Podcast appearances and mentions of mark why

Mark Cronin '80 and his son John Cronin join Maura Sweeney '07 to speak about how they came to found John's Crazy Socks. A serial entrepreneur, Mark passed along this passion to John.  In the spirit of Holy Cross, theirs is a company created to do good.  Through John's Crazy Socks they are living their mission to “spread happiness,” while also serving as advocates for workplace equality and voices for people with differing abilities. Interview originally recorded on March 17, 2021. Due to the ongoing effects of the pandemic, all interviews in season 2 are recorded remotely. --- Mark : It's the nature of the social enterprise, you've got to have a mission. You can't be, we just want to make money. It's got to be something larger than yourself, an impact you want to have on the world. And when you're driven by that, it's so motivating. All the petty stuff falls away. And that's how you can go and connect with people. We get asked, what's the key ingredient? What skill? A lot if it is just belief. If we have a mission to spread happiness, just believe. Maura : Welcome to Mission-Driven where we speak with alumni who are leveraging their Holy Cross education to make a meaningful difference in the world around them. I'm your host, Maura Sweeney from the class of 2007, director of Alumni Career Development at Holy Cross. I'm delighted to welcome you to today's show. Maura : In this episode, I speak with Mark Cronin from the class of 1980 and his son, John Cronin. Mark and John are co-founders of John's Crazy Socks. A company whose mission is to spread happiness, where over half of the employees have a differing ability. An entrepreneur at heart, Mark has been creating opportunities and organizations ever since his days at Holy Cross. From creating The Lunchbox Theater as a student, to running political campaigns, to founding a software company, his career path shows what can be done when you pursue an idea. Maura : Every step of the way he's been driven by mission. And every step of the way has prepared him for his role at John's Crazy Socks. Our conversation focuses a lot on the incredible work that Mark and John are doing through John's Crazy Socks, to raise awareness about people with differing abilities. They live the motto, to whom much has been given, much is expected, and they do it well. We are lucky to have people like Mark and John working hard to improve the lives of millions of others, because it's not just the right thing to do, it's also good for business. Maura : Mark and John, it is really wonderful to be here with you today. How are you today? Mark : Pretty good, right? John : Pretty good dad. Mark : Life remains interesting. Maura, thank you very much for having us on. Maura : It is my pleasure. It is my pleasure. I have been really looking forward to talking to you about Mark, about your career journey and John, about how you came to help co-found John's Crazy Socks, and the incredible work that you're doing together to really make a difference for people with differing abilities out in the world. Before we get to that, and before we get to John's Crazy Socks, because I could go down a rabbit hole there. First, I'd love to know more about you and your family. I know that you're both New Yorkers. Have you always lived in New York? Mark : So, we live in a town called Huntington on Long Island. I tell the story about that with John. He sometimes laughs at me about this. So, I grew up here on Long Island in part of Huntington, Huntington Station, and when I was 19, I set out for the world. I was leaving and I'm never coming back to Long Island. So in 1997, by that point we had three kids. Our eldest was in first grade and we had moved several times. And if you move two blocks with a little kid, their world turns upside. So we said, we'll buy a house and we'll stay in one place until you get out of college. And we wound up buying a house in Huntington Bay in Huntington, not out of college, out of high school. We said, we'll stay here. And there were a few times where boy, all I wanted to do was travel and move. Mark : There was one point I had this interesting opportunity in Hong Kong, and I sat the family down and I gave them a pitch and they all listened and they nodded and they said, "Dad, that sounds great. And why don't you send us a postcard when you get there, because we're not going." But then, so our two elders, they get up and leave and John, he got an extra three years of high school, but now he's in his final year of high school and I'm thinking, and my wife, Carol is also a Holy Cross grad. We're thinking we can move. We can relocate. Mark : Even after starting this business, we thought you could run an online business from the moon. We could go anywhere. Well, the good news is the business took off faster than we expected. So, we started with a three-year lease and now we have a bunch of employees, and I am going to die on Long Island. I'm not getting away. Maura : No. Well, and I can tell too, just from what I've seen in just the different media footage and the stories about the way you run John's Crazy Socks, is it's also a community organization. Mark : We think about community a lot, we think about the community here. I'm always wary of businesses that say, we're like a family. I don't know about that. But we're building a community there. We think about the community that we're building around here, our customers and supporters. But we also think about the local community and you've got to be good citizens. You got to be engaged in their community and giving back and involved. So, there is a lot of things we do, and that's important to us. Maura : Well, thinking about community and thinking about Holy Cross, because you're an alum from the class of 1980, I know community is a huge part of someone's time at Holy Cross. I'd love to hear about your days on the Hill and what brought you to Holy Cross from Long Island. Mark : So, a different day and age. Okay. I'm getting out of high school in 1976 and I really knew nothing. I didn't really know anything about looking at schools. At a college fair, I got a booklet that seemed interesting. I applied to three schools. I really applied to two. I applied to Holy Cross and Boston College. A third school came in and started recruiting me for football but by that point, I wasn't thinking of playing football. I got in both Holy Cross and Boston College, and was going back and forth. I didn't really know how to choose. So, Boston College had me up for a weekend with a group of students and they greeted us saying, we think you want the leaders of the class of 1980. Mark : And as soon as I heard that, I was like, well, I don't want to come here. If you think I'm one of your leaders, you're in trouble. So, I wound up at Holy Cross and there were a few points. Freshman year, where I was like, I don't know if this is really the right place. I thought of leaving, but once I made the commitment to stay, well, then you're all in. And like most things, the more you put in, the more you get out. And I was thinking, I just sent a package of socks to a guy named Father Carlson, who was my freshmen advisor. And I took him for a survey of Greek lit, but I was particularly thinking of one moment, just a small moment that altered the course of my life. Mark : It was sophomore year, second semester, sophomore year. And he called me in his office. I was trying to think, how did he get me? There was no email, there was no text. But he had me come into his office and he sat me down, and he was the head of the honors program. And he gave me a picture he said, "You should really apply for this." I was like, "Me. Nah." That's not how I thought of myself. I could talk. I was a pretty serious student, but I did a lot of other things too. I didn't do a lot of sleeping. Mark : I walked out of there and thought, oh. I still, I'm not very... I'm kind of... Not counting on it... To inviting you to an honors program. I was really not very smart because I'm thinking, well, I still don't have a chance. Not even thinking well, the head of the program asked me to do this. So I apply and got in the program. And now I spent my junior year at Trinity College in Ireland. Mark : But among the other little things, you got to take the seminars and it was so wonderful. So I took a seminar in non-Euclidean geometry with a guy named, I think his first name was Ted. Ted Cecil, math professor. It was just wonderful. Blew my mind of opening up the world and different ways of thinking. And I could tell the story a little bit, but on graduation, I wind up teaching math and religion. And first question was, did you study any math in college? Yes, I studied non-Euclidean geometry. Mark : And I got to spend a year working with Bob Cording, writing a thesis on a book-length poem by Galway Kinnell, called The Book of Nightmares. And I had met Galway because he was a visiting writing instructor, actually for the Worcester Consortium. So, I was able to take a poetry workshop with him when I was a sophomore. But to spend a year engaged in writing, I learned how to read, I learned how to write. It was so wonderful. Mark : So, just that experience and the confidence it gave me and helped me, it challenged me to think, you're really not that much of an idiot. But then jump ahead a couple of years, I'm bouncing around doing different things. I'm working for a Congressman in New York and I want to get into public policy, public affairs. He's advised me to go to law school. So I apply to some law schools, and I get something in the mail from the Kennedy School of Government at Harvard. And I read it and say, "This is what I should do." Mark : So, I apply there and I get in. Later, I served on the Admissions Committee at the Kennedy School and realize how the heck did I get in? And I know the crucial factor was, I was in the honors program and Holy Cross. So for some reason, Father Carlson took that time to call in this knucklehead and say, "You may want to do this." And in that way, it was just a conversation, but it had this impact on my life. And I'm 62 now and it's still blooming, and those are special moments. Maura : Well, and that's one of the things that I really enjoy is I get to have conversations with alums like you in this podcast, is to hear how many times individual people reaching out and knowing you as a person has a tremendous effect. And the fact that Holy Cross is small and allows people to get to know you and to see something in you that you didn't recognize in yourself at that moment. Mark : There were things you got to do. Some of this was day and age. So late seventies, there was so much freedom. My sophomore year, I realized that we were at this giant buffet table and it was all you could eat. You could get whatever you wanted. And so at the time, you would take four courses each semester, but you weren't limited to that. So I saw it as, well, naturally I'll take a fifth. I don't have to pay more. And then I would find out and sit in on other classes, then I would find out if you didn't see a class that you wanted, you could just make one up. Now I know Independent Studies, but that wasn't structured then, so sophomore year went to John Mayer, who was the chair of the English Department, and he taught myself and my two housemates a course on Bob Dylan, which was awesome. Maura : That's great. Mark : I remember mentioning it to my parents saying, "I'm taking a course on Dylan," and they were like, "What are you doing?" But it was awesome. Or senior year, my girlfriend, now my wife, we were college sweethearts. So she started on a course, which is not unusual at Holy Cross, of a bio pre-med and quickly wound up as an English major. But now, in senior year and she's got to make up some of her English credits. She's not seeing a lot, she can fill it up, but she needs one more course. We'll just find one. Mark : And I'm like, "Who are some of your favorite authors?" And she hits on Joseph Conrad. I said, "Great. We'll get a class on Conrad. You and I, we'll go do this." And she goes, "How are we going to do that?" "Don't worry." And so, Pat Bizzell in the English Department approached her and she said, "Sure, this would be great." So the two of us would read a book a week, and then we would meet with her, and how awesome is that to be able to have and go and do those things. There were a lot of things like that, but it's also, there were other things that were more extracurricular. Mark : So, sophomore year around Christmas, I read Tom Wolfe's Electric Kool-Aid Acid Test about Ken Kesey and the Merry Pranksters. And they would have what you would call today, a rave. And I'm reading this with the house band, The Warlocks, which changed their name to be the Grateful Dead. I'm reading this and I'm like, I would love to go to something like that. But what do I know? So then decided we'll have our own, and went off and did things, which now I look back like, wow, that was pretty good. I got a group of people together, today we could call a board. Everybody put money in, we sold tickets. We bought some things that we resold. I won't go into that even if the, what do they call it? The standards, the laws say that they can't arrest me anymore. And we had this three-day party with bands. It was just wonderful because you could go do that. Like again, different day and age. Mark : That year, I'm sleeping in Beaven, and every Wednesday night we had a cake party where we would charge money, and $1 would go to buy the cake for the next week, and 1$ would go towards this three-day party. So, I was learning to be an entrepreneur and then repeated it at a different level senior year. I came back from Ireland, wanted to do something and we created something called The Lunchbox Theater. During the lunch hour, we would put on plays and poetry readings, and concerts, and just had a blast doing this. And I'd run around and line people up and get people to agree to stage a play. What great fun. And we could go and do it. No one was going to stop you, and that it was encouraged and that was great. Maura : Well, and I can see now why you didn't sleep at all? Mark : No. Between that and work. I had a professor, Brendan Kenelly at Trinity College who would say, you go to university to find out what you don't know. And I didn't know. Eventually Father Carlson before, so I'm taking this Greek lit class freshman year, and now we come on to our first blue books, and I was in Carlin, which then was primarily a freshmen dorm. You could feel the stress level rising. And I'm like, well, I should be worried. I should do something. And that's when I realized I had no idea how to study. I had no idea how to take notes, no idea how to study. I didn't know really what to do. So I stayed up all night, re-read The Odyssey and The Iliad and I showed up with no sleep, but it's all fresh in my mind now. A lot of it, because I was so unsure of myself and insecurity that gets flipped sometimes as bravado. Mark : I remember it was a Bob Cording class sophomore year, and okay, different time and age, and I am ludicrous. It's a 10:30 or an 11 o'clock class and small class. I think everybody was a senior, I'm the only sophomore in the class. And I'm showing up in my bathrobe, sitting in the back of the class. And he turns, he hands out the first paper, and Bob was so diligent and detailed notes, but very demanding. Hands this out and he announces to the class, "I'm really disappointed and they're poor. And I'm telling you now, you're going to have to rewrite these." Because the highest grade, there were like two Cs and everybody else got a D. And I'm thinking, what the hell? People are slumping. He says, "But was one paper that just hit the mark and I'm going to read it to you." And he starts reading it. And all the people, I'm like several rows back from everybody, they're all looking at each other because they all know each other. Is that yours? Is that yours? Slowly they realize it's the freak in the back of the class. Mark : Again, it was somebody, Bob coming to me and saying... It's a lesson I had to keep learning. Don't be a fool. You can do things and now that becomes an obligation. You got to make something of that. Plus, there's friendships. I was texting last night with a buddy of mine from Holy Cross. We're still close. For a long time at that house that I mentioned, we would have like 25 people come down for president's weekend, bringing their families. We had this at a mini reunion. My wife, Carol, during the pandemic at six o'clock every Tuesday night, there's a Zoom call where they call themselves the Carlin Girls. They're in their sixties. They're not girls, but they do a Zoom call and they'll get 20 people in it. And every five years, they take a trip together and they go to Miami, or I guess, The Bahamas they've been to, all because there's this rich connection that was made at Holy Cross. Maura : It is. It's a special, my best friends in the world are from Holy Cross. It is, it's a special time, and it's nice when you can make those connections. It's amazing to see them last. Mark : And there's something about the Jesuit Mission and the liberal arts that always has you asking, inquiring and asking for more. It directly feeds into the business we have, which is a social enterprise. We have a social mission, and where do you get that from? Well, you get it from some of the activism and some of the yearning that was instilled in me in college. Maura : Well, and it seems like, looking at your career, from Holy Cross, you mentioned the Kennedy School, and then fast forward to today with John's Crazy Socks. It seems like, and I'd love to hear from you, but it seems like there's this thread of entrepreneurial-ism and mission and 'striving for the more' that seemed to be woven throughout your path. Mark : I look back and I guess I've always been an entrepreneur. I didn't always have the language to use it, but early on, everything and again, I didn't always necessarily have the language, but everything was mission-driven. So, I got out, I taught school for two years. Pure happenstance that I did that, I went to graduate school for literature. I was in a doctoral program and I'm sitting in there, sitting in a class the day the US invaded Grenada. And I don't know if people remember. It was this tiny island and we had to go rescue medical students. It was crazy. And I'm like, I should be doing something. So that's how I got the job at the Congressman. I showed up at his office and said, "I want to work with you." They said, "Well, we don't have any jobs." "That's all right. I'll volunteer. I just want experience." Mark : We move into a community and you'd connect. I can remember when we moved into Greenpoint, Brooklyn, we were early hipsters. It was before it boomed, and through the church and we set up a food bank, we set up a clothing depository. We work with the local recycling program to set something up, because you go and do that. I spent much of my career in the healthcare field. I wound up running the Medicaid health service program in New York City, and then ran a series of companies that were trying to figure out, how do you better deliver healthcare to the poor? How do we better organize care? Mark : But some of that Holy Cross thing was always there of the liberal arts and how do you pursue that mission and those values and still be carrying things out? But that wide interest, it fueled a lot. I started a software company. I ran political campaigns. I did a fair amount of writing. I published some of my less than really terrible fiction. And even this enterprise, we've now been doing this for four years, but people would say, well, when did you get into it? How long have you worked in retail? How long have you been in the sock game? Got no background in it. But I'm 62 today, everything I have done has prepared me for this moment. Everything I have done in my life has prepared me for this interview. Maura : Well, and that is the perfect segue to pull you into this John too, and to talk about John's Crazy Socks, and talk about the incredible work that you are doing. Because you're making a lot of change and you're doing a lot of good in the world through this company. Mark : We're very fortunate, but what are the two things you always talk about? John : Try to do for others. Mark : Try to do for others. It sounds trite, but the more we can do for others, the better off we are. We're living a dream. We get to do what we want to do. We have no excuses. We can't blame it on the board. We can't blame it on headquarters. And it also speaks to the way we run the business and our appearance. One of the internal ambitions, and I've always wanted this to be a way, I want this to be a great place to work. I want people to love working here. We work at that and you make that happen, and that runs through... What's our overall mission pal? John : Spread happiness. Mark : Spreading happiness. Well, you got to start at home and people got to be happy, and you have to understand it can't be lip service, it's got to drive through everything you do. So, here's an easy way. When it comes to customer service, you heard the old saw, the customer is always right. Nonsense. The customer can be damn wrong. But we're not in the business of being right. We're in the business of making customers happy. So, we don't limit any time that people spend with customers. People that work with our customers know they can spend 200 hours on any customer, at any time, doing anything they want, just go and wow that customer. Mark : We had something last week. Somebody had ordered something they said they were going to pay by check. That's pretty rare, somebody say they pay by check. And what our folks did was they said, "Okay," but they didn't fill the order until the check arrived. And when they did, it was an item we had sold out. So we sat and I said, let's think about this. First, in four years, maybe we've received 15 checks. It doesn't happen. Every time somebody says, they're going to send us a check, they send us a check. So, why not just live in a world where we trust people. And as soon as we get the order, we ship it out and trust that we're going to get the check. And my colleagues are looking and saying, "Can we do that?" "Why not? We can do whatever the hell we want to do." Mark : And they were like, "Well, what if people do this or that?" I said, "Nobody does that. Would you do that? So why don't we just treat people that way?" And it's so easy. And wouldn't you rather live in that world? Maura : Yes. Mark : Now, if we get burned, if all of a sudden people are fake, but it doesn't happen. We doing the same thing with our returns. You don't have to send us anything. Just let us know. If there's any problem we're going to replace it. We're going to give you your money back. We want to make you happy. What results of that? Well, if we treat you that way, you tell other people. Aren't people happy, because we're not going through stuff. We're just trying to make you happy, and our return rate last month, our refund rate was 0.6%. Businesses would kill to do that. We give away anything we can. Maura : Well, and I know that the origin story, if you will, of John's Crazy Socks is out there for people to read and to watch. But I'd love to hear from you about that moment, because I talk to so many people who dream of starting their own business. Who say, someday, I'd love to do this, but there's a very small percentage who actually do it. So what sparked that courage to really go and make this happen? Mark : Well, first of all, it is, again, it's much simpler than you think. Worst thing that happens is, you fail. And you go on. But ours grew out of a specific situation, this particular business, and origin stories matter. Because you take your DNA and they run through everything. So ours, it's the fall of 2016, and where were you buddy? John : I'm in school dad. Mark : Which school? John : Huntington High School. Mark : So, he's in Huntington High School in the states, and this is across the country. You can remain in high school until you either graduate or turn 21. If you have a disability, you can stay until you're 21. So this was going to be John's last year at school. Like everybody else, he's trying to figure out what do I do next? What are you looking at? John : I looked at shop programs in school. Mark : See anything you like? John : No, I never saw anything I liked. Mark : Well, the answer is, there's not a lot of great choices. John grew up in a household where he saw me starting different businesses and running things. And I'd like to say he's a natural entrepreneur, because he did things like that himself in school. I remember showing up at his summer school, we've got a summer program, and came into some and the principal came out and said, "I want to talk to you about John." And that was always good. Particularly my middle guy, Jamie, the principal comes, wants to talk to me, that's not good. That's the same way with me. But with John, okay. Well, it turned out John wanted to run a talent show, and he organized a talent show at the school. Never mentioned to me. He didn't think why I have to ask permission, I just go and do this. Mark : So, he doesn't see anything he like, the natural entrepreneur doesn't see that as a problem, but as an opportunity. So what do you tell me? John : I want to go into business with my dad. This is my idea. Mark : I was starting some online businesses. He comes and tells me that, it's like, okay, let's go do this. And traditionally, what you do in a business, once you get the idea, is you stop everything to prepare a business plan. Work out your competitive analysis, your market research, your operational projections, financial projections. We did none of that. We went what's known as the lean startup route. We were bootstrapping. Let's just get something up and running. I've worked with venture capitalists before and done that. We didn't want to do that. Just get something up and running. And he's the perfect partner because he just believes, of course this is going to work. Maura : Why wouldn't it? Mark : Why wouldn't it? And so much of what we've been able to do is why not? So, I'll let you know on something that's coming up on March 30th. This is top secret information. On March 30th, we're going to introduce our unity socks, which are blue socks with American flags on them. We want them to symbolize inclusivity and unity, and we get this idea. We want to give them to every member of Congress. So on March 30th, we have two local congressmen coming, a Republican and a Democrat, to help us introduce these socks, and we're going to give them to every member of Congress. We've already been invited to come up to Albany and do it in the New York State Legislature. And we see ourselves that we can go across the country, just symbolizing look what's possible. Have John be handing out these unity socks. What a wild, ridiculous idea and yet, okay, who's going to stop us? Maura : And yet it's so perfect. What a perfect idea. Mark : And it just grows. Not every idea is a good idea. We have bad ones. We do a lot of presentations. Right before this, we were speaking virtually to a school in New York City. Last week, we got a question from a high school student, need to ask permission from to do these things. It's like, no, that's part of the power. You don't have to ask anybody for permission. Just go and do and come back to... It's the nature of the social enterprise. You've got to have a mission. Mark : You can't be, we just want to make money. It's got to be something larger than yourself, an impact you want to have on the world. And when you're driven by that, it's so motivating. All the petty stuff falls away, and that's how you can go and connect with people. We get asked, what's the key ingredient? Which skill? A lot of it is just belief. If we have a mission to spread happiness, just believe. So when you ask on the origin story, okay, we'll find a way forward and we'll go test it. And it turned out it went well, right buddy. Maura : Well, I think even more than just believe, you talked about wanting to make a great place for people to work. And I think that the fact that you care about your employees, and you care about the people, both who work with you and who you serve, that is another really big piece. Mark : It's all the whole. So yes, our mission is to spread happiness. You do that by hiring people with differing abilities and showing what they can do, by giving back and by making personal connection with our customers. When it comes to this workplace, one of the things we're trying to share with other employers, hiring people with differing abilities is not altruism. It's good business. And what do we see? Morale is way up. Productivity is high, retention is through the roof and it helps us recruit. And it makes for a better workplace. You think the benefits would mainly accrue to the people with differing abilities, but everybody is better off and everybody is happier. Mark : But I've worked over the years into, in essence, a formula on employee engagement. One, you have to start with a mission in which people can believe. It's got to be something greater than ourselves. It's got to be something that can matter. Two, everybody has to know how they fit into the mission, how their job matters. There's no leg work. There's no, I'm just a cog in a machinery. Yes, our webmaster knows, but our sock wranglers, that's what we call the pickers on our pick and pack warehouse, they know their job matters. Mark : Three, put people in a position to succeed. Don't ask them to do what they can't do. Give them the tools. If they need a special chair, get them a chair. If they need a software tool, a webmaster needs some analytical tool, get that for them. As a manager, you have to be a leader. And in doing that, what you have to make clear to people is, I work for you. My job is to put you in a position to succeed and if you have problem, if you have a limitation, my job is to try to help remove that limitation. Mark : Four, recognize what people do. People care. It's as simple as saying, thank you. I saw you doing this. What you do matters. We value. And then the last, stay the hell out of the way. Let people do their jobs and they will thrive. But some of this comes down to, it's like a Christian thing. Do unto others, treat people the way you would like to be treated. If you treat people poorly, they will respond that way. If you treat people that I don't trust you, so I have to manage and inspect and micromanage, they will respond in kind. Maura : Well, and I know that you've had a lot of opportunities to spread this message. I recently saw that you joined this CEO Commission on Disability Employment. And I know when we've spoken before, you mentioned going before Congress in the past. Mark : We've been very fortunate. We've had a fair amount of media coverage. We've had some viral experiences, and we go out and basically proselytize. John, you love the speaking engagements, right. John : Yeah. I love speaking engagements. Mark : So yes, we've done things. We've testified twice before Congress, we've spoken to United Nations. We're part of the State Department Speakers Bureau. So they had us take a little speaking tour in Canada. We didn't get tour T-shirts made up, next time we will. And yes, we're on the CEO Commission for Disability Employment. And I laugh. This was founded by Voya Financial and the Society of Human Resource Managers. How are we on this? Like, we're on this National Autism @ Work Roundtable with IBM and Microsoft and Ernst & Young and Warner Brothers, and John's Crazy Socks? Mark : We appreciate the opportunities and you could go back to Rome and find this motto, and you can see it with the Kennedy's and with Spider-Man. To those who are given opportunities, come great responsibilities. So I'll give you an anecdote on that. We're down on Capitol Hill, and we get a phone call here in New York in the office, from a customer in Houston who says, "I see that John and Mark are on Capitol Hill. My mother works there. She's a big fan of John's, would it be possible for them to meet my mom?" Person says, "Sure. Here's Mark's cell phone. Just text him your mom's name and contact information and he'll do it." Who's mom? Nancy Pelosi. Mark : So now, we get an audience with Nancy Pelosi and forget about right wing, left wing. We vilify our politicians too often, or deify them. They're just people. She's a grandmother. She comes in, her eyes light up seeing John, and she brings out pictures of socks that she gave former President Bush, because John had become a sock buddy with former President Bush, George H W Bush, where they exchanged letters and socks, and all this is great. We take photos, but now we have this opportunity that creates an obligation. Mark : So it's yes, but Ms. Pelosi, we have to talk about some other matters. One, we have to talk about repealing section 14(c) of the Fair Labor Standard Act of 1938, great piece of American legislation. It created the 40 hour workweek, it eliminated child labor, it created overtime. But it allows employers to pay people with a disability less than minimum wage. So, there are 400,000 people being paid as little as five cents an hour. And we are grateful that we have this opportunity, but we are now going to take advantage of this. Mark : I'll give you a recent one where, despite our best efforts, we contracted the COVID virus, John, my wife and myself. And for Christmas, we gave John a hospital stay. He was admitted on Christmas Day, it was dicey for a few days. People say it's nothing, it's just the flu. Now very healthy, got out eight days later. So, we held an event at the hospital because we know we can attract media attention. So we went back to the hospital and you got to thank everybody, right? John : I did. Mark : But we also used it to do two other things. One, to raise awareness about the risk that people with down syndrome face, they're not more likely to get the virus, but if they do, five times more likely to be hospitalized, 10 times more likely to die. So, we want to get that word out. The other thing, the hospital let me stay with John the entire time, even when he was, because things went bad for a day or two. When they moved him to the critical care unit, they let me stay. Now, Federal Regulations require that people with a disability, that they get access to their caregivers. That's not the way it's practiced, particularly during COVID. So, we wanted to highlight look, this is better for everybody. That there's always a little medicine with the sugar. Mark : So, we keep driving that mission and you can't separate the two. We'd like to make money, we'd like to live indoors, like to pay the rent. And if the business doesn't succeed, then we'll go home and all this stops. So you got to make that happen, but like the giving back. So, we baked into it from day one. We donate 5% of our earnings where? John : Special Olympics. Mark : Special Olympics. Why the special Olympics? John : I'm a Special Olympics athlete. Mark : And then we've created a whole series of products that celebrate causes and raise money for charity partners. So the first one was a down syndrome awareness sock, raises money for the National Down Syndrome Society. But more recent ones, an EMT tribute sock raises money for a local EMT squad. Last April, we wanted to thank people. We introduced healthcare, superhero socks, and they've raised over $50,000 for frontline workers. Mark : And there have been different points when very smart people have said to me, you're not making money. What are you doing making these donations. But we wouldn't have the business we have if we weren't doing that. Willingness for the long haul. So, among things that are really cool, our little business we've raised over $400,000 for our charity partners. Maura : That's amazing. Mark : John here is a special Olympic athlete, who's raised over $100,000 for the special Olympics. We make sure everybody who works here knows they're all philanthropists. It's very cool. We're so fortunate. So in the end, we are these knuckleheads running a sock business and this is a small business, and all we want to do is change the world. How much fun? Maura : And you're doing it too. That's the incredible thing. Is even if it's in small ways, as you showed all of these donations, one pair of sock here, the one conversation there, it's changing hearts and minds. Mark : That has been the thing that has surprised us the most, and it's still hard to wrap our minds around and we have to be really careful about. But people take inspiration and there is a deep, emotional connection. I could tell you all sorts of stories of things we get to see, but I'll tell you one that my wife likes me to tell because I tear up sometimes. Mark : The National Down Syndrome Society sponsors Buddy Walks around the country, but the biggest one is in New York City. Before it starts, they rent a billboard in the city in Times Square, and they want like a video with faces on it of people with down syndrome. So, we go there and John's like a rock star in that community. People are swarming him. But a woman comes up to me and just hugs me and says, "Thank you." Mark : Okay, what's going on? And she explains that she is from Curacao, an island just off of Venezuela. And she tells us that her daughter had gotten pregnant and tested that she was going to have a child with down syndrome. She explained that on Curacao, people were ashamed of people with disabilities, that they hide them. It's something they don't want deal with, talk about it. And in fact, everybody knew that her doctor said, "This is what you're going to do. You're going to get an abortion." And to me, this is not really an abortion story. This was just, this was grant. This is what's going to happen. And the family came home and they saw a news story about John and John's Crazy Socks. Mark : And she said, it changed their entire outlook. And she introduced us to her one year old son. How awesome. We get people coming up to us all the time, thanking us and telling us how they want to do this with their child, or it gave them hope. And we have to be careful. We have nothing special. We're just out doing these things and sharing. So when John stands up in front of a crowd, be it 10 people at a SEPTA, be at 22,000 people at Madison Square Garden, and they see what he can do, it changes people's minds. And we are very fortunate to be able to do that. Maura : I think you really are living that mission of spreading happiness and of doing great things with the opportunities that you've been afforded. Mark : We've been given a lot. We had our family and I could go on about my other boys and the love of my life. We'll be married 40 years. John : It's 39 years still. Mark : It's still 39, I know. Mark : There's a reasonable chance that we'll make it to June. Reasonable chance. Maura : Fingers crossed. Mark : Well, you know. I'm still a Dylan fan. There's that line, when I see you, I don't know if I want to kiss you or kill you. A lot a marriage in that. Here's just some of what we get to do, and how fortunate. We get to see minor miracles all the time. So one of our colleagues, Thomas, his mother calls us in October of 2017 and says, "I understand you hire people like my son. I need you to give him a job." We're not hiring, we'll post when we are. She calls every day and the moms are persistent. She's not the only one who's done this. So I got on the phone with her and I said, "Well, tell me about Thomas." Mark : She says, "Well, he's early twenties. He's on the autism spectrum. And he's in a very bad way. He's very depressed. We have trouble getting him to come out of his room. He won't shower or shave. He doesn't want to deal with anybody. We can't get him to join any programs or activities. It's so bad he hasn't spoken to his father in over six months." Sounds like a great employee. Mark : So, we have an opening and bring him out. And the opening is for our sock wrangler position, that's kind of our entry level position. We pay $15 an hour to start because everybody, you got to pay a fair wage. The way you get the job, you meet with John and me. We want to make sure you understand the mission and our values. Then one of our current sock wranglers will train you and they love doing it. You've trained people. John : Yes. Mark : They love doing it. And then when you're ready, you have to pass the sock wrangler test. You got to pick six orders, 30 minutes or less, show us you can do the job. Well, Thomas comes out and after an hour of training, says, "I'm ready." And he passes that test as if he was put on this earth to be a sock wrangler. Today, on the days he works, Thomas is ready, showered and shaved at 6:30 in the morning for his father to drive one hour to work. When he gets in here, the young man who wouldn't look at anybody or talk to anybody, goes around and wishes everybody in the building a good morning. Mark : I want to be really clear here. We did nothing. We did no special training, no government funding, no special programs. All we did was give Thomas the opportunity to earn a job, and how fortunate are we? And so Holy Cross, the imprint that studying and understanding the liberal arts in the way it gets you to think and prepare, the way you imbue. Some of this comes from studying literature. You imbue different levels, different things all in the same action. That runs through what we do. I've spoken to students. Mark : So, I was an English major, I got out in 1980. There was no internet. Fax machines had not come, they've come and gone. There were no cell phones. We run an E-commerce business, I couldn't have studied that if I wanted to. But the liberal arts let you understand how to learn, how to figure things out, and so this runs through what we do today. And a lot of my classmates would be shocked to think that someone would be interviewing me for a Holy Cross alumni network. You've met those friends. John : I do. Mark : Paul, you should be talking to him. Paul Miles running a charter school and John Flynn, who's got this bicycle recycling program in Hartford. Charlie Brown or Chris Potter and Sue Mack and all these good people. Maureen, lots of good stuff. Maura : John, what's the best part for you about working with your dad? John : One thing I love working with my dad, I'm so lucky to be where he is. I'm never without my dad. He always, I've changed I can, if possible. I love my dad. Third and lastly, about my dad going to Holy Cross. I am a proud son because I am so, so happy of him being my father. Mark : What about your mom? You got to speak up for her, right? John : Yeah. I'll never forget mom. I am proud son. I am so proud of my dad, my mom accomplished. They are amazing accomplished. Mark : And you like hearing the stories of how we met, right? John : Oh yeah. Dad is so romantic. Mark : Romantic? Ricky, Kevin and I were looking for beer. And I can tease something for you. I'm not going any further than this. I've read in the alumni magazine and seen references to the fingers on the Jesus statue in the quad. I can tell you I was there and I know what happened. But that's it. No names, no details. Maura : Living mystery. That's what that is. Well, and my last question, this has just been really wonderful. What is your favorite pair of socks? Mark : What's your favorite pair? John : My favorite pair, my down syndrome superhero socks. Mark : Down syndrome superhero socks. Maura : Yes, that sounds like a good pair. Mark : Whose face is on those socks? John : Me. Mark : You. Maura : Good choice. Mark : You're a funny boy. Maura : I think we'll all have to check out that pair of socks. This has been an absolute pleasure. Is there anything else you want to share with listeners before we go? John : I want to say something. It's something that I said before... Mark : Go ahead. John : I am so proud of my dad's career. I am so proud of my dad's career and college. I am a proud son. I love my dad and what he did. It's wonderful. Mark : Well, there's a late poem from Yates where he recounts his achievements and those were notable, part of the revolution, part of the day of the Senate, winning a Nobel prize. But the refrain is what then sang Plato's ghost, what then are you going to do for me next? And we get to keep doing things, right? John : I love you dad. Mark : My boy. Maura : Thank you both so much. This has been just such a pleasure. John : I'm so proud of you Dad. Mark : Well, you let us know if there's ever something we can do. You got to put the pitch in. Where do people get stuff? John : At JohnsCrazySocks.com. Mark : There you go. Maura : Perfect. Yes. And I can say, I treated the alumni relations team to a pair of donut socks last year for Christmas, and they have been a big hit. So, I am a fan of John's Crazy Socks. Thank you for everything that you do. Mark : Well, thank you. John : I'm a big fan of my dad. Mark : You're a fan of your dad. Boy, you are being nice to me today. Maura : That's our show. I hope you enjoyed hearing about just one of the many ways that Holy Cross alumni have been inspired by the Mission to be people for and with others. A special thanks to today's guests and everyone at Holy Cross, who has contributed to making this podcast a reality. If you or someone you know, would like to be featured on this podcast, then please send us an email at alumnicareers@holycross.edu. If you like what you hear, then please leave us a review. This podcast is brought to you by the Office of Alumni Relations at the College of the Holy Cross. You can subscribe for future episodes wherever you find your podcasts. I'm your host, Maura Sweeney, and this is Mission-Driven. In the words of St. Ignatius of Loyola, now go forth and set the world on fire. Theme music composed by Scott Holmes, courtesy of freemusicarchive.org.

