WEBVTT - Sowing Seeds for the Future: Sabanto

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<v Speaker>Iowa the land of fields, whether it's fields full of corn

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<v Speaker>or fields full of baseball dreams and those fields, they're

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<v Speaker>often full of tractors. The site is so common. Most

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<v Speaker>people don't even notice them

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<v Speaker>until they notice that they're driving with no one at

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<v Speaker>the steering wheel.

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<v Speaker>Sheriff's office. Can I help you? I just saw something

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<v Speaker>a little strange. A tractor out in the cornfield that

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<v Speaker>was driving along by itself.

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<v Speaker>There was nobody on the tractor but it was moving.

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<v Speaker>Could you actually tell there was nobody in it? Yeah,

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<v Speaker>because it's an open cab tractor.

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<v Speaker>It was, there was no one on the seat. I

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<v Speaker>just felt like I should probably let somebody know. I

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<v Speaker>don't know if someone can go out there and just

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<v Speaker>check the seat. Ok. We'll have somebody check it out. Ok,

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<v Speaker>thank you. All right, thanks.

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<v Speaker>That's just one of many times that Craig Rupp had

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<v Speaker>911 called on him and not because he's going around

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<v Speaker>pushing people out of tractors, but because his company Sabato

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<v Speaker>is changing the way America farms forever.

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<v Speaker>I knew agriculture. I knew machines. I wanted to disrupt

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<v Speaker>the industry. I want to send a message that autonomy

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<v Speaker>is coming in agriculture. That's why I think the next

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<v Speaker>generation tractors are already sitting in your machine shed.

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<v Speaker>Welcome to The Unshakeables from Chase For Business and Ruby

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<v Speaker>Studio from iHeartMedia. I'm Ben Walter CEO of Chase for Business,

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<v Speaker>on The Unshakeables We're sharing the daring moments of small business owners

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<v Speaker>facing their crisis points and telling the stories of how

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<v Speaker>they got through it. If you're new to the show. Welcome,

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<v Speaker>if you've been listening, welcome back over the next few weeks,

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<v Speaker>we'll be highlighting exceptional small businesses from across the country.

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<v Speaker>We'll also be hearing from experts in those markets who

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<v Speaker>can tell us what the business and communities supporting them

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<v Speaker>mean for America. But this week, we're firmly in the

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<v Speaker>Hawkeye State and we have two great guests joining us today,

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<v Speaker>Brian Lamb and Sachin Sehgal.

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<v Speaker>You know, the more we learned about Sabanto and Craig's business,

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<v Speaker>the more it made sense to have those intimately familiar

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<v Speaker>with the local market. Come on and chat with us.

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<v Speaker>Sachin is the founder of elevate digital marketing, an agency

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<v Speaker>based in Des Moines, Iowa Satin. Welcome to the unshakeable.

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<v Speaker>Thank you very much, Ben. It's great to meet you.

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<v Speaker>So I really love Iowa. I grew up here. I

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<v Speaker>have a small business here and I really love it

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<v Speaker>as a place for innovation.

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<v Speaker>I know most people picture the coasts when they think

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<v Speaker>about A I and tech, but there's so much happening

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<v Speaker>in the Midwest that I'm excited to show off. All right,

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<v Speaker>let's get into the show. This is Sabanto Agriculture from

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<v Speaker>Ames Iowa.

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<v Speaker>I was fortunate enough to spend some time in Iowa

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<v Speaker>this summer. What really stood out to me is just

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<v Speaker>how much Iowans love Iowa. I talked to some terrific

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<v Speaker>people and it's amazing how people all over Iowa seem

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<v Speaker>to have this real emotional and almost physical connection to agriculture. It,

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<v Speaker>it's just a way of life in Iowa. So as

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<v Speaker>soon as I met Craig, there was one question I

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<v Speaker>had to ask immediately.

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<v Speaker>Craig, I believe you grew up on a farm. Is

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<v Speaker>that right? I most certainly did. I grew up on

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<v Speaker>a farm in northwest Iowa. A little town called Cherokee.

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<v Speaker>It's about 5000 people now and it was corn, soybeans,

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<v Speaker>hogs and cattle. What was that like growing up in

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<v Speaker>an agricultural community?

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<v Speaker>You know, it, it felt normal while I was there.

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<v Speaker>I guess that's what you knew. Right. That was your life. Yeah. Yeah.

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<v Speaker>And everyone I knew had something to do with farming

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<v Speaker>chores in the morning chores in the afternoon when you

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<v Speaker>got home from school, you know, you had to feed

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<v Speaker>the cattle, feed the hogs, you know, I just assumed

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<v Speaker>that this was a part of growing up outside working.

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<v Speaker>So when you were growing up in this rural community

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<v Speaker>on a farm,

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<v Speaker>did you imagine someday you would own a business No, I, I,

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<v Speaker>it was never really a plan for me. I never

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<v Speaker>would have imagined that I would ever start a company.

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<v Speaker>The little town I grew up in, had a radio

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<v Speaker>shack and then by God they had books and you

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<v Speaker>could learn about electronics. It was like the internet for

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<v Speaker>me back in the early eighties,

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<v Speaker>1984 when I graduated high school and went to college

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<v Speaker>to become an electrical engineer. I, I was convinced that

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<v Speaker>was the last time I would ever set my foot

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<v Speaker>on a farm again.

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<v Speaker>Craig followed that engineering track working at Motorola in the

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<v Speaker>nineties where he did hardware development for mobile phones. Around

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<v Speaker>1995 Craig and some fellow Motorolans saw an opportunity, mobile

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<v Speaker>and cellular devices were taking off. We had decided that

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<v Speaker>we're going to start a consulting company we would meet

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<v Speaker>in the mornings at a local restaurant and then we

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<v Speaker>kind of did the old pinky promise that if we

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<v Speaker>could get $30,000 in contracts, then

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<v Speaker>that would hold us out to the end of the year.

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<v Speaker>And it turns out about two weeks later, we had

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<v Speaker>$30,000 in contracts. So we gave her two weeks notice

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<v Speaker>and went out and started what was called Alliance Technologies Group.

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<v Speaker>Craig kept chasing his curiosity working at John Deere apple, blackberry,

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<v Speaker>Nokia Samsung, and a few other household names. And while

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<v Speaker>he never imagined he'd be an entrepreneur once he started

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<v Speaker>Alliance Technologies Group. He couldn't stop you. You have started

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<v Speaker>how many companies? Uh This is my sixth.

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<v Speaker>So the fifth company he started was called 640 Labs.

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<v Speaker>It combined his work at John Deere on internal cab

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<v Speaker>displays with his work on the Apple ipads cloud data

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<v Speaker>storage system.

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<v Speaker>My brother still farms. I was at his farm. I

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<v Speaker>was sitting in one of his tractors that he just

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<v Speaker>bought and I saw this little port, all the engine

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<v Speaker>data is on this port. And then my friend and I,

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<v Speaker>we started this company and the whole idea was we're

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<v Speaker>going to take data off of that port or off

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<v Speaker>of these vehicles. Agriculture data into the ipad, ipad up

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<v Speaker>into the cloud. So it was a very inexpensive way

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<v Speaker>of collecting data.

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<v Speaker>18 months later, we got acquired by Monsanto

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<v Speaker>at Monsanto. He was back in regular conversation with farmers.

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<v Speaker>I had a unique skill set. I knew farmers, I knew,

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<v Speaker>you know, what made them tick. I can talk with

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<v Speaker>them about planting corn soybeans. And you know, I'd always

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<v Speaker>ask the question, what keeps you up at night? And

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<v Speaker>it was always labor. You know, it was the cost

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<v Speaker>of labor. It was the lack of labor.

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<v Speaker>The availability of farm labor has changed over the years.

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<v Speaker>The average age of the American farmer is 59 and

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<v Speaker>farm families are much smaller than they used to be.

