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It’s 2021. So What? (Inspiring Women, Episode 29)

February 12, 2021 by John Ray

Inspiring Women
Inspiring Women PodCast with Betty Collins
It's 2021. So What? (Inspiring Women, Episode 29)
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Inspiring Women

It’s 2021. So What? (Inspiring Women, Episode 29)

On this edition of “Inspiring Women with Betty Collins,” Betty discusses her 2021 life statement, the difference between strength and courage, and more. “Inspiring Women” is presented by Brady Ware & Company.

Betty’s Show Notes

It’s a new year and it’s a new day.

But it’s the same stuff right now. It’s just a new year.

In the past, a new year generally meant new beginnings.

You reset.

It was this big sigh of relief.

But I think right now, it’s different.

In my reading over the holidays, I came across something. I decided to have my first life statement.

And I even went so far as to get a customized wall hanging of this statement. It’s in a big frame in my home office, where I spend about half of my time now. It’s a focal point when you walk in.

Being strong speaks of strength, but being courageous speaks to having a will to do more.

Last year was hard and exhausting. It seemed like everything was exhausting. But being strong portrays that you are confident. And you’re resilient. It’s an instinct that just kicks during all of those circumstances.

So I look at being strong. It speaks of strength. But being courageous speaks to having a will to do more and overcome.

The reality of 2021, nothing is different. That’s why this episode is titled as it is.

It’s just a different day.

This episode explores more about my 2021 life statement.

Betty Collins, CPA, Brady Ware & Company and Host of the “Inspiring Women” Podcast

Betty Collins is the Office Lead for Brady Ware’s Columbus office and a Shareholder in the firm. Betty joined Brady Ware & Company in 2012 through a merger with Nipps, Brown, Collins & Associates. She started her career in public accounting in 1988. Betty is co-leader of the Long Term Care service team, which helps providers of services to Individuals with Intellectual and Developmental Disabilities and nursing centers establish effective operational models that also maximize available funding. She consults with other small businesses, helping them prosper with advice on general operations management, cash flow optimization, and tax minimization strategies.

In addition, Betty serves on the Board of Directors for Brady Ware and Company. She leads Brady Ware’s Women’s Initiative, a program designed to empower female employees, allowing them to tap into unique resources and unleash their full potential.  Betty helps her colleagues create a work/life balance while inspiring them to set and reach personal and professional goals. The Women’s Initiative promotes women-to-women business relationships for clients and holds an annual conference that supports women business owners, women leaders, and other women who want to succeed. Betty actively participates in women-oriented conferences through speaking engagements and board activity.

Betty is a member of the National Association of Women Business Owners (NAWBO) and she is the President-elect for the Columbus Chapter. Brady Ware also partners with the Women’s Small Business Accelerator (WSBA), an organization designed to help female business owners develop and implement a strong business strategy through education and mentorship, and Betty participates in their mentor match program. She is passionate about WSBA because she believes in their acceleration program and matching women with the right advisors to help them achieve their business ownership goals. Betty supports the WSBA and NAWBO because these organizations deliver resources that help other women-owned and managed businesses thrive.

Betty is a graduate of Mount Vernon Nazarene College, a member of the American Institute of Certified Public Accountants, and a member of the Ohio Society of Certified Public Accountants. Betty is also the Board Chairwoman for the Gahanna Area Chamber of Commerce, and she serves on the Board of the Community Improvement Corporation of Gahanna as Treasurer.

“Inspiring Women” Podcast Series

This is THE podcast that advances women toward economic, social and political achievement. The show is hosted by Betty Collins, CPA; Betty is a Director at Brady Ware & Company. Betty also serves as the Committee Chair for Empowering Women, and Director of the Brady Ware Women Initiative. Each episode is presented by Brady Ware & Company, committed to empowering women to go their distance in the workplace and at home. For more information, go to the Resources page at Brady Ware & Company.

TRANSCRIPT

[00:00:00] Betty Collins
So, here it is, it’s 2021. So what? It’s a new year, and it’s a new day, sure, but all I see is that we went from ’20 to ’21. It’s the same stuff, right now. It’s just a different time. To me, though, in the past, a new year generally meant new beginnings. You reset. It was this big sigh of relief. I think, right now, it’s a different time.
[00:00:28] Betty Collins
All the circumstances of life are the same, which we’re not going to talk a lot about today, so don’t worry, but COVID-19, and politics … I’m in tax season, and women are still not running the world. I mean, I could go on and on. I’m not a resolution person. They really don’t work, and I think they’re really irrelevant; even more now. Did you take all the time and energy to compile them, and execute a plan, and get excited. You’re all motivated, and it’s January 3rd, and you tell the world you’re doing it on all your social media. Let me ask you, have you already broken them, and given up? Probably so, because it’s February.
[00:01:08] Betty Collins
In my reading, I came across something between the holidays, where I could get away, that just really got hold of me. So, I decided to have my first life statement. I’ve always seen people do that around me. I thought, “Why do they have a life statement? That’s just too much for Betty Collins.” But, I said, “New tactics, results, and maybe some new good things.” I said, “Okay, I’m going to have a life statement.” I even went so far that I got a customized wall hanging, and made it. It’s big, framed, and it’s in my home office, where I spend about half of my time now. It’s the focal point when you walk in.
[00:01:51] Betty Collins
The first half of the statement is really about 2020, and then the second half is 2021. Here is the statement, and it’s not really mine. I stole it from someone else, and I don’t even know who I stole it from; it’s just somebody had it in their stuff … “Being strong speaks of strength, but being courageous speaks to having a will to do more.”
[00:02:14] Betty Collins
Strength, at some point, ends. We all get tired. It’s like the treadmill. We’re strong. We’re going. We’ve got it up on 4 to up a hill, but at some point, your strength runs out. I mean, you tire. But not your will. If you really want to finish the lap, the will’s what gets you through. So, strength was all about 2020, right? You had to have strength to get through that year. You had to be strong, but being courageous is going to go to a new level, and I think that’s what 2021 is all about. Again, your strength ends at some point, but your will does not.
[00:02:50] Betty Collins
As women, moms … We’re wives. Some of us are business owners, or in business; maybe you’re accountants, professionals. We all have to be strong. We all really had to be strong, again, to survive last year. It was hard and exhausting. It seemed like everything was exhausting. Being strong, though, portrays that you have this big competence, and you’re resilient. It’s an instinct that just kicks in under all of those circumstances. It speaks of your strength. Being courageous assumes also that you are strong, and confident, and resilient, and it’s about having the will.
[00:03:26] Betty Collins
So, an example – if you’re a shareholder, and you now became the business owner, you’re actually an owner, but now you’re on a board of directors making key decisions for your company. All that speaks of strength, and confidence, and resilience, and you made it there. But a courageous shareholder will vote no, when necessary. A courageous shareholder will talk about what nobody wants to talk about in the room, possibly.
[00:03:52] Betty Collins
I’m not going to get really political, but I will state this – in the midst of all the turmoil around this election, I’ll give two men credit about being courageous, and one of those was Mike Pence – one of the most loyal supporters of

President Trump – but when it came to certification day, he was courageous. He stood up; he did the certification. He probably didn’t want to do the certification. He probably didn’t want to say that Joe Biden had been certified, but he did it because that was what he was supposed to do as a vice president, and the president of the Senate.
[00:04:27] Betty Collins
On the same token, I look at Ted Cruz, who I don’t listen to a whole lot, and actually, my Bernie Sanders-loving son said, “You need to listen to this Ted Cruz speech,” because he also stood up courageously in the Senate. Somebody from the House, and the Senate said, “No, we need to have a debate.” That’s courageous. That’s courageous.
That’s not just being strong, and we’re here, and we’re in the Senate, and we do our job. So. I look at being strong speaks of strength, but being courageous speaks to having a will to do more and overcome.
[00:05:08] Betty Collins
The reality, nothing is different. That’s why this is called “It’s 2021. So What?” It’s just a different day. We’re going to talk about some of those things, about this life statement, about the things that I could spend my entire podcast on that life statement – and I may do one in the future for it because there’s a lot to that. How am I going to deal with 2021? What do I do with it? Well, it’s my story, and I’m going to control the content, and the narrative. That’s a definite. On 12-30-21, when I am having a really good dinner, probably at the Capital Grille. Somewhere having a really good steak. I’m going to say, “This was 2021. My story.”
[00:05:50] Betty Collins
I categorize my life like all good accountants, and hopefully, you do, too, because it’s a good thing. I usually do at the beginning of the year – I get it in order, but it’s a constant evolving document. It’s not just … These boxes change, and get bigger. Some get smaller – whatever you want to call it – these categories. I do it into four things. First is your spiritual life, your emotional life, your physical life. The fourth box is the routine of life. It just happens because the first three are done and thought through.
[00:06:22] Betty Collins
I choose a theme, and then I drill down because I want to accomplish each category and do it well, because they all balance my life. I keep it simple, believe it or not. It doesn’t have to all be done today, or by the end of tax season, even. It doesn’t have to be all in order and makes sense. It’s always certainly subject to change, especially in the environment we live today. You’re going to constantly pivot.
[00:06:50] Betty Collins
So, I’m looking at 2021 as my story. I control the content, and narrative. I’m going to box my life into these four categories. I’m not going to talk a lot about spiritual life. I think it’s very personal. In my spiritual life, I want- I’m a believer in God Almighty. The sun comes up every day, and it sets, and Betty Collins has nothing to do with that. I just want to turn chaos into order by doing that- let God do the super, and let Betty Collins do the natural. That’s enough. Done. It’s pretty easy, right?
[00:07:21] Betty Collins
Physical, my physical eating pie; eating bagels with cream cheese – all the things I want to do. I’m going to stop talking, and do the work. So, I’ve come up with different things. I did buy one of those [inaudible] for under my feet at work, so I can just keep moving, somehow, because, guess what? I don’t go to the gym. I have a membership, and I don’t go. I’m going to stop talking about it. It’s just time to take care of it. And I’m not going to get into a big plan, and write this, and have apps, and make it crazy. I’m just going to stop talking about it and do what I need to do.
[00:07:53] Betty Collins
Emotionally, and this is probably my biggest challenge, and I think it’s women’s biggest challenge, emotional … This is my theme: “Know the difference between branches, and sticks.” I am going to do a podcast on that. I made that decision because I’ve had more of people resonate to that line. What does that really mean? Well, I’ll give you the scenario small – the branches are connected to a tree, which is rooted. So, there is real life there. You’ve got to know what gives life to you and is something that will energize you. Sticks, they’re on the ground. I have them all over my yard because I love trees, and they’re good for firewood. That’s what they’re good for. They’re dead. They don’t have any more life in them. We have a ton of those twigs in our life. So, emotionally, I don’t need that.
[00:08:44] Betty Collins
Then, the routine of life. If the three things of spiritual, physical, and emotional are in order, it’s just the logistics. That’s all it is. So, when you are looking at your three things and you know that you’re successful, and routine of life is working, go back and look on your calendar for the last week, and it will show what you did. It’ll show how you were. What would a perfect day, or week look like? Write it down, and then work towards achieving it. Then again, look back on your calendar, because that’s going to tell you if you’re successful.
[00:09:21] Betty Collins
So, spiritual, physical, emotional, and then just routine of life – it all comes together. That’s how I’m going to deal with 2021, and that’s how I’m going to write my story. Hopefully, it will be a celebration at the end. What does this

have to do with business? Well, if Betty Collins is not in order, it has a lot to do with business. And I would tell you this – this podcast is to inspire women. It’s to keep learning, growing, and advancing, and it’s about enhancing your communication skills, building leadership, growing your business, and feeling inspired.
[00:09:50] Betty Collins
So, I would encourage you, as this podcast is called, “It’s 2021. So What?” I also have a podcast called “Now What?” It was two series, and it really breaks down your business life of getting that in order, and the things that you have to continue to do. The biggest thing, of course, is ask the question: Now what? It’s a question you’re always going to probably be asking and should be asking. My theory in life now is if you don’t ask questions, you will not have answers. That’s how I’m going to deal with this year.
[00:10:23] Betty Collins
When I go back to two things, just to give you a snippet of the branches, and the sticks, an example of that – in our environment, today, there’s a lot of twigs that you need to identify in your life. I will use this as an example. Again, I don’t mean to be political, but I think it’s good. There are people who truly have an adoration, and there are people who truly do not like, in fact, hate President Donald Trump. Do you understand the obsession either way is a twig? We’re going to talk more about that because if it’s taking from you, it’s dead on the ground, and needs to go in the fire. It’s great firewood. If it’s giving you life, great. Those are things that I think will be key to success in your challenging year that’s coming- that’s here.
[00:11:20] Betty Collins
So, challenges for all of you – two things to help you get through … Stretch goals, get them in your life. I just spent a two-day retreat with Brady Ware, and the guy kept saying, “Stretch goals.” I’m like, “Is he talking about, like, stretching, or is he talking about stretch goals?” It kind of speaks for itself. He made it very clear – only have two, or three, or maybe even just one, but something that is going to stretch you. It simply is a target that’s above what is expected to be accomplished.
[00:11:53] Betty Collins
There’s really a lot about stretch goals on the internet when you Google it, so when you’re trying to get the four components in your life together, and balanced, and defined, and all those things, I would also challenge you to get some stretch goals in your life. And it’s going to be about productive discomfort. It’s going to be about building confidence because you’re achieving things, so your confidence goes up. It’s helping to avoid the catastrophic, that unexpected. Then, it’s that sense of control, bringing that order into chaos, which I talked about.
[00:12:32] Betty Collins
The other thing, when I’m telling- when I’m challenging you to set some things in front of you and keep it simple – two to three stretch goals, maybe – small things can generate into big things. My goal this year is to not lose all my weight by tax season’s over, so I can just go have a fun vacation and eat all summer. That is not my goal. My goal is that if I take 52 weeks, and say 30 pounds – I want to talk about my 30-pound weight loss next December. That’s just small things, all year, that will accomplish a big.
[00:13:04] Betty Collins
Here’s another great example of the small things generate big things. Maybe that’s where you need to be, right now. I think of a really good example of that is Niagara Falls cable cars. There’s a car, if you’ve ever gone up there, that goes across Niagara Falls. Well, back in the 1800s, they decided – we’re going to build a cable. We’ve got to get something from one side of the Falls to the other. This is the late 1800s. They didn’t have the things we have today. So, they started with a very small concept.
[00:13:42] Betty Collins
I think it actually was a young person who said, “Let’s fly a kite across, and the wind will take it over, and let’s see if we can get it somehow across. We’ll be on the other side to catch the kite.” They mastered that – simple as flying a kite. They said, “Well, if we can get the kite to work like that, let’s modify the kite, and let’s add some cable to it; something that’s heavier than string.”
[00:14:08] Betty Collins
They kept modifying it til the right cable was going to be able to get across. Well, now we’ve got to have parts go across. So, then they had to have kites with the right cabling to get the part across. Slowly, over time, these little things all ended up being a cable across Niagara Falls, in the late 1800s. That was just taking some small things that, at the end of the day, generated some big things.
[00:14:35] Betty Collins
So, I would tell you, in doing all of your categorizing, and stretching, think of small things that can do it. Today it’s 2021. So what? It’s your story. Control the content. Control the narrative for the year by using these very simple, simple tactics. It’s one day at a time. I’m Betty Collins, and I’m so glad you joined me today. Inspiring women, it’s what I do. I leave you with this – “Being strong speaks of strength, but being courageous speaks to having a will to do more and overcome.”

