203 - I Asked a Mega-Millionaire 31 Burning Questions | Brian Scudamore, 1-800-GOT-JUNK

Summary

Making It with Jon Davids: Episode 203 - “I Asked a Mega-Millionaire 31 Burning Questions” | Brian Scudamore, 1-800-GOTJUNK

In Episode 203 of Making It with Jon Davids, entrepreneur and investor Jon Davids sits down with Brian Scudamore, the founder and CEO of 1-800-GOTJUNK. Brian shares his inspiring journey from a modest $700 startup to leading a company that generates $700 million in annual sales. This detailed summary captures the essence of their conversation, highlighting key topics, insightful discussions, and valuable lessons for aspiring entrepreneurs.

1. The Humble Beginnings

Starting with Minimal Investment

Brian Scudamore's entrepreneurial journey began with a mere $700 investment. At [00:56], he explains, "I bought a beat up old pickup truck and then spent a couple hundred dollars on flyers and business cards." This initial investment was funded by $1,000 he had saved from his childhood Christmas money, demonstrating the power of resourcefulness and frugality.

Early Challenges and Decisions

Brian recounts the struggles of his first year, where he made a profit of $1,700 ([01:12]). While modest, this profit was crucial in funding his college education. His decision to leave college and focus entirely on his business paid off, as he learned more from running the company than from his academic studies ([01:22]).

2. Building the Team

Key Hires That Transformed the Business

A pivotal moment in Brian’s journey was hiring Cameron Herold ([01:33]). Initially resistant to working for him, Cameron's consulting evolved into a full-time role that spanned seven years, during which he helped 1-800-GOTJUNK grow from $2 million to $106 million in revenue. Brian reflects on this partnership, emphasizing the importance of the right team members in scaling a business.

Leadership and Difficult Decisions

Brian shares a candid moment about firing his entire staff ([04:09]). Realizing he wasn’t enjoying his business and leading effectively, he made the tough decision to let go of 11 employees, starting with an apology: "I'm sorry was on me" ([04:14]). This bold move, though painful, was necessary for the company's rejuvenation.

3. Overcoming Obstacles

Facing Skepticism and Doubt

Throughout his journey, Brian encountered significant skepticism. When attempting to franchise his business, he approached 12 franchising experts, all of whom doubted its feasibility ([02:11]). Despite this, he persevered, proving the naysayers wrong through determination and innovation.

Financial Struggles

Brian openly discusses the financial hardships he faced, including a period when he had to save 10 paychecks with a rubber band before cashing them ([02:24]). These moments of financial strain highlight the resilience required to sustain and grow a business.

4. Innovative Growth Strategies

Unique Marketing Tactics

One of Brian’s standout strategies was using their trucks as mobile billboards by parking them in high-profile, visible locations ([08:31]). He describes it as "a driving billboard" ([08:54]), a cost-effective method that significantly boosted brand visibility without additional expenditure.

Creating Own Luck Through Persistence

Brian dismisses the notion of luck, attributing his success to relentless pursuit of goals ([09:09]). From securing appearances on major TV shows to being featured in prominent publications, he emphasizes that these achievements were the result of proactive efforts rather than chance.

5. Personal Insights and Growth

Valuable Lessons from Mistakes

When asked about mistakes, Brian points to people-related errors as the most costly ([09:27]). He discusses the importance of aligning team members with the company's needs and learning from past hiring decisions to foster a better organizational culture.

Evolving Beliefs and Leadership Styles

A significant shift in Brian’s perspective occurred over the past decade. He no longer felt the need to control every aspect of daily operations ([09:44]). Instead, he learned to delegate and trust his team, recognizing that specialization is key to scaling a business effectively.

6. Philosophy and Motivation

Redefining Wealth and Success

Brian defines feeling "rich" not by monetary measures but by happiness, fulfillment, and the impact he makes in the world ([10:54]). This holistic view of success underscores his commitment to leading a meaningful and purpose-driven business.