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<v Speaker>I have 57 1st cousins and both my parents had

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<v Speaker>double digit brothers and sisters and all of them had

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<v Speaker>a lot of Children and now just you have four kids. Now,

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<v Speaker>that's a big family. I thought, you know, autonomy is

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<v Speaker>the answer for it.

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<v Speaker>Ok. So this is where I want to bring Sachin

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<v Speaker>back in- Sachin, You've lived in Iowa your entire adult

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<v Speaker>life and it seems like you have no plans to leave. So,

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<v Speaker>what did you think about Craig's departure? He said he

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<v Speaker>never wanted to step foot on a farm again. You know,

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<v Speaker>it's interesting. I bet many people had the same ideas, Craig,

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<v Speaker>but there's a lot of people moving back to the

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<v Speaker>area post COVID because they kind of realized that Des

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<v Speaker>Moines has quite a bit to offer in terms of

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<v Speaker>innovation and entrepreneurship. So it's kind of nice to see

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<v Speaker>a boom coming back in.

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<v Speaker>We've heard from Craig about the path he took and

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<v Speaker>his background leading him to a place like Sabanto. But

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<v Speaker>what's striking to me is that this is a guy

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<v Speaker>who said he never wanted to be back in Iowa,

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<v Speaker>never be back on a farm. And now he's created

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<v Speaker>an agriculture company and is farming full time. I mean,

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<v Speaker>what do you make of that?

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<v Speaker>You know, we've seen a lot of companies in Iowa

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<v Speaker>and Des Moines specifically come out of the agricultural space

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<v Speaker>and a lot of companies providing new innovative solutions to

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<v Speaker>older problems. We've seen recycling companies doing things like plastic recycling.

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<v Speaker>We've seen fertilization companies with different types of fertilization techniques

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<v Speaker>and planters with different planting companies. So Craig is really

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<v Speaker>pioneering his way in that field on the agricultural side

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<v Speaker>of things, using A I and automation to bridge that

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<v Speaker>manual to tech divide,

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<v Speaker>you know, so much evidence of innovation in that sector. So,

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<v Speaker>but I do want to talk about A I for

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<v Speaker>a second because it's everywhere you can't pick up the

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<v Speaker>paper without reading about it. Assuming you actually pick up

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<v Speaker>a paper anymore. But that's a different issue and it's changing,

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<v Speaker>people are talking about it, changing the way we all

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<v Speaker>do business. So do you use A I in your work?

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<v Speaker>We use A I all the time, we use multiple

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<v Speaker>different tools. It's kind of a, a common theme that

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<v Speaker>we're seeing with a lot of businesses actually using A

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<v Speaker>I in different ways to, to bridge that gap between

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<v Speaker>maybe manual processes that they've been doing in the past

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<v Speaker>and completely digitally native processes that they're moving in towards.

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<v Speaker>Even if that's just an email follow up automation when

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<v Speaker>a client checks out or just finding A I chat

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<v Speaker>bots or even call bots that uh someone can call

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<v Speaker>and interact with.

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<v Speaker>Yeah, automation and A I are going to be a

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<v Speaker>huge help for small businesses. One of my clients in

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<v Speaker>particular similar to Craig, their business leads with A I

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<v Speaker>as a solution. They're a telecom provider. And one of

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<v Speaker>the things they provide is an A I detection of

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<v Speaker>safety equipment for schools, organizations, municipalities. So, you know, when

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<v Speaker>you see someone with a fire hazard or, or some

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<v Speaker>sort of uh threat to, you know, the safety of

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<v Speaker>a building,

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<v Speaker>this company is using A I to basically dispatch emergency services.

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<v Speaker>So, Craig's goal with Sabanto is to make up for the

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<v Speaker>lack of human labor and farming where he sees a

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<v Speaker>shortage and that could stoke a lot of people's fear

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<v Speaker>about A I replacing human jobs. What would you say

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<v Speaker>to them? There may be rules that are just moved

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<v Speaker>around in the company. But

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<v Speaker>at the end of the day, you definitely need a

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<v Speaker>person before you can just push A I content out

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<v Speaker>there unless it's pretty much just gathering information. So we

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<v Speaker>see it on our end a lot where the A

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<v Speaker>I will get you really close to the end result

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<v Speaker>that you're looking for. But you still need to do

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<v Speaker>a little bit of manual input. It does a great

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<v Speaker>job with graphics design, things like that as well, but

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<v Speaker>it just still needs a human touch at the end

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<v Speaker>of it to get it ready for production.

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<v Speaker>I tend to agree with you, Sachin. I think we've

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<v Speaker>had other technological revolutions before and there's always been the

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<v Speaker>threat of job eliminations and there always have been some,

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<v Speaker>but it's, they've always created more jobs than they've eliminated.

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<v Speaker>They've just been different. And I think this time will

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<v Speaker>be no different.

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<v Speaker>So, back to Craig, he like Satin knew the problem.

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<v Speaker>Not enough help on the farm and the solution, it's autonomy.

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<v Speaker>If this was a math test, this would be the

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<v Speaker>part where Craig would have to show his work. I'll

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<v Speaker>let him walk you through the steps.

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<v Speaker>So I've written software, done hardware. I have started companies

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<v Speaker>in the past. I knew farmers, I knew what made

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<v Speaker>them tick. And I used to work a lot automating

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<v Speaker>manufacturing plants. If there's anyone that can do this, I

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<v Speaker>can do this.

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<v Speaker>In 2018, I started the company. I went out and

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<v Speaker>leased a 4220 AJ CB tractor and I went out

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<v Speaker>and bought an 18 year old 20 inch planter and

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<v Speaker>I got a CD L that's a commercial driver's license,

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<v Speaker>by the way, Craig got it so he could drive

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<v Speaker>the semi truck to haul his tractor to farms across America.

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<v Speaker>And I spent the winter writing software. I promise I'm tracking.

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<v Speaker>At least I know what a planter is when you

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<v Speaker>start telling me what kind of planter. I confess, I've

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<v Speaker>lost the plot but to anyone who's worked on a farm,

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<v Speaker>I'm assuming they know. Yeah, it's a standard 18 year

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<v Speaker>old 20 inch and we're planting soybeans farmers kind of

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<v Speaker>an uh,

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<v Speaker>a group of people. They, you know, they won't trust

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<v Speaker>anyone to plant corn. The only thing I know about

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<v Speaker>corn is it's supposed to be thigh high by the

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<v Speaker>fourth of July. Uh, yeah, that, that was, you know,

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<v Speaker>back in the thirties or so. But now, you know,

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<v Speaker>now it's typically shoulder high by the fourth of July

0:12:32.619 --> 0:12:36.270
<v Speaker>with corn off the table. Craig went after soybeans, he

0:12:36.280 --> 0:12:38.640
<v Speaker>set his sights on having a minimum viable product to

0:12:38.650 --> 0:12:40.700
<v Speaker>test in the spring of 2019.

0:12:41.270 --> 0:12:43.750
<v Speaker>He spoke to a few people about testing the tractor

0:12:43.760 --> 0:12:44.840
<v Speaker>out on their fields.

0:12:45.760 --> 0:12:51.039
<v Speaker>Agriculture has two degrees of separation. So I swear to God,

0:12:51.049 --> 0:12:53.419
<v Speaker>I can get to any farmer in the US through

0:12:53.429 --> 0:12:56.900
<v Speaker>two people. If you're keeping score, that's four degrees less

0:12:56.909 --> 0:12:59.819
<v Speaker>than Kevin Bacon would need to get to someone. Yeah,

0:13:00.650 --> 0:13:02.260
<v Speaker>I've met him, by the way.

