Successful restaurant owner shares his secrets at TD Ameritrade summit
How does making pizza relate to providing financial advice? What does manufacturing sporting gloves have to do with building a well-balanced investment portfolio?
A lot — if you're an independent RIA who owns his or her own business.
The 160 RIAs at the TD Ameritrade 2011 Elite Advisor Summit in Miami spent the morning getting tips from a range of successful small-business owners on how to take their businesses to the next level. The advisors at the conference work at firms that manage an average of $700 million in assets — large by independent RIA standards, but still small businesses. And while the operations of a pizza parlor or a apparel manufacturer are very different from those of an investment advisory business, some of the lessons are transferable.
"Our business is not about the product we sell, but how effectively we meet our clients' needs and how we create an environment where people want to work," one adviser said.
Nick Sarillo, for example, has been successful in the restaurant business — one of the toughest businesses in the country. Founded in 1995, Nick's Pizza & Pub in Elgin, Ill., now has two locations, employs 195 people and brings in revenue of more than $7 million a year. It is the sixth busiest independent pizza company in the U.S. Along with making a good pizza, Mr. Sarillo attributes much of his success to his ability to engage his employees. That's not necessarily easy, considering 70% of Nick's workers are under the age of 25. But in a business where employee turnover is typically 200% annually, Mr. Sarillo loses just 25% of his employees each year.
"I decided I wanted a company where people enjoyed coming to work," he said. It starts with the application process, in which his firm clearly articulates the company's purpose and values. If applicants like the feel of the place and the mission statement, they can apply for the job. Employees go through two interviews along the way, and from the start, Mr. Sarillo wants them fully engaged in the process. "We get them to pick the time for the interview right off the bat because we want them to take responsibility for it," he said.
The development and advancement of his employees also is largely in their own hands. Mr. Sarillo has instituted a "self-certification" process in which employees measure than own development from rookie to pro to expert in their job functions. "They own their own development," he said.
Gary Schloss, president of Tabar Inc., also puts a high priority on employee satisfaction and fulfillment. His company, which produces gloves and accessories for private label companies, was ranked one of the top 10 companies to work for in the industry by Outsider Magazine. "People bought into the idea that what's good for the company is good for them," Mr. Schloss said.
The buy-in by employees is in part a result of his willingness to delegate responsibility. He also believes the most important thing to look for in employees is not their skills but their attitude. "People can always develop skills. Their attitude is much more important," Mr. Schloss said.