Encouraging Aspiring Entrepreneurs

Addressing those who cite a lack of funds as a barrier, Brian advises leveraging limited resources creatively ([10:17]). He shares his belief that starting with nothing fosters innovative thinking and necessitates smart decision-making, drawing parallels to iconic startups like Apple.

7. Key Takeaways and Notable Quotes

• On Starting Small:
  "It's all about people. Find the right people and treat them right." ([04:38])

• On Decision-Making:
  "Every decision, every mistake has led us somewhere better." ([04:42])

• On Perseverance:
  "We create our own luck by constantly pursuing every goal we've ever had." ([09:09])

• On Leadership:
  "I regret how I did it. I should have sat down with Cameron as a friend and really explored it as a mutual decision versus unilaterally making the decision on my own." ([04:35])

8. Conclusion

Brian Scudamore’s story is a testament to the power of determination, innovative thinking, and resilient leadership. From a $700 startup to a $700 million enterprise, Brian's journey with 1-800-GOTJUNK offers invaluable lessons for entrepreneurs navigating the challenges of building and scaling a business. His candid reflections on mistakes, team dynamics, and personal growth provide a roadmap for achieving both business success and personal fulfillment.

Listeners are encouraged to take inspiration from Brian’s experiences, embracing creativity, perseverance, and a people-first approach to drive their own ventures forward.

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Notable Episode Highlights:

• $700 Startup Investment: [00:56]
• Hiring Cameron Herold and Scaling Revenue: [01:33]
• Firing the Entire Staff: [04:09]
• Innovative Marketing with Mobile Billboards: [08:31]
• Defining Personal Wealth: [10:54]

For a deeper dive into Brian Scudamore’s entrepreneurial insights and the growth of 1-800-GOTJUNK, listen to the full episode on your preferred podcast platform.

Transcript

[John Davids]

What were your sales last year?

[Brian Scudamore]

$700 million.

[John Davids]

And what do you do?

[Brian Scudamore]

We clean up junk.

[John Davids]

How did you get into that?

[Brian Scudamore]

I saw a beat up old pickup truck in a McDonald's drive through in Vancouver. I was one course short of graduating from high school and needed to fund a college education. So I saw this truck and I'm like, oh my gosh, it was hauling junk. I'm going to do the same thing and the rest is history.

[John Davids]

Hey, it's John Davids and you're listening to my conversation with Brian Scudamore, founder and CEO of 1-800-GOT Junk. This is me asking Brian 31 crazy questions about entrepreneurship, money, and all the business bloopers that you don't normally get to see. If you like this episode, let me know with a rating or review wherever you're listening. Here we go. You're listening to Making it with John Davids. What did it cost you to start?

[Brian Scudamore]

Cost me $700 to start. I bought a beat up old pickup truck and then spent a couple hundred dollars on flyers and business cards.

[John Davids]

And where did you get that money?

[Brian Scudamore]

I had $1,000 saved. It was all my Christmas money for years from my childhood saved away and that was it.

[John Davids]

What was your first year like?

[Brian Scudamore]

My first year I made $1,700 profit, which was not a ton, but it did fund my way as I had planned through college.

[John Davids]

And how many years was it before it was your full time job?

[Brian Scudamore]

It became my full time job after I quit college. I was learning more by running a business, more than studying in school and made the tough decision to leave. And then it was all in full time.

[John Davids]

Who was the first person you hired that changed everything?

[Brian Scudamore]

Probably Cameron Herald. He was in a forum of mine in the Entrepreneur organization and he said he'd never work for me and ironically, I needed some help. He came in, did some consulting and he stayed for seven years. He helped us get from 2 million in revenue to 106 million in revenue.

[John Davids]

How many hours a week do you actually work these days?

[Brian Scudamore]

These days I like to say I work hard and I play hard. I believe the best way to recharge so that I can be my best for the business is to take time off. So I take almost every single Friday off.

[John Davids]

When you started the business, did anyone tell you it was a dumb idea?

[Brian Scudamore]

I had so many people say this would never work. I went out to try and franchise my business and I went to about 12 different experts who understood franchising and 100% of them said, brian, this can't be done.

