Ep #4 Maximizing Business Profitability: The Crucial Role of Human Resources with John Beaty

Introduction: 0:13

Ready to get the inside scoop on equity funding? Tune in to TDJ Equity Funding Insiders podcast for an in-depth look at what it takes to access financial capital and maximize your investments here from experienced professionals, including bankers, underwriters, loan officers and industry experts, as they share their unfiltered stories and valuable lessons on securing funds.

Jacquelyn Jackson: 0:47

Welcome everyone. Welcome to our podcast today TDJ Equity Funding Insiders. So we are actually having a special guest for you all today. This guest is actually dealing with the human resource services that actually affect you on getting funding. A lot of companies don't think it does, but it do, and so we have a guest that's coming in to show how having your business compliance and having your human resource services for your job descriptions, your employees and everything lined out how it affects your bottom line, which is revenue. So we're going to have a discussion about that today and we want you all to sit tight and listen to what inside information he has for us. Let's welcome. Our guest is Mr John Beaty from Texas and he's here to discuss his human resources services and how they work for us. Welcome, John.

John Beaty: 1:38

Well, thanks, jackie. I appreciate that man. It's a fully loaded question where people ask like, what is HR? I mean there's so much to unpack because essentially HR takes care of businesses, people, but I mean it's really everything and anything people based, and the importance of HR gets overlooked. A ton People over think of it as like a cost center versus a profit center, and that could be a huge difference in a business's profitability and their equity as far as a business is concerned as well.

John Beaty: 2:09

So kind of, take it from the top, lots of businesses have people right, they have people at service and take care of their clients. So if you're not maximizing the potential of those folks, then you're suffering on your backend, whether it's revenue or it's bottom line. So from an HR perspective, it's not just where the benefits are or payroll comes from or where people go to complain. It's more of a strategic outlook of how to put the people in the right places, service them, engage them and help them develop in that role. By doing that you're maximizing their potential. And basically, business 101, happy, engaged employees produce more output. That output usually leads to more revenue and other things along those financial terms. But how do you get to that spot. Well, it all starts from the very beginning, brian, the right job descriptions that you just said. I worked at a company once where I went to work there at a certain job description and six months into that job it changed. My engagement level went way down.

Jacquelyn Jackson: 3:12

So my output went way down.

John Beaty: 3:14

I was actively disengaged in that job because I wasn't doing what I was hired to do, what I wanted to do. And so you have a lot of folks like that. And what does that lead to? It leads to turnover, and turnover is costly. To acquire a new associate it's costly enough, but to lose an associate it's even more, because you take all that time, that effort to hire that person on, train them, develop them, give them up to speed and after a year, if you let them go, you lost everything that you put into there. So it's just like having a client it's harder to obtain a client than it is to retain. So you don't work on working on that retention for employees, and so top tone is also an issue too, right.

John Beaty: 3:53

So you have your job descriptions, you get those solid down. Then you look at how do we get the best of the best? Well, you're going to have to have a great compensation plan. You're going to have some sort of benefit offering Not just medical but maybe the employee assistance program. You have dental vision. The benefits, of course long term, short term, disability, good people, good PTO policies. Maybe you have a community online program where you can get cooking classes, and all that because people are looking at things differently now. And the last part is a culture. You have a great culture, so that's what people are looking for. Back in the day, people worked and accomplished things to be satisfied with their job right, the job satisfaction came from. Nowadays, that's changed.

John Beaty: 4:41

Yeah, it is, people are working for their lives versus people working their job as their life Exactly. And so, considering all those things, you've got to have things in place. So the next thing is you find the top talent, you hire the top talent. Now, now we're looking at okay, what do we do now? Well, let's look at the culture and let's train these folks. So, starting off, lease a basic training program from a compliance standpoint, because that's a big deal.

John Beaty: 5:07

A lot of people don't really pay attention to the compliance Can only save the company money and save them the risk factor of litigation, even like a place in Texas where you have a right to fire and hire, but it's a heavily litigated state. So even if you fire somebody, there could be some consequences to that If you didn't do it right. So, making sure compliance training is done from like workplace harassment, sexual harassment, workplace violence, et cetera, getting those all taken care of. But the next step is building a core structure that helps engage and develop people, whether it's developing into your culture, because we want to have a culture by design, not by default, which most companies don't realize that they have a culture by default, that's right.

