The Path to Hyper Growth with Rob Braiman: An EOFire Classic from 2021

0:02Who's ready to rock today, Fire Nation? JLD here and welcome to Entrepreneurs on Fire, brought Brought to you by the HubSpot Podcast Network, the audio destination for business professionals with great shows like Success Story Podcast. Today, we're pulling a classic episode from the archives, and we'll be breaking down the path to hyper growth. To drop these value bombs, I brought Rob Brayman into EO Fire Studios. Rob is a veteran, serial entrepreneur, CEO, and founder of Cogent Analytics, a business development firm awarded Financial Times fastest growing companies in 2021. And today on Fire Nation, we'll talk about how with every great challenge comes a great opportunity, how if you believe in entrepreneurship, now is the right time, and how to define roles and responsibilities and KPIs and oh so much more.

0:46And a big thank you for sponsoring today's episode goes to Rob and our sponsors. The Next Wave, your chief AI officer, hosted by Matt Wolf and Nathan Lanz, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals. Matt and Nathan are leading AI creators in your guiding light in the AI and technology frontier. AI technology is transforming the way we do business and the media landscape is fragmented. The Next Wave strives to be the leading podcast on AI technology and how you can apply it to growing your business. Listen to The Next Wave wherever you get your podcasts.

1:19Ever thought about giving a TEDx talk? It's one of the most powerful ways to share your message with the world. And four-time TEDx speaker, Taylor Conroy from Thought Leader can help you get there. Visit thought-leader.com slash fire to join Taylor's free training where he teaches you how to land a TEDx talk and spread your message to millions. Rob, say what's up to Fire Nation and share something that you believe about becoming successful that most people disagree with. First off, John, thanks for having me on the show today. and and for me that's an easy answer I have since the beginning of time told my people if you're in the the business of representing others and it ever becomes about the build hour it becomes about revenue or it becomes about profit from an advisory capacity you're in the wrong industry so and I think that's fairly global I think whether you're an entrepreneur starting a business or your mature entrepreneur.

2:20Profit and cash is king in a business, but it should not be what is driving you day to day, right? Good customer service, good taking care of human resources, good care for process, good care for the management of the business of the business. And I think you have a recipe there, John, for success without having it be about the money. Well, thank you for sharing that recipe because that's why people are listening, Rob, The Recipe to Success. And I think something that we can really get some great knowledge on is the stories of successful entrepreneurs. So give us a little bit of background about Cogent Analytics and also your role as both the founder and CEO.

3:03I had the privilege of building three other companies in my life before I became a business analyst for a fairly large consultancy here in mistakes. And, you know, I just, John, was really at my core offended by the practice of it being about the build hour or being about, you know, what was the next engagement you could get from a client. And, you know, I stepped back from the equation in 2013, and you went back to my own personal values, right? Honor, courage, wisdom, faith, perseverance, and loyalty, which has driven me my entire life. And I just could not continue to align myself with that method or approach, considering we're representing entrepreneurs, we're representing small business owners, that in its core is a slice of Americana.

4:05And I built Cogent Analytics at the end of the day, because I wanted to disrupt an industry that I fell in love with that I just think lost its way and really became more about what you could get or what you can take and less about the client and raising them up because through their success is the cogent analytics success. So one thing that I mentioned during the intro, Rob, was the fact that we're talking about the path to hyper growth. So let's talk about a couple of main factors that you found in your experience lead to fast growth, both in a company and within people's personal lives. I am a traditionalist.

4:52As a matter of fact, the profit platform, I'm so much of a traditionalist that I developed something called the profit platform, which really is the foundational pillars to a business, whether you're a startup or a$2 billion entity. And that really is about business development, which is comprised of sales and marketing, and we can get into a much deeper conversation about the pillars, but then organizational engineering, and that's about right hats on the right head or the right seats in the right chairs. Process engineering, which is absolutely about how do you most efficiently produce or bring to market that what you do.

5:34And then important, equally such, is the measurement pillar, which is about performative measurement and the financial measurement. So I think when you fly blind as a business owner and you're really not managing during the game, what happens on your profit loss or balance sheet really becomes ancillary as opposed to the purpose of. So, you know, when I say I'm a traditionalist, I think really going at what you do in the form of strategic planning, whether you're planning for growth or you're planning for recruiting, you're planning for how do you develop or scale your business appropriately. I, you know, we have the privilege of looking at businesses every day of every week of every month of every quarter, John.

6:20And, um, you know, that what that affords us is the best insight, I think, into some of the foundational mistakes that small business owners make. Hence the profit platform was really a guide on to draw people back to the fundamentals and really dealing with some of the core or critical issues that I think affect every business, whether you're new or you're a mature company. Let's talk a little bit about organizational engineering. You just mentioned it a little bit, but let's go into a little more of a deep dive on this specific topic. Organizational engineering, as we advise our clients, really goes to every element of the people pillar.

