1 00:00:01,800 --> 00:00:06,200 Speaker 1: You're listening to Math and Magic, a production of iHeartRadio. 2 00:00:08,080 --> 00:00:12,080 Speaker 2: Small business generates more jobs than large businesses. I think 3 00:00:12,080 --> 00:00:14,360 Speaker 2: that's a surprise to a lot of people, but small 4 00:00:14,360 --> 00:00:17,840 Speaker 2: businesses have generated over ten million jobs over the last decade, 5 00:00:17,880 --> 00:00:21,560 Speaker 2: where large businesses have generated about eight million. So it's 6 00:00:21,800 --> 00:00:25,200 Speaker 2: the backbone of what makes America special. 7 00:00:28,920 --> 00:00:31,240 Speaker 3: Hi, I'm Bob Pittman, and welcome to Math and Magic. 8 00:00:31,360 --> 00:00:34,559 Speaker 3: Stories from the frontiers of marketing. Today, we have stories 9 00:00:34,560 --> 00:00:38,199 Speaker 3: from a serial entrepreneur. He's quoted as saying I'm a 10 00:00:38,240 --> 00:00:42,959 Speaker 3: lifelong employer, never an employee. He's had a special affinity 11 00:00:42,960 --> 00:00:46,200 Speaker 3: for opening up possibilities for small and medium sized businesses. 12 00:00:46,400 --> 00:00:50,680 Speaker 3: He's the founder and CEO of Innovation Refunds. He's Howard Mockler. 13 00:00:51,320 --> 00:00:54,040 Speaker 3: He was early in esports in the early two thousands 14 00:00:54,080 --> 00:00:57,200 Speaker 3: and later made it possible for everyday investors to invest 15 00:00:57,240 --> 00:01:00,160 Speaker 3: in real estate. He's made the tour growing up up 16 00:01:00,160 --> 00:01:04,200 Speaker 3: in Connecticut, starting his career in la and now Miami. 17 00:01:04,520 --> 00:01:07,399 Speaker 3: He's been a professor at Wharton's School of Executive Education, 18 00:01:07,720 --> 00:01:10,560 Speaker 3: and he has a long history of helping others through 19 00:01:10,600 --> 00:01:14,360 Speaker 3: his strong charitable endeavors. And with all that, he still 20 00:01:14,400 --> 00:01:18,080 Speaker 3: maintains the passion and energy of a startup entrepreneur. 21 00:01:18,120 --> 00:01:21,200 Speaker 2: Howard, Welcome, Thank you, Bob. It's a really pleasure to 22 00:01:21,240 --> 00:01:21,760 Speaker 2: be here with you. 23 00:01:22,480 --> 00:01:25,240 Speaker 3: Before we jump in, Howard, I want to get you 24 00:01:25,880 --> 00:01:27,120 Speaker 3: in sixty seconds. 25 00:01:27,280 --> 00:01:28,600 Speaker 2: You ready, I'm ready? 26 00:01:29,760 --> 00:01:34,000 Speaker 3: Cats or dogs, Dogs, winter or summer, Summer, salty or 27 00:01:34,040 --> 00:01:39,160 Speaker 3: sweet Sweet real estate or East Sports real Estate, Early Riser, 28 00:01:39,160 --> 00:01:43,000 Speaker 3: A night out, Early Riser, California or Florida, Florida. Rock 29 00:01:43,040 --> 00:01:46,400 Speaker 3: and Roller, country, rock and roll. All time favorite musical 30 00:01:46,480 --> 00:01:49,160 Speaker 3: artist Elton John smartest person you. 31 00:01:49,160 --> 00:01:51,559 Speaker 2: Know, my father. 32 00:01:51,800 --> 00:01:54,600 Speaker 3: Favorite place to visit, Beijing, secret talent. 33 00:01:55,280 --> 00:01:58,160 Speaker 2: My staff would say, I'm a magician. So I'm going 34 00:01:58,240 --> 00:01:59,680 Speaker 2: to say a magician. 35 00:01:59,400 --> 00:02:01,600 Speaker 3: And fine, what did you want to be when you 36 00:02:01,640 --> 00:02:02,200 Speaker 3: were growing up? 37 00:02:02,600 --> 00:02:03,520 Speaker 2: A business owner? 38 00:02:04,160 --> 00:02:07,560 Speaker 3: Okay, let's jump in. You have a Steve job story 39 00:02:07,640 --> 00:02:10,880 Speaker 3: from before Steve Jobs was really Steve Jobs. But it 40 00:02:10,960 --> 00:02:14,079 Speaker 3: tells you something about why he was as successful as 41 00:02:14,080 --> 00:02:15,800 Speaker 3: he was. Can you tell us that story? 42 00:02:16,120 --> 00:02:20,320 Speaker 2: So I was about thirteen when I started my first 43 00:02:20,639 --> 00:02:25,480 Speaker 2: company and also acquired my first Apple two computer. It 44 00:02:25,520 --> 00:02:28,200 Speaker 2: was one of the very first Apple twos that was produced, 45 00:02:28,360 --> 00:02:31,680 Speaker 2: and when I turned it on, every TV in the 46 00:02:31,800 --> 00:02:35,680 Speaker 2: house went Haywire. There was no RF shielding in the computer. 47 00:02:36,040 --> 00:02:38,800 Speaker 2: It was very early days of personal computing, and so 48 00:02:38,919 --> 00:02:41,320 Speaker 2: I was living at the time with my father in 49 00:02:41,400 --> 00:02:44,120 Speaker 2: Menlo Park, which is down the street from Palo Alto, 50 00:02:44,200 --> 00:02:47,040 Speaker 2: where Apple is based. I picked up the phone and 51 00:02:47,080 --> 00:02:50,680 Speaker 2: I called Apple's headquarters and asked to talk to Steve Jobs. 52 00:02:51,000 --> 00:02:53,880 Speaker 2: The very nice receptionist told me that he was tied up, 53 00:02:53,919 --> 00:02:56,480 Speaker 2: and I offered to call back, which I did. She 54 00:02:56,639 --> 00:03:00,960 Speaker 2: put me through and Steve immediately diagnosed what the problem was, 55 00:03:01,560 --> 00:03:05,600 Speaker 2: and once you determined it was a unshielded computer case, 56 00:03:05,639 --> 00:03:09,640 Speaker 2: he dispatched a technician to my house in Menlo Park 57 00:03:09,720 --> 00:03:11,400 Speaker 2: to swap out the computer. 