1 00:00:09,390 --> 00:00:12,550 Speaker: Iowa the land of fields, whether it's fields full of corn 2 00:00:12,560 --> 00:00:16,309 Speaker: or fields full of baseball dreams and those fields, they're 3 00:00:16,319 --> 00:00:19,790 Speaker: often full of tractors. The site is so common. Most 4 00:00:19,799 --> 00:00:21,389 Speaker: people don't even notice them 5 00:00:22,069 --> 00:00:25,099 Speaker: until they notice that they're driving with no one at 6 00:00:25,110 --> 00:00:26,120 Speaker: the steering wheel. 7 00:00:27,819 --> 00:00:29,920 Speaker: Sheriff's office. Can I help you? I just saw something 8 00:00:29,930 --> 00:00:34,750 Speaker: a little strange. A tractor out in the cornfield that 9 00:00:34,759 --> 00:00:37,240 Speaker: was driving along by itself. 10 00:00:38,840 --> 00:00:41,380 Speaker: There was nobody on the tractor but it was moving. 11 00:00:41,979 --> 00:00:44,990 Speaker: Could you actually tell there was nobody in it? Yeah, 12 00:00:45,000 --> 00:00:46,989 Speaker: because it's an open cab tractor. 13 00:00:48,270 --> 00:00:51,229 Speaker: It was, there was no one on the seat. I 14 00:00:51,240 --> 00:00:53,159 Speaker: just felt like I should probably let somebody know. I 15 00:00:53,168 --> 00:00:55,009 Speaker: don't know if someone can go out there and just 16 00:00:55,069 --> 00:01:01,000 Speaker: check the seat. Ok. We'll have somebody check it out. Ok, 17 00:01:01,009 --> 00:01:02,250 Speaker: thank you. All right, thanks. 18 00:01:03,770 --> 00:01:06,080 Speaker: That's just one of many times that Craig Rupp had 19 00:01:06,089 --> 00:01:09,449 Speaker: 911 called on him and not because he's going around 20 00:01:09,459 --> 00:01:13,400 Speaker: pushing people out of tractors, but because his company Sabato 21 00:01:13,430 --> 00:01:16,360 Speaker: is changing the way America farms forever. 22 00:01:17,339 --> 00:01:21,000 Speaker: I knew agriculture. I knew machines. I wanted to disrupt 23 00:01:21,010 --> 00:01:24,019 Speaker: the industry. I want to send a message that autonomy 24 00:01:24,029 --> 00:01:27,730 Speaker: is coming in agriculture. That's why I think the next 25 00:01:27,739 --> 00:01:30,680 Speaker: generation tractors are already sitting in your machine shed. 26 00:01:37,680 --> 00:01:41,269 Speaker: Welcome to The Unshakeables from Chase For Business and Ruby 27 00:01:41,279 --> 00:01:46,000 Speaker: Studio from iHeartMedia. I'm Ben Walter CEO of Chase for Business, 28 00:01:46,430 --> 00:01:50,489 Speaker: on The Unshakeables We're sharing the daring moments of small business owners 29 00:01:50,500 --> 00:01:53,580 Speaker: facing their crisis points and telling the stories of how 30 00:01:53,589 --> 00:01:56,610 Speaker: they got through it. If you're new to the show. Welcome, 31 00:01:57,040 --> 00:02:00,989 Speaker: if you've been listening, welcome back over the next few weeks, 32 00:02:01,050 --> 00:02:04,540 Speaker: we'll be highlighting exceptional small businesses from across the country. 33 00:02:04,900 --> 00:02:07,800 Speaker: We'll also be hearing from experts in those markets who 34 00:02:07,809 --> 00:02:10,399 Speaker: can tell us what the business and communities supporting them 35 00:02:10,410 --> 00:02:13,788 Speaker: mean for America. But this week, we're firmly in the 36 00:02:13,800 --> 00:02:16,889 Speaker: Hawkeye State and we have two great guests joining us today, 37 00:02:17,380 --> 00:02:19,720 Speaker: Brian Lamb and Sachin Sehgal. 38 00:02:21,990 --> 00:02:25,168 Speaker: You know, the more we learned about Sabanto and Craig's business, 39 00:02:25,460 --> 00:02:27,910 Speaker: the more it made sense to have those intimately familiar 40 00:02:27,919 --> 00:02:30,350 Speaker: with the local market. Come on and chat with us. 41 00:02:30,679 --> 00:02:34,250 Speaker: Sachin is the founder of elevate digital marketing, an agency 42 00:02:34,258 --> 00:02:38,250 Speaker: based in Des Moines, Iowa Satin. Welcome to the unshakeable. 43 00:02:38,258 --> 00:02:40,270 Speaker: Thank you very much, Ben. It's great to meet you. 44 00:02:40,669 --> 00:02:43,380 Speaker: So I really love Iowa. I grew up here. I 45 00:02:43,389 --> 00:02:46,509 Speaker: have a small business here and I really love it 46 00:02:46,520 --> 00:02:48,009 Speaker: as a place for innovation. 47 00:02:48,339 --> 00:02:50,520 Speaker: I know most people picture the coasts when they think 48 00:02:50,529 --> 00:02:53,250 Speaker: about A I and tech, but there's so much happening 49 00:02:53,258 --> 00:02:56,399 Speaker: in the Midwest that I'm excited to show off. All right, 50 00:02:56,410 --> 00:03:00,199 Speaker: let's get into the show. This is Sabanto Agriculture from 51 00:03:00,210 --> 00:03:01,199 Speaker: Ames Iowa. 52 00:03:05,419 --> 00:03:07,710 Speaker: I was fortunate enough to spend some time in Iowa 53 00:03:07,720 --> 00:03:10,479 Speaker: this summer. What really stood out to me is just 54 00:03:10,490 --> 00:03:14,079 Speaker: how much Iowans love Iowa. I talked to some terrific 55 00:03:14,089 --> 00:03:17,059 Speaker: people and it's amazing how people all over Iowa seem 56 00:03:17,070 --> 00:03:21,600 Speaker: to have this real emotional and almost physical connection to agriculture. It, 57 00:03:21,610 --> 00:03:23,880 Speaker: it's just a way of life in Iowa. So as 58 00:03:23,889 --> 00:03:26,160 Speaker: soon as I met Craig, there was one question I 59 00:03:26,169 --> 00:03:27,678 Speaker: had to ask immediately. 60 00:03:28,529 --> 00:03:31,289 Speaker: Craig, I believe you grew up on a farm. Is 61 00:03:31,300 --> 00:03:34,579 Speaker: that right? I most certainly did. I grew up on 62 00:03:34,589 --> 00:03:38,460 Speaker: a farm in northwest Iowa. A little town called Cherokee. 63 00:03:38,470 --> 00:03:42,960 Speaker: It's about 5000 people now and it was corn, soybeans, 64 00:03:42,970 --> 00:03:45,669 Speaker: hogs and cattle. What was that like growing up in 65 00:03:45,679 --> 00:03:47,110 Speaker: an agricultural community? 66 00:03:50,380 --> 00:03:53,789 Speaker: You know, it, it felt normal while I was there. 67 00:03:53,929 --> 00:03:56,630 Speaker: I guess that's what you knew. Right. That was your life. Yeah. Yeah. 68 00:03:56,639 --> 00:03:59,690 Speaker: And everyone I knew had something to do with farming 69 00:03:59,990 --> 00:04:03,059 Speaker: chores in the morning chores in the afternoon when you 70 00:04:03,070 --> 00:04:05,529 Speaker: got home from school, you know, you had to feed 71 00:04:05,539 --> 00:04:07,919 Speaker: the cattle, feed the hogs, you know, I just assumed 72 00:04:07,929 --> 00:04:12,169 Speaker: that this was a part of growing up outside working. 73 00:04:12,360 --> 00:04:14,649 Speaker: So when you were growing up in this rural community 74 00:04:14,660 --> 00:04:15,440 Speaker: on a farm, 75 00:04:15,839 --> 00:04:18,640 Speaker: did you imagine someday you would own a business No, I, I, 76 00:04:18,649 --> 00:04:22,099 Speaker: it was never really a plan for me. I never 77 00:04:22,109 --> 00:04:25,458 Speaker: would have imagined that I would ever start a company. 78 00:04:25,890 --> 00:04:28,190 Speaker: The little town I grew up in, had a radio 79 00:04:28,200 --> 00:04:32,118 Speaker: shack and then by God they had books and you 80 00:04:32,130 --> 00:04:34,980 Speaker: could learn about electronics. It was like the internet for 81 00:04:34,988 --> 00:04:36,970 Speaker: me back in the early eighties, 82 00:04:39,928 --> 00:04:43,850 Speaker: 1984 when I graduated high school and went to college 83 00:04:43,859 --> 00:04:47,190 Speaker: to become an electrical engineer. I, I was convinced that 84 00:04:47,200 --> 00:04:49,409 Speaker: was the last time I would ever set my foot 85 00:04:49,420 --> 00:04:50,428 Speaker: on a farm again. 