
- 46:32motivating them. You know, 111 of the people that
- 46:35did fantastic where we moved her.
- 46:37The answer was money. Sometimes it's how many direct
- 46:41reports that I have. You know, what do I see prestige
- 46:43or, or you know, importance or how it how, because it may not
- 46:48be what mine is minus profitability every time.
- 46:52You know, your group, group by group.
- 46:53How are we doing from a probability perspective?
- 46:57Your employees, your managers may not see it that way.
- 46:59So putting that person in a position where there was the
- 47:02hey, great, if you can grow clients, we'll, we'll pay for
- 47:06it. So, but that I'm not kidding
- 47:09you. That took us three years to
- 47:10figure out and it wasn't, wasn't pretty along the way.
- 47:14So I think there's some science to it and and art as well.
- 47:19There's, you know, there's a good feel aspect to knowing the
- 47:22people. Yeah, yeah.
- 47:24If. You got a sales team and people
- 47:25aren't motivated by money. They are on the wrong scene.
- 47:28The bus I I hated to say. Sales is the easiest 1 you
- 47:32either made the number you didn't Staff accountants.
- 47:36How do you evaluate a staff account?
- 47:38I don't know We we closed on time again this month, but I may
- 47:42have the worst for best people in the world.
- 47:44I'm not quite sure what are. Some interesting.
- 47:47Things about Indian culture in the workplace that we might not
- 47:50know, you know, I know you know, for millennials it was like ping
- 47:54pong and kombucha on tap. You know, what are the little
- 47:58perks and bennies of having a Indian team that that they
- 48:01really like? I'll tell you the.
- 48:04Thing that that. That interests me hugely is too.
- 48:07They have their millennials as well.
- 48:09So, you know, the, the younger kids in India are, it's a
- 48:13different path, but it's a similar path at the same time.
- 48:17The, the one that surprised me and still still befuddles me is,
- 48:23you know, their, their parents involvement realized a lot of
- 48:25our younger kids specifically still live with their parents.
- 48:28So their parents are very involved in their lives and
- 48:32where they work. And you should I take this job?
- 48:35Is there transportation? Is there that whereas kids here
- 48:38are like, you know, whatever, I'll move, I'll move across the
- 48:40street for five grand tomorrow and I have to ask mom and dad or
- 48:44anybody else that that that aspect.
- 48:48The thing I love probably more than anything, though, is the
- 48:52intelligence gets applied. They love to understand a
- 48:58mistake was made and they love to figure out why.
- 49:01And they're very transparent about it.
- 49:03I used to have to sneak into my office on a Sunday and you know,
- 49:07look at people desk and find them hiding stuff on me that
- 49:10they screwed up that they didn't want to bring to the forefront
- 49:14that cultural aspects very different.
- 49:16Whereas there 5-6 people get together really quickly and say
- 49:21how do we find this and make sure it doesn't happen again to
- 49:23fix it and communicate to the client, let them know it's a
- 49:26very much a group organizational thing.
- 49:29Whereas here not so much interesting.
- 49:32You know I love the. Multi generational living too.
- 49:34That's that's something I I moved down South to the sticks a
- 49:37little bit. I'm down by Roxboro probably,
- 49:40you know, 15 miles southwest of Denver, so kind of in the
- 49:44foothills and it's kind of a new community and they're we're
- 49:48probably 5-6 miles from Lockheed Martin.
- 49:51That's all nestled into the thing.
- 49:53I don't know what they're working on spaceships and
- 49:54rockets or something. You probably don't want to know
- 49:57I. Don't want to know I.
- 49:59Do because I also moved over here because I feel like it's a
- 50:02hot spot for UFOs, but that's beyond the point.
- 50:05But as a because as a result, there, there's a bunch of Indian
- 50:10families here that are, you know, engineers over at Lockheed
- 50:14and they have their parents with, with them.
- 50:15So it's like, you know, grab the Nanas and the Papas, the parents
- 50:18and the kids are all in the same house.
- 50:20And, you know, having kids, my kids are 17 and 18.
- 50:23I'm kind of looking at, I'm like, hey guys, look at this
- 50:25like, you know, this would be actually really.
- 50:27Cool to like, you know you have dad around.
- 50:30Forever. You know we don't know our.
- 50:32Neighbors names. Yeah, You know, we're the
- 50:35opposite. I have a little game, but it's
- 50:38it's a parable, if you will. But every time I go over, they
- 50:42know I'm there, Of course, because I've let, I've had to
- 50:45let everybody know where I'm at when I get in, when I'll be in
- 50:47the office and my driver brings me in and I I've literally tried
- 50:51to bribe him and say, you know, John, do not let them know that
- 50:55I'm on my way. I want to just show up in the
- 50:57office and walk in and go talk to a couple people.
- 51:01They're working on something and just kind of elements surprise
- 51:05you will never going to happen. It's it's a it's a conspiracy
- 51:09all the way in. And my entire HR team comes down
- 51:13and putting my vice president of HR.
- 51:15They are there with some gifts, candy, some flowers.
- 51:18It's it's a show. Yeah.
- 51:20And this is this is just India. This is not for me because I'm
- 51:23the boss of the owner. Any of that crap.