 

Tagged With: Betty Collins, Brady Ware, Brady Ware & Company, Inspiring Women, Inspiring Women with Betty Collins

Gabe Tilley, King Steel, Inc., Tara Winslow, Winslow Home Professionals, and Rob Swartwood, consilium (ProfitSense with Bill McDermott, Episode 17)

February 11, 2021 by John Ray

King Steel
North Fulton Studio
Gabe Tilley, King Steel, Inc., Tara Winslow, Winslow Home Professionals, and Rob Swartwood, consilium (ProfitSense with Bill McDermott, Episode 17)
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Gabe Tilley, King Steel, Inc., Tara Winslow, Winslow Home Professionals, and Rob Swartwood, consilium (ProfitSense with Bill McDermott, Episode 17)

Host Bill McDermott welcomes Gabe Tilley, King Steel, to discuss his firm’s growth since he and his partner assumed ownership in 2018. Bill also interviewed Tara Winslow on the current state of Atlanta residential real estate, and Rob Swartwood described the “coach approach” he takes with his business law clients. “ProfitSense with Bill McDermott” is produced and broadcast by the North Fulton Studio of Business RadioX® in Alpharetta.

Gabe Tilley, Executive Vice President, King Steel, Inc.

King Steel
Gabe Tilley, King Steel, Inc.

King Steel is a structural steel fabricator located in Lawrenceville, GA. They have been in business since 1989, providing turnkey steel fabrication and erection services throughout the Southeastern United States. They have expertise in providing steel for a wide variety of building projects, including schools, high-rises, data centers, military installations, and distribution centers. Their client portfolio is diverse, including several national general contractors, and they have supplied fabricated steel for several high-profile companies.

In 2018, King Steel was purchased by two partners, Marvin Brown, and Gabe Tilley. Under their leadership, the company has made several capital improvements and streamlined its ability to fabricate steel in a more efficient manner. Both have 20+ years in the steel industry and are looking forward to ushering in a new era of success for King Steel.

More information at 770-963-3888 or contact Gabe by email.

LinkedIn

Tara Winslow, Realtor & Business Owner, Winslow Home Professionals

Tara Winslow, Winslow Home Professionals

Prior to following her passion in residential real estate, Tara spent twelve years in corporate America as a top Sales Executive at several Fortune 500 companies including The Coca-Cola Company, AT&T Business and PGi (formerly Premiere Global Services). In her last position at PGi, selling SAAS (software as a service) technology, she finished 2011 as the #1 Sales Executive across the company in sales production.

As a native Atlantan, she has vast insight in the Atlanta Real Estate Market. Tara resides at Keller Williams Realty Peachtree Road office in Brookhaven. She loves being a business owner which allows her to help make decisions important to her clients. Tara is passionate about helping her clients build wealth through real estate. She is committed to her clients, values long-term relationships and strives to exceed expectations. She has a deep understanding of the real estate process and knows what it takes to get her clients into the home of their dreams. Tara takes pride in her business and earns the trust of her clients who call on her for advice.

Winslow Home Professionals has held its license at Keller Williams Realty Peachtree Road in Brookhaven for over 9 years where the office sells over $1 billion in real estate every year across Metro Atlanta.

Company website      LinkedIn

Rob Swartwood, Managing Member, consilium

Rob Swartwood, consilium

Rob is a business attorney, outside general counsel, and transaction counsel to small and middle-market businesses throughout the Southeast. A former big-law attorney, Rob leverages over a decade of experience representing businesses across the spectrum of size, industry, and complexity to help owners and executives navigate their day-to-day operations; prepare for and complete mergers, acquisitions, divestitures, and other transactions; and accomplish their strategic objectives in a manner that is true to the brand.

Consilium is a boutique business law firm providing wise counsel, professional, concierge service, and effective solutions at competitive rates. At consilium, Rob and his team take a coach-approach to understand their client’s businesses, problems, and interests; developing a sound strategy for accomplishing client objectives in a manner that is on-time and within budget; and guiding their clients through their legal matters with precision and care, to the best outcomes possible. And though outcomes are very important to the team at consilium, it is equally important that they leave their clients in a better position than they found them – with their clients having received something of greater value from the experience than the fee charged to them in the exchange.

Company website     Company LinkedIn     LinkedIn

About “ProfitSense” and Your Host, Bill McDermott

Bill McDermott

“ProfitSense with Bill McDermott” dives in to the stories behind some of Atlanta’s successful businesses and business owners and the professionals that advise them. This show helps local business leaders get the word out about the important work they’re doing to serve their market, their community and their profession. The Show is presented by McDermott Financial Solutions. McDermott Financial helps business owners improve cash flow and profitability, find financing, break through barriers to expansion and financially prepare to exit their business. The show archive can be found at profitsenseradio.com.

Bill McDermott is the Founder and CEO of McDermott Financial Solutions. When business owners want to increase their profitability, they don’t have the expertise to know where to start or what to do. Bill leverages his knowledge and relationships from 32 years as a banker to identify the hurdles getting in the way and create a plan to deliver profitability they never thought possible.

Bill currently serves as Treasurer for the Atlanta Executive Forum and has held previous positions as a board member for the Kennesaw State University Entrepreneurship Center and Gwinnett Habitat for Humanity and Treasurer for CEO NetWeavers. Bill is a graduate of Wake Forest University and he and his wife, Martha have called Atlanta home for over 40 years. Outside of work, Bill enjoys golf, traveling, and gardening.

Connect with Bill on LinkedIn and Twitter and follow McDermott Financial Solutions on LinkedIn.

Tagged With: Bill McDermott, business law, consilium, Gabe Tilley, Keller Williams Realty, keller williams realty atlanta, King Steel, outside general counsel, ProfitSense, ProfitSense with Bill McDermott, residential real estate, Rob Swartwood, Tara Winslow, turnkey steel fabrication, Winslow Home Professionals

Decision Vision Episode 103: Should My Company Borrow Money? – An Interview with Bill McDermott, The Profitability Coach

February 11, 2021 by John Ray

Profitability Coach
Decision Vision
Decision Vision Episode 103: Should My Company Borrow Money? - An Interview with Bill McDermott, The Profitability Coach
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Decision Vision Episode 103:  Should My Company Borrow Money? – An Interview with Bill McDermott, The Profitability Coach

Bill McDermott, Profitability Coach and ex-banker, speaks with host Mike Blake on when and how business owners should borrow money for their business. Bill also breaks down how bankers assess business borrowers and make lending decisions, various types of debt, one type of business loan he considers predatory, and much more. “Decision Vision” is presented by Brady Ware & Company.

Bill McDermott, The Profitability Coach

Bill McDermott is the Founder and CEO of McDermott Financial Solutions, serving as a profitability coach to his clients. When business owners want to increase their profitability, they don’t have the expertise to know where to start or what to do. Bill leverages his knowledge and relationships from 32 years as a banker to identify the hurdles getting in the way and create a plan to deliver profitability they never thought possible.

Bill currently serves as Treasurer for the Atlanta Executive Forum and has held previous positions as a board member for the Kennesaw State University Entrepreneurship Center and Gwinnett Habitat for Humanity and Treasurer for CEO NetWeavers. Bill is a graduate of Wake Forest University and he and his wife, Martha have called Atlanta home for over 40 years. Outside of work, Bill enjoys golf, traveling, and gardening.

Connect with Bill on LinkedIn and Twitter and follow McDermott Financial Solutions on LinkedIn.

Mike Blake, Brady Ware & Company

Mike Blake, Host of the “Decision Vision” podcast series

Michael Blake is the host of the “Decision Vision” podcast series and a Director of Brady Ware & Company. Mike specializes in the valuation of intellectual property-driven firms, such as software firms, aerospace firms, and professional services firms, most frequently in the capacity as a transaction advisor, helping clients obtain great outcomes from complex transaction opportunities. He is also a specialist in the appraisal of intellectual properties as stand-alone assets, such as software, trade secrets, and patents.

Mike has been a full-time business appraiser for 13 years with public accounting firms, boutique business appraisal firms, and an owner of his own firm. Prior to that, he spent 8 years in venture capital and investment banking, including transactions in the U.S., Israel, Russia, Ukraine, and Belarus.

Brady Ware & Company

Brady Ware & Company is a regional full-service accounting and advisory firm which helps businesses and entrepreneurs make visions a reality. Brady Ware services clients nationally from its offices in Alpharetta, GA; Columbus and Dayton, OH; and Richmond, IN. The firm is growth-minded, committed to the regions in which they operate, and most importantly, they make significant investments in their people and service offerings to meet the changing financial needs of those they are privileged to serve. The firm is dedicated to providing results that make a difference for its clients.

Decision Vision Podcast Series

“Decision Vision” is a podcast covering topics and issues facing small business owners and connecting them with solutions from leading experts. This series is presented by Brady Ware & Company. If you are a decision-maker for a small business, we’d love to hear from you. Contact us at decisionvision@bradyware.com and make sure to listen to every Thursday to the “Decision Vision” podcast.

Past episodes of “Decision Vision” can be found at decisionvisionpodcast.com. “Decision Vision” is produced and broadcast by the North Fulton studio of Business RadioX®.

Visit Brady Ware & Company on social media:

LinkedIn:  https://www.linkedin.com/company/brady-ware/

Facebook: https://www.facebook.com/bradywareCPAs/

Twitter: https://twitter.com/BradyWare

Instagram: https://www.instagram.com/bradywarecompany/

TRANSCRIPT

Intro: [00:00:02] Welcome to Decision Vision, a podcast series focusing on critical business decisions. Brought to you by Brady Ware & Company. Brady Ware is a regional, full service accounting and advisory firm that helps businesses and entrepreneurs make visions a reality.

Mike Blake: [00:00:20] Welcome to Decision Vision, a podcast giving you, the listener, clear vision to make great decisions. In each episode, we discuss the process of decision making on a different topic from the business owners’ or executives’ perspective. We aren’t necessarily telling you what to do, but we can put you in a position to make an informed decision on your own and understand when you might need help along the way.

Mike Blake: [00:00:41] My name is Mike Blake, and I’m your host for today’s program. I’m a director at Brady Ware & Company, a full service accounting firm based in Dayton, Ohio, with offices in Dayton; Columbus, Ohio; Richmond, Indiana; and Alpharetta, Georgia. Brady Ware is sponsoring this podcast, which is being recorded in Atlanta per social distancing protocols. If you like this podcast, please subscribe on your favorite podcast aggregator, and please consider leaving a review of the podcast as well.

Mike Blake: [00:01:08] Today’s topic is, Should my company borrow money? And, you know, talk about borrowing and lending, it’s automatically a charged topic. And so much of our consciousness, I think, revolves around debt. And I don’t know if it’s always been that way. Certainly throughout history, people have talked about debt, usually from the dangers of debt. Of course, “neither a borrower nor a lender” attributed to Benjamin Franklin. And, of course, you know, there’s a whole ton of discussion around medical debt, student debt, the national debt. There are individuals that have made, frankly, fortunes and careers advising people against the dangers of debt, Dave Ramsey is probably the most important one, but there are several others, of course.

Mike Blake: [00:02:12] And I see that this mentality does bleed over into the corporate world to some extent. And there are a lot of funny things about debt, you know, one, it has a mystique to it. I think, because when debt works well, it works great. When it works badly or when the outcome is bad, the outcome is usually spectacular. And even our most recent past president – you know, there’s at least a lot of suspicion. We don’t know his full financial position – the prevailing suspicion or understanding or belief – I don’t want to use suspicion in a pejorative sense. That’s not the intent – but the belief that our own president has built an empire on debt and that he’s still very heavily leveraged. But in spite of that fact, he doesn’t appear to be financially hurting.

Mike Blake: [00:03:12] So, you know, debt can be somewhat paradoxical. And I think when debt fails, it fails badly, it fails in a lot of ways publicly. And who doesn’t love a good car crash, as long as you’re not in it. You know, I think that generates a lot of attention. And I’m not a debt expert at all. I have much more experience on the equity side than on the debt side, which is we have a guest coming up that does know what he’s talking about. But, you know, it’s understanding that debt is a power tool. And a power tool, you know, take a circular saw as a great example. If you know what you’re doing and you respect the power of the tool, the circular saw, you can build amazing things, right? You can build furniture. You can build a shelter, you know, effectively with a circular saw and a few other tools. Not that I’d ever do it. I’m incompetent. But I’ve seen people do it and this seems to be the way that it happens.

Mike Blake: [00:04:17] Conversely, if you don’t know what you’re doing, if you put your hand in the wrong place, the next thing you know, your name is Lefty or The Claw or whatever. But the saw itself isn’t bad. It’s simply a matter of the capability and the emotional intelligence of the person using it. And so, as a consequence, you know, I do think that, of course, there are companies that use debt irresponsibly. And we’ve had an interview on a podcast with Tom Rosseland of Bodker, Ramsey talking about, you know, should I enter into a workout? So, we’ve covered that part. And eventually we’ll cover bankruptcy as well. I just haven’t really found the right guest for that.

Mike Blake: [00:05:00] And we’ve talked about SBA lending in a very sort of particular finite discussion. But we haven’t had a far ranging strategic discussion about debt, how it works. You know, the world of debt is much more expansive than simply SBA lending. SBA is a great program. Don’t get me wrong. It’s one thing that I think our government actually has implemented pretty well with a lot of the desired effect. But there’s a lot more to it.

Mike Blake: [00:05:31] So, I want to give this topic, frankly, the amount of depth and breathing space that it is due. And helping us fill that breathing space is my friend Bill McDermott. Bill and I have known each other for over a decade. He is a graduate from Wake Forest University and launched a career in banking that spanned 32 years. And in spite of knowing Bill for a while, as I’ve said previously on this program, I’ll dig into some of his bio. And I learned something that I did not know. And I did not know that he first started out as the repo man for Wachovia Bank in their management training program. And he later moved to Peachtree Bank, which later became SunTrust. You all know the deal, SunTrust is something like the product of 9,000 mergers. And that’s how banking works, I guess.

Mike Blake: [00:06:22] You know, he was a great producer of both loans and deposits for the bank. Climbing the ranks to ultimately become a group vice-president for the commercial banking division. And in 2001, Bill’s group won the SunTrust Cup – the highly coveted, I imagine, SunTrust Cup – for being the highest performing commercial bank group in the company. He worked in community banking, becoming a top producer for Ironstone Bank, et cetera, et cetera. So, Bill really knows what he’s talking about. Over the last 11 years, Bill has been the profitability coach. A recovering commercial banker, he has served over 200 clients in the last year by delivering results – I don’t know if it’s last year or not. He’ll clarify it. I think it’s more than that – by delivering results oriented insights, helping them to make financial – to take them – sorry – from financial confusion to financial clarity.

