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Study Hall: STEPS TO BUILD A CONSULTING SIDE BUSINESS · Earn Your Leisure

0:00
Speaker 1: So you're you're an engineer my training, and you you
0:04
Speaker 1: worked for the railroad company, right, right? Can you explain that,
0:07
Speaker 1: like what you actually did, because that what you did
0:09
Speaker 1: that for twelve years? Right?
0:10
Speaker 2: Yeah?
0:11
Speaker 3: So I started while I was in college, like working
0:13
Speaker 3: for in part time. But what I did was so
0:17
Speaker 3: design rail terminals. I mean it's pretty it was pretty
0:23
Speaker 3: simple as far as engineering, because you're not building buildings
0:26
Speaker 3: and everything. But it was just a lot of work
0:28
Speaker 3: that was needed to like when after a derailment, you know,
0:32
Speaker 3: realigning the track, making sure that the trains can run
0:34
Speaker 3: because they they running a high velocity on these two
0:36
Speaker 3: little bitty rails and you got hundreds of thousands of
0:39
Speaker 3: tons moving at sixty seventy miles an hour, so you
0:42
Speaker 3: had to make sure that everything was designed, the curvature
0:44
Speaker 3: was right, and all that kind of.
0:45
Speaker 2: Sf And where were you doing this at?
0:47
Speaker 4: So I started off working for ce In Railroad.
0:50
Speaker 3: So I was covering between Chicago and ben Ruge, Louisiana.
0:54
Speaker 5: Wow, because we seen in you know the past few months,
0:57
Speaker 5: these railroad systems, the subwatses especial you know where we're from,
1:01
Speaker 5: that are completely outdated.
1:02
Speaker 2: They're running on systems that are from like.
1:04
Speaker 5: Nineteen ten, right, and we're like, how is this even possible?
1:07
Speaker 3: Yeah, technology has not changed, and they just they do
1:10
Speaker 3: the minimum maintenance to keep it up. So I was
1:12
Speaker 3: on like the freight side, so it wasn't any passenger rail.
1:15
Speaker 3: So a lot of it's behind the scenes. You know
1:17
Speaker 3: that they didn't get a lot of exposure unless that's
1:18
Speaker 3: a big derailment somewhere.
1:19
Speaker 2: Yeah, So merchandise and product is moving through your.
1:23
Speaker 3: Life right exactly, And like eighty percent of anything that
1:27
Speaker 3: moves somewhere in the United States, if it comes in
1:29
Speaker 3: on a cargo ship from China somewhere, it moves by
1:32
Speaker 3: rail at some point in time. It only moves by
1:34
Speaker 3: truck when it gets closer to its destination.
1:35
Speaker 1: Yeah, don't think people realize how big of a business
1:38
Speaker 1: trains are because the vast majority of the country probably don't.
1:42
Speaker 1: They don't ride trains like we're kind of because we're
1:44
Speaker 1: from New York, so we're used to riding trains, subways
1:47
Speaker 1: and trains. It's pretty normal. But most of America they
1:51
Speaker 1: don't really ride trains like that anymore. So people might
1:54
Speaker 1: not fully understand that trains is a big business and
1:58
Speaker 1: even if you don't ride it, like you said, a
1:59
Speaker 1: lot of cargo ros.
2:01
Speaker 2: Yeah.
2:01
Speaker 3: And what people don't realize is that the railroad is
2:03
Speaker 3: basically what helped build the West. Like when everybody went
2:06
Speaker 3: from the East coast to West coast, everything was moving.
2:08
Speaker 2: By a rail.
2:09
Speaker 3: It was small trains, great expansion, right, yeah, the great expansion. Yeah,
2:12
Speaker 3: everything was done by rail And people always wondered why
2:14
Speaker 3: the railroads in the hood that wasn't always the hood.
2:16
Speaker 3: That's what the first area that was settled in every
2:18
Speaker 3: small town because you had to bring everything in by
2:21
Speaker 3: a rail to set up, you know, the infrastructure, build
2:24
Speaker 3: a city hall, to build small buildings.
2:26
Speaker 4: Everything came in by rail.
