A Million Dollar Information Technology Startup $$$$

A Million Dollar Information Technology Startup  $$$$

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hi this is jim gibson thank you for joining me  today on my channel i'd very much appreciate it   and today we're going to be talking to a very  interesting young man who used to work for me   a decade ago or so i don't know five six years  ago maybe i don't know um but i've kept in touch   with him and uh saw what he was doing and and what  his uh business was he started the business from   scratch and now it's well over a million dollars  now maybe you're not interested in business   maybe you're not interested in starting a business  and if you're not i understand but he talks about   his business that can help i t people in the  future so if even if you're not an installer   his business can benefit you even if you are  an installer or an msp uh his business can   assist you so you want to hear this you want to  hear his story because it's really interesting   and he's a great guy he's done a really good job  he's worked hard and again he's seeing success of   well over a million dollars and he talks about  strategy business strategy things like that   now before we start i have this real quick uh  question for you or request i need subscribers   so please subscribe uh to the website most people  who make comments by the way are not subscribers   i'd really appreciate it if you could subscribe  also at the same time please hit the like button   and notify other people about this video is this  if this is of interest to you and again i think   you're going to find it interesting if even if  you're not going to start a business you'll find   it interesting how he did it and even if you  are going to start a business then you should   hear his the way he did it and what he's thinking  through now at the end we're going to be talking   about two books we're going to be talking about  the the millionaire fast and we're also going   to be talking about the e-myth and how he  used those two books to start his business   so thank you for coming to the website today i  mean to the channel today i really appreciate it   and listen to what riley chase has to say about  his business and how his experience can help you hi this is jim gibson with cablesupply.com  thank you for joining me today very much   appreciate it and today i have a very special  guest that i've known for many years uh   back when uh he worked for me back when he was a  teenager and uh a very impressive young man that   man i tell you he learned cisco ccna faster than  i've known anybody to learn it and he was always   fantastic with software and and we go  back many many years have not really   i mean we talked off and on over the  years and that was fantastic but uh riley chase now owns his own company hostify  and riley i know we've talked before about   your company but why don't you just give a a  quick brief of your company then we'll go into   business and why start a business things like that  sure yeah so we are um we provide a service for   people who use ubiquity products for their network  equipment they can connect all the devices to   one cloud server our team provides like the  updates backups ssl installation renewal all   kind of the boring stuff and also support so  um for our customers out there we have over   2000 customers and they've connected hundreds of  thousands of these network devices to our service   and we have a support team that's very skilled and  specialized in uh ubiquity products so you're able   to we're able to provide like uh phone email live  chat support anytime they need help with stuff   so yeah that's what hostify does well i know that  you know if i was starting a cabling company or   if i was cabling right now i would definitely  use your service because why would i want to do   this myself you know i got to have an employee do  it or i have to learn it myself i got to set up   my server you guys take care of security patches  yeah you're there to help when i get stumped and   there's just no uh support from ubiquity on these  things that's right so you get a chance to do this   um you know and support me so i can just  concentrate on sales just exactly ubiquity   installed in the ceiling and then i call you i  mean there's a little more involved than that but   right or i don't want to learn a whole you know  i don't want to become a cisco certified person   and take care of cyber security and everything  else so you've got a fantastic business one price   right per month that's right yeah it's 99 bucks  a month you can connect up to 250 devices for   99 bucks a month you know prices might change we  also have annual plans we can get a discount but   uh it's pretty simple yeah pretty simple service  and it's your server i don't have to yeah that's   right provide electricity i don't have to protect  it i don't have to air condition it in the summer   and i have you know i don't have to secure it so  someone breaks in and steals it uh that would be   a problem and i don't have to worry about it  24 7 your server takes care of ubiquity and   all the issues and and cyber security and  and software upgrades and stuff like that   that's right one of the things i wanted to talk to  you about is what caused you to go into business   um i don't know i feel like uh i've always wanted  to have my own business i'm not sure exactly   um when it started i know when i worked for  you i'm actually someone who inspired me   because you know i got to kind of first hand get  to know you and your story and i just found it   really interesting you have you had a this is in  2012 you had an i.t service business before you   sold it no voice data systems where i worked  as a cisco network engineer but you also had   cable supplies you had an e-commerce store that  you're running out of the warehouse in the back   and and then you also had a youtube channel where  you know cable supplies youtube channel and other   youtube channels were um i wouldn't say you were  famous but i mean you had quite a following you   know thousands of tens of thousands of people  and so i thought that was really interesting and   um i think as a young you know kid trying  to figure out what i wanted to do i i liked   technology and i just i thought it was interesting  