Chris Carneal

Founder and CEP | Booster Enterprises

Chris Carneal is the founder and CEP of Booster Enterprises and its flagship school-funding program, the Boosterthon Fun Run.

Chris was born and raised in Ft. Lauderdale, Florida. He later attended Samford University in Birmingham, Alabama, where he played baseball. During college he started his first company, All Sports Tutoring, a company directed toward teaching students valuable character and leadership lessons.

In 2002, Chris sold All Sports Tutoring and launched his newest endeavor, an innovative fitness fundraiser for schools called the Boosterthon Fun Run. He designed it as an alternative to the product sales that most elementary schools use to meet budget shortfalls. After several years of success, Chris decided to relocate Boosterthon’s home office to Atlanta, Georgia.

Today, Booster employs more than 300 team members in 25 markets around the country and more than 1,200 schools partner with the Boosterthon team to meet their funding goals. The Boosterthon also boasts one of the most innovative character education programs in the nation with more than 800,000 students participating. To date, Booster has raised schools more than $100 million to improve education.

Chris and his wife, Lyndie, live in Johns Creek, Georgia, with their four children.

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PODCASTS FOR THE FAITH DRIVEN ENTREPRENEUR

Episode 167 – What it Takes to Change with Chip Ingram

In addition to being one of the co-authors of the Faith Driven Entrepreneur book, Chip Ingram is one of those people that we can’t seem to have on this podcast enough. 
If you’ve followed along for a while, you’ve no doubt heard him before, but today, he’s going to join us and share why he’s excited about the Faith Driven Entrepreneur book AND what his latest book, titled Yes! You Really Can Change has to say for every entrepreneur out there.


Episode Transcript

*Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDE movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Chip Ingram: For an entrepreneur, especially when you can get out of I don’t have to prove anything and I don’t have to impress anyone except I’m going by faith, do what God shows me. Is that a challenge? Yes, but it is awesome and liberating.

Henry Kaestner: Welcome back to the Faith Driven Entrepreneur podcast, we have one of our favorites, maybe our favorite guest, at least if you determine by frequency on the show. So you know that we value Chip as a friend, as a cocreator, as a pastor, as a leader, and just been a great encouragement to others who spent time with us on the podcast and on our conferences. He is a very widely distributed radio host and author, and we have him now in his beautiful studios in downtown San Jose. Chip, welcome back.

Chip Ingram: Henry, it is great to see you. And it’s always a thrill to rub shoulders with fellow entrepreneurs and the people that honestly change the world. And it’s challenging. And I’m just excited to get to spend some time with you and the team.

Henry Kaestner: Well, thank you and thank you all. So here’s an opportunity. I’ve never done this before. This is something that should give us a chance to do more frequently than I. And you’ll know why here in a second, because we’re going to talk about his upcoming book. But Chip and I, together with JD Greer, have come out with a book, are coming out with a book called The Faith Driven Entrepreneur. And Chip Ingram may not know this yet, but Lecrae is writing our forward, which is exciting and cool. And for our listeners who haven’t ordered their copy, why should they why should a Faith Driven Entrepreneur care about what you have to say? What I have to say, what J.D. has to say about being a Faith Driven Entrepreneur, isn’t it just as simple as just kind of like, you know, I should go to church and I should probably pray and then I’ve got a business to run. I need to get out there and just kind of execute and and, you know, Lord willing, I’ll be profitable and I’ll be able to give money to everybody’s ministry. Why would you consider reading a book on the topic?

Chip Ingram: Well, because I think what you just stated is probably how a lot of people think. And I don’t think that is even remotely what God wants or thinks. The biggest takeaway from this book is I’ve read your chapters, Mine and Jades is real integration of being a man or woman of God and being a cutting edge successful entrepreneur without compromise is possible. It’s positive and it’s powerful and honest. Entrepreneurs know that integrating your faith authentically all the time from the inside out and I don’t mean just in work, but relates to personal life, family, even beyond integrity. That’s a challenge. And I think you really wrestle those things to the ground and give people some real help in that.

Henry Kaestner: Well, thank you, really. Of course, the operating pronoun there is we and so you’ve got chapters on stewardship, faithful and willful, and what pastors and entrepreneurs have in common. What are some takeaways that people can look forward to reading about with that?

Chip Ingram: You know, we’ve had lots of conversations. In fact, we had one like twenty our conversation when we did international trip together, we got there and got back. And it was very interesting.

Henry Kaestner: We did a day trip to Manila, didn’t we?

Chip Ingram: Yes, we did. That will be marked as one of the unique experiences in my life to fly to Manila, be on the ground for eight hours and fly back. But I think for high energy active entrepreneurs, the challenge and this is true of pastors that have an entrepreneurial spirit as well. It’s what’s my part and what’s God’s part? I mean, we talk about you’re a steward, but OK, I’m supposed to rest and trust in God and his wisdom, not strive, not be a workaholic, not feel this unbelievable pressure to make it happen. And yet I’m not to be passive. How do you do that? That’s what I think we address in this book. I think in an understandable way. I think it’s foggy and vague and try and entrepreneurs hit it and miss it. And we just go sort of we zoom out of balance one direction only the pendulum to zoom out of balance in the other direction. And I think this book will really help entrepreneurs in that to discern that, to realize, you know, I don’t have to keep telling those around me. You know, once we get through this big launch, once we get through this, once we do this, once we do that, then things are going to change, which is the lie that we tell ourselves and those that love us. It is possible to be at rest, to have a peaceful heart, to take risk, to be very engaged in intense at times, and also to know when to say no and not feel like the world depends on me. And that’s as much or more an art as it is a science. And I think you and JD speak well to that. And I gave it my best shot as well.

Henry Kaestner: Yeah, it was a very good shot. I’m very grateful. It’s a real treat for me. So as much as I’m semi tempted to talk more about some of the issues that we unpack there, I’m also a little uncomfortable about the self promotion. But I feel much better about talking about a book that you’re coming out with that I think is really important. And it’s called Yes, You Can Really Change. Talk to us about it. What’s in the book? What’s it about? What’s the reason for writing it?

Chip Ingram: Well, it is about life change. I mean, we are made entrepreneurs know this more than anyone else. The status quo makes us crazy. I would say the status quo. I don’t want to be irreverent. It makes God crazy. We were made to change. His goal is to make us more and more like his son. And so this book is it’s really about how change happens. My experience after many years as a pastor rubbing shoulders with, you know, business leaders, CEOs, is there’s this once the external change is like, OK, the big morals or maybe my language or, you know, I basically tell the truth in business deals. There’s those internal things that often get stuck greed, lust, resentment, anger, unresolved conflict, comparing yourself with others. God has an agenda and a way to transform us from the inside out. And my experience is most Christians don’t know what that looks like. Most Christians are trying very hard to be a good person and involved in some good religious activities and some spiritual disciplines. But when you peel all that away, there’s some things that God longs to change and they’re really stuck. They really don’t know how that works.

Henry Kaestner: So when people read it and they’re feeling stuck and they want to get out of being stuck, what’s it take away that you want the readers to get at? And just you hope that changes in their lives afterwards? The one thing, again, just the takeaway and not in a way that shortchanges the very important of unpacking how you get there that you’re able to do in the book. But give us take takeaway, please.

Chip Ingram: The fundamental takeaway is verse one of the reasons for its grasping how deeply you’re loved, who you really are and who you are, and then walking in a manner that is worthy of Christ. It’s spiritual maturity. It’s becoming like Christ in your speech, your thoughts, your actions, your business. And here’s a make a fine distinction. Not working hard to look like you have good speech, good action. You know, I wrote my journal, I’d like to say it was twenty years ago, but it was about a year and a half ago and it was one of those defining honest moments with God in a time of repentance, actually. And I remember writing, Father, I realize at times I spend more energy trying to look humble and more energy trying to look loving than I actually spend being humble and being loving. And you know, that part of our DNA, if you’re an entrepreneur, it’s make it happen. And if you want to make it happen, you are always tempted or most of us to make the ends justify the means. And I think what I really long for people to see is living out of the overflow of your relationship with Christ that allows you to be at peace, that brings freedom and honestly causes you to do things in ways that people shake their head and say, I didn’t think you could be that kind of Christian and be successful in business. You’re breaking a lot of the rules here that you really believe in this Jesus that you talk about in this kingdom agenda that he has and that his upside down values. You know what? They don’t make a lot of sense to me. You know, if you’re an unbeliever. That I am. I am. And that was the goal. Let your light so shine before men, right. That they could see your good deeds, that the evidence and how we actually live, how our business is run, how we treat our employees, how we respond to a crisis, what do we do when there is failure? How do we treat people who failed? The take away is doing that the way Jesus would do it if he lived inside your body. And if you’re a follower of Jesus, that’s the reality, Jesus lives inside your body, you’re his temple. And my dream is that people would learn just how to do that progressively, not perfectly, until we get to heaven and make a huge difference for God’s kingdom.