Moritz Seibert returns to the show today to discuss the challenges of managing large amounts of cash in a high-inflationary environment, the importance of maintaining a healthy attitude during long winning-streaks, the resurgence & resilience of the GameStop short-squeeze, Bitcoin reaching $60,000, the importance of prioritising process over outcome, the new VIX ETFs for Bitcoin & Ethereum, and whether or not Gold is a safe long-term investment. In this episode, we discuss: Smart ways to manage cash during periods of high inflation Staying humble during long winning periods The GameStop short-squeeze New volatility-based ETFs for Cryptocurrencies Why analysing the outcome instead of the process may prove costly in the long run Can we still call Gold a 'safe-haven' asset? Follow Niels on https://twitter.com/toptraderslive (Twitter), https://www.linkedin.com/in/nielskaastruplarsen (LinkedIn), https://www.youtube.com/user/toptraderslive (YouTube) or via the https://www.toptradersunplugged.com/ (TTU website). Follow Moritz on https://twitter.com/moritzseibert (Twitter). IT's TRUE

Moritz Seibert returns to the show today to discuss the challenges of managing large amounts of cash in a high-inflationary environment, the importance of maintaining a healthy attitude during long winning-streaks, the resurgence & resilience of the GameStop short-squeeze, Bitcoin reaching $60,000, the importance of prioritising process over outcome, the new VIX ETFs for Bitcoin & Ethereum, and whether or not Gold is a safe long-term investment. If you would like to leave us a voicemail to play on the show, you can do so here. Check out our Global Macro series here. Learn more about the Trend Barometer here. IT's TRUE

Mark- You Are Not Far From The Kingdom Read Mark 12:28-34 Jesus has had several prickly encounters in a row. He’s been challenged, questioned, and they’ve even tried to trap him. In this passage someone approaches him with genuine curiosity. This one teacher of the law stands out and is different. He listens to Jesus and sees that he has answered wisely. Then he has a question... but it comes from a different place. It’s an honest interaction. And after it, no one asks any more questions. Let’s think about why. What makes this teacher of the law so different that all the others previously encountered in Mark? Why does he act so differently than the other teachers of the law? This one man does what none of the others do. Much attention is given to his answer and the response of Jesus but why is he different? Why was he able to see that “Jesus had given them a good answer” when everyone else is still against Jesus. In the middle of these discussions he is the only one who has an honest exchange. What can we learn from him in that moment? The teacher of the Law asks Jesus about one of the most foundational thing in the Jewish faith. Everyone else is asking questions about current politics and modern interpretation of laws... but this man is going deeper. This man isn’t concerned by all the buzz of the day but wants to know if Jesus is deeply rooted. Deep roots hold us when there is noise all around. How does being rooted in Jesus’s answer hold us when there is noise all around? ThemanrespondstoJesuswellandsumsupwhathasbeenmostimportanttothe Jewish and Christian faith for all of time. It’s this. To love God and neighbor with heart, mind, and strength (body). Everything is summed up in that. Everything that was missing from the previous interactions is in that statement. Some of the previous questions engaged the mind but lacked the heart. Some of the teachers of the law had the right thinking but wouldn’t apply themselves (strength) to help others. Some of us are very connected with our heart, our mind, or our actions but bringing all three together can be difficult. Is it harder for you to engage your vulnerable emotions, your critical thinking, or taking right action? Where do you need the most growth in this area?

On‌ ‌today's‌ ‌episode,‌ ‌we‌ bring back ‌Scott‌ ‌Scharf‌ to talk about‌ ‌how‌ ‌to‌ ‌build‌ ‌out‌ ‌an‌ ‌accounting‌ ‌system‌ ‌using‌ ‌automation.‌ ‌ Scott is the Co-Founder of Catching Clouds, an outsourced cloud accounting service for e-commerce businesses. Topics: Why accounting is a daily, weekly, and monthly endeavor. The best accounting software. Setting clients up for accrual. Understanding the technological ecosystem. Switching from cash-basis accounting. Refining the process of cash flow projections. Why cash is king. One thing to increase optimization.  Transcription: Joe: Mark, I said many times that I actually fell asleep in accounting class in college. And unfortunately, it was Northeastern University and there were probably 200 people in the room. I was sitting near the door. So 199 people marched out with me there, my head on my desk, drooling, and then the next class came in yet somehow I'm in the position over the last eight years of really revealing a bare minimum of 5,000 profit and loss statements. And I get on my soapbox and preach about this; how important good clean financials are, not only for an entrepreneur's ability to analyze his own business and make sure they're driving towards their goals properly, but to be able to even just get in the room with highly qualified buyers. Once you get in the room, there's a ton of other things, but the P&Ls will get you in the room. And I understand you just had another conversation with our good friend Scott Scharff from Catching Clouds about building automation into accounting so you don't have to actually do this yourself day in and day out, week in and week out by building some automation into the process, either through QuickBooks or Xero. I understand Scott has preferences for both and good things and bad things to say about both. Mark: Yeah, so you're not the only one that fell asleep in accounting class. I did as well. If you looked at my grades, you'd wonder why I'd talk about accounting so much. But you know this Joe I've been working my way through some biographies of various titans of American business. I went through John D. Rockefeller. I'm now in the middle of a biography on Andrew Carnegie. And you know what one thing they both have in common? They were religious about their books. In fact, that was one of the big advantages that Carnegie brought into his business, was detailed books that they could optimize. I just find it fascinating that we can see that this is the case all the way through history what the people have been super successful. Their books are up to date. They're clean. They use them to optimize their businesses. And Scott and I talked a lot about how to do that with an Amazon business. I'm not going to lie, it was overwhelming, partly because Scott is crazy intelligent when it comes to this stuff and he has his systems all set up and he starts throwing around this system, that system, you just hook this up and you do that and then the other thing happens. And in my head, I'm thinking, how can anyone even start this? And at the end of this episode, you'll hear me kind of say that to him. I'm like Scott, this is overwhelming. How do you even get started? But the idea is simple and it is you just get started. He said something in this episode, which I didn't call out in the middle of the episode, but I think is really, really key. He said that of all the financial records that he sees people put together, he will see sometimes accountants that don't know the Amazon world trying to do books, and then he'll see some owners doing their own books. He said both are typically a mess but the ones done by the owners are less a mess than those being done by the bookkeepers because the bookkeepers don't know anything about Amazon. Joe: That is CPAs you mean, right? Not the bookkeepers. Mark: Yes. Joe: Yeah, I'll agree with them a million percent because CPAs do taxes, bookkeepers manage books, and owners try to manage books as well but never quite as good. So I think he's spot on. Guys, listen, and by guys, that's a unisex term. Pay attention to this. I know I preach on it sometimes and I'm so sorry, but it's because I'm here to help you. I'm here to protect you. We are entrepreneurs, we're advisers, we're brokers, we're mentors, and we're your friends, and we're sharing this information for you to help you build a better business and have a better exit someday. Even if that someday is 20 years from now, if you've got automation in your books like Scott is talking about here with Mark, it's going to make your life easier and help you make more money. So with that, let's move to it. But before we do, I want you all to send an email to Mark to discuss whether Carnegie is pronounced Carnegie or Carnegie. Mark: That's a really good question. I go both ways by the way. The author of this; it's an audiobook, he's saying Carnegie so I'm saying Carnegie now. Joe: Okay, Carnegie Hall is where I've been before, but I don't know either. I actually said we have a client that is a one, two, three, fourth remove descendant of Teddy Roosevelt and I pronounced it Roosevelt because I Googled that. Mark: That's wrong. Joe: I know. It was dead wrong. Mark: Carnegie, Carnegie Accounting, let's do accounting. Joe: There we go. All right. Here we go. Mark: Scott, thank you so much for coming back on the podcast. I know you are on the podcast a while ago. I think we talked about the ultimate seller's checklist about the things that you have to do, both leading up to a sale and then after the sale, closing on the business but I'm excited about today's conversation. We're going to talk a little bit about bookkeeping and the reason I'm excited about this and I know people in the cars or wherever you're listening at would be like I need to stay awake, I want to talk bookkeeping. I hop on this all the time. Bookkeeping is so important and there's so much data in your books if you keep them right. I had a conversation with somebody just the other day who is ready to sell. He's got a great business that's growing like crazy and he's going to have to put things on hold to flip over to accrual because that's what we require now. And so I want to talk to you about this because it's what you guys do over at Catching Clouds. Why don't you just kind of give a quick introduction for those that are listening to you for the first time? Scott: Okay, cool. Thank you. That was a while ago and that was a good conversation. So Catching Clouds, we provide outsourced cloud accounting services to e-commerce businesses. So our whole focus is only working with businesses that are selling a physical widget on Amazon, eBay, Shopify, Bigcommerce, TrueCommerce, House, Wayfair, Wish, Amazon Canada, CO, UK. Really most of our clients are those more complex multi-channel sellers and we're working with the larger established businesses and the one to fifty million dollar range. But the main value we offer is we provide the bookkeeping, accounting, and controller level review of their financials and we do all the work. The clients get read-only access to the financials. They threw everything over the wall to us and we leverage technology to pull everything together and then we turn that into accurate financials. And we just consider ourselves part of our client's businesses. Were just part of their team. Mark: Why? I mean, let me just start off with kind of an obvious question and one that I think if somebody is not at the million-dollar revenue or fifty million dollar revenue level, why are companies at that level hiring and spending money on a company like yours? Why is it that their financials are important enough to have that controller level service like yours? Scott: Yeah, so the main thing is that they feel out of control. And we have talked all about management accounting, not just year-end for taxes; we're like a clock, strike twice a day. And otherwise, you only know; and if anything it is extended, you only know if you're profitable in September for the whole prior year. And our whole focus is accountings at daily, weekly, monthly piece and that the owners at a minimum have to stop, take a step back and look at their financials and adjust their gut feeling so they can make great decisions on a daily, weekly, monthly basis, which are all those decisions you have to make so that your business runs better. It's more efficient, it's more profitable, and better to sell because it's managed well. But if you don't get that feedback where we have people; sellers that will go, wow, that was my best month ever and we're like, yeah, you lost a bunch of money. And they're like, wait, what? Well, you spend all the money on this and you didn't pay attention to your marketing spend and you spent through all your profit on the marketing spend. And if you don't see that, it doesn't do any good to notice that six months from now. So it's those kind of things. Or when they're looking at any of the many real-time tools, there's a big difference between real-time tools to do re-pricing and high-level reporting and you can use to make real-time decisions on re-pricing product or what to buy and all that stuff, and then double-entry accounting that accounts for everything. And then we help them adjust they're gut. Hey, this tool always shows you your sales numbers 10% too high, and then they can adjust to it and make those real-time tweaks. But the real value is they're serious about being entrepreneurs. They understand and they hate doing accounting. Most of these businesses didn't go into business to pay sales tax or do accounting and they want somebody else to do it, but they want somebody else who can talk the talk, who understands where the FBA is and FBA reimbursements and inventory and accrual and landed costs. And they don't want to have to train the accountants on just the terminology, let alone what are all the crazy things Amazon does, what's the settlement statement, and all that crazy. So that somebody that they can trust is taking care of those financials and then it's our goal to educate them on how to read the financials themselves and provide insight. Mark: Yeah, I think you talked a lot about kind of those boots on the ground sort of decisions, those granular decisions. I think financials and getting comfortable with reading your financial statements there's two levels. I'm a big picture type of guy and I actually just recently did this with Quiet Light and with another company I own where I took a look at my financials over the course of the last year and I just simply broke down the expenses as a ratio of revenue in the big categories and where are we? And with Quiet Light one thing I want to do is up our data game. We've got a lot of data that we built on over the years, but it's not organized as well as it could be. It's not point and click we could pull this data up. It requires some work. And you know what? It shows in my P&L because we historically had a large tech department that's changing. With my other company, we should be more marketing focused and it was this kind of bigger directional sort of CEO sort of thing and saying, hey, you know what, we really need to double down on the marketing. So I think the financials have that kind of dual-level play of you get the big picture, but the granular boots on the ground sort of decisions too is important if you know how to read them and understand them. You guys help with that. You help laicized some of it. Scott: We do. And one of the key values we do is each of our controllers who are CPAs we don't do federal and state income taxes, but they understand accrual accounting, gap accounting, and everything else. But each one is supporting at least 10 sellers and we never share confidential information, SKUs, or whatever but we can look across all of our clients and say, hey, wow, you're spending three times as much on your Google ad spend as we've seen with our other clients and we're not seeing that show up in your income. And they're like, oh, I just launched a new product, in four weeks I'm going to cut that back. And then our controller as from an accountability puts it on the calendar, calls the seller and say cut it back so you can start making profit. It's okay to ramp up your marketing spend and burn through your profit for whatever number of weeks to launch a product but sometime you've got to back it down. And if you forget all your profit is flowing out. And so it's that comparison and we can do that common comparison, kind of small data, big data across our client base because they're all consistent because we have no restaurants or which would be bad or nonprofits or other things. So it's that insight of being able to see multiples and your business too, you have the same benefits of the fact that I've looked at over a thousand seller's books. You guys have looked probably at least that many if you get that when you're in this niche and you focus on these areas, you really understand the nuances and you see the different scenarios and then you can provide that feedback. Mark: Absolutely, specialization especially for what you guys do. It makes a huge difference. Let's start with talking about different types of software, because Joe Valley, the co-owner of Quiet Light he often, says Excel is not accounting software. Unfortunately, we see a lot fewer Excel books these days than we used to, although they still come up every once in a while. The two dominant ones seem to be QuickBooks and Xero. I have seen other systems thrown in there from time to time. I know you've dealt with NetSuite to an extent. What's your favorite, why, or are they equally good? Scott: So Pepsi, Coke, they're great. It's so great that they… Mark: I'm a pop guy. Scott: Okay, yeah. Mark: Oh no, I'm joking. I'm not, I don't drink pop or soda. Scott: Yeah, I know. So in general it's great that they're both out there, they're both heavy competitors, Xero does much better internationally. Intuit has a much bigger footprint here; a much, much bigger footprint here in the US. But because Xero came along and has been in the cloud and about six years ago, got 200 million in VC funds Intuit went uh-oh we better fix our cloud solution. So that helped anybody that was on QuickBooks. So today they're both feature consistent. Okay, so if you pick either platform one or the other, you're going to be okay. We prefer Xero. We think Xero is a better cloud platform. It's better with multi-currency. If you're doing multi-currency, it is by far significantly better. And then our view is that Xero is a better company. Intuit is a shareholder driven marketing company and that's all they care about. They don't care about accountants. They don't care about small business. I mean their marketing says they do. They are a big, big business. And Xero even though it's much bigger, is still only a few thousand people. It started in New Zealand and is very much about supporting businesses and being engaged in everything else. And they're just really upping the feedback always. Mark: Yeah, I've got a soft spot in my heart for Xero. I put my other company on it for a while. I actually had to take it off because I didn't like their PayPal integration at the time and that other company had a good amount of PayPal sales, but I just like how they set up the system philosophically. It just felt tighter. It felt like QuickBooks you could have all these loose ends kind of floating out there and Xero, like their name kind of alludes to, wants everything zeroed out and they wanted all the balance out. And philosophically, it felt better. What about NetSuite or other third-party systems? Are there other systems that you think are good to work with? Scott: Not really. Really it's in that small; even if you're a startup, you should start on Xero and QuickBooks and you should be doing accounting from day one even if you have no idea what you're doing. And every business owner, entrepreneur, you have to wear every hat in the business so you understand it enough so when you delegate it, you can oversee it. So you can start at that level and the only reason we would expect anybody that would outgrow Xero or QuickBooks online or us at that 50 million or whatever stage is when their supply chain gets more complicated. So we can talk about cloud inventory tools but the idea is need and I'm a big believer in best of breed; so Xero for cloud accounting, Gusto for payroll, A2X for Amazon and Shopify income, Hubdoc for document management, Bill.com and others and Veem for international wire. So we've got these set of tools but then the cloud inventory tool really has to be specific to the client. Almost all of them suck in different ways but there are some that are getting to be pretty good that you can use. But if you outgrow those or you can't find a tool that you need that will meet your supply chain and the number of 3PLs you have and your manufacturing process, then you might have to grow up to NetSuite. And if you're a larger business and you want to be able to; you're buying a lot of international stuff and you have customs invoices that show up six months after you've done a sale and you want to back-calculate all of your COGS into the past, the only way to do that is on NetSuite. Because we do monthly snapshot accounting so if there's an adjustment six months later we posted in that month, we don't go unravel everything and put it all back. So if you need that sophistication or you need a more advanced one but you're going to pay for it price wise and you're actually going to pay a penalty that in my opinion, not great integrations to pull data from these sites and it makes it difficult to impossible to at least reconcile Amazon working with the different NetSuite integrations. Mark: Well, let's talk a little bit about that because I want to talk about some of the automation of this because I think the biggest challenge with a lot of the software is figuring out how to pull in the data in an efficient manner and we especially run into this problem with accrual accounting. This is why so many bookkeepers mistakenly or misguidedly tell their clients you should just do cash basis, because for them it's a lot easier, right? You see the purchase order, you enter it in, and going through to an accrual, you need to check your beginning inventory levels at the beginning of the month and ending inventory levels to figure that out. And it's just more work than they want to do, frankly. How do you set your clients up? I want to talk two questions, one would be how do you set your clients up for forward-looking moving forward we're going to be on accrual and keeping that automation in place. And then secondly, what are easy ways if there is an easy way to go back and get those historical COGS on a monthly basis for an Amazon business? Scott: Yeah, the two sides income. I mean, the first piece would be the automation we look at is first making sure you're posting your income properly. If you sell a hundred widgets that you get paid for 100 widgets and so we use a tool called A2X accounting to post the Amazon income. We've been using it for six-plus years. If posted a penny, it breaks up a hundred plus Amazon fees and follows the accrual method by posting a summary invoice. Because the main thing we recommend for everybody, unless you're doing B2B or direct manual sales on turns, every other sale can be summarized on a daily or weekly or monthly invoice and A2X will post Amazon and Shopify income. For Shopify, it will post Shopify payments every day that matches the payout every day. So the first thing you want to do is be able to get all the income into the system properly and then A2X breaks out based on our design. We're their close partners. We're using it for a year and a half but we were in Alpha for about six months, but they'll post and our standard is to post all the income by payment processor. So on Shopify, if you're using Shopify Payments and Amazon Pay and PayPal and Globally and Sasol and Afterpay or whoever else. It'll break out each of those posted invoice for each of those merchant providers and then you can reconcile it. So that's how you get your income and it's going to post it in the right period as to when the sale happened, not when you got paid. The difference between accrual, you track everything. And in our opinion and accrual, not only do you need it for valuation, not only do you need accrual to make sure you have a balance sheet so you can see your inventory and your assets versus liabilities but it's also easier to look at that if you have these huge expenses that you pay for or you're buying a ton of inventory and you pay $100,000 this month in shipping charges you want to spread that out and as you sell the product, pull that out not pull it together. Now for COGS and inventory, if you're looking for your values, the best tool is just you can't do it on spreadsheets. Just like you can't run accounting on spreadsheets, you really need a cloud inventory tool. You need the automation so you have a structured process to purchase products through a purchase order so you know what you're paying for. I mean you're constantly updating your costs, you're receiving that inventory. So whether it's fraud or they forgot to put a case; you bought 20 cases and they only put 19 in and they were just going super fast, which is usually the problem not so much someone's trying to rip you off. And if you can't catch that in controller control, you just have money that's just leaking because inventory is just cash in a different form that you're trying to turn into more cash. And so you really need those tools that are pulling in every order because all of that detailed data doesn't have to live in the accounting and it shouldn't. Xero and Quickbooks online are not set up to pull in every Shopify transaction, every Amazon transaction. They're not. The idea is you want that summary information and then you want to make sure that your cost of goods sold aligns with the income. So you have to have a consistent process. For Amazon, we upload costs into A2X and it'll post cost of goods sold so the same orders that were in your income even if the settlement statement splits over the end of the month all get posted in the appropriate month, and then you can do the same thing for Shopify. And then for our clients that are on cloud inventory, you can run as long as the tools provide in our focus, which would be cost of goods sold per channel so you can see your profitability per channel on the financials is really the piece you want to make sure that you can get that number, be able to validate it, and everyone's like, oh, that's this big accounting thing. I'm like no your whole world is operations; its purchasing product and shipping product out. Everybody will know we did 422 orders last month and they'll go, okay, and there's all the data for it and that needs to get applied to the accounting and then you need somebody who can do that properly. Mark: You said something just a little bit ago here which I find; it tends to be a mindset shift among a lot of sellers and that is your inventory is just cash in a different form that you hope to turn into more cash. And this is where the switch from cash to accrual changes and people that are on cash basis tend not to see this, right? They see their business bleeding cash and they see a cash in, cash out and when they spend all the money on inventory, they see that as losing value but it's not. You're just transitioning one asset cash into another asset inventory. And I think this is, again, why this topic of discussing books excites me because it causes you to think of your business in a different way; in completely different ways, as a blend of assets. Most of what you said, I already know our listeners are going to listen to this and be like that is way too complex for me to go through and do. Can I connect these things directly? Can I just plug and go or do I need to hire somebody to do this? Can I train somebody to do this? I mean, how do you actually go about implementing this? Scott: So there isn't one tool that will connect all the different pieces. Now Xero and QuickBooks online and A2X for an Amazon-only business gets you a long way along the method because if you're all FBA A2X will get you most of the way there. But for anything else, there's no secret process. So someone's like, oh, I'll just use what Logility and use their reports, they connect everything. I just did a deep dive review of them again and we couldn't figure out how they were posting the data and then we couldn't rec because we were evaluating we were trying to implement it. So you have to have a consistent set of processes to know you're doing your accounting on a daily, weekly, monthly basis. We do cost of goods sold monthly. So it's an hour or two per client per month because we have a standardized process that we follow through that shakes out vendor deposits and the other details. So the first process is what are you doing, what are you trying to accomplish, and just break that down, whether you're doing it yourself. Look at resources. We have some online courses. We have a bunch of YouTube videos to make sure we educate people. But then we still have a manual process for Walmart and eBay and Etsy and House and Wayfair and all these other channels where we download the data monthly, pivot it to post the income, and reconcile it. But we use the exact same data to apply a cost to post COGS. So it's a matter of that. Now, there are consultants out there that will help you set up the cloud inventory tool which we don't do, or you can work with the vendors to implement it and then you either have to manage it yourself or hire someone like Catching Clouds or another e-commerce accountant that understands the technology, the e-commerce space, and accounting. Mark: I think this is why it's so tough for so many people. Because as an entrepreneur, I have an idea, I've invented a product or I've identified a niche I want to go after and I'm good at that but now you're asking me to understand my financial reports. And then on top of that, you're asking me not to just understand my financial reports, but to understand the technological ecosystem around these financial reports to make them all work without hiring somebody who's going to cost me $10,000, $20,000, $30,000 a month just to be able to do this and suck up any profits that I do if I do have. That's why it is so difficult for people. The whole ecosystem is complex and difficult to understand. But I do know once you do get it set up, it is just a few hours a month. So you put in the effort of what am I selling, what are my processes, and then how can I get this into the system the right way? Once you get that setup, then maintaining it isn't as difficult as the initial setup. Is that fair? Scott: That is correct. Once you get those processes in place and you've got a defined process, you're just not assuming you can set automation and set and forget it, you're there. And then I would put the same due diligence that everybody puts into outsourcing; I mean, e-commerce sellers, the big things they outsource, except for the few that decide to buy a warehouse and want to invest in property and that's important to them being an entrepreneur and that's part of the journey. But that's, in my opinion, a very small percentage of the sellers, everybody else is working with 3PL warehouses or FDA or Walmart fulfillment service, Shopify fulfillment network. The same due diligence that anybody puts into that and understanding their supply chain or their vendors or who they're purchasing from, you just need to decide the financials are a priority for that order and then go through the same due diligence where you know nothing as an entrepreneur about whatever and then you start. But it is absolutely possible to put these systems in place or outsource the work like most sellers outsource and one thing I recommend every seller do is outsource sales tax. Don't try to use a tool like TaxJar or Taxify or Avalara. Just hire assault consultant or have someone like Catching Clouds, which we do it only with our accounting services because it's so complex. We're filing over 5,000 returns a year and even if you do everything right, the states generate notices and you have to deal with all of that. And the same thing applies to outsourcing your 3PL and your fulfillment. And then I would recommend outsourcing your accounting and finance because unless you're 30, 40, 50 million, it's really expensive to hire a bunch of accountants and manage them and train them and make sure they stay on top of the technology and all that other stuff. Mark: You know this is the sort of field that if you fall behind, is that much more work to get caught up. And I know we've referred some business over to you in the past that need some cleanup. We refer them to other partners as well that need clean up. What does that process look like? I'm saying, okay, I've fallen behind, I've been doing cash basis accounting for the past forever and now I want to go back three years to do this right and get moving forward. What sort of workload are you typically looking at to be able to get that caught up? Scott: Yeah. So in general, unless they were using A2X and it's very, very rare or they were doing things right or in a lot of cases it's interesting if the owners are involved, they don't know all the things in accounting and what they do they're very particular about so they do less wrong. Invariably when we see other accountants that don't work with any other e-commerce businesses, they're just making it up as they go and they make it worse and worse. 80%, 90% of the time we have to start over with a brand new Xero file even if somebody is on Xero because there's just tens of thousands of bad records in there and you can't get to it. So we set up a new Xero file. You import all the bank and credit card transactions for that time period. You categorize them and you reconcile all those accounts. Then you post all the income and then you go through accounts payable through all that time. And of course, once you just identify the data and even if they have another system, we can rip all that out, put it back in, but then make sure that no, no, this invoice was paid this month, but it was from the prior month to make sure that the bills are in the right period to get all that going. And you just do those accrual things and then we can post the income per month historically and then do the cost of goods sold per month. And so if it's 12 months or; and so we have to go back to either 1120 or 1119 to the prior tax return or back to the beginning of the business and run that and that's what it's going to take. We have looked at; we are Xero expert experts. My co-founder, partner, and wife Patti teach Xero experts how to do cool expert things in Xero and we have all these tricks to clean up the accounting. And I've got a whole list of things that I want Xero to do to allow us to make it so we can just take what's already in Xero and clean it up because the bank feeds and the fundamentals for Xero are great it's just when you connect all these apps and push in data, you end up with whatever. So it's really a process for us. It's about four to six weeks for one to maybe a little bit longer but it takes time. It takes time to set up the systems. It takes time to pull in the data. It takes time to get through it all and redo it and then validate things with the client go away. Hey, I bought a forklift. That was in inventory. I don't sell forklifts. You go, oh okay that doesn't go in inventory. We'll move it over to a fixed asset and off you go to the races. But it just takes a fair amount of work to understand to pull in all the data and do it. But for the most part, you just start with a new accounting file, get all your data; bank, credit card, bills, income, and COGS, and repost it following the accrual method. Mark: Yeah, I get that. I've been there. I've had to do that before. And you're right, going back when you have thousands of transactions can be a nightmare. I want to know where's the balance between good enough and probably not good enough and too much. And here's what I want to bring up to you, there's a well-known accounting company, which I will not name names, that has a cloud-based service that I know does cash basis and then at the end of the year does an inventory adjustment so basically giving you a full yearly accrual basis. And I've seen these financials before where all of a sudden December looks like the worst month ever because they're doing this massive adjustment at the end of the year. So that's one extreme and for a lot of owners, they'll say, well, it's good enough, I'm getting some high-level understanding of my sales and maybe my some cost, but not COGS. That's one and I would say that's not good enough but that is the attitude. On the other end, you and I have talked before about entering sales down to the individual sale, and being that's ridiculous you don't need to go to that level of detail. What is the balancing point from a controller standpoint being able to look at financials and be able to understand these books and be able to get both those kind of big picture decisions made, but also those granular decisions of look you're over overspending here. This is not a profitable product line or you need to stop ramping up your expenses in this area. What's that balancing point for you guys? Scott: So, yeah, there are a lot of people that really look at their financials and that other method is good enough for a tax return. It's not good enough to make those decisions to understand what's in your business. And it's just making sure that you're doing all of the accounting, not everything, right which means every bank. And the most common things we see when we review books is that they're not reconciling every bank account and credit card every month. Because if you think your system; you downloaded whatever data and you think you have $50,000 in the bank and the bank thinks you have 10, they win unless you've caught the error and fixed it. And it's typically just a data error so if you're not looking at the end of the month settlement for every bank account, credit card, and merchant account to say, hey, this is where we have clients were like, you had $30,000 disappear. Oh, it's a reserve. PayPal's got a reserve or Strike has a reserve which has been happening a lot recently. So we want to have those triggers but you want to make sure you're doing those reconciliations so that you know about all of those expenses and all the things flowing through your credit cards. The other thing is make sure every account's on there. If you're using a personal credit card from the owner because you don't have an Amex, Plum, or whatever in your business, and as long as it's dedicated to that business, it should be on the books. You should be tracking those expenses and then it's just do; and then you pay it off and it's just payments to the owner and it all works out from an accounting perspective. And then, like we said, you just want to make sure you're posting the income in a summary fashion and you could just decide to do it all monthly and know that I'm going to take four hours a month, I'm going to post the income and figure out COGS and get that done and it's good enough and if there's any adjustments. And then the last thing is you have to make sure that the balance sheet balances, which means all the numbers and the liabilities and assets. If the balance sheet doesn't balance you can't trust the P&L. You can't trust your statement of cash flows. And so it's kind of a do those core things and then go make sure you have somebody; an external party that's reviewing what you're doing at least monthly or quarterly to say, yeah, this is right or no, you have this write off or hey, you have this big hundred thousand dollar adjustment leach let's go see if we can figure out what's going on in there. Mark: It sounds like there's two steps here, right? There's the validation of your financials, but there's also an understanding or review of those financials. And maybe they're kind of linked together in the same thing where when things don't add up right that's a sign that you need to be digging deeper into something. Maybe you have an inventory leakage or you're leaking money because not all the inventory has been shipped or accounted for. And you would recommend that on a monthly basis then? Scott: Yeah, at a minimum, it's hard to do. We try to do as much of the accounting daily as possible. We believe that to stay on top of a dynamic e-commerce business, you have to be pulling in the bank feeds from yesterday today. You need to be looking at accounts payable and bills you know oh, I did a $30,000 prepayment on a $100,000 purchase order and I owe $70,000 in six weeks when it ships. Like if you're not paying attention to those things on a daily basis, then the owners are constantly pulling money out when they have to pay bills out of the business; their personal bills, and then the next week loaning the same amount of money or more back into the business and you just go do this swing if you're not staying on top of it. But if you're smaller and you're ramping up and everything else, at least do it monthly and then start doing a little bit more weekly. There is more automation that's coming over time around bank feeds and AI and other stuff, but it's going to take a while to get here. Mark: You know, one of the things that I think can really help once they start getting the stuff together is the ability to forecast. And I'm not talking about even on the sales side, that's kind of the second level of forecasting. But on the expense side, because you just brought it up right now, right? You have a bill of $70,000 that's going to come due. Have you planned for that or is that something that's gotten lost with all the craziness of the rest of your business? Or you want to launch a new product line what do your expenses look like over the next three, four, or five months? You can't do that if you aren't living to some extent in your financials on a fairly regular basis where you understand what's coming up. Do you guys get into much of forecasting even on the expense side? Scott: Not long term forecasting, but cash is king and cash flow projections. So we're just refining our process. So we have some clients that we'll do it for a daily for a short time when they've got lots going on at a specific time frame. And then we'll just provide kind of a weekly cash flow that's always that four to six-week view; here's where payroll comes out, here's your expected income, here's what the Amazon payments come in if you're not using Payability or something that lets you cash out every day so you can manage cash flow but it's really all about that. And we just haven't chosen to extend it for a longer period of time because our focus is daily, weekly, monthly but the idea is that the owner should take a step back and look and say, oh, because what we're trying to always get to is to say, here's how much free cash flow you have to buy inventory, pay for marketing, invest in the business, new products, new design, new people, whatever and then hopefully there's something left over for the owner as well. Unless you're in that I'm continually investing that's great but you need to know how much that is so you're not constantly doing. And that cash flow and that availability can include you have a $100,000 Amex plan card. That's just capital to you because most e-commerce sellers love racking up points and that's not debt. That's not a long term loan. They're going to pay that Amex bill probably every two or three times a week to keep the balance down so they can keep buying product to keep up with demand. But you need to know where those numbers are, where are those thresholds? When you're starting to push out against them if you're growing and your sales are growing, which is what's been happening for a ton of sellers in this big new world that we're in where everyone's home and everyone's buying online and that's all ramped up you need to know when you're hitting those limits and that you either need to invest more money as the owner because you're going to turn that cash into more profit; into more cash. Or you're looking at different lines of credit whether it's with a bank, which is usually the most painful way. But there are other alternative ways that aren't quite online loan shark and you find the balance between those to post that in. But it's really cash is king. If you're not looking at it; there's so many businesses that are profitable on paper, profitable on their P&L that go out of business because they didn't manage their cash. Mark: They didn't manage their cash or the cost. And you said costs are king what do you mean by that? Scott: Cash is king. Mark: Cash is king. Scott: Well, actually, costs are pretty important. If you don't have a good handle on your costs, you're going to run into the situation where you don't know what the value of your inventory is. And the most important thing is you don't know how to price your product. So if you have a product that you buy in the US and you buy in huge volumes and that your suppliers don't charge you shipping, you can use your buy cost. It's pretty straightforward. But if you're buying a product, either whether it's being manufactured or shipped internationally and it costs you a dollar per unit, but it costs you nine dollars to get it live in Amazon FDA or your warehouse, you need to know your cost is $10 is your landed cost after shipping and customs and insurance and even inbound into Amazon. So you know your all up cost to know what that is. And if you don't have a good handle on one of the first things we do with just about every client is revalidate their costs, identify the ones that are wrong, and then look at what they're selling it for. And they think they're averaging some margin and it's usually a lot less because they're not aware of their full cost for their product. And that's understanding that landed cost and landed cost is a key accrual process where you pay for everything and then you take that shipping and it gets added to inventory and then as you sell, it comes out and it's value. And that can make a huge difference on client's business. We have clients that are close and they're using landed cost, but they're not doing that last accounting bit monthly to do a journal entry to take hey, I spent as much on cost, customs, tariffs, whatever, and moving that all into the inventory account. And then you go, oh, I really have spent two million dollars on inventory and shipping and everything else, and I'm pulling out 200,000 a month in cost of goods sold. I have not just the number of quantity of units, but you can see the money flowing in and out of your business. Mark: Why don't we have you on monthly to the podcast? I don't know I feel like we just scratched like the first quarter of what you put together as far as the list of things we can talk about. But we are up against the half an hour, so I am going to cut it here and ask the best way to reach you; obviously CatchingClouds.net. You guys have courses available. Is that on Catching Clouds? Scott: Yeah. So if you go to our site, we have a contact form if you want to talk to me, especially if you're a larger business, I'm happy to talk or email and interact with anybody. I just enjoy interacting with sellers. Then we have our YouTube channel, which we have over a hundred YouTube videos, and we'll start adding more next month on basic topics. Now it's all my wife mostly who can explain things better and doesn't talk as fast as I do, but we're really there. And we have so much more that we want to push out onto those YouTube videos because we're happy to share the basics; how to read financials, and all these different things. We just want to help those sellers that are smaller than a million and or do it yourself. And then we also have a Facebook group that supports that for sellers and accountants for providing answers and questions for people that take our courses and just have general questions and then we have our outsourced service. So if you go to our contact form, reach out and I'm happy to interact and have a conversation. And most of my focus is really where your biggest challenge is and if I can help them figure out the top two or three cloud inventory tools that would be there or a developer that would do automation and build zappy integration to improve their efficiency or point them in the right direction, I'm happy to do that. And then our big services, we'll just take it all over, clean it all up, and then run it. Mark: Yeah, I think for those that are listening here, especially those that may not be in that one to fifty million dollar revenue range, the one thing I can say just from my experience is the companies that get there have books in order for the most part, much more so than smaller companies. And part of the reason that they've gotten there is because they have taken the time to put together good books. And it does give you insights into the business that you can't get otherwise. That doesn't mean that we haven't seen companies in the one to 50 million dollar range that don't have their books together. But all the more reason for those companies to make sure you're are doing this because if you aren't, I can almost guarantee you're bleeding cash somewhere and you're lacking optimization somewhere. I think the biggest thing; let's end with this cut, people are overwhelmed by this, they may be not sure how to start. What's one thing that they can do today? If they think that they're under optimized with their books right now, what's one thing that you would suggest that they do today? Scott: I mean, it really usually just comes down to education. So whether it's our YouTube videos or books like Financial Intelligence for Entrepreneurs is a good book. It's looking at that and then our big thing is process. So if you're not documenting your process for receiving inventory and dealing with returns, just take a whiteboard and put it on your wall and start building those things. So it's called the combination of education and then it's just organization so you can keep track of your to-do list and you know, oh, I've got to block out this much time every day or week or month for accounting. It's more about that discipline and then just get an accountability coach. There are other things you can do, like profit first for a different way to look at profit. Or you can hire someone for EOS entrepreneurial operating system and the traction books. So there are actual structured processes that you can join in where it's not just you have to determine it ahead of time, but it's kind of education. Have coach as partners, whether that's Quiet Light who gives out I know great advice. Even when they're talking to people two or three years from when they're selling and they may never sell to say, no, these are the smart things to do because everything they're telling you to do smart to sell your business is the same guidance to run your business profitably. And then get those external resources, find your peers out there and talk to them and share best practices, and just continue to evolve as an entrepreneur. Mark: Scott, it's really good to see you again. Thanks so much for coming on. Scott: You're welcome. Thank you. Resources:  Catching Clouds Catching Clouds Contact Form Catching Clouds YouTube Channel Catching Clouds Facebook Page Quiet Light Podcast@quietlightbrokerage.com

