Latest / Founder Talk with Alex Sheridan / How to use FLOW STATE to be 500% more productive with Rob Krecak
Transcript
- 0:00You've started 10 businesses and then you've sold seven
- 0:02companies. And I was like, what?
- 0:04Like, how was that even possibly?
- 0:06My first thought was like, what do you know that most founders
- 0:09don't know? I would say a lot of success in
- 0:12entrepreneurship is just. Rob Kretchak, founder of Humans
- 0:15First. It's like, I'm doing a lot of
- 0:17things. I worked all day, but I look
- 0:19back on it and I'm like, did I really move the needle?
- 0:21When you're in flow, you're up to 500% more productive than
- 0:25when you're not in flow. And so that's why I'd like
- 0:28protect this time so critically and just really trying to do my
- 0:33best to get into flow every day. So you've obviously had multiple
- 0:35businesses going at one time. Do you recommend that for most
- 0:38entrepreneurs? It's a really good question,
- 0:41Alex, and probably the most effective thing is to do a good
- 0:44job with your existing clients because if you do a really good
- 0:47job and you amaze them, they will refer people to you and
- 0:51that is going to be your probably your number one source
- 0:54of leads. I really want to make sure that
- 0:56I'm enjoying the journey and enjoying what I'm doing.
- 0:58And if I'm not enjoying that, then I want to do something
- 1:01else. So man, I'm really excited to
- 1:05talk with you today. I was doing like research on
- 1:07your background and stuff and I saw, you know, you've started 10
- 1:10businesses and then you've had seven sales.
- 1:13You've sold seven companies. And I was like, what?
- 1:16Like, how is that even possible? You don't even, I mean, you look
- 1:18like a relatively younger person.
- 1:20So I'm like, what? Like my first thought was like
- 1:22what do you know that most founders don't know having sold
- 1:277 businesses and started 10? Because that's pretty uncommon.
- 1:31Yeah, I mean, I would say a lot of success in entrepreneurship
- 1:38is just grinding it out and doing the things that other
- 1:42people aren't willing to do, you know, and sometimes that if I
- 1:46can, I curse something. Sometimes that shit sucks.
- 1:49Like that's, you know, but that's that's where you create
- 1:52value is when you do things that other people aren't willing to
- 1:55do. That is why those things are
- 1:58difficult. And that's where you really can,
- 2:01you know, outshine other people. My wife and I have, you know, a
- 2:05list of family values and our number one family value is we do
- 2:09hard stuff. And it's not.
- 2:11So that's not just for the business world for me, that's
- 2:13also in our life. You know, we, we want our son to
- 2:16understand that we want to do difficult things because in the
- 2:20long run those things are usually, you know, very, very
- 2:25successful and also very challenging and rewarding at the
- 2:28same time. Yeah, I heard there's a saying
- 2:31it's like if you do the hard things, life becomes easy.
- 2:34If you do all the easy things only life becomes very hard.
- 2:37And I think it's like that common saying of like pick your
- 2:39hard, choose your hard, you're going to go through challenges
- 2:42and struggle to some capacity. I'd rather do it on a journey
- 2:46that I'm excited about, something that I'm building and
- 2:48I'm passionate about and I'm it's bringing me fulfilment and
- 2:51happiness. Like why would I not want to do
- 2:52that versus struggle and something that I hate?
- 2:55So so yeah, 7, you know, 10 businesses, 7 sold.
- 2:59Think of them listening right now.
- 3:00We have a lot of founders, entrepreneurs listening.
- 3:02I'm like, I'm just curious, maybe first of all, like what
- 3:04kind of businesses were those? And we'll get into some of the
- 3:06details and like how you think about business and that kind of
- 3:08stuff, but a general idea of what types of businesses, you
- 3:11know, have you started and sold. Yeah, so I the first three
- 3:17businesses were Anytime Fitness health clubs.
- 3:19So that's the world's largest 24 hour Coed fitness chain.
- 3:22Yeah, yeah, yeah. You know, great franchise.
- 3:25Really, really loved working with them.
- 3:28And I had three different clubs in three different states, one
- 3:31in Arkansas, one in Wisconsin and one in here in Illinois.
- 3:35And then I had 4U brick I fix cell phone repair stores.
- 3:38So those were all in the Milwaukee area and that was also
- 3:42a franchise. And then I had two technology
- 3:45startups and then I have my current consultancy, Humans
- 3:48First, doing fractional integrator work and fractional
- 3:51CFO work. So, you know, a kind of AI kind
- 3:55of joke that I have career ADD, although I do actually truly
- 3:59have ADD and ADHD, like legitimately diagnosed, but, and
- 4:05I always share that with people because I actually think that
- 4:08ADHD, although a lot of people say it's a, you know, it's a
- 4:12detriment, it actually is a something that can really help
- 4:16you if you learn how to mitigate the weaknesses related to that
- 4:20and then amplify the strengths. And so again, I joke that I joke
- 4:24that I have career ADD because I always, you know, get involved
- 4:29with something and then once I feel like I've mastered it, it
- 4:32almost becomes sort of boring. And so I move on to something
- 4:36else. And that's not to mean or say
- 4:37that I didn't like that thing, but I always want a new
- 4:40challenge. And so that's why I have a very,
- 4:44you know, wide variety of interests and my businesses are
- 4:47in a lot of really unrelated things.
- 4:49I mean, fitness and then technology repair are literally
- 4:52about as opposite as they could be, but I really like all those
- 4:56things. And you said, you know, ADHD,
- 5:00what is that? How does that show up for you?
- 5:01Because I feel like I've met a lot of entrepreneurs and being
- 5:03one myself, it's like we all kind of have a little bit of
- 5:06that. Like I need something to keep me
- 5:08going. Like I want to take on something
- 5:10new. I want to grow some, build
- 5:11something. And there's a time to do that.
- 5:12And there's a time to obviously just like, hey, I need to focus
- 5:15right now. Like I can do that next thing
- 5:16tomorrow or the next week or whatever.
- 5:17But how does that kind of show up for your daily life?
- 5:20Yeah. Well, one of the things that I
- 5:22think would be helpful to share with listeners is I didn't get
- 5:25diagnosed till I was 38 and I'm 42 or right now.
- 5:28So, you know, I, you know, went through all my schooling
- 5:32basically and launched and operated almost all of those
- 5:35businesses not having known that I had ADHD.
- 5:38So I actually wish that if I could go back and do it earlier,
- 5:41I wish it would have got diagnosed way sooner because it
- 5:44would have allowed me to, I guess, give myself some grace,
- 5:48right? And know that there's certain
- 5:51things that I do or things that I say or ways that I behave that
- 5:54are unavoidable because of ADHD. And it's not, again, it's not a
- 5:58negative. It actually is a positive.
- 6:00What's an? Example of some of that, like
- 6:02one or two of those. Yeah.
- 6:03So I'll kind of share a quick story.
- 6:05So you know, I was operating my 4 cell phone repair stores
- 6:10remotely while I was living in Denver and I while the stores
- 6:15were in Milwaukee. And so I basically couldn't be
- 6:18at the businesses physically. So I had a completely open
- 6:20schedule. So I and I had read all the
- 6:23books, you know, the productivity books like 4 hour
- 6:25workweek, blah, blah, blah, all these things.
- 6:28And I was like, all right, I am such a productive human being,
- 6:31right? And I thought I was doing all
- 6:33these things that were really valuable, but at the end of the
- 6:35day, if I had to write down a list of the things that I
- 6:39accomplished that were meaningful, it was actually
- 6:41really short. And so I started asking myself,
- 6:44I said, well, what what's going on here?
- 6:45I feel like I'm busy for 8 hours a day and I feel like I'm doing
- 6:48a lot of stuff, but it's actually not that valuable or
- 6:52not moving the needle. And so that, So what I realized
- 6:55is, and, and this again, this happens to a lot of people with
- 6:59ADHD, you can kind of go down these rabbit holes.
- 7:01And sometimes the rabbit holes are like, you know, helpful and
- 7:04interesting, but sometimes they like just piss away a ton of
- 7:07time. And I've found myself doing that
- 7:09so often that I, I realized that I had to take a step back and
- 7:13start to ask myself, like, well, what's going on here?
- 7:16How can I change my habits and my behaviors in order to truly
- 7:19move the needle on what's effective?
- 7:21And so like forced me to completely revamp how I was
- 7:25operating my business and what I was focusing on and how I was
- 7:28doing stuff day-to-day. And so I ended up running
- 7:31hundreds of, we'll call them small experiments on myself in
- 7:34terms of productivity. And, you know, now I've
- 7:38incorporated all of those habits into my day-to-day and I'm way
- 7:42more productive and focusing on the right things.
- 7:44And I also help other companies do that stuff.
- 7:47So I think that's a big one that you hit on, which is that a lot
- 7:50of entrepreneurs are busy, but not necessarily productive.
- 7:53You know, it's like, I'm doing a lot of things.
- 7:55I worked, I worked all day. But I look back on it and I'm
- 7:58like, did I really move the needle?
- 8:00Like, what did I actually do? We're gonna say something.
- 8:03Go ahead. Yeah, well, so I, I always,
- 8:05there's two simple questions that you can ask yourself and it
- 8:08literally could change your entire view on what you're
- 8:10doing. So here's the two questions.
- 8:12And I run through this with entrepreneurs all the time.
- 8:14The first question is, let's pretend this.
- 8:17Then this is more like comes from a hypothetical standpoint,
- 8:19so don't think about it quite literally.