Speaker 3: Amen. I mean, when you say that I wish you had a podcast just recently on that talked about the difference between being and doing right and how so many entrepreneurs get caught up in the doing art and reminded me of I was recently studying Deuteronomy eight and you know, God talks about how he took the Israeli 30 years so that they would learn humility. And I just it struck me it’s like he wasn’t concerned with whether they were going to build this thing or build this tower if they were going to. He just wanted them to learn humility. And I just think it’s so profound that that’s how much God cares about our hearts and who we are. And I think it pairs well with something I’ve heard you talk about before that I want to let you have some time on is what it means to live. I think the close cousin to humility are what allows humility to happen is grace, right. And understanding God’s grace. And those are just like a beautiful paradox to live together. And I’d love for you to tell us what does it mean to live from God’s approval as opposed to living for his approval and specifically for an entrepreneur, Deuteronomy? I imagine there are people like know I’m supposed to be doing, doing, doing. And God’s like, no, just sit and be humble and know who I am. But I want to talk about that a little bit.

Chip Ingram: Well, God is teaching them that he’s their father and he’s leading they’re called the children of Israel and he’s taking them on an agenda. And he’s our father. We’re taught to pray that and he’s taking us on an agenda. And when we grow up in our families and in our school systems, what we learn is when you have bad behavior, you get punished. And when you have good behavior, you get rewarded. And it’s really challenging after we know Christ personally to not fall back into that psychology and where we begin to think of God as sort of this ruler, this father, this judge, and in other words, man, I want to do good things because he’ll love me when I’m doing good. And boy, if I ever mess up, then he doesn’t want to talk to me. He doesn’t care about me. He doesn’t love me. And so when you live for God’s approval, you are consciously or at least in my case, very unconsciously, you’re living out of transaction and performance. When I’m doing well, I feel good about me. You know, I’m reading the Bible and praying. I’m treating my employees. Well, you know, the margins are up. I’m making progress. Boy, when I failed, I blew up in that meeting. I’ve got unresolved anger, man. I just promised my wife the last three nights I’d be home and I haven’t made it to dinner a single time. And I’m uptight and in meetings and I feel like, well, I can’t talk to God now. You know, I’m I’m out of his favor. And by contrast, you know, this book is about Ephesians Chapter four and how life change actually occurs. But, you know, math goes like this. If there’s an officiants four, that means there’s a one, two and three and one, two and three are about being loved, redeemed, about having a father, about being sealed with the spirit. And at the very end of Chapter three, before he says anything about what we’re to do, Paul says, I BAM I need before the father. And he says, I’m praying now that God would grant to all believers the height and depth and length and breadth and note to love of Christ that surpasses understanding that he do supernatural work so that we could live out of. I’m already loved. I’m already accepted for an entrepreneur, especially when you can get out of. I don’t have to prove anything and I don’t have to impress anyone except I’m going to buy faith, do what God shows me. Is that a challenge? Yes, but it is awesome and liberating.

William Norvell: They meant a quote I heard one time. I don’t know where I picked up and set up. Grace can take you places that hustling can’t.

Chip Ingram: I’ve not heard that. I like that. It reminds me of a I think one of the greatest lines, especially for I think entrepreneurs, because we were activators and, you know, achievers and Dallas. Willard says the greatest gift you will ever give God or any other person on the earth is not what you do, but who you become. And having sort of that entrepreneurial gene on the one hand, but my focus has been on, you know, building churches and ministries, I can say something that a lot of entrepreneurs can’t. I’ve buried a lot of people. I mean, I’ve done lots and lots and lots and lots of funerals after 38 years as a pastor. And I have sat with those little cheese sandwiches afterwards when you’re at the home. I just did a funeral of a very close friend last Thursday. And no one ever talks about the company they built, no one ever talks about. Wow, what a cool watch they had, where they vacationed, how many homes they had, what their startup was worth, what venture capital firm got behind him. You know what awards they won. The only thing that people that really care about talk about after you’re gone, when they sit around and they both laugh and tell stories and remember you is they talk about the quality of their relationship with you and the kind of person that you were. And I think that’s why God so often he gives us challenging commands and they often feel restrictive. But he just so knows what will be best for us or just drive, drive, drive to produce, produce, produce, achieve, achieve, achieve. A lot of that is in this big hole in our hearts that somehow when we go public, somehow when the startup really gets launched, somehow when I get funded, somehow when I’m written up in form, somehow you just keep filling in it. Then I’m a somebody. And those of you that have already been through this somehow and have been written up in Forbes or the startup work or you own a company, I know part of the Faith Driven Entrepreneur journey is to kind of reach back and say to some younger entrepreneurs, it’s a lie. Don’t buy the lie. There’s more to life than whatever you think the big success is. So, you know, my heart in this book is to help that average man, that average woman go on an internal journey where that gets so solidified that they can actually live out of the grace of God and not out of this pounding performance that we just default to.

Rusty Rueff: Yeah, that’s great. You know, to that point, you actually write that evangelical Christianity has developed a culture in which no one’s really surprised. When someone prays to receive Christ, then they just continue on in the same lifestyle. Right. With minimal change. Why do we think that is? I mean, how do we get to that point? And I think you’re uniquely qualified to maybe help us understand how do we challenge that trend?

Chip Ingram: Yeah, I’m really, really tempted to quote many, many Bible passages. And then I love to read philosophy and history. And I’m reading a lot about the last 100 years or so in America and in trends. But I’m going to skip all that and give you three very practical reasons. But they’re kind of rooted. No. One is a marriage occurred between the American dream and the gospel, and they got so intertwined that we got confused about what the gospel is and the American dream. And so part of our desire to get the gospel to people, we want to identify with the culture. And so this idea of being a consumer, being upwardly mobile, little by little by little, not just in the extreme prosperity areas, but in good Bible teaching churches, there came to be this sense that Jesus really came to Earth to make my life successful, a great marriage, wonderful kids, upwardly mobile, great education. And when he doesn’t kind of give me this great life, well, I’m pretty disappointed on him. And if he didn’t, you know, do his part of the bargain, I don’t know if I’m going to do mine. The second is that biblical illiteracy, once you remove the truth and then there’s relative truth and then there’s a pounding culture. A lot of people don’t know what the Bible says. I mean, I’ve been to very good Bible or in the churches and had a bunch of young professionals, all in their 20s, all very bright, all at a church that you would all know, a pastor that I know really, really wonderful. And for about 12 weeks, they all sat around my table in Atlanta and my wife fed all of them. And I did a Bible study for about 12 weeks. And I mean, it wasn’t three weeks. And some of them were living together, blatant morality. And literally it wasn’t like there was no sense of shame. It was you think this is wrong? And we would go to the scriptures and wow, you know, I didn’t know that was there. So I think that’s the second part. And then I think the third, which is pretty obvious, the cultural pressures. We had a sense where in the 50s changed in the 60s, rapidly changing in 70, the 80s. But the Judeo-Christian ethic tell the truth. Some certain aspects of morality, the culture supported the gospel view of life that’s completely changed. And with that, then what you find is to believe that marriage is between a man or woman, for instance, to believe that there is absolute truth. You’re on the outside looking in. And so I think that cultural pressure has caused a lot of people who, you know, would consider themselves Christian, go to church a couple of times a month, intellectually at least. Believe that Jesus is God, say the right things that doesn’t get transferred into how they actually live their life. But I think the difference is it’s not with the cognizant awareness that my life is really off. I’m really out of line with God. I think there’s a pretty strong deception that, hey, I believe in God. I’m trying to be a good person. And I go to church now and then. And I think we’ve redefined Christianity is, you know, be a little religious and try to be a little bit nicer person and have your morals, you know, five percent better than the next guy.

