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Episode 96: A Legacy in Motion; Dylan’s Journey from Agriculture to Transportation

In this episode of the Family Biz Show, host Michael Palumbos from Family Wealth and Legacy in Rochester, New York, chats with Dylan Rexing from Rexing Companies. As a fifth-generation member of a family business that transitioned from agriculture to transportation and logistics, Dylan shares insights into the evolution of their family enterprise and the personal journey that led him to his current role.

Dylan's story is a testament to the adaptability and resilience often found in family businesses. Despite not being pushed into the family enterprise, he felt a sense of duty to contribute, especially when he saw a need within the accounting and financial management side of the business. This narrative reflects the common path many family business members take, sometimes out of necessity, other times driven by a deep-seated sense of responsibility to the family legacy.

Michael and Dylan discuss the strategic shift from agriculture to transportation and logistics, emphasizing the importance of staying relevant and responsive to market demands. Dylan's account of the company's growth and diversification provides valuable lessons in leveraging core competencies and exploring new opportunities while maintaining the essence of the family business ethos.

The conversation also touches on the challenges and rewards of working in a family business environment. Dylan candidly shares the dynamics of working with family members, highlighting the complexity of blending family relationships with business operations. This segment offers listeners a realistic glimpse into the emotional and practical aspects of family business management.

Key takeaways include the significance of being adaptable, the need for clear communication and conflict resolution within the family and business, and the critical role of succession planning and fostering the next generation's commitment to the family enterprise.

Listeners, especially those involved in or interested in family businesses, will find inspiration and practical advice in Dylan's story. His experiences underscore the unique challenges and opportunities inherent in maintaining and evolving a family business across generations.

Watch the entire episode!

Episode 96 Transcript


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Michael Palumbos ChFC, CBEC: Welcome everybody to the family. Biz show. I'm Michael Columbus from family wealth and legacy in Rochester, New York, and we have a fantastic episode of the family biz show for you today we're joined by Dylan rexing from the Rex and companies. Welcome, Dylan.



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Dylan Rexing: Hello! How are you?



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Michael Palumbos ChFC, CBEC: Good! Good! Good. So. We have a tradition where we ask people. how did you enter the family business? There's a there's always a story, regardless of whether you think it's important or not. We just like to share cause. There's so many different ways



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Michael Palumbos ChFC, CBEC: of you know how people enter the family business. What was your story.



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Dylan Rexing: So I'm actually the fifth generation in our family business. And and we're a little different so we're mainly you know, we started as an agricultural family, and we farmed and



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Dylan Rexing: all that fun stuff! But now we're in transportation. And so that I'm actually generation one and that but generation 5 starting back to farming. And we still farm today.



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Dylan Rexing: So how did I get started in that? you know, I'd like to say



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Dylan Rexing: it's probably one of those things that somebody tapped on my shoulder and told me I had to do it, which actually wasn't the case, but sort of had that feeling in my head. I suppose I went to college



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Dylan Rexing: and got a degree in accounting, and so I just sort of saw the family business needed me.



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Dylan Rexing: My dad was very good at at you know, fixing things and working on equipment and growing crops. But book work was not something he was that he excelled in.



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Dylan Rexing: and so in college. I would come back, you know, after after hours, and at breaks and those kinds of things and help with the family business. And so you know, how did I get there? I just. I sort of saw it as something that I needed to do rather than



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Dylan Rexing: you know. Need wanted to, I suppose, and I've enjoyed it.



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Dylan Rexing: It's it's the backbone of our economy. It's family owned businesses all over the country, and so I'm I'm glad to support our family and and sort of our vision for the future.



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Michael Palumbos ChFC, CBEC: Love it, love it so what? Walk us through? Kind of the history? Your fifth generation in a family business. But now you've, you know, skirted off to do something different. But at my gut says that it's not, you know. I think you alluded to the fact that it's not totally removed from the farming. So walk us through, you know.



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Dylan Rexing: kind of that. The the big picture of what did GG. One, you know, generation one. What did they start with? And then, in recent generations. What was the migration to? You know Rex and companies so ultimately? I think it. You know I don't want to discount agriculture and the important part that it plays in our business and in the economy as a whole. But ultimately I think II sort of woke up one morning and and noticed that everything we did



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Dylan Rexing: in some way, shape or form. We didn't have any real control over



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Dylan Rexing: right? So like we would go out and we would plant crops, and Mother Nature would determine how you know how much rain we got, so that you know what our yields were, and and you know overlying markets and other parts of the country in the world would determine what that market price for those products were. And so I just sort of woke up and said, You know, I'd like to have a little bit of control over my destiny.



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Dylan Rexing: And so I think that's that's sort of what started my shift towards you know, doing something outside of farming



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Dylan Rexing: again. It's still. It's still the backbone of our, you know our business. I still, you'll see me in a tractor



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Dylan Rexing: you know, every spring for about 6 weeks we have 90 employees today. And my folks, I'm not. I'm not so sure what they think. Maybe I should write them an email or tell them. But you'll see me kind of disappear out of the office for 4 to 6 weeks, sometimes a little longer.



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Dylan Rexing: So it's still again. It's still really important of our business. But we've just sort of shifted away.



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Dylan Rexing: or maybe I've shifted away is the right way to say, but just had a a more of a laser focus on transportation and logistics. And it's kind of interesting.



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Dylan Rexing: So we we no longer have chickens. But we were as part of our ag business. We were in the egg business, so we had 120,000



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Dylan Rexing: laying hens, and we produced eggs and sold them all over the country.



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Dylan Rexing: And that led us into



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Dylan Rexing: our next business. Which was an cold storage. So we call that business Evans or cold storage today. And we store



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Dylan Rexing: almost exclusively food products, frozen frozen food products. You, you know, without naming customer names. I'm not sure if they want. They want that stuff to be known out there, but



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Dylan Rexing: probably the largest larger chicken producer in the in the country.



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Dylan Rexing: the largest or number one or number 2 Pasta Sauce company in the country, and so and just different kinds of food ingredients that we store and that business led us into trucking. So



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Dylan Rexing: if you have a warehouse and your customers want to bring you stuff to store. It sort of makes logical sense that you want to take it a step further.



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Dylan Rexing: And say, Hey, you know I'd love to store your products. But what what if I delivered them for you to and so then we got into 2 trucking companies, one where we have trucks and drivers.



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Dylan Rexing: And we, you know, deliver products all over the country, and that company is called Jr's expedited freight.



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Dylan Rexing: Interesting little tidbit for that. We just picked up this year. We're pulling Indiana University's football trailer.



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Dylan Rexing: So we were in Maryland this week this past weekend didn't exactly end the way we wanted it to. And then they play Michigan October fourteenth. I think so.



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Dylan Rexing: We'll be going to that, but that's just a cool little piece that we do



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Michael Palumbos ChFC, CBEC: so when we talk about the family. How many family members today are in farming.



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Michael Palumbos ChFC, CBEC: how many family members are in the transportation logistics business?



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Dylan Rexing: So the farming is really only 3 of us. Which happens to be the ownership structure as well. My myself, my father, my uncle. So we do all of the farming. Occasionally we'll have someone help us hall grain or something. But for the most part there's really just 3 of us that farm, and we farm. We own about 3,000 acres.



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Dylan Rexing: Pull over 3,000 acres, and we farm ourself. I don't know



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Dylan Rexing: 14 5,000 acres of that



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Dylan Rexing: some of the we we lease out so in in the farming portion there's 3 of us in the logistics and warehousing business.



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Dylan Rexing: The same 3 folks are involved. II sort of run the day to day. My father and uncle are involved as well.



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Dylan Rexing: Our Cfo is happens to be my mother.



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Dylan Rexing: So there's a fourth and then my aunt helps well, I've got 2 ants that help actually



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Dylan Rexing: kind of part time basis, kind of as needed. So



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Michael Palumbos ChFC, CBEC: 4 and a half, maybe. Yeah, no, no, I love I love it, and that's it, help, it's helpful, because my my gut says, and tell me if I'm if I'm on track here. When it came to the the farming side of things, the ag side of things did you guys was, you know, some of the shipping and some of the storage that was your own product. Yes.



