Young and Profiting with Hala Taha - YAPClassic: Brian Scudamore on Turning Trash into Cash

Episode Date: April 20, 2022

Brian Scudamore dropped out of both high school and college. But, at just 19 years old, Brian built a multimillion-dollar business that would come to be known as 1-800-GOT-JUNK?, the company that pion...eered the industry of professional junk removal. Brian then went on to use his success to scale two more home-service brands under his parent company of O2E Brands, WOW 1 DAY PAINTING and Shack Shine. Brian attributes his success to hiring the right people, dreaming big, and being willing to fail. Through franchising his companies, he’s also inspired thousands of entrepreneurs to live their dreams of owning businesses. In this #YAPClassic, Brian and Hala talk about Brian’s perspectives on financing a new company, why companies should all build their business like they plan on franchising, what elements must be considered while branding, and so much more.   Topics Include: - Childhood and how he was as a student  - Making your own luck and not taking no for an answer  - Perspective on getting loans and taking on debt when running a business - Copying businesses and Scaling business  - Story of Acquiring Wow One Day Painting  - Elements to consider when branding   - Story of 1-800-GOT-JUNK? - Brian on firing his team and starting over - The importance of customer focus  - “The Painted Picture”  - Brian on being a visionary vs an implementer - Building a business like a franchise  - Brian’s secret to profiting   - And other topics… Brian Scudamore is the founder and CEO of O2E Brands, the parent company of 1-800-GOT-JUNK?, WOW 1 DAY PAINTING, and Shack Shine. Each brand has franchise locations in every major metro in North America and Australia. Brian is the author of the books WTF?! (Willing to Fail): How Failure Can Be Your Key to Success And his second book, BYOB: Build Your Own Business, Be Your Own Boss. He is also  a regular contributor to Forbes, writing about small business ownership, franchising, and building corporate culture. His companies have appeared on major media outlets including ABC Nightline, Good Morning America, Dr. Phil, CNN, The Today Show, Oprah, and CNBC. His story has been featured in Fortune Magazine, The New York Times, Huffington Post, and The Wall Street Journal. Sponsored By: Riverside.fm - Visit Riverside.fm and use code YAP to start recording studio quality sound and video and get 15% off a membership plan. WRKOUT - Visit bit.ly/yap_wrkout to book a FREE Session with a world-class trainer and get 30% off your first TWO MONTHS with code YAP 99designs by Vista - 99Designs by Vista - Head to 99designs.com/YAP to learn more and get $30 off your first design contest! Credit Karma Personal Loans - Go to creditkarma.com/loanoffers to find the loan for you Shopify - Go to shopify.com/profiting, for a FREE fourteen-day trial and get full access to Shopify’s entire suite of features Resources Mentioned: YAP Episode: #76: From Trash to Cash with Brian Scudamore https://www.youngandprofiting.com/76-from-trash-to-cash-with-brian-scudamore/  The E Myth by Michael E. Gerber: https://www.amazon.com/Myth-Most-Businesses-Dont-About/dp/0887303625 Brian’s Books: https://www.amazon.com/Brian-Scudamore/e/B07HYJ8FSS?ref=sr_ntt_srch_lnk_1&qid=1650302541&sr=1-1  Brian’s Website: https://www.o2ebrands.com  Brian’s Linkedin: https://www.linkedin.com/in/scudamore/  Brian’s Instagram: https://www.instagram.com/brianscudamore/  Brian’s Twitter: https://twitter.com/brianscudamore  Brian’s Facebook: https://www.facebook.com/bscudamore/  Connect with Young and Profiting: YAP’s Instagram: https://www.instagram.com/youngandprofiting/     Hala’s LinkedIn: https://www.linkedin.com/in/htaha/     Hala’s Instagram:https://www.instagram.com/yapwithhala/     Hala’s Twitter: https://twitter.com/yapwithhala  Clubhouse: https://www.clubhouse.com/@halataha   Website: https://www.youngandprofiting.com/  Text Hala: https://youngandprofiting.co/TextHala or text “YAP” to 28046 Learn more about your ad choices. Visit megaphone.fm/adchoices

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Starting point is 00:00:00 This episode of YAP is sponsored in part by Shopify. Shopify simplifies selling online and in-person so you can focus on successfully growing your business. Sign up for a $1 per month trial period at Shopify.com slash profiting. Booba one will save you on all your eats. Savings can't be beat. Up to 10 percent of your order. Join Booba one and save $0.00 delivery fee Percentage Off Discount Subjects to Old Minimums and Participating
Starting point is 00:00:27 Source. Taxes and other fee still apply. You're listening to YAP, Young and Profiting Podcast. A place where you can listen, learn, and profit. Welcome to the show. I'm your host, Halla Taha, and on Young and Profiting Podcast, we investigate a new topic each week and interview some of the brightest minds in the world. My goal is to turn their wisdom into actionable advice that you can use in your everyday life, no matter your age, profession
Starting point is 00:00:56 or industry. There's no fluff on this podcast and that's on purpose. I'm here to uncover value from my guests by doing the proper research and asking the right questions. If you're new to the show, we've chatted with the likes of XFBI agents, real estate moguls, self-made billionaires, CEOs, and bestselling authors. Our subject matter ranges from enhancing productivity, had to gain influence, the art of entrepreneurship, and more.
