671: 3 Things More Important Than Revenue Growth w/ Jason Burt

ABOUT THIS EPISODE

In this episode we talk to Jason Burt, owner of Evolve Holdings.

Click here to connect with this guest on LinkedIn.

Looking for a guaranteed way to create content that resonates with your audience? Start a podcast, interview your ideal clients and let them choose the topic of the interview, because if your ideal clients care about the topic, there's a good chance the rest of your audience will care about it too. Learn more at sweet fish Mediacom. You're listening to the be to be growth show, a podcast dedicated to helping be to be executives achieve explosive growth. What you're looking for techniques and strategies or tools and resources? You've come to the right place. I'm Jonathan Green and I'm James Carberry. Let's get it into the show. Welcome back to the BE TOB growth show. Today we are joined by Jason Burke. Jason is the owner of evolved holdings. Jason, welcome to the show. Thanks, Joh I appreciate beating it on the show. I'm quiteted. Well, it's great to have here. We're going to be talking about the the three things more important than revenue growth today, which I think is very cool. But before we get into all that, Jason, of course, maybe you can tell us a little about what you and the evolved team are up to these days? Yeah, so evolved holding. We are a consulting company. There's a myself as the owner, and then I use many other people in the industry to to work with different companies. We work with mainly manufacturing companies, but we work with in a lot of different areas, all the way from worked with commercial farming, service companies, lots of different companies, and what we do is we really help provide some operational efficiency for companies. So are we versed and lean manufacturing or the toilet production system? That's our base knowledge, that that we bring to the table and we've really taken it beyond just an operational focus. We really look at an entire company and help take companies that are potentially in the red and turn them around...

...and bring them back to profitabilities. So a lot of our primary customers are either individual company owners or we do work with some equity firms as well, or we provide, you know, all the way from the operational due diligence from the very beginning all the way through helping them develop a strategy to turn the company around. It's fantastic and I know that you guys. Evolved has seen some tremendous growth, especially in two thousand and seventeen. So part of the reason why we wanted to track you down, wanted to tap into your skill sets and and your knowledge. And again today, where we talking about again these three things more important than revenue growth. You Talk to people and that is a metric of success, one of the first things that people always point to. But there are things, you the more important than that. So before we get into what those three things are, you had also sort of mentioned this Toyota production system, is this idea of lean manufacturing. So maybe we can dive into that a little bit first. Sure, really quickly, I mean toyto back very early on in their journey, they develop what they call the Toyota production system and it's been around for many, many, many years. Started coming over to the US late s early S, really started getting some popularity and it really turned into what we've turned here in the US as lean manufacturing. There's a lot of people that try and draw distinction between the two, but it's essentially developing a culture within a company to solve problems and to, you know, create this whole employee movement of how do they solve problems on a daily basis to make your company better. There's a lot of tools and techniques that go along with it as far as just in time, manufacturing and creating pull systems and a lot of technical stuff, but essentially it's creating a culture around how do you improve your business on a daily...

...basis. Yeah, I and I think in one of the email exchanges that we had you had mentioned that it is not just a manufacturing philosophy. It is actually a business philosophy really for any size business. Yeah, definitely. You know, like I said earlier, I've worked in many different industries and many different size industries, all the way from early startups to you know, hundreds of millions of dollars, you know companies, multibillion dollar companies, and it really is a scalable philosophy, or I wouldn't call the strategy, but a way to do business. And we see it in all areas from, you know, across the entire valuy stream of the company all the way from, you know, working with directly with suppliers and how materials going to a company, the it side, the you know product development cycle and then obviously operations. One of the large industries that is really taken on a lot of this as a healthcare field, in fact as well. So, so leana is really spread across many, many industries and many size companies. Yeah, well, you know, we had talked that. Talked about that many companies are focusing on growing revenue only. But what are some other things that you think these businesses should be focusing on in addition to or instead of? Well, and you know, don't get me wrong, growth is so important in a company. You know, obviously that's a lot of your guys conversation here on your other guests, and I don't want to minimize how important growth is for a company. As an entrepreneurs when news a business owner owns other companies as well. Grow both is obviously something that we all should be paying very close attention to. I my biggest struggle is I walk into many, many companies, whether it be an acquisition that one of my equity firms made or it's a company that's struggling currently with profitability, and so many times, I'd probably say, you know, eighty to ninety percent of times the story is...