- 8:21But let's just pretend that you only had two hours per week to
- 8:24work on your business. Not 2 hours a day, but two hours
- 8:27in the whole week. OK.
- 8:28And during those two hours, you can only do one activity 1 task.
- 8:32You can't like, break it up and say I'm gonna do a bunch of
- 8:34different things. What one activity would you do
- 8:38during those two hours to produce the most value for your
- 8:41company? So whatever the answer to that
- 8:43question is, I actually don't care.
- 8:45It's the next question that's more helpful.
- 8:47The next question is how many hours per week do you currently
- 8:51spend on that task? And what I, I've surveyed
- 8:55hundreds of entrepreneurs around the world and executives and
- 8:57the, so don't feel bad if the answer for you is 0 or close to
- 9:010, because the most common answer is between zero and five
- 9:04hours per week. So the average person what what
- 9:08they're really doing is they're going into their job or they're
- 9:11working for their business and they're being reactive.
- 9:14Every day they're reacting, they check their e-mail or they check
- 9:17their Slack, and then they spend all this time triaging those
- 9:21things when in reality, they should be spending the most time
- 9:24maximizing that activity to and as the answer to question #1 And
- 9:29so one of the things that I do is I help companies figure out
- 9:32how they can maximize their time doing that, that activity.
- 9:36And so think about it. If right now, let's say you
- 9:38spend 5 hours on that activity and I can help you get to 20,
- 9:42what does that do to the value of your company that just, we're
- 9:45not talking like a small increase that could literally
- 9:47double, triple the value of your company, especially if you can
- 9:51get everyone at your company to do that.
- 9:53Wow. I know there's people listening
- 9:55and I mean, I even for me and you yourself, right?
- 9:58It's like we think about this stuff all the time.
- 10:00The stuff that we should be doing to grow the business is
- 10:02not always what we spend the most of our time on.
- 10:05I think it's a good exercise to actually be able to like vet
- 10:07that stuff out and get it out there.
- 10:09Right. And so, yeah, wow, man.
- 10:11Like what are some of the, the tactical kind of things that you
- 10:13do? Is it time blocks?
- 10:15Is it, you know, like what are some of the, the things that
- 10:17you're actually doing in the calendar to to change some of
- 10:19these behaviors? Yeah.
- 10:20So I, I, I'm a huge fan of time blocking.
- 10:23I think that that's an absolute necessity.
- 10:24I think that there's a lot of ways to do it.
- 10:27I actually do something somewhat manually.
- 10:29Like I basically and and, and again, like this is through many
- 10:33ways of experimenting on myself. So it doesn't mean that you
- 10:35necessarily have to do it this way.
- 10:37But what I've found works best for me is I'm really the
- 10:40freshest and do my best quality work early in the morning.
- 10:43So basically every day from 8:00 AM to 11:00 AMI have an
- 10:47infinitely, you know it. That time infinitely blocked off
- 10:50my calendar, like forever. Monday through Friday, 8:00 AM
- 10:53to 11:00 AM. And that's my GSD time, which
- 10:55stands for Get Shit Done. So basically I do everything
- 10:58possible to try to not schedule meetings, not do not take phone
- 11:03calls, not make appointments, and just spend the first three
- 11:05hours of the day doing the most important stuff for that day.
- 11:09And for you, what are what is that usually for you?
- 11:11What are those activities? Yeah.
- 11:12So it depends on what I'm doing. If I'm working for a consulting
- 11:15client, it might be doing an analysis for them.
- 11:18If I'm working on a business like let's say it was for, you
- 11:20know, for the cell phone repair stores, it might be, you know,
- 11:24figuring out, maybe analyzing the financials for that business
- 11:28or analyzing some of the reports and figuring out how we could
- 11:30make that business more profitable.
- 11:32Or meeting with a key. Figuring out how I could create
- 11:37a structure for the staff in order to be able to scale the
- 11:40business or something like that. You know, things that are
- 11:43important, but you, if you don't set aside time for, you're not
- 11:46gonna be able to, you know, move the needle on them.
- 11:49Very much it. Almost feels like you could turn
- 11:515 working days into ten. Well, if you're like, you can
- 11:54manipulate time as an entrepreneur, and I think that's
- 11:57one of the most valuable things we could possibly do.
- 11:59Well, it's it's Oh my God, that's so that's so great that
- 12:02you just said that, Alex, because here's actually the
- 12:04reason that I do this is there's some data behind what you just
- 12:07said. Here's the data.
- 12:08And again, I, I'm a I'm a finance guy.
- 12:10I love data and all the, you know, numbers.
- 12:12So when you get into a deep work state called flow, right, which
- 12:17is what we're eventually trying to get to by being by blocking
- 12:20off this three hours where you have no distractions.
- 12:23These researchers from Harvard did a study and what they found
- 12:28is that when you're in flow, you're up to 500% more
- 12:32productive than when you're not in flow.
- 12:34So what that literally means, and I'm so glad you mentioned
- 12:36that, what that literally means is if you, if you get, if you
- 12:39block off 2 hours per day and you're in flow, you can
- 12:41literally accomplish more in those two hours than an entire
- 12:44day without flow. And so that's why I'd like
- 12:47protect this time so critically and just really trying to do my
- 12:52best to get into flow every day. Does it happen every day?
- 12:55Absolutely not. It doesn't.
- 12:56It doesn't work like that. But even if I can get into flow
- 12:59two or three days a week and crush it for three hours, I
- 13:03literally can get more done in those that time than an entire
- 13:06work week otherwise. Dang, so there's like data
- 13:08behind this? That show I figured there was.
- 13:10That what you said is true. Are there any things that you
- 13:13found helpful to be able to get into flow state?
- 13:16And how do you know if you're in a flow state to begin with?
- 13:18Don't worry, we're gonna get to the business.
- 13:20I've got a lot of good business questions I'm gonna ask you
- 13:22about selling and that kind of stuff.
- 13:23But this is just a good conversation cuz I think this is
- 13:26like instantly valuable for people and applicable to them
- 13:28right away. What is flow state?
- 13:30How do you get into it? Yeah.
- 13:32So flow state. So think about the last time
- 13:35that you were at your at your job or working for your company
- 13:38and you just felt like everything was just going
- 13:41amazingly well, like you were crushing it that day.
- 13:44You know, all, all the your meetings went really well.
- 13:47Everything was just flowing smoothly.
- 13:50It was like running really smoothly like that state of
- 13:53mind. And, and maybe another thing
- 13:55that might accompany that is time just seemed to go by really
- 14:00quickly. Like it seemed like the time
- 14:02just evaporated in a good way, in a good way, not in a bad way.
- 14:06I feel like I'm in flow a lot of the time, but it sounds really
- 14:10nerdy. But like when I'm financial
- 14:11modelling, like, you know, I just put on some good medium
- 14:14techno music, you know, blah, blah, blah.
- 14:16And I'm just like in the Excel, I'm like, Oh my God, this is
- 14:19actually great to me. It's like, it's like building
- 14:22the financial vision for a company.
- 14:25So anyway, the, the reason though that I, this is so
- 14:27important is, and again, let's go back to some data when you're
- 14:32in flow and you're interrupted, right?
- 14:35And that could be by a phone call, e-mail, whatever, your
- 14:37wife coming in and saying hello. It takes you 26 minutes to get
- 14:42back into Flow 26. So basically every single time
- 14:45you get interrupted, it massively cuts down on your
- 14:48productivity. And so the whole idea behind
- 14:51this time blocking system for me is to block off 3 hours, get
- 14:56into Flow, have no distractions, and just get a lot of work done.
- 15:01To directly answer your question, how do you do that?
- 15:04It's really about creating a structure to not have these
- 15:08distractions and give it, but most importantly, giving
- 15:11yourself permission to know that you can check.
- 15:14You do. You don't have to check your
- 15:16e-mail or Slack every three hours or during that three hours
- 15:20and everything's going to be OK. Yeah, like you really have to
- 15:22give yourself permission to do that.
- 15:24Yes, zombie apocalypse will not break out if you don't check
- 15:27your e-mail. Yes, it's so true.
- 15:30But it's an important thing because we do.
- 15:31The reactive part we said earlier is so key.
- 15:34I've got these smartphones which are awesome, but they're also
- 15:36like terrible at the same time because you're just, I find
- 15:39myself sometimes just like checking this app, this app,
- 15:41e-mail, social media, this, this, I'm like, what am I doing?
- 15:43I'm just looking for the next hit, the dopamine hit, you know
- 15:46what I mean? So.
- 15:47And yeah, and, and a lot of So what people say to me because
- 15:52you, you were laughing earlier, like, well, yeah, your life
- 15:55isn't gonna end if you don't check your e-mail for three
- 15:56hours. But The thing is a lot of people
- 15:59feel like that they totally like they have to be basically a
- 16:02chain of their e-mail. And I've actually thought really
- 16:05deeply about this and I think here's the reason why they can't
- 16:10get away from their e-mail for three hours.
- 16:12Almost every company has not set out written standards of
- 16:16communication about how, when and how much they communicate.
- 16:20So if that's not set from the ideally from the management or
- 16:24leadership of the company, then what happens is everyone is
- 16:28forced to guess how and when and how much to communicate.
- 16:32And when you guess there's no clear standards.
- 16:35And so some people might be following some standard and
- 16:37other people might be following something different.
