Beyond Your Exterior
I recently went one on one with Stephen Scoggins, founder of Custom Home Exteriors, a multi-million dollar construction business he started while sleeping in his friend's car.
Adam: Thanks again for taking the time to share your advice. First things first, though, I am sure readers would love to learn more about you. How did you get here? What experiences, failures, setbacks or challenges have been most instrumental to your growth?
Stephen: My over 20-year entrepreneurial journey started a little more unconventional than many others. It was spurred on by the mentorship of a man who I largely credited with opening my eyes to a new perspective and understanding of life's potential and possibilities. His name was Steve Myrick, and he was my father's employer.
On one such occasion, soon after I turned 16, Steve asked me a question and gave me a statement that would forever change my life. He asked, “Stephen, what’s the difference between a rich man and a poor man?” Feeling sure of myself, I responded with “Well, that's easy money.” It’s funny, but I actually felt like he wanted to thump me on the head as if to say, “No, my young learner.”
He said, “It is the way they think.”
His response stunned me, as he continued, “Stephen, your father and grandfather have not because they refuse to grow and think differently. They work for their money and I have my money for me. They barely have time for their families and I make time for my family. They focus on today, and I focus on tomorrow and the years that follow. They seek to be served and I seek to serve. Their lives are based on the beliefs of their possibilities and I focus on creating new possibilities. Life and Business Strategy 101 is: you will only be able to achieve the opportunities you can focus on. Why not focus on creating a life you love? Always remember what I am about to tell you and never could get your father to fully understand: be willing to do today what others want and you can thrive tomorrow when others won’t.”
It was not long after that his very words would put me to the test. I always respected him as a father figure in my life and he continued to pull down from the framing crews repeatedly over and over again. Then, the economy took a nosedive and in the mid and late 90’s, and our family was forced to restructure and simply try to survive. Homebuilding slowed, so my father's income followed suit. Our house was foreclosed on and family cars repossessed, leaving us with not much in the way of shelter or with a mode of transportation. And life went from bad to worse.
Until a divine encounter changed everything. Humbled and alone, I went back to Steve Myrick with my tail between my legs through my father. I was simply too embarrassed to see Steve, and began working once again for him on a framing crew.
I worked there for the week while avoiding Steve at all costs. That is until payday arrived on a Friday early afternoon where I was sent next door to do some reframing work for my father. As I worked, I could overhear Steve’s current siding crew (Home Exterior Cladding) complaining about working for Steve in a slanderous way and complaining.
As I finished what I was doing, I overheard one final comment “If Steve does not pay us all our money today, we are out of here come Monday.” It needs to be said that they were just over halfway done with the job and, as you can imagine, their expectation was totally irrational.
Man, this pissed me off as I reflected back to all Steve had done for me. I got so angry that it overrode my embarrassment and, when Steve came back with our weekly paychecks, I finally had the courage to face him head-on.
I walked towards his white 1998 Jeep Grand Cherokee as he slowly rolled his window down with a push of a button. He said to me, “How’s your head now, boy?” To which I simply replied, “Getting much better. Thanks.”
I wasted no time sharing with Steve what I heard and how upset I was. I know he could see the passion in my eyes. I boldly asked if they did not show up Monday, if I can take over. As Steve laughed, and said, “With what? You don’t have any tools, you don’t have any labor, and you don’t have any credit to get off the other things I already mentioned.” I told him, “If you will just give me a shot, I will figure it out.”
You could tell he was surprised with my resolve. He raised a single eyebrow-- almost like he was saying “hmm...” in his head. I stood there in a tank top, a pair of cut off shorts, and a single $6.00 white Lowe’s nail apron awaiting his response.
And then it happened.
When he replied, “I’ll make a deal with you. If they don’t show up Monday by 9:00 am, I will let you finish the house they are on. But, I am not buying you equipment or anything, and we can go from there.” I smiled, shook his hand firmly, and agreed.
As I walked away from him, it slowly set in of what I just agreed to. All my limiting beliefs and doubts came rushing in all at once. As my father walked toward me visibly upset and said, “What have you done? Just how do you plan to do all of this?” To which I replied with tears in my eyes yelling, “You don’t understand. This is something I just have to do!”
He was stunned at my response and simply walked over to his beat-up work van pulling tools out once again. I said, “What are you doing?” He said, “Go start pulling wood out of the trash piles. We need to build you some ladders and scaffolding for Monday.” I smiled, wiped the tears from my eyes, and went to work.