Starting point is 00:01:23 If you're smart and like to continually improve yourself, hit the subscribe button because you'll love it here at Young & Profiting Podcast. Welcome to the show Young & Profitors. I'm your host, Halitaha, and today we've got a special YAP classic that I'm super excited to share with you all. But before we do that, I want to take a second to talk about YAP society. Our new text community powered by slick text. When you join, you'll get text directly from me, exclusive YAP content, awesome discounts, and most importantly, you're going to help shape the feature of our show by giving us
Starting point is 00:01:55 feedback on the topics you want to learn about, or the guess that you want us to feature on the show. So go ahead and smash that link in the show notes or text YAP YAP to 28046 to join our text community. Again, text YAP YAP to 28046 to join our text community. Now back to this YAP classic, it was taken from episode number 76 from August of 2020. And it features serial entrepreneur and author Brian Scudamore, who is the founder and CEO of 1-800-GOT-Junk. author Brian Scudamore who is the founder and CEO of 1-800-GOT-Junk. I've taken my favorite parts of this episode and consolidated them into one shorter episode so that you can listen, learn, and profit faster. And believe me, this episode is pure gold. If you're not familiar with
Starting point is 00:02:36 Brian, he's known for pioneering the professional junk hauling industry with 1-800-GOT-Junk. He's gone to apply his O2E or ordinary to exceptional formula to the painting and home detailing industries with wow-wonday painting and Shaqshine to other huge franchise businesses that he's created. He's also helped to inspire thousands of entrepreneurs live out their dreams by franchising his companies and offering entrepreneurs a business with a proven recipe. Brian is the author of WTF willing to fail how failure can be your key to success. And his new book, B-Y-O-B, Build Your Own Business,
Starting point is 00:03:12 B-Your Own Boss, was published this year in 2022. Brian has been featured on the Oprah Winfrey show and the Ellen's Generous Show amongst other media appearances. In this episode, I chat with Brian about his thoughts about scaling and starting businesses, like why he thinks you should not take out a loan, and why it's smart to organize your business like you plan to franchise it from the onset. He also talks about the power of goal setting and willing something into existence, which I'm a huge believer in. So if you're an entrepreneur or looking for some inspiration in terms
Starting point is 00:03:43 of chasing your dreams, you've got to listen to this episode. Brian has so much knowledge when it comes to business and scaling. All right, so here's my conversation with Brian, and I hope you enjoy it. You have a really interesting come-up story, and I think it's absolutely amazing. I'd like to start with that first. From my understanding, you didn't finish high school, you didn't finish college.
Starting point is 00:04:10 What was your like as a child? What was your childhood like and how are you as a student? I was not a great student. Now, I am a student of life. I've always loved to learn. If you interviewed my parents, they would say, Brian was the most curious kid always asking questions in fact I kind of drove them nuts and I'm getting paid back by I've got three kids and my youngest
Starting point is 00:04:32 He asked me questions nonstop. So I get it, but that's how we learn that's how I learn I was never good with books. I was never good in school kindergarten I wouldn't say I got a degree but a diploma and that and that's the only one I have. I've gone to 14 schools from kindergarten through to college or university. And what I was like as a student was very ADD, I was the class clown, I dropped out of school because I just found it challenging and not fun. But again, I want to emphasize, I've always loved to learn. So my way of learning is conversations, like this. I will learn tons out of this podcast because you'll ask me great questions that get me reflecting on my success, my failures, the journey. I love learning. I'm constantly asking people
Starting point is 00:05:18 how they do what they do, what their passions are, and if I look at what motivates me and drives me, is I love being the coach. I love being the person that inspires possibilities and others, especially if those people like me were not great in the school system. Yeah, I love that. I think so many of my listeners are contemplating, like dropping out of school, and don't know if traditional schooling is the right thing for them, and it's great to have an example like you and so many other entrepreneurs that can do it without necessarily schooling. And it's more of like the experience. And like you said, the one-on-one conversations, the mentoring, which kind of helped you get to where you are today. So I heard that you convinced a college to let you
Starting point is 00:06:00 into school and that you didn't finish high school. And you essentially convinced a college to let you into school and that you didn't finish high school and you essentially convinced a college to admit you without having that high school degree. It's funny because I really relate to that. I did terrible in my undergrad and I remember I was begging the MBA director of my alma mater to let me into the MBA program. I ended up getting like a 4.0 and doing great. But like I also did the same thing where I was just like, you know, just took it into my own hands. Can you talk about making your own luck and if you have any other examples of how you've made your own luck and didn't take no for an answer? Yeah, so I believe that people need to work at an opportunity that they see for themselves. If you've got the spark and you say, okay, here's my opportunity, which at the time was getting into school, was getting into college. And why I saw that opportunity or wanted that was all my friends were going.
Starting point is 00:06:51 I was the only one who didn't graduate from 12th grade, and I said, you know, I'm one course short from graduating. I got to figure this out. And you don't often get second chances. So I wasn't going to go back and complete another year just to get that one course. And I didn't want to miss out with my friends. So I went to the admissions office of the college and had three different conversations with them, pretty much begging them to let me in.
Starting point is 00:07:17 I said, listen, I'm smart enough. I get it. I miss this one class, but I can do this. And I wrote them a letter in the end that they liked and appreciated. And they said, this guy's got ten this. And I wrote them a letter in the end that they liked it appreciated. And they said, this guy's got tenacity. Let's give him a shot. Now, little did they know that years later, I would not actually finish that degree as well and drop out. But I guess they liked me and they liked my perseverance and off I went. Now, ironically,
Starting point is 00:07:40 while I talked my way into university, I had to find a way to pay for it. My father is a liver transplant surgeon. He certainly came from very humble beginnings, but at that stage, when I was going to call a jumpsuit, he could have paid for it, but chose not to. He said, Brian's got to learn a lesson here. He has not finished high school. It's not going to be a good return on investment. If he really wants to go, he can pay for it.
Starting point is 00:08:03 And so I was in a McDonald's drive-through of all places, saw this beat-up old pickup truck with plywood side panels built up on the box, and I looked at the truck and said, that's my ticket to pay for college. I talked to myself in, I now found the money by creating, or would have the money by creating this business, which at the time was called the rubbish voice. It was just me, I had a vision for something bigger and off I went hauling junk and within a couple of weeks the business paid for itself and by the end of the summer I had enough money for college.
Starting point is 00:08:30 I love that. Yeah, I know about that story and I know you only paid $700 for your first truck, which is such a little investment. And so you probably ended up paying that back like very shortly after. What's your perspective on getting loans and taking on debt when running a business? Did you purposefully not take on any debt and build it really organically just based on your cash flow? Or was that just like an accident? No, it's all the money I had was $1,000 in the bank. So enough to buy a pickup truck. I had $1,300 in repairs within a couple of weeks.
Starting point is 00:09:06 So while I did recoup the investment, I also then had more money flowing out of the bank account to fix my truck. But I'm a believer that if you're gonna get out and start a business, start within your means. If you've got a hundred grand in the bank, and you think you can make a business work, and you don't mind putting your life's savings on the line? Great. Your 401k, whatever you need to do, but don't
Starting point is 00:09:30 overextend yourself. I don't love the concept of people getting out there and raising money, A, because it's not their money, and B, because you need to understand the value of really being connected to every penny that you're spending and spend it frugally so that you can build out the business in a sustainable way. When people look at any of our franchises, I know you mentioned my parent company I started called O2E Brands. O2E stands for Ordinary to Exceptional.