Mike Blake: [00:07:15] Bill currently sits on the board of directors for Pinnacle Bank. He also hosts a monthly podcast, ProfitSense, which features stories of successful business owners and the professionals that advise them. When Bill is not working, you can find him on the golf course, gardening, spending time with his family, and leading a small group at his local church. Bill McDermott, welcome to the program.

Bill McDermott: [00:07:37] Mike, thanks so much for having me. I’m excited about talking about the topic. And, yes, the repo man spent time either collecting payments at the local furniture factory. I did move to Kinston, North Carolina, which is tobacco country. So, back in the day, I was known to collect past due car payments from some of the tobacco workers coming out of the field. I had a cash receipt book and collected those payments. Or I did have to repossess a car, too, in my day. So, back then, they thought you had to figure out a way to collect loans before you could make them. So, I did survive that, by the way, as proof of me being here, right?

Mike Blake: [00:08:26] Yeah. You know, otherwise, I have to say, this podcast is sponsored by Weegee. So, clearly you’re here to do it. But, you know, when we were talking off air, you told me something that I thought was fascinating that makes all the sense in the world to me. And that is, you said that before they let you lend money, you’d have to collect it.

Bill McDermott: [00:08:47] Yeah. And so, essentially as a banker, you have to know the characteristics of a good loan from a bad loan. And so, you learn the bad loans first. Unfortunately, you learn what not to do before you learn what to do. And the perspective of a banker in lending money from a banker’s point of view, everything is about risk. A lot of people don’t really understand that a bank really only makes about a 4 or a 5 percent gross margin. They’re leveraged about 10 to 1. So, they don’t really have much room to make mistakes given that margin and given that leverage position. So, it is risky to be in the money lending business. Plus, they’re not loaning their money. They’re loaning their depositor’s money. They have to be sure that they get that money back so that can take care of their depositors as well.

Mike Blake: [00:09:49] You know, I’m probably going to set a record here, I’m going to rip up the script before I even get to the first question. But that is, you know, I think what that would teach you, they talk about the C’s of borrowing. I can’t remember if it’s four or five C’s, but I recall that one of them as character. And that must teach you a lot about the character part. And I wonder if some of that is getting lost. You know, banking, like everybody else, is now in data analytics. But, you know, it’s hard to do that with character. And I’m curious if you have a view as to whether or not maybe that one of the C’s is now getting lost a little bit because, one, they’re not making people learn how to collect money and see borrowers face-to-face before they lend it. And, two, if they were so focused on analytics where, you know, maybe sometimes we go a little bit overboard.

Bill McDermott: [00:10:42] Yeah. And so, I think another point – so I think you’re spot on in what you’re saying – character, the average banker right now that is interfacing with a business owner client typically has not had any form of credit training. And I’m generalizing here, but most bankers below the age of 40 may not have had any formalized credit training. And so, they might be able to evaluate character, but they also may not. The other thing is, there was a time when the banker you met with face-to-face had the authority to approve the loan. Now, the approval process is the salesperson meets with that business owner, gets the financial information, takes it to the credit approver. Well, the credit approvers kind of like the Wizard of Oz behind the green curtain, pulling all the levers, but never himself or herself gets the opportunity to determine the character of that borrower.

Mike Blake: [00:11:53] And I mean, you know, you really can’t know it. We try to get a view of it, of course, with credit history, but that’s only one piece of the deal. But anyway, we do need to get through these questions. But, you know, I just love talking about this stuff, and I could for a long time, but we do need to get into it. So, I’d like to start at a very basic level. And that is, you know, talk about what you see currently as what is more or less a typical borrowing process. And does that vary a lot or can you generalize it fairly widely that most lending programs or lending entities, including banks, follow that?

Bill McDermott: [00:12:32] Yeah. At a high level, there are some commonalities. I think the first thing is, a business owner has to put together a loan package. That loan package is generally going to have three years worth of historical financial information. It may have the most recent interim financials. You know, we just finished January, so a January balance sheet and an income statement. It will include a personal financial statement of any owner that has more than 20 percent ownership. Because a bank looks at the people that make up the ownership of the business. Yes, they are loaning to the business. But, generally, that business is a reflection of the people that are running it.

Bill McDermott: [00:13:23] So, first part is the loan package, Mike. The second part, generally, a credit interview. Again, as I mentioned, banks are looking at everything in terms of risk. So, they will have analyzed those financials. They’re going to have some underwriting questions, what’s going on in the business. But, yeah, to your point about the C’s, there are 5C’s as they’re going through that interview. They’re going to be evaluating the character of the borrowers. They’re going to be looking at the cash flow. Does the business have the ability to pay it back? They’re going to be looking at credit score. Generally, the business owner’s personal credit score is the proxy for the business. They’re going to be looking at collateral. Do they have the ability to secure the loan?

Bill McDermott: [00:14:10] And then, the last thing has nothing to do with the business or the business owner. But they’re looking at conditions, specifically economic conditions. So, we just are, hopefully, on the tail end of a pandemic. But the economic conditions and the economic uncertainty have played a big role in bank’s willingness to loan money in the current economic environment. And so, credit has tightened because conditions of economic uncertainty have tightened. But that’s generally the process, one package, credit interview, evaluating the 5C’s. It’s really important for the business owner to have a clear request. And it’s also very important for the business owner to have a compelling case. Why should the bank loan them money? How does the company present itself in terms of risk? And if there are any risks, can those risks be mitigated to help the bank approve the loan?

Mike Blake: [00:15:14] So, I’m curious because you’ve talked about banks tightening lending standards. And a lot has been made around Fed policy, not just now, but really starting in 2008 when we entered the quantitative easing phase and, all of a sudden, quantitative easing entered the jargon. And as a person who’s a trained economist, that scared the living you know what out of me, because you’re not supposed to be able to do that. It turns out, at least for now, you are. But there’s a paradox that’s happened, I think, and I’d love you to comment on it, which is, things like quantitative easing, things like lowering the discount rate, i.e., the Fed rate, is supposed to make more money available for lending. But, you know, it’s one thing to make more money available. It’s another for the bank to feel comfortable. They’re going to actually get that money back, right? And those two things don’t always flow together and cooperate the way that, I think, policymakers would like.

Bill McDermott: [00:16:19] Yeah. And so, let’s go back to 2008, 2009. Quantitative easing was to make more money more available. But, frankly, banks had capital calls. They had liquidity calls. There was a huge devaluation of real estate. Banks had to actually reset their portfolios. And, frankly, Mike, there were a lot of bank failures because of that. They were undercapitalized. There were cease and desist orders. Banking is a highly regulated business to protect the depositors, of course. And so, you had to record bank failures. So, even though banks are supposed to always be healthy, the level of real estate lending caused a lot of banks to become undercapitalized. And so, the quantitative easing really didn’t help, primarily, because it was the banks that were in poor financial position at that moment, which created a huge consolidation during that phase.

Mike Blake: [00:17:25] So, I’m going to combine kind of two questions here, because I think it just flows better. And that is, you know – well, actually, let’s do it this way. So, my next question is, when you’re lending money, do banks care as to the reason – you know, are they going to ask what you want the money for? And if so, does the answer matter as long as, maybe, there’s enough collateral cash flow or whatever? And what are some good reasons to borrow money and what are some not so great reasons to borrow money?

Bill McDermott: [00:18:04] Yeah. So, that’s a great question. And the answer is, do banks care about what the money is being used for? Absolutely. Unequivocally, yes. As a matter of fact, banks have very specific lending policy that says, I will loan into these situations. I will not loan into these situations. So, for example – you know, appropriate reasons for borrowing money. And I’m going to go back to your circular saw, which I thought was a great example. Circular saw used well from a banking point of view, having a line of credit for a business eases the cash flow bumps. You know, all business owners have generally erratic cash flow. It can either be feast or famine. Having a line of credit helps those famine times by having cash available to insert into the business’s purchasing fixed assets, a business that may need equipment, may need vehicles.

Bill McDermott: [00:19:11] Fixed assets also include real estate, a lot of businesses will buy a building and lease it to their company. So, all of those things – one more, acquisition. You know, one company wants to buy another company. So, certainly those are things that banks would say yes to and are good reasons to borrow.

Bill McDermott: [00:19:34] Two things that come to mind reasons you wouldn’t want to borrow money – and banks would probably not look favorably on that – is, you don’t borrow money to fund losses. If your business is losing money, borrowing money to fund losses is like pouring gas on a fire. It’s an accelerant. The other thing is, there are business owners that like to look at their business as their own personal cookie jar. They take a lot of distributions. And so, banks are not really interested in loaning money to fund the business owner’s lifestyle. So, those would probably be two reasons why a bank wouldn’t lend money to either fund losses or fund distributions.

Bill McDermott: [00:20:23] Another thing would be, banks probably wouldn’t finance anything that they consider to be of speculative nature. And, again, coming from a very conservative point of view, based on the leverage and the gross margin that I mentioned, what I would define as speculative as an entrepreneur and what a banker defines as speculative are really two different things.

Mike Blake: [00:20:48] So, I imagine you have too, but you tell me, you do run into people that are just ideologically opposed or even borderline phobic of debt, right? And they’re proud of the fact that their balance sheet has no liabilities to it. And, you know, what do you think of that attitude? And is that a healthy attitude? Or is that attitude actually creating costs of its own?

Bill McDermott: [00:21:16] Yeah. So, I have a client who’s a professional services provider, she is totally opposed to borrowing money. As a matter of fact, now that I think of it, I have two clients. They don’t believe in using debt. If there is a capital call in the business, they’ll fund it out of their own pocket or fund it out of profits. And so, I’m not really sure. It’s kind of a choice. I would say it’s a little unhealthy and the reason is, primarily, there is a cost associated with that. All businesses need to have access to capital from time to time. And so, for a business to be opposed to debt, they’ve just taken one thing off the table in terms of having access to capital that they won’t use.

Bill McDermott: [00:22:12] And then, the other thing, I think, not having access to that capital, their ability to grow is going to be limited to how much internal cash that they can generate in order to accommodate that growth. So, yes, there is a cost to that attitude. I think it can be limiting. But as far as whether it’s healthy or not, I certainly respect people’s choices. But I think, as with anything else, choices have consequences.

Mike Blake: [00:22:40] So, a term you used earlier today that I want to make sure that we talk about, because you can’t really have a discussion about debt without it. What is the difference between a loan and a line of credit? And when is one more appropriate than the other?

Bill McDermott: [00:22:59] Yeah. So, a loan, in its purest sense, is really a sum of money that is put out there. And the structure of that loan really determines the difference between a loan and a line. So, there are actually three types of loans. The line of credit is one, you borrow, repay, reborrow. And it’s great for handling short term cash flow. The other two types, of course, there’s a term loan. Term loans you use to borrow for equipment. And then, the third is a mortgage loan, Mike, which are used primarily again to purchase real estate, which then is leased back to the company. So, loans fit into three categories really just depending on what the money is used for and then how it’s structured for, short term versus long term.

Mike Blake: [00:24:01] Okay. Now, banks aren’t the only lenders. I think, a lot of people, when they think loans, they think of banks. Or, you know, they think of the loan shark who has the big fur coat is going to break your kneecaps if you don’t pay back. But there’s a lot in between those two, isn’t there?

Bill McDermott: [00:24:22] Yeah. There really is. So, you know, if I’m going to walk down a balance sheet for a business owner, I’m always going to look at bank debt first. Because the accounts payable are a way of financing the business. But as far as actual bank financing or non-bank financing, it’s the cheapest source of capital, the interest rates are lower. But banks are basically loaning against the balance sheet and the income statement of that borrower. If they lost money last year or their balance sheet is leveraged generally more than about $3 of debt to every $1 of equity, they’re going to have a hard time. They can get a loan, but generally not beyond that.

Bill McDermott: [00:25:15] So, for somebody that lost money last year or has a leveraged balance sheet, there are asset-based lenders. Asset based lenders don’t care about the balance sheet. They don’t care about the income statement. All they care about is the collateral. And so, if you have $100,000 in accounts receivable, you should be able to loan or borrow about 75 to 80 percent of that. But it carries a high interest rate. Generally, there’s 1 to 1-1/2 percent per month service charge and then there’s money usually at about prime plus two, prime plus three on top of that. So, 1 percent a month for 12 months is 12 percent interest, prime plus three is another 6 or 6-1/2, so all of a sudden, it adds up quick. Mike, that’s an 18-1/2 percent loan you’re up to credit card rates.

Bill McDermott: [00:26:12] Also, I’m going to say there are some – what I’ll call – payday lenders. Honestly, I think they’re borderline predatory lenders. There are some people that will loan you money, but they ask you to pay a piece of it back every day. And sometimes the annual percentage rate on those loans can be in the 30s, even in the 40 percent. It’s absolutely borderline criminal, in my view. Not to say anything disparagingly about those lenders. I’m sure they serve a purpose. But at such high interest rates, it’s incredibly difficult for a business owner to sustain their business. Because a lot of times. those interest rates exceed the gross profit that the business is even generating.

Mike Blake: [00:27:02] Yeah. And, you know, payday loans and their ilk are kind of interesting. I mean, I’m generally a free market guy, but I also enjoy studying the psychology of decision making. It’s why I do this podcast. And one of the things I’ve learned about decision making in crisis – and it almost doesn’t matter if it’s a financial crisis or physical crisis or something else – I’ve seen empirical studies that show that when a person is in crisis, the average person has a functional IQ reduction of between 10 to 15 percent in the midst of that crisis.

Mike Blake: [00:27:44] So, in effect, when you’re in a crisis, most people become dumber because the nature of the crisis makes you tunnel visioned. It makes you focus on how do you solve the problem today the most painlessly, even though you’re creating a problem ten times bigger that you have to confront a week from now. But the psychology of crisis leads you into that decision. So, you know, whether that means that’s predatory, I’m not sure. And I’m not afraid to say, this in my view, it does call for some regulation because you’re selling to what is effectively an impaired market. It’s fine to say that people are free to make their own decisions, but when there’s data that shows that your market, by definition, is cognitively impaired by the very thing that’s leading it to come to you, there’s a clear conflict of interest.

Bill McDermott: [00:28:43] Yeah. And I think at that point, the business owner in crisis has ultimately a concern that his or her business is no longer viable. And so, they will go to almost any length in order to make sure that their business stays viable. And so, I’m a big believer in the good, fast, cheap – pick any two. If it’s good and if it’s fast, there is no way it’s going to be cheap. But I do think predatory lending goes to the end extreme. It’s not really good, it is fast, but you’re paying exorbitant interest rates for that speed.

