The Small Business Black Holes with Alan Pentz

In this episode of Small Business Black Holes, host Alan Pentz welcomes Tonya Berenson for an insightful discussion about breaking through revenue plateaus and scaling challenges. Together, they:Examine the critical "first black hole" that businesses encounter around $1-2 million in revenue, where owners become trapped in day-to-day operationsExplore the challenges of making crucial first hires, particularly when transitioning from administrative support to higher-level positionsDiscuss the importance of personality assessments and structured hiring processes when building a team that complements the owner's strengthsAnalyze why only 4% of small businesses reach $1 million in revenue, and an even smaller fraction (0.4%) reach $5 millionDelve into the concept of "trade-offs" in business growth, including difficult decisions about upgrading team members as the company scalesConsider the psychological barriers owners face when making tough personnel decisions, particularly with long-term employeesHighlight the distinction between venture-funded and bootstrapped growth paths, examining the unique challenges and opportunities of each approachThe conversation provides practical insights for business owners looking to break free from revenue stagnation and scale their companies effectively.Episode Highlights:[00:00] Intro[03:44] The Orange and Rind Framework for Business Growth[08:50] Strategic Hiring Through Output-Based Role Design[14:11] Understanding the Stages of Business Growth[27:52] The Trade-offs Principle in Business GrowthEpisode Resources:Alan Pentz LinkedInTonya Berenson LinkedInOwner Institute websiteThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of The Small Business Black Holes podcast, host Alan Pentz welcomes Tonya Berenson to explore the critical stages of business growth and owner independence. Together, they:• Delve into the concept of the "ceiling of brute force" - the point between $5-10M where hustling alone stops working and systematic changes become necessary• Explain why owner-led sales are crucial below $5M revenue, but can become a liability for growth beyond that point• Discuss the three distinct phases of business ownershipWorking IN the business (bootstrapping phase)Working ON the business (systems and processes phase)Working ABOVE the business (strategic leadership phase)• Examine the fallacy of hiring sales teams too early, and why process documentation should wait until the owner's "special sauce" needs to be replicated• Highlight how owner independence evolves through different revenue stages, from complete involvement to strategic leadership• Consider why growth often requires temporary steps backward in terms of owner independence and profitability• Explore how successful scaling requires owners to embrace changing roles, from direct sales to team leadership and strategic planningHighlights:[02:30] The "Ceiling of Brute Force" Reality Check[07:08] The Three Stages of Business Evolution[09:39] The Strategic Timing of Process Implementation[17:04] The "Orange Peel" Theory of Owner IndependenceEpisode Resources:Alan Pentz LinkedInTonya Berenson LinkedInOwner Institute websiteThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of "The New Rules," host Alan Pentz shares his personal journey of growing Corner Alliance from a startup to a $35 million government consulting firm. Together with his interviewer, they:• Explore the concept of "revenue black holes" - specific revenue levels where businesses tend to get stuck ($1M, $3-5M, $10-15M) and the unique challenges at each stage• Delve into the evolution of an owner's role, from being "in" the business to working "on" the business, and how this transition is crucial for growth• Examine the critical importance of hiring decisions and the need to become "ruthless" about making tough personnel changes as the company scales• Discuss the transition from "heroics to process" and why systematic approaches must replace individual firefighting as organizations grow• Consider the concept of "owner independence" and how it changes at different revenue levels, from basic administrative freedom to full strategic leadership• Highlight the importance of building personal wealth alongside business growth using the "third, third, third" principle for sustainable business ownershipThe episode provides practical insights for business owners facing growth challenges, emphasizing that "everything in a business is the owner's fault - they either hired it, did it, or allowed it to happen." Through his candid sharing of mistakes and lessons learned, Pentz offers a roadmap for owners to navigate their growth journey more intentionally and with fewer setbacks.Highlights:[00:01:55]: From Employee to Running a Business[00:04:57]: Starting Corner Alliance in 2007[00:07:38]: A Blackberry and a Business Plan[00:11:39]: The First Million-Dollar Challenge[00:14:26]: Peeling Away Administrative Tasks[00:20:17]: Crisis at $4 Million Revenue[00:24:26]: Working On vs. In the Business[00:27:33]: Learning to Make Tough Decisions[00:32:03]: Moving from Heroics to Process[00:37:57]: Stepping Down as CEO[00:42:11]: Finding the Right Leadership Level[00:44:41]: Building a Board Structure[00:46:05]: Balancing Growth and Wealth Building[00:50:02]: Launching Owner Institute[00:51:20]: Three Core Business MistakesEpisode Resources:Alan