Management is Mentorship and the Art of Scaling

Show Notes

Clay and Doctor Z break down game-changing quotes from Honest Tea’s founder, Seth Goldman on the importance of developing your own talent within your business and knowing the right time to sell your business.

Management is Mentorship

NOTABLE QUOTATION – “It is crucial to develop your own talent. To do that, you have to offer more to your employees than great compensation. You have to make it clear to them that as the company grows, they can grow along with it.” – Seth Goldman (Founder of Honest Tea, says that one of his proudest achievements is having a former intern now run Honest Tea’s West Coast division)

    1. Action Steps
      1. Step 1 – Create and organization chart
      2. Step 2 – Provide ongoing training

Nail it Before You Scale It

NOTABLE QUOTATION – “Whatever your industry, you have to break down the business to its very smallest components and then build it up again.” – Seth Goldman (Founder of Honest Tea, who created the world’s first organic, bottled tea…in his kitchen)

Know When to Cook the Pig

NOTABLE QUOTABLE – “When Coke first invested, we were in about 15,000 locations. Now, we’re in over 100,000. So certainly, the ability to reach people and the scale is different. But crafting the agreement with them was the most important negotiation we ever conducted. So I actively participated in almost all of the discussions because getting this wrong could have screwed up my family’s financial future.” – Seth Goldman (Founder of Honest Tea, who created the world’s first organic, bottled tea…in his kitchen)

  1. Coke first bought 40 percent of Maryland-based Honest Tea in February 2008 for about $43 million, with an option to buy the rest.
    1. https://www.reuters.com/article/us-cocacola-honesttea/coke-buys-remaining-stake-in-honest-tea-idUSTRE72055U20110301
Business Coach | Ask Clay & Z Anything

Audio Transcription

Get ready to enter that thrive time show 3, 2 1 boom. All right right makes you walking back to the business coach conversations they were breaking down. The words of wisdom of seth goldman, the founder of honest tea, and one of the things that he talks about this is this is powerful I want you to take note on this. He says it’s crucial to develop your own talent. To do that, you have to offer more to your employees than great compensation. You have to make it clear to them. They can grow along with it. It’s going to make this very actionable for you very specific, but then I’m not going to give you the time needed to do what you have to create that time. So you have to create an org chart organizational chart poor elephant in the room z we just rolled that out to shut up about a month ago after the show I want to talk to you a bit more about that, but I rolled it out and a lot of the people on the entry-level were saying what what you mean. If I do this, I can get promoted to that, and from this to that is like this. That and this-and it’s like this-is a road map for me being here long time really excited, though, knowing that, if I go from here to here in a typo daisy started out as a car wrap now she’s the manager dan started off, here’s a manager and if you get promoted this is how it works and just seeing that how the organizational chart works. That’s powerful! That’s one step 2, as you have to provide ongoing training until I want to see this up to see in the west. In just a moment. Your take on this I just remember.

There’s two profound moments of my life that were tear-jerking moments. My wife went to bed like right. These are two moments. My mom invited us to your christmas party and my wife were a teal sequin dress, the first time that we’ve gone out and look nice since we got married and she wishes she got a nice dress. When was a casino theme party, hey, we were invited to attend the party and we just attended it as a couple, and it was the first time since we’ve been married in a budget was tight that we’ve done it while I’m at work um. Well after that party, you provided drink tickets for everybody, you provided casino chips for everybody. It was a great time, you’re, very generous with it. The business coach food was great and I know you have a lot of them at the cityplex. You probably don’t remember what I do and I just came home and went to bed. I. Remember just ball exact, the first time that we got him a nice date since we got married on my freaking. Loser have to do that right and now this year’s christmas party-again you did it again. You have a great party, you don’t have to do. That was fun. It was fun of the mail, the mail right, point break venue, but the second thing you did this is powerful, is after I get harassed. Kylie, your office manager I harassed her to dj over and over and over, to know where they have a company where they have a company.