Starting point is 00:09:58 We took first the Junkermobile business, a very ordinary space, and made it a very exceptional, professionally run business through service and through finding the right people. We're doing that in window washing with Shaq Shine. We're doing it in the painting space with Wawwandae Paining. When franchise partners come to us and say, hey, Brian, I want the proven recipe.
Starting point is 00:10:18 I don't want to reinvent how to grow a business. I want to learn from you, your team, your franchise partners. But I don't have a lot of money. We like that. We know people need enough money to invest in a franchise fee and to grow their business, but we want people that come that go listen. I've got about $25,000 in cash. We can figure out how to help them get the rest, but they're young, they're hungry, they're ready to grow something. That's more important than having a whole stack of cash. Yeah, I totally agree. It's so important to know how to be resourceful to, like you said, appreciate every single penny,
Starting point is 00:10:53 know where it's going, be frugal. I definitely agree. I was looking at your LinkedIn this morning. And by the way, Kudos to you for, I know I had technological problems in my office yesterday and we couldn't make this work and we had to rebook to today. So my fault. But you did and ask you anything on LinkedIn.
Starting point is 00:11:11 And I thought, you know, great way to go, hey, you've got a free block. What are you going to do to work it to growthics? And I noticed that you're LinkedIn, you know, for six months, you were at 200,000, I think, in followers. And now you're at 200,000, I think, in followers. And now you're at 53,000. Clearly, you understand the value of hard work to build something. And it takes time.
Starting point is 00:11:31 And it takes dedication and commitment. And it's the same thing whether you're growing a following or whether you're growing a business and spending money, you've got to do it organically, because then you can appreciate the value of how hard it is to get every dollar or every follower. So just wanting me to shout out. Oh, thank you so much, fine. That's so sweet. I really appreciate that. And coming from you, like I can't even, you know, thank you so much. It's so nice. I want to talk about how you have sort of like
Starting point is 00:11:57 copied other businesses and how you decide if a business is ready to scale. So you were in that McDonald's. You saw a gritty pickup truck with like a sign on it for junk removal. Then you had the big idea, you know, I'm gonna scale this, I'm gonna get a bigger truck, I'm gonna do it better, I'm gonna do better grill and marketing, and I'm gonna scale this and it worked, you know, you're in every metropolitan city in the US right now,
Starting point is 00:12:19 you're obviously huge. And I think you did something similar with one day painting where you saw somebody who did it right and you're like, I can help you make obviously huge. And I think you did something similar with one day painting where you saw somebody who did it right and you're like, I can help you make the scale. So can you give us a story of how you copy it again? Maybe copy is not the right word, but how you kind of took someone's business idea and helped them scale or saw the potential in a business
Starting point is 00:12:38 that could scale. And what do you look for in a business that could potentially scale? Tell us the story about one day painting because I think it's really interesting. Yeah, lots of great questions there. So what I did is I think I've got an ability to see opportunity and to look at things differently. So when I saw Mark's hauling that truck in the McDonald's drive through, it was, hey, there's an idea to pay for college. And yes, I went out and copied the model and I bought a truck and started hauling junk exactly like Mark did. But when I got a tune to an opportunity, the bigger
Starting point is 00:13:09 ideas you said was, how can I be the FedExa junk removal? Clean, shiny trucks, friendly uniform drivers, on-time service, up front rates, taking the industry to a level that had never been seen. And that bar to me was exceptional. So again, my company ordinary to exceptional O2E brands. I said, I'm going to make this exceptional. And we're going to scale a business where we have people come in who are investors, who are owners and partners, franchise owners who will build the model out in their city. Paul Guy, who was the first franchise owner, built a million dollar business in his first full calendar year. Today, he's got about $60 million worth of revenue across his franchise territories. I then said, what is the opportunity in a new space?
Starting point is 00:13:53 If I was in 1-800-GUNK for 22 years at this point when I started to look for another opportunity, and it was serendipitous. It just hit me, but I needed to get my house painted. I didn't want the disruption of someone comes in your house and it takes two weeks and they practically move in and become part of the family and all that sort of stuff. And so I got some estimates. I had three different people that I found through Facebook friends who said, here's companies I would recommend. The first two came in and I would recommend. The first two came in and smelled a cigarette smoke, showed up late, didn't give me confidence that they were going to do the job well or quickly. But the third person impressed me. Jim comes into my front door, he's uniformed, he's got the shiny van outside,
Starting point is 00:14:36 his company was called One Day Painting. And he said, listen, Brian, prices same as everyone else. I've done this for 22 years. My quality is the same or better than everyone else. But what got me excited, the kicker, was that he said, when we agree on painting day, I will give you back your home freshly painted and transformed at the end of the day. And I said, how is that even possible? How do you paint a home in a day?
Starting point is 00:15:00 It's not possible. But I signed up and I said, great, let's do this. I liked Jim and Sure enough into the painting day 6.30 p.m. I come home moldings trim The walls one wall needed three coats because of the dark color that was there. He impainted my entire house and I was I was so wow that I said I got to get in on this. I can help you grow I acquired the company and we renamed it wow one day painting Because that's the feeling I felt and I could see other customers across North America feeling that same thing
Starting point is 00:15:31 And so what I guess what was different about what we would do things is this system this model of People think you can't paint a home in a day that you're compromising quality. You're rushing Absolutely not everyone knows you can paint one room with one person in a day. If it's a big room, maybe you need two people. If you've got 10 rooms, then you need 10 people. It's a numbers game. Nobody's bumping into each other. It's just a coordinated effort
Starting point is 00:15:56 that gets this job done without disruption and people walk out saying, wow. And so when we look for franchise partners to then take our system and model and grow it. We're not looking for people to be painters. We're looking for people that see the opportunity like our early day franchise partners with 1-800-Gutjunk who say, I want to build and grow a team. I want to build an empire in my city and I want to build some wealth and freedom for myself. So basically, like you really like his system, you really like his attitude and you thought,
Starting point is 00:16:24 like, this is a person that can grow a business That's really cool. Well, I loved his idea of doing it differently So you look at Businesses that come in that say we're gonna transform a space One-world familiar with Netflix. You didn't need to go to the video store anymore and go get that tape and bring it home and return it and have late fees They said listen, we're gonna stream movies and look what they've become today. It's taking a model and saying, how do you reinvent an age-old space like painting? I mean, even during the pandemic that we're in today, people will forever need painting. No matter what's
Starting point is 00:17:00 going on, we're trying to find innovative new ways to get in there. Virtual estimates. We're doing estimates where someone walks around with their iPhone on FaceTime or Zoom showing us their home and we're able to give them an estimate. We're finding unique ways to deal with old problems and how to solve them, which is a big challenge and it's something I enjoy being a part of. Let's hold that thought and take a quick break with our sponsors. Young and profitors, do you have a brilliant business idea, but you don't know how to move
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Starting point is 00:20:42 So 1-800-junk used to be called rubbish boys. Your painting company also had a different name in the beginning. So what do you think about when you're naming your brands? What are the important elements to consider? Yeah, so I think it's naming the brands and what they look like. So let me start with Shat Shine as an example, and then I'm going to tell you a 1-800-Junk story if I can. So Shat Shine, similar type of situation as well
Starting point is 00:21:06 when they're painting. How did I find the business? I was looking to get my gutters cleaned out. I found a company. It was difficult to find someone, but a friend introduced me to someone that was building this business called Shaqshine. I loved the business, saw the opportunity to also scale and grow it.