- 16:40This all this guessing just creates a ton of stress for
- 16:43people and it wastes a massive amount of time and duplicates
- 16:47efforts. So by simply having a document
- 16:49that's communicated from management that determines how
- 16:53and when and how much the company as a whole communicates,
- 16:56it dramatically changes everything about how the company
- 16:59operates. Because now instead of you
- 17:02thinking that you have to check your e-mail once every 20
- 17:05minutes, you get to, you know, take two hours and be in flow
- 17:10and you and because your CEO told you that that's OK, it's
- 17:15not a big deal. That's such a good point because
- 17:18people, no, it totally does because people just just feel
- 17:20obligated to kind of look at something and be like, oh, if
- 17:23it's been a couple hours and I haven't responded, they might
- 17:25think I'm not working. I'm not saying whatever.
- 17:27And it's mostly it's just in our head.
- 17:29But if you don't communicate that as the leadership team,
- 17:31it's like they just, they're not going to know, right?
- 17:33Makes me think about my team. You should probably maybe
- 17:34communicate that a little better, but so.
- 17:37And, and one thing, by the way, just you, you said this about
- 17:40your team. I'm happy to share with you and
- 17:41of course share it with all the listeners.
- 17:43There's a template that I have that is, you know, basically you
- 17:48just use the template. It's, it's very simple, it's 2
- 17:50pages, it's not complicated and I'll just give you the template
- 17:52and you can adapt it for your team.
- 17:54There's instructions on it. Cool.
- 17:56But I, I share all these things with people as an open source,
- 17:59you know, content essentially 'cause I just, I know that
- 18:02they're helpful tools and they're not very complicated and
- 18:05they really make a big difference.
- 18:06So if I can share the tools with you and your listeners, you
- 18:10know, and they can find some value, I'm more than happy to do
- 18:12that. You can include a link in the
- 18:14show notes or whatever. Yes, we will.
- 18:15It's just going to say we'll definitely link it up in the
- 18:17show notes for sure, along with website and all the other stuff
- 18:19because I think, I think if you're listening now, you
- 18:21probably would want to snatch that up.
- 18:23I find my I'm kind of like you. I'm a morning person, so for me,
- 18:27I get up, you know, I try to get good sleep every night, go to
- 18:29bed decently early and then I wake up around 53545.
- 18:32Nice early. Yeah.
- 18:33And then I kind of like by, you know, 556 o'clock.
- 18:36I've been trying now to read a few pages of the book before I
- 18:39jump on the digital devices. That's kind of a little helpful.
- 18:42So good. But that's a recent thing.
- 18:44But then I'll just jump into work and then from six to seven
- 18:47house is kind of quiet. No one's really up.
- 18:49I'm not really going through emails because I feel like no
- 18:51one's really busy anyways. And I just kind of hop in that
- 18:54flow state and I'm knock on whether it's sales stuff,
- 18:56whether it's working on content, whatever it is, it feels nice.
- 19:00It feels really nice. And then there's certain parts
- 19:02of the day, like two or three o'clock where if I'm not
- 19:03careful, it's like 2 hours go by and I'm like, what did I really
- 19:06do? Like beside to respond to a few
- 19:08emails and do this and do that and respond to comments or
- 19:10whatever. But it's like, is that really
- 19:12what I should be spending my time on?
- 19:13So yeah, it's interesting, man. Going back to the businesses,
- 19:17what are, and you, you could share obviously what you want or
- 19:20what you don't want here, but the sales of the company, are we
- 19:23talking like bigger, like how much for maybe some of the
- 19:25bigger exits? If you're comfortable saying 6
- 19:27figure, 7 figure, did you sell any businesses that you wish you
- 19:32wouldn't have sold? They're like, what was that
- 19:33process like? Yeah.
- 19:36So you know exits for the company, I will just say they
- 19:40were under 7 figures, but I'll and I'll leave it at that for
- 19:44you know each individual company.
- 19:45Yes, but but you sold. Seven of them.
- 19:48So it's like it adds up, yeah. Yeah, yeah.
- 19:51I mean, yeah, you can kind of do the math on some of that.
- 19:54But honestly, what's interesting is I-1 time I, I, I calculated.
- 20:03Now it's, it wasn't a fair comparison.
- 20:04It wasn't a fair comparison, but I calculated for my best
- 20:07performing health club. How much time I was spending and
- 20:12how how much profit I was making off that club.
- 20:15And then I compared that to how much time I was spending and how
- 20:18much profit I was making on all four of the cell phone repair
- 20:21stores combined. So again, not a fair comparison
- 20:23because I was cherry picking my best unit of 1 and comparing it
- 20:28to the average of all those. But basically I calculated that
- 20:32I was spending 20 times more time to earn the same amount of
- 20:37money in the cell phone repair stores as I was.
- 20:39And that's why you sold it. Yeah.
- 20:41I mean, it makes sense. I mean, yeah.
- 20:44And, and like, I still think about that and get sick to my
- 20:46stomach a little bit. But you know, it was a good, it
- 20:50was a good reminder that a lot of things in business really are
- 20:54the 8020 or the 9010 or, you know, 95.5, whatever, however
- 20:58you want to word it. But you really have to be asking
- 21:01yourself what is the 80%, what 80% of the results come from 20%
- 21:06of my effort. And then when you, when you're
- 21:08sure that you've identified that, then you double down or
- 21:12triple down on that. I really, it was a really hard
- 21:14learned lesson for me. It's.
- 21:16Funny you said that because I was recently, the last couple
- 21:18days had a conversation. We were thinking about going to
- 21:20this conference, right? And it's an industry conference
- 21:22where our target customers are there.
- 21:24So it'd be good for us to be there.
- 21:25And I was like wonder if we shouldn't get a booth and like
- 21:27go all out and get this stuff. And it's like, you know,
- 21:30anywhere from 7 to $12,000 to do that.
- 21:33And then you've got other expenses there's and then you
- 21:35got several days away from the business, which is like a lot of
- 21:37time and resources money. So I was thinking about it and I
- 21:40was like, kind of like what you're just talking about making
- 21:42the decision of like, is it worth it?
- 21:44Where am I spending my time and money and resources?
- 21:46And I was like, well, if we put 8 to 10, whatever 1000 into
- 21:49LinkedIn ads because I have a good brand there.
- 21:52And I spent those two or three days that I would have been at
- 21:54the conference just like messaging ideal clients,
- 21:57leveraging the brand and the content that we're doing.
- 21:59I'd probably book X amount of meetings and the ads from
- 22:02spending 10,000 because we spent 16,000 in LinkedIn ads and got
- 22:05150 plus worth of revenue. So it's like the ROI there's
- 22:08through the roof. If we just spent that money
- 22:10there. Is that like, you know what I
- 22:13mean? I started planning out.
- 22:14I was like, maybe it doesn't make sense to get a booth to
- 22:15this conference. Now I do see the other side
- 22:17where it's like you're in person, you're building
- 22:19relationships. I actually think both is the
- 22:21probably the, the answer potentially.
- 22:23But I, I, I do start weighing those things out to say, is it
- 22:26really worth it? And what else would I could I
- 22:27potentially do with this money? And what's the best use of my
- 22:30time? I think that's one of the
- 22:31biggest struggles. So it's like, where do you spend
- 22:32your time as an entrepreneur, as a leader?
- 22:35Yeah, it you know. And the, the thing that's
- 22:39complicated about entrepreneurship is there's a
- 22:42lot of things that you need to do where there's not an
- 22:44immediate or measurable ROI, but they're still valuable, right?
- 22:48Like, you know, like you said, building relationships, how do
- 22:50you quantify, you know, the value of building relationships?
- 22:54That is, I think it's possible to do, but that's really
- 22:57challenging. And and so it does become hard
- 23:01because you also have to weigh these long term, these things
- 23:05that build long term value with all the things that you kind of
- 23:08need to do immediately, right? Like certain things can't wait
- 23:11depending on the nature of your business.
- 23:13Some some businesses have more things like that than others.
- 23:17Do you look at businesses from like, because I've heard quite a
- 23:21bit that there's two types of businesses you're going to
- 23:23build. 1 is a lifestyle business where it's like you potentially
- 23:26small team, nimble team, you're making good money, 6 figures, 7
- 23:30figures, revenue, potentially profits.
- 23:34Lifestyle's good, work hours are not crazy, but you're probably
- 23:36not going to sell that company for millions of dollars, right?
- 23:38And then there's the performance based business, which may be a
- 23:42software company or something that has a little more upside.
- 23:44Maybe you get some investors and you're going to work grinded out
- 23:47until you can eventually sell that business.
- 23:50Do you sound like you've been a little bit more on lifestyle or
- 23:52maybe a combination of lifestyle and performance?
- 23:55I'm curious where you see those two sides of things and if you
- 23:58encourage or find one more attractive than the other.
- 24:01Yeah, for sure. My, my businesses have been
- 24:03lifestyle businesses, but I have, you know, worked with and
- 24:09analyzed businesses that are, you know, I don't think we
- 24:12talked about, but early in my career, I was a South Side
- 24:15equity research analyst and I analyzed publicly owned
- 24:18companies, you know, some of them doing 10 billion in
- 24:20revenue. So and and those are in the
- 24:23medical device and Pharmaceutical industry.
- 24:26And so, you know, I've looked at literally, you know, companies
- 24:30that are startups all the way to, you know, multi billion
- 24:33dollar publicly held companies and everything in between.
