Latest / Scrappy but Successful [Consultant's Personalities When No One's Watching] / 58. Reality Is Undefeated: Lessons from Six Exits with Russ Sorrells
Transcript
- 0:03What's happening, everybody? Welcome to Scrappy But Successful. It's a show where I sit down
- 0:07with your favorite consultants and we find out if they're successful today because they're sophisticated
- 0:11or because they're a little bit scrappy. I'm your host, Jack Tompkins, CEO of Pineapple
- 0:16Consulting Firm and Pineapple Analysts AI, always helping small businesses become more data driven. Fun
- 0:20fact of the day, Purdue University, our guest alma mater, has sent twenty-seven alumni into
- 0:24space, including Neil Armstrong, which is the most for any public university in the country.
- 0:29But that's neither here nor there. Today I'm joined by my friend Russ Sorrells He's
- 0:33the founder of Beyond the Grind. He's a certified pinnacle business guide. He sold five
- 0:38businesses. After a whole bunch of years buying, building, and selling businesses, he's now a
- 0:42full time coach. And this guy has got all the energy. I'm gonna I'm gonna
- 0:46guarantee that right up front here. he helps open and in the weeds owners that
- 0:51want to allow their team to thrive. So, Russ, buddy, thank you so much for
- 0:55coming on, man. I'm pumped to talk with you. We know that you're successful. Question
- 1:00we have for you today. Do you think you fall more on the sophisticated side,
- 1:04more on the scrappy side?
- 1:06Man, it depends on the day. It depends on the day. Some days I'm sophisticated
- 1:09and other days I'm scrappy. And then the third day would be I'm just a
- 1:13hot mess. So that's that's day number three. Now, so being from I'm from Indiana,
- 1:17and of course we got this Purdue IU rivalry thing.
- 1:20Yeah.
- 1:21one of my favorite jokes was always, do you know what the greatest thing a
- 1:25graduate from Purdue ever said? One small step for man, one giant leap for mankind.
- 1:30Do you know what the greatest
- 1:32Yeah.
- 1:33thing a graduate from IU ever said? Would you like fries with that, sir? So
- 1:35that is that was that
- 1:36Yeah.
- 1:39was a an inside Indiana joke that I had to share. but really the the
- 1:43Nice.
- 1:44joke's on us these days with Purdue or with IU winning the football championship last
- 1:48year. That's kind of a big deal.
- 1:50I was gonna say, how do you feel about that? Now they can say the
- 1:54greatest thing they ever said was, Congrats, we won.
- 1:57Yeah. It was amazing. I it was fun to watch. Obviously rooting for the whole
- 2:01time and the rivalries there for sure, but just excited that I mean out of
- 2:05the blue, who would've known? So
- 2:07Yeah. Very out of the blue. But anyways, so take us back to the thing.
- 2:11Are you are you born bred Indiana?
- 2:13Yes, I grew up in in Indiana, southern Indiana, a little town called North Vernon,
- 2:17which is north of nothing. is where
- 2:20Okay.
- 2:21where I I grew up at technically Scipio, population five hundred, but somehow
- 2:25Right.
- 2:26I made it out. I don't know. I I did I did make it out.
- 2:29Okay. And the entrepreneurs in the family growing up?
- 2:32I didn't have any entrepreneurs. I was the first person on either side of my
- 2:36family to graduate from college. So that was that was something. That was an achievement
- 2:41in itself. I, you know, going looking back on how I ended up deciding to
- 2:46be on this entrepreneurial journey, it I'll take you back a long way. My parents
- 2:50split
- 2:51Reason.
- 2:52up when I was when I was young. My dad moved to Tucson, Arizona. And
- 2:55So I would go out there and spend the summers with him. Anywhere from four
- 2:59to five weeks, I would just spend the summer. And he was a sales guy
- 3:03and he sold steel and aluminum to these machine shops and he also called on
- 3:07like Hughes Aircraft and these companies. But because it was the eighties, he would just
- 3:10drag me along with him because of course he took couldn't take the whole summer
- 3:14off, right? He would just drag me. I was a sales pawn, if you will,
- 3:18right? And so
- 3:19Yeah.
- 3:20so we're sitting at the stoplight and Paul Harvey's on. You know, are you familiar
- 3:23with you're too young to remember Paul Harvey, but
- 3:26I don't think I know Paul Harvey, no.
- 3:27Paul Harvey would he came on every day and he also had this talk little
- 3:30talk half hour thing, but he it was Paul Harvey, good day. And so he
- 3:34came on and he talked about something that was going on. Well, I was just
- 3:38waiting for the music to come back on at this particular moment. We were sitting
- 3:42in a stoplight, and my dad starts poking me in the chest really hard and
- 3:46he says, son, let that be a lesson to you. And I'm like, well, I'm
- 3:5010 years old, right?
- 3:52Yeah.
- 3:53I don't know, I don't know what he's talking about. He said, he said, you
- 3:57can't rely on the government for anything. They're not going to be here for you.
- 4:01And so he's just poking me in the chest. And and what I what I
- 4:05realized, you know, over I've I've figured out what he was talking about is Social
- 4:09Security. You know, he was saying at that time, that was back in the 80s,
- 4:13Paul Harvey said, They've determined that Social Security is going to run out by X
- 4:17number date. And it was just a bunch of IOUs that were that were in
- 4:21this in this imaginary safe, you know, that had the American people's money. And so
- 4:25he was, you know, in instilling in me the importance of being scrappy and and
- 4:30get out there and and make it happen for yourself, as opposed to relying on
- 4:34other people to make it happen for you. So that was. That was, you know,
- 4:38as I look back, we have those inflection points in our lives. As I look
- 4:42back, I'm like, that was that was one of those inflection points that I had
- 4:46no idea at the time. I just wanted the music to come back on. But
- 4:50it certainly triggered something inside of me that that never really settled and probably hasn't
- 4:54settled, I don't know. But it was it was a meaningful interaction that he has
- 4:58no recollection of. Yeah.
