OwnerRX Podcast with Alan Pentz

Jon Morris, founder and CEO of Fiscal Advocate and former CEO of Rise Interactive, shares his journey from growing a digital marketing agency to creating a finance management company for professional service businesses. He emphasizes the importance of leveraging financial data to make intelligent decisions about time and money allocation.Morris delves into crucial financial metrics for professional service companies, including gross margin, profit margin, and cash reserves. He explains the significance of these numbers and provides benchmarks for optimal performance. The discussion covers strategies for improving gross margins, the importance of investing in sales and marketing, and the balance between profitability and growth.Throughout the conversation, Morris offers valuable insights on budgeting, forecasting, and the use of technology in financial management. He shares his experiences from Rise Interactive, including lessons learned from scaling the business and investing in technology development. Morris also introduces Fiscal Advocate's software, Engine B, which embeds his financial principles into a practical tool for businesses.The episode provides a wealth of actionable advice for professional service company owners, from managing cash flow to making strategic investments for growth. Morris's emphasis on data-driven decision-making and financial discipline offers a roadmap for businesses aiming to achieve sustainable profitability and growth.Episode Highlights:[00:02:11] Explanation of gross margin and its importance in professional service companies[00:04:25] Discussion on the significance of investing in sales and marketing for growth[00:09:35] Introduction of the three key financial metrics: cash reserves, profit margin, and revenue growth[00:22:31] Insights on investing in product/service quality and the concept of promise makers vs. promise keepers[00:29:37] Lessons learned from developing technology in a service-based business[00:39:45] Breakdown of gross margin percentages and their implications for business healthQuotes:"If you can have a gross margin advantage relative to your competition and you are willing to invest in your business, you have an edge.""We only have time and money. And how we spend it is what gives us the greatest return.""Your budget is your strategic plan. It tells me exactly what is important to you because that's what you're spending your time and money on.""If your gross margin is below 40% you're gonna lose money. If your gross margin is between 40-50% you're gonna decide between making money or investing in the business. If it's between 50-60% you're going to have a profitable business and be able to invest. And if it's above 60% somebody's getting screwed."Episode Resources:Jon Morris on LinkedInFiscal Advocate 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

Mickie Kennedy, founder and CEO of eReleases, discusses the evolution of his company from its inception over 25 years ago to its current status as a leading press release distribution service for small businesses. He details how eReleases works with PRNewswire to provide affordable national distribution for smaller companies, filling a gap in the market that larger wire services often overlook.The conversation explores the impact of social media and the internet on the PR industry, the importance of crafting compelling stories in press releases, and strategies for increasing the likelihood of media pickup. Mickie shares insights on the types of press releases that are most effective, including data-driven releases and those that offer unique industry perspectives.Throughout the discussion, Mickie offers practical advice for small businesses looking to leverage PR for growth. He emphasizes the value of earned media, discusses how to use media coverage to build credibility, and provides tips on building relationships with local journalists.Episode Highlights:[00:00:56] Origin story of eReleases and early success with data-driven press releases[00:04:53] How eReleases partnered with PR Newswire to serve small businesses[00:09:39] Impact of social media and changing media landscape on PR[00:12:21] Common types of press releases and what makes them effective[00:18:13] Strategies for creating compelling, story-driven press releases[00:29:55] Using media coverage to build credibility and increase conversions[00:35:00] Overview of eReleases as a business - size, revenue, and growth[00:45:49] Advice for businesses on creating strategic PR campaignsQuotes:"We do try to coach our clients that, you know, going forward, uh, with a product launch incorporating a use case study.""I always tell people, you know, look at the shark tank. Everybody that appears there opens with a story.""Revenue is a little over 5 million, um, profit. Yeah. Profit is, uh, a few $100,000. So it's good for a very small business.""If you have a story that resonates, um, it could go far on the wire because it's just available to so many people."Episode Resources:eReleases WebsiteMickie Kennedy on LinkedInAlan Pentz on LinkedInCorner Alliance WebsiteFree PR MasterclassThe 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