0:13:03.330 --> 0:13:06.510
<v Speaker>Word of Craig's wild autonomous planter spread quickly

0:13:07.400 --> 0:13:10.000
<v Speaker>after about two weeks of word on the street that

0:13:10.010 --> 0:13:13.919
<v Speaker>some crazy guy is gonna stop by with a autonomous

0:13:13.929 --> 0:13:19.229
<v Speaker>tractor and planter and autonomously plant their crops. They were

0:13:19.239 --> 0:13:24.218
<v Speaker>lined up. Craig launched Sabanto on May 3rd 2019. He

0:13:24.229 --> 0:13:26.909
<v Speaker>didn't choose that date because it was some momentous occasion.

0:13:27.260 --> 0:13:29.979
<v Speaker>It was once again all up to the farmers.

0:13:30.919 --> 0:13:35.330
<v Speaker>It was the farmer that told me early May we're

0:13:35.340 --> 0:13:38.150
<v Speaker>going to be planting so you better have everything together.

0:13:38.710 --> 0:13:41.098
<v Speaker>Craig didn't, but he launched anyway,

0:13:42.159 --> 0:13:45.559
<v Speaker>I slept in the uh sleeper of that Peter bilt

0:13:46.239 --> 0:13:48.780
<v Speaker>and there were some cold nights because I didn't have

0:13:48.789 --> 0:13:51.460
<v Speaker>a heater in it, but it was a learning experience.

0:13:51.669 --> 0:13:54.780
<v Speaker>The software was nowhere close to being product. I it

0:13:54.789 --> 0:13:58.179
<v Speaker>was more of a proof of concept. Can this thing run?

0:13:58.469 --> 0:14:01.400
<v Speaker>Craig drove the semi and the tractor planting beans across

0:14:01.409 --> 0:14:02.140
<v Speaker>the Midwest.

0:14:02.530 --> 0:14:04.900
<v Speaker>It was a very rainy spring. So on days he

0:14:04.909 --> 0:14:07.000
<v Speaker>got rained out of planting. He was flying out to

0:14:07.010 --> 0:14:10.000
<v Speaker>California to meet with V CS. Raising money from V

0:14:10.010 --> 0:14:12.280
<v Speaker>CS isn't always easy, but Craig had a good track

0:14:12.289 --> 0:14:13.270
<v Speaker>record to back him up.

0:14:14.250 --> 0:14:18.699
<v Speaker>Everyone saw 640 labs. Kind of an interesting little company

0:14:18.710 --> 0:14:23.590
<v Speaker>that got swallowed up quickly by Monsanto and I was

0:14:23.599 --> 0:14:26.309
<v Speaker>a co founder of that company. And I think that

0:14:26.320 --> 0:14:29.119
<v Speaker>gave me a lot of credibility when getting in front

0:14:29.130 --> 0:14:32.200
<v Speaker>of V CS. Lo and behold, I, I got a

0:14:32.210 --> 0:14:35.090
<v Speaker>term sheet and I closed on a funding round. Craig

0:14:35.099 --> 0:14:37.679
<v Speaker>had squeaked through that first season planting, but if he

0:14:37.690 --> 0:14:40.580
<v Speaker>wanted to make Sabanto succeed, he needed a team.

0:14:42.770 --> 0:14:47.700
<v Speaker>So I went back to Chicago and I convinced five

0:14:47.710 --> 0:14:51.609
<v Speaker>people to leave their perfectly paying job and join me

0:14:51.619 --> 0:14:55.950
<v Speaker>in this quest to take autonomy into agriculture. Did you

0:14:55.960 --> 0:14:57.979
<v Speaker>think after that first season, did you think, you know,

0:14:57.989 --> 0:14:59.940
<v Speaker>I've got something here like it might have been hard

0:14:59.950 --> 0:15:01.929
<v Speaker>work and it might have been, it might have been difficult,

0:15:01.940 --> 0:15:04.700
<v Speaker>but I've, I've got something or you weren't sure I

0:15:04.710 --> 0:15:08.299
<v Speaker>knew all the problems I ran into were solvable

0:15:09.380 --> 0:15:13.849
<v Speaker>and, you know, II I knew I couldn't do it myself.

0:15:14.400 --> 0:15:17.150
<v Speaker>I mean, it was all off the shelf components. It was,

0:15:17.159 --> 0:15:20.690
<v Speaker>you know, a big box sitting in the tractor wires

0:15:20.700 --> 0:15:24.130
<v Speaker>going all over. And the software there was, it was

0:15:24.140 --> 0:15:27.679
<v Speaker>literally command line software. There's still a hell of a

0:15:27.690 --> 0:15:30.070
<v Speaker>lot of development that needed to be done on it. Well,

0:15:30.080 --> 0:15:32.109
<v Speaker>someone who remembers the late seventies and early eighties, I

0:15:32.119 --> 0:15:34.929
<v Speaker>learned to run software on command line. But I think

0:15:34.940 --> 0:15:36.919
<v Speaker>uh I think today that doesn't meet the hurdle, does it?

0:15:37.239 --> 0:15:38.190
<v Speaker>Uh No.

0:15:39.469 --> 0:15:41.549
<v Speaker>So then you got some funding. How much did you raise?

0:15:41.719 --> 0:15:45.070
<v Speaker>$2 million? Ok. So you get some funding, I assume,

0:15:45.080 --> 0:15:47.809
<v Speaker>then you start working on truly products, this and making

0:15:47.820 --> 0:15:51.380
<v Speaker>it sort of fit for purpose and building it out properly.

0:15:51.390 --> 0:15:52.409
<v Speaker>Is that what came next?

0:15:53.210 --> 0:15:58.460
<v Speaker>Yeah, it wasn't necessarily products and it was more of

0:15:58.469 --> 0:16:02.900
<v Speaker>take it to the next level, get it to work reliably.

0:16:03.419 --> 0:16:06.760
<v Speaker>In early fall 2019, 1 of Craig's farmer friends reached

0:16:06.770 --> 0:16:09.900
<v Speaker>out and said that he had 350 acres of land

0:16:09.909 --> 0:16:11.929
<v Speaker>that needed to be seeded with a cover crop for

0:16:11.940 --> 0:16:15.659
<v Speaker>the winter planted after the fall harvest, cover crops, help

0:16:15.669 --> 0:16:18.919
<v Speaker>revitalize the soil and prep it for spring planting again.

0:16:19.239 --> 0:16:20.780
<v Speaker>I thought, well, this is perfect.

0:16:21.210 --> 0:16:23.869
<v Speaker>They were finally able to get started in mid November.

0:16:24.289 --> 0:16:27.780
<v Speaker>Craig experimented with smaller horsepower tractors with his software to

0:16:27.789 --> 0:16:29.349
<v Speaker>see if that helped reliability

0:16:30.500 --> 0:16:34.770
<v Speaker>horsepower equals work divided by time, what autonomy does is

0:16:34.780 --> 0:16:39.520
<v Speaker>it increases time and time is inversely proportional to horsepower.

0:16:39.619 --> 0:16:42.229
<v Speaker>So you increase time, you decrease horsepower.

0:16:43.919 --> 0:16:46.719
<v Speaker>They tested it out on smaller fields before they went

0:16:46.729 --> 0:16:48.500
<v Speaker>to the 350 acre plot.

0:16:49.409 --> 0:16:52.510
<v Speaker>We had an 80 acre field and 6 a.m. in

0:16:52.520 --> 0:16:55.830
<v Speaker>the morning. We're out there, let's get going on this.

0:16:55.840 --> 0:16:57.809
<v Speaker>We should be able to get this done by uh

0:16:57.820 --> 0:17:02.239
<v Speaker>23 o'clock. Right, We left the field at right around

0:17:02.250 --> 0:17:03.070
<v Speaker>2 a.m.