John Beaty: 5:47

So you got to work on that. Your values equal the bottom line to what that culture means and they can't be aspirational values. Yeah, they'll live it. They'll live it from the top to the bottom. And you see a lot of companies like, hey, we have integrity, you know, we want to do the best for our people, et cetera, et cetera. But it, when it gets down to that middle management, you see those things breaking apart.

Jacquelyn Jackson: 6:06

And that costs it costs a lot.

John Beaty: 6:08

It costs turnover, people lose, people leave jobs because of their management, really now because of the company. Some do, but I agree.

John Beaty: 6:15

Most people leave because their boss, they just can't work. Right, it's happened to me, as I'm sure it's happened to everybody else. A lot of people on this on this podcast are listening. So you get them trained, you're developing their skill sets. Then you got to measure the performance and not just for, like, the firing purposes. Right, a lot of people are like, well, we want the performance indicators to make sure they're doing their job. Well, you also want the performance indicators to help people be motivated, engaged. People want to be told I'm doing a good job or if I'm not doing a job, what can I do to do better? Most people want to succeed in life. I know I do. When my boss comes and tells me like, hey, you're doing a great job, I go. Can you sit down and tell me what you think I'm doing good? I'm going to go through that whole process because his thought process of doing good may not be mine Exactly.

John Beaty: 6:57

But on the other hand, too, sometimes people just don't work out and you need to correct their actions. Right, and it's not one of those things where, yeah, for the past six months he's been coming in late and then you some day you'll hey, you just been coming in late and you got to let you go. You got to tell people ahead of time, not only for them to be able to correct that, because, again, it's it costs you, it's it costs a lot of money to acquire talent. But then that last piece, it's hey, maybe this person can change and be one of my best associates if he just knows what he's doing wrong. But if you fire him and he doesn't know why, litigation could come up, right, right, maybe it's a woman that's pregnant and you fire because she's been late. Well, she can turn around and say, hey, you fired because I'm pregnant. I've seen it. It's happened a lot.

Jacquelyn Jackson: 7:37

So basically what you're saying, john, not knowing the compliance or knowing actually the HR process of what, how it really works for your company and how it can save your company, you can lose a lot of money. Oh, yeah, you know, and a whole lot. Now let me say well, I want to add to this too, because as a loan broker, we deal with finding funding for business owners and real estate investors, and so just recently we had one of our business clients, was able to get him $1.7 million, but what helped him to get that was the fact that it's a line of credit that he's getting. Now let me show you how to let a lot of credit works with what you're saying. In the process, they always ask them about their hiring what are you going to use, use what you're going to use the funds for. And basically he's using the funds for hiring, along with some equipment.

Jacquelyn Jackson: 8:19

On the hiring part, they asked what's your projections of what you think your number is going to be for as your payroll and your expenses and all of that? That is what they're asking to see what you look like. Now, people don't understand it. On a line of credit, they do an annual evaluation of you every year, and so what they're looking for is to see how stable your company is, cause you know they can cut that line of credit off. You can have it this year and they cut it off next year If you don't qualify based on how you looking on paper and in your business.

Jacquelyn Jackson: 8:49

So it's important to take that human resource part seriously, especially when you talk about the turnover and the proper way of doing stuff, cause they ask you do you have any jurors, jurisdictions or not jurisdiction?

Jacquelyn Jackson: 8:59

But if you have any cases coming up against you and stuff like that and they need they asked that when they're asking for money and that's what I'm saying it's important. That's why we wanted you to have be a guest, because what you talk about is what I think a lot of people I definitely want you to talk about that the don't realize in those. It's something that do cause my guy, the 1.7 guy he realized how important you are. He actually had our human resource services that worked with him with his company. He had 50 employees, he got 50 employees. So that's understandable. So but it's some companies that think, oh, and they got 10, 12, they don't need that type of service. I can handle it. So if you would tell our listeners today how important, or even the story of how you've seen it by not having or utilizing the services that you have, what happens with that? How does that?

John Beaty: 9:40

happen. Yeah, there's a lot of good stuff that you just said. So let's kind of hit each one by one question at a time, okay. So from that compliance piece, so what we're talking about really is risk. So, whether it's some of the things I talked about before, like workplace violence or things like that, um, someone has a lawsuit, those department of labor type of things we call it um, uh, eoc charges, right, equal opportunity charges. So someone comes back on that. One of those charges could put a business out. I mean, I've seen lawsuits anywhere from 1.2 million.