- 5:00It's funny how that works with parents, but yeah, I know we we joke in
- 5:03our in our monthly meetings that we're on together that you're always still trying to
- 5:07figure out what you want to be when you grow up.
- 5:10Yeah, yeah. Well, I think that's just the nature of life. You know, it's like,
- 5:14you know, we we go down that, you know, we're on this entrepreneurial journey and
- 5:19then over time, not for everyone, but for for some people, especially if you got
- 5:24that hyper activity, you're like, all right, what's next? You know, what's that next journey?
- 5:28What's the next mountain I want to climb? And and that's you know, certainly happened
- 5:33to me. I've switched I've switched mountains a time or three from my my early
- 5:38days. I had a machine shop in my garage. Dynamic Products Incorporated. I was 21,
- 5:4222 years old when I launched that. That was my first foray into entrepreneurship. And
- 5:47then I started the rep agency down here in the Carolinas. That's what brought me
- 5:52here years ago. Bought a prosthetics orthotics company, bought a car wash and oil change
- 5:57facility, bought a laundromat, and you know, real estate. I mean, just all, you know,
- 6:01all kinds of different things. And and that's that. You just continue to stick and
- 6:06move and grow and be curious, you know.
- 6:09What was what was the very first mountain that you climbed? Like you're ten years
- 6:12old, you have this sort of accidental epiphany, if you will. Are you do you
- 6:16then say, like, all right, I'm gonna go sell candy at school, I'm gonna do
- 6:20a lemonade stand? Like, what's the first initial entrepreneurialism in you?
- 6:23Yeah, so it would have been raking leaves and mowing lawns. That was my
- 6:27Nice.
- 6:28my first journey. I got scars on my fingers where I was cutting with a
- 6:33hedge trimmer, maybe twelve, thirteen years old. And turns out you need to keep both
- 6:39hands on the hedge trimmer. I
- 6:42Yeah.
- 6:43was trying to knock some of the weeds away and still using the hedge trimmer
- 6:46and I ran it into my fingers when I was doing a job for a
- 6:51neighbor. So Yeah, that was that would be it. Yard work for the neighbors.
- 6:56Okay, okay, very nice. and you throughout your many different lives, you have been a
- 7:00sales guy. Were you selling as a kid? Like did were you getting clients, aka
- 7:05neighbors pretty easily? Like did that come natural to you?
- 7:09Yeah, it's you know, with people I know, but I the the sales thing never
- 7:14I think the what happened as far as my sales evolution was, and again, unknowingly,
- 7:20the time that I had with my dad in traveling with him in the car,
- 7:26he would run his route every week. He was consistent. he knew his clients and
- 7:32he would he would banter with them, he would tell jokes, he would have fun
- 7:37with them. And I think just that presence, just being there in that environment, experiencing
- 7:43that was really unknown unbeknownst to me, set me up to be successful when I
- 7:49did join a sales agency in Michigan and then ultimately start my own down here.
- 7:55It was that was very helpful in flexing that muscle, if you will, before I
- 8:00ever knew that it was being flexed. So
- 8:04Okay. Okay. Give me give me thirty seconds on Beyond the Grind, like what you
- 8:07do today, and then we'll we'll kind of build a bridge throughout the timeline here.
- 8:11So thirty seconds on what you do today.
- 8:13Yeah, so most organizations, most businesses, they they don't have a clear plan or clear
- 8:17path for their business. I I find that that businesses struggle with a few things.
- 8:22Number one is communication. Like there is generally a lack of communication. the second is
- 8:27a is a lack of consistent revenue generation. Like how do we consistently generate revenue?
- 8:32sell our products or services is a challenge. And then third is it not a
- 8:37a solid handle on the financials. Right. So we we're our financials are are a
- 8:42mess. And so what I do is I work with these organizations to get clear
- 8:47on where we want to go. And we define that. So we answer that question
- 8:52and then we get clear on who we want to be a part of this
- 8:57business that we are creating. And then we define a clear purpose as to why
- 9:02would we do this work? How do we make sure that it's inspirational, fun to
- 9:07do? And then we define the path up the mountain, if you will. That's the
- 9:12how part. And then lastly we say, what does winning look like? And that's where
- 9:17your work comes in in the what does winning look like. We got to measure
- 9:22our progress along the way. We got to use data as a a report card
- 9:27on our performance, right? Are we doing what needs to happen or what we need
- 9:32to do to make the the numbers what we have committed to making them. So
- 9:37so it's it's really about helping them to become accountable, prioritize their focus, and then
- 9:42do the work necessary to execute at the highest level possible.
- 9:46Okay. Okay. And I we're we're gonna go back in time for a second here,
- 9:50but but before we do that, this is organizational goals are set, so to speak,
- 9:55and then you do a great job of energizing the whole team and making sure
- 9:59that people are, you know, butts in the right seats kind of thing, doing what
- 10:04they want. How difficult is that translation of top the organization, we're gonna grow by
- 10:08a million dollars, individual person, stick in your, you know, specific thing, and here's how
- 10:13we're gonna motivate you. Like, how does that translate?
- 10:16Yeah, the the challenge the setting a goal to make another million bucks is is
- 10:20easy, right? That's the
- 10:22Right.
- 10:23that is certainly the the easy part. But it's the it's the effort that's required.
- 10:26but as far as the work, it's it's really making sure, like you said, we
- 10:30got the right people in the right seats doing the right work. We're clearly everyone
- 10:35understands their role. And part one of the sayings that I always have is it's
- 10:39easier to it's easier to do work than it is to think about the work
- 10:43we're doing. Meaning our our nature is to come to work and we do work.
- 10:48And it's work that we've done day in and day out. maybe as a leader
- 10:52we're just, you know, we're just putting out fires because that is how we derive
- 10:57a level of fulfillment. You know, that that we put the cape on every day,
- 11:01we grab our fire hose and we and we put the fires out and we
- 11:05leave exhausted, like, who man, did we have problems today? and of course that's not
- 11:10what we want, right? And oftentimes the we turn into the arsonist in that case,
- 11:14right? Where we're we're lighting
- 11:16Yeah.
