Launching a Business With a Purpose

1. Launching a Business With a Purpose

“For me, I think about what I want to do in life, and I want to be the best that I can possibly be at the things that I value most.”

—Bill Pegnato

Pegnato Roofing Intelligence Network

Podcast Transcription

Michael:

Hello, I’m Michael Kurland, CEO and Co-Founder of Branded Group. Welcome to the #BeBetter Podcast. To me, our company’s mantra to “Be Better” is more than a tagline; it’s a culture that permeates our organization, propelling our team to Be Better to each other, our customers and our communities as well as to ourselves. Each week on the #BeBetter podcast, I interview leaders who authentically exemplify how they are being better in their professional and personal lives.

Today’s podcast is dedicated to our long-standing non-profit partner, Habitat for Humanity of Orange County. Over the past six years, the BeBetter team has helped to build or restore more than 10 homes in Orange County, California and Suffolk County, Long Island. We also have volunteered at their Re-Store, the organization’s home improvement thrift store. Learn more about how you can get involved at HabitatOC.org.

Michael:

Thank you everybody for joining us today. I started a company a few years ago, six years to be exact, called Branded Group and we set out to do facilities management across the country. Facilities management is basically, we get a work order from one of our retail or restaurant customers and we manage the process for them, and it’s kind of mundane and we do the same thing over and over again. We were doing work orders across the country our first year out in the industry, doing quite well, and we turned a profit. But inside I was feeling a little dead, and I wanted to give something back, and I decided to come up with how I could be better. I started working on being better to my employees, to my subcontractors, my community, and my clients, and I’ve added the fifth element, which is being better to myself this past year.

Michael:

That’s what this podcast is going to be all about – how we can be better. It’s not always just about turning a profit in business, but also how do you deal with some of the challenges that come along that aren’t just money related. Thanks for joining us.

Michael:

This is a man that helped me along my journey in its very infantile stages. He is my mentor. Bill Pegnato is the owner of Pegnato Roof Intelligence Network, and at a very young age of Branded Group, we met at a networking event up in… It wasn’t Hollywood, it was somewhere in LA. I still remember the bar. It was an old, crappy bar that had some broken tiles on the floor. They never invited us back.

Bill:

Okay! Pegnato Roof Intelligence Network is a platform where we connect national accounts in real estate just like you, Michael. We do retailers, restaurants, and also shopping center developers, and we connect them with local roofers around the country. They place work orders with us as well. We find good local people to do the work. But then additionally, besides handling the transactions, we start analyzing the data that we get from this and help our clients make intelligent decisions. That’s our business right now.

Michael:

That doesn’t sound like the normal roofing company. It sounds like you’ve taken a roofing networking management company and made it better by analyzing the data. Is that something that you guys did on your own, came up with?

Bill:

We think we’re pretty unique in the industry. As you know, I’m getting up there in age, so I’ve been doing this for about 40 years. We designed our business with what I saw in the industry as what it was lacking. We tried to really develop our products and services around that and like you, we’re experiencing some real good success right now.

Michael:

You mentioned you’d been around for 40 years, always in this industry. Correct?

Bill:

Yes. My dad was an electrician back in New Jersey, and I grew up helping him in his electrical contracting business, wiring houses. After I graduated from Rutgers University, I moved West and been doing businesses and entrepreneurs right from the get go. My first business was a solar hot water heating contracting business and I did that for about 10 years. The tax credits changed and that business wasn’t really viable anymore. In 1986, I got into roofing, and in analyzing the business, which is I think some things that I do and you do is you’re sort of looking for what’s the angle, what’s different? Although I was working for a large roofing contracting company and selling a lot of large roofs, I saw this opportunity for transactions, maintenance, and repair. I went to them and said, “I think I can do something different for you guys.”

They said, “No, you’re making too much money doing what you’re doing.” I went to my partner, my wife Maryella, who’s an MBA and she was on the staff of Pacific Bell. She was on the CEO staff at Pacific Bell. We said, “If no one’s going to do this, it’s a great idea. Let’s do it ourselves.” Since then we’ve been in national accounts always. We started with PRSM as you know, Professional Retail Store Maintenance, and where all the national accounts were, and built our business. But it’s all not rosy. It has been up and down.

Michael:

This is fascinating to me because as my mentor, I haven’t actually sat down and asked you your whole timeline history. I guess I’m going to use the platform of this podcast to get into that. When you guys left the roofing company with you and Maryella, you started your own company. You saw a hole in the marketplace and decided to infiltrate that. What year was that? ’86 you said?

