Trish Higgins - Chenmark Five Years Later - Ep. 23
Aug 4, 2020
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Trish Higgins, the most downloaded guest on the podcast, returns for a second episode. They discuss her recent move to the operating side, how Chenmark has evolved over the years, and briefly touch on landscaping. Chenmark is recruiting future operators and has a weekly newsletter. They also explore the challenges and improvements of running Chenmark, elements of a successful landscaping deal, and the evolution of their playbook and software systems. The speaker discusses the challenges and priorities for the next five years, including building a talent pipeline.
Chenmark recruits future operators into existing leadership roles at current portfolio companies, training them for eventually running a future portfolio company.
Chenmark has found sourcing deals and building credibility as experienced business owners easier over the years, but communication and coordination have become more challenging as the team and portfolio companies have grown.
Deep dives
Chen Mark's Recent Acquisition and Move to the Operating Side
In this podcast episode, the host interviews Trish Higgins, who discusses her recent move to the operating side of Chen Mark. Trish shares the details of their acquisition of a tourism business in Maine, despite the challenges posed by COVID-19. She highlights the stability and profitability of the company, as well as their strategy to recruit and train future operators for their portfolio companies. Trish also mentions Chen Mark's weekly newsletter called Weekly Thoughts, which covers investing, operating in small companies, and other concepts from different disciplines.
Becoming an Operator and the Importance of Hands-on Experience
Trish and Palmer's transition to operating their own companies reflects their desire to gain hands-on experience and understand the challenges faced by operators. By stepping into the CEO seat, they are able to add credibility when interacting with other CEOs and operators. Additionally, Chen Mark aims to develop talent internally by having employees work in leadership roles within their portfolio companies before eventually becoming CEOs of new acquisitions. This approach ensures alignment with Chen Mark's values and the establishment of a talent pipeline.
Recruiting and Evaluating Future Operators
To find potential future operators, Chen Mark connects with individuals interested in joining their team through various channels, including podcast listeners and direct outreach. They focus on individuals who align with Chen Mark's values and show initiative to work beyond traditional experiences. Candidates are evaluated through conversations, interviews, and a mutual understanding of shared goals. Chen Mark places importance on finding the right individuals rather than a set number of hires, ensuring a strong cultural fit and a long-term commitment to the company.
Evolution of Chen Mark and Key Challenges
Over the five years of operating Chen Mark, certain aspects have become easier, such as sourcing deals and building credibility as experienced business owners. However, communication and coordination have become more challenging as the team and portfolio companies have grown. Chen Mark addresses these challenges by prioritizing regular check-in meetings, standardized communication platforms like Slack, and a Friday lunch meeting to foster connection and alignment. Additionally, they emphasize the importance of developing a strong company culture and values to guide decision-making and maintain consistency across the portfolio.
Trish Higgins was the guest on my very first podcast episode and was kind enough to share her time with me when I had no downloads, no show, and no website. Funny enough, that first episode is still my most downloaded episode to date. A lot has happened since then and I’m very excited to have Trish on the show for a second episode. In this episode, we cover Trish’s recent move to the operating side, how Chenmark has evolved including what’s become easier and more difficult over time, and we dive briefly into landscaping.
For those listeners interested in eventually operating your own company, Chenmark has begun recruiting future operators into existing leadership roles at current portfolio companies where they will be trained for eventually running a future portfolio company. If this is interesting to you, I highly recommend reaching out to Trish. Finally, Chenmark writes a weekly newsletter called Weekly Thoughts about their views on investing and operating small companies, behavior and psychology, and concepts from other disciplines that can be brought over to business. I’ve been a reader for years and I’ve found it extremely valuable. Go to Chenmarkcapital.com/weeklythoughts to subscribe.
I’m also the founder of The Operator’s Handbook, a print publication where small company operators share their insights and ideas for building more effective and profitable companies. Articles focus on process improvement, sales, hiring and training, managing culture, and all responsibilities within operating a small company. If you run a small business and are looking for new ways to grow and improve, subscribe today and join your peers in the endless pursuit of better at theoperatorshandbook.com.