670: What To Do Once You've Experienced Growth w/ Dwayne Rainey

ABOUT THIS EPISODE

In this episode we talk to Dwayne Rainey, Co-Founder and President of Advanced Packaging.

Click here to connect with this guest on LinkedIn.

A relationship with the right referral partner could be a game changer for any be to be company. So what if you could reverse engineer these relationships at a moment's notice, start a podcast, invite potential referral partners to be guests on your show and grow your referral network faster than ever? Learn more at sweet fish Mediacom. You're listening to the be tob growth show, a podcast dedicated to helping be to be executives achieve explosive growth. Whether you're looking for techniques and strategies or tools and resources, you've come to the right place. I'm James Carberry and I'm Jonathan Green. Let's get into the show. Welcome back to the BE TOB growth show. Today we are joined by dwayne rainy. Dwayne is the CO founder and president of advanced packaging. Dwayne, welcome to the show. Thank you, guys, for having me. It's a pleasure to have you on the show today. I'm glad we were able to connect and we're going to be talking about something that is, I think, a great problem to have. I mean, it's definitely a problem, but it's a great one to have. It's what do you do. Once you have the growth, I mean once you've started this exponential growth, obviously there's going to be a lot of growing pains. It's going to be challenging, it's gonna be fun, but we're going to talk about what do you actually do and how that works. But before we get into it, Dwayne, maybe you can tell us a little about what you and the advanced packaging team are up to these days. Well, advanced packaging is a packaging supply house, meaning we distribute pretty much any packaging material that a company would need, whether the company is a manufacturer of products or a whole felle distributor of products, you know we can provide those packaging supplies. We also do packaging design and packaging engineering, where we can help people solve their complex problems of how to get this product from eight to point B and help them to that. And then we also do some specialized packaging services where, for example, on side packaging not something that we really set out to do or something that we promote, but if we have a customer who needs someone to come in, third party, come into their facility and package a bunch of stuff, which usually does involve design, then you know we do those services as well, and then some others, but those are the three main topics of Evans packaging. Those fantastic well and and I know that advanced packaging has been ranked as one of the fastest growing companies in the US in two thousand and seventeen. So I know that you're busy. I really appreciate you taking some time out of your schedule to day and I'm excited to talk about, you know, not only the growth that you've experienced, but what do you do? What do you do when you have that growth? So we've got a few points that we're going to get to, starting with how to hire key talent during this growth that continues to set you up for success. So what does what does that mean to you, Dwayne? Well, that's something that we're we're still learning and we made all the mistakes that you could make probably along the way to figure it out. But in terms of hiring the key talent, I think probably the most important thing is to take your time, start early and take your time. The mistakes we made in the beginning where when we realize that we were so far behind that we could not go on until we hired somebody to take some of the some of the chores off our list at that point in time. It was so hectic that we hired the first person with a pulse whom, halfway, seems ready to do what we needed them to do, and that doesn't work. In no way, shape or form does that work. That is not the way to go. So my advice to anyone who sees, you know, substantial growth and has to realize and figure out what to do with it now that it's, you know, barreling down that you is start early if you know where the biggest need is, because when you start a company, obviously we're in multiple hats, but when you realize the one thing that you need off your plate the most, that could...

...free you up to grow the business evens further. As soon as you identify that need, even if you feel in your mind that it's six months to a year out, start the process and starts process early and wait until it be picky as you can be way to find the person that just makes your heart feel right that you found somebody that you don't deserve, almost and you know you they're statistics out there that say that in order to get a plus talent, you almost have to, at least not almost. I mean the statistics do say that you have to see at least sixty five applicants to have any shot at a good percentage of getting an a plus player, and I believe that. Yeah, I believe that. I think yeah, the statistics basically, if you only see five candidates, then you have like a ninety seven percent failure rate of getting somebody that's not going to work out. And then the further up you go in the terms the number of applicants been, the better your chances are getting a good ploy but that's the biggest key. is to begin your search early and also hire early. Like, if you really feel like six months is that time when you think you'll need that person, go ahead and start looking six months ahead. But if you have looked through a number of applicants and three months into it you found that person, then that's the time you need to hire. You don't need to wait until like we did commonly, which was way till this, way too far past the time we should have brought them on, and because at that point in time you can't train them effectively. Your resources are tied up even more so than ever before. So then they just kind of get a crash course and throwing out amongst the wolves and nothing gets implemented the way you would like it too, and it needs to. Yeah, yeah, it makes a lot of sense. I mean, you just see, you have to give yourself that time so you're not scrammed. I love that statistic about having how many applicants you need to see. If you need to see sixty five to give yourself a shot at getting some a plus talent, that's a that's a startling statistic. I wouldn't have thought it was that high. So that's really good to hear. You know what, I had the fortunate privilege of listening to a specialist in that arena hiring top talent, and that's where I got the numbers from. That's fantastic. All right. So, looking towards the future, when you're hiring your keytown, you're getting on that. You're getting on that early. Let's talk about this. Second Point is then, okay, you're again. You're experiencing this growth. Now, how how do you expand your finances with that growth? What does that process look like? Well, I think for us you could say that we could have done it differently, and it may or may not have been better, but all I know is how we did it and now, seeing how we did it, how it could have done it differently to have a bigger impact. So we have never borrowed one to build a company. We started out with five thousand dollars a piece and business partner continued his day job for two years into the existence of the company. From day one, work side jobs. I had a background and construction, so I was able to get jobs to put through on the table and a wife worked at the same time. So you know, with any start up you had to grind it out in two things got rolling once they did. We have always grown with our money. We have, for whatever reason, the builder generation, which is two or three generations back, where they wouldn't finance anything, couldn't pick ash for it. You didn't need it, you didn't deserve it. It's kind of in our mentality and there's a lot to be said so that. But at the same time, in the Modern Day business world, that is not the best way to go. If you're trying to chap out the fastest, if you're trying to grow your business as fast as you can grow it, it's probably not the way to do it and we're just now learning that. So some my advice there would be or well, from from our standpoint, what we would do differently have, if we had the opportunity, was start looking at other alternatives for financing early on, not necessarily taking advantage of any of them, because we are...