58 00:03:11,960 --> 00:03:14,320 Speaker 3: You always want to be a business person, You were 59 00:03:14,360 --> 00:03:17,400 Speaker 3: always thinking about business. How did that experience shape your 60 00:03:17,480 --> 00:03:19,320 Speaker 3: view of customers and customer service? 61 00:03:20,040 --> 00:03:23,000 Speaker 2: Yeah, and I really am crazy about customer service. We 62 00:03:23,080 --> 00:03:26,080 Speaker 2: have ninety nine percent five star reviews, and it really 63 00:03:26,120 --> 00:03:29,200 Speaker 2: did shape my opinion. My cell phone can be found 64 00:03:29,560 --> 00:03:33,080 Speaker 2: on the internet. I don't hide. People can find me 65 00:03:33,200 --> 00:03:36,080 Speaker 2: and do and I actually enjoy it when they track 66 00:03:36,160 --> 00:03:39,640 Speaker 2: me down. But customer service really is about responding to 67 00:03:39,640 --> 00:03:42,040 Speaker 2: the customer, making sure that you take care of their needs, 68 00:03:42,160 --> 00:03:45,880 Speaker 2: understanding what went wrong, not making excuses and trying to 69 00:03:45,920 --> 00:03:49,360 Speaker 2: cover up for things, but really being transparent, honest and 70 00:03:49,520 --> 00:03:52,760 Speaker 2: directly addressing whatever the circumstance is. I think we've all 71 00:03:52,760 --> 00:03:56,280 Speaker 2: been really frustrated with poor customer service, and when you 72 00:03:56,320 --> 00:03:59,200 Speaker 2: have exceptional customer service, it really tends to stand out. 73 00:03:59,720 --> 00:04:02,800 Speaker 3: You have a history of spotting and opening in the 74 00:04:02,800 --> 00:04:06,640 Speaker 3: market or a need and serving that need. You have 75 00:04:06,680 --> 00:04:10,680 Speaker 3: an overriding philosophy about providing services to small and medium 76 00:04:10,720 --> 00:04:14,120 Speaker 3: sized businesses, giving them sort of the advantages, if you will, 77 00:04:14,120 --> 00:04:17,040 Speaker 3: of scale, access and experience. Can you talk just a 78 00:04:17,080 --> 00:04:17,840 Speaker 3: little bit about that. 79 00:04:17,880 --> 00:04:21,440 Speaker 2: What that overview is small and medium businesses are the 80 00:04:21,440 --> 00:04:24,440 Speaker 2: backbone of America. And I know we say that, we've 81 00:04:24,480 --> 00:04:27,120 Speaker 2: heard that, but what does it mean. It means that 82 00:04:27,200 --> 00:04:31,159 Speaker 2: small business generates more jobs than large businesses. I think 83 00:04:31,160 --> 00:04:33,440 Speaker 2: that's a surprise to a lot of people, But small 84 00:04:33,480 --> 00:04:36,919 Speaker 2: businesses have generated over ten million jobs over the last decade, 85 00:04:37,040 --> 00:04:40,600 Speaker 2: where large businesses have generated about eight million. It's the 86 00:04:40,720 --> 00:04:47,599 Speaker 2: backbone of what makes America special, and unfortunately small businesses 87 00:04:47,720 --> 00:04:50,640 Speaker 2: don't get the kind of service that they need. You 88 00:04:50,760 --> 00:04:53,680 Speaker 2: have a lot of folks that have the entrepreneurial spirit, 89 00:04:53,720 --> 00:04:56,039 Speaker 2: but they just don't have the training and backing to 90 00:04:56,080 --> 00:05:01,800 Speaker 2: really understand, whether it be finances, accounting, marketing technology. When 91 00:05:01,800 --> 00:05:05,480 Speaker 2: you talk to non business owners, there's a perception that 92 00:05:05,720 --> 00:05:08,360 Speaker 2: the business owner is the wealthy one or the one 93 00:05:08,360 --> 00:05:11,359 Speaker 2: that enjoys all the wonderful fruits of life. And that 94 00:05:11,480 --> 00:05:14,640 Speaker 2: might be true, but what's more true is that business 95 00:05:14,640 --> 00:05:17,400 Speaker 2: owners are the last to get paid. They're the ones 96 00:05:17,440 --> 00:05:20,599 Speaker 2: who ensure that payroll is made, rent is paid, and 97 00:05:20,640 --> 00:05:23,400 Speaker 2: if there's money left over, god willing, they get it. 98 00:05:24,160 --> 00:05:27,440 Speaker 2: And it's a very thankless task. So many business owners 99 00:05:27,720 --> 00:05:30,159 Speaker 2: end up working very, very hard and end up not 100 00:05:30,279 --> 00:05:33,400 Speaker 2: making money. I really behooves all of us to support 101 00:05:33,440 --> 00:05:35,800 Speaker 2: the business community and for those of us that have 102 00:05:35,880 --> 00:05:38,960 Speaker 2: been successful to try to share whatever we can with 103 00:05:39,080 --> 00:05:41,160 Speaker 2: the folks that are coming up so that they too 104 00:05:41,240 --> 00:05:43,120 Speaker 2: can be successful and employ more people. 105 00:05:43,720 --> 00:05:47,760 Speaker 3: So you are doing that today with your company innovation refunds. 