- 11:18the fires so that we have something to put out. But it's it's really getting,
- 11:22is that what we want? Why do we want that million dollars? What is it
- 11:26what does it matter? And then how to align the entire organization to focus on
- 11:31what it's going to take to make that happen. Too too often what happens is
- 11:35we want to launch a new service. We wanna, we wanna design a new product,
- 11:39we want to, we want to, you know, make that million dollars. We gotta revamp
- 11:44our marketing strategy, we've gotta, you know, add to our sales team, we've gotta, we've
- 11:48gotta, we've gotta, we've gotta, and we've we we got ourselves to get nowhere because
- 11:53we end up trying to be everything to all people and do everything. And the
- 11:57result is we we get nowhere when the year's up, we look back, we're like,
- 12:01man, we didn't accomplish everything that we had set out to accomplish. And it's it's
- 12:06just a bandwidth situation most often. And it's how okay, how do we what really
- 12:10matters? What do we really need to how do we if we get rid of
- 12:14the noise, what do we really need to be focused on as an organization in
- 12:19order to achieve the outcome that we're looking for?
- 12:22I I promise we are gonna go back to I got one maybe twelve more
- 12:25questions on this. How many goals is too many? 'Cause I think people and you
- 12:29and I have talked about this a little bit too, but like one overarching million
- 12:33dollar goal for the year, easy to say, mm depending on obviously where you are
- 12:36in a company, could be hard to do, but do you focus on one goal
- 12:40per quarter? Like is it is there a hard and fast rule for that?
- 12:44Yeah, the the there is no hard and fast rule. I
- 12:48Okay.
- 12:49my thing is I say we're not gonna have any more than three or four
- 12:52major objectives for the year. And
- 12:54Okay.
- 12:55in the way that we break it down, I I call it the seven three
- 12:59one ninety plan. It's what's our seven year pinnacle or seven year north star? Like
- 13:03when we're We're seven years from today, if we could put it in a couple
- 13:07of sentences, what imp impact have we made? What difference have we made? How many
- 13:11lives have we impacted? What's the influence that we want to have? And how do
- 13:16we look back and say, man, we did great work? What does that look like?
- 13:20And then we back that up and say, What are the three year milestones that
- 13:24if we achieve those milestones will confirm that we're on track to achieve that North
- 13:28Star, that pinnacle that we've set? And then we want to back that up to
- 13:33what are the one year objectives? What are the three or four things that we
- 13:37really need to focus on this year? in order to ensure that we're making progress
- 13:41toward our seven year pinnacle North Star. And then we break that down into the
- 13:45rocks, which everyone talks about rocks, but it's you know the 90 day the 90
- 13:50day rocks. And so how do we How do we back that up? And so
- 13:54you it's here's the big plan. How do we continue to narrow that down so
- 13:58that we've got the focus? And with the teams that I work with, we really
- 14:02only want obviously depending on the size of the leadership team, because that certainly varies
- 14:07depending on the size of the organization. Three to four is three to four real
- 14:11major initiatives is enough. I mean, four maybe too many, depending on how big they
- 14:15are. and obviously you don't want have three in one specific area of the business.
- 14:19You'd want, you know, one in this area of the business, one in this area
- 14:24of the business, and one in another area of the business. And so that we're
- 14:28not because otherwise, again, you got a bandwidth issue, you're asking too much of a
- 14:32specific group, and then because the work has to get done, right? These these are
- 14:36these this is not our when we have a a goal or an objective, it's
- 14:41not our work. Our work is in our job description.
- 14:44Yeah.
- 14:45This is work outside of our job description that is focused on making work lighter,
- 14:49making work easier, or eliminating an issue, or bringing on a new program, or something
- 14:55that's a a major initiative. It's it's a it's a big lift. So it's not
- 15:01just doing more of our job that we wouldn't need to set rocks and or
- 15:07anything like that if it was just about coming to work and doing your job.
- 15:13But I I'm working with an organization now. I just just getting ready to start
- 15:19with them. And they have 14 years been working with the same strategic advisor, and
- 15:25their sales have gone down 44% in in aggregate over the course of time. And
- 15:31they have they have lost 13 salaried employees over the last month or two.
- 15:37Well
- 15:38And there's been some been some real challenges in this in this organization. And the
- 15:42when I look back, I said, well, share me, share your objectives from from the
- 15:48last year. And and really they were, you know, revamped the marketing plan, develop two
- 15:53new products. And and it's it's not that they weren't important or weren't valuable or
- 15:59weren't meaningful, but they were really part of someone's job. Like if you're a product
- 16:04designer or you head that department, your job is to design products. And if you
- 16:10are the marketing leader, your job is to make sure that you've got a clear
- 16:15marketing plan and all the action associated with it. The focus needs to be in
- 16:21that situation on sales. Like it is like literally the house is on fire. We
- 16:27have got to focus all of our energy. on they they use reps or distributors
- 16:32as their way to go to market, which is what I used to be back
- 16:38back in the day I was a rep. And so how do they engage that
- 16:43sales force that they've got? I mean, up to 1,200 people out there potentially selling
- 16:49their products, but clearly none of them are selling it because their sales have continued
- 16:54to drop while the sales in their industry has continued to go up. On aggregate,
- 17:00that line of business that they're in is growing six to seven percent per annum.
- 17:05So it's not like it's it's going away. It's The sales in that market is
- 17:11is continuing to grow, but they're not capturing any of it. They're actually regressing. My
- 17:17point with it is that in that situation, the strategic advisor should say, let's stop
- 17:22everything we're doing. And here's where we need to focus our energy. And that's where
- 17:28my personality comes out because I'm like we're we're gonna have a sense of urgency.
- 17:33Like where's the urgency and leadership that is going to turn this thing around? because
- 17:39people are leaving because they've lost confidence in the organization.
- 17:43Right.
- 17:44So
- 17:45Okay. This is all right, so this this is all years of experience. This is
- 17:47the seven three one ninety is a very learned thing at this point. Take me
- 17:51back to twenty one years old at the machine shop. I imagine you're starting from
- 17:55scratch and how do how do you get that started? Is it on the side?