...successful. We have grown without borrowing any money. However, drop that notion of its taboo to borrow money to grow your business. You don't want to get in debt because this and that. If you have beliefs and confidence that your product, whatever it may be, is something that the people are going to always need or utilize, are the markets hot and you need to do it now, whatever the reason they be. If you feel confident your growth is going to continue, then drop drop the notion of borrowing money as taboo. We just feel like what we did has worked for us, but at the same time our market is so hot. Yeah, we we landed ourselves on the ink fivezero lists, also the fast going private company me and stay South Carolina. All that's great for you know, accolades, but at the same time we lost out on a lot of opportunity because we chose to, you know, stay this one course and be very diligent not to borrow money. My best advice is just to be very open. People are going to bombard you once you show success with wanting to loan your money. At the day I would probably get at least five calls everyday people you preapprove. But do your own research and find out the types of money that's out there, whether it be a small bank, a large bank or, you know, third party funding or whatever, and just go ahead and have those options available and be ready to tap into them if you if you feel the need. Yeah, it makes a lot of sense and and you've you know, you already sort of touched on this idea this. This third point is that you're you also have to kind of wigh the cost, like you said, are some of these lost opportunities versus, you know, this this idea of growing your finances. So was there anything specific that we didn't touch on in terms of this third point? Well, yeah, I think you have to realize that when opportunities present themselves, a lot of the town that's not most of the time you're never going to see that opportunity again. So if you're not ready to pounce when it does present itself, to you, then you know that may have then your one opportunity at that customer or at that project, and that is the one thing in the reason that I suggest that people be ready and willing to entertain out their party financing is the fact that we have lost on several big opportunities simply because we were just overwhelmed at the time, stretch to thin, and we tried to make attempts at these opportunities, but it was half hearted attempts because there's only so many hours in the day and most of us have to get a little bit of sleep. So, you know, you you can try to stay up to two o'clock in the morning to put a proposal together for an opportunity, but if you're you know, if you just don't have the resources and the laborers under you and the Faculty to, you know, to basically have a smooth operating machine, then you're going to miss out on a lot of those opportunities, because it's very clear when somebody half heartedly put the proposal together. And so we were lost out on a lot of opportunities because of just that. We were too thin at the time. We threw a number at it just to deal with present something, but it was just sloppy opportunity. So so you have to have a business owner. You know you, whether your career business owner or whether you new to the game. At some point in time you have to learn to way the cost of lost opportunity versus the cost of borrowing money. At some point in time you guts figure out how to compare those two things and you know it may be that you don't need to borrow money. The opportunities are coming in at a rate that you can handle them and the ones you're losing you would have lost anyway. It's up to each individual business owner to figure out how to compare those things. But you do have to know there is a town where bowling money maybe the cheaper way to go. Yeah, lose...