86 00:04:51,890 --> 00:04:55,000 Speaker: Craig followed that engineering track working at Motorola in the 87 00:04:55,010 --> 00:04:58,890 Speaker: nineties where he did hardware development for mobile phones. Around 88 00:04:58,899 --> 00:05:04,118 Speaker: 1995 Craig and some fellow Motorolans saw an opportunity, mobile 89 00:05:04,130 --> 00:05:07,980 Speaker: and cellular devices were taking off. We had decided that 90 00:05:07,988 --> 00:05:10,959 Speaker: we're going to start a consulting company we would meet 91 00:05:10,970 --> 00:05:14,779 Speaker: in the mornings at a local restaurant and then we 92 00:05:14,790 --> 00:05:17,390 Speaker: kind of did the old pinky promise that if we 93 00:05:17,399 --> 00:05:19,880 Speaker: could get $30,000 in contracts, then 94 00:05:20,220 --> 00:05:22,519 Speaker: that would hold us out to the end of the year. 95 00:05:22,529 --> 00:05:26,359 Speaker: And it turns out about two weeks later, we had 96 00:05:26,369 --> 00:05:30,799 Speaker: $30,000 in contracts. So we gave her two weeks notice 97 00:05:30,809 --> 00:05:34,479 Speaker: and went out and started what was called Alliance Technologies Group. 98 00:05:35,299 --> 00:05:40,260 Speaker: Craig kept chasing his curiosity working at John Deere apple, blackberry, 99 00:05:40,269 --> 00:05:44,320 Speaker: Nokia Samsung, and a few other household names. And while 100 00:05:44,329 --> 00:05:47,440 Speaker: he never imagined he'd be an entrepreneur once he started 101 00:05:47,450 --> 00:05:51,630 Speaker: Alliance Technologies Group. He couldn't stop you. You have started 102 00:05:51,640 --> 00:05:54,959 Speaker: how many companies? Uh This is my sixth. 103 00:05:55,619 --> 00:05:58,779 Speaker: So the fifth company he started was called 640 Labs. 104 00:05:59,019 --> 00:06:01,808 Speaker: It combined his work at John Deere on internal cab 105 00:06:01,820 --> 00:06:05,140 Speaker: displays with his work on the Apple ipads cloud data 106 00:06:05,149 --> 00:06:06,049 Speaker: storage system. 107 00:06:07,049 --> 00:06:10,290 Speaker: My brother still farms. I was at his farm. I 108 00:06:10,299 --> 00:06:12,660 Speaker: was sitting in one of his tractors that he just 109 00:06:12,670 --> 00:06:16,549 Speaker: bought and I saw this little port, all the engine 110 00:06:16,559 --> 00:06:19,988 Speaker: data is on this port. And then my friend and I, 111 00:06:20,000 --> 00:06:23,500 Speaker: we started this company and the whole idea was we're 112 00:06:23,510 --> 00:06:26,178 Speaker: going to take data off of that port or off 113 00:06:26,190 --> 00:06:31,200 Speaker: of these vehicles. Agriculture data into the ipad, ipad up 114 00:06:31,209 --> 00:06:34,420 Speaker: into the cloud. So it was a very inexpensive way 115 00:06:34,428 --> 00:06:35,660 Speaker: of collecting data. 116 00:06:36,130 --> 00:06:39,779 Speaker: 18 months later, we got acquired by Monsanto 117 00:06:40,850 --> 00:06:44,329 Speaker: at Monsanto. He was back in regular conversation with farmers. 118 00:06:45,329 --> 00:06:48,489 Speaker: I had a unique skill set. I knew farmers, I knew, 119 00:06:48,500 --> 00:06:51,190 Speaker: you know, what made them tick. I can talk with 120 00:06:51,200 --> 00:06:56,859 Speaker: them about planting corn soybeans. And you know, I'd always 121 00:06:56,869 --> 00:06:59,859 Speaker: ask the question, what keeps you up at night? And 122 00:06:59,869 --> 00:07:02,320 Speaker: it was always labor. You know, it was the cost 123 00:07:02,329 --> 00:07:04,229 Speaker: of labor. It was the lack of labor. 124 00:07:05,238 --> 00:07:08,260 Speaker: The availability of farm labor has changed over the years. 125 00:07:08,450 --> 00:07:11,880 Speaker: The average age of the American farmer is 59 and 126 00:07:11,890 --> 00:07:14,320 Speaker: farm families are much smaller than they used to be. 127 00:07:15,339 --> 00:07:21,670 Speaker: I have 57 1st cousins and both my parents had 128 00:07:21,679 --> 00:07:26,200 Speaker: double digit brothers and sisters and all of them had 129 00:07:26,209 --> 00:07:30,279 Speaker: a lot of Children and now just you have four kids. Now, 130 00:07:30,290 --> 00:07:34,299 Speaker: that's a big family. I thought, you know, autonomy is 131 00:07:34,309 --> 00:07:35,320 Speaker: the answer for it. 132 00:07:38,940 --> 00:07:40,570 Speaker: Ok. So this is where I want to bring Sachin 133 00:07:40,730 --> 00:07:43,450 Speaker: back in- Sachin, You've lived in Iowa your entire adult 134 00:07:43,459 --> 00:07:46,160 Speaker: life and it seems like you have no plans to leave. So, 135 00:07:46,170 --> 00:07:48,480 Speaker: what did you think about Craig's departure? He said he 136 00:07:48,489 --> 00:07:51,519 Speaker: never wanted to step foot on a farm again. You know, 137 00:07:51,529 --> 00:07:54,679 Speaker: it's interesting. I bet many people had the same ideas, Craig, 138 00:07:54,839 --> 00:07:56,950 Speaker: but there's a lot of people moving back to the 139 00:07:56,959 --> 00:07:59,880 Speaker: area post COVID because they kind of realized that Des 140 00:07:59,890 --> 00:08:02,209 Speaker: Moines has quite a bit to offer in terms of 141 00:08:02,220 --> 00:08:06,339 Speaker: innovation and entrepreneurship. So it's kind of nice to see 142 00:08:06,350 --> 00:08:07,839 Speaker: a boom coming back in. 143 00:08:08,299 --> 00:08:10,250 Speaker: We've heard from Craig about the path he took and 144 00:08:10,260 --> 00:08:12,600 Speaker: his background leading him to a place like Sabanto. But 145 00:08:12,609 --> 00:08:14,480 Speaker: what's striking to me is that this is a guy 146 00:08:14,489 --> 00:08:16,149 Speaker: who said he never wanted to be back in Iowa, 147 00:08:16,160 --> 00:08:18,339 Speaker: never be back on a farm. And now he's created 148 00:08:18,350 --> 00:08:21,079 Speaker: an agriculture company and is farming full time. I mean, 149 00:08:21,089 --> 00:08:21,920 Speaker: what do you make of that? 150 00:08:22,399 --> 00:08:24,809 Speaker: You know, we've seen a lot of companies in Iowa 151 00:08:24,820 --> 00:08:27,660 Speaker: and Des Moines specifically come out of the agricultural space 152 00:08:27,869 --> 00:08:30,850 Speaker: and a lot of companies providing new innovative solutions to 153 00:08:30,859 --> 00:08:35,590 Speaker: older problems. We've seen recycling companies doing things like plastic recycling. 154 00:08:35,599 --> 00:08:40,468 Speaker: We've seen fertilization companies with different types of fertilization techniques 155 00:08:40,479 --> 00:08:44,299 Speaker: and planters with different planting companies. So Craig is really 156 00:08:44,309 --> 00:08:47,809 Speaker: pioneering his way in that field on the agricultural side 157 00:08:47,820 --> 00:08:50,339 Speaker: of things, using A I and automation to bridge that 158 00:08:50,349 --> 00:08:51,659 Speaker: manual to tech divide, 159 00:08:52,289 --> 00:08:54,750 Speaker: you know, so much evidence of innovation in that sector. So, 160 00:08:54,760 --> 00:08:56,479 Speaker: but I do want to talk about A I for 161 00:08:56,489 --> 00:08:58,349 Speaker: a second because it's everywhere you can't pick up the 162 00:08:58,359 --> 00:09:01,489 Speaker: paper without reading about it. Assuming you actually pick up 163 00:09:01,500 --> 00:09:03,988 Speaker: a paper anymore. But that's a different issue and it's changing, 164 00:09:04,000 --> 00:09:05,820 Speaker: people are talking about it, changing the way we all 165 00:09:05,830 --> 00:09:08,299 Speaker: do business. So do you use A I in your work? 166 00:09:08,739 --> 00:09:11,000 Speaker: We use A I all the time, we use multiple 167 00:09:11,010 --> 00:09:13,689 Speaker: different tools. It's kind of a, a common theme that 168 00:09:13,700 --> 00:09:15,979 Speaker: we're seeing with a lot of businesses actually using A 169 00:09:15,989 --> 00:09:19,250 Speaker: I in different ways to, to bridge that gap between 170 00:09:19,260 --> 00:09:22,189 Speaker: maybe manual processes that they've been doing in the past 171 00:09:22,349 --> 00:09:26,530 Speaker: and completely digitally native processes that they're moving in towards. 