- 17:59How are you funding it? What's give me some high school stories from back then?
- 18:03Yeah, that's burning the candle on both ends for sure. So I
- 18:06Okay.
- 18:07my first job after Purdue, I was an engineer at Cummins Engine Company in Columbus,
- 18:10Indiana. and so that was my work. And I had decided while I was talking
- 18:14to one of my mentors, I said, Man, I want to start a machine shop.
- 18:18And and he said, Well, do it. I was like, No, no, I I really
- 18:22do. I want to start a machine shop. And he said, Well, do it. And
- 18:26effectively put, you know, put my money where my mouth was is or at least
- 18:30my effort because I didn't have any money, but my effort,
- 18:34Yeah.
- 18:35you know, where my mouth was. And so I started, I bought a computer that's
- 18:39way back when I bought a compact laptop and I had a stolen version of
- 18:43AutoCAD 10. And what I would do is design machines for his company and then
- 18:48he would pay me for designing those machines and then I would use that money
- 18:52to buy my machine. So I bought a Bridgeport mill. I bought a lodge and
- 18:57shipley lathe, I bought a wire EDM, I bought a reed grinder, I bought a
- 19:01drill press, I bought all the stuff, you know, all the all the necessary tools
- 19:06to have a machine shop. And my the garage and the house that I had
- 19:10bought had 200 amp service, so I was able to to you know bought a
- 19:15rotary phase converter and I was able to just unplug and plug things back in
- 19:19and and run those machines. So anyway, that was that was burning the candle at
- 19:24both ends for me because I would I would go to work at Cummins during
- 19:28During the day. And then after work, I would go around to the local machine
- 19:33shops because none of them had a wire EDM. And I had one in my
- 19:37garage. And so I would get their offload wire work, I would take it home,
- 19:41I would program it, I would set it up, I would run it. And then
- 19:46the next morning, I would take it back and I would drop it off on
- 19:50my way back to Cummins, right? So it was it was it was good service
- 19:55and it was you know everything that that someone would would want in that situation.
- 19:59And then I had my buddy that said, put your money where your mouth is.
- 20:04He had subcontracted a job that he had to me. And so I would do
- 20:08it's called Anvils. And so in Sinoco, you know, Sinoco is the big ha plastic
- 20:13bag manufacturing company. And so the plastic bags, they have these cutting boards. And they
- 20:17call them anvils. And so what happens is they've got this die that has the
- 20:22shape of the handles. And they drag, you know, the paper's going really fast, or
- 20:26the plastic is going really fast underneath it. And as it does it, it bam,
- 20:31bam, bam, bam, bam, bam. So it it stamps the handles into the the plastic.
- 20:35And so this anvil needed to change because that so it was a cutting board
- 20:40effectively. And so the anvil was the cutting board that that it would change, it
- 20:44would change positions, it would clock. So that it, you know, it didn't go down
- 20:48in one groove, right? 'Cause otherwise you'd catch the the plastic and and it would
- 20:53all run on top of itself. So and then they would flip it over, use
- 20:57that side, but it was a perishable product. So they would throw it away and
- 21:02have to put another one on. And so I made those products for Sinoco, shipped
- 21:06them all over the country, you know, to Texas and Florida and and and everywhere
- 21:11and beyond. But that was a job that I had every month that My buddy
- 21:15Mike had had sent over to me. So between the wire work and the and
- 21:20the lathe work, I mean, and and the I was twenty-two, I was partying, you
- 21:24know, so I was running around with my buddies and hanging
- 21:28Yeah.
- 21:29out. And so I mean I literally I was burning the candle at both ends.
- 21:33But it was, you know, the that was a great time for me personally, just
- 21:37to to learn and grow and understand what it took. that was a lot of
- 21:41hard work at you know, early early on, but again, you just realize what you
- 21:45can accomplish. When you just
- 21:47Yeah.
- 21:48say yes, okay, yes, okay.
- 21:51And from what I understand, you're you've got multiple different machines going, but you th
- 21:54you only have one outlet, it sounds like. So you're unplugging one and replugging the
- 21:57next one to move on.
- 21:59Yes, because I had this rotary phase converter, it was it was a situation where
- 22:02I'd you know turn it on and it and it's rotary. So it you know,
- 22:05it's a the my I can't imagine what it was like for a neighbor to
- 22:08walk by my garage. Because this
- 22:10Ha ha
- 22:11this machine in there's going whoa like it's making all kinds of noise. Yeah, but
- 22:15it because it's it's converting the single phase that comes into my house to three
- 22:19phase, because the the machines run on three phase electricity, so that's what it a
- 22:23rotary phase converter does. And so it's converting the electricity to three phase. And and
- 22:28so I'm I have these SJO plugs they're called and and so I would take
- 22:32the plugs and and plug it in. So I ran the wire, I'd have to
- 22:36plug it in and I would run the wire. And I did have multiple plugs
- 22:40coming out, but the wire, because of the electronics and the computer, I couldn't run
- 22:45any other machine because the the electricity wasn't stable enough for it to run. So
- 22:49but I could I could run the drill press drill the drill press and well
- 22:53it was plugged in the wall but I c I could run the bridge port
- 22:57and the lathe at the same time. But I mean if they were manual, so
- 23:02it it didn't matter, right? 'Cause I only one person I'm only one person and
- 23:06then and only one person could run it. So
- 23:09Any ridiculous marketing at that time where it sounds like it was just like a
- 23:12lot of referral business?
- 23:14Yeah, no, I was literally just knocking on knocking on doors. That was my that
- 23:18was my marketing effort was knocking on doors and and convincing people to trust this
- 23:22twenty two year old with whatever it was that and my gosh, I'll tell you
- 23:27one one project in particular. this company had they had this coin die. It's called
- 23:31a coin die, and they were stamping very thick metal with it. And Well, when
- 23:35I was setting up to run it in my in my wire, I left a
- 23:40what's called a dowel pin in the bottom of it, as I was I was
- 23:44touching things off. And so I I went to zero in my machine and the
- 23:49dowel pin was still hanging from the bottom. And so as the wire went in,
- 23:53it it hit it and it and it broke it off. And so I It
- 23:57literally broke off the the bottom of my wire. So and it was due the
- 24:02next day. This was on a Sunday, because you know, why do anything ahead of
- 24:06time? Always do it last second, you know. Yes, of course.
