Podcast Summary: Problems to Profit
Episode: Tech That Actually Moves the Needle: Zach Abrams on CRMs, Hiring the Right Nerds and Turning Data into Dollars
Release Date: May 8, 2025
Host: Preston Brown
Guest: Zach Abrams, Chief Technology Officer
1. Introduction
In this episode of the Problems to Profit podcast, host Preston Brown welcomes Zach Abrams, the Chief Technology Officer (CTO) for his businesses. Preston highlights Zach's significant contributions, including advising clients on business adjustments and helping generate substantial revenue growth across various ventures.
2. Guest Background
Preston Brown begins by providing an overview of Zach Abrams' background, commending his unconventional yet effective career trajectory in technology.
- Preston [00:03]: Praises Zach as a genius instrumental in navigating tech layoffs and recession hiring opportunities.
Zach Abrams shares his journey, emphasizing his early interest in technology, influenced by his father, and his progression from a developer to a CTO at a startup focused on data analytics.
- Zach Abrams [02:53]: “I've always been interested in technology, even since I was a little kid... I studied computer science and then went straight into that position as a developer and then worked my way up from there.”
3. Technology in Business
The conversation delves into the role of technology in businesses that are not inherently tech-driven. Preston recounts his initial approach to adopting multiple software solutions and how Zach transformed this strategy by streamlining and optimizing tech usage.
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Preston [14:03]: Describes how Zach conducted an audit of existing software, leading to significant cost savings by eliminating redundancies.
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Zach Abrams [15:09]: “The first thing was an audit of all of the softwares and systems that were in place.”
Zach explains the importance of using data-driven decisions and avoiding "shiny object syndrome," where businesses are tempted to adopt new technologies without clear objectives.
4. Mistakes in Tech Adoption
Zach outlines common pitfalls businesses face when integrating technology, emphasizing the necessity of understanding business processes before implementing tech solutions.
- Zach Abrams [15:40]: “The biggest mistake that is made is an inadequate evaluation of where you're actually at.”
He highlights the tendency of businesses to purchase multiple software solutions without a coherent strategy, leading to inefficiencies and increased costs.
5. Hiring the Right Tech Team
Preston shifts the discussion to hiring technologists, sharing his experiences and seeking advice from Zach on identifying suitable candidates.
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Preston [30:02]: Clarifies that KPIs stand for Key Performance Indicators.
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Zach Abrams [38:27]: Provides actionable criteria for hiring tech team members, emphasizing a history of completion, passion, and cultural fit.
Zach also warns against common red flags, such as candidates who over-promise or lack humility.
- Zach Abrams [41:20]: “Humility is a great one.”
6. When to Hire Tech Staff
The dialogue explores the optimal timing for integrating technology team members into a business, stressing the importance of resolving foundational business issues first.
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Zach Abrams [50:02]: Advises against hiring tech staff prematurely when business processes are not well-defined.
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Preston [62:07]: Suggests that businesses should focus on optimization before innovation, aligning with Zach's insights on technology adoption.
7. The Impact of AI on the Future
Preston and Zach discuss the transformative potential of Artificial Intelligence (AI) across industries, balancing optimism with caution about job displacement and ethical considerations.
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Zach Abrams [66:08]: Reflects on AI's long history and its evolving role in augmenting human capabilities: “AI has been around for decades... it's taken on different variations.”
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Preston [68:12]: Uses the analogy of the frog and the scorpion to illustrate the inherent nature of AI and its potential impact on humanity.
Zach predicts that AI will continue to augment various industries, creating new job opportunities while rendering certain roles obsolete. He emphasizes the necessity for continuous learning and adaptation to stay relevant.
- Zach Abrams [75:29]: “Use AI tools like ChatGPT to augment your workflows... you need to understand your business to know what problems to solve.”
8. Practical Applications and Success Stories
Preston shares a success story from his home building company, illustrating how adopting a Customer Relationship Management (CRM) system drastically improved sales performance and team accountability.
- Preston [53:26]: Details how enforcing CRM usage led to a significant increase in call answer rates from 57% to 99% within days.
Zach underscores the importance of setting clear KPIs and maintaining open communication to ensure successful tech adoption.
- Zach Abrams [54:07]: “Having the ability and the visibility into the company to measure things and predict things in the future.”
9. Conclusion and Final Insights
In the concluding segment, Preston Brown and Zach Abrams summarize key takeaways for entrepreneurs aiming to leverage technology effectively:
- Assess and Eliminate: Begin by auditing existing technologies and eliminating unnecessary tools.
- Implement CRM Systems: Adopt a suitable CRM to enhance customer and sales team management.
- Hire Smartly: Focus on hiring tech team members with a proven track record, passion, and cultural fit.
- Adopt Incrementally: Integrate technology in stages, ensuring team readiness and fostering buy-in.
- Embrace AI Cautiously: Utilize AI to augment workflows while preparing for its long-term impacts on the job market.
Preston emphasizes the importance of staying ahead in technology adoption to maintain business relevance and competitiveness.
- Preston [75:43]: “Knowing where your industry is going and what you need to look at... be the tech-driven business.”
Zach concurs, advocating for the intelligent and strategic use of technology to drive business success.
- Zach Abrams [75:29]: “Use AI tools like ChatGPT to augment your workflows...”
Notable Quotes
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Preston [04:39]: “Technology is something that is a process or system that makes the company much more efficient and better.”
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Zach Abrams [15:40]: “The biggest mistake that is made is an inadequate evaluation of where you're actually at.”
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Zach Abrams [38:27]: “Green lights for hiring tech: history of completion, passion for the project, culture and humility.”
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Preston [56:21]: “We knew exactly what the clients want because of the CRM.”
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Zach Abrams [66:08]: “AI has been around for decades... now its speed and application are transforming industries.”
Key Takeaways
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Strategic Tech Adoption: Businesses should carefully evaluate their processes and adopt technology that aligns with their specific needs, avoiding unnecessary complexities.
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Effective Team Building: Hiring the right technologists involves assessing their track record, passion, and cultural compatibility to ensure they contribute positively to the business.
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Embracing AI: AI offers substantial benefits in augmenting business operations but requires thoughtful integration and adaptation to fully realize its potential without adverse effects on employment structures.
By implementing these strategies, entrepreneurs can transform their business challenges into profitable opportunities, leveraging technology effectively to stay competitive in an evolving economic landscape.