2:27
Speaker 5: So one of your job t not titles, but responsibilities
2:31
Speaker 5: is designed Are you designing the actual tracks?
2:34
Speaker 2: Like what what does that mean?
2:35
Speaker 4: Yeah? Designing actual tracks?
2:37
Speaker 2: You are?
2:38
Speaker 4: Yeah, Oh well, I mean that's what I did.
2:40
Speaker 2: Now.
2:40
Speaker 4: I did that for.
2:41
Speaker 3: The first four years I worked for the railroad. But
2:43
Speaker 3: like I said, I wanted to get out of engineering.
2:45
Speaker 3: So and once I started getting into reading the real
2:48
Speaker 3: estate and entrepreneurship stuff, I realized I needed to learn
2:50
Speaker 3: more about business. So I kind of took that opportunity
2:53
Speaker 3: while I had.
2:54
Speaker 1: The corporate.
2:56
Speaker 3: Blanket over me to try to get into other departments.
2:59
Speaker 3: So I went to the operation. So I ran freight.
3:01
Speaker 4: Terminals for like four years.
3:03
Speaker 3: And that was crazy experience because I'm like twenty four
3:05
Speaker 3: to twenty five mosion guys that's forty fifty twice as
3:08
Speaker 3: much money as me. You know, the union guys make
3:10
Speaker 3: over one hundred grand a year. I was making like
3:12
Speaker 3: fifty sixty. So I learned a lot about managing people
3:15
Speaker 3: that in that role. Then I got out of that
3:17
Speaker 3: and I got into the marketing and sales side, and
3:20
Speaker 3: I was lucky enough to get into industrial products, which
3:22
Speaker 3: is chemicals and oil and gas stuff. So I'm sitting
3:25
Speaker 3: in rooms with all these decision makers that Exxon, Chevron,
3:28
Speaker 3: pill Up sixty six, these type companies, and yeah, man,
3:32
Speaker 3: it's just open mye's to a whole different world. They
3:33
Speaker 3: speak a different language. You learn a lot more about
3:35
Speaker 3: the economy and infrastructure of everything.
3:37
Speaker 1: And what's one of the things you learned when you
3:39
Speaker 1: was working on that side of the fence.
3:41
Speaker 3: Man, I just learned how money really works and how
3:44
Speaker 3: people really make decisions. Because energy runs the country, you
3:48
Speaker 3: know what I mean, Like without without coal, without oil,
3:51
Speaker 3: Without gasoline, everything shuts down, and so they know that
3:55
Speaker 3: they basically have monopoly on everything, you know, and the
3:58
Speaker 3: profit margins are crazy in the what's.
4:00
Speaker 1: The profit margins?
4:02
Speaker 4: Three hundred percent on a lot of stuff?
4:04
Speaker 1: Wow, on like gas and oil and stuff. Yeah, so
4:06
Speaker 1: let me ask you this. Then, a lot of people
4:09
Speaker 1: are saying that we should move away from that, going
4:13
Speaker 1: to solar energy, wind energy, electric energy. You're you're an
4:18
Speaker 1: engineer and you worked in the space. Hey, is that realistic?
4:21
Speaker 1: And what's your thoughts on that? Like, as long term,
4:24
Speaker 1: can we continue the way we're going now or do
4:26
Speaker 1: we have to make a change.
4:28
Speaker 3: I mean, eventually there will have to be a change
4:30
Speaker 3: because there's a limited amount of fossil fuels out there,
4:33
Speaker 3: so we're gonna have to find other energy sources that
4:36
Speaker 3: we can use that are renewable. So it's definitely feasible,
4:39
Speaker 3: it's definitely plausible, and like wind, sunlight, water, that stuff's
4:47
Speaker 3: not gonna go away, So we're alway gonna have that.
4:49
Speaker 3: But you just have these big institutions that are making
4:52
Speaker 3: so much money off of the fossil fuel based energy
4:56
Speaker 3: sector that they're not going to just give up their.
4:58
Speaker 1: Position and they do a lot of lobby in Washington.