Starting point is 00:21:22 And I like the name, the tongue-in-cheek sort of chat shine. Your home isn't really a shack, especially some of the ones that we watch, Windows, for. But I didn't like the look and feel of the design of the logo. And so I said to Dave, who started the business, I said, if we were to partner together or require your business, I'd want to redesign
Starting point is 00:21:42 the look and feel of your entire brand. Are you open to that? He said, yeah, I think I'd be open to it. I don't know if he really was. We then went off and hired a designer before buying the company. Noil Fox comes in and completely redesigned and revamped the brand. I presented it today. Dave's like, man, we are doing a deal. He bought into how we repositioned the look and feel of his brand. So words and visuals are everything. How we represent ourselves to the world is incredibly important, and it needs to be consistent.
Starting point is 00:22:16 So again, the importance of branding, and I'll tell you a quick one, I kind of got junk story. We went from the rubbish boys to, I want to expand out of Vancouver where I started the business. I was born in the United States. I wanted to expand into the United States and I thought the word rubbish was more of a British Canadian term. We had to come up with something different. And so our phone number at the time was 738 junk. And I said, what could we use in the United States as an 800 number? And we played on this old ad campaign called the Got Milk campaign that was in the 90s.
Starting point is 00:22:49 We said, ah, one 800 got junk. And I got so lit up and excited about this idea. I immediately called the phone number and it wasn't available. And so I'm just like, ah, I got to figure out how to get that phone number. So I started making phone call after phone call to AT&T, the phone company, trying to find out who owns the number. I was persistent as could be. Well, not just making phone calls,
Starting point is 00:23:10 I hired a designer to design the logo exactly as we have wanted under God's junk today, as part of solidifying the vision that I'm going to get this phone number. I'm going to figure this out. So at the end of the day, the person that owned the phone number was the Department of Transportation in Idaho. Government owned my number. Oh my gosh, I'm never going to get this. And so I took a route where I tried to sort of solve things and I went to the
Starting point is 00:23:33 phone room. I called up and I asked for their phone room. And sure enough, government has someone running their phones. And Michael in the phone room after three calls finally said, you can have the number. It's important. I don't know why you want it, but take it. And I called him a couple of days later after all the forums were signed with AT&T to thank him. He was no longer with the company. I have no idea what happened, but I had my number. I got it for free and it was sheer determination that paved the way for the starting of the
Starting point is 00:24:03 one in Thunder Gut Shunk brand that we built today. That's amazing. I love that story. And it's just another example of how you took things in your own hands and you made your own look. You wanted it. You went out and got it. You made the phone calls.
Starting point is 00:24:15 A lot of people probably thought you were crazy. Like you're never going to be able to do this. You're never going to get it. But you just used your charm and you're grit and did it. So it's so many great lessons to learn from that. Yeah, if you really want something bad enough and you can see the picture in your mind of pure possibility of what it could look like, you figured out and you stick with the program, most people would have given up after a couple of phone calls trying to get the
Starting point is 00:24:38 number. Yeah. I didn't give up till I got it, which was 60 phone calls. Wow. That's amazing. It's such an easy to remember name. Everybody knows 1-800-GOT-Junk. It's like 1-800-Contacts. It's up there with 1-800-FLOORS.
Starting point is 00:24:52 Sure. Huge. So congrats. Let's go back to 1997. So you were still the rubbish boys at this time. And you hit $1 million in revenue. And at that point, you were actually, you were doing well. I mean, a $1 million business is not too shabby,
Starting point is 00:25:07 but you were misaligned with your team. And you ended up firing nine out of 10 employees from my understanding. Why did that happen? Why do you think that things kind of got to that level where you felt like you needed to get right of your whole team? How did you decide to do that?
Starting point is 00:25:23 And what did you do to build your company back up after that? Yeah, it was one of the darkest days of my junk removal career, if you will. It was five years into the business. It was 1994, we were a half a million in revenue. And the way I like to explain it is everyone can relate to the one bad apple
Starting point is 00:25:41 spoils the whole bunch saying. And I probably had, I had a team of 11, and I had nine bad apples. I didn't know what else to do. I'd lost hope in my business. I wasn't having fun any longer. I wasn't enjoying the people I worked with. Now, I was the only one to blame.
Starting point is 00:26:00 I'm the one that hired them. So I sat them down at a morning meeting, all 11 people, and I started with two words. I said, I'm sorry. I'm sorry that I've let you that hired them. So I sat them down in the morning meeting all 11 people and I started with two words I said I'm sorry I'm sorry that I've let you down failed you haven't given you the love and support that you needed to be successful Maybe I didn't even bring the right people into my organization But the only way I knew to solve things was to start again wipe the slate clean and get rid of my entire team They didn't love it, but I did it with a heart. I treated them fairly.
Starting point is 00:26:26 I was transparent and honest, and I took it as a big learning moment for me. So as the leader, the lesson for me over the next six months as I was rebuilding the business was it's all about people, finding the right people and treating them right. Now, you mentioned my book WTF willing to fail. This was a WTF moment if I've ever seen one.