Whether it's finding the cure for leukemia or saving the riches of coral reefs, there is a person behind every new discovery. PassioInventa provides a space where scientists can discuss their research in an accessible way with non-scientists, dispel some of the myths surrounding what science is and is not, and humanize the people behind the lab coats. As PhD students, Jay Baer, Daniel Chapman, and Blaide Woodburn founded PassioInventa to help scientists share their work through articles, videos, interviews, and more. In this episode, Jay, Daniel, and Blaide discuss with Mark: Why they are interested in science communication and science policy What those categories and terms mean to them Where the gaps are within current science communication and science policy training, and how their newly founded organization, PassionInventa, aims to address them Their feelings about scientists getting involved in politics What kind of reactions they have received from colleagues, mentors, PIs, about PassionInventa What kinds of science communication and science policy tools they would you like to see available and how they would you like to be able to use them - i.e., in-person role-playing workshops, presentations, online courses, conferences Where they see the greatest demand for learning science communication skills and where is there still resistance to learning these skills How they plan to apply the skills they developed as PhDs What advice they have for colleagues listening to this episode who want to get more involved in science policy

Who was Mark? Why was his Gospel written? When was it written? Why do we need it? Emptytombradio@gmail.com Music from https://filmmusic.io "Basic Implosion" by ‪Kevin MacLeod‬ (https://incompetech.com) License: CC BY (http://creativecommons.org/licenses/by/4.0/)