Jacquelyn Jackson: 10:10

And it would actually stop a loan too. I can take that as well. Oh, absolutely it would stop it.

John Beaty: 10:14

It's a huge risk and you know I deal with a lot of poverty equity groups and when they see those they're scared off and the evaluation goes out the door. So putting things in place to prevent that is huge and part of that is the HR piece right.

Jacquelyn Jackson: 10:26

But even if it's putting in place, if you can show you have it in place, even if you haven't rent through it, cause sometime they ask them you know, let's see your policies, your procedures, this, this and this, and that's where, if they're working on an HR, you all can provide that for them when it could be with it. I think you call it compliance period. You can show we are in compliance. We have this set up to handle this type of situation. That's why it's good to have you too, right, yeah.

John Beaty: 10:48

Well, here's a funny statistic 70% of all small businesses are out of compliance.

Jacquelyn Jackson: 10:52

Hmm, what's that percentage again?

John Beaty: 10:55

70%.

Jacquelyn Jackson: 10:56

Okay, it's crazy, it's crazy high.

John Beaty: 10:59

Um, the thing is, you got 50 states and we live in a remote workforce place right Now. Every single state has different compliances, every single one of them Wow, like California is different than. Texas. Texas is different than Massachusetts. Massachusetts is different than Wisconsin. All of them have something different, whether it's taking a uh a compliance course or making sure payroll is done a certain way. I mean, there are so many different things and that's where it becomes a huge hassle.

Jacquelyn Jackson: 11:20

Let me say that so that means if I have a friend that's in business in California and I'm in Texas, I'm going to call them about a personnel problem I have and she's going to give me her best recommendation based on what you know in California. It could really be wrong, is what you're saying? Uh, yeah, a possibility.

John Beaty: 11:38

So to be able to have the knowledge let's say I'm a business owner, I'm not an HR expert- HR sure. And people have to go continue education courses to understand all these things. That's good. That's good, so I'm, I'm a small little business owner.

John Beaty: 11:48

I have 15, 20 employees. I have millions of employees. I have maybe in three different states. Okay, well, I have to Google. Google is my best friend because that's all I have, but Google is, on the very efficient because it doesn't.

John Beaty: 11:59

There's so many different things out there. Having a professional that's certified in this that can help you limit the risk of our on this is the most important thing, right? So, regardless of the situation, it's hey, you know, don't take this lightly for your point, from a financial piece, from somebody looking at me, what's my evaluation? Uh, but just to protect your assets, okay, having somebody being able to be back there understanding the compliance, uh, is a huge, huge factor. The other part that you were talking about was the talent piece and the evaluation.

John Beaty: 12:30

So you have a company that has high turnover. Well, that's like I said, it's a costly, exactly Problem. It's going to cost company quite a bit to keep hiring and hiring, and hiring and hiring. There's a lot of processes that require someone to hire into a business. As many people know, if they've ever hired people, it's kind of a pain.

John Beaty: 12:45

There's a lot of things to go through there from you know, putting out on the job boards. Maybe you have an ATS and applicant tracking system or maybe you have a recruiter person, uh, and then getting them up and trained, cause that person, when they first start, most likely they're not being productive, right? They're in that, that startup phase, that that um honey move phase with the company, where you're getting to know the company, getting to know my position. So it's usually, you know, anywhere from three months to a year before they start being productive in the company, right? Uh, I know, being in the sales industry, if you're going to one industry to another, it takes time to learn everything. Most companies will understand a year ramp up time because it's so much. But imagine training that person for a year and then you're gone.

John Beaty: 13:24

That's money that has cost you for sure, and then you're looking at it from the outside of you as an investor in. Well, these people can't just keep anybody. Exactly, what are the? I mean, there's a lot of money being wasted right here, and so there's a risk there too, because you want these people to be productive in your company, Right? Well, it's hard to be productive if you keep rolling people in and out and in and out and in and out of your company. So there's that matter. And then the last piece is going to. You know, if they're not fully engaged, if you have a bad culture and you're not seeing the profitability that you want, you got to go back to what I said earlier. Ask yourself, if I'm not happy with my profitability to show on paper. Then you got to go back to your people, Right? What are the what? Why are my people not being as productive as they can?

