0149: Tour De Profit | Energizing Leaders by Creating Radically Engaged Teams with Rich Allen

Ea interviews episode 149 inspiration, transformation, success stories and the imperfect action round. Seven days a week. Join Mario Ficcini for today's expert Authority Effect interview. Have you ever thought about the importance of your team? Have you ever thought about advertising? Have you thought about marketing? These are all important things and so many people, I don't know if it's just because I'm in the marketing industry. People are always going, what about leads? What about, you know, going on these different platforms, this, that, the other thing. And I just want to make you aware that those are all well and good and I love helping people with them. But if you have a bad leader or a bad team, the rest really doesn't matter. And that's why I myself, in addition to speaking at events, I love attending them to learn to become a better leader. And that's why I'm excited to have Rich, Alex Alan here today. He is going to be talking how you can create the tour de profit and engage your team with your leadership and have a well oiled machine. You're not going to want to miss this. I'm going to bring them back right after we thank our sponsor. How would you like to grow your wealth? Easier than you think. With the change you probably don't notice anyhow automatically. That's why I started the compounding interest snowball investing with Acorns and advise you do too. Get started simply and easily today@eainterviews.com ACORNs Here he is ladies and gentlemen, Mr. Rich Allen. Rich, how are you doing today?

I'm excellent. Thanks Mario. Thanks for having me on the show.

It's my pleasure. I think I'm going to enjoy this just as much as you because I want to know what's that bike doing behind you? How do I become a better leader and why is it important for my team? So how did you get into this?

Well, I will tell you, Mario, that, you know, I'm a upper Midwesterner like you, I'm from Cleveland and my story started when I was growing up with my dad. My dad started his own business when he was 36 years old and he did it because he wanted to basically build a business and leave a legacy for his 12 children. So I've got 11 brothers and sisters and I personally watched my dad struggle trying to run a business. And at the time I was just in high school, I didn't know exactly how business worked. I frankly didn't know what to do to make it work. All I know is that frankly my dad didn't understand, and as a result, he struggled with it. So I became a student of business, trying to figure out what it really takes to make a business work. And the bike became the answer to my question.

Now, how did it become the answer? Were you riding around on it, or did you want to buy a new one? How did that get into the mix?

No, it really didn't. You know, the way that happened was I was working for a large, privately held manufacturing company, and I was in a functional role, But I always had this desire to run a business myself. I wanted to know if I could do it, if I had what it took to run a business. And so at the age when I was 40, I had the opportunity to. We acquired a small manufacturing firm, a $30 million business that had about 200 people in it, so relatively small. And I had a chance to go run it. So I showed up at the business for the very first time. And, Mario, I walked in, and I had no clue what I was going to do to make the business work. And so for days, I walked around the plant, just meeting people, shaking their hands, introducing myself, asking what they were doing the whole time, thinking, please, lord, bring me something that would help me kind of figure this out. And in. And I had this great idea one day where all great ideas hit you, right? Where's that?

The shower.

In the shower. Right in the shower. This. I had this idea. We brought everybody together in a meeting. I brought my bike, this one that's right here behind me. I brought it in, put it up at the front of the room, and shared with everybody that I thought this wasn't a bike. This was actually our business.

And so I said, look, every component of this bike relates to a part of our business. And if we could understand how our business is like this bike, we could tune up our business and make it go really fast. And that's what we did.

How did you start that process? Because that's very intriguing to me. Did everyone say, wow, what a great idea, and jump on board? Did you have 100% compliance, or was there some pushback? How did you get everyone on board, and what were the first steps you took?

Yeah, let me just be honest, Mario, and tell you that, you know, when I did that, they looked at me like I had lost my mind.

Track one, you're right on track, right?

And then secondly, some people said, it's a bike, idiot. And then some people in the back of the room. The back of the room said, it's stolen property. And I assured him it Wasn't stolen property. But when I took them through a lap around the bike and I talked about each component, Mario, for the very first time, people who weren't schooled in how a business worked understood how they fit in to the overall business. And honestly, that's where I think most business owners go wrong, is that they. We kind of talk way over the heads of our people.

We talk in strategy and theory. They don't get it. They think we don't understand, and as a result, they don't come alongside us and help us make it better. And so that was kind of the beginning of that. Right now I had to do some things to get them truly engaged in the business. And that was my aha moment. But it made a huge difference in our success.