Rusty Rueff: Is that also what you because you talk about passive faith. Yeah. So is that what you’re trying to say there? And I mean, there are some dangers in passive faith, right?

Chip Ingram: Oh, it’s the most dangerous place in all the universe to be is deceived by definition. When you’re deceived, you don’t know it. The average Christian few statistics and I’ll try and wrap this into a cogent thought. The average committed believer goes to church one point six times a month is in the Bible less than two times a week. And then if you can imagine, even regularly, one to two hours, a couple of times a month to strengthen your faith and maybe reading the Bible once a week, maybe even getting together once a month and talking about spiritual things. Imagine the other one hundred and sixty eight hours of every week divided by all the bombardment of culture, movies, Netflix, social media. And it’s an avalanche of untruth in many cases that literally is crushing people’s soul. But when I feel like when I look around and say, you know, the people that I know are Christians, you know, they go once, maybe twice a month and I go to the mountains once a week. This you got to be with the kids in the traveling team. You know, we’ve made lots of ways where we look around. And the new standard is how is everyone else doing instead of what does God say? And if you’re not in the scriptures, you don’t know what God says. And there’s this movement. I don’t mean this critically. I mean this with compassion. In Bible teaching many evangelical churches, there’s a compromising of some very clear biblical moral standards and Christian institutions that are sort of affirming, you know what, I’m not sure Jesus was all that serious about this. You know, no sex before marriage. And, you know, and so what happens is the teaching even gets compromised. And so we have a generation of people who are in a pew. All the research says about eight out of ten people who would claim to be followers of Jesus. Their life is marginally or no different than their unbelieving counterparts. And it’s two sides. It’s scary because of the consequences. But I want to push the other side. It’s so sad because you’re missing out on so much. I mean, when God says do not be conformed any longer, like obedient children instead first Peter one, he says, but live a holy life because he’s holy. You’re called to be holy be transformed by the renewing of your mind. The intent and the heart’s desire was that people would experience the good, acceptable and perfect will of God wants us to have great relationships. He wants us to be at peace. And passive faith doesn’t deliver that.

William Norvell: All right. Yep. I’m going to I’m going to try to let you have some time to speak to this level of doers. So we’ve got you know, our audience is entrepreneurs. So I’m going to go out on a limb and say, no matter what you say, when people hear, you know, you need to be holier. And when people hear those statistics, they’re going to say, OK, I know how to do this. I need to get the Bible seven days a week. I need to get in church three point nine times a month, maybe even four point six, if that’s possible. That’s a long month, but five Sundays, right? That’s where my mind goes. I’ll share myself. Right. I’m like, gosh, I’m in. So so I need to go memorize Psalm twenty three tomorrow morning and I need to do this and I do that. I just go into that. And I’ve seen I know you write in the book that, you know, spiritual transformation is not the result of trying harder to be holy or do better. I hear that. I say amen to that. I don’t know how to do it. Could you give me and maybe some of our other listeners, some. How do I do that? It’s truth, but I receive it and can act on it.

Rusty Rueff: He’s asking, does God have copies?

Chip Ingram: Yeah, yes and no.

William Norvell: OK, that’s the new that’s the paradox is through it,

Chip Ingram: there is always going to be a challenge and a tension between our being and our doing. At the risk of being Bible teacher, let me speak to an entrepreneur. You always start with the end in mind. You have this picture of what you want to see happen. That’s how God works. So let me, in my mind, walk you through a very quick overview. Ephesians Chapter four, because if you don’t understand the flow, you’ll just jump. Into like what you just said, well, I just memorize more, I’ll do more, I’ll go to church more. At the core of life change is understanding identity. It’s all about identity, it’s not about performance gaining, impressing, it is you were in darkness, you are now in light. You were a son of darkness. You’re now the son of light. You’ve been sealed. You’ve been paid for your valuable, your wanted. Your future is secure. Now, I want you to have your beliefs or your lifestyle to be reflected in your behavior. And so the first place you go, contrary to what we do in most churches and I’ve been guilty of this is the first place we tend to go is read the Bible, pray, go to church more, etc.. Where the Bible goes is a command walk in a manner worthy of the Lord, and then listen with all humility, gentleness and patience, bearing with one another the very first place genuine life change happens in an environment just like that little green worm becomes a butterfly in the environment of a cocoon, genuine, deep live change where you’re doing flows out of your being. It happens in a level of relationships that many of us never have experienced. So the first step is, OK, I’m a brand new person. I have to be in close connection with other very genuine other believers. And that first place is my family. So with all humility, I’m going to grow by putting the needs of my wife and my children. If I’m married or my roommate ahead of myself, I can’t do that. Good. Now ask me for help. Well, then I’m going to do that with all gentleness. That means letting go of my rights. That means I’m going to do it. Well, I can’t do that. Good. You can’t do that. I’m going to help you ask me to help you to to use the power that you have instead of using people to use it to serve others. And then they’re going to make you a little bit crazy. And so you have to be patient with them. I don’t have that in me. In other words, what happens is you’re in this close proximity of relationships. The first command and how to walk is these. And then he goes bearing up with them and talks about this unity. And so what I want everyone to hear is the American individualistic sort of me, God, my Bible, our work really hard, I can teach myself. That is an impossible to change. It happens in the cocoon of authentic, deep relationships. Most entrepreneurs don’t have that. In fact, what you guys are doing with the small groups are critical. The second thing is the power isn’t your will versus seven through ten. I just covered verses one through six. Seven to ten is what Christ accomplished in between Friday when he died and Sunday morning when he rose and he defeated Death Sin Satan and declared it in the lower parts of the earth. And so he wants us to understand you’ve been given spiritual gifts, but the evidence, the reminder of those gifts are this. It’s supernatural. It’s I’ve given it to you. I beat death. I beat the power of sin. I took the penalty. And this giftedness, these talents, what I’ve given you, I want you to use those as a steward rather than this is my toolbox to make me great. And then he goes on to say an eleven to sixteen. I’m going to put some people in your life to help you get where you can’t go on your own. Apostles, prophets, evangelist, pastors, teachers for the work of the ministry. Why? So until we all achieve the fullness of Christ, that’s the goal. And then he says, if you really want to know whether you’re changing or not, he says, then we’re not tossed like children here and there. By every wind of doctrine, we speak the truth and love to one another, and we learn to participate to find out where we fit doctrinal stability. You know, the scriptures speaking the truth in love and then finding your part where you’re connected and loving others. And so what I want people to know is that’s just the runway. And then verse 17 to 24 is going to teach you your personal responsibility. Once you sort of are in that environment, it says, OK, put off the old. It’s like taking off dirty clothes. I used to be on porn. I used to drink too much. I used to womanize. Stop it. Renew your mind. This is what God says I am going to memorize. Here’s some doing. I’m going to memorize scripture. I’m going to put good things in my mind, and then I’m going to put on these activities and then what he does. And verses twenty five to thirty two, he’s going to say you can’t just try hard to do those. You have to go into training and he’ll take five specific areas that I walk people through that are strategic, going to training around integrity, go into training around work, go into training around your emotions, go into training around your attitudes. And I talk about how to take it off, renew your mind, put it on. So it’s the whole chapter. And for people to understand it’s a journey, it’s a process. It can’t be done alone. It has already been accomplished. And this is that phrase, and you’ll hate it, but it’s true, it’s appropriating what you already have. The Christian life is letting Jesus live his life through you, not you busting your rear end, I’ll say that on this one in order to somehow step up and be that good Christian entrepreneur that, you know, your high integrity, you got a great marriage, you’re being a great dad, you’re growing a good company, and inside your soul is crushed and there’s envy inside and there’s fear and there’s anxiety that is not God’s plan for us. Sounds like you got a sermon instead of a discussion. Sorry about that.