5:00
Speaker 3: That's I was about to say, that's something that we
5:01
Speaker 3: don't really understand, but that lobbying is powerful. That's why
5:04
Speaker 3: all the legislation really happens. I don't care who you
5:06
Speaker 3: vote for, it's somebody with money in the behind the
5:09
Speaker 3: scenes in Washington taking them out to dinner, wining and
5:11
Speaker 3: dinam and that's when the real decisions are made.
5:13
Speaker 2: You got to make sure they keep their money.
5:15
Speaker 1: I remember when Hillary Clinton was running for president versus Trump.
5:20
Speaker 1: I think, yeah, so they were saying, I think Chase
5:24
Speaker 1: Chase put like ten million into Hillary's campaign, but they
5:28
Speaker 1: put nine million in Drumps campaign. So no matter who won,
5:31
Speaker 1: they won, it doesn't matter. I mean, that's what people
5:33
Speaker 1: don't fully understand either. It's like you're playing a political
5:36
Speaker 1: game based off of emotion, but these people are playing
5:39
Speaker 1: a political game based off a strategy.
5:40
Speaker 2: It's two different things. Yeah, they're playing chess.
5:42
Speaker 1: Yeah, they're gonna give money to Republicans, Democrats, and independence
5:45
Speaker 1: because at the end of the day, they need what
5:47
Speaker 1: they need done, and money talks.
5:49
Speaker 5: And whoever whoever's the decision maker, either red or blue,
5:53
Speaker 5: is gonna help them right.
5:54
Speaker 1: Yeah, so you started a business the erail commerce. Can
5:58
Speaker 1: you talk about that?
5:59
Speaker 3: So basically something else I like to teach entrepreneurs, especially
6:03
Speaker 3: the ones that's coming out of corporate world. Everybody feels
6:05
Speaker 3: like I got to create something new, Like I got
6:08
Speaker 3: to get into an industry that I see everybody else doing, right.
6:11
Speaker 3: But what I realized is like, man, if this company
6:13
Speaker 3: is paying me one hundred grand a year to do
6:14
Speaker 3: this job, there has to be a smaller business out
6:17
Speaker 3: there somewhere that needs these same services, need the same
6:20
Speaker 3: skill set, and I can just go out and provide
6:23
Speaker 3: the service for them, and instead of being their employee,
6:26
Speaker 3: I become their consultant. So that's what Erael commerces. I
6:29
Speaker 3: took all that experience I had, all those connections I
6:30
Speaker 3: had with the railroad, all these oil and gas companies,
6:32
Speaker 3: and I found all these smaller companies that need or
6:36
Speaker 3: want to get a contract with an Exxon.
6:38
Speaker 4: Because Exon has over ten thousand rail cars.
6:41
Speaker 3: Everyone of elose cars has to be maintained, has to
6:42
Speaker 3: be repainted, has to be cleaned, that has to be
6:45
Speaker 3: maintenance done to them. They have to storm when they're
6:47
Speaker 3: not using they got to park them somewhere. So what
6:49
Speaker 3: I do is I help all those companies that provide
6:51
Speaker 3: those services get in the door with exon, get the contract,
6:54
Speaker 3: and then they perform all the work and I just
6:56
Speaker 3: get commissions off of the deals.
6:58
Speaker 1: So you get like the relationship, man.
7:00
Speaker 2: I am.
7:00
Speaker 3: I'm basically brokering, basically broker in and I have everything
7:04
Speaker 3: set up with with my clients to where whatever contract
7:07
Speaker 3: that helped them get I get paid.
7:09
Speaker 2: So eraail is not the only.
7:12
Speaker 5: Form of consultation that you're providing, right, Don't you have
7:15
Speaker 5: a few other consultation things that you do well.
7:17
Speaker 3: I mean, in general, I just try to help entrepreneurs
7:19
Speaker 3: get started, you know, because I mean I was so
7:21
Speaker 3: lost when I was trying to get out out of
7:23
Speaker 3: the work world. I was like, man, nobody was really
7:25
Speaker 3: here to guide me and teach me. So I use
7:27
Speaker 3: my social media platform, and you know, I use that
7:31
Speaker 3: network and that audience as as my way to give back,
7:35
Speaker 3: you know. So anybody that has helped wants help with
7:37
Speaker 3: it getting started entrepreneurship, I try to teach them the
7:39
Speaker 3: basis the kind of stuff we're talking about now, you
7:42
Speaker 3: know what I mean. I get them as far as
7:43
Speaker 3: I can and then I try to network with someone
7:45
Speaker 3: that's actually in their field.