Well, it sounds like it's going well now.

Well, actually, here's what happened, because it's not the end of the story. The end of the story was we used the bike, we worked on our business, and over the next seven years, we grew the business from 30 million in revenue to over 100 million in revenue. We became very profitable, owned the top end of our market category, and our largest competitor came in and made a bid to buy our business.

That's fantastic.

So I actually retired. I retired from the business at age 50. And so I've been using the last 15 years to teach small business owners how to use a bike and use it to engage their team in a way that's unlike anything that they've ever done before.

And how is it. How well is it working for the entrepreneurs that you're helping?

It's unbelievable because most entrepreneurs and most small business owners do 90% of the heavy lifting in the business themselves.

Why is that a bad thing?

What's that?

Why is that a bad thing?

Because they aren't supposed to work that hard. Right? A business owner shouldn't be working that hard. A business owner has one thing to do, and that's to steer the bike. They have to grab the handlebars and steer. Everybody else on the. On the team ought to be doing all the detailed heavy lifting in the business. But they're only going to do that if they understand how the business works and understand where they fit in and how everything works together.

That's where you need to have the leadership and a clear vision. Correct?

It is essential. Look, who wants to work for somebody when you don't really understand what they're trying to do with the business? Let's be honest, Most people that are working for someone else believes the business Owner is simply making lots of money on their efforts. The business owner is getting rich, and I'm doing all the work. And somehow we've got to transform that into, we all are responsible for making the business better, and we all are rewarded if that happens.

Absolutely. It's not always.

Up, let's just say, and the risk is on you. And it's not always fun, I will say, but it's great bringing people together and having that vision and the clarity.

Why you're doing it. Because a lot of people that come to me that want to publish a book or something, I go, you know, what's the goal? Who are you trying to help? This, that, the other thing. And I've noticed there's some people that, like, take responsibility. And I can tell they're like you. They're like, let's make this happen. What do I need to do? And then there's other people going, well, I've tried this, I've tried this, I've tried this, I've tried that. And my team here didn't do this. My team here. And I'm just thinking, do you know where you're going to even guide them on the steps they should be taking? What's their responsibility? If you're not sure what yours is or where you're going, how are you going to lead them to go, here's what I need you to do, and here's what I expect.

Exactly. Exactly Right. And there's a way to do that that really inspires people. It gets people really fired up about what you're trying to do in the business. But our job as leaders is a big part of our job as leaders is to be a cheerleader. We've got to inspire people to greatness. And in order to do that, we've got to steer our business. We've got to paint the picture of the future we want to have happen with the business. And we've got to set high standards. We've got to set it so that most people say, look, I'm honored to work here. I'm privileged to be a part of this team because not everybody could earn the right to be here.

I love that.

When we make that happen, then magic happens.

I love that. And I feel the same way. As far as my team, who you saw me talking to before I hit the button, and I'm very thankful for them, sincerely, and everyone else. But also the clients that apply for my trainings, there is a certain level and a standard of excellence. I'm like, I'm not Lowering that bar, it doesn't mean no forever. It just means possibly not right now. Why is that so important from your perspective?

Well, look, the worst thing we can do in business is be average, right? There's nothing worse than being a business. Look, there's no reason, because if you're just average, if you're like everybody else in whatever product or service you offer and you're just going to be like everyone else, the only thing you have to compete on is price. And you can compete on price so long as you have a really buttoned up process so that you can offer a low cost or so you have a low cost, so you can offer a low price. Otherwise it's a, it's not a success recipe. So the. You either have to, you have to choose. Do I, am I going to compete on price or am I going to compete on being different? Well, we don't want to be worse than everybody and be different. We want to be better than everybody. So set our standards high.

And let other people try to compete with us at that high level.

The other thing I've noticed is if you, if you start playing the pricing game, one, Walmart's the only one who wins at that. And two, they're always going to want it lower because it's going to eventually start going lower and lower and lower and lower and lower. And at some point, it's just, you're shooting yourself in the foot.