- 51:26It's it's cultural. The the the guest is king or
- 51:30queen and I, I I have literally for years tried to figure out
- 51:35how to get into that office without them knowing that I just
- 51:38can't seem to get it done. The surprise Pop it and they
- 51:40probably. See this disrespect?
- 51:42They're like, how dare you join? They would.
- 51:44Yeah, they would. Me, I'm just like, I know I'm
- 51:47going to pull it off one of these days.
- 51:51And and I look at my own culture, I realize I'm American.
- 51:54I'm like, they want to carry my back.
- 51:56Nobody touches my backpack. Come on, my entire life is in my
- 51:59backpack. I don't let anybody touch it
- 52:02ever. So the the little nuances come
- 52:06out when you do business in other cultures.
- 52:09I tell you, I I, I absolutely adore and love the Indian
- 52:13culture too. You got to go Incognito you.
- 52:17Got to like. Show up with like a Easter Bunny
- 52:18costume on or something and do like a little danceagram and
- 52:22they'll be like, what is this? And then you'd be like,
- 52:24surprise. No, no.
- 52:30OK, I'll see how TSA likes that one when I come back through it.
- 52:33Nice. John, as we're wrapping up here,
- 52:35I know Justice Ventures is like near and dear to your heart.
- 52:38You want to give them a shout out and talk a little bit about
- 52:40the work they do? Sure.
- 52:43One of my friends, Jeff Pencrest.
- 52:44Started it and he's an attorney the DC area.
- 52:48He he and I have done business in Indy together and he helps me
- 52:51out with some of our legal issues.
- 52:53But their their goal in life is they go to northern India, they
- 52:58pro bono represent people. And I know this will sound very
- 53:02strange, but there are still cases within parts of India
- 53:06where people are kind of indentured, where is, hey, you,
- 53:09you owe me a debt. You're going to work for me
- 53:11under terrible conditions. And this is the way it's going
- 53:14to be. They represent those people in
- 53:17court for, for nothing. So their charity is all about
- 53:21lawyers who come over, have lawyers in India, but also
- 53:25lawyers from the state and represent people who are in bad
- 53:29situations and try to get them out of it.
- 53:31We just, we love that. We also started something called
- 53:35Contact care. So locally in in Chennai where
- 53:37we are, we're out out and about and get our folks out and about
- 53:41and do visits to orphanages. Anything that makes sense for
- 53:46us, we let our employees kind of drive the bus on what they want
- 53:50us to go see or, or what's important to them.
- 53:53That outreach is is really important to me as well.
- 53:57Amazing. And that's.
- 53:58Justiceventures.org, people can check that out kind of as we're
- 54:01wrapping up here. What's on your media plate these
- 54:04days? Any any fun movies or TV shows
- 54:07or albums or podcasts? What?
- 54:09What are you digesting these days?
- 54:13I I will admit. That my girlfriend and I binge
- 54:16watched House of Guinness yesterday on Netflix.
- 54:20I haven't heard of that. Somebody else.
- 54:22Somebody else turned that way. If you're a Peaky Blinders guy,
- 54:27same, same people. So it's about the history of the
- 54:30Guinness family and the transition from when the when
- 54:34the old man kicked off to his children taking over the
- 54:37business. And I got to tell you about, you
- 54:39know, for I'm not a big fan of reading business books.
- 54:44You know, I'm in business all day.
- 54:46I'm not AI do like to read, but yeah, from a binge watching or
- 54:51or media perspective, those are like types of things, you know,
- 54:53how can I not be in the outsourcing business for the
- 54:56next 6 hours watching something like that?
- 54:59Well, I didn't even hear about this.
- 55:01I love. Peaky Blinders and really just
- 55:03period gangster movies in general.
- 55:05You know, my favorite movie is Miller's Crossing, which is a
- 55:08Coen Brothers movie where it's basically the Italians against
- 55:12the Irish gangs. It's great.
- 55:14I love that stuff. Yeah, I.
- 55:17I kind of, we, we joke. I, my girlfriend Sasha, she's
- 55:22fantastic. She's not a movie watcher.
- 55:24Me and my friends quote movies all the times.
- 55:26You know, we'll come up with a, you know, leave the gun, bring
- 55:29the cannoli. Let's just start there.
- 55:31Since we're both gangster girls. I just get all of like talking
- 55:35about. Yeah, yeah, yeah, yeah.
- 55:37I could, I could basically go all day just reciting Fletch
- 55:41quote, you know. Ron Burgundy what?
- 55:46Yeah. Man I I watched this.
- 55:48New Bob Lazar documentary. I made my wife watch it too this
- 55:52weekend, which it's pretty cool. It's like really AI generated.
- 55:56But she wasn't buying it. She she doesn't think that that
- 55:58guy saw any aliens, but you know, it was fun.
- 56:01It was fun. I'll check.
- 56:03Hey, well, we. Might well AI might bring the
- 56:05Terminator to all of this soon enough, so we'll see how?
- 56:08I hope not. Hognethro.com John, where's the
- 56:12best place for people to connect with you personally online?
- 56:17The LinkedIn SO. You can find me there over there
- 56:20all time, wherever you're listening to this podcast.
- 56:23John's LinkedIn will be in the show notes.
- 56:25Cognet's website will be in the show notes as well.
- 56:27I really appreciate you joining me as it was so exciting to get
- 56:31to know your business and congratulations on such success.
- 56:35Thank you. Appreciate your time.
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