Building Your Business On Culture & Hiring The Right People

Welcome to the Rialto Marketing podcast. Today's episode is a revenue acceleration series interview where we talk to seven figure B2B professional service firm owners that are actively trying to grow their business and get to the next level. We talk about the good, the bad and the ugly so that you can learn from their experience.


Join Tim Fitzpatrick and Tim Pabich for this week’s episode of The Rialto Marketing Podcast!

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Building Your Business On Culture & Hiring The Right People

Tim Fitzpatrick
Welcome to the Rialto Marketing podcast. Today's episode is a revenue acceleration series interview where we talk to seven figure B2B professional service firm owners that are actively trying to grow their business and get to the next level. We talk about the good, the bad and the ugly so that you can learn from their experience. Hi, I am Tim Fitzpatrick with Rialto Marketing, where we believe marketing shouldn't be difficult and you must remove your revenue roadblocks to accelerate revenue growth. Thank you so much for taking the time to tune in. Super excited to have Tim Pabich from Magnitech with me today. Tim, welcome. Thanks for being here.

Tim Pabich
Thanks, Tim. Thanks for having me.

Tim Fitzpatrick
Yes, it's not often I get to talk to another Tim.

Tim Pabich
That's what I said when we first met. I said our moms both had good taste.

Tim Fitzpatrick
Yes, that's right. I love it. Before we dig into your journey, what you're doing with Magnitech, I want to ask you just a few just quick rapid fire questions to get things kicked off. Very quickly, what do you do and how long have you been doing it?

Tim Pabich
I'm the founder and CEO of Magnitech, which is an IT service provider. We specialize in outsourced IT department, help desk, cyber security, business continuity and disaster recovery, cloud technologies, Microsoft 365, Azure, and all those things. So operationally, we are the IT department for small, midsize, and even some enterprise relationships in terms of moving licensing and stuff. So rather than hiring your IT guy in payroll that you would hire us, then we can bring the entire IT department for a flat fee.

Tim Fitzpatrick
And how long have you been doing that?

Tim Pabich
12 years now.

Tim Fitzpatrick
Congratulations, man. Thank you. That's quite a long time.

Tim Pabich
Yes, it is.

Tim Fitzpatrick
In that time, what's the most important lesson you've learned in running your business?

Tim Pabich
Trust others, believe in them, coach them. They're here to work for Magnitech. I guess you can say they work for me, but I also work for them.

Tim Fitzpatrick
Yeah

Tim Pabich
It would be in my best interest to elevate them and try to get them as productive as possible because it helps me.

Tim Fitzpatrick
In those 12 years, I know you've had some ups, some downs. When you hit those tough periods, do you have any mantra or something motivational that you tell yourself, share with your team to push through those times?

Tim Pabich
We just try not to get away from our values. We're very open about what those are. Any new colleague that comes to work here is given that during their orientation with HR. They have to understand this is what we believe in. So we fall back on those things all the time, in good times and in bad. We continue to practice those things. Of course, what's on everybody's mind right now is what might be going on with the economy and banks and whatnot. And so it's important that we emphasize on retention, make sure that we keep our clients happy. But at the same time, let's not be shy. Let's continue to go out there and try to get more clients as well and just really not change too much of what we're doing operationally. My job is to try to keep things cool and loose here. So we try not to dwell too heavily on the negatives. We do spend time myself and some of my managers, we definitely huddle about some things that might be considered a threat, but we continue to talk through those challenges as problem solvers and try to keep everybody positive. I think that's the most important thing.

The Importance of Delegating Tasks to Scale a Business

Tim Fitzpatrick
One of the things that we talked about in the pre interview as we prepped for this was that you've pulled yourself out of most of the day to day operations for the company. Can you just share with us how you went through this process and what's still not perfect?