Since 2013 Quiet Light's average transaction size has grown up to ten times. Back in those days, there were no private equity firms poking around the e-commerce space for these listings. Today it is a completely different story and more often than not we're seeing private equity firms come into the buyer spectrum. In fact, once a business reaches a certain size, it is more likely than not that a seller's potential buyer is going to be in the private equity space of the buyer pool. Today we are going to dissect the PE process a bit further. We'll delve into the process, the advantages and disadvantages, and give a general education on the subject for those who are curious about it how it works. Today's guest, Brian Rassel, is Vice President of Private Equity with Huron Capital. He's responsible for sourcing, evaluating, and analyzing investments made by his firm. Brian delves into ways he finds that e-commerce has entered into almost sector of investment that his group is involved in these days. Prior to joining Huron Capital, Brian was an Associate at Prophet, a global growth strategy consulting firm. Prior to Prophet, Brian was a consultant with New England Consulting Group where he led project management in their private equity practice for buy-side clients. Brian is sharing his wealth of private equity experience and how PE is entering more and more into the e-commerce space. Episode Highlights: How Brian defines private equity. How PE funds traditionally start up and get solidified. The difference between small, medium and large equity funds. The holding periods that private equity funds usually need to secure capital. Is PE all about acquiring to grow and sell or is there a category for buy and hold? Do evergreen funds exist? The difference between platform and bolt-on investments. Three things funds do to generate deal flow and types of business spaces they favor. The behind-the-scenes processes of putting a deal together. How many people are involved in the deal on the PE side. The backend investors committee and if that hinders the deal for the seller. Why time commitment is actually a good thing. How many deals Brian's PE firm evaluates per year. The defined process that gets them through the numbers. The growth potential for e-commerce – multiple appreciations and the role of private equity. Brian frames an ideal acquisition structure based on the general private equity model. Why the buyer/seller fit really matters. How private equity can work for sellers who want to get their business to the next stage. Transcription: Joe: Back in 2013 Mark I closed 23 transactions. It was a busy year for me. Do you have any idea what the average transaction size was? Mark: I … what do I guess? Well, it's you so I'm going to say like seven million dollars. Joe: I love putting you on the spot because you do it to me all the time. The average transaction size— Mark: You got to be like 250. Joe: It was 125. Mark: Holy cow. Joe: 125; very small. Mark: Okay. Joe: And at that time there were no Private Equity Firms poking around the e-commerce space for these smaller listings. Today it's a completely different story and my average transaction size was 10 times that last year. And a lot of buyers or a lot of sellers, the question I get asked all the time are who are your buyers? And it's a mix of everyone but more often than not now we're seeing Private Equity Firms come into this space. And I understand you had an expert in that area on the podcast. Mark: Yeah private equity is a topic that's coming up more and more frequently with sellers especially on the higher end of that revenue spectrum that we really work with. And it makes sense because once you get to a certain size of business your buyer is more likely than not going to be at least somewhat in the private equity place … area of the buyer pool. In addition, we've talked before … I had Ryan Tansom on and we talked about selling to a strategic buyer versus a marketplace buyer. And obviously, people always look at this especially at the higher ends and say I kind of want to have a strategic buyer. Well, one thing to keep in mind here is that this is kind of a spectrum right? It's not binary; you're either strategic or marketplace. But when you get into that private equity world, private equity is almost always going to be something of a strategic play. So I thought … look this private equity world is something that people keep asking about let's actually start to dissect it a little bit. So Brian and I talked and we spent probably about half of this interview just kind of going over what is private equity. How does that work? What is the definition of this? What are the sizes of it? And really just trying to ask some of those silly questions that maybe you kind of wonder about but don't want to ask because you don't want to sound like you don't know what you're talking about. And so we went over a bunch of those questions but then we also went over what does the process looked like. What does it look like to sell to a private equity firm? What are the drawbacks to it and what are the benefits of it as well? And really it's kind of a general education podcast but I think also … and maybe more importantly for those of you out there who are thinking about selling down the road and you're looking and trying to peg the different values that you want to get from an exit and maybe you think well I want a 10 million dollar exit or a 15 million dollar exit, if you get to that point what's it going to look like to sell to a private equity and what do you need to do to really make yourself appealing for a Private Equity Firm? And how does the deal change when you're signed to private equity as well. So we really covered a lot of ground in about 30 minutes. Brian is super knowledgeable obviously. He works in this space. And I really appreciated him coming on the podcast because … again I just downloaded a ton of information. Joe: Well let's get right to it. Mark: All right Brian thanks for joining me on the podcast. I really appreciate you coming on. Brian: Yeah I know. It's great to be here. Thanks for hosting. Mark: All right so I don't expect people to listen … my guests to have listened to the podcast in advance and I know … I don't know if Joe's been doing this, he records like 9 out of 10 episodes and I don't know if he's continued on the tradition but we like to have our guests introduce themselves mainly because you know your story better than I know your story and I figure it's a little bit easier. So why don't you give just kind of a quick 30 second to one minute rundown on who you are? Brian: Yeah I'm Brian Rassel. I'm a vice president with Huron Capital Partners which is a middle market private equity firm based at Detroit Michigan. The firm is 20 years old and has invested in … we're typically enthralled buyout investors where we'll buy a majority of a business and have done that through five successive fawns starting back in 1999. And the industries that we play in are business services, consumer, and specialty manufacturing. You know it'd kind of be interesting how I got to know you Mark for those listening is that believe it or not all of those basins are being affected by e-commerce or different kind of SaaS business models that are internet based. And I'm taking it upon myself to maybe be the person of the firm who is trying to understand those influences on all of our companies and make sure that we're in a position to incorporate those changes that are going on out and new coming at large number and being done by a lot of people who probably listen to your podcast and make sure that we're bringing more of the [inaudible 00:05:51.4] in the businesses we own so that they can be successful today and be well into the 21st century. Mark: All right, well I got a lot of questions for you because this world of private equity is encroaching or coming into the internet business acquisition world more and more. And whether it's because at Quiet Light our deal value is moving up or private equity is starting to look at different price ranges and maybe this convergence of these worlds and also private equity looking more in the online space is just becoming an increasing topic that we're seeing more and more of. We're also seeing individuals that have started up on their own raising funds to do large acquisitions or to string acquisitions together. Brian: Yeah. Mark: So what I'd like to do and I already kind of told you this in our conversation before I hit record, I'd like to go over some of the basics here of the private equity world and how it looks in the Internet space as well. And then know a little bit more about your fund and some of the things that you guys are doing over there and all that. So a quick shout out to Chris from Centurica and Rhodium I know that we've talked about him so much that it's almost as if he's a sponsor. He's not. But this is again how we got introduced. You spoke at the Rhodium and then you and I had a chance to speak after that and a good conversation. So thanks Chris for the introduction again. So let's start out really really basic here. How do you define private equity? Brian: Private equity is capital … private capital being put to work in private businesses. And so I like to name [inaudible 00:07:22.6] for folks who really don't know much about it a little quick stat just kind of on the US economy. There are half as many publicly listed companies as there were in 1996 or 1994 something like that. So even if the value of the public markets is larger the amount of places you can park that capital in the public markets is small in the total number of listed names. Private equity is a big part of either big institutionally managed money. Whether that's from insurance companies, [inaudible 00:07:52.4], pension funds, universities, those kinds of things. This is their way to go participate in the forces of economy that are still private companies that they can't get access to otherwise unless folks like me help them get access to it. It also includes folks that can kind of go into different flavors of private equity but depending on the size from the bing capitals of the world down to very very small funds that are more entrepreneurial. There's sort of every flavor under design in certain family offices and other things like that. That would be private equity, pooled private capital going into private businesses. Mark: Well how did these funds start-up traditionally? And I imagine that there's a lot of ways that they can start up. You've listed a number of sources of money and I think sometimes we forget just how much money there is in some of these places. So yeah [crosstalk 00:08:46.6]. Brian: For sure I mean there's just [crosstalk 00:08:49.4] I'm going to get this off, I'll be wrong by a hundred billion dollars. But I think something like 600 billion dollars flowed into private equity firms last year. So these … and the source of a fund or the way a fund works is that a fund manager like the folks I work for here where I'm a part of, they go out and they make their pitch about how talented their professionals are and what their track record is and the fact that they can get access to great deal flow and great opportunities, places to put private capital where it will go earn a reasonable return. And they raise this money from these other institutional or independent investors. It could be high in net worth individuals or anybody like that but … so they get started that way. They'll hold this farm estate back to the 1960s and there are new ones being created all the time. And frankly, as hedge funds have declined I believe in a large way in popularity just because of the efficiency of public markets there's been more and more money directed towards these private pools of capital and the private equity market. And when I say private equity I mean both kind of traditional buy-out funds for more mature businesses that have healthy positive cash flows on the one hand and on the other hand I mean venture capital is the son segment of private equity. And that might be for really really high growth businesses like the next dewberry of the world or whatever it might be. Mark: Right, absolutely. Okay, that makes a lot of sense. And as far as the breakdown as to sizes what would you consider to be a small private equity firm and what are we talking about in terms of their capitalization rates when they start up? What would be the difference between the small, medium, large type of firms? We can get an idea for how much money we're actually dealing with? Brian: So I would say just kind of from my understanding again all this caviada being dead this is sort of Brian Rassell's take on private equity and my interpretation and may not really be the opinions of United Capital, I can only speak for myself as an individual but they have a dedicated fund. And when I say dedicated fund these are groups of people that other folks, other investors have made a promise and a pledge that is legally binding and written their name at the bottom that that dedicated fund, the small one might be 50 million dollars. That'd be very small. Folks who are trying to invest less than that, generally speaking, have something more akin to a pledge fund. They have a number of people that they can pass the hat with to raise money in a deal by deal basis versus having committed capital to go invest in five, six, 10, 12 companies in that particular fawn. So just kind of … back at the envelope type map that you can think of is every firm should have plus or minus roughly 10 investments that have enough diversification in it. So a 50 million dollar fund is looking to put five million dollars to work in the 10 different companies. And that would be the equity capital going to those companies. There's oftentimes a mix of equity and debt coming into those companies and we could talk about that later. And then a midsize fund might be three or four hundred million up and pawn up to the 2KR's of the world or Apollo or the very big managers who are doing 15 billion dollar funds and so all different world. Mark: Very. Brian: They're taking hotels private or something like that. Mark: I was going to say they're buying something completely different than your Amazon business. Brian: Yeah that's right. It's a whole different world. Mark: All right you talked about you have successive funds. In my understanding again is that we go through these rounds of investment that coming up. We had Andy Jones from PrivateEquityInfo.com on and he talked a lot about the holding periods that private equity looks for. Can you just again quickly touch on that? We're kind of doing private equity 101 here. Brian: Yeah. I didn't hear Andy's remarks but just as it relates to a whole period I would think of it just to be linear about it that a private equity firm once our capital is raised [inaudible 00:13:01.9] the time that it takes to raise that money they committed capital or even the past they had capital they're going to take that money and let's just use this fictional 50 million dollar fund. And they'll take something like four years to deploy the first 80% of it. And the goal would be you take 20% of that money and get it into a new platform company. Companies they had no money in before. In the first year or the next year next 20%, next year next 20%, next year next 20% thus 80%. The point at that point you can't do necessarily new investments you're reserving that last 20% for either a company that's struggling that you need to give more money to to keep it going or to do an add on investment to buy something else and add it on to something that's in the portfolio. That might take four or five years to really deploy the majority of it and then another four to five … you know an investment from year one that you only … you're exiting that investment three to seven years later and let's just use five as kind of a round middle of the road number there. So an investment from year one is maybe gone in year six so it's being harvested. It could be sooner, it could be later. And the investment that was your last platform investment from year four might be heading out the door in year eight or nine. So fund life is something like eight to ten years. It can be longer. And a traditional as you kind of draw it up on the whiteboard like I have behind me here is sort of a five year hold. Now there's … I've seen many that are much much shorter and many that are much much longer but those are the fat parts of the [inaudible 00:14:36.2] if you want. Mark: Sure. So is private equity … is the goal of all private equity companies to grow and sell? So acquire, grow, sell, or are there other strategies? Buy it and hold for long periods of time? Brian: There are certainly evergreen funds out there. They're much more … when I say evergreen they have the ability to hold and recycle the capital. They may be designed to have heard of a number that has committed capital from particularly family offices that never want to do the tax consequences of becoming liquid in an investment and actually realizing the gains so they're structured to reinvest the money that they make. Or if they sell something to quickly find someone else new for it to go into. Now that would be a more unique situation. And then certainly family offices there's a number out there that looks for longer hold periods and there are certain funds that are designed for a longer hold period. Mark: All right so this is going to be again another basic question but I want to make sure our terms are all well-defined here. We hear these terms of platform versus bolt on or add on investments. Just real quick the difference between a platform investment versus a bolt on. Brian: Yeah I'll just keep it simple. I'll say anything that is a brand new business, new industry for that firm to go into. They don't currently own something in that space. Whether that's a tiny initial acquisition or a big one that would be the platform investment. So let's just say with a … I don't know Internet broker pencils, I'm just making this up, all right? And they don't have any other investments in the internet broker pencils space and they invest in a company in that space that would be the platform [inaudible 00:16:17.1] that. And maybe there are 10 companies that make … that do internet broker pencils and they buy two other ones of their competitors and they make it bigger or somebody [inaudible 00:16:25.3] and now they're putting it all together those might be add-ons to that original entity that they purchased or recapitalized. That's what we mean. It doesn't necessarily have anything to do with size which can be confusing. Sometimes you start with something small and you get the opportunity and do an add-on that's much bigger than the original investment. So it's more just where is the starting point in you can do a space or an industry. Mark: And if we think about the terms it makes sense right? Brian: Yeah. Mark: You build on top of the platform and you add-on top of the platform. So it makes … that makes complete sense. Brian: Or bolt-on, yup that's where the nomenclature comes from. Mark: Or bolt-on, absolutely. It's amazing when you dig in to definitions it's like the terms actually have a meaning and it makes sense. Brian: They do. Generally, they come from somewhere. Mark: They come from somewhere. There's logic to this stuff. I love it. All right so now I'll get into questions that I'm starting to be genuinely interested in and that is how does a fund develop a thesis or an entire direction to go after a particular platform investment? I mean if you're selling blue widgets and also if somebody comes and says no you don't need widgets what you really need are sprockets, if you don't do anything with sprockets at all how does that enter into a fund's psyche at all? Brian: There's really three things that we're doing here to generate the sort of deal flow and the ideas and spaces we want to go into. So here I'll speak more from Huron Capital. There are other firms who follow a similar philosophy potentially. So the first is businesses we didn't know about but are being represented by a broker or an investment banker like yourself Mark who … those are opportunities that are coming to us. They are being listed. They're being actively shopped around. We may have never thought of the sprocket industry before or we didn't know too much about it or we read materials on it and we say it has a lot of characteristics and things we like; great cash flow, seems very resilient, seems countercyclical, if the economy goes down it'll still do well, it's a leader on its space, any of those kinds of things. Those are opportunities that come to us and that is more of a passive thing. And then we get active once we realize that it fits a lot of criteria and we believe we could be successful with it. And that sets into motion a whole chain of things where we kind of prove out of the pieces that we might like this business and we try to get educated. The second that we spend a lot of time on is networking with executives from a broad, broad variety of industries. Those people know where there are spaces that are changing. And generally speaking, change creates opportunities. Change creates winners on one side and losers on the other side. And less be to the losers but you need that kind of disruption to create any sort of sort interesting investment outcome. The study ID is probably the market's sufficient enough that the study ID is not going to return the greatest returns. So we've spent a lot of time with executives unless I knew them about spaces that could be interesting and trying to listen to areas they know about and start to build some [inaudible 00:19:37.4]. And then even more proactively than that there's a lot of opportunities where we meet the executive who has a view of one particular thing they want to do here at Huron it's got a registered trademark or the like of the firm. We call that an exact factor investment where we will actually flip the process and say we really believe in the sprocket industry. We met Phil who is going to be our perspective CEO in the space and he has this vision that is going to totally turn the industry [inaudible 00:20:11.5]. To do that we need to go find the platform, we call that like getting fuel behind the wheel. We need to find a car to fulfill the drive. We believe he's the best driver in that industry. And we will do all the work, we'll go write a hundred page white paper on it to prove to our investment committee why it's such a fabulous opportunity and Phil is the greatest operator in this space. And then we will commit dollars into going and finding businesses in that space and find Phil the car he can drive and we'll get off to the races that way. So it starts with a commitment from our farms for a certain amount of money behind Phil to go do an acquisition more and more in this space. So it … I guess ranges from that passive we find things and then we get educated too. We educate ourselves as much as possible and align ourselves with an executive who can execute and work the process the other way. Mark: Cool. All right that [inaudible 00:21:04.07]. So let's talk a little bit about the process that goes on behind the scenes when you are evaluating an opportunity. And I think for a lot of potential sellers this sort of conversation is going to be really insightful. So let's say we have somebody that they have an e-com business, 30 million in revenue, eight, nine million in earnings on an annual basis and they've got a couple of private equity firms looking at their business. Where does that start and what is the process going through? And you can talk about maybe Huron's process and then if there are variations that you know as well. The number of people that are going to look and touch that deal as it goes through the steps. Brian: Yeah. Mark: What are some of those behind the scenes looks? Brian: Yeah so once you've got that moment where there's a couple of firms interested there's going to be an incredible amount of information about the business across insurance, benefits, compliance with laws and regulatory statutes, information about the market; anything the business can possibly produce about itself, fairly every file that's off the shelf that they have, every non-disclosure agreement they have with somebody that they on boarded or employment agreement, every contract they have with a customer, or maybe it's an industry where you don't have a lot of contracts with customers but you have a lot of contracts with suppliers. All that information needs to be made available for these perspective buyers to digest. And the more they can be made available, the more that that's organized into different pockets of legal, employee, insurance, benefits, all of that, the better. It's going to save the company a lot of time from serving requests versus being proactive by getting that stuff out there. And you know well everything here all the buyers be under a non-disclosure agreement and that's just a very kind of well-oiled machine around making that information available to give your last few buyers down to the one you would like to choose and have them under a Letter of Intent. And that starts to be an exclusive relationship where the buyer is going to spend a lot of money in due diligence and in exchange for spending that money, they would like the exclusive right to [inaudible 00:23:19.3] business for a period of time. 60 days … 90 days where they engage and here is where it starts to get to be a lot more kind of in your trousers and really analyzing your business but they're going to engage in quality of earnings earned to go and understand did you actually produce the amount of revenue, if you put it in the right time periods, if you really counted for every cost etcetera. They're going to engage legal professionals who are going first to sort of just again a full work up of registration, compliance, [inaudible 00:23:51.9] and then those folks are going to work on the actual transaction documents as well as a host of other advisors. And that would be like again a 60 to 90 day process. It could be 30 days on the short end. There are firms who can do it in that time particularly if you're a smaller business and an add-on to a much larger or a very simple business. Mark: So how many people are we talking about there that are going to be involved in the process? Outside of the consultants like a Q of E … a quality of earnings report that's going to be an outside accounting firm right? Brian: Yeah. Mark: So we're not going to— Brian: Okay so from the acquiring firm? Mark: Mm-hmm. And we can start at the beginning. We can start at your interns that are digesting deals. That's going to be part one. Brian: Sure call it four and they're going to be answering to the remainder of their firm particularly their investment committee. Ideally, it's a tighter team and there's four and if it's an add-on expect more. So you'll have the management team of that kind of platform investment as well. So four to eight and then when you get to the advisor well now you're talking 20 something more. Mark: Right, getting all those outside advisers. Now one of the things I know people get worried about during this process is you start out again with that guy who's that in deals up front and he sees some he passes it on to the team and they end up liking it so now you're dealing with a handful of people that are asking the questions digging deep in that due diligence right? Pages and pages of collecting information possibly even submitting an offer because on the surface things look okay. Brian: Yup. Mark: There seems to be these back end investors committee as well which can also kind of wash the deal far in the process. What would you say to people that get kind of frustrated when they hear that and they think do I really want to work with private equity because there are so many people that could potentially disrupt this deal? Brian: So I would think about the time investment to it. So the private equity firm is in no way interested in wasting any of their time. Huron looks at something like little over a thousand deals a year. That takes a lot of time and we're very thoughtful about moving things to the funnel and connecting our firm's resources to evaluating an opportunity. So if somebody is spending the time I would tell the listeners that they are encouraged. If everything checks out the way I told to them so far or they've written so far about that business then there are absolutely no issues. The firm, an organized and real firm is going to be thoughtful and time is kind of their most valuable resource and they're set up to be able to make a number of staged gates kind of we're interested and we're not interested. We're interested subject to confirm affirmation I want two and three. And you can have a very quick conversation like you and I are having now to say is this the case is this not the case? Here's a big concern we have, should we be worried? And they will both take your answer and that gives them that kind of gumption to proceed. And they'll probably have to go validate that as well later. And that validation just has to support what's been told to them. But they are also making a big commitment with their time in the same way that the seller is and I would take it as genuine on their part that they're not looking for it to fall apart. It's just things do. Certain deals fall apart because new information becomes available. I've seen that happen a number of times where the seller learns things about their business or thinks about their business in a way they hadn't before and can agree that that's a genuine risk and may be something they want to work out within a course of another year and then they might be back to market. Mark: Yeah, that happens often. We see that all the time even in the amount of work that we put a seller through upfront it pales in comparison to what you guys are going to be doing in your actual dig deep due diligence. And the number of times that we have people come back and tell us that was a lot of work but that was really useful. Brian: Yeah. Mark: I have learned a lot about my own business, right? Brian: Yeah a great advisor like somebody like you and using a broker who's been through and understands the questions that are going to be asked is going to save a tremendous amount of time. And we call folks like you Mark a river guide we're using on our side and we love them. Sellers use them too because they're that much more prepared for the process. Mark: Yeah. And I can tell you like the one thing that … I'm going to play both sides here, I would say the one thing that can be difficult with working with private equity is because there are so many people that can come in with a dissenting viewpoint. You're not trying to … convince is a bad word but show the opportunity to one person and have them agree to it; you're having to show a number of people. But the great thing and I love working with private equity on is that it's completely unemotional throughout the process. Brian: Yeah. Mark: I mean it really is does this check the boxes we needed to check and if it doesn't we're going to find out as quick as we can. You said something, I was going to ask this question, you guys evaluate you said about a thousand deals per year? Brian: Yeah the pipeline you think about now it's working its way down at the top of the funnel and so we're a thousand and then that's working its way down to 250 that real solid time is being spent on and then 75 that we're spending real tons of resources and traveling around to visit them … maybe 80. Now I'll get these numbers wrong this is kind of directional and then down to the 30 or so that are getting a Letter Of Intention and we'll close 22 transactions a year. Mark: Yeah so that's an amazing amount of data to be pulling in. And you guys have criteria at every stage I assume that you're looking for up front? Brian: That's right. Mark: Okay. All right that makes sense. Do you publish those criteria? I know we get a lot of just the very broad stuff sent to us. Brian: We don't only because it's just so bespoke for every company. There are so many things that really are as you just said that are check the box and we're highly confident that we will go confirm later. We're highly confident that's not an issue and we are trying to get to it very, very quickly. The three or four things we want to make sure are the reasons we're most excited and confirm that that is factual and that was going to continue. Whatever that might be; on the customer relationship or the recurring purchasing or … whatever it might be. And then at the same time the three or four things that are kind of we're concerned that could be deal killers. We believe we're spending the time because we think that's going to turn out to be true or we need to get to a yes no about is this a real problem very, very quickly. And so you know it's just they're different for every business. Mark: Yeah I know a lot of people listening right now you guys are buyers that are out there looking to acquire. So technically Brian you guys are somewhat of competitors although I think that you operate at a range that a lot of our buyers wouldn't. But I think one thing interesting that they should hear is this idea of having this defined process number one and then number two the amount of deal flow that you have to look at. I've talked to buyers that been out there looking for a year, year and a half but then you find out the number of deals that they're actually looking at doesn't really … this is a numbers game. I mean it's purely a numbers game. Brian: It is and one thing I want to say on that numbers game for us and it may be different for some of your buyers or not is that we're looking for situations that are great for us and we're also looking for situations where the seller in some ways choosing us. Now I don't want to overstate that but I do want to say that there has to be a great fit in every piece and why we're a better owner than someone else for that business. Some angle that we have, some affinity we have for what they do, or some prior experience or something. Otherwise and it could be a little different for particularly small businesses. Maybe it's a little bit less like that and it doesn't need as much of the chemistry but that's a big part of what we're looking for, for sure. Mark: And we talk about that a lot on these pockets. I know you guys are probably tired of hearing Joe and I talk about the need for a buyer being a good fit. And we talked a lot about this general concept of being likable because sellers do eventually choose and for most of these sellers they do have a choice. I mean right now it's a seller's market. They do have a choice of who they're going to work with. I want to talk about the exciting stuff. Let's talk about the actual deals; the money. Brian: Sure. Mark: Why is selling to a private equity something that people should be excited about? Brian: I think I spoke a little bit about this at Rhodium but I just … I see then the difference in multiples that are paid for businesses that are exclusively e-commerce or SaaS based businesses. Those multiples are so much lower than what private equity firms are paying for more traditional businesses out in the economy. And I believe that those worlds will come together. And I believe that businesses that are a hybrid of both or have excellence in both and are flipping both worlds are going to be extremely, extremely valuable. Because on the one hand, they have the relevance for the future, it's coming from kind of the types of businesses that you represent. And also they have that anchor of the traditional business that makes them more under writable and it makes them more predictable because it's a less dynamic place that they're out in. And so that's where I think private equity firms in the coming two, three, four, five years are number one going to become much more comfortable with standalone e-commerce business models that are exclusive that and there are going to be people participating from the much more kind of like formal private equity world participating in your markets. And then I think there's going to be a convergence where a lot of more traditional business models are going to look for the influence and the DNA as well as the revenue and the profits but the influence and the DNA and the growth that comes from the types of businesses you work with Joe. And I think that means that the market that you're playing in, the multiples will rise there. For every dollar of earnings they'll be more valuable in the future and I believe that's for now in a very significant way in 2018. Mark: Yeah and we talked about this this idea of multiple appreciation that we see. And a lot of it reaches over to the fact that this is where private equity starts to play right? So we often talk if your EBIDTA is less than a million dollars per year the … just again for the sake of a multiple, it's going to vary for each business but maybe 3 … maybe 3.5 would be the multiple on that EBIDTA depending on the type of business that you have. But once you start getting up into two, three, four million dollars of EBIDTA now we start seeing the multiples jump up in the different ranges. And the reason for this again is that we're no longer playing as much with an individual investor who really has a much higher risk profile because they don't necessarily have the entire team behind them or a portfolio behind them to be able to take some of that risk but also get the staff in the background and all the resources in private equity. Brian: Yeah. Mark: So let's talk … I am not going to pin you down because it would be a really bad idea for you to say hey we generally paid 25x on earnings which I know you don't. What does a deal structure often look like? Because I know these deals structures do change as well when we're talking about a private equity acquiring a small company. What does an ideal acquisition look like for you in terms of its structure of cash that the owner is going to be getting, maybe equity or debt that you would hope that they stay around and I'd also like to address the idea that a lot of private equity likes to have or prefers to have an owner stay on board with the new company and why that's a good thing also for that owner to think about that. So that's a lot; the general structure, the ideals for a structure. Brian: Okay so let's keep this out of your space and let's just talk about the general PE model. When deals were cheaper a couple of years ago you might get a higher ratio of debt than equity in a deal but for this sake, I'm just going to make it 50-50. I think that more reflects the market today in terms of underwriting. But let's take a deal where a private equity firm is paying at least eight times. That's still a relatively rich multiple. I could have said six but let's use eight times. So we're paying four times the earnings in their own cash that they're talking and they are going and putting the company on the hook or raising four times and they do it. Private equity firm does it but on behalf of the company of debt for the business to take on. So let's say it's a business with 10 million dollars of EBIDTA. So it's an 80 million dollar transaction and a firm like Huron is putting 40 million of equity and raising 40 million of debt in that transaction. And that 40 million of equity can come either from Huron or some portion of it could be rolled over from the seller. If that seller has no debt on the business today, no capital leases or anything else that could be thought of as indebtedness over the normal trade payables. And in your day to day you've got cash coming in and cash going out; that thing that keeps the shop running. And they have no debt on the business theoretically on the day of closing they're getting a check for 80 million dollars. If they choose to roll over some of that … let's just say 10% of the purchase price, eight million of it I would argue that a private equity firm or somebody like me would take that as them stating a high degree of confidence in the future of the business that they want to continue participating and have a relatively [inaudible 00:37:34.7] portion of their net worth tied up in that outcome. Or that they see the opportunity to turn that eight million into 16 or whatever it might be that there is a great opportunity to continue driving growth and equity value in that business. They'll … I start there that the rollover investments are very useful because if you're saying you want to do no roll over whatsoever and you just want to walk away from the business it's not conveying a lot of confidence in the future of the business. There are certainly reasons to do that but it's not conveying a lot of confidence in the future of the business. And where somebody might have been agreeing to pay you eight if you were rolling over and giving that kind of tacit support for the business going over, they might kind of say this is we're not so sure. It makes them a little more nervous and it might be a seven times deal. So you may actually be shooting yourself in the foot in terms of the total proceeds you perceive. Again so it's an 80 million dollar deal, 40 million of debt, the seller is choosing to roll over. They got their 80 million dollar check, it doesn't work like this you're actually [inaudible 00:28:28.9] but they got their 80 million dollar check and maybe we wrote one back for eight and so Huron holds 32 million of the equity and that seller holds eight million of it. So Huron owns 80% of the business and they own 20% and we've got some obligations to pay. That would be kind of the middle of the road structure. There's certainly a lot more that happens as it relates to creating incentives for management teams and that's a very, very big part of what we do to make sure that if we do well they do well and vice versa so that we're all talking in terms of growing the underlying equity value of the business. And that can often be very different for a business that didn't have that before. And it was just solely kind of the founder driving it or minding the growth of equity value. We believe in creating a broad base of ownership so that we're all on the same page. Mark: Yeah. Brian: Our management team is on incentives exclusively through their salary or bonus or both. Mark: Right so one of the things that I've talked a lot in the past especially on like the main street sort of deals is this almost dichotomy and it really shouldn't be set up as a dichotomy of a marketplace based sale where you only have an investor looking to acquire business in a strategic sale where you have a company that it would effectively be like an add-on acquisition in your world right? They already have the sort of strategic advantage to acquiring that company. Within your world, it seems like so much of what you do is going to be the strategy based type of acquisition anyways. Brian: Right. Mark: So it's like you're not going to do an acquisition unless you think that you have a strategic advantage. And when we … you and I talked out in Las Vegas back last October one thing that you talked about quite a bit was we want to pour gasoline on the fire that's already existing. So whatever that might be and so as a seller who's out there thinking about this and saying man I've been growing my business like crazy but I'm investing all this cash back into acquiring more inventory and expanding the product line and I'd like to take money off the table and then keep growing it. This is that perfect sort of handoff to a private equity because you can say you know what you [inaudible 00:40:54.0] your income statement rich in cash flow pour. Brian: Yup. Mark: We got cash. We'll help you out there. You're going to get some cash on the table and then let's grow this from a 30 million dollar business to a hundred million dollar business. Brian: Right. Mark: And so there's an incentive there for that owner to double dip that [inaudible 00:41:11.7]. Brian: Absolutely. Particularly in situations … we see this all the time where additional capital is going to be an accelerant to growth. So capital is what we have and we're trying to find a smart place to put it work and if that means we can buy a business and continue and support that business with more dollars and we believe in the strategy and what's going on in the way it's being operated there's nothing … that's the easiest dollar for us to put out versus the whole re-under writing process of a new investment. And then for that seller to have all their eggs in one basket … I don't care what their life situation is they could be in their 30's and just want to diversify or they could be somebody who's looking at kids who are about to go to college and it just doesn't make sense to have 100% of their net worth or close to it tied up in their business. And if they could diversify a little bit or generate a little bit of cash but their vision hasn't changed at all that's a great situation to bring on a strategic partner like a private equity firm. And that's where that [inaudible 00:42:11.9] fit it really matters and the chemistry between the seller. For the most part, you're not going to sell it to a private equity firm, they don't want to be in the business or definitely not in the business of operating these companies. So round the business and investing in them helping to bring the right resources to it and bring the right capital solutions or capital availability all that. Helping them set strategy and all the other things but the actual day to day operations. So it's not going to be for your sellers or for buyers [inaudible 00:42:45.1] sellers who are looking to exit the business and hand it off somebody else private equity is not going to be the right solution. But for those companies that they either want to go to be a division of something larger and they think they can be a great cross selling opportunity or the way they've built their mousetrap if just they had more to sell in the same way, and I'll say like let's say you're the number one muffler seller online and you also want to do transmissions and drive cams and stuff but you don't have the capital and you don't have the ability to go source and expand that way, going and selling to a larger entity and being that e-commerce division is a very powerful idea. Or just continue and do your own business and double down … accelerate the organic growth, private equity firm could be a great partner. Mark: Yeah, we're just about out of time in fact we've gone a bit long but one thing I wanted to emphasize here, you said that capital obviously is the resource you guys have and are able to invest and I know a lot of people that I talk to say look I don't really need money from this, the business is making money and I feel good about this. But what I find when I actually start to dig in with these guys is I say well what would it take to move to that next level. Oh well, I would have to hire out this other division or create this other division and you know okay but what's the obstacle to that? I don't want to invest in it. It often comes up. Okay, that's the area where a firm like yours can also come in and say well look we have the capital to be able to invest in this. You know what you need; do you want to invest in it to get to that next stage? And even if that means bringing in someone and you can help with that let's do it. Exactly we can do that and we could— Brian: Not to mention that I think we find that often business owners are willing to do one out of their five ideas that are like that and were willing to do all five knowing that three won't work but two should work out beautifully and we're willing to go [inaudible 00:44:39.4] the bodies of the business and the capital and have the appetite to take two steps backward to take four forward and understand that they're not going to all work. And where maybe an independent owner would do those sequentially, try idea one it wasn't really working, didn't feel pleased with making that investment and losing that cash flow, fired that new sales person who was supposed to do something else. We're willing to go do things faster and make sure that that doesn't hover around in the business and the core of what we're interested in the first place. And so we'll work through that with the business owner by giving them that support and the dollars needed to make that happen. Mark: Brian, I really appreciate you taking the time here [inaudible 00:45:19.8] some of the small questions I had but really good to get those things— Brian: No it's my pleasure. It's fine. Mark: So thanks again and maybe we'll have you back again in the future at some point. Brian: That sounds great. Yeah, I enjoyed it. Thanks, Mark.   Links and Resources: https://www.huroncapital.com/member/brian-rassel/ https://www.linkedin.com/in/brianrassel  