Starting point is 00:26:47 It's sucked trying to rebuild the business, trying to hire people again, but it gave me a fresh start and opportunity to find nothing but happy, smiley, optimistic people. Our hiring practice today, the number one thing we look for, happy people. The second I get onto your podcast yesterday, when we said hello, I mean, you're smiley, you're energetic, it's awesome, right? Those are the people I want in my world as my friends and connections and so on. And so I went out on a path of chasing down happy, optimistic people. We hire an attitude, we train on skill, and we build something bigger and better together. So while it was a dark dark day a dark six months of rebuilding. I'm sure glad I didn't have to take the thousands of employees we have now make that kind of change and really taught me something.
Starting point is 00:27:34 Yeah, I love it. I heard you say something on another podcast that you're slow to higher quick to fire. And I love that I think that's so smart, like taking your time, making sure you actually know someone, making sure that you enjoy spending their time, that you like their energy because energy is contagious, right? Absolutely. And when I say slow to higher, quick to fire, it's not like up, someone's made a mistake, boom, you're out of here, you're fired, you know, it is very much, we still take our time to do any sort of changes right and make sure we've given someone a chance to correct, but we also don't waste our time. There's nothing worse than in a manager or a leader's life bringing someone into the
Starting point is 00:28:14 company. When you know it's not going to work, cut them loose, free them up to another opportunity, help them find another opportunity. Let someone go recently, it just wasn't the right fit, but I did believe they'd be the right fit somewhere. And I was helping coach that person through a new opportunity. They're good people. Let's help them. But it's not always meant to be and make sure you make that decision sooner rather than later. Yeah. Talk to us about the importance of customer focus. Because I think that one of the reasons why you actually let these people go is because you felt like they weren't customer-centric. You felt like
Starting point is 00:28:48 they were misaligned with your value proposition to your clients, which is like, you know, go above and beyond, make them super happy, give them, you know, great service. Tell us about the importance of that to you and all of your businesses and how you implement that. Well, I think as someone who's a consumer myself, I enjoy when people treat me in a friendly, happy manner. I enjoy when people do what they say they will do, which is rare in this world of business. There's so many experiences we have
Starting point is 00:29:17 where a promise was made and it wasn't delivered. So some of my favorite companies, FedEx, anytime I've ever had to career something anywhere in the world, I mean, it just, it does show up on time. And it's amazing. They're slogan in the early days was the world on time and they deliver on that promise.
Starting point is 00:29:33 Starbucks, the drinks are done right. People are friendly. If they make a mistake, they give you a free drink voucher for next time. They just do the little things to treat you in a way that you walk in and you've given them the customized drink of choice that nobody else on the planet drinks. Just you've got that recipe, but somehow they remember it the next time you come in and
Starting point is 00:29:54 they treat you by name. I think what a business does the little things right that helps like the examples I've given of those brands growing and dominating the world. So the thing that motivates me the most in the world besides my family is building businesses with amazing people that want to be a part of something, that want to join our movement of building great businesses, but they have to understand that platform of exceptional customer service. That's the bar.
Starting point is 00:30:21 When someone reaches out to me as a CEO and says, hey, there was a mistake, something went wrong. The first thing we do is we own it. We take responsibility for that mistake, and then we say, how do we learn? So this doesn't happen again. Humans make mistakes, it happens. But it's how you care about the customer. And if you can truly care, that's how things grow and scale.
Starting point is 00:30:41 And the last thing I'll say is a philosophy we have, which has been something we're proud of, and I think something that's been very impactful in our growth. People often say the customer's always right. They, that the customer's the most important. I disagree. I think the people, your employees, are the most important.
Starting point is 00:30:56 So on a hierarchy, I believe, take care of your people. They will then take care of the customer. And if you take care of the customer, they will then take care of the brand and if you take care of the customer, they will then take care of the brand, both growth of profits and revenue. And so the most important person in our entire organization,
Starting point is 00:31:12 it's people finding the right people and treating them right. When they get it and they've been treated right, they will treat the customer with love and respect. We'll be right back after a quick break from our sponsors. Hear that sound, young and profitors.
Starting point is 00:31:29 You should know that sound by now. But in case you don't, that's the sound of another sale on Shopify. Shopify is the commerce platform that's revolutionizing millions of businesses worldwide. Whether you sell edgy t-shirts or offer an educational course like me, Shopify simplifies selling online and in person so you can focus on successfully growing your business. Shopify is packed with industry leading tools that are ready to ignite your growth, giving
Starting point is 00:31:55 you complete control over your business and brand without having to learn any new skills in design or code. And Shopify grows with you no matter how big your business gets. Thanks to an endless list of integrations and third-party apps, anything you can think of from on-demand printing to accounting to chatbots, Shopify has everything you need to revolutionize your business. If you're a regular listener, you probably know that I use Shopify to sell my LinkedIn Secrets Masterclass. Setting up my Shopify store just took me a few days.
Starting point is 00:32:23 I didn't have to worry about my website and how I was gonna collect payments and how I was gonna trigger abandoned cart emails and all these things that Shopify does for me was just a click of a button. Even setting up my chat bot was just a click of a button. It was so easy to do. Like I said, just took a couple of days.
Starting point is 00:32:42 And so it just allowed me to focus on my actual product and making sure my LinkedIn masterclass was the best it could be. And I was able to focus on my marketing. So Shopify really, really helped me make sure that my masterclass was going to be a success right off the bat and enabled focus. And focus is everything when it comes to entrepreneurship. With Shopify single dashboard, I can manage my orders and my payments from anywhere in the world. And like I said, it's one of my favorite things to do every day is check my Shopify dashboard. It is a rush of dopamine to see all those blinking lights around the world showing me where everybody is logging on on the site. I love it. I highly recommend it. Shopify is a platform that I use every single day and it can take your business to the next level
Starting point is 00:33:27 Sign up for a $1 per month trial period at Shopify.com Sush profiting again go to Shopify.com Sush profiting all lowercase to take your business to the next level today again That Shopify.com Sush profiting Shopify.com Sush profiting all lowercase. This is possibility powered by shopify. Yeah, bam. If you're ready to take your business to new heights, break through to the six or seven figure mark or learn from the world's most successful people, look no further because the Kelly Roach show has got you covered. Kelly Roach is a best-selling author, a top-ranked podcast host and an extremely talented marketer. She's the owner of notOne, but six thriving companies, and now she's ready to share her knowledge and experience with you on the Kelly Roach show.