Tim Pabich
As the founder of the company, I did everything. I wore every hat. I was the project manager, I was the service tech, I was the marketing, I was the sales, billing, HR for myself. But I think the hardest thing... This is your baby as an entrepreneur, this business. I speak in the third person when I say that, all of us that have started their own companies, this is important, right? We feed our families off of it. And I think what happens sometimes is it's the concern of the... I'll speak for myself. It was my concern, I think at one point, trusting other people with very sensitive information. These are my clients. I know how hard it is, especially starting up, to get customers. You don't necessarily have money laying around to invest in your marketing, your SEO, however you try to get in front of people. Getting those impressions is expensive. And so it's an easier game to play, I think, once you've enjoyed some success and you've got some money coming in and now you can expand your budget. But I think just trusting other people to not destroy what you've been able to do or whatever accomplishments you've been able to achieve in a small amount of time or in a long amount of time. For me, I couldn't hire that first person for about three years. So I was doing everything for about three years. And until I can round up enough subscription revenue. And like I said, our managed services is all monthly recurring as a subscription to be able to have enough money coming in to be able to hire somebody. There are a lot of things that I didn't know very well. I was a technical mind and an IT guy, but didn't necessarily know how to do accounting, didn't know how to read the balance sheets, and I didn't really go to school for business. I went to school for computer science. So I had to learn the MBA on the job. I got involved in a vestige group and I had a coach, business coach, which I think is really important for anybody starting out. It's very lonely at the top. It's even more lonely when you're the only person. You have to be able to bounce some things off of people who are logical, who are really not emotionally tied to what's going on day to day. I think that really helps open your eyes a little bit. I was a very passionate visionary when it came to Magnitech. I wore my heart on my sleeve. I think everybody knows where I stand on a lot of things just based on my behavior and how I talk. But I think you're not going to grow unless you get out of the way sometimes. We as owners can be the bottleneck. I like working with organizations now, clients now, where the ownership and the top is not necessarily involved too much day to day because sometimes it's a little bit restrictive. I really committed to this idea that I'm going to bring people in to help me do the work, and once I get them really good, okay, that takes a hat off my head. One less thing that I have to worry about. But you're always going to worry about everything. Even though day to day, I'm not managing the technicians and managing their workloads and making sure they're following up, I still give those objectives to my COO, to those people to execute for me. So I still know what I want. I'm just not the one maybe being the direct communicator on those things and holding them all accountable individually. I learned in order for Magnitech to grow, I had to have to be more of a mentor and really stick to the highest and best use of my time day to day. So, I think that's the hardest challenge for anybody who starts by themselves. It's for the most part relatively bootstrapped where you're putting your own money in there and you're basically building your business with cash flow, really no outside money. It's difficult but you have to commit. If you really want to grow, you have to really try to do your best to be the change agent and say, Look, I have to understand that in order for me to grow, I have to give these things out, I have to delegate. I think that's the biggest obstacle for a lot of people in the beginning.

Tim Fitzpatrick
How many people do you have on your team now?

Tim Pabich
We have 35 people right now.

Tim Fitzpatrick
Okay, so 35 people. What executive level positions have you hired for?

Tim Pabich
We have a chief operating officer. I have a chief architect who's the head of the IT side. I have a marketing manager. We have an account executive right now, and these are people who regularly come into. We have one account executive right now. We're actually in the process of looking at another one as at the time of this filming. But we have a controller. We have a lot of non technical people on staff that I deal with pretty regularly that handle a lot of the things that I used to do. It really frees me up to be a good coach, mentor, inspirer, visionary, to be able to say, this is the way I want to go and this is the way I want to grow the company. I've had to learn how to push myself out about 6 to 9 months in terms of where the business is so that we can push towards that in terms of the tactical.

Tim Fitzpatrick
How long ago did you hire your COO?

