The New Rules with Alan Pentz

In this episode, Alan and Tonya analyze Mario Draghi's report on the European Union's economic challenges. They discuss the EU's failure to produce large tech companies, widening GDP gaps with the US, and the sustainability of Europe's welfare states. The conversation covers the EU's regulatory approach, particularly towards tech and AI, and its impact on innovation.
They then shift to examining AI valuations and potential bubble concerns, referencing insights from Bob Elliott, former CIO of Bridgewater Associates. Alan explains the challenges of AI adoption in businesses and the gradual nature of AI's impact on workforce displacement and economic changes.
The discussion also touches on the changing dynamics of US foreign policy, questioning Europe's relevance as a strategic partner, especially China. Alan argues for a shift in US diplomatic focus towards Asia.
The episode concludes with a humorous look at Saudi Arabia's ambitious NEOM project, highlighting the potential pitfalls of unchecked ambition and lack of government opposition.
Episode Highlights:

• [00:02:35] Discussion of the EU's lack of large tech companies and widening GDP gap with the US
• [00:06:37] Critique of EU's regulatory approach, especially the AI Act
• [00:09:59] Analysis of Draghi's proposed solutions for the EU's economic challenges
• [00:30:19] Examination of Europe's role as a US partner in dealing with China
• [00:37:24] Exploration of AI valuation concerns and Bob Elliott's insights
• [00:49:01] Humorous discussion of Saudi Arabia's NEOM project

Quotes:

• "The EU hasn't, uh, produced a company in the last 50 years that's worth over $100,000,000,000."
• "The EU the EU has prided itself as the regulator to the world, which in the article I say is, like, priding yourself on strangling kittens."
• "If you wanna be richer in the long term, you need inequality. That's just the way it goes."
• "I do not see US foreign policy. Strategic interests are not in Europe, And, um, I think that that's gonna be that's gonna be the story of the next couple decades."
• "So his point is that if everybody does that all at once and lays everybody off, then no one has any money to buy anything."

Episode Resources:

• Mario Draghi's report on EU economic challenges
• EU AI Act
• Bob Elliott's analysis of AI valuations
• Patrick Boyle's YouTube video on Saudi Arabia's NEOM project

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Alan and Tonya begin by discussing recent insights into renewable energy, particularly solar power. They explore the often-overlooked "soft costs" of solar installation and the potential for future innovations. The conversation then shifts to a detailed analysis of voter distribution in the US, based on recent polling data. They discuss the implications of this distribution for political strategies and the potential for a new winning coalition.

The episode takes a philosophical turn as Alan explores the fundamental differences underlying political debates. He traces these differences back to historical thinkers like Edmund Burke and Jean-Jacques Rousseau, offering a framework for understanding current political tensions. The discussion concludes with reflections on the nature of political change and the concept of "political entrepreneurs."
Episode Highlights:

• [00:01:54] Discussion of solar energy costs and scaling challenges
• [00:14:34] Analysis of voter distribution and political coalitions in the US
• [00:26:59] Exploration of fundamental philosophical differences in politics
• [00:43:23] Reflection on the concept of "political entrepreneurs"
• [00:49:58] Discussion of long-term trends and the potential for political realignment

Quotes:

• "Energy is life, and that hit me. Even if we're doing more with less since the 1970s, why can't we do more with more, even more with more?"
• "I think the real way to win is to kind of be a Trump without the crazy, you know?"
• "What we're fighting about is are humans a blank slate and therefore perfectible? Or are they born flawed?"
• "The fight is going to remain. You are not. The next election is not going to result in a nirvana for your people."

Episode Resources:

• Thomas Pollo's writing on renewable energy
• Echelon Groups article on voter distribution
• Jonathan Haidt's Moral Foundations Theory
• Edmund Burke's "Reflections on the Revolution in France"
• Jean-Jacques Rousseau's political philosophy

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Alan Pentz and Tonya Berenson engage in a deep discussion about major changes in the global economic landscape. Tonya, calling in from Spain, highlights the shift in attitudes towards free trade, exemplified by a Wall Street Journal article acknowledging its problems. Together, they examine China's economic model, describing it as a "dagger pointed at the heart of world manufacturing" due to its practice of suppressing wages and subsidizing export-driven sectors.

Their conversation explores historical parallels, including Japan's economic trajectory in the 1980s and the Plaza Accord. They argue that China's current practices are distorting global markets on an unprecedented scale, affecting manufacturing sectors worldwide.

