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TJ Slattery Systems Lead to Freedom

Legacy Roadmap Podcast · 2024-06-17 · 35 min

0:00--:--

Key moments - from our scoring

Substance score

33 / 100

Five dimensions, 20 points each

Insight Density8 / 20
Originality6 / 20
Guest Caliber8 / 20
Specificity & Evidence6 / 20
Conversational Craft5 / 20

TJ Slattery, a Denver-based serial entrepreneur with experience in home services, facilities management, hospitality, and real estate, explores what it takes to build a business legacy beyond just revenue. Rather than focusing on financial metrics alone, Slattery emphasizes the importance of creating a strong organizational culture through bilateral communication, values-based hiring, and clear expectations. He illustrates this through the 'tree-chopping' metaphor: instead of telling employees to "go find a tree," provide specific, measurable instructions so everyone understands exactly what success looks like. A key theme is values alignment during recruitment - screening candidates not just for skills but for psychographic fit with company values, then holding them accountable through regular check-ins. Slattery also addresses the psychological hurdle many founders face: delegating their core competency. He argues this transition from solopreneur to CEO is essential for scaling, citing Toyota's kaizen approach and the danger of remaining a bottleneck. The conversation underscores that business growth multiplies when founders empower others rather than trying to remain the expert doing everything themselves.

Key takeaways

  • →Clear, specific expectations - not vague directives - reduce confusion and enable employees to make values-based decisions aligned with company mission.
  • →Values-based hiring focuses on psychographic fit and past behavior aligned with company values, not just skills, because values alignment improves retention and cultural cohesion.
  • →Bilateral performance reviews and regular check-ins keep employees engaged by confirming they're still meeting their own stated goals alongside company objectives.
  • →Founders must overcome the psychological barrier of delegating their core competency to scale beyond solopreneur status and access the CEO-level visibility needed for next-stage growth.
  • →Walking the walk on feedback - actually implementing employee suggestions and showing the impact - prevents 'culture-washing' and demonstrates genuine commitment to mission-driven improvement.

Guests

TJ Slattery

Topics in this episode

organizational cultureLegacy BuildingMission alignmentValues-based hiringBilateral performance reviewsClear expectations and role clarityKaizen and continuous improvementDelegation and solopreneur-to-CEO transitionPsychographic screening in recruitmentSystems and processes for scaling

Questions this episode answers

How do you set clear expectations for employees so they can make good decisions without constant oversight?

Instead of vague instructions like "go chop a tree," provide specific details: the exact tree location, a rope marker, timeframe, and measurable outcome. Then align during onboarding on what success looks like and what the employee wants from the role, creating bilateral clarity.

Why is values alignment more important than skills when hiring?

Skills can be taught, but values alignment determines cultural fit and retention. During interviews, ask situational questions about past behavior that demonstrate alignment with company values - like asking when they witnessed unfairness and what they did about it - to predict long-term fit.

How do you handle employees experimenting and failing in a 'safe culture' without tanking results?

Keep open bilateral communication: ask what employees want from the job and their goals, then check in every few months on both their progress toward company expectations and whether the company is meeting their stated needs. This prevents the quiet quitting that happens when there's no dialogue.

What's the biggest barrier preventing founders from delegating their core skill?

It's often not ego but habit, guilt about burdening others, or fear of losing identity when giving up their main expertise. Founders must recognize they become a bottleneck and that delegating frees mental bandwidth to lead at a CEO level instead.

How do you prevent culture-washing when soliciting employee feedback?

Actually implement the suggestions employees propose and visibly show the impact and results of their contributions. If you ask for ideas but nothing changes, you destroy trust; if you implement and celebrate the outcome, employees see their voice matters to the mission.

What our scoring noted

Our reviewer’s read on each dimension, with quotes from the episode.

Insight Density

8 / 20

There are a handful of genuinely useful practitioner points - key-man risk reducing acquisition value, bilateral performance reviews, and operational documentation as a sellability asset - but they are surrounded by large amounts of affirmation, platitude, and repetition. The ratio of insight to filler is poor for a 35-minute episode.

it's not just your ebitda, uh, or how many clients you have or products you do or employees you have. It's what is this thick folder that you're going to hand over to the next owner
you're probably worth about 1.2. But you're gonna leave in six weeks. Okay. If you're leaving in six weeks, like the value of this just came down so much because you're the key man

Originality

6 / 20

The episode recycles well-worn small-business consulting frameworks - values-based hiring, delegation, key-man risk, solopreneur-to-CEO arc - without offering a contrarian angle or first-principles argument on any of them. The 'leap of faith' closing and the Toyota efficiency anecdote are textbook filler.

the best way to test a parachute is to jump
it's more of a appreciation that entrepreneurs all have to make. That moment From Indiana Jones 3 where there's this leap of faith

Guest Caliber

8 / 20

TJ Slattery is a legitimate small-business practitioner with real operational history across industries including brewing and hospitality, plus M&A-side exposure in the $1 - 5M range, but he is working at a modest scale and his advisory credentials are not distinguished enough to warrant a high score.