- 24:10Right. Procrastination's the way to go, sure.
- 24:14And so I called my buddy Mike and I say, Mike, I need to borrow
- 24:18your wire. And he's like, All right. And so so I go down and and
- 24:23I set it up on his machine. And this by this time it's ten thirty
- 24:27at night, right? And and and so I set it up on his machine. And
- 24:32I it started running and then the wire broke. So that which happens sometimes because
- 24:36it's just a little thin wire, you know, electricity's running through it, and that's ultimately
- 24:41how it it cuts the metal. Well, I when I ran the wire back through,
- 24:45I reset the machine and it started running from the wrong spot. And so it
- 24:50didn't start, and so it started wiring into the coin die. And so it's where
- 24:54it shouldn't be going. Now this is the they supplied the coin die to me.
- 24:59That was like theirs. They gave they gave it to me. And and so I'm
- 25:03just I'm just panicked now. I'm like, my gosh, what am I gonna do? And
- 25:08And I went ahead and finished it, got the draft in it, did everything that
- 25:12was needed. It just had this, had this thing that that came out on it.
- 25:17Well, my buddy Mike was like, no problem. We can fix that. So he gets
- 25:21his welder out and he welds it. And
- 25:24Ha ha.
- 25:25he welds it up and and then I I I put on the grinder, I
- 25:30grind it down, and and I you couldn't even tell. It was beautiful. It was
- 25:35beautiful until the company, you know, put it into their coin die press first hit
- 25:40where the where the where the weld had been, it just totally breaks out. You
- 25:45know, breaks out of the thing and you know my gosh. Yeah. So I I
- 25:50didn't get any more work from that company. They didn't and I stayed up till
- 25:55It's very well
- 25:56six in the morning. I was up till six in the morning doing that work.
- 26:00I delivered it and and I called it I called out sick. That was something
- 26:04I I rarely have ever done in my entire career. I don't know that I
- 26:09ever did it at Cummins, except for that one time I called out sick because
- 26:13I was exhausted. So I went home and and slept, but yeah.
- 26:17And one of my somewhat regular questions is, have you ever done have you ever
- 26:20sold anything that you're really confident in and you're like, I get a hundred percent
- 26:24guaranteed can do it, but have never actually done it? It sounds like that was
- 26:28the majority of the work in the machine shop. Yeah.
- 26:31That has been the work of my life. You know. Can you do that? I
- 26:34don't know. But we can try. Yeah. Yeah. Well, I used to sell
- 26:37Right. Right. But I'll figure it out there.
- 26:40engineered solutions. So I, you know, automated equipment, like multi-million dollar assembly lines that put
- 26:44things together like this, you know, this road mic, you know, the automation to put
- 26:49that together. I would sell a machine to do that. And So you're you're literally
- 26:54selling something that's in someone's imagination that they've typed up on the paper and they've
- 26:59scribbled out in some AutoCAD drawings to say, here's what we're what we're proposing to
- 27:04build you. Give us three million dollars and we'll build it for you. And obviously
- 27:08you talk about a an exchange of trust. There certainly has to be
- 27:13Yeah.
- 27:14a real exchange of trust because they're relying on you to not weld the coin
- 27:19die after you have screwed it up.
- 27:22Do you
- 27:23And then try to sell it to you know, so
- 27:26do any machine shop work today?
- 27:29I don't do any machine shop work today. I haven't I have not turned a
- 27:33crank for for many years. But I would say that that was one of the
- 27:37most rewarding that was some of the most rewarding work that he did. It's nothing
- 27:42like taking a a print and a block of steel and then making it look
- 27:46like the print. Like that was that was a great skill skill to develop. Like
- 27:50I I told you I broke the I broke the bottom off of my piece.
- 27:55Well I I made the part to fix it, right? So I literally took that
- 27:59part, I reverse engineered it, and I made it myself and and and it all
- 28:04you know worked out well. So Definitely a great skill to have, especially if you
- 28:08know, when you from a creativity perspective, because you need to be creative in in
- 28:12how you're going to solve it. And and there needs to be some type of
- 28:17linear flow to it as well, right? You don't just take this block and start
- 28:21drilling holes in it. You've got to square it up and and then get it
- 28:25exactly right. Then you have to have a touch off point to where you can
- 28:30start to measure in and like all that stuff that that goes along with it.
- 28:34There's just it's a it's a progression that you learn and you realize, I mean,
- 28:39when you're hanging a paper. painting. Like it you know it it's there's a whole
- 28:43progression that you can apply, you know, from from that lesson of machine shop. But
- 28:47obviously painting a painting is not quite that, but sometimes it is for me, because
- 28:52it has to be just right.
- 28:54This is as crappy as it gets. I love it, man. Okay, so then you
- 28:57go from the machine shop. Just we'll focus more on today, but still what what
- 29:01were the other businesses that you end up buying? It sounds like there was a
- 29:05variety there. And did you did you use the first one to buy the second
- 29:08and then sell the second and buy the third?