172 00:09:26,619 --> 00:09:29,909 Speaker: Even if that's just an email follow up automation when 173 00:09:29,919 --> 00:09:32,719 Speaker: a client checks out or just finding A I chat 174 00:09:32,729 --> 00:09:35,719 Speaker: bots or even call bots that uh someone can call 175 00:09:35,729 --> 00:09:36,530 Speaker: and interact with. 176 00:09:36,809 --> 00:09:38,599 Speaker: Yeah, automation and A I are going to be a 177 00:09:38,609 --> 00:09:41,330 Speaker: huge help for small businesses. One of my clients in 178 00:09:41,340 --> 00:09:44,789 Speaker: particular similar to Craig, their business leads with A I 179 00:09:44,799 --> 00:09:47,859 Speaker: as a solution. They're a telecom provider. And one of 180 00:09:47,869 --> 00:09:50,150 Speaker: the things they provide is an A I detection of 181 00:09:50,159 --> 00:09:56,179 Speaker: safety equipment for schools, organizations, municipalities. So, you know, when 182 00:09:56,190 --> 00:09:58,869 Speaker: you see someone with a fire hazard or, or some 183 00:09:58,880 --> 00:10:01,689 Speaker: sort of uh threat to, you know, the safety of 184 00:10:01,700 --> 00:10:02,349 Speaker: a building, 185 00:10:02,630 --> 00:10:07,199 Speaker: this company is using A I to basically dispatch emergency services. 186 00:10:07,820 --> 00:10:09,969 Speaker: So, Craig's goal with Sabanto is to make up for the 187 00:10:09,979 --> 00:10:12,020 Speaker: lack of human labor and farming where he sees a 188 00:10:12,030 --> 00:10:14,199 Speaker: shortage and that could stoke a lot of people's fear 189 00:10:14,210 --> 00:10:16,650 Speaker: about A I replacing human jobs. What would you say 190 00:10:16,659 --> 00:10:19,130 Speaker: to them? There may be rules that are just moved 191 00:10:19,140 --> 00:10:21,159 Speaker: around in the company. But 192 00:10:21,770 --> 00:10:23,909 Speaker: at the end of the day, you definitely need a 193 00:10:23,919 --> 00:10:27,000 Speaker: person before you can just push A I content out 194 00:10:27,010 --> 00:10:30,659 Speaker: there unless it's pretty much just gathering information. So we 195 00:10:30,669 --> 00:10:32,239 Speaker: see it on our end a lot where the A 196 00:10:32,250 --> 00:10:34,049 Speaker: I will get you really close to the end result 197 00:10:34,059 --> 00:10:35,880 Speaker: that you're looking for. But you still need to do 198 00:10:35,890 --> 00:10:38,500 Speaker: a little bit of manual input. It does a great 199 00:10:38,510 --> 00:10:41,939 Speaker: job with graphics design, things like that as well, but 200 00:10:41,950 --> 00:10:44,090 Speaker: it just still needs a human touch at the end 201 00:10:44,099 --> 00:10:45,579 Speaker: of it to get it ready for production. 202 00:10:46,090 --> 00:10:48,390 Speaker: I tend to agree with you, Sachin. I think we've 203 00:10:48,400 --> 00:10:51,599 Speaker: had other technological revolutions before and there's always been the 204 00:10:51,609 --> 00:10:54,460 Speaker: threat of job eliminations and there always have been some, 205 00:10:54,469 --> 00:10:57,069 Speaker: but it's, they've always created more jobs than they've eliminated. 206 00:10:57,080 --> 00:10:58,760 Speaker: They've just been different. And I think this time will 207 00:10:58,770 --> 00:10:59,510 Speaker: be no different. 208 00:11:00,380 --> 00:11:04,039 Speaker: So, back to Craig, he like Satin knew the problem. 209 00:11:04,510 --> 00:11:08,419 Speaker: Not enough help on the farm and the solution, it's autonomy. 210 00:11:08,859 --> 00:11:10,679 Speaker: If this was a math test, this would be the 211 00:11:10,690 --> 00:11:12,949 Speaker: part where Craig would have to show his work. I'll 212 00:11:12,960 --> 00:11:14,429 Speaker: let him walk you through the steps. 213 00:11:15,380 --> 00:11:19,390 Speaker: So I've written software, done hardware. I have started companies 214 00:11:19,400 --> 00:11:22,659 Speaker: in the past. I knew farmers, I knew what made 215 00:11:22,669 --> 00:11:26,640 Speaker: them tick. And I used to work a lot automating 216 00:11:26,650 --> 00:11:30,159 Speaker: manufacturing plants. If there's anyone that can do this, I 217 00:11:30,169 --> 00:11:30,989 Speaker: can do this. 218 00:11:33,150 --> 00:11:36,940 Speaker: In 2018, I started the company. I went out and 219 00:11:36,950 --> 00:11:42,150 Speaker: leased a 4220 AJ CB tractor and I went out 220 00:11:42,159 --> 00:11:45,409 Speaker: and bought an 18 year old 20 inch planter and 221 00:11:45,419 --> 00:11:48,669 Speaker: I got a CD L that's a commercial driver's license, 222 00:11:48,679 --> 00:11:50,950 Speaker: by the way, Craig got it so he could drive 223 00:11:50,960 --> 00:11:54,059 Speaker: the semi truck to haul his tractor to farms across America. 224 00:11:55,039 --> 00:11:59,380 Speaker: And I spent the winter writing software. I promise I'm tracking. 225 00:11:59,390 --> 00:12:01,169 Speaker: At least I know what a planter is when you 226 00:12:01,179 --> 00:12:03,719 Speaker: start telling me what kind of planter. I confess, I've 227 00:12:03,729 --> 00:12:05,539 Speaker: lost the plot but to anyone who's worked on a farm, 228 00:12:05,549 --> 00:12:09,250 Speaker: I'm assuming they know. Yeah, it's a standard 18 year 229 00:12:09,260 --> 00:12:13,390 Speaker: old 20 inch and we're planting soybeans farmers kind of 230 00:12:13,400 --> 00:12:13,750 Speaker: an uh, 231 00:12:14,080 --> 00:12:18,590 Speaker: a group of people. They, you know, they won't trust 232 00:12:18,599 --> 00:12:21,140 Speaker: anyone to plant corn. The only thing I know about 233 00:12:21,150 --> 00:12:22,750 Speaker: corn is it's supposed to be thigh high by the 234 00:12:22,760 --> 00:12:25,718 Speaker: fourth of July. Uh, yeah, that, that was, you know, 235 00:12:25,729 --> 00:12:28,780 Speaker: back in the thirties or so. But now, you know, 236 00:12:28,789 --> 00:12:32,210 Speaker: now it's typically shoulder high by the fourth of July 237 00:12:32,619 --> 00:12:36,270 Speaker: with corn off the table. Craig went after soybeans, he 238 00:12:36,280 --> 00:12:38,640 Speaker: set his sights on having a minimum viable product to 239 00:12:38,650 --> 00:12:40,700 Speaker: test in the spring of 2019. 240 00:12:41,270 --> 00:12:43,750 Speaker: He spoke to a few people about testing the tractor 241 00:12:43,760 --> 00:12:44,840 Speaker: out on their fields. 242 00:12:45,760 --> 00:12:51,039 Speaker: Agriculture has two degrees of separation. So I swear to God, 243 00:12:51,049 --> 00:12:53,419 Speaker: I can get to any farmer in the US through 244 00:12:53,429 --> 00:12:56,900 Speaker: two people. If you're keeping score, that's four degrees less 245 00:12:56,909 --> 00:12:59,819 Speaker: than Kevin Bacon would need to get to someone. Yeah, 246 00:13:00,650 --> 00:13:02,260 Speaker: I've met him, by the way. 247 00:13:03,330 --> 00:13:06,510 Speaker: Word of Craig's wild autonomous planter spread quickly 248 00:13:07,400 --> 00:13:10,000 Speaker: after about two weeks of word on the street that 249 00:13:10,010 --> 00:13:13,919 Speaker: some crazy guy is gonna stop by with a autonomous 250 00:13:13,929 --> 00:13:19,229 Speaker: tractor and planter and autonomously plant their crops. They were 251 00:13:19,239 --> 00:13:24,218 Speaker: lined up. Craig launched Sabanto on May 3rd 2019. He 252 00:13:24,229 --> 00:13:26,909 Speaker: didn't choose that date because it was some momentous occasion. 253 00:13:27,260 --> 00:13:29,979 Speaker: It was once again all up to the farmers. 254 00:13:30,919 --> 00:13:35,330 Speaker: It was the farmer that told me early May we're 255 00:13:35,340 --> 00:13:38,150 Speaker: going to be planting so you better have everything together. 256 00:13:38,710 --> 00:13:41,098 Speaker: Craig didn't, but he launched anyway, 257 00:13:42,159 --> 00:13:45,559 Speaker: I slept in the uh sleeper of that Peter bilt 258 00:13:46,239 --> 00:13:48,780 Speaker: and there were some cold nights because I didn't have 259 00:13:48,789 --> 00:13:51,460 Speaker: a heater in it, but it was a learning experience. 260 00:13:51,669 --> 00:13:54,780 Speaker: The software was nowhere close to being product. I it 261 00:13:54,789 --> 00:13:58,179 Speaker: was more of a proof of concept. Can this thing run? 262 00:13:58,469 --> 00:14:01,400 Speaker: Craig drove the semi and the tractor planting beans across 263 00:14:01,409 --> 00:14:02,140 Speaker: the Midwest. 