Tim Pabich
Mike was brought on a year and a half ago. We originally brought him in. That's the other thing. We'll post positions out there, like an account manager position, for example, and it'll end up like a honey pot. We'll catch a lot of really interesting resumes through that. I've been told in feedback that I just wanted to get in. That's the answer I get. I just want to get in. I'll apply to anything and then navigate their way through. That's I mean, that's a flattering thing to hear from people. It's like, Yeah, it may not be exactly what they want to do, but they know if they just get the foot in the door, they'll find the right position. And that's what happened with Mike. He actually applied to an account manager job. I didn't respond to him for a whole year. And I think I told you before, outside of just the resumes, we put people through a culture index survey as well. So we'll get at least a snapshot of their personality traits. And so, Mike applied to this role. I didn't reach out to him. I did look at him. But a year later, we were struggling with something else. And sometimes we have to find what's broken in order to fix it. And at the time, Matt, my chief architect, and I, we were having some issues with projects, and we were running our own projects. And as we started to get more projects, and plus we're doing support, we were the escalation guys. We were getting all the high end issues. So it got difficult for us to keep those projects under control. And we weren't trained PMPs or anything like that. Mike was. And as a matter of fact, it was in his title, even on LinkedIn that he's got his PMP certification. I reached out to Mike because we were having issues onboarding new customers and keeping our projects intact without the wheels falling off the wagon. Mike responded within five minutes, which I thought was amazing because he's very responsive. He just said, I thought you'd never call. It's like a paraphrasing, but it was along those lines. We set up the interview and brought him in to do just that, the things we wanted him to do because we needed him to fill a need. But as we started talking and learning about him a little bit, I started to think, Hey, do you have operational chops? Do you know how to do this? He was just like, yeah, yeah, yeah, yeah. He kept saying yes to everything. And so slowly, we just started putting him into it. I think at the time, Matt, my chief architect, was also doing the operations, which was killing him. And it was, again, too much work. And so we had to basically move that on. In terms of recruiting and hiring and stuff like that, I was it. I was doing all of the hiring. Mike, Ashley, who I hired on the same day, is our director of HR. So she's our talent and culture director. I hired her because recruiting for me became a full time job. We were constantly looking for technicians. Unemployment was relatively low, it still is. And so just very hard to find good people and I could not focus on anything else. I was literally doing that all the time. The risk on that was, hey, this is an overhead position. It's not a revenue generator. It's not somebody who's going to help us close tickets, but they will help us find people who could help us close tickets. So I brought in Ashley to do that. And she, in the meantime, figured out how to finish her handbook, which was something that I wasn't able to get around the finishing. She's really created a lot of processes and procedures with employees, fixing a lot of things that I needed to probably fix because I may not have been compliant completely. Minor things, little things, but we got them buttoned up and Ashley took care of all those things for us. I think sometimes you have to find a need. It's just a lot like sales. You have to identify a need. You have to have a good solution in place and you have to implement it. If you don't have the solution, you have to create one, and that's what we did.

Tim Fitzpatrick
I don't want to assume if you're listening and you're not sure exactly what a COO is, chief operating officer, that's a big hire. But when you reach that level, man, it takes a ton of stuff off of your plate as an owner.

Tim Pabich
It really does.

Tim Fitzpatrick
I really do think it's a very key hire when you reach that point where it makes sense to do that. I'm assuming as you initially brought him in and then when you promoted him the COO, when you did that, it gave you some breathing room.