106 00:05:48,120 --> 00:05:50,640 Speaker 3: Talk a little bit about how that came about and 107 00:05:50,680 --> 00:05:52,479 Speaker 3: specifically how it's filling that void. 108 00:05:52,800 --> 00:05:55,839 Speaker 2: Yeah, I'm really proud of it. Little background. I was 109 00:05:55,880 --> 00:05:59,480 Speaker 2: the founder and president of a rate, a real estate 110 00:05:59,520 --> 00:06:04,040 Speaker 2: investment trust alongside the chairman of CBRE, founder of Tinder, 111 00:06:04,200 --> 00:06:07,440 Speaker 2: was one of our partners that ended up getting acquired 112 00:06:07,680 --> 00:06:11,279 Speaker 2: by another read and I was looking for what my 113 00:06:11,440 --> 00:06:15,920 Speaker 2: next exciting venture was going to be, and I learned 114 00:06:15,960 --> 00:06:21,680 Speaker 2: about these government programs. The government has considerable resources that 115 00:06:21,720 --> 00:06:25,640 Speaker 2: are devoted to helping businesses, but unfortunately, most of that 116 00:06:25,680 --> 00:06:28,520 Speaker 2: aid never reaches the business owners. They're just not aware 117 00:06:28,520 --> 00:06:30,320 Speaker 2: of it, and when they are aware of it, they 118 00:06:30,360 --> 00:06:32,279 Speaker 2: don't know how to cut through the red tape and 119 00:06:32,360 --> 00:06:35,720 Speaker 2: actually apply for these funds and receive them. I learned 120 00:06:35,720 --> 00:06:39,880 Speaker 2: about this opportunity and one of my superpowers design how 121 00:06:39,920 --> 00:06:43,560 Speaker 2: to create businesses. I've done it many times. I created 122 00:06:43,800 --> 00:06:48,800 Speaker 2: the company that was specializing in helping businesses to apply 123 00:06:49,000 --> 00:06:52,479 Speaker 2: for and obtain money from programs such as research and 124 00:06:52,560 --> 00:06:58,159 Speaker 2: development enterprise zones, and then a COVID program came out 125 00:06:58,520 --> 00:07:03,560 Speaker 2: part of the Cares Act. Many businesses got PPP. Everybody 126 00:07:03,640 --> 00:07:07,120 Speaker 2: heard of PPP right absolutely well. There was an unknown 127 00:07:07,320 --> 00:07:11,880 Speaker 2: brother or sister to PPP called ERC, which many people 128 00:07:11,920 --> 00:07:14,040 Speaker 2: now have heard of. I think in large part of 129 00:07:14,080 --> 00:07:16,560 Speaker 2: our ads on iHeart My Heart's been great helping us 130 00:07:16,560 --> 00:07:21,080 Speaker 2: to get the message out that this employee retention credit 131 00:07:21,360 --> 00:07:24,640 Speaker 2: or a payroll tax refund is available. In the last 132 00:07:24,720 --> 00:07:30,360 Speaker 2: eighteen months, we've helped twenty thousand businesses receive five and 133 00:07:30,360 --> 00:07:34,400 Speaker 2: a half billion dollars that they otherwise wouldn't have received. 134 00:07:34,920 --> 00:07:38,320 Speaker 3: You sort of were right place, right time, serving a 135 00:07:38,440 --> 00:07:41,840 Speaker 3: defined need. Now that the refunds are working their way 136 00:07:41,840 --> 00:07:45,880 Speaker 3: through the system, and you built this infrastructure for serving businesses, 137 00:07:46,280 --> 00:07:47,360 Speaker 3: what's next. 138 00:07:47,520 --> 00:07:52,400 Speaker 2: This was designed to be a foundation. What's next is 139 00:07:53,360 --> 00:07:59,080 Speaker 2: multiple engines designed to serve businesses. So one engine is 140 00:07:59,120 --> 00:08:04,240 Speaker 2: a government incentive engine. It will uncover all government incentives 141 00:08:04,240 --> 00:08:09,160 Speaker 2: at a federal or state or local level and navigate 142 00:08:09,200 --> 00:08:12,960 Speaker 2: the process of applying and receiving those funds. So a 143 00:08:13,000 --> 00:08:16,600 Speaker 2: company essentially comes to our site, they give us access 144 00:08:16,680 --> 00:08:21,360 Speaker 2: to their data. We then spend our resources hiring tax 145 00:08:21,400 --> 00:08:24,760 Speaker 2: attorneys and other professionals who go through their data at 146 00:08:24,760 --> 00:08:29,160 Speaker 2: our expense, and then we match up government programs to 147 00:08:29,240 --> 00:08:33,200 Speaker 2: bring them immediate cash. That's one bucket. Another bucket is 148 00:08:33,240 --> 00:08:36,480 Speaker 2: helping them to take their accounts receivable and turn that 149 00:08:36,640 --> 00:08:40,400 Speaker 2: into immediate cash. And then the last is a marketplace 150 00:08:40,520 --> 00:08:43,640 Speaker 2: where we have a number of goods and services ranging 151 00:08:43,679 --> 00:08:49,200 Speaker 2: from insurance to helping with marketing technology training. Really a 152 00:08:49,240 --> 00:08:52,800 Speaker 2: full ecosystem designed to help the businesses to unlock their 153 00:08:52,840 --> 00:08:53,600 Speaker 2: full potential. 154 00:08:54,080 --> 00:08:58,760 Speaker 3: So let's jump to some hot topics. AI it's finally arrived. 155 00:08:59,360 --> 00:09:02,360 Speaker 3: Is it friend or foe? And what impact will that 156 00:09:02,480 --> 00:09:04,359 Speaker 3: have on small and medium businesses. 157 00:09:05,040 --> 00:09:07,560 Speaker 2: Well, it's a bit of both. I saw this cute 158 00:09:07,559 --> 00:09:10,400 Speaker 2: commercial and it said AI won't take your job, It'll 159 00:09:10,400 --> 00:09:13,559 Speaker 2: be someone who has learned how to use AI. And 160 00:09:13,720 --> 00:09:16,000 Speaker 2: I can say in our company, we have a number 161 00:09:16,000 --> 00:09:19,199 Speaker 2: of folks that are on the front line of experimenting 162 00:09:19,240 --> 00:09:23,440 Speaker 2: with AI. AI is very, very powerful. It's also not 163 00:09:23,559 --> 00:09:27,880 Speaker 2: a panacea. I've seen plenty of wrong information come out 164 00:09:27,920 --> 00:09:33,600 Speaker 2: of chat GPT, so it's a powerful, powerful tool. If 165 00:09:33,679 --> 00:09:37,760 Speaker 2: harnessed properly, it can be tremendously beneficial. I think the 166 00:09:37,800 --> 00:09:40,000 Speaker 2: net net for small business is that it will be 167 00:09:40,040 --> 00:09:41,160 Speaker 2: a tremendous gain. 168 00:09:41,480 --> 00:09:45,199 Speaker 3: We see in small businesses, especially the difficulties of recruiting 169 00:09:45,440 --> 00:09:48,360 Speaker 3: enough employees. And often we talk to small business owners, 170 00:09:48,360 --> 00:09:50,360 Speaker 3: they'll say, my business is limited just by the people 171 00:09:50,440 --> 00:09:54,079 Speaker 3: I can have. You think AI helps that or is 172 00:09:54,120 --> 00:09:56,320 Speaker 3: it a threat to them in terms of eliminating their 173 00:09:56,320 --> 00:09:57,000 Speaker 3: whole business? 