Pentz LinkedInTonya Berenson LinkedInCorner Alliance LinkedInThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of The New Rules podcast, host Alan Pentz and guest Tonya Berenson explores the global demographic crisis and its far-reaching implications. Together, they:• Examine the worldwide trend of declining birth rates, highlighting how what was once thought to be isolated to Japan has become a global phenomenon affecting both developed and developing nations• Break down the three waves of demographic decline: first in advanced economies (Japan, Europe, China), then in middle-income countries (Middle East, India), and potentially in Sub-Saharan Africa by mid-century• Discuss the critical implications for retirement systems and social welfare, with the worker-to-retiree ratio dropping from historical highs to potentially unsustainable levels below 2:1• Analyze various attempted solutions, from Nordic-style social support systems to Hungary's direct payment approach, and why these interventions have shown limited success• Explore the complex relationship between male wages, social expectations, and fertility rates, including the controversial theory of men as "insurance policies" in family planning• Consider the unique position of the United States, which has maintained higher fertility rates through immigration, unlike more resistant European and Asian societies• Look ahead to potential scenarios, from a dystopian future of abandoned properties and collapsed social systems to the possibility of technological solutions or unexpected demographic reboundsThe episode offers a sobering yet fascinating look at one of the most significant long-term challenges facing human society, with implications for everything from economic growth to social structure and retirement systems. The hosts maintain a balance between serious analysis and humorous asides (including the memorable "long cats, short babies" investment strategy), making complex demographic concepts accessible and engaging.Episode Highlights:00:01 - Intro11:23 - Understanding the Global Demographic Crisis Timeline13:03 - The Worker-to-Retiree Ratio Crisis45:34 - The Immigration Advantage39:21 - The Limits of Technological SolutionsEpisode Resources:Alan Pentz on LinkedInTonya Berenson on LinkedInThe New Rules with Alan Pentz on LinkedInThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of The New Rules podcast show, host Alan Pentz welcomes Tonya Berenson, a thought leader in technology and culture. Together, they dive into a range of compelling topics that explore the intersection of technology, politics, and societal change.They kick off the conversation by discussing the recent tech takeover of government, reflecting on how the most dynamic industries shape political landscapes throughout history. Alan draws parallels between the influence of tech giants today and the automotive industry’s past dominance.The duo examines the evolution of industry power, noting how the shift from manufacturing to tech has led to a new class of wealthy and influential individuals who are now shaping policy and governance.They also highlight the inevitability of tech's integration into government, suggesting that as technology continues to advance, it will become increasingly intertwined with public policy, for better or worse.Alan and Tonya consider the potential benefits and challenges of this tech-government synthesis, discussing how it could lead to significant advancements in areas like AI while also raising concerns about regulation and ethical implications.The conversation takes a turn as they reflect on the historical context of societal change, comparing the current technological revolution to past transformative periods, such as the Industrial Revolution and the advent of the printing press.They delve into the demographic challenges facing societies today, particularly in Europe and Asia, and ponder the implications of declining birth rates and aging populations on future economic stability.Finally, they explore the cultural attitudes towards technology and growth, with Alan expressing a strong belief in the potential of human innovation to overcome challenges, while Tonya raises concerns about the societal impacts of rapid technological change.This episode is a thought-provoking exploration of how technology shapes our world, the historical patterns that inform our current reality, and the future we are collectively building. Tune in to gain insights into the complex relationship between tech, politics, and society!Episode Highlights:0:00 - Intro2:10 - Tech Takeover of Government6:20 - The Shift from Finance to Tech12:03 - Inevitability of Tech Integration19:59 - Historical Context of Change30:41 - Demographic Challenges Ahead40:32 - Cultural Attitudes Towards TechnologyEpisode Resources:Alan Pentz on LinkedInTonya Berenson on LinkedInThe New Rules with Alan Pentz on LinkedInThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode, Alan and Tonya break down Mario Draghi's report on the EU's economic challenges, exploring its struggles to produce major tech companies, widening GDP gaps with the US, and the sustainability of its welfare states. They also examine the EU's regulatory stance on tech and AI and its impact on innovation.Shifting gears, they delve into AI valuations, potential bubble risks, and insights from Bob Elliott, former CIO of Bridgewater Associates. Alan