William Norvell: So I was just going to say, that’s a you know, those old school things used to rip them off. It’s like a five minute sermon, James. I was like just gave us a sermon. Jamira It was a service jam. We’re just going to get a print that Amen

Henry Kaestner: appropriating what you already have. A guy called me up seven or eight years ago and he said, listen, I think I’ve got a word from the Lord for you. And I’m like, OK, go with. And he said, you know what? My sense is that you’re really good giver. And I feel pretty good about myself, I said, but my sense is also that you’re really bad receiver and like, Oh my goodness, I felt good for about two seconds there. And then I think that entrepreneurs tend to be doers rather than because we tend to be givers rather than receivers appropriating what we already have and letting that sit in. Someone gave us you can’t change. You can’t really think and expect to change aside from being bandaids or any type of change in your actions will be temporary if you haven’t really just really received.

Chip Ingram: Yeah, I think you’re right. In fact, you know, the number one entrepreneur in the church is Peter. I mean, Jesus didn’t you know, sometimes we downplay yes. They weren’t the most educated guys, but they had a fishing business, you know. And what was his number one challenge? Lord, don’t wash my feet. And I think my time with God has so changed from did I read my Bible, how long do I have to pray? How many verses of my memorizing and how am I negotiating all of that to. I just want to be with you. I would like to hear what you want to say. I’m glad that you want to see me. I’m glad that you’re kind. I’m glad your understanding is infinite. Like this morning, I woke up extraordinarily early for me and I laid there for a while thinking it’s got to get at least to the four before I’m going to get out of bed. And and I just had

Henry Kaestner: seven thirty this year and this was seven thirty three. You want to wait for it?

Chip Ingram: Yeah, it was kind of three thirty eight. Goodness. And you know, I’m glad to wake up whenever the Lord wants me to get up, but as I lay there, it was just my mind. He was all the kindness, the grace, the good things. And I just sensed it was like the Lord just wanted to be with me. Let’s get up together. And I made a cup of coffee, went down, sat on the floor of my office, lit a candle, lean back. And then I got my journal out. I just I started writing thank you. And I got into like five pages. And, you know, I didn’t read the whole Bible a whole lot. And but what’s changed is I’m receiving I just I don’t think God’s surprise that we’re needy. I don’t think God’s got his arms crossed and has a little, you know, like, OK, only two stars on the refrigerator, on the big refrigerator in the heaven for you today. And you only prayed for seven point eight minutes. And I think here’s the key. Do you love me? Am I most precious, you treasure me is your ambition to please me, and do you mess it up every day? And do you sincerely come and say, you know, Lord, I did this. This was just yesterday. I had to text two people in my office and apologize. Something came up and I could feel myself getting a little ramped up. I said, no, hey, here’s the deal. No, those are the deadlines. And I went off a little bit and, you know, their eyes kind of got a little bit big. And in my defense, I, of course, didn’t mean too much by it. But I realized was it was like that old flesh cropping up that, no, we’re going to hold that publisher accountable. They said they’re going to do this and blah, blah, blah. And it was with a tone of voice. And, you know, so we joked about it, you know, and then I drove out and I was in my car, went to go work out. And Holy Spirit said, you’re joking about it, but joking about it doesn’t cover it up. GIPP That was the old you. That was they need to make this happen. They need to live up to this. You’re going to make it happen. That’s displeasing. That doesn’t make me happy. You need to apologize to the people in your office. Of course, then you have this like maybe tomorrow, you know, Holy Spirit says, no, you need to address that right now. And they were gracious, but it was interesting. The piece left, you know, it says, let the peace of Christ rule in your hearts to which you called into one body and be thankful the piece just left. And the moment I apologize to both of them, ask them to forgive me. It was just like that’s what we’re talking about, that when we say, how do you change? That’s what we’re talking about. We’re not talking about you got it all together and you never blow up. You never I think it’s being authentic in your relationship with the Lord and responding to how he leads you. That’s a good word. Henry receiver. It’s good. I’m not very good at receiving either. Maybe we should receive with one another,

Rusty Rueff: so, Chip, you know, you understand entrepreneurs as well, if not better than any pastor that I’ve run into. So let’s say we’ve got a listener who’s committed to this transformation. Right. And I don’t want to turn this into doing. But they are asking themselves the question, you know, are there elements of the climate around me, right. As an entrepreneur that if I could just maybe change or shift or think about them differently, you know, it would help support me in the real transformation that I want to have happen in my life, you know, talk to our entrepreneurs about those elements of a climate.

Chip Ingram: OK, I’m going to talk about the climate and then let’s dispel something, because we’re unconsciously, not explicitly, but we’re implicitly applying. You either should be doing or being. No, no, no. What we’re really saying is you’re doing needs to flow from your being. That’s a fundamental difference. It’s let’s face it, if you don’t do anything, you don’t have a company. You know, if you don’t do anything, you’ll never change. But that doing can be I’m going to prove myself. I have to make it happen filled with anxiety and fear and or it can flow out of a quiet center where the spirit of God is empowering you and you are collaborating with him. It’s not all God or it’s all me is together. But there is an environment. I like to I have an acronym for life that I have never met and I think the Bible teaches this. I think history teaches this. My little acronym that that acronym is not operating in your life. You will not change. And the acronym for Life is bio like, you know, bioethics or biology bio. And three things have to happen in any believers life. Number one, the B stands for before God. I believe you have to come before God daily. And by that I certainly mean a specific time that the reformers had this idea were like, yes, I meet with God in the morning first thing and then I’m praying. I’m living before the face of God all day. I’m praying in the car, meditating on scripture I’m in. In other words, I want to be before God. I’m living a life before God consciously and with some regiment of God’s word and prayer. And then I believe it’s important to come before God corporately. You know, the rhythm of Jesus was once a week and there is something to hearing the word of God preached. There’s something to being in a community of people and singing together and worshiping God that is transformational. The eye is for in community. And I don’t mean just in a small group. When I was a younger pastor, I used to say life change happens in small groups. And it’s true. I got into too many small groups where there wasn’t life change. You know, we were talking, you know, we read a verse, someone filled in a blank and hey, who do you think the forty Niners are going to take this quarterback or, you know, the women are over there going, hey, did you see that sale? And so and so, you know, and so in community is the kind of heart to heart, face to face, authentic, dependent and raw connection with one another. We’re the two strong edges of in community. Our number one, the real me can show up and the real you’s going to show up and you are going to love me and I’m going to love you enough that you can share your deepest hurts and struggles. That won’t shock me and that will go nowhere else. And this is a safe place to process this. And the other edge of that is that if you keep sharing the same struggles that are just sin and don’t do anything about it, or I see you drifting and doing some stuff that you know and I know are wrong, I’m going to love you enough to not in my mind go who am I to judge? And I’m going to get in your grill and I’ll sit outside your home and I’m going to tell you I love you so much. This says that we’re not playing games. I love you so much. I’m watching how you’re relating to your secretary. And that’s bad. The last time we were together, you know, I could tell, you know, you didn’t have a glass of wine after dinner. I could tell on the phone, I don’t know what you’re doing, but and when you have that, see, that’s genuine accountability and love, but that’s in community. That’s what Jesus had. And the third one, the O is for on mission and on mission means it’s two aspects. One is the moment you wake up, you’re a servant of the living God. So if you’re a husband, it’s what does my wife need? What am I kids need? What’s going on around here? I’m a servant leader. When I pull out of my driveway, here’s a neighborhood and I’m Christ ambassador when I get to work or where my startup is, the garage that we’re hanging out. And I’m going to serve when I go to church. It’s not like, you know, consumer, where can I make a difference? And then the on mission then primarily, as you discover, as you mature, this is my primary spiritual gift. These are my talents. And I can be best used by taking 80 percent of my service orientation around what I do best, what God uniquely made me to do. I call it my teachings to calling and so be I owe. And what it does for me, it’s like this is for life. Well, what life? This is the life of Christ being produced in me, because, B, we always become like people we hang around. So I’m going to hang around with Jesus. I’m going to hang around with people who love him, and then I’m going to serve because there’s something about giving away giving it’ll be given unto you. Good measure, pressed down, shaken together, running over. As you give your life away, you discover it. So that’s the environment and those are dues. Those are flat out. And I do it when I feel like it and I do it when I don’t feel like it. That’s the other point. You guys got me off. But I think we’ve got this idea that if I don’t really feel like serving or loving or reading the Bible right now, I don’t want to be inauthentic. That’s a bunch of garbage. Doing what you don’t want to do or feel like doing is probably one of the greatest evidences of love ever. Jesus did not emotionally want to die for you, OK? He he didn’t go to the garden godfather. We’ve got this all planned out. This is going to be awesome. You know, it’s going to be pretty tough on me. It was like emotionally, I don’t want to do it. If there’s any plan B, it’s choosing to do the spirit that produces discipline. Discipline is a spirit produced ability to do what you don’t feel like doing and doing what needs to be done when it needs to get done. And I think when I do acts like that for my wife or for God or for others, I think I might be more loyal and more loving than ever before because I sure didn’t feel like doing it. I was a little bit of a long explanation that helps count that sermonette.