We only have a company, kylie I know, but my wife’s been there about a year-and-a-half. I really am telling you about what dj for a dollar all dj it for whatever you just give me like a brochure all talk to dr. Zoellner and set one for sure, I got booked to dj holiday, but I am ready for this party just made at the end of the end of the event, you said:hey great job tiger, you want a black shirt and a black shirt. You can me, and you gave me cash in the cast. You tip me, was equal to what you had paid for me to dj. It was what we needed to make. It was like. There was the gas to make it to build, and you knew that and you were. You were doing, that you cut a you made that happen. I, don’t know how much of it was because my wife works there, but you knew that. You know that, and so management is mentorship is when you coach people up talk to me, how do you provide ongoing training mentorship? What are some things you do on a daily basis? To probably don’t forget about what you want smoke, but you just do it it’s like a regular now. So if you want to start to do this, how do you mentor up your people? I tell you what, when you reach the level that I’m going to talk about here in just a second, you have done a good job in and getting as much of your dna in your employees as you possibly can, because the idea is you’re trying to clone your business coach self as many times as possible, because you know that if you every phone call you answer to me awesome. You know that every patient you check-in or check-out could be good, because you have a passion about it’s what you do:you’re you’re, the one. That said, all that mean you’re, the one that designed everything and so around my office right now, there’s a little saying and-and you put it on the board in our conference room, you, big chalk, chalk up thing, he’s an artist for those of you I’ve been to the tribe headquarters. Once again, you got to come by and be in the check, and it says something like this:what would the do it was a play on the old did the price of two people to happen to like what would jesus. Do you mind if I ask myself all the time? That’s why I ask myself what would z do and if you own a business and if I went to any one of your employees and I gave them a scenario and I said what what would you do? You know you’ve done your training, you know you’ve done your time and, put you know you’ve distributed your dna when they look at you and say:i know exactly what you would do and here’s what he needed to a place where they would actually say.

Okay, what would the owner do what you do right now? That’s where you know you’ve been playing to die with a customer who has a problem and it needs to be salt, and you know what these out of the country is he somewhere else? Cuz he’s not right here, but you know what to do. I know what he would do. Therefore I’m going to do that with confidence. That he’s not going to be disappointed when you find out about it to the wisdom of west carter on this, because you been mentored by a guy mentored by a business coach guy who many considered to be kind of a living legend of me, john, winters and I folks, winters and king. You guys you guys have worked with some of the biggest clients in the world with td jakes, joyce, meyer, joel, osteen, oklahoma, say bless. So what happened? Has mentorship happened winters in tinker? How did it happen backing it up just a little bit. I think you be only talk about hiring a player’s I think you have to understand it. If a player’s don’t see a future hate players, don’t stay in dead-end jobs and so is bringing in those people and showing them. You have a future here that bright and so it yet part of it is getting them to think. Like you, the processes, the systems, but some of us hope you have to give them hope that there is a better future everyday here at the firm here at this company, and continual growth occurs on zig ziglar one said you’re, either growing or you’re going through either ripe or rotten. It’s kind of a thing where you want people to be growing shop, going to be developing i. Remember specifically, one of the first things you said to me that my shadow day with that thrive so went to the group interview process. Just like we preach and i. Had my saturday and clay says to me:hey if it’s a good fit I’m, not sure everything will end up, but at least you know, you’re going to have a tour of duty here, and you explain to me how you were going to make it a learning opportunity for me and that stuck with me, it’s been 2 and 1/2 on what you know two years and like that that was you that two of you would hate. You may not be a long-term. It may just be true duty, but we’re going to teach you, and that made me know that your mentor and what they did I have learned is that every business coach doctor that I’ve hired they always have when the interview that was once so I can I can I can I want a piece of this. You know, can I be a partner tonight, you know I mean where’s. My game and I told him. I said you know what it’s hard to value a covered, the song I’m going. We can, we can bring a hundred experts and I’ll have a different price and you can take your money.