- 24:37I do think that you things start to become very different, you
- 24:42know, and we'll just say a non lifestyle business is somewhere
- 24:47probably in the area of like 2 million of EBITDA or very
- 24:50roughly, let's say 10 million in revenue, right.
- 24:54You know, after you get beyond those points where you have 2
- 24:57million or more in EBITDA, then you're, you're really, you know,
- 25:00getting on PE private equity radar And there you're going to
- 25:03be potentially A takeover target, which is a good thing
- 25:07because then multiples, you know, earning, selling multiples
- 25:11go up and the value of business is higher etcetera.
- 25:15But there's a lot of other different concerns related to
- 25:17that. There's scalability, there's,
- 25:20you know, can you replace yourself or how much does the
- 25:22business run without you? All valid things to think about.
- 25:26It just depends on, I guess, what kind of business you want
- 25:29and what your end goals are, right?
- 25:30Exactly. Some people want to build a
- 25:32business and not have to answer to private equity and they want
- 25:36to just do the thing that they're doing for the rest of
- 25:38their life. And I like more power to you.
- 25:40You know, that's, that's great if that's what you want.
- 25:43And other people buy something, they build it with a very
- 25:46specific idea in mind to sell and they want to get to 2
- 25:48million in EBITDA and sell their private equity and then repeat.
- 25:52So there's nothing wrong with either approach.
- 25:54They're not good or bad or right or wrong.
- 25:56It's just what is right for you or what do what is wrong for
- 26:00you, I would say. Yeah, I totally agree with that.
- 26:02There's, I think there's pros and cons to both and there's
- 26:04also different phases and seasons of your life and all
- 26:07that good stuff. Do you find yourself now that
- 26:09you're wanting to do continue to do lifestyle business?
- 26:11Do you have any like are you kind of building your business
- 26:14now as lifestyle and make good money, live a good life, have a
- 26:17good balance? Yeah, I mean, I'm, I'm
- 26:20definitely looking towards something that's more beyond
- 26:24lifestyle for my next business and something that I want to try
- 26:27to scale to. I don't know, I I, I don't see
- 26:30any reason why I shouldn't be able to scale something to the,
- 26:34you know, 10s of millions of dollars in revenue easily, you
- 26:37know, with a lot of hard work. I shouldn't say easily.
- 26:39Yeah, nothing in nothing in entrepreneurship is easy, but.
- 26:42Very capable of. Right.
- 26:43Yeah, I feel very, exactly, very capable of doing that.
- 26:47And is that the current business you're running now or is that a
- 26:50future business that you're thinking about or something else
- 26:52you're involved? A future business?
- 26:53A future business? Yeah, Cool.
- 26:54Very cool. Yeah, that would be exciting.
- 26:57So you've, you know, been through all these businesses.
- 26:59What do you have like a kind of a growth business, growth
- 27:02formula or any like, you know, I usually people have like IP
- 27:04around that type of stuff. Like I follow this formula or I
- 27:07think about growing a business from zero to 6 figures or seven
- 27:10figures, whatever it is. You kind of have a process I
- 27:13wrote down kind of my, I mean, this isn't like anything complex
- 27:17or like revolutionary, but I think about like a business.
- 27:19I think you need leads, convert leads to customers, service
- 27:22customers, retain customers. Those customers prefer other
- 27:26customers, Sure. And maybe we could just break
- 27:28down each one of those. But I'm just curious if you had
- 27:29anything, the kind of you look someone's like, hey man, I'm
- 27:31trying to grow a business like, yeah, what do you, what do you
- 27:33kind of think about with them? There's a lot of different ways
- 27:35you could go. Yeah, so like my wife laughs
- 27:38because I'll, we don't really go to the mall very often, but I'll
- 27:41like, go to the mall. Nobody does anymore.
- 27:43Yeah, no one goes to the mall but like, but this is, you know,
- 27:46here's kind of my thought process.
- 27:47So like there's this place selling cupcakes in the mall and
- 27:51like my mind immediately goes to how profitable is this business?
- 27:54What's the revenue? How scalable is it?
- 27:56So I, I started asking the guys questions and like by the end
- 27:59of, you know, a few minutes, I basically have like a PNL in my
- 28:02mind built for the business about what it's making and how
- 28:06much they're doing per location, blah, blah, blah.
- 28:08And so that's just how my mind operates.
- 28:11Like I can't, it's almost like I can't help it for whatever
- 28:14reason. So when I, you're asking like
- 28:18how I evaluate a company, I mean, I, I literally at this
- 28:21point I've done it for, you know, thousands of times, maybe
- 28:24even 10s of thousands. And so I just kind of have this
- 28:28a few key things that I look at a couple of them are how much is
- 28:32revenue growing or how could I get revenue to grow?
- 28:36Another key very key equation is what is customer acquisition
- 28:40cost and then what is lifetime value and how quickly do you get
- 28:44paid back for each customer or client when you get them?
- 28:47And, and then I also look at, you know, what is like return on
- 28:54marketing or like marketing dollars spent.
- 28:57I also look at what is the gross profit of the business, ideally
- 29:02by product or service line or by client.
- 29:07If it's a service based company. I, there's so many especially
- 29:11professional services companies out there that are doing
- 29:14business and 20% of their clients are completely
- 29:17unprofitable. Like they're actively losing
- 29:19money with 20%. Not, not, not, we're not saying
- 29:23like they're breaking even, like actively losing money by having
- 29:25this client, you're actually taking money out of your pocket
- 29:28and putting it in theirs essentially.
- 29:30So I help clients identify those and I'm also a huge fan of EOS
- 29:35Traction. I'm not sure if you've heard of
- 29:37that system at all, but I used EOS Traction to guide myself on
- 29:41a pair of stores to winning a bunch of awards.
- 29:44We won top award in the entire franchise for operations and
- 29:49then best customer service in the franchise out of 300
- 29:52locations as long as a bunch of other awards.
- 29:55So I really believe in the EOS Traction system and a lot of the
- 29:59things that I do with my clients are related to EOS.
- 30:04I'm I'm also AI call myself both a fractional CFO and fractional
- 30:09integrator and integrators from EOS.
- 30:11Got it. EOS, entrepreneurial operating
- 30:13system. Yeah, you bet you got it.
- 30:15For someone that will help some people listening that use that
- 30:18for sure. But for those that don't or
- 30:20haven't really seriously adapted it, what are maybe one or two
- 30:23things that you think that like changed your perspective on
- 30:25running a business from the EOS model?
- 30:27Yeah. So I think the core of the EOS
- 30:29system is the L10 or Level 10 meetings.
- 30:32And it's basically a framework for how you can use a weekly
- 30:38meeting with your staff and have a scorecard related to important
- 30:43KPI's that that person has to focus on every week.
- 30:47And look, I'm not a, I'm not a meeting guy.
- 30:49Like I thought to myself when I implemented this, I was like, Oh
- 30:51my God, we're asking our, our Staffs are already super busy
- 30:54with the cell phone, a pair of stores.
- 30:55It's like a very hard business model to manage.
- 30:59I'm asking them that do more shit and have another meeting.
- 31:02I'm like, I don't think this is going to be hard to sell.
- 31:05And ultimately, once we implemented these L10 meetings
- 31:10in this framework, they loved it it because it helped keep them
- 31:15accountable, but it also was like a, a good way to get
- 31:18feedback and make sure that they were focusing on the right
- 31:21stuff. And so we were able to, you
- 31:25know, scale the business and really improve operations a lot
- 31:28after doing that. It's a, it's a the the it's a
- 31:31total game changer having this scorecard plus the L10 level 10
- 31:34meeting framework. So you've obviously had multiple
- 31:38businesses going at one time. Do you recommend that for most
- 31:41entrepreneurs or do you think it's a distraction?
- 31:43Do you think it could be a good thing if you can handle it it?
- 31:46It's a really good question, Alex.
- 31:47And so the most businesses I had operating at once was the four
- 31:51cell phone and pairs stores and one health club.
- 31:53So 5 at a time. And how many how many people are
- 31:56employees are at each location for these types of things?
- 31:58Yeah. So like in aggregate for the
- 32:00cell phone and pairs stores, I had a rut list called around 20
- 32:04people for all four. And then W2 full time employees,
- 32:07part time part mix. It was a mix.
- 32:10It was a mix. So let's say maybe, I don't
- 32:12remember. Just kind of half and half kind
- 32:14of more difficult to be honest 'cause then you part time you
- 32:15got your own challenges with that too.
- 32:17And it's like, yeah, so. It, it is, but it, it, we, we
- 32:20did it that way 'cause it worked well with like we had a lot of
- 32:22students working and so during the summer when the business got
- 32:25busier, they could work more, right.
- 32:27So it was just it wasn't a good fit for us and them.
- 32:30And then for the gyms, I usually had about 3 employees per
- 32:33location, very minimal on purpose, the manager and then
- 32:36one or two personal trainers. And sorry, what was your
- 32:40original question? Two more than one business at
- 32:42one time. Oh, yeah, yeah.
- 32:43OK. So I ultimately got away from
- 32:48the franchise because I, I did feel like it was more difficult
- 32:53to scale than some other business types, right.
- 32:56We're like, for instance, if you have a professional services
- 32:59business and you want more clients, you just, and it's a,
- 33:02you know, let's say it's an accounting company.
- 33:04I'm just making this up. You just and, and you know, you
- 33:07can service clients with an accounting business virtually.
- 33:10So you just acquire more clients online and then, you know,
- 33:14service them from wherever you are physically with the, with
- 33:17those, with those physical, you know, businesses.