264 00:14:02,530 --> 00:14:04,900 Speaker: It was a very rainy spring. So on days he 265 00:14:04,909 --> 00:14:07,000 Speaker: got rained out of planting. He was flying out to 266 00:14:07,010 --> 00:14:10,000 Speaker: California to meet with V CS. Raising money from V 267 00:14:10,010 --> 00:14:12,280 Speaker: CS isn't always easy, but Craig had a good track 268 00:14:12,289 --> 00:14:13,270 Speaker: record to back him up. 269 00:14:14,250 --> 00:14:18,699 Speaker: Everyone saw 640 labs. Kind of an interesting little company 270 00:14:18,710 --> 00:14:23,590 Speaker: that got swallowed up quickly by Monsanto and I was 271 00:14:23,599 --> 00:14:26,309 Speaker: a co founder of that company. And I think that 272 00:14:26,320 --> 00:14:29,119 Speaker: gave me a lot of credibility when getting in front 273 00:14:29,130 --> 00:14:32,200 Speaker: of V CS. Lo and behold, I, I got a 274 00:14:32,210 --> 00:14:35,090 Speaker: term sheet and I closed on a funding round. Craig 275 00:14:35,099 --> 00:14:37,679 Speaker: had squeaked through that first season planting, but if he 276 00:14:37,690 --> 00:14:40,580 Speaker: wanted to make Sabanto succeed, he needed a team. 277 00:14:42,770 --> 00:14:47,700 Speaker: So I went back to Chicago and I convinced five 278 00:14:47,710 --> 00:14:51,609 Speaker: people to leave their perfectly paying job and join me 279 00:14:51,619 --> 00:14:55,950 Speaker: in this quest to take autonomy into agriculture. Did you 280 00:14:55,960 --> 00:14:57,979 Speaker: think after that first season, did you think, you know, 281 00:14:57,989 --> 00:14:59,940 Speaker: I've got something here like it might have been hard 282 00:14:59,950 --> 00:15:01,929 Speaker: work and it might have been, it might have been difficult, 283 00:15:01,940 --> 00:15:04,700 Speaker: but I've, I've got something or you weren't sure I 284 00:15:04,710 --> 00:15:08,299 Speaker: knew all the problems I ran into were solvable 285 00:15:09,380 --> 00:15:13,849 Speaker: and, you know, II I knew I couldn't do it myself. 286 00:15:14,400 --> 00:15:17,150 Speaker: I mean, it was all off the shelf components. It was, 287 00:15:17,159 --> 00:15:20,690 Speaker: you know, a big box sitting in the tractor wires 288 00:15:20,700 --> 00:15:24,130 Speaker: going all over. And the software there was, it was 289 00:15:24,140 --> 00:15:27,679 Speaker: literally command line software. There's still a hell of a 290 00:15:27,690 --> 00:15:30,070 Speaker: lot of development that needed to be done on it. Well, 291 00:15:30,080 --> 00:15:32,109 Speaker: someone who remembers the late seventies and early eighties, I 292 00:15:32,119 --> 00:15:34,929 Speaker: learned to run software on command line. But I think 293 00:15:34,940 --> 00:15:36,919 Speaker: uh I think today that doesn't meet the hurdle, does it? 294 00:15:37,239 --> 00:15:38,190 Speaker: Uh No. 295 00:15:39,469 --> 00:15:41,549 Speaker: So then you got some funding. How much did you raise? 296 00:15:41,719 --> 00:15:45,070 Speaker: $2 million? Ok. So you get some funding, I assume, 297 00:15:45,080 --> 00:15:47,809 Speaker: then you start working on truly products, this and making 298 00:15:47,820 --> 00:15:51,380 Speaker: it sort of fit for purpose and building it out properly. 299 00:15:51,390 --> 00:15:52,409 Speaker: Is that what came next? 300 00:15:53,210 --> 00:15:58,460 Speaker: Yeah, it wasn't necessarily products and it was more of 301 00:15:58,469 --> 00:16:02,900 Speaker: take it to the next level, get it to work reliably. 302 00:16:03,419 --> 00:16:06,760 Speaker: In early fall 2019, 1 of Craig's farmer friends reached 303 00:16:06,770 --> 00:16:09,900 Speaker: out and said that he had 350 acres of land 304 00:16:09,909 --> 00:16:11,929 Speaker: that needed to be seeded with a cover crop for 305 00:16:11,940 --> 00:16:15,659 Speaker: the winter planted after the fall harvest, cover crops, help 306 00:16:15,669 --> 00:16:18,919 Speaker: revitalize the soil and prep it for spring planting again. 307 00:16:19,239 --> 00:16:20,780 Speaker: I thought, well, this is perfect. 308 00:16:21,210 --> 00:16:23,869 Speaker: They were finally able to get started in mid November. 309 00:16:24,289 --> 00:16:27,780 Speaker: Craig experimented with smaller horsepower tractors with his software to 310 00:16:27,789 --> 00:16:29,349 Speaker: see if that helped reliability 311 00:16:30,500 --> 00:16:34,770 Speaker: horsepower equals work divided by time, what autonomy does is 312 00:16:34,780 --> 00:16:39,520 Speaker: it increases time and time is inversely proportional to horsepower. 313 00:16:39,619 --> 00:16:42,229 Speaker: So you increase time, you decrease horsepower. 314 00:16:43,919 --> 00:16:46,719 Speaker: They tested it out on smaller fields before they went 315 00:16:46,729 --> 00:16:48,500 Speaker: to the 350 acre plot. 316 00:16:49,409 --> 00:16:52,510 Speaker: We had an 80 acre field and 6 a.m. in 317 00:16:52,520 --> 00:16:55,830 Speaker: the morning. We're out there, let's get going on this. 318 00:16:55,840 --> 00:16:57,809 Speaker: We should be able to get this done by uh 319 00:16:57,820 --> 00:17:02,239 Speaker: 23 o'clock. Right, We left the field at right around 320 00:17:02,250 --> 00:17:03,070 Speaker: 2 a.m. 321 00:17:03,989 --> 00:17:07,180 Speaker: and we had only covered about 10 acres 322 00:17:08,630 --> 00:17:12,729 Speaker: this time, we actually practiced before we got there and 323 00:17:12,739 --> 00:17:16,079 Speaker: everything's working fine and we get to the field and 324 00:17:16,089 --> 00:17:20,399 Speaker: nothing is working. The planter won't plant and the engineers 325 00:17:20,410 --> 00:17:24,050 Speaker: are working feverishly trying to fix it and between the 326 00:17:24,060 --> 00:17:28,540 Speaker: path planning, controlling the stamp thing, making sure it goes straight, 327 00:17:28,550 --> 00:17:32,630 Speaker: making sure gps is working. It was really bad. And 328 00:17:32,859 --> 00:17:34,250 Speaker: the six of us 329 00:17:34,709 --> 00:17:39,899 Speaker: went back that night and I know everyone was absolutely frustrated. 330 00:17:39,910 --> 00:17:42,479 Speaker: I remember going to bed at around two o'clock and 331 00:17:42,660 --> 00:17:46,569 Speaker: waking up at four o'clock and thinking to myself, what 332 00:17:46,579 --> 00:17:49,010 Speaker: the hell did I get myself into? We hear that 333 00:17:49,020 --> 00:17:49,739 Speaker: phrase a lot 334 00:17:51,930 --> 00:17:55,250 Speaker: nature as we know runs on its own schedule. Mid 335 00:17:55,260 --> 00:17:58,319 Speaker: November rolled around and it was time to plant 350 336 00:17:58,329 --> 00:18:00,500 Speaker: acres of cover crop, whether Craig and his team were 337 00:18:00,510 --> 00:18:03,479 Speaker: ready to or not. They took their tractors out to 338 00:18:03,489 --> 00:18:06,089 Speaker: rural Illinois to the farm and set up their mobile 339 00:18:06,099 --> 00:18:08,099 Speaker: lab in the tent by the side of the field. 340 00:18:09,150 --> 00:18:12,500 Speaker: You know, 300 is a very large number when you're 341 00:18:12,510 --> 00:18:16,040 Speaker: 10 ft wide and, you know, going five mile an hour. 342 00:18:16,050 --> 00:18:18,979 Speaker: So we're doing five acres an hour. And if you think, oh, 343 00:18:18,989 --> 00:18:21,750 Speaker: we'll just run it 24 hours and, you know, it 344 00:18:21,760 --> 00:18:23,079 Speaker: will be done in three days. 345 00:18:24,530 --> 00:18:27,619 Speaker: The guys were laughing, they still laugh about just sitting 346 00:18:27,630 --> 00:18:31,060 Speaker: in this little tent in the, in the late afternoon, 347 00:18:31,069 --> 00:18:34,449 Speaker: about four or five o'clock, it just started snowing and 348 00:18:34,459 --> 00:18:35,910 Speaker: then by, 349 00:18:37,250 --> 00:18:40,649 Speaker: oh, I'd say midnight one o'clock, uh the wind kicked 350 00:18:40,660 --> 00:18:45,170 Speaker: up and it started blizzard if you can imagine just 351 00:18:45,180 --> 00:18:47,589 Speaker: the blowing wind. And then the six of us sitting 352 00:18:47,599 --> 00:18:51,780 Speaker: in this little tent tractor out there still working. Mind you. 353 00:18:52,079 --> 00:18:55,310 Speaker: And there's someone sitting out on the tractor and we 354 00:18:55,319 --> 00:18:57,369 Speaker: would take shifts on who had to sit out on 355 00:18:57,380 --> 00:19:01,439 Speaker: the tractor. We had snow mobile suits and insulated coveralls 356 00:19:01,449 --> 00:19:04,150 Speaker: and whatnot. But someone had to be the poor bastard 357 00:19:04,160 --> 00:19:05,910 Speaker: who had to go out and sit on the tractor 358 00:19:06,140 --> 00:19:09,160 Speaker: for the next hour or two because we didn't have 359 00:19:09,170 --> 00:19:13,540 Speaker: absolute control of the tractor. There was some functionality missing. 