I spent a lot of time in the, uh, acquisition side as well, looking at small businesses, um, that were in that 1 to 5 million range
they're averaging about a million revenue, um, at the bottom of the scale, they're probably 250 to 300,000 revenue, up to 10 million

Specificity & Evidence

6 / 20

The episode offers a handful of concrete numbers (1.2x EBITDA valuation, $250K - $10M client range, six-week departure timeline) and one named firm (Cultivate Advisors), but there are no real case studies with outcomes, no named client transformations, and no data beyond rough ballpark figures.

you're probably worth about 1.2. But you're gonna leave in six weeks
they're probably 250 to 300,000 revenue, up to 10 million

Conversational Craft

5 / 20

The host consistently editorialises at length before questions, affirms every answer with 'so powerful,' and introduces his own examples (Toyota, values questions) rather than drilling into the guest's claims. There is no meaningful pushback, no challenging of vague assertions, and questions are leading throughout.

uh, uh, that's so powerful. So powerful. And so few businesses focus on it
Well, and I think it's even a step further because it's easy to outsource the stuff we don't like to do

Conversation analysis

Computed from the transcript - who did the talking, and the words that came up most.

Share of words spoken

  • Speaker A57%
  • Speaker B43%

Most-used words

values27owner17employees17somebody16culture14mission14owners12create12tree11back11legacy11level11safe11revenue10value10employee10

Episode notes

Robert speaks with TJ Slattery about entrepreneurship, serial business growth, and really setting up systems and processes to increase the value of your business. And of course, increase your freedom. A Denver-grown serial entrepreneur with a wild enthusiasm for organizational development and a penchant for mischief, this individual has personally worked in home-services, facilities management, hospitality, and real estate. TJ Slattery has served as an advisor in twelve other industries and practices. After obtaining his MB Robert speaks with TJ Slattery about entrepreneurship, serial business growth, and really setting up systems and processes to increase the value of your business. And of course, increase your freedom. A from Denver University in 2017, TJ employs a holistic approach to helping business owners stabilize the foundation of their businesses and implement systems and processes that allow them to scale and achieve the ultimate goal: freedom.

Full transcript

35 min

Transcribed and scored by The B2B Podcast Index.

Speaker A: So it's the difference between saying, okay, there's a tree out in the forest, go chop one down and bring it back. Here's the JavaScript. But what does that mean? What are our expectations of you? Um, and what I mean by that is what's the clarity behind it? So it's the difference between saying, okay, there's a tree out in the forest, go chop one down and bring it back.

Speaker B: Welcome to the Legacy Roadmap Podcast. Your ultimate guide for creating a lasting legacy. Legacy as an Entrepreneur Whether you're an ambitious entrepreneur or a seasoned business owner, our podcast offers insightful conversations with successful entrepreneurs and experts who have navigated the path of legacy creation. We explore topics that matter to you personal responsibility, financial growth, leadership, and succession planning. Our goal? To equip you with practical insights and strategies that help you transition from simply running your business to building a legacy. Join us each week as we delve into purposeful discussions aimed at positively impacting future generations. Your journey towards leaving a lasting legacy starts right here, right now. Let's dive in.

Speaker A: Does your business serve homeowners? If so, you need to know about hoa. Com, the number one referral network for professionals who serve homeowners. And we're looking for quality contractors and home service pros that we can recommend and refer to homeowners in your area. Not only will you get promoted on the HOA.com website, you'll get business from other certified pros and premier pros in your market. These people serve homeowners every day, so we help you build referral partnerships that keep referrals coming to your business for years to come. Go to hoa.com pronow and get started. Are you an entrepreneur or business owner? If so, you need to know about the Achieve Systems Business Building Membership we are one of the best referral based communities that wants to refer you. We help generate you thousands of leads per year. We also provide you an incredible mentorship program that has won many awards. We don't stop there. We have 60 plus opportunities to take your business to the next level like authoring and publishing books and many, many more. Go to achievesystemspro.com and get started today.