and i want to make more money and i i feel like i   i guess from a young age i kind of realized that  like there's a ceiling to how much you can make   no matter how skilled you are there's only so much  money you can make and it's you know probably less   than 200 000 a year or like maybe 200 something  would be like the upper limit maybe i don't know   but i always felt like if there's a ceiling you  know i should play a different game that doesn't   have that ceiling i don't know i don't know i just  always thought that since i was you know a young   age i guess now you're talking about the limit to  250 000 it's basically the limit for an employee   right you're not going to i'm owner no no i'm just  talking about like if you're a skilled worker you   know like as a cisco network engineer you could  probably make a hundred thousand maybe 150 000 a   year and then maybe if you're like an executive of  a company you can make like 200 000 or something   like as a business owner there's no limit to  how much money you could make in a year and um   why spend an entire career slowly working your  way up to 100 or 200 000 a year when you could   you know make more money i don't know  that's kind of the line of thought i guess   so you're you know a lot of people ask the  question um are entrepreneur entrepreneurs learned   are they born you know is this something you can  learn or is it something that you're you're born   with i think you can learn it for sure um and i  think yeah definitely you can learn it you i don't   think people are born entrepreneurs even if you  start at a young age you still have to learn it   and um and a lot of people don't be like decide  to start a business until they're a lot older   and i think there's also like that stereotype  that young people are more successful or they   start businesses like especially with tech  like there's kind of the stereotype that like   you know young college kid starts business  but in reality the statistics say that   uh someone in their 40s is more likely to be  successful in business than someone in their   20s and it just has to do with experience and  so that's kind of why i think you you learn it   um but there are definitely attributes of like  you know personality type or something probably   you get drawn to it what do you think um yeah  i don't know i don't know that answer i i kind   of you know some people say well you know it's  it's something you can learn but i think you   have to have it to start with you have to have  that desire like you said i hated that ceiling   someone told me this is the best you're ever  gonna do i remember working uh for an organization   and they said that to me this is the best you'll  ever do and i decided that day i'm quitting   yeah so if this is the best i'll ever do then  it's time to move on and sometimes as an employee   that actually gives you a raise you go into  another company get a raise instantly you know   but yeah for me i remember being in elementary  school and there was uh in philly and there   was a creek there in philly and went through  it as a kid and as we're looking at it there   was a bunch of tadpoles and all my buddies they  got one or two tadpoles took them home in a cup   i went home and got my mom's uh nylons and made  it into a net that using a a metal hanger i turned   it into a circle and put the net on it and scooped  these suckers up and stuck them in a big bar and i   went to uh i went to school next day and at lunch  the the to buy lunch was 35 cents back then you   get a lunch for 35 cents in school so i i took  my tadpoles and i priced them at 35 cents each   and the boys came in the bathroom and i said yeah  and i collected 35 cents and gave them a tadpole   they had to go get a cup in the uh  and take it home and everything else   and i did that for a little less than a week  and i used to joke that i i made more money   than my dad did working full-time for the city  of philadelphia my pockets were completely full   every day it was hard to walk home a little metal  lunch box completely full of coins and uh each day   and finally the principal found out what i was  doing and he stopped me from doing that but i i   made hundreds and hundreds of dollars uh as an  elementary school kid and thought this is great   you know my parents would say well you know you  got your salary of one dollar you know your your   weekly uh allowance of one dollar but you  gotta take out the trash i thought that week i   thought i could pay someone else to take out the  trash yeah yeah that's all right i got the bug   at that point you know and i did many other  small businesses uh just always looking for   an opportunity to start a business and yeah  i learned a lot along the way even as a kid   and realized that hey i'm probably an entrepreneur  but you know uh noah voice and data was 28 years   uh yeah the black always paid my bills and always  paid my uh my um vendors that's the key man   pay your vendors ahead of time don't wait yeah i  learned a lot working at uh nova and um i think   i was inspired by your story too because you told  me about how you know you started it you know you   already had a family i think at the time and  you you just said we're doing cabling projects   on the side and and so um there's only been a you  know a lot of times i worked for bigger companies   i didn't work for that many companies but i  there was only a few times i got to work with   the owner of the company like you in a direct  way and learn from someone like that because   when you work for a bigger company you're just  kind of that you know you're feeling this one   little part of the business you don't really see  how the rest of business works like how it got   started or how sales works or the different areas  of the business so i got to learn a lot about um   uh working with your son matt he was always really  good with customers and teach me more about the   sales side like hey you gotta talk to him like i  was very shy you know i would never really talk   to anybody and so i'm a lot a little bit more  extroverted now but he would tell me you know   hey you gotta talk to the customer you gotta get  to know them you know what are their interests and   make small talk with them so he would always  teach me he was always giving stuff like that and   learned from patrick and