$ales to CEO

Side Hustle to Success with Dave Rieth

Jon Bartos Season 1 Episode 2

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0:00 | 29:22

In this episode, Jon Bartos and Dave Rieth talk about the journey from starting an executive search side hustle while working at an extremely demanding sales position to creating a legacy of success in not one, but two thriving family businesses.

Stop taking a commission check. Start signing the paychecks.


Mentioned in this episode:

To listen to Chris Rosenthal’s episode: https://www.buzzsprout.com/2589438/episodes/18554972

To learn more about The Entrepreneur’s Source: https://entrepreneurssource.com/

 

Memorable Quotes:

“You kind of find a balance of either feeling really good about what you’re doing or making a lot of money and this was an industry [executive search] where I don’t have to pick one. They just both keep going up.” – Dave Rieth 

"In this business, there are ways to slot in different personalities into your business as an entrepreneur and you don’t want carbon copies of the same person over and over in your organization – you want that variety. Your responsibility is to identify how do you set them up to succeed based on what you’ve learned from their personality and their skills.” – Dave Rieth


About

Dave Rieth is the President of Supply Career, a Cleveland, Ohio-based recruiting firm specializing in connecting talent within the home-services and industrial sectors, as well as Blue Recruit, which specializes in talent for aviation, aerospace and defense. With a background rooted in business development, team development and workforce growth, Dave has built his career around helping companies solve one of their toughest challenges, finding and keeping exceptional people.

Visit the Supply Career website
Visit Blue Recruit

Connect with Dave on LinkedIn https://www.linkedin.com/in/david-rieth/ 

 

About Jon Bartos

"Starting my own search firm in 1999 was both the most challenging and rewarding decision of my career. It gave me the freedom to build a business on my own terms, while still being present for my family, a balance that changed my life.

 Today, as CEO of Dimensional Search, I’m proud to lead a platform that empowers entrepreneurs to experience that same freedom and success. With global resources, proven systems, and a network of like-minded owners, we provide the support you need to build, grow, and scale a thriving search firm."

 — Jon Bartos, Chief Executive Officer, Dimensional Search
Chief Investment Officer, Starfish Partners
Senior Partner, Sanford Rose Associates
Senior Partner, Next Level Exchange

Connect with Jon on LinkedIn

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SPEAKER_00

Welcome to Sales to CEO, hosted by business veteran John Bartos. This is the podcast where we guide you from top-tier rainmaker to business founder. Stop taking a commission check. Start signing the paycheck. This is Sales to CEO. Here's your host, John Bartos.

SPEAKER_02

Are you a successful sales professional tired of building someone else's dream? Are you ready to use your unique skills, your drive, your network, your ability to close, to build your nest egg, and by starting and growing your own empire? Well, no matter where you are in your sales career, there is opportunity for you, either a side hustle or full-time, to achieve the vision by owning your own business. Welcome to Sales to CEO. I'm John Bartes. Now, this is a podcast, everyone, hosted certainly by me, who's been a sales professional all my life, not only a sales professional, but also a sales manager. And we're going to cover everything from finding the right business model. We'll cover everything from finding franchising, looking at franchising, startups, financing your launch, leveraging your sales network for a massive success, and finally building wealth and equity for yourself. But not your employer for you. And along the way, we're going to bring guests on this journey, give you insight on how they experienced it. Now, stop taking commission checks and start signing paychecks. Get ready to flip the script. This is sales to CEO. So I'm John Bartos, everybody, and I'm excited about this episode of Sales to CEO because we not just only have a sales professional who started their own business, we have a sales leader who managed teams, who started doing his business part-time, then became full-time. And I'm I'm really excited to share with you our next guest, which is Dave Reith, president of Blue Recruit. Dave, welcome to Sales to CEO.

SPEAKER_01

Appreciate it, John. Thanks for having me on.

SPEAKER_02

You betcha. Hey, uh, I'm really excited about this because um the first episode we had Chris Rosenthal, who was a superstar sales professional in financial services, and the transition that he made. And now not only were you a phenomenal sales professional, but not only that, you were a sales leader for 13 years. Let me give you a little bit about Dave's background, everybody. He's been selling for over 20 years. Uh his last gig was infrastructure infrastructure rehabilitation, uh, or really for the construction industry. Um 13 years, uh, both customer facing as well as sales leadership. Out of Hinckley, Ohio, certainly Dave Dave Reef. Dave, if you don't mind, um let's just start chatting. Have you always wanted to start your own business? How did this even come up?