They then shift to discussing future economic trends, predicting higher and more variable inflation rates. This leads to a conversation about changes in investment strategies, particularly challenging the traditional 60/40 portfolio model. The discussion concludes with insights on potential diversification strategies and the need for investors to adapt to these new economic realities.

Episode Highlights:

• [00:02:47] Discussion of changing attitudes towards free trade
• [00:04:30] Explanation of China's economic model and its global impact
• [00:20:26] Analysis of future inflation trends and their economic implications
• [00:28:35] Critique of the traditional 60/40 investment portfolio in light of new economic realities
• [00:32:58] Suggestions for portfolio diversification in the changing economic landscape
• [00:36:18] Reflection on the long-term implications of these economic shifts

Quotes:

• "So what I was surprised at is,  we kind of lived under this regime where, where free trade was, like was like, sacrosanct. And to see an article in the neo-liberal,  leading paper, The Wall Street Journal saying that there were problems with free trade was pretty amazing to me."
• "China has become a massive economy, and for them to continue to suppress the wages of their workers to support  global exports, has become,  what I call the dagger pointed at the heart of the world economy world manufacturing."
• "We're gonna be in this elevated, you know, maybe three, 3-4% inflation, and it'll kinda go all over the place. So it'll go up and down all the time."
• "For the last 40 years, the portfolio to own has been 60% stocks and usually US stocks and 40% Treasury bonds. It's called the 6040 portfolio. And it's sort of like the standard, like, if you're if you're in a,  target date fund at Vanguard or Fidelity or something."
• "I think what we're going to have to do is take a look at our portfolios and start diversifying them. Not That doesn't mean you get rid of all your US stocks and freak people out."

Episode Resources:

• Alan Pentz on Linkedin - https://www.linkedin.com/in/alanpentz 
• The New Rules with Alan Pentz on LinkedIn - https://www.linkedin.com/company/the-new-rules-with-alan-pentz 
• Corner Alliance on LinkedIn - https://www.linkedin.com/company/corner-alliance-inc. 
• Corner Alliance website - https://www.corneralliance.com 

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Jon Morris, founder and CEO of Fiscal Advocate and former CEO of Rise Interactive, shares his journey from growing a digital marketing agency to creating a finance management company for professional service businesses. He emphasizes the importance of leveraging financial data to make intelligent decisions about time and money allocation.

Morris delves into crucial financial metrics for professional service companies, including gross margin, profit margin, and cash reserves. He explains the significance of these numbers and provides benchmarks for optimal performance. The discussion covers strategies for improving gross margins, the importance of investing in sales and marketing, and the balance between profitability and growth.
Throughout the conversation, Morris offers valuable insights on budgeting, forecasting, and the use of technology in financial management. He shares his experiences from Rise Interactive, including lessons learned from scaling the business and investing in technology development. Morris also introduces Fiscal Advocate's software, Engine B, which embeds his financial principles into a practical tool for businesses.
The episode provides a wealth of actionable advice for professional service company owners, from managing cash flow to making strategic investments for growth. Morris's emphasis on data-driven decision-making and financial discipline offers a roadmap for businesses aiming to achieve sustainable profitability and growth.
Episode Highlights:

• [00:02:11] Explanation of gross margin and its importance in professional service companies
• [00:04:25] Discussion on the significance of investing in sales and marketing for growth
• [00:09:35] Introduction of the three key financial metrics: cash reserves, profit margin, and revenue growth
• [00:22:31] Insights on investing in product/service quality and the concept of promise makers vs. promise keepers
• [00:29:37] Lessons learned from developing technology in a service-based business
• [00:39:45] Breakdown of gross margin percentages and their implications for business health

Quotes:

• "If you can have a gross margin advantage relative to your competition and you are willing to invest in your business, you have an edge."
• "We only have time and money. And how we spend it is what gives us the greatest return."
• "Your budget is your strategic plan. It tells me exactly what is important to you because that's what you're spending your time and money on."
• "If your gross margin is below 40% you're gonna lose money. If your gross margin is between 40-50% you're gonna decide between making money or investing in the business. If it's between 50-60% you're going to have a profitable business and be able to invest. And if it's above 60% somebody's getting screwed."