0:17:03.989 --> 0:17:07.180
<v Speaker>and we had only covered about 10 acres

0:17:08.630 --> 0:17:12.729
<v Speaker>this time, we actually practiced before we got there and

0:17:12.739 --> 0:17:16.079
<v Speaker>everything's working fine and we get to the field and

0:17:16.089 --> 0:17:20.399
<v Speaker>nothing is working. The planter won't plant and the engineers

0:17:20.410 --> 0:17:24.050
<v Speaker>are working feverishly trying to fix it and between the

0:17:24.060 --> 0:17:28.540
<v Speaker>path planning, controlling the stamp thing, making sure it goes straight,

0:17:28.550 --> 0:17:32.630
<v Speaker>making sure gps is working. It was really bad. And

0:17:32.859 --> 0:17:34.250
<v Speaker>the six of us

0:17:34.709 --> 0:17:39.899
<v Speaker>went back that night and I know everyone was absolutely frustrated.

0:17:39.910 --> 0:17:42.479
<v Speaker>I remember going to bed at around two o'clock and

0:17:42.660 --> 0:17:46.569
<v Speaker>waking up at four o'clock and thinking to myself, what

0:17:46.579 --> 0:17:49.010
<v Speaker>the hell did I get myself into? We hear that

0:17:49.020 --> 0:17:49.739
<v Speaker>phrase a lot

0:17:51.930 --> 0:17:55.250
<v Speaker>nature as we know runs on its own schedule. Mid

0:17:55.260 --> 0:17:58.319
<v Speaker>November rolled around and it was time to plant 350

0:17:58.329 --> 0:18:00.500
<v Speaker>acres of cover crop, whether Craig and his team were

0:18:00.510 --> 0:18:03.479
<v Speaker>ready to or not. They took their tractors out to

0:18:03.489 --> 0:18:06.089
<v Speaker>rural Illinois to the farm and set up their mobile

0:18:06.099 --> 0:18:08.099
<v Speaker>lab in the tent by the side of the field.

0:18:09.150 --> 0:18:12.500
<v Speaker>You know, 300 is a very large number when you're

0:18:12.510 --> 0:18:16.040
<v Speaker>10 ft wide and, you know, going five mile an hour.

0:18:16.050 --> 0:18:18.979
<v Speaker>So we're doing five acres an hour. And if you think, oh,

0:18:18.989 --> 0:18:21.750
<v Speaker>we'll just run it 24 hours and, you know, it

0:18:21.760 --> 0:18:23.079
<v Speaker>will be done in three days.

0:18:24.530 --> 0:18:27.619
<v Speaker>The guys were laughing, they still laugh about just sitting

0:18:27.630 --> 0:18:31.060
<v Speaker>in this little tent in the, in the late afternoon,

0:18:31.069 --> 0:18:34.449
<v Speaker>about four or five o'clock, it just started snowing and

0:18:34.459 --> 0:18:35.910
<v Speaker>then by,

0:18:37.250 --> 0:18:40.649
<v Speaker>oh, I'd say midnight one o'clock, uh the wind kicked

0:18:40.660 --> 0:18:45.170
<v Speaker>up and it started blizzard if you can imagine just

0:18:45.180 --> 0:18:47.589
<v Speaker>the blowing wind. And then the six of us sitting

0:18:47.599 --> 0:18:51.780
<v Speaker>in this little tent tractor out there still working. Mind you.

0:18:52.079 --> 0:18:55.310
<v Speaker>And there's someone sitting out on the tractor and we

0:18:55.319 --> 0:18:57.369
<v Speaker>would take shifts on who had to sit out on

0:18:57.380 --> 0:19:01.439
<v Speaker>the tractor. We had snow mobile suits and insulated coveralls

0:19:01.449 --> 0:19:04.150
<v Speaker>and whatnot. But someone had to be the poor bastard

0:19:04.160 --> 0:19:05.910
<v Speaker>who had to go out and sit on the tractor

0:19:06.140 --> 0:19:09.160
<v Speaker>for the next hour or two because we didn't have

0:19:09.170 --> 0:19:13.540
<v Speaker>absolute control of the tractor. There was some functionality missing.

0:19:13.739 --> 0:19:16.040
<v Speaker>If it goes over a little hill, we would lose

0:19:16.050 --> 0:19:18.719
<v Speaker>communications with it. And then the person would have to

0:19:18.729 --> 0:19:22.250
<v Speaker>do it manually park the tractor over here and then

0:19:22.260 --> 0:19:24.198
<v Speaker>let's see if we can get a path plan made.

0:19:24.209 --> 0:19:27.319
<v Speaker>And for one reason or another, we were off by

0:19:27.329 --> 0:19:32.000
<v Speaker>2 ft to the left. It was, it was pure hell.

0:19:32.020 --> 0:19:35.079
<v Speaker>And this wasn't just one day. This was over multiple days.

0:19:37.439 --> 0:19:40.910
<v Speaker>I was concerned that some of the guys would not

0:19:40.920 --> 0:19:45.958
<v Speaker>come back the next, next time because this is perhaps

0:19:45.969 --> 0:19:49.020
<v Speaker>the craziest thing they've ever done. Oh, and by the way,

0:19:49.150 --> 0:19:51.500
<v Speaker>all six of them were staying in the farmer's basement.

0:19:51.510 --> 0:19:54.708
<v Speaker>During all of this, two of us got a bed

0:19:54.719 --> 0:19:57.810
<v Speaker>and then the other four of us were sleeping on

0:19:57.819 --> 0:20:01.920
<v Speaker>the floor. The other thing to add insult to injury,

0:20:02.109 --> 0:20:04.979
<v Speaker>the shower, the hot water didn't work on the shower.

0:20:05.250 --> 0:20:07.189
<v Speaker>You know, we didn't want to let the farmer know

0:20:07.199 --> 0:20:10.569
<v Speaker>because he's out doing field work and I don't want

0:20:10.579 --> 0:20:13.819
<v Speaker>to bother him. So we didn't say anything about it.

0:20:13.829 --> 0:20:16.429
<v Speaker>But then we were taking cold showers and living in

0:20:16.439 --> 0:20:18.920
<v Speaker>a basement and then trying to, uh trying to get

0:20:18.930 --> 0:20:22.010
<v Speaker>this damn thing to work in the end, the 350

0:20:22.030 --> 0:20:24.839
<v Speaker>acre field they thought would take three days. It took

0:20:24.849 --> 0:20:25.589
<v Speaker>three weeks.

0:20:26.589 --> 0:20:29.469
<v Speaker>We felt defeated. There was a lot of fear, uncertainty

0:20:29.479 --> 0:20:30.170
<v Speaker>and doubt.

0:20:31.079 --> 0:20:34.819
<v Speaker>I'm sure everyone in the company had reservations about. Is

0:20:34.829 --> 0:20:37.680
<v Speaker>this going to work? Is this going to get better?

0:20:37.930 --> 0:20:40.140
<v Speaker>Like why am I doing this? Did you think about

0:20:40.150 --> 0:20:44.250
<v Speaker>giving up at the time? No, no,

0:20:45.300 --> 0:20:46.359
<v Speaker>I don't quit.

0:20:47.310 --> 0:20:49.489
<v Speaker>When did it come along far enough that you thought? Ok,

0:20:49.500 --> 0:20:55.129
<v Speaker>I've cracked this nut in 2021. We were doing tillage

0:20:55.140 --> 0:21:00.050
<v Speaker>just west of Chicago. We ran at 48 hours nonstop.