Some sixty percent of people go to Amazon when they shop for a physical product. If you have one to sell and you're not on Amazon, this episode is for you. In today's product market every seller has got to learn the Amazon ecosystem. Today's guest is the person to turn to when looking to save, grow, and make more money on Amazon. Michael Zagare was doing something he hated for many years. He was ready for a change and finally sold his Physical Therapy practice and began dabbling in internet sales. Amazon FBA was a great fit. Mike now owns PPC Entourage and runs his own profitable Amazon business. PPC Entourage is an Amazon Seller software that analyzes all of your sponsored advertising data and then optimizes everything for you. Today Mike shares his insights from his own selling experience and from helping countless Amazon FBA sellers. Episode Highlights: When you should start optimization. Finding a niche in the marketplace and breaking in. Organic rankings versus paid rankings. Lowering ACOS with optimization. Your average ad spend. How to go about optimizing a paid spend. Sifting through the search terms in order to fine-tune your listing. How much data is needed to draw a good conclusion on a product's optimization. What to look for in opportunities to expand through optimization. Creative tips and strategies to use for sponsored ads. What Amazon sellers can implement today in order to start optimizing. Ways sellers can protect against the competition and dying out. Continual product development and brand building. The importance of the intellectual property portion of your products. Transcription: Joe: So, Mark back in the day … I could say that now because I have gray hair on my chin. Back in the day I learned Google Ad Words I used to spend a little bit of money and eventually grew it and grew it and grew it and grew it. It got to the point that I was spending $50,000 a week on Google Ad Words. I maxed it out and then you know just do that on a monthly basis. And I didn't take any courses and I should have. And I didn't hire any experts and I should have. And I didn't outsource it and I should have. Maybe they didn't exist, I don't know what the issue was, it was probably just inside my head. Today there's almost too many experts and in every possible category and some of them really just take your money. But you had someone on the podcast specifically talking about Amazon sponsored ads which if … folks if you've got a physical product and you're not selling on Amazon simply because you don't think you need to … I personally will not shop for anything other than on Amazon. I will go there first. If I can't find it there I think it doesn't exist. So, I think something like 60% of people looking for a physical product shop on Amazon. So, you've got to learn the Amazon ecosystem and sponsored ads and their marketing and things of that nature. And you had Michael Zagari is that how you pronounce his last name talking about this? Mark: Yes, that's right and he is an Amazon ads expert. And you're right back in my day I don't have the same gray hair mainly because I don't have a chin … I'm sorry a beard, I have a chin. Joe: It's very revealing about how you feel about yourself. Mark: Why do you think we've stopped the video? I have no chin. So, I had Michael on and you're right back in the day it used to be that you could setup campaigns with pretty much every advertising platform. Set them up run them and take a little bit to get them up and going but today really need to be an expert in each of these categories, each of these advertising platforms. Amazon is really no different than that. And what Michael does is he really helps people. He's developed a platform that people can use which will help manage their advertising platform through Amazon. Be able to identify those keywords that maybe they are paying for and add them to this negative keyword list to be able to make their ad spend a lot more efficient. In our conversation which … it's pretty funny actually, so he actually has an Amazon store and they sell litter boxes and other cat things and they're in the video which hopefully we'll get some clips up. That's a note to our editor Chris you've got to get the clips up. His cat was literally like walking around all over the chair behind him and everything else so very, very appropriate. We talked a little bit about the strategies that- Joe: I want to say “ah cute” but I'm not sure if it actually was. Mark: I made a joke that we developed into cat videos here at Quiet Light Brokerage just to get more views. We got over some of the strategies that he's employed over the years to be able to get some really crazy returns on his ad spend. And I don't want to quote them off hand, we'll let you listen to this because there are some solid numbers that he puts out and some solid techniques. We really talked about some other techniques that you can do to help out with your organic rankings as well on Amazon. So, anyone that's an Amazon geek or has a business or mobile business on Amazon put this episode on. We got somebody here who's doing this at a pretty high level and very interesting as far as adding that paid portion and maximizing that paid portion to your acquisition channels. Joe: I think you know even if you think you're an expert at it and you do pretty well listening to other folks that do things maybe just slightly differently in the next 30 minutes you maybe will pick up a nugget that will help boost one of your campaigns or decrease your CPA. Mark: All right Michael thank you for joining me. Mike: Hey glad to be here, what's up guys? Mark: All right let's go ahead and start with an introduction and I'm going to let you go ahead and do that like we usually do. Mike: Sure, yes. So, my name is Mike Zagare. I am a recovering physical therapist and I always lead with that because I was doing something from nine to five that I absolutely hated for many, many years. I love that it's helping out people but it was definitely not my passion or my dream job. I'm a thorough grade entrepreneur and I think that runs in my family. And I realized that as I was going through college that this is just like not what I want to do the rest of my life. So actually, my hair is starting to fall out and I kind of went through and was a physical therapist for 10 years. I started and sold a physical therapy home care practice in that time. Thankfully I no longer have that and I can focus now fulltime on Amazon. It has been an amazing journey along the way and a part of that journey was discovering how to build an Amazon business and how to scale that business and get as much traffic and eyeballs to our listings as possible. And that's why we started working with sellers to help that as well. To help them get as many [inaudible 00:05:31.8] for as sufficiently as possible to their listings. Mark: So, when did you start your first Amazon business? Mike: So, I started in 2015 and at the time I had a bunch of … I had a homecare business and I had a bunch of losing entrepreneurial ideas. Actually, the first time I dipped into Amazon it was started off as eBay and I realized well that's not something I can do full time; it's just too time consuming it's not scalable. And then I tried to do retail and online arbitrage. And if you guys have ever heard of that, it can be profitable but I think you really have to be in the right place at the right time and I had no experience. I ended up ordering hundreds and hundreds of the wrong units on my house and completely shut down the post office in doing that. So, like I really had the energy and the intensity but it really had to be channeled in something that was like … something where it was streamlined. Like Amazon FBA was perfect for me because you get to combine value creation and creativity. Create something that's really, really great and new to the marketplace and then it's much more scalable and it's like kind of out of your hands at that point once it gets to the FBA warehouse. Mark: Sure, so with retail arbitrage you're going out and you're finding this kind of products in other places, ordering them, and putting them into Amazon FBA, right? Mike: Yeah that's retail arbitrage. And online arbitrage is finding discounted deals on sites but then the problem with that is if a lot of people found the same deal. So, by the time you got your inventory over to Amazon your profit margins were gone and then you're left with a lot of inventory. So, I just felt like the model wasn't right for me and Amazon FBA was like lethal … definitely the way to go in terms of selling on Amazon. Mark: Sure, and we've had kind of a hierarchy here at Quiet Light as far as the businesses we like to see on Amazon that we consider to be most sellable with the retail arbitrage obviously being towards the bottom of that list because it really requires that special skill in being able to find products. And like you said the problem with that is there's a lot of arbitragers out there. They are looking for all the same opportunities. Everybody has the same equal opportunity for those and it can be pretty difficult to scale that. Not that it can't be done, I've talked to some people that are doing arbitrage at a really, really high level but it's pretty hard to transfer that as well. So when you're saying that you were doing Amazon FBA are you doing private label or did you create a brand and a product? What … where would you fall on that ecosystem? Mike: Yeah, I do private label and we have a brand that we're building. We sell cat products around litter solutions. We started there and basically, we started with one product that did really, really well and we found a niche in the marketplace, made it better, and then we just were the first ones to the market. And then we reinvested all that cash into other products based on the search term report. So basically, we got into the minds of people who are shopping for our products and you can see what they're actually looking for and what they purchased and sometimes it's not always the same thing. So, we would try to find the search terms that were similar to the products we were selling and then come out with those products because we knew that there was an audience there and we knew we could cross sell. And then it steamed rolled into that okay we have a bunch of litter solutions products, why not cat toys and why not this and why not hospitality item and now we're going to health and skin care as well for pets. So, it's just kind of branching out from there and now we have a brand and we're more focused in on building that brand. We have a community manager, we have all these different channels that we're engaging people on. We're getting Facebook groups, YouTube channels, stuff like that to really build up the brand which I know when you get to sell a business I feel like this is the secret sauce that people probably can utilize. Mark: Right and I would agree that brand … being able to have a good brand set up is towards the top end of that scale, right? So, the arbitrage is kind of at the bottom end because it's really, really tough to sell those businesses. It's really tough to transfer those businesses and a brand you obviously have a protection of the brand and the goodwill that comes with that. And even in the pet space too that's awesome man. I know we don't put up our full interviews anymore, we're hopefully going to putting up some clips but your cat is literally like obviously are behind you so. Mike: Yeah, I locked him in the room so he wouldn't make any noise but yeah, he's here and he's the inspiration behind the whole thing. It was me and him. I was a bachelor when the whole thing started and he's been the … he tests all the products so he's at [inaudible 00:09:39.3]. Mark: So, we're now devolving into the world of cat videos at Quiet Light Brokerage. Mike: There we go. Mark: In order to stealth views videos. All right cool so the heart of what I want to get to let's get into like the real meat and potatoes and that is paid product placement on Amazon. And I think there's a lot that we can really talk about here. And I want to start with just sort of the basics with this. And when I say that when I think about an Amazon business, when I know a lot of our buyers are evaluating an Amazon business they're going to take a look at its organic rankings in Amazon. Obviously, you want to have good organic rankings but there's also a really big role that paid placement can take in any Amazon business and especially from a buying opportunity being able to maximize that just in the same way that we would have organic rankings and Google versus paid rankings they are a little bit different they have different flavors too. I'd like to pick your brain for it in the next 20, 25 minutes here about that whole process of paid products within Amazon. So why don't we just kind of start there … what would you describe the difference and kind of the role maybe that a paid product placement on Amazon should take in an Amazon business? Mike: So, it really depends on your strategy. If you're going and you're launching a new product and you're trying to get of the best visibility on Amazon then paid advertising is the way to do it. You can get top line visibility right from the very beginning. And that's something that we've been really doing really well is because now we have an audience and we do paid advertising and we target people from our list over to Amazon and we have them purchase but we also use the paid advertising to supplement that. We love paid advertising because it gives us massive visibility for specific keywords. And we know what people are shopping for and for those specific terms we want to dominate the marketplace. We want to have what's called the sponsored branding ad which is the very top of the ad. We want to have a sponsored product ad which is basically an ad directly to our listing. And then we want to have the organic placement and we call that the swimming the competition approach. Because now we have a lot of visibility for our major keywords and if people see you two or three or sometimes four times because on sponsored branding ads you can have your image in there a couple of times then you're more likely going to get that sale. And the way we look into it is that we make sure that our … what we call the true ACOS which is the average cost of sale which is our ad spend is about 10% of our … [inaudible 00:12:08.7] margin is about 10%. And as long as that's happening we're cool with that. We want to get as much visibility and as much exposure to our brand as possible. So typically, what we look for is what we call an average cost of sale about 40% or less and then we scale at that level. And if it's affecting our account about 10% in total then we're cool with that. When it starts to get more than that then we start to optimize because there's a lot of ways … you can spend a lot of money on Amazon. You have to know how to optimize the right way otherwise you can lose your shirt. You have so many people on that site. And there's different ways to do that with keyword, bid traces, and negative exacts, negative phrases, that kind of stuff. Also sending traffic to the right listing. There're various things you can do but there's a lot to talk about so I'm interested to get into it. Mark: Well let's back up a little bit here because you threw out a couple of numbers here I just want to clarify here. So, it's a 10% into your margins so what do you mean by that? Mike: So, your ad spends, let's say you're spending $10,000 a month and you're making 100k a month then that's 10% percent right there. Mark: Okay and then you said 40% percent of ACOS. Mike: Yeah, so if you're spending 10k a month, let's say you're spending $1,000 on ad spend then you want to make the fourth … so basically the $2,400 you want to make 1,000. That would be 40% ACOS. So, it's 400 in ad spend to make a thousand return on ad spend. Mark: I got it. Thank you. Okay so let's start with just kind of the how this all works. How do you go about optimizing a paid spend because we get a lot of our buyers who … a lot of our listeners are buyers right? They're going to be inheriting a company that has an existing paid account or some paid advertising going on. Where do you start in that evaluation process to find out what you need to do to be able to optimize it? Mike: So, you start by looking at the search term report to see what people are actually searching for and how much the bid prices are. And there's a couple of different ways to optimize you can do on a keyword level. If a keyword is too expensive and it's really not … it's driving a lot of traffic but it's not doing it at a profitable level then that's just not a good thing. You want to start to lower down that keyword bid price to get a lower cost per click. And you really want to determine how many clicks it's going to take you to get that sale. And if it's too many clicks and your average cost per click is too high then you're simply … unless there's another advantage of getting that traffic, maybe you're getting a lot of return customer. You're selling sport supplements and you got to do 100% ACOS to get them in one time and have them come back again and again and again that would be a good idea of wanting to do that. You could be a little bit more aggressive but for somebody like me who sells cat products typically about 12 to 15% of our customers are return customers so we take that into account. But we try to keep it so that it's within our 40% ACOS because of that. And you have to tailor the keywords to make sure that they're not too expensive and that you're wasting all of your ad spend on keywords that are just draining your ad spend. Mark: Okay. All right so you start with a keyword report and then you look in to see what's driving sales right now, the cost, the areas that you could drive that down right? Mike: Yes. Mark: Okay and then where would you go after that? Mike: So basically, we'd start with the keyword report … search term report and then you would also find the search terms that are really, really not doing well at all. Some of them have zero like sales whatsoever but tons of clicks. And those are the ones that you want to start to do a negative exacter phrase on so that you can start to fine tune who's going to your listing and what you're paying for in terms of your ad spend. So, we use a tool inside of entourage called negative word finder which will tell you the words that are never … that have never been associated to a profitable sale. And you find those and you can do a negative phrase match which means any search term that the customer puts in you're not going to get that exposure to your listing and you're never going to get hit again. If you do it on a campaign level your entire campaign will be sensibly shielded from any time somebody types in that word. And then negative exact is like if you could take the exact search term that's not generating any sales and you could use that as a negative exact so that's why you're not getting any exposure to that that search term in its entirety. Mark: How much … this is exactly the same process that you would use with say Google Ad Words itself like you're taking a look to see what people are searching on, the stuff that's not really related or not really driving the traffic to a site, what have you driving conversions that's within the ad words world, how much data do you think you really need before you can start ruling out certain phrases or certain words and adding those negative words? How long do you have to let it run before you can really know and draw any good conclusions? Mike: There's a lot of factors that go into it; seasonality, how new the product is, is the listing seasoned. Because you can make some decisions early on where a listing doesn't have a lot of reviews and doesn't have a lot of questions that people could ask. People could ask questions on a listing so there's a lot of factors that go into it. Typically like a general rule of thumb it could be 10 clicks without a sale is when you start to make some adjustments and optimizations and that's to a really, really good well-seasoned listing. If it's earlier on then there could be a little bit more leniency in terms of when you start to optimize but really the fundamental thing is you have to have a really good listing. You have to have a solid product. You can't just sell a me-too product that's up there just competing based on price. It's got to have a really good high value to people who are searching for it. So, if you start with that then you can really get a better understanding of when you should start to optimize. But the rule of thumb is basically 10 clicks without a sale is when you would start to do some work. Or 10 clicks with a relatively high ACOS you would start to optimize that cost per click so that it's at a better cost … the bid price is better and not as expensive. Mark: Okay so in this case if we're evaluating a business for sale and taking a look at it one of the first things we'll be looking for that low hanging fruit of hey these guys are wasting money on their product sponsored listings spend right? They've got a lot of keywords that they're paying for. We've received 10 maybe 20 clicks we're not getting any sales from them and that cost is pretty high. So that seems like a pretty low hanging fruit there. When you're evaluating the campaign and let's say that it's pretty clean that way and looks like they're doing a decent job of going through and eliminating those nonproductive keywords, where do you look for or what do you look for opportunities to be able to expand a product that they currently have? Mike: So, there's a lot of opportunities when typically you can see keywords that are performing really, really well within the desired ACOS range. Meaning if you're … let's say you got an ACOS of 15% that means for every $15 you're spending you're making a 100. So, you may be missing out on some of the potential opportunity because your bid price is a little bit too low or Amazon doesn't really … maybe your campaign budgets are a little bit too low. So, you want to give Amazon more room to breathe. You want to basically tell them hey this works out for me you know I want to do this any time of the day. And you would then go ahead and optimize your keyword bid price and also raise your campaign budget so that you can get as much exposure to that opportunity as possible. And now it's a lot easier to see that stuff in bulk with software. You can see all of the individual keywords that are performing really, really well over a given period of time and where they really could use a little bit of a boost in terms of their ad spend. So, you can give that more love and then direct traffic there and then negate it elsewhere. Mark: Okay. Do you ever use paid sponsored listings for anything other than just the direct sales? I mean are there some more creative strategies that people can use with these campaigns to be able to maybe do some other parts of like with their organic rankings or other aspects of their account? Mike: There so many things you can do. Yeah, it's really exciting. There're different things that Amazon is coming out with. Now they just came out for sellers and sellers central sponsored brands, headline search ads. So basically, there's a big … there's a much bigger creative element to that and you can really brand to get massive exposure to your brand doing that. And if you've ever seen on Amazon they're very top ad when you go there. There's a [inaudible 00:19:53.2] to the left, there's a headline, and there's three product images and you can direct your traffic to a storefront which is basically your website on Amazon or you can direct it to a single list of items on Amazon. And there's a whole bunch of strategies to do that. Very creative headlines, you have to be really good at copyrighting, good main images, you have to connect the copy to the main image and to the three main products. It is very simple but I feel like there's a lot of opportunity and a lot of sellers really don't take the time to make a good headline. They just kind of put stuff up there and just kind of set in and forget it. And I think that's a really big headline. It also sets the stage for sponsored products and for organic visibility. It's like the first line of defense when people see your brand and then they see unsponsored products they may not want to click on it and they see you organically. And as long as your numbers are right we find that approach really sets stage for a sale. Mark: All right so you're talking about this again once you could be on multiple places so that people have those multiple touch points with you. Okay what are some of these other strategies? You said that there's lots of opportunities, I want to get in to one of these here and see something that the listeners can take away here as something that they could actually implement today. Mike: Right so if you have a brand I think the biggest opportunity is to dig into your search form report and actually find out what people are looking for. That has been the best opportunity there still that people just don't really dig into that as much as they could. So that's like instant intelligence as to what people are looking for and how you can build and expand your brand. The next opportunity I would say is to really dive into sponsored products and headline search ads because a lot of people … well there's opportunity moreso overseas now with sponsored products it's getting a little bit congested in the USA. Canada, UK, Germany, all of these overseas markets there's plenty of opportunity there. If you have a good product in the US that's an easy way to expand. We're getting better numbers over there in terms of our PPC recently as we are in the US. So that's a killer opportunity. And since the world is really open right now there's … the doors have come down. There's plenty of opportunity out there. But in terms of opportunity really coming up with creative ideas and creative products and really diving into that is the way to go in my opinion. Mark: Are you able to share any creative things that you've seen over the past six months? What's one of the most creative … obviously not explaining or giving away anyone's trade secrets here but what are some of the most creative things you've seen in the last six months? Mike: Yeah so, I like to build a listing that incorporates the entire product line. And this basically is you're getting … you're paying for traffic anyways, you're spending a lot of money to get your people to your site why not cross sell your other products, why not … and there's like five or six ways to do it within your listing that I think a lot of sellers aren't doing. You can have an image that has basically a visual of all the products in your line. A bullet point that explains that this is part of a product in your line. You can have a coupon that allows them to purchase another product in that line for a little bit less money. You could have what's called enhanced brand content now which shows the entire product line and has comparison charts with links to your other products and also you can link people to your storefront. So, I feel like that's the big play right now is to get traffic over but then really build the customer [inaudible 00:23:11.7] retarget them with emails and then get them on your sequence and then go from there. And then launching becomes very simple because you have this entire list. We did that process and we have about 7,000 new emails in one year which doesn't seem like a lot but these are customers who came to our site. They basically gave us their information, they registered for a coupon. They're loyal customers and now we're retargeting and also, they're part of our fanbase and we can grow at that rate. That would be a great thing for us. So that's one tip is to get more exposure to other products in your line. Mark: Okay let's talk a little bit about competition this is something that I hear from a lot of people that are looking at the Amazon space looking to possibly buy but aren't quite sure about it and their number one fear and even among sellers for that matter. What I hear is this kind of worry about competition and taking away from that share that maybe they've built up over the years. What are some ways in your opinion that sellers can start to protect against that slow believe that happens so often with product lines? Mike: Yeah it does happen it really does. I mean there's going to be competition within 60 months or less of whatever you're selling. That happens to us with all of our product lines and it's always been about reinventing and coming up with new stuff. If you're not reinventing I feel like there's the entropy is going to take place and that's just inevitable. Also, just keep in mind that Amazon consistently raises their fees. And then also from a PPC perspective there's more competition so the cost per clicks are going up not down. So constantly squeezing out that margin which is something that you have to be very mindful of. So, the protection mechanism that I feel is the best thing is your audience. If there's so many who is loyal to your product brand outside of Amazon … if someone loves you outside of Amazon they're going to come to Amazon to purchase your products even if it's a little bit more expensive. So, you can maintain your profit margins that way. The other thing is having … going where people typically don't go, so oversized items. Like really, really big items. People that are just usually scared away because the cost per unit to purchase that may be a little bit too expensive and basically there's a less … there's a bigger barrier to entry and it scares more people which I feel like is a bigger opportunity. So, if you combine that and even if you sell five or ten of those a day versus 100 widgets a dollar profit it just pays off that way. I think those are ultimately the mechanism to really scale. Mark: And those are things that we've been emphasizing for years. I'm glad that you said that because it makes me look smarter than I probably actually am. But these things, the less desirable is just one that we see you know not with Amazon businesses alone it's actually with any online business, right? The barrier to entry which might be a little bit scary from a buying standpoint. I remember we had a business that was selling a certification program and a lot of buyers are worried because they we're thinking I don't know anything about this how can I actually teach people how to get certified with it. Well you know what that's protection against competition. And so, when you get into that sort of less desirable niches where you have to solve a problem … and I think that's the big thing if you can figure out a solve a problem that problem is something other people are going to have to deal with as well. That's really key. And you're echoing as well with something that Chad Rubin from Skubana told me on the podcast several episodes ago and that is that continual product development. He made the point that Apple comes out with an iPhone every year and pretty much cars come out with a new car every year. It's not that the previous cars don't work well, they do. They could continue to just produce those ones but they want to create some new excitement among their consumers. And then finally get I know I'm literally just reiterating what you said but I think it's important to do so. Moving that brand so it's not just Amazon centric and dependent but creating that brand and kind of loyal customer base outside of Amazon as well. Mike: Yeah so … and one more thing I want to add to that is intellectual property especially at Amazon. I mean that we … I'll give you guys a quick story. So, we sell cat products and we started selling this cooling pad basically two summers ago. And it was a huge seller; a very seasonal item obviously but it was a huge seller. And then the next summer we got an email from a company saying that they had intellectual property rights to that thing. It basically kicked off everybody on Amazon and they are just doing … just normally you can't … now obviously we can't compete with them. And they're making so much money. So, if there is a product out there that you think is … and I've actually had trouble with this. I'm not … I don't have a lot of experience with this but I've never really come up with a product that is truly patentable but I feel like if there is something, some intellectual property you can get and you have something great on Amazon and there's no other competition because you're the only one man you do really well. Mark: Yeah and nobody thinks about the IP portion until it gets crowded right? I mean that's when you start thinking about IP. At first, it's like hey it's a big pie everybody can have some and then you're like why actually this pie is starting to get a little bit crowded. I'd like to be able to protect my slice. But you're right being able protect what you have through intellectual property is a really, really key thing to do and do it early as well. Mike: Oh yeah and then on Amazon it's almost inevitable you'll come up … there'll be people who will try to get your slice. I mean sooner or later and maybe from random countries and sometimes they don't always play the right way. So, it's important to make sure you have that in feel. Mark: Awesome. All right I feel like we could probably branch into another topic but then we would end up going completely off our existing conversation. So, I'm going to have us wrap up right there. I know that you also started PPC Entourage and that is to help Amazon paid accounts correct? Mike: Yes, it is, yeah. Mark: Okay do you want to tells us just a little about what you're doing over there? Mike: Yeah absolutely so in 2016 is when I … I started my business in 2015. 2016 I spent a lot of time with sponsored products and it was just a pain … it was great because we got a lot of visibility but it was frustrating because it just took forever to get it done. So basically, it's my first experience working with a software … a SaaS business and it has been an amazing experience. Basically, what we did is we made sure that everything that we did to scale our business could be done in like a fraction of the amount of time. So, if you're looking to get more exposure to your Amazon business, if you're looking to spend less on ad spend, if you're looking to optimize in a quick efficient way PPC Entourage can help you do that. Now we have bulk edit tools which allow you to look into campaigns … all of your campaigns all at once to see what those winners are. You can get more money and spend more money on those particular keywords and campaigns. And then also we have something called auto pile which is becoming much more intuitive. Basically, something that goes in every single night looks at your metrics looks at the settings that you place and make sure you calculated adjustments to your keywords so that you're not spending a ton of money on ad spend. It makes adjustments every single night. So that's one of the really cool, we also just launched Spotlight which is our headline search. Basically, our solution to headline search which allows you to create 27 different variations of headline search ads. Anyone who's on seller central knows it's one at a time. It's a huge pain in the butt. It takes forever but this allows you to find the best products. It allows you to find the best images. It allows you to find the best headlines. We have a headline creator. It lets you find 27 different combinations and you can slowly send them off to Amazon over time and then optimize those ads. So that's PPC Entourage and PPC Entourage spotlight and yeah, it's a growing business and we're so excited about where it can go. Mark: Awesome. Well thank you so much for coming on the podcast here and if anyone wants to reach you what's the best way for them to contact you? Mike: Sure, you can go to PPCentourage.com or you can also go and email me at mike@ppcentourage.com. Mark: Awesome. I'll include those links in the show notes. All of those will be at the bottom. Just scroll past the transcript and you'll be able to see it. Thank you so much for coming on and let's have you on again in the future. Mike: All right thanks. Take care Mark.   Links and Resources: PPC Entourage Email Mike  