Episode Resources:

• Jon Morris on LinkedIn
• Fiscal Advocate Website
• Alan Pentz on LinkedIn
• Corner Alliance Website

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Mickie Kennedy, founder and CEO of eReleases, discusses the evolution of his company from its inception over 25 years ago to its current status as a leading press release distribution service for small businesses. He details how eReleases works with PRNewswire to provide affordable national distribution for smaller companies, filling a gap in the market that larger wire services often overlook.
The conversation explores the impact of social media and the internet on the PR industry, the importance of crafting compelling stories in press releases, and strategies for increasing the likelihood of media pickup. Mickie shares insights on the types of press releases that are most effective, including data-driven releases and those that offer unique industry perspectives.
Throughout the discussion, Mickie offers practical advice for small businesses looking to leverage PR for growth. He emphasizes the value of earned media, discusses how to use media coverage to build credibility, and provides tips on building relationships with local journalists.

Episode Highlights:

• [00:00:56] Origin story of eReleases and early success with data-driven press releases
• [00:04:53] How eReleases partnered with PR Newswire to serve small businesses
• [00:09:39] Impact of social media and changing media landscape on PR
• [00:12:21] Common types of press releases and what makes them effective
• [00:18:13] Strategies for creating compelling, story-driven press releases
• [00:29:55] Using media coverage to build credibility and increase conversions
• [00:35:00] Overview of eReleases as a business - size, revenue, and growth
• [00:45:49] Advice for businesses on creating strategic PR campaigns

Quotes:

• "We do try to coach our clients that, you know, going forward, uh, with a product launch incorporating a use case study."
• "I always tell people, you know, look at the shark tank. Everybody that appears there opens with a story."
• "Revenue is a little over 5 million, um, profit. Yeah. Profit is, uh, a few $100,000. So it's good for a very small business."
• "If you have a story that resonates, um, it could go far on the wire because it's just available to so many people."

Episode Resources:

• eReleases Website
• Mickie Kennedy on LinkedIn
• Alan Pentz on LinkedIn
• Corner Alliance Website
• Free PR Masterclass

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Jesse Lewis, owner of District Performance and Physio, discusses the growth of his cash-based physical therapy practice from a single room in a gym to multiple locations in Washington, D.C. He details the company's focus on serving active individuals who want to continue exercising while recovering from injuries. Jesse shares insights on bootstrapping the business, scaling operations, and the challenges of marketing a higher-priced, insurance-free model.
The conversation explores Jesse's approach to growth, including his strategies for hiring and retaining talent, managing multiple locations, and balancing profitability with employee satisfaction. He discusses the effectiveness of various marketing channels, particularly Google Ads and SEO, and how he adjusts these efforts based on clinic capacity.
Jesse reflects on the challenges of transitioning from a solo practitioner to a business owner, including delegating responsibilities and creating systems for scalable growth. He also shares his thoughts on potential expansion strategies, such as organic growth, acquisitions, or franchising within the niche cash-based physical therapy market.
Throughout the discussion, Jesse emphasizes the importance of company culture and his efforts to intentionally shape it as the business grows. He offers valuable insights for healthcare entrepreneurs looking to build and scale niche practices while maintaining high-quality care and employee satisfaction.
Episode Highlights:

• [00:00:53] Overview of District Performance and Physio's business model
• [00:01:45] Jesse's journey from a single room to multiple locations
• [00:05:05] Discussion of revenue targets and growth strategies
• [00:11:35] Marketing strategies, focusing on Google Ads and SEO
• [00:18:58] Challenges of scaling and maintaining profitability
• [00:25:23] Plans for future growth and expansion
• [00:39:06] Developing company culture and core values

Quotes:

• "We are physical therapy for active people. So we focus on people who want to exercise people who want to work out."
• "We don't take any insurance at all, so we're a higher price point, and there's a lot of pros and cons to do that. But one of the pros of doing that is it's a very low barrier to entry."
• "One of our distinguishing like competitive advantages internally is that I asked my therapist to see a very low number of clients because there's a huge problem of burnout in physical therapy."
• "Revenue is a vanity metric in the fuel business, if anyone ever mentions it to you, just kind of understand that."