And a lot of times, Mario, here's what happens. We have that desire as a business owner to set our standards high, but we don't share that with our employees, our team members. We don't tell them that that's the expectation. So we don't set the bar high enough for them. And here's what I've found, and this is, I think, true. What I found to be true with all my clients is that the higher you set the bar, the more your people feel challenged to achieve it. Right? No one, everyone wants to be a winner. Everybody wants to be on a winning team. No one jumps into, you know, nobody jumps into the NFL to say, look, I want to perpetually be where the Browns are. Right? Nobody does that. Right? Some of us from Cleveland, we have to live with that. But that's not the goal. The goal is to win the ring. And to do that, you got to set your standards high.

I want to say, I'm from Detroit, so.

There'S that. As far as the football grounds, I.

Didn'T want to pick on the Lions.

Still love them and support them, but I agree with what you're saying, and I'm looking forward to in my lifetime when that changes around. And two, personally, thank you for the reminder of the standard of excellence, because I know when I started the show and everything last year, that was a big thing because it didn't exist. And I think I need to issue something in the next week or so reminding everyone how much they do mean to me and how far we've come, and I'm excited to move forward. So you're right. You know, you get to one point and, you know, when do you talk about it? You know, is it something to talk about? Weekly, monthly, quarterly? What do you suggest?

Well, here's what I would say, you know, and again, I use the bike for virtually every. The bike is amazing. And how, how it. Riding a bike is so much like running a business. But here's the deal. We don't steer our bike then, you know, get us pointed in the direction we're going and then put our hands in the air and not hold on to the handlebars. We don't. We constantly steer the bike. And so what I tell business owners is, look, we need to be reminding people all the time of where we're heading, what the goal is, what our mission is, what our purpose is, what our standards are, are. We've got to be talking about that continually. So I would say every time you have a meeting, so if you have weekly meetings, share it every week. If you have. If you have team meetings on a, you know, through Zoom or some other audio or video format, use it there. But I would say do it more frequently than you than you think you should.

It's like this.

Anybody that goes to church knows that you go to church once a week. Well, look, we've all heard everything that there is to be said, but we still go back to be reminded. And that's true in business. Everybody on our team needs to be reminded why they made the choice and how good the decision is that they made to be on this team.

Because along the way, things are going to get in the way, noise is going to happen, other people are going to be whispering in your ear saying, hey, I got a better deal for you over here. And unless we're speaking to our team and reminding them why they made the right choice to be right here with us, they're going to start listening to other voices.

Well, I appreciate you for sharing that expert authority insight. Do it more often than you think you should.

Now, with all the teachings and the businesses you've helped, what are a couple things that any business can do to start increasing their profit and get their team more on board.

Here's the one thing that I would tell you, Mario, that I see far too many business owners do because.

They'Re trying to run away from something. Many people who start their own business or want to become an entrepreneur do it after working for a larger corporate entity. Right. They may have been working in a. Working for someone a lot of times in a corporation, and they see organization as bureaucracy, and so they immediately throw it out. And they say, I'm not going to have an organizational chart. I'm not going to have job responsibilities. We're not going to have defined ways to hold people accountable. We're simply going to expect that I'm going to hire good people. They're all going to have great intentions, and they're all going to do the right thing all the time. And that's not true. That'd be like me saying, I'm going to get on this bike, but I'm not going to have a frame that's made of steel. I'm going to have a frame that's made of rubber or that's made of something that's really flexible and it won't sustain itself. We have to have a frame in our business, just like we have to have a frame on the bike that gives us strength and holds everything together. Well, what is that? It's an organization structure. It's a specific set of job responsibilities, and it's an accountability system that makes sure that every week, every, on a regular basis, everybody's being held accountable or being asked to take ownership for the job that they said that they were going to do.

I like that, especially that accountability part, because.

If you're not being held accountable and no one's holding you accountable.

One of the greatest things about owning the company is you can do what you want. One of the worst things is you can do what you want. You want to disappear for two or three weeks or a month, have fun. I hope you go somewhere warm. But you better believe everything better be buttoned up.

Yeah. Let me just say, because I know there's this kind of new age thinking that you can't hold people accountable. And you hear now that it's transitioning from accountability to ownership. And I'll be honest to tell you, I don't know that that's significantly different. I do think it is important for people to own their role in the business, but there's got to be a system for people to take ownership. So Use whichever word you like. But don't throw out a. Don't throw out accountability because you. Because of you're. You're working with a millennial or somebody that's coming along that says, I, you know, I don't need to be held accountable. No, you don't. But you do need to take ownership.