um yeah i just really  liked working with the guys there but i think   working at a small business you get to learn  the different areas and everything so yeah   that's interesting if you're thinking of going in  business and work for someone in that business you   may find out that you don't really like that  that uh thing that you have your strengths   and you have your weaknesses and i always  think they're god-given strengths and we   and you have got given weaknesses so it points you  in the direction you should go and um for me it   was i was always uncomfortable working for someone  else i always felt like i should work for myself   and you know one of the things my wife challenged  me early on was when you talk about being um   you know a little bit shy or something like that  we'd go to a an event where there was a lot of   professionals things like that and she would say  i challenge you to get a business card from every   single person in this room and so i would go  out and i would hand everyone my business card   and i'd get a business card from and get to know  their name try to remember their name say it over   and over and over again and things like that and  a lot of business uh at nova came that way uh by   going yes and learning people's names and it  was a challenge it was not comfortable but it   was a challenge and i learned from it and i like  business but i've also had other businesses that   didn't work out before this so a lot of people  you know a lot of the employees would see this   successful business and and they would say well  you know you send me out and and i do all the   work and you get all the benefits well they have  forgotten about you know the startup they forgot   about the fact that i'm illegal responsible and  if you accidentally injure someone they sue me   not you type of thing and i'm the one responsible  for the mortgage or the rent and things like that   and they they forget all that and uh um now you've  had other businesses haven't you before this   yes i mean the main business i had before this  was uh lachlan networks and it was an i.t service  

business where i did cabling websites phone  systems i really did a little bit of everything   and um and so yeah that did that starting in 2014  until uh i mean technically it's it's still the   legal entity that owns hostify so um but i would  i stopped doing project work in uh 2018 or so   so why i own before nova i owned a a  remanufacturing company and we remanufactured   alternators and starters and things like that in  philadelphia and i had a partner and i learned   one big lesson every time i i started something  i learned a lesson and that big question was do   not have a partner because the harder i worked the  less he worked and uh and i don't think you know   i don't think he was completely ethical and yet  i was going to be held responsible with the irs   and money was here and things like that and you  learn a lot in the business when you're doing   business to business you learn you see other  business structures and how people work at them   and you you learn that there's certain ways to  do it in certain ways now i'm always learning   uh constantly learning in business but  you know there's two books that you and i   read and i was discussing that with you on the  phone about a month ago or two months ago yeah   and one was the fast lane yeah yeah so millionaire  especially the millionaire fastlane yeah this   was a book that was really influential and the  entire reason actually that i started hostify and   kind of diverged paths from lachlan networks which  i was working on as an i.t service provider and my   next step was like trying to figure out recurring  revenue and stuff and then i read that book and   decided i should start a software as a service  business positive i was the first idea that i   had and or you know one of my ideas that i had and  so that's um how i got started there but the whole   premise of the book is is kind of like thinking  more about the business model and not just kind   of blindly going into a business because it's  what you know or what um or like a business   type you're familiar with like a service business  it's very simple um but really thinking about how   can i scale this and so yeah that's what kind  of got me started in the book he talked about   you know you know a product business uh where you  can create something once sell it over and over   um and so that's really something that i thought  a lot about and in the in the book actually he   talked about software as a service being the best  business model in the world because you have the   element of recurring revenue and high margin where  unlike a physical product where you have this cost   of producing it and shipping it and all that with  software you create it once and you can ship it   over and over over the internet with virtually no  cost so i just found that really interesting and   so then i started googling like literally like how  do i start a software as a service business and   um you know just step one you got to create a  website you got to have some something someone can   buy a subscription once they buy the subscription  needs to go do this thing and so yeah just kind   of figuring out piece by piece and um there was  another blog post to help me come up with ideas   and stuff like that so but yeah that book was  really influential for me um i'm not sure when   you read it or what what are your thoughts on it  well i i've read it actually multiple times um   it has the wackiest name though a millionaire fast  lane it sounds really cheesy but it's a great book   yeah but i saw enough of his youtube videos that  he intrigued me uh to read the book and yeah and   you know and of course a lot of things he said  i already knew being in business for all these   years but it's reinforcement for me it was like  yeah this guy knows what he's talking about this   is really a fantastic book and uh you know he has  that thing sense uh do you remember the acronym   what does it stand for yeah it's uh control i  think it i think it's control entry need time   scale yeah if you want to walk through all those  but those are really good let's walk through them   let's talk about the control i actually forget  what control what do you think control the   control one was you have to