- 33:21It's it was harder to scale those 'cause you you got to a
- 33:24natural limit of sales in an area and then you just had to
- 33:28build a new location or buy a new location.
- 33:30Right, going back to the the kind of the five part framework
- 33:33I was sharing leads convert leads to customers, service
- 33:35customers retain customers, those customers prefer more
- 33:38customers on the leads part. What have you found most
- 33:41effective with generating leads and maybe for professional
- 33:44services? I think most people are going to
- 33:46be like B to B not in this probably like owning a gym is
- 33:49probably not going to be the listener it could be, but more
- 33:52probably professional services. What have you done most
- 33:54effective in the last like couple years for just generating
- 33:57new leads? Yeah.
- 33:59So I think one of the probably the most effective thing is, is
- 34:03to do a good job with your existing clients.
- 34:06Because if you do a really good job and you amaze them, they
- 34:09will refer people to you and that is going to be your
- 34:12probably your number one source of leads.
- 34:14So ironically, you know, not doing, you know, focusing on
- 34:18your existing client base will get you the most new clients.
- 34:23Other than that, I, you know, I think that each professional
- 34:26services business is different. For instance, some businesses
- 34:29might be able to market on a certain platform and they have a
- 34:32lot of success, whereas that platform for a different
- 34:34professional services company is awful.
- 34:37Yeah, it's totally awful. So I, I and, and you're the
- 34:40marketing guy. So like you would, you know,
- 34:42know better than me. But what I've seen with
- 34:43professional services is, you know, you try a bunch of stuff,
- 34:47you see what works, you know, you have to try it for a while
- 34:50too. You can't just try it for a
- 34:51month and then say, OK, it doesn't work, Try it for a bunch
- 34:55of months, see what works and what doesn't.
- 34:57And then just again and do an analysis, OK, what's my ROI or
- 35:01what's my customer acquisition cost by channel?
- 35:04And then just go from there. If you know whichever channel
- 35:07has the most reasonable customer acquisition cost that's also
- 35:11scalable, double down on that one.
- 35:13Yeah, for sure. I think professional services,
- 35:15LinkedIn obviously massive opportunity, YouTube's even
- 35:19good, Tik Tok's even potentially good depending on what you do.
- 35:22But I think LinkedIn for professional services, goldmine
- 35:25and organic, you've got social selling capabilities.
- 35:27You can reach out to people, comment on the stuff, start
- 35:29conversations that way very organically.
- 35:32And then you've got LinkedIn thought leader ads now, which
- 35:34are most people don't know about because.
- 35:35I didn't know about that. Yeah.
- 35:36What is that? So you can actually run ads.
- 35:38You run it through the company, right?
- 35:39So you go to your company page, but when you go to run the ad,
- 35:42you actually can select employees of the company and you
- 35:45can run content that the employees have posted.
- 35:47So for you, I'd be a founder or CEO.
- 35:49I just go on the company page, select a post that I've posted
- 35:53on my account. It runs it as a thought leader
- 35:55ad from Alex. But really it's promoted by the
- 35:58company. But you almost can't even tell
- 36:00it because it's got my profile picture.
- 36:01It looks like in the feed. It's coming from me.
- 36:03So that's how we've been generating the results on
- 36:05LinkedIn because we'll just share.
- 36:06It'll be me and a client kind of talking like this in a
- 36:09testimonial video, very organic podcast.
- 36:12Like it's just like really back and forth and we'll talk about
- 36:14the results they got, the transformation they got.
- 36:16And then you just start booking meetings because people are
- 36:18like, I want that. Very cool.
- 36:20Yeah, it's really cool. So definitely look into it.
- 36:22And then definitely anyone watching, if you're not doing
- 36:24that, if your clients are on LinkedIn and you've already got
- 36:26the organic brand, I think it's good to have some level of
- 36:28content and a brand organic first, because if they go to
- 36:30your page, they see your content, the ads can really do
- 36:35wonders. What it also does, it just
- 36:36brings more of those ideal customers in your ecosystem.
- 36:39So now when you post organically, those people are
- 36:41now because of LinkedIn social graph, it'll start to actually
- 36:44show more of those people organically and they'll start to
- 36:46pop up in your feed. And so it's like you just get a
- 36:48lot of byproduct type things that happen other than just like
- 36:51they click a link, book a call, it's that, but then it's also
- 36:54new connections. There's new likes, there's
- 36:56people in your feed now that weren't there before.
- 36:57And it's all your target demographic because you've
- 37:00programmed the audience to only show content to those people.
- 37:03OK. It's really, it's a game
- 37:04changer, man. Yeah, it's really cool.
- 37:05Wow. So two of the most challenging
- 37:07aspects of I think from AB to B standpoint, growing a business,
- 37:12whether you're 6-7 figures, even maybe 8 figures.
- 37:15One, increasing total headcount, although content and LinkedIn,
- 37:19that kind of stuff really helps there.
- 37:20But retention is also key as well, right?
- 37:22So it's not like increasing total headcount is, yes, winning
- 37:25new customers, but also keeping the ones that you have and
- 37:27keeping them happy, retaining them.
- 37:29And the other, the other one is just removing, and I think about
- 37:32our business too, removing yourself from the business like
- 37:35the client service side without it becoming a landslide and just
- 37:39going to hell. What are your, I want to dive
- 37:41into both of these because I feel like they're really
- 37:42relevant. And whichever 1 you want to
- 37:45tackle first, increasing total headcount or removing yourself
- 37:47from the business as the founder, which one do you feel
- 37:50more excited to talk about? Yeah, let's talk about the
- 37:53second one. Removing yourself as a founder.
- 37:55Yeah, I'm, I'm smiling and laughing because I think that
- 37:59this is really, really challenging for almost all
- 38:02entrepreneurs. And I, and I get why I was there
- 38:05myself. But I think most people don't
- 38:09remove themselves or or can't remove themselves for a couple
- 38:12different reasons. One, they think that they are
- 38:16the only one that can do what they do, which, you know,
- 38:19occasionally is true. But like 9 times out of 10, if
- 38:22you, if you're really good at doing something, you should be
- 38:24able to teach someone else how to do that thing, right?
- 38:26Or at least and someone else. I didn't come up with this, but
- 38:29I love this thought 80% done by someone else is better than 0%
- 38:35done by you. And that like that helped me
- 38:38think about, Oh my, I was like when I heard that, I was like.
- 38:41Oh. That's so true because yeah, you
- 38:44can't do everything. You don't have 50 hours in a
- 38:46day, right? And so if you're trying to do
- 38:49everything, there are certain things that you're not doing,
- 38:51you're just not doing because you don't have time.
- 38:53You're. Not going to throw the business
- 38:54that much either because it's all bottlenecked through you,
- 38:57especially in professional services like scaling that
- 38:59thing. So if you can just be good with
- 39:01someone else doing what you do at 80% of what you do, that's
- 39:04still a huge win, at least in my book, right?
- 39:07I'm going to stop real quick on there.
- 39:09I agree with that. I think the challenge is like,
- 39:11so we can do and I'm thinking our business, but even other
- 39:14clients that I know and friends that I know, it's like you can
- 39:17create the Sops, you can coach, you can teach, you can role
- 39:20play, which we do all that stuff, right?
- 39:23And they do, I think 80% sounds right.
- 39:25Like they're pretty freaking good.
- 39:26Like we've got a girl on Kalista who works for us.
- 39:28She's one of our content coaches, strategist, she's
- 39:30amazing, right? She's really, really good.
- 39:32The challenging in those roles, the challenging part is I've
- 39:36been doing this for six years and so it's like she can get
- 39:39through Sops, coaching frameworks, that kind of stuff
- 39:41calls, does a great job on. But then there happens to be
- 39:44those scenarios where it's like if you hadn't like understood
- 39:47how Linkedin's changed over the last five years, you know what I
- 39:49mean, or like you haven't actually done the thing.
- 39:53And so it's like almost just it's not her fault.
- 39:54It's just an experience gap. It's like she can't go back and
- 39:57recall. Yep, two years ago I worked with
- 39:58the company exact same thing. Let me show how it plays out.
- 40:00Hey, definitely avoid this and definitely go towards here
- 40:02because we've I've seen this happen 20,000 times.
- 40:05How do you kind of? Aside from this experience,
- 40:08right? Like I think that's the main
- 40:09thing, like the off the top of your head, being able to solve
- 40:13problems like that. Yeah.
- 40:14So I, I, I've thought about this a lot, especially as it relates
- 40:17to AI and how it's going to change how the future of our
- 40:20country works and. Learns.
- 40:22I want to talk about that next. Yeah, and, and but here's The
- 40:25thing is like, you know, when you do something and you fuck up
- 40:30like you, you, you'll, you'll remember that probably forever
- 40:36because you directly did it. Whereas, for instance, if Alex,
- 40:40if you told me, don't do this thing and I don't make the
- 40:43mistake myself. I'm not.
- 40:45It's like you telling me or someone else telling me isn't
- 40:48gonna resonate in my brain in the same way as me making the
- 40:51mistake myself. So to answer your question, I
- 40:54don't think that there's a way that you prevent that person
- 40:56from making the mistake. They just have to make the
- 40:59mistake. Cool.
- 41:00And and I think that. That's where I'm at.
- 41:02I'm like, she's awesome, but I'm like, I'm just at the point
- 41:04where I'm like, the only way I see to take this thing to the
- 41:08next level is I got to let her fail a little.
