544: Harlan Scott on Why You Shouldn't Build an Empire without Equity

Harlan has been in the hospitality community for almost 20 years and played a leading role in 8 restaurant openings and several re-conceptings. Scott has guided the growth of restaurants that not only survived but thrived into several unique locations by creating systems and finding the right people. Today, Scott is the proprietor of Industry located in, San Marcos, TX. In addition, Scott is the founder of Harlan Scott Hospitality where he helps people make their dreams profitable and scalable, simultaneously improving quality of life for the owner and the employee.

 Show notes… Favorite success quote or mantra:

"Be authentic and consistent. Also, surround yourself with people who make you better."

In this episode with Harlan Scott, we discuss:

• How Harlan got his start in hospitality and ultimately fell in love with it.
• Attention to detail, and discipline to create and stick with systems being what separates the good restaurateurs from the great restaurateurs.
• When you see someone with ability and potential, let them know they got what it takes and provide them with opportunity.
• Using your pay check to invest in assets so you're not entirely dependent on your job.
• Not over-spending when opening a restaurant. Also do your due diligence to research and become a part of the community.
• Why you need to be your own cheerleader. If you're doing awesome stuff you need to tell people. Otherwise you'll be undervalued.
• How to be your own cheerleader without sounding egotistical.
• Creating culture with your presence. The way you work will set the pace and standard for everyone else.
• Don't build a business unless you have equity in it.
• How it is not ethical to dangle the equity carrot in front of talented, driven staff so you can get away with overworking and underpaying your team.
• The benefits of creating a restaurant concept that caters specifically to restaurant industry professionals.
• Knowing that as an employer your scope of responsibility goes beyond paying your employees a fair wage; it is your responsibility to mold the next generations of owners.
• better edict for counter service.

Resources mentioned:

• 477: The benefits of open-book management with Mason Ayer
• The Great Game of Business: The Only Sensible Way to Run a Company
• The Four Agreements   

Today's sponsor:

EthicsSuite.com -provide a safe, secure, simple and anonymous communication channel between you and your employees to help you protect your hard-earned reputation and assets. Demonstrate to your team that you are committed to providing a workplace that operates with the highest ethical standards. Staying informed about important issues will help you resolve them internally before they spiral into larger, costly, or public problems.

Cashflowtool.com  A simple powerful and predictive cash flow companion for Qickbooks. Simple, because it requires no data entry, is always up to do and works on any device, anywhere. Powerful, because with it's built-in cash flow calendar, activitiy feed and anomaly detector, you instantly know all aspects of your cash flow with no surprises. Predictive, because you'll know your cash flow today and anticipate it tomorrow.

Knowledge bombs

1. Which "it factor" habit, trait, or characteristic you believe most contributes to your success?
   • Authenticity
2. What is your biggest weakness?
   • Insecurity of how others perceive him
3. What's one question you ask or thing you look for during an interview?
   •  Look for people who have ambition and dreams that go beyond collecting a paycheck from you.
4. What's a current challenge? How are you dealing with it?
   • Staying Relevant.
   • Connect with each individual guest so relationship is what brings them back.
5. Share one code of conduct or behavior you teach your team.
   • Be transparent and authentic.
6. What is one uncommon standard of service you teach your staff?
   • Be real.
7. What's one book we must read to become a better person or restaurant owner?
   GET THIS BOOK FOR FREE AT AUDIBLE.COM 
   • Rocket Fuel: The One Essential Combination That will get You More of What You Want from Your Business
8. If there was one tool or resource that you wish you had now -- or wish you had when you were getting started--to learn from others in the industry what would it be?
   • Amazon Prime.
9. What's the one thing you feel restaurateurs don't know well enough or do often enough?
   • Not building enough systems and structure into your business.
10. What's one piece of technology you've adopted within your four walls restaurant and how has it influence operations?
    • Toast POS
11. If you got the news that you'd be leaving this world tomorrow and all memories of you, your work, and your restaurants would be lost with your departure with the exception of 3 pieces of wisdom you could leave behind for the good of humanity, what would they be?
    • Be authentic and genuine to a fault.
    • Love unconditionally.

Contact info:

Industrytx.com

HarlanScottHospitality.com

Thanks for listening!

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Huge thanks to Harlan Scott for joining me for another awesome episode. Until next time!

 

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