William Norvell: Number two, double surman jam you got. You got to serve James.

Chip Ingram: I can’t I’m starting to feel the Jones here.

William Norvell: I know. I feel like we got to get second. Our guests like our get you to a gym, one or the other. We got we got two scoops there.

Rusty Rueff: All of a sudden we’re big scoop. There it is.

William Norvell: I got a baby killer is killing it. I just can’t think of anything better for an entrepreneur to I mean, the way you beautifully articulated that. I mean, I just there’s so many things you just have to do out of love for your company, out of love for your vision, out of love for your employees, out of love for the investors you’ve promised. You know, I would imagine any listener here is one hopefully going to go pick up your book and to not going to look at Ephesians for quite the same way again,

Chip Ingram: in my mind’s eye, could be crazy. But I had this sense of what we’ve said and how I might be thinking about what I need to do. And I just want to say one thing. This can’t be done alone. It just I mean, the level of intensity, the discipline, the encouragement, the failure that you’re going to have, every command in the New Testament is in the second person, plural, this Christian life, it’s Christ living his life through you. But it’s not hard. It’s impossible. And we can’t do it alone. My number one thing for those listening would be who’s a brother? If you’re a man or who’s a sister, who’s someone that has the kind of walk with God and you have the kind of relationship that you might say, you know, man, I was listen, this podcast Faith Driven Entrepreneur and I got to have at least one other person in my life that wants to do life this way. Yes. We want to build a great company and yes, we want to have great families, but it’s got to flow out of a deep, abiding relationship with God. I need help. I need help doing that. I just wanted to encourage our listeners with that, because those of us that want to make something happen, I don’t usually wait around for someone. I just get going. And I think this is one you need to get going. But, boy, you need to get going with someone.

William Norvell: I love it. OK, I know. My last question now, I’m going to ask you, Jeff, what is your favorite, maybe not favorite the wrong word, but what is one of your favorite partnership stories in the Bible where you say that is a partnership someone should go read about to be encouraged to find a partner for their journey to partnerships?

Chip Ingram: Come to my mind, I think I love Jonathan and David. David would not be David without Jonathan. And not only humility of saying, hey, you know, rightfully being this king, that’s my deal. But I recognize God in his hand on your life. But there’s this classic time when David literally was going down the tubes and the circumstances, you know, it would be like all your investors in one day said we’re not going to invest. The bank calls your note and your top three employees quit. That was where David was. And it says Jonathan went and encouraged him and God. And I think the other partnership is Barnabus and Saul. If you read acts very carefully, Barnabus really is the leader. I mean, he’s the head man, but he sees a need that someone else is better at filling. And he goes and gets Paul because he knows Paul’s real gift with the Gentiles. And then they do these tours together. And you read the Texas Barnabus and Paul Barnabus of Paul Bond with Ron Paul. And then over time, it’s Paul and Barnabas. And it’s that humility. Barnabas, even the kind of convictions that he’s an encourager. He recognizes his strengths. And he says, you know, second journey, we need to take Mark. And Paul says, you know, that threatens the ministry now comes too important. And I think they were both right. So Paul says if you want to keep being encouraged, you’re you go ahead and take Mark. This guy’s got potential. Titus, you come with me. They double the ministry. Years later, Paul would write, send Mark and the parchments, especially the parchments, because Mark is of great value in service to me. Barnabus didn’t give up on him. So I think the kind of partnerships where, you know, their seasons, their specific roles, there’s genuine humility. The goal is the kingdom. It’s not, you know, who does what. It’s about fulfilling what God wants. Those are the ones that throw my heart.

Verne Harnish

Founder | Entrepreneurs’ Organization

Verne Harnish is founder of the world-renowned Entrepreneurs’ Organization (EO) and chaired for fifteen years EO’s premiere CEO program, the “Birthing of Giants” and WEO’s “Advanced Business” executive program both held at MIT.

Founder and CEO of Gazelles, a global executive education and coaching company with over 150 coaching partners on six continents, Verne has spent the past three decades helping companies scale-up.

The “Growth Guy” syndicated columnist, he’s also the Venture columnist for FORTUNE magazine. He’s the author of Scaling Up (Rockefeller Habits 2.0); Mastering the Rockefeller Habits; and along with the editors of Fortune, authored “The Greatest Business Decisions of All Times”, for which Jim Collins wrote the foreword.

Verne also chairs FORTUNE Magazine’s annual Leadership and Growth Summits and serves on several boards including chairman of The Riordan Clinic and the newly launched Geoversity.

CONTRIBUTIONS TO FAITH DRIVEN ENTREPRENEUR

Episode 166 – The Decisions That Define Successful Companies with Verne Harnish

Today’s guest is Verne Harnish. Verne is a world-leading expert, speaker, author, and entrepreneur in the field of business growth. He has spent more than 30 years educating entrepreneurial teams. 

As part of his personal mission to support entrepreneurs, he co-founded Growth Institute, a premier online training company that has helped mid-market companies in over 50 countries learn and implement the latest business methodologies. 

Today, he’s sharing with us some of his top tips for entrepreneurs, his personal stories, and the ups and downs that every entrepreneur is familiar with.


Episode Transcript

*Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDE movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

Verne Harnish: Our biggest constraints are our own beliefs and our own self talk in terms of the restrictions we put on ourselves, and it’s this need to continue to learn otherwise. If you’re not growing, you’re dying.

Henry Kaestner: Welcome back to the Faith Driven Entrepreneur podcast, we have a special guest today who is on the phone and actually on video zoom as well, the best dressed guest we’ve ever had out of one hundred and forty episodes, I think Rusty. Can we agree to that?

Rusty Rueff: Without a doubt. I mean, if you saw Henry and I right now, you know, at least Henry shave today, I don’t think I got around to that.

Henry Kaestner: No, no. You know, we got into this podcast business because I’ve got a face made for radio. And Justin has said he wanted to do some of these video outtakes and I didn’t get the message. I’m clearly not dressed for it. But Verne is for really, really good so far. And thank you for being with us from Wilmington, Delaware.

Verne Harnish: Thank you, Henry. Glad to be on.

Henry Kaestner: And there’s a whole bunch of different things that we want to get into today and lots of different things that God has done through you and Ito. But before we get into that and some of the lessons that we’d love for you to share with our Faith driven entrepreneurs, give us a background. Who are you? Where do you come from?

Verne Harnish: Well, originally, Denver, Colorado, and then ended up in Kansas through an accident of my dad’s company failing and he himself really plunging into depression and alcoholism. And it really is the riches to rags story and ended up from Colorado and Kansas and from there, helping grow a company and landed really is an associate of a really successful entrepreneur, their doctor friend, Jabarah. And we launched the Center for Entrepreneurship. I built a group called Associates, including Entrepreneurs, then White Young Entrepreneurs Organization. Then we all got old. So we got rid of the Y and now it’s e0. Today we’re about fourteen thousand members on our way to twenty five thousand worldwide. And it’s been great that we’ve been able to, I think, touch so many entrepreneurs because as you and I were talking about before the broadcast started, we know within our community that depression, especially in the West, is one of the highest rates among entrepreneurs and those are leading companies. Just because the unbelievable pressure that we’re under

Henry Kaestner: now, I want to get into that. We’ve had another podcast guest that really helped us to understand the challenges with depression and tragically, of course, suicide among entrepreneurs. The entrepreneurial journey is a lonely one. It’s full of isolation. And we don’t spend nearly enough time talking about that on the show. So we’re going to get into that before we get into Ito and ask you a little bit more about I’m particularly interested in your experience with collegiate entrepreneurs. I started a business in college and loved it and ended up doing something different with my career. But there’s something special about this kind of formative years, and I’d love to learn a little bit more about that. But give us a round out the personal story a little bit and just mention the fact that you’ve got kids before you in. You mentioned the fact that you have been on the Compostella road with Rusty, our co-host. So there’s some other cool things going on in your life, too. But also you’re a member of the International Brotherhood of Magicians.