control like you  don't want to be an affiliate control is what   i violated with noaa voice and data systems i  had one one major vendor and that was toshiba   there you go that's control so i had one  you're dependent on them and they controlled me   and when they decided now remember i was the  largest uh toshiba dealer in the country so   i sold more toshibas than anyone else throughout  the united states and i sold to the big companies   petco ameriquest mortgage and everything else  so and they would come to me for service and for   add moves and changes things like that so that's  rarely where nova made the money it was not local   installs and stuff like that and and it was number  two uh of business telephone systems you know 15   20 years ago and they decided they were going to  exit the market uh and they gave us like a month   you know again in a month we're going to exit the  market well you know so i i did i violated that   sense thing uh you know the control because  they controlled the product uh i did not   so when they yeah that was that was a majority  of my business was national accounts with toshiba   so i'm no longer in business basically i don't  think anymore i think another example he used   in the book was being an affiliate marketer so  you build up a following and you're promoting   this affiliate marketing thing and you're starting  to make a ton of money off it and then they   change the terms or they stop they go out of  business or something out of it you know you   don't have control of the you know particularly  the terms i guess like as an affiliate marketer   you're getting a percentage and they can change  that on you and so yeah control is about um   about yeah having you know ownership of of the  product kind of end-to-end in a more end-to-end   way where someone can't change one thing and it  affects your whole business but uh that's tough   one yeah that was a tough one when they said we're  no longer going to supply you with telephones   because we're going out of business at the end of  the month we don't this is not profitable enough   for us completely out of your control and you were  very dependent on that them in that way yeah which   i think i think i know every business has its  risks and i don't think there's anything wrong i   don't think you should have been you know knowing  that now i don't think you should have been like   oh i shouldn't do that business like that was a  great business and it ended you know it was out   of your control i don't think every business can  hit every one of these but these are really good   things to keep in mind control um entry was the  next one just on the cnts so entry this is a great   one so this is like people you always see like  oh so-and-so is the business owner now but like   they're just like uh what are these multi-level  marketing where you just you bought something   and now you're a business owner like that's that's  entry so like anyone can get into that there's no   there's no cost to enter maybe the cost is buying  the multi-level marketing package to do the demos   or or whatever um but when there's when the  entry is so easy that anyone could just start it   then you really it's really not going to be a  good business if anyone can do it with very little   money or expertise i think is that did i nail that  one you nailed it man that's that's it uh barrier   what is the barrier to entry and yeah and some  businesses are really high at a barrier to entry   so yeah it's like service businesses on the lower  end you know anyone can start a service business   um i don't know yeah some some businesses  you have to buy a lot of equipment you know   yeah it can be really expensive the expertise  um yeah the investment in the expertise   yeah it's a barrier you know what is the the  level of entry that you need to commit to start   a business and to be successful it's also at that  point risk um you know you you put all this money   all this time and everything else into something  and then it may not um you know it may be a big   barrier for someone else to be your competitor  right such a big barrier for you that you can   start the company next one yeah so that one's  entry and then we have meade so i think that   one is and i haven't read this book in like four  years so i'm trying to remember here but you know   needs seems pretty obvious like it needs to be  something a customer you know is actively looking   for a solution for not something that you've  created an idea and now you're looking for a   problem to solve with it it has to be something  that like is a real problem people are already   paying money for it um and i think uh i think that  was one that i learned is something that people   are already paying money for is a good uh metric  um if they're not already paying money for it then   i don't know it's it's tough one if they actually  need it or not if you convince them to start   paying money for something that they don't already  need that they're already paying money for it what   are your thoughts on that one well my thought is  that you know i remember the quote from henry ford   that said customers customers if i listen to  customers they just want a faster horse yeah   rather than the car but at the same time there  is a big difference true and he pretty much ran   the market at that point remember he said you can  have any color car you want as long as it's black   and he learned because chevy came in and really  took him the task on that i was watching a seminar   put on by salon school of business and it was  because i was bored uh because generally i   think that entrepreneurs um know a lot of this  stuff already or learn it and there's a lot of   times you can't you just can't learn you gotta do  it yourself anyway they were talking about it and   there was a whole classroom full of uh uh of uh  students and the guy actually the guy was pretty   good uh the professor he stood up and goes what's  the number one thing you need to be in business   and the one person would say well you  need money and he said no that's not it   another person say well you need staff no  that's not it well you need a business plan   no that's not it and finally finally after  about five minutes and i'm shouting customers   yeah customers that's your main thing you can  have a great business