discusses the hurdles of AI adoption in businesses and its gradual impact on workforce and economic shifts.They also assess the evolving dynamics of US foreign policy, questioning Europe's relevance as a strategic partner compared to Asia, with Alan advocating for a pivot towards the latter.The episode wraps up with a lighthearted critique of Saudi Arabia's ambitious NEOM project, spotlighting the risks of unchecked ambition and lack of government pushback.Episode Highlights:[00:02:35] Discussion of the EU's lack of large tech companies and widening GDP gap with the US[00:06:37] Critique of EU's regulatory approach, especially the AI Act[00:09:59] Analysis of Draghi's proposed solutions for the EU's economic challenges[00:30:19] Examination of Europe's role as a US partner in dealing with China[00:37:24] Exploration of AI valuation concerns and Bob Elliott's insights[00:49:01] Humorous discussion of Saudi Arabia's NEOM projectEpisode Resources:Alan Pentz on LinkedInTonya Berenson on LinkedInThe New Rules with Alan Pentz on LinkedInThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of The New Rules, host Alan Pentz is joined by Paul Hodges, Chairman of New Normal, to discuss the insights from the latest PH Report. They explore the impact of demographic shifts on the economy, the challenges of government debt, and the evolving landscape of investment strategies. Tune in for a thought-provoking conversation that navigates the complexities of today's financial world!They begin by discussing the impact of demographic shifts, particularly the aging population, on economic growth and consumer behavior. Paul emphasizes how these changes influence spending patterns and the overall economy.The conversation shifts to the role of government stimulus in the U.S. economy, with Paul arguing that the extensive borrowing and monetary policies have created a precarious situation that could lead to significant challenges ahead.They examine the contrasting economic situations in the U.S. and China, highlighting how China's rapid growth has come at a cost, leading to potential instability in its economy.Paul shares insights on the implications of rising interest rates and the return of "bond vigilantes," suggesting that the market is regaining its role in price discovery, which could lead to increased volatility.The duo discusses the potential for a "soft default" in the U.S., where financial repression might become a tool for managing debt, and the implications this could have for investors and the economy at large.They also touch on the importance of scenario planning for businesses, emphasizing that the future is uncertain and that companies must prepare for a range of possible outcomes.Finally, they explore the shift from a commodity-based economy to one focused on services and solutions, particularly in light of changing consumer demands driven by demographic trends.This episode is a thought-provoking exploration of the economic forces at play today, offering valuable insights for anyone interested in understanding the complexities of our financial future. Tune in to gain a deeper understanding of how these trends may shape the world we live in.Episode Highlights:[00:01:42] The PH Report: A Litmus Test for the Economy[00:08:41] Demographics Drive Economic Change[00:14:34] The Role of Central Banks and Debt[00:19:44] China's Economic Challenges[00:27:29] The Shift from Products to Services[01:00:26] Navigating Uncertainty with Scenario PlanningEpisode Resources:Alan Pentz on LinkedInPaul Hodges on LinkedInThe New Rules with Alan Pentz on LinkedInThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of The Alan Podcast, host Alan welcomes Professor Michael Beckley, a political science professor at Tufts University. Together, they delve into the complex dynamics of China's rising power and its implications for global politics. They explore several critical topics:The Peaking of Chinese Power: Professor Beckley outlines his thesis that China's power is at a turning point, driven by economic stagnation, demographic shifts, and a repressive political climate under Xi Jinping.Economic Challenges: They discuss how China's economy is shrinking relative to the U.S., with productivity growth declining and debt levels soaring, indicating a faltering economic model that once thrived on a demographic dividend and international trade.Military Ambitions: The conversation shifts to China's increasing military assertiveness as a response to its economic challenges, suggesting that as economic growth slows, China may resort to military aggression to compensate for its waning influence.Historical Context: They examine the historical patterns of peaking powers, noting that such nations often become more aggressive internationally as they face internal decline, drawing parallels to past global conflicts.The Taiwan Question: Professor Beckley warns that the 2020s may be a critical decade for Taiwan, as China may perceive this as its best opportunity to assert control over the island, raising the stakes for U.S. involvement.U.S. Strategy: They discuss the need for the U.S. to rethink its military strategy in the Pacific, advocating for a shift towards more modern, cost-effective defense technologies rather than traditional, large-scale military assets.Alliances and Global Dynamics: The episode highlights the importance of maintaining strong alliances in Europe and Asia, emphasizing that the U.S. must navigate its relationships carefully to counterbalance China's ambitions.Throughout the episode, Professor Beckley provides a nuanced analysis of the geopolitical landscape, urging listeners to consider the implications of China's trajectory for global stability. This engaging discussion offers valuable insights into the challenges and opportunities that lie ahead in U.S.