360 00:19:13,739 --> 00:19:16,040 Speaker: If it goes over a little hill, we would lose 361 00:19:16,050 --> 00:19:18,719 Speaker: communications with it. And then the person would have to 362 00:19:18,729 --> 00:19:22,250 Speaker: do it manually park the tractor over here and then 363 00:19:22,260 --> 00:19:24,198 Speaker: let's see if we can get a path plan made. 364 00:19:24,209 --> 00:19:27,319 Speaker: And for one reason or another, we were off by 365 00:19:27,329 --> 00:19:32,000 Speaker: 2 ft to the left. It was, it was pure hell. 366 00:19:32,020 --> 00:19:35,079 Speaker: And this wasn't just one day. This was over multiple days. 367 00:19:37,439 --> 00:19:40,910 Speaker: I was concerned that some of the guys would not 368 00:19:40,920 --> 00:19:45,958 Speaker: come back the next, next time because this is perhaps 369 00:19:45,969 --> 00:19:49,020 Speaker: the craziest thing they've ever done. Oh, and by the way, 370 00:19:49,150 --> 00:19:51,500 Speaker: all six of them were staying in the farmer's basement. 371 00:19:51,510 --> 00:19:54,708 Speaker: During all of this, two of us got a bed 372 00:19:54,719 --> 00:19:57,810 Speaker: and then the other four of us were sleeping on 373 00:19:57,819 --> 00:20:01,920 Speaker: the floor. The other thing to add insult to injury, 374 00:20:02,109 --> 00:20:04,979 Speaker: the shower, the hot water didn't work on the shower. 375 00:20:05,250 --> 00:20:07,189 Speaker: You know, we didn't want to let the farmer know 376 00:20:07,199 --> 00:20:10,569 Speaker: because he's out doing field work and I don't want 377 00:20:10,579 --> 00:20:13,819 Speaker: to bother him. So we didn't say anything about it. 378 00:20:13,829 --> 00:20:16,429 Speaker: But then we were taking cold showers and living in 379 00:20:16,439 --> 00:20:18,920 Speaker: a basement and then trying to, uh trying to get 380 00:20:18,930 --> 00:20:22,010 Speaker: this damn thing to work in the end, the 350 381 00:20:22,030 --> 00:20:24,839 Speaker: acre field they thought would take three days. It took 382 00:20:24,849 --> 00:20:25,589 Speaker: three weeks. 383 00:20:26,589 --> 00:20:29,469 Speaker: We felt defeated. There was a lot of fear, uncertainty 384 00:20:29,479 --> 00:20:30,170 Speaker: and doubt. 385 00:20:31,079 --> 00:20:34,819 Speaker: I'm sure everyone in the company had reservations about. Is 386 00:20:34,829 --> 00:20:37,680 Speaker: this going to work? Is this going to get better? 387 00:20:37,930 --> 00:20:40,140 Speaker: Like why am I doing this? Did you think about 388 00:20:40,150 --> 00:20:44,250 Speaker: giving up at the time? No, no, 389 00:20:45,300 --> 00:20:46,359 Speaker: I don't quit. 390 00:20:47,310 --> 00:20:49,489 Speaker: When did it come along far enough that you thought? Ok, 391 00:20:49,500 --> 00:20:55,129 Speaker: I've cracked this nut in 2021. We were doing tillage 392 00:20:55,140 --> 00:21:00,050 Speaker: just west of Chicago. We ran at 48 hours nonstop. 393 00:21:00,300 --> 00:21:03,030 Speaker: We let this thing loose in a, oh God, I 394 00:21:03,040 --> 00:21:06,969 Speaker: think it was 480 acre field and this thing ran 395 00:21:06,979 --> 00:21:10,409 Speaker: day in day out, never stopped. And 396 00:21:10,969 --> 00:21:13,099 Speaker: at the time I looked at this and I'm like, 397 00:21:13,109 --> 00:21:15,399 Speaker: I started to see light at the end of the tunnel, 398 00:21:15,439 --> 00:21:19,379 Speaker: we had path planning working. We were monitoring all aspects 399 00:21:19,390 --> 00:21:22,379 Speaker: of the tractor. We were holding the line within a 400 00:21:22,390 --> 00:21:25,369 Speaker: good one inch, two inches and it was just a 401 00:21:25,380 --> 00:21:29,020 Speaker: matter of keeping fuel in it. Craig had finally figured 402 00:21:29,030 --> 00:21:33,050 Speaker: it out. And since 2021 Sabanto has continued to grow, 403 00:21:33,380 --> 00:21:37,099 Speaker: their autonomous product is called steward and it supports 19 404 00:21:37,109 --> 00:21:38,969 Speaker: different tractor models. As of today, 405 00:21:40,260 --> 00:21:43,790 Speaker: we have 40 employees right now, split between Iowa and 406 00:21:43,800 --> 00:21:47,319 Speaker: Chicago and we have a good 30 to 40 customers 407 00:21:47,329 --> 00:21:51,869 Speaker: right now. Farming operations all scattered throughout the US. We 408 00:21:51,880 --> 00:21:55,149 Speaker: have quite a lot in Florida and Georgia starting to 409 00:21:55,160 --> 00:21:58,160 Speaker: do a lot in Texas right now. From California to 410 00:21:58,170 --> 00:22:00,959 Speaker: New York, Texas, to Wisconsin. 411 00:22:01,469 --> 00:22:05,170 Speaker: Oh, wow. So really, truly nationwide. Do you retrofit someone's tractor? 412 00:22:05,180 --> 00:22:07,069 Speaker: Did you send someone out to install this on the 413 00:22:07,079 --> 00:22:08,609 Speaker: tractor they already have or do you just send them 414 00:22:08,619 --> 00:22:10,099 Speaker: a kit and they do it themselves? How does this 415 00:22:10,109 --> 00:22:11,000 Speaker: actually work? 416 00:22:11,800 --> 00:22:16,930 Speaker: So, we have dealers throughout the US and normally they 417 00:22:16,939 --> 00:22:22,459 Speaker: do the installation and we obviously help with the installation. 418 00:22:22,729 --> 00:22:26,260 Speaker: So we get to a farming operation and we do 419 00:22:26,270 --> 00:22:29,469 Speaker: a demo at this point in time, we actually haul 420 00:22:29,479 --> 00:22:33,099 Speaker: a tractor onto their premises and let them use it 421 00:22:33,109 --> 00:22:36,979 Speaker: for two weeks. And once they get hooked, 422 00:22:37,579 --> 00:22:41,040 Speaker: whatever tractor that they have, what we do is we 423 00:22:41,050 --> 00:22:44,438 Speaker: install the autonomy system on that tractor and then they 424 00:22:44,449 --> 00:22:48,679 Speaker: can remotely control and monitor that tractor perform field operations. 425 00:22:49,199 --> 00:22:51,300 Speaker: I did a little bit of research before this interview 426 00:22:51,310 --> 00:22:52,550 Speaker: and I learned all about 427 00:22:53,040 --> 00:22:56,319 Speaker: the technology investments that the big guys are making. The 428 00:22:56,329 --> 00:22:59,379 Speaker: deers of the world are making in terms of autonomous tractors. 