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Dylan Rexing: yeah, that's for how it started. So the building we operate today. And I, I've got my background on all right. I typically when I when I talk to folks, I just turn my camera and show you cause I'm in the corner and you can see it. But



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Dylan Rexing: and you know, the the building we purchased is 134,000 square feet, holds about 12,000 PAL positions.



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Dylan Rexing: and we bought it with the purpose of storing our own egg products in this building, which we did and still do. We don't produce eggs anymore. But we still are involved in that business. But yeah, we



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Dylan Rexing: to to go back to your question. We did



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Dylan Rexing: purchase this building with the intent of our own agriculture product



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Michael Palumbos ChFC, CBEC: running any business. And I think and the reason why I'm bringing this up is, I want people to to hear. This is, you know, when you look at all of the choke points and all of the you know, all of the delivery points and the the value points for the customer along the way. If you can take some of the pain out of those different arenas, those different areas.



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Michael Palumbos ChFC, CBEC: There's, you know, there's value to the client for you to do that for the customer. So I it. It's to me it was a it's a natural fit for you to be in logistics



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Michael Palumbos ChFC, CBEC: coming from the farming background. It's just like one of those things that it's like we're just taking that, you know the customer life cycle there, and the delivery cycle, looking at all of the different pieces in there, and saying, What can we do better than



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Dylan Rexing: the competition, and maybe we just insert ourselves into that arena. So good good on you for doing that. I mean, we we sort of tell our customers and our our employees or stakeholders that we're we're really a one stop shop in a lot of ways. I think you'll find that if you do some research on the Ag. Space, you'll find that a lot of farmers own trucking companies.



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Dylan Rexing: these trucks that sit around and they're, you know, they're sort of used to haul grain in the fall.



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Dylan Rexing: and maybe you know the spring or whenever they might sell that product. But so they're using it. I don't know. 8 to 10 weeks a year, and so they're they're paying for the truck to maintenance it and license it and all of those things.



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Dylan Rexing: And so I think it's pretty natural for for a farming operation to also own a trucking business. Right?



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Michael Palumbos ChFC, CBEC:  What's it like for you, you know, working with the family. How? How would it give us the give us the highlights! What do you love about it? What are the what is the? You know the things are easy. What are the things that are tough? And and when we talk about the the tough things for you guys? And again, we're not looking for, you know throwing mud or anything like that. But I'm just kinda like, how do you navigate the differences and decision making when there are, you know.



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Michael Palumbos ChFC, CBEC: when it does get tough. How does that work for you guys.



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Dylan Rexing: you know. So I was waiting for that question. It's probably the most probably most interesting, and probably what what folks want to hear the most about you know. Working up family businesses is rewarding and challenging kind of all in the same breath.



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Dylan Rexing: You know. My, what's what's interesting about us is my mother. Was married to my father. They're no longer together, but she works on our business, and because she's very valuable



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Dylan Rexing: she's got lots of talents, and she came with came with 30 years of banking experience, and she's brought a lot of things to the team so that the creates it's own it's own challenge, but it's it's worked out really good. She started in October last year, and she's she's what they say. You wanna hire a player. She's an a player.



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Dylan Rexing: So I mean, I would say, you know it. It brings some challenge, but it also brings it also brings some rewarding pieces as well. At the end of the day II get to talk to my mother and my father.



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Dylan Rexing: And at some point, my sister, every day of the of the of the work week. It. It brings an interesting dynamic to, you know the family table at Christmas and Thanksgiving and Easter, and the kind of



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Dylan Rexing: you know. I think I'm I'm safe saying that



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Dylan Rexing: family business owners never take the business hat off.



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Dylan Rexing: you know, when I go home I'm unfortunately I'm I'm still thinking about business, and and what we could do to get better and grow, and those kinds of things. But



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Dylan Rexing: I mean, I think it's a



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Dylan Rexing: I think it's awesome. Having the opportunity to have family members work on our business and work with us side by side and help us grow what we're doing here in our community, and and do some cool things



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Michael Palumbos ChFC, CBEC: right?



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Michael Palumbos ChFC, CBEC: How long is you know the trucking company, the Storage Company been in business? You know. How long have you? When, how long ago. Did you start so?



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Dylan Rexing: the warehouse evidence of cold search. We we bought the building in 2,012, and so shortly after there probably sat empty for a little bit while we were trying to get things up and going. But



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Dylan Rexing: So it was. It was in 2,012. The brokerage, the Freight Brokerage Company. which has the chunk of our dollars and and revenue. We started that business from Scratch in 2,015



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Dylan Rexing: you know we've been on the fastest growing list of companies. Several years in a row.



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Dylan Rexing: Congrats. Thank you. The trucking company where we own trucks, and, you know, have drivers, and we pull up the football trailer for iu



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Dylan Rexing: we purchase that business in December of 2,017. It was a small, I mean, we're still fairly small, but it was a



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Dylan Rexing: 8 or 9 truck fleet. When we purchased that maybe 10 ish



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Dylan Rexing: and we're we're right around 30 trucks today, which is kind of a nice sweet spot for management and those kinds of things.



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Dylan Rexing: And then, yeah, I mean farming, you know the other other entity of ours we've been involved in for 5 generations. Okay.



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Michael Palumbos ChFC, CBEC: walk through the the employee setup again. So when we look at 2,012. How many employees you know? Did you have then? What's the growth trajectory been



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Michael Palumbos ChFC, CBEC: since 2,012? So you know you're at that 1011 year. Mark. Now.



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Dylan Rexing: what does that look like? So 2,012 we probably had



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Dylan Rexing: before the Cold Source business. We probably had 5 employees, plus the 3 family members. So you know, from 2012 to now, you know, 5 employees to 90 will probably be over 100 by the end of the year. As long as a couple of things go right. So I mean, we've had a lot of growth



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Dylan Rexing: challenging growth at times, you know, going from 5 employees to nearly 100 is.



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Dylan Rexing: it's not necessarily an easy task. and I



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Dylan Rexing: I think II probably share a similar personality that I kind of want to do everything myself, and, you know, have trouble sort of handing things out. I'm sure I've listened to some of your shows. And I that's come up several times. It's kind of a normal piece of set of our sort of personality. But yeah, I mean, have quite a bit of growth growth over the years.



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Michael Palumbos ChFC, CBEC: That's great. Our, our new website is coming out. It's it's it was supposed to be out months ago, just long story, but it's the the tagline is. Are you tired of being the CEO? Are you ready to be the CEO? And and it is it is. Probably, I think that's the one of the most challenging pieces is putting on that headset. I'm so good at getting stuff done.



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Michael Palumbos ChFC, CBEC: and I know that if I do it, it's done right. How do I build that team out so for you? You could. You wouldn't be at 90 employees if you hadn't done some of those things. What were some of the W. You know? How did growing yourself? And as a CEO as the the you know, the head of the company.



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Michael Palumbos ChFC, CBEC: What were some of the things that worked for you along the way?



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Dylan Rexing: So I'm gonna beat up on myself. To answer this question. So before I beat up on myself. II tell folks in my office that I'm the chief fire extinguisher.



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Dylan Rexing: like all I do all day long, is is sort of walk around, put out fire, so I'll I'll add that to the CEO of all right.



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Dylan Rexing: So I'll be up on myself to to kind of answer, like how I you know the journey of how we got here. You know I'm not



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Dylan Rexing: the oldest CEO in the in on the planet or in my city, or in the State, or or whatever right. I'm 31 years old. So II still have a lot to learn.



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Dylan Rexing: II sort of believe kind of early going that



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Dylan Rexing: that the employees were kind of here to serve serve the the business.



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Dylan Rexing: And I quickly learn that it's really the other way around. that if you want a thriving business that can grow in your community and have an impact that that really my job is is to serve my employees.



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Dylan Rexing: give them the tools that they need to be successful. And so it's it's kind of.



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Dylan Rexing: My answer is kind of cheesy, and II think it's probably the answer you get a lot. Which is the reason we grew is because of our employees. But I just I wanted to share that journey for me to to recognize that I didn't always think it was that way. But truly it's all about



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Dylan Rexing: hiring good people. And we're still on that journey. We'll always be on that journey. Our, you know, our role is to always



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Dylan Rexing: my role is to always look for folks and make sure they go. You know we have the folks in the right seats, and they're.