Mike Blake: [00:29:29] Yeah. And, frankly, in that kind of scenario, you really should be looking at equity, right? And you talked about funding losses. It’s not as if there isn’t a financial vehicle out there to help you. It’s just that debt is the wrong tool. If we take the circular saw, if you’re in crisis, you’re basically trying to cut a ham sandwich with a circular saw. And all you’re going to do is get a messy kitchen if you try to do that. But on the other hand, if you’re using equity, you’re using a nice little Wusthof knife to cut that sandwich, yeah, it’s going to be more expensive, but it’s the right tool for the right job.

Bill McDermott: [00:30:09] Yeah. No question. So, the nice thing about debt, debt magnifies gains, but the downside is debt also magnifies losses. So, people that use debt are able to grow quicker. But people who use debt when they’re funding losses, it magnifies those losses as well, because you’re basically borrowing money that you can’t pay back and the interest expense pushes your breakeven point even higher. So, you’re, in effect, borrowing into your future when your future is actually trending negatively.

Mike Blake: [00:30:48] So, you know, there are nonbank lenders out there, and not just the asset based lenders, but there are mezzanine lenders. And maybe you’re talking about the same thing – if you are, feel free to correct me. But, you know, lenders for subprime borrowers, I think, if I’m not mistaken, there’s a group out there that they’re not payday lender types, but they’re also are credit that’s available at a higher interest rate that is not bankable from a banking standpoint. Right? So, you know, what are those groups like? And, you know, are they legit? Is interfacing with them similar or different from that with a bank? What does that world kind of look like?

Bill McDermott: [00:31:38] Well, necessity is the mother of invention. Access to capital for business owners has been critical. We went through a period of time where banks were somewhat unhealthy. I think banks are healthy now. But over the last ten years, quite a few nonbanks have entered the market. Possibly the benefit is, they don’t necessarily have to chin to the same regulatory environment that banks do. And so, yeah, I think there are some viable entities out there that can provide capital. They actually require sources of funding. They probably go to the public markets, borrow that money, and then loan it back out on a spread. But, no, I think there are viable options out there that nonbank lenders provide and have kind of helped give business owners access to capital that banks either can or can’t provide, given whatever the prevailing economic factors are.

Mike Blake: [00:32:51] So, once you get into the lending world and all the financial world at all, you’ll start to hear terms like senior debt, junior debt, subordinated debt, can you quickly give us a vocabulary lesson. What do those things mean relative to one another?

Bill McDermott: [00:33:05] Yeah. So, first, senior debt is in the senior position, so it’s the highest of the debt positions. Typically, senior debt is predominantly bank debt. There are a lot of growth companies out there that have lending requirements behind that. Then, generally, junior debt means that it is subordinate to the senior debt. That junior debt is also mixing terms here. But subordinated debt, it’s actually debt that exists under the senior debt. It accomplishes some great things. First, for that growth company, they get access to capital. The senior debt looking at that junior subordinated debt underwrites that debt as if it were equity.

Bill McDermott: [00:33:59] And so, for a senior lender’s point of view, that junior debt gives them extra comfort that there’s cash behind their debt that is also capitalizing the business. From the junior subordinated debt, they provide a very viable access to capital that the senior debt holder is unwilling to provide. But, yeah, all you’re really doing is looking at banks in the senior position. Junior debt and subordinated debt are those institutions that provide capital subordinate to that senior position.

Mike Blake: [00:34:42] So, I wonder if this is true or I’m speculating here, is there also kind of an emotional comfort component that if you’re a senior lender and you know that somebody who’s willing to come in and be a junior lender, that it just sort of validates your judgment?

Bill McDermott: [00:35:00] Yeah. Absolutely.

Mike Blake: [00:35:01] It’s not out there on a limb, right?

Bill McDermott: [00:35:03] Yeah. And the the other thing is, if for one reason or another, that senior debt holder decides that maybe they’re wanting to exit that credit, there is a junior position behind them who may be willing to take them out if they decide to exit. So, it really gives the senior debt holder an opportunity to be taken out, if needed, from the junior subordinate. It gives them the opportunity, potentially, by taking that out, they become the senior debt holder and then that allows other juniors to come in under them.

Mike Blake: [00:35:47] I want to switch gears here, you know, I’d like to talk about the intersection and interdependence, if there is any, on personal credit versus corporate credit. I mean, there must be at some point, I guess, but you tell me where it is. You know, where is the point where lenders make a distinction or stop making a distinction – maybe that’s easier – between the company as a borrower and the owner as a borrower? You know, is there a separation between the two? Or as far as lenders are concerned, are the buyer and the company the same thing? And so, you know, does the credit score of one impact the other? How are those two things linked, if at all?

Bill McDermott: [00:36:40] That’s another great question. So, generally speaking, a closely held business where the ownership is closely held, usually concentrated in anywhere from, maybe, one to three or four partners, the personal credit score of either that individual or individuals, in effect, is the business credit score by proxy. And so, the credit worthiness of that business is, frankly, dependent on the credit score of those individuals. When you get to businesses that aren’t closely held, the ownership is widely dispersed. Publicly held companies, for example, where the ownership is widely dispersed, they have access to sources of capital outside the market. Those businesses usually have their own credit score. If they’re publicly traded, they’re going to have a rating by S&P or Moody’s. They may have a rating by Dun and Bradstreet. So, in those cases, those businesses have developed their own credit score, no longer relying on the ownership because it’s so widely distributed. So, the intersection is, once a closely held business becomes publicly held, the owner’s credit score is no longer.

Mike Blake: [00:38:07] So, sometimes I hear from borrowers that they’ll say, “Well, you know, the bank wouldn’t lend me money if they didn’t think I can repay.” And, to me, that sounds like a little bit of a dangerous statement, because I think you’re kind of offloading too much responsibility to the bank to make the right decision for you. But I like you to respond to that. I mean, can you take some comfort even if you, yourself, have, maybe, misgivings? And maybe we’ll take that person that’s kind of debt-phobic as a good example. Is the very fact that a bank is willing to lend money to you, is that somehow self-validating for the company?

Bill McDermott: [00:38:48] Yeah. So, when I was in banking, the knock on bankers to your point was, “Oh, gosh. Banks just loaned money to businesses that don’t need it.” And so, that is a prevailing thought out there. However, the reality is 80 percent of a bank’s income comes from lending money, Mike. So, if banks don’t loan, they can’t. So, bottom line, I think someone who says that could be maybe that person that got declined, primarily because there was a factor within those 5C’s. You know, maybe they didn’t have sufficient cash flow. Maybe their balance sheet was a little too leveraged. Maybe they were wanting to borrow the money for a speculative purpose. And it just made the sum total of those things unbankable.

Bill McDermott: [00:39:53] Also, I will say, because of COVID, there are a lot of good businesses in a good economic environment were able to borrow money, but not able to borrow money in a COVID type environment. So, the economic conditions also play big into that decision.

Mike Blake: [00:40:15] I want to go back to kind of the personal versus company kind of debt profile, if you will. How do personal guarantees work? Are most business loans to a small business going to require personal guarantee? Can you talk a little bit about how they work? And if I’m a borrower, should I be expected to provide a personal guarantee and what that looks like?

Bill McDermott: [00:40:42] Yeah. So, I got to take you back to my Peachtree bank days. So, I graduated from being the repo man, just beginning to do small business lending. And so, my boss, because the subject to personal guarantees came up, his comment to me was, Mike – and it really resonated to me – he said, “Bill, if a business owner isn’t willing to stand behind his or her business, why should I?” And so, part of that personal guarantee is, yes, a closely held business, 9.9 times out of 10, it’s going to require a personal guarantee for that very reason. If the business owner won’t stand behind their business, then why should the bank stand behind it?

Bill McDermott: [00:41:38] Interestingly, though, just yesterday, I had an email from an owner that I worked with. So, he was offered a six figure line of credit. It was at four percent. There was a 2-1/2 percent origination fee, but it was unsecured and unguaranteed. Now, it was not a bank. It was a nonbank, but the rate was attractive, the fee was high, but unguaranteed. I mean, that really kind of caught me off guard. So, I guess it is out there, but I have not seen it at a bank.

Mike Blake: [00:42:23] So, bottom line, be pleasantly surprised if you’re not asked for a personal guarantee. And maybe a question to think about before you even start the borrowing process is, be prepared for that question, right? And if you’re not prepared to make that personal guarantee, it may not be a good use of your time or the banks to even pursue the discussion.

Bill McDermott: [00:42:43] Precisely. You’re spot on.

Mike Blake: [00:42:45] Okay. So, how can borrowers evaluate their own attractiveness to potential lenders? Are there any kind of self-assessment tool that the borrowers can use to understand where they might lie and maybe try to improve their profile or their attractiveness before they start this process?

Bill McDermott: [00:43:10] Yeah. Such a great question. So, a lot of times, I talk to my clients that I’m working with about what it means to be bankable. And so, the quick answer is, if you lost money last year, you’re going to have a hard time borrowing money this year, because banks believe the best indicator of the future is the past. And if you lost money last year, you’re going to lose money this year. They won’t believe you until you’ve gone through a full year and made a profit. So, self-assessment, profitability. Absolutely.

Bill McDermott: [00:43:47] The second thing is leverage. How much skin in the game do you have in your business versus how much skin in the game your creditors have? If you have more than $3 of debt to every dollar of equity, a bank will consider you highly leveraged and that could cause an issue with your ability to borrow.

Bill McDermott: [00:44:11] So, probably the other things in a different profitability and leverage, if you consistently have low liquidity, not much cash on hand, the bank is going to have some concerns. The other thing is, if you’re not good at collecting your receivables and, frankly, you’re borrowing money to replace receivables that you’re either unwilling or unable to collect, banks are going to have a hard time doing that.

Bill McDermott: [00:44:41] So, I have a little acronym that I call PALL, Profitability, Asset Quality, which is how are you turning your receivables in your inventory, Liquidity, and Leverage. And so, a self-assessment going through PALL, which I do for my clients, I provide a business financial checkup. You know, each one of us gets a physical every year, but often business owners don’t put their business through one. So, we provide that as a service so that they know once a year what’s going on in their business. And it also helps them understand whether they’re bankable or not.

Mike Blake: [00:45:20] We’re talking with Bill McDermott, the profitability coach. And the subject is, Should I borrow money for my company? And, Bill, I just had a couple more questions before we let you go. But a question I do want to get to is, you know, so much of the economy now is a service firm, which means that they’re unlikely to have the kind of collateral that a manufacturing firm has. And I think it’s something that the banking industry is really wrestling with quite a bit. Can service firms borrow money or are there certain conditions under which they can or can’t?

Bill McDermott: [00:45:56] Yeah. And I think that is something that, maybe, has evolved over time. Mike, historically, service firms versus firms that deliver a product, it is a little more nebulous to understand the delivery of a service versus a delivery of a product. You can actually determine when that product has been delivered versus service. I think that has changed over time. I worked with a lot of professional services firms, architects, engineers, I have an interior designer, I have a psychology practice. All of those are providing services, but yet banks are willing and able to loan them money. So, the risk from the bank’s point of view is it’s easier to determine delivery of a product than it is delivery of a service. But I do think the banking industry has gotten comfortable with loaning money to service firms over the years.

Mike Blake: [00:47:00] Are there times when you work with clients that are thinking about borrowing and you tell them, “You know what? Skip it. Just put it on a credit card.” And if so, what does those look like?

Bill McDermott: [00:47:11] Yeah. You know, I would say for a newer business, just getting started, there’s really no credit history. General rule of thumb is to get a bank line of credit. They like to see at least three years of history to loan money. So, yeah, for somebody who’s just getting started, I would suggest get a business credit card. I know when I started, I got a company card through American Express. I do think it’s a great idea. Don’t do it on a personal card, primarily, because when it comes to borrowing money, you want a clear audit trail as far as loaning money for your business versus – excuse me – borrowing money for your business versus borrowing money personally.

Mike Blake: [00:48:06] Bill, this has been a great conversation. There are more questions I could ask, but we have limited time. Would you be willing to answer questions of people that may have a question that we didn’t get a chance to cover here? And if so, what’s the best way for them to contact you?

Bill McDermott: [00:48:24] Sure. And I would love to. Probably the best way to do that is go to theprofitabilitycoach.net. There is a prompt in there if they want to contact me. The other way is phone number, 770-597-3136. I always pick up the phone and answer unless I’m in front of a client. But, Mike, I launched this business with the goal of helping business owners become better financial managers. And so, first, I want to applaud you for even bringing up the topic. There is a lot of mystique around it. But the goal is, I want to give business owners financial clarity out of all of the chaos of what the options are and which is best. So, I’m always happy to help any business owner that wants to contact me.

Mike Blake: [00:49:24] Well, thank you. That’s going to wrap it up for today’s program. I’d like to thank Bill McDermott so much for joining us and sharing his expertise with us.

Mike Blake: [00:49:32] We’ll be exploring a new topic each week, so please tune in so that when you’re faced with your next business decision, you have clear vision when making it. If you enjoy these podcasts, please consider leaving a review of your favorite podcast aggregator. It helps people find us that we can help them. Once again, this is Mike Blake. Our sponsor is Brady Ware & Company. And this has been the Decision Vision podcast.

Tagged With: access to capital, asset-based lenders, bank loan, Bill McDermott, borrow money, Brady Ware, Brady Ware & Company, junior debt, McDermott Financial, McDermott Financial Solutions, Michael Blake, Mike Blake, profitability coach, ProfitSense, recovering banker, SBA Lending, senior debt, subordinated debt

Minneapolis St. Paul Business RadioX® Studio

February 8, 2021 by John Ray

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Our Most Recent Episode


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Nashville Business RadioX® Studio

February 8, 2021 by John Ray

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The Most Challenging Aspect of Maintaining a Podcast, with David Sparks, Sparky Media

February 8, 2021 by John Ray

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The Most Challenging Aspect of Maintaining a Podcast, with David Sparks, Sparky Media

Mike Blake: [00:00:00] So, what do you find as the most challenging part about maintaining the podcast?

David Sparks: [00:00:07] I think, and the advice I give to anybody who wants to get into a podcast is you absolutely have to bring consistency to the audience. If you make a podcast, and you record and release one every blue moon, you’re never going to hold on to an audience because they want consistency. Like Mac Power Users drops every Sunday at 3:00 p.m. Pacific. And if you’re a listener, you know you’re going to have it in your car on Monday morning, I guess that’s not as many people driving right now with the pandemic, but either way, you know that Monday morning, when you do whatever you do that there’ll be a new episode of Mac Power Users there for you.

David Sparks: [00:00:48] And I think if you want to get into this racket, you need to really make a promise with your audience that you can keep them. Maybe that means you just release once a month or once every two weeks, but be clear and stick to your schedule. And that’s the hard part because things happen in life, and you get busy, and like me and like you too, I mean, you have other career that sometimes takes priority, but you still got to make time and do it.