After 10 years in the music industry, Dustin Ray started to hear about entrepreneurs in the tech space and felt the pull towards the flexibility that the online entrepreneurial field had to offer. As Dustin points out, there is no ceiling in the industry – as long you can build something scalable, you can take it as far as you want. The notion that you can create a value and see return relatively quickly was also an intriguing concept to Dustin. Dustin's company IncFile, specializes in the formation of business entities. Since starting, they have assisted more than 150,000 entrepreneurs and small business owners form their businesses. When Dustin got his start with the company they were not thriving but he and his team managed to grow it into an 8-figure company in a relatively brief amount of time. Today he's here discussing how modifying funnels and honing customer acquisition strategies allowed for that growth. We also touch on the challenges of scaling a team to that size in a short time span and navigating the growing pains that inevitably pop up. Episode Highlights: How Dustin got into IncFile. The processes that Dustin and his partner put into place to ensure the rapid growth of the company. How IncFile is filling a gap and taking care of the stuff that no entrepreneurs want to deal with. Through streamlined tactics and low costs, IncFile has become the leader in the industry and has continued to grow despite increasing competition. Dustin shares the key elements to a good sales funnel and the tools his the team uses to work and refine their funnel. Dustin shares his a 3-point strategy for finding a good starting point to getting into entrepreneurial tech. How Dustin's company was able to pass those pivotal “choke points” that many growing companies experience. Scaling doesn't necessarily equate with hiring. Hire slow and get the right people. The importance of worrying about what you're good at and building on that rather than trying to improve what you are not good at. Double down on your strengths. Buyers who are often the most successful in their acquisitions are those who hone in on what they are good at. Transcription: Joe: So it amazes me, Mark, the people that we meet at these different events and that are just laid back casual seem like just good guys you want to go hunting or fishing with … not that I hunt or fish, it's been a long time. I live in a lake but I haven't gone fishing for a while or I haven't caught anything for a while. Anyway, Dustin Ray strikes me as one of those people. I met him at Rhodium a few years back; totally laid back. I think you introduced him to me and surprised me later when you start talking about the numbers and what this guy is doing and so humble yet doing such incredible numbers. You had a chance to have him on the podcast recently. Mark: Yeah I did and Dustin is one of those guys whenever he and I talk on the phone and you know it's not as frequently as maybe I would like but whenever we talk it ends up being like an hour and a half conversation. Rest assured this is not an hour and a half long podcast but it could have been because he's got a ton of information. His background is fascinating. He started out in the music industry promoting some of the biggest artists that we know. He was telling me that when he was driving down through Las Vegas and seeing some of the artist's stuff on the board that are coming in, I mean these are … he knows who's behind these things. This was his industry for a long time but he decided to leave that industry and was really drawn to the internet world and got his start with a company that was not doing that great at the time. He didn't know it at the time but didn't know at the time and he's now a partner of that company. And really under his guidance and some of the other work his team has done they've grown it into an eight figure company relatively quickly. And really just through being able to modify their funnels, understand better customer acquisition strategies, and get that conversion rate as high as it can and really make it a product that works well for his customers. A really cool discussion about modifying those funnels, modifying your customer acquisition process but also we touched on and I want to have him back on again. I say this with a lot of guests but I definitely want to have him back on again about some of the challenges as well of scaling a team when you go from this one million in revenue up to five million in revenue, up to ten million in revenue and then beyond that as well. There's always this natural choke points where it's not as easy to scale that team and they've been going through that. They've been going through some of those growing pains but doing it really really well. So we talked about a little bit of that as well in this episode. Joe: Well Dustin's much more interesting than the both of us so let's jump right to the podcast. Mark: Sounds great. Mark: All right Dustin hey thanks so much for joining me on the podcast. Dustin: Hey thanks for having me, Mark. Mark: I know you're a loyal listener like you don't miss a single episode of this thing so you know what we do. We know that we'd like you to introduce yourself. Why don't you give just kind of a quick background on yourself? Dustin: Sure my name is Dustin Ray and I'm a co-owner at the IncFile.com. We're an incorporation service that services all 50 states. We help people form LOCs incorporations. We've been in business for a little over 15 years now and we've helped over 150,000 entrepreneurs get their business launched. Mark: You didn't start in this though, I mean this is … you have a background beyond that and you … full disclosure you and I met at Rhodium. What was it three years ago now I think? Dustin: Yeah. Mark: Yeah and we talked over dinner a little bit and you shared some of your background. You have a background in the music industry as well. Dustin: That's right so I kind of accidentally fell onto the tech space I guess you could say. So I grew up playing sports, going to school. I kind of grew up in the music scene and that meant recording stuff with friends and then throwing parties and club promoting and working at eventually a managing company, a record label, and then I went over and launched the hip-hop division for music marketing nationally for Monster Energy Corporation. So I was in the music business for about 10 years and it was ironic that we're here talking on the podcast because literally as I'm in the music business I kind of stumbled upon entrepreneurship in a podcast about it and that was kind of how I got introduced to the whole tech space. And when I was listening to just the different entrepreneurs … you know I didn't have any friends around me in the tech space. I didn't grow up coding. I'm not a coder. I'm not a technical person. So it was very much like an outer space experience when someone mentioned something tech. And so for me, it opened up a whole new world for me and it started speaking to every existence in my body about it. I love the fact that it was flexible. It's not like a physical store that you're at every single day. You need your laptop, you need your phone and you could be anywhere in the world. So I like that flexibility and I like the fact there wasn't a ceiling. As long as you can build something scalable you could take it as far as you want. And then the other thing, of course, is the trading was I mean the value creation right? It was like you would read an article and it was like how in the world would somebody build something in 18 months and then they're selling it or it's getting acquired for millions of dollars. Like how is that even possible? That was like a foreign concept to me. I thought you got work hard, put in the time, be a savvy investor and when you have a lot of white hair then you have your money. So that was kind of how I got introduced to the tech space and then I'll let you take it from there if I'm not rambling on but that was my introduction into the tech space. And then I found my way in through Incfile. Mark: Cool. Yeah, I want to get into that but I just made a quick observation and something I've noticed over the years is that people who come from outside of the tech world depending on your background it's fascinating to watch what you're able to bring in. The music industry and the entertainment industry in general and you can correct me if I'm wrong but I'm pretty sure this is accurate; crazy competitive space right? You've got to be top of your game if you're going to be promoting artists and I mean everybody wants to be a music star of some sort. So if you're in that promotions game you've got to be on top of your game there. I mean- Dustin: Yeah just like a lot of businesses I mean competition is fierce. You got a singer or a rapper or something on every corner and just like really in any other businesses it's how are you going to stand out? How are you going to break through? It's not always just talent. That's where it starts but it's really the first events that really … it's what separates an entrepreneur, a musician, an artist, a rapper from the next. So yeah it's completely … and it's not a pretty industry either. I mean you hear some of the horror stories. I mean you've got to fight and claw your way to just get the money that's even owed to you. It's not like we have this automatic draft where if you owe me it's got to be paid or this automated payments like we do in the tech space where it's automatically … an invoice comes in and it's paid. I mean in the music industry you have to have some fight in you. You have to know how to do all of that. Navigate and fight your way through to survive. And that does translate into any business but in tech space too I mean super competitive. Anybody can come in and make you either irrelevant with new technology or they could come in with more resources and push you out. So you still have to have that the same perseverance inside. Mark: That's fantastic and I have a story to tell but I'm not going to tell it right now. Maybe you and I can talk about this another time or anyone that's listening if you meet up with me at a conference I'll tell you the story about the time I sat on an airplane and sat next to a multiple gold album recording artist who was sitting back in coach and had made millions and millions of dollars at the music industry and had almost none of it to his name because of managers and stuff like that that were taking the money from him. A fascinating conversation, a spoiler alert he was crying by the end of the conversation. So fun story but we would definitely go down a rabbit hole I don't want to get into right now. I want to talk about Incfile. I want to talk about kind of your background there, how you got into it and also the scalability and some of the challenges that come along with scaling a business like you have with Incfile. So that's about 15 years old, how did you get into Incfile in the first place? Dustin: So I've been with Incfile now for 4 ½ years in all in perspective. So the way I got in was a good friend of mine and business partner for a time; we had a graphic design company. And parlaying into the music conversation we were working with record labels in designing all the marketing packages for some of these artists that they have. You know the album covers, [inaudible 00:09:31.3], mind spaces at the time, anything graphic design wise. And ironically through a mutual friend, my business partner now at Incfile who grabbed me in, co-founder Nick he liked for what he saw out there as far as one of the designs we have put out. And by way of a mutual friend, I got introduced to him and we started working in a design capacity for Incfile. And at the time Incfile was much smaller than it is today and so there was ups and downs and I started kind of building rapport and Nick and I shared a lot of the same philosophies on business and perspective. It was interesting for me at the time because just like I mentioned I was listening to podcast and super fascinated with this world at that time and this is back in 2009 probably. You know we started working, Nick was open to new ideas and I didn't have experience but I was just kind of sharing thoughts and experience because when you think about design you think about user experience at that time. I didn't have any training but a lot of it is just psychology. It's human behavior, human nature, kind of how people operate. And so Nick and I would collaborate on these efforts and be speaking late until the night and then into the early morning building that rapport. So at the time Incfile really needed to kind of turn a corner and so I started consulting with Nick. He asked me to help him to kind of redefine our sales funnel and our work process. And at the time it was a big deal, I didn't realize how big of a project it was for Incfile it was … there wasn't a lot of business coming in at the time so it was a kind of critical moment but I didn't know that at the time or there would have been more pressure. So I started helping Nick and we started collaborating on redefining the order process and it really was our big sling at trying to turn a corner. And luckily enough through the efforts and months that we put in doing that it started to turn a corner and things started getting better and Incfile started growing. And we kind of continued helping each other out over the course of the next few years and it just finally got into a point where we're saying look what we could do part time what could we accomplish together if we are both all in? And then that's when I'd left Monster Energy and jumped in all in with Incfile at the time. And that was in 2014. Mark: That was in 2014. I don't want to get into specific numbers and ask you to be sharing numbers but you guys have been growing pretty much consistently since 2014 right? Dustin: Yeah. We've been steadily growing year over year. Our business has been growing at a healthy rate as well. So anywhere between 50% to 80% year over year and that's both top line and bottom line. And so we really are at this point we're focused on growth. We're a growth company. And we're just constantly trying to redefine and push the anvil up to continue that growth. Mark: Yeah. So let's talk about the funnel work that you did when you first came on. Did Incfile have funnels in place before that or did you come in and tweak what was already existing or did you have to kind of rewrite that book? Dustin: Now we had to rewrite the book. And I mean, to be frank, this is both from Nick who's at Incfile and started the company and then myself coming in and helping. You know these are two guys that are just figuring out at how to go. He didn't have previous experience in the tech world or building an online business and neither did I. So it's literally just two guys figuring it out. So there wasn't any specific processes in place or any sort of funnel analyzation or anything like that going on because again it's back in '08, '09. Things are a lot more sophisticated now in terms of analytics and marketing and tools and things like that. But we were literally just figuring it out. We didn't … we weren't … at the time we didn't have a lot of data to kind of drive some of the decision makings. So we just figured it out as we went and that's why I think I said luckily we did something right and it started turning around. And to be frank and to be honest I mean we're still figuring out as we go. We've been growing and I guess part of that is intuition with part of the strategy that we're deploying. The other half is having a phenomenal team. We have great team members to help. I mean everybody is … it's an understatement to say everybody is working hard because it's beyond working hard. Everybody is really pushing a full play and we've been able to grow but literally, we're starting to figure it out and getting a little bit more pieces in place to be more strategic and more structured. But up until really recently I mean we've just been figuring out as we go. Mark: One of the things that I love every time that we talk you're always talking about tweaking and finding other things of that sales funnel that you missed before. I absolutely love that because I tend to set and forget. A lot of times I'd get a sense from you guys that you're always looking, always experimenting with your funnels. Dustin: Yeah and that's a good point to touch on because one characteristic too that Nick and I share is that we have this obsession with a fish in sea and process. And so tweaking it is really the game that we like to play. So we like to be building the product. We like to be refining it. We take pride in trying to be innovative and have the best product in the industry. Not even as a strategy but just more of a personality and characteristics traits. That's what we've been doing since day one. It's just constantly keeping our head down focusing on the product and making it better every single day. Mark: Yeah and obviously having a good product helps quite a bit. And we've talked a little bit about your product privately and what it does. I mean some of the services you guys offer are phenomenal. Making sure things are kept up to date and having that subscription portion of it as well. People can literally not worry at all about their filings. It's a really cool service because I know I had to file actually in Texas for a company of mine and I started getting these notices and I'll tell you as a business owner and entrepreneur you get all these things from the government all the time and you're like I don't want to deal with this. I don't want to have to spend an afternoon trying to decipher all of this. And so you guys are really committed to filling that gap which is cool. Dustin: Yeah and I'm sitting in the same seat as you. Having private companies to even working at Incfile same thing, I didn't know even what a registered agent was or what a franchise tax report was for the state of Texas. Somehow I must have put myself or something down for it but it wasn't until I got to Incfile where I actually even understood it. And that's where I think we fill a big void in the entrepreneurial journey. It's just taking care of that stuff that really no entrepreneur wants to take care of. It's not a sexy business in terms of like the way we might talk about the music industry or celebrities but it's a fundamental core piece of running a business. If you're going to be an entrepreneur and you're going to be in business you're going to have to take care of these things that we offer. So we try to make it … we streamline the process and make it easy. So we're constantly innovating to make things faster and at the same time, we're the low cost leader in the industry so we drive the price down. So where most people that may go to … historically speaking it's a little bit more out there now because a lot of people are comfortable with doing business online now versus 10 years ago. But it really was the kind of fundamentals where people would know that they need to have a registered agent. There's this state mandate that's saying you have to do these things. But like I said it just frankly isn't fun or people don't want to deal with it. When you're starting a business you've got 15 hats you're wearing and you're putting out fires, and you're worried about sales, and doing all these other things. So we've really drove down the prices well to make it convenient and affordable to where a lot more entrepreneurs these days. It's just part of starting a business nowadays. Nowadays it's like okay I know I don't want to worry about that it's only going to cost me this much money so let them worry about it and they can deal with it for as long as I'm in business. Mark: Yeah, that's cool. I want to go back over to the funnel stuff and ask you kind of a basic question. What in your opinion makes up the key elements to developing a funnel, a good sales funnel? Dustin: One is always … I mean some of this stuff may sound rudimentary but simplicity, right? Because in an industry like ours where things are very technical, you've got secretary of state, you've got government agencies, and the IRS and a lot of formalities with these bureaucracies that it could become intimidating and cumbersome when you think about legal services in general. So us not being attorneys for one has kind of served and helped us in a lot of ways as well. We are entrepreneurs our self so we can put our own hand on and think about how would we want this to work and simplicity is number one. I mean don't make me think is the philosophy. If I had to think about something it's already too difficult, too hard, and our sales funnel isn't as fast as like selling a t-shirt. I mean you still … even though we've simplified and streamlined it you're still going through in some cases depending on which package you have you may go up to 15 pages to get through the end of the funnel. So it's very important to be fast. Just ask me the basics of what we need and in some cases, we'll [inaudible 00:19:15.7] process where we will gather additional details that may be needed. But if you frontload your funnel that's a recipe for disaster because people get exhausted and if you get in too many decisions you give them too many chances to change their mind. And really they want to get it done that's why they came there. So if you can make it a simple process to go through and then worry about making the connection and introducing yourself and working one on one if need be to solve the rest of the information gaps. But we see a lot of our competitors … I mean it is very word heavy and very cumbersome to go through their cellphone. So we just try to streamline that. Mark: Yeah, keep it all simple. When you say front loaded you mean asking all the questions on that page one and somebody sees this big huge form and they have to get through that he would form it with complex language? Dustin: That is one but also I mean front loaded just meaning the entire funnel. So if once you get to the back end of our system, if there's additional information or if there's something that is unique to your business that we may need additional information on those are emails and conversations that we can gather afterwards. But I mentioned we may have a funnel that could be 15 pages but if we put everything into the funnel they may need … it could be much longer and people don't want that. They want to get in, they want to pay, they want to have information; know that we are taking care of it and if you need something let me know but I'm already … once I click pay if you're handling it and I'm off to the next thing. Mark: What are some of the tools that you use to really work and refine that funnel? I mean it sounds like you're trying to gather some intelligence from your customers and watch their behavior to see where is the sticky points, where people are tripping up, do you guys use different tools to be able to collect some of that information and figure out hey you know what this is just not working? Dustin: We do not. Like I said we were just figuring it out and working along intuition for years. It's kind of how you are where any business is focused on sales, you're focused on sales and then you're focused on servicing those sales. So years go by and business grows and at some point, we're like man it's a lot harder to implement these processes now that the train is moving at 120 miles an hour to implement the process. So that's been an extreme challenge for us for the past couple of years. But we're at the point now to answer your question about tools where we now have complete tracking setup for all engagement. So a lot of it goes through GA but we're using a lot of different … whether it's a UDM code or whether it's an event tracking code on the website to understand where people are coming in and coming out. We're using user testing on the back end so things like VWL for user testing and constantly refining that. Just tinkering with every page or basically not everybody married to anything on the page. So it's kind of a philosophy where hey just because we've stared at it so many times for so long don't get stuck in it. Everything is fair game, anything can go. And now we're using VWL and Google Analytics and a lot more tracking into Google Analytics to tell us some of that data behind what's happening in there. And we just started doing live user testing as well. So besides the quantitative data we're using web services that actually have live users coming in that aren't familiar with your page and then going through and giving you kind of like we are with this podcast a stream recording with their … they're speaking while they're going through it and giving you all the pitfalls and challenges and get things that they like and don't like about it. So marrying that quantitative data with qualitative has really helped us just in this year alone. Mark: Yeah and just to be clear GWL being Google Web Optimizer I would assume right? Dustin: Yeah we use that as well, the search console but VWL is a— Mark: Oh VWL. Dustin: VWL. Mark: Okay. Dustin: In other words, it's a Visual Website Optimizer; VWL.com for user testing. There are other competitors for that but that's worked for us so far. Mark: If you can answer this … don't feel like you have to but how many experiments would you say that you guys run in any given month? Dustin: Not that many. Because we were running at least … or I should say we wanted to run five to 10 in a week and just kind of push it up, push it up, push it up. But now we're content having more patience and so we want to get it right. So we're not being short sighted with it and now we're really trying to really just run things that don't interfere. It may just be one test a week, two tests a week at the most that we're introducing only because we want to compare apples to apples. So if we make too many variable changes then the numbers and the statistical significance get kind of skewed and then assumptions come into play. So we limit it to one to two now. Mark: All right so you're throwing around words statistical significance and you're looking at biases and you're looking at all these different assumptions that are coming into it but you started off on this without really any background in CRO and kind of this funnel optimization. Somebody listening to this that they just bought a business or maybe they're looking to do something similar on their own, what's a good starting point in your opinion for somebody that is just starting out in this area? Or maybe somebody that's intermediate and knows a little bit about it but hasn't really seen the returns yet from focusing on this continual tweaking and improvement? Dustin: Yeah I mean and you're right I didn't know anything coming in. So for me literally not having friends in the industry, peers of any sort, nobody around me locally, I rely heavily on podcast. You know podcast people speak freely, it's a casual environment, people want to help other people, like minded individuals and I benefited tremendously from podcasting just from learning. And of course now with hands on training, being … working in an environment in the tech space you're learning things every day. So one, learn by doing. Two, reach out for the resources like podcasting. And then the third thing I would say too that is when you reach a point when you could come up for air I would encourage to try to go to different networking events and meet other individuals and just get their perspective outside of your own that they might share that maybe you wouldn't hear at podcasts. It might be more frank or direct or they might have encountered a situation that they can actually help you … give you advice for a scenario where as a podcast it's more educational and you're listening but you can't just jump in and ask the questions so to speak. So those are the three areas that I would focus on. Mark: Okay, cool. I'm going to change gears completely here and spend our last 10 minutes or so. I want to talk about the growth with your company. And in my experience, because I watched a lot of companies grow, you know people that I'm just friends with and we talk about the challenges. But then also people that I have been advising as well. And I tend to find that there is this … there are certain choke points with companies where they have troubles turning certain corners. You know when you're first starting up a company oftentimes that's when your revenues start hitting 250 300,000 and then there's another choke point once you get to about seven figures and trying to get up to the higher seven figure range so on and so forth. What's been your experience? You came on at a critical point with this company when you guys weren't really sure about the future and then you've been able to grow it since. What has been your experience with some of these choke points within the company's growth, the company's culture and I guess I should probably ask instead of assuming I mean have you guys experienced that? Dustin: Absolutely. You know it's funny because… and this is a great topic. We should spend some time on this. As an entrepreneur or as a small business owner on the startup of a small company and I kind of am speaking more in the vein of like bootstrapping because we've been self-funded from the beginning. We've never taken any rounds of funding so I don't have experience to speak on there. But as far as doing it yourself one thing I can say is focusing on … or I usually think that hiring people right is going to solve your problems. And it does … that comes into play later but it comes in very strategically later but what I figured out was that … like for example our biggest our advantages when we were smaller became our biggest challenges as we try to turn corners. And I'll elaborate a little bit on that and so for example in our industry we were bootstrapped, we're a small team, we're still a small team. We're competing side by side with companies that are Goliath's in the industry that have either been acquired or have raised funds and are billion dollar companies. And we're competing with these guys directly and we're a very small team. So we're probably 15 people in our office and then additional people in terms of remote resources outside of that. But what I'm getting at is that that worked into our advantage when we were small. So when you think about it we were able to think about it and have a conversation today and then we could start building it tomorrow. And we could … we were very efficient and we push and we work hard so we could roll things out at tremendous speed. And that kind of led some of the innovation that we now have that's really industry leading now at this point because we were small and we can move fast. We're still small but now that we've grown in size it's … you face new challenges right? And so the challenge for us now is now it's our disadvantage being this small. Because now we need to accelerate growth beyond where we are and our capacity is limited in terms of what our team could do beyond what they're doing now. Because as I mentioned earlier everybody is pushing, everybody is already at capacity. And so even though you feel like conceptually okay well I … we're managing the advertising so to speak, all the PPC and all that stuff. It's been self-managed all the way up until this year. We had to bring on a team to help manage that. We've had to bring on team members to help us in different areas from SEO, content marketing, we've expanded our dev team. So the other things that we're doing now to help turn the corner but what you realize is that you could keep iterating and moving but when your smaller you can solve problems quickly. Because the problems you have are generally something that can be solved quickly. When you grow, the challenge has become not overnight fixes. So you're going to spend a longer time fixing it and then for your growth, there's a reason why not everybody grows to be giant companies it's because it gets harder, it doesn't get easier. And so what we've realized too is we could see an opportunity and seize it and go take that hill so to speak and then we experience growth. We open up a new channel and we experience growth. Where we are now is we actually have to have a strategy and team to forecast ahead six months or more so we can invest in that today and then experience that growth hopefully six months, 12 months from now. So that's one area that we have certainly run into a wall on and had to figure out how to maneuver around it. Because you get used to thinking that your core strength and your competitive advantage is always your competitive advantage. So it's something like we've got to always be objective and look in the mirror and say oh wait a second is that now [inaudible 00:31:10.2] is this now the one thing that's holding us back? Maybe it's not so great. I need to think that was like what we hang our hat on but now you really got to think how to move forward and you have to remain objective about it. Mark: Why do you think that is? I mean why do you think that as companies grow … and this sounds actually by the way very similar to the same conversation I had with Rob Walling from Drip because they were the same sort of environment. A few dabs working together and they had an idea for something, they rolled it out and coded it out and pushed it out within a day and that was it. They were able to do that and then as they grew the same sort of challenges. Why do you think that is that as you grow it's not as easy to just flip out new solutions? Is it because there's more people involved or is it because the growth and the changes that you need to make are more sophisticated or … I mean what's going on there? Dustin: I think it's competition. Because once you kind of turn corners or try to go to the next level it's a new game. You're playing against different competitors and their strengths and what they do best and why they were in the top positions that you're taking market share away from is because they're doing something really well. And so you have to be able to then compete directly with them and do what they did well and take market share from them. So you have to constantly evolve. It's not just internally what's happening but just in the industry for competition, nothing in business is just standstill. So you're in the gaining realm or losing realm and when you reach new heights or next levels the competition gets more fierce and you have to have even deeper strategies. You have to be thinking future, you have to have more of a focus because we could cover a lot of ground and a lot of places and growth but it might be more short sighted. It might be just low hanging fruit and we're catching that. But at some point, you're going to run out of low hanging fruit. And so once you run out of low hanging fruit it becomes all about strategy and long term strategy because you have to build things that are scalable and you have to compete against these guys in the course of six to 12 months and beyond. So it really takes a different mindset to turn the corners. I mean you can operate in the same manner as the same culture and the same type of people and teammates but the game and the rules become more fierce. Mark: You said something a little bit ago about you used to think that the scale you just hired or something to that effect but then you kind of learned that that wasn't the case. Why is that? I mean obviously you need to hire to scale at some point but— Dustin: I think a lot of people try to scale too fast and I don't … I mean some people can do it and some people are that experience so they can pull it off. For us, if we could have hired earlier then we potentially could have got further faster. We were reluctant to hire rapidly because we knew we were growing but we didn't want to take the growth for granted. Expecting the growth to come so we would make sure that we had the business, captured the business and then when the need was dire we bring somebody in. But honestly, if we would have brought somebody in and forecasted at six months in advance we might have been able to keep the momentum going faster. But looking back in hindsight I do think there was some benefits of not hiring faster because again we focused on product and we focused on our customers. And so the product was constantly improving and essentially when you think about scaling what are you really scaling right? You've got to have a strong foundation to scale or build on top of it. So not hiring people at that time … I mean the last several years and the investments we've made and you know we weren't … in our industry we were known but outside our industry, it's not like we're flying on anybody's radar. And that's because we have our head down and we were just building the product. And now that the product and the machine and so on is really strong in terms of foundation now we're hiring rapidly in a sense. We're really trying to accelerate it and bring on very strategic hires to fill specific niches or voids that we need to fill in terms of areas of expertise. And so it's working for us now in terms of hiring for your right and not to hire to scale but at the same time if we wouldn't have focused so much on the product and building the foundation that is … you know everything innovative and automated that we have it could be the death of us. We could grow too fast and then if the machine doesn't work then you got sizable problems and when you're talking about thousands of users and thousands of people on your platform, it's not just two people calling and saying [inaudible 00:36:02.9] we're talking about your phones ringing by the thousands and people trying to get those needs resolved. Mark: It's fascinating. With culture and when you're growing a company like that and you're bringing on people and hiring quickly after a certain amount of time because you need to be able to support that growth. Have you guys been able to keep that kind of grinder spirit that you seem to exude with every time I talk to you? You know it's that classic entrepreneur hustle. Have you been able to keep that culture with your company? Dustin: We have. So that's a big deal for us too. I mean the people that you worked alongside with and the people that you entrust in helping to make decisions and contribute they kind of have to be in line with your philosophy and with the rest of the team. Otherwise, they're searching between team or there's a conflict of philosophies. And it's a lot easier if there's a culture fit to be able to rally everybody together for the common good and push forward. So in a lot of ways … in our case we certainly want people who are capable but if we had a scale of one to 10 and the most talented person was a ten we would still rather work with eight. Let him come on to the team out work everybody, fit with the culture and then we're not going to have the kind of pitfalls or speed bumps that we may have if we have friction with somebody. So we definitely identify and work better with those types of folks and at the same time, I think that they appreciate that about us as well. Because depending on what environment they came from if they had the same spirit or they're a fit for our culture generally it's a place they like to work and with an environment people that they want to invest their time with. So I think that's been huge for us and up until this point it's work and as we continue to scale and grow it becomes more of a challenge to try to keep everybody in the same culture fit. But it's important to hire slow and make sure you get the right people than to hire fast and then be reverse engineering that and figuring out how to let them go and get somebody else then. It's counterproductive. Mark: Right we've gone a little bit over time but mainly because it has been a fascinating conversation so any last bits that you would want to put in or if anyone wants to reach out to you are they able to do so? Dustin: Yeah, absolutely my e-mail address is ray@incfile.com I'm on LinkedIn, Facebook, my name is Dustin Ray or my handle on Instagram or anywhere else would be drayonline. But if I was going to leave any other nugget of information with folks just from our experience or my experience one thing that people kind of find interesting but I think is very important is that a lot of people in our society try to focus on self-improvement. We all work on self-improvement but I think it kind of gets lost in transition with entrepreneurs because we're constantly … we're builders and we want to improve but society kind of teaches us in a way to work on our weaknesses. If you're already good at something don't worry about that, you've got to worry on what you're not good at and improve in that area. And really just through experience life not just business, I kind of think it's more important to focus on your strengths as for a self-improvement and be self-aware to say this is the area that I'm good at let me build you, fill gaps, and bring on people to help me execute whatever the task at hand is. But I think too many people focus on improving on what they're not good at. Like for example, we ran a graphic design business for a while, okay I was interested in design. I like design. If I stuck there and invested my time into getting better at design and using Photoshop yeah I'm going to improve. I'm going to get better. But at the end of the day, my best is going to be mediocre. So I'm never going to be able to compete with the guy who's a phenomenal designer. So rather than focusing on your weaknesses just be mediocre at them, I think you got to double down on your strengths. Be self-aware and know what you're good at. And I think it kind of encompasses more of a positive mindset when you're focusing with confidence on what you're good at. You know even when you're trying to improve on what you're not good at it's kind of a negative feeling right? It's kind of you know you're not good at it and you're kind of getting down about it because that's human nature but if you … you know the entrepreneur journey is tough so if you focus on your strengths and bring people on to help you where you need I think you could get further faster. Mark: Well, don't tell my kids that because I keep telling them to work on the stuff that they're struggling with in school. But I think when you are applying it where you're applied it you're 100% right. Dustin: Your kids they're learning right so they don't know exactly what they're good at and what they're not so I do the same for my kids. Mark: Right. Dustin: You're teaching them to work through the problems. More problem solving than self-improvement at this point. Mark: Right. Exactly and also if you want to become an all-around good person work on finding those things. But you're right as far as with your business and entrepreneurs and we see this with buyers all the time. Buyers that just kill it are the buyers who come in and they know their strengths. They might be CRO gurus, they might be SEO gurus, they might be really really good at just setting up operations or what have you and they look for the businesses that are deficient in those areas so that they can take them. And those are the guys that come back with two X, three X, five X businesses in a few years because they've taken their strengths and they're not going to bother trying to work on the stuff that they're bad at. They're going to outsource that if they have to, make sure that somebody else is taking care of it and they won't deal with it and it works. Dustin: That is so true. I gave up Mark … I gave up on trying to be smarter. I said well I'm going to self-improve but I'm not going to get any smarter so now I tend to focus more of my time on becoming a better leader than trying to get smarter. And so you can only build a company so big on your own so if you want to get smarter you're only going to get it so big, you're going to have to work with more people and bring in people to grow a sizeable company. So for myself today I try to focus on being a better leader and working with people and empowering them to be the smartest person in the room. Because their areas of expertise, they are always going to be smarter and better than I would be in that space. So I just try to focus on becoming a better leader and I gave up on trying to be smarter. Mark: I love it. That sounds like a great way to end this episode of you on the podcast. Thank you so much for coming on this has been awesome. Dustin: No, I can't thank you enough for inviting me. I hope your audience gets something from it and I'm looking forward to catching up with you soon. Mark: Sounds good. Links and Resources: IncFile Dustin's Instagram Dustin's LinkedIn

Quick story: We remember when we first got into being fitness coaches and how fascinating it was learning about flexible dieting. The absolute control you could have with counting your protein, carbohydrates, and fats, and not feeling deprived with restricting certain foods was an absolute game changer. Now imagine this… What if you had a personal nutritionist in your back pocket? Literally you pop out your phone from your back pocket, you’re able to get your dietary changes from a personalized nutrition algorithm, and thus you are getting great results within your fitness journey. Sounds cool, right? What’s awesome is we have 2 Rockstar guests for you in episode 101, Katie Coles and Mark Springer, Owners of Avatar Nutrition. Avatar Nutrition is the new generation of nutrition and one of their main purposes and missions behind the company is to end the obesity epidemic. Avatar Nutrition is a personalized nutrition algorithm that makes changes to your Macronutrients (protein, carbohydrates, and fats). Here’s what you will learn on episode 101 with Katie and Mark: Why it’s so important to stay focused on the mission, your why, and purpose behind your business How a personalized nutrition algorithm compares to an actual online coach, RD or nutritionist and helping someone in their fitness journey and what are the pros and cons The huge vision Avatar Nutrition has going forward to end the obesity epidemic How flexible dieting saved Katie’s relationship with food and this created a passion to get it out to the mainstream   Make sure to listen to our NEW Podcast Episode with Katie and Mark and see the complete show notes here https://dynamicduotraining.com/podcast/episode-101-the-next-generation-of-nutrition-and-ending-obesity-katie-coles-and-mark-springer/  