if you don't have customers   it's useless so sure he turned around and and  finally someone said customers and the guy said   yes and i'm thinking you students have been in  this master's class on business administration   and you haven't figured out that the main thing  in the start of business and to have a business   is have a customer and that's what he talks  about is need you've got to have a need   where is your schedule and who's going to be your  customers you've got to have that need and yeah   you know a million times you guys said over again  where's your customers coming from where's your   customers coming from who is your customer  you know which what's your your your uh you   know who identify your customer yes and that's  um identify the customer you identify the need   so c-e-n and then t i think is time so i think  this is uh again you know refreshing my memory   here but uh it's you don't want to trade your  time for money and um is this a business that   you can trade someone else's time or you can  um you can instead a product where you can   sell it over and over uh where you input your  time and you know obviously it takes time to   create it and everything but at some point can  you sell this and it's not a one-to-one match   where you're you know 100 an hour or whatever  it is um is this a business that you can scale   independent of the time that you're putting  into it without a you know direct match between   your time and the money you're making from  it is that what time was i think yeah well   what is it if you're trading time for money you  don't have a business you have a job that's true   so if you want to have a a business you have to  get to the point not saying at the very beginning   because very beginning i'm sure just like you you  know i've had 12 hour days 18 hour days i remember   one time starting at four in the afternoon  because i i was working at burlington air express   and my day ended at four in the afternoon and  i started seven in the morning ended at four in   the afternoon i always bought my dungarees with me  and my shirt that had the little logo on it nova   and yeah and uh i would go out and do cabling  and uh sometimes i would cable all night long   and i would go home in time enough to eat  breakfast get a shower and go back to work   yeah yes at the beginning there's a lot of  time invested but you have to have the model   the business model that can progress past that  time that you know like with me i i uh hired   people like you uh to go out and do the kit to  go out and do the installs and i would train you   guys uh or someone at the company would train  you all to go do these things and then you know   it is no longer i'm not trading my time uh yeah  you know i'm multiplying it so i have people out   there doing cabling jobs i couldn't possibly do  those cabling jobs that day so you know i i was no   longer so like if you were uh if you were trading  like you're you were doing speaking engagements   and it was very much your personal brand and  you had to go on a stage and you got paid to   speak um that would be a violation of this tenant  you know this is kind of like the commandments   of of a good business that's scalable business in  this book so i guess that i think that would be an   example of like a um violating the time principle  because you can't train someone else to tell your   story on a stage i mean i guess you could but  if you if you are creating a personal brand you   know not that you shouldn't do that but um that  is kind of you know that's something you can't   have someone else do it's not scalable because  you're trading your time for money it might be a   lot of money but um yeah i think that would be an  example of of breaking the time principle on that   i think philosophy here and you may have brought  it up speaking engagements might be the one in   a principle they're paying you 500 000 dollars  right then you take the money and you invest it   in real estate then yeah yeah then you you know  you're getting passive income uh right right   so that might that might be the i  might break the rules i don't know   but yeah that's tough one what's the last  the last one would be scale i think so cnts   scale is this something and i guess that goes back  to the timeline kind of where is this something   that scales is a repeatable process so you  might have something that it's not a one-to-one   trade for your time but if it's not a repeatable  process like for example uh custom i.t work where   you're doing a custom service it's different for  every customer they each have special needs like   they all have their different requirements and  it's not a product where you can you know do it   the same thing over and over and over the exact  same thing um in a cookie cutter kind of way then   that's that's breaking the scale tenet and so  um yeah i think another great book on that is uh   there's a book called uh built to sell by john  wareherlo and that was one that i read as well   and it talks about the agency model it's uh the  agency model in the in the book it talks about   a graphic design business and every customer  is different they each have their different   requirements and so he's having trouble  scaling this business but then as soon as he   productized it he made it where uh all they do  is local creation there's a four-step process   there's this step this stuff this stuff and so  they made it where he could hand this off and   scale it and you know it has a fixed price also  it's always ten thousand dollars for the logo   and um and so he was able to turn what was a very  custom process with different customers different   requirements turned it into a productized  service and then scale that over and over   um following the same process it's still custom  for each person but it's more productized you know   so there's levels to it um so i think that was  uh that was another book that influenced me to   starting hostify where you know we instead of i  guess like as an i.t service provider as locklear   networks my previous business it's like how am i  going to become an expert all these different all   these different things i'm doing cabling websites  programming um phone systems backup solutions and   every time i was doing a job there's like this  huge learning curve and it was