Mike Blake: [00:01:18] Yeah, I think that’s right is that you’re getting into the rhythm of just committing to be there. And I underestimated how important this was. Our producer, John, has been really helpful in terms of educating me on how important that is. But as I had podcasts, I listen to more podcasts than I probably should even admit, let alone do, but I do look before I have that podcast. Before I’m going to invest in this, are they still active? Do they publish regularly or is it just every once in a while when they feel like it? Because I feel like I’m kind of setting myself up for disappointment, and there are enough opportunities to be disappointed in life that I don’t need to make a podcast subscription a contributor to that.

David Sparks

David Sparks is a nerd who podcasts about getting more out of your Apple Technology, Automating your life, and getting more focused. David also publishes MacSparky.com where he writes about finding the best tools, hardware, and workflows for using Apple products to get work done. David’s favorite thing to do is build the MacSparky Field Guides. When not doing all that stuff, David practices a bit of law.

Listen to the full interview with David on Decision Vision here. 


The “One Minute Interview” series is produced by John Ray and in the North Fulton studio of Business RadioX® in Alpharetta. You can find the full archive of shows by following this link.

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

Tagged With: Sparky Media

Ron White, Express Employment Professionals of Atlanta Midtown

February 5, 2021 by John Ray

Express Employment Professionals
North Fulton Business Radio
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Ron White, Express Employment Professionals of Atlanta Midtown (North Fulton Business Radio, Episode 328)

Ron White, Express Employment Professionals, joins host John Ray to discuss his recruiting and staffing business, how he helps both employers and job seekers, the added value he provides employers with a remote workforce, his outlook for 2021 and more. “North Fulton Business Radio” is produced virtually from the North Fulton studio of Business RadioX® in Alpharetta.

Express Employment Professionals of Atlanta Midtown

Express Employment Professionals of Atlanta Midtown, GA is a leading staffing provider helping job seekers find work with a wide variety of local businesses. The Express office in Atlanta Midtown, GA has a variety of jobs available, with full-time, part-time, and temporary positions available. And, as one of the leading staffing agencies in North America, Express provides employment services and workforce solutions to employers throughout our community. Contact us today to get started on finding the right fit for you.

The Express office is a locally owned small business with access to international resources. Founded in 1983, Express today employs more than 552,000 people across more than 825 franchise locations in Canada, the U.S., and South Africa.

Ron White, President, Express Employment Professionals of Atlanta Midtown

Express Employment Professionals
Ron White, Express Employment Professionals Atlanta Midtown

Rondale “Ron” White’s career has been a combination of sales and IT experience, enabling him to develop expertise in all stages of the sales cycle. Being recognized as a growth catalyst, multi-faceted leader, and a hands-on manager who builds trusting, value-based relationships in his previous roles helps Ron set a strong foundation as he opens the Atlanta, GA, Midtown office. His focus on being a people person and relationship developer will be beneficial as he builds a roster of clients and associates.

Throughout the majority of his career, Ron has held leadership roles as well as managed profits and losses. He was often recognized during his career as employee of the quarter and year. Away from the office, Ron enjoys spending his time with his five children, four of whom are adults, and the youngest is a 14-year-old daughter in 10th grade.

Company website      LinkedIn

Questions and Topics in this Interview:

  • Why did you get into the Recruiting Business?
  • How do you like running your own company?
  • What was the impact on your business due to COVID?
  • How’s your outlook for 2021?
  • What makes you different than other agencies?

North Fulton Business Radio” is hosted by John Ray and produced virtually from the North Fulton studio of Business RadioX® in Alpharetta. You can find the full archive of shows by following this link. The show is available on all the major podcast apps, including Apple Podcasts, Spotify, Google, Amazon, iHeart Radio, Stitcher, TuneIn, and others.

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

Tagged With: employment, employment services, Express Employment Professionals, Recruiting, remote workforce, Ron White, staffing

Dr. Ryan Vaughn, Kid’s Dentistry of North Georgia

February 4, 2021 by John Ray

Dental Business Radio
Dental Business Radio
Dr. Ryan Vaughn, Kid's Dentistry of North Georgia
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Kid's Dentistry of North Georgia

Dr. Ryan Vaughn, Kid’s Dentistry of North Georgia (“Dental Business Radio,” Episode 13)

Dr. Ryan Vaughn, Kid’s Dentistry of North Georgia, joins host Patrick O’Rourke on “Dental Business Radio” to discuss how he built his practice, the unique mission of pediatric dentistry, his work with the Georgia Dental Association, and much more. “Dental Business Radio” is underwritten and presented by Practice Quotient: PPO Negotiations & Analysis and produced by the North Fulton studio of Business RadioX®.

Kids Dentistry of North Georgia

At Kid’s Dentistry of North Georgia, we understand that children have very different needs when it comes to dental visits and that a positive experience at the dentist sets the stage for a lifetime of healthy teeth and big smiles. That’s why our pediatric dental office is dedicated to treating children in an encouraging and fun-filled atmosphere where a trip to the dentist is worry-free. Come experience it for yourself and call us to set up your first appointment today.

Follow Kid’s Dentistry of North Georgia on Facebook and go to their website for further information and locations.

Dr. Ryan Vaughn, DMD

Kid's Dentistry of North Georgia
Dr. Ryan Vaughn, Kid’s Dentistry of North Georgia

Dr. Vaughn welcomes you to Kid’s Dentistry of North Georgia! For Dr. Ryan M. Vaughn, opening a pediatric dental practice is the fulfillment of a lifelong dream. He believes in focusing on the whole health of a child and puts that belief into practice in his offices by taking a reasoned and holistic approach with his patients, focusing as much on prevention as treatment.

With an Applied Mathematics degree from the Georgia Institute of Technology, Dr. Vaughn went on to pursue his dental education at the Medical College of Georgia (MCG) and performed his dental residency at MGC and Children’s Healthcare of Atlanta. Dr. Vaughn is a board- certified pediatric dentist and is a member of many professional organizations including the Georgia Dental Association, where he serves as district president, the Hinman Dental Society, Pierre Fauchard, the Academy of Pediatric Dentistry, and the American Board of Pediatric Dentistry.

He and his wife, Julie, live in Flowery Branch with their four children, Madeleine, Eli, Scarlett and Piper, and their two dogs Lily and Lola. Dr. Vaughn is an avid Georgia Tech fan attending football games whenever possible, an active member of Prince of Peace Catholic Church, and a collector of transformers.

Questions/Topics Discussed Include:

  • Children’s Dental Health MonthKid's Dentistry of North Georgia
  • Ryan’s work with the Georgia Dental Association
  • Corporate Dentistry
  • Being the “Chief Everything Officer” in your practice
  • How much business was taught in dental school
  • The book Patrick references in this episode is Flip Your Focus, by Bob Spiel
  • How Dr. Vaughn built his practice in Gainesville and Flowery Branch
  • The unique mission of pediatric dentists
  • Medicaid and pediatric dentistry
  • Suprise billing legislation
TRANSCRIPT

Intro: [00:00:03] Live from the Business RadioX Studio in Atlanta, it’s time for Dental Business Radio. Brought to you by Practice Quotient. Practice Quotient bridges the gap between the provider and payer communities. Now, here’s your host, Patrick O’Rourke.

Patrick O’Rourke: [00:00:18] Hi there, friends of the Dental Business Community. This is your host, Patrick O’Rourke. Thank you so much for joining us today on Dental Business Radio. Sponsored by Practice Quotient, PPO analysis and negotiation. If you’re a top tier doc and you’re not being compensated as such, you might want to give them a call. Another thing to think about sometimes is, who has signing authority in your practice for a $100,000 or more? Because if you’re getting counsel on that, you should be careful. So, consult the professionals at Practice Quotient, PPO analysis and negotiation, www.practicequotient.com or you can call their offices at 470-592-1680.

Patrick O’Rourke: [00:01:07] Now, onto the show. I am here with Dr. Ryan Vaughn of Gainesville, Georgia. How are you today, Ryan?

Ryan Vaughn: [00:01:14] I’m doing well, Patrick. And yourself?

Patrick O’Rourke: [00:01:16] I’m doing terrific. I am COVID-free and ambulatory at the time.

Ryan Vaughn: [00:01:21] Keep it that way.

Patrick O’Rourke: [00:01:22] Yeah. So, I got that going for me. It’s a streak. And I’d like to keep the streak alive for as long as possible, for sure. So, I appreciate you joining us today. Now, Ryan is a pediatric specialist from Gainesville, Georgia. And the name of his practice is Kid’s Dentistry of North Georgia. Ryan is also involved very intimately with the professional community here in Georgia, the Georgia Dental Association. Can you tell us a little bit – do you want to start with your practice or do you want to start with kind of your endeavors and your efforts in the professional circles?

Ryan Vaughn: [00:01:59] Well, I’ll start with the GDA stuff first, because that’s more high level. I’ve been pretty involved with the GDA now for about ten years. I started out doing special events like Give Kids a Smile and Children’s Dental Health Month, which is actually this month. Since 2010, the Give Kids a Smile – unfortunately, this year – it usually happens this coming Friday, so it’s the first Friday of every year in February. But this year it’s obviously been held off pretty much throughout the entire country because of COVID.

Ryan Vaughn: [00:02:40] But Children’s Dental Health Month is still continuing. That’s the month of February. A lot of times we go into schools and just teach kids and other people about dental hygiene and all that fun stuff. But even that’s been put a little bit of a damper on. So, we’re having to do it mostly through Zoom and stuff now –

Patrick O’Rourke: [00:02:58] That’s unfortunate.

Ryan Vaughn: [00:02:59] … because we usually just go into the schools and do assemblies and stuff like that, hand out supplies and stuff. But it is what it is. We just got to find different ways to get the message out there about making sure that people keep their hygiene up because it’s the entryway to the body for a lot of stuff.

Patrick O’Rourke: [00:03:17] Sure. I’ll tell you another thing about kids, so I think it’s really important – so I have two small children and daddy’s been telling them to brush their teeth every single day for their entire life. And then, all of a sudden, somebody comes into the school and hands them a little toothbrush and toothpaste – not that I didn’t give that to them before – and they’re like, “Daddy, brushing your teeth is important.” And I’m like, “Aha.”

Ryan Vaughn: [00:03:43] Well, children don’t listen to their parents. I mean, that’s par for the course. I have five of them, so I know full well on that.

Patrick O’Rourke: [00:03:50] You’re like the God of fertility.

Ryan Vaughn: [00:03:52] No, no, no.

Patrick O’Rourke: [00:03:52] Don’t stand too close.

Ryan Vaughn: [00:03:58] Oh, man. Sorry. There you go right there.

Patrick O’Rourke: [00:04:05] Yeah. So, do you get to your older kids and you say – do the older kids kind of then teach the younger kids there if you have – like, what’s the age distance between the oldest to the youngest in your household?

Ryan Vaughn: [00:04:17] Oh. Well, my oldest is about to be 13 and my youngest is one-and-a-half.

Patrick O’Rourke: [00:04:23] God bless you.

Ryan Vaughn: [00:04:23] We had four right in a row. We were 13, 11, 10, and almost eight. And then, we thought we were done and then we had a surprise, number five. I would tell you that it’s just kind of random in all families. I mean, from all my patient base that I can tell as well, children, they start off doing a fairly decent job brushing their teeth. And I think it goes with hygiene in general. Then, they get to be about tween years and then early teenage years, especially with boys, they don’t like to do it. Now, my son is the exact opposite. He’s way, way more hygienic than his sisters by far.

Patrick O’Rourke: [00:05:06] Really?

Ryan Vaughn: [00:05:06] Yeah. Which is kind of odd. And he’s number two. But, yeah, you see it a lot in practice that that’s when hygiene really falls off and you have to be really, really up on it. Because the parents, they’re like, “Well, they’re old enough now. They should be able to do it on their own.” And like, “Yeah. But you still need to encourage them and make sure that they do it.” And then, they start taking interest in other people and how their appearance is to other people. And then, that’s when things start to progress and start to get a lot better. So, usually about 15 or 16, then they start having a lot better hygiene and all around, especially toothbrushing as well.

Patrick O’Rourke: [00:05:44] Yeah. That makes sense. That makes total sense. I mean, my son is ten and, you know, certainly we have to explain, “You played soccer and basketball for the past few hours and you stink. Don’t go to bed like that.”

Ryan Vaughn: [00:06:00] Yeah. Oh, yeah. They can wash their sheets and maybe he’ll do that a little bit better.

Patrick O’Rourke: [00:06:05] This is one of the things I’ve been telling my wife, actually. I’m like, “Listen, they’re capable kids, you know, have them help you with the laundry.”

Ryan Vaughn: [00:06:15] Absolutely.

Patrick O’Rourke: [00:06:15] That will teach them not to leave everything, you know, inside out and not to put mud on it. I’m going to start making my son pay for his own shoes. He’s like, “I love these shoes. These shoes are great.” When I was growing up, I didn’t get Adidas. I didn’t get Nike, you know. And he’s like, “Look at these shoes. They’re so great.” And then, he runs in the mud, like, right straight into the mud. And I’m like, “Do you know how much those shoes cost, son?” “No.”

Ryan Vaughn: [00:06:42] Yeah. Yeah. I know that full well.

Patrick O’Rourke: [00:06:47] Yeah. So, are you guys doing the hand me downs? So, I’ve got a boy and a girl, so we can’t do that.

Ryan Vaughn: [00:06:51] Yeah. All the girls stuff is hand me down. The boy, obviously, it’s not – not at all. But he hands his stuff down to his cousins because he’s got some younger cousins, but he’s the oldest. So, all his stuff – and the girls kind of get a little ticked off about that, that he gets a lot of the new stuff. But I mean, it is what it is. I mean, you got three sisters because there’s four girls, it’s going to happen that way.

Patrick O’Rourke: [00:07:18] Right. I’m like, “Hey, listen. My job is to keep you alive. Are you alive?”

Ryan Vaughn: [00:07:23] That’s right.

Patrick O’Rourke: [00:07:25] Mission accomplished.

Ryan Vaughn: [00:07:27] I have this little saying in my basement, it’s from Alcatraz Prison and it says, “You’re entitled to food, clothing, and medical attention. That’s it. All the rest, you have to earn.”

Patrick O’Rourke: [00:07:39] Right. So, some of that stuff is on hold and we are trying to do some education, you know, in various ways. And so, outside of that, I did not know it’s February. So, February is Children’s Dental Health Awareness Month.

Ryan Vaughn: [00:08:00] Yeah. Yeah. Children’s Dental Health Month, CDHM.

Patrick O’Rourke: [00:08:04] Gotcha. Okay. So, hashtag. We’ll make sure to promote that. John Ray, the producer there, he’s on it. John Ray, the unofficial mayor of North Fulton County. He is with us today. So, outside of that, what are you working on with the GDA? So, you’re doing ten years, you did some volunteer work, then you started to get involved, get on the board. And that in itself is like a second job – speaking to somebody who’s spent some time on professional boards. So, just tell me about that journey, and what you’re proud of, and what you’re working on now.

