TGIF Hard Knocks Community!💰 

We usually hit up your inbox with a newsletter on Thursdays, but this week, we took an extra day to fill this one to the brim with value. We recently sat down with Louis Flory, CEO of the labor force management company EFFEX. The company's on track to do $300M this year and Louis' garage has an impressive $20M worth of exotic cars! We're bringing you all the details on Louis and the top takeaways from our conversation.

Today’s Schedule

• Flipping the Staffing Script: How Louis Flory Turned the Staffing Industry Upside Down and Scaled to $300M a Year

• From the Hard Knocks Library: Outliers: The Story of Success by Malcolm Gladwell

• In Case You Missed It: We asked yacht owners how they made it big.

Let’s do it!🔥

Flipping the Staffing Script

As the President of EFFEX Management Solutions, Louis Flory is breaking the mold in the staffing industry. 

Throughout his 16 years of experience, Louis saw a major opportunity to fix the broken services provided by traditional staffing agencies and offer something completely different. 

After leaving college without a degree, Louis decided to take up bartending. At a crossroads in his professional life, Louis was encouraged by a friend to pursue a position at a staffing company where he got a job as a sales representative.

While working there, Louis realized temporary staffing was a broken business model. Agencies make money through billable hours, giving them the incentive to fill open jobs for clients on short notice. However, some employees wind up being unreliable, leaving clients understandably frustrated.

Temporary workers who don't find work with one agency typically turn to others to land gigs. In a given local area, most agencies are competing with each other, submitting the same resumes to companies in a bidding war over who can do it the cheapest. 

Louis' solution? Exclusive, long-term relationships with his client companies. Instead of working to sell temporary staffing, Louis takes the driver's seat in a company's labor force hiring practices.

In 2007, Louis founded EFFEX to help manufacturing companies cut down on high turnover, poor attendance, and less-than-stellar performance. Since EFFEX got started 14 years ago, Louis proudly boasts a 100% client retention rate.

When he's not working on EFFEX, Louis gives back to the community through philanthropic efforts. He's a top donor to organizations like the Houston Children's Charity and HAAM.

In our conversation, Louis dropped a ton of tips for entrepreneurs at every stage. Here were some of the biggest takeaways.

Don't Die on the Vine

According to Louis, one of the most common mistakes today's business owners make is that they quit growing. To quote Jack Welch, the day you stop growing as a business is the day you begin to die on the vine. 

To stay ahead of the game, you have to constantly grow and scale your business. As soon as you stop, your customer base and revenue start to dwindle. Your competitors aren't resting on their laurels, they're sharpening their business. They're getting better and they'll come for you.

Cash Flow Hustle

When it comes to getting capital to start a business, Louis says cash flowing your venture yourself is a major plus. In his own experience, Louis learned to live below his means and build up a balance sheet. This allowed him to keep 100% ownership of his business. 

If you're considering tapping an outside investor, Louis says having even a little bit of revenue coming in helps investors trust your concept. If you've already started hustling and made financial sacrifices, it puts you in a better position to secure funding to scale.

Play the Long Game

If you're struggling with negotiating, Louis advises to focus on the long-term wins. Instead of getting locked into battles over margins or price points, look long term and approach the conversation from a results-driven perspective. 

By explaining what kind of results you can get, you're in a better position to ask for what you need to get there. When you find a way to think long-term, it shows your customer that you're thinking about the relationship, not just a transaction. 

It's Who You Know

For Louis, two of the biggest things that helped him grow a successful business were establishing relationships with bankers as soon as possible and getting involved in entrepreneur organizations. Starting relationships with bankers and investors early on helps build credibility and can make securing capital easier down the road.

As entrepreneurs, it's important to collaborate with others on the same path. Whether it's one-on-one mentorship or joining a group of like-minded successful people, you'll learn how to grow and overcome challenges faster. You'll also get your mindset in the right place to win.

Watch our interview with Louis:

Eager to connect with successful entrepreneurs like Louis?

This exciting interview was just part of a longer sit down we did with him for the School of Mentors Community. When you sign up, you'll not only get to ask top entrepreneurs questions on live calls, you'll also connect with a ton of like-minded, driven people who are all about crushing their goals.

Become a member of our community today! 👇

Words of Wisdom

From the Hard Knocks Library

In Case You Missed It

Ever wonder what it takes to afford a mega yacht? We interviewed yacht owners all over Miami, Florida and asked them how they got rich. They shared the most amount of money they made in a year as well as some great career and life advice. We interviewed people in a variety of industries such as Health Care, Entertainment, E-commerce, and Entrepreneurship.

Let Us Hear From You

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