Episode Resources:

• Jesse Lewis LinkedIn
• District Performance and Physio Website
• District Performance and Physio on Instagram
• Alan Pentz on LinkedIn
• Corner Alliance Website

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Eric Pacifici, a partner at SMB Law Group, discusses the current state of small business M&A, focusing on transactions under $15 million in enterprise value. He explains the profile of typical buyers and sellers, the impact of SBA financing on deal structures, and the evolving market conditions affecting valuations and deal terms.
The conversation delves into the challenges of self-funded search, the risks involved in buying small businesses, and the importance of understanding the operational aspects of acquired companies. Eric provides valuable insights into the due diligence process and the potential pitfalls buyers should be aware of.
Throughout the discussion, Eric offers a candid look at the legal industry, comparing the economics of big law firms to smaller, specialized practices. He shares his experience transitioning from a large firm to founding his practice, highlighting the unique challenges and opportunities in the legal services market for small business M&A.
The episode also touches on the role of social media in building a niche law practice and the potential for expanding into a full-service business law firm to better serve small business clients.
Episode Highlights:

• [00:00:53] Introduction to SMB Law Group and its focus on small business M&A
• [00:02:02] Current market trends in small business acquisitions and valuation changes
• [00:07:53] The role of SBA financing in small business transactions
• [00:18:40] Risks and challenges of buying small businesses
• [00:24:50] Insights into law firm economics and the challenges of the legal industry
• [00:38:01] Discussion on big law firm profitability and partner compensation
• [00:41:24] The impact of social media on building a niche law practice

Quotes:

• "We are transitioning slowly to a full-service law firm to be able to support anything that folks need in business."
• "When we launched the firm two years ago, we were looking at a lot of, you know, 4.5 5 times multiples. Now you're seeing a lot of threes and, you know, sub-four multiples."
• "Entrepreneurship and business buying and building is always going to be enormously difficult no matter what the circumstances are."
• "Most really good lawyers now don't even want to commute after remote work. And after the pandemic, you know, they're super excited about the idea of working for a firm that's not gonna ask them to come to an office."
• "I don't know how big law attorneys continue to out-earn, you know, their profit per partner is at $7.7 million. It grew 10% so it grew $700,000 per lawyer in a year."

Episode Resources:

• Eric Pacifici on LinkedIn
• SMB Law Group Website
• Alan Pentz on LinkedIn
• Corner Alliance Website

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Gabriel Muller, an EOS Worldwide implementer, discusses his transition from financial services to helping businesses implement the Entrepreneurial Operating System. He details the core principles of EOS, including the Visionary-Integrator dynamic, and how it helps companies create structure and clarity in their operations. Gabe shares insights on the challenges businesses face when implementing EOS, particularly in leadership team dynamics and the process of putting the right people in the right seats.

The conversation explores the evolution of team health through the EOS process, the importance of trust and vulnerability in leadership teams, and the concept of the "owner's box" - where business owners can step back from day-to-day operations. Gabe offers valuable perspectives on the difficulties owners face in detaching from their businesses and the benefits of creating self-managing teams.

Throughout the discussion, Gabe provides real-world examples from his experience implementing EOS across various businesses, offering listeners practical insights into the transformative power of this system. He also touches on his passion for aviation and how he's integrated it with his professional life through Smokehouse Pilots, a community he's built for aviation enthusiasts.

Episode Highlights:

• [00:00:25] Introduction to EOS and Gabe's background as an implementer
• [00:05:57] Discussion on when to implement EOS and bring in an implementer
• [00:09:52] Insights into common issues in businesses implementing EOS, particularly around leadership and structure
• [00:13:21] The impact of EOS on leadership teams over time, including potential changes in team composition
• [00:21:35] Evolution of team health through the EOS process, focusing on trust and vulnerability
• [00:27:12] The concept of the "owner's box" and challenges founders face in stepping back from day-to-day operations
• [00:34:47] Gabe's passion for aviation and the creation of Smokehouse Pilots community

Quotes:

• "EOS is harnessing human energy to create business results and clarity."
• "Careful what you wish for with EOS, cause you're probably gonna get it whether you like it or not."
• "I think private equity is in a crisis moment right now."
• "I always like to say careful what you wish for with EOS, cause you're probably gonna get it whether you like it or not."
• "My ultimate goal here is aviation, plus community equals opportunity and impact. That's our mission statement."

Episode Resources:

• Gabriel Muller on Linkedin
• Smokehouse Pilots Website
• EOS Worldwide Website
• Alan Pentz on LinkedIn
• Corner Alliance Website

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Clifton Sellers, founder of Legacy Builder, discusses his transition from corporate fundraising to entrepreneurship. He details Legacy Builder's focus on content marketing and personal branding, primarily for executives and business owners. Clifton shares insights on the agency's rapid growth, the importance of building a personal brand, and the strategies behind successful content marketing.