What if I don't like either of those words? Can I have them? Champion the cause?

Absolutely. Picket. Pick the one that works for you and your business. Just don't throw out the idea.

I'm just teasing. I think accountability is fine. Everyone understands it. And if they have a problem.

When people come to me for coaching, one of the main things they enjoy is the accountability. Because when you're dealing with successful entrepreneurs, everyone knows what to do. You know, no one really needs their hand held. But like, you're saying, it's those reminders and going, hey, how's that going? Oh, yeah, you know, I'll do that. And then you do it real quick versus, you know, I'll get to it. I'll get to it in a week past.

I think it's a great thing. I think accountability is fantastic. I was.

Well, and the reality is, let's be honest, a players like to be held accountable. Right? They. They thrive accountability on accountability, and that's the kind of people you want to have on your team.

I see it as another way to win. Here's the marks I have to hit. Watch this.

Yeah, Exactly.

When there's no frame like you're talking about, well, watch me go into theater mode and just. We'll see where this ends up. You'll be entertained, but can't promise anything will get done. Can't do that. Business.

That's right.

So I want to ask you about your biggest success story. I know you've probably got dozens. What are the top one or two that come to mind?

Yeah. I'll tell you, here's the one that inspires me the most and honestly, that I guess I am the most proud of. I worked with a business owner not long ago that had a team of about 20 people, but he also had a wife and two small children. And I remember when I started working with him, I asked him the question I asked everybody is.

What are you doing this business for? What's the goal? If one thing could happen that your business would allow you to do, what would it be? And he was very crystal clear on it. He said, I'd love to spend a month in Carmel, California, with my family and never check in on the business.

And he said, but that's impossible because I've got to be here for every decision and there's often times that I got to break ties and make things happen. So anyway, over the next year or two, we worked on it, we built out his job responsibilities, made sure he had the right people on, on his team, got his processes in place. Two years later, two years later, he and his family left on a month long vacation to Carmel, California where they stayed on the beach. All he did was took books and read, spent time with his family, spent time on the beach. The business took care of himself, of itself and he's done it every year since. Wow. Thing I'd ever seen happen.

That's a huge success story.

Massive.

That sounds like a lot of fun too.

Because if you're not enjoying your life, I mean the business, you're gonna have to put in work. Obviously you have to work hard and smart, but you also have to enjoy it. And I think a lot of there's this entrepreneurial trap and you can, might be able to say better than I can, but I feel like people get hooked by and consumed and you know, since you combine the natural ambition of the entrepreneurial spirit with the there's always something you can be doing. Have you found that it's hard for some people to let go like that?

Absolutely. In fact, I would tell you that it's what, what happens to most entrepreneurs is that they, they start their business because they believe it's going to give them more freedom and more flexibility. When in fact they lose freedom and flexibility most, most times because they're the only ones. And everything that that's going on about the business is locked in their head and they have all the answers to all the big questions. So they've got to be there every day to be able to make the business work. And the hardest thing for small business owners and entrepreneurs to do is to let go.

Because they feel that everything depends on them. They've got to be at the center of all major activities in their business. And frankly, it's bad thinking because we started a business to give us a life.

But the reality is, Mario, that's what it took from my dad. My dad lost his life because he had this business.

And he missed everything about his kids. He never came to anything I was doing in school. I was a pretty talented long distance runner in high school. My dad never saw me run, never once.

And it breaks my heart to this day. So one thing that saddens me the most. And so whenever I can find a way For a business owner to gain the freedom that they need and deserve and that they. They wanted from their business. That's what it's all about.

Well, I'm glad you're out there helping people, and I appreciate you for sharing with me and Expert Authority World here because I'm getting a lot out of it and I have so many questions. I got a couple more and we're going to thank the sponsor. But if you could sit down with any entrepreneur in the world right now, who would it be and why?

Oh, man. You know, I'd probably.

I got to tell you, I would. I would probably sit down with Elon Musk.

Why is that?

And the reason I would sit down with him is that he is. He's got. He's got the biggest ideas, he's got the greatest opportunity. But I'm. But I'm really intrigued by why he doesn't seem to value his team more than he does. And I'd like to understand that. I'd like to understand, because I believe if that were the case, I think he could. I think things he's doing could absolutely change the world as he's doing now, but he could do it in a bigger way. And so that would be my. I just intrigued by his approach.