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Dylan Rexing: you know, incentivize correctly. And they've you know they've got the right. They go in the right direction. But II will also tell you. There's an organization that I highly recommend called Vistage. I don't know if you've ever heard of it. So I'm I'm going on this October will be 2 years. That I've been invested. I think it's helped help sort of my leader leadership journey.



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Dylan Rexing: You know the the, the really neat thing about vistages. And I'm I'm speaking to a business member. So it's



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Michael Palumbos ChFC, CBEC: I'm not telling you. You don't know. But for people that are listening and say, Okay, it'll it's helpful.



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Dylan Rexing: I think



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Dylan Rexing: it's important that no matter what business you're in whether it's a family business or you just started it. So it hasn't had that legacy yet, or you know, maybe you work for



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Dylan Rexing: quote unquote. You work for the man.



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Dylan Rexing: Vistage.



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Dylan Rexing: What you'll find is every different business and any different history of that we all deal with the same problems, whether you're again mother, your a trucking company like us or



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Dylan Rexing: I don't know. Maybe you you produce some widget, or you're a Cpa firm or law, firm, or whatever.



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Dylan Rexing: We all struggle with the same sorts of things. And so I think it's really interesting about that group, as we'll have you know, kind of at the end of our meeting, after we've had a speaker, or or what have you? And and had some of those things we'll talk about some of our challenges



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Dylan Rexing: and



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Dylan Rexing: our challenges are all similar. So one of the folks, our group will be talking about something, and I'm sitting down my piece of paper, and I'm jotting down notes about



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Dylan Rexing: what you know, what we can do from our organization to make ourselves better. And I think to tie back to the original question. I think that's important



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Dylan Rexing: to building a good conducive team. That sort of row in the right direction. Yeah.



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Michael Palumbos ChFC, CBEC: I'll share with you. It's you said, it's because we have good people. And I will challenge that just a tiny bit. It's because you made the decision



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Michael Palumbos ChFC, CBEC: to make people matter.



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Michael Palumbos ChFC, CBEC: That's why you're successful. You made a decision to worry about culture. So when I'm working with Ceos in any company doesn't matter that my my 2 things for the CEO, are you? You need to be doing head of company activities, and the 2 major ones is you're in charge of culture. Nobody owns culture but you.



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Michael Palumbos ChFC, CBEC: You're 100 accountable. You know what you what you expect from people and what you allow matters right.



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Michael Palumbos ChFC, CBEC: And then the other one is strategy. And it's so it's like, if if you just as the CEO, if you own those 2 things that does not mean that you're not gonna have to sweep the floor some days. It does not mean that you don't get dirty and and dive in with different things, but you're accountable, and you own those 2 2 things, and you did it.



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Dylan Rexing: You did it. No, II will say we're not perfect. So we have. We hired. We have had. We've hired quite a few folks over the last several years, and every month we have a new hired meeting. I found that we were adding 5 and 6 people a month, and I didn't know their names. I didn't know their what they what made them tick. And so every one of these, we have it in the morning, and we'll provide coffee and whatever.



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Dylan Rexing: And I tell everyone that comes into our organization like, we're not perfect.



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Dylan Rexing: we're gonna stub our toe.



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Dylan Rexing: We're still fairly new in the world of business. I'm young. I don't know all the answers, so come see us if we stub our toe, I think sometimes just recognizing.



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Dylan Rexing: you know, I like to call them leverage spots.



00:20:49.680 --> 00:20:58.430

Dylan Rexing: recognizing what you're good at and what you're not good at, and and just giving folks the voice to come, talk to you. And again, we're not perfect.



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Dylan Rexing:  but I challenge our group. All I challenge of my leadership team all the time to what can we do to make things better?



00:21:06.900 --> 00:21:13.539

Michael Palumbos ChFC, CBEC: And so here's a question I've never asked a CEO before, but you seem like you'd be up to the for the task.



00:21:13.820 --> 00:21:21.390

Michael Palumbos ChFC, CBEC: Can you talk about without incriminating names or anything? Put names in there but a time when you stubbed your toe.



00:21:21.700 --> 00:21:30.420

Michael Palumbos ChFC, CBEC: and and how you it was brought to your attention that you stubbed your toe. And how did you go about dealing with it and and rectifying it?



00:21:30.800 --> 00:21:41.920

Dylan Rexing: And I think, you know, to get back to the family business aspect. I think the beauty of businesses of our size is, we can sort of make decisions like this right?



00:21:42.000 --> 00:21:56.999

Dylan Rexing: And to get back to where did I start my Tova? I would say, we probably at times make decisions too quick. sit down and and line item, decisions like what you know. If we do this, how is that gonna affect this person? And so



00:21:57.020 --> 00:22:04.869

Dylan Rexing: I, there's several examples that come to my brain where we did something. We we acted too rashly.



00:22:05.100 --> 00:22:17.640

Dylan Rexing: Maybe we only heard one side of the story with some with 1 one particular employee, and we we sort of already had it in our brain that that person was right, and we didn't, you know, take the other person's



00:22:17.830 --> 00:22:20.660

Dylan Rexing: perspective into account. And so



00:22:20.710 --> 00:22:27.769

Dylan Rexing: you know, without giving any names. I think that's something that we struggle with, I. And I think the answer to to to how you solve. That is



00:22:28.600 --> 00:22:32.569

Dylan Rexing: cause you sit down with such. You know such individual and say, Listen.



00:22:33.290 --> 00:22:44.760

Dylan Rexing: we miss this. We should have you know we should have asked for your input, or we should have done XYZ. And we didn't. Here we are. How do we? You know, how do we get through that? Yeah.



00:22:45.770 --> 00:22:55.970

Michael Palumbos ChFC, CBEC: looking at your company, you know, with 90 people, have you developed a leadership team yet? That is aside from the ownership team.



00:22:56.860 --> 00:23:08.870

Dylan Rexing: Yeah, we're still like. So we're still on that journey to get everybody in the right place. We've made a lot of management changes here in the last call. At 6 months we've had a new warehouse manager, a new Cfo



00:23:09.100 --> 00:23:17.970

Dylan Rexing: We just change some of our sales folks to sales, Leader. To make sure we have. You know everybody focused on what they need to be focused on. So yeah, I mean, I think



00:23:17.990 --> 00:23:23.460

Dylan Rexing: you know the difference between a company like ours. And let's say a



00:23:23.780 --> 00:23:32.979

Dylan Rexing: without naming any names of of Behemoth Monster Company. You know we don't have layers and layers and layers of managers.



00:23:33.170 --> 00:23:43.249

Dylan Rexing: Which is a good thing in a lot of ways. Right? You know, we're our overheads, not the the same as some of those companies, but at the same time, like if we have a



00:23:43.710 --> 00:23:49.559

Dylan Rexing: if we have somebody that decides to move right? So like our previous Cfo moved south.



00:23:49.580 --> 00:24:00.920

Dylan Rexing: It wasn't a bad relationship. He just, you know. He moved back south, and so we had to. We had to fill that void. He was nice enough to to sort of manage the the finance and accounting team remotely



00:24:01.010 --> 00:24:14.970

Dylan Rexing: for some time. It wasn't the most ideal for him or us, but it worked. But I think you know ultimately our bench is not as deep as as some folks just based on our size. And so we are. We do have a a good leadership team.



00:24:15.030 --> 00:24:19.590

Dylan Rexing: Probably one of the better ones that we've had. I feel pretty good about everybody.



00:24:19.670 --> 00:24:34.690

Dylan Rexing: But at the end of the day our our, you know, our bench is not as deep. And we're always looking for, you know, if we've got a few business ideas in the back of our brain that are, we think, are going to be pretty powerful and and send a great message and



00:24:34.950 --> 00:24:37.450

Dylan Rexing: and hopefully, our customer base will agree with that.