Speaker B: Today do you want to make more money in your business? Most business owners focus on building revenue. That's not enough. Building profits is what feeds your family and almost no business owner understands how to build profit without building revenue. I can show you with near perfect accuracy the exact business growth strategies that will generate the most revenue for your business in the shortest amount of time. Focused on building Profit. Learn more at BizLife Coach. This Week's guest is a Denver grown serial entrepreneur with a wild enthusiasm for organizational development and a penchant for mischief. TJ Slattery has personally worked in home services, facilities management, hospitality and real estate. TJ has served as an advisor in 12 other industries and practices. After obtaining his MBA from Denver University in 2017, he TJ employs a holistic approach to helping business owners stabilize the foundation of their businesses and implement systems and processes that allow them to scale and achieve the ultimate goal, freedom. Robert speaks with T.J. slattery about entrepreneurship, serial business growth, and really setting up systems and processes to increase the value of your business and of course, increase your freedom. Tj, thanks so much for jumping on the show today. I am just, uh, looking forward to learning more about you, man.

Speaker A: Excited to be here, Robert. Thanks for having me.

Speaker B: Absolutely. So the, the name of the show is Legacy Road Map. So let's talk about what does legacy mean to you?

Speaker A: Let's do it. It's a loaded question. It can mean so many things.

Speaker B: Well, let's explore some of them. So on the surface, what does legacy mean to you as far as, like, running your business as an entrepreneur, you know, what is it that, uh, you intend to leave behind?

Speaker A: Yeah, so from previous businesses and where I'm at now, you know, I think one of the strongest things you can leave behind that's also one of the most difficult things that's out of your control is, you know, what's the culture that you built. So, you know, whether it's in the brewery that I used to own and operate or, you know, doing consulting now, um, or, you know, as often the UK and London and working with those guys back in 2015 or so, it's, you know, on a cultural level, what do you have left behind on your staff? How they treat employees, how they treat their customers, you know, what's the badge that they have in place. So, for example, you know, with the brewery, it was, is this a safe place for our people to work? Are, uh, they excited to come in? Uh, are there, um, goals and lifestyle appreciated and kept in touch with it? Was this make it a fun place them to come and work? Are you reliable? Do you pay them on time? You know, if they make a mistake? Is it a culture of punishing people or trying to figure out, you know, what the mistake was and how can we get better? And my current business with consulting legacy is what kind of impact are you making on your clients? Is it a long lasting piece? And can you Help to affect their culture, uh, to make sure that their values are instilled for a long period of time. So for me, it's. Yeah, it's more of a cultural legacy on communication. Implementing values and trying to find pieces that stick. Although once you're exited, there's not too much you can do about how things remain.

Speaker B: But I, I, like, you mentioned something that's really challenging. Right. You mentioned creating a safe. A safe place. And. And then you also mentioned, you know, what happens when an employee makes a mistake. And so on the surface, it's easy for companies to say, hey, this is a safe place. We want you to make mistakes. We want you to try new stuff. And, And. And then, of course, the employees go out and experiment and they do some of that stuff, and then. And then they're not getting the results. Right. And boom.

Speaker A: Yeah.

Speaker B: That they're either being talked negatively about or. Or. Or run down in the staff meeting, you know, because. Because we've created an environment where we say we want to save space, but then we really want results. How do you help a company get results and yet feel like everybody, you know, like it's safe to. To challenge the norms, it's safe to challenge the things. Well, we always do it that way, right?