Ryan Vaughn: [00:08:43] Well, I went through leadership within the northern district, and just whatever has been needed to be done, that’s what I do. I mean, if they ask me to do something, then I’ll get it done. And then, after that, I’ve been a delegate because we have our hierarchy structure that we have a House of Delegates and a Board of Trustees. And then, about three or four years ago, I became a board trustee member. And I’ve been one since then. And I’ve, also, in the past couple of years, become a delegate for the American Dental Association as a whole. So, we go out there every year to do their House of Delegates, because they only have one a year. And it’s usually in different places, obviously, around the country, because they rotate it so that many people get to them as possible.

Ryan Vaughn: [00:09:39] And I will tell you, the GDA, under the watch of the the executive director who came on in 2014, I believe, maybe 2013 – a little bit closer. Sorry – just done a tremendous 180 and the association has done more for us, especially in this past year with COVID than could have ever been expected. And I’m grateful for them and I’m glad to be part of it, to be honest with you.

Patrick O’Rourke: [00:10:10] So, who’s the director that you’re mentioning?

Ryan Vaughn: [00:10:14] The executive director is Frank Capaldo.

Patrick O’Rourke: [00:10:19] Frank. So, Frank, great job. Thank you very much. So, Ryan Vaughn wants to give you a shoutout. I met Frank as well before. Also, a scholar. Frank over there, I think, does a terrific job.

Ryan Vaughn: [00:10:31] Oh, yeah. He is our attorney – general counsel, I should say. And he does a lot of lobbying for us down at the Capitol.

Patrick O’Rourke: [00:10:41] Yeah. So, what’s been interesting to me, you know, from the insurance industry, when I talk to clients in other states and some shenanigans are going on, sometimes I ask them, I’m like, “Well, what is the -” and I don’t want to call anyone out specifically – but, “Well, what does your state dental association say about that?” And they’re like, “Well, they really haven’t said anything, you know.”

Patrick O’Rourke: [00:11:16] And one time there’s one certain company, that I’m not going to mention either, big insurance company who was doing something that was adverse to the interest of the provider community. And so, I said, “Well, what does your state dental association say about that?” And they’re like, “Well, you know, the board went to the carrier, and the carrier said did this. And so, that’s what we’re going to have to do.” And I’m like, “Why are you asking the carrier?” You know, that’s like asking the fox in the henhouse like, “Hey, are you warm? Would you like a blanket?” And would have a knife and a fork. “You know, you want some Ginsu knives, a barbecue set, what’s going on?” And I was like, “You really need to tell the board to get their head out of their hindquarters.” And one of the partners pipes up and he goes, “Pat, I’m on the board.” And I said, “Well, Bob, you need to get your head out of your hindquarters.”

Ryan Vaughn: [00:12:06] I bet that went over real well.

Patrick O’Rourke: [00:12:08] I couldn’t see his face, so I don’t know. But I mean, you’ve known me for a while, I don’t change much. And so, kind of what you see is what you get. I’m like, bye-bye. And if I feel a certain way, it’s not going to change just because that person is in the room. I think I’m polite, but I’m, you know, kind of firm in the way I feel about things. And I’m also open to folks changing my mind. And so, it’s just surprising to me that there’s – and I’ve had other clients describe their state associations as effectless, which is not a good word. Right? And as far as advocacy and protecting the interests of their members, for sure the Georgia Dental Association understands that and is proactive. They don’t just sit and wait.

Ryan Vaughn: [00:12:55] Yeah. We strive to do as much as we can for our profession and our members. Because, I mean, what else should we be doing? I mean, that’s what our charter is. And by doing that, then we protect the population of the state. And that’s what’s the most important thing is the patients. But we couldn’t do it without the profession. And so, that’s what we’re here to protect.

Patrick O’Rourke: [00:13:20] Do you think that access – just on a state basis, not in Gainesville, but do you think that there’s a struggle with access to oral health care in outstate? Is that something that you guys talk about?

Ryan Vaughn: [00:13:33] Yeah. We talk about it quite often. In the rural parts of the state, especially the very rural parts like northeast part of the state in the mountains and definitely in the southwest and the southeast, far south of Savannah, it can be a challenge. You know, we ran a study several years back and there were counties in this state that didn’t even have a dentist. Now, we’ve done our best to try and mitigate that as much as we can. But, even still with that study, we found that pretty much the entire population of the state within a 30 to 45-minute drive could get to a dentist.

Ryan Vaughn: [00:14:20] And so, a lot of the access issue, there is a – I guess the best way to describe it is, it falls on both ends. Because you’ve got the patients who just are unwilling to go to the dentist because of whether it’s fear, monetary, and other issues, they just won’t go. And then, you have some, where you’ve got dentists there, but they just can’t handle the caseload because it’s so overwhelming with the number of people that are there and the few dentists that are there. And so, it’s a balancing act.

Ryan Vaughn: [00:15:07] I don’t want to sound like people – I guess the best way to say it is, there’s a real big push within certain circles that say that access is just completely – the access problem is a huge, huge issue. Like, it’s the paramount number one issue. And I don’t think it’s as much of a provider issue as they make it out to be. There is a component to that. But I think there’s a lot of other factors in there as well.

Patrick O’Rourke: [00:15:45] I would completely agree with you. If you take a step back, you know, I like to push the argument sometimes to the complete and exaggerated other side. Was there more access 50 years ago?

Ryan Vaughn: [00:16:02] Well, I mean, there are more members of the GDA now, so I would imagine that there were fewer dentists. But the population was also less at the same time.

Patrick O’Rourke: [00:16:10] Fair point.

Ryan Vaughn: [00:16:10] So, it’s kind of hard to say one way or the other. But I would tell you that the number of single dentist offices has declined, but the number of dental offices as a whole has gone up.

Ryan Vaughn: [00:16:28] Because you’re counting the difference between single independent practices versus corporate.

Patrick O’Rourke: [00:16:32] Correct. Corporate dentistry, in my mind – I got to watch this stuff all the time in just full disclosure. We have, you know, corporate clients as well as independent. It just depends on the client, what their needs are. And so, corporate industry definitely does some good things. There’s no but, so corporate dentistry does do some good things. And just like any segment of any type of population, there’s some good ones and there’s some not so good ones. And you could say the same thing to be fair about independent practitioners.

Ryan Vaughn: [00:17:11] Absolutely.

Patrick O’Rourke: [00:17:12] But right now, I feel like there’s a crescendo of consolidation. I’ve been watching it ebb and flow for the past ten years. And right now, it is just like I’ve never seen anything like it. And so, what does that mean to organized industry, if anything?

Ryan Vaughn: [00:17:34] Well, you know, DSOs or the Dental Service Organizations, that are mostly a lot of the corporate practices, they tend to do their own advocacy. And they do participate within the ADA and its tripartite organization. But they do, do a lot of their own stuff as well. And so, you can look at it two ways. You can see that when they’re working in concert, it makes it even more imperative upon legislation and stuff within government circles. But there are some times where things run counter to the ADA or the GDA. And in those cases, we try to work together as much as we can to make sure that we find some type of common goal. Because the corporate model is here and it’s not going to go away. It’s just only going to get more and more involved in the profession itself. So, it’s one of those things where there’s no sense in trying to fight it. We should try to work together to just make our profession better and to help the patients in this country.

Patrick O’Rourke: [00:18:53] Yeah. I totally agree. And it’s something that I’ve talked about, you know, during my lectures. And so, I think it’s changed quite a bit. But there used to be sort of a theater like, “Oh, corporate dentistry.” Like, it’s some bogeyman. And I’m like, “Listen, here’s the deal -” And I would tell my clients, “- you’re a business owner. Handle your business. You can’t control what happens outside of your business. So, you do what you do and be the best that you can be, and all the chips will fall into place. But worrying about the bogeyman, that’s like worrying about whether Vladimir Putin is listening to my conversation right now.” So, Vlad. How are you doing, bud?

Ryan Vaughn: [00:19:35] Well, at least he’s not Vlad the Impaler.

Patrick O’Rourke: [00:19:40] That we know of.

Ryan Vaughn: [00:19:41] Sorry. I didn’t mean to –

Patrick O’Rourke: [00:19:47] That’s the problem with victims, they’re ashamed to speak out.

Ryan Vaughn: [00:19:52] Yeah. I will tell you, I do have an associate. But owning my own practice, the dentistry stuff, man, I love it. I absolutely love it. And it’s why I do what I do every day. But running a business, I was not built to do that. And that’s a very difficult struggle. And so, that’s what attracts a lot of the people to corporate models is that, you get to go in there, you get to practice your dentistry. You don’t have to worry about that other stuff. And so, that coupled with the increasing student debt that kids are coming out of school with, it’s very, very, very attractive to go into that type of practice coming out of school.

Patrick O’Rourke: [00:20:40] I’ve heard that. And I’ve seen some of them do a very good job, you know, on a track. And so, it’s difficult to own a business. Like, one of the reasons why I started the show, like, being an entrepreneur is not for the faint of heart. I was reading a book the other day – and I’ll give a shoutout in the show notes to the author – and in the first chapter, he’s like, “Well, so owning a business is the biggest challenge you’ve ever had.” It’s not like your marriage is hard. It is hard. Graduating from school is hard. Winning a fight, winning a championship, anything is hard. But owning a business, and running a business, and doing it successfully is the biggest challenge you’ll ever face in your life. You are now the chief everything officer. And I thought that that was awesome. And check out the show notes and I’m going to put a link to the book on that just for the audience, because I found that to be pretty powerful and I told him that.

Patrick O’Rourke: [00:21:47] So, you’re absolutely right. But, certainly, I feel like there’s two different types. I don’t want to say old school and new school, but that’s kind of how I formed it in my head. Is that, you have like an old school where you have the docs that are like you just hang your shingle out there and you’re like, “Hey, I’m the dentist in town,” and, you know, people come in, and that’s that. And then, you have the new school and maybe they’re going to go to corporate. I think that there’s certainly some people that are attracted to that or maybe they’ve tried it out and they realized, “Wow, I didn’t know any of this stuff. And so, I need to kind of learn about it first.” But then, there’s some that are definitely entrepreneurial mindset.

Ryan Vaughn: [00:22:26] Absolutely.

Patrick O’Rourke: [00:22:27] Like, they want to build their own game, then their own empire. And, you know, they’re working on it. They work on their craft. They have their mastermind alliance. And so, hats off to all of them. Like, I get a kick out of them, their energy and their enthusiasm.

Ryan Vaughn: [00:22:42] I mean, to be able to do both, my mind is not wired that way. But a lot of people are. And, I mean, they do a really, really good job with it.

Patrick O’Rourke: [00:22:51] And managing people would be easy if it wasn’t for the people.

Ryan Vaughn: [00:22:58] That’s true. Isn’t that the truth?

Patrick O’Rourke: [00:23:01] Yeah. That’s what I was told. And so, how much business talk or business subject matter is there in your insanely expensive dental school?

Ryan Vaughn: [00:23:15] We had, I think, one class. It was split up over two semesters. During that class, we had to learn how to set up a dental office, and write a business plan, present it, and try and get funding, and learn how to design an office for what you want to do, number of patients, and stuff like that. But at the end of the day, you’re in the middle of doing all of your other coursework and seeing patients for doing crowns and bridges and stuff like that to get stuff accomplished to graduate. And so, it’s almost like playing Monopoly. Like, you learn a little bit about real estate, but you really don’t know about real estate play Monopoly.

Ryan Vaughn: [00:24:03] And so, like I said, I had to present a business plan because I had to start my own practice and all that. And I didn’t have to design my own practice because I went and restarted an old dental office for pediatrics, which took that part away. But it was a stepping stone, like it was a start. But, in my opinion, it wasn’t enough for going out there. Because once you’re out there and you’re, like, sitting there waiting for the phone to ring and your only employee is your wife, you sit, and sit, and sit. And then, finally, once that ball started rolling, it went just fine. But that initial shock, it’s something else that you’re not prepared for. And I don’t even think that even if you had, like, a full-fledged class throughout all four years of dental school that it would still prepare you enough for that.

Patrick O’Rourke: [00:25:04] Yeah. Yeah. I wasn’t prepared. And, you know, I would [inaudible] for corporate America. And I had a lot of good mentors and still do. But, you know, everybody is like, “Pat takes five years.” I mean, “Five years? Let me show you something. I’m ready for that. Five years. That’s too long.” Five years goes by in a blink of an eye. And then, I’m like, “Oh. I see what they’re talking about.” Now, you’ve kind of finally found your groove. And sometimes I get calls, usually around July. I get calls from kids and they’re like, “Hey, I heard you’re real good. And so, I just closed on a practice or were about to open our doors -” and it’s like a Friday, you know, “- on Monday. And so, I need really high fee schedules and I want to be credentialed on Monday. All right. Make that happen. I only got ten minutes before my next patient.” And I’m like, “That’s not going to happen.

Patrick O’Rourke: [00:26:00] And so, “Nobody explained what credentialing is to you and, you know, how much leverage do you have, and how much access do you want to have to these various pools of discount insurance patients. Have you thought about any of that?” And he’s, “What are you talking about?” And so, I feel like part of what I like to do is educate. And, unfortunately, when I went to schools, I get in there and I spend a lot of time, you know. And I’m like, “So, nobody told you about any of this stuff?” I got my white board going. And they’re like, “No.” It makes me feel good because I feel like I’m educating them. But at the same time, I feel like I’m throwing a stone in the ocean.

Ryan Vaughn: [00:26:39] Yeah. Exactly.

Patrick O’Rourke: [00:26:40] And it’s like somebody has to tell you about all of this other stuff because the bullets are live. The meter is running. And it’s your money, baby, you know. Yeah. It’s a great business, because your market is people with teeth within three miles of you. That’s pretty awesome. But you have to be able to not just be confident and effective in your clinical skills. You need to be able to articulate that value out to the people with teeth that want to keep them. Right?

Ryan Vaughn: [00:27:11] Sure.

Patrick O’Rourke: [00:27:12] Tell me kind of how you’ve built the prestigious reputation that you have and enjoy in Gainesville.

Ryan Vaughn: [00:27:21] Okay. When we get a break, I want to come back to the insurance because I was going to say something to that effect. Because that was one of the more difficult things to deal with when starting a business is insurance. When I built my practice, I built it similar to the way I practice in residency. When I did residency, I had a very unique experience. We had a a clinical and didactic side with some really, really awesome professors. But then, it was also split half way with Children’s Healthcare of Atlanta. And so, we did a lot of hospital style dentistry with a lot of special needs patients and stuff like that. And so, I learned how to be both in a practice setting and also in a hospital setting. And so, I translated that to my own practice. And so, I try to treat children to the best that I can.