174 00:09:57,400 --> 00:09:59,920 Speaker 2: Oh, it can level the playing field. I think every 175 00:10:00,120 --> 00:10:05,360 Speaker 2: business owner should have some young person on their staff 176 00:10:05,960 --> 00:10:10,520 Speaker 2: experimenting with how AI can improve and change their business. 177 00:10:10,880 --> 00:10:14,559 Speaker 2: There isn't a business in America that isn't ripe for 178 00:10:14,840 --> 00:10:19,960 Speaker 2: improvement using AI and your garden variety. Twenty one year 179 00:10:19,960 --> 00:10:24,480 Speaker 2: old kid is probably ripe for figuring out ways that 180 00:10:24,559 --> 00:10:25,319 Speaker 2: you can do it. 181 00:10:25,800 --> 00:10:29,679 Speaker 3: Let's talk about nimbleness. Small businesses are definitely more agile 182 00:10:29,840 --> 00:10:32,400 Speaker 3: than large businesses. Why do you think that is and 183 00:10:32,440 --> 00:10:36,320 Speaker 3: what lessons can large businesses learn from the small business community. 184 00:10:36,760 --> 00:10:40,880 Speaker 2: Well, small businesses, we make decisions rapidly. We don't get 185 00:10:41,160 --> 00:10:44,400 Speaker 2: bogged down in bureaucracy. There are leaders like you, Bob 186 00:10:44,559 --> 00:10:48,200 Speaker 2: that are able to cut through that in large organizations. 187 00:10:48,240 --> 00:10:52,000 Speaker 2: But generally speaking, I find large companies can't get out 188 00:10:52,000 --> 00:10:54,800 Speaker 2: of their own way, where small companies are able to 189 00:10:55,160 --> 00:10:56,959 Speaker 2: make very nimble decisions. 190 00:10:57,360 --> 00:11:02,359 Speaker 3: Let's talk about culture. You've built this businesses, You've served other businesses. 191 00:11:02,440 --> 00:11:04,480 Speaker 3: You watch them all, you're a student of them, you've 192 00:11:04,520 --> 00:11:07,960 Speaker 3: been a professor. How do you build culture differently in 193 00:11:08,000 --> 00:11:10,440 Speaker 3: a small company than you do in a big business? 194 00:11:10,840 --> 00:11:12,520 Speaker 2: My answer is going to work for whether it's a 195 00:11:12,600 --> 00:11:15,800 Speaker 2: large company or a small company. It starts with caring 196 00:11:15,840 --> 00:11:20,360 Speaker 2: about your people. That's the number one variable is how 197 00:11:20,400 --> 00:11:23,559 Speaker 2: do you care for your people. I give you some stories. 198 00:11:24,120 --> 00:11:27,000 Speaker 2: Our headquarters is in Des Moines and there was a 199 00:11:27,040 --> 00:11:31,080 Speaker 2: freak kil storm that showed up in July. It's golf 200 00:11:31,200 --> 00:11:34,960 Speaker 2: ball size hail, and Bob I stood there at the 201 00:11:35,000 --> 00:11:39,200 Speaker 2: window in the office watching hundreds of cars in the 202 00:11:39,240 --> 00:11:43,680 Speaker 2: parking lot be destroyed. The hail came and they looked 203 00:11:43,760 --> 00:11:47,440 Speaker 2: like egg crates. When they were done, every car destroyed, 204 00:11:47,720 --> 00:11:52,480 Speaker 2: The company covered everybody's deductible. That's how you create culture. 205 00:11:52,880 --> 00:11:55,520 Speaker 2: It's how you demonstrate that you care. And it's not 206 00:11:55,600 --> 00:12:00,120 Speaker 2: about spending money, although it does cost money to create culture. 207 00:12:00,559 --> 00:12:03,959 Speaker 2: At our company, we have a full time well being 208 00:12:04,040 --> 00:12:09,040 Speaker 2: program Ignite Heart. We have a full time facilitator and 209 00:12:09,080 --> 00:12:12,800 Speaker 2: she is available to the entire staff of the company 210 00:12:13,280 --> 00:12:17,160 Speaker 2: to talk about anything that's bothering them, whether it be 211 00:12:17,200 --> 00:12:20,000 Speaker 2: there just having a grumpy day or something is very 212 00:12:20,000 --> 00:12:23,839 Speaker 2: serious in their life, providing them some guidance and some help, 213 00:12:24,360 --> 00:12:27,800 Speaker 2: and all of it feeds back into culture because the 214 00:12:28,240 --> 00:12:31,520 Speaker 2: people in the company know that the company cares about them, 215 00:12:32,160 --> 00:12:34,920 Speaker 2: and we devote resources to show them that we care 216 00:12:34,960 --> 00:12:37,400 Speaker 2: about them. And that's the really the way you create culture. 217 00:12:37,720 --> 00:12:41,840 Speaker 3: Let's jump a little bit brand. How does a small business, 218 00:12:41,960 --> 00:12:45,000 Speaker 3: medium sized business build a brand, and is that different 219 00:12:45,360 --> 00:12:47,160 Speaker 3: than a large company building a brand. 