[John Davids]

Have you ever struggled to pay the bills?

[Brian Scudamore]

Of course. I had a time when I had 10 paychecks to myself with a rubber band around them, saving them till the time that I had enough money to actually cash them.

[John Davids]

What's the most expensive piece of junk you guys have ever found?

[Brian Scudamore]

Good question. Cash. $400,000 in cash hidden in some floorboards in a house in Vancouver. One of our guys discovered this and saw a little what looked like cash in the floor and and had the homeowner come over. They ended up ripping up the entire floor. So it was $400,000, which, hidden away back in the day, they were 1932 circa bills. And the press, when they wrote a story about it, estimated it was $5.3 million in today's dollars.

[John Davids]

What's the worst customer you've ever had to deal with?

[Brian Scudamore]

I had a customer once that decided that they didn't want to pay their bill. We had just loaded the truck and they decided that they thought it was too expensive, even though we were clear and upfront with the price. And so we didn't know what to do. And we just said, well, do you want your junk back? They said, absolutely. And so we emptied the truck with a push of a button.

[John Davids]

He left it all right there on.

[Brian Scudamore]

The driveway, gave it right back. And the customer was happy. We were happy. And I guess they had to find someone else.

[John Davids]

Have you ever regretted firing someone?

[Brian Scudamore]

I fired Cameron Herold after he got us to 106 million. I didn't regret letting him go. It was the best thing for both of us. We needed a leader who had more rigor and discipline in the way they worked. But I regret how I did it. I should have sat down with Cameron as a friend and really explored it as a mutual decision versus unilaterally making the decision on my own.

[John Davids]

At one point, you fired your whole staff. What triggered you to do that?

[Brian Scudamore]

I was not having fun in my business any longer. I knew I wasn't doing a good job leading. I was hiding in my office. We don't have private offices today, but we did back then. And I wasn't hanging out with my team. And I realized I had the wrong people for me. Sat down and one day, 11 people had to let them all go. And I started with two words. I'm sorry was on me.

[John Davids]

What's the dumbest decision you've made since you started this business?

[Brian Scudamore]

Haven't made any dumb decisions. I mean, it's not that I'm perfect, but what I see is every bad decision I've made that might have seemed like a good one at the time taught us something I needed to learn. So even firing my entire team, my entire company, was hard, but it was a smart decision. Looking forward because it taught me what my hat says. It's all about people find the right people and treat them right. Every decision, every mistake has led us somewhere better.

[John Davids]

What's been the most difficult part of.

[Brian Scudamore]

Building the company, most challenging part is they say it's lonely at the top. And when things are really, really hard in a business, when you've got almost no money left in the bank, when you can't pay your people. And sometimes you've got to make tough decisions as an entrepreneur and sometimes not. Anyone thinks it's a good idea, but you've got to follow your heart and trust your experience.

[John Davids]

Quick break so I can tell you about Influicity. That's the little marketing agency I started in my apartment about 10 years ago. Well, fast forward it is not so little anymore. Influencity works with some of the biggest brands in the world, building customer communities that drive revenue. We do this through influencers, podcasts, paid media, social media content, AI and so much more. You can learn [e-mail] and hey, while you're there, check out our case studies. We have a lot of them. That's influicity.com what's the best purchase you've made? Under $500 to help your business?

[Brian Scudamore]

Buying the book called the E Myth Revisited by Michael Gerber taught me how to systematize my business. For 1999. I bought a book that I read twice in one sitting that absolutely changed the future course of my business.

[John Davids]

I actually just reread that because we've been having some ops challenges in our business and read that book and it gave me a whole new idea of what to do going forward. So that's a good answer.

[Brian Scudamore]

It's gold.

[John Davids]

Have you ever wanted to quit?

[Brian Scudamore]

I almost quit many times. Three years into the business, I tried to sell my business for $5,000 and I had two young college students. I was recently graduated or recently left college. I had two college students who were going to buy my business and I was so disappointed when the deal fell through at the last minute. And I wonder what they're thinking today.