Verne Harnish: I am. And it happened to be my minister when I was in high school. They got me involved in magic. I was the church organist in the Congregational Church there, Kingsley, Kansas, along with Faye. And so we would switch off Sundays. And so it’s been interesting. I’ve always been very close to my spiritual leaders. We literally have always been dear friends. I would just spent the weekend with my present pastor, Dave Norman and his wife Kathy, and we were getting ready back in the late 70s there to do the junior prom. And it was all around that theme of magic. And Rod, my minister said, hey, I got my start in the insurance business and I used to do these kind of remember the insurance guys used to visit your home. And so we had some sleight of hand things that he would do to entertain the children while I was talking to the parents. So he takes me down his basement and he has this whole menagerie of magic equipment. So he got me started in it and I’ve kept it up since.

Henry Kaestner: That’s super cool. That’s super cool. I’m not going to put you on the spot and ask you to do a magic trick, but that is different. You’re the first day you’re the first guest we’ve had.

Rusty Rueff: Has anybody Vern, can you do magic tricks like audio wise?

Verne Harnish: You know, it’s been interesting that we’ve been hosting some magicians on our virtual summits and there are some really amazing magicians that have made a pivot to this particular medium. I am not one of them. And all my stuff was big stage illusions, which in some sense is a lot easier than the sleight of hand.

Rusty Rueff: Well, we’re missing our co-host, William, so we could just say, hey, Vern made him disappear.

Henry Kaestner: Yes, yes, yes. That poof, just like that. That’s funny. Plenty better than Sunim and half burnt. So come back to you mentioned something. There is. We’re just getting started. It’s just super, super important. And I think it’s obviously very, very timely. And it’s the loneliness and it’s the isolation of an entrepreneur. I don’t know that there’s a more lonely spot in the marketplace because there’s some extent that you’re selling something to somebody all the time. You’re selling people to join your firm. Sometimes you’re selling them to stay employed at your firm. You’re selling to venture capital, you’re selling to partners, vendors, customers, and then you come home at night and sometimes you get to sell your spouse who thinks you should have kept your job at Deloitte. She says, you know, how are things going? And if you just feel like you have to say things are going well to her, too, and every time you do that, it just furthers the isolation. And that’s the cross that you bear sometimes as an entrepreneur. And of course, there’s answers to this. None of them are easy, but riff on that a bit. What do you see? And maybe, first of all, let’s acknowledge it and then maybe we can collectively talk about what we do with it.

Verne Harnish: Yeah, well, it was interesting when I launched my very first speaker was Joe Mancuso. And Joe has been around for decades with the CEO clubs. And he had a phrase that I asked them we could borrow really is the mantra for Ace and White? Yeah. And he said it’s OK to be independent, but no reason to be alone. And today, I’m actually a co-founder of an organization out of Panama with Nathan Gray. And Nathan worked directly with Mother Theresa. And he tells the story, as many of them have heard versions of it, that when she came to the United States, when she left, she said, wow, that country has got quite an affliction. And she said it was loneliness. And I really do think it’s interestingly more unique to the US than I saw in Europe. One of the reasons I loved living in Barcelona for eight years was the sense of community and the sense that you are not alone. We had our flatcar group, as you know, Rusty, which were a lot of the group that went on the Camino, you know, for Doug’s fiftieth birthday. But you come back here and it’s interesting, particularly men over the age of fifty five, you ask them who’s their best friend and they normally respond their spouse or significant other. And by the way, that doesn’t match what they report. And I’ve often shared with men as part of our one page personal plan. Hey, you know, who would be your eight pallbearers? And I tell you, they struggle with that question. And I did. And I said, look, I need to make it really a priority to be in small group. And so really at the heart, I think of the great churches. We did it and we’ve done it in our congregation. And I think it’s about the heart to be on. Why success is the thing called for its small group where I’m having a reunion of my Barcelona have formed literally tomorrow. And it’s this safe place where you can be in community and share some of your deepest, darkest thoughts in a very safe environment so that you’re not alone.

Henry Kaestner: As you have had your own entrepreneurial journey and you see this burden that entrepreneurs bear in knowing that being a community and being in a real relationship with others is so much of a big piece of fulfillment and joy. How do you see faith working in to that? Because you’ve seen so many different entrepreneurs out there and seen entrepreneurs battle with mental illness. Do you see faith having any advantage at all?

Verne Harnish: Yeah, it’s actually huge. And it was the revelation for me was one day in church, Dave was given a sermon and he pointed to some passages in the Bible where really basically said the folks are going to let you down the most are those closest to you, starting with your family. And we often, if I ever pivot away from that for a moment, we’ve been talking a lot to companies about how they’re always saying they want to be like a family. But, look, I wouldn’t wish my family experience on anyone, including their company, that whole idea that dysfunctional family is a redundant term. I think it’s true. And I know it’s been that case in my life that has been the closest to me that I’ve actually betrayed me. And how critical it is that you have that deeper, broader faith in God that’s not going to let you down. And to know that is how you’re able to kind of get through all the pain and issues that you’ve got to navigate, because no one has had an easy path, particularly in the entrepreneurial world that I’ve seen. And so that’s why I think faith is so critical as a foundational component so that you can weather the storms, particularly those that you’re closest to.

Rusty Rueff: So take that vision into an area of expertize which you have written about and you talk about all the time, which is decision making. So, so many times we have to make decisions. We come to the fork in the road and our entrepreneurial journey. I was on the phone this morning with, you know, a couple of entrepreneurs that are looking at multiple term sheets, which is great. Right. And they’re sitting there going, which one? Which one? Because they’re close enough. So maybe take us through decision making and then applying our faith into that decision making.

Verne Harnish: Yeah, well, I don’t know why it came to me, but the minute you were saying that I was thinking about the story, you pray but roll away from the rocks. And it’s one of those kind of things where at the end of the day, you’ve got to trust your gut, your own judgment with faith, I think feeds into that. But you need to verify. And so it’s so important to go out there and do the work and to gather the information. I again, it’s a little off topic, but decades ago I read this book about Swiss bankers and how they make decisions. And it really was back to this. Trust your gut, but verify and go out and get firsthand information yourself before you make any kind of decision. And then we literally had this Russian FDE who was kind of at MIT for a while, and she was studying the executive decision making and she really talked about the importance of going inward as the labyrinth experience that I just did Sunday at my pastor’s place, where you have to go in first before you can come out. And part of that was once you feel like you’ve gathered all the information you can, it really is a process of getting quiet in a meditative state and truly listening to your gut. And if it feels wrong, don’t do it. And you can trust that.

Rusty Rueff: Yeah, I grew up in Indiana and was a big fan of Bobby Knight’s motion offense. Right. And he he said, you always, always pass the ball four times before you take a shot. Right. And that just by doing that every single time your percentages go up. So also, I think what you’re saying is surround ourselves with godly advisers so that we pass that ball. But at the end of the day, we have to make the decision as to whether or not to take the shot all on our own.

Verne Harnish: Yeah, yeah. It’s a journey inward that you have to take in order for you to come, I think, properly to the world externally.

Henry Kaestner: So I love that we’ve gone here. I think that decision making is another topic Rusty that we don’t spend enough time talking about on the program. And we’ve got a guy that’s written a book on it and talked about it a lot. What are some of the mistakes that you see entrepreneurs make? What are just some common mistakes like, oh, my goodness, that’s so you could have seen that one coming a mile ahead.

Verne Harnish: You know, I have a chapter called Barriers. Really, the three things that get in the way of scaling. I’m not as much as an expert on the startup as I am the scale up. And the first one is right between your ears. Our biggest constraints are our own beliefs and our own self talk in terms of the restrictions we put on ourselves. And it’s this need to continue to learn otherwise. If you’re not growing, you’re dying. The second one is a very practical one, which is just being able to get the infrastructure in place to be able to scale. And it’s not easy because you’re dealing with humans and everything was going great until humans showed up, it seems. And then the third one is very practical, which is around marketing. So those are the three that unless those are addressed properly, I find folks really get solved if they want to scale

Henry Kaestner: going a little bit. So there are a fair amount of startups that are on this podcast, no doubt, but they’re also a fair amount of scale ups. The startups want to be scalable. So we’re all going to be confronting these three issues in the course of our business career. And even better to be able to talk about these before people are even scaling so they can start thinking about these things, go through all three of them. And I’m particularly interested in the decisions on marketing. But just walk us through the framework, please.