-China relations.Tune in to gain a deeper understanding of these pressing issues and what they mean for the future of international politics.Episode Highlights:[00:01:02] The Peaking of Chinese Power[00:04:21] Economic Challenges and Military Responses[00:11:55] The Taiwan Question[00:23:05] Rethinking U.S. Military Strategy[00:44:38] The Interconnectedness of Global Threats[00:55:14] Preparing for Worst-Case ScenariosEpisode Resources:Alan Pentz on LinkedInTonya Berenson on LinkedInThe New Rules with Alan Pentz on LinkedInMichael Beckley profileThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of The New Rules with Alan Pentz, host Alan welcomes Tonya Berenson, as they dive into the intriguing world of tech influencers and their impact on politics.Together, they:Delve into the rise of the "tech bros" and how figures like Elon Musk and Donald Trump are reshaping political discourse through social media.Explain why the media landscape has evolved, with politicians now needing to adapt to the platforms that resonate with younger audiences, such as podcasts and social media.Discuss the implications of the recent political maneuvers surrounding the continuing resolution and how tech influencers played a pivotal role in shaping public opinion.Examine the historical context of media influence in politics, from newspapers to television, and now to social media, highlighting how this shift affects governance.Highlight the necessity for both political parties to embrace tech leaders to remain relevant and effective in modern governance.Consider the potential for a new breed of candidates who can bridge the gap between traditional politics and the tech-savvy electorate.Explore how the current political climate is less polarized than before, with opportunities for coalition-building across party lines, especially among younger voters.Alan and Tonya's conversation is both insightful and thought-provoking, offering a fresh perspective on the intersection of technology and politics. Tune in to discover how the dynamics of influence are changing and what it means for the future of governance.Episode Highlights:[00:02:14] The Evolution of Media in Politics[00:06:55] The Tech Bros' Influence on Governance[00:12:29] Politics by Influencer: A New Coalition-Building Strategy[00:21:54] The Importance of Flexibility in Political Strategy[00:39:36] A Less Polarized Political Landscape[00:46:06] The Need for a New Economic and Security SystemEpisode Resources:Alan Pentz on LinkedInTonya Berenson on LinkedInThe New Rules with Alan Pentz on LinkedInThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers

In this episode of the Small Business Mentor podcast, Alan Pentz is joined by John Matzner, President at Lazy Leverage. They delve into using global resources efficiently, cautioning against over-leveraging with debt, the importance of humility and adaptability in business, and the power of output thinking. They explore the challenges of entering different industries and highlight the value of building solid systems, particularly in using offshore talent effectively. Additionally, they discuss the importance of maintaining authenticity and integrity in business dealings.Jon is a seasoned national security expert and accomplished business leader who divides his time between Dubai, UAE, and San Diego, California. With a robust background in government service, Jon was recently stationed in the Middle East, traversing the globe on behalf of the US Government. His tenure involved collaborating extensively with local and regional allies, focusing on non-proliferation and counterterrorism strategies. Transitioning from public service, Jon ventured into entrepreneurship, founding multiple businesses, selling three, and acquiring numerous others. He's deeply passionate about "Entrepreneurship Through Acquisition," employing systematic approaches and tapping into top-tier global talent to revitalize traditional businesses. Jon also shares insights through his free newsletter, Lazy Leverage, offering valuable entrepreneurial perspectives. If you enjoyed this episode, make sure to subscribe, rate, and review on Apple Podcasts, Spotify, and Google Podcasts, instructions on how to do this are here.Episode Highlights:[00:00] - Global Perspective in Business Operations[03:25] - Debt as an Accelerant, Not an Ante [05:39] - Wedding DJs vs. Happily Married Operators[22:55] Output-Based Business Thinking[28:00] - Redefining Workforce Structures and Global Outsourcing StrategiesEpisode Resources:Jon Matzner on LinkedInJon Matzner on TwitterLazy Leverage WebsiteAlan Pentz on LinkedInCorner Alliance WebsiteThe Small Business Black Holes Podcast is handcrafted by our friends over at fame.so Check out our three most downloaded episodes:Defining and Tracking Outputs: The Key to Employee Performance with John SeifferSmall Business Strategies and Market Dynamics with Jon Matzner, President at Lazy LeverageFranchising: The Best Business Model with Brian Beers