definitely not a   productized or repeatable thing each customer had  a different requirement and so with hostify i took   something and um it's a very just this one part of  the business which was the wireless network side   and bundled it up into this support and server  maintenance package and so that was a product   that had a very specific requirements a fixed  price and i had recurring revenue element   and i could sell that over and over and as the  business grew i got better and better at that   skill set because we're doing the same thing  over and over so it has other benefits like   being able to hire people was easier being able  to automate stuff was easier and so um once you   do that where you have like a product instead of  a custom service it changes everything i feel like yeah um scalability so you have scalability in  your business and doesn't mean you have to have   you know you got one coffee uh shop you should  have a hundred that's scalability but you're   scaling in a different way which i think is  smarter um it's just nicer you can go on vacation   um yeah sometimes when you own a company  especially at the beginning you can't go   into yeah yeah and now that i have employees when  i was just me it was no vacation working all day   all night weekends everything it was it was tough  but uh yeah now that i have employees i can trust   them to keep everything running while i'm gone  well you know they're sort of like um what would   you call it phases that a company goes through  yeah and it and at the beginning it's going to   be all your time it's going to be you know it's  not going to be scalable yet you have to figure   that out sometimes you have to change your model  and you have to change your business model and   there's good business models and there's bad  business models and so this book was fantastic   i'll put a link down below um great book yeah and  the author and everything else he has a couple   of books out have you ever seen any of his other  books i do i have his other books i haven't read   them though um the millionaire fastlane was the  only one that i've read i know he has unscripted   and i think another one about uh something about  the rat race but i think the theme of his books is   is uh yeah business models and you know  encouraging people to try out business   becoming a business owner i think sometimes  people come into business backwards   uh they say oh i'm gonna start this business and  um and and i have a friend a very good friend   he's a nice guy he's retiring and everything  else and he says i'm gonna start a coffee shop   and i said come into it from the other direction  where's your customers who's your customers what   are they willing to pay what is your specialty  there that you're going to offer to them that   they can't get from starbucks down the street  um you know it might be atmosphere maybe and   i said so you got to realize that nine out  of 10 businesses fail in the first five years   and and thinking this through ahead of time  and maybe even going into it slowly to test   the waters with me i was working at burlington  ericsson senior communications analyst there   and it was a great job i had great employees  but what i did is when i was doing it work   i would keep track of the i.t work and i would  try to figure out my income from this work and   it was getting pretty consistent and everything  else and as i and i couldn't see a consistency   month to month so i broke it out every quarter and  then also all of a sudden it was going like this   next and and i could see if i hit this level that  i could break even i could pay my health insurance   i could pay my you know all my bills and i could  still feed my kids and uh so when i got a little   bit past that level that level that you know that  that i needed that's when i put in my resignation   with the company and i remember all the people  telling me don't do this you're crazy yeah crazy   thing especially my mom she said yeah you're  giving up a great health insurance and they have   yeah they have retirement and i said mom i have  my own health insurance and i'm gonna have my own   retirement i don't have to count on anybody else  so yeah it's this is a hard path and not everyone   should take it some people they do they want their  weekends off and if you're going to run a business   you don't get weekends at the beginning but  later on you get the week off yeah and try to go   anywhere you want and do anything you want later  on in life you know there's uh one other book that   that uh i always liked i just and then  nova by the way was uh e myth revisited   yeah yeah that was a book that i read as well that  uh it came right at the right time uh somebody   i was explaining how frustrated i was that  uh this was my business had gotten to about   a hundred thousand dollars per year in recurring  revenue now keep in mind there's expenses and   stuff so maybe a sixty thousand dollar per year  salary i could have afforded for myself at that   time um but i felt like my business was a failure  i had this moment where i felt like i had worked   my butt off and i created this business and it was  great but i um i didn't have any time off i didn't   have any uh i couldn't go out even for a weekend  to go on a trip without um urgent stuff happening   and having to i was at a campsite connected to my  phone my laptop trying to help a customer and so   it was just becoming really stressful and so i  felt kind of like a failure that i'd created a   business the whole idea behind the business was  you know have more time more money instead i had   less time less money than i had at my previous  job and so i was kind of uh venting to a friend   about this in in a business owners group in a  chat room that uh my part of my investors had   uh created a chat room for us and someone had  recommended the e-myth revisited and he said   you know here's how you could you know get help  yourself out of the situation by hiring somebody   and so up until reading that book i kind of felt  like how could i hire someone who's like me who   knows how to do all this stuff because i was doing  you know linux servers and providing support and   writing code and so there's all these different  parts to the business and doing sales and   and i was like how could i find someone who could  do