Speaker A: Yeah. Honestly, it's just an open level of communication. One of the things that I work most with, um, clients now, as far as, you know, their recruitment, retention, onboarding, et cetera, is what are you putting out into the ether as far as how you're recruiting those people and what their expectations are coming in. So, you know, starting with onboarding. Okay, yes, here's the job description. Here's your roles and responsibilities. But what does that mean? What are our expectations of you? Um, and what I mean by that is, you know, what's the clarity behind it? So it's the difference between, you know, saying, okay, there's a tree out in the forest, go chop one down and bring it back. And that brings so much confusion to that particular employee. You want a tall tree, short tree, wide tree, elm tree, palm tree. Like, how deep in the forest, how old is it? Versus bringing somebody on, saying, okay, I want you to go into the forest. I tied a rope around it. It's 50 yards in. It's this particular tree. You've got an hour to chop it down and one to bring it back. Right. So what are those clear expectations when somebody comes on and making sure that you're aligning with them on what the job role is? And so, hey, based on your resume, our Interviews, everything else. And you came on. Here's what we want from you. Is that something you agree that you can do? Yes. Great. Then we'll check in every few months to make sure that you're still doing those things and that you're growing as a person. But for me, what a lot of owners aren't doing is it's, it's a two way street. Like, I hate the term, um, performance evaluation. Everybody gets a shake. My performance evals up. It really should be bilateral. So when somebody comes onto the company, it's what do you want out of this job? You know, it really shouldn't just be a culture of we pay you, you do this, it's, you're coming in here, this is, you know, how you're spending, you know, approximately 40 hours a week of your life. What do you want out of this? Is it job satisfaction? Is it a paycheck? Do you a certain amount of time off? How do you want us to communicate with you? And so having those regular check ins with people and keeping that communication open, you know, that's where people kind of quietly quit is. You didn't ask me how I was doing for like six months. I didn't know how I was doing and I wasn't doing great. You weren't asking. And I was always waiting for the other shoe to drop. So it's having that level of open communication, whether it's, you know, client or customer, uh, employee onboarding, performance reviews, or any other processes that you have is, are you communicating to your people what's supposed to happen and having an open line of communication to keep it safe and make sure it's on the same

Speaker B: page, uh, that's some great stuff. So let's talk a little further about this tree we're cutting down. I'm a, I'm a big proponent of values based hiring, right. And, and, and helping the company, you know, function on the same values level to where employees make values based decisions. Right. And if you've set up your values correctly and of course, outcome, right? So the employee knows the company values and then they know the desired outcome that the right employee in the right situation would be able to know exactly which tree to go get based on the values and the outcome that they're trying to seek versus, you know, creating a culture where they have to be told, well, it's the one we tied the rope around. It's exactly this and bring it back this way. Talk a little bit about how values, uh, values, uh, alignment can be more important than skills because we can teach

Speaker A: skills, skills we can build in values alignment. That comes in a lot when you're, you know, building your job description. So it's, yes, what's your history, experience, skill set. But I, when I'm designing a job description and putting an ad out, it's, you know, those are like the mechanics of a role versus psychographics. And so going in, it's like, let's match up with those person's natural abilities. But in that piece, you can put in what are their values and how they, uh, exhibited them in the past. Because anybody can say, yeah, I value fair play. Okay, well, where was the time in the past that you were, you know, in your personal life or in work where an issue came up that somebody wasn't being treated fairly? What'd you do? How did you feel about it? What did you want us to be being done differently? And so it's through the interview process of trying to create the questions around the value. That's an open answer that allows them to answer situationally of experience that they've had that represents that they align with those particular values.

Speaker B: Uh, uh, that's so powerful. So powerful. And so few businesses focus on it. And now when there's such workplace unhappiness, when you have values alignment, you feel like you're part of something bigger than just the company or bigger than just a job. And helping business owners see the importance of that and see how it changes the team dynamic is so powerful. And creating those questions can be challenging, um, to have that kind of conversation during a job interview. But it's so worth the extra effort.

Speaker A: Absolutely. And that's again, I think what a lot of people have with an issue on retention is not screening for those pieces. Not that the person they brought in, uh, isn't a good employee, isn't a good person, but they didn't take the time to look at the mechanics, psychographics and ask the questions about what those values are because you need to have that alignment from day one. Why are you here? Yes, say, you know what, the actualization of doing good work, uh, I want to get paid. There's something else about the company that's important to me. Let's align on that. So if you did your performance review three or six months in, it's like, hey, you came here because you wanted X, Y and Z out of a business. Values wise, how are we meeting your expectations? And so it's keeping that part into your performance review, but checking in and also saying, hey, when we came in, you said, you Valued fair play. And you're skipping out half day every day, leaving work for everybody else. Does that, does that sound like fair play to you? Like we talked about this, we had a whole conversation and that was what mattered to you. You know, let's, let's check in. So it's um, you know, again, it's a bilateral move that you can hold people accountable to, to make sure that if everyone's here for those valuable reasons, are we still aligned?