220 00:12:47,679 --> 00:12:51,720 Speaker 2: The core is the same, it's consistency of behavior. Brand 221 00:12:52,360 --> 00:12:56,840 Speaker 2: is a fingerprint of your behavior. If you want to 222 00:12:56,920 --> 00:13:02,360 Speaker 2: create brand, it's going to be a mirror of how 223 00:13:02,440 --> 00:13:06,400 Speaker 2: you act as a company. And really I find that 224 00:13:06,400 --> 00:13:10,079 Speaker 2: that starts at the top. The leaders end up determining 225 00:13:10,640 --> 00:13:13,160 Speaker 2: what that brand is going to be like and how 226 00:13:13,200 --> 00:13:16,680 Speaker 2: the company is going to react. I know, iHeart cares 227 00:13:16,720 --> 00:13:20,240 Speaker 2: about their people and their customers. You care about everybody, 228 00:13:20,400 --> 00:13:23,400 Speaker 2: and you act that way, and that's the way we act. 229 00:13:23,520 --> 00:13:25,440 Speaker 2: And I don't think it matters if you have a 230 00:13:25,480 --> 00:13:29,920 Speaker 2: small automobile repair shop that's in a small town, where 231 00:13:29,960 --> 00:13:32,520 Speaker 2: you own a very large business in a big city. 232 00:13:32,640 --> 00:13:35,600 Speaker 2: I think at the end, it's all a representation of 233 00:13:35,640 --> 00:13:38,600 Speaker 2: how you treat your people and your customers. 234 00:13:39,040 --> 00:13:41,319 Speaker 3: I want to keep going with the lessons, but first 235 00:13:41,559 --> 00:13:43,800 Speaker 3: I want to get some context on you by going 236 00:13:43,880 --> 00:13:46,400 Speaker 3: back in time. You grew up in the seventies and 237 00:13:46,440 --> 00:13:49,440 Speaker 3: eighties in Connecticut. Paint the picture of that time and 238 00:13:49,559 --> 00:13:51,960 Speaker 3: place and the family life you grew up with. 239 00:13:52,440 --> 00:13:57,520 Speaker 2: So grew up product of divorce parents who I think 240 00:13:57,559 --> 00:14:00,560 Speaker 2: like a lot of divorces were tough on the kids, 241 00:14:00,720 --> 00:14:04,680 Speaker 2: tough on the parents, and getting shuffled back and forth 242 00:14:04,760 --> 00:14:10,000 Speaker 2: between mom and dad. Ultimately, at thirteen, I started my 243 00:14:10,160 --> 00:14:14,400 Speaker 2: first computer business. I was doing about one hundred thousand 244 00:14:14,480 --> 00:14:17,840 Speaker 2: dollars a month in sales by the time I was fifteen, 245 00:14:18,160 --> 00:14:22,760 Speaker 2: and I ended up moving to California. I actually got 246 00:14:22,760 --> 00:14:25,520 Speaker 2: out of high school early. I think, like I don't know, 247 00:14:25,880 --> 00:14:29,440 Speaker 2: maybe like a lot of entrepreneurs, got out, took some 248 00:14:29,480 --> 00:14:34,640 Speaker 2: college classes that interested me, and started my second or 249 00:14:34,680 --> 00:14:35,720 Speaker 2: third company by then. 250 00:14:36,400 --> 00:14:37,600 Speaker 3: So were you a good student? 251 00:14:37,960 --> 00:14:43,040 Speaker 2: I was a good student when I enjoyed learning, and 252 00:14:43,200 --> 00:14:46,080 Speaker 2: then I got bored of learning in school and I 253 00:14:46,200 --> 00:14:48,880 Speaker 2: was no longer a good student. I wanted to learn 254 00:14:48,880 --> 00:14:49,520 Speaker 2: in business. 255 00:14:50,000 --> 00:14:51,920 Speaker 3: What impact do you think your parents had on you 256 00:14:52,040 --> 00:14:53,480 Speaker 3: that still affect you today? 257 00:14:54,040 --> 00:14:58,360 Speaker 2: Well? Huge. My mother was a good mother. She wanted 258 00:14:58,360 --> 00:15:00,280 Speaker 2: to do what a mother does to take care and 259 00:15:00,320 --> 00:15:04,200 Speaker 2: to protect and to provide comfort. My father was an 260 00:15:04,360 --> 00:15:07,920 Speaker 2: entrepreneur as well and a business owner. So he was 261 00:15:07,960 --> 00:15:10,920 Speaker 2: the one that bought me that Apple computer at thirteen 262 00:15:11,000 --> 00:15:13,720 Speaker 2: years old, and at a time when he wasn't doing 263 00:15:13,760 --> 00:15:16,600 Speaker 2: all that well. It was a real stretch for him. Actually, 264 00:15:16,720 --> 00:15:19,760 Speaker 2: he really went out on a limb to be able 265 00:15:19,800 --> 00:15:22,880 Speaker 2: to afford to get me that computer. He felt that 266 00:15:22,920 --> 00:15:25,360 Speaker 2: it would materially impact my future, and it did. 267 00:15:26,000 --> 00:15:29,440 Speaker 3: Yeah, I'll say, so, let's talk about college. Did you 268 00:15:29,480 --> 00:15:32,280 Speaker 3: go to college? Nope, and ever have a desire to 269 00:15:32,320 --> 00:15:33,000 Speaker 3: go to college. 270 00:15:33,240 --> 00:15:36,240 Speaker 2: I spent fifteen years teaching a day class at Wharton. 271 00:15:36,600 --> 00:15:39,960 Speaker 2: I think college is really about teaching you how to learn. 272 00:15:40,560 --> 00:15:44,960 Speaker 2: And if you're an entrepreneur, you probably figured that out. 273 00:15:45,240 --> 00:15:49,000 Speaker 3: So although you're a business junkie, very clearly since in 274 00:15:49,000 --> 00:15:51,720 Speaker 3: an early age, you've been very committed to helping the 275 00:15:51,760 --> 00:15:53,680 Speaker 3: world you live in. You're on the board of the 276 00:15:53,680 --> 00:15:57,480 Speaker 3: Skyhook Foundation, that was a charity founded by Kareem Abdul Jabbar, 277 00:15:57,760 --> 00:16:01,520 Speaker 3: and many more charities. How do you think about nonprofit 278 00:16:01,600 --> 00:16:03,240 Speaker 3: work as part of your life. 279 00:16:03,480 --> 00:16:07,200 Speaker 2: Probably the most proud work I did was a hospital 280 00:16:07,320 --> 00:16:10,560 Speaker 2: pastor for boy I don't know, maybe