You can buy walmart stock, you can buy you anything! You want with the money that I’m going to pay you right, but since I’m not going to value this, this is already on going and even if you own a piece of it, you never control it because I wouldn’t let that happen right right, but as I open. If you do well and you’re the kind of person I want to keep around long time ago, I open up new companies on the ground floor, I’ll. Let you come in on that and so I’ve got several my doctors that I’m baker’s yes on other businesses and make as much or more on those, then I do being an optometrist for me, and that’s really that’s really where you, because when you don’t people, they trust you that much with the rent ready to team up with you and party with you. That’s when you know that you’ve done ongoing mentorship effectively. We come back from break break it up more words of wisdom from seth goldman. The founder of the incredible company called honest tea want to attend the legendary drive time show business workshop for free since 5 on itunes, leave an objective review and send his confirmation at info at business coach thrivetime show.Com to claim your tickets want to live in a van down by the river, come by and see it’s in our riverwatch offices and will be able to make your dreams come true. Welcome back to the thrive time show on your radio. We have time to get back into two more words of wisdom from the founder of honest tea, seth goldman, or for hispanic listeners dose words of wisdom. You don’t see. Sometimes your your quickness of your business coach vernacular. Sometimes it out taylor’s is my high school in my spanish name was guido and might even refused to speak english. In any point she said, hola me, llamo, miss miss the boys and I had no clue what you’re saying at all. From that point, if I can outpace your mental capacity as big as your head, yes is it true, I mean you I mean average humans only using 10% of their brain i. Don’t know if I’d, better right, it’s like I’m alive till I think but as big as yours is, you always must be in. Like 2% I mean it is sometimes sometimes when I’m around myself. I realized that the shadow that I’m casting is affecting the weather patterns below, to be honest with you, when do i, not sleep in a seth goldman, the founder of honesty, he said, whatever your industry, you have to break down the business into its very smallest components and then build it up again. So I’m going to think about dr. Roberts on his business, the optometry clinic I’m just focus on that particular business.

Only about west, carter’s, business and I’m going to think about elephant in the room. So here’s the thing about elephant elephant in the room when you come in to get your first haircut for a dollar I want to try to get that free listing right now and you live with in tulsa. Take the challenge. Your first haircut is a dollar, but when you come in to get your haircut for a dollar, it costs me $23., I’m working overtime to bring down the cost, but it cost me. 23. I have to make sure that our grooming professionals do such a good job that at least 55% of you sign up for a membership, because if you don’t the model doesn’t make any sense, it ain’t worth it. So it could unit economics. You have to know in the smallest level per customer. What does it cost you to get a customer and before I sold dj connection I knew that cost me and this weird stuff, I used to know about 75 bucks to get you in as a new customer, but I made $167 of profit per wedding. Come on 167, so see what you’re up to, tree clinic? How do how does how does knowing the smallest number help and how do you scale from there? We once you know what it cost you to see a patient to treat a patient? How is that helpful? Something about about that? I know what it cost to bring a patient in. You know at the last time I checked. It was right around a little less than $10, okay I’m, so just round up to $10, okay, the date, the other day when you had a situation to where a gentleman had a lens get scratched and it had a scratch coating put on it and you know it was cracked. Could you put on doesn’t mean you still can’t scratch it right and he was upset that he missing out on some welding and he cut the lenses with a welding device and he was just a little past the warranty time that we had, and so my business coach employee was like well you’re at he was absolutely no way past your warranty and you know what the protocol that scratch on your glasses. So quick employees didn’t want to do that. They’ve been promoted to some level, they have someone and they like this boy, likes devil of thority. Actually, you’re denied. You cannot do it. I mean there certain people that just enjoy just to get off on something like you know the armed, forces or the sheriff department’s or said, or should i, say I think you do, but you know they can get dana get a hot and bothered. You know they got a lot by the he’s. He’s he’s not think of that quite right, many employees standing up on the letter of the law, the you know the black and white here it is, and you know this is not nam my tension until I get involved in it and I pull my employer side and they tell me the story and I say you know a new lens and that pair glasses is going to cost me less than $10 on lobsters excellent or not. I would give it to you. No replacing that lands at no charge that gentleman I would spend less money and get in and getting a patient for life. Verse him be mad and leaving to go somewhere else coming from I was going to say so. I asked him. What would I do now?