- 29:11Yes, that's exactly right. Yeah, it was all you know, the the funding came in
- 29:15different ways. We we bought a a laundromat and that was really helping my sister
- 29:20in law out. She wanted to buy it. I had capital and so rolled the
- 29:24capital in and that was pretty much a hand off hands off. I would go
- 29:29up. It was up in New York, so I would go up and help out
- 29:34sometimes and and be a part of it. And it was fun, you know, looking
- 29:38through the numbers and helping guide her. And and that was gosh, that was twenty
- 29:43years ago now. I mean it's been a long time since we since we did
- 29:47that venture. but then ultimately she had enough capital that she could buy me out,
- 29:52which was the plan all along. so that that happened. And then from there, I
- 29:57bought the prosthetics and orthotics business with a friend of mine. We bought it for
- 30:01a dollar because it was it had seven hundred thousand dollars. Was it seven It
- 30:06was about seven hundred no, it was four hundred thousand dollars in debt. It had
- 30:10seven hundred thousand dollars of receivables. but the receivables were way far, way far along
- 30:15because it was a medical practice. It was a prosthetics and orthotics business, so not
- 30:20a medical practice, but it was in the medical field. and aging receivables that you're
- 30:24having insurance pay, you're never gonna get paid for aging receivables. So anyway, that business
- 30:29was in a in a in a real challenge. I think it was one pay
- 30:33period away from being in default, you know, not being able to pay its employees.
- 30:38So we we got that business for a dollar. I injected the capital that I
- 30:43had into it and then I started applying an operating system in the business, working
- 30:47with the team members, getting them in a in a position to lead it from
- 30:52a day-to-day perspective. We made some changes, got the cash flowing again, and ended up
- 30:56with a a really amazing business. that someone else had had had and it had
- 31:01been successful, but they took their eye off the ball. And when you take your
- 31:06eye off the ball, it Yeah.
- 31:08How the heck did you find that? Like 'cause you this is a field that
- 31:11you had experience in at the time.
- 31:13No, well, so I I I didn't, I didn't. So my my accountability partner, who
- 31:18Sunday morning before church, we would get together on a on a regular basis. And
- 31:23so his name's Kelvin. He was in the business, right? So he he was he
- 31:28owned at the time like ten percent of the business. And so
- 31:32Mm.
- 31:33he was He and then my wife is an orthodist, so I understand that industry
- 31:36overall, right? So I had a I certainly had some perspective. I didn't have, you
- 31:41know, an ownership stake in it. But you know, business is really simple. You got
- 31:45to get work, you gotta do work, and you gotta get paid. Like this fundamental
- 31:50every business bottom line, that's it. And and so when when you're in any business,
- 31:54it's a matter of figuring out, okay, how do we how do we win business?
- 31:59Right, how do we do that? And What do we have to do to execute
- 32:04on delivering the value to our customer? And then third, how do we make sure
- 32:08that we get the ratio right so we get paid for that? So that that
- 32:13is fundamental to it. So it was it would that was a lot of fun.
- 32:17I really I would say, you know, as I look back on my career and
- 32:22and the fun, like that was a blast to take something that was on the
- 32:26verge of of being done and figuring out how to how to revamp it and
- 32:31turn the spigot on again and and get it get it rolling. So that was
- 32:36a great experience.
- 32:37Did you have any clients in that business or the machine shop or anything, or
- 32:41I guess even beyond the grind today? any clients early on they're like, All right,
- 32:45this is gonna be easy money, I know how to do this, this is gonna
- 32:49be super easy, and then they end up losing you money.
- 32:52Well, let's see. Do any of them that end up it's gonna be well my
- 32:55gosh. Yeah, so I have I have one right now. I love them to death.
- 32:58I love the
- 32:59Ha ha ha.
- 33:00admission. I love it. But it's you know, very it's a hard business. It's a
- 33:06it's a really challenging business that's very people dependent. The the the clients are very
- 33:12demanding just because of their socioeconomic challenges that they are experiencing. and and that that
- 33:18Business is it is hard work. And they're they're so mission driven that the numbers
- 33:24don't come into focus as much as I would really appreciate that they would for
- 33:30their long-term survival. Right. So it's okay, we've got five lines of business, which ones
- 33:36are successful and which ones are not. And and getting them to step back and
- 33:42be willing to say no. That's the the biggest challenge is, you know, we we
- 33:48sign up to do this, we sign up to do that. we just want to
- 33:54add multiple revenue streams and because you know more is better. but obviously we know
- 34:00from experience that we need to do less better. That's really the the recipe for
- 34:07success over the long term and getting them to step back and define which product
- 34:13lines we Intuitively they know. They know which ones they should be doing and then
- 34:19know which ones they should stop be doing or stop doing. But the stopping is
- 34:25so hard for people. Right? You've you've got you got this thing and you're doing
- 34:31this thing and it's just hard to stop doing the thing. But even though the
- 34:37thing
- 34:38There's money coming in.
- 34:39is pulling everything else back, I mean, really, you know, the ship is sinking. You
- 34:43let's let's let's throw that thing over so that we can get more buoyant. But
- 34:48So that's you know, that's the challenge that I have in my in the work
- 34:52that I do is I'm very candid with clients. I don't beat around the bush.
- 34:57I think you know, clients pay me to help them see reality. You know, I
- 35:01hold up a mirror often. It's it's holding up a mirror. They know what's going
- 35:06on. They're smart people. and you know, so they then they understand fundamentally, but the
- 35:11accountability part that comes with you said you were gonna do this. You didn't do
- 35:15it. What was more important than doing what you said you were going to do?
- 35:20Like where's where's the the gap here or what am I missing? And and so
- 35:24having those very candid conversations, I think is what you know, CEOs, owners, leaders appreciate
- 35:29most is that even though they don't always want to hear it, it's what I'm
- 35:34gonna share. And but I and I tell them too, I'm a hot mess. Like
- 35:38I we're all a hot mess at the end of the day, right? It's but
- 35:43it's a It's a matter of first recognizing that we're a hot mess, then we
- 35:47can we can have that humility, but just live in reality. I so many people
- 35:52are fighting reality. And the last time I checked, it was undefeated. Like I don't
- 35:56even I don't have you ever beaten reality? I so
- 36:00Ha ha ha.
- 36:02we but yet we fight it all the time. It's just we gotta accept what
- 36:07is and then take action and do the moves necessary to create what it is
- 36:12that we want from a a different outcome.
- 36:15Okay, okay. I like it. I do love that saying of reality is unbeaten. That's
- 36:20pretty good.
- 36:21Hmm.