0:21:00.300 --> 0:21:03.030
<v Speaker>We let this thing loose in a, oh God, I

0:21:03.040 --> 0:21:06.969
<v Speaker>think it was 480 acre field and this thing ran

0:21:06.979 --> 0:21:10.409
<v Speaker>day in day out, never stopped. And

0:21:10.969 --> 0:21:13.099
<v Speaker>at the time I looked at this and I'm like,

0:21:13.109 --> 0:21:15.399
<v Speaker>I started to see light at the end of the tunnel,

0:21:15.439 --> 0:21:19.379
<v Speaker>we had path planning working. We were monitoring all aspects

0:21:19.390 --> 0:21:22.379
<v Speaker>of the tractor. We were holding the line within a

0:21:22.390 --> 0:21:25.369
<v Speaker>good one inch, two inches and it was just a

0:21:25.380 --> 0:21:29.020
<v Speaker>matter of keeping fuel in it. Craig had finally figured

0:21:29.030 --> 0:21:33.050
<v Speaker>it out. And since 2021 Sabanto has continued to grow,

0:21:33.380 --> 0:21:37.099
<v Speaker>their autonomous product is called steward and it supports 19

0:21:37.109 --> 0:21:38.969
<v Speaker>different tractor models. As of today,

0:21:40.260 --> 0:21:43.790
<v Speaker>we have 40 employees right now, split between Iowa and

0:21:43.800 --> 0:21:47.319
<v Speaker>Chicago and we have a good 30 to 40 customers

0:21:47.329 --> 0:21:51.869
<v Speaker>right now. Farming operations all scattered throughout the US. We

0:21:51.880 --> 0:21:55.149
<v Speaker>have quite a lot in Florida and Georgia starting to

0:21:55.160 --> 0:21:58.160
<v Speaker>do a lot in Texas right now. From California to

0:21:58.170 --> 0:22:00.959
<v Speaker>New York, Texas, to Wisconsin.

0:22:01.469 --> 0:22:05.170
<v Speaker>Oh, wow. So really, truly nationwide. Do you retrofit someone's tractor?

0:22:05.180 --> 0:22:07.069
<v Speaker>Did you send someone out to install this on the

0:22:07.079 --> 0:22:08.609
<v Speaker>tractor they already have or do you just send them

0:22:08.619 --> 0:22:10.099
<v Speaker>a kit and they do it themselves? How does this

0:22:10.109 --> 0:22:11.000
<v Speaker>actually work?

0:22:11.800 --> 0:22:16.930
<v Speaker>So, we have dealers throughout the US and normally they

0:22:16.939 --> 0:22:22.459
<v Speaker>do the installation and we obviously help with the installation.

0:22:22.729 --> 0:22:26.260
<v Speaker>So we get to a farming operation and we do

0:22:26.270 --> 0:22:29.469
<v Speaker>a demo at this point in time, we actually haul

0:22:29.479 --> 0:22:33.099
<v Speaker>a tractor onto their premises and let them use it

0:22:33.109 --> 0:22:36.979
<v Speaker>for two weeks. And once they get hooked,

0:22:37.579 --> 0:22:41.040
<v Speaker>whatever tractor that they have, what we do is we

0:22:41.050 --> 0:22:44.438
<v Speaker>install the autonomy system on that tractor and then they

0:22:44.449 --> 0:22:48.679
<v Speaker>can remotely control and monitor that tractor perform field operations.

0:22:49.199 --> 0:22:51.300
<v Speaker>I did a little bit of research before this interview

0:22:51.310 --> 0:22:52.550
<v Speaker>and I learned all about

0:22:53.040 --> 0:22:56.319
<v Speaker>the technology investments that the big guys are making. The

0:22:56.329 --> 0:22:59.379
<v Speaker>deers of the world are making in terms of autonomous tractors.

0:22:59.390 --> 0:23:01.349
<v Speaker>You know, these big combines that can do all the

0:23:01.359 --> 0:23:03.949
<v Speaker>stuff that can laser the weeds and whatever. But I

0:23:03.959 --> 0:23:06.099
<v Speaker>also learned all about the right to repair battles that

0:23:06.109 --> 0:23:10.130
<v Speaker>are going on between farmers and manufacturers. So I'm curious,

0:23:10.410 --> 0:23:12.760
<v Speaker>does your solution play into that at all? You know,

0:23:12.770 --> 0:23:15.469
<v Speaker>the ability to sort of keep your tractor and repair

0:23:15.479 --> 0:23:17.069
<v Speaker>it and do what you want and then have some

0:23:17.079 --> 0:23:19.219
<v Speaker>of these autonomous features just layered on at a, at

0:23:19.229 --> 0:23:20.270
<v Speaker>a lower cost.

0:23:20.989 --> 0:23:23.380
<v Speaker>I'm all for the right to repair. I'll, I'll be

0:23:23.390 --> 0:23:27.109
<v Speaker>honest with you. If someone could fix something remotely without

0:23:27.119 --> 0:23:30.819
<v Speaker>me getting involved, I'm all for that. And we give

0:23:30.829 --> 0:23:34.260
<v Speaker>them the tools in order to do that. But it

0:23:34.270 --> 0:23:36.119
<v Speaker>is an interesting alternative. You know, you can go to

0:23:36.130 --> 0:23:38.369
<v Speaker>one of the big manufacturers and buy this giant very

0:23:38.380 --> 0:23:41.530
<v Speaker>expensive smart tractor or smart seater or smart whatever or

0:23:41.540 --> 0:23:43.420
<v Speaker>you can take the equipment that you already have and

0:23:43.430 --> 0:23:46.170
<v Speaker>give you a call and make it smart. Your next

0:23:46.229 --> 0:23:49.119
<v Speaker>generation tractors are sitting in your machine shed.

0:23:50.390 --> 0:23:52.849
<v Speaker>I just love that idea so much. The next generation

0:23:52.859 --> 0:23:55.670
<v Speaker>tractor is the one you already own. I think a

0:23:55.680 --> 0:23:58.209
<v Speaker>lot of people stumble onto great ideas that seem so

0:23:58.219 --> 0:24:00.849
<v Speaker>totally out of the blue, but make perfect sense. Once

0:24:00.859 --> 0:24:03.489
<v Speaker>you look at combining some tools that no one's considered

0:24:04.790 --> 0:24:08.079
<v Speaker>as a result, Craig's business has grown considerably and as

0:24:08.089 --> 0:24:10.729
<v Speaker>part of that growth, he's moving into a new segment

0:24:10.739 --> 0:24:11.369
<v Speaker>of our bank

0:24:12.530 --> 0:24:15.500
<v Speaker>for our listeners, I lead small business here at Chase

0:24:15.750 --> 0:24:19.139
<v Speaker>and Brian Lamb, my friend and partner is the northeast segment.

0:24:19.150 --> 0:24:21.948
<v Speaker>Head for the middle market. We work closely together to

0:24:21.959 --> 0:24:23.929
<v Speaker>take care of those businesses who are growing to the

0:24:23.939 --> 0:24:26.859
<v Speaker>next level. And so I wanted to bring Brian in

0:24:26.869 --> 0:24:30.739
<v Speaker>to give people a sense for what that means. So Brian,

0:24:30.750 --> 0:24:32.069
<v Speaker>it's great to have you on the show. Thanks for

0:24:32.079 --> 0:24:32.300
<v Speaker>being

0:24:32.310 --> 0:24:32.698
<v Speaker>here,

0:24:32.709 --> 0:24:34.349
<v Speaker>Ben. It's good to see you. Good to be here.

0:24:34.359 --> 0:24:37.560
<v Speaker>And uh thanks for having me. It's exciting to see

0:24:38.020 --> 0:24:42.680
<v Speaker>companies progress in their growth trajectory and there's some common

0:24:42.689 --> 0:24:46.050
<v Speaker>themes and patterns I I maybe can touch on first

0:24:46.060 --> 0:24:48.569
<v Speaker>you hear the term middle market. What does that mean?

0:24:48.930 --> 0:24:52.510
<v Speaker>Generally it means first that you have reached a certain

0:24:52.520 --> 0:24:57.290
<v Speaker>size and complexity size could be driven by revenue. Maybe

0:24:57.300 --> 0:25:00.449
<v Speaker>you've got, you know, go from 10 million to 20 million.