Tim Pabich
Definitely. But he didn't know the business. And here's another important thing. Obviously, we had to teach that job to Mike. I understood the operation. Matt understood the operation. There were other people in the company that understood enough of the operation. The challenge, though, is that all of those people were technical. In the case like with Matt, he naturally will gravitate to what he's comfortable with, like most people will. He'll go to the comfort zone and that's fixing things. That's what Matt's really good at. Great problem solver. The operation stuff, even when I was doing all the operation stuff, and I'll give you just a general example. I used to hate billing at the end of the month. I used to hate reconciling the books. I used to detest all those things. But I also understood that I couldn't pay my mortgage and I couldn't pay my groceries and I couldn't live unless I did it. So that's what got me out of bed. I'm like, You have to do it. This is the work part of the work. You have to do this stuff. So as soon as I can get that off my plate, I was happy to. It wasn't until we got super crazy and transactional in terms of all of the product that we were moving on a constant basis. I mean, things are moving and shaking constantly around here to the point where it was like, Okay, it's a full time job now. So you do it as long as you can and try to save as much money as you can doing it yourself. But once you realize, hey, I can make more money if I can dedicate my hours in the day to marketing and sales as opposed to saving. It's that whole penny wise pound foolish mantra, that whole thing there where it's like, yeah, I could do it myself, but it's probably not the highest and best use of my time. And so with Mike, he was non technical. And I think that was what really drew us in to that is that he couldn't solve those problems. Even if he wanted to, he had to delegate. I think that was critically important to that role of I hand it to Mike, Mike knows how to dish at that point and get the right people involved because he can't do it. The part of that was learning his people and learning their skills, but learning the business, understanding how we make money, understanding our products. Mike can tell you what we do, and he's got a good vocabulary. He wouldn't be able to build a server, but he can definitely tell you what's involved. I think part of the execution of that and making sure that was successful was just getting the right person. And we interviewed a few different times. He checked all the boxes. He was actually the guy we were looking for. So it really worked out.

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Marketing is a Long Term Journey

Tim Fitzpatrick
You touched on sales and marketing. Let's dig into it. How have your sales and your marketing efforts evolved as the company's grown?

Tim Pabich
Wow. Well, quite a bit. Word of mouth is still very much the number one generator of getting business. But SEO and some of the other activities that we've been doing are starting to catch up. And it just really takes time. It takes time and it takes experience to get things moving in the right direction. I feel like even though I'm not a CMO and I'm not a professional marketer by any means, I need to get a school for it or get schooled on it, that is still the place I need to be. That is who I am. I am the face of the organization. I am the marketer. I'm the visionary and the marketer. My commitment to not really being trapped in the operation, the day to day ops of just workflow is really what enabled me to really focus on, Okay, what's next? I'm going to jump around because these two are very connected.

Tim Fitzpatrick
Yes, they are.