7:06So when you think about who you're going to hire, how do you make sure you have the right leadership structure in place? What kind of team or culture have you developed within your company or firm? Clearly define roles and responsibilities. How communication is either successful or fails within an organization? So it's a broad, broad spectrum of issues that fall within the organizational pillar. Without boring your listeners today, I will say people, especially if you're a service company or you provide a service, really is the product that you bring to market. And you can think if you're a contractor or a manufacturer, it really still takes people to effectively bring your product to market and then make or fabricate your product to be able to sell into that marketplace.

8:01My personal belief is the organizational pillar is the, to me, it's the pinnacle of cogent analytics success because we don't think that we've become successful or we scale to the level we have because Rob Brayman is a savant. I think that cogent analytics success is driven through the fact that we've had many people in this organization adopt our mission, vision, and values, and then make cogent analytics better. So when I talk about organizational engineering, it really gets into the root of people, culture, retention, training, and remuneration. So one thing that Fire Nation loves are secrets.

8:44And I know that you have three secrets that you've learned about being an entrepreneur that you're willing to reveal. I'm sure there's something you may not be willing to, but what would you share as your three secrets about becoming and being an entrepreneur? Well, I was going to say if it was a secret, I wouldn't be sharing it with your audience. But no, in all seriousness, I think over the four, now five companies that I have built in my career, aside from all of the people that I've advised over the last 20, I really believe that most people start the journey of becoming an entrepreneur because they have a phenomenal skill set.

9:25They have a skill set and they have a set of values and they have a drive that is motivating them to do something of their own accord. And usually that is rarely coupled with a phenomenal planning endeavor and really fleshing out what you've got in your head and putting it down on paper. And, you know, as I say to my own leadership team, you know, the exercise of teaching a SWOT analysis, which means strength, weakness, opportunities, and threats, if you teach it well, strengths and opportunities are on the left side of the page and weaknesses and threats are on the right side of the page. And I foundationally believe it's our responsibility as a leadership group to deal with that right side of the page issue, which is weaknesses and threats.

10:19All day long, entrepreneurs can talk about what they're great at and what they believe and why they believe in their product. But most presidents, most entrepreneurial presidents do not spend the requisite time in the planning phase, which is about communications, about stating very clearly what your objectives are, setting the measurement to how we're going to accomplish it, and really drawing the team as a whole to a common objective. And I apologize for the long answers to short questions, John. So if you want to jump in, please feel free. No, absolutely. And, you know, what I really want Fire Nation to understand is this is why we bring people like Rob on the show, because he's somebody who has been there and done that.

11:05And he's created Cogent Analytics for the reasons that he shared. And now he's going to be sharing some of those strategies, tactics, and quote unquote secrets with us here today. So is there anything else you want to share before we take a quick break and go into the second part, Rob? I think the most important thing about entrepreneurship is that it's a wealth creation vehicle. And if I have a message, I'm sure I have some of my clients listening to your show today. At the end of the day, your business is a wealth creation vehicle. Equity matters. matters. When you sign on and you go to your attorney and you sign the paper and you become the owner, a lot of people convert that ownership back into its most primal, which is a J-O-B.

11:52I go to work every day. We're growing my company. We're doing well. But they don't look at the balance sheet or the wealth creation, that passive income called distribution post-taxable wage or taxable consequence. And I think that's a foundational mistake. I think if you're going to go into business, you have to plan for the exit the day you open the door. And you should be value mapping or equity mapping what your company is worth, not just profit and loss, but really dealing with the balance sheet. That is the health and welfare of any company. And I've been teaching again that, John, for 20 years.

12:29So we can go to break, but I think that's a deeper discussion as well. Absolutely, Fire Nation. We do have so much to talk about when we do get back from thanking our sponsors. We all know that starting a business is hard, but there are tools out there that help make it easier. HubSpot is one of those tools. And just one way HubSpot makes starting a business easier with their all new entrepreneurship kits. This all-inclusive kit gives you step-by-step guidance and frameworks to help you crush every stage of starting a business. I'm talking project management, professional email, and skill development templates, in addition to an entire solopreneur guide and freelance pricing worksheets.

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15:05Join Taylor to learn exactly what TEDx organizers are looking for in their speakers, how to write a talk that goes viral once it goes online, and more. visit thought-leader.com slash fire. Join Taylor for this free training and get your message out of your head, out of your heart and out into the world where it belongs. That's thought-leader.com slash fire. So Rob, we're back and let's just be honest. Fast growth actually does scare a lot of people because they may think that, Hey, like I'm going to lose all of my work-life balance. I'm going to never be able to see my family because I'm nose to the grind.

