Ask the CEO: Would You Pay an Executive Coach?
Where do you spend the money when you're struggling?
Daina Trout, CEO and co-founder of Health-Ade Kombucha, AKA the fastest growing kombucha company in the United States, spends her free (ahem, what?) time mentoring younger entrepreneurs. She says it’s an important part of the process that she didn’t have when starting her company in 2012.
Trout explains that often, after speaking with younger entrepreneurs, she'll “discover that they’re trying to have their cake and eat it too. The whole thing about being a successful entrepreneur is that there is some major risk you have to take. That’s the price of the game. Whether it’s a financial or personal risk, whatever it is, you’re taking a risk. I don’t think you’ll meet any successful entrepreneur who didn’t have the moment where they thought, ‘Oh shit, everybody is telling me this is stupid, I’m the only one who thinks this way. I have to quit my job. I have no money.’ Everybody has those stories. So when I talk to the entrepreneurs who are trying to mitigate that risk by keeping their job and their apartments, I tell them, ‘We had to live out of our car, what do you think this is?’”
Not for the faint-hearted, that’s for sure. “When they talk to me like that, I say, ‘OK, you’re not ready to start a business. Give up your apartment for four years. You can’t live the life you have from a corporate, steady and sturdy job, and also start a business. That’s the whole point.”
"You can’t live the life you have from a corporate, steady and sturdy job, and also start a business."
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You can however, make an investment in people who can help you. Early on Trout made the decision to pay an executive coach to guide her. She says the first two years felt like, “physical labor against all odds." She also felt incredibly alone. "I never knew what the next step was. I didn’t reach out to anyone because I didn't know who to reach out to.”
But in 2014, when the company got its first investment, Trout shares that they took $15,000 to invest in leadership. There was an understanding she explains, that “If we expected to build this into a billion dollar brand and have hundreds of employees we were going to have to get way better at managing people. We were complete cowboys. So I said, ‘We can each have 5,000 dollars, do what you want with it, but it has to somehow build your leadership.’ I put together a coaching program and I’m with that coach still to this day and talk to her every two weeks. I don’t think I would be where I am today without her.”
Health-Ade now has 100 employees. “Meeting those 100 employees is a personal milestone. It’s one thing to lead five people, 25 and then 50, but 100 feels different and I’m being forced to tap into a stronger version of myself every year. This year especially.”
Of her coach, Trout says, “She hasn’t ‘taught’ me anything. That’s the thing. She's kind of like a really good therapist. She’s an independent sounding board. By the time you have investment you usually have a Board of Directors, but you can’t share every little thing with them. Also, I don't know if this is a gender thing, but most women I know have to get to their answer. That requires talking it out. And it’s usually right, but you have to get there. So having a coach is awesome. She knows everything that’s happening. She knows about my board members and who my employees are. We’ve talked every two weeks for three years. In that hour that I spend with her I’ll come out with a strong action plan to avoid problems I see coming.”
You don't have to pay to play. There are free mentors out there she shares (like at Create & Cultivate Seattle-- tix on sale NOW!). “My experience has been that when you ask somebody for help, they almost always say they have time.” Noting that there has only been one instance when someone said no. “You get on the phone, talk to people, they’ll answer all of your questions. They’ll share models, structure, the mistakes they’ve made, they’re happy to talk about it.”
She’s self-reflective on this point. “I probably didn’t have to go through those first two years alone. I would recommend finding people who you think did it right and would define as successful, email them. It’s not that hard to find anybody. Just write info@company and say, ‘I’m trying to get some time on the books with blank,’ it will almost always find the CEO, unless it’s Oprah. That might be hard.” However she laughs, “I haven’t tried.”
She explains that she made a pact with herself, that if she ever got past that stage, “the worst one to be in,” she admits, that she would go back and help fledgling entrepreneurs. “I really try to offer myself as a mentor to women in the first two years who need a little push. The people who really have it in them, they really only need a little push.”
Would you pay a coach? Chime in below.