0:25:00.459 --> 0:25:05.239
<v Speaker>That's one example. Also, complexity, complexity could be defined as,

0:25:05.609 --> 0:25:08.500
<v Speaker>you know, the geographies that you cover. Maybe it used

0:25:08.510 --> 0:25:10.319
<v Speaker>to be a city and a county and now it's

0:25:10.329 --> 0:25:13.359
<v Speaker>states or maybe even countries. The other part of the

0:25:13.369 --> 0:25:17.520
<v Speaker>complexity is your capital structure. Maybe historically had a small

0:25:17.530 --> 0:25:19.919
<v Speaker>line of credit or a credit card or you were

0:25:19.930 --> 0:25:23.609
<v Speaker>able to actually build that business with friends and family capital.

0:25:23.619 --> 0:25:26.770
<v Speaker>But now you're moving to different types of capital and

0:25:26.780 --> 0:25:29.438
<v Speaker>different types of financial needs. If I think about the

0:25:29.449 --> 0:25:30.359
<v Speaker>transition and

0:25:30.599 --> 0:25:32.849
<v Speaker>maybe one of the one or two of the things

0:25:32.859 --> 0:25:35.869
<v Speaker>I see companies that do it well. And by the way,

0:25:35.880 --> 0:25:38.579
<v Speaker>I got to pause and applaud what Craig and Sabanto

0:25:38.589 --> 0:25:41.129
<v Speaker>to have, have done, they've done a fantastic job of

0:25:41.140 --> 0:25:45.000
<v Speaker>scaling and growing. What I see is a challenge though,

0:25:45.010 --> 0:25:47.979
<v Speaker>I would tell you is when companies don't anticipate some

0:25:47.989 --> 0:25:51.280
<v Speaker>of those needs that may happen when they get much bigger,

0:25:51.349 --> 0:25:54.650
<v Speaker>I'll give you a couple of examples. One, their working

0:25:54.660 --> 0:25:58.250
<v Speaker>capital needs change dramatically, right? When, when you own a

0:25:58.295 --> 0:26:01.275
<v Speaker>small business, there's the phrase, hey, making Payroll where it's

0:26:01.285 --> 0:26:04.834
<v Speaker>not always a figure of speech, you know, but managing

0:26:04.844 --> 0:26:08.385
<v Speaker>your working capital and the cash collection cycle can become

0:26:08.395 --> 0:26:10.675
<v Speaker>very complex as you get much bigger. And we see

0:26:10.685 --> 0:26:14.155
<v Speaker>a lot of companies struggle there. The second thing believe

0:26:14.165 --> 0:26:16.655
<v Speaker>it or not is talent, right? You know, Ben, you

0:26:16.665 --> 0:26:19.275
<v Speaker>and I always talk about the talent that you may

0:26:19.285 --> 0:26:21.545
<v Speaker>have started with when you were a small company may

0:26:21.555 --> 0:26:24.435
<v Speaker>need to look different. The folks that are really helping

0:26:24.444 --> 0:26:25.905
<v Speaker>you run and scale the business

0:26:26.410 --> 0:26:29.829
<v Speaker>talent becomes a really big consideration. And then partners

0:26:30.650 --> 0:26:34.010
<v Speaker>who are the partners, who are the advisors, your accountant,

0:26:34.020 --> 0:26:38.119
<v Speaker>your lawyer, your bank, the in the institutions that ultimately

0:26:38.130 --> 0:26:41.389
<v Speaker>help you make sound decisions for growth. You have to

0:26:41.400 --> 0:26:43.750
<v Speaker>think about those as well as you scale and grow.

0:26:44.189 --> 0:26:46.800
<v Speaker>Yeah. The other thing I I often talk about is

0:26:47.050 --> 0:26:50.430
<v Speaker>a combination of complexity and scale, particularly with respect to your,

0:26:50.439 --> 0:26:53.359
<v Speaker>your staff. I always say there are two big inflection

0:26:53.369 --> 0:26:56.869
<v Speaker>points when you are growing a staff, when you have

0:26:57.469 --> 0:27:00.290
<v Speaker>up to 50 people or so, you can really know

0:27:00.300 --> 0:27:02.819
<v Speaker>all of them and you know which ones are good

0:27:02.829 --> 0:27:04.420
<v Speaker>and which ones are less good and which ones have,

0:27:04.430 --> 0:27:07.458
<v Speaker>which quirks and there's an inflection. Once you go beyond

0:27:07.469 --> 0:27:10.010
<v Speaker>50 you can't know all of them. It's tough up

0:27:11.040 --> 0:27:13.479
<v Speaker>to about 200. You can still know who all of

0:27:13.489 --> 0:27:16.800
<v Speaker>them are. You don't know them. You probably only know

0:27:16.810 --> 0:27:19.699
<v Speaker>that about 50 but you know who the 200 are.

0:27:20.199 --> 0:27:22.920
<v Speaker>And then once you hit 200 you see people and

0:27:22.930 --> 0:27:24.699
<v Speaker>you don't know if they work for you or not.

0:27:24.849 --> 0:27:28.209
<v Speaker>And that's a really different mindset around your business because

0:27:28.219 --> 0:27:31.030
<v Speaker>you really are relying on your leaders to know those

0:27:31.040 --> 0:27:33.920
<v Speaker>employees and to cascade your message. And so I always

0:27:33.930 --> 0:27:35.530
<v Speaker>tell people that you, that you need to think about

0:27:35.540 --> 0:27:38.569
<v Speaker>those two inflection points 5200. Like when do I stop

0:27:38.579 --> 0:27:40.989
<v Speaker>knowing everyone personally? And when do I stop knowing who

0:27:41.000 --> 0:27:41.660
<v Speaker>everyone is?

0:27:42.030 --> 0:27:42.099
<v Speaker>I

0:27:42.109 --> 0:27:43.500
<v Speaker>love it be because

0:27:44.420 --> 0:27:48.800
<v Speaker>I think those are really interesting goalposts to think about.

0:27:49.140 --> 0:27:50.800
<v Speaker>And it goes back to something you and I always

0:27:50.810 --> 0:27:54.280
<v Speaker>talk about, which is culture when you built the company,

0:27:54.290 --> 0:27:56.939
<v Speaker>when you started it and you began to grow, there

0:27:56.949 --> 0:27:59.959
<v Speaker>was a culture, there were values, there were principles that

0:27:59.969 --> 0:28:03.160
<v Speaker>you as the leader as the founder believed in. Well,

0:28:03.170 --> 0:28:06.369
<v Speaker>you don't want to lose those as you grow and

0:28:06.380 --> 0:28:09.359
<v Speaker>so you can make all of these other really smart

0:28:09.369 --> 0:28:11.479
<v Speaker>business decisions. But to your point

0:28:11.790 --> 0:28:15.159
<v Speaker>as you start having hundreds of employees, one of the

0:28:15.170 --> 0:28:17.869
<v Speaker>things that you most importantly want to focus on and

0:28:17.880 --> 0:28:21.169
<v Speaker>protect is the very culture that helped you be successful

0:28:21.180 --> 0:28:24.050
<v Speaker>from the beginning when you grow, slow down

0:28:24.890 --> 0:28:28.609
<v Speaker>and just realize what got you to that point, you

0:28:28.619 --> 0:28:31.179
<v Speaker>may have to do some things differently to continue to

0:28:31.189 --> 0:28:31.989
<v Speaker>scale and grow.

0:28:32.000 --> 0:28:34.780
<v Speaker>Have you ever seen in these growing companies? A founder

0:28:34.790 --> 0:28:37.650
<v Speaker>and CEO actually bring in and hire a CEO and

0:28:37.660 --> 0:28:39.390
<v Speaker>say I'm going to do the things that I like

0:28:39.400 --> 0:28:40.780
<v Speaker>doing and I'm good at, but I'm going to have

0:28:40.790 --> 0:28:42.709
<v Speaker>a professional run. The actual uh do you see

0:28:42.895 --> 0:28:43.175
<v Speaker>that?