429 00:22:59,390 --> 00:23:01,349 Speaker: You know, these big combines that can do all the 430 00:23:01,359 --> 00:23:03,949 Speaker: stuff that can laser the weeds and whatever. But I 431 00:23:03,959 --> 00:23:06,099 Speaker: also learned all about the right to repair battles that 432 00:23:06,109 --> 00:23:10,130 Speaker: are going on between farmers and manufacturers. So I'm curious, 433 00:23:10,410 --> 00:23:12,760 Speaker: does your solution play into that at all? You know, 434 00:23:12,770 --> 00:23:15,469 Speaker: the ability to sort of keep your tractor and repair 435 00:23:15,479 --> 00:23:17,069 Speaker: it and do what you want and then have some 436 00:23:17,079 --> 00:23:19,219 Speaker: of these autonomous features just layered on at a, at 437 00:23:19,229 --> 00:23:20,270 Speaker: a lower cost. 438 00:23:20,989 --> 00:23:23,380 Speaker: I'm all for the right to repair. I'll, I'll be 439 00:23:23,390 --> 00:23:27,109 Speaker: honest with you. If someone could fix something remotely without 440 00:23:27,119 --> 00:23:30,819 Speaker: me getting involved, I'm all for that. And we give 441 00:23:30,829 --> 00:23:34,260 Speaker: them the tools in order to do that. But it 442 00:23:34,270 --> 00:23:36,119 Speaker: is an interesting alternative. You know, you can go to 443 00:23:36,130 --> 00:23:38,369 Speaker: one of the big manufacturers and buy this giant very 444 00:23:38,380 --> 00:23:41,530 Speaker: expensive smart tractor or smart seater or smart whatever or 445 00:23:41,540 --> 00:23:43,420 Speaker: you can take the equipment that you already have and 446 00:23:43,430 --> 00:23:46,170 Speaker: give you a call and make it smart. Your next 447 00:23:46,229 --> 00:23:49,119 Speaker: generation tractors are sitting in your machine shed. 448 00:23:50,390 --> 00:23:52,849 Speaker: I just love that idea so much. The next generation 449 00:23:52,859 --> 00:23:55,670 Speaker: tractor is the one you already own. I think a 450 00:23:55,680 --> 00:23:58,209 Speaker: lot of people stumble onto great ideas that seem so 451 00:23:58,219 --> 00:24:00,849 Speaker: totally out of the blue, but make perfect sense. Once 452 00:24:00,859 --> 00:24:03,489 Speaker: you look at combining some tools that no one's considered 453 00:24:04,790 --> 00:24:08,079 Speaker: as a result, Craig's business has grown considerably and as 454 00:24:08,089 --> 00:24:10,729 Speaker: part of that growth, he's moving into a new segment 455 00:24:10,739 --> 00:24:11,369 Speaker: of our bank 456 00:24:12,530 --> 00:24:15,500 Speaker: for our listeners, I lead small business here at Chase 457 00:24:15,750 --> 00:24:19,139 Speaker: and Brian Lamb, my friend and partner is the northeast segment. 458 00:24:19,150 --> 00:24:21,948 Speaker: Head for the middle market. We work closely together to 459 00:24:21,959 --> 00:24:23,929 Speaker: take care of those businesses who are growing to the 460 00:24:23,939 --> 00:24:26,859 Speaker: next level. And so I wanted to bring Brian in 461 00:24:26,869 --> 00:24:30,739 Speaker: to give people a sense for what that means. So Brian, 462 00:24:30,750 --> 00:24:32,069 Speaker: it's great to have you on the show. Thanks for 463 00:24:32,079 --> 00:24:32,300 Speaker: being 464 00:24:32,310 --> 00:24:32,698 Speaker: here, 465 00:24:32,709 --> 00:24:34,349 Speaker: Ben. It's good to see you. Good to be here. 466 00:24:34,359 --> 00:24:37,560 Speaker: And uh thanks for having me. It's exciting to see 467 00:24:38,020 --> 00:24:42,680 Speaker: companies progress in their growth trajectory and there's some common 468 00:24:42,689 --> 00:24:46,050 Speaker: themes and patterns I I maybe can touch on first 469 00:24:46,060 --> 00:24:48,569 Speaker: you hear the term middle market. What does that mean? 470 00:24:48,930 --> 00:24:52,510 Speaker: Generally it means first that you have reached a certain 471 00:24:52,520 --> 00:24:57,290 Speaker: size and complexity size could be driven by revenue. Maybe 472 00:24:57,300 --> 00:25:00,449 Speaker: you've got, you know, go from 10 million to 20 million. 473 00:25:00,459 --> 00:25:05,239 Speaker: That's one example. Also, complexity, complexity could be defined as, 474 00:25:05,609 --> 00:25:08,500 Speaker: you know, the geographies that you cover. Maybe it used 475 00:25:08,510 --> 00:25:10,319 Speaker: to be a city and a county and now it's 476 00:25:10,329 --> 00:25:13,359 Speaker: states or maybe even countries. The other part of the 477 00:25:13,369 --> 00:25:17,520 Speaker: complexity is your capital structure. Maybe historically had a small 478 00:25:17,530 --> 00:25:19,919 Speaker: line of credit or a credit card or you were 479 00:25:19,930 --> 00:25:23,609 Speaker: able to actually build that business with friends and family capital. 480 00:25:23,619 --> 00:25:26,770 Speaker: But now you're moving to different types of capital and 481 00:25:26,780 --> 00:25:29,438 Speaker: different types of financial needs. If I think about the 482 00:25:29,449 --> 00:25:30,359 Speaker: transition and 483 00:25:30,599 --> 00:25:32,849 Speaker: maybe one of the one or two of the things 484 00:25:32,859 --> 00:25:35,869 Speaker: I see companies that do it well. And by the way, 485 00:25:35,880 --> 00:25:38,579 Speaker: I got to pause and applaud what Craig and Sabanto 486 00:25:38,589 --> 00:25:41,129 Speaker: to have, have done, they've done a fantastic job of 487 00:25:41,140 --> 00:25:45,000 Speaker: scaling and growing. What I see is a challenge though, 488 00:25:45,010 --> 00:25:47,979 Speaker: I would tell you is when companies don't anticipate some 489 00:25:47,989 --> 00:25:51,280 Speaker: of those needs that may happen when they get much bigger, 490 00:25:51,349 --> 00:25:54,650 Speaker: I'll give you a couple of examples. One, their working 491 00:25:54,660 --> 00:25:58,250 Speaker: capital needs change dramatically, right? When, when you own a 492 00:25:58,295 --> 00:26:01,275 Speaker: small business, there's the phrase, hey, making Payroll where it's 493 00:26:01,285 --> 00:26:04,834 Speaker: not always a figure of speech, you know, but managing 494 00:26:04,844 --> 00:26:08,385 Speaker: your working capital and the cash collection cycle can become 495 00:26:08,395 --> 00:26:10,675 Speaker: very complex as you get much bigger. And we see 496 00:26:10,685 --> 00:26:14,155 Speaker: a lot of companies struggle there. The second thing believe 497 00:26:14,165 --> 00:26:16,655 Speaker: it or not is talent, right? You know, Ben, you 498 00:26:16,665 --> 00:26:19,275 Speaker: and I always talk about the talent that you may 499 00:26:19,285 --> 00:26:21,545 Speaker: have started with when you were a small company may 500 00:26:21,555 --> 00:26:24,435 Speaker: need to look different. The folks that are really helping 501 00:26:24,444 --> 00:26:25,905 Speaker: you run and scale the business 502 00:26:26,410 --> 00:26:29,829 Speaker: talent becomes a really big consideration. And then partners 503 00:26:30,650 --> 00:26:34,010 Speaker: who are the partners, who are the advisors, your accountant, 504 00:26:34,020 --> 00:26:38,119 Speaker: your lawyer, your bank, the in the institutions that ultimately 505 00:26:38,130 --> 00:26:41,389 Speaker: help you make sound decisions for growth. You have to 506 00:26:41,400 --> 00:26:43,750 Speaker: think about those as well as you scale and grow. 507 00:26:44,189 --> 00:26:46,800 Speaker: Yeah. The other thing I I often talk about is 508 00:26:47,050 --> 00:26:50,430 Speaker: a combination of complexity and scale, particularly with respect to your, 509 00:26:50,439 --> 00:26:53,359 Speaker: your staff. I always say there are two big inflection 510 00:26:53,369 --> 00:26:56,869 Speaker: points when you are growing a staff, when you have 511 00:26:57,469 --> 00:27:00,290 Speaker: up to 50 people or so, you can really know 512 00:27:00,300 --> 00:27:02,819 Speaker: all of them and you know which ones are good 513 00:27:02,829 --> 00:27:04,420 Speaker: and which ones are less good and which ones have, 514 00:27:04,430 --> 00:27:07,458 Speaker: which quirks and there's an inflection. Once you go beyond 515 00:27:07,469 --> 00:27:10,010 Speaker: 50 you can't know all of them. It's tough up 516 00:27:11,040 --> 00:27:13,479 Speaker: to about 200. You can still know who all of 517 00:27:13,489 --> 00:27:16,800 Speaker: them are. You don't know them. You probably only know 518 00:27:16,810 --> 00:27:19,699 Speaker: that about 50 but you know who the 200 are. 519 00:27:20,199 --> 00:27:22,920 Speaker: And then once you hit 200 you see people and 520 00:27:22,930 --> 00:27:24,699 Speaker: you don't know if they work for you or not. 521 00:27:24,849 --> 00:27:28,209 Speaker: And that's a really different mindset around your business because 522 00:27:28,219 --> 00:27:31,030 Speaker: you really are relying on your leaders to know those 523 00:27:31,040 --> 00:27:33,920 Speaker: employees and to cascade your message. And so I always 524 00:27:33,930 --> 00:27:35,530 Speaker: tell people that you, that you need to think about 525 00:27:35,540 --> 00:27:38,569 Speaker: those two inflection points 5200. Like when do I stop 526 00:27:38,579 --> 00:27:40,989 Speaker: knowing everyone personally? And when do I stop knowing who 527 00:27:41,000 --> 00:27:41,660 Speaker: everyone is? 528 00:27:42,030 --> 00:27:42,099 Speaker: I 529 00:27:42,109 --> 00:27:43,500 Speaker: love it be because 530 00:27:44,420 --> 00:27:48,800 Speaker: I think those are really interesting goalposts to think about. 