00:24:37.520 --> 00:24:45.300

Dylan Rexing: If that happens, you know, we'll have some another good chunk of growth, and with that comes, you know, more



00:24:45.430 --> 00:25:04.240

Michael Palumbos ChFC, CBEC: good folks that want to row in the same direction. Right? Are you familiar with the book. Either scaling up or Eos or metronomics. You guys probably talk about those things, you know, at this stage. Do you utilize any of those business operating systems today or



00:25:04.240 --> 00:25:30.889

Dylan Rexing: so. I've read Eos. I read the whole thing, and then sometime has gone by and I've started to reread it. I'm not, you know, one of the, you know, back to my leopard spots. I probably don't read as much as I should. I read a ton just. I don't necessarily read books, but I read, you know, different articles and kind of what's going on in the world, so we have not implemented those yet. I know both of those community talks pretty highly of us.



00:25:30.980 --> 00:25:40.670

Dylan Rexing: And there's several in our in our group that use it. And there's several that use scaling up as well. So I'm I'm familiar with them, but we don't necessarily use them today.



00:25:40.830 --> 00:25:41.780

Michael Palumbos ChFC, CBEC: Gotcha.



00:25:41.880 --> 00:25:57.889

Michael Palumbos ChFC, CBEC: I'll throw so I'm a metronomics coach, which is kind of so scaling up a a all of these organizations all came from scaling up, and not most people don't know that. So Gino Wickman was a scaling up coach, and Shannon Cisco was a scaling up coach.



00:25:57.890 --> 00:26:21.469

Michael Palumbos ChFC, CBEC: and then they said, Wait a minute, you know. Gino went one way to take it and and simplify things and and and Shannon took it a different way and said, I wanna use all the Eos and scaling up pieces. But I really wanna dig in and help people with their strategy cause that's what you know. She, you know, loves so we don't give away. You know. You don't lose any of the other pieces. But my point is



00:26:21.620 --> 00:26:25.660

Michael Palumbos ChFC, CBEC: it just came as you were talking. Here's what came up for me.



00:26:25.960 --> 00:26:52.659

Michael Palumbos ChFC, CBEC: Key, you know, inside of scaling up. They talk about the making sure you have a function accountability chart. They call it the face and so it's breaking down the org chart instead of by position and title, name and title. It's what are the different functions. Shannon took it a little, little, you know, deeper, which I really got a lot out of, and she creates the key function flow map, and so think about how your business makes money



00:26:52.790 --> 00:27:05.729

Michael Palumbos ChFC, CBEC: and making sure that there's somebody accountable in each of the areas of how you make money so, and every business is mostly the same. There's there's a you know, there's a couple of little nuances. But there's marketing. How do we attract



00:27:05.730 --> 00:27:23.529

Michael Palumbos ChFC, CBEC: new customers? Right then you've got the sales. How do we take them from being a qualified prospect to you know, we we land them and they're in house. Then we have operations, and inside of operations might be a little different for each company. But at the end of the day operations is operations, and then you got finance.



00:27:23.590 --> 00:27:52.389

Michael Palumbos ChFC, CBEC: So as you're building the leadership team to go through and say, Do I have somebody in each of those seats. I know there's other seats. There might be customer. Success might be a seat, that's you know, if you don't have the right customer success. That's part of how you make money. That might need to be in there. You might, you know. I know contractors, don't you know, and construction industry doesn't like to call it sales. It's the estimating department. So there is little nuances. But by



00:27:52.400 --> 00:28:21.059

Michael Palumbos ChFC, CBEC: blowing that out to see how you make money. There's so many things that you can add to your business, and if you have somebody that's accountable, and you can't be accountable for all 4 of them. Otherwise you're back to that. I got that extinguisher. Where do I go with this thing? I love that analogy that's so good. But I appreciate I'll give you credit for the first 3 times. That's my rule. Give you credit for 3 times, then it becomes mine.



00:28:21.060 --> 00:28:30.110

Dylan Rexing: No, I think those books provide a lot of value. And it's just something that we need to. It's part of our journey. And we need to get we need to get there. Yeah, I would.



00:28:30.330 --> 00:28:58.730

Michael Palumbos ChFC, CBEC: II I'll I'll send you a couple of books and II think you know I feel that Shannon just has taken it to the end degree and and I don't want it to. I tell people all the time whether it's vistage eo ypo you know metronomics Eos, or scaling up. Whatever you decide to utilize. Gravitas is another organization out there. Whatever you decide to use. If you.



00:28:58.750 --> 00:29:14.310

Dylan Rexing: if you you know, really live it and do it. You're gonna get a lot out of it. So I did. I'm a big fan of all of them. I'm just biased because of you know where I land. So yeah, I think it sounds like you're pretty knowledgeable. The way I understand it is scaling up is a bit more specific.



00:29:14.830 --> 00:29:20.130

Dylan Rexing: Us is maybe a little more holistic from the higher level. Is that a fair assess ass assessment?



00:29:20.220 --> 00:29:23.229

Michael Palumbos ChFC, CBEC: I what I would say is



00:29:23.630 --> 00:29:48.650

Michael Palumbos ChFC, CBEC:  And and I'm just speaking generalities. I'm not an Eos coach, but from what I've seen, Eos does a really great job on execution, and getting the team aligned on getting stuff done. And so most businesses a matter of fact, I'm giving a talk at the University of Buffalo tomorrow Wednesday, and we're talking about the fact that.



00:29:48.650 --> 00:29:58.510

Michael Palumbos ChFC, CBEC: you know, 88% of businesses in the Us. Under the 33 million plus businesses in the Us. 88. Is it 80 93? Sorry



00:29:58.570 --> 00:30:00.869

Michael Palumbos ChFC, CBEC: do not make a million dollars or more



00:30:01.480 --> 00:30:16.330

Michael Palumbos ChFC, CBEC: of revenue. So 93% of businesses in the Us are under a million dollars. You go a million to 10 million dollars. That's 8% of 91% that it goes 8%. And then 1%



00:30:16.580 --> 00:30:18.810

Michael Palumbos ChFC, CBEC: of businesses throughout the US.



00:30:18.960 --> 00:30:33.040

Michael Palumbos ChFC, CBEC: Are making 10 million dollars or more of revenue. Now, I know, based on your business model. And those things I know you guys are have surpassed that that number. But the reason why we're Eos shines. Is that.



00:30:33.040 --> 00:30:54.349

Michael Palumbos ChFC, CBEC: in my opinion? And for what from what I've seen is that 10 million dollars and under had to get me through those levels, it's awesome where you know you you still don't wanna lose that stuff. So metronomics and scaling up, they start to take the strategy piece and take it to the next level so that you can start to be thinking about. You know



00:30:54.410 --> 00:31:08.509

Michael Palumbos ChFC, CBEC: your strategy of saying, Okay, let's take the farming industry that we're in. And how do I make and have a little bit more control over it? You did exactly the right pieces of of putting that together, and what you just said earlier was.



00:31:08.810 --> 00:31:23.729

Michael Palumbos ChFC, CBEC: I have some ideas, and I hope my customers like it. I would just say that, like the strategy work through metronomics, and you know, and the different both 3 head way is one of Shannon's book that's really digs into the strategy side.



00:31:23.760 --> 00:31:43.289

Michael Palumbos ChFC, CBEC: I would do that work before I say, let's pull the plug and make this happen, cause you know, so I can make sure that when I do when I do it, that we've done the research. And we and we know this is going to be a win a game changer and winner for us. And I don't, Mike. I don't know your audience necessarily. But I'll just sort of say this out loud



00:31:43.720 --> 00:31:52.050

Dylan Rexing: when we started our, you know, sort of our our journey of business outside of agriculture. I felt like



00:31:52.260 --> 00:32:07.320

Dylan Rexing: we still work really hard. So I don't wanna discount that. But I really felt like we were scratching and calling to to get every you know, kind of every opportunity for those folks that are listening. I would tell you that eventually the work pays off.