15:41So I'm working, you know, 60, 70, 80 hours a week just to grow fast. And I don't know if I want that trade-off, but how can one achieve fast growth without losing that critical work-life balance that at the end of the day, we all do want? Cash, first off, liquidity in that fast growth strategy, you know, growth kills more companies than any other reason in the small business community. You know, grow too fast, you run out of money, and now you're worried about paying payroll. And most of that is a symptom of a problem more than it is the problem itself. So being afraid of growth, I don't think is a prudent strategy.

16:27I don't think it's appropriate. I absolutely think that well-defined scale growth is a function of running any company. But now you're touching on something called work-life balance or quality of life issues, QOL as we refer to them. And I think that's critically important, right? We work to live, not live to work. And most often what happens, a business goes through generational breakpoints from that startup where it really is the owner wearing all the hats. And eventually you mature to the point where you've recruited some people and you've expanded your footprint, but you're still wearing all the hats.

17:12And we see clients all the time that are$3 million,$5 million, even$10 million operations where the owner is still wearing all those hats. And that gets to that organizational pillar favorite that I spoke about earlier, which really is you've got to clearly define role and responsibility. There has to be measurement associated with how you want somebody to perform in the form of a KPI or key performance indicator. That way, you're empowering the employee to truly take responsibility for their participation in your company. Giving them a mission or vision or saying that you have values in a company is only half the equation.

17:53The other part is creating a culture where you've got great communication and you've got great accountability through measurement because measurement isn't about me lording over them. It's about them being empowered by their own performance because most people truly want to grow professionally and be able to perform professionally. It's those environments where people are stifled that really kills the opportunity for scalable growth. And we see that time and time again. So let's get into some more details about Cogent Analytics specifically. I mean, we all want to be different. We all want to be unique.

18:29We all want to stand out. We all want to kind of have a niche perspective within our industries that does set us apart. So what did you do to make Cogent Analytic different from other consulting firms? My easiest answer is I applied a core set of values to our approach. And we don't break those values for anybody. We are always client centric. We are always client first. We are always considering the client's interest before our own. And I know that seems like an easy equation, but I will tell you, there's a reason why so many people have made up good jokes about consultants, right?

19:12You know, I chose an industry that I have a great passion for. And for me, it really was about, let's go back to the basics. Let's clean up the model and really make it about those that we represent, held us true to that value system. Now, the harder answer to that question really is about the structure and the approach and the market penetration that we start as a very small six -person firm. And today, we're trending towards 150 people, some six and a half, seven years later, after a pandemic. And, you know, where I think we set ourselves apart is through maintaining that relationship with the client and it not being a project-based firm, but really being a long-term relational-based firm.

20:06So if you think of an accountant and attorney, most business owners reach out to them when they have an issue that falls within their purview. And rarely do they reach out to an operational professional to help them deal with the substantive issues that go along with running a business on a day-over-day basis. And, you know, our view towards the marketplace is that if you're going to represent somebody, you know, you can make change or you can effectuate change in a period of representation. But that change doesn't become durable unless you're doing a continual review. your prior service, John, as I am, that OODA loop methodology where you're observing Orient and really consistently making sure that the client embraced the tools, used the tools that were implemented, and now are building blocks for where they can take their company.

21:08And I've always found it odd in the last two decades of my life that people so readily reach out to an accountant that really doesn't deal with any of the operational issues. And we all go talk to our attorney when we have a legal issue, but we have to work really, really hard every single day to build that trust and confidence and credibility with our clients in a consulting industry that really is designed to help them with bettering themselves, their families, their employees, their families, their community. You know, that's what I think our role is as a firm in Cogent Analytics. And I don't know whether that's dynamic or not, John, but it is what we believe.

21:51Now, Rob, you have accomplished a lot over the years. And by the way, thank you for your service. And I appreciate you bringing that up. Frankly, you could sail off into the sunset. I mean, you've done a lot in this world, but it doesn't seem like you're quite ready to do that for a number of reasons. So what is that next summit that you are looking forward to climb? So the last strategic arm of Cogent Analytics will be a private equity or investment group. We just see so many clients who are ill-prepared for secession. They're ill-prepared for transition, either through an ESOP or an MBO or a third party who's coming to look at their business.

22:36And, you know, those opportunities where we can, and I see it's two avenues, right? We find clients that are undercapitalized and are having real problems and they really need someone to understand how good they could be. And the other half of it is really succession. And we see those clients, we help them every single day. And most often, you know, I see, I've seen business go bankrupt because they were undercapitalized. And that just bothers me to my core. So much like I've taken a different approach to consulting work, the private equity arm of coaching analytics will, God willing, and the creek don't rise, will be equally as dynamic.