  Mark S A Smith is the author of 13 popular books and sales guides and has authored more than 400 magazine articles. He is a genuine Guerrilla Marketing guru, co-authoring three books with Jay Conrad Levinson, and is a certified Guerrilla Marketing Coach.   A renaissance man with many talents, Mark is passionate about leadership, team building, teamwork, sales, and marketing. For over twenty years Mark has served as a strategic advisor to corporate leaders and executives all over the world who must develop the best way to bring in the right strategies for successful growth and sustainability.   What makes him different is he brings a holistic view of the business instead of solely focusing on one aspect and ignoring the impact of decisions on the rest of the organization   How to Get the Most Out of 2018 Tapping into the top five trends to grow your nonprofit: Omnichannel – allow members to consume you anywhere and every way How the growing economy creates monetary opportunities The impact of higher unemployment on your volunteer force and how to pivot to get all you need New leadership demands: what's changing and how to stay out front Turning unrest into peace: how to divorce your organization from the media's promotion of outrage Interview Transcript   Hugh Ballou: Greetings, it's Hugh Ballou and Russell Dennis on this version of The Nonprofit Exchange. A dear friend who I see too rarely, we have been talking virtually but now we are together. I said, Why don't we talk about some things that are on your radar?” Mark S. A. Smith, welcome to The Nonprofit Exchange. Mark S. A. Smith: Such a delight to be here. Thank you, Hugh. Hello, Russell. Hello, friends on Facebook. Welcome. We have a lot of interesting things to talk about because 2018 is going to be an astounding year. You might be listening to this in 2020 or 2024. But you know something? What we are talking about today will probably still be issues even in the next five to ten years. Or opportunities, as the case may be. Hugh: We record messages that are timeless. But you're right. We are turning the page into 2018 as we are recording this. If you are a regular listener, you know you can go to thenonprofitexchange.org and see the video versions of these. But you can go to iTunes and download the audio there. Mark, you are in a series of really powerful interviews we have done over three years. We are starting our fourth year of these great interviews. What we endeavor to do more often than not is find people that have business expertise. Let's install that particular business expertise into the charity. It might be a church, a synagogue, a membership organization, or a community foundation, but it's some sort of philanthropic work that we're doing. Before we get into the subject matter, which I'm going to hold off in giving people a title, tell people a little bit about Mark Smith and why you are able to talk about this topic today. Mark: I help people sell complex, expensive, high-consideration things as fast as humanly possible. I am an electrical engineer; therefore, I am a systems thinker. I have recovered. I don't sell or do engineering very much, but I do help people sell complex things. That is where you have multiple people involved in making the decision. Each person has a different view of what creates value and what we need to do. Sounds an awful lot like this nation, doesn't it? Hugh: Yeah. Mark: How do you round up consensus? How do you have people go the same way? Just like when you're working with nonprofits, herding cats is what we have to do. It's the same thing when you have to sell expensive technology. What I'm doing here is applying all the things I have learned about selling very expensive things to the world of nonprofits. It's absolutely identical. I, too, do work with a nonprofit. I am on a board here in Las Vegas where I live. I've been involved in nonprofits throughout my life. I understand, and I am delighted to share with you my business acumen. What I like to tell people is a nonprofit is not a business plan; it's a tax status. Hugh: That's not a philosophy, no. You're very active on social media, especially Twitter. You put out little short memes with a few words on it. I gotta tell you, they are very thought-provoking. They help me focus on what's important. Mark: I am honored that that happens. Thank you. Hugh: There has been this coincidence of you tweeting on the things we are actually talking about. Sometimes simultaneously. I find that to be fascinating. Mark: The issues are the same. Whether it's nonprofits or the for-profit world, the issues we face are frankly identical. Hugh: I laugh when business leaders say, “That might work in the church.” Mark: Or the other side is that the religious leaders say, “That might work in business, but it won't work in the church.” Hugh: If it's true anywhere, it's true everywhere. Mark: We're humans working with humans. Hugh: I think we've stalled long enough in telling people what the topic is. What is the topic? Russell wants to know. Mark: All right, Russell. You're ready? Today's topic is how to get the most out of this year, which happens to be 2018. We are going to talk about five trends that are going on that you need to know about as the leader of your nonprofit to stay ahead of the game, to grow, and to prosper heading forward. Some of the things we are going to talk about are technology, and some of the things we are going to talk about are psychology. Hugh: Say that last sentence again. That caught me off guard. Mark: Don't you know I do that to you? And you do the same to me when you're speaking. Some of the things we are going to talk about are technology, understanding the technology that nonprofits have to be embracing and keeping track of and staying up with. Some of it happens to be psychology, what is happening in the general zeitgeist of the world and how they impact nonprofits. Whether you think they do or not, they do. Your constituents, your members, your flock all are impacted by what they see in the news and what they experience with retail and what happens in the business world. They carry those attitudes and insights into your organization, whether you want them to or not. We have to manage that. We have to deal with it. We have to capitalize whenever possible or perhaps even neutralize it in some cases. That is what I mean by psychology. Hugh: Absolutely. I think we're guilty in any discipline. I know in the church, I have had people say to somebody, “You're so heavily minded you're no earthly good.” We all live in the reality of today. I can say that I served the church for 40 years and probably got to that space myself. I put in very carefully numbered bullet points. I noticed that I numbered them wrong. Our first one is, Omnichannel. Speak about that. Tell us what that means. Mark: Listener, have you ever had the situation where you were multi-tasking, perhaps watching television and checking your telephone for messages or tweets, or maybe even reading the news story you are watching on TV simultaneously to see what if you were seeing on TV made sense to other news channels? That's omnichannels, my friend. The reality is we are multi-screening. You are getting information from multiple locations at all times in all ways. What this means to nonprofits is you have to be able to bring your message, bring your service to your constituents in every way that they consume information. Just by a show of hands, who here has for your organization—I see ten fingers there, well, eight fingers and two thumbs. Sometimes I am just all thumbs. Do you have an app? Do you have the opportunity of having your constituents consume your services, your podcasts, your sermons via a dedicated app that would alert them when something new becomes available? Are you using the technology to your benefit? Now if you're doing that, fantastic. Just stay with it. You have to understand we live in an omnichannel world. We are consuming many things in many different ways. Mobile apps, partner locations, maybe figuring out other locations for people to access your services. Where do your constituents go that you can have a kiosk or a corner or something like that where people can plug in, enjoy, take advantage of, be reminded of, contribute to, consume whatever it is you are bringing to the marketplace? Since I don't know what your nonprofit is, we are spraying and hoping you will catch a couple of ideas here. The concept here is you need to be everywhere that your people are every time you possibly can be. The reality is if you are a church, people are carrying around a sermon in a box in their mobile device. Chunk things up into five-minute pieces to give them a chance to remind, refresh, and renew. If you are supplying educational elements, keep pushing out opportunities for people to learn and to refresh. If you're supplying the opportunity for people to volunteer, if they are standing in line or waiting at a traffic light and they can pull out their mobile device and contribute something in some sort of thought-provoking way, let them do so. That is what we mean by omnichannel. Take advantage of that any way you possibly can. Hugh: You said something about five-minute segments. Remind, refresh, and renew. Talk more about that. Mark: What I am finding is short segments of content that provoke people. Just like when you read something from me on Twitter, you're telling me that I am inspiring you, I am provoking some thoughts, I am causing you to think about new things, maybe connect some new dots. The bulk of those tweets are 140 characters. There are some that run a little bit longer thanks to Twitter's new length limits, but it's a very short little boom. It's a little thought bomb that goes off in your brain. As a nonprofit, most of us are in business to inspire, to have people live a better life, to improve their condition, to stay on target, to stay on task, to stay on the straight and narrow. That requires constant reminders. Another thing to keep in mind is if you are a church or an organization where people come to see you once a week or once a month, it's not enough. They are bombarded by all these other messages and all these other counter-messages that they may not wish to consume. Our job is to remind them there is another way of thinking. There is another opportunity. There is better potential for them that they have already volunteered to be a part of. If we can chunk our messages from a text standpoint, an audio standpoint, or a short video standpoint to refresh, renew, and remind themselves there is a reason why those of us who have a spiritual practice, it's a daily practice if not hourly. Hugh: Yes. Oh yes. That is so important. I think the biggest flaw I see in organizations is when people say, “They should know better because we told them that,” but they told them that in 1903, and you have repeated it since then. Mark: Here's the problem, friends. You may have told them that, but the other side has told them their viewpoint a thousand times since the last time you said it. Hugh: Omnichannel. When I first saw that, I thought it was a piece of software. Mark: It's a concept. Hugh: Russell is taking good notes. Do you want to weigh in on this omnichannel touchpoint? Mark, what you're doing is top of mind marketing, isn't it? Mark: Yes. Let's just keep reminding them what they have asked us to remind them of. Hugh: Russell? He's been very polite. Mark: He's been quiet. He's been smiling. He is giving me thumbs up. He is also muted. Russell Dennis: Not anymore. We can quickly fix that. Greetings and salutations, Mark. Good to see you again. It's been a while. I was just typing that when you're out there in multiple places, where your people are, and that's the important thing to figure out is where your people are and getting out there and getting in front of them. We are in a short attention span society. If you're not out there online, you're left behind. It's not a fad. It's not a trend. It's here to stay. Hugh: I think it's also in person. Where do your people hang out? I am hearing omnichannel as virtual as well as live. Mark: Absolutely. Physical, too. It has to do with digital signage for example. Digital signage is omnichannel. Most of us have digital signage in our houses of worship. As I pointed out, as we talked about, where are they? Let's see if we can put a digital sign in the places our people hang out to remind them of the messages they have agreed to consume. Hugh: Great. We are sitting at the top of 2018. Our market has been growing. There are over 100 companies that announced employee dividends and financial expansion of programs since the tax bill passed at the end of 2017. There are all kinds of energy and economy. Talk about how that benefits the nonprofit sector. Mark: We are sitting at the highest consumer satisfaction index of all time. I think it's for a number of reasons. One is that a lot of people are feeling good about themselves again. A lot of them have hope for the future. A lot of them feel that in spite of the noise we hear on the mainstream news on a regular basis, locally, the communities are doing well. More people have jobs. More people are feeling good about what's possible. Certainly my business has been substantially increased. As you pointed out, yours has, too. A big part of it is that my customers are looking forward to growth and therefore investing in opportunities to grow. As a nonprofit, you can plug into this feeling of goodness and growth, asking for more than you could ask for in the past. Requesting more. Asking people to donate more for perhaps more time, for perhaps a higher level of investment of themselves into the organization. When people are feeling good, they say yes to opportunities because it doesn't feel like it's so heavy. Doesn't feel like it's such a burden. When we feel depressed, it's very hard for people to feel good about themselves. Hugh: What makes people say yes? I still have lots of- Mark: What a great question! I'm so glad you asked it. What makes people say yes is because your request is in alignment with their personal identity. Hugh: Whoa. Whoa. Hey, Russ. What does that trigger with you? Russell: It's everything. Everything revolves around relationships now. People are starting to figure that out. It doesn't matter what business you're in. Now you have to build relationships. In the old days, you could just blurt out at people. There were very few places for them to get a message. They were fed by three big networks messages. Think about Henry Ford when he talked about the Model T. They can have any car they want as long as it's black. Now people have choices. They have different avenues for expression, and they have short attention spans, so you have to resonate with people because they will look for another cause if they feel like they're not being romanced, so to say. You have to keep that connection some type of way, keep thanking them, showing the impact they are making, and staying with it. People change. There are so many different causes that they can get involved with now. It's like anything else to maintain that brand loyalty as it were. You have to connect with your tribe. People want a sense of connection and a sense of accomplishment. Younger people coming into the work force want to do work that matters. Hugh: Mark, I pinged Russell because many times in the interviews, he helps us remember that whether you are creating board members or talking to donors, we have to think about what it is they want, what they are interested in, what they want to achieve. There is a messaging piece that I was honing in on here. How do we form our message so that we do connect with that like-minded person? Mark: Let's get back to the concept of personal identity. People buy things to support their identity or they buy things or engage in things to help them transform their identity into a new place that they desire to be. It's a really important concept because all sales, all marketing, all recruiting, all conversion happens when a person sees their identity as that which you are offering as a nonprofit. That transformation for a lot of people is where we're heading. As people grow, they transform. As young people go from high school to college, they are transforming. As they go from college into the workforce, they are transforming. That personal identity, how you view yourself and how you want to be viewed by—Russell, you said it right on—tribe, we choose our tribe, and the choices that we make determine our tribe. In a model I generated, those tribe decisions are mission-critical. The reason why is because if you make the wrong choices, the people who you might like may just stop calling you back. They may quit inviting you out. They might leave you on your own. That is where that personal identity comes into play. Identity happens way more than people realize. A great example of that is sports. Russell, do you consider yourself a sports fan? Russell: I love it. Mark: Do you have a team? Russell: Believe it or not, I root for the Cleveland Browns. Mark: Why the hell would an intelligent man like you root for such a losing team when a logical person would pick a winning team to root for? Russell: I grew up there. Mark: That's it. Yes! Russell: I haven't lived there in almost 40 years, but home is home. Mark: It's part of your core identity. It is so deeply ingrained in your core identity that I couldn't get you to wear a piece of the opposing team's clothing even if I paid you. That's the power of identity. When you as a nonprofit can tap into that identity, that is where you really get that brand experience where people refuse to go anywhere else. But you have to keep reinforcing that identity. You have to make sure that the identity you're offering continues to shift in the proper direction over time. In a growing economy, people have the opportunity of transforming that identity. That is really where we're going with this #2 point. It gives you a chance to perhaps recruit people, to bring people in that you haven't been able to before because they couldn't afford it, they didn't have the bandwidth or the money. Now they do. Get very clear. A definitive passionate, audience that wants to be recognized or grow their identity can help you as an organization grow. Get really clear. Get really sharp about this. It will have a massive impact for you in 2018. Cool? Hugh: Absolutely. You talked about unemployment. The numbers show the unemployment figures at the end of 2017 were the lowest they've been in forever. But there are still people who are underemployed. They are not unemployed. Mark: In fact, those underemployed people are the ones who are perfect for volunteers. The reason why is as humans, we like to feel we are making a difference. Russell, you pointed that out in your last comments. We really want to feel we are doing good, like we are making a difference. When we are underemployed, we don't have that feeling that we are living up to our potential. People in that environment can be invited to fulfill that in a nonprofit volunteer situation. Whether it's an executive who has moved to a lower position, who needs to give back and still provide that strategic input, that is the perfect person to capture for example. Or perhaps the stay at home mom who went back to work because her kids are out of the house, and as she enters back in, she doesn't go back in at the top level where she started. She comes in at a lower level, and she needs to fill that gap of feeling good about herself until she can be promoted up to that new level. That is the opportunity that you as a nonprofit can fill. Hugh: You spoke earlier about working with a local nonprofit in Las Vegas where you live. Why did you say yes to that? Mark: For two reasons. One is that I have an expertise that the association can use. I can benefit the association in quite a few different ways because of my deep history in business and as a professional. And that association also allows me, it feeds me in that I get to be with other people whose future is my history. And so I get a chance to give back because if I rewind my life back 30 years, I was the person who is being served by the mentor who I get to be today. Hugh: So your input is important to shaping the future of their work. Mark: And they have a desire to have a similar experience that I had. When we are looking for a mentor—this is probably one of the best pieces of advice I've had in my life—look for somebody whose history is your future. They can help you plot the path. While your paths will be slightly different, the fundamentals won't be that far off. Hugh: Russell, did you capture that last comment? Russell: I did not. I was in the process of typing that. I don't type very quickly. This is interesting because what we are talking about, there are three things that a nonprofit needs: time, talent, and treasure. We get obsessed with the money and forget about time and talent. Especially with people who are underemployed, people have different motivations for joining you. When you are clear about what it is you are trying to do and you have inventoried all of your assets, which include time, talent, skills, knowledge, abilities, those are all assets to the nonprofit. When you can leverage that and get other people, it's like money in the bank because you go out, build relationships, get sponsors for media, cash sponsors, you go out and get people to contribute pro bono services, you bring students in, you bring professional firms. There is a number of different ways to approach getting pro bono talent. When you are clear on who you are and what you need, you can offer these folks some time. Maybe they need to build their portfolio. Maybe they are tried and just want to give back. Maybe they are entering the workforce. Maybe they are underemployed and want to have some projects and creations of their own. You can set that table. When you are clear on what it is that people want, then they will come support you and always keep evaluating, putting challenges out there for them to stretch and grow and invest in their learning. They have reasons to stick with you in that case. Mark: Right on. I think if you get the time and talent right, the treasure follows automatically. The reason why is what is money? It is a reward for doing what others want. It's canned labor. That's another way of looking at it. Russell: Canned labor, but meaningful labor. It's not standing at a copy machine all day or making coffee. It's actually creating things. Building your social media strategy, writing policies, it's endless the number of things you can find volunteers to do that they can help support the organization with. Yes, even fundraising. The sky's the limit. It's up to your own creativity and finding out what moves people. If you don't have any money, you probably have time and talent. Mark: They probably know people. There is also ways of converting some of that talent and some of that time into treasure. If you think about it, that's what a business does. It converts time and talent into treasure. As a nonprofit, you can do exactly the same thing. Your tax status permits that to happen. Hugh: Money is also reward for providing value. Russell: Another way to keep score. Mark: That's universally agreed upon. Hugh: Back to where we were talking at the beginning of this interview about installing sound business principles into the charity. I am using charity purposefully here. Sometimes we use the word “nonprofit,” which spins us into this scarcity thinking that we can't generate a profit. But the profit is what pays for the philanthropic work of the organization. Like you said, it's not a business plan. It's not a philosophy. It's a tax classification. It's really tax exempt work. We are getting a lot of useful content today about leveraging what is around us instead of getting stuck in our hole, our silo. You ready to move to the next one? Mark: Let's do it. I think we have beaten that topic up a little bit. I like it. Hugh: #3 is New Leadership Demands. What is changing, and how do we stay out front? I remember years ago people were hiring the motivational speaker. Give me rah, rah. Then people left the room, and it was over. People aren't hiring motivational speakers. They are hiring people with solid, executable content. What has changed in the leadership segment? What are you thinking about? Mark: What I see is the informational speaker and the inspirational speaker versus motivational speaker. Let's talk about that, and then we will go on to the topic of what's changing with leadership. The difference between a motivational speaker and an inspirational speaker is very simple. If we go back to Maslow's hierarchy of needs, which I see as a fundamental to everything we do, both within the charitable sector as well as the business sector, those two lower levels of Maslow's hierarchy is physical needs and then security. Within those two levels, you can motivate people. It's basically a pain-based motivation. Once we get to that next level, where you have love and self-esteem and move up to self-actualization, that is where inspiration comes into play. If people are in pain, you have to motivate them. If people are out of pain, then you can inspire them. Don't try to be inspirational when people are hungry and tired and scared. That doesn't work. It's just frustrating. They will nod their heads and do what they need to do to get the hell out of your view so they can go get some food or drink or get warm or whatever. We have to help people to the third level of Maslow because we can start to inspire them. With that in mind, from a leadership standpoint, understanding your leadership is 100% contextual on the state of the person and ultimately the team you are working with. That is not a blinding flash of the obvious to most of you, but we have to be reminded of that because a lot of the traditional leadership mantras that we hear are being offered from the top of Maslow's hierarchy. But a lot of the people we are leading are way down the hierarchy, and we have to remember that sometimes it's just giving them a shoulder to cry on and taking them out to lunch or buying them a cup of coffee. Sometimes that's all the leadership they need in that moment. Hugh: Wow. That's a paradigm shift. What are you thinking there, Russ? You're smiling. Russell: The thought came to mind that great leaders always have a pulse on where their people are because no two people are in the same place. Cookie cutter leadership doesn't work. It may have worked back at the turn of the 20th century. Mark: It didn't work then either, Russell. I hate to tell you, pal. It was just misreported. Russell: They pushed it as, “Get in line or go work somewhere else.” That doesn't work. Good leaders build other leaders around them because that is what makes a great leader look good. We have people who can execute or delegate, and she is doing high level functions. Sometimes you have high performance individuals, and it is really hard- When they have been driving the train for a long time, it's really difficult for them to take a step back because they have their vision and it's their baby. They have a hard time taking a step back. This is a way that leaders have to grow in. If people in the work force today aren't getting work that means something. They move on. Do yourself a favor and let other people help you. Mark: I think some of the things we have to take a look at from a change standpoint is that our millennial culture, I raised five millennial children. None of them live at home. I consider myself to be a success. They don't put up with ultimatums. They'll just raise their middle finger and wave you goodbye. The reality is that leadership is now voluntary. It was always voluntary, but it is now absolutely voluntary. People accept leadership voluntarily, and a charitable organization has always been voluntary. We have to become a whole lot more about what it is you are looking for. How can I help you grow? Where do you want to go? What do you need to help you get there? Can we help you get there? It's a lot more of the let's figure out where our tribe needs to go and bring that to them. I think that's a big component of that. We raised our children to question authority. The boomer generation just shakes their head at, “I am a boomer.” Friends, I raise that generation. I raised them to be what I wanted to be when I was their age, which was to have the freedom to ask questions and to push back and to say, “That's really stupid. Why do you make that?” When I was a kid, that earned a slap across the face, so I learned to shut up very quickly. I let my kids ask those questions. They were hard questions. They made me a better man. That also means that military-style, authoritarian leadership will no longer work. It has to be collaborative leadership. But how do we do collaborative leadership? It's simple. You just ask people. You ultimately, as the leader of your organization, get to make the decision. But you also have to have that collaboration of how we arrive at the destination. You are responsible for the destination. Then we collaborate on how we get there. That is what I see as being a major shift. Hugh: That is especially true in nonprofits because we do attract some capable people. We think we have to do it as a leader because we don't want to bother them because they are volunteers and are busy in their real life. Mark: But wait a minute. That's why they showed up. Hugh: You got it. I set that one up good. You are really interfering with what somebody has come to do. That seems like a logical step. That is a huge problem. Bowen leadership systems, Murray Bowen as a psychiatrist created this whole leadership methodology. He talks about that as overfunctioning, and the reciprocity to overfunctioning is underfunctioning. Especially when you have a boomer, me, and you are talking to millennials, like the editor of our magazine, Todd, he says, “Tell me where you want to be, and let me get there.” Nobody likes being told the steps or micromanaged. Millennials like it the least of any particular segment. You raised five millennials, and I don't see any wounds on your body. Mark: I'm a much better man. Before I raised my five millennial kids, I was a jerk. Hugh: Really? Mark: Yeah. I knew everything. I knew exactly how to do it, and I could prove it. If you didn't believe me, I'd write a book about it. Hugh: Wow. Russell: I just sense that pleasure. Here's the thing, Mark. They'll be back. They will bring more with them. Mark: It gets better and better and more disruptive and more delicious. Hugh: There is a story of this conductor, who are known to have healthy egos. This conductor walks into a restaurant with a whole bunch of musicians. One person stood up on one side and said, “All conductors are jerks.” Whoa, it got back like this. On the other side, somebody stood up and said, “I resent that comment.” The conductor looked at him and said, “Hey, are you a conductor, too?” He says, “No, I'm a jerk.” I love it. That is a reframed lawyer joke. Mark: The way I like to talk about conductors is conductors are highly skilled. They can play every instrument in the orchestra. They can. But not well enough to make a living. At the end of the show- Russell: [hard to hear] tickets on the train, either. Hugh: The model you are talking about is the conductor doesn't tell them step by step what they do. The conductor says to the oboe player, the violinist, whatever, “This is the effect I want. This is the result I want.” They guide the process. I wanted to segue into that as a model for what you're talking about. That has been a consistent model over the decades. If we look at that in today's world, leadership as a profound influence and not the micro that you are talking about, do this, do this, do this. It's a nuance of engaging people and empowering people to raise the bar. That is the essence of transformational leadership really: building a culture of high performers that respond to you. So we are looking at what has changed, but also we are looking at- Earlier, you talked about transformation. There is a transformation in ourselves before we can be effective. How does that link with what you're talking about? Mark: Everybody that I know is going through some form of transformation. They are trying to add a new skill. They are trying to let go of an old habit they see as not serving their life any further. They may be going through a spiritual revolution where they are going from less spiritual to more spiritual. It may be that they are looking for a physical transformation, losing weight, adding muscle, adding health. Those transformations always trigger help because if we could do it on our own, we already would have. We need either skills or encouragement or motivation or a tribe to travel with. Let's talk about transformation for just a minute. Let's have some fun with this. I know that we bumped into this idea with me before, Hugh, and let's talk about it. I think we have enough time. It's fairly simple. There is fundamentally a seven-step process in transformation, plus a step zero and a step minus one. Hugh: Ooh, do tell. Mark: The first half is about belief. The second half is about knowledge. The difference between belief and knowledge is a manifestation in the physical world. Step minus one is where they want to go. The transformation they want to enjoy is invisible. They can't even see it. It's not even within their awareness. It's not even possible. They hadn't even thought of it. If you as a charitable organization want to find new people, part of your job is to message the outcome that you deliver so that we can take people who don't even see that as an opportunity into something that is within their awareness. Then step zero, going from invisible to impossible. That is the step zero. “Oh, that's impossible. I could never do that. I don't see how that's possible.” That's step zero. The transformation starts when they go from the impossible to, “Hmm, that could be possible. You have 1,000 people in this community that has made this transformation? Wow. You've helped that many people? It is possible.” Then the next step is to probable. “I could probably do this. I don't have all the answers. I may not know my path yet, but this is probable. I could do this.” Then the third step moves to inevitable. “This is going to happen. Oh yeah. Let's make this happen. Yeah.” Hugh: Minus one is where- Mark: Minus one is invisible. Don't even know it is possible. Hugh: Invisible, okay. Mark: Step zero is impossible. Hugh: Okay. One is possible. Mark: Possible. Hugh: Two is probable. Mark: Two is probable. Hugh: And three is? Mark: Inevitable. Hugh: Inevitable. Mark: This is going to happen! I know how to do this. Whoo-hoo. Help me! Hugh: Russell is scribing these. He is capturing the brilliance. Mark: That is all based on increasing belief because the transformation has not yet become physical. It is still nonphysical. It is thought and that is about it. Now we cross over from the nonphysical to the physical, from the belief to the real. Step four is real. We go from inevitable to real. From real to sustainable. I did it! Okay, let's do it again. I can do this any time I want. That is sustainable. Then we go from sustainable, step five, to step six, which is normal. “I do this all the time. Sure, of course. This is just part of my life.” To step seven, which is historical. “I have always done it this way.” If we are working people through a transformational process—invisible, impossible, possible, probable, inevitable, real, sustainable, normal, historical—if we can run people through that process, we can help them through their transformation. But here is the most important aspect. You can't take somebody from impossible to inevitable in one step. That is the psychology of leadership. We have to help them move from impossible to probable. We have to help them move from probable to inevitable. We have to help them move from inevitable to real. Each one of those is a step, as we are crossing this chasm, let's call it a river, from impossible to historical, going from one side to the other. Every step is a slippery rock that as they reach out with their foot, it may feel like, “I don't know if I can do this.” Our job as leaders is to hold their finger, hold their hand. When I was raising my kids, we would do- Kids were going across the rocks, and I would give them a finger. All they had to do was hang onto my finger. That was enough to give them the confidence to take the step. My kids would grab that finger, and we could move them. You did this, right? Russell, you've done this with your kids? Just give them a little bit. We don't need to hold them in an airman's grip. We just have to give them a finger to hang onto. Russell: If you don't want to carry them, you just give them that finger. It's just enough. Less is more. Mark: That's right. Russell: More, and they step into that power. That's what it's about. Whatever the mind can conceive and make itself believe, it can achieve. That is a process. Mark: You just summarized those seven plus two steps in three words. Hugh: Thank you, Mr. Hill. Mark: Yes indeed. Hugh: That is a profound statement. I was really small, walking with my father, and I would hold a finger. One day, he put a stick there. I kept going because I thought I had his hand. All I had was a stick. When I grew up, I repeated that dirty trick with my kids. Russell: Interesting. That brings a story to mind. I don't know how old I was. I may have been two or three. My mother used to carry me upstairs at night. One night, my mother and sister brought me upstairs, stood me in front of the crib, and said, “Okay. Climb in.” I was baffled. I didn't do anything. So they said, “Okay, well, you will climb in or you will stand there all night.” I don't know how long I stood there. It turns out they were there watching. It wasn't very long. I climbed up in that crib. Oh, okay, I got to do this or it's not going to happen. I never forgot that. I don't remember much that happened before five. As five gets further away, it's harder to remember. But that was something I never forgot. A lot of life is like that. Hugh: That's a great story. That's a big leadership example. The last one of your five topics for the year is Turning Unrest into Peace: How to Divorce Your Organization from the Media's Promotion of Outrage. What ever are you talking about? Mark: I'll be delighted to share with you. With the broad spread availability of Internet and mobile devices, the media got out of the news business. The reason why is the news was available any time I chose to pick up my mobile device and read the news from dozens of news sources. The fundamental TV news made a wholesale pivot from news to opinion and entertainment. You watch any of the mainstream news, and they are not delivering news. They are delivering opinion, not even fact. Opinion. It's the mot hilarious thing. I watch the news now and laugh. I just see it like reality TV. It is completely scripted. Whatever side they are trying to spin, that is what it is. What is truth? I have no idea anymore. The challenge is to get people to watch opinion, you have to generate outreach. You have to go to them and say, “Isn't this awful? Isn't this unfair? This is just horrible. I can't see how we can even stand doing this anymore.” That outrage allows you to sit through the commercials for pharmaceutical products that help you fix the outrage. You laugh because it's true. Russell: Okay. I'm going to give up on MSNBC and Fox Noise because- Mark: It is noise. I can watch Hannity once a week. It's the same story every night. Here's the thing. First of all, you have to realize that the news business is really to do one thing. It's not to inform you. It's to sell advertising. Pure and simple. Their job is to create a community that wants to be outraged a specific way and to promote that outrage so people feel like something is going on. They feel like something is important, but the reality my friends, in the world of charitable organizations, we are offering another way of thinking, another way of feeling. We are offering perhaps a better feeling. I feel way better after going to church than I do after watching the evening news. That circles back to our #1 point today, which is omnichannel. We have to keep providing our message on a regular basis daily, hourly, morning, evening to counter all of the outrage that people are being fed from a commercial stream. Go ahead. Carry on. What do you have in mind there, Hugh? Hugh: Wow. Wow. Where people are getting into an emotional state, not a factual thinking leadership functioning state. We are going into this- Mark: Facts don't matter anymore when it comes to mainstream news. Hugh: We are in a post-truth culture. Mark: We are. It's really interesting. Hugh: When we hear comments like “The media lies,” I watched purposefully for several weeks reports on CNN, CBN, PBS, and FOX. They were all different. Mark: Yes. Hugh: Which one is lying? Or are they all lying? Mark: None of them are lying. They are presenting their vision of what they want you to believe. Facts have nothing to do with anything. They believe It's true. They look you square in the eye through the camera and make you believe they believe it. And they do. Otherwise they couldn't deliver that. Let's circle back to the facts that matter to us and to constituents of our organization. That is what we need to focus on. Hugh: We have eight minutes. We are wrapping up here. That is a perfect segue, thank you. Go ahead. Mark: The whole point is we need to make sure our message and our leadership and our direction and our transformation is absolutely clear. We have to supply at last some rational thinking. When people say, “Did you hear what the news was?” and the answer is, “Do you believe it?” Let's focus on something you can believe. So help pivot people away from buying into something that we keep illustrating over and over again is patently not in alignment with the belief and the worldview that we wish. We have to substitute the worldview that our tribe wishes to see. Personally, I see humanity as growing, expanding, being bigger-hearted than ever before. The people in my environment, the people I bump into, including the folks on the street that ask me for help, are doing better than ever before. My job is to elevate, not to outrage. I think that there are way more people that have that desire than ever before, and perhaps that is why Cartoon Network has a higher rating than CNN. It's because we want to feel good. We don't want to feel bad. As a charitable organization, bringing that good news to people and giving them things they can do to feel better about themselves and to improve humanity and their tribe is probably the ultimate thing we can bring to our constituents. Russell: To piggyback on what you are saying, out of my own experience, I was an advertising salesman for WGAM TV while I was in college. Our most expensive segment was the news slots. That supports that, and that has been the case for quite some time now. That was a few years ago. The other thing is people are looking to raise their level of consciousness. The media likes to exacerbate this idea of taking sides. One thing that happened to me as a result of my experience working with the Native American tribe is I became nonpartisan here. The people who were going to help you may be on other sides of the aisle. I was literally more interested in what was going to benefit my tribe than what fit their politics. What we are talking about really is raising our level of consciousness. Me, for the most part, I am tuned out on those things. I can't watch that stuff. If I do happen to catch glimpses of it, nobody lives out in the middle of nowhere. There are a few people off the grid, but you will be exposed to some of the noise. Does that noise matter? We are trying to raise our level of consciousness, and there are people who need our help. When that is the driving thing, you learn how to play nice with others, but you don't always have to agree on everything, except who is it you want to help and how can you get there. You leave all of the ego and crap on the doorstep and come together to perform missions. I'm glad you haven't said anything that made me so angry I have to go put a nasty tweet out. I have a Twitter account, and I don't want to use it. Mark: Personally, I have a positive posting policy. If I can't say something nice, I write them a letter and burn it. Russell: As long as you don't mail it. That could get you in a lot of trouble. Mark: If you are writing a letter to somebody or emailing, don't ever put their address in there as you write it. Otherwise you might by accident send it. Guilty as charged. Russell: It's good to write letters every once in a while. Us old guys write letters. You can write letters. Younger folks out there, it's a dying art. It's fun. Mark: It's great fun. I wrote myself a letter on New Year's Eve. It's part of our ritual: to write ourselves letters. Just to wrap up this segment, an important component is what is your core principle as a leader? Focus on activities that will provide you and your tribe with those core principles. My core principle is freedom. Everything I do needs to lead me to freedom. Freedom of thought, freedom of action, freedom of life. From that freedom, I can serve people. I can't serve people when I am not free, from a thought standpoint, a physical standpoint, a monetary standpoint. I use that personally as my filter. If I am going to do something, say something, act in some way, the question is: Does this bring me closer to more freedom, or does this take freedom away from me? It could be anything else. It could be oneness. It could be joy. It could be love. It doesn't really matter. All of them boil down to the same situation anyway. Just that word resonates with me. I think ultimately that is what we need to do to bring peace to our tribe. Hugh: Our strategy is Russell and I encourage people to be very clear on their vision while they are doing something. As charities, we have to be very good at defining the impact of our work. What difference will it make? We achieve all of that through setting powerful goals. You have given us a whole lot of ideas for goals. Russell mentioned him before, and he is looking behind you there. Behind you is Henry Ford. Mark: Actually that is Edison. Carry on. Hugh: They lived next door to each other down in Fort Myers. Mark: They did. Hugh: Edison said he never failed; he just found 9,999 things that didn't work before he invented the light bulb. Ford said obstacles are what you see when you take your mind off your goals. They are both dedicated to excellence. They were both in tune with the culture and trends of their day. Mark Smith, I don't know a lot of people with two middle initials. Mark S. A. Smith. You stand out from all those other Mark Smiths. Mark: That is the reason why. That way you can find me on Google. Hugh: They are impostors. Mark: No, they are not impostors. They are just hiding. Hugh: This is really rich in content. Russell, do you have a closing comment you want to leave here? Russell: There we are. I'd like to thank Mark for the thoughts he dropped. You are preaching to the choir. It's about who you are. That's a message that has to ring true. Who are you? Who are you, and that way you can connect with the people that you are aligned with. I love the alignment. Great comments. Notes in the SynerVision Leadership webinar notebook. I have the notes, Hugh. It will also be out there for folks to look at. It's a great day here. Hugh: Super. Mark, thank you for being here and sharing your wisdom with us. Mark: Delightful to be here. Thank you for the invitation to do so. We have plenty more in 2018. Learn more about your ad choices. Visit megaphone.fm/adchoices

CLFS 15th June 2017 - Mark- Why is the supernatural important? by Podcast by CLFS/GIPM

Nick Raithel Jaime Jay welcomes Nick Raithel to today's podcast. Nick is a missionary. Not in the religious sense. He is in the business of promoting business leaders' accomplishments by helping them publish a professional book telling their incredible stories. Why Books? You need to separate yourself and stand out from the noise and clutter. You have to do something to position yourself sway from all that. A book does just that. It's also a way to leave a legacy and be more than just a business owner. What you have with a book is a business card that people don't throw away. It opens up new opportunities you would not otherwise have. Listen to #srtp podcast to learn how you can have your own book created in 7 hours http://www.stopridingthepine.com/nick-raithel/Tweet This A book takes your insights, your knowledge, your unique experiences in your niche and puts them in tangible form. It's easy to find, easily accessible and presents the writer as an expert.  "I'm on a mission to get the recognition that business leaders deserve for their achievements." - Nick Raithel Where to Begin? The first step is to begin by thinking about what it is you specifically within the next 6 months to year-and-a-half want the book to lead to? Do you want a speaking career, consulting career or want it to bring in more leads for your current business? Work backward from your goal and figure out what steps you need to absolutely kill your goal. 7-Hour Book Keep in mind this does not include writing, publishing and marketing in 7 hours. That would be a bit daunting. You might get a half page book. What it really means is the client only has to spend 7 hours of their own time on it. Nick is a marketer and not a writer. A pure writing service like a ghost writer could not be a business. Nick's company makes your book sound good and every word counts. He focuses your book's goal achieving the objective you desire. Your book needs to have real world application and not just sound pretty. If you want to learn how Nick Raithel does it, then make sure to listen to this episode.  You can also check out his links below to learn more about him.  He welcomes all questions, comments, and inquiries! Don't forget to mention you heard about Nick on Stop Riding the Pine:-) ContentCorps Here are the highlights of my conversation with Nick Raithel if you are in a hurry: Who is Nick Raithel? (4:50 Mark) Why is it important for an entrepreneur to have a book? (5:55 Mark) What is the 7-hour book? (11:08 Mark) What happens in that 7 hours? (14:25 Mark) What's the first step? (23:00 Mark) Nick's breakaway moment (34:04 Mark) Special Mentions: (iTunes Shout Out) Denny Krahe Thank you to Alexis Ayala, for providing the incredible editing for this episode. If you need to find an audio editor, send Alexis an email at lex@slapshotstudio.com. Thank you to our awesome sponsor, Interview Valet, A professional concierge guest booking podcast service for hosts and guests - You be the Guest, We do the Rest! Check out their new website at InterviewValet.com. This episode of Stop Riding the Pine Podcast was brought to you by DoneForYouWP.com Are you a busy coach, professional or agency looking to have your WordPress website headaches handled by your very own development team for wholesale prices? Then you should visit DoneForYouWP.com to find the solution that best fits your current challenges with a full-scale approach to managing your WordPress website. Stop Riding the Pine is a lot of fun and we love sharing the shows we've done. We would greatly appreciate your assistance in helping us grow this show by not only downloading the episodes but also sharing them. Leave comments and rate our show so we can make the show even better.