Jesse Lewis, owner of District Performance and Physio, discusses the growth of his cash-based physical therapy practice from a single room in a gym to multiple locations in Washington, D.C. He details the company's focus on serving active individuals who want to continue exercising while recovering from injuries. Jesse shares insights on bootstrapping the business, scaling operations, and the challenges of marketing a higher-priced, insurance-free model.The conversation explores Jesse's approach to growth, including his strategies for hiring and retaining talent, managing multiple locations, and balancing profitability with employee satisfaction. He discusses the effectiveness of various marketing channels, particularly Google Ads and SEO, and how he adjusts these efforts based on clinic capacity.Jesse reflects on the challenges of transitioning from a solo practitioner to a business owner, including delegating responsibilities and creating systems for scalable growth. He also shares his thoughts on potential expansion strategies, such as organic growth, acquisitions, or franchising within the niche cash-based physical therapy market.Throughout the discussion, Jesse emphasizes the importance of company culture and his efforts to intentionally shape it as the business grows. He offers valuable insights for healthcare entrepreneurs looking to build and scale niche practices while maintaining high-quality care and employee satisfaction.Episode Highlights:[00:00:53] Overview of District Performance and Physio's business model[00:01:45] Jesse's journey from a single room to multiple locations[00:05:05] Discussion of revenue targets and growth strategies[00:11:35] Marketing strategies, focusing on Google Ads and SEO[00:18:58] Challenges of scaling and maintaining profitability[00:25:23] Plans for future growth and expansion[00:39:06] Developing company culture and core valuesQuotes:"We are physical therapy for active people. So we focus on people who want to exercise people who want to work out.""We don't take any insurance at all, so we're a higher price point, and there's a lot of pros and cons to do that. But one of the pros of doing that is it's a very low barrier to entry.""One of our distinguishing like competitive advantages internally is that I asked my therapist to see a very low number of clients because there's a huge problem of burnout in physical therapy.""Revenue is a vanity metric in the fuel business, if anyone ever mentions it to you, just kind of understand that."Episode Resources:Jesse Lewis LinkedInDistrict Performance and Physio WebsiteDistrict Performance and Physio on InstagramAlan 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

Eric Pacifici, a partner at SMB Law Group, discusses the current state of small business M&A, focusing on transactions under $15 million in enterprise value. He explains the profile of typical buyers and sellers, the impact of SBA financing on deal structures, and the evolving market conditions affecting valuations and deal terms.The conversation delves into the challenges of self-funded search, the risks involved in buying small businesses, and the importance of understanding the operational aspects of acquired companies. Eric provides valuable insights into the due diligence process and the potential pitfalls buyers should be aware of.Throughout the discussion, Eric offers a candid look at the legal industry, comparing the economics of big law firms to smaller, specialized practices. He shares his experience transitioning from a large firm to founding his practice, highlighting the unique challenges and opportunities in the legal services market for small business M&A.The episode also touches on the role of social media in building a niche law practice and the potential for expanding into a full-service business law firm to better serve small business clients.Episode Highlights:[00:00:53] Introduction to SMB Law Group and its focus on small business M&A[00:02:02] Current market trends in small business acquisitions and valuation changes[00:07:53] The role of SBA financing in small business transactions[00:18:40] Risks and challenges of buying small businesses[00:24:50] Insights into law firm economics and the challenges of the legal industry[00:38:01] Discussion on big law firm profitability and partner compensation[00:41:24] The impact of social media on building a niche law practiceQuotes:"We are transitioning slowly to a full-service law firm to be able to support anything that folks need in business.""When we launched the firm two years ago, we were looking at a lot of, you know, 4.5 5 times multiples. Now you're seeing a lot of threes and, you know, sub-four multiples.""Entrepreneurship and business buying and building is always going to be enormously difficult no matter what the circumstances are.""Most really good lawyers now don't even want to commute after remote work. And after the pandemic, you know, they're super excited about the idea of working for a firm that's not gonna ask them to come to an office.""I don't know how big law attorneys continue to out-earn, you know, their profit per partner is at $7.7 million. It grew 10% so it grew $700,000 per lawyer in a year."Episode Resources:Eric Pacifici on LinkedInSMB Law Group 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