Starting point is 00:34:10 Kelly is an inspirational entrepreneur, and I highly respect her. She's been a guest on YAP. She was a former social client. She's a podcast client. And I remember when she came on young and profiting, and she talked about her conviction marketing framework, it was like mind blowing to me. I remember immediately implementing what she taught me in the interview in my company and the marketing efforts that we were doing. And as a marketer, I really, really respect all Kelly has done, all Kelly has built. In the corporate world, Kelly secured seven promotions in just eight years, but she didn't just stop there.
Starting point is 00:34:44 She was working in I-5. And at the same time, she built her eight-figure company as a side hustle and eventually took it and made it her full-time hustle. And her strategic business goals led her to win the prestigious Inc. 500 award for the fastest-growing business in the United States. She's built an empire. She's earned a life-changing wealth. And on top of all that, she maintains a happy marriage and a healthy home life.
Starting point is 00:35:06 On the Kelly Road Show, you'll learn that it's possible to have it all. Tune into the Kelly Road Show as she unveils her secrets for growing your business. It doesn't matter if you're just starting out in your career or if you're already a seasoned entrepreneur. In each episode, Kelly shares the truth about what it takes to create rapid, exponential growth.
Starting point is 00:35:23 Unlock your potential, unleash your success, and start living your dream life today. Tune into the Kelly Road Show available on Apple Podcasts, Spotify, or wherever you listen to podcasts. Hey, ya fam! As you may know, I've been a full-time entrepreneur for three years now. Yet media blew up so fast, it was really hard to keep everything under control, but things have settled a bit, and I'm really focused on revamping and improving our company culture. I have 16 employees, so it's a lot of people to try to rally and motivate, and I recently
Starting point is 00:35:53 had best-selling author Kim Scott on the show. And after previewing her content in our conversation, I just knew I had to take her class on masterclass, tackle the hard conversations with Radical Candor to really absorb all she has to offer. And now I'm using her Radical Candor method every day with my team to give in solicit feedback, to cultivate a more inclusive culture, and to empower them with my honesty. And I can see my team feeling more motivated and energized already. They are really receptive to this framework, and I'm so happy because I really needed this class. With Masterclass, you can learn from the best to become your best, anytime, anywhere, and at your own pace. And we all know that profiting in life
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Starting point is 00:36:57 I've been taking their sales and negotiation classes and I've been feeling like a real shark lately. I've totally leveled up my sales skills. How much would it cost you to take a one-on-one class from the world's best? A lot. But with Masterclass annual memberships, it just cost you $10 a month. I have to say the most surprising thing about Masterclass
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Starting point is 00:38:01 You mentioned it a few times that as you were trying to grow your business, you really envisioned it as the FedEx of junk removal. And another thing that I heard you say before is that you really wanted to get on the Oprah Winfrey show as well. And so you did a lot of visionary things where you put something out in the universe and I'm not sure what your practice was if you wrote it down, if you had a vision board, what it was. But you basically put these things out there like I do this all the time.
Starting point is 00:38:28 So I want to be the female Tim Ferriss and I keep saying it out loud and I keep saying it every day. Because I wanted to happen, right? So tell us about how you kind of set big, hairy, audacious goals and what you do to kind of make sure that you subconsciously take the actions to make that happen. Yeah, so I discovered a process.
Starting point is 00:38:45 I didn't create this, others use the same type of process, but I stumbled into it. I call it the painted picture, so that would be my language for this. 1997, eight years into my business, I was a million in revenue, which was exciting. I had the right people now in my business, but I just felt stuck.
Starting point is 00:39:03 I felt like it's junk removal. I'm a college dropout, I'm a high school dropout. Can I build this business? Do I want to? What's the potential? So I went away for a retreat, and I wanted to be creative and solve this problem and just reflect. So I went to my parents' little cabin.
Starting point is 00:39:19 It was a tiny little beat up place on Bowen Island about an hour from Vancouver. It was a nice sunny summer day, September, and I sat out on their dock, and it was in a doom loop. I was depressed and just feeling bad about myself and my business. I said, what if I can imagine just pure possibility? Forget all the negativity. What if I could build something great and amazing what could that look like? So I took a sheet of paper and I started to write down not what I hoped to build but what I was going to build in five years time by the end of 2003. So I started with the date December 31st 2003, Brian's painted picture of 1-800-GOT-Junk.
Starting point is 00:40:00 I said we'd be the FedExa-Junk removal because had that bar of, we had ugly, beat-up-old, dirty trucks. But what if we could have clean, shiny, well-branded trucks like FedEx? I said, we'd be on the Oprah Winfrey show. First of all, I loved her as an entrepreneur and as a leader and an amazing woman, and I thought, I'd love to meet her. But, wow, imagine if she helped propel our brand into the universe. Yeah.
Starting point is 00:40:23 And I imagined all these things of our culture, how we treated people and the franchise owners and the millionaires we would build in support in this world. And so I took that painted picture. And after I wrote it, I went from pure doom to, this is unbelievable, I can see this, I can feel it. And I get goosebumps when I even retell the story. I took this sheet of paper, my painted picture,
Starting point is 00:40:43 and I brought it to groups of people, my friends, family, employees, different people, and I shared the painted picture, and I said, what do you think? I was all excited. And I had two sets of people. One group said, Chi-Brian, top 30 metros in North America, getting on Oprah, being the FedEx at Junkermool.
Starting point is 00:41:02 I think you're smoking some hoke dope like this. This isn't gonna happen. And then I had the other group that said, wow, this is unbelievable. How can I be a part of it? So I actually had employees leave because they didn't think that I was grounded in reality and that we were going to accomplish what we set up to accomplish. But we did. Every single thing in that painted picture, 96% of it. By the end of 2003, we hit the top 30 metros in North America. We were the FedExa junker, but nobody was near our size. And I got on the Oprah Winfrey show and got to give her a big hug and had
Starting point is 00:41:35 four and a half minutes of fame on national television in front of 35 million people. So my process is dream it. See it in your mind. Don't let doubt get in the way. You say you wanna be the female version of Tim Ferris. I mean, that's part of it is just talking about it. And this will happen, you'll find somebody. Have you met Tim Ferris?
Starting point is 00:41:56 No, I love to, but not yet. So you're gonna have somebody who goes and any of the audience that's listening, if you know Tim Ferris, you gotta introduce this amazing business leader and woman to Tim. So let's make it happen. But part of it's just throwing it out to the universe. So I believe we help each other as entrepreneurs. So from a painted picture perspective, if I can ever help anyone that's out there and you want to see my vision that I've just talked about, go on to LinkedIn, follow me or go to Instagram, wherever you need to do, and send me a note saying, painted picture.