23:21Because if I continue to take a position with the small business community that it really is about them and their family and their employees and their families, then I think the rest of it will take care of itself. But that is the last hurrah, I believe I'm going to, that's my version of retirement job, right? Is still working in a small business community, still doing advisory work and, you know, God willing, closing out that last loop called private equity. Yeah. My father's the same way. I mean, he's a lawyer. He's been running his own practice for 32 years now, actually more than 35 years.

23:54And, you know, whenever anybody asks him about retirement, he goes, number one, he's like, well, I just love being relevant in the community. And he wants to do a lot of pro bono work and is, you know, later years here. So that's going to be really helpful and beneficial to a lot of people. And then he loves saying the joke, you know, listen, lawyers never retire. They just lose their appeal. So I know right now that Rob and other lawyers are laughing, but maybe nobody else, but, uh, I was going to say, I'm going to steal that shamelessly. Don't totally do it. It makes a lot of sense. And Rob, you've given us so many value bombs here today.

24:29You shared so much genius. So give us the one key takeaway that you really want to make sure our listeners, Fire Nation, walk away with from today's episode. Then any ways that we can connect with you and your business, any other calls to action you may have, and then we'll say goodbye. I will answer one thing, which is an entrepreneur never really retires. Occasionally you'll see people who have previously owned a business and then they've gotten into something else. But if you ever meet somebody who truly has the entrepreneurial bug, you know, the version of an entrepreneur's retirement is I get to choose when I go to work and I get to choose what I'm going to do when I get there.

25:12So, you know, that set aside, the wisdom I think I really want to key in on today is we're coming out of a global pandemic. And, you know, I know there's a lot of business owners that are, you know, short of the subsidy and the PPP and the EIDLs and some of the other gap closures. We still lost more small businesses in the last 16 months than ever in the history of our country. And, you know, for me, I lament that greatly. But I also know that with every great challenge is a great opportunity. So if you're listening to the show today and you've got an idea or you've got a passion or you believe in entrepreneurship and you're going to start a business, now I think is the right time to do such.

26:02And I would add that with, you know, we provide a lot of what I'll call free tools or insights into, you know, raising capital. How do you run managed cash flow or cash management? How do you structure your business appropriately? We've got oodles of white papers and case studies and things that people can draw from. And if you really want to talk to a professional advisor, our phones are on every day of the week. We have professional advisors that are willing to talk through challenges that you might be experiencing. You can go to CogenAnalytics.com or you can call us at 833-4MY-PROFIT. And, you know, every single day we're about the entrepreneur.

26:48That is our oxygen in our lungs and the blood running through our veins. Wow, I love this. And Fire Nation, I hope you take advantage of the additional genius that Rob and his company have to offer here. Because, you know, we can do just like the title says and find our path to hyper growth. But again, without giving up that work-life balance that I know we all want to achieve on so many levels. So Fire Nation, you're the average of the five people you spend the most time with. You've been hanging out with RB and JLD today. So keep up that heat and head over to eofire.com. Just type Rob in the search bar.

27:28His show notes page will pop up with everything we talked about today. Links to his call to action, to his company and all that jazz. And Rob, thank you, brother, for sharing your truth, your knowledge, your value with Fire Nation today. For that, we salute you and we'll catch you on the flip side. John, it's been an honor. Thank you, sir. Hey, Fire Nation. Today's value bomb content was brought to you by Rob and Fire Nation. Over the last decade, I've interviewed more than 3 ,000 of the world's most successful entrepreneurs. And I've created a revolutionary 17-step roadmap to your financial freedom and your fulfillment.

28:00I put it all into my first traditionally published book, The Common Path to Uncommon Success, personally endorsed by Seth Godin and Gary Vaynerchuk. The Common Path to Uncommon Success is a step-by-step guidance for you, Fire Nation, to achieve the lifestyle of your dreams. So visit UncommonSuccessBook.com and learn more about how to order your copy today. And I'll catch you there or I'll catch you on the flippity flip side. The Next Wave, your chief AI officer, hosted by Matt Wolfe and Nathan Lanz, is brought to you by the HubSpot Podcast Network, the audio destination for business professionals.

28:35Matt and Nathan are leading AI creators in your guiding light in the AI and technology frontier. AI technology is transforming the way we do business and the media landscape is fragmented. The Next Wave strives to be the leading podcast on AI technology and how you can apply it to growing your business. Listen to The Next Wave wherever you get your podcasts. Ever thought about giving a TEDx talk? It's one of the most powerful ways to share your message with the world. And four-time TEDx speaker, Taylor Conroy from Thought Leader can help you get there. Visit thought-leader.com slash fire to join Taylor's free training where he teaches you how to land a TEDx talk and spread your message to millions.