Ryan Vaughn: [00:28:22] And I have different levels of, obviously, treating children, whether or not we just do it with them just sitting in the chair, if they’re cooperative enough to do it that way. Or we do oral sedations in the office. And then, in some cases, we actually take kids to the hospital and treat them at the hospital with them completely under anesthesia. Usually, reserved for very, very young kids or kids with special needs. And we try to treat most of our patients in the office that we can. I try to spend as much time as I can with my patients. I don’t try to run it to see as many patients as I possibly can in any given time frame, because not only is it just not conducive for the patients, because, I mean, kids, they need as much attention as they can get. But it also wears me out. If I have to sit there and just see a patient and not make a personal connection with them, then I feel like I’m just going through the day and just knocking over dominoes and not getting anything out of it. And so, that’s how we’ve focused our practice.

Ryan Vaughn: [00:29:33] I would tell you in terms of treatment, we’re pretty conservative about how we do things. I don’t know if you guys are aware – this was, like, five or six years ago – there was a product that came out that’s called Silver Diamine Fluoride. We use that pretty religiously in our office. We’ve been using it since it came out. It’s helped tremendously with kids who had just tiny, tiny little spots in their teeth. Because it used to be before, if you had young kids that had tiny little spots in their teeth, I mean, you’d have to do fillings in them. Especially in the molars, they don’t usually fall out on boys or girls until they’re 10 or 11 years old. And if you got a three-year-old, that’s eight years, that cavity is going to bomb out and become something really bad very quickly.

Ryan Vaughn: [00:30:17] But with this, a lot of times we don’t have to do that anymore. We can try and put this stuff on there. And it’s just a little paint brush, really easy for the kids. Other than the taste, it tastes kind of funny. But we just do that a couple of times and then we just monitor it. And a lot of times, as long as we can get some hygiene change as well, we’ll stop the decay from getting any worse and then we just kind of leave it and watch it until it falls out, which is fantastic.

Patrick O’Rourke: [00:30:46] So, is this like a sealant?

Ryan Vaughn: [00:30:49] No. The best way to describe the consistency of it, it’s kind of like Orajel. It’s very, very thin. And so, you take it and you put it on a little brush and then you just kind of put it in between the teeth. Because most times – not always, but most times with kids – when they’re going to get cavities, they get them in between their teeth. Whereas adults, they’ll get them on the tops of their teeth and other areas. They usually get them in between teeth. And so, we use that to just kind of flow in between there – not the word, best word is staunch but it kind of is like doing that. If you’re trying to just arrest all of the bacteria that’s in that spot, that way it forms like a barrier from other bacteria getting in there and restarting the cavity, basically.

Patrick O’Rourke: [00:31:34] Gotcha. Yeah. That’s what I was going to say. I was going to say arrest. And I was going to be smart, I was going to say, arrest the corrosion.

Ryan Vaughn: [00:31:42] That’s a good way of putting it.

Patrick O’Rourke: [00:31:43] Yeah. Okay. Well, not to take the words out of your mouth, you know. Well, I said corrosion, not bacteria.

Ryan Vaughn: [00:31:48] It’s like Rust-Oleum for teeth.

Patrick O’Rourke: [00:31:50] There you go. I know what that is because of Toy Story – no. Not Toy Story. Cars.

Ryan Vaughn: [00:31:56] Rust-eze Medicated Bumper Ointment. We watch a lot of kids movies and TV shows in our office.

Patrick O’Rourke: [00:32:01] I love kids. They’re awesome. I really do. I watch a lot of that.

Ryan Vaughn: [00:32:01] I hope Disney doesn’t come down on me for that.

Patrick O’Rourke: [00:32:01] I don’t think so. Disney, listen. If you guys want to sponsor the show, you want to get the word out. You need to take Ryan and Patrick, and all of our families, to a wonderful Disney vacation. And we’ll give you the proper credit. I will say I love Disney World. You know, you go there. I don’t want to know how much it costs. At the end of it, they’re like, “All right. Here’s your bill.” I was like, “Don’t even show me. I had a nice time. I had a nice week. Don’t ruin it by telling me how much it costs.” But the level of service that they have and the whole experience there, wonderful. So, we’re looking at getting back to them.

Patrick O’Rourke: [00:32:46] I also a Disney planner. As a matter of fact, did you know that for Disney – this is totally sidetracked – they have Disney planners that work for free. Like, Disney pays them and they love Disney. And they’ll plan out your whole thing. So, Holly Ramey is ours, and she’s one of our neighbors, and she is terrific about it. So, big shoutout to Holly Ramey and her husband, Mark, too. Thanks for listening to the show, guys. So, Disney, listen. All ears. Please feel free to contact me if you want to be a sponsor. All right.

Patrick O’Rourke: [00:33:23] So, going back to that, so you’re kind of known in the community. And so, when was the practice originally established?

Ryan Vaughn: [00:33:33] It was opened August 1st, 2009.

Patrick O’Rourke: [00:33:37] 2009.

Ryan Vaughn: [00:33:37] It’s going to be 12 years at the end of July.

Patrick O’Rourke: [00:33:40] All right. And then, now, you have an office not just in Gainesville, but also in Flowery Branch.

Ryan Vaughn: [00:33:45] Correct.

Patrick O’Rourke: [00:33:45] All right. So, what was behind the decision behind expansion?

Ryan Vaughn: [00:33:49] A friend of mine, he’s an orthodontist up there. He had built a building because he was going to put his orthodontic practice in it, and he did so. And he had asked if I wanted to open a second office. Well, at the time, in the Gainesville office, where we were at, was really, really full. And I was like, “Well, why not try and start a second office?” And my wife was really, really instrumental in that decision. And then, they came to realize that running two offices is very, very difficult, so that took some time. And, also, I knew I wanted to get an associate because, like I was saying, the other office was very, very full. And that also took some time, too, was finding the right person that I really thought could practice dentistry the same way that I do. Because you don’t want to just pick somebody off the street and take them as a dentist because you want them to have the same mindset, the same compassion that you do. That way, there’s very, very little discrepancies between how the patients are treated in the office.

Patrick O’Rourke: [00:35:07] Sure. That makes total sense. And that’s really probably the second biggest, you know, concern I hear from clients is finding quality associates and keeping associates. And I think even in pediatric, it’s totally different, especially in the south. Not that it’s not like that everywhere, but it’s still Ryan Vaughn. And Ryan Vaughn, they know you. They know Kid’s Dentistry of North Georgia. But, you know, one of the things I love about Georgia is that, well, you know, they know who you are. And people do business with people that they want to be able to look in the eyeball and shake your hand and make sure you know what you’re talking about.

Patrick O’Rourke: [00:35:48] And so, when you have that going on, then it’s your reputation. So, they’re a representative of you and doing so with kids, too, in a clinical manner. I totally get that. So, how is Flowery Branch doing then? So, you start there from scratch then what?

Ryan Vaughn: [00:36:12] You know, I could only devote so much time to the office at first because I had the other office to attend to. And so, we’ve grown it slowly over time. But it’s doing really well. I mean, I can’t complain, especially with my associate. We’re running both offices pretty much full on for at least four days a week. And then, we also are in the hospital a day a week, one of us is. Because we also get a lot of patients coming from the health departments throughout the northeast part of the state. And the reason for that is that, the state Medicaid system, there’s very few pediatric dentists in the northeast part of the state who take Medicaid insurance.

Patrick O’Rourke: [00:37:01] So, like Blue Ridge, Toccoa?

Ryan Vaughn: [00:37:02] Correct. Blue Ridge, Toccoa, Habersham, White County, Franklin County, Union County, all of them. We get a lot of the patients that they see at the health departments there who when they need treatment, they come down to see us. And a lot of times it’s some really severe cases. And so, we actually see them in the hospital setting to get them taken care of. Like, two or three-year-olds that have 12 cavities, 15.

Patrick O’Rourke: [00:37:28] It’s awful.

Ryan Vaughn: [00:37:29] Yeah. But I see it more as this is what I’m doing for my community type of thing, because these patients need to be seen. And so, we pick up as much slack as we possibly can.

Patrick O’Rourke: [00:37:45] That’s one of the things about pedias, I think that all doctors really have this to some degree or another. But it’s more so to a higher degree, what I’m about to say. The pediatric specialists do the work because they love the work. And a lot of time, Medicaid is frequently part of that because they want to help the community.

Ryan Vaughn: [00:38:12] Sure.

Patrick O’Rourke: [00:38:12] And from an insurance, I’m going to circle back to that first from this standpoint, most of our pediatric specialist clients take Medicaid and then you’re looking at the commercial PPO contracts. And the theory or the school of thought – which is not totally wrong, I have to say, and sometimes I’ll subscribe to it – but what will happen is that, the commercial carriers will say, “Yeah. Your client is on Medicaid.” So, they’re taking $20 for an evaluation. We’re paying them 25. What’s the problem? And so, especially in a case like yours, it’s really just a time roadblock where we then have to articulate, “Ryan is not doing it because Ryan needs patients.” They’re like, “Oh, they must need patients.” Ryan is doing it because he wants to treat the kids in his community and that’s why he’s doing it. So, he’s losing money there. But we’re not going to lose money over here with you guys. You’re not going to be able to get to ride the, you know, 30 cents on the dollar train because you’re not poor. I’m you’re not singling out any carriers. Not today anyway.

Ryan Vaughn: [00:39:27] Yeah. No. I’m going to plug them as well. But when we started working with Practice Quotient about eight years ago, they were a godsend because they were able to help us do things that we were unable to do. Because we would contact the carriers and they’d be like, “Yeah. No. You’ve got what you got.” I mean, to be honest with you, it’s the same thing I say to my kids, you get what you get and you don’t pitch a fit. But when inflation hits and you’re still making the same thing, then it makes it a little bit more difficult because dental supply costs don’t go down. They only go up. So, it does make it difficult.

Patrick O’Rourke: [00:40:13] Yeah. It does. So, your experience with Practice Quotient, that was positive.

Ryan Vaughn: [00:40:20] Absolutely. We’ve used them twice now.

Patrick O’Rourke: [00:40:22] Yeah. Terrific. Terrific. Glad to hear that. I appreciate the kind words about the work. It’s one of the reasons why I do it too. It’s certainly not on the cover of fortune wearing mogul clothes. Not yet.

Ryan Vaughn: [00:40:36] Are you sure you’re not wearing them now, though?

Patrick O’Rourke: [00:40:38] I borrowed this jacket.

Ryan Vaughn: [00:40:39] Okay.

Patrick O’Rourke: [00:40:45] But that’s a drawback sometimes with Medicaid. So, now, you’re drawing from all over. So, now, the health departments know where to send their patients. You know, this is Business Radio and I’m really familiar with how it all works, right? So, That’s not a profit center. That’s not going to keep running five kids fed.

Ryan Vaughn: [00:41:06] Absolutely not.

Patrick O’Rourke: [00:41:07] And so, now, we’re also having to build the reputation as the kind of place to go. And you’ve done a terrific job doing that over, you know – 11 years, 12 years? -12 years now – so a dozen years. Now, you have an associate. Does having the associate allow Ryan Vaughn to take more vacations?

Ryan Vaughn: [00:41:27] You would think so.

Patrick O’Rourke: [00:41:29] I would think so.

Ryan Vaughn: [00:41:30] And I would tell you that I do take more time away from the practice. But most of that time is either spent with doing stuff for the GDA and helping them out. It also gives me some time to do some of the administrative stuff around the office that needs to get done without having to worry about patients and doing it after hours. So, that way I can spend more time with my family, which is the major key.

Patrick O’Rourke: [00:41:53] Right. Yeah. You know, I coach basketball now.

Ryan Vaughn: [00:41:57] Oh, yeah?

Patrick O’Rourke: [00:41:57] Yeah. You know, I’ve been doing it actually for – this is my fourth year. And probably one of the most satisfying things I’ve done in the past ten years. And I built my own business and I’ve done a lot of stuff that I’m pleased with. Like, that’s been cool. Like, I’m pretty excited we got a game this Saturday.

Ryan Vaughn: [00:42:16] Oh, so there is a season?

Patrick O’Rourke: [00:42:18] Yeah. We’ve had two games and we have two more games. We’re not going to do any makeup games. And so, you have to finish above 500 in order to make the playoffs. And so, my kids are fairly adept at math. Cherokee County Public School, thank you. I said, “So, if we have one loss and one win and two games left, how many games do we need to win in order to have a winning record?” And they’re like, “All of them, Coach.” I’m like, “That’s right.”

Ryan Vaughn: [00:42:52] Winning is everything.

Patrick O’Rourke: [00:42:53] Yes. Well, they don’t like to lose. I’ll tell you these kids, they don’t like to lose less than me. And I don’t really approach anything to come out not victorious, let’s just say that. I didn’t know anything about basketball four years ago. I didn’t play basketball.

Ryan Vaughn: [00:43:09] Oh, really?

Patrick O’Rourke: [00:43:10] Yeah. My wife is just like, “You need to get out of the house and stop working so much, blah, blah, blah.”

Ryan Vaughn: [00:43:16] Working with kids is satisfying, for sure.

Patrick O’Rourke: [00:43:18] It is. Yeah. I’ve learned a lot, too, about myself and also about patience. But it’s been very gratifying. So, you know, I can see how that work would be a lot better than just crunching numbers all day, you know, like some people do. And arguing with other grown adults about things that should be just put right. So, stop wasting my time, insurance companies. Thank you.

Ryan Vaughn: [00:43:48] I feel the same way. Like, I can relate to children maybe because I have the mentality of a child – I don’t know. But when discussions with adults tend to go sideways sometimes. Kids, they don’t normally do that. That’s why I like just kids.

Patrick O’Rourke: [00:44:02] Kids are typically easier. You know, they don’t always understand what I’m saying. And that’s why if I start losing an argument with the kid, I just start using really big words that they don’t know. And then, I’m like, “Yeah. How about that? You didn’t know about that, did you?” I use my – I can’t even say it. And if that doesn’t work, if they actually do know the words then I just start speaking a different language.

Ryan Vaughn: [00:44:30] Which one do you usually default to?

Patrick O’Rourke: [00:44:33] Portuguese or Spanish.

Ryan Vaughn: [00:44:34] But don’t a lot of kids know Spanish?

Patrick O’Rourke: [00:44:36] They do. So, I have Portuguese as back up.

Ryan Vaughn: [00:44:38] Gotcha.

Patrick O’Rourke: [00:44:39] Because I’m like, “[Foreign language]. What do you know about that? Well, if you don’t know about that, then you don’t have a leg to stand on, do you kid?”

Ryan Vaughn: [00:44:54] That’s right.

Patrick O’Rourke: [00:44:54] So, I have a question for you.

Ryan Vaughn: [00:44:58] Sure.

Patrick O’Rourke: [00:45:00] There was some recent legislation, 11, on the out of network surprise billing, which then the dentist got wrapped in on. Give me your interpretation of it.