Tim Pabich
Sales as well. I'll probably always be the company's best salesperson. If I'm sitting in the room and I'm going toe to toe with somebody on the other side, a new customer, perhaps, or a new client or a prospect, it's going to carry a lot of weight if I'm the one saying, Hey, we're going to do this, we're going to do this. I'm looking you right in the eye and saying, Hey, I'm here right now to negotiate this deal with you and get it done. That's very powerful. But I also realize I can't always do it. Just like with the other stuff we mentioned, whether it was tech support or operations or whatever, I have to eventually delegate and get my army built up. I can't be the only person because if I'm not around, then who can do it? The answer is nobody. That's a problem. The commitment to salespeople. Now, we've hired... In 12 years, I've probably hired about eight different salespeople, and seven of them are no longer here. So we have one right now, and she's doing a great job. However, she didn't start in that role. We brought her in as an account manager first so that she could understand. Because I think at the time, we actually had an account executive. So that person was still around. But Angela was working as an account manager, and it was a good opportunity for her to understand what the client experience is, what that client experience is working with Magnitech, understanding the operation a little bit of how clients get served, which is a perfect training mechanism to go outside now and try to explain to somebody who doesn't know this is what the experience is once you become a client of ours. With the other seven, I didn't do that. They came in as account executives right out of the gate, and I had to try to teach them how to sell Magnitech services. And part of the roadmap is to shadow, spend time with technicians, spend time with these people, spend time with those people. Well, that's easier said than done, because a lot of times these technicians are so busy, and if a salesperson is constantly in their other ear asking a million questions, it gets frustrating. And I'm dealing with people who... A lot of my service team members are more analytical, they're more introverts, they're patient, but they'll do what they have to do because they understand what I need. I need this person to get good and understand what you're doing so that they can tell it. It became cumbersome and difficult. Covid screwed some things up, too, because it forced a lot of people to want to work remote. I'm right on that line between being a Gen Xer and being a millennial. I was born in 1980. And sometimes I behave one way, and other times I behave the other. And I think, Mike, my COO has even said I'm starting to behave more like a millennial, coming around. And maybe as I get older, I'm getting a little bit more mellow. But I was raised in an environment where you came into the office every day, you collaborated with people, you walked into your boss's office and sat down and built that relationship. I think some of the younger people today in the workforce might be missing out on those opportunities. And I'm not the first person to ever say that. I've heard other people say the same thing. It's like, if you're not in the office, you can't just make that bold move one day and walk into the boss's office and say, I want this and make that move. Which sometimes you got to do that. So it was difficult to train salespeople. And I found that working them in as an account manager first has allowed Angela to be more successful than her predecessors. And so in a short amount of time, in about six months, she's rocked it. She's done really well. Now, there's still a lot of learning to do. It's a different type of a job and it's a different relationship and all that. So we still have to mentor a little bit. And Matt's involved, our chief architect, Mike's involved, I'm involved because it's all coaching at this point. And a lot of times what we'll do to train salespeople is we'll go into the conference room and it'll usually be like Angela and myself versus Mike Tyler, who's our controller, and Matt, think like a buyer. And we have role playing. We actually role play it. I'm like, Here's our pricing, here's what we're offering, and then beat this up and let's overcome objections. So we practice a little bit so that when we get in front of the real... Because after a while, after 12 years, you started to hear them all. You heard all those objections over and over and over again. So after a while, you just get better at it. And so it's experience. It's just learning. It's not being afraid to make mistakes. It's going to happen. You're going to lose deals because you might have shot from the hip, or you might have missed something, or you fell behind and didn't get something out on time, and things happen. And sadly, it's going to take some losses of that magnitude before you learn. I can't helicopter parent forever as much as I would like to. And this goes back to delegating and scaling and trusting people is, yeah, you know what? I might be staring down the scope of somebody willing to pay me $10,000 a month, let's say, for IT services, which is a good account. And I'm going to be like, Hey, we need that money. I'm going to be at the table. We're going to win. That doesn't help my salesperson, though. And we still get those deals from time to time. A whale might come along and then we have to steer the boat and chase it. And so believe me, if it's a warm connection through somebody I know that that referral has come across, then yeah, I'm involved. We're not that big yet where I can just say, Well, I'm not going to touch any deal. I don't think any CEO would be that crazy. I mean, I think if the right deal comes along, you're involved. Are you trying to help. But with marketing, back to that point, I think we've spent money on church keys. We've spent money on networking events. We've gone in the community and one of our pillars is to serve the community. So we've put out a budget to be out at the nonprofits, sponsor their events, get our brand out there. We've wrapped vehicles that have our logo on it. We walk around wearing the branding. And I do it all the time. I walk around branded at work all the time. And the way I see it, if I don't do it, why would they? So they all do it. And it doesn't hurt that we actually have cool clothes that we put out with people. So we give them nice things. I mean, look, man, we give them that winter, we give them a cool hat. We give them Travis Matthews golf hats. I mean, we give them nice things because we want them to look good and we have a standard. So when you go out, you look good, you're branded. It's just those impressions over and over and over again to get the brand awareness up. It may not happen right away. With marketing, it's a big commitment. You have to really push and keep going over and over and over and over again. It's easy to get disgruntled and want to quit. When you're about to quit, you think about, Hey, why did I start this in the first place? Now, this activity may not work, but we're going to maybe tweak it a little bit and try something different. You also have to measure your ROIs. You have to know if you give something a good year or six months to a year and you're just not seeing it, okay, maybe we need to shift because now it's good money after bad and it's just not making sense.