- 36:23all right, let me hit you lightning round, scrappy versus sophisticated. We're gonna go back
- 36:27all the way back in the day. Did you collect anything as a kid? Stamps,
- 36:31baseball cars, anything like that.
- 36:33Man, you know, I I didn't. I didn't. no, I I did I Star Wars
- 36:37figures. I did I did collect Star Wars figures. I don't mean if that's a
- 36:41thing.
- 36:42Yeah.
- 36:43but I certainly had the Darth Vader you know, box that had all of the
- 36:46different ones in it. So I had two of those. I had so many. And
- 36:50I had the Millennium Falcon, I had the X Wing Fighter, I had the TIE
- 36:53Fighter, I had them all.
- 36:55Did you think that was gonna make you rich one day or is it more
- 36:58just fun to collect?
- 36:59the Hoth battlefield. no, I spent a lot of time by myself as a kid.
- 37:03And I would set up these imaginary wars, you know, in Star Wars. And I
- 37:08was obsessed with that. So so really it was my entertainment as a as a
- 37:13kid. Yeah.
- 37:14Okay, all right. shout out to your dad for bringing you along to all these
- 37:19different sales calls. Did you have to unlearn anything from either parent in terms of
- 37:24entrepreneurship? Or selling for that matter.
- 37:27Mm.
- 37:29Sound like your dad knew his way around
- 37:30You and I'm where I
- 37:31a a sales meeting.
- 37:33He's he certainly he certainly did that. I would say trying to trying to please
- 37:38everyone. You know, that's the the bigger challenge that you know I my mom is
- 37:43a she's a people pleaser. you know, I would say we even my dad to
- 37:48a degree, obviously you get in sales, you're a people pleaser, and then that yeah,
- 37:53was part of me when in my sales career trying to be a people pleaser
- 37:58and and the reality is that generally people need to please themselves, you're not gonna
- 38:04please them. And but it's not that you don't want to delight them. So you
- 38:09want to deliver, if you deliver fair value, then and you're doing good work, that's
- 38:14what that's what matters. And if if people I mean you definitely want the feedback,
- 38:19but ultimately you're not gonna please everyone all the time.
- 38:23Okay, that's pretty good. That's pretty good. I can actually take that lesson for myself.
- 38:27early days of business. Was there a version of ramen noodle dinners that was keeping
- 38:31you fed at night?
- 38:33Man, so when I was early on, I didn't have a stove in my house
- 38:38or a refrigerator.
- 38:39Yeah.
- 38:41I used a cooler. so I the house that had the
- 38:44Nice.
- 38:45that had the machine shop on the back of it, I I literally had a
- 38:48cooler that I that I used. I didn't have a stove. I had a crock
- 38:53pot and so I I love to hunt and that's what people think that's gross
- 38:58but I I would you know get squirrels and rabbits and and so I would
- 39:03I would literally crock pot my my rabbits or squirrel
- 39:07Yeah.
- 39:08and in some cases that's the only way you could soften up the squirrel meat
- 39:11was to put it in the dang crock pot and make it edible. But yeah
- 39:15that was some barbecue sauce and so yeah there was those were some times where
- 39:18eventually
- 39:19Yeah.
- 39:20I bought a I bought a stove 40 bucks, I think I paid for that,
- 39:25for that stove. I probably paid about the
- 39:28Yeah.
- 39:29same for the refrigerator. but yeah, so it was it was definitely scrappy. Yeah. I
- 39:34I had a bed, I had a couch, I not much else.
- 39:39I love it. I love it. have you ever used two previously used dryer sheets
- 39:45instead of using one new dryer sheet?
- 39:49Well I gotta I don't do I don't do laundry. I don't
- 39:53Okay.
- 39:57I don't I don't know, but I would definitely would. Like I I am the
- 40:00you know, use one every other load kind of person. you know,
- 40:04Gotcha.
- 40:05if I if I were to and I mean there was a time certainly when
- 40:08I when I did laundry, but now it's it's like magic, it it comes back.
- 40:12Done. And it's not that it's not that I won't do it. It's just I
- 40:16don't do it right. Right. And so if you don't do it right, then you
- 40:19end up not doing it.
- 40:21Right. Yeah, there you go. It is not the task for you. take me inside
- 40:25the office. How many monitors do you use on your desk?
- 40:29So I've just got I've just got the one in front of me now. I
- 40:33do a I do a ton of writing. Like that like in a you know
- 40:37day for me would be the writing in in this in this on this remarkable
- 40:42or you know, I'm big into in into journaling and and just getting those thoughts
- 40:46out, those creative thoughts that are that are in there, trying to flex that muscle.
- 40:51I think that's the for me personally, that's my happy spot. So not looking at
- 40:55a a computer monitor, you know, nowadays I don't I don't really need, you know,
- 41:00I check my email. obviously we have Zoom calls, but I'm not looking at spreadsheets
- 41:04and doing all of that on the regular like like you would be. So I
- 41:09mean, but my
- 41:10Interesting. Okay.
- 41:11my office or my desk here looks like a train wreck at the moment. It
- 41:15it has it has stuff everywhere. So
- 41:18That is the next question. How many business cards are on the desk currently?
- 41:22Yeah, I don't have any business cards
- 41:24Ooh.
- 41:25on on the desk. and that's simply because I wait, here's one. No, I lied.
- 41:30Here's one. free agency, Summerberry, is is here and yeah, and then repattern
- 41:37Sure.
- 41:40it. Reverend Mary Schneider and then yeah. So I there's a there's a you know
- 41:47you collect these things and and you're like, who who was that?
- 41:54on that same note of collecting things in the office, anything really unique in your
- 41:58office? Any any mementos, anything like any awards from past days or anything like that?
- 42:02Well, let me show you this. So this here, you know, my my dad was
- 42:07you know so he was very into Jim Roan, who was a motivational speaker. He
- 42:13was very into Zig Ziggler and and all those guys. So he was he was
- 42:18very into them. But his this is Earl Nightingale's lead the field. My dad My
- 42:24dad gave this to me. I don't know when it was from, but you can
- 42:29see like it is and it's it's it's the it's the binder. This is the
- 42:35binder like that came
- 42:37I would for the audio listener, this is a this is a book that's been
- 42:41through some days. it's a okay.
