I want to own a passive cashflow business!
Ok - then you need an operator my friend.
How we've hired 100+ operators (some amazing some spectacularly bad).
A π§΅
Ok - then you need an operator my friend.
How we've hired 100+ operators (some amazing some spectacularly bad).
A π§΅
How to find this elusive human who will do all work while we cashflow?
Stop, no free lunches, expect skin in z game.
I started as an operator. Like a RE property manager.
They took $ risk, I took time risk.
Done right. You are giving only path to REAL wealth... ownership.
Stop, no free lunches, expect skin in z game.
I started as an operator. Like a RE property manager.
They took $ risk, I took time risk.
Done right. You are giving only path to REAL wealth... ownership.
THE BEST PARTNER OR OPERATOR.
Always is one of two things:
- Potential talent - someone you know and trust or someone
OR
- Proven talent - who has done the job before
Always is one of two things:
- Potential talent - someone you know and trust or someone
OR
- Proven talent - who has done the job before
I don't like having people learn on our dime at the top.
If we can bring someone up in the biz that's ideal.
If not we go find a known commodity.
If we can bring someone up in the biz that's ideal.
If not we go find a known commodity.
Our trick when we don't have a bench (rule #1 always have a bench)
We were looking for an automotive shop manager. Here's what we did:
We were looking for an automotive shop manager. Here's what we did:
Step #1: Call or Visit the TOP local franchises or Companies
- Become a client
- Asked for the manager
- Dropped a card or asked them to call me back in their off-time if they are interested in an opportunity to run their own garage.
- Only 1/2 of 10 will do it.
- Become a client
- Asked for the manager
- Dropped a card or asked them to call me back in their off-time if they are interested in an opportunity to run their own garage.
- Only 1/2 of 10 will do it.
Step #2: Compensate well: Pay for Performance
Proven talent will cost more.
Consider a bonus-based pay or an earn-in or buy-in for equity.
βIf you think itβs expensive to hire a professional, wait until you hire
an amateur.β β Red Adair
Proven talent will cost more.
Consider a bonus-based pay or an earn-in or buy-in for equity.
βIf you think itβs expensive to hire a professional, wait until you hire
an amateur.β β Red Adair
A skilled laborer cannot always step up to lead.
Look for experience as well as leadership in their past.
The past is the best predictor of future.
Look for experience as well as leadership in their past.
The past is the best predictor of future.
Step #3: Look for military
- A military officer
- A leader in a past role
ie: @whatruss or @KKR_Co and search funds always snapping up SOF
Skill can be taught, but leadership often shows up on a resume prior to the hire.
- A military officer
- A leader in a past role
ie: @whatruss or @KKR_Co and search funds always snapping up SOF
Skill can be taught, but leadership often shows up on a resume prior to the hire.
Step #4: Or CPA's/Former Finance
- Oddly a LOT of former finance burnouts (this lady here included) who turn to SMB acquisitions
- If I can get one early to run a company for me I LOVE IT, they'll often be perfect for roll-ups
ie: @matthewghinson @sam_rosati etc
- Oddly a LOT of former finance burnouts (this lady here included) who turn to SMB acquisitions
- If I can get one early to run a company for me I LOVE IT, they'll often be perfect for roll-ups
ie: @matthewghinson @sam_rosati etc
Step #5: Mind F' Em
I really mean, do a behavioral assessment. We use DISC.
There is a type you are looking for, don't deviate.
I really mean, do a behavioral assessment. We use DISC.
There is a type you are looking for, don't deviate.
Step #6: Structure the deal for 3-5-10 year periods
- People change.
- Your business will change.
- Give them different payouts depending on how long they stay & how they perform.
Otherwise in 3-5 years you'll be pissed when they look to leave w/ 40% ownership.
- People change.
- Your business will change.
- Give them different payouts depending on how long they stay & how they perform.
Otherwise in 3-5 years you'll be pissed when they look to leave w/ 40% ownership.
I LOVE hiring ex military. Don't sleep on that one.
They served us, now is our chance to get them ownership.
They served us, now is our chance to get them ownership.
TLDR:
- you bring $
- operator brings time
- steal talent
- pay WELL
- proven vs potential
- military
- CPA's & exfinance
- you bring $
- operator brings time
- steal talent
- pay WELL
- proven vs potential
- military
- CPA's & exfinance
β’ β’ β’
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