That's interesting. I never thought about it like that. I've had people mentioned him before, but no one's ever said it for that reason.

I, you know, he's attracted many, many talented people.

Do you think it's his aversion to risk or just going for it or.

You know, I, you know, it's hard. It's hard to say, you know, I, like I said, I find people who are very talented running businesses, but they somehow. But they won't let their team.

Jump in and be a part of the big action.

And honestly, I think that's what makes people excited about working for a business. That's what makes people get fired up about what they do. Right. The reality is, Mario, that, you know, 50. What they say 52% of the. Of people who are currently employed are actively looking for a new job today. That's the statistic. Why is that? Is it because they're not challenged? Is it because whoever's their leader doesn't think that they've got what it takes to do more?

The last I knew it was the number one reason people leave a company is under. Not. Not the money, but being underappreciated.

It is they don't leave a job. They leave their boss. And. And so I'm Always intrigued by bosses who have the capacity and the capability and the, the, the, the forethought to do great things. And man, just, just let the team loose, Let the team go. Give them that, Give them the room, give them the freedom, give them the support and they'll do unbelievable things for you.

I got to bring this to Expert Authority World. I do want to thank the sponsor and I have some other questions, but I got to ask these, these are too good. They're too important. What do you think prevents the leader from trusting the team more? Do you think it's an ego driven thing? They want it to be about them. Look at me, look how good I am. Or do you think it's fear thing that they don't trust and they don't want everything to crumble and by not trusting everyone, that's why it deteriorates them.

I think it's more fear than it is an ego thing because I think when you really sit and talk to somebody or you get them to really think about it deeply, they will understand it and they'll let go. But the initial thought is, look, I had this business idea, I want it done my way. I can't, you know, no one's going to care as much as me. I don't believe that. I don't believe that at all. Right? I mean, in the manufacturing business that I ran, I didn't know how to manufacture the product. And so I knew if they relied on my understanding, we'd fail. So I didn't. I relied on their understanding and I let them step up to the challenge. And whenever I do that, whenever I watch that happen, I'm amazed by how people step up.

I would have to agree too, because there's a lot of things. And I've been training myself to not say I don't care because the truth is I do. But what am I supposed to say? There's other things that are a higher priority to me. Higher priority to me right now, basically, I'm not focusing my time and energy on this. But it's not that I don't care, it's just literally there's other things that are higher priority. And when you're saying that.

People are fearful of it.

I think it's interesting because the reality is there's certain things I should not be touching at all.

Right?

I'm going to do the worst job and that's why I don't do them.

That's exactly right. And here's the deal, Mario. If you're doing some of the things you shouldn't be doing, then you're not doing some of the things you should be doing to make your business grow faster.

And they're coming to the top of my mind right now. And I'm very thankful for the team I have in place because it's not my strength, and they know that, and we joke about it.

And this is where my strength is. On stage, on camera, in front, and, you know, doing this type of thing. It's not that I don't care anymore, but it's not the highest priority, even though it's a very important thing. So the last thing I want to ask you is, how do we help people bridge this gap? Because I've noticed there's a lot of people that go, I have a team now. I know people that have a team, and they really do have a team. And there's other people that hired a slew of outsourcers who they're just delegating stuff to here and there, but they're still the linchpin. Does that make sense?

Yes, of course.

How do you help someone create an actual team and not just the linchpin scenario where they sound good for saying, yes, I have people that do stuff for me, but really, they have no guidance, and you couldn't turn them loose on their own.

Yeah, it's probably not just a I don't have a, you know, click your fingers, give you an answer kind of a deal.

Oh, come on. That's what we want, right?

Well, yeah, that's right. I know that's what people want.

You don't have an app for that?

I don't have an app for that, but I do have a first step for that.

I'll take it.

I have a first step for that. And here's the first step that I would tell every business owner. Start making the process to be hired into your business more difficult.

Make it more challenging to become a member of your team.

Most people's hiring process, and I see them all, I've watched everybody do it. It's lame. They hire people that they should never hire for the job, and as a result, they can't rely on them.