...opportunities that could have made you a multimillionaire in six months town. You know that three or four percent, or whatever the percentage on the money you could have borrowed doesn't seem too big of a do yeah, no, certainly not. Weigh against that. Well, you know, and one of the things I'm I'm loving about this interviews. Of course it's you know, it's all tied together. I mean you're talking about weighing the cost of loss opportunities that maybe you missed out because, like you said, you didn't have the right team and the right talent in place. We had to already talked about how to hire the right talents. You set yourself up for success during this growth of time up. You know how to how to grow your finances and also, I think, very much related, even even in your explanation of the third point, is that you also have to be able to adjust your resources during this period of growth. So, I mean we had, you know, we had talked to offline about a couple of different things. You know, the the infrastructure, you overhead. What are some things to consider when you are adjusting your resources to match this growth? Yeah, this is going to be one. This is going to be very specific to each different type of industry, but for us this is probably out of these topics, this is the one that we're in the middle of right now, the one that we're dealing with the most current. We because of that bootstrap build a generation mentality where you build it as you go. Every department we have is behind and now a lot of that has to do with the amount of our Portunity that presents itself to us. There is no shortage of opportunity in the packaging market. I mean it's one of the largest industries in the world. Nobody really thinks about it, but you if you do take a second and think about it. Everything that's manufactured in the world is package, not just once in the primary at package that you see in the store or whoever the end usery is touches, but in the secondary and tertiary packaging that it takes to get it from point a to point these. So you know, you need to know that our industry is very, very fortunate with opportunities, but every department we have is behind, and so instead of being able to have a thorough laid out executed plan of okay, this department's going to need help here soon, this department's going to need this software soon, being ahead of the game, we're in a situation where, because of the deficiencies in these departments, they're causing us to be or to have less time on our hands than we would have had we addressed them early on. But because everything's chaotic and all the departments are behind, you know, call it ar cake if you will, or whatever, but it's, you know, it's draining the time that we do have already. So now we're having to work longer, longer hours to try and go back around and in beast these departments up. But I'll give an example. Probably the one that hits us the most is our I t department. We made some strides last year where we, you know, spent probably, I don't know, maybe ten grants and nothing major, but stopped proten grant into getting a better by t system set up for our company. And immediately, right away, it was already insufficient that money and right away of insufficient. Day when we got it rock and roll, it was insufficient. So since that time we've been trying to figure out okay, well, this is working, I guess, but obviously it's just, like I said, costing people a lot of time because of its insufficiency. So I guess my to anybody coming behind where we've already been, my advice would be to plan out in advance every single detail of the company, especially infrastructure, what it's going to take to be at the level, because we all set those goals right, because they tell us you have to write a business plan, even though people usually ride them and then tuck them away and never look at them again. Yeah, seriously, though, knowing what I know...

...now, I now understand why they want you to write a business plan, and not only just write it but live by it. Is because in a proper business plan you're going to spell out a lot of that stuff. I'm talking about not just two page document, I'm talking about a multipage, well designed business plan. You're going to spell out a lot of those things and then you're going to adapt it as you as you grow, and infrastructure being one of those things that you take these departments and you okay, what is the true cost of setting up a proper it department? That would be sufficient for a twiny and dollar company, because that's where we want to be in five years. Even figure out those things, you need to spell it out on paper and then you need to look back at that document constantly and as soon as you think it's time, whether you have to borrow money or not, get it in and get it into place in advance, have it set up so that you not only have three people pulling from it, but it's the best it system you've ever seen, or it's the best payroll system you've ever seen, whatever it may be. You know that that's probably where we went wrong, way too late to try to be for these departments. Have you seen those really fun looking Info Graphics at conferences? They're basically a cartoon representation of the main takeaways from the Keyno speakers talk. Well, we've started doing those for some of our BB growth interviews. I posted the first one on Linkedin and the response was amazing. There's no way that I'd be able to afford those types of graphics, though, if it weren't for Capa Ninety nine for just three hundred ninety nine bucks a month. Cap of ninety nine offers an unlimited graphic design service, and it really is unlimited. They do all of the images for our blog. They've done all of our pricing sheets, are case studies. They can even handle the creative for your ad campaigns. So head over to be TOB growth showcom design and sign up for their fifteen day free trial. That's be tob growth showcom design. Your life is about to get a whole lot easier. All right, let's get back to this interview, and this last one, I think, is also going to be extremely important, because you've got like we've like we've been talking about your you are trying to balance you're sort of existing infrastructure with the growth you'd Shay. You know, you're making this transition. Now let's talk about you know, how do you handle then, your customers during this period of growth? You've got to balance the the old customers that you have and try and take advantage of these new opportunities. But again, you know, you you there's a there's a cost to missing out on opportunities. You want to take advantage of them. But you know, where do you strike that balance and also and also maintaining this the strong relationships that you've already had that have helped you get that growth in the first place? I think this is one that we've actually done a really good job with. This is one that we have reacted to when Tom was right. So we have this growth, we have our cool customers and and really we had one big customer that funded most of our growth, that landed us on that list. They are the ones who brought the sales and that company was home deeper. No, but it's not unfamiliar to probably anybody who listen to show. But we decided that obviously any good business person is going to they can't call your egging one basket. They're not going to continue to be here for fifty years. There's probably a greater chance it will not. So we took the money that we made from them and we invested it back into the company to not only support them, but also support future customers that we were going to go after, and ties back into setting up your infrastructure and building up that department. That's when we set out to build up that infrastructure, although we rule late, but that's when we set out. So I think you got US set procedures, or not really procedures, but you have to set boundaries and guidelines for you customers early on. As soon as you have a healthy dose or a healthy number of good customers, you're going out. You're going to continue to get those small customers...

