Don't Be A Sellout: How To Lead Your Business With Integrity
Don't Be A Sellout: How To Lead Your Business With Integrity
What strategies can new leaders use to establish their own identity while respecting the legacy of their predecessors?
About five years ago, I took over as president of the company from my dad. Initially, I had no idea what that entailed. It was a surreal experience. I was involved in every aspect of the business, from supporting project managers to meeting clients. My aim was to effectively run my dad's company. The first major decision I made was enrolling in a coaching course at the Proctor Gallagher Institute, based on Napoleon Hill's Think and Grow Rich. This course was costly but pivotal, as it made me reflect on what the company needed from me and how I could step out from under my dad's shadow. I realized I didn't want to be known as "Elliot's son running the company"; I wanted to be Ben, leading with my own vision.
This realization sparked my desire to transform the company into a better workplace for everyone. We currently employ 49 people, and I feel a deep responsibility towards them and their families. My next goal is to elevate the trade industry's reputation. I want to erase the stereotypical image of a plumber and introduce a new level of professionalism. I frequently speak at schools, sharing the pride one can have in being a plumber and highlighting the importance of the trade. Through these talks, I help young people understand that success doesn't solely come from traditional academic paths but can also be achieved through skilled trades. The recent pandemic has further underscored the essential nature of our services, as people relied more heavily on their home's infrastructure.
What are the benefits of defining core values for decision-making?
I use our company’s core values as a guide for decisions. These values, developed with our team, act as a 'lighthouse on a foggy ocean.' If a decision aligns with our values and vision, we move forward. If not, we adjust. This approach has created clarity and accountability across the organization.
What steps can entrepreneurs take to diversify their client base and reduce risk?
The incident I'm about to describe followed one of the poor decisions I made a few years ago. At that time, we had one major client who owned 50 buildings in the city, and we were their sole plumbing provider. This client accounted for 60% of our total sales, which was a risky concentration of business. During a complex renovation project of 10 buildings, the owner was on vacation in Eastern Europe. He received a confused message indicating that the job site was shut down by various inspectors, including the police, construction regulators, worker’s compensation inspectors, and tax inspectors.
The owner misunderstood the message to believe that either our team or the electricians had called in the inspectors. Consequently, he instructed his company to cease all communications with us and the electricians. The next morning, our six trucks were unexpectedly inactive, and we faced significant revenue losses. After a week and some investigation, it was revealed that a tenant, upset with another contractor, was responsible for the complaints leading to the inspections.
This situation forced me to rethink my strategy significantly. I realized the importance of not letting any single client or individual have such control over our business. This led me to diversify our client base and the services we offer, ensuring the future stability and growth of our company.
How can business owners use professional consultations to manage risks?
I once learned a valuable lesson from a challenging experience involving my ex-girlfriend's father, who was an accountant and treasurer for a charity organization. He taught me the importance of the principle "trust, but verify." Despite initially not adhering closely to this advice, I eventually realized its significance after facing some setbacks. This experience underscored the importance of regularly consulting professionals. I now speak with my accountant two to three times a month, even when there are no major issues, and I consult my lawyer about once every month or two to discuss new ideas and ensure I'm not exposing the business to unnecessary risks. This approach has proven essential in managing my business effectively.
What are the benefits of surrounding yourself with like-minded entrepreneurs?
I value learning from business owners at all stages, from beginners to veterans. Masterminds are especially impactful because they bring like-minded people together to elevate each other. Being surrounded by successful individuals helps me grow.
*This interview has been edited and condensed for clarity.*