But as soon as people start stepping up their hiring process and making it more difficult to get on the team, making the. The hurdle higher, setting the bar higher, and they get people who will jump over that higher bar, then they're surrounded then with people who have the capacity, the capability, and the desire to do the role, do the work. And the business owner can step away from it, but it's the first step.

I'm going to ask one more because this is so good. We could go all day. How long should you wait to fire the wrong person that's killing your team?

Yeah, it's a simple answer so we can go to break here soon. The answer is the moment you believe somebody isn't capable, the first thought, first time that thought enters your brain is when you ought to let them go.

Excellent.

Excellent. Thank you so much. I have thoroughly enjoyed that and I'm glad it's my show because I can bend the rules and we get bring the right answers. We're not skipping over anyone. We're here to serve. So we're going to thank our sponsor and we'll come back for the imperfect action round. Invest automatically, save for later and spend today. That's why I love Acorns. I used to think spare change didn't make a difference and saving and investing was an old fashioned manual process. It's not and it's a game changer. If you're not leveraging compounding interest in your business and life automatically, you're missing out. Acorns not only makes saving and investing easy and automatic, it makes it even more valuable. By investing with diversified portfolios, spare change, extra cash and rounding up everyday transactions, you can even set recurring monthly investments in the amount you desire to make good.

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There is also a debit card option that will continue to help you save and invest even further when you spend plus no minimum balance and overdraft fees. Now for the cherry on top. They have partnered with 250plus companies and brands and growing with their found money program to invest back a percentage into your account with the everyday purchases when you shop, two of which you're probably listening to this right now through an Amazon or Apple device. Get started profiting from your everyday life and business simply and easily today@eainterviews.com Acorns Once again, that's eainterviews.com Acorns and we are back with the Imperfect Action round. Rich, are you ready to take imperfect action?

Let's do it.

First question for you, what is the fastest path to to the cash?

The fastest path is to understand with clarity and certainty the needs of your ideal customer. Not the broad range of customers, but the one customer that would for you be your ideal customer.

Very good. Number two, what is the biggest problem you see your prospects making and the fastest way they can fix it?

The biggest problem that I see is that they don't inspire their team to greatness and it doesn't take much, but you've got to have a vision of where you want the business to be. No one wants to help you if it's all about you. It's got to be about where the business is going and how it can be, how it's inclusive so they can be a part of it. And if you do that, everyone will want to be on the journey with you and they'll help you get there faster.

Very good. Number three, what is the best way to maximize customer lifetime value?

The best way to do that is to always, always over deliver on the promise you made. Whatever promise you make in the selling side on the front wheel of your bike, always, without exception, over deliver on the delivery side. That'll keep customers for life.

Very good. Now, I know that leaders are readers. What type of book, what books could you recommend to Expert Authority World?

Here's one that I don't know whether everybody's read or not, but it's one of my favorites. I have all my clients read it. It's called the Road Less Stupid by Keith Cunningham. And let me just, if I can, real quick, for sure. If you're familiar with Robert Kiyosaki and.

Rich Dad, Poor dad, one of my favorite authors.

He's a great book, great author. His rich dad, his, his poor dad was his real dad. His rich dad was this financial genius that helped him with his understanding how business worked. That person happens to be Keith Cunningham.

No kidding.

He's a brilliant entrepreneur based out of Austin, Texas. I've spent a lot of time with him and he wrote this book that basically outlines all the problems, all the issues that that small business owners make. And it's unbelievable. It's fascinating. A must read for every business owner.

I did not know that and I am excited to read that because I've read over a dozen of Kiyosaki's books over the years.

All the wisdom in Kiyosaki's books comes from Keith Cunningham.

That is fantastic. Thank you very much for sharing that with us.

Where would you like people to learn more about you?

You know, it's easy. I've got. You can see the bike, right? My website name is Tour to Profit. Just like Tour de France, but just remove the France and add profit. It's tourtoprofit.com I actually put together a special page for you and if, if you go there, tourtoprofit.com tour Prof. Expert authority. One word, all written out. Expert Authority. I put some free resources there for all your listeners and watchers.

Well, thank you very much. I appreciate that.

My pleasure.

Rich.

It has been an absolute pleasure. I thank you for your time and coming on the show and sharing with Expert Authority World.

Thank you so much Mario. It's been a blast to be here.

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