Verne Harnish: Well, let’s start with marketing. Since you did so, I saw that you had mentioned Steve Jobs on one of the other podcasts, and I saw him as the original young entrepreneur. It was not cool to be an entrepreneur back when we were doing it. As you know, Henry, our parents view was, when are you going to get a real job doctor, lawyer, accountant kind of thing? And then Steve came along and he showed a guy in his 20s could get to two billion. And so I wanted to understand and the key guy was Regis McKenna. You know, he’s a fixture there in Silicon Valley. And he taught Steve an intelligent and tech. And so in nineteen eighty three, as I was launching a look, I thought, hey, if he’s good enough for Steve, he’s good enough for me. So I called him, reached out to him. We did have email or any of that other stuff. And I had a good purpose, which was really to build an organization for guys like Steve Jobs, who I had hosting an event for. And I saw him literally standing alone in the corner. And I thought, wow, Joe Mancuso said it’s OK to be independent, but no reason to be alone was playing itself out. So we Regis agreed to help me in. And the idea that he shared and strange he comes back to small group again is he said, all right, I’m going to try to talk to Steve. And he said, take a piece of paper out and make a list of all the key people that you need to kind of bolt on to this venture that you need to get bought in. And he said the bigger the names, the fashion scale. So, look, I’m young, dumb and broke because that song would say at Wichita State and I wrote down President Ronald Reagan, it’s nineteen eighty three. I want to be the first president to utter the word entrepreneur. Well, later on I did and got invited to the White House. And number two, I put Steve Jobs. And thirty six months later, I hosted his first public speech after being fired from Apple and Michael Dell. And then I put down and Venture magazine. I didn’t know who the founders were, but I became their friends and dear friends are there, are still alive. And I visit him and go at least once a year. And it was crazy. We worked through that list and within thirty six months we were global. Took the first group of young entrepreneurs hosted by the government to China in nineteen eighty six, and we’re talking about three years before Tiananmen Square. And so it was an unbelievable run and that has been really the tool is to others that we are able to achieve what it is that we need to achieve and not alone. We were met, I think, to be in community and that was the process that he taught. And we still use it today in marketing. We had a startup out of Austin. First thing you do is you put a list of 50 together. You didn’t know anybody on the list, by the way, but he found a couple of guys that did. And within about three months, he had forty of those fifty on board. And everybody saw his venture was global because everybody was talking about it. And so that’s really the marketing piece.

Rusty Rueff: You know, now, Vern, back when you wrote that list, if you actually would have written down to be on the Faith Driven Entrepreneur podcast, you could have actually been prophetic, too.

Verne Harnish: You know, I just I was clueless there in my cast.

Henry Kaestner: Ronald Reagan, Henry Kissinger, Rusty RWF.

Rusty Rueff: Yeah, exactly. It could have been really something.

Verne Harnish: Well, but now I am. And I suffered tremendously. And we’re getting ready to find. 10X the influence that we want to have around the world over the next decade. So you’re kicking it off for me properly here.

Rusty Rueff: I want to take seriously a little further into discernment. So when you talked about surrounding yourself with these people and the things, the entrepreneurial journey, as we know, can also be lonely because everybody around you is depending on you, right? You’re the founder of a company. Everyone’s depending on you to capitalize it, to grow it. They’ve thrown their livelihood, their family’s future into your basket. And you have to be able to discern the voices that are around you as to whether or not they are speaking truth or speaking the truth that you want to hear. Do you have any advice on how to get to that discernment?

Verne Harnish: Yeah, well, first, I love the word I had written Mastering the Rockefeller Habits and had moved to Ashland, Virginia and joined a new church, Crossroads Methodist. And Dave, the pastor, immediately said, hey, Vern, why don’t you kind of take us through your process? And it was interesting you said, though, but I want to add something that’s different. I’d never done up to that point, a planning session for a church, let alone my own. And that’s when I learned about discernment. And I thought this is a process that we ought to be bringing more in to business in terms of getting quiet. And all that discernment involves in order to get clear about the decisions you ought to be making moving forward. And so first, I just love that you brought up that term. And I don’t think we talk about it enough in just our strategic planning process that a lot of folks are going into right now as we get ready to try to hope that twenty, twenty one is going to be a different animal than what we’ve been through this year.

Rusty Rueff: Oh, that’s good. I think it is an important you know, you don’t learn it in business school. Right. And no one really coaches you into it. So to have to rely on it being an innate quality is risky because you run into people and you just go, gosh, they’re listening to the wrong people or they’re taking the wrong advice. And you wonder why, I guess.

Verne Harnish: Well, and by the way, it’s very personal. I had a very tough personal decision to be making right now. And so it’s one of the reasons I stopped in to see Kathy and Dave this weekend. And Dave and I went out on about a two mile hike. And that’s why through all my difficult periods, I even have a rabbi, Dr Steven, Rabbi Barres, as one of my spiritual advisors. And when I get in a crunch and I need to make some of these tough decisions, I go walk with them and I literally try to walk with them. And because they’ve got a depth of spirituality that I haven’t come close to achieving, but I recognize that’s their gift. I really enjoy tapping into it. And it’s crazy. On that two mile walk, as we were coming back in silence, something came to me and they’ve then shared it, came to him right at exactly the same time. And I shared it with him and he confirmed it. And it was crazy, the calmness that came over me, because it was the thing that was causing the most angst here in the last couple of weeks. And I got clear on the decision. So that’s why I think part of your team, your set of advisors absolutely has to be someone that you’re close to on the spiritual side that can bring that perspective particularly to the toughest really human decisions that you have to make.

Henry Kaestner: I think that’s really profound and I think it’s a good bridge over to the question I have. But let me just underscore that for a second. I think that a mistake that many entrepreneurs will make is seeking counsel for other people that have been further along on the journey and scaling up than they are right now and then overemphasizing some of the feedback that they get on some things that are maybe human or personal in the fact that you went to your pastor who presumably doesn’t know as much about business as you do or others you might seek counsel from, and asking him for discernment on a particular human issue I think is important. And and one of the human issues, of course, it’s the most important for any actor is building a team. Yeah. Making decisions on hiring. And I’d love to get your take and then Rusty, I’d love for you to chime in, too, because you spent so many years in human resources as an entrepreneur is looking to make decisions about who might join their team, senior management, maybe even a partner, but just anybody on their team. What are some mistakes you see or what are some of the tools that you think are most helpful for an entrepreneur who wants to build a great culture and build a great team?

Verne Harnish: Yeah, if it’s OK, I’m going to take that question a little different direction. You know, I find interesting is that Gallup has been measuring engagement for like 50 years and the percentage of engagement hasn’t moved a percent. It’s been 19 percent for decades. Yeah, we’ve got six thousand business books that seem to be written every single year. My guess is that most of that that’s been my experience is really not worth the paper it’s printed on, as my dad would say. And what I think it comes down to, interestingly enough, is just the simple four letter word. And obviously the greatest of those is love. But it’s hard to really know how to practice that on a day to day basis, if you would. And so the related four letter word, I think that’s important is the word care. And then I’m going to give you the third one. But they’re all related. We absolutely know that. There’s no way that they’re going to care for your customer, your company or you if they don’t sense that you care for them. And that is so fundamental. And we can talk about some real activities that drive that, particularly something that the head of Cisco just before he retired, revealed to some of our editors at Fortune magazine, John Chambers. But if you say then, what does it mean to care? I know this may be an oversimplification, but I think at the end of the day, if we take the late claque Christiansen’s, what I think most important strategy question ever popularized rest his soul. He passed away here at the beginning of twenty twenty as a great Harvard strategist. And that is what is the job to be done, you know, until you have a real deep understanding of the job. In his case, the four minute YouTube video, the job of a milkshake until that company understood what was the job a milkshake was doing for morning commuters, until you had to have that depth of understanding, you don’t know what to do next. And so we’ve maintained that the number one job of all of our products and services is ultimately to make someone else’s life for job easy versus hard. And that’s our real job, is to go kind of person by person, customer by customer, and find every day. And I want to come back to that topic in a moment of whose lives you can help be just a little bit easier today. That’s what I think it means to be in service or to be a servant leader. And then if you turn internally, if that’s the job, your product or service, then the leader only has one job, and that is to make sure that his team’s job in life is easy, that they feel cared for and thus feel locked out, of which, again, the greatest commandment is love. And so that’s the thing that we I’ve got a big virtual summit next week and we’ve got almost 600 leaders and we’re going to be digging into that very topic moving forward.