eight years or so, 281 00:16:10,640 --> 00:16:14,840 Speaker 2: over a thousand hours. I think it's really important that 282 00:16:15,160 --> 00:16:20,760 Speaker 2: we give back, and it's especially important because our lives, 283 00:16:21,120 --> 00:16:25,440 Speaker 2: our troubles all seems so important to us. And when 284 00:16:25,520 --> 00:16:29,080 Speaker 2: we can get outside of ourselves and be a help 285 00:16:29,160 --> 00:16:32,920 Speaker 2: to somebody else, it provides great perspective in our own 286 00:16:33,000 --> 00:16:36,400 Speaker 2: life as well as just being incredibly healing. So I 287 00:16:36,480 --> 00:16:39,800 Speaker 2: think everybody should experience what it is to give back. 288 00:16:40,880 --> 00:16:50,400 Speaker 3: More on Mathemagic right after this quick break. Welcome back 289 00:16:50,440 --> 00:16:53,480 Speaker 3: to mathem Magic. Let's hear more from my conversation with 290 00:16:53,520 --> 00:16:54,200 Speaker 3: Howard Bckler. 291 00:16:56,640 --> 00:16:57,200 Speaker 2: You've had a. 292 00:16:57,120 --> 00:17:00,080 Speaker 3: Lot of interesting businesses. I won't recount them all, but 293 00:17:00,160 --> 00:17:03,560 Speaker 3: when esports was just getting started, you had Howie's game 294 00:17:03,640 --> 00:17:06,480 Speaker 3: Shock in Orange County. He had it for about fifteen years. 295 00:17:06,520 --> 00:17:10,120 Speaker 3: Can you explain what that was? You were extraordinarily early here. 296 00:17:10,400 --> 00:17:13,080 Speaker 2: Yeah, and that was great. My partner in that was 297 00:17:13,160 --> 00:17:17,080 Speaker 2: a great guy named Joe Dason, and we sat around 298 00:17:17,200 --> 00:17:20,080 Speaker 2: and this is really, I think provides a great blueprint 299 00:17:20,200 --> 00:17:23,119 Speaker 2: on what it is to be an entrepreneur. We like 300 00:17:23,200 --> 00:17:25,439 Speaker 2: to play video games in that time, and so we 301 00:17:25,520 --> 00:17:28,280 Speaker 2: would get together with maybe a dozen of our friends. 302 00:17:28,600 --> 00:17:32,879 Speaker 2: Everybody would bring their PC to the office and we 303 00:17:32,880 --> 00:17:37,040 Speaker 2: would make a network connect everybody together, and inevitably, of 304 00:17:37,080 --> 00:17:40,680 Speaker 2: the dozen computers, one wouldn't connect, and everybody'd be frustrated 305 00:17:41,440 --> 00:17:43,680 Speaker 2: and we would all sit around saying, gosh, we need 306 00:17:43,720 --> 00:17:47,280 Speaker 2: a place where we can all play games and have 307 00:17:47,440 --> 00:17:51,280 Speaker 2: pizza and drink monster energy. That was the era. Many 308 00:17:51,359 --> 00:17:55,080 Speaker 2: people talk about things or dream about things, But the 309 00:17:55,119 --> 00:17:57,720 Speaker 2: way I dream is I take action. And so we 310 00:17:57,880 --> 00:18:02,280 Speaker 2: ended up drawing what this could look like, and within 311 00:18:02,440 --> 00:18:06,240 Speaker 2: six months we had built the largest computer game center 312 00:18:06,280 --> 00:18:10,359 Speaker 2: in North America. We ended up opening seven of them, 313 00:18:10,680 --> 00:18:16,480 Speaker 2: which connected over two thousand computers. This is before online gameplay. 314 00:18:16,680 --> 00:18:21,760 Speaker 2: I had literally two thousand people playing computer games against 315 00:18:21,800 --> 00:18:25,959 Speaker 2: each other before there was online gameplay. 316 00:18:26,520 --> 00:18:29,879 Speaker 3: Let's jump a little bit to you as educator. You 317 00:18:29,960 --> 00:18:33,400 Speaker 3: were not college graduate and go to college, and yet 318 00:18:33,440 --> 00:18:36,479 Speaker 3: you wound up teaching an advanced course on leasing at 319 00:18:36,480 --> 00:18:39,760 Speaker 3: the Wharton Executive Education. Why did you want to teach 320 00:18:40,400 --> 00:18:42,240 Speaker 3: and what did you get out of teaching? 321 00:18:42,680 --> 00:18:46,800 Speaker 2: Well, I love giving back and that program was part 322 00:18:46,840 --> 00:18:50,600 Speaker 2: of a program that was designed by Wharton and the 323 00:18:50,680 --> 00:18:55,320 Speaker 2: trade association that represents shopping centers called the International Council 324 00:18:55,320 --> 00:18:59,920 Speaker 2: of Shopping Centers, and it gave me an opportunity to 325 00:19:00,040 --> 00:19:04,040 Speaker 2: each to folks that were in the retail shopping center 326 00:19:04,119 --> 00:19:10,360 Speaker 2: industry to really perform better. My second business that lasted 327 00:19:10,359 --> 00:19:14,040 Speaker 2: for fifteen years, was the largest company that disposed of 328 00:19:14,119 --> 00:19:19,240 Speaker 2: surplus real estate for retailers. So whenever Walgreens or CBS 329 00:19:19,440 --> 00:19:22,800 Speaker 2: or Kroger or AMC would close the store, we would 330 00:19:22,800 --> 00:19:25,919 Speaker 2: represent them and find a solution for that real estate. 