7:46
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Speaker 4: Try to get them to get under that person.
9:41
Speaker 5: So you're providing the mentorship by consulting, right, Okay, gotcha.
9:45
Speaker 1: Consulting is something that we also haven't spoken about yet
9:48
Speaker 1: in this podcast, but it's extremely important and it's a
9:50
Speaker 1: very profitable business as well. Consultants. You have consultants in
9:53
Speaker 1: school industry, you have consultants, and political industry you have
9:55
Speaker 1: consultants and all kinds of stuff. Right, can you explain
9:58
Speaker 1: the importance a lot of time, especially for small business owners.
10:01
Speaker 1: This is the problem with small business owns us compare
10:03
Speaker 1: the business big business. They have a small way of thinking.
10:06
Speaker 1: They don't understand the power of consulting. They don't understand
10:09
Speaker 1: the power of marketing. They don't understand They just want
10:11
Speaker 1: to just do the work. It's like running on the tread,
10:14
Speaker 1: but you can only get so far. Right. When you
10:16
Speaker 1: get enough wind behind you, know, you can start to fly.
10:19
Speaker 1: So when you're talking about the power of consulting, like
10:23
Speaker 1: what can somebody get value out of a hiring the
10:27
Speaker 1: right consultant.
10:28
Speaker 4: So there's only two ways you're gonna learn.
10:30
Speaker 3: You're either gonna bump your head and you're gonna lose
10:32
Speaker 3: time and money, or you're gonna pay for the knowledge.
10:35
Speaker 1: Period.
10:35
Speaker 3: There's no other way you're gonna learn, right, So you
10:39
Speaker 3: hire a consultant. A consultant that's someone that's an expert
10:41
Speaker 3: in that field, that has already got experience doing what
10:43
Speaker 3: you're trying to do. Or they can help you with
10:45
Speaker 3: a particular area of the business that you can't fulfill.
10:48
Speaker 3: Like if you have a great product but you don't
10:51
Speaker 3: know how to get it in front of enough people,
10:53
Speaker 3: you need a marketing consultant to come in and help
10:55
Speaker 3: you get it in front of the right people. And
10:58
Speaker 3: so it's basically a way for you to you can
11:01
Speaker 3: add a whole department to your business without actually having
11:04
Speaker 3: a hire enn employee.
11:05
Speaker 4: It's a consultant.
11:06
Speaker 2: You know.
11:07
Speaker 3: That consultant can neither be somebody that's paid by an hour,
11:09
Speaker 3: or it could be somebody that I always recommend you
11:12
Speaker 3: get performance based consultants, which means they work off a commission,
11:16
Speaker 3: So if they don't produce for you, they don't make
11:18
Speaker 3: any money, right, so that that gives them a vested
11:21
Speaker 3: reason to get in there and work hard and get
11:23
Speaker 3: something done. And on the flip side of that that,
11:27
Speaker 3: like you said, that's a very lucrative business too, because
11:30
Speaker 3: it's a business where it doesn't require you have to
11:31
Speaker 3: invest a lot. You can work from home and be
11:33
Speaker 3: a consultant and people actually paying you just for the
11:35
Speaker 3: knowledge that you already have.
11:37
Speaker 4: You know, so you can take that corporate experience.
11:39
Speaker 1: You could.
11:39
Speaker 3: Man, you could have been flipping burgers and McDonald's for
11:41
Speaker 3: five years, but guess what skill set you got. You
11:44
Speaker 3: know what it takes to onboard a new employees. So
11:46
Speaker 3: you can go to other small restaurants and say here's
11:48
Speaker 3: the McDonald's model. I'm gonna teach you how to run
11:50
Speaker 3: a McDonald's model for your restaurant.
11:52
Speaker 2: And that's something that anybody can do.