Gabriel Muller, an EOS Worldwide implementer, discusses his transition from financial services to helping businesses implement the Entrepreneurial Operating System. He details the core principles of EOS, including the Visionary-Integrator dynamic, and how it helps companies create structure and clarity in their operations. Gabe shares insights on the challenges businesses face when implementing EOS, particularly in leadership team dynamics and the process of putting the right people in the right seats.The conversation explores the evolution of team health through the EOS process, the importance of trust and vulnerability in leadership teams, and the concept of the "owner's box" - where business owners can step back from day-to-day operations. Gabe offers valuable perspectives on the difficulties owners face in detaching from their businesses and the benefits of creating self-managing teams.Throughout the discussion, Gabe provides real-world examples from his experience implementing EOS across various businesses, offering listeners practical insights into the transformative power of this system. He also touches on his passion for aviation and how he's integrated it with his professional life through Smokehouse Pilots, a community he's built for aviation enthusiasts.Episode Highlights:[00:00:25] Introduction to EOS and Gabe's background as an implementer[00:05:57] Discussion on when to implement EOS and bring in an implementer[00:09:52] Insights into common issues in businesses implementing EOS, particularly around leadership and structure[00:13:21] The impact of EOS on leadership teams over time, including potential changes in team composition[00:21:35] Evolution of team health through the EOS process, focusing on trust and vulnerability[00:27:12] The concept of the "owner's box" and challenges founders face in stepping back from day-to-day operations[00:34:47] Gabe's passion for aviation and the creation of Smokehouse Pilots communityQuotes:"EOS is harnessing human energy to create business results and clarity.""Careful what you wish for with EOS, cause you're probably gonna get it whether you like it or not.""I think private equity is in a crisis moment right now.""I always like to say careful what you wish for with EOS, cause you're probably gonna get it whether you like it or not.""My ultimate goal here is aviation, plus community equals opportunity and impact. That's our mission statement."Episode Resources:Gabriel Muller on LinkedinSmokehouse Pilots WebsiteEOS Worldwide 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

Clifton Sellers, founder of Legacy Builder, discusses his transition from corporate fundraising to entrepreneurship. He details Legacy Builder's focus on content marketing and personal branding, primarily for executives and business owners. Clifton shares insights on the agency's rapid growth, the importance of building a personal brand, and the strategies behind successful content marketing.The conversation explores the challenges of scaling a service-based business, including the importance of building systems, hiring the right team, and gradually removing the founder from day-to-day operations. Clifton emphasizes the value of learning from others' mistakes and the importance of understanding what success looks like before delegating tasks.Clifton reflects on the current state of personal branding and content marketing, highlighting the shift from company-focused to individual-focused branding. He discusses the power of storytelling, the concept of digital real estate, and the importance of creating an "environment for success" in marketing.Throughout the discussion, Clifton offers valuable advice for aspiring entrepreneurs and marketers, emphasizing the importance of consistent content creation, engagement on social platforms, and building owned audiences through newsletters and email lists.Episode Highlights:[00:00:32] Clifton's background and journey to entrepreneurship[00:08:13] The decision to quit his job and focus on Legacy Builder full-time[00:11:42] Scaling challenges and bringing in a COO[00:18:09] The importance of the founder in sales and marketing[00:29:52] The landscape of personal branding and content marketing[00:35:31] The content marketing funnel and strategy[00:42:09] Insights on social media algorithms and content strategyQuotes:"I think a lot of people want everything to look good on paper before they roll out of a business or an offer. Um, you just don't know. I think the things that have led to our success are trial and error and quicker feedback loops to repositioning and learning and applying that feedback and being transparent.""To me, marketing is creating an environment for success. And so building a personal brand is right in the center of that environment. It's right there. Then everything spokes out of that.""Anybody that says they have an algorithm figured out is lying. They're they're bold-faced liars. Um, the thing about algorithms is they will always shift. There will always be a meta out of game generation.""No matter what the algorithm does, authentic storytelling, offering true value content is gonna win out. That's the long game."Episode Resources:Clifton Sellers on LinkedInLegacy Builder on TwitterLegacy Builder WebsiteAlan 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