John Beaty: 14:04

Exactly, Like I said it's that culture by default, by design. You got to design a culture and he's got to be top bottom. That's an HR person to come in. They would do climate surveys to understand what they're doing, what they're feeling from the top down which is great yeah. And that report comes back to you because what you think of a business owner? Hey, everybody loves me, everybody's happy, everybody's going great. But then once you really go, start asking people right Exactly, it could completely change.

John Beaty: 14:29

I was talking to a young lady the other day. She is at a recruiting company. She was telling me she had a friend that was about to leave. She was going to give a no, no call, just no show, leave, walk out. And because her husband got a job in another state and because she was having difficulties with her manager and she would allow her to work remote but she was one of their top producers, and so he went to this conference and someone told what was the last time you talked to your people and asked them how they felt? And the guy was like I don't think I ever have. So that day he went to go talk to her. She broke down in tears because she said, uh, no one was going to ask me anything about how I felt about this company. From that, uh, they did work something out to be remote so and he was scared it was going to not work. But it ended up working and so he got to keep one of his best employees just by having a conversation.

Jacquelyn Jackson: 15:19

And that's what it just talking to and that's where you guys come in to make them do that type of valuation. I think business owners are so used to working in our business and we do as well as but we need to work on the business and I'm talking about people. I know we have clients that have 50 employees Cause you know they say, well, you're not really a business owner, do you have employees? I know some to have employees and they still working in their business, because you have to understand that professional services there and you're going to need it, they're going to know exactly what to do, and that's all we're saying when our clients that we talked to and we we have fun millions of dollars with different types of clients and different industry.

Jacquelyn Jackson: 15:57

Okay, but we notice as you get bigger and at three and four and five and employees growing, you can't do the same thing you did when you had that one employee or you was. You wet, all those different acts. You just can't. So you have to have that in place and this is something I think is an insider I want to give everyone to be aware of when the banks and the lenders ask for documents like PLs, pls and balance sheets and cash flow and projections. You all have to understand that tells a story, and I think what you think is oh, they just asking something, just that. No, it tells a story about you. They don't have to come to your place. They can actually see where your income dropped last year and you know your income dropped this year. But two years ago you made this, what happened? And they also look at you know you had so many employees and you said you want to get employees, but then we're looking at your employees. This is a drop from month to month when you showed us your financials. So now you have a story that you're telling that you haven't opened your mouth to.

Jacquelyn Jackson: 16:53

But if you have the human resource services or, like I said, you as a performance advisor because that's what you do you come into the company and look at it and that's why we wanted him on our show. So you all can realize it's important to have this type of service as part of your business. If you're going to grow and you want to make millions and you have a product that is already making millions we have a lot of people already making millions you need to have this type of services because if not just like what you're seeing, it's going to cost that bottom line. So let me ask you this when someone is looking at getting this type of service as a business owner, what do we look for when I want to actually hire someone for you? Give an idea of somebody's in California. They need somebody. Of course we need them to call us so they can get you. But just in case they don't, what should they look for in HR services and performance?

John Beaty: 17:37

Lots of things. One if you have a revolving door, that's the first thing. Hey, why are my employees not sticking around. They're using me as a jumping point to go up to the next company or something along this line. Wow, two, they're in high growth mode. There are so many things going to happen, like you were saying before, when they're like four or five, maybe the company, everybody there has the same last name, and so HR wasn't that important, right? But as they grow, I mean, it happens a lot.

John Beaty: 18:01

These small companies start with the same family, the same last name, and then they grow to like 20, 30, like oh wow, we have employees.

Introduction: 18:06

What do I do?

John Beaty: 18:08

And there's no structure in place and they have they just start a piece billing Right, and what happens is then things start getting a little corrosive, right? It goes back to that culture of default and things fall apart. And when you're not seeing the profitability you want, that's another time to look at HR. If you're not happy with your profitability, you need to talk to someone about HR period. Wow. And then right now, like the things that I see are like you said when we were talking about the remote workforce how do we keep my employees engaged when they're like 12 different states? How do I communicate properly with them? How do I maximize my ability? The great thing about a remote workforce now is that, instead of having a pool of people just in your local community, now you have the entire country, right, and so now you have a plethora of fighting the best talent, but if you're not being able to hire the talent you want again.