00:32:07.350 --> 00:32:16.580

Dylan Rexing: and there was kind of this moment, and I can't exactly pinpoint when that moment happened. But at some point the the pendulum sort of shifts



00:32:16.590 --> 00:32:24.310

Dylan Rexing: and your business starts working for you, not you, working for your business. And and I think all of those things that



00:32:25.160 --> 00:32:36.230

Dylan Rexing: those pieces of making sure you have the right leadership team and your your you have some you know, Eos, or scaling up, or some of those pieces to touch, to make your business really churn.



00:32:36.500 --> 00:32:39.250

Dylan Rexing: I think you have to remember at the end of the day that



00:32:39.960 --> 00:32:46.309

Dylan Rexing: your hard work will pay off, and to get to that one over 10 million number.



00:32:46.340 --> 00:32:53.429

Dylan Rexing: ultimately at least, what we see or what I see. I don't know that, you know, we're just trying to solve



00:32:53.690 --> 00:32:55.660

Dylan Rexing: problems that others.



00:32:55.810 --> 00:33:19.219

Dylan Rexing: No, we're there, but they just maybe don't focus on one of the business ideas that's in the back of my brain. I won't go into specifics of it, but it's it's it's finance related in the trucking space. And ultimately all we have to do to serve our customer is, listen to them and and do do what their feedback is right where some of these companies are just so large



00:33:19.230 --> 00:33:27.620

Dylan Rexing: you have to have structures in place to do things. But ultimately it's like sometimes just, you know the reason



00:33:28.060 --> 00:33:35.639

Dylan Rexing: big businesses are scared of folks like ours is because our boat turns so much faster than theirs.



00:33:36.130 --> 00:33:38.739

Dylan Rexing: And it's just kind of doing the little things right?



00:33:38.960 --> 00:33:41.590

Michael Palumbos ChFC, CBEC: Yeah, no, II agree. You know.



00:33:41.920 --> 00:33:50.769

Michael Palumbos ChFC, CBEC: Oh, I had 3 things that went through my head as you were speaking, so I got a slow. I didn't know. No, that's good.



00:33:53.730 --> 00:34:13.250

Michael Palumbos ChFC, CBEC: I just lost it. I apologize. It happened. Say we, I'm not perfect, either. That's what it was. It was Covid hit. And I just wanted to serve clients. And that's how this podcast started. And you talked about just your claw. And I was clawing. You know, in this, podcast most podcasts



00:34:13.270 --> 00:34:37.219

Michael Palumbos ChFC, CBEC: don't survive 3 months, 6 months that you know, people get into and they start doing it. And they find out that it's a lot harder to put together a podcast than they thought it was. And II got lucky. I hired the right person. I had one of my kids friends had gone to school to be a producer, for you know the marketing company.



00:34:37.219 --> 00:35:04.310

Michael Palumbos ChFC, CBEC: and you know they wanted to get into that tha that industry and she was having a hard time. It was around that 2020 times. So nobody was hiring her position. I came in said produce, create the systems to produce my, podcast she created excel spreadsheets. You're gonna need this, you're gonna I mean stuff that I had never would have thought about. And here we are into our up. No. Ninetieth episode. 91 92, coming up on our 100



00:35:04.310 --> 00:35:29.120

Michael Palumbos ChFC, CBEC: episode. And for me it's simple. Christina came in, took over for you know, the person who set everything up for her, and Christina's like. Oh, I love my job, and I'm so glad that you know her name was Sierra, that Sierra came in Sierra morbid, who's now working for some big Hollywood firm? And does social media. And I mean she's just a rock star out there. Did a great job



00:35:29.160 --> 00:35:44.290

Michael Palumbos ChFC, CBEC: and really set us up for success. And the fact that we didn't stop our podcast is one of the, you know one of the top. 5 rated family business podcasts in the world. So that's kind of cool.



00:35:44.400 --> 00:35:49.650

Michael Palumbos ChFC, CBEC: just basically exactly what you're saying. It just aligns so perfectly. It's don't stop.



00:35:50.270 --> 00:35:59.170

Michael Palumbos ChFC, CBEC: You just keep doing it, and eventually it will. It will work its way out as long as you keep doing and solving problems



00:35:59.540 --> 00:36:02.010

Michael Palumbos ChFC, CBEC: creatively for the people that you serve.



00:36:02.130 --> 00:36:08.890

Dylan Rexing: Well, you know I would. You know I will. Congratulate you on. I haven't had the opportunity to listen to 90 podcasts.



00:36:08.940 --> 00:36:28.459

Dylan Rexing: But I have listened to several of them. And and you guys do provide value. And I think you know, I'm our chamber of Commerce and Evansville. We rebranded 3 organizations and called ere so I'm from Evansville, Indiana. So it's it stands for Evansville representation, and one of the committees. I'm on is the family, business, alliance.



00:36:28.470 --> 00:36:33.790

Dylan Rexing: And so we have quarterly meetings where we sit down and try and do what you're doing in a, podcast.



00:36:33.870 --> 00:36:48.330

Dylan Rexing: but do it in a setting where people are kind of in person, and and it's not the easiest thing to to keep running so congratulations for 9, almost almost 100 episodes. I think you guys do a great job and provide content that folks want to listen to.



00:36:48.380 --> 00:37:13.589

Michael Palumbos ChFC, CBEC: Yeah. And and it's these. But it's these stories that are real. It's you know, we we when we started it was a lot of consultants, and we still, we've a consultant in here and there. But we're much more focused on the families and the businesses, because it's real. And people, I think other people just it. It matters to them. And it's more. Oh, yeah, I'm going through the same thing, and they need to hear that.



00:37:13.890 --> 00:37:31.280

Michael Palumbos ChFC, CBEC: So cool top. Let's do this. So do a couple of things. One, if you ever need some help at Evansville, let me know I'm happy to, you know, pop on a zoom, or you know II planes are pretty easy, so you can still be in person if you ever needed it. But then the other thing I would throw you



00:37:31.430 --> 00:37:33.009

Michael Palumbos ChFC, CBEC: what is your



00:37:33.260 --> 00:37:38.639

Michael Palumbos ChFC, CBEC: top? 3 priorities right now, if you're looking out the next 12 months.



00:37:38.990 --> 00:37:41.639

Michael Palumbos ChFC, CBEC: and you're sitting down with your coach.



00:37:41.720 --> 00:37:48.039

Michael Palumbos ChFC, CBEC: and they yeah, he or she says, All right, Dylan. Top 3 priorities next 12 months. What are they?



00:37:48.650 --> 00:37:56.379

Dylan Rexing: You know I tough question. Thank you for that. I you know I struggle with vision



00:37:56.450 --> 00:38:07.129

Dylan Rexing: because I have all of these things sort of coming at me, and I just see so much opportunity out there, you know, unlike what you hear on to on television and the media that we're sort of



00:38:07.370 --> 00:38:27.079

Dylan Rexing: kind of heading, heading down and the world's collapsing. I think there's so much opportunity out there now, I do think there are some some economical challenge that we're going through. So you know, one of the things that that is a priority for me over the next 12 months is making sure that we're in a position our. But our balance sheet and our financials are in a position to take advantage of



00:38:27.120 --> 00:38:44.759

Dylan Rexing: what's coming, because it's coming. I'm I'm not gonna take credit for it, you know, but it's it's out there, and there is. I'm talking as sort of both sides. But the world's not falling apart. But there are some some financial challenges that are coming when interest rates went from



00:38:44.830 --> 00:38:59.440

Dylan Rexing: 3 to 8 in couple of months, like there's gonna be some things happen. So you know, kind of one number one for me is just making sure that we're in a good financial position to take it to take advantage of what opportunities may present themselves.



00:38:59.590 --> 00:39:10.479

Dylan Rexing: Number 2. Sort of builds on number one. Again, it's a little cheesy, but making sure that we have the right people in place to take advantage of set opportunities when they come



00:39:10.900 --> 00:39:27.760

Dylan Rexing:  and number 3, maybe just again doing the little things right? You know, one of the things that II picked up from from listening to to podcasts like yours and vistage and whatever is just, you know, writing a little anniversary card to all of our employees.