Speaker B: Well, and then, and then of course the next layer is, is mission, right? If, if we bought into the values and the foundation, the core, and now do we buy into the company's mission and, and commitment to that mission and really taking ownership of it, right? If, if we can get our employees to own our mission. And of course, most companies mission statements are way too long and way too convoluted and, and don't really, don't really have something that, that their heart, right. Their employees can like, you know, gravitate to at the heart level.

Speaker A: Um, or it's too ethereal.

Speaker B: Yeah, well, yeah, because they're made up in a boardroom by a bunch of guys on a weekend retreat, right? So, so, so having a, having a mission, right, Taking your values, right, which is how we make decisions, but then having that mission that our team can buy into, our stockholders can buy into and of course we hope our customers buy into because that mission is, is whatever problem we're solving for them, right? And so helping a company get alignment between their values, their mission and their team is, is so powerful to, to moving it. It creates something greater, right, that you were talking about putting that out in the ether, right, but, but it really can create an energy, it create its own sustainability if there is that kind of connection and buy in to, to what, what they're doing, right, like, like, you know, I guess one of the great examples was Toyota and their commitment to efficiency. And they went to their employees, right, that were doing the actual job on the assembly lines and saying, how can we make this more efficient? Instead of the engineers in some back room and a laptop trying to figure out how do we make it more efficient? Asking the people that are actually doing the work, hey, where's some ways we can clean this up? How can we make this a little bit better? And as a company that became their driving mission was to improve and become more efficient and get better results. And it benefited the employees that came up with these ideas because they got rewarded for it. And then of course it benefits the company because the efficiency starts to Improve, and the company's getting more bang for their buck across the board. Board. Um, but that's challenging for a lot of companies to, to, to look to their employees to say, hey, how can we make this better? And I love your bilateral communication because that's really what that's all about.

Speaker A: Absolutely. To your, uh, Toyota example, it's, yes, we came on and we. Everyone knows the company mission. It's on the factory wall, you know, but are you as an owner, walking the walk? You're talking the talk. We want to be more efficient. But, uh, are you coming out and asking the people that are on the floor that know best the right questions in order for everyone to achieve that mission? And if it's top down, everyone's coming up with solutions to reach that mission, and they're going into effect. I think there's a, uh, step you could have that's kind of like, we call it like that version of like, greenwashing where you go and you ask all your employees and give you all this feedback. You know, they don't do anything. You know, like, great. They asked all these questions. We spent all this time and the machine's still running at, uh, quarter capacity, even though I told them, but to go and actually have the, you know, walk the walk. Great. Thank you for the feedback. We're gonna go put these things into play. And then the employees can be able to see the effect that their contribution had to the larger whole of the mission. You know, can you put all those pieces together?

Speaker B: Oh, uh, it's powerful. And yet that becomes the challenge. Right. Is for business owners, a lot of times they think they know the most efficient way. They think that the systems they've created as they built the company up are the best possible. And having an openness to be shown, hey, there might be a better way. And maybe your employee on the assembly line figured something out that you missed when you were running it. It's, uh, it can be challenging for business owners to set their ego aside.

Speaker A: It is, I call that, uh, introspection. Uh, a lot of time when I work with clients, that's one of my disqualifiers or qualifiers that I look for. Where when the first thing that pops up is a problem, are you able to look and say, am I the problem? Let's start with number one. I'm. If I'm, you know, the buck stops with me. Let's just see if maybe this is that piece. If they don't have the ability to look inside and say, maybe something I can fix or I have done wrong before. I go and, you know, blame all my suppliers and vendors and employees. Is it, is it me? Can they put the ego aside and say, oh my God, that's a really good idea? Um, and the best entrepreneurs that I've seen that started a solopreneur, they have a solo shop and they start bringing people on. You know, they grow fastest when they realize that there's other people that can do their job better, that they're able to delegate and trust in other people and be like, you know what? I'm not the best at social media marketing. Maybe we should outsource that. Even though I've been doing it for two years internally, that's not my speciality. I've been doing it because we had to, but now we've gotten to a place. I need to be able to let it go in order for the company to grow and let somebody else that's more capable and skilled than I am and recognize that I'm not the end all, be all of town and this company and be able to hand it off to somebody that is.

Speaker B: We'll be right back after this short break. Do you need an increase in revenue? We help business owners find 100k in 90 days and create a roadmap for implementation. There's no pressure, just a chance to get some assistance and clarity. Scheduling is easy. Simply visit ownitcall.com and select a time that works for you. It's time for you to focus on doubling the 20% that creates 80% of your revenue. Welcome back. Let's get back to more greatness. Well, and I think it's even a step further because it's easy to outsource the stuff we don't like to do, the bookkeeping and maybe even some of the stuff we've dabbled in because we do like to do. But the real power comes in when we're willing to outsource or, or hire for the stuff that we're the expert in and, and letting go of those things and allowing somebody else to take the reins. Um, that's where companies can blow up.