Ryan Vaughn: [00:45:15] Well, the surprise billing is a really hot button issue, because what you have is, especially in the hospital settings, you’ll go in and the hospital – medicine itself is very, very segregated, and I don’t mean that in terms of a racial divide. I mean that in terms of, there’s a lot of different specialties. And so, you’ve got doctors who specialize in very, very small niches. And so, you go into the hospital and you have an ailment, and you don’t know what that is because you’re the patient. And then, you’ll go into the E.R. and then you’ll get shuttled somewhere else, and then somewhere else, and somewhere else. But you think that you’re fully contained within the hospital setting. So that every person who comes in there to see you for a different reason to try and figure out what’s wrong, they will fall under the umbrella policy of the hospital itself. That’s not necessarily the case.

Ryan Vaughn: [00:46:14] And so, suppose you’re in certain instances, you go in there and then you have to go under anesthesia. But the anesthesia group that is at this hospital is not under the same umbrella policy of the hospital. Then, you get a different bill from the anesthesiologist, which doesn’t fall under your in-network fees or coverage with your insurance, and so that’s what surprise billing is. And so, you get another bill that’s way outrageous because you weren’t aware of it. And at the time, I mean, you’re not mentally 100 percent there because you’re either in pain or something else is going on. And so, what the surprise billing was intended to do was to make it so that the patients are aware upfront if there’s any services that fall outside of the realm of the hospital fee structure for your insurance.

Ryan Vaughn: [00:47:10] Now, dentists got involved because there’s some nuances there because there are dentists, such as myself, who do go into the hospital setting. And so, it was one of those issues where we don’t want to – you’re kind of having to work both sides here. Because at the same time, you’re basically telling a group of people or professionals that you are not going to be allowed to do this. And they’re like, “Well, this is what the patient needs.” Because your fees or your –

Patrick O’Rourke: [00:47:55] Your plan doesn’t cover that, right?

Ryan Vaughn: [00:47:57] Correct. And so, you’re like, “Well, I can’t give the patient what they want because you’re telling me I can’t use my fees to do that with.” And so, there’s a fine line that you have to straddle. And, to be honest with you, I think the bill that has come out, I thought the legislature at the state capitol did a very good job with it, to be perfectly honest.

Patrick O’Rourke: [00:48:18] I thought it was fair. I mean, it’s fairly clear. And it is an issue, particularly in hospital settings.

Ryan Vaughn: [00:48:26] Absolutely.

Patrick O’Rourke: [00:48:29] On one hand, I’m like, you know, what does that have to do with the private practice? General dentists? You’re not talking about surprise bills, right? You’re out of network. At the same time, the docs that are fee for service only, there’s still plenty of them in the state and, really, all over the country, they don’t participate with any networks. But they already tell people they’re like, “I’m not in your network.”

Ryan Vaughn: [00:48:57] Yes. They tell them upfront. Correct.

Patrick O’Rourke: [00:49:00] And in the Great State of Georgia, in and out of network benefits have to be the same for all fully insured business, which not a lot of people know – which they really can thank the GDA. I hated that rule while I was still on the insurance company side, by the way. I embrace it now. So, good job GDA. And there’s only two states in the union that have it actually, so it’s Georgia and Texas. And so, I feel like it’s not that really big of a deal because I feel like the docs are doing it anyway. That was my take on it. And there’s also federal legislation, so when it mattered, what Georgia State did anyway, because very similar stuff was in the Federal COVID bill.

Ryan Vaughn: [00:49:44] Correct. And with that said, I’m very interested to see what becomes the repeal of the McCarran-Ferguson Act. I would like to see a lot more competition in the insurance industry. But I know insurance always tries to find a loophole.

Patrick O’Rourke: [00:50:01] Yeah. I mean, I’ll just give you my take on that for dental anyway. So, for dental insurance, you know, I feel like that there was a sort of school of thought that everybody in the insurance industry are all friends and we’re all getting together and, you know, smoking cigars, playing poker, and plotting out the world domination. That’s not the case. So, your competitor is your competitor. It wasn’t as open as I think that it was perceived. So, the impact of that, I don’t see it having anything profound. Now, I think it doesn’t hurt the provider community at all. Don’t get me wrong, it definitely does not. And it could have been used. It could definitely could have been used. That exception could have been used as a shield and maybe some things happened that I didn’t know about.

Patrick O’Rourke: [00:51:11] But I can tell you that, you know, intellectual capital is guarded very, very closely within each organization. And it’s not shared with those that wish to eat your lunch, which is your competitors, unless there is a very compelling reason to do so. Well, now, they can’t. So, dental insurance isn’t as complicated though. You know what I mean?

Ryan Vaughn: [00:51:35] Yeah. But there’s another side to that, at least in my opinion, that dental insurance has not changed much in the past 50 years. It’s a very archaic system. I mean, medicine, the insurance industry has evolved tremendously in that 50 years. Whereas, dental stayed pretty much the same. I mean, you have a thousand dollars maximum for most insurance policies. But, you know, as time goes by, 50 years of three percent inflation, that’s not going to get you as much as it used to.

Patrick O’Rourke: [00:52:07] Right. You’re absolutely right.

Ryan Vaughn: [00:52:08] I would like to see changes but, I mean, there’s only so much I can do.

Patrick O’Rourke: [00:52:16] There’s a lot of chatter going on – and it’s more than chatter. That’s not the appropriate word. There’s a lot of effort initiatives and mental and financial energy being put into medical dental integration. And so, I just did an interview with Marc Cooper – Dr. Marc Cooper out of Portland, and he’s doing a conference. In fact, that show will post right before your show. And so, I’m listening to it kind of see what happens. You know, have there been any medical and dental integration efforts that you’ve seen that have directly impacted your care and/or financing of the health care at your practice?

Ryan Vaughn: [00:53:01] Not yet. I know that the ADA is making a strong push to try and get dental more integrated in the medical side because, like I previously just mentioned in a fly by, there’s a lot that goes on with oral health that it continues on to the systemic health as well. And so, the ADA is really trying to push to have a lot stronger collaboration with our medical colleagues. And, you know, I got a lot of that. And I didn’t really think that was as much of an issue when I was in residency, because, I mean, I worked with the physicians down at Joe all the time. And I was like, “Okay. We’ll do this.” A kid got just diagnosed with cancer. We got to make sure that their oral health is completely fine before they undergo a bone marrow transplant or anything. Because if they don’t, anything that’s in their mouth – if they have a small cavity – it’s going to become an abscess in the cellulitis like that because they have no immune system.

Ryan Vaughn: [00:54:04] I mean, that’s just one example of the collaborations we did all the time down there. And I think that’s very, very important especially now with adults, especially older populations and all the systemic health problems that they have, that a lot of them don’t see dental care. And a lot of times, a lot of things can be caught if they go see their dentist along with their physician as well, and they talk and they collaborate together.

Patrick O’Rourke: [00:54:35] Sure. Absolutely. Coordination of care. Continuity of care. Well, I’d like to thank you. We’re going to have to wrap up today. One last question, though, who is your favorite Teenage Mutant Ninja Turtle?

Ryan Vaughn: [00:54:50] Oh, man. Really? That’s an easy one. That’s Donatello.

Patrick O’Rourke: [00:54:54] Donatello.

Ryan Vaughn: [00:54:54] I grew up a Donatello fan. I mean, absolutely. Because you had Leo and he led the group. And Rafael, he was a livewire. And Mikee, he didn’t really care about anything.

Patrick O’Rourke: [00:55:07] Kind of an airhead.

Ryan Vaughn: [00:55:07] Yeah. But Donny would always figure things out. That’s me, I’m just trying to figure things out. I thought you were going to ask me about the Super Bowl being as you’re a Bucs fan.

Patrick O’Rourke: [00:55:17] Unless you’re going to root for Tampa or say nice things about Tampa, then we’re not going to talk about that.

Ryan Vaughn: [00:55:21] Okay. All right. I’ll keep my mouth shut then.

Patrick O’Rourke: [00:55:27] Tampa Bay Buccaneers. I’ve been rooting for that team for as long as I’ve been alive.

Ryan Vaughn: [00:55:33] I don’t blame you. I’m the same way.

Patrick O’Rourke: [00:55:35] So, it’s tough because I live here in Atlanta. So, it’s not like people are walking like we’re in the same division. They’re not happy for me or anything, you know.

Ryan Vaughn: [00:55:43] But I think they appreciate that versus you being a Saints fan, because Atlanta really does not like New Orleans.

Patrick O’Rourke: [00:55:48] I learned that the hard way by going to New Orleans. And I went to a NOLA Atlanta game with somebody [inaudible] so we had a box and I wore Falcons – I bought a Falcons shirt and let’s just say that that environment was not hospitable. I had no idea. That was pretty much a brawl all day.

Patrick O’Rourke: [00:56:13] Well, with that, let me thank you, Dr. Ryan Vaughn. When people are trying to find you, if they want to find you, they want to talk about the northern district of the GDA and/or they have kids and they want quality of care in the Gainesville or Flowery Branch area of Georgia, how do they find Dr. Ryan Vaughn?

Ryan Vaughn: [00:56:29] You can just go on and search Kid’s Dentistry of North Georgia. The telephone number is 678-450-7011. And we have a website, it’s kidsdentistrynoga.com. And if you have any questions for me about the GDA or anything like that, you can reach me at the office or you can call the GDA direct and their number is listed on the website. I think it’s 404-636-7553, if I remember it correctly.

Patrick O’Rourke: [00:56:59] That’s pretty good memory.

Ryan Vaughn: [00:57:01] Well, I call them or they call me quite often because we talk a lot. But, yeah, if you’re ever in need of anything, I’ll be here.

Patrick O’Rourke: [00:57:11] All right. Very good. Well, I appreciate you coming by to chat with me and I’m sure our listeners appreciate you. I also appreciate John Ray, our producer for doing a terrific job, as always.

Ryan Vaughn: [00:57:20] Absolutely. Trying to keep my phone silent for whatever reason. I don’t know why it’s going off like that.

Patrick O’Rourke: [00:57:27] And I’d also like to thank our sponsor, Practice Quotient. Practice Quotient, PPO negotiations and analysis. They’re a national firm. They got clients from Anchorage, L.A. to Miami, to New York. We are headquartered right here in Atlanta, Georgia. Representing top tier providers, we’re a bridge between the provider and the payer community.

Ryan Vaughn: [00:57:48] They do an awesome job.

Patrick O’Rourke: [00:57:49] Thank you, Ryan. I appreciate that. I did not pay him either. All right. So, with that, until next time.

Ryan Vaughn: [00:57:55] All right. Thanks.

 

 

About Dental Business Radio

“Dental Business Radio” covers the business side of dentistry. Host Patrick O’Rourke and his guests cover industry trends, insights, success stories, and more in this wide-ranging show. The show’s guests will include successful doctors across the spectrum of dental practice providers, as well as trusted advisors and noted industry participants. “Dental Business Radio” is underwritten and presented by Practice Quotient and produced by John Ray and the North Fulton studio of Business RadioX®.

Practice Quotient

“Dental Business Radio” is sponsored by Practice Quotient. Practice Quotient, Inc. serves as a bridge between the payor and provider communities. Their clients include general dentist and dental specialty practices across the nation of all sizes, from completely fee-for-service-only to active network participation with every dental plan possible. They work with independent practices, emerging multi-practice entities, and various large ownership entities in the dental space. Their PPO negotiations and analysis projects evaluate the merits of the various in-network participation contract options specific to your Practice’s patient acquisition strategy. There is no one-size-fits-all solution.

Connect with Practice Quotient:

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Tagged With: Children's Dental Health Month, Dr. Ryan Vaughn, Georgia Dental Association, Kid's Dentistry of North Georgia, pediatric dentist, pediatric dentistry, PPO Negotiations & Analysis, Practice Quotient

The Six B’s of LinkedIn Success, with Gregg Burkhalter, Personal Branding Coach and “The LinkedIn Guy

February 4, 2021 by John Ray

Gregg-Burkhalter
North Fulton Studio
The Six B's of LinkedIn Success, with Gregg Burkhalter, Personal Branding Coach and "The LinkedIn Guy
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Gregg-Burkhalter

The Six B’s of LinkedIn Success, with Gregg Burkhalter, Personal Branding Coach and “The LinkedIn Guy

John Ray: [00:00:01] And hello again, everyone. This is John Ray with Business RadioX. And I’m here with Greg Burkhalter. And Greg is a personal branding coach and he’s the LinkedIn Guy as well. Greg, what advice would you give those of us who use LinkedIn as we look ahead to 2021?

Greg Burkhalter: [00:00:22] Well, first of all, John, if you’re not on LinkedIn, you’re becoming rapidly, digitally dormant and unimportant in the business world. You have to be on LinkedIn going forward. Recent situation with the C19 virus has forced more and more people online. Whether they’re looking for jobs or they are looking to find a customer, LinkedIn is the place you need to be. So, if you haven’t looked at your LinkedIn profile recently, it might be time to kind of check and see, is your profile really reflecting your brand?

Greg Burkhalter: [00:00:53] A good step one would be to look at it and check one area first of all. Go to the add profile section on your LinkedIn profile, make sure you have all the sections on your profile, because I can tell you, if you set up your profile two or three years ago and haven’t touched it, you’re missing tons of content on your LinkedIn profile. Check that. Take a quick look at your photo. Does it look like the person that they’re going to meet should they encounter you in person? Also, check your contact information. Does it have your website on there? Does it have your phone number? That is step number one of doing that.

Greg Burkhalter: [00:01:26] Next thing to do is you’ve got to be using LinkedIn. I’m going to give you some bes here that will put you on the path of being effective. First of all, be present, be active, be helpful, be real, be consistent. And here’s the “be” that most people cannot understand or get to, and that is be patient. There is no shortcut. There is no magic. No magic pill to LinkedIn success. You have to put skin in the game and be consistent, become part of the community on LinkedIn that brings a value to others, and you will succeed in your efforts.

Gregg Burkhalter, “The LinkedIn Guy” and Personal Branding Authority

Gregg Burkhalter is a recognized authority on Personal Branding and LinkedIn. He has helped countless professionals in the U.S. and abroad define and grow their Personal Brand using LinkedIn.

Gregg spent the first part of his professional career behind the microphone at radio stations in Savannah, Jacksonville, Charleston, and Atlanta. Following his radio years, Gregg worked in national music marketing and distribution.

Today, Gregg is known by many as “The LinkedIn Guy”. He provides Personal Branding Coaching and LinkedIn Training via one-on-one and group training sessions, corporate presentations and webinars.

To learn more, visit Gregg’s website. You can also connect with Gregg on LinkedIn, or call him at 770-313-2385.


The “One Minute Interview” series is produced by John Ray and in the North Fulton studio of Business RadioX® in Alpharetta. You can find the full archive of shows by following this link.

Renasant Bank has humble roots, starting in 1904 as a $100,000 bank in a Lee County, Mississippi, bakery. Since then, Renasant has grown to become one of the Southeast’s strongest financial institutions with over $13 billion in assets and more than 190 banking, lending, wealth management and financial services offices in Mississippi, Alabama, Tennessee, Georgia and Florida. All of Renasant’s success stems from each of their banker’s commitment to investing in their communities as a way of better understanding the people they serve. At Renasant Bank, they understand you because they work and live alongside you every day.

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