The conversation explores the challenges of scaling a service-based business, including the importance of building systems, hiring the right team, and gradually removing the founder from day-to-day operations. Clifton emphasizes the value of learning from others' mistakes and the importance of understanding what success looks like before delegating tasks.Clifton reflects on the current state of personal branding and content marketing, highlighting the shift from company-focused to individual-focused branding. He discusses the power of storytelling, the concept of digital real estate, and the importance of creating an "environment for success" in marketing.

Throughout the discussion, Clifton offers valuable advice for aspiring entrepreneurs and marketers, emphasizing the importance of consistent content creation, engagement on social platforms, and building owned audiences through newsletters and email lists.

Episode Highlights:

• [00:00:32] Clifton's background and journey to entrepreneurship
• [00:08:13] The decision to quit his job and focus on Legacy Builder full-time
• [00:11:42] Scaling challenges and bringing in a COO
• [00:18:09] The importance of the founder in sales and marketing
• [00:29:52] The landscape of personal branding and content marketing
• [00:35:31] The content marketing funnel and strategy
• [00:42:09] Insights on social media algorithms and content strategy

Quotes:

• "I think a lot of people want everything to look good on paper before they roll out of a business or an offer. Um, you just don't know. I think the things that have led to our success are trial and error and quicker feedback loops to repositioning and learning and applying that feedback and being transparent."
• "To me, marketing is creating an environment for success. And so building a personal brand is right in the center of that environment. It's right there. Then everything spokes out of that."
• "Anybody that says they have an algorithm figured out is lying. They're they're bold-faced liars. Um, the thing about algorithms is they will always shift. There will always be a meta out of game generation."
• "No matter what the algorithm does, authentic storytelling, offering true value content is gonna win out. That's the long game."

Episode Resources:

• Clifton Sellers on LinkedIn
• Legacy Builder on Twitter
• Legacy Builder Website
• Alan Pentz on LinkedIn

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers

Dominic Tullo, representing the fourth generation of his family business, discusses TNR Oil Company's operations in the diesel fuel distribution industry. He details the company's focus on servicing commercial fleets, explaining its unique overnight fueling service and the value proposition it offers to clients. Dominic shares insights on the company's revenue model, profit margins, and operational strategies, including their expansion into DEF (Diesel Exhaust Fluid) distribution.

The conversation explores the history of the Tullo family business, from its origins in ice and coal delivery to its current diverse operations in fuel distribution, truck stops, and real estate. Dominic reflects on the challenges and benefits of working in a family business, offering candid advice for those considering joining their family enterprises.

Throughout the discussion, Dominic offers valuable insights into the fuel distribution industry, including the application of technology to improve efficiency, the complexities of credit management, and the ever-present threat of fuel scams. He also touches on the historical context of operating a business in New Jersey, including past interactions with organized crime.

Episode Highlights:

• [00:03:18] On-site fueling: A $120K savings per fleet
• [00:09:40] DEF business: TNR's unexpected profit center
• [00:15:44] Tech edge: How TNR outsmarts competitors
• [00:20:29] PE pitfalls: Why trucking resists buyouts
• [00:29:07] Tullo legacy: From ice delivery to diesel
• [00:47:35] Fuel scams: Navigating industry challenges

Quotes:

• "We service people with their most critical fluid. We call it diesel literally. It's the blood of the business. You cannot operate your trucks without it."
• "Revenue is a vanity metric in the fuel business, if anyone ever mentions it to you, just kind of understand that."
• "If you're considering joining your family business, you need to just be honest with yourself and look at the person and say, Although this is my dad, look at them objectively. Does it look like he's ever gonna be willing to let go?"
• "I don't get two bites of my inheritance. I'm taking my inheritance in the companies, the operating entities. And if I don't do well with them, it's my problem."

Episode Resources:

• Dominic Tullo on Twitter
• TNR Oil Company Website 
• Alan Pentz on LinkedIn
• Corner Alliance Website

The New Rules Podcast is handcrafted by our friends over at fame.so 

Check out our three most downloaded episodes:

• Defining and Tracking Outputs: The Key to Employee Performance with John Seiffer
• Small Business Strategies and Market Dynamics with Jon Matzner, President at Lazy Leverage
• Franchising: The Best Business Model with Brian Beers