Bill:

That was ’92.

Michael:

Okay.

Bill:

I remember it because on December 31st, 1991. I was making six figures and then January 1, 1992, I was making zero. That’s a motivator.

Michael:

Absolutely.

Bill:

Yes

Michael:

How did you decide you wanted to be better and do this? Because you noticed that there was an opportunity and you wanted to get out there and make this management company? You saw that hole in the marketplace.

Bill:

Yes. We saw a hole in the marketplace, but we also learned what we didn’t want to do. The company that I was working for, which has since gone out of business, didn’t treat people well. Maryella, she was working for a phone company. I won’t mention the name, but they didn’t value her as a woman. We had a baby and her boss made her stay till nine o’clock at night at every whim. Part of this motivation to do something, we saw a hole. We also wanted to work in a better environment, create our own environment. That was really also a motivating factor for what we’re doing. That’s why I’m impressed with your Be Better, because that was our kick from the beginning, but probably have not done as much as I’m seeing you do. I’m learning and we’re starting to.

Michael:

Well, thank you. How were you being better and how are you being better now in your current role?

Bill:

For me, I think about what I want to do in life and I want to be the best that I can possibly be at the things that I value most. It’s not just making money in business. For me, family is important. My health is critical. I still play tennis three days a week. I really am challenged with my business as well to continually improve. I want to have financial security and I also want to have joyful living. Part of that is, and again, which I’m listening to you and learning from you and watching the things that you’re doing, is giving back.

Bill:

Because that feels good! We have a real issue in Los Angeles, specifically Venice, with homeless. We have now started to participate with a group called SPY, which is Safe Place for Youth. Once a month my whole team goes over there and we serve lunch. I just helped them with some electrical problems that they had. I have electrical background, so I’m starting to participate and boy, does that feel good. Those I’m trying to be the best that I can be at the things that I value most.

Michael:

How long have you been in this with SPY? How long you’ve been working or volunteering with SPY?

Bill:

About a year, and again, motivated by Branded Group.

Michael:

Oh, thank you. Thank you.

Bill:

Maybe, I’m your mentor, but you’re my mentor.

Michael:

I appreciate that. For all of you that don’t know, we have an association with Habitat for Humanity of Orange County. We donate a lot of time. We’ve built over 12 houses in the last six years, helped build over 12 houses, not solely built the houses. We’ve just started working with Second Harvest Food Pantry and Orange Coast Keepers. We definitely make it a priority. I started doing that because I just had this hole in my soul.

Michael:

I mean, we were turning a profit.  In 2014 we turned a profit for the first year. But I was like, “What am I leaving on this planet? What kind of a legacy am I leaving?” I can fill a bank account, great. I really want to have people remember me for more than just whatever my trust fund was, for whatever children I may have. One of the most rewarding things is giving back. I make sure that I do it personally, not just on Thanksgiving and Christmas, which I do like to also give my time.  But throughout the year we do Back to School drives. We do the Christmas gifts, the Thanksgiving food drives for the less fortunate families. So, I’m glad to hear that you guys started with SPY.

Bill:

There’s an ulterior motive for me with SPY, not just again, me feeling good and helping out. I have my team come over there and we serve food together and it’s a great team building experience. These kids that work for me are motivated to work for me or work for us. It’s not me. Because they feel like we’re an organization that is doing good or being better. These millennials nowadays, they value this. They value money, but they value this right up there as being something, working for someplace that’s significant.

Michael:

That’s a good point that you bring up, the millennials. They do, there’s studies out there, and I don’t have the exact percentages off the top of my head, but millennials are wanting to stay with the company that they’re with, because they feel like that company is giving something back. It’s not just about the money. What percentage of your workforce is millennials?

Bill:

Other than me and Maryella, I think we have one guy that’s a little bit, just about 95%, 90%.

Michael:

Working with them, us too, we probably have, and I’m just on the cusp of not being a millennial. I’m like a Gen Z or X or whatever that they call those. But most of my workforce is 85% millennials. They really do value the give back. I mean, I could give them a raise, or I could give them an opportunity to go volunteer, and everyone’s going to want the raise, but 75% of them are going to feel just as good about getting that volunteer opportunity. It’s something that we definitely are keeping as a big focus for Branded Group. I’m glad that we got to dive into some of that stuff. I wanted to ask you a few more questions. I wanted to know what are you curious about right now? I know you brought this book here about the guy who founded Salesforce. Is that something that you’re really diving into?