Dominic Tullo, representing the fourth generation of his family business, discusses TNR Oil Company's operations in the diesel fuel distribution industry. He details the company's focus on servicing commercial fleets, explaining its unique overnight fueling service and the value proposition it offers to clients. Dominic shares insights on the company's revenue model, profit margins, and operational strategies, including their expansion into DEF (Diesel Exhaust Fluid) distribution.The conversation explores the history of the Tullo family business, from its origins in ice and coal delivery to its current diverse operations in fuel distribution, truck stops, and real estate. Dominic reflects on the challenges and benefits of working in a family business, offering candid advice for those considering joining their family enterprises.Throughout the discussion, Dominic offers valuable insights into the fuel distribution industry, including the application of technology to improve efficiency, the complexities of credit management, and the ever-present threat of fuel scams. He also touches on the historical context of operating a business in New Jersey, including past interactions with organized crime.Episode Highlights:[00:03:18] On-site fueling: A $120K savings per fleet[00:09:40] DEF business: TNR's unexpected profit center[00:15:44] Tech edge: How TNR outsmarts competitors[00:20:29] PE pitfalls: Why trucking resists buyouts[00:29:07] Tullo legacy: From ice delivery to diesel[00:47:35] Fuel scams: Navigating industry challengesQuotes:"We service people with their most critical fluid. We call it diesel literally. It's the blood of the business. You cannot operate your trucks without it.""Revenue is a vanity metric in the fuel business, if anyone ever mentions it to you, just kind of understand that.""If you're considering joining your family business, you need to just be honest with yourself and look at the person and say, Although this is my dad, look at them objectively. Does it look like he's ever gonna be willing to let go?""I don't get two bites of my inheritance. I'm taking my inheritance in the companies, the operating entities. And if I don't do well with them, it's my problem."Episode Resources:Dominic Tullo on TwitterTNR Oil Company Website Alan 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

Steve Wiesner, owner of Watershed Associates, discusses his transition from private equity to small business ownership. He details Watershed's focus on negotiations training, primarily for procurement and supply chain professionals, and its global reach. Steve shares insights on the acquisition process, the importance of operational experience, and the myths surrounding entrepreneurship through acquisition (ETA).The conversation explores the current challenges in the private equity industry, including high valuations, rising interest rates, and potential political headwinds. Steve emphasizes the importance of understanding the complexities of running a business before attempting ambitious strategies like roll-ups.Steve reflects on his experiences in private equity, highlighting the challenges of deal evaluation and internal persuasion. He applies these lessons to his current role, improving his negotiation skills and business acumen.Throughout the discussion, Steve offers valuable advice for aspiring business owners, emphasizing the importance of operational experience, realistic expectations, and careful consideration of personal guarantees in business loans.Episode Highlights:[00:02:59] Global Reach of a Niche Training Business [00:09:40] The Myths of Small Business Acquisition[00:14:44] The Danger of "Never Quit" Mentality [00:22:29] The Case for Buying Smaller Businesses [00:30:16] Lessons from Private Equity Experience [00:38:27] The Current Crisis in Private Equity Quotes:"We historically have sold workshops, and often there will be batches of workshops that get bought. When you're dealing primarily with Fortune 250 style companies, they often buy in bulk.""I think searchers do have such a wonderful opportunity to position themselves as the anti-PE buyer. And yet they call themselves Stone Rock capital or whatever it may be.""I have seen companies with five or $10 million of EBD a that are operational basket cases, and so if you're stepping into it thinking that you're buying IBM when you're buying a business doing 3.5, you're not thinking clearly""If you have never bought a business in your life, it is fine, even admirable for you in the back of your head to think Yeah, and I'm gonna do this and then I'll go and I'll buy four more leave Number 23 and four, even any open discussion of number 234 for later on down the road when you've proven you can do one.""I think private equity is in a crisis moment right now."Episode Resources:Steve Wiesner on X/TwitterWatershed Associates 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

