Ep464: Ted Clouser – Lead, Don’t Manage Your Business

Andrew Stotz 00:02
Hello fellow risk takers and welcome to my worst investment ever stories of loss to keep you winning in our community we know that to win in investing you must take risks but to win big you've got to reduce it. Join our community to claim your podcast listener discount on my valuation masterclass Boot Camp, where students learn how to value companies like a pro and advance their career. Go to my worst investment ever.com to join the community for free fellow risk takers. This is your worst podcast hosts Andrew Stotz, from a Stotz Academy, and I'm here with featured guest, Ted Clauser. Ted, are you ready to rock?

Ted Clouser 00:45
I'm ready, Andrew.

Andrew Stotz 00:46
Yes, let's do it. Well, I'll introduce you to my audience. Ladies and gentlemen. Ted started in technology at the age of 16. When he formed his own computer business in 1996, he joined PC assistance of Little Rock, and he and his wife purchased the business in 2018. Within a year, Ted rebranded to PC a technology solutions, and has expanded to a total of three locations, passionate about both people and technology. His firm focuses on cybersecurity IT consulting, and professional services, managed IT services and voice over internet protocol. married in 1998, to Stephanie Ted has a daughter at the University of Alabama and his son, who is recently entering Scotland prep in Pennsylvania. Ted, take a minute and filling for the tidbits about your life.

Ted Clouser 01:44
I appreciate that wonderful introduction, Andrew. You know, one other tidbit is I actually grew up on a dairy farm, ironically, in central Pennsylvania, where my son is now relocated to finish his senior year, that was totally coincidental. And I did whatever a wonderful young dairy farming kid did that cannot grow or fix anything. And that is I left. And so I looked for an opportunity elsewhere where I could try to use my talents wisely.

Andrew Stotz 02:10
And for those people listening that never been to Pennsylvania, I mean, it's a lot. It's actually a really beautiful country. And I know, my ancestors from Germany settled in Pittsburgh, but I know that a lot of agricultural type of people went to Pennsylvania. And you know, there's all kinds of types of farms in the lake. But so it's not surprising to hear about a dairy farm. But I'm just curious, is it true that, you know, you got to wake up at the crack of dawn or someone else do all that?

Ted Clouser 02:40
Well, it is true. You know, I didn't wake up at 6am shift like my older brothers did, but I was usually out there by 630 to do some chores before heading off to school. So definitely, it's a lifestyle for sure.

Andrew Stotz 02:55
It's interesting, because we're seeing so much more consumption of milk and meat here in Asia. And so we're seeing a lot more farms coming up and that type of thing. And kind of goes back in time, in some ways. Yeah. So Well, now it's time to share your worst investment ever. And since no one goes into their worst investment, thinking it will be. Tell us a bit about the circumstances leading up to it. And then tell us your story.

Ted Clouser 03:24
Absolutely. So ironically, my worst investment ever is the company that I am the CEO of today. And so this all began back in 1996, when, as part of my intro, Android eluded, I joined a company called PC assistance. And I was employee number five, somewhere along that realm, and really was fortunate enough to spend my entire career at that organization. So somewhere around 2018, the founder and CEO Ben Thomas had decided that he was ready for an exit strategy. So we began the conversation. And I was executive vice president at the time, we had over 20 employees, things were very successful. And through the process, it seemed like a slam dunk. This seemed like a perfect transition. It made complete sense a little bit. I know that over the course of that transition, I would learn all the things that people tried to tell me about the transition and the changes that would occur as I went from VP to President and CEO. What's interesting is that I was adamant that nothing would change because I acted like a president and CEO. So it was going to be a smooth transition. So let's go back during the process 2017 prior to that purchase, you know, I've been married for almost 23 years, so I knew obviously I needed my wife to be a part of the process. The problem was that I didn't allow her to be a part of the entire process. I allowed her to really support me through it. And say, you know, it sounds like you thought of everything, and I and I tried to get her advice, but I really didn't allow her to walk through the process with me. I also didn't really listen to the advisors that tried to tell me that I needed to prepare for that transition. I kept standing, I'm a man of faith. So I kept standing on the fact that God had aligned at all and set it up to be a perfect transition. And in hindsight, he did. It just wasn't for the reasons that I thought. So fast forward to January 1 2018, when we took over ownership, it was great, I was on a high things were really beginning to fall together. And I felt like it was a dream come true. And for about six months, it was and then the nightmare began. And what really began to unfold over the course of about 20 months after that was an identity crisis, and a state of depression, and a complete changing of who I was as a person, as a result. And what I learned through it is that I had built a company, over 20 years, that was completely dependent on me, it did not have any foundation, it had no processes, the processes were asked to read. And what I realized is that, that then took all the value away when I stepped back and tried to fill a different position. And so we had a 20 plus year old company that really was a baby, it might have might as well have been an organization that had started six months ago. And during that process, I also recognized that I had an unhealthy identity with the organization that I really saw myself as PC assistance. And as I stripped that away, as I moved into a president and CEO role, when I tried to run the company, I tried to be the vision caster instead of the guy that did it. It really changed who I was. So during that time, I also turned 40, I had a daughter that went off to college, I celebrated 20 years of marriage. So I'm going through all of these massive life changes, while I invest in this company, and go immensely into debt. Oh, by the way, I also bought a building for the company as well. So it was everything that I could do simultaneously. And so building

Andrew Stotz 07:36
as a result of that transaction, or that was an another decision that you decided to do.