all this stuff and then if i did find them how   could i afford them and so um i guess what i  kind of took away from that book was that i   don't need to hire another me i need to create  systems and processes that i could hand off to   anyone with the right technical knowledge  they'd be able to follow a system for any   kind of support ticket that came in they would  know here's step by step how to do that so that's   kind of that helped me a lot to figure that out  and also writing down like kind of an org chart   so thinking about my business as not just me but  it's me and i wrote my name on all the different   roles in the business so like i'm the ceo and also  currently i'm the sales person i'm the programmer   i'm the support person but in the future um these  are going to be separate roles each each of these   is going to be a separate person doing just  this one thing and so that that helped me a lot   um i i read this um while you know i i was owning  nova and i remember back in the marine corps they   had this thing called desktop procedures which  you were supposed to write down everything you   need to do to do your job and then and if you're  an administrator type or a staff nco you would   have this book and so if you were sick or gone or  someone else could open up that book and see all   the the policies the procedures and things like  that and that's what i learned from e-myth is   is that you need to have the policies and  procedures in place like you said that you   can hand off to someone else i already  had people doing accounting dispatching   but i decided i'm going to think it through  each position and create this desktop procedure   and we had it and i remember one time the  accounting lady up and left i don't you know   the password to get into the accounting system  i don't even know this where do i go from here i   know anything about quickbooks at the time that's  something if you're going to be in business you   got to have an accounting system and i'd recommend  quickbooks yeah and uh so to make a long story   short i you know my wife came in and uh  and i handed her the desktop procedure   and she said oh it's right here how to deposit  check see it's on a tab but i did not write that   that was something i if i remember right my  daughter if you remember christine she yeah   and then nice before this new person came in she  left and and she you know she had a family and she   took care of that but every single thing and then  the the lady that did leave she updated it as she   went on so we had policies and procedures and  how to do things so it's not this is our rules   and this is everything that is done and it  and that's what i learned from the e-myth   but the the second thing i learned is something  you already hit on was i mean it's a great book   and it's easy to read it's fun to read yeah story  he does everything through stories he doesn't give   you a list of these six things he actually runs  a a real life story and he talks about that lady   that on the the pie shop right yep and she spent  all this money on on ovens and everything else   and she's getting up at four o'clock in the  morning and working till two in the morning   and she was doing everything herself and she  was at the point of exhaustion and she wanted to   get out of it and she couldn't because she had  the lease she had payments on the oven and all   this other stuff right and and and you know his  point was are you starting a business or are you   um creating yourself a job and this lady was  stuck but i don't i see that a lot of times   when people are starting a business that they  don't think it through from end to beginning   not just from beginning to end but go  from that's right so what is it in mind   and you can always change i mean you can always  change it and but think it through is it a good   model just because you're good in one thing uh  doesn't mean you can turn that into a business   you know the old thing of uh he mentions a  technician you know if you're a great machine   doesn't mean you're gonna be a great business  owner so i think that's a lot of us that start i.t  

businesses this we were we were great technicians  so we thought we would be great business owners   but then you realize the technician is just one  small part of doing the actual job is like 20   of the where you know you should spend 80 of  your time doing sales and marketing and talking   to customers and and only 20 doing the actual uh  performance of the work that whatever it is you do   so it's very different yeah i had um uh  one of the employees came to me one time uh   and he said um my father-in-law said i  can do this myself but why do i need you so he quit and went in the business and failed  within three months because it's not if you have   the technician mind frame um you're never going  to succeed as a business owner or you're going   to have a rough time until you learn how to be a  business owner and that's what i like about your   business that i could be running a business and  i don't have to have an employee handle my unify   i have you to do it and i can pay one rate and  yes this is an unabashed commercial for you   um you know one rate and um someone else is  going to take care of it to take care of work   so that i do uh we have an accounting are you  still there jim yeah i'm still here again oh   oh internet was cutting out  for a second there but um hold on a sec let's do a check  here and do the do the thing hold on oh man why is my  internet going to be bad today   all right i think we're ready now go ahead  and we'll close it okay we're okay now can you hear me yep i can hear you okay trying to continue on here  which is so annoying you know   you know uh guys if you're watching this and you  like what you hear i i need those likes and i need   the subscriptions so subscribe not subscription  subscribe to the uh youtube account because i'm   trying to get to 100 000 subscribers i think i'm  around 54 right now or 50 somewhere around there   and you know you just get more credibility  with manufacturers and also i can show some   more of the products things like that  are you back with me nope i lost them well i'm going to finish up we'll see about the  internet connection um but emeth fantastic book   if you're gonna go into business you need to uh  read that