Starting point is 00:42:29 And someone from my team will send you a copy of our painted picture and an article I wrote that goes into more depth of how to create one. But huge fan of vision, every successful leader and person in this world has had a clear picture, not how to get there, but a clear picture of what there looks like. Totally, I think it's so important, like you said, have a clear vision, say it out loud. I also think it keeps you accountable. I purposely say I'm gonna be the female version
Starting point is 00:42:53 of Tim Ferriss because I feel like if I say it out loud, I hold myself accountable to all my listeners, all my fans, for me to accomplish, you know, as big as things as he does. So I love that, I love the way that you do your vision board with that wall and painting. That's amazing. Let's talk about the interplay between being a visionary
Starting point is 00:43:11 and an implementer at your company. I know that you actually don't do your operations from my understanding you hire outside COOs for your brands and presidents. So why did you decide to do that? And how did you decide to do that and how did you decide to do that and why do you do that? Why were every hat in my company up to a million in revenue maybe even up to a couple of million and then I started to realize there's things I hated to do. There's things I
Starting point is 00:43:36 wasn't good at and as the owner of the company it doesn't mean that you're the best at everything usually far from it and so I was in my own way. And I realized in about 2008 when I had a COO in the business that wasn't the right fit any longer and I got that person out of the business after 14 months, my franchise bit just wasn't the right fit. My franchise owners started to say, Brian, what are you doing here? You just got rid of a COO. You're not the guy to take it to the next level.
Starting point is 00:44:05 We're here because you're a vision, but you can't execute us out of this situation. And so I got out there and I said, okay, what am I good at? I made a list. What am I great at? What do I love to do in a business? On the other side, what are all the things and bad at that a business still needs?
Starting point is 00:44:20 Or that I don't like to do? And I went and found someone that was great at these things. And so I hired Eric Chert, after interviewing 75 COO candidates, I found someone who was the right leader for me. He's been around eight years. I sure as heck hope he'll be around forever. We took the company from 100 million to over 400 million in revenue together. And it's super exciting when you've got the right fit. So I think businesses often have a visionary and an implementer. I'm not graded execution.
Starting point is 00:44:48 I've done it, but it's not my deal. I wanna be the idea person. I wanna look for new brands. I wanna find great franchise partners to build something bigger and better together with. If you focus on what you love to do and what you're best at, stay in that niche. That's how you really grow and scale an awesome business.
Starting point is 00:45:06 Yeah, I think it's so hard for people when they're first starting out with their business. You don't have a lot of resources, so you're wearing a lot of hats. And I think it's really hard to let go, but I think it's like you said, it's super important once you start to actually make money and you can afford to hire experts and outsource them.
Starting point is 00:45:21 You really gotta think about like, what is your core competency? Like, what am I really good at? What can nobody do better than me? And then what is a time suck? What makes me feel drained after I do it? What am I not that great at that somebody else probably would love to do and would be passionate about?
Starting point is 00:45:36 And kind of make sure that you hire the right people. That's how you scale like you said. So I think that's great guidance. I want to talk about franchising. I know we don't have that much time left, but I do want to take your brain. Tell us about the franchising model. Why you chose that direction instead of going
Starting point is 00:45:52 just being like a corporation and what the important elements of a franchising model are. And also, I've heard you say in the past that like everybody can implement principles from franchising in their business no matter if they're a franchising business or not. And so I think that's also important for people to kind of get like the main principles and why it's helpful.
Starting point is 00:46:11 So two things I love about franchising. So I grew up with McDonald's being everywhere and I had admired Ray Crocs business model. He took the McDonald's brothers and said here, I can systematize everything with you and we can scale this incredible brand together. What I loved about what Ray Crock did is he brought owners into his business. He said, listen, you want to build something, you want to build something in this town or this city, I've got the proven recipe. And they matched up the proven recipe and the systems with the people. The ability to have someone who's got skin in the game and watch them grow and develop beyond their wildest dreams, that's what I love about franchising.
Starting point is 00:46:53 I also love the fact that franchising is about systems. What's the best practice on how you do everything? So with 1-8 Thunder God Junk, I read a book called The E-Mith Revisited by Michael Gerber highly recommended to anyone. I looked at that book and I said, okay, he says, build your business out like a franchise. Even if you don't anticipate you'll choose that model, have all the best practices documented. So I said, how do we answer the phone? How do we price jobs? How do we market the business when things are slow? Everything had a one-page best practice of here's exactly how we do things. It started, the business started to look, feel, and
Starting point is 00:47:29 act so much like a franchise and the consistency and the branding and the look and feel and personality of our people. So we then said, okay, let's look at the franchise model. And Oprah and others got, we got great publicity and that franchise engine started to roar. And people started to come to us. And we said, what we offer is this proven recipe. Many entrepreneurs want to figure things out from scratch. That's part of what drove me, as I want to invent things.
Starting point is 00:47:56 A lot of people want to make money and have freedom and lifestyle. They want to control their own destiny. They want to prove in recipe. They don't want to waste time figuring it out. So again, to your unique ability and do what you love best, taking a recipe and executing is amazing. Some people want to bake a cake and they want to prove in recipe and boom off they go. Some people want to invent different recipes and figure out, you know, what kind of cake
Starting point is 00:48:22 could I invent? Understand who you are and then figure out what type of business is a franchise, is it a corporate startup or whatever you might be interested in. I love your example of how you guys created all these best practice, one sheets based on all your little processes big and small. That really inspires me. I have three new interns, so they have a new assignment to look at all the different areas of the podcast and our agency and come up with processes because it's so important
Starting point is 00:48:48 to train to new team members and to just like have efficiencies. And like you said, that's the only way you can really scale. Very cool stuff. Awesome. Thank you. So, my last question to all of my guests on the show is, what is your secret to profiting in life? I think it's a grow where you're planted. all of my guests on the show is, what is your secret to profiting in life?