531 00:27:49,140 --> 00:27:50,800 Speaker: And it goes back to something you and I always 532 00:27:50,810 --> 00:27:54,280 Speaker: talk about, which is culture when you built the company, 533 00:27:54,290 --> 00:27:56,939 Speaker: when you started it and you began to grow, there 534 00:27:56,949 --> 00:27:59,959 Speaker: was a culture, there were values, there were principles that 535 00:27:59,969 --> 00:28:03,160 Speaker: you as the leader as the founder believed in. Well, 536 00:28:03,170 --> 00:28:06,369 Speaker: you don't want to lose those as you grow and 537 00:28:06,380 --> 00:28:09,359 Speaker: so you can make all of these other really smart 538 00:28:09,369 --> 00:28:11,479 Speaker: business decisions. But to your point 539 00:28:11,790 --> 00:28:15,159 Speaker: as you start having hundreds of employees, one of the 540 00:28:15,170 --> 00:28:17,869 Speaker: things that you most importantly want to focus on and 541 00:28:17,880 --> 00:28:21,169 Speaker: protect is the very culture that helped you be successful 542 00:28:21,180 --> 00:28:24,050 Speaker: from the beginning when you grow, slow down 543 00:28:24,890 --> 00:28:28,609 Speaker: and just realize what got you to that point, you 544 00:28:28,619 --> 00:28:31,179 Speaker: may have to do some things differently to continue to 545 00:28:31,189 --> 00:28:31,989 Speaker: scale and grow. 546 00:28:32,000 --> 00:28:34,780 Speaker: Have you ever seen in these growing companies? A founder 547 00:28:34,790 --> 00:28:37,650 Speaker: and CEO actually bring in and hire a CEO and 548 00:28:37,660 --> 00:28:39,390 Speaker: say I'm going to do the things that I like 549 00:28:39,400 --> 00:28:40,780 Speaker: doing and I'm good at, but I'm going to have 550 00:28:40,790 --> 00:28:42,709 Speaker: a professional run. The actual uh do you see 551 00:28:42,895 --> 00:28:43,175 Speaker: that? 552 00:28:43,255 --> 00:28:45,255 Speaker: I, I, Ben, I would tell you, I see it 553 00:28:45,265 --> 00:28:48,564 Speaker: more often than not. Actually, when a company has reached 554 00:28:48,574 --> 00:28:53,064 Speaker: a certain inflection point, they've grown, maybe they have international 555 00:28:53,074 --> 00:28:57,224 Speaker: services and products now, maybe they've expanded into different product 556 00:28:57,234 --> 00:29:01,564 Speaker: lines which requires different expertise to your point. They are 557 00:29:01,574 --> 00:29:04,805 Speaker: a much bigger people business. Now, they've got 1000 employees 558 00:29:04,814 --> 00:29:06,064 Speaker: instead of 100. 559 00:29:06,459 --> 00:29:11,390 Speaker: I have seen investors and founders bring in a new 560 00:29:11,400 --> 00:29:15,069 Speaker: CEO that is a better fit, I guess I would 561 00:29:15,079 --> 00:29:18,000 Speaker: say is the word. It doesn't mean that that founder 562 00:29:18,010 --> 00:29:21,479 Speaker: CEO investor doesn't add tremendous value 563 00:29:21,489 --> 00:29:23,500 Speaker: and they still own and they still 564 00:29:23,520 --> 00:29:24,109 Speaker: own the business. And 565 00:29:24,119 --> 00:29:27,000 Speaker: in almost every scenario, they still own the business. 566 00:29:27,390 --> 00:29:30,150 Speaker: But they have found someone that's a good fit for 567 00:29:30,160 --> 00:29:33,890 Speaker: where that company is in the life cycle of their growth. 568 00:29:34,140 --> 00:29:36,770 Speaker: And I got to tell you when I've seen that happen, 569 00:29:37,099 --> 00:29:39,010 Speaker: I've seen that company thrive and grow. 570 00:29:39,290 --> 00:29:42,140 Speaker: One of the things that I often hear clients talk 571 00:29:42,150 --> 00:29:44,530 Speaker: about as they transition up to the middle market is 572 00:29:44,699 --> 00:29:47,329 Speaker: I need to build infrastructure. I'm running this thing on 573 00:29:47,339 --> 00:29:50,050 Speaker: a shoestring. I'm running this thing informally. I've got to 574 00:29:50,060 --> 00:29:53,380 Speaker: build infrastructure to scale this thing. What does that actually mean? Yeah. 575 00:29:53,390 --> 00:29:55,689 Speaker: No, it's important infrastructure 576 00:29:56,000 --> 00:29:57,900 Speaker: could mean things like 577 00:29:58,619 --> 00:30:04,819 Speaker: investing in technology to improve automation, right? Maybe before manual 578 00:30:04,829 --> 00:30:07,800 Speaker: processes because of the size and scale of your business 579 00:30:08,099 --> 00:30:12,599 Speaker: really made sense financially, you know, strategy wise. But as 580 00:30:12,609 --> 00:30:15,989 Speaker: you get much bigger and you become more complex, 581 00:30:16,760 --> 00:30:20,979 Speaker: having digital capabilities for your teams and your clients will matter, 582 00:30:21,390 --> 00:30:26,189 Speaker: automating processes to streamline how you do business and remain 583 00:30:26,250 --> 00:30:31,089 Speaker: if you will efficient, become important. Another example of infrastructure 584 00:30:31,099 --> 00:30:35,569 Speaker: might be cybersecurity, just protecting the value and the assets 585 00:30:35,579 --> 00:30:38,400 Speaker: that you've created. I see this all the time at 586 00:30:38,410 --> 00:30:39,589 Speaker: JP Morgan Chase. And 587 00:30:39,920 --> 00:30:41,900 Speaker: one of the things I try to get folks to 588 00:30:41,910 --> 00:30:46,400 Speaker: think about is even though cyber and fraud, those may 589 00:30:46,410 --> 00:30:48,890 Speaker: be things that you're aware of. Are you doing enough 590 00:30:48,900 --> 00:30:52,380 Speaker: in your infrastructure to harden the assets and maybe one 591 00:30:52,390 --> 00:30:55,780 Speaker: other infrastructure point I would raise as you think about 592 00:30:55,790 --> 00:30:57,180 Speaker: your scale and your growth 593 00:30:58,130 --> 00:31:00,589 Speaker: is the quality of your financial statements 594 00:31:01,459 --> 00:31:08,160 Speaker: and your ability to produce timely reliable reporting, both operational 595 00:31:08,170 --> 00:31:12,640 Speaker: reporting and financial reporting. It will help you make better 596 00:31:12,650 --> 00:31:16,719 Speaker: decisions that will better inform your partners and advisor that 597 00:31:16,729 --> 00:31:20,079 Speaker: you work with on a regular basis. And principally I 598 00:31:20,089 --> 00:31:22,839 Speaker: call it helping you look around the corner, right? You 599 00:31:22,849 --> 00:31:26,239 Speaker: may see things in those operational and financial reports 600 00:31:26,510 --> 00:31:30,329 Speaker: that help inform what your next best decision might be. 601 00:31:30,339 --> 00:31:33,069 Speaker: I tell you what it's exciting to see those leaders 602 00:31:33,079 --> 00:31:36,930 Speaker: that can make that sustainable transition, right? And there are 603 00:31:36,939 --> 00:31:39,560 Speaker: a couple of key I guess elements I see or 604 00:31:39,569 --> 00:31:42,890 Speaker: dimensions I see in those types of leaders. One they 605 00:31:42,900 --> 00:31:43,329 Speaker: just 606 00:31:44,089 --> 00:31:48,619 Speaker: always are resisting complacency. The idea that you have reached 607 00:31:48,630 --> 00:31:52,359 Speaker: a certain plateau and that you can cruise or that 608 00:31:52,369 --> 00:31:55,880 Speaker: you think you've done enough that your competitive advantage will stand. 609 00:31:55,890 --> 00:31:58,680 Speaker: The test of time. Second is diversification. 610 00:31:59,410 --> 00:32:02,949 Speaker: So the products and services or the geography or the 611 00:32:02,959 --> 00:32:07,010 Speaker: client base that you built over the years, I would 612 00:32:07,020 --> 00:32:12,349 Speaker: encourage folks to be restless about continuing to diversify their business. Right. 613 00:32:12,359 --> 00:32:15,910 Speaker: Maybe there's new products and services. Maybe you, you've historically 614 00:32:15,920 --> 00:32:17,839 Speaker: grown through acquisition and you're going to do a better 615 00:32:17,849 --> 00:32:21,619 Speaker: job through organic. Look at your share of wallet, right? 