331 00:19:26,160 --> 00:19:29,040 Speaker 2: And I found that I was able to mentor a 332 00:19:29,119 --> 00:19:32,720 Speaker 2: lot of young people that were coming into the retail 333 00:19:32,760 --> 00:19:38,000 Speaker 2: real estate industry. And for literally a decade plus, I 334 00:19:38,040 --> 00:19:41,200 Speaker 2: would bump into these people and they would share how 335 00:19:41,280 --> 00:19:45,359 Speaker 2: much they received out of this class. And I always 336 00:19:45,400 --> 00:19:49,919 Speaker 2: tried to have tangible takeaways from the class. So I 337 00:19:49,960 --> 00:19:52,119 Speaker 2: really didn't want the class to just be where you 338 00:19:52,160 --> 00:19:56,200 Speaker 2: attend and then you don't find anything usable. And when 339 00:19:56,480 --> 00:19:59,760 Speaker 2: I received feedback over the years of how helpful that 340 00:19:59,880 --> 00:20:02,560 Speaker 2: was to people, it really inspired me to do more. 341 00:20:03,000 --> 00:20:06,520 Speaker 3: So one of your secret powers, I think, is how 342 00:20:06,560 --> 00:20:10,040 Speaker 3: you build a team. How do you think about hiring 343 00:20:10,119 --> 00:20:12,240 Speaker 3: people and retaining people? 344 00:20:12,560 --> 00:20:15,000 Speaker 2: Thank you, It is one of my superpowers. I have 345 00:20:15,080 --> 00:20:19,880 Speaker 2: almost no turnover in the company. People almost never leave here. 346 00:20:21,240 --> 00:20:25,800 Speaker 2: We treat people right, We make them feel that they 347 00:20:25,840 --> 00:20:30,359 Speaker 2: are heard. We go out of our way to be 348 00:20:30,520 --> 00:20:34,480 Speaker 2: transparent and honest with all of our people. We flow 349 00:20:34,520 --> 00:20:38,560 Speaker 2: information like water, and we really treat them as valued 350 00:20:38,640 --> 00:20:42,919 Speaker 2: members of our community. It's little things, whether that means 351 00:20:43,000 --> 00:20:47,160 Speaker 2: they don't have to pay for water or snacks, Those 352 00:20:47,200 --> 00:20:50,520 Speaker 2: little items, whether it be the Ignite Heart program that 353 00:20:50,560 --> 00:20:54,280 Speaker 2: we provide. If you really want to create a high 354 00:20:54,359 --> 00:20:58,000 Speaker 2: performance team, you're going to have to treat people like adults. 355 00:20:58,320 --> 00:21:04,760 Speaker 2: It's a commitment to treating your people the best possible way. 356 00:21:05,640 --> 00:21:09,040 Speaker 3: I can't let you be on this episode without really 357 00:21:09,080 --> 00:21:13,040 Speaker 3: dig into something that's very current today and especially as 358 00:21:13,040 --> 00:21:16,439 Speaker 3: it relates to small and medium businesses. Community banks have 359 00:21:16,520 --> 00:21:19,679 Speaker 3: a very special and key relationship with those small and 360 00:21:19,680 --> 00:21:23,439 Speaker 3: medium banks. How have the difficulties with these regional banks 361 00:21:23,480 --> 00:21:28,120 Speaker 3: affected these businesses and how does that relationship change? Who 362 00:21:28,160 --> 00:21:28,840 Speaker 3: fills the hole? 363 00:21:29,320 --> 00:21:33,000 Speaker 2: Thank you for asking that. So I have one group 364 00:21:33,080 --> 00:21:36,639 Speaker 2: of investors in this company, and that is a group 365 00:21:36,680 --> 00:21:40,080 Speaker 2: of community banks. They're my only investors. They've been with 366 00:21:40,119 --> 00:21:42,639 Speaker 2: me since the very beginning, so I'm really very close 367 00:21:42,680 --> 00:21:46,800 Speaker 2: to the subject. This is a really, really tricky one 368 00:21:47,200 --> 00:21:52,000 Speaker 2: because every business owner that I know is looking at 369 00:21:52,200 --> 00:21:55,840 Speaker 2: their bank balances making sure that their money is secure. 370 00:21:56,760 --> 00:22:02,119 Speaker 2: Picking the right bank is really really important, and the 371 00:22:02,240 --> 00:22:06,320 Speaker 2: large banks provide a valuable service, but the community banks 372 00:22:06,359 --> 00:22:12,040 Speaker 2: are also really really important. Unfortunately, over the next few years, 373 00:22:12,680 --> 00:22:15,320 Speaker 2: we're going to find a little bit of a desert 374 00:22:15,560 --> 00:22:19,120 Speaker 2: for businesses, and we're already seeing it. In the financing side, 375 00:22:19,560 --> 00:22:23,359 Speaker 2: small businesses are having a much harder time and likely 376 00:22:23,560 --> 00:22:26,080 Speaker 2: are going to continue to have a hard time finding 377 00:22:26,119 --> 00:22:30,240 Speaker 2: good banking solutions. And I would just warn everybody watch 378 00:22:30,320 --> 00:22:34,040 Speaker 2: those limits over two hundred and fifty thousand. You're not protected. 379 00:22:34,359 --> 00:22:38,200 Speaker 2: Banks have something called Interfi, which will essentially spread your 380 00:22:38,240 --> 00:22:41,480 Speaker 2: deposits out over a group of banks, and that's a 381 00:22:41,720 --> 00:22:45,240 Speaker 2: really important service that business owners utilize. There's a lot 382 00:22:45,280 --> 00:22:48,359 Speaker 2: of uninsured money out there that really scares me. 383 00:22:49,200 --> 00:22:52,479 Speaker 3: So let's jump to some advice. If someone wants to 384 00:22:52,520 --> 00:22:58,280 Speaker 3: follow a path like yours, serial entrepreneur, business after business, 385 00:22:58,640 --> 00:22:59,760 Speaker 3: what advice could you give. 386 00:22:59,640 --> 00:23:05,080 Speaker 2: Them get a lobotomy? Well, first of all, if somebody 387 00:23:05,160 --> 00:23:08,280 Speaker 2: really has this in their heart, nothing will stop them. 388 00:23:08,560 --> 00:23:11,600 Speaker 2: Entrepreneurs can't be stopped. What I would encourage them to 389 00:23:11,640 --> 00:23:15,960 Speaker 2: do is to focus on their spreadsheets. Focus on the numbers. 