0:28:43.255 --> 0:28:45.255
<v Speaker>I, I, Ben, I would tell you, I see it

0:28:45.265 --> 0:28:48.564
<v Speaker>more often than not. Actually, when a company has reached

0:28:48.574 --> 0:28:53.064
<v Speaker>a certain inflection point, they've grown, maybe they have international

0:28:53.074 --> 0:28:57.224
<v Speaker>services and products now, maybe they've expanded into different product

0:28:57.234 --> 0:29:01.564
<v Speaker>lines which requires different expertise to your point. They are

0:29:01.574 --> 0:29:04.805
<v Speaker>a much bigger people business. Now, they've got 1000 employees

0:29:04.814 --> 0:29:06.064
<v Speaker>instead of 100.

0:29:06.459 --> 0:29:11.390
<v Speaker>I have seen investors and founders bring in a new

0:29:11.400 --> 0:29:15.069
<v Speaker>CEO that is a better fit, I guess I would

0:29:15.079 --> 0:29:18.000
<v Speaker>say is the word. It doesn't mean that that founder

0:29:18.010 --> 0:29:21.479
<v Speaker>CEO investor doesn't add tremendous value

0:29:21.489 --> 0:29:23.500
<v Speaker>and they still own and they still

0:29:23.520 --> 0:29:24.109
<v Speaker>own the business. And

0:29:24.119 --> 0:29:27.000
<v Speaker>in almost every scenario, they still own the business.

0:29:27.390 --> 0:29:30.150
<v Speaker>But they have found someone that's a good fit for

0:29:30.160 --> 0:29:33.890
<v Speaker>where that company is in the life cycle of their growth.

0:29:34.140 --> 0:29:36.770
<v Speaker>And I got to tell you when I've seen that happen,

0:29:37.099 --> 0:29:39.010
<v Speaker>I've seen that company thrive and grow.

0:29:39.290 --> 0:29:42.140
<v Speaker>One of the things that I often hear clients talk

0:29:42.150 --> 0:29:44.530
<v Speaker>about as they transition up to the middle market is

0:29:44.699 --> 0:29:47.329
<v Speaker>I need to build infrastructure. I'm running this thing on

0:29:47.339 --> 0:29:50.050
<v Speaker>a shoestring. I'm running this thing informally. I've got to

0:29:50.060 --> 0:29:53.380
<v Speaker>build infrastructure to scale this thing. What does that actually mean? Yeah.

0:29:53.390 --> 0:29:55.689
<v Speaker>No, it's important infrastructure

0:29:56.000 --> 0:29:57.900
<v Speaker>could mean things like

0:29:58.619 --> 0:30:04.819
<v Speaker>investing in technology to improve automation, right? Maybe before manual

0:30:04.829 --> 0:30:07.800
<v Speaker>processes because of the size and scale of your business

0:30:08.099 --> 0:30:12.599
<v Speaker>really made sense financially, you know, strategy wise. But as

0:30:12.609 --> 0:30:15.989
<v Speaker>you get much bigger and you become more complex,

0:30:16.760 --> 0:30:20.979
<v Speaker>having digital capabilities for your teams and your clients will matter,

0:30:21.390 --> 0:30:26.189
<v Speaker>automating processes to streamline how you do business and remain

0:30:26.250 --> 0:30:31.089
<v Speaker>if you will efficient, become important. Another example of infrastructure

0:30:31.099 --> 0:30:35.569
<v Speaker>might be cybersecurity, just protecting the value and the assets

0:30:35.579 --> 0:30:38.400
<v Speaker>that you've created. I see this all the time at

0:30:38.410 --> 0:30:39.589
<v Speaker>JP Morgan Chase. And

0:30:39.920 --> 0:30:41.900
<v Speaker>one of the things I try to get folks to

0:30:41.910 --> 0:30:46.400
<v Speaker>think about is even though cyber and fraud, those may

0:30:46.410 --> 0:30:48.890
<v Speaker>be things that you're aware of. Are you doing enough

0:30:48.900 --> 0:30:52.380
<v Speaker>in your infrastructure to harden the assets and maybe one

0:30:52.390 --> 0:30:55.780
<v Speaker>other infrastructure point I would raise as you think about

0:30:55.790 --> 0:30:57.180
<v Speaker>your scale and your growth

0:30:58.130 --> 0:31:00.589
<v Speaker>is the quality of your financial statements

0:31:01.459 --> 0:31:08.160
<v Speaker>and your ability to produce timely reliable reporting, both operational

0:31:08.170 --> 0:31:12.640
<v Speaker>reporting and financial reporting. It will help you make better

0:31:12.650 --> 0:31:16.719
<v Speaker>decisions that will better inform your partners and advisor that

0:31:16.729 --> 0:31:20.079
<v Speaker>you work with on a regular basis. And principally I

0:31:20.089 --> 0:31:22.839
<v Speaker>call it helping you look around the corner, right? You

0:31:22.849 --> 0:31:26.239
<v Speaker>may see things in those operational and financial reports

0:31:26.510 --> 0:31:30.329
<v Speaker>that help inform what your next best decision might be.

0:31:30.339 --> 0:31:33.069
<v Speaker>I tell you what it's exciting to see those leaders

0:31:33.079 --> 0:31:36.930
<v Speaker>that can make that sustainable transition, right? And there are

0:31:36.939 --> 0:31:39.560
<v Speaker>a couple of key I guess elements I see or

0:31:39.569 --> 0:31:42.890
<v Speaker>dimensions I see in those types of leaders. One they

0:31:42.900 --> 0:31:43.329
<v Speaker>just

0:31:44.089 --> 0:31:48.619
<v Speaker>always are resisting complacency. The idea that you have reached

0:31:48.630 --> 0:31:52.359
<v Speaker>a certain plateau and that you can cruise or that

0:31:52.369 --> 0:31:55.880
<v Speaker>you think you've done enough that your competitive advantage will stand.

0:31:55.890 --> 0:31:58.680
<v Speaker>The test of time. Second is diversification.

0:31:59.410 --> 0:32:02.949
<v Speaker>So the products and services or the geography or the

0:32:02.959 --> 0:32:07.010
<v Speaker>client base that you built over the years, I would

0:32:07.020 --> 0:32:12.349
<v Speaker>encourage folks to be restless about continuing to diversify their business. Right.

0:32:12.359 --> 0:32:15.910
<v Speaker>Maybe there's new products and services. Maybe you, you've historically

0:32:15.920 --> 0:32:17.839
<v Speaker>grown through acquisition and you're going to do a better

0:32:17.849 --> 0:32:21.619
<v Speaker>job through organic. Look at your share of wallet, right?

0:32:21.839 --> 0:32:24.229
<v Speaker>Even though you've got a great client base, could you

0:32:24.239 --> 0:32:26.819
<v Speaker>deepen that share of wallet? Could you take a bigger

0:32:26.829 --> 0:32:28.310
<v Speaker>percentage of their spin and

0:32:28.540 --> 0:32:33.160
<v Speaker>they do business with you? Your margins? There's always an

0:32:33.170 --> 0:32:37.160
<v Speaker>opportunity to look at margin improvement even as you grow.

0:32:37.329 --> 0:32:41.010
<v Speaker>Can you grow profitably in a very efficient way? And

0:32:41.020 --> 0:32:43.760
<v Speaker>maybe the last thing I see leaders do is kind

0:32:43.770 --> 0:32:45.880
<v Speaker>of a deep focus on productivity,

0:32:46.359 --> 0:32:49.640
<v Speaker>right? They've gotten to a really big size and scale,

0:32:49.689 --> 0:32:52.910
<v Speaker>they've continued to grow. And now what could they do

0:32:52.920 --> 0:32:57.829
<v Speaker>for every incremental dollar they invest? How productive is that individual?