00:39:27.800 --> 00:39:35.439

Dylan Rexing: It takes. It takes not a lot of time. It takes some time out of my day. But it's important. It's just a little things



00:39:35.570 --> 00:39:37.050

Dylan Rexing: that people



00:39:37.540 --> 00:39:53.059

Dylan Rexing: people appreciate. We. We have a a sort of a sales competition inside organization for hitting, you know, making certain phone calls and emails and those sorts of things. And one of the things that I implemented was writing handwritten cards



00:39:53.340 --> 00:40:12.400

Dylan Rexing: to customers and potential customers, because no one does that. And going back to what I said earlier, it's the little things that matter. And if you're gonna write a card. So you're gonna take the time out of your day to sit down and focus on writing a little. Thank you to to to someone you just met with. Hey, I really appreciate.



00:40:12.470 --> 00:40:18.449

Dylan Rexing: You know your time. II really enjoyed listening to XY. And Z. I'd love to learn more



00:40:18.470 --> 00:40:23.069

Dylan Rexing: like it's that it's that simple. Sorry my phone's going off here.



00:40:23.220 --> 00:40:24.750

Dylan Rexing: it's that simple



00:40:25.340 --> 00:40:38.850

Dylan Rexing: again. It's just a little things. And there's a million little things that you need to do right. But and maybe that should have been the first thing I said so the last thing it should have been number one instead number 3. But it's just again it's just doing a little things right.



00:40:38.930 --> 00:40:48.009

Michael Palumbos ChFC, CBEC: I know. I think you're on the right track, because you know it, it's harder. So summarize those again. Number one was



00:40:48.230 --> 00:41:18.100

Michael Palumbos ChFC, CBEC: financials. Number 2 is the team and number 3 is all the little things. Okay? So watch this. And I'm gonna agree with you. We use a tool with clients and customers called the cash conversion cycle and cash flow story and and just making sure right now I'm Gr. I'm in agreement with you. You know, the the indicator, the leading economic indicator started firing way early.



00:41:18.190 --> 00:41:32.279

Michael Palumbos ChFC, CBEC: We're ahead of it. And so it's like, you know, it's the the recession is coming. A slowdown is happening. What that turns into, whether it's soft or hard we don't know. I think that because it's fired so early



00:41:32.280 --> 00:41:55.399

Michael Palumbos ChFC, CBEC: that a lot of the big companies have tightened up their their balance sheets already. They're ready to go. They're looking for the opportunity. So what you're talking about is exactly right. Tighten up our. You know, our our books. Make sure that we've got cash to deploy because there will be opportunities out there for the especially some of your competitors and some of the people that are in industries that you might wanna get into.



00:41:55.400 --> 00:42:04.849

Michael Palumbos ChFC, CBEC: They might not have tightened up their balance sheet, and they might not have the cash to deploy. So remember, you know, Warren Buffett says it best when others are fearful. Be greedy



00:42:05.220 --> 00:42:15.180

Michael Palumbos ChFC, CBEC: when others are greedy, be fearful. Right? And so, yeah, that's a good balance.



00:42:15.210 --> 00:42:30.600

Michael Palumbos ChFC, CBEC: And then the people side of things and creating that culture and making sure that you've got that, you can never stop doing that. You'll never you that will pay dividends over and over again. I had one of my favorite stories is a company that I was coaching that went



00:42:30.660 --> 00:42:54.530

Michael Palumbos ChFC, CBEC: from 10 million dollars a revenue to 40 million dollars of revenue much faster than they ever should have. And and in a good way it was. It was just like much faster than normal. How's that? Their secret? They did not implement all of the things that we coached. They implemented one thing that we coached, which was, build an a player team around you and let them run.



00:42:54.640 --> 00:43:01.049

Michael Palumbos ChFC, CBEC: and they had an opportunity. They were always hiring people, the if they saw an A. Player



00:43:01.210 --> 00:43:30.700

Michael Palumbos ChFC, CBEC: they didn't care whether they had a spot or not. They got them on the team, and then figured out where that person would go, he or she, so they they could do things, and then they would just let them run. And so that was a really cool thing. If you looked at their team, you know, in 2,014 versus 2,023, it's night and day the kinds of things that they were able to put together. So that was, that was fun to watch. And then the third thing, all the little things.



00:43:30.760 --> 00:43:41.069

Michael Palumbos ChFC, CBEC: Yeah, Mike, Dylan, that is huge. And I'm gonna give you a book that I think will be helpful, because if you focus on all the little things there's so many



00:43:41.810 --> 00:43:59.400

Michael Palumbos ChFC, CBEC: there's so many little things that you could be focused on on. Now you run around with that fire extinguisher again. Kind of a thing. Joey Coleman, who's been on the show, and it's an episode you might want to listen to. Maybe it's you don't even have to listen, grab the book, but I do highly recommend. The book is kind of a workbook, but how to never lose a customer again.



00:44:00.070 --> 00:44:11.779

Michael Palumbos ChFC, CBEC: and what he talks about is creating systems and processes all the way along the value chain all the way along, all the contact points so that you throw in the little things.



00:44:12.110 --> 00:44:22.989

Michael Palumbos ChFC, CBEC: and they're built in for you, and he also does it for never lose an employee again. And so those little pieces of saying, okay, we're going to build a process for making those things happen.



00:44:23.000 --> 00:44:24.089

Michael Palumbos ChFC, CBEC: It's all good.



00:44:24.250 --> 00:44:37.869

Dylan Rexing: I just again, it's just II don't mean to be, you know, beat the same issue. But it's just, you know, answering your phone and answering your emails in a professional way, and not just yes and no. And just just the little things



00:44:38.990 --> 00:44:49.969

Michael Palumbos ChFC, CBEC: just really make a big difference. Yeah. But you talked about asking people to send. Thank you. Notes into, you know, to do those things. One of the things I found is like the younger generation.



00:44:50.040 --> 00:45:16.059

Michael Palumbos ChFC, CBEC: They weren't even told how to hand address an envelope. And so we II went out, and I made sure that do not. If you do not know how to do something, the world has changed. And just because I know how to do this, and it's second nature for me on how to, you know. Write a business envelope. That doesn't mean that it's second nature for you, just because I'm was taught how to shake it. I'm telling you I've had to teach people how to shake a hand.



00:45:16.250 --> 00:45:22.580

I had to teach people how to look people in the eyes. And you know and introduce yourself how to answer the phone.



00:45:22.990 --> 00:45:40.889

Michael Palumbos ChFC, CBEC: Those are things that sometimes we take for granted. We need to be okay, and don't think I don't think that people are the. You know, the younger generation. I don't think that it's I just think that we weren't taught the same way. And technology has taken away a lot of the things that help with those things.



00:45:41.130 --> 00:45:43.829

Dylan Rexing: Yeah, absolutely. Yeah. I agree 100%.



00:45:44.310 --> 00:45:46.080

Michael Palumbos ChFC, CBEC: Alright. So



00:45:46.130 --> 00:45:56.279

Michael Palumbos ChFC, CBEC: we've talked about your you know the, the your priorities. I think you're spot on with what you're doing. If you look at your pain points.



00:45:56.560 --> 00:46:09.549

Michael Palumbos ChFC, CBEC: what are your top. 3 pain points right now and then. What are you, and what are you thinking about addressing them? So when I say pain points, pain points to me are the things that it's like. If I wake up at 30'clock in the morning, I'm like,



00:46:09.900 --> 00:46:13.729

Dylan Rexing: you know, what are those things for you? So.



00:46:13.860 --> 00:46:28.930

Dylan Rexing: I will intentionally not try to get political, but I will tell you that probably my number one issue right now, and some of it got solved this weekend because they passed a small funding bill. But you know government scares me probably the most



00:46:28.980 --> 00:46:38.340

Dylan Rexing: number one or number 2, just making sure that ultimately, you know, again, not to get political. But governments, job is is to sort of



00:46:38.740 --> 00:46:48.959

Dylan Rexing: provide some things that we need and get out of the way, and so just want to make sure that they get out of the way. And and let us do what we need to do and regulate where needed cause. There are.



00:46:49.070 --> 00:47:01.040

Dylan Rexing: There are instances and different things that you know they needed to get involved in. So I would say so. What keeps me up at night is is is kind of regulation in general.