SPEAKER_01

Yeah, so I think for me, yeah, I I think everybody that spends enough time working in other businesses thinks to themselves, man, I wish I could call the shots. You know, I I I would do things a different way if I was if I was calling the shots. So for me, uh it was it was something that my grandfather was an entrepreneur, my father was an entrepreneur. Uh so definitely seeing what it took uh you know appealed to me. And at the same time, maybe you know had me a little hesitant because I did see what came along with uh with being an entrepreneur, the good and the bad. But I had reached a point that I felt that not that I had learned everything, but I had learned enough to to have the confidence in myself that you know what I could go ahead and and pull the trigger and and go ahead and and start this business.

SPEAKER_02

So I'm I'm going back to the story here real quick from your background. Um you started looking at potential opportunities. Were you always looking for opportunities uh as to you know do a side hustle first, then full-time? Tell me that journey you went through and what you were looking for, and how'd you find out about it?

SPEAKER_01

Yeah, I think that you know the side hustle piece is so, especially in culture today and and the and generations nowadays, if you're not doing a side hustle, you're you're almost in the minority nowadays because it's just so popular, it's such a such a gig economy. So uh, you know, for me, I was actually approached by someone in the entrepreneur source who their timing couldn't have been better. You know, I I truly was one of those candidates that they called me at exactly the right time. I had probably just had a very frustrating day and couldn't be more excited about about the conversation we scheduled to have. Uh, you know, went through the process of looking at a number of different opportunities for for you know owning my own business. And at the end, you know, I I I decided to do what I'm doing now, and that's that's start my own recruiting business, you know, working working with dimensional search.

SPEAKER_02

Yeah, and for those uh listeners out there who don't know the entrepreneur source, it's such a unique organization. What they do is establish a relationship with somebody potentially looking for another opportunity, starting their own business. Not only do they spend a lot of time uh with the individual prospect, but they test them, right? They test them, they understand what their dreams are, take a look at their finances. And at the end of the day, Dave, correct me if I'm wrong, but don't they provide you like three business opportunities that based on what you're looking for are perfect fits? But it doesn't stop there. TES will and the entrepreneur source will also help you with financing, they'll help you get it all get off the ground. I mean, all of these things. Just what did they do for you, Dave?

SPEAKER_01

So that's absolutely right. So they really honestly it got to a point where they were gathering so much data from me and providing so much feedback that I was like, okay, yeah, look, you really know me. And and there were some things that they sent back to me that I was like, you know what? I never really thought of myself that way. But now that you actually spit that back at me, you're I think you're right. I think that I think you actually might have helped me learn something that I that I didn't know about myself previously. So they did a great job throughout that process, presented me with uh three different franchise opportunities. Those opportunities um they they definitely had commonalities. They they varied in in what the business is, you know, what industry they were in, things like that. But common common requirements for skill set, absolutely, for those those three options. So at the end of the day, you know, I really decided that uh that the recruiting was was the way for me to go.

SPEAKER_02

Yeah, and and uh one more thing about TES. Uh uh an organization I've worked with now for six, seven years, and probably uh very high values. Matter of fact, the reason I love TES, the entrepreneur source, is their values matches there. They really care about their people, they care about their people's success. This is not about selling something, it's about taking them through a journey and realizing what their life could be like based on a match of personality skill sets and the right business opportunity. So it's really pretty magical, uh really what happens. And I've seen hundreds and hundreds of people go through the same process. Let's jump into because I know you did this part-time, and it's so difficult to have a side hustle and then become full-time. Talk to me about that transition from side hustle and then how long it took. What did you learn? Uh what did you have to do? Because you're living a life, you've got kids and a wife. First of all, go ahead and share a little bit about what you have at home as well, if you don't mind, but then what you had to do to get this up and going while you work your full-time job.