Speaker A: Right.

Speaker B: And, and, and really, you know, that's the real shift from, from business from solopreneur to business owner. Right. A lot of people own a job and they're basically paying themselves to do the job. But the reality is that owner that can figure out how to put somebody else in his seat and, and let them, and empower them to do the job can really become a CEO and can really see different growth opportunities. Because now They've got the time freed up for their brain to actually help them create solutions to, to company problems versus, you know, tech solutions. Right.

Speaker A: That is a, a big psychological hurdle that I come across with a lot of business owners. And it's not always ego, you know, it's not always I alone can fix it mentality. It's. They don't. They feel bad, uh, it's habit. Or they feel bad burdening somebody else with that responsibility or they think, well, if I give up this job, what else is there for me to do? Like, trust me, there's, there's always more. There's so much more that you can get up to that you're not even able to see yet because you're, you know, allowing yourself to make, you know, remain the bottleneck in the business. But it's grown enough that putting somebody in that spot is going to allow you to get up to the next stage of visibility and what the next step of the company should be. But if you, as long as you hold on to it and can't trust somebody or afraid to let go, uh, then you kind of stay plateaued.

Speaker B: Yeah. It really does allow a company to change level. And those are the fun conversations when somebody started acting as the CEO and he's like, I didn't even realize my company had all these problems up here because they see a new level.

Speaker A: Exactly. And it's, it's funny, um, I say this all the time to clients. Actually said today is the death of every entrepreneur, is that we all become glorified managers. It's just the natural progression. And there is a bit of a death. That's the main skill set. You're the carpenter. It's a carpentry business and you have to give it to somebody else. And now you're just watching over five carpenters. And your job is to make sure, you know, they have quality work and that, you know, their lives are good. But you're really becoming a glorified manager. And so a lot of us, when it's the main skill set is our input, it's hard to let it go. But it's kind of that, you know, call it an ego death death. Every entrepreneurs, we have to move up the ladder.

Speaker B: Well, it really does. The people that can handle it, really, not just managers, they actually become leaders. And, and a good leader is bringing those other carpenters up to their level. And so instead of just one carpenter capable of doing that work that he was doing, now there's five that are doing that same quality work because. Because now they've got different access to different resources because now there's a team of five of them. They're doing a whole different level of project. They're doing, you know, have access to a whole different level of suppliers and equipment, um, that that one of them on their own wouldn't have. And so it, it really does become a multiplier.

Speaker A: Absolutely right. That's one to five.

Speaker B: Yeah, but. But it's not like just adding five. Right. It's really multiplying by five. So really does elevate the company, you know, significantly when, when you've got that ability to empower, you know, five other people to do the thing you're doing. Um, and it's so cool to see when, when people do it right.

Speaker A: Yep. And it's just a matter, not just a matter of it's hard, but you have to wrap up. I did it when I left my company in the brewing industry because I had to go figure out through and think what is my entire job description. It's interesting that working with owners now when they're trying to figure out what can come off of their plate and go through all the main titles and all role responsibilities, but then like, all right, I'm going to create this whole new role with these jobs and like the things that I do innately inside the business that now I have to put on paper and create a training manual behind for the next person to take on. But once they start going with that process and systemizing it, that's that multiplier expansion. Okay, I did all the crazy hard work getting on paper and got the one new carpenter on, but now we can add it and make it into five. Because I put that system in and did the work to get it out of my head and on. On paper and into a training manual.

Speaker B: You know, the other big thing they just did was they made their company sellable because. Because so many entrepreneurs think, oh, my company's worth this and this and I can do 2x my revenue. And. And if it's all up here and they're doing all the work, their company's not worth 2x the revenue. Their company's worth whatever they can get, get paid for as a job, because that's all they've gotta, all they really have. So helping a business owner see what happens when they take the time to create the system and do all that documentation work, now they've got a company that's sellable and that they can pass it on to somebody else and they can let it go and it can do that thing that they really wanted it to do in the first place. And that's give them that freedom of, of, you know, some cash flow and some other opportunities when they, when they do sell it. And that's a huge thing that a lot of entrepreneurs run into and they're like, wait, what do you mean my company's not worth anything?