00:47:01.500 --> 00:47:13.270

Dylan Rexing: you know, there's a lot of okay. Maybe the number 2 thing is and I don't know this is this is maybe keeping me up at night. But well, I would think it would be should be. Keeping most employees up at night is is AI,



00:47:13.420 --> 00:47:34.160

Dylan Rexing: and where that goes I don't think anybody really knows. If if you kind of watch that story. you know Elon Musk at Tesla and Spacex and several others sort of started that journey, and then he sort of backed away, and so wait a hold on, wait a minute. This is maybe running a little too fast.



00:47:34.310 --> 00:47:50.960

Dylan Rexing: and I just I worry that. You know. One of the one of the guys in my vistage group had had some folks that got replaced by AI like they didn't go in and sort of just get rid of them overnight. But as attrition happened, they just didn't replace those folks.



00:47:51.230 --> 00:48:02.760

Dylan Rexing: I think that sort of scares me like what you know, what's gonna happen with our population as as jobs sort of get eliminated. Do we find new one. Typically, you know, traditionally, historically.



00:48:02.870 --> 00:48:19.839

Dylan Rexing: we find new things for them to do, and they become more, you know, equipment and technology makes them more efficient. And we're able to produce food at a cheaper level or fruits, you know, automobiles, or or what have you at a lower level? But I think this one might be so big that



00:48:20.040 --> 00:48:23.639

Dylan Rexing: I'm not so sure that we could find something for them to do.



00:48:23.890 --> 00:48:26.609

Dylan Rexing: so those are probably 2. And then the third one.



00:48:27.410 --> 00:48:40.810

Dylan Rexing: just sort of the uncertainty of where things are going. So you know, I wanna make sure that that we we handle our business in a in a conservative way, getting back to kind of like my number one issue, which is making sure not number one. Issue my number one.



00:48:40.900 --> 00:48:49.329

Dylan Rexing: What what I'm priority that we're trying to do is is protect your balance sheet. I think my number 3 issues, you know, bad issues, just making sure that we're



00:48:49.660 --> 00:48:50.460

Dylan Rexing: work



00:48:50.920 --> 00:49:00.780

Dylan Rexing: operating in a in a in a conducive way to make sure we're playing for the future, you know. Fifth, I don't. I don't have the statistics off the top of my head. But so I'm gonna guess at them.



00:49:00.870 --> 00:49:14.010

Dylan Rexing: But 5 generations of family business is like 2 or something 3 somewhere in that route very, very, very small, and I don't necessarily want my family business to falter on me.



00:49:14.590 --> 00:49:21.739

Dylan Rexing: I don't want it to fall for anyone ever frankly, but I don't. I don't want it to be me that that makes a bad decision.



00:49:21.820 --> 00:49:33.319

Dylan Rexing: And so, just making sure that we're cognizant of what's going on in the world and in our local community. And and we're following. not necessarily jumping at trends.



00:49:33.440 --> 00:49:37.810

Dylan Rexing: but following them to see like how they might affect our business



00:49:38.320 --> 00:49:39.170

Michael Palumbos ChFC, CBEC: there.



00:49:39.400 --> 00:49:55.359

Michael Palumbos ChFC, CBEC: II think that having the business operating systems, regardless which one you put in, I think that's a real helpful thing to to help eliminate the oh, my goodness, we just made a horrible mistake. Kind of a thing. That's one of the the areas that that can help in



00:49:55.430 --> 00:50:09.830

Michael Palumbos ChFC, CBEC: but I think you're on the right track, you know, to doing the things that you're doing. Oh, that's why I went family businesses. Fifth generation is well under one by the fifth generation, and it would be my guess. But here's the thing that I want to make sure that



00:50:10.300 --> 00:50:13.340

Michael Palumbos ChFC, CBEC: everybody listens to is.



00:50:13.710 --> 00:50:17.480

Michael Palumbos ChFC, CBEC: I think, what following those statistics is wonderful.



00:50:17.530 --> 00:50:31.160

Michael Palumbos ChFC, CBEC: but I think we need to be proud of if something happened, and there wasn't a generation behind you. If one of you know I don't. I don't know if you have kids or your plan, you know where where that's at. But if if that doesn't happen



00:50:32.120 --> 00:50:38.520

Michael Palumbos ChFC, CBEC: it. I would rather you be proud of being fifth generation, because most S. And P. 500 companies



00:50:38.920 --> 00:50:45.039

Michael Palumbos ChFC, CBEC: they're not. They're not the same in 15 or 20 years, and think about how many years you go. So I think we need to



00:50:45.440 --> 00:51:08.200

Michael Palumbos ChFC, CBEC: balance that conversation with, I don't want to be the one, and I understand the legacy, and I understand the you know what that feels like pressure wise to make sure that it keeps going. But at the same time. I think you need to celebrate much more how long it has gone on, and how proud we are to be a family that made it to fifth generation, even if it didn't go to 6.



00:51:08.560 --> 00:51:25.540

Michael Palumbos ChFC, CBEC: So just make sure that piece for yourself. There's some of my contemporaries, and you know, colleagues Dennis Joffe, Jim Grubman and oh, my goodness, I just did that thing. I apologize, and she's gonna kill me



00:51:25.540 --> 00:51:51.340

Michael Palumbos ChFC, CBEC: where I just said, There we go. Oh, yeah. Kristen Kepler, II just had a brain cramp. Sorry Kristen. But there they wrote a book called Well 3 in which they really they wanna talk about the positive side of all of these things, and how those companies got there, how the family enterprises, and how the family wealth was able to go there, and I will tell you the biggest thing, just trust and communication.



00:51:51.450 --> 00:52:01.819

Michael Palumbos ChFC, CBEC: figuring out how to have open dialogue and build a trusting leadership team, build a trusting family that can, you know.



00:52:01.980 --> 00:52:23.900

Michael Palumbos ChFC, CBEC: ask dumb questions and not be ridiculed for them. Ask dumb questions and and people be like, okay, let's think about that for a second. So trust and communications, 60% of the issues. Obviously, I'm I'm extremely proud of being generation 5. But it's it's gonna be my mission to make sure. I mean, if my kids I do have 3 kids, or I have 2 daughters and a son on the way in December



00:52:23.980 --> 00:52:50.089

Dylan Rexing: and so we will. We will have the. We'll have the people. Now, I'm not gonna be one of those followers that says, Hey, you know, this is something you have to do. My dad didn't tell me I had to do it. I think I as I when we started the show, I think I explain. That's kind of something he didn't say necessarily, but I could understand. That sort of thing. But ultimately II want our business to continue. If it doesn't, you know



00:52:50.510 --> 00:52:52.319

Dylan Rexing: nature has its course.



00:52:52.410 --> 00:52:58.090

Dylan Rexing: But I will tell you, you know, on on the adding to what you just said to some degree. Jeff bezos.



00:52:58.140 --> 00:53:11.480

Dylan Rexing: you know, pretty famously for for Amazon. Right? He. He says that. You know you have a and B decisions Umhm, sometimes in family business, large business, small business, and anything in between.



00:53:12.070 --> 00:53:18.110

Dylan Rexing: Sometimes you just struggle to make a decision. you know, even if it's the littlest things, and he sort of



00:53:18.260 --> 00:53:26.200

Dylan Rexing: he. He! He taught folks at Amazon to sort of throw things into buckets, you know, an A decision or a B decision, an a decision is.



00:53:26.240 --> 00:53:44.569

Dylan Rexing: it's it's a bet the farm kind of situation, you know, to to be cliched to us as farmers don't that way. But you know, bet the farm situation. We better sit around a room and get the the stakeholders that matter, and get their opinions. And then there's the B decision, like what office to promote Billy into



00:53:44.660 --> 00:53:50.489

Dylan Rexing: is he gonna want that office, or this office, or or what? Have you just sort of make a decision



00:53:50.500 --> 00:54:02.239

Dylan Rexing: right? And roll with it. Too many ideas just sort of sit on the shelf because somebody doesn't want to be accountable for whatever that is. And I think that's something that's special about family business that



00:54:02.260 --> 00:54:07.270

Dylan Rexing: you know we have the ability. Whether it's again. I'm not saying every decision I've ever made is a good one.