SPEAKER_01

Sure. So when we got everything started uh probably about two and a half years ago, I say we, because at that point in time, uh, you know, my my wife and I definitely had to team up on this. Well, I was fortunate in that at the time, you know, she was a stay-at-home mom. Uh, she was able to, I think, probably assist from an encouragement standpoint, assist with uh the accountability standpoint, helping to keep me accountable to commitments I would make to continue to grow the business, uh, while also handling her all-day position of uh handling our then four and seven-year-olds. So uh those two individuals are now seven and ten. And uh, you know, she has since moved on into a teaching position at their school. So the evolution for me up front was or I'm sorry, the the beginning was really a matter of mastering my time and holding myself accountable, having her hold me accountable, and not negotiating against myself. So I equate it to those individuals that, you know, including myself, that put together the perfect diet and exercise routine on Sunday, and by Monday lunch, uh they're having a candy bar. And, you know, you negotiate against yourself, you convince yourself that even though when you were thinking clearly and you didn't have to actually execute on your commitments you made to yourself, uh you, you know, you it's okay. It's okay. I gotta cut myself some slack. I'm being too hard on myself. Uh, but really mastering that, no, I I may be exhausted, it may be the end of my workday, it may be the evening, and I just want to shut it off for a little bit. But I committed to this business, to growing this business, knowing that it was gonna be difficult while it was a side hustle. It was gonna require a lot of a lot of time at a lot of hours that I uh at times when I was used to relaxing and I was used to shutting it off. And I knew that it was worth the investment of that though, for the payoff to get to where I am now. For sure, for sure.

SPEAKER_02

And then so everybody knows your situation, Dave. I mean, the reason why um a side hustle was important for you, uh, number one, you you're uh leading an organization that was doing extremely well, all right. Two, your income was way up there, you know, amongst the half a one percent or whatever it is that folks make. So that money, and it's so difficult to certainly walk away from that. How long did it take for the transition? Because you know, I I know it's tough to pull two two sleds, two wagons for anybody. It's very, very difficult. How long was that transition? Was it expect did you hit your expectation? When was the decision made to go full time? All of that's important to everybody.

SPEAKER_01

Yeah, so it was a pretty simple mathematical calculation that helped me with determining when that was the right time to make the decision. The the road to get there was not simple because it, you know, as I said, you the key to being an entrepreneur and the hardest part of being an entrepreneur is that consistency. The the mornings when it's like I I just don't have it today. You know, when you're when you're in a salaried position collecting a paycheck, you can probably get away with some of those I just don't have it today days and get by and and stay employed. As an entrepreneur, if you don't do it, it doesn't get done. So those days that you just don't have it, well, it looks like the company doesn't have it today either. So it was a year and a half of understanding that, uh, you know, and and getting a uh uh sharpening of skills for running the business, the discipline required to stay consistent, the skills to execute as a recruiter and and understand what that process looks like, both on the candidate and the client side, and then evolving that into consistent revenue and consistent growth. And it really I I told myself that okay, based on my time invested in my current role, I am making this. Based on the time invested in the business, which is a side hustle, that's evenings and weekends, I'm making this. As soon as the the monthly hits this number for, let's say, three consecutive months, I don't have a decision to make. It's it's this is just going to happen because that that number was attained, and therefore I'm costing myself money by keeping this my side hustle.

SPEAKER_02

Right, right. And and then I want to mention something for everybody out there financing today of a new business. One of the biggest concerns when you look at research is how the heck am I going to finance this thing? I don't have the money to start a new business. It's like buying a car today, everybody. I mean, almost 98% of businesses, finances that are started are financed. And they can finance these businesses in so many different ways, so it's very, very painless to actually actually do. Um, Dave, did you finance this thing or or just paid cash for it?

SPEAKER_01

Well, I was fortunate enough in that the timing uh of some funds allowed me to pay cash. However, uh those funds at the time that I was dis making the decision to get into this uh were were not there yet, were not guaranteed by any means at that point in time. And so therefore I did go through the full process of exploring financing options. And as someone who had never owned a franchise before, had never gone to borrow money to start a business, uh, I was pleasantly surprised at how not intimidating it was once you actually got into the conversation. Uh, you know, it was it was not you going and acquiring, you know, a home or or something like that. It was actually people that were, selfishly or not, quite supportive and quite motivating when talking to these lenders for helping you start your business. Of course, there were some questions that you needed to be prepared to answer. Uh, but so long as you really came in with what you believed to be true, it was it was a really painless and and pretty motivating process.