0:32:57.839 --> 0:33:01.270
<v Speaker>Is that investment? And is it driving the returns that

0:33:01.280 --> 0:33:03.260
<v Speaker>a business owner would expect? And so

0:33:03.829 --> 0:33:06.560
<v Speaker>when I think about those leaders that kind of bend

0:33:06.569 --> 0:33:08.589
<v Speaker>the curve, those are some of the key elements I

0:33:08.599 --> 0:33:09.819
<v Speaker>see them demonstrate,

0:33:09.979 --> 0:33:11.609
<v Speaker>it seems like what reads through all that though is

0:33:11.619 --> 0:33:12.500
<v Speaker>continued hunger.

0:33:13.119 --> 0:33:16.949
<v Speaker>It's really special to see the small businesses thrive and

0:33:16.959 --> 0:33:21.069
<v Speaker>grow and move into the middle market and beyond. And

0:33:21.079 --> 0:33:23.660
<v Speaker>so that is at the end of the day, one

0:33:23.670 --> 0:33:26.170
<v Speaker>of the most important elements of this country is a

0:33:26.189 --> 0:33:29.329
<v Speaker>chance for us to do business and see companies grow.

0:33:32.869 --> 0:33:34.770
<v Speaker>And finally, Sachin, I want to bring you back in.

0:33:34.780 --> 0:33:38.050
<v Speaker>Here is Craig's story unusual and that he's been successful

0:33:38.060 --> 0:33:39.920
<v Speaker>in an area that the big companies have been going

0:33:39.930 --> 0:33:42.760
<v Speaker>after or do you see that frequently? Craig's story definitely

0:33:42.770 --> 0:33:46.849
<v Speaker>isn't unique. I'd say in terms of entrepreneurs creating more

0:33:46.859 --> 0:33:49.369
<v Speaker>efficient ways to do things in an older industry such

0:33:49.380 --> 0:33:53.630
<v Speaker>as agriculture. There's definitely a lot of entrepreneurship and young

0:33:53.640 --> 0:33:56.670
<v Speaker>companies that are making waves in the industry where generally

0:33:56.680 --> 0:33:58.239
<v Speaker>you see big players for the most part.

0:33:58.760 --> 0:34:01.219
<v Speaker>Uh Craig touched on something that I think is important,

0:34:01.229 --> 0:34:03.819
<v Speaker>which is in a world that is increasingly tech driven

0:34:04.239 --> 0:34:05.739
<v Speaker>where you, you know, you're in a part of the

0:34:05.750 --> 0:34:08.550
<v Speaker>country that doesn't necessarily have the depth of tech talent

0:34:08.560 --> 0:34:10.899
<v Speaker>that a Chicago or a Silicon Valley or New York

0:34:10.909 --> 0:34:13.638
<v Speaker>City has. How does the region and how do the

0:34:13.649 --> 0:34:16.459
<v Speaker>entrepreneurs in the region face into that? What does that

0:34:16.469 --> 0:34:19.060
<v Speaker>feel like on the ground? He's definitely right about that,

0:34:19.070 --> 0:34:21.859
<v Speaker>the talent locally, especially with universities and things like that.

0:34:21.870 --> 0:34:24.020
<v Speaker>Even though Iowa State and Iowa are great, they have

0:34:24.030 --> 0:34:26.100
<v Speaker>great tech programs, great for your science programs.

0:34:26.320 --> 0:34:29.060
<v Speaker>I think family history and the culture of the state

0:34:29.070 --> 0:34:31.750
<v Speaker>really breeds a lot of people that are still lean

0:34:31.760 --> 0:34:34.840
<v Speaker>in the agricultural side of things. But when it comes

0:34:34.850 --> 0:34:37.530
<v Speaker>to the tech side of things, we realize that there

0:34:37.540 --> 0:34:39.350
<v Speaker>may not be such a big talent pool here in

0:34:39.360 --> 0:34:41.939
<v Speaker>the Midwest or in Des Moines or in Iowa specifically.

0:34:42.219 --> 0:34:45.979
<v Speaker>So people will pull from Chicago or bigger markets where

0:34:45.989 --> 0:34:48.919
<v Speaker>there are more intense tech pools and kind of marry

0:34:48.929 --> 0:34:52.850
<v Speaker>those two different industries on how to communicate the tech

0:34:52.860 --> 0:34:54.790
<v Speaker>side of things with what your project on the ground

0:34:54.800 --> 0:34:56.929
<v Speaker>is going to be. What do you think are, are

0:34:56.939 --> 0:35:00.219
<v Speaker>the advantages to owning and starting a business in a

0:35:00.229 --> 0:35:01.439
<v Speaker>place like Iowa?

0:35:01.739 --> 0:35:05.009
<v Speaker>I can speak to Des Moines specifically. The entrepreneurial community

0:35:05.020 --> 0:35:07.709
<v Speaker>here is really vibrant, it's really thriving and there's so

0:35:07.719 --> 0:35:11.679
<v Speaker>many cool local resources that you can tie into to

0:35:11.889 --> 0:35:15.310
<v Speaker>get either well networked or find funding and being from

0:35:15.320 --> 0:35:18.089
<v Speaker>a smaller town and a smaller demographic in a, in

0:35:18.100 --> 0:35:20.649
<v Speaker>a geographical area, you definitely get to know each other

0:35:20.659 --> 0:35:23.320
<v Speaker>a little bit better. So the ability to connect with

0:35:23.330 --> 0:35:25.439
<v Speaker>people that you're trying to get in contact with. It's

0:35:25.449 --> 0:35:28.529
<v Speaker>a shorter connection. Generally, it's also even a personal connection

0:35:28.540 --> 0:35:29.800
<v Speaker>where you can find someone that

0:35:30.129 --> 0:35:33.090
<v Speaker>know someone personally that you can get in contact with.

0:35:33.100 --> 0:35:35.439
<v Speaker>So it's becoming a little bit more of a cultural

0:35:35.449 --> 0:35:40.689
<v Speaker>hub for smaller agricultural companies and smaller start ups. I

0:35:40.699 --> 0:35:43.199
<v Speaker>hope that continues that that trend would be, would be

0:35:43.209 --> 0:35:44.770
<v Speaker>really cool to see flourish over here.

0:35:47.159 --> 0:35:50.159
<v Speaker>Thanks so much for listening to this episode of the unshakeable.

0:35:50.469 --> 0:35:53.389
<v Speaker>And thank you to Craig Rupp Sachin Sehgal and Brian

0:35:53.399 --> 0:35:56.639
<v Speaker>Lamb for speaking with us today. If you like this episode,

0:35:56.649 --> 0:35:58.929
<v Speaker>please rate and review it. And if you know someone

0:35:58.939 --> 0:36:00.949
<v Speaker>who may like the series, please tell them about it.

0:36:01.169 --> 0:36:03.850
<v Speaker>Next episode, we'll hear from an entrepreneur who started a

0:36:03.860 --> 0:36:07.379
<v Speaker>company with the full backing of her previous employer. Not

0:36:07.389 --> 0:36:11.310
<v Speaker>just emotional support either they guaranteed her clients and contracts.

0:36:11.320 --> 0:36:12.979
<v Speaker>If she started her own company,

0:36:13.270 --> 0:36:16.820
<v Speaker>we'll be speaking with Quanetta McNeal CEO of House of

0:36:16.830 --> 0:36:19.049
<v Speaker>Logistics out of Birmingham, Alabama.

0:36:20.040 --> 0:36:23.250
<v Speaker>I'm Ben Walter and this is The Unshakeables from Chase

0:36:23.260 --> 0:36:26.139
<v Speaker>For Business and Ruby Studio from iHeartMedia.