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JOIN LOCAL SOCIAL CLUBS
It’s important to build your personal network, and joining social clubs is a great way. Not only will you be exposed to great events, you’ll also meet potential clients, employees, and friends. Check out clubs like the Union League for “Young Friends” memberships, as well as the Young Friends clubs at your local museums, orchestra, and ballet.
JOIN ASSOCIATIONS
If you’re a female entrepreneur, look into local chapters of the National Association of Women Business Owners. If you are starting a plumbing company, check out the local chapter of a national plumbers association. You’d be surprised how many fields have associations. You can receive great product discounts, invitations to great conferences, and a network of peers. Entrepreneurship can be lonely, so cultivating a group of peers is important. And of course, there is the newly formed Young Entrepreneur Council (I’m a board member!).
CREATE A SMALL GROUP OF 5 LIKE-MINDED ENTREPRENEURS
You may have already heard of these “mastermind” groups. But what do you call a group for those who haven’t yet mastered something? Call it whatever you like, but build one – quickly. Make sure that the four other people you engage don’t have competing businesses, and think of ways you can help each other. I know of groups that meet monthly and each member has to come to the meeting with at least one lead for another member of the group. Also, be mindful of time. You’re all very busy entrepreneurs, so don’t schedule more than 60 to 90 minutes once each month.
HOST A DINNER/HAPPY HOUR EACH MONTH & INVITE NEW PEOPLE
Consider this your start-up marketing expense! Host an event for a select group of people you want to get to know. Be strategic in your invitations, and make sure you personally meet and greet each person who’s on your list. Allow each person to bring a guest if it’s a happy hour. If you’re hosting a dinner, it’s OK to extend the invitation just to that person. Also, make sure that the people you’re inviting can benefit from getting to know your other guests, not just you! I love to cook and entertain people in my home, so I usually host dinner parties once a month. At this point in my career, my parties are more about hanging out with my friends and mutual support. But they’re always fun! So don’t make it all about business!
DON'T MAKE WITHDRAWALS WHERE YOU HAVEN'T MADE DEPOSITS
It’s really unfair to email people asking them to mentor you when you have nothing to offer them. I know it sounds harsh, but it’s true! I get hundreds of requests for mentorship each year, and the ones I normally respond to (outside of the tip sheet I give to everyone) are the people who say, “can I take you to coffee?” The reason is, that small gesture shows that the person believes in a mutually beneficial relationship.
"Marketing #Protip: Don't make withdrawals where you haven't made deposits."
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I have a good friend who built his entire business off of taking people for lunch – even when he barely had the money to do so. And he was able to convince some pretty important people to have lunch with him and eventually fund his business. If you ask him his secret to success, he’ll tell you it was simply asking people to lunch.
GIVE BACK
My most important contacts professionally have been a result of my philanthropic work. I tend to join the marketing committees of non-profits I work with, and meet other people and collaborate on ideas. They get to see my skills firsthand and evaluate me as a colleague. You shouldn’t join an organization you’re not passionate about just to meet people, because that will backfire. But if you have an opportunity to partner your skills with a deserving organization, generating new business will be a nice result.
PARTICIPATE IN CONFERENCES & PANELS
I really like to spend time working – whether it’s at home or in the office. And while I love to travel, I don’t like being away from the office during the week. But I will make the exception for the right speaking engagement. Panels have been a great way for me to make new friends and expand my professional network. I’ve met some of my best friends on panels, and it makes sense. The best organizers work to place people with synergies on panels together. If you can have an hour conversation together on a stage, you probably will want to spend more time getting to know those people.
Tina Wells, founder and CEO of BuzzMG, earned her B.A. in Communication Arts graduating with honors from Hood College in 2002. Currently a Wharton School of Business student for marketing management, Tina continues to create innovative marketing strategies for numerous clients within the beauty, entertainment, fashion, financial, and lifestyle sectors. Tina has worked with clients including: Dell, Girl Scouts of the USA, Maidenform, SonyBMG, PBS, P+G, Sesame Workshop, and American Eagle Outfitters.