SPEAKER_02

So I want to say on in in uh at Dimensional Surge, which is the organization I I run, where probably ninety percent of the people are using a 401k or IRA to to uh fund their new businesses. And what they're really doing is borrowing long-term funds for short-term use. Um and it's there is no qualifying. As long as you've got a 401k or IRA, there is no loan applications you're putting in.

SPEAKER_01

And I have to say, looking back, that probably would have been the smarter business decision rather than laying out the cash like I did. That would that probably would have been the smarter business decision, but it was here's what I tell everybody, Dave.

SPEAKER_02

I say, uh, you know, if you got a bunch of money in a bank, keep it there. Use it, it's yours. All right. You're not gonna touch that long-term income until you retire anyway. So what do you when are you gonna retire? I'm gonna retire at fifty five. How old are you? I'm 30. Okay. You have time. You know, you have lots of time before you're gonna need that money. So you can borrow a little bit now at virtually zero interest. If you get interest, you pay yourself back. I'm telling you everybody, it's the number one way people are starting a business today. And I will probably do in the next two or three podcasts a podcast simply on the Robbs 401k government program rollover that allows you to start any business with your 401k and pay yourself back with interest, so you're making more money on your 401. Uh, but it gives you certainly that ability to have have the can financial bandwidth to do your dream. You know, and it really is out there. Let's change topics a little bit here, if you don't mind. Uh income goals. All right. I know you you had mentioned that until you reached your income of where you were before, um, you know, you weren't going to make the switch over. And it took about a year and a half because if you're only doing the business 25% of the time, it's gonna take you a little longer than normal to get the business off the ground. Um, now that you realized your income goal, do you see North? Do you see the North Star after that? You know, from an income perspective.

SPEAKER_01

Yes, and it is it's one of those things that I d I always thought the phrase of being afraid of success was a really stupid phrase until I started to experience it. And I started to see uh, you know, financial success that that I had not envisioned previously, um until I was a you know, I started to to be around it, to attain it myself, to be around other individuals as well that had attained it. And I saw, oh wow, this is actually what they're saying. And I wouldn't say it's a fear, but there's a little bit of intimidation of I'm not I'm not that person that's qualified to be making this amount of money. This is what is what am I doing here? This is ridiculous, until until I got to a point where okay, I I I am doing this and I am sustaining it. And and so, yeah, so that's that's been something that's been been really incredible.

SPEAKER_02

Yeah, and and and most of the folks out there realize that most of the wealth in the world are because of business owners, not because they work for somebody else.

SPEAKER_01

It's and it's absolutely true.

SPEAKER_02

Yeah, and you know, when you get around with other business owners, you know, some of the conversation that comes around is you know, tell me about the first year you made a million dollars a year. You know, you don't have those conversations for folks who work for somebody.

SPEAKER_01

You don't it's it's a r it's it's an incredible rarity. You're absolutely right there, and and you know, it's it's funny because it seems like such an intimidating number, but uh a lot of a lot of you know, whether it's guys like us, you know, uh women out there watching, you know, whatever they may be watching between athletes and actors and actresses, whatever it is that you see out there, taking the money that you're hoping to make and comparing it to what they do make for sure. Okay, I'm actually asking for a pretty small piece of the pie in uh and attaining, you know, numbers that I never really imagined I'd uh I'd ever be making.

SPEAKER_02

Now let's let's transition a little bit over to uh you picked the recruiting and staffing industry, and Blue Recruit your firm just knocks the cover off the ball in a couple different areas. So let's talk about Blue Recruit a little bit now, the size of your scope, how many employees you have, what they do, but also talk about why you chose the recruiting and staffing industry.

