In this episode, the host emphasizes the critical role of talent in scaling a business, particularly when operations become a key focus after reaching significant revenue milestones. He underscores that the primary challenge for entrepreneurs is not a multitude of problems, but rather a singular "people problem," which includes finding, hiring, recruiting, managing, and cultivating talent. Highlighting the distinction between 'A players' and 'B players,' the host shares a story illustrating the importance of ownership and excellence within a company's culture. He advocates for entrepreneurs to invest time in hiring 'A players' who inherently possess a drive for excellence and can significantly grow the business. The host concludes by encouraging entrepreneurs to honestly assess their teams and aim to foster a winning team culture that prioritizes quality and customer experience.
"Every single entrepreneur has one problem. They think they have multiple problems, but they have one problem and it's a people problem."
This quote emphasizes that the singular, underlying issue for entrepreneurs is effectively managing human resources, regardless of other perceived problems.
"After you get to probably about ten to 30 million a year is when ops really start taking over, especially at 30. It's all about talent."
This quote highlights the transition from entrepreneurial hustle to operational focus and the increasing importance of talent management as a company grows.
"It's actually not about you. And that can be really hard for your ego because you love being needed."
The quote addresses the internal struggle entrepreneurs face when they realize the business must operate without their direct, daily involvement for sustainable growth.
"And so what I want to talk about specifically today is how to find and know the difference between an a player and a b player, or really an a player and everyone else."
This quote introduces the importance of discerning between the most valuable employees and the rest, which is key to driving business growth.
"If you can't look at someone on your team and be like, I think this person's kind of weak, or, I think this person could be better, then you really have rose colored glasses on."
The quote emphasizes the importance of objective assessment of team members' performance without the bias of optimism, which is essential for recognizing true talent and potential for growth.
"And as soon as this girl did this, I was like, oh, my God, I don't have to literally make the money. Someone else can do this, and I can actually start running the business."
This quote emphasizes the moment of realization that the business owner had, understanding that delegation can lead to more effective business management.
"A players and b players. So what I want to do is tell you a quick story because I think it's perfect for illustration."
This quote introduces the concept of different levels of employee engagement and commitment, setting the stage for a comparison between A and B players.
"So we just recently promoted a brand manager, one of our companies, and she was given the task of like, hey, why don't you think about other revenue streams that we could possibly bring into the company?"
This quote explains the context in which the brand manager was given a growth-oriented task, highlighting the importance of employee empowerment.
"She said, I'm not sending that to my customers. And it was because it showed so much ownership."
This quote illustrates the brand manager's commitment to quality and her alignment with the company's values, particularly the principle of acting like an owner.
"But I did find some manufacturers that don't do manufacturing and fulfillment...but their stuff is legit. It's awesome."
This quote shows the manager's initiative in finding a suitable manufacturer, reflecting her dedication to the company's success and her problem-solving abilities.
"That is what a B player would have done."
This quote succinctly distinguishes the actions of a B player from those of an A player, emphasizing the lack of initiative and ownership that characterizes B level employees.
"The difference is with the a scenario, you have a high quality product that people buy, enjoy, and buy again, and that massively increases the LTV of the customer."
This quote emphasizes the impact that A players have on the quality of a product and the subsequent effect on customer satisfaction and loyalty.
"And finding people who think like that a player compared to people who think like the b player is the difference between companies that grow and companies that die, companies that barely compete and make it, and companies that thrive."
This quote highlights the critical role that the mindset of employees, particularly A players, plays in a company's success or failure.
"It is my belief that within a company hierarchy, every person, the person who runs the division or the department or the company, should always have the lowest amount of tolerance for anything but excellence, which means you should be intolerant of anything that is not amazing."
This quote underscores the importance of leadership in setting and upholding standards of excellence within a company.
"And if there comes a day where you see two people and you see a supervisor, and you see someone underneath of that supervisor, and the person underneath has a lower tolerance for anything but excellence than their supervisor, those roles should reverse."
This quote suggests that positions of leadership should be determined by one's commitment to excellence, rather than hierarchy.
"Whoever you hire, most people only hire people worse than them. And so if you're one level removed or two levels removed, dear God, imagine what's being hired on the front line."
This quote warns of the potential degradation in employee quality due to poor hiring standards, emphasizing the need for diligent hiring practices to preserve a company's commitment to excellence.
"You guys already know that I don't run any ads on this, and I don't sell anything. And so the only ask that I can ever have of you guys is that you help me spread the word so we can help more entrepreneurs make more money, feed their families, make better products, and have better experiences for their employees and customers."
This quote expresses the host's reliance on the audience to promote the podcast, as it operates without ads or product sales.
"It'll take you 10 seconds or one type of the thumb. It means the absolute world to me. And more importantly, it may change the world for someone else."
This quote emphasizes the ease with which the audience can support the podcast and the significant impact their support can have.
"e, right? And so you have to carry this torch, you have to raise this bar. You have to set the standard so that a players will be attracted to you, and also so that you can have a team of a players, and then the entire culture rises, right?"
This quote emphasizes the responsibility of setting high standards to attract and cultivate a team of A players, which in turn elevates the entire team's culture.
"If you've ever been on a winning team, on a championship team, you know the difference between the vibe, how people come to practice, how they play, the expectations of one another, right? The speed of response, the teamwork, all of that. That's culture."
The quote describes the palpable difference in atmosphere and performance on a winning team, attributing these characteristics to the influence of team culture.
"But some people just come with batteries included. There are some people who are just winners, right? And you just need to get out of their way."
This quote suggests that some individuals are naturally driven and successful, and the best approach is to allow them the freedom to excel.
"And I think that it's worth the extra five interviews, it's worth the extra 20 interviews to find the a player, because once that person is in place, they will grow."
The speaker advocates for the value of investing time in the recruitment process to find an A player who has the potential to significantly contribute to growth.
"And I hope if you look at your team right now, you don't think, oh, they're all amazing, right? Because the reality is they're probably not, right."
The speaker challenges entrepreneurs to critically assess their team members rather than assume they are all exceptional.
"And as you grow in that awareness, so too will your selection of talent. So too will your recruitment of talent, your management and growth of those people."
This quote connects personal growth in awareness to improved talent selection, recruitment, and management.
"If you're hiring people, only look for a players, put in the extra time to get the a player because it will pay you dividends beyond your wildest dreams."
The quote encourages prioritizing the search for A players due to the substantial benefits they bring to the organization.
"And there was a Harvard study that showed that a players are five times more than mute players."
This quote references a study that quantifies the productivity difference between A players and average players, highlighting the importance of A players in a team.