Bill:

I think the world is changing, especially with what’s happening in the political arena. I think as business people we have more of an opportunity and more of a requirement to really help society in a significant way. I’m watching people like you, but also this guy from Salesforce. This book that I brought today, has a lot of the things that he’s doing. He’s working with the homeless as well in San Francisco. But he has issues, and his company has issues with selling his products to companies or institutions that are not doing good. Because his own people complain, “Why are we selling, if these are the values that we espouse?” He goes through his values and I have mine with our company as well. If you’re doing things, this is what you say your values are, and you’re doing things that are against those, that’s a conflict and it’s not always about profit.

Michael:

Great. Have you read Mackey’s book on Conscious Capitalism? I think we’ve talked about it earlier. You haven’t gotten into that one yet.

Bill:

Not yet.

Michael:

That’s a great one too. It’s the guy who founded Whole Foods and they start talking about how it’s not just about the profit but giving back. That’s where I got my jumpstart of all of our values and give back initiatives, was going through that book. What motivates you to be better?

Bill:

This is a journey that I’m on and I think if you’re not continuing to grow, that you’re going the other way. I think growing as a person is one of the things that I value and I said, I want to be the best at things that I value the most. Learning and growing is, until I’m under the ground I’m going to continue to be motivated and move forward. My personal values are balance, and you know me, I’m a family guy and it’s important. My tennis and business, it makes me feel good that I’m not just focused on one thing. Also what I’ve learned in business and in life is patience.

Bill:

It isn’t going to happen tomorrow. If you’ve got an idea, you’ve got to be patient and have perseverance, you got to stick at it. You and I have both been through some ups and downs in our business, and I feel like if you don’t quit, you can’t lose. Then lastly, is discipline. Because I think again, this is all well and good but people have to hit their numbers. That’s part of our values and one of our values is making sure that we secure the future. That’s one of the Pegnato values, and part of that is, we have to keep our exceptions down, good customer service, we have to bill. It’s not just about socially being better. It’s also securing the future by doing a good job and being profitable.

Michael:

If you don’t have your company to help the people that work there, then how can you do any of the things that you were talking about doing right now? It’s funny you talked about yours is securing the future. Ours is building better humanitarians for the world. That’s what we try to do at Branded Group. That’s our motto for our values for our employees. You talked about discipline. That’s one thing I wanted to touch on. I’ve always noticed in all of our talks that you are always focused on, whenever we meet for lunch and catch up on life and business, we’ll catch up on life, but you always have one main topic of business that you want to impart on me. I’ve always appreciated that about you. You always are driven still.

Michael:

As you said, doing this for 40 years, I’ve only been doing my own company for six years and there’s days where I’m always driven, but I hope in another 34 years I’ll still be as driven as you are. So, I appreciate that about you.

Bill:

Great, thanks.

Michael:

Yes.  One thing we’ve talked about business, you talked about balance. I think that’s a good segue for how are you being better to yourself? How many hours would you say you spend in the office versus outside of the office? Not dealing with work stuff, playing tennis, and spending some time on yourself. Because I think that’s a thing that a lot of people in our situations don’t find time for. So, how are you doing better with that?

Bill:

Being an owner is you’re really never off, but I pick my spots. How do I explain this? I’ll play tennis on a Tuesday morning and a Thursday morning, but Saturday morning I’ll get up and go over my accounts receivable. It’s not nine to five Monday through Friday. It’s whatever the business needs. But I have my own needs as well, and I make time for those. I’m not so sure if I’m answering your question, but it really is balanced and a balance of time. I’m really lucky that I have my partner who’s my wife. We just had a trip to Florida last week, calling on accounts, but then we go out to dinner when we’re there and have our own time together. I can’t specifically say how much time, but I really make sure that I put time in for work and for my family, my kids and grandkids.

Michael:

I think it’s just everyone’s journey is different and you’re answering the question just fine. I can totally agree with where you’re coming from, because you’re never off as an owner. Especially in today’s technology age where everything comes to your phone. You just got to be able to put your phone down and make that time for yourself, whether it’s playing tennis or having a nice dinner with your wife. Which also fascinates me that you are able to travel with the country with your wife and you guys are the most beautiful couple. I hope that when I’m your age, me and my soon-to-be bride will be as happy as you guys are.