- 41:10And she's not going to fail a little, a little bit, right?
- 41:12She's not going to like botch the whole client thing.
- 41:13Obviously, I wouldn't let her that that happened to her.
- 41:16But does she get something wrong that it's like, oh, we could
- 41:18have got that? Yeah.
- 41:19I think that's part of the growth, right?
- 41:20It's like you got to let them fail a little bit.
- 41:22A little bit. Yeah, a little bit, right, Yeah.
- 41:24And The thing is, if you. Like you keep saying a little
- 41:26bit. Yeah.
- 41:27Well, well, then what I was going to say is, you know, and,
- 41:29and if you know, you've done a great job building your brand
- 41:32and your company, right? If and, and with that, a good
- 41:36reputation, your clients will tolerate a few mistakes here or
- 41:40there because of that goodwill that you've built up with them.
- 41:43You know, and so, and, and so my approach has been let the
- 41:47employees make the mistakes and then just apologize profusely
- 41:51and then go above and beyond to make it right.
- 41:54And sometimes that even results in a better scenario.
- 41:57Like a quick story, I had someone come into my cell phone
- 42:01repair store. We repaired their phone.
- 42:03It was, you know, an expensive iPhone.
- 42:05We made a mistake, right? Like we, we bricked their phone,
- 42:08like we, we completely destroyed it and it didn't work at all.
- 42:12And so, you know, that's a horrible situation.
- 42:15For a modern human is like you literally just like killed
- 42:17somebody in the last. Like, I mean, you know, so mad
- 42:19to like this. The scenario is the person came
- 42:22in to get their phone that was repaired or they thought it was
- 42:24repaired and I, I had to tell them that it wasn't working.
- 42:28So I go to the front of the store and I'm like, look, you
- 42:31know, I'm so sorry. Here's what happened.
- 42:33And I explained to it. I'm like this, our technician
- 42:35made this mistake. You know, we shouldn't, this of
- 42:38course, should not have been the way that this went.
- 42:41And so we offered to, you know, bring their phone to the Apple
- 42:45store, get them a new device and put a tempered glass on it for
- 42:49free and a new case and a bunch of other things and like deliver
- 42:52it hand deliver it to their house and do everything we could
- 42:55to make it right. Not only was that customer
- 42:59actually and that client really happy with us, but someone else
- 43:02in the lobby not related to them or the situation told me they're
- 43:06like, you know what, I saw how you handled that situation and
- 43:10I'm super impressed by that. I'm actually really, I want to
- 43:14do more business with you now because I saw how you handled
- 43:16that mistake someone unrelated to the situation.
- 43:20And so I do think that there is many opportunities like that
- 43:23with, you know, if you just do the right thing and you know,
- 43:26make it right for someone and, and ultimately you could end up
- 43:31actually in a better spot even after an error or mistake if you
- 43:35really go above and beyond to make it right.
- 43:37Yeah, it's like a it's a sometimes a little scary for the
- 43:40employee. I think about our team kind of
- 43:42letting them go, like I'm going to run with this by myself.
- 43:44It's like, Are you sure? And it's like, yeah.
- 43:46And it's like, look, you may make a little mistake and feel a
- 43:49little bit like, that's cool, that's fine.
- 43:51Like it's OK, we're going to learn from this right now.
- 43:53I don't just give away everything and let them like,
- 43:56completely, you know, fall off a Cliff, obviously.
- 43:58But I think that's just such an, it's such a hard thing to kind
- 44:02of wrestle with because I think there's some owners who are
- 44:04like, I want everything to go through me and I, nobody can do
- 44:06it like me. I'm not like that at all.
- 44:08I really don't, I'm like, I don't want anything to go
- 44:10through me. I'm like, I, I, I'm not some
- 44:11special bro. Like I just learned some stuff
- 44:13and I can teach other people how to do it right.
- 44:15And I think that's the mindset. But even with that, it's still
- 44:17like I'm more care about, I want our clients to be happy and like
- 44:20excited and like, I want them to feel like we're doing a good job
- 44:23for them. And so it's like, that's what I
- 44:24worry about. But I think the, I think that's
- 44:26a good point. It's like you just have to kind
- 44:28of be comfortable with a little bit of failure to learn because
- 44:31to your point, if you constantly catch everything before it
- 44:33happens and they never have to face the client and be like, oh
- 44:36shit, I got that wrong. And it's like, that's never
- 44:39gonna happen again. You know what I mean?
- 44:40If they don't go to that moment, it's almost like it doesn't
- 44:42stick as much. It just doesn't.
- 44:44My mom would always tell me when I was a young kid, you're gonna
- 44:47learn the hard way, 'cause you'd always tell me to do something,
- 44:49not to do something. And then I, of course, wouldn't
- 44:52listen. And I learned the hard way.
- 44:53Yeah, all the time. Yeah, and if you.
- 44:55Just gotta learn something's the hard way.
- 44:57And I'm sure you would agree in business, Like, I look at my you
- 44:59probably the same way I look at the toughest, most challenging
- 45:01times in my business. Those are the moments I grew the
- 45:04most, yeah, where I knew a challenging time was coming.
- 45:06And I was like, I gotta adjust, I gotta evolve, I gotta be
- 45:08better here. I gotta do it.
- 45:09You know? Those are the times when you
- 45:11grow the most 'cause it's like you're just faced with it when
- 45:13you're winning, everything is going good.
- 45:14It's like cool, like this is great, let's keep going.
- 45:16But there's not like a ton of learning lessons in that.
- 45:19Totally. OK, so AI want to, I know we're
- 45:22going to talk about increasing client total headcount, but I'm
- 45:24cool to actually move to to AI if you want to sure.
- 45:28What do you think is going on? And you do a lot of consulting,
- 45:30right, coaching, consulting, that kind of stuff, professional
- 45:32services. How do you see it shaping just
- 45:35business in general? Maybe let's start macro and then
- 45:37we'll kind of come down what is going to happen over the next
- 45:40few years. And then I'm curious, even with
- 45:42the professional services, consulting, coaching, that kind
- 45:45of stuff. Be curious.
- 45:46Yeah, because we're in the age now where it's like, you know,
- 45:51last two years it was like, oh, ChatGPT came out, you know, 2
- 45:53plus years ago, people started dabbling, getting kind of good
- 45:57at it. And then it kind of like started
- 45:58showing up in other areas. Now it's like pictures and
- 46:00videos and there's, I don't know if you've seen Google VO3, but
- 46:03they're like, man, you can I, I even played with it, made a
- 46:06video, you put in a script. It's like, so it's like starting
- 46:08to go to the next level. And I think the next wave of
- 46:10this now, which we're kind of behind the scenes starting to
- 46:13work with, is AI agents. Totally.
- 46:15They're now just doing full jobs start to finish from from A-Z,
- 46:21man, just knocking out a job now.
- 46:22It's not going to just like replace all human jobs
- 46:24overnight, obviously, but there are some that could very well be
- 46:2780% depending on the job, yeah. Yeah.
- 46:31So just as a little way of background for you and the
- 46:33listeners. So I spent the last six months
- 46:36developing an AI agent full time with my a business partner and,
- 46:41but we ultimately about a couple weeks ago decided to shut that
- 46:44company down because it was really challenging.
- 46:47So here's what's happening with AI, which is interesting.
- 46:51It's good in general, the capabilities of AI are doubling,
- 46:55doubling every four months, which is insane.
- 46:59So like Moore's law is for processors is that transistor
- 47:03count double S every 18 months. And that's been a, you know, a
- 47:06law in computing for a couple decades.
- 47:09So what's crazy is AI, even for technology standards, is
- 47:15exponentially increasing in capability, like even faster
- 47:19than almost any other technology basically in the world that's
- 47:22ever that humanity's ever seen. So that's good if you're
- 47:25consuming AI, but it's bad if you're trying to develop AI,
- 47:28especially on a bootstrap budget.
- 47:30Because then if your development cycle is four months and the
- 47:33capability is doubling every four months, by the time you've
- 47:35developed something, it's already outdated, which is that
- 47:38not something that my business partner and I foresaw when we
- 47:41went into that business? So what happened?
- 47:43You guys developed something that's like obsolete?
- 47:45So we, we spent, you know, we'll call it six months developing
- 47:48this thing. And then we just ultimately
- 47:50decided that, you know, because we were bootstrapping in and
- 47:53not, didn't want outside capital or didn't want to raise money,
- 47:56that it was, you know, just not, it was not a good game plan in
- 47:59terms of how we should approach the problem.
- 48:01And so we decided not to continue.
- 48:02What was it? What was it?
- 48:03What was the function of the AI agent?
- 48:05Yeah. So we were developing an AI
- 48:08illness advocate is what we called it to help alternative
- 48:11medicine companies get more leads from their websites.
- 48:15And so the whole idea was that, you know, someone comes to the
- 48:18web, like let's say for a ketamine clinic as an example.
- 48:20So someone, a user goes to a ketamine clinic website, they
- 48:24have a bunch of questions about ketamine therapy, right?
- 48:26Like, what is it? How does it last?
- 48:28What is it, you know, what is it like?
- 48:30And so this AI agent would, you know, service that person and
- 48:33answer questions and then, if appropriate, guide them toward
- 48:37becoming a patient for that ketamine clinic, as an example.
- 48:41And So what went wrong? It just took us a long time to
- 48:47get a beta testable version of the product in client's hands.
- 48:52And you know, we've learned a lot.