00:54:07.670 --> 00:54:09.600

Dylan Rexing: but I'll make some great ones.



00:54:09.630 --> 00:54:19.599

Michael Palumbos ChFC, CBEC: and sometimes just making the decision is all that matters. Yeah. II it's patrick Lenzioni talks about, you know, the 5 dysfunctions of a team



00:54:19.600 --> 00:54:35.549

Michael Palumbos ChFC, CBEC: and number one is that trust which I think that happens in a family. It happens in a business that is the the biggest thing to. If you can foster. Trust with your children, Foster, trust with your leadership team and learn how to make that happen so that it works is is huge.



00:54:35.550 --> 00:54:51.630

Michael Palumbos ChFC, CBEC: the ability to handle conflict. So like, if your kids disagree with you, how do you allow them? The space to be human beings cause they are human beings, regardless of whether they're know it all or don't know at all. And they're young or they're not young. They're still human beings, and they have, you know.



00:54:51.670 --> 00:55:13.139

Michael Palumbos ChFC, CBEC: their own thoughts. And that's, you know, challenging same with your leadership team. So how do we handle conflict? And how do we be able to talk about those things. And then, once you, you know, we trust each other enough to handle conflict, constructive conflict, healthy conflict, respectful conflict. How do so we built that. Then he goes into the next one which is commit.



00:55:13.480 --> 00:55:29.749

Michael Palumbos ChFC, CBEC: And so it's like, Okay, everybody. Because we were able to have conflict. And everybody was able to air out what they thought about this stuff. And you know, Dylan says, Look, it is the CEO. II know you guys are tied down the middle this way. We're gonna go with Betsy's idea.



00:55:29.990 --> 00:55:52.460

Michael Palumbos ChFC, CBEC: And we're just gonna go and then to have a team or have a family that says, Okay, if that's the direction we're going, then we just don't totally ignore what Joe was talking about, and that wasn't even an option. We're just 100% in for Betsy with Betsy's idea. And we're gonna commit to doing that. That's a really big skill to, you know, to talk about into Foster within the leadership teams. And within the family.



00:55:52.770 --> 00:55:55.569

Dylan Rexing: Yeah, and this is the call it carefrontation.



00:55:56.050 --> 00:56:25.140

Dylan Rexing: Yeah, exactly. It's a really, that's what our group calls it is. And you know it's it's some of those uncomfortable conversations, you know, in conflict, and and folks don't like to have them. I don't like to have them. I think if you talk to our leadership team you'll you'll learn that I don't love it. But you know sometimes you have to have it. We had a little small session this morning, where there was some conflict before I go on here, and we, you know, we figured it out. And then at the end of the day, we said, you know, we're gonna we're gonna all march. We're all march in the same direction.



00:56:25.270 --> 00:56:26.270

Michael Palumbos ChFC, CBEC: It's awesome



00:56:26.640 --> 00:56:29.829

Michael Palumbos ChFC, CBEC: cool. All right. Last



00:56:29.980 --> 00:56:42.579

Michael Palumbos ChFC, CBEC: question or 2. Here you're sitting in front of a panel of a hundred family businesses that are second generation, and they're all envious of fifth generation.



00:56:42.960 --> 00:56:52.580

Michael Palumbos ChFC, CBEC: What are you telling them are the 3 things that they should be focusing on to make you know that that transition from second to third.



00:56:53.840 --> 00:57:00.940

Dylan Rexing: you know. Ultimately, I think. I think you have to work hard. I think you have to be intentional.



00:57:01.310 --> 00:57:13.340

Dylan Rexing: To go from, you know, from 2 to 3. As I mentioned a while ago. I'm trying to go from 5 to 6. I think I have to be intentional to make sure that my kids want to do it, and that we have a healthy and thriving business. So I think you have to be.



00:57:13.490 --> 00:57:19.560

Dylan Rexing: You have to be intentional. You have to really think through it. I think you know one of the things that



00:57:19.930 --> 00:57:26.439

Dylan Rexing: that II struggle with to some degree, and I'm working to get better at it, is I. I'm in the weeds a lot.



00:57:27.240 --> 00:57:32.149

Dylan Rexing: and I think that folks around me some some, you know, maybe



00:57:32.430 --> 00:57:41.840

Dylan Rexing: founders of businesses going into 2 or 2 going into 3. Something that they may be better at than me is is disconnecting from the business and going to



00:57:42.270 --> 00:57:59.489

Dylan Rexing: whatever it is that helps them think through strategy, whether it's a a you know, an Eos driven or scaling up driven conversation with your group, a strategy, session, or reading of reading a different different books. Or what have you for me? It's it's it's going on vacation



00:57:59.540 --> 00:58:02.029

Dylan Rexing: and stepping away from the business.



00:58:02.090 --> 00:58:16.690

Dylan Rexing: trying to turn off phones and distractions. And just. you know, really sort of enjoying time with my family, and and it clears my head gives me the ability to sort of jump back in and and.



00:58:16.840 --> 00:58:18.890

Dylan Rexing: you know, be full of energy.



00:58:19.130 --> 00:58:21.510

Dylan Rexing: Number 3,



00:58:23.540 --> 00:58:46.130

Dylan Rexing: you know. I think I think you need to think through sort of goes back to the to the intentional one of our family business alliance meetings folks come to to listen to things like this. One of the things I thought was the most impactful was they talked about kind of being again being attentional to the next generation, but also like developing a a group of advisors



00:58:46.200 --> 00:58:57.200

Dylan Rexing: or a board some folks might call it a board for legality reasons. They're not afford their advisory group, or whatever I think you you know.



00:58:57.270 --> 00:59:01.660

Dylan Rexing: you need to have somebody from the outside.



00:59:02.050 --> 00:59:05.709

Dylan Rexing: That's not connected to the business



00:59:05.770 --> 00:59:15.200

Dylan Rexing: that can challenge you on strategy, and where you're trying to take the business. Because ultimately, I think sometimes you know, I think



00:59:15.270 --> 00:59:22.620

Dylan Rexing: from a from a being the the leader of our business. I sort of have my impressions, or I have the things in my head that I think I want to do.



00:59:22.710 --> 00:59:38.470

Dylan Rexing: and then, you know, I'll I convey that to our leadership team, so some of them will fight me on it, and some of them will row in the same direction. But ultimately, sometimes I think I'm I'm wrong. And I'm not ashamed to say that. And I think, having somebody from the outside for me, it's vistage



00:59:38.660 --> 00:59:47.099

Dylan Rexing: is going to decision having these types of conversations when something comes up, and somebody from the outside saying, Okay, well, wait a minute, Dylan.



00:59:47.820 --> 00:59:49.629

Dylan Rexing: Have you thought about



00:59:50.040 --> 00:59:56.729

Dylan Rexing: a B and C, I think, is is extremely important, but depends on the business. Right? If you're up



00:59:57.350 --> 01:00:00.959

Dylan Rexing: 10 person business and you're on a small retail store or



01:00:01.150 --> 01:00:08.650

Dylan Rexing: or restaurant or something, you're probably not gonna have a board of directors or advisory group at at that level. So it all depends on, you know.



01:00:08.860 --> 01:00:11.270

Dylan Rexing: Depends on the business, I suppose.



01:00:12.010 --> 01:00:12.820

Michael Palumbos ChFC, CBEC: Baba



01:00:13.500 --> 01:00:27.280

Michael Palumbos ChFC, CBEC: done. Thank you. Thank you. Thank you for sharing. This has been a a great conversation. There's lots of golden nuggets in here. For everybody to listen to, so I really appreciate your time today and thank you for sharing



01:00:28.140 --> 01:00:48.690

Michael Palumbos ChFC, CBEC: ladies and gentlemen. My name is Michael Columbus, with family wealth and legacy, and Rochester, New York. This has been another episode of the family business show with Dylan Rexing. I appreciate you listening, and we look forward to hearing you having you listen in on the next episode. Thanks, everybody. Have a great day. Thanks for having me.

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Michael Palumbos is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. Family Wealth & Legacy, LLC is not an affiliate of Lincoln Financial Advisors Corp. Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.