390 00:23:16,359 --> 00:23:21,640 Speaker 2: Ideas are great numbers are where it comes together, kind 391 00:23:21,640 --> 00:23:25,320 Speaker 2: of like the name of your podcast, right, magic is required. 392 00:23:25,640 --> 00:23:31,040 Speaker 2: Without magic, miracles don't happen. But without math, nothing happens. 393 00:23:31,520 --> 00:23:34,200 Speaker 3: If you could go back in time and give your 394 00:23:34,280 --> 00:23:37,960 Speaker 3: eighteen year old self some advice, what would that advice be. 395 00:23:38,480 --> 00:23:41,960 Speaker 2: Get a better CFO. If I had the CFO that 396 00:23:42,080 --> 00:23:45,879 Speaker 2: I have today at my previous companies, I would have 397 00:23:45,920 --> 00:23:49,919 Speaker 2: been much more successful. I've been successful, but my current 398 00:23:50,040 --> 00:23:54,040 Speaker 2: CFO is a rock star at the highest level, and 399 00:23:54,119 --> 00:23:56,560 Speaker 2: I see how important it is. 400 00:23:57,320 --> 00:24:00,639 Speaker 3: We end each episode of Math and Magic with two shoutouts, 401 00:24:00,960 --> 00:24:03,000 Speaker 3: one to the greatest person you know on the math 402 00:24:03,080 --> 00:24:06,119 Speaker 3: side of business, somebody, as you pointed out, who runs 403 00:24:06,160 --> 00:24:10,280 Speaker 3: things by the numbers or data. The other is the inspired, 404 00:24:10,400 --> 00:24:13,400 Speaker 3: creative think or the magic side of the business. Who 405 00:24:13,440 --> 00:24:14,480 Speaker 3: are your two shout outs? 406 00:24:14,840 --> 00:24:17,400 Speaker 2: Well, the math is going to be the CFO I mentioned. 407 00:24:17,720 --> 00:24:22,480 Speaker 2: His name is Chad Sinclair and he's really a wizard 408 00:24:23,000 --> 00:24:26,160 Speaker 2: with math. He's the best I've ever seen in my life, 409 00:24:26,200 --> 00:24:30,119 Speaker 2: So shout out to him on that. On the magic side, 410 00:24:30,160 --> 00:24:32,840 Speaker 2: it would be Steve Jobs. He always said people don't 411 00:24:32,880 --> 00:24:34,639 Speaker 2: know what they want, You have to show them what 412 00:24:34,680 --> 00:24:37,280 Speaker 2: they want, and he really was a magician that could 413 00:24:37,280 --> 00:24:40,040 Speaker 2: pull out of his hat the most amazing products. 414 00:24:40,840 --> 00:24:44,160 Speaker 3: Howard, you have had a remarkable life as a strategist 415 00:24:44,200 --> 00:24:47,880 Speaker 3: and an entrepreneur. Thanks for sharing your lessons and your 416 00:24:47,880 --> 00:24:49,040 Speaker 3: insights with us today. 417 00:24:49,320 --> 00:24:51,320 Speaker 2: Thank you, Bob, really was a pleasure being here with you, 418 00:24:51,440 --> 00:24:53,280 Speaker 2: and thanks to you, and thanks to iHeart. 419 00:24:56,440 --> 00:24:58,560 Speaker 3: Here's a few things I picked up in my conversation 420 00:24:58,680 --> 00:25:03,920 Speaker 3: with Howard. One. Prioritize customer service. Great customer service helps 421 00:25:03,920 --> 00:25:08,119 Speaker 3: your companies stand out. Respect your customers by not making excuses, 422 00:25:08,480 --> 00:25:13,040 Speaker 3: by being honest and transparent, and by directly addressing their issue. 423 00:25:13,200 --> 00:25:15,480 Speaker 3: You'll be surprised how much it will help your reputation, 424 00:25:15,920 --> 00:25:17,719 Speaker 3: your bottom line, and your brand. 425 00:25:18,480 --> 00:25:18,640 Speaker 2: Two. 426 00:25:19,240 --> 00:25:22,920 Speaker 3: Focus on employee wellness vocal sources to making sure your 427 00:25:22,960 --> 00:25:26,400 Speaker 3: team knows your care. It costs money to create good culture, 428 00:25:26,760 --> 00:25:29,159 Speaker 3: but it doesn't cost anything to show your people that 429 00:25:29,200 --> 00:25:32,200 Speaker 3: you care about them. Whether it's a program dedicated to wellness, 430 00:25:32,520 --> 00:25:35,480 Speaker 3: or maybe it's just a thoughtful gesture. Taking that extra 431 00:25:35,600 --> 00:25:39,480 Speaker 3: step can be the backbone of a successful business. Three. 432 00:25:39,720 --> 00:25:42,960 Speaker 3: Your brand reflects your actions. You can work toward building 433 00:25:43,040 --> 00:25:46,159 Speaker 3: the brand you want, but ultimately, your brand is a 434 00:25:46,200 --> 00:25:50,760 Speaker 3: mirror of your company's values and behaviors. Create consistency, show 435 00:25:50,800 --> 00:25:54,200 Speaker 3: you care, and your brand's imprint will be stronger for it. 436 00:26:03,960 --> 00:26:05,399 Speaker 2: That's it for today's episode. 437 00:26:05,600 --> 00:26:07,720 Speaker 1: Thanks so much for listening to Math and Magic, a 438 00:26:07,760 --> 00:26:11,080 Speaker 1: production of iHeartRadio. The show is hosted by Bob Pittman. 439 00:26:11,480 --> 00:26:14,800 Speaker 1: Special Thanks to Sidney Rosenbloom for booking and wrangling our 440 00:26:14,840 --> 00:26:18,879 Speaker 1: wonderful talent, which is no small feat our editor Emily Meronoff, 441 00:26:19,080 --> 00:26:23,600 Speaker 1: our engineers Jessica Crincitch and Bahid Fraser, our executive producers 442 00:26:23,680 --> 00:26:27,280 Speaker 1: Nikki Etoor and Ali Perry, and of course Gail Raoul, 443 00:26:27,560 --> 00:26:30,480 Speaker 1: Eric Angel Noel and everyone who helped bring this show 444 00:26:30,520 --> 00:26:31,119 Speaker 1: to your ears. 445 00:26:32,400 --> 00:26:33,200 Speaker 2: Until next time,