SPEAKER_01

Sure. So we have a team of four, including myself now, and what we had, you know, uh our focus is aerospace and defense. We uh have evolved that focus uh as far as aerospace interventions is is obviously quite broad. So we have drilled that down, you know, into into more deep niches inside the niche to to to really narrow that down. For us, well for me personally, what I found with the recruiting industry was I I didn't personally feel I I've always right or wrong, viewed when I was selling something, all right, how good do I feel about selling this? How good do I feel about selling this? Fortunately, and I've been very fortunate in my sales career, I really never sold a product that I didn't have confidence in. But it wasn't until I got into recruiting that it while it's not philanthropic, you certainly are a for-profit business. I I didn't identify a bit uh an industry where you could make as much money as you can based very much on your inputs and your willingness to to commit to the business, but also have such a such an emotionally and mentally satisfying product, if you will. And that is, you know, bringing great job opportunities to great employees, or bringing great employees to great businesses. And still to this day, you know, I was just on the phone with a candidate uh, I believe about two weeks ago. It was after the holidays, and he called just say what a great Christmas they had, and a big part of that was because of the bump in compensation he has from a job opportunity that I brought him that has been a great fit, and he wasn't traveling, so he was actually home for a couple weeks to spend the holidays with his kids and his and his wife. So I you you you kind of find a balance of either feeling really good about what you're doing or making a lot of money, and it was this was an industry where it was like, I I don't have to pick one. I could I could just both keep going up.

SPEAKER_02

Yeah, the recruiting and stabbing industry for sales professionals is a really great industry. And and and for those of new me, I I've had three search firms grow, build and scale, and sold all three search firms because the sales skill sets you need, everything from prospecting to relationship building, consulting, gap analysis, I mean, all of those things work very, very well. And the greatest thing about the recruiting and staffing industry is you can stay in the industry you love that you've been in forever. So you got your old buddies you're helping and working with the companies you want to work with. And uh and the great news about the recruiting and staffing industry is you can grow, build, and scale, and develop a company where you can sell it and buy your island in Fiji at the end of the day, or stay small and just have a blast, make the kind of money you want, travel the world, whatever whatever your heart desires. Now, um I want to go into free time because most people think when you start your own business, you get rid of free time. No, you didn't have any free time, Dave, obviously, when you pulled two wagons. You just didn't. Yeah. You you were you were doing your firm and infrastructure, and then you're doing recruiting. That's two jobs at once. So let's talk about that transition. Once you started doing this full time, what happened to your time? You know, did you have more free time for the kids? I mean, what happened?

SPEAKER_01

I did. Uh, you know, football has always been a passion of mine, and I was able to commit to being the head football coach for uh for my son's, you know, fourth grade team, which was something that previously I was not able to do. I was traveling 50% of the time, you know, wasn't able to make that type of commitment. That's probably the one that sticks out to me the most. Uh, there are both good and bad. Uh, my wife will tell you she was terrified of me going from 50% travel for our entire marriage to being home on a consistent basis.

SPEAKER_02

She's scared to death.

SPEAKER_01

She she was like, we're gonna find out if if we like each other, I guess, for over the next you know, year or so. So fortunately, that's worked out. Uh, and then I will tell you, I yeah, we had a great summer. We enjoyed the heck out of the summer. We did uh did a family road trip, you know, had that great time. Uh you know, it's not without its its its downs as far as you will have that free time and you For better or for worse, get to determine just how much. So be conscious of uh of not overindulging in free time. But uh but yeah, the the I don't really like to call it free time versus freedom of my time. I am free to do whatever works the best for me. I need to make sure that I'm putting in those hours to grow the business. For your business, but I have the freedom to do it with whatever flexibility I feel that I can pull off while still, you know, without hindering the growth of the business. For sure.

SPEAKER_02

Yeah, and I think that's the biggest miscon misconception a lot of people have of starting their own business is that, oh my gosh, I'm starting my own business, I'm never gonna see my kids again, you know, and I'm gonna work my tail off. Believe it or not, um, in most folks who start their own business, yes, the first three to six months is gonna be a grind. It's good like going through law school or medical school. Nobody ever said, hey, I want to do med school again, or let me go through law school one more time. Nobody ever said that. That's just like owning your own business. You got to go through business school. But after that, believe it or not, most people will realize that they have 25 to 40 percent increase in free time when you work for yourself. It's a big deal because that's the biggest misconception out there. Not that beginning, because you don't know what you're doing yet, you got to get it off the ground. Uh but after that period, it's just uh just a really, really cool. How about jump on Dave words of wisdom for other sales professionals in your situation? You know, they're they're they want to start their own business, but there's risk, man. There's risk out there. And how do how you know, talk somebody off a ledge? How do how do you do it?