Tim Fitzpatrick
You've touched on a couple of things I want to pull out because I think this is really important. One, you've talked about marketing being long term, which, man, there needs to be more people like you that think about marketing in this way because it really is. It's not a switch. You can't turn it on and off. It's more like a flywheel. You have to view it as a long term investment, which you do, which I think is one of the reasons why you're having success. The other thing you talked about was we need to measure. I always talk about test, measure, learn. It's that cycle. Test, measure, learn. You put something out there, you test it, you've identified what you're going to measure to help guide you and give you information you need to determine is this working or is it not, and then you learn from it and then you just repeat the whole thing over again. A lot of the things you do aren't going to work. You touched on this. Hey, some of these things we do, they don't work. But you don't know until you try. You invest in marketing, go through a bunch of duds to find the things that really work. When you find the things that really work, then you can double down. It's those things that work that make it all worth it. The stuff that you invested in that didn't work, you make up when you identify those things that are really working.

Tim Pabich
You don't have to be a genius. You don't have to sit there and think of everything. Look, we've got a mail box distribution list that's on our website. Anybody can email it. We get emails all the time through there. It's info@Magnitech.com. It's just a catch all if people want to reach out. We get so much spam to that thing, even though we've got really good technology to try to combat most of the terrible stuff. But every so often, you get emails from people soliciting all the time. So why would I want to block that? I'm curious to see what are other people doing us? Because we get solicited too all the time. And why not just pinch a little from here, a little from there, a little from there, and just put together your own little Frankenstein out of the things you like? I feel like, oh, that works for us. I'll go to a conference and I'll pick up a really cool like, chotchke, like, for example, the potato chip clip. That's our old one from our old logo. But people love these things and they stick to the fridge and all this other stuff. We put these things out and they're like, oh, and they love it and they walk off with it. And so those are a lot of different impressions. I can't always predict that it's going to turn into a client, but there's other chotchkeys that people don't like. Just go into conferences, I think is a good way to learn. You get to see what their marketing teams are doing when they set up their display booths and things like that. You have to admire companies that you're trying to catch up to that appear to have it all figured out. There are probably small shops out there that are 10 years, 11 years behind me that might be looking at me now and I've got the crosshairs on my back. I'm the Goliath to them. Even though I'm still David to a lot of my competitors, I'm still chasing. But don't feel like you have to create everything yourself. I think it's okay to trust your channel partners. In our case, we've got a channel that we run through that all of our tools get distributed through that we can then put into our own service offering and offer them to our clients. So like antivirus, for example, or network monitoring tools and things like that. They don't sell those directly to the end user. They sell them to managed service providers like us. We put it together in our service offering and we sell it for a fee. Well, all of those channel partners, all of those solutions have a repository where you can get white labeled marketing slicks that you can just throw your logo on and put those out there. So trust your vendors or your partners, if you will, to help you with some of those things. So you don't need necessarily maybe a graphic artist. You just need your logo and you can pop it on there and send it out there as your own. They allow you to do those things. So there are opportunities to do things on the cheap. You don't have to spend an arm and a leg. A lot of times your vendors will do the work for you. So that's really nice. But really, it's copycat. There's nothing wrong with... Maybe you would admit this, too. There's nothing wrong with taking something from someone who looks like they got it all together and using those ideas to inspire yourself to create your own content.

Tim Fitzpatrick
Yeah, I think Look, one of the things I always keep in the back of my mind is that nobody has it all figured out, right? We're all still... So even the people that you said you feel like you're chasing, man, they don't got it all figured out. They got problems just like everybody else. And oftentimes, the problems they have are the same ones you do. They're just bigger problems because they're larger companies.

Tim Pabich
Bigger scale, right?

Tim Fitzpatrick
Yeah, it's a bigger scale problem. And there's nothing wrong, yes, you do not need to reinvent the wheel. There are plenty of successful people out there to model. I think it's just important to make sure that when you do model, you know that they've got it right because most people don't have it right. You don't need to reinvent the wheel, but you got to make sure that you're getting information from great sources.