11:53
Speaker 5: Like as you're saying it, I'm thinking of like especially
11:55
Speaker 5: in the education field, and especially in the restaurant field
11:58
Speaker 5: as well. It's like people always try to figure out
12:01
Speaker 5: how can they make passive income, right, and they don't
12:03
Speaker 5: realize that they have a skill set already. They're just
12:06
Speaker 5: overlooking it, right, They're not maximizing their potential.
12:09
Speaker 1: Well, this is one of the things you talk about
12:10
Speaker 1: multiple streams of income. That is, the average million that
12:13
Speaker 1: has seven streams of income. That doesn't mean they has
12:16
Speaker 1: seven jobs or even seven businesses. Is that they're maximizing
12:20
Speaker 1: their skills maybe one or two businesses. So, as you said,
12:24
Speaker 1: you can be a teacher, right, but you're an expert
12:28
Speaker 1: in that field. If you're a really good teacher, Now
12:30
Speaker 1: you can be a consultant to school districts, right, curriculum
12:34
Speaker 1: things of that nature. Right, And that's something that anybody
12:38
Speaker 1: can do. As choice said, even if you're still an employee,
12:42
Speaker 1: you can be an entrepreneur and create your own consulting business.
12:45
Speaker 5: And the amount of time. It doesn't require as much
12:47
Speaker 5: right to say these are my hours. You dictate the hours,
12:50
Speaker 5: and you dictate the fees.
12:52
Speaker 3: And a lot of times you're helping different customers and
12:54
Speaker 3: clients with the same problem exactly, so you already know
12:57
Speaker 3: it like in and out.
12:58
Speaker 1: You know, for your consulting business, how did you market
13:00
Speaker 1: yourself to your customers and clients?
13:02
Speaker 3: How do you man The most powerful tool I use
13:05
Speaker 3: is linked in, Okay, And what I liked about LinkedIn
13:08
Speaker 3: is because when when you put yourself on there as
13:10
Speaker 3: a business owner, you give yourself whatever title you want,
13:14
Speaker 3: you know, so I gave my it's just it's me
13:17
Speaker 3: and one partner, but my title is Executive VP. So
13:21
Speaker 3: that puts you in a whole different arena. They look
13:23
Speaker 3: at you like, it's all perception. It's all perceptions. So
13:27
Speaker 3: then when I go to when I see a company
13:30
Speaker 3: that I'm trying to get a connection with, and I
13:32
Speaker 3: go to the CEO and request to connect with them,
13:35
Speaker 3: they were like, oh, it's another executive that wants to
13:36
Speaker 3: connect you.
13:37
Speaker 2: We got an exec that wants to meet you.
13:39
Speaker 3: Yeah, And that's all it is, is positioning, and it's
13:41
Speaker 3: it's all about you. Know what you post. I post.
13:43
Speaker 3: I repost a lot of Wall Street durnal type articles
13:46
Speaker 3: that related to the industry. Any type of insight that
13:49
Speaker 3: I get from anybody else that's in the industry, I'll
13:51
Speaker 3: make a post about that. So then you kind of
13:53
Speaker 3: position yourself as a subject matter expert. So then a
13:56
Speaker 3: lot what happens is eventually enough people are watching your
14:00
Speaker 3: posts to where when they have a problem, they come
14:02
Speaker 3: to you instead of you having to go out and
14:04
Speaker 3: ask for business. And another great thing I like about
14:07
Speaker 3: LinkedIn is because you can type in any job title
14:10
Speaker 3: you want. So I'm in a supply chain, right, I
14:12
Speaker 3: type in director a supply chain. LinkedIn is gonna give
14:15
Speaker 3: me a list of people with that title.
14:17
Speaker 4: So all I do is go connect connect connect, connect,
14:19
Speaker 4: connect connect.
14:20
Speaker 3: You know, and then that builds you audience because people
14:22
Speaker 3: go to check you out to see who is this
14:24
Speaker 3: that's asking the link with me? And then like my
14:26
Speaker 3: network on LinkedIn is like seventeen thousand, it's all industrial products,
14:30
Speaker 3: supply chain people from all these big companies.