...which you built a company off of. We know when you're young, you take on every opportunity for everybody, no matter how big or small, and you're still going to have those small opportunities, but they will call a time when you have to look and realize that. I have these five really big customers of mine who have projects Galore. I mean they're begging for somebody to come helping these projects. We're here, but you know, but forty percent of our day is tied up on these two hundred dollar sales or four hundred cells that aren't making anybody any money. When you really look at it, you don't want to turn it back on those people. You know I'm the type of person I'll haven't want to turn my back on any customer. But I think, I think what we really did well was we realized early on that, okay, these smaller opportunities are greatly taking away from the potential to get these other bigger opportunities. So what we did was we put caps limitations on you know, okay, we'll will process your order, but two hundred fifty dollar minimum or you can't just walk in the door and expect us to draw what we're doing and go full your order. You know, we we had to put some boundaries and rules to follow in place for our customers. But you know, the biggest thing we did well was we took the money we were making off of the big projects and we invested everywhere. We didn't just, you know, go to the Caribbean on it and enjoy the year. You know, we definitely it's probably our biggest KUDOS. We really did a great job of investing that money back into the company and it was all across the board. West it in every single detail the company. For sure. That's fantastic. Yeah, very I mean very forward thinking. It's just an just an intelligent way to sort of earmark that that win false. That's fantastic. That's what you got to do. You taking you reinvesting the business, Dwayne. You know this is and this is this last question is something we've been asking a lot of our guests. In two thousand and eighteen. You the COFOUN hundred president again of advanced packaging. You've seen all this tremendous growth, which again, congratulations for that. I want to know, then, sort of whether it is personally or professionally, what kind of or a combination of the two? What kind of legacy are you hoping to leave behind at the end of the day? Well, for me it's pretty simple in terms of whether I would like to be remembered as or what kind of legacy that I would like to leave is. I try to leave everything better than I found it, whether it be a project job, dealing with a customer and employee, a random person on the street that I didn't have to speak to. No matter what it is, everything that I touch an approach. I want to leave it better than I found it. I want people to be able to say that, you know, no matter what, every time, you know, every time I talk that I guy, every time seeing that guy, everything was always positive. You know, he tried his best to do what was right by everybody and I was raised that way. My business partner evidently was raised the same way as well, because he has the same mentality and we really mesh well there together. But every employee that we have, which we're you know, we're still fairly small company in general, but we do have a number of employees now and I treat them all the same. I don't care if, you know, if they're love US paid personal and tone pole if I see him out and talk to him, if I know they're having something that they're dealing with or an issue or, you know, if I see any opportunity to give it advice, you know, chance, some light whatever. If it's a customer, I want them to remember us as a company who always put them before our needs, are are desires or making money, and I try to. You know, I did the same thing with my children. You know, I take the way I was raised, I take all the good from it, try to pass that on to them and then I take all the things where I felt like, you know, my parents could have possibly done a better job. And you...

...know, if I realize that and I try to say well, okay, well, if they could have done a better job, what would that have been? So I take that and I tweaked that and I give that to my children as well. So try to protect any same way. Just leave it better than you found it. That's fantastic. It's a great legacy your I mean, you know honestly, your your genuineness comes across and it's not only this interview but the interactions that we've had. So if anyone listening is interested in connecting with you after today's episode, they want to find out a little bit more about you, about the topic, about advance packaging, what's the best way for them to go about doing that? The easiest way would be to go to our website. It's www dot advanced pc kgcom and you know, you can learn a lot about us there. That's it's an old website, we say eight hundred dollars for that website in the very beginning from an old buddy of mind. It did it for us and it's still sitting there today. We did the ICEO ourselves, not pottinger in myself. And then we actually do have a new website, though it was being developed right now. That should launch later this year. And but but it still sells all fast and that's the best ways. My didn't sess what it is. That's fantastic. Will Do. I thank you again so much for your time. It was an absolute pleasure having you on the show. Bobs down is all my thank you, guys a lot. There are lots of ways to build a community and we've chosen to build the BEDB growth community through this podcast. But because of the way podcasts work, it's really hard to engage with our listeners and without engagement it's tough to build a great community. So here's what we've decided to do. We're organizing small dinners across the country with our listeners and guests. No sales pitches, no agenda, just great conversations with likeminded people. Will Talk Business, will talk family, will talk goals and dreams, will build friendships. So if you'd like to be a part of a BEDB growth dinner in a city near you. Go to be to be growth dinnerscom. That's be toob growth dinnerscom. Thank you so much for listening, until next time.

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