You’ve learned what I would do in this scenario, but I can say that. Secondly, but basically I wanted to just text you I was making sure you were paying attention. I want to make sure that he was paying attention when the going gets tough to go to boston. That’s just the way it is it just you got, you got to beat up everybody, laughs, wicked, awesome, itunes, wicked, awesome, business advice, sample of knowing that number helps. You make the right decision and in the end, that’s why, when we do business coaching, we try to break. We make sure that the business owner the entrepreneur knows all these. What does it really cost to make that widget people know to start, and we will help you break it down, break it down, break it out there. It’s actually really fun. It may seem weird, but once you know your break even and you know how much your profit per customer is-and you know these numbers, it makes business super fun. You know what you’re actually aiming for now so here is here, is the the the the final tip I want to give you hear doctors? He talks about no one to cook the pig, the founder of honesty, business coach seth goldman, hey talks about how he said when coke first invested, we were in in about fifteen thousand locations with honest tea, now, with honesty, wear over a hundred thousand locations. So certainly the ability to reach people in the scale is different, but crafting agreement with them was the most important to goshi ation. We ever conducted by actively participated all the discussions, because getting this wrong could have screwed up my family’s financial future. Coke first bought 40% of the maryland based houston are maryland maryland based honest tea in february 2008 for 43 million dollar, see someone’s listen to the show and they’re going to screw with the legal I mean, did like moses sign a legal agreement when he was working with like aaron I mean, did they did it ever even work with moses diesel? All questions I have. Let me stay where you perfectly from coke in to talk to a friend of the night at a meeting and he’s to be a labor union rep and he wrapped a small group of drivers for pepsico and he went into a negotiation with pepsico about the driver agreement and pepsico bigwig executive sit down his first thing.

I want to tell you. Is this? Isn’t just a driver’s agreement? You think we’re a soft drink company really where delivery company disagreements going to tell me whether or not I can make money and so those little agreement. That, seemingly don’t think see you later big deal. They turn out to be really big deal if you don’t realize, until it’s too late and I want to make sure you’re getting this because I want your listeners can understand my relationship with with dr. Zoellner and how that works. I am not going to work with anybody if I can’t trust them, and then the legal agreement is more or less the technical agreements overtime. You don’t remember things differently, but it’s so important that you don’t go into business with someone that you don’t trust and respect for the very beginning, I mean no matter what the legal agreement says. There’s some weasels out there talk to me. What’s your filter of how you know if someone’s a business coach weasel or not, we did that person is definitely a weasel where that is a weasel cracker with the score with the led pipe only one. They have fur. Here’s I measure a man for a person by their actions and not their words, and so I observe I pay attention to watch what they do know what to say:do, not what they say and it could be as little as maybe what they’re, how they you’re playing ping-pong with them and then all the sudden they’re cheating on the score you like to watch it, what people do and not what they say-i love, your quote, I think it’s in the bathroom above a urinal at the drive-in quarters. Yes, I am watching you. Yes, I am checking dude, yes, I do know what you’re watching on the computer before you give keystroke important keystroke recorder installed them in the computer. Do a stupid, idiot move and it’s like it’s on. I know what you’re doing and I can see it the other actions it so don’t be a weasel. But if you’re a business owner don’t go into business with a weasel weasel going to drivetime show.Com, you can subscribe to the podcast, the 101 business coaching. The business conference is in a video library of thousands of videos. It’s always three

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