John Beaty: 18:58

That's when you got to look at the HR, because you've got all these people across the country now and you see the unemployment, I mean it's going to get tight here a little bit and the way the economy is going to get better and better and the way the economy is going we're going to see a little, probably a little, shift in the market. As far as hey, now it's going to be a very employee Like I got to be really careful of keeping my employees and finding the talent, because that pool is going to get real small pretty quick.

Jacquelyn Jackson: 19:21

Well, let me ask you this so can you all help them? Do you work with them for projecting what the economy is going to look like? So when they get to hiring, you all kind of give them the numbers of what they need to be looking for for hiring people in their companies. Do you help with them alone that far?

John Beaty: 19:36

Certain aspects of that, sure, based upon I don't know the specifics of how my company handles the bug, I'll give you the kind of high level, but understanding the financials from a company, what their goals are, because the HR person again is not there just to do payroll and that is to be a strategic work the CFL and the CEO To understand. Okay, so here are projections, here's what we're trying to accomplish. And then, how many people do we need to put in seats and can this one person take the workload of all this? Where does their output mean? You don't want a person overworked because they're going to get disengaged real quick. You burn somebody out, they're gone, right, they're going to find another company where they can get paid exactly the same, doing less.

Jacquelyn Jackson: 20:15

Wow, and that's true. I've seen that happen.

John Beaty: 20:18

I see a lot of folks where, yeah, we laid off 10 people. So, hey, james, you're going to have to take the load of this other two people, but he's not getting paid anymore. But ABC coming over here is going to say, hey, come work for me. You can do what you were doing before. You don't have to do that extra workload for $30,000 more, right? So then you kind of look at that. So now you're putting yourself in a very competitive market for losing your employees.

Jacquelyn Jackson: 20:36

So I mean there's so many.

John Beaty: 20:38

Like I said, I could talk hours about this, right, because the facets of this are incredible and before I even started with the company I'm with, I really didn't really understand HR.

Jacquelyn Jackson: 20:47

I mean, I thought it was the cost of us, though.

John Beaty: 20:49

Yeah, Until you dig into it, you don't know what you don't know. Um, and then, uh, as I told you, I had a job. I left because of a lot of different things, HR wise and once I applied what I my knowledge now to that I go, oh yeah.

John Beaty: 21:03

That's clear cut, yeah, I mean to lose an award winning employee who's been extremely successful in his career and then, all of a sudden, he's leaving the company because the performance was in there. Yeah, I was, I was disengaged. You don't want those, you don't want your, your, your, your customers talking to disengaged employees Exactly Imagine that.

Jacquelyn Jackson: 21:22

Oh boy, you know is trying to look for no job you don't want that.

John Beaty: 21:26

So you know you gotta be careful with talking to your employees and understand. You know there is a feeling aspect of it. I mean human resources, resources has an emotional side. Uh, like recently when we got off of the pandemic, you had a split workforce. You had some people in the office, some people on zoom. So I I heard this a ton and, uh, our thought leadership um director for our company, said this to me and it made perfect sense. So, john, you ever notice when you're on a zoom call or you're in person, the the leadership there goes so great to see people in the office again, so great to see their faces, but never once acknowledges the people on zoom. Wow, think about the perception that that gives to people.

Jacquelyn Jackson: 22:05

Am I not important.

John Beaty: 22:05

I'm going to miss that, that job promotion because I'm on zoom and I'm not in person.

John Beaty: 22:10

So you have to start thinking about small things like that and how to really engage them. You don't want to disconnect people and if you're going to have a like you know, bring people in and have them all like working in the, in the, in the office you got to, you got to build a culture of that. So on your job descriptions, hey, we're, we're a company that is tight, family-like and we're collaborative. We want to be able to speak with each other and in instance, in person. So once you give that upfront, okay, people are going to come work for, they believe in that, they're going to come work for that. But if you don't put that in there and that's kind of the expectations that, hey, I can work remote, but then all of a sudden it's like Nope, you got to be in the office. Well, think about that person.

John Beaty: 22:47

They're not going to be engaged anymore. So that's the part of the, the turnover part, and I can go on and on and on and keep going on tangents here, but it's crucial that people pay attention to all this. And if you, if you, if you're not going to hire an HR person, look for a third party company that does it. There's tons of them out there.