Bill:

Congratulations.

Michael:

Oh, thank you.

Bill:

Congratulations.

Michael:

When we first met, we both traveled the country together and it worked well in business for about a year, but then it was time for a separation for us. So I applaud you for 40 years of working together with your significant other. Let’s talk about a little bit on how you’re being better professionally. How are you doing that and bringing that into your company?

Bill:

A couple of ways. Number one is I think books are really critical. I think when you and I sit down and talk, we always talk about what are you reading? What are you working on? That’s why, even today, I know this was a podcast, but I brought a book that we’re working on. I learn a lot from other people. Not learn, I mean, why reinvent the wheel? If someone’s done this before, someone’s run through this problem before, and there’s so much to be learned from books I think. I also don’t like books on the computer or books on-

Michael:

Audio books?

Bill:

I like the paper.

Michael:

Where you turn the page.

Bill:

Right. We also participate with RFMA and PRISM, but also ICSE. We are lucky enough right now, Maryella and I are the co-chairs for the ICSE Sustainability Conference coming up in Nashville next month.

Michael:

Oh, Nashville.

Bill:

I continue to push myself professionally participating in the trade organizations and again learning about business through other people.

Michael:

You brought up books and that sparked me to think of, we actually started a book club at Branded Group, and we have a quarterly book club where I will pick a book or one of the executives will pick a book, and we open it up to the entire team. If they want to read it with us, and we have a Lunch and Learn and talk about what we found. Currently the book we’re doing is Atomic Habits, which is, I wish I had brought a copy for you to take a look at it. It’s a great one. It’s got me getting up at 6:00 AM every morning, Monday through Friday, so far.

Bill:

Interestingly enough, we have a book club, but it’s with the leadership team.

Michael:

Okay.

Bill:

The one we’re reading right now, and I don’t have it in front of me the name, but I can tell you what it’s about. It’s about OKRs, and those are how we measure how we’re doing. I talked about the guys in the team in the call center, and really keeping exceptions down. We manage exceptions, but OKRs go across it.  I have my own OKRs. How many clients do I see a month? I have a goal. That’s my shtick is like you were out there in front, but each of us have OKRs and that’s the book we’re reading, and we’re implementing those things in our business.

Michael:

That’s great. Do you guys meet and talk about it at the end?

Bill:

We meet every two weeks as a leadership team and talk about different chapters in the book and then how we’re implementing the OKRs. Andy Grove with Intel was huge on this, and that’s where it came from and how he managed. Again, he was able to grow his business through the specific measurements.  If you couldn’t do it, it wasn’t that you were bad person, you just probably couldn’t work in this organization. That’s how we drive it as well. It’s like, we try and be good, but you really, in order for us to secure the future, which is again one only one of our values. If we can’t secure the future, you’re going to hurt everybody here.

 

Michael

What do you do well?

Bill:

I think what I do really, really well is strategy. It’s really analyzing the marketplace and the business and really trying to figure out where the holes are, what we can do differently. I’m not a me too kind of person. People say, “Who’s your competition?” “I don’t really think I have any competition. They don’t do what I do.” It’s different. You even said that earlier. You said your business sounds different than your typical roofing contractor and company.

Michael:

Absolutely.

Bill:

I don’t go to the national roofing conferences. Alex has been going for me. You know, Alex, my right hand daughter. But I go to our client’s conferences, so I want to learn what they need. I think strategy is my strength and how I would recommend somebody else’s, it’s really, I guess, think about your industry, think about what’s wrong, and where’s the need that you might be able to fill that’s different.

Michael:

I think that those are great tips for our audience. I too agree with you. I thought that I found a hole in our industry and that’s what the whole reason why I moved to California, and the sunshine. I just want to thank you for coming on, Bill. It’s been a pleasure talking with you today. This has been my honor to have some time and really get some deeper knowledge on my mentor. Thank you for coming out. I appreciate it.

Bill:

You’re quite welcome. Thanks, Michael.

Michael:

I’d like to take a minute to thank you, our valued listeners. My intention is for this podcast to inspire you, in some way, to be better.  Change starts from within and radiates outward. Therefore, start with being better to yourself and only then will you recognize how to be better others and your community. Thank you for joining us today! If you want to learn more about Branded Group, then visit us at www.branded-group.com. From our website you can follow us on social media. Also, always feel free to reach out to me on LinkedIn. Until next time, Be Better.