That was almost 22 years ago and was the very house I did in founding the first of my six companies called Custom Home Exteriors (CHE). This became both an anchor and training ground for building a business, people, and, most of all, myself. CHE is now in three states and employs a variety of wonderful people that is close to 400 team members strong between 1099 contractors and W-2 team members. Amazingly, CHE is on pace to break 9-figure earnings.
When it comes to personal growth and truly “thinking differently,” each of the adversities I mentioned in the creation of my first company came from the very experiences that some would remain in fear over. Things that were meant to crush me actually built me.
As a result of the early days of my life, I have a renewed sense of perspective and empathy towards business, business teams, and myself. I have learned the power of building from a firm foundation of not being afraid to start small and compare myself to others and their businesses.
Thinking differently requires that we use the good times to protect and prepare for the bad times so to speak.
Adam: How did you come up with your business idea? What advice do you have for others on how to come up with great ideas?
Stephen: Some have a dream and some have the influence of others. For me, my hunger came out of a necessity to build a business that was in one of my wheelhouses and came naturally to me. That was the first door opened to me.
After my first initial startup, I used the same premise to create my other businesses by truly answering these questions:
What comes naturally to me?
What do others say I am very gifted with?
What would I do for free?
What added innovation or perspective could I bring to the marketplace?
What products or services can I take to another level?
Is the person or market I am serving tied to the person I used to be?
How can I create a legacy that will outlive me if I pursue this goal?
Once I have answered these questions and many like them, I grab a highlighter and begin to play a form of “connect the dots” looking at all 9 mission-driven marketplaces. I look for a creative way to bring the best of my talents and skills in a way that does the greatest good. And I believe that anyone willing to take the time to focus on these questions with honest reflection can also do the same.
Adam: How did you know your business idea was worth pursuing? What advice do you have on how to best test a business idea?
Stephen: I have learned that a business is worth pursuing as long as there are three areas present. The first one is concerned with your passion. For instance, are you passionate enough to pursue this endeavor and willing to push yourself past your own limiting beliefs and ideas of possibilities? If you don’t have this passion, then you will likely surrender to any one of many adversities or obstructions standing in your way. On the other hand, if you love and believe in it so much that you would basically do it for free, then you may very well have a strong enough passion to see it through.
Second, is there an honest market for it? In other words, can you clearly identify a customer base in detail through the eyes of their greatest needs and pain points? Do you know their demographics, social graphics, and can your product or service eliminate that pain point?
Third, can you honestly lay out a monetization plan ahead of time considering all the costs from ink pens to standard overhead to determine your go-to-market pricing structure? Most entrepreneurs knock the first two phases out of the ballpark, but fail to properly account for the cost to ensure their top-line revenue is set up to exceed their bottom line cost. At this point, a company can continually innovate, live, and reinvest in their business to keep it growing. What good is it to go to the market if you are not set up to grow the market?
Adam: What are the key steps you have taken to grow your business? What advice do you have for others on how to take their businesses to the next level?
Stephen: One of the biggest mistakes I ever made in building a business was focusing on building a business without consistently building myself. A business is great when it has no team members, but adding team members requires a whole other level of growth and maturity. You will also need to learn ever-growing and changing accounting, customer service, and market change complications.
If someone wants to take their business to the next level, they need to do what Steve had always taught me to do and “think different.” Many companies refuse to grow-- not because they don't have a great service or product-- but because they refuse to innovate, change, and grow with an ever-changing market. I made a decision long ago to work hard to be on the cutting edge of innovation and not to subject myself to always being behind the curve.
It is always better to try and lead a market rather than follow one. The cycle of innovation always follows the same process:
Idea
Mockup / Beta
Test
Measure
Adjust
Replace and/ or Reinforce
Release
Businesses that keep a running path towards innovation always lead the pack. I should make a special note that you must follow these steps in order to avoid costly or in some cases catastrophic errors. You cannot go from idea to release. I have learned the hard way that without proper testing, measuring, and adjusting, your product or service will only be half as good as the idea that was created. The process refines the idea from concept to a true “market interrupter” or you risk releasing your beta version as a competitor releases their refined version-- and leaving you behind.
Adam: What are your best sales and marketing tips?
Stephen: In a world of digital marketing, people have gotten so conditioned to it that it's now background noise in many ways. The only consistent methodology that I have found that has worked is selling the point of view of how your product or service genuinely and authentically solves that problem.
I tend to use personal stories of how I can identify with their personal struggles and have been where they are now. I also have no problem discussing all the things that I tried that did not work, along with how my product or service actually fulfills the need and void.