Starting point is 00:49:07 I think it's a grow where you're planted. I heard that from Vern Harnish, a mentor of mine. And Vern said, you know, listen, like you can entrepreneurs get this, you introduce me as a serial entrepreneur, which I don't want people to think I'm jumping around from business to business. I have three brands, I also have three wonderful kids. You stay in this situation where you go, these
Starting point is 00:49:25 are all home services. They are all taking ordinary fragmented businesses and making them exceptional. By sticking to our knitting and staying planted in what we can do best, that's what I want to own. I think one of my secret formulas has been to not be driven by money. I like the freedom that money can provide of a cabin I've got here in Whistler that I love to ski with my family, but I'm not a fancy car, or a fancy boat,
Starting point is 00:49:52 travel the toys type person. I'm driven by building things with amazing people and having fun experiences together. And the less I became driven by money, the more the money just started flowing to a point where you're like, what do we do with all this? Let's invest, let's grow, let's provide amazing opportunities. So I think those would be what I'd leave you with is understand what your best at and grow where you're planted.
Starting point is 00:50:16 And then understand what really motivates you. It's not for me the money. It's the watching entrepreneurs live the dream of business ownership. That's what gets me out of bed in the morning. Brian is one of those people who I could talk to for hours about entrepreneurship and building companies. Brian is actually one of my clients at YAP Media. I run all of his social media. So he's a great guy. I know him personally.
Starting point is 00:50:43 He's just a fantastic entrepreneur. I'm super excited that I'm having him back on the show next Monday. We're gonna be talking about his new book, BYOB, Build Your Own Business, Be Your Own Boss. And it's super insightful. So if you love this episode, you're gonna definitely enjoy next week's interview. So be on the lookout for that dropping next Monday.
Starting point is 00:51:03 All right, so let's jump into some key takeaways from this YAP classic. For me, the things that stuck out was some of the branding guidance that we got in this interview and some of the lessons that we can learn from Brian. As a CEO of YAP Media, I know that branding makes all the difference. And when I was yapping with Brian, who's an expert in branding, it really lit me up. We talked about why Brian rebranded Rubbish Boys to 1,800 Godjunk and why he gave Shaq Shine a facelift. So I wanted to point out that you can't be afraid
Starting point is 00:51:32 to rebrand. Sometimes that makes all the difference. We get really connected to our ideas, whether that be a logo or a company name. But I'm here to tell you that sometimes you've got to be willing to widen your vision and let go so that your company can succeed. And that means letting go of any sunk costs that have already occurred, whether that be time, money, or effort. This is called the sunk cost fallacy.
Starting point is 00:51:55 You're never going to be able to get that time, money, or effort back that you spent on your brand, right? But you need to make the right decision for you now. And since you're never going to be able to get that time money or effort back, you don't need to worry about the old stuff that happened in the past. You just need to make the right decision for your future right now. And sometimes that means choosing a new brand that resonates stronger with your audience, choosing a new name that resonates stronger with your audience, choosing a new logo are colors that might resonate stronger with your audience.
Starting point is 00:52:28 And so they've got this thing called Kill Your Darlings. And this is a common phrase that writers and editors use. And that's a reminder that sometimes we get too close to something that we can't even see that it's not working at all. So as you're starting your company, building your brand, you gotta always make sure that you ask outsiders for their opinions I love to do this when I first started a young and profiting podcast
Starting point is 00:52:49 I had a Slack channel a private Slack channel that I invited my fans on I had about 500 fans in there and I called it gap society on Slack and I'd have people vote on episode titles I'd have people vote on new cover artwork for our podcast I had people vote on our logo. And I really got feedback from my target audience to make sure that I designed this podcast to the format, the topics, guests, even our look and feel as a brand in the way that you guys actually wanted it. And so in the beginning stages, I was really keen on getting that feedback from my audience.
Starting point is 00:53:21 And now I just started something very similar. I started YAP Society on Slick Text. It's a text community. You guys can actually join that if you text YAP to 28046. That's YAP to 28046. And that's me bringing my old school YAP Society Slack channel into a text community and resurrecting the whole thing because I still want feedback from my audience. I'm craving it because it is so important in terms of making sure that I'm able to satisfy all my listeners and bring to you what you guys actually want from this show. And so if you don't have an expert like Brian to turn to on your team, ask your mom, ask your friends, ask anyone who's willing to give you their opinion about your business. And the best tip, like I just said, is pull your followers, your
Starting point is 00:54:08 customers and your existing audience. A second branding tip that I got from this episode is that if you see something in a company or a brand that you admire, go ahead and use it. Businesses all about being a copycat. That's business in itself. It's copying other people and then making it your own. That's like the whole game. There's very rarely anything that is totally unique and original. That's just not realistic. Brian admired FedEx's clean trucks, uniformed and friendly employees, and then he
Starting point is 00:54:38 copied it with 1-800-Godjunk, and that is the business that he wanted to design and the essence that he wanted to bring. It was all inspired by FedEx. And when I started to yap, I did something similar. I listened to all the different podcasts I could get my hands on and I noticed what they were doing. That worked. What didn't work. I noticed people's brandings. What logos I loved, what logos I didn't love. And that's how I decided to create everything that I created. I took what I liked from my competitors, and I injected some of my own personal style. And while I had my own Young and Profiting podcast format, brand, and business. And the last thing I'll say about this is just find inspiration and learn what makes other people and companies successful. And you don't have to start from scratch.
Starting point is 00:55:23 You can build off of and improve the businesses that came before you and then remix it to make it your own. With that, let's get after it, young your profitors, keep leveling up, keep learning from failure and keep chasing those dreams. Thanks for listening. If you enjoyed this app classic and you like hearing these consolidated, shortened episodes so you could listen, learn, and profit faster. Let us know.
Starting point is 00:55:46 Give us some feedback. You can do so by dropping us a review on your favorite podcast platform like Apple Podcasts or you can text us text gap to 284046 and then text me your feedback on the show. I seriously check those messages all the time and I love to hear your feedback. You guys can also find me on Instagram or Twitter at Yapp with Hala or LinkedIn. Just search for my name. It's Hala Taha.
Starting point is 00:56:09 Thanks for listening to another wonderful episode of Younger Profiting podcast and kudos to my Younger Profiting team for pulling this off yet again. You guys are rock stars and this is Hala signing off. Are you looking for ways to be happier, healthier, more productive and more creative? I'm Gretchen Ruben, the number one best-selling author of the Happiness Project, and every week we share ideas and practical solutions on the Happier with Gretchen Ruben podcast. My co-host and Happiness Guinea Pig is my sister Elizabeth Kraft. That's me, Elizabeth Kraft, a TV writer and producer in Hollywood. Join us as we explore fresh insights from cutting-edge science,
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