Jacquelyn Jackson: 23:06

Well, let me ask you that on that, no, when. How many employees should I have before I have the HR person? Hr person, let you tell us, should have it when I have the first one, should not? Yeah. Yeah, I figured you said that. So then what about when? Should I look at having the third party compared to my HR person? How many employees you recommend?

John Beaty: 23:23

Oh well, it really depends on the situation of the company. For example, ideal companies that use they might have two or three HR people and then they still use a third party outsourced.

John Beaty: 23:36

Because remember there's a lot of those tasks that I was talking about the payroll piece, administration, part of it, all that Okay, well, that takes the time away from the HR people to do that strategic piece. So it has to do with workload. Like, how much workload is there for a 10 person, 15 person engineering company? They're not really a huge HR type company. Right, they're pretty happy where they're at and all that, but they're small pieces that they still need to do compliance wise. You know handbooks and policies and you know benefits come up and all these little small things.

John Beaty: 24:07

So they may not need an HR person, but the third party HR service would be great. Now, a company is a little larger, they get calls all the time, they have a complicated payroll and that they have a high growth mode and there's lots of different pulling parts to their, to their, their business and lots of different divisions. Oh yeah, you want something HR person in place, cause you need that strategic mindset in place. Third party HR folks can only do so much I mean, they're only integrated so much to accompany. Uh, because we're not sitting down every day with the CFO and the CEO and understanding.

Jacquelyn Jackson: 24:40

So we need to make sure you you have your HR person or people to actually work with the third party as well to help the company develop. Yeah, I mean yeah a combination.

John Beaty: 24:49

I see a combination usually working out the best.

Jacquelyn Jackson: 24:52

Okay.

John Beaty: 24:52

Because it takes off the workload. Um, another example I have a customer in mind that before they worked with us they had four HR people. One was kind of the head of HR and they were trying to do that strategic piece. But they have another person the full time doing payroll the whole day, every day, just payroll, payroll, payroll, payroll. That person was getting paid $80,000 just to do payroll.

John Beaty: 25:13

And then you have another person that their whole entire thing was on the compliance piece because they had, you know, they had 20 employees here, they were in like 18 different States and all she did was focus on that piece. And then you had one other person that was kind of, um, uh, a more of an assistant to the HR, didn't have a certification, but their whole thing was doing some of the administrative tasks, making, like, hey, if someone had a problem with their login or whatever that is, that was their job. So you have about I don't know 150, 200,000 dollars worth of salary, right, the more than that probably, um, that could probably be reduced. And now we're not trying to replace those folks. What we're trying to do is get those people reallocated into a different, uh, part of their business so that way they can work all in the business, exactly.

John Beaty: 25:54

You don't need a person doing payroll all day long.

Jacquelyn Jackson: 25:56

Well and see, and that makes a lot of sense. We don't realize that. I mean just you bringing that out into my attention because I work with a lot of companies and business development as well. Our main thing is loan broker, but I, my background, is business development and that's something I know.

Jacquelyn Jackson: 26:08

Owners do not look at that, that you have a person working this. Like I said, they've been there. When your names were last names was the same, and so now you have grown so big to the point that you actually probably would need someone else to come in and you can utilize those people and a better, maybe a sales position or something else, like you said, and let you all handle that. So I don't think they think of that. You know it's like once we start this way, we're going to keep this way for years. But you're basically saying you got to open up to have you know somebody professionally to come in to help your company growing Cause I think and you tell me what you think I don't think you can grow as well, uh, without some type of service like what you guys have.

John Beaty: 26:45

Oh, yeah, what do you think? Yeah, no, that's exactly right. I told, uh, um, the folks I talked to all the time, you can grow perfectly fine without me. I mean you can grow. I mean I have no doubt you will cause you have a success.

Jacquelyn Jackson: 26:56

Right, we're not saying you won't right.

John Beaty: 26:58

But how fast do you want to get there Exactly? You want to get there faster. I mean, you want to wait, you want, you want to look at a 10 year outlook or a five year outlook to get where you want to go Exactly, and that can be everything. Again, it goes back to the profitability. Are you happy with the profitability of your 10 year outlook? If the answer is yes, then you don't need me.

Introduction: 27:14

Okay.

John Beaty: 27:14

You don't need an HR service. If you're super happy with that and I mean I'm a big believer in broke. Don't fix it.