Ted Clouser 07:40
It was a separate decision, because I wanted to just start off new and this was a way to really separate it. And this was going to be Ted's, the new CEO, and this is going to be amazing. Well, as I've shared, I'm a man of faith. And so I firmly believe that God was instrumental in the decision. But what I now know is that that six months after that transition occurred, I went into just a massive state of depression, and we're talking about by three o'clock in the afternoon, I was in the bathtub, I would, I would be unable to get out of bed in the mornings, I was just in this constant state of fear, and it and it began to consume me, I was literally fearing about things that might happen 18 months in the future. And over a course of that 18 to 20 months. It I mean the company, I'm so thankful for the people that were alongside of me and that organization, certainly my wife, who also is our Chief Brand Officer, our COO, they really rose up and carried that company when I just couldn't function. And, you know, I'm very thankful that we've come around and we're in a much better place. And I've been able and quite honestly the pandemic changed a little bit of that, because I I battled for 20 months of feeling like a failure, like I had put us in this predicament that I was watching all of the things crumble around and I felt responsible. Well, the pandemic, as awful as it was felt like a level playing field again. So it changed. I was already on the back end of it, fortunately. So I'd struggled with it for 18 months. But it allowed me to come back. And we really began then to focus on building up a stronger foundation than we ever had, which has put us to where we are today. And the reason why I say it was that worst investment is because all of that stuff should have been done in the first place before the company was purchased before I took it on that foundation should have been built. And unfortunately, I'm the reason why it wasn't. I was that person that wanted my hands on everything. And I feel hold myself off of that control. I didn't need processes. I didn't need documentation, I would take care of it all. And that is what made it the worst investment ever.

Andrew Stotz 10:12
Yeah, there's so much to this story that, you know, I think touches all of us. But let's first ask, you know, what lessons? How would you describe the lessons that you learned from it.

Ted Clouser 10:24
I have surrounded myself with advisors through this process. And that is where I went wrong. I didn't rely on my wife the way that I needed to, I didn't allow people to walk me through the process. I didn't have business coaches, to even the transaction itself, I really, I really championed that whole thing. And I guess in a sense, rodeo did, because I didn't seek the counsel that I needed to really think through and plan for the things that I was about to enter into.

Andrew Stotz 10:56
I'm just gonna grab a book off my shelf here, because it made me think of it, okay, if I get a stretch over there, because I got my headset on and all that, but this is one of my favorite books. And you may have heard of it as a Man Thinketh by James Allen. And this book was published in 1903. But what makes this book quite interesting is if you, if you can see on the inside of there, I'll show it for people are watching the video. It says no, it says today from Dad 1954. So my grandfather gave this to my father and my father gave it to me. And there's a passage in it that I just want to read, that I put up on my wall many years ago when I was going through a very fearful and stressful time. And James Allen wrote this having conceived of his purpose, a man should mentally mark out a straight pathway to its achievement, looking neither to the right nor the left. doubts and fears should be rigorously excluded. They are disintegrating elements, which break up the straight line of effort, rendering it crooked, ineffectual, useless. thoughts of doubt and fear never accomplish anything. And never can. They always lead to failure. And, you know, what, first thing that I think about, you know, is that whenever we make a big move in our life, there's doubts and fears. And in fact, you probably needed more doubt in fear prior to doing the transaction, because that may have motivated you to say, Okay, I need to do more. But there are I know, for the listeners out there now is a time of doubting fear, about our jobs, about the future about what's happening around us about people getting sick, all of this stuff. And so we're living and then of course, we have thanks to our media all around us. They're pumping down in fear into and the natural reaction when we get overwhelmed. That is, yeah, I mean, to metaphorically climb into the bathtub. Right? And I know for me many times, I've just gone into my bedroom and just say I'm going to bed mom. You know, she's like, well, it's 630 at night, and I just, I can't take it anymore. Right? Also doubt and fear has brought me to my knees during the crisis, where I kind of had to reconnect with my own higher power, to get strength to get through it. So that's one of the things that you made me think about is, you know, doubt, doubt. And fear can motivate us at times, but ultimately, to be successful and get through things. We have to put those things aside somehow. Now, the second thing is that I wrote down the word listen, and you were saying that you didn't really bullied, listen. It's hard to listen. And my biggest lesson for listening for the listeners out there is get a piece of paper and a pen. Because you can't talk when you're writing. And when other people speak, shut up and write down what they're saying. And challenge yourself to only ask questions and write it down. So that's the second thing. The third thing is I wrote down. I wrote down. Are you mean to listeners out there? Are you telling the whole story? When you're talking to a friend, when you're talking to your wife or girlfriend, a father, a cousin, a colleague? Are you really telling the full story? You're probably not ladies and gentlemen, because even if we wanted to, emotionally and mentally we sometimes don't even have the capacity to remember or think of the story in a clear headed way. So this is really a challenge. to everybody out there that you need to tell the whole story. And as the only way that you're really going to get the full advice. And that means you've got to really, really trust. Alright, there's more. But wait. But wait, there's more. Ted, I've got a new saying for my listeners out there. And that is, don't ask Ted. And only, yeah, my meaning to this is that if you have a situation where everybody's saying, you know, go ask Andrew, go ask this guy, because he's, you know, you know, that you now are building a business on one person and not on systems. So I really want to, you know, if everybody's coming to you, and asking you things, you got to start to ask, you know, don't say, Don't ask me. Don't ask Ted, you know, don't ask me. And then the last thing is, I say, when you take over business, particularly when you start build the damn cash flow, yes, build the cash. Cash, cash is not King. Cash flow is king, because cash flow builds the cash stockpile. And when you're already in a Trump culturalist nuff time when you're taking over a business, don't invest in anything, build the cash flow, and then that gives you some peace of mind. You have this warm blanket of cash flow to comfort yourself in your tiny doubt. Indeed, that's five things I took away from this story. Ted, is there anything you would add?