Speaker A: It.

Speaker B: That can be a huge eye opening moment and kind of a little heartbreaking for a lot of them.

Speaker A: Absolutely. And I've worked with a lot of, um, uh, clients on this and I had to go through it myself. But you know, it's not just your ebitda, uh, or how many clients you have or products you do or employees you have. It's what is this thick folder that you're going to hand over to the next owner that is just every little thing about the business, how to operate it. Like that's more valuable to, to a buyer than almost any other KPI you can put together. Because sure, it's maybe a, um, million ebitda. That's fantastic. But how do you make it spin? What if one of the things, you know, parts fall out of the system? What do I do in that place? Because this book is what keeps it all together and tells you how to repair pieces in the system when they break down.

Speaker B: Yeah. So powerful. And, and the reality is as long as it's in the owner's head, he can't sell his head to the next buyer. So helping them figure out every little piece and, and that can be really challenging because a lot of owners, obviously, they have their fingers in a lot of sections and a lot of pies in their business. Um, but helping them document and put all those things into that book becomes a valuable exercise not just for improving and growing their company, but really for being able to sell it and market it to somebody else.

Speaker A: Absolutely. I spent a lot of time in the, uh, acquisition side as well, looking at small businesses, um, that were in that 1 to 5 million range and talking with owners in that exact position. Okay. So yeah, you're based on your EBITDA and your taxes, everything else, you're probably worth about 1.2. But you're gonna leave in six weeks. Okay. If you're leaving in six weeks, like the value of this just came down so much because you're the key man. Yeah. And so how much can you remove yourself from the business and systemize and create that book so that you can unplug, um, yourself? The further you are from the business, the more valuable it is?

Speaker B: Absolutely. That's super, super powerful. So one of the other things you, you mentioned was helping, you know, you didn't like the performance review idea. You wanted to be able to create that two way, that bilateral communication. I think that there's a really cool, um, idea in that, right? Like this, this idea that the employee, it's safe for the employees to, to bring something to the owner. Right. Um, and, and so that, that communication not just goes two ways when we're talking about, hey, how you doing? Or hey, how's, you know, how's the job? But, but really, if you feel like it's safe for you to share ideas, it's safe for you to share. You know, we don't have the little suggestion box in the corner that nobody, nobody ever opens or, or reads. We've got an opportunity, you know, the owner's walking the floor and, and looking for that conversation. Um, what's the most challenging thing about to create that kind of culture?

Speaker A: It's a good question. I guess it depends on where you're starting. Is that a culture switch that the owner has to change that historically they have not been very approachable. Um, but the next piece is how have you systemized it so that those employees are rewarded for bringing that information forward? Uh, not to say you bring us a good idea, we're going to execute and give you a big, you know, cash check. But is it, do they feel heard? Is it weighed? Is it, you know, put against other ideas? Is there discussion through it? You know, what's, what's the, you know, value system, like you mentioned before, behind it to say, oh, I am excited to go and share my idea because I know I'm not going to get shot down. If it is a good idea, they're going to implement it. Uh, and if it's not, at least a point of discussion that I can share and they're looking for ways to continue growing the business? Does that answer your question?

Speaker B: Yeah, I think it does. I mean, that culture shift, you know, uh, even the idea of creating culture, right. Culture in the beginning is the owner, whatever the owner's culture is or, or basic personal development habits are, that's the culture that most companies are going to take on. Right. And so as the owner becomes more intentional about culture, especially as he brings employees on, um, that's, that's pretty important, and creating that safe space and aligning with their values. Um, I think one of the, the most powerful things I've, I've heard was having daily questions around your values and you. We talked earlier about the questions you could build in your, um, interview process to identify values, but also using questions to identify, like, you know, how did I play today? Right. If. If fun is one of the company values. Right. Well, how did we play today? Or how did we, how did we have fun today?

Speaker A: Right.

Speaker B: And being able to ask that question. So are we applying that value? You know, and maybe fun is something the company does once a month. Right. We, we go bowling every month. Or, or, you know, how is the company, you know, living out that value and being able to ask questions? The owner himself or the, the leadership team being able to ask questions. How are we living out that value? How are we empowering people or whatever, you know, whatever there is for that, their particular value system.