Shawn Busse details Kinesis' evolution from a brand design shop to a comprehensive business strategy firm. He highlights the disconnect between traditional marketing education and small business needs, emphasizing the importance of tailored approaches for B2B companies. Sean stresses the significance of brand positioning, company culture, and employee engagement in driving business success, sharing examples of how these focus areas have dramatically improved client outcomes in retention and recruitment.The conversation explores the changing digital marketing landscape, including SEO's declining effectiveness and the shift towards owned media and community building. Sean advocates for a marketing ecosystem that balances digital strategies with face-to-face interactions, noting the crucial role of personal connections in high-value B2B transactions.Throughout, Sean underscores the need for a holistic approach to business growth, integrating marketing, culture, and business strategy. He illustrates this with case studies, including an automation engineering firm that grew from 8 to 32 employees in four years without recruiting fees, purely through brand and social employee marketing. Sean also discusses the importance of creating unique, engaging content to differentiate businesses in crowded markets, and the value of building owned communities and events to foster deeper customer relationships.Episode Highlights:[02:21] Sean’s Background and the Evolution of Kinesis[08:47] The Disconnect Between Marketing Education and Small Business Needs[17:15] The Importance of Brand Positioning and Company Culture in B2B Marketing[25:29] Case Study: Growing an Automation Engineering Firm Through Brand and Culture[35:03] The Changing Landscape of SEO and Digital Marketing[44:43] Building a Marketing Ecosystem: From Digital to Face-To-Face Interactions[51:53] The Future of B2B Marketing and Community BuildingQuotes:"We had a website, I don't know if profanity is allowed on this podcast or not. OK. It literally said uh [expletive] marketing like on the home page and we were a marketing firm... that was one of our most successful websites we've ever built.""I realized this massive disconnect between what is being taught as marketing and what is being needed as marketing, especially in B2B in service based businesses. Huge Gulf.""We took them from eight employees to 32 employees in four years and we paid $0 in recruiters like no recruiting fees. And we did that all with brand, social employee marketing.""I think to do that with employee engagement actually takes a lot more work than people think, I think they think, well, I'll just give that to the hr person and she'll do it.""I think if listeners get anything out of this, I think that's a really good insight that, you know, it's not like I'm saying, like, run away, leave the algorithms, you know, like they do have value... But like conversion to a customer and then long term value means you got to build something that you own."Episode Resources:Shawn Busse on LinkedInKinesis 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

Cliff Kennedy introduces Frios Gourmet Pops as "the modern-day ice cream truck," explaining how franchisees operate tie-dye wrapped sprinter vans selling gourmet popsicles. He shares his journey from the oil and gas industry to acquiring Frios in 2018, and the company's rapid growth from 20 to 112 territories. Cliff discusses the franchise model, cost structure, and ideal franchisee profile, highlighting Frios' unique flavors and focus on community events.The conversation explores the challenges of scaling a franchise business, including the concept of "royalty sufficiency" and Frios' fixed royalty model. Cliff outlines his vision for Frios to become the "next Kona Ice" with over 1,000 locations. He and Alan delve into the evolving landscape of B2B marketing, discussing the power of personal branding and social media for business growth.Throughout the interview, Cliff emphasizes the importance of adaptability in marketing strategies. They explore the potential of email marketing and newsletters for customer acquisition in franchising. The episode concludes with reflections on the constant evolution of marketing tactics and the need to stay ahead of changing algorithms and market conditions.Episode Highlights:[02:54] Cliff's background and transition from oil and gas to Frios Gourmet Pops[04:57] The rapid growth of Frios from 20 to 112 territories[08:42] Unique flavors and the infamous pickle pop[13:16] The franchise model and ideal franchisee profile[22:10] The concept of "royalty sufficiency" in franchising[30:26] Long-term vision for Frios to become the "next Kona Ice"[37:31] Leveraging social media for franchise growth and brand building[51:23] The potential of email marketing and newsletters in franchise acquisitionQuotes:"We're the modern-day ice cream truck. Uh, you know, our franchisees all across the country ride around in a tie dye-wrapped sprinter van and sell happiness for 11 is what we say.""There's very few. I mean, less than probably 1% of franchisors in the world are at 1000 or more. So, yeah, you're going into rare air. Um, but I just firmly believe we can do it.""I always say Small stick, build big fires So you got to start a small stick.""You're constantly moving the field goalposts, and no matter what you do, I mean, it might work because you have to be willing not to say, Oh, this is everything you got to be looking. What's next? What's next? Constantly evolving space."Episode Resources:Cliff Kennedy on LinkedInFrios Gourmet Pops 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