Tim Pabich
Sure. That is the caveat. I think you have to focus on similar business types because other than maybe a clever commercial that might come from a beer company, a brewery beer company like Budweiser, watch these Super Bowl ads. You might come up with something or somebody's going to come up with a commercial you think is really clever. Yeah, you can put your own spin on it and maybe come up with something cute that you can throw up on your YouTube channel. But for us, we've really focused on our channel because those companies are in our industry and they help us. And so it's relevant. The content is relevant. What they're doing is relevant. It can be easily manipulated to be transferred to the end users, the people that we're servicing. That's a great point and definitely a caveat to that comment.

Tim Fitzpatrick
But why waste your time when you have a channel partner that's giving you materials that you know work? Why waste time? Why spend your time reinventing the wheel? We don't need to reinvent the wheel. There are plenty of successful people out there to mode. We just need to make sure that we're modeling the right people.

Tim Pabich
A lot of our original content really comes in the form of the social media posts. What we do on our Instagram and on our Facebook is we do a lot of posting about our culture, our employee experience. It's not just selling the customers, we sell to the talent. We're selling to the people who come to work here. That's the other thing to point out. Ashley, who's our director of HR, she is a salesperson at the end of the day. She's selling to our prospective colleagues. We have to put a message out there on social media, this is what it's like to work here, and here's what our other colleagues here believe and think. A lot of times they have smiles on their face, not because they're posing, but because it's a funny moment or there's something going on. We have to story tell, not just to the prospective clients, but the people who are eventually going to work here as well. A lot of our original content comes from there. It's definitely genuine. But when it comes to the technical stuff and features of certain products and things like that, which we didn't have any part in designing or building, yeah, we're going to rely on those channel partners to give us the marketing slick so that we can turn around and explain to the customer in simple terms, this is what this does for you.

Tim Fitzpatrick
I want to pull this out real quick. And we could go down a rabbit hole with this, which I don't want to do. But I think it's so easy for somebody to overlook this. What you just talked about, marketing to recruit, so many people do not view HR recruiting as marketing. It's foundation is marketing, in my opinion. I'm so glad that you shared that because, yeah, your marketing efforts are to potential clients, but they're also to people that could potentially join your team. And if you don't think that people that are looking at your company as one that they want to work with aren't looking at what you're doing on your website, on your social, you're kidding yourself. So thank you, Tim, for sharing that because it's something that a lot of people overlook.

The Secret Sauce to Growth that a Lot of People Miss

Tim Fitzpatrick

 I want to ask you one more question, two more actually. First, what's the secret sauce to growth that you think a lot of people miss?

Tim Pabich
Well, I think you have to... For us, one thing that we're struggling right now with is the increased volume of orders that we're taking in. And you have to trust that... How do I put this? As much as you may want to self fund a lot of your activity, sometimes you have to get involved with banks. You have to get a little bit of help to grow. It's okay to ask for help. If you don't want to grow, that's okay. I'm of the opinion that it's going to be very difficult to retain talent that way. You have an obligation to your own people to try to grow their careers. Otherwise, it's just a transaction and they just work here and they're going to leave and find something else and all that. So I didn't want that because hiring is such a pain and training and retention is a challenge. And you got to keep people thinking. You want your people to believe that, yes, this is a career building opportunity for me. And I'm very open about that, and I say it a lot. So by us doing these activities with HR and checking in with them, it's walking the walk. We can't always do everything according to a timeline that might be ideal for that individual because it is a business. And sometimes we're challenged with economics. But I would say a big challenge for us, even right now, is we enter another stage of our growth because there's not just one stage of growth. I've been taught there are seven stages of growth, and so we're entering that next phase. And so we have to now start getting other people involved that other mature organizations are utilizing that we never thought we would. So here we are. Operational maturity level is probably that secret sauce. If I can just summarize that into that. I think that you have to commit to your culture. You have to commit to your operational maturity because you need to be able to service that growth. If you end up harnessing and hauling in a whale, you got to be able to eat it. Great problem to have, but a lot of people are ill prepared for that. You have to try to really work on getting your operation where it needs to be. You may not be the right person to do that as the owner. You just might not be because you might be passionate about something else. And that's okay. It's okay to admit that you're building an organization. Go with it. Run with it. Just take it and run, and you'll see what happens. So that'd be my advice is to just really focus on your operational maturity level. Hire a coach. Like I said in the beginning, it's lonely at the top, and it's especially lonely when you're by yourself starting up. Have somebody you can lean on that you could talk to. You may have to pay them a little bit, of course, for their time and maybe you could pay them with some drinks. But it's okay to admit. Don't be afraid to admit what you're afraid of. You may not be able to tell your own people some of those things, but you could definitely tell your coach. And I highly recommend that.