and the millionaire fastlane if you're   thinking about going in business you need to read  that are you back you're back i'm back yeah i   uh i switched internet connections here it's  having some trouble hopefully it's good now um   i forgot what i was saying what were you talking  about we're talking about the e-myth revisited   yeah that was a that was a really good one um  what was the last thing i was talking about yeah i revisited it was the one i read but uh  yeah i think i think one thing about the book   that i felt was a little bit abstract was she was  baking pies and so i felt it was kind of hard for   me to apply that to my own business at first um  because it you know pie obviously is very simple   you you know you have the steps step by step  this is exactly how you make a pie every single   time now with a technology business you know like  like a noble voice and data systems or a hostify   um it's not as straightforward we're not baking  pies here things are quite complicated there's   a lot of different things that can happen  even in my own business with just a really   small area of things that can happen um and  so what i what i kind of figured out was   um what i did is like as support tickets came in  i would record myself doing the support ticket   and then watch you know later i would you know  realize that i okay i had done the same thing   10 times and um you know i create kind of like  a rudimentary process for it and so like anytime   this type of ticket came in i would  hand it off to my new hire along with   the guide or video i had created of me fixing  a similar ticket in the past and so over time   the guides that we had got better and better  but we didn't i didn't go out and like   create the guides um i waited for the request  to come in first then i'd create the guide and   then the guide would get proved over time and then  the ultimate the best part like you had mentioned   is when the employees actually take over create  their own guides and improve in existing guides   and so eventually you have now we have an  internal database of like all these different   guides and when we have a new hire like you said  as someone new comes on we're able to train them   a lot quicker because we can just hand them  a ticket hand them a guide that goes with it   and they can follow the step-by-step process to  learn about how to solve this particular issue   and anytime a ticket comes in that we don't have  a guide for we'll create a new process and so um   now i'll even i'll read my own guides  and my own processes and follow them   because uh it's just nice you know you don't have  to remember everything you can just go back to the   the process um and and refresh your memory on  what the steps were for restoring a server or   um whatever it was installing  a certificate ssl certificate   so um yeah that's kind of how i handled  creating the processes and stuff but uh you know as a business owner you're constantly  improving and you're constantly you need to   be constantly improving reading books i  read about uh one book a month on business   i know some people read one book a week i i don't  have that time to read one book a week yeah these   two but not anymore um so it's one book a month  and so i'm reading all these business books even   the ones that have strange first our titles uh the  millionaires vaseline that sounds so cheap yeah   but it's such a great book it's just a cheesy name  um you know we'll put all those links down below   i'll put your link to your business because i  think it's a fantastic business you really got   me thinking a lot of ideas uh on how to to do  things and i always told my kids when they were   younger now they're all in their 30s um but i  told them they're younger whatever you want to   do in life there's probably someone who has done  it before you and you need to read their book   yeah and learn from yeah you know yeah you asked  me earlier what uh piece of advice i would give   um for people that are new to want to  start their own business and stuff and   yeah that's my number one piece of advice too  is read a lot of books and particularly read   books about people who you want to be like or  like whether it's a certain type of business or   i also listen to a lot of podcasts so when i was  starting a software as a service business there   was one person in particular who wrote about  his story building and and eventually selling   his software service business tyler tringus  and he wrote a book called microsas ebook that   really inspired me you know reading kind of you  know his entire journey from beginning to end   and then i also listened to this podcast called  the software as a service podcast and got to   listen to like over 100 uh episodes of people  telling their story about how they started it   built it grew it sold it and so um yeah the more  you can learn about other people who have already   done the thing that you want to do the better  yeah you know i know you were on lawrence   is that the name of the uh youtube lauren oh  yeah tom lawrence uh lawrence systems youtube   channel he's he's a great you i'll really  i'm a fan of his channel and he has his own   i.t service business in detroit michigan and  i actually went to visit him before and it's   in the studio but yeah i've been on his channel  a couple times yeah and and i i don't listen   to everything he says but he has a lot of good  ideas and and some of the products i'm not really   interested in because that's not what i do that's  what he does but when he talks about business   he has a lot of interesting ideas and i always  like to listen to someone else in their approach   and he said that's a pretty good youtube so i'll  put that link down there for his youtube account   and yeah and uh but you know for i don't know the  guy personally don't know him beyond what i see   on on youtube but he does uh you know he's he he  has some really good ideas and he seems to be a or   you know really uh interesting person uh well what  do you say we wrap it up yeah it sounds good it's   been great talking with you jim thanks for having  me on the channel uh riley is always good talking   to you and i always enjoy and i just applaud  your success thank you for spending time tim

2022-02-19 15:25

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