- 42:43that came with the with the content. And it's it's a it's a workbook. And
- 42:48it has it has the it also has the records in it. See the the
- 42:53records in there.
- 42:55wow.
- 42:57Yeah, and so So that is that is extremely unique to and and something that
- 43:02I mean I have I'm sure it's probably not worth any money, but that's not
- 43:07the point. It's it's
- 43:09Yeah.
- 43:10something my something my dad gave me that is is meaningful for me. So that
- 43:14would be an end.
- 43:16That's pretty good.
- 43:17And I've got another one up here, you know, that so my says my father
- 43:22didn't tell me how to live, but lived and let me watch him do it.
- 43:27So, you know, those those I love those kind of sayings that as a as
- 43:32a parent, it's so we we want our kids to to be successful. We're gonna
- 43:37try to give everything and and and make it as easy as possible on But
- 43:42I I didn't really have that philosophy. It's like, man, they need to have we
- 43:47they need to have challenges like we had. Like they've you gotta experience the the
- 43:52wire breaking in the middle of ten thirty at night and try to fix it
- 43:57in the in just the the stress that comes with that. But I think it's
- 44:02such a challenge that we have is we're trying to lift the burden off of
- 44:07people when ultimately if we have them challenged, especially early on, it's going to make
- 44:12them more resilient as they get older. Antifragile, I think is the word they use
- 44:17nowadays. So
- 44:18There you go. Yes. Okay. Okay. I like it. These are this is the very
- 44:23unique things. take me inside the inbox. How many emails unread is too many?
- 44:28I don't know. I I there I've got one email inbox that has 23,492 unread.
- 44:33Yeah.
- 44:34And I have another one that's the one I use more frequently has I think
- 44:39about 2,300 unread. Because well the inbox
- 44:42Okay. Okay. So the limit does not exist for you.
- 44:45is the inbox is everyone else's agenda, right? I mean that's it is it is
- 44:49someone most often saying, I want something from you, right? It's and in the case
- 44:53of a customer, obviously that's not the case. I we want to respond to those
- 44:57and but if someone's sending a message that they you know, just there's a lot
- 45:02of a lot of spam and bam that goes on, man, it's amazing how fast
- 45:06they can get your darn email address and the and they they just are relentless.
- 45:10No matter how often you block It just it doesn't stop.
- 45:14And then they Yeah. They
- 45:18So
- 45:19they find a new way. The hackers and the spammers are always smarter. does your
- 45:22phone currently have any cracks or screen issues?
- 45:25It does not. It is not. I am you know I'm fortunate to have not
- 45:30that not be a thing for me. I never I never have really cracked when
- 45:35we got a screen protector on it's yeah. My phone's good.
- 45:40That is shocking. Okay. All right. That's pretty good. how many phone numbers do you
- 45:43have? Just one? Okay. If somebody's trying to set up a meeting with you.
- 45:46Just one. Just one number. Yep. Just one number. I know I see a lot
- 45:49of people carrying around two phones. I'm like, my gosh, I can't even keep track
- 45:53of one. I'm gonna keep track of two.
- 45:56If somebody's trying to set a meeting with you, do you say, I'm free later
- 45:59this week, or are you sending a calendar invite?
- 46:02Well, if we are, I generally send a calendar invite because otherwise I will say
- 46:06yes and then promptly miss the meeting when it comes up. So
- 46:10Gotcha. Yep.
- 46:11I have to I have to know that it's going on.
- 46:14Okay.
- 46:15it has to be on my if it's not on my calendar, it ain't happening.
- 46:19Yep. Yep. I feel ya. okay, man, I'm trying to get a a a clear
- 46:23determination of scrappy or sophisticated. I think it does depend on the day, but I'm
- 46:28guessing more days are scrappy than others, Russ.
- 46:31Yeah. Well, that is I think that's how I would categorize myself. Don't let the
- 46:35books throw you off. I just buy
- 46:38Yeah.
- 46:39I just buy to make myself look smarter. Like that's the
- 46:42Right. There you go. what do you got coming up? Anything you want to promote?
- 46:48Anything you want the folks out there to know?
- 46:52man, I just been I've been blessed with a couple new clients coming on board.
- 46:56I've got still have still have room for for one or two more clients in
- 47:01in the practice. but we were just making a heck of an impact on the
- 47:06clients that we get to serve and and the transformation. I love it when my
- 47:11clients let me in and it's really I I I'm on the leadership team with
- 47:16them. It's the we are on this journey together and that has been a more
- 47:21and more of my clients were in it together. It's not like I'm just consulting
- 47:26on the outside. And the difference in my practice and how I do things is
- 47:30a lot of people that do what I do, they come in, they do a
- 47:35session, they leave, they come back 90 days later. And there's really not much interaction
- 47:40that's going on. My work is I will have a regular conversation one-on-ones with the
- 47:45leaders in between the sessions. So that's important to me to stay connected, to make
- 47:50sure they're focusing on their priorities, to address any issues that they're having, talk to
- 47:55them about their people challenges, whatever's going on. I love it when the owners and
- 48:00leaders get me involved in helping them to make those decisions in that process. And
- 48:05I always say I don't make decisions for anyone. What I do is I share
- 48:09my experience. experiences. And and then those experiences can maybe help direct someone to to
- 48:14make a decision. But ultimately it's really about them making the decision that's right for
- 48:19them. It's their business.
- 48:21And there you go. And if we learned anything, we uncovered just a tiny fraction
- 48:26of experiences. And I'm guaranteeing there's a whole lot more experiences to share though. Russ,
- 48:31I've been I've been blessed.
- 48:33I always enjoy talk with you, man. I always get excited after a conversation. Thank
- 48:36you so much for coming on, man. I appreciate it.
- 48:39Yeah, I appreciate you, Jack, and good luck to everyone out there.
- 48:42Thanks so much. Stay data driven, everybody.
- 48:44Mm-hmm.