Conclusion: Building Your Business On Culture & Hiring The Right People

Tim Fitzpatrick
So knowing what you know now, is there anything you do different?

Tim Pabich
Well, I think I am what I am right now because of my experiences and the mistakes I might have made in the past. For me to go back and say, we all say this, right, Tim? We all say, hey, if I knew then what I know now, and take me right now and put me back 20 years and let me start right now with this experience and this maturity, it's obviously not realistic. We all wish we can wind back the clock. We can't do that. But what we can do is admit, hey, those mistakes, fortunately, were not catastrophic and didn't destroy the entire thing. The ship didn't sink. We survived and we got stronger as a result of it. So I can look back on those experiences and say, yeah, you know what? I'm this way now because of that. I wouldn't want to change that too much. I wish it would have happened faster. I wish instead of me sitting here 12 years, I would love to say it was six years, but it just didn't happen that way. And it is what it is. I think we're making up for some of that slower growth in the early years now. So it all eventually comes full circle. But I wouldn't necessarily change much other than as a 42 year old now, instead of a 30 year old when I started, don't be as quick to just react and freak out about every little thing, especially bad news. Take it in, listen, absorb it. And we're all problem solvers here. Okay, what do we have to do now to fix this, rather than just blow up. It's so easy to lose your temper and get upset and everything like that. Solves nothing. Because after you're done being upset and you calm down, you still got this problem you got to fix. It's great to feel better about getting it off your chest, but now here, okay, now we got a problem again. That didn't go away. So how do we fix that? They're going to look to you as the leader to try to stay steady. You got to have that steady hand. They're coming to you at this point because, okay, here's the situation, boss. What do you think we should do? It's not that they haven't tried to figure it out, but it's sensitive and so it's going to involve me. And that's okay. It's what I'm here for.

Tim Pabich
It's been great, Tim. I appreciate you sharing your experience and thoughts with us. Where can people learn more about you if they want to connect?

Tim Pabich
Well, we're one of the only Magnitech around. I think there's a company in New Zealand, I think, that does lighting or something like that, or not New Zealand. I think it was South Africa. That is not us. We are Magnitech based in Naperville, Illinois in the United States. You can find us at Magnitech.com, which I think you have there at the bottom of your feed. We have our socials out there. We're all over the place on Facebook, Instagram, LinkedIn. I think we have a TikTok account, which we should probably shut down because of that whole thing with China. But yeah, so we're all over the place. It's very easy to find us. Just Google Magnitech.com And you can get all kinds of links.

Tim Fitzpatrick
We will make sure that that's all in the show notes. Tim, again, thank you for taking the time. For those of you that are watching and listening, I appreciate you as well and I hope you've gathered some helpful tips that you can use to grow your business. We've been talking all about growth and some of those stumbling blocks. If you want to identify which of the nine revenue roadblocks are slowing down your growth, you can do that over at revenueroadblockscorecard.com. It takes less than five minutes. You'll be able to discover and assess which of those roadblocks are slowing you down. You can always connect with us over at rialtomarketing.com as well. Thank you again. Until next time, take care.


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About the author, Tim Fitzpatrick

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