- 48:56And I, I'm, I'm really grateful for the opportunity to work with
- 48:58my business partner. He's amazing.
- 49:01And I really thought it was a good experience.
- 49:03And I'm still taking a lot of those things that I learned
- 49:06about AI and helping with my fractional CFO and fractional
- 49:09integrator clients. But but yeah, I just, you know,
- 49:13now I understand why so many AI firms have raised so much money.
- 49:18It's, there's a, of course they're, you know, they're
- 49:21playing into the hype, but it's also because they just need a
- 49:23lot of resources in order to be able to develop something
- 49:26quickly. Well, that's interesting, 'cause
- 49:27I think people think like, oh, just like Jim's actually asked
- 49:29me there a day. He's like, he's like, why
- 49:30doesn't the company just like build their own AI agents?
- 49:32And I was like, well, like we're like kind of looking into a lot
- 49:34of different options right now. And it does, it's not as easy as
- 49:38it sounds, right? Just like go build an AI agent.
- 49:40I mean, maybe to get like a your foot in the door, but then to
- 49:44like to your point, keep up, make it sustainable, make it
- 49:46valuable to the marketplace, right?
- 49:48Is there a lot more to it than people think?
- 49:50Yeah, for sure. I mean, that's what's
- 49:52interesting. And again, this is changing so
- 49:54quickly. So what we talked about today
- 49:55literally could be outdated in a.
- 49:57Couple months, right? So or release system like oh,
- 49:59that's not even. So, but but the The thing is, I
- 50:03think where we're at now with AI agents is.
- 50:06So here's my 50,000 foot view of what's happening.
- 50:10The tech industry in general always sells the vision and then
- 50:13they have a hard time executing right just in general.
- 50:16And it this is not a criticism, it's just a, it's an
- 50:19observation, let's say. So for instance, let's talk
- 50:23like, think about 3DT VS, you know, 5-6.
- 50:25Seven years ago, everyone was like, oh.
- 50:27The metaverse, too, is the one where it was like, exactly,
- 50:29we're all going to be in the metaverse.
- 50:30It's like no one's in the metaverse.
- 50:31Exactly, exactly. So I mean, just pick your pick
- 50:34your major technology from anytime in the last 20 years and
- 50:37basically there's tons of hype. And then and then, you know,
- 50:40once you get beyond the hype, there's reality sets in.
- 50:43And then you have to figure out, OK, well, what is reality?
- 50:46And like, where does that, what does that look like?
- 50:48Where I think we are today is these, you know, AI companies
- 50:52are hyping all these capabilities that agents can do.
- 50:56But I've tested out a lot of different use cases like
- 50:59marketing use cases, operation use cases, finance use cases.
- 51:03And in my opinion, right, they vastly fall short of what the
- 51:08marketing will tell you that they do for these companies.
- 51:11And again, this what So what I think is happening now is AI is
- 51:16good at certain very specific tasks for specific roles or
- 51:21specific positions. But eventually what I think is
- 51:24AI will get much better at doing much more or many more of the
- 51:28tasks for more positions over the coming, let's say three to
- 51:32five years. The speed at that happen at
- 51:35which that happens is still somewhat undetermined.
- 51:38But I, I think that we're at like we'll say task replacement
- 51:42today. I think we'll be at like full
- 51:45roll replacement depending on different types of roles within
- 51:48like the next, you know, let's say two to four years.
- 51:51I think so too. I think it's not going to be
- 51:53tomorrow. Yeah.
- 51:54I think it usually does take a little bit longer than people
- 51:56think. You start to see it coming now
- 51:58and working on it. And like there's maybe certain
- 52:00roles that have sections of it. Maybe there's even certain like
- 52:02low level roles where you've kind of replaced it.
- 52:05But you see all these posts on LinkedIn where people are like,
- 52:06I replaced twenty person team with AI agents.
- 52:09Like no, you didn't like, no, you didn't like you did not
- 52:13replace 20 humans at this current time and place by
- 52:16yourself building out 20 AI agents.
- 52:18You didn't have 20 people to be honest, right, right.
- 52:20And even if you had 20 people like I just don't see that at
- 52:23this point in stage not being a multi billion dollar like tech
- 52:26firm or something. Right, exactly.
- 52:28I don't think I don't think it that's not 20 legitimate
- 52:31employees that you no, there's no way that.
- 52:33Replacement you did. Not yeah.
- 52:35No, but what I, you know, to answer your, your question about
- 52:38like, well, where's this going with professional services
- 52:40companies? What I see happening is, and
- 52:44again, I think the the rate of replacement will be different
- 52:48depending on what type of professional services.
- 52:50But I think that, you know, eventually all people who work
- 52:55in professional services are going to be managers of all
- 52:57these AI agents that are doing a bunch of stuff for them.
- 53:00And I think, you know, here's an example.
- 53:04Let's let's pretend again, I don't think this is going to
- 53:06happen today, but let's pretend I can employ a bunch of AI
- 53:09agents and they make, they can do they make the employees 50%
- 53:14more productive, right? So as a business owner, I have a
- 53:18choice. I can either continue to employ
- 53:22all of those employees and have them do 50% more work
- 53:26potentially or fire 50% of the employees and then have the
- 53:30remaining 50% do all the work that I have now or somewhere in
- 53:34the middle, right? So somewhere between firing 50%
- 53:37of the people and firing no one, I think the, the most successful
- 53:42companies are going to hang on to almost all the, or all the
- 53:46employees and you know, have them unlock 50% of their
- 53:51productivity and do more work and potentially but do more
- 53:56valuable work, right? Like take that extra 50% of
- 53:59their time and do the stuff in that answer to the question that
- 54:04I asked earlier, what would you do if you had two hours per
- 54:06week? Whatever the answer to that
- 54:07question is, For instance, if they would do more of that
- 54:10activity, I think that those companies are going to be the
- 54:13ones that win at the end of the AI arms race.
- 54:17I think that those are the ones that are going to have the best
- 54:19outcomes, be the most successful, and do the best work
- 54:23for their clients. What?
- 54:24Do you think about like a business coach?
- 54:25Like how does it change? Because I think about like, you
- 54:28know, guides, frameworks, building out Sops strategies,
- 54:33you have to know how to use the AI really well to do it good.
- 54:37But I think like a lot of times you can, you can build out
- 54:40things now that you couldn't have done two or three years ago
- 54:41for sure. You know, like it's so it's like
- 54:43if you've got some like cheap ebook guide that's like not
- 54:46super valuable or in depth or has like real store real stuff
- 54:49behind it, like a customer is like, I'm not going to give you
- 54:51my e-mail name for that. I can just go ChatGPT.
- 54:53Well, how do you build out this and this?
- 54:55Like, how do you build a strategy for LinkedIn?
- 54:56Right. But then there's the nuance of
- 54:57like having done it and been in the weeds and their specific
- 55:00business and what they should be doing and how they craft a story
- 55:03around it and who they hire and develop and how they coach those
- 55:06people to do that stuff. That's where I think a lot of
- 55:08like the the value is. Yeah, so I I think it goes back
- 55:13to what we were talking about earlier, how you know certain
- 55:16things you just have to learn yourself or experience yourself
- 55:20and you know, even if I can get so so what's interesting about
- 55:24AI is it's making high quality information free, right, Which
- 55:29is good, which is a good thing, but that doesn't mean so but
- 55:33what? But but if I have.
- 55:35Let's say kind of already have that though, to be honest, you
- 55:37know, with Google, YouTube take like you can actually find most
- 55:41things. Sure, I think it feeds it to you
- 55:43quicker, but I I, I think I agree with where you're going
- 55:46with this. But but well, but here's my
- 55:48thought about that. So let's say I have 100
- 55:51encyclopedias sitting next to me.
- 55:52And like these 100 encyclopedias contain the most valuable
- 55:55business information in the world, right?
- 55:57Well, what? You know, even if I know that
- 56:01it's good information, but there's it, it's still I, I
- 56:05still need to know what to do with the information, how to
- 56:08execute on it and how to, to put it into work right?
- 56:14Like I can't. You could technically tell
- 56:16Chacha Petit, give me the execution plan.
- 56:19How do I put this in the work? What's day one, day 2, day
- 56:21three? What are my KPI's?
- 56:22But I agree with where you're going with this, though.
- 56:24I know where you're going. Yeah, but you totally agree.
- 56:27You can totally do exactly what you just said for sure.
- 56:30But that doesn't, you know, tell you, OK?
- 56:32Like tomorrow morning when you wake up, after you wake up, what
- 56:36should you do? What's the first thing you
- 56:37should do? Is it check your e-mail?
- 56:40Is it do the first thing on the list?
- 56:41Is it something else? You know, you still need to use
- 56:44discernment and you still need to have wisdom in terms of what
- 56:49you know, what to do, when and which information to use.
- 56:53And I I do think that discernment and wisdom just
- 56:56simply has to come from experience.
- 56:58You have to hold it the hard way.
- 56:59Yes, I agree. Yep, I agree.
- 57:02And then you talk about coaching, developing people, the
- 57:04emotional intelligence of like knowing you have to have a
- 57:07conversation with your employee because they've been a little
- 57:10bit down in a meeting or two. It's like that's not something
- 57:12you're going to print on the SOP exactly like.
- 57:16And why I think that that that brings up another point I was
- 57:19going to make is I think that in the future, having EQ, having
- 57:23emotional intelligence and being able to deal with people will be
- 57:26even more important. Because when all the world's
- 57:29best information is totally free, having good information
- 57:33isn't a competitive advantage anymore.