SPEAKER_01

Sure. So for me, and I think of this from two sides. So the skills that I learned while working in a position that you know largely was based on my inputs and and then the outputs from my actions, that you know, commission-based uh positions, things along those lines, that really helped me mentally emotionally prepare for being an entrepreneur. So I I realized, you know, I gotta be out there hunting if I want to eat, if I want to eat as a as a sales professional. And the more I'm willing to go out there and hunt, the better I'm willing to get at hunting, the the better I'm going to eat. So that really has transitioned very nicely over to uh to this side as far as being an entrepreneur. The other piece that I have found is my time as a sales leader. So leading those teams, the I will not say that being a recruiter is is purely a sales game or anything like that. No, you could I've seen people from all walks be phenomenally successful at it. But I will say that my time leading sales teams has really helped me with leading my team because of my desire for them to be outgoing. And also, I find that as a sales leader, you come across some pretty unique personalities and you identify that, hey, this guy over here might rub a lot of people the wrong way, but his customers absolutely love him. So so long as I just keep him focused in, blinders on, on taking good care of his customers, he's a great asset. If I allow him to wander and vent to coworkers, maybe that's not the best, the best. But but understanding in this business, there are ways to slot in different personalities into your business as an entrepreneur, and you don't want carbon copies of the same person over and over in your organization. You want that variety, and then you know, your responsibility is to identify how do you set them up to succeed based on based on what you've learned from their personality and their skills.

SPEAKER_02

Yeah. And and then um, Dave, I know you're you're three, four years into your business, you're growing it. W what's the vision for Blue Recruit? Where are you taking this thing?

SPEAKER_01

I am a very systems and processes oriented individual. So I, through the the the help of Dimensional, through the help of of other individuals that I communicate with, have really focused on what does that look like from a scalability standpoint. So putting that system together, Dimensional has been fantastic at identifying how to put that system as well as putting what parts of my personality and my preferences I put in there, and really just continuing to scale that. You know, our hopes I continue to maybe on an hourly basis determine mentally whether or not I ever am going to retire. The one thing I do know is that I'll be able to, but I'm having so much fun with the scalability, and I'm so curious on where I can take it to, and I'm hoping that one of my children shows a real interest in uh assisting when they become of age. And so the the the future goal is, you know, I can't assign a number to it, but I not to sound greedy, but the future goal is more. Year over year. I love it. It's it's more.

SPEAKER_02

Yeah, yeah. And and it's interesting about you know the recruiting and staffing industry because the different sizes you get to is a different learning experience. You know, you know, you do it in a lot of it's you in most businesses when you start off, it's you initially, and then you start adding people and you're you're taking some of the duties off you so you can actually lead and manage the business. Eventually, you're just leading and managing and you're no longer doing. And every single function and in let's say stage of the business life is interesting in a new learning experience. I just want to say, Dave, hey, huge congratulations to you. Uh, not only being a top producer in the recruiting and staffing industry, but growing, building, and scaling a business and doing it initially part-time. So huge congrats. How can people get a hold of you, Dave, if they want to get a hold of you?

SPEAKER_01

Sure. So you can head over to recruit.blue, our site, and reach out to me there. Uh you're welcome to. I'll be happy to throw out my cell phone here. I don't see why not. 216-410-3984. Give me a call, shoot me a text. Uh, you know, you you learn as an entrepreneur to fall in love with that phone, so that's probably the best way to get a hold of me.

SPEAKER_02

I love it. No, thanks, Dave. Uh, huge congratulations on how you're growing your business, and thanks for being on sales CEO. If you guys out there, sales professionals looking at doing another business and looking at potentially the staffing and recruiting industry, give us a shout. Let me dimensional search. We got to 100 franchises in less than two years. We're the fastest growing franchise in the recruiting and staffing industry. We are bringing in sales professionals who are knocking the cover off the ball and realizing their dream in this wonderful business of recruiting and staffing, to own your own business. Thanks for joining us, sales to CEO. I'm John Bartos. Good luck and good selling.

SPEAKER_00

Thank you for joining us for another episode of the Sales to CEO podcast. If you enjoyed the conversation, please share the episode with other new entrepreneurs, leave us a positive review, and subscribe to Sales to CEO on Apple Podcasts or wherever you listen to podcasts. Sales to CEO is hosted by John Bartos, produced by Erin Bartos, and managed by Laura Novak. We're happy to support your journey as you start building your own business.