616 00:32:21,839 --> 00:32:24,229 Speaker: Even though you've got a great client base, could you 617 00:32:24,239 --> 00:32:26,819 Speaker: deepen that share of wallet? Could you take a bigger 618 00:32:26,829 --> 00:32:28,310 Speaker: percentage of their spin and 619 00:32:28,540 --> 00:32:33,160 Speaker: they do business with you? Your margins? There's always an 620 00:32:33,170 --> 00:32:37,160 Speaker: opportunity to look at margin improvement even as you grow. 621 00:32:37,329 --> 00:32:41,010 Speaker: Can you grow profitably in a very efficient way? And 622 00:32:41,020 --> 00:32:43,760 Speaker: maybe the last thing I see leaders do is kind 623 00:32:43,770 --> 00:32:45,880 Speaker: of a deep focus on productivity, 624 00:32:46,359 --> 00:32:49,640 Speaker: right? They've gotten to a really big size and scale, 625 00:32:49,689 --> 00:32:52,910 Speaker: they've continued to grow. And now what could they do 626 00:32:52,920 --> 00:32:57,829 Speaker: for every incremental dollar they invest? How productive is that individual? 627 00:32:57,839 --> 00:33:01,270 Speaker: Is that investment? And is it driving the returns that 628 00:33:01,280 --> 00:33:03,260 Speaker: a business owner would expect? And so 629 00:33:03,829 --> 00:33:06,560 Speaker: when I think about those leaders that kind of bend 630 00:33:06,569 --> 00:33:08,589 Speaker: the curve, those are some of the key elements I 631 00:33:08,599 --> 00:33:09,819 Speaker: see them demonstrate, 632 00:33:09,979 --> 00:33:11,609 Speaker: it seems like what reads through all that though is 633 00:33:11,619 --> 00:33:12,500 Speaker: continued hunger. 634 00:33:13,119 --> 00:33:16,949 Speaker: It's really special to see the small businesses thrive and 635 00:33:16,959 --> 00:33:21,069 Speaker: grow and move into the middle market and beyond. And 636 00:33:21,079 --> 00:33:23,660 Speaker: so that is at the end of the day, one 637 00:33:23,670 --> 00:33:26,170 Speaker: of the most important elements of this country is a 638 00:33:26,189 --> 00:33:29,329 Speaker: chance for us to do business and see companies grow. 639 00:33:32,869 --> 00:33:34,770 Speaker: And finally, Sachin, I want to bring you back in. 640 00:33:34,780 --> 00:33:38,050 Speaker: Here is Craig's story unusual and that he's been successful 641 00:33:38,060 --> 00:33:39,920 Speaker: in an area that the big companies have been going 642 00:33:39,930 --> 00:33:42,760 Speaker: after or do you see that frequently? Craig's story definitely 643 00:33:42,770 --> 00:33:46,849 Speaker: isn't unique. I'd say in terms of entrepreneurs creating more 644 00:33:46,859 --> 00:33:49,369 Speaker: efficient ways to do things in an older industry such 645 00:33:49,380 --> 00:33:53,630 Speaker: as agriculture. There's definitely a lot of entrepreneurship and young 646 00:33:53,640 --> 00:33:56,670 Speaker: companies that are making waves in the industry where generally 647 00:33:56,680 --> 00:33:58,239 Speaker: you see big players for the most part. 648 00:33:58,760 --> 00:34:01,219 Speaker: Uh Craig touched on something that I think is important, 649 00:34:01,229 --> 00:34:03,819 Speaker: which is in a world that is increasingly tech driven 650 00:34:04,239 --> 00:34:05,739 Speaker: where you, you know, you're in a part of the 651 00:34:05,750 --> 00:34:08,550 Speaker: country that doesn't necessarily have the depth of tech talent 652 00:34:08,560 --> 00:34:10,899 Speaker: that a Chicago or a Silicon Valley or New York 653 00:34:10,909 --> 00:34:13,638 Speaker: City has. How does the region and how do the 654 00:34:13,649 --> 00:34:16,459 Speaker: entrepreneurs in the region face into that? What does that 655 00:34:16,469 --> 00:34:19,060 Speaker: feel like on the ground? He's definitely right about that, 656 00:34:19,070 --> 00:34:21,859 Speaker: the talent locally, especially with universities and things like that. 657 00:34:21,870 --> 00:34:24,020 Speaker: Even though Iowa State and Iowa are great, they have 658 00:34:24,030 --> 00:34:26,100 Speaker: great tech programs, great for your science programs. 659 00:34:26,320 --> 00:34:29,060 Speaker: I think family history and the culture of the state 660 00:34:29,070 --> 00:34:31,750 Speaker: really breeds a lot of people that are still lean 661 00:34:31,760 --> 00:34:34,840 Speaker: in the agricultural side of things. But when it comes 662 00:34:34,850 --> 00:34:37,530 Speaker: to the tech side of things, we realize that there 663 00:34:37,540 --> 00:34:39,350 Speaker: may not be such a big talent pool here in 664 00:34:39,360 --> 00:34:41,939 Speaker: the Midwest or in Des Moines or in Iowa specifically. 665 00:34:42,219 --> 00:34:45,979 Speaker: So people will pull from Chicago or bigger markets where 666 00:34:45,989 --> 00:34:48,919 Speaker: there are more intense tech pools and kind of marry 667 00:34:48,929 --> 00:34:52,850 Speaker: those two different industries on how to communicate the tech 668 00:34:52,860 --> 00:34:54,790 Speaker: side of things with what your project on the ground 669 00:34:54,800 --> 00:34:56,929 Speaker: is going to be. What do you think are, are 670 00:34:56,939 --> 00:35:00,219 Speaker: the advantages to owning and starting a business in a 671 00:35:00,229 --> 00:35:01,439 Speaker: place like Iowa? 672 00:35:01,739 --> 00:35:05,009 Speaker: I can speak to Des Moines specifically. The entrepreneurial community 673 00:35:05,020 --> 00:35:07,709 Speaker: here is really vibrant, it's really thriving and there's so 674 00:35:07,719 --> 00:35:11,679 Speaker: many cool local resources that you can tie into to 675 00:35:11,889 --> 00:35:15,310 Speaker: get either well networked or find funding and being from 676 00:35:15,320 --> 00:35:18,089 Speaker: a smaller town and a smaller demographic in a, in 677 00:35:18,100 --> 00:35:20,649 Speaker: a geographical area, you definitely get to know each other 678 00:35:20,659 --> 00:35:23,320 Speaker: a little bit better. So the ability to connect with 679 00:35:23,330 --> 00:35:25,439 Speaker: people that you're trying to get in contact with. It's 680 00:35:25,449 --> 00:35:28,529 Speaker: a shorter connection. Generally, it's also even a personal connection 681 00:35:28,540 --> 00:35:29,800 Speaker: where you can find someone that 682 00:35:30,129 --> 00:35:33,090 Speaker: know someone personally that you can get in contact with. 683 00:35:33,100 --> 00:35:35,439 Speaker: So it's becoming a little bit more of a cultural 684 00:35:35,449 --> 00:35:40,689 Speaker: hub for smaller agricultural companies and smaller start ups. I 685 00:35:40,699 --> 00:35:43,199 Speaker: hope that continues that that trend would be, would be 686 00:35:43,209 --> 00:35:44,770 Speaker: really cool to see flourish over here. 687 00:35:47,159 --> 00:35:50,159 Speaker: Thanks so much for listening to this episode of the unshakeable. 688 00:35:50,469 --> 00:35:53,389 Speaker: And thank you to Craig Rupp Sachin Sehgal and Brian 689 00:35:53,399 --> 00:35:56,639 Speaker: Lamb for speaking with us today. If you like this episode, 690 00:35:56,649 --> 00:35:58,929 Speaker: please rate and review it. And if you know someone 691 00:35:58,939 --> 00:36:00,949 Speaker: who may like the series, please tell them about it. 692 00:36:01,169 --> 00:36:03,850 Speaker: Next episode, we'll hear from an entrepreneur who started a 693 00:36:03,860 --> 00:36:07,379 Speaker: company with the full backing of her previous employer. Not 694 00:36:07,389 --> 00:36:11,310 Speaker: just emotional support either they guaranteed her clients and contracts. 695 00:36:11,320 --> 00:36:12,979 Speaker: If she started her own company, 696 00:36:13,270 --> 00:36:16,820 Speaker: we'll be speaking with Quanetta McNeal CEO of House of 697 00:36:16,830 --> 00:36:19,049 Speaker: Logistics out of Birmingham, Alabama. 698 00:36:20,040 --> 00:36:23,250 Speaker: I'm Ben Walter and this is The Unshakeables from Chase 699 00:36:23,260 --> 00:36:26,139 Speaker: For Business and Ruby Studio from iHeartMedia.