Alex Barker Jaime Jay welcomes Alex Barker to the show today. Jaime met Alex at Podcast Movement 2016 in Chicago and was blown away by his story. Therefore, today's podcast is all about Alex Barker talks about Learning from Mistakes as a Scientific Process. Alex Barker's Career Path Alex began his journey to success in undergrad and grad school in order to become a pharmacist. After grad school he went into his residency program but discovered he had no idea what he was going to do. Alex was not in love with pharmacy or what that future held. He was kind of lost. Alex and his wife took a financial course which led him down the path of self development. He read two books by Steven Covey and Dale Carnegie, the links are below, that were a tremendous influence upon him. The impact of the seminar and the books were life changing for Alex. It really made him look at himself as a person and the legacy he wanted to leave behind. This led him down the path to where he is now. Journey to Success Alex has paid of his house as a result of the financial seminar. He has three companies and a full-time job. Through that one financial seminar, Alex and his wife came to realize how much more money they could have, how much more they could invest and how much more they could give away because of paying off their debt sooner. Tweet Alex's Episode 85 Despite the fact they were budgeting, they were not getting ahead. They cut out things like Starbucks and applied that to their debt. He knew he needed a bigger shovel to dig out of debt sooner. So he began by building businesses. If you would like to learn what Alex Barker says next about his journey to success, then download and listen to the Alex's episode 85 of Stop Riding the Pine. If you want connect with Alex Barker and see how Learning from Mistakes as a Scientific Process, then check out his links below and remember he welcomes all questions, comments and inquiries! Don't forget to mention you heard about Alex on Stop Riding the Pine:-) Connect with Alex on Facebook  Tweet Alex Alex Barker on LinkedIn Join Alex's Free Mastermind 66 Day Experiment Pharmacy Life Radio The Book: 7 Habits of Highly Effective People The Book: How to Win Friends and Influence People Here are the highlights of my conversation with Alex Barker says Learning from Mistakes as a Scientific Process if you are in a hurry: Who is Alex Barker? (5:04 Mark) Most American's are paying 3x's the value of their homes! (10:20 Mark) Why podcasting? (12:40Mark) Applying the scientific process (16:25 Mark) Alex's Break Away Moment (24:31 Mark) Special Mentions: (iTunes Shout Out) Sir Don! Thank you to Alexis Ayala, for providing the incredible editing for this episode. If you need to find an audio editor, send Alexis an email at lex@slapshotstudio.com. Thank you to our awesome sponsor, Interview Valet, A professional concierge guest booking podcast service for hosts and guests - You be the Guest, We do the Rest! Check out their new website at InterviewValet.com. This episode of Stop Riding the Pine Podcast was brought to you by Done4YouWP.com Are you a busy coach, professional or agency looking to have your WordPress website headaches handled by your very own development team for wholesale prices? Then you should visit Done4YouWP.com to find the solution that best fits your current challenges with a full-scale approach to managing your WordPress website. Stop Riding the Pine is a lot of fun and we love sharing the shows we've done. We would greatly appreciate your assistance in helping us grow this show by not only downloading the episodes, but also sharing them. Leave comments and rate our show so we can make the show even better.

Bob Burg - Take Your Business to the Next Level Jaime Jay welcomes Bob Burg - Take Your Business to the Next Level to the show today. Bob is a speaker & bestselling author, animal lover and free-market advocate. Bob Burg Getting off the Bench Bob Burg began his career as a newscaster in a small ABC affiliate in the Midwest. He graduated into sales but initially floundered regarding selling itself. He began to study sales and read Zig Ziglar among others to learn the habits he discovered to become successful. He credits his success with having a good system. A system that has a predictable outcome. The 5 Laws The 5 Laws from Bob's book the Go Giver are principles that help bring action to life. Everything is based upon a premise, a way of doing and thinking about things. The book is a story and not a how to. The premise of the book is shifting from getting to giving. When you become that person that is constantly providing value to others. We need to be genuine - Bob Burg Share Bob's Episode 78 on Twitter If you would like to learn what Bob says next about providing constant value to others, listen to the episode by clicking on the download or the play button at the top of this article. To connect with Bob Burg - Take Your Business to the Next Level, check out his links below and remember he welcomes all questions, comments and inquiries! Don't forget to mention you heard about Stephen on Stop Riding the Pine:-) Bob's Website Connect with Bob on Facebook Bob on LinkedIn Tweet Bob Bob on YouTube  Bob's book The Go Giver Here are the highlights of my conversation with Bob Burg - Take Your Business to the Next Level if you are in a hurry: Who is Bob Burg? (5:40 Mark) What is the importance of predictability? (7:24 Mark) Why should someone buy from you? (9:50 Mark) What does Bob say about being authentic? (11:50 Mark) What is the Go Giver philosophy? (15:30 Mark) What was Bob's break away moment? (19:47 Mark) Special Mentions: (iTunes Shout Out) Jason Shurgott. Thank you to Alexis Ayala, for providing the incredible editing for this episode. If you need to find an audio editor, send Alexis an email at lex@slapshotstudio.com. Thank you to our awesome sponsor, Interview Valet, A professional concierge guest booking podcast service for hosts and guests - You be the Guest, We do the Rest! Check out their new website at InterviewValet.com. This episode of Stop Riding the Pine Podcast was brought to you by Done4YouWP.com Are you a busy coach, professional or agency looking to have your WordPress website headaches handled by your very own development team for wholesale prices? Then you should visit Done4YouWP.com to find the solution that best fits your current challenges with a full-scale approach to managing your WordPress website. Stop Riding the Pine is a lot of fun and we love sharing the shows we've done. We would greatly appreciate your assistance in helping us grow this show by not only downloading the episodes, but also sharing them. Leave comments and rate our show so we can make the show even better.

Lisa Owen Lynch - Designing Engaging Websites Jaime Jay welcomes Lisa Owen Lynch - Designing Engaging Websites  to the show today. Lisa grew up in Seattle but now lives in California where she works at Wolfe Interactive.  Lisa has a restaurant background, a political science degree, is an artist and now a web designer. Lisa was a child of the 70's and Watergate was all over the news. For some reason she wanted to find out what Watergate was all about besides it being a hotel. Political science seemed like a good fit for college. Live Event Painting with Lisa Lisa continues her love of art through live event painting. She loves that it's high energy and dynamic. It's interactive for children or anyone who would love to add a few strokes. She paints everything from weddings to polo matches. Web Designing at Wolfe Interactive Lisa Owen Lynch loves her job designing websites at Wolfe Interactive. Her goal is put as much information in a cohesive presence for her clients that are engaging. The better designed, the more engaging. Just Say Yes! - Lisa Owen Lynch Lisa likes to stay on top of the world of web designing trends. The trend today is moving away from stock photos and towards more illustrative designs. Lisa loves this aspect of her job. Share Lisa's Episode 75 on Twitter If you would like to learn what Lisa says about the steps in designing an engaging website, listen to the episode by clicking on the download or the play button at the top of this article. To connect with Lisa Owen Lynch - Designing Engaging Websites, check out her links below and remember she welcomes all questions, comments and inquiries! Don't forget to mention you heard about Lisa on Stop Riding the Pine:-) Paint Live SoCal Lisa on Instagram Lisa on Facebook Daniel's Podcast Email Lisa Lisa at Wolfe Interactive Here are the highlights of my conversation with Lisa Owen Lynch - Designing Engaging Websites if you are in a hurry: Who is Lisa Owen Lynch? (3:27 Mark) What is live event painting? (6:20 Mark) Why use a professional for your website? (13:30 Mark) Why Lisa loves WordPress (14:47 Mark) What was Lisa's break away moment? (21:20 Mark) Special Mentions: (iTunes Shout Out) John N. Lynette. Thank you to Alexis Ayala, for providing the incredible editing for this episode. If you need to find an audio editor, send Alexis an email at lex@slapshotstudio.com. Thank you to our awesome sponsor, Interview Valet, A professional concierge guest booking podcast service for hosts and guests - You be the Guest, We do the Rest! Check out their new website at InterviewValet.com. This episode of Stop Riding the Pine Podcast was brought to you by Done4YouWP.com Are you a busy coach, professional or agency looking to have your WordPress website headaches handled by your very own development team for wholesale prices? Then you should visit Done4YouWP.com to find the solution that best fits your current challenges with a full-scale approach to managing your WordPress website. Stop Riding the Pine is a lot of fun and we love sharing the shows we've done. We would greatly appreciate your assistance in helping us grow this show by not only downloading the episodes, but also sharing them. Leave comments and rate our show so we can make the show even better.

Chris Marr - Content Generation for Success Chris grew up and remains in Scotland with his growing family. He began his successful entrepreneurial journey in 2010 when he wrote his first blog. Find out how your entrepreneurial journey can be successful with Chris Marr - Content Generation for Success. Share Chris's Episode 69 on Twitter He began Content Marketing Academy as a general marketing company in 2013. As the company grew, he realized the company needed to educate. The more teaching they could do, the more money businesses would be willing to spend for marketing. CMA started with the thought of educating and teaching but it's more about building a community. Delivering Content Chris Marr's company does speaking, videos, podcasts, blogs, podcast interviews and is out there as often as possible to get exposure for CMA. CMA is changing the way their clients do business. Chris Marr says Scotland is behind compared to the United States in marketing. CMA is ahead of the curve. They are leading the industry forward in Scotland by changing the way their clients communicate forever through content marketing. If you are not creating content today, blog, video or podcast, you don't exist. When people search for solutions and you have not created content, you won't be found. Business marketing is no longer about who is shouting the loudest. Consumers have more choices and think about buying choices differently. Community Acknowledgement Chris compares this to being in a crowd. If you say something and no one acknowledges you, what is the point. Providing or receiving feedback on your content is vital to getting people to like you and building a community. If you would like to learn what Chris Marr says next about content generation, listen to the episode by clicking on the download or the play button at the top of this article. To connect with Chris Marr - Content Generation for Success, check out his links below and remember he welcomes all questions, comments and inquiries! Don't forget to mention you heard about Daniel on Stop Riding the Pine:-) Email Chris Chris on Facebook Instagram Connect with Chris on LinkedIn Subscribe on YouTube Here are the highlights of my conversation with Chris Marr - Content Generation for Success if you are in a hurry: Who is Chris Marr? (3:51 Mark) Why is content vital for business? (13:20 Mark) Why build a community? (26:40 Mark) What does Chris say about scalability? (27:45 Mark) What was Chris's break away moment? (31:56 Mark) Special Mentions: (iTunes Shout Out) Jeff Augustine. Thank you to Alexis Ayala, for providing the incredible editing for this episode. If you need to find an audio editor, send Alexis an email at lex@slapshotstudio.com. Thank you to our awesome sponsor, Interview Valet, A professional concierge guest booking podcast service for hosts and guests - You be the Guest, We do the Rest! Check out their new website at InterviewValet.com. This episode of Stop Riding the Pine Podcast was brought to you by Done4YouWP.com Are you a busy coach, professional or agency looking to have your WordPress website headaches handled by your very own development team for wholesale prices? Then you should visit Done4YouWP.com to find the solution that best fits your current challenges with a full-scale approach to managing your WordPress website. Stop Riding the Pine is a lot of fun and we love sharing the shows we've done. We would greatly appreciate your assistance in helping us grow this show by not only downloading the episodes, but also sharing them. Leave comments and rate our show so we can make the show even better.

Heyang: The national golden week has just come to an end. The holiday brings us not only enjoyment but also headaches. Netizens have listed the top ten tortures during the holiday period. What are they and have you fallen victim to it.Mark: I mean one of them which actually isdebatable is no Internet or Wi-Fi.Heyang: Yes, that’s number ten, so it’s the bottom of the list.Mark: I mean it depends on where you go though, doesn’t it, and what kind of plan you have. How cheap you are. As you know, in my case, the answer is extremely.Heyang: Thank you for being so honest.Mark: Therefore, if I’m not in this building or in my flat, I don’t have access to WeChat because I can only use that on the Wi-Fi you see. I can’t use it on the 3G because I keep it switched off. Once I switched it on it cost me 70 yuan just for one day. I think that’s cause I’m on the wrong plan with the provider. So some people are used to sort of being a bit out of touch as they walk from building to building. I know actually some people mightsay it’s a good thing not being in contact with everyone, but no it’s not. You miss it, and it’s nice to keep in touch. So that’s something that I would miss if I went camping for example somewhere in China.Doris: Yes, Wi-Fi would definitely be on my top list when I look for hotels or places to stay. If they don’t have Wi-Fi, then I don’t stay there, because being connected, being in touch with family and friend is very important to me during the holidays whether you are with them or far away from them.Heyang: Yes, of course. I totally agree with you. But I think now it’s not just about keeping in touch with your family and friends. Often it’s about you need to show where you are or what you are going through or just plainly show off in your friend circle or moments on WeChat, and I just don’t get it why people can’t get off the internet for a little bit, or just get away from the social media platforms for a little bit. During the past holiday, the joke in my friend circle was that two of my friends, they accidentally bumped into each other in a restaurant in Beijing. They couldn’t speak to each other because one is supposed to be in Canada, and the other one is supposed to be somewhere in Europe according to their friend circles, but actually they were just in Beijing. But it’sjust like part of this whole culture and I’m like you Mark, I can’t believe that. Yes, I’m a bit cheap, I would want to stay away from the paid internet flow data thingMark: I resent that comment that you call me a bit cheap. I’m very cheap. Don’t insult me! Heyang: Ok, well, you win this battle I suppose. I’m one step behind you. Apparently number nine on the list is someone forgot their smart phone and they are crying about it.Mark: It’s amazing if we start thinking back to how things were before smartphones and before the internet when people had to go to a library if they wanted to know anything about the world that wasn’t in the daily newspaper. So you had to go and look up information that was maybe twenty or thirty years out of date. We are spoiled now with the amount of access we have to freshly updated information, so I can see that someone forgetting their smartphone like innumber nine on this list. It would be very annoying. For practical reasons, say you wanted to go camping and you wanted to know where there was somewhere you could get some water or something like that, so for practical reasons, it’s good to have a smart phone with you when you are somewhere like that.Doris: I know, I recently had my phone shut off for some reason, and people were trying to call me, connect with me and invite me to dinner.And I didn’t have the phone with me, so I left it at home for just two hours, and people got mad at me, because I didn’t answer my phone during that period of time.Mark: Including employers as well. So this is, you know, they know where we are all the time, don’t they now. And there’s no real reason for not answering your WeChat if it’s your boss on there, for example, if they are on your list, because they know that you are using your WeChat to talk to your friends.Heyang: For people enjoying the holiday, it’s not just about having fun, but it’s also about for some people getting up early and getting stuff done, be itmeeting your travel plans.People have really packed their schedule for a holiday. Isn’t it kind of just missing the point of the holiday?Mark: But I think traditionally, holiday was something where agricultural workers didn’t have to go to work and they were exhausted and they just stayed at home. Sometimes, merchants couldn’t go to the bank. This is where in Britain we get the name “Bank Holiday”, which is what we would have called October the first “Bank Holiday”. So if the Bank wasn’t closed, then you didn’t want to leave all the money in your shop that day, so in other words, you didn’t open because you couldn’t take the money to the bank, that’s how bank holiday got started. So yes, I kind of agree with you there.Heyang: Yes, it seems like waiting for others, keeping a diet… Why would people keep a diet during the holiday? I don’t understand that part on this list, because ok, it’s personal sharing time again. What did I do during the holidays? Mark: Do tell us.Doris: Please do.Heyang: Like you guys want to know, I see those eager eyes in the studio.Doris: What did you do?Mark: Suck up! We are gonna find out anyway. You are gonna tell us. Go on, what did you do? Was it interesting? Heyang: It was great! It’s the best thing in the world.Mark: Why don’t we ask the listenerstoguess what it was?Heyang: Basically, I ate ateate and then just lazed around, and was just a total couch potato, and that is the best thing in the world. As you guys know, I’m very much into fitness, like I do a hundred sit-upseveryday. Mark: Well, sounds like it.Heyang: But during the holiday, it’s time to just completely turn off and just enjoy the wonderful food and just laze around. Doris: So the holiday isn’t just a break from work for you. It’s also a break from exercise.Mark: Why do you want abs?Heyang: Well, because I want to look good. Is there a problem with that? I’m getting challenged by a person who doesn’t have it. Once you’ve got it, you love it.Mark: I’m just jealous. Have you actually seen the abs then, already?Heyang: Why are you suddenly so interested in my body? We should not go down that path. Can I please just read out a couple of messages from our listeners? One is WeChat listener Bob, he says that the greatest torturous moment of the holiday is the horrible traffic. The part we didn’t devote a lot of time for is actually No.1 death penalty--when you have no money. Yes, I think it sums it uppretty well.

Heyang: Hello everyone! 欢迎来到这周的Round Table英语词汇小百科，我是Heyang。今天我和Mark要来聊一聊英式英语和美式英语的区别。So Today we are gonna talk about the differences between British English versus American English, and we will focus on, I guess, vocabulary. Mark: Yes, that’s right. Of course there are lots of differences between British English or World English as I call it. For historical reasons of the British Empire and so forth, British English is actually very very wide spread in India for example, a country with a population in excess of 1.1 billion people. Very extensively throughout many English speaking African countries where it’s one of the official languages, Australia of course and Canada, so it’s kind of like America versus the world. Hollywood should make a movie about it, shouldn’t they really? But they don’t have to, because they make every movie in American English, which acts as a real sort of force for American culture generally. And of course there’s also Microsoft word spellchecker which by default checks in American English, so that’s how American English is spreading around the world mainly, I think, these days. Heyang: I suppose so. I think Mark and myself Heyang, we are the perfect people to talk about this topic. Let’s set the scene a little bit here. A porter in a British hotel comes upon an American tourist impatiently jabbing at the button for the lift. Mark: Madam, the lift will be here in a moment. Heyang: Lift? Mark: Replies the American. Heyang: Oh, you mean the elevator. Mark: No madam, here we call it the lift. Heyang: Well, as it was invented in the United States, it’s called an elevator. Mark: Yes madam, but as the English language was invented here, it’s called a lift. Heyang: Well done! Mark: That was fun, wasn’t it? Heyang: That was fun! Well, I think that sets a pretty good tone of today’s discussion. Mark: Can I just say something about that little sketch we did? It’s not true to say that the lift was invented in the United States, because do you know that two thousand years ago in ancient Rome, there were lifts then, mechanically operated lifts. Heyang: Well, there you go, there’s a fact of triviality that would be useful for our listeners. Americans say crosswalk and what British people say? Mark: We would say zebra crossing. That’s great, isn’t it? Because it looks like a zebra, the black and white rectangular sections across the road for you to cross in safety, so we call it a zebra crossing. Heyang: It sounds more visual, the British version. But for the American version, this is describing the path for crossing road that traffic lights, so it’s kind of straightforward too. It’s coming from different angles. Mark: This is the thing I don’t really like when people speak of American English versus British English. Actually, it could be argued that American is a dialect of English really, because Americans enrich the English language, as do British people as well. And also of course, so to Chinese people, there are words that have been created here in China before the English language. Procuratorate, for some sort of judicial building or office, is a word, as far as I know only exists here in China. It’s been added to the English language by the Chinese. Heyang: And also academicians, 院士. That’s probably something that’s very Chinese. Mark: Why do these Chinese created English words, why they are so hard to pronounce? I would hate to have to say something like “the academician made his way to the procuratorate.” Heyang: Oh my god! That sounds like a major tongue twister. Ok, Let’s go to another one, soda. It refers to anything like Coke, Pepsi, Mountain Dew and all those kind of things. Mark: We call that fizzy drink, fizzy means something with bubbles in it, carbonated, is a more technical word. We call that fizzy drink. There are other things as well, foods and vegetables like eggplant, for example. Heyang: That’s American, right? Mark: Yes, we call eggplant aubergine, which is actually a French word, because of Britain’s proximity to France, and because of the invasion by the Northern French a thousand years ago. There are huge French influences in England and in English language as well, and that’s one of them--aubergine. Heyang: Yes, I think Language is a very interesting subject, and it’s a truly democratic form in so many ways. Let’s go to the last one that is erasure. What do you guys call it? Mark: We call that a rubber. Heyang: Well, that means completely different things in the United States. Mark: What it means, Heyang? Heyang: Ok, I’m just goona say it. Rubber means condom in America. Mark: Be careful with what y ou ask for, when you going to the stationery store, you mention that language is a very democratic thing, I kind of thought to myself, I’ll tell you I thought, what does she mean by that when you said that, but actually you are absolutely right. But first of all, I thought people don’t vote for language, but they do actually by using it when we hear a buzzword or something. By simply using it and repeating it, we are voting for it. So that’s a very good description of language actually. Heyang: Thank you very much. I don’t get that many compliments from you Mark. That’s all the time we have for this edition of word of the week. See you next week!

Xiaohua: It’s tough being a single guy in China. Not only do you have to compete in an imbalanced society where males outnumber females by 118 to 100, but you are expected to own property, be handsome and have a good temper to boot. Desperate young men are now paying as much as 7000 Yuan for a seven-day crash course on how to strike a conversation with girls and keep the attraction going. So we are talking about an online course teaching guys how to date. Do you think it’s gonna work? Heyang: It depends on what is being taught. On this website named "Study the Art of Dating," there are mentors who sell their courses, including online and offline tutorials. These courses include how to pick up a girl, how to secure a spouse. That’s a bit of a jump in between the two. And how to redeem lost love and how to manage personal appearance. I think the easiest thing to do or to get a leg up is to manage your personal appearance. Usually that a good start I think. And it’s pretty expensive (this course turned out to be.) I’m surprised that people actually pay for this kind of thing. And it’s not easy to be a single woman in China either. In this imbalanced society where male outnumber females. But when it comes to big cities, it seems it’s the outstanding females outnumbering males. Mark: Calm down now. Heyang: Yes, it’s not easy. I think women are facing a similar kind of predicament as well. Mark: Yeah, well, maybe. Let’s concentrate on the so-called desperate young men for a moment. Do Chinese guys date when they are teenagers? Xiaohua: We are getting to the root problem. No, they are not being encouraged. They are probably doing it secretly. But they are not being encouraged by their families or school. And right after college they are expected to get married in two years and have kids in three. Mark: Why don’t Chinese guys, the ones that we are talking about, I’m sure this doesn’t apply to all of them. But why do they need to go on a course to learn something which comes naturally in nature and it’s part of human nature? Why do they need a course like this, and when they are in their twenties to have their parents take them to matchmaking events? And go to blind dates set up by their parents. Xiaohua: I completely understand… Mark: Something seems to have gone awry with nature I think in China. When it comes to teenagers, older teenagers, dating and just letting things happen naturally. Heyang: Yeah, I think maybe it’s because, as that old saying goes, when you are at a certain age, you should do certain things. And when you are a teenager, when you are a high school student, you should probably be dating, you should probably be answering the natural call of certain desires? Or whatever it’s called, it is forbidden to be spoken of in Chinese schools. I think it’s when you natural desire has been stifled at a certain age, and later on, you actually need to pay so much money to try to acquire it again. It’s all messed up. Mark: Perhaps in some ways it’s messed up. But in other ways, I actually think it’s quite a good idea. I mean in other words Chinese teenagers can really concentrate on their studies and so forth without the distractions of pressure to date or the desire to date if it’s all stifled. So I can kind of see both sides of this one. Xiaohua: Yeah, this is true. Shall I give one example of one of the tricks that a mentor gives. And you guys can judge whether it’s effective. It’s called ‘the hot water trick.’ So, the idea is to walk into an upscale night club or a bar and immediately order two cups of hot water the moment you walk in. And don’t let the girl find out you are doing this. And later after finding a girl you want to speak with, the waiter will come to you with the hot water. This will impress the girl that you just met because she will see you walk in and receive hot water without asking. Making it appear that you are a regular customer at a club. Also, when you exit the club, try to pull aside the waiter for a few words, it can be anything. You can just talk randomly to them. And this will make the girl think you are very tight with this night club. Mark: Now we are in cultural difference territory. Heyang: Okay, you go first Mark. Mark: Any guy that ordered hot water in a night club would risk not getting a first date let alone a second one. Heyang: Plus now everybody knows, even if this trick had any effect on any lady, now it won’t. Because everybody is going to be doing it. Waiters are going to be so busy delivering hot water to people from now on. Xiaohua: And we are here to debunk the myth. Next time you see this don’t trust that guy. He’s been to that course.

Evo Terra Evo Terra has led innovative and disruptive strategies for 20 years. In business, he's launched and managed enterprise-level commerce platforms and directed international agency teams. As an educator, he's hosted nationally syndicated radio programs, authored many instructional books, and is a nationally known speaker. As an entrepreneur, he’s launched many startups, all with varying degrees of success. Through it all, Evo stays focused on emerging trends, the impact of science on on society, and the importance of critical thinking. Evo currently holds positions in several companies including Podiobooks.com as the President, BigBounce.co as the Chief Disruption Officer and also as a strategic advisor for Scribl.com which sells books online using "Crowdpricing". Definitely want to get into that. In addition to his current duties, he's a published author of multiple books including his latest book, the Beer Diet, Making Killer Google+ Profiles, Writing Awesome Book Blurbs, Expert Podcasting for Dummies and Podcasting for Dummeis (2nd Edition). Evo has been quoted as saying "Innovation preceded by disruption is just natural and predictable progression". Evo Terra Takes Multi-tasking to an Entirely New Level Positioning himself witin multiple companies, encapulates Evo's desire to constantly strive to find the next best thing. While most of us may collapse under the pressure of multi-tasking at this level, this is Mr. Terra's comfort zone. Evo is currently involved in three companies and the first of which is a company called Podiobooks.com wherein you are the President. He coined the phrase "podiobook" in April of 2005 to describe serialized audiobooks which are distributed via RSS feeds, much like podcasts - the combination of podcast and audiobook. All the podiobooks are free of charge; however, they ask for donations to help keep these services available. Evo took the time to thank Libsyn for their help with the hosting. They are a great company and you should check them out for your podcast hosting needs. He is the "Chief Disruption Officer" for a company called BigBounce.co that was an idea drummed up between Sitewire President, Bret Giles, and Evo when he held the VP of Media and Innovation position for five years. Big Bounce transforms disruptive startups into sustainable businesses. We use a variety of flexible, lightweight processes to incubate and accelerate our member businesses, help them master business fundamentals, and provide executive-level guidance and other support structures necessary to run a sustainable business. I read about BigBounce.co and it seems to be a great opportunity for entrepreneurs looking to take their concept to the next level. Evo is also a strategic advisor for Scribl.com. This company provides readers an opportunity to find the right book and pay the right price based on a powerful new software known as CrowdPricing. It's also a platform that provides authors another resource to share their work and help them build a portfolio and even get their books published. Scribl.com is currently in the "Beta" process, but it's moving forward at a rapid pace. Evo Terra on Fox News with Shepard Smith Reporting If you would like to learn more about Evo Terra, check him out online at: Evo Terra's Website Facebook Google Plus LinkedIn Twitter YouTube Here's a great article about the differences between disruption and innovation: Disruption and Innovation Are Not The Same Thing Want some good reading? Check out Evo's bibliography: [soliloquy id="265"] It was a blast interviewing Evo. Listen to the highlights of the podcast below: Who is Evo Terra? (3:15 Mark) What is Podiobooks.com - Evo's even coined the word. (4:24 Mark) Why does Evo apologize for his rant? (9:41 mark) What does CrowdPricing mean? (13;50 mark) Evo talks hockey? (21:26 Mark) What does a Chief Disruption Officer do at BigBounce.co? (23:03 Mark)

Chris Simnick is the founder of FranchiseTeacher.com, a division of the Synergy Franchise Group. Chris has over 30 years of experience in the franchise business business as a franchisee, franchisor and now a prominent franchise consultant. His expertise has taken him all around the world. His "Teach! Coach! Consult! Advise!" philosophy is more than just a phrase, it's at the heart of his company's core values. He specializes in the creation and implementation of key strategies and business plans for concepts, or business looking to franchise, looking to enter franchising. He also helps franchise systems that are looking to take the next step in their business. Chris Simnick has travled the world helping franchises grow their business, and while he is based in Florida, he enjoys meeting people face to face. That said, he understands the importance of establishing a solid online market place. He utilizes both online and offline marketing strategies in addition to a proven training system that begins with a FREE one-hour consultation followed by a feasability study prior to advising his clients of making a commitment to franshise or invest in a franchise opportunity. Chris completed the Fast Track M.B.A. Training in Franchise Mangement at Nova Southeastern University, and received his CFE designation from the IFA in 2004. He frequently speaks at large venues and has been an instructor at numerous seminars, classes and events on a variety of topics including: Domestic, International and Global Recruitment and Development Utilizing the Internet to Build Brand Awareness Lead Generation and Recruitment Tools Training and Operations Processes Franchisee/Franchisor Relationships Chris has also had the fortunate assignment of teaching modules of the Mini MBA Course for International Institute for Franchise Education (IIFE) at Nova South Eastern University and the Philippine International Franchise Conference and Expo in Manilla, Philippines. During this podcast, Chris addresses several interesting topics including: Who is Chris Simnick? (2:20 Mark) How is business done today? (7:28 Mark) Why is "able" so important to your buisness strategy? (9:36 mark) How do you approach your franchise consulting? (15:52 mark) What do you tell people about the business of franchising? (20:14 Mark) What is the difference between teaching, coaching, , consulting and advising? (23:00 Mark) Is free really worth something? (31:30 Mark) What were Chris's "Break Away" moments (he has three - hat trick anyone?) (36:22 Mark) Get in touch with Chris Simnick: Visit Chris's website at FranchiseTeacher.com Connect with Chris Google Plus and Facebook and add Chris to your list on LinkedIn. Email Chris at chris@franchiseteacher.com if you would like to talk with him more. Get your FREE One-Hour Consultation with Chris and FranchiseTeacher.com.

Guests this hour - Kate Obenshain (author: Divider in Chief/FOX News), Mike Aguirre (former City Attorney) -Storm Watch! -Kate Obenshain on indoctrination in the educational system, the Olympics in Russia, and the National Prayer Breakfast. -Mike Aguirre tells Mark WHY he endorses Kevin Faulconer for San Diego mayor, and why it's NOT good to just vote party lines. -Mark Larson also has news in the madness that in the CA. public utilities commission! Talking about the things that matter MOST, with the people that make a DIFFERENCE - Mark Larson on KCBQ!