- 57:35But I think dealing with people will and being good at that will
- 57:39always be a competitive advantage.
- 57:41Totally. And yeah.
- 57:42Are there going to be some AIS that deal with people?
- 57:45Yeah, absolutely. Like there's, there's already
- 57:47tons of people who are using ChatGPT as their therapist or
- 57:50whatever. And I don't think that's bad.
- 57:52But the point is you're, I, I still don't think there's ever
- 57:55going to be a true replacement of a human because even if an AI
- 58:00acts like a human like that movie, she or her, her, her
- 58:03movie her with Joaquin Phoenix, even if that is possible and I,
- 58:08we're basically right there now, I, I think that people are still
- 58:11gonna know that that's like in the back of their mind, they
- 58:14know that that's a machine. And there's just different
- 58:16things associated with talking to a machine like that versus a
- 58:19human. Yeah, and you, you want the
- 58:21flaws and the mistakes that occasionally come with humans
- 58:24and the emotional stuff. And like the.
- 58:26Yeah, you did this. You kind of like, you know, you
- 58:28do these weird quirky things, but I like it.
- 58:29Like that's why I love you. You know what I mean?
- 58:31It's like those are things that things that kind of make you
- 58:33fall in love with somebody or build a relationship with
- 58:35somebody. And it's like nice and
- 58:36comforting to know that you're not some perfect algorithm
- 58:39that's going to spit you back something, right.
- 58:40Yeah, I was going to say something else on yeah, I think,
- 58:44you know, our company, we help B2B companies build out their
- 58:47own internal content teams and create content, build brand, all
- 58:50that stuff. So they don't have to hire a
- 58:51marketing agency. They can actually do it
- 58:52internally because you have AI, you have you can set up a room
- 58:55like this, start a podcast, you have your phone to film videos.
- 58:57Like you really can do it in house.
- 58:59But it's like, how do you do it? The strategy, all that stuff.
- 59:01And I was telling my team I'm like, look, the strategy, the
- 59:04frameworks, the workflow, how you do all that stuff, super
- 59:07important. But really like our job over the
- 59:09next five years, big time is going to be how we hire, coach,
- 59:13develop people because you're like, yeah, we're going to hire
- 59:15our content team. Cool.
- 59:16Do they have the right leadership structure?
- 59:18Are you coaching them to develop them into what they their true
- 59:20potential? I think to your point, that is
- 59:23some of the highest value stuff that you can do.
- 59:25And you can do that one to one, you can do that one to many.
- 59:27There's a lot of different ways you can do that.
- 59:28But knowing how to get the most out of people and like really
- 59:31build them up in a positive way. So they're productive, but
- 59:34they're also happy, and that's huge.
- 59:37Yeah, I mean, I, you know, that's my, the name of my
- 59:39company is humans 1st and I exactly.
- 59:42I truly believe that, you know, people are the thing that gives
- 59:45us the most meaning, joy, purpose and happiness in our
- 59:47lives. And if that goes.
- 59:48Away. Then we're all screwed anyways,
- 59:49yeah. And we just eliminate that.
- 59:51Then it's like, I guess we're all just fucking like, AI aliens
- 59:54or something, you know, Like, yeah.
- 59:55Yeah, it's, and you know, I, I've always looked at my my
- 1:00:00employees as the biggest asset to a company.
- 1:00:02A lot of people you know, if you talk to a founder, you can
- 1:00:06generally. You get a sense for do people
- 1:00:07do, do founders or CEOs view their employees as an asset or a
- 1:00:11liability? I think if they view employees
- 1:00:13as a liability, there's a fun to me like that is a tough place to
- 1:00:18be, But I, and, and I took this from Richard Branson.
- 1:00:23So I can't say that I came up with it, but it, it, it really
- 1:00:26resonated with me. And I, I would say this to
- 1:00:28people when I was interviewing them before we even hired them,
- 1:00:31I would tell them, look, my business philosophy is very
- 1:00:33simple. I truly believe that if I take
- 1:00:35care of the employees, the employees take care of the
- 1:00:37clients and then the clients take care of the business.
- 1:00:40So it's my number one goal to help you be the best version of
- 1:00:44the yourself and and put you in a situation and give you the
- 1:00:47tools to succeed. And if I can do that, everything
- 1:00:50else will fall into place. Yeah, love that.
- 1:00:52And, you know, I, I've really lived by that and I feel like
- 1:00:55it's been really helpful. And I, you know, still regularly
- 1:00:58talk to a lot of my old employees.
- 1:00:59In fact, I, I even married one of my old employees and his and
- 1:01:03his wife was efficient in their wedding, you know, because I, I
- 1:01:07just really resonated with him. And you know, we're, we're still
- 1:01:10good friends today. That's cool.
- 1:01:12So what's what's life all about for you, for Rob, like you got,
- 1:01:15you know, you got a little one at home wife I think right.
- 1:01:17And so businesses like what? How do you kind of look at life
- 1:01:20to know if you're like, Hey, I'm good, living a good life?
- 1:01:23Yeah, it's a really good question, man.
- 1:01:25And I, I think about it a lot and I, I try to like, regularly
- 1:01:30check in with myself, right? And ask myself, am I happy, You
- 1:01:34know, am I doing things that really leverage my strengths?
- 1:01:39And, you know, one of the things that I, I, I thought about at
- 1:01:44the beginning of 2023, my theme for the year was I want to enjoy
- 1:01:49the journey. I want to enjoy the journey,
- 1:01:51right? You talked about that earlier.
- 1:01:52And, and I, I would literally just, you know, try to every
- 1:01:55week, like, say to myself, I want to be here and enjoy the
- 1:01:58journey. And and I would regularly still
- 1:02:02tell my wife like I'm really grateful to be on this journey
- 1:02:04with you. And you know that to me is and
- 1:02:09this is like you asked a simple question, but I'm gonna like
- 1:02:12take a step. No, it's not a simple answer
- 1:02:13though, Yeah. Yeah, I I've thought a lot about
- 1:02:15what is the purpose of life, right?
- 1:02:17Totally. What is our freaking what are we
- 1:02:19doing here on this planet? And I, I, maybe I look at it too
- 1:02:24utilitarian like, but honestly, I think humans are just really
- 1:02:27smart animals, which is a good thing, right?
- 1:02:30But think about an animal, right?
- 1:02:33Like a cat. What is a cat's purpose in life?
- 1:02:36A cat's purpose in life is just to enjoy where it's at, right?
- 1:02:39And just like, really? Survive, really survive, if you
- 1:02:41think. Exactly.
- 1:02:42Survive and. Reproduce.
- 1:02:44Exactly. Exactly that.
- 1:02:45On our most basic level, we survive and reproduce, so if
- 1:02:49we're here to. Where does that even come from,
- 1:02:51though? That's a whole other
- 1:02:51conversation. But like, how do they know to do
- 1:02:53that? And why does that even matter to
- 1:02:55them? You know what I mean?
- 1:02:55But yeah. Totally, totally it.
- 1:02:57I, I, I totally agree with that, That's for sure.
- 1:02:59I, I've come to the same conclusion.
- 1:03:01Like on our most basic level, that's what we're here to do is
- 1:03:03survive and reproduce. But what that really tells me
- 1:03:06then is we're not here for any specific purpose.
- 1:03:11Well, that this, that's sort of what I believe.
- 1:03:12And so to me, I'm choosing for my purpose to be to enjoy the
- 1:03:17journey, right? Like, 'cause if I'm, I'm not
- 1:03:19here for a specific purpose other than to enjoy the journey,
- 1:03:22what, what am I doing, right? So, so I really wanna make sure
- 1:03:27that I'm enjoying the journey and enjoying what I'm doing.
- 1:03:29And if I'm not enjoying that, then I wanna do something else.
- 1:03:33Well, Dang, I've enjoyed this conversation, man.
- 1:03:35This has been amazing. I appreciate you being on where
- 1:03:37can people find you, get in touch with you, potentially work
- 1:03:40with you? I know we're gonna link up some
- 1:03:41of the stuff in the show notes, but.
- 1:03:43Yeah, for sure. So you can, if you need to reach
- 1:03:46me by e-mail. My e-mail is Rob, ROB at Humans
- 1:03:49First dot US and then my website is Humans First dot US as well.
- 1:03:55One thing I'd like to offer the listeners for this, for the
- 1:03:59podcast is a free complimentary discovery call with me.
- 1:04:03It's 45 minutes long. I'm happy to chat with you about
- 1:04:05your business. See, you know if it's a good fit
- 1:04:08for us to work together in terms of me helping your finances or
- 1:04:12operations. Again, I'm again I'm a
- 1:04:14fractional CFO and a fractional EOS integrator.
- 1:04:17So happy to chat with you about either one of those capacities
- 1:04:21and really grateful to be on here with you today.
- 1:04:24Alex. I really appreciate the time and
- 1:04:26the inside and I really enjoyed the conversation as well.
- 1:04:28And seems like we're very aligned on a lot of how we think
- 1:04:31about business, which is really cool because you don't always
- 1:04:34find a lot of people that are aligned with what you think.
- 1:04:37So grateful for the opportunity to chat.
- 1:04:39Appreciate being here. Thanks, but.
- 1:04:41I'm grateful to be on this journey with you today.
- 1:04:42Yes, me too. Me too.
- 1:04:44Thank you. Appreciate it.