Speaker A: Yeah. And if that fits for the company, I have like an open forum once a month. Let's go through our values. How is this affecting, uh, you. There's a firm I used to work with, cultivate, uh, advisors. They're fantastic with small business advising. You know, we'd have our monthly meeting and, you know, full company would get together and we'd go through each of the value pillars and somebody have to speak up and say, you know, how did, how did this come into your life while you were coaching this month?

Speaker B: Oh, nice.

Speaker A: Where did, um, you know, vulnerability come in? Where did honesty come in? Where did integrity. Where are these different pieces? And each person mentioned a story that they experienced with either within the company or with the client to show these are things that we're thinking about. Is it touching your life on a weekly, monthly basis? So I think that was a really good example of let's bring these values to the forefront. They're not just this ethereal thing in the background. It's, are we living this on a weekly basis and engaging employees to hear their experiences on how it's being integrated on a day to day basis?

Speaker B: Yeah. I think too many companies have missions and values that are only in their employee handbook and, and never really, never really talked about outside of the hiring process. And the companies that want to create culture are intentional about, uh, incorporating their values into their weekly and daily and monthly activities.

Speaker A: Exactly.

Speaker B: So tj, what's. Who's an ideal client for you? Who's the kind of person you just love to work with?

Speaker A: Oh, man. You know, again, it's, uh, with clients, it's similar as looking at, you know, potential employee. Uh, but I look at psychographics for a client. Like, how are they programmed? Um, so they're, you know, they're coachable. They are interested in growing their business. They're not happy with just kind of static or where they're at for the time being. Uh, they are introspective. I can't work with people that aren't able to look inside and say, you know, maybe the problem is me. Uh, typically on the mechanic side, you know, they're averaging about a million revenue, um, at the bottom of the scale, they're probably 250 to 300,000 revenue, up to 10 million, um, industry agnostic. It's mostly working with companies that are prepared to scale, but they are a subject matter expert that are in their field that they start to kind of hit, um, a roof, a ceiling on how they're able to grow. So maybe they hit a revenue topper or unable to bring on more employees or reach more clients. And it's because they're subject matter expert and they're a marketer, they're a carpenter or contractor, but that's their specific skill. And so what they might need is kind of a business acumen ying to their SME yang to say, great, let's go in all the good work you've done so far and re examine your systems and processes and find what has to change and grow in order for you to continue developing the company and start breaking through these artificial, uh, roofs we've created and get you a position that you can then get further away from the business, become an owner and a leader instead of, you know, the main person in the business all the time. Uh, those are my ideal, ideal person.

Speaker B: Fantastic. All right, tj, we end every episode with a guest sharing their words of wisdom. So for those entrepreneurs listening, what would you share?

Speaker A: Words of wisdom, let's see, stall for time by quoting, let it be

Speaker B: perfect

Speaker A: words of wisdom. Um, at least for entrepreneurs, it's more of a appreciation that entrepreneurs all have to make. That moment From Indiana Jones 3 where there's this leap of faith and it's scary as hell, but, you know, the best way to test a parachute is to jump. And so we all reach a point as a solopreneur, as an entrepreneur, there's all these different leaps and changes we have to make. And what I appreciate most about entrepreneurs and small business owners is they have to constantly make that blind faith that the preparation they've done, the skill they put in, the thought, the effort, everything, when they make that step, it'll catch. So the words of wisdom is you've gone as far as you can in all of your preparation. You've checked all your boxes, you've been curious and asked everybody around you to give you input. You've been vulnerable to receive that input. Make the step.

Speaker B: Nice. One of my favorite scenes of all time. So I love that you shared that and tied it back to words of wisdom. So thank you for sharing, tj. I appreciate you being on the show today. This was fantastic. And, uh, I know that those listening definitely, um, got some, some nuggets to apply to themselves and, and hopefully, um, if they're looking for some consulting services that they'll reach out.

Speaker A: Absolutely. Robert, it's been a total pleasure. And, uh, I'll see you in a couple days.

Speaker B: All right, look forward to it.

Speaker A: All right, take care.

Speaker B: Thank you for tuning in to this episode, brought to you by the power of intentional decisions that lead to massive action. These aren't just buzzwords. They're qualities that can help you take control of your life and build a successful six or seven figure business. To support you on this, on this journey, we're offering one of our most popular books, Fish out leads in 52 fresh ideas for Lead Generation. You can download it free@enjoybizlife.com and if you enjoyed this episode, please show us some love by liking, subscribing and leaving a review. But most importantly, share it with someone who needs to hear it.

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