Jacquelyn Jackson: 27:19

Right, right.

John Beaty: 27:20

But if you go, you know what probably could be a little bit more profitable. That bottom line of that revenue could be a little higher, the bottom line could be a little bit lower Then yeah, you probably want to talk to somebody, and that's simple, it is. I mean the, the. The equation is if you want to change your success, success equation is look on, look at. Are you happy with your profitability? Cause it affects everything whether you got to do that.

Jacquelyn Jackson: 27:40

Check yeah, correct.

John Beaty: 27:42

And for your piece that I mean that's how people look at it. I mean how profitable is this company?

Jacquelyn Jackson: 27:47

How, how are you going to be here five years from now. I mean, we do it alone for 10 years and you want to make sure you're going to be there. That's why they do online accredited. They do a yearly annual check. You just don't get that line of credit and they leave you alone. They want to see everything every year. So that is important. They know that. It's just. I think that's the reason why we had this podcast, because, as business owners, a lot of us we don't know that, and so what you're saying is what we need to go after. So, like we can tell you, we have a bank, you have a banker, you have an attorney, you have a CPA, so you need to have a business development, but you should have HR services Something.

John Beaty: 28:22

You got to have something.

Jacquelyn Jackson: 28:23

Yes, and so I think that's something we just not aware that we need, but it all affects the bottom line, which is revenue, and it also affects you for us getting equity partners, because, you said, equity partners look at a lot different than lenders, do they look?

John Beaty: 28:36

at it a little bit more stringy and, I think, right, you think on the other side From an equity point of view, that that P and L line from from uh for for the employment part is it's pretty big. I had that fringe cost, the cost after salary. I mean they don't want to see a high fringe cost. So a lot of folks don't do due diligence. You kind of uh. It frustrates me so much when I talk to business like oh, we're good where we're at, You're not going to do any due diligence. I mean you're not going to check into it. It's like, okay if you're. If your mortgage rate is like 7% on your house and then all of a sudden interest rates dropped to like 2.3%, are you really not going to do some due diligence?

Jacquelyn Jackson: 29:12

I don't want to go that low. No, I like spending a lot of money. I love spending more money.

John Beaty: 29:16

And not I'm getting less service out of it, Right?

Jacquelyn Jackson: 29:18

Right.

John Beaty: 29:19

Um, it's like when everybody cut the cord off the cord off cable and went to all streaming, seems they, you know they do some due diligence. You know what makes more sense to to do all this and get cheaper, and I get more out of it with my dollar, especially when I don't watch everything.

Jacquelyn Jackson: 29:30

That's okay, that's what people say. I only watch one show, so that's why they went with that I don't know.

John Beaty: 29:34

I was paying like $300 for dish for like a bunch of little boxes and show TVs that I didn't watch. I could just switch to like Hulu TV and.

Jacquelyn Jackson: 29:42

Right now if you type in person to watch every show that's on cable.

John Beaty: 29:45

A lot of people do they're not making money then Watching that much TV. You're not out there making money, so they're not listening to this right now.

Jacquelyn Jackson: 29:55

Right, okay, they're the same people, but anyway, if you watch a lot of television, we can see you justify and having the cable. Yeah, you say yeah, so that is great. So we want to definitely thank you today. I mean, this has been really good, is very enlightening. I want our listeners to know you can contact us at the podcast at TDJ, equity funding insiders net. If you all want to reach out to John and have him and get with you guys, definitely contact us and we can make that happen. As well.

Jacquelyn Jackson: 30:26

As if you have any questions or comments about to show that you Want to get, send those tools when you download. We definitely want you to listen and rate us as well. Again, as loan brokers, we're actually trying to help you learn the insights of getting funding for your business, and we're talking about Thousands, millions of dollars, not just, you know, ten thousand, twenty thousand. They are doing it, we are doing it, it is out here, but we have to be, as a business and a real estate investor, you have to be prepared to taking in those funds, okay, so we want to thank you all for listening us today. We look forward to seeing you next time. Until then, you all take care.

Introduction: 31:02

We hope you enjoyed this episode of TDJ equity funding insiders podcast. If you'd like to be a guest or get in touch with us, please visit our website at TDJ equity LLC net forward slash podcast or email us at podcast at TDJ equity funding insiders net Insiders net. Until next time, take care.