...that they were profitable, they were in a good, stable condition, but they grew significantly and now they're losing money. So take a company, you know, I see the story all the time. It was a two million dollars, smaller company making, you know, significant even and profitability for the owner, significant growth, and now they're a ten million dollar company and they're losing money. Hmmm. So what I struggle with it's not the growth, it's growing in the right way. It's understanding what that growth is going to do to your company and making sure that you're making the right lose in the right steps along the path so that it's profitable, because I see it over and over work growth hurts companies more than it you know, and it's obviously industry I'm in. I'm seeing these distressed companies, but I see that so frequent that it, you know, it's bother some for when I hear these companies that all they're focused on this growth and I just want to make sure that companies realize they need to look at other areas of their business to make sure they can handle that growth and so that the three things that you had mentioned to me were companies that should be focusing on growing margin, profitability and capability exactly exactly, and it's got to be a holistic look at it at all. Three of those right. So, you know, take the first one, margin. For example, margin is a great, you know, metric or line on the PNL to be looking at, but it's not the whole story, you know, neither as probsibility to either as capability. Any one of those, looked at a very individual basis, can make you or allow you to make the wrong decisions. So take a company who is building a product or providing a service and their margin is, you know, thirty percent, forty percent, whatever the number is. They can go make and I see this quite often, you know, they've got a machine that's able...

...to meet the customers expectations, but they can go buy the million dollar machine and on paper, because it's, you know, twice as fast, it'll show that their margin goes to fifty percent. Well, that makes sense. Their margin is growing, but all that overhead that they took on, if they don't have the business to fill that up in the business to be able to sustain that, then at the end of the day it's not necessarily good move for them. And I see companies making those mistakes all the time where they're making those decisions and building this overhead structure that really hurts their growth or they've grown significantly and they're not making any more money than they were when they started off. And these three sort of key areas that that companies should be focusing on. I mean this is also part of this idea of lean man manufacturing and you and you've talked about that. There are consultants out there only teaching the tools, but so so where is? Where's that disconnect then? Well, I think that's I think you know that example I just use, and there's others as well. I think it's kind of that disconnect. So I think if you're only you know, let me back up here. As I look at lean manufacturing or the toitter production system, you know I said earlier that it's really this culture of solving problems. It's very holistic approach to looking your business and guiding it down a path of growth and sustainability. Many consultants will go in and they're very focused on one small part of the business and they'll do a lot of, I'll say, kind of in quol its, good things in that one area of the business, but it may not be the best thing for the business as a whole. A great example of that, as I had a client in Wisconsin and they were a lighting company and the we're saying when they first hired me, they immediately said we need help in operations. That was their initial you know, this is where we need help, and I think any other consultant, except for our group,...

...would have just said, okay, let's dive in operations. Well, we actually took a step back and started looking at the bigger picture. They had different issues that were going on that weren't operationally focused or that we need to focus on other areas of the business to really help them drive profitability and get better with their customer. They had issues with their sales cycle all the way business was coming in. They had different things that we're going on with a new product development cycle. Those were more important than the operations side. So so when many of my, you know, peers in the industry are very tool focused and they want to go in and just dive straight into operations and just make these very tactical changes, I think it's very important that anyone that's helping guide a company, you know, through some difficult times that they're looking at the bigger picture, you know, all the way from the growth side of things and revenue, costs, capability and making putting that whole picture together to make sure that the resources, which are finite in any company, are being used in the right way and appropriate way to be able to dig them out of the hole or to be able to get them to that next step within their journey of the company. That's fantastic. One of the last things I you know, and it is this idea that this lean process can create a culture of improvement. I mean is that? I mean how is how is that different from sort of the other things that we've been talking about during this interview? Well, I think the culture, there are specific things that are embedded in the toilet production system, essentially the toilet of production system, the kind of simplify it, or lean manufacturing. It's a process of continuing the highlight problems that are going on within your company and providing structure in which you can solve those and then to highlight the next problem. So it's this constant exposing problems and solving them. And I think if, with that being...