[John Davids]

So Your business does 700 million in sales today. Have you gotten any offers that have tempted you to sell it?

[Brian Scudamore]

I've never been tempted to sell, but I got a massive offer in the early 2000s. We were a Small company. And I got taken on a fancy fishing trip in northern British Columbia. And we're out on the water 25 miles from shore, and I'm in a boat with two waste management garbage executives. And it was one of those moments of, I'm going to make you an offer you can't refuse. I was far from shore. I was alone, and I said no. And I said, they offered me $100 million. And I said, guys, you could offer me a billion, and my answer would still be no, because I love what I'm doing. No one could put a price tag on it. I'm not done. In fact, I'm just getting started. It's the business and the meaning that we're making that has the real impact.

[John Davids]

Have lots of others tried to copy you?

[Brian Scudamore]

We have so many copycats, and it's a great thing. To me, it's like FedEx. When FedEx invented the overnight courier business. People didn't understand the need or what the business was about. So, yeah, we have lots of copycats, and it keeps us on our toes. And we're constantly trying to innovate to outmarket, outgrow. It's a lot of fun.

[John Davids]

What's something you did to grow this business that was so effective that it felt like cheating?

[Brian Scudamore]

We call it parking. It's parking our trucks in high profile, visible intersections and locations around the cities. We operate in my first truck at 16th in Arbutus in Vancouver. It hasn't been parked there for 30 years, and customers will still say, I see Your truck is 16th in Arbutus.

[John Davids]

Wow. It's a driving billboard.

[Brian Scudamore]

100%. It's free. We used to actually get our franchise partners before they even had enough business for some of their trucks to go buy extra trucks to act as mobile billboards.

[John Davids]

What's the luckiest thing that's ever happened to you in building this business?

[Brian Scudamore]

There's no luck. We create our own luck. Someone goes, oh, you guys were so lucky to get on the Oprah Winfrey show or the Ellen DeGeneres show or the Wall Street Journal, the New York Times. We made those things happen. We made our own luck by constantly pursuing every goal we've ever had.

[John Davids]

What mistake has cost you the most money?

[Brian Scudamore]

It's always people mistakes. And I have to say, and we've done this over and over. Unfortunately, we learn, but we've had some people that we love and adore who they are as people, but they were the wrong fit for the company at the time. And we've just kept them too long.

[John Davids]

What's a belief you had 10 years ago that you think is crazy today?

[Brian Scudamore]

10 years ago I thought I'd be involved still in every single aspect of the day to day operations that nobody could specialize and take off some of the big things off my plate.

[John Davids]

If you started from scratch today, do you think you could rebuild 1-800-got- junk?

[Brian Scudamore]

Absolutely.

[John Davids]

Were you born rich?

[Brian Scudamore]

Not born rich. Far from it.

[John Davids]

So what do you say to all the people watching right now who use the fact that they don't have money as a crutch for why they can't do anything?

[Brian Scudamore]

It's interesting, but I think anyone that comes from money, and if you start with money, that's a crutch because you don't spend it wisely. I think you really need to think innovatively and differently and reinvent the rules by having nothing. I started with $700. Apple started with $1,000 out of a garage. Some of the greatest success stories truly did start from nothing because it forced them to make really creative, smart decisions.

[John Davids]

So you took a business from $700 to now $700 million. At what point did you personally feel rich?

[Brian Scudamore]

I think I felt rich every step of the way. There's been some dark days and some hard moments. And to me, richness is the happiness, the fulfillment, the meaning you make in the world. And I feel like the richest guy on the planet.

[John Davids]

Do you ever feel insecure about money?

[Brian Scudamore]

I never feel insecure about money. I feel insecure about my contribution to the growth as we continue.

[John Davids]

If you sold your company tonight, what's the first thing you would do tomorrow morning?

[Brian Scudamore]

Go back to work.

[John Davids]

Thanks for listening. Hope you enjoyed this episode. If you did leave a rating or review on Apple or Spotify, wherever you listen to podcasts, it helps other people find the show and it lets us know that we're doing something right. We'll talk to you guys next time.