Ted Clouser 16:39
I know that's a great takeaway, Andrew, you know, the one thing I guess I might add is, is my business coach and beginning did give me an acronym for fear. It's false evidence appearing real. And it's certainly very true. And quite honestly, some of those things that I feared in the future did happen. But guess what? I'm still here. And as I went through the process, part of it is, you know, I've started, go win the day mantra. And where that really came about was my own self need. I remember towards the end, as I really had gone through everything possible. I really exercised everything I could to try to get myself out of that state of depression. My lovely wife said to me, alright, so what's the worst thing that can happen? I said, Well, this, this, this and this, and she goes, Oh, that sounds bad. Then what? Oh, well, then this, this, this and this, and that's going to be awful. And she goes, Yeah, that would be terrible. Well, then what I go, what do you mean, then that's awful. She goes, it is, well, what's the worst thing that can happen? So we'll, that's it. And she goes, Okay, the way to work out of this is one day at a time, you've got to go win today. Make it successful. Don't worry about tomorrow, you're going to get out of this one day at a time. And so as I've tried to really focus on this whole go win the day attitude. That was for my own self preservation as much as anything, because in order to get myself out of this constant fear of what might happen, I had to look at winning every single day, I wanted to put it in chunks that I felt like I could accomplish, and I felt like I could win a day. I didn't think at that time, I could win a month, certainly not a year, but I could win the day. And so that turned into the beginning of my getting back to where I am now.

Andrew Stotz 18:31
win the day, one day at a time. I'm also reminded of a song by Soundgarden called fell on black days. And in the lyrics, you know, he's talking about, you know, fear. And it says, What whatsoever I feared, has come to light. And what whatsoever I've fought off became my life. And he says, another one is he says, to what you want and to see good, has made you blind. And what you want it to be yours has made it mine. In other words of it, the fear, holding on to things tightly. This is how we lose things, not gain them. So Wow. So much to learn. Alright, so now, a lot to take away from that. And I want to ask you next, right, based upon what you learned from this story, and what you continue to learn, I want you to think about that young man or woman out there, they're getting ready, thinking I'm going to take over this business. What one action would you recommend our listeners take to avoid suffering the same fate

Ted Clouser 19:47
would say truly seek wise counsel? I asked a lot of people for their input, and I tried to gather information but I wasn't truly seeking wise counsel. I will Just trying to find justification for what I had already decided in my mind.

Andrew Stotz 20:06
Hmm. A big difference.

Ted Clouser 20:09
Big difference.

Andrew Stotz 20:10
Yeah. And last question, what's your number one goal for the next 12 months.

Ted Clouser 20:19
You know, we are firing on all cylinders right now as an organization. So professionally, my goal is to make sure I don't get in the way of what my team is doing. I am here to cast the vision of where we are taking the our organization at PCI technology solutions, and I need to do my job. But I need to stay out of the way of the foundation that everybody's worked so hard to build. Personally, I've got a daughter that's gonna be married in the year so I'm, I'm working hard to be the best father that I can be. I have a son that will graduate high school, and I have a wife that, you know, we're in the empty nest season. So personally, I want to make sure that I'm the best husband and the best father that I can be through the process to

Andrew Stotz 21:01
beautiful Well, listeners, there you have it another story of loss to keep you winning. My number one goal for the next 12 months is to help you my listener reduce risk and increased return in your life. To achieve this, I've created our community at my worst investment ever.com And when you join, you get this special discount to my valuation masterclass boot camp. As we conclude that I want to thank you again for coming on the show. And on behalf of a Stotz Academy, I hereby award you alumni status for turning your worst investment ever into your best teaching moment. Do you have any parting words for the audience?

Ted Clouser 21:39
You know, go for it. Dream big, seek that counsel and go win the day, every day.

Andrew Stotz 21:46
Beautiful, and that's a wrap on another great story to help us create, grow and protect our well fellow risk takers. This is your worst podcast hose Andrew Stotz saying. I'll see you on the upside.