...a culture, you know, there's certain things that you can implement, certain things that we can create on the shop floor, ways to get leadership involved, ways to get the employees involved, because we want that to become the everyday cycle, the everyday activity of everyone within the organization as they are looking for and seeing while this is the next barrier in front of me, the next turtle I need to fix, and then they have the tools, in the capability of the support from leadership to be able to solve them. That type of culture is is not something that just happens overnight. It's something that has to be driven to the whole organization and, you know, kind of put on a, you know, platform, but but, but really just kind of the foundation has created for people to be able to act that way. I think it is very common nature for us to not want to see problems, for us not want to expose ten you know, people don't that's that's not tradition, you know, by nature of us as human beings, right, we don't want to go to our boss and say, oh my gosh, here's this problem is happening. You know, it's very easy, as they know. I don't want to hear the problems. Just fix it. But in the toyter production system and Le Manufacturing, that the whole culture is. How do we expose those and how do we get everyone working on solving those and and then I think is a very different culture than many companies end up developing because they're very focused on just getting things out the door and I think it takes the strategic mind to start to develop that culture for improvement on a daily basis. Got It well and I know, Jason, that you're going to have a number of resources that you want to to leave our listeners with. But before we do that, there is there's a question we've been asking a lot of our guests and you know, obviously we had talked about this a little bit before the episode, but in terms of your legacy, whether that is personal, professional or a combination of the both, kind of what is the legacy that you are hoping to leave behind at the end of the day? You know, I think what I get excited about,...

...or what I really want to see, you know, or be able to look back on, is I get excited about saving companies. Many companies that I go into, you know they're on the brink of closing down, there at a point of you know, financially, struggling to make it through the next day, and it's exciting to me when I'm able to go into a company and, you know whether it's, you know, a hundred employees, five hundred employees or twenty employees, and be able to help guide them to a place where that company is continuing the exist or if we're, you know, fighting overseas competition and where, you know, allowing keeping that company here in the US instead of allowing it to you head to China or somewhere else. Those are the things that excite me. So I want to be able to, you know, towards the end of my career, be able to look back in and hear from different business owners or different companies that are still here because of the work that we were able to do at evolved and the teaching and the creating that culture of continues improvement of these companies where they were able to sustain long term, versus, you know, hitting that that cliff and not being able to recover. So for me, that's the legacy that I'm hoping to leave is a lot of very stable companies in my path. Yeah, that's great. I mean it's a that's it. Obviously it's a beautiful legacy to leave behind and very outward focused, which is which is fantastic. Jason if any of our listeners. They want to, they want to get in touch with you, they want to find out more about today's topic, they want to find out more about evolved. What's the best way for them to go about doing that? Well, I think the first thing is is they can go to my website, which is e. hip consulting, which is hip consultingcom. If you go to forward slash B to be for your listeners, they'll be a nice landing page there to welcome them. You...

...can also and when you go into my website, there will be a pop up. I have a simple executive guide that can be downloaded for any you know business owners or anyone that's that's considering the LEAN TPS path for their company. It's a very simple little ebook, ply about ten or fifteen pages, really easy read. That be a great way to kind of get to know a little bit more about what we're about. But you can connect with me on social media, instagram, Linkedin, and then I also have a short youtube page where you can go on and just hear some of my simple thoughts. I just record them and put them out on Youtube as a leave different clients and different learnings that I have. Some some simple tips out there on YouTube. So those are the best ways and then probably the the the last way is, if it you know, you really want to take that net next step, you can schedule a call with me on my website or reach out personally, and I love to talk with you and discuss your business and and see if there's a way that we could work together. That's incredible. Will Jason, thank you again so much for taking some time on your schedule and sharing your lessons with our audience today. We really appreciate it. Well, thank you. I really appreciate you having me on the show. There are lots of ways to build a community and we've chosen to build the bead 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, we'll talk family, will talk goals and dreams, will build friendships. So if you'd like to be a part of a be to be growth dinner in a sitting near...

...you go to be to be growth dinnerscom. That's be to be growth dinnerscom. Thank you so much for listening, until next time.

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