I also don't try to sell anyone who cannot truly benefit from what we have to offer. When you treat people how you want to be treated and look through their eyes and lens of decision making, you build a bridge in their heart and mind from salesperson to an advocate for their success. And if you know someone who is for you, you seldom question the advice they give.
Further, if that advice is coming from a genuine and authentic place (even if it is connected to a product or service), you don’t not need to worry about a moral fall. Sell with a clean heart and serve with a clean heart and you will always have a growing customer base.
Adam: In your experience, what are the defining qualities of an effective leader?
Stephen: As someone who has been both a bad and a successful leader, I would say my personal leadership became more effective when I began to do certain things.
Admit when I am wrong and don’t have it figured out. So many times we want to lead and lead well that we cover up the fact we may not know the answers others are seeking. It is more of an ego problem. We are more concerned with a bruised ego that we forget people judge us by our actions and not our intentions. It is important to make sure those items are one in the same. I find that people want authentic leadership and will follow closer and for longer periods of time a leader they know who will shoot them straight in a respectful way.
Give away all the credit. Many times we are taught that a great leader is a prestigious one and as such we take credit for the wins and cast blame on the losses. The reality is we all bring value to the team, but everyone and I do mean everyone wants to feel seen, heard, and valued. Great leaders don’t need credit to feel complete as a leader; great leaders simply create great leaders. They don’t push people down or aside because they are intimidated by their potential; instead great leaders put a spotlight on it and allow others to shine. This approach builds trust, faith, and resilience within the team, allowing innovative ideas to form that can really move the needle. As a by-product, this almost always ends up with the team crediting you with their mentorship and success. Give the credit away and accept the accountability when things don’t go right.
Adam: How can leaders and aspiring leaders take their leadership skills to the next level?
Stephen: I believe that the biggest things leaders can do to elevate their leadership to a greater value is “surrender.” Surrender to the process. Give yourself grace when you make a mistake, admit when you're wrong and seek a tool to help turn that blindspot into a strength.
Have the courage to go to your team and ask a bold question without penalty: how am I failing you as a leader?” The reality is you and I both are too close to our leadership and judge ourselves differently than those around us. This means we rarely see the areas we struggle with the most.
Our spouses and teams often have a greater perspective on what needs to change. Again, many of us are too scared to honestly ask that question to our teams and families because we want to hear the good we are doing not the areas we struggle with. That is called pride and ego. It is possible to lay down your pride without laying down your authority.
Be honest with yourself and know that if you are truly going to be an amazing leader you have to be open to check your leadership with others honestly and openly. Then, look for trends to improve upon and simply get to work. You can do this!
Adam: What is your best advice on building, leading and managing teams?
Stephen: One of the best tools I have seen work with in all of our teams is “tapping into the brilliance of the room.” As a leader, I am striving each and every day to speak less and listen more.
I have made it a point to open the floor for a topic and then shut up while others express themselves, perspectives, ideas, solutions, and potential threats. I then ask additional questions not to attack or defend my position, but to understand there's more. I find that truth and decision making is best accomplished when I am the last to speak.
No matter the circumstances, always do your best to take that step to the next level by having a plan to start and end on a high note. Make sure your people are heard and valued, even if you disagree. Sincerely say, “I really appreciate you sharing today. It opened my eyes to a different perspective and I am honored that you shared it today.” These principles stand the test of time.
Adam: What are your three best tips applicable to entrepreneurs, executives and civic leaders?
Stephen: Listen First: Great leaders value others and see them as partners and not employees. I have discovered that if people do not feel they are valued, they will do one of two things: not bring their best or take their skills somewhere else. Simply become for them the leader you would most admire to report to, and you will build something amazing.
Measure Next: Give a team time to execute the direction by allowing them to set their deadlines and then use that deadline to build your critical path for your business or shareholders. Innovation and creativity come from the white space between the drives home and to work. If you are focused on pushing an agenda without the time to do it, well you are just asking for trouble. Make sure you take the time to measure and weigh the ideas and set an example of excellence before execution and you will win the day.
Act Last: Far too many times executive leaders are gunslingers constantly making a knee jerk reaction on problem-solving. I can say that because it has been a blindspot that I have been working on for years. I have had to teach myself to gather the team, discuss an issue, and then choose an action. When that is done well, there is rarely collateral damage.
Adam: What is the single best piece of advice you have ever received?
Stephen: Be willing to do today what others want and you can thrive tomorrow when others won’t.