14:33
Speaker 1: That's a lot of that's a lot linked You got
14:34
Speaker 1: to accept every single person, right.
14:36
Speaker 3: Yeah, well yeah, the person that the person has to
14:39
Speaker 3: approve the connection. But if your page is set up
14:42
Speaker 3: to where it looks like, oh, this is somebody that
14:44
Speaker 3: I might want to my network, then you're good. And
14:47
Speaker 3: that's the whole purpose of you know, making sure that
14:49
Speaker 3: you set yourself up right on there with the right titles.
14:52
Speaker 1: You send and you send uh was it in mail?
14:54
Speaker 2: Right?
14:55
Speaker 1: They send you in mail? So you could both.
14:57
Speaker 4: I guess something of both.
14:58
Speaker 2: Yeah.
15:00
Speaker 3: I met with a guy matter of fact, he flew
15:02
Speaker 3: in from Arkansas last week because he's working with a
15:06
Speaker 3: private development group that does industrial development and they're looking
15:10
Speaker 3: for new locations to build new rail terminals. And that's
15:13
Speaker 3: part of my job when I working in the railroad,
15:14
Speaker 3: so that's part of my consulting too. So he literally
15:16
Speaker 3: reached out to me because he had been seeing me
15:18
Speaker 3: make these posts on LinkedIn about railroad development and railroad terminals.
15:24
Speaker 3: So he this gout literally fluent for the day, just
15:25
Speaker 3: for that meeting.
15:26
Speaker 5: You are using your resources efficiently, and a lot of
15:30
Speaker 5: times people don't realize that, Like they're just on LinkedIn
15:33
Speaker 5: or they're just on Facebook just to put pictures up,
15:36
Speaker 5: not networking, and not realizing that how powerful a tool
15:39
Speaker 5: they have at their fingertips.
15:41
Speaker 1: Well, LinkedIn is only for networking, but I got to
15:44
Speaker 1: get a better I go, actually got to do a
15:46
Speaker 1: better job on LinkedIn because I don't know, I just
15:48
Speaker 1: don't feel too comfortable with it. I feel like it's
15:50
Speaker 1: some kind of boring.
15:54
Speaker 4: It is boring, but it's like Facebook, but it's for
15:56
Speaker 4: business only.
15:57
Speaker 2: Yeah, it's powerful, Yeah, it is, it is.
16:00
Speaker 3: I mean you can you would be surprised that people
16:03
Speaker 3: that don't have a lot of LinkedIn followers that are
16:05
Speaker 3: like powerful people, like I mean like producers, executive producers
16:09
Speaker 3: at these big stations. They may have five hundred, one
16:12
Speaker 3: thousand connections and you go requested and it's approved the
16:15
Speaker 3: next day, you know. But it's like it's like it's
16:17
Speaker 3: like a back door to get the connection that usually
16:20
Speaker 3: you have to call a corporate headquarters and talk to
16:23
Speaker 3: administrative person and ask the schedule time to meet this person.
16:26
Speaker 4: You just got to LinkedIn and find them.
16:27
Speaker 5: So when you need it's like getting you past all those.
16:30
Speaker 4: Steps, like all the gatekeepers. Yeah, pass all the gatekeepers if.
16:33
Speaker 2: The person's on LinkedIn, if they're on that, but.
16:35
Speaker 1: Every everybody's on LinkedIn and LinkedIn is one is the
16:38
Speaker 1: most powerful search thing too, because like so when you
16:40
Speaker 1: search somebody's name on Google, the first thing that comes
16:42
Speaker 1: up is LinkedIn. That's like the first thing. It's like,
16:44
Speaker 1: it's like your online resume pretty much it is. And
16:47
Speaker 1: so I don't know how they how they work that
16:49
Speaker 1: with the algorithm, but they always are on the top
16:51
Speaker 1: of your thing. So you kind of have to have
16:53
Speaker 1: a LinkedIn page if you're doing anything in business. It's
16:56
Speaker 1: like almost mandatory. Yeah, agree, got up that man, Yeah, alright,
17:00
Speaker 1: so that was good.
17:00
Speaker 4: A