Rusty Rueff: It’s a great point. The idea of so many entrepreneurs, they do use the word love. They say, I love my job, I love my company. But then, you know, how does that translate? And I think care is a great is a great bridge, you know, between your emotion and your actions. So I love that. And in fact, I was talking to somebody other day. I said we need more caring practices. You know, we talk about benefits and perks. Well, no, no, no. Maybe they need to be caring practices because, you know, in this world that we’re now in with distributed work, you know, the hub and spoke model is gone. We’re all a bunch of nodes. You know, we’re just nodes out here on our own working. And we’ve got to be mesh together and the caring practices are going to become really, really important. But you know, Henry, to your point on building teams, you know, this taking a caring attitude towards the hiring process means, you know, taking it more than serious, taking it, as you know. Would I inflict upon people that I care about, a team member that I’m not absolutely sure is going to be great into? Vernes words make life easier for them because they’re they’re you know, I find one of the mistakes that a lot of entrepreneurs make because we are going at breakneck speed is that we hire at breakneck speed. Right. We just like, oh, it’s OK, get them hired. They’re in here. If they don’t work out, that’s OK. Well, you know, that’s not OK because there’s a life on the other end of that’s not OK. It’s called somebody who just, you know, didn’t work out. And now there’s a problem in their career forever. But it’s. Also, the fact that the damage that someone can do who is a bad hire because we just hurried up and we didn’t take our time and we didn’t do our diligence and we didn’t check the background and we should have paid more attention in the interview. We should have looked a little deeper at their experience, can have long term repercussions. So that, to me, Henry, is, you know, take it seriously. Someone said, well, how serious should it be? I said, well, think about sitting a Supreme Court justice. Imagine you couldn’t fire the person that you hired. Would you hire them? Think about that, would you hire that person if you knew you could not fire them? We’d make a different decision.

Verne Harnish: You’ve got to love about Southwest Airlines. You know, through all of this thing, they’ve not let anyone go very United and American Airlines have and they take that fiduciary responsibility seriously. But what that story reminded me of, you don’t mind me sharing it is it goes back to making the list. So I had a chance to serve on a board in New York on a nonprofit helping inner city youth called Nifty with the infamous John White Hat. John was co sure Goldman Sachs.

Henry Kaestner: He featured in the book Liar’s Poker, which is formative for kids coming out of school wanting to work on Wall Street in the early 90s.

Verne Harnish: Yeah, and he was then responsible for doing the redevelopment of downtown Manhattan after 9/11. And so I had a chance to chat with him briefly at a board meeting. And I always ask the question. All right, John, so what have you learned in life? And he thought about for a moment, he goes to always do a little bit of retail business every day. And he said, let me explain. He said, when I was a Goldman, even I was co-chair, I always made sure that every day I went down to the floor to see if I could sense one of our traders who was just having literally a bad day. And could I go there and provide some support. When he then was in the Reagan administration, deputy secretary of can’t remember now but commerce. And he said, I instructed my team that even though we’re working on all this big stuff, I want you to bring me every day somebody who a citizen of ours that’s stuck somewhere on the planet and just needs a helping hand today. They’ve lost their passport and they can’t get through our bureaucracy. And they’d love if somebody would just pull a string or two to get them out of this serious situation that they’re in. And I thought that is so powerful. And it it is precisely what Jesus has professed, that usually the people that we need to help are right in front of us. And so one of the things that has given me such joy after John and shared that is I have reached out to every day by people who said, hey, could you just can I have a phone call with you? And and I’m busy. But I thought, you know, I’m going to let the folks who come to me be God’s way of saying, hey, this is your chance to give. And as you know, the giver receives more than the receiver. And so I set aside purposely a half hour every day just to handle a situation like this. And it really was motivated by John’s great piece of advice to always do a little bit of retail business every day. And I think if all of us can do that, then everyone’s taking care of.

Henry Kaestner: That’s a great lesson. That’s a super encouragement, obviously, you see that all throughout scripture of Jesus taking care of the kids and talking about the people, trying to angle for the best seated banquet and just kind of reforming what status really looks like to have that discipline of a half hour a day, because I think that we’re all super busy. And if it doesn’t help us to accomplish our mission and we can see that clearly, we tend to just abandon those opportunities. And to your point, it helps us to understand the community and the culture better. And we’re the ones who end up being blessed through that unexpectedly.

Verne Harnish: Yeah. And so that led to one of the initiatives that I’ve really enjoyed sharing was launched by my partner, John Rateliff. John built a business in the call center industry. You know, it’s typically considered the sweatshops of the information age. They tend to burn through people to your point. Two hundred percent average turnover. Yeah, John took it to a record 18 percent. And he liked to brag that it was harder to get a job at Appletree than it was to get into Harvard. And that was true from a real numbers perspective in the turnaround really occurred when he launched. And I think it’s this idea that charity starts at home is that I really want to address this issue, that we have such high turnover front line, but I have none among my salaried people. And they looked at the Make a Wish Foundation as a model and launched that inside the company called Dream On. And he said, look, you’re helping me make my dreams come true. Let me do everything we can to make your dreams come true. And he put no limit on it. There wasn’t like within a certain dollar amount or whatever. Just what are your dreams? And it was interesting when he first launched it, the employees were so skeptical, you know, what’s the trick here that nobody would submit anything. Then finally, one of the women this company really submitted on behalf of another woman who had been beat up by her husband, had grabbed her child, got in the car and was living for the last two weeks out of her car with her child while coming to work every drop kid off at school and then come to work. And there’s nothing will humble you more than to know the personal stories of the people around you. And so they kick into gear and they get her in a hotel that night and arranged then for her to get an apartment. And they pay that first and last month’s rent. She made enough to get in there, but it was just that first and last in her situation and it was all anonymous. So they didn’t tell anyone. And she’s like, what do you mean not tell anyone? I’m going to tell everyone? And she did. And that unleashed the floodgates for question. What was interesting is most of their dreams were not big, and so many times they submitted dreams on behalf of others. The humanity that’s there, a bond, particularly the front line is, I’m sorry, magnitudes greater than the senior leadership. And I could share a story where John, literally through this, saved someone’s life. But it was interesting about two years ago when John Chambers retired from from Cisco, Alan Murray, our editor, asked him kind of a final question. Hey, John, is there anything you kind of did at Cisco that maybe most people aren’t aware of that you felt was most important? And he said it very humbly and nonchalantly goes, yeah, any of our employees or their extended family had a health issue I wanted that brought directly to my desk. And we would kick in and we’d bring to bear every resource Cisco had in order to help them. And I remember him saying very nonchalantly, we saved a lot of lives. And I knew right then why he was such a beloved leader within Cisco and had driven that company so successfully, because at the end of the day, he had this such giving heart and he understood that people are going through a lot of pain and maybe it’s not fair. But I feel like that we as leaders have a fiduciary responsibility for those who have been brought into our care because we do have to make sure that their families are OK. It’s not just our own payroll we got to make we’ve got to make all the others. And that’s why there’s this high rate of depression then among entrepreneurs because of this pressure, they feel

Rusty Rueff: that’s a great story. You know, and I mean, I don’t know. You might know I don’t know that John Chambers was driven by his faith. But yet, you know, those are good human values. Right. And principles, you know, in your line of business as you’re consulting and you’re speaking with others, I’m sure that you run into Faith driven entrepreneurs who seek you out. What about a story of encouragement about someone who because they live their faith out in either their decision making or how they ran their business? That could be very encouraging to our listeners. Do you have one of those for us?

Verne Harnish: Well, you know, maybe I should just share my own, because that’s what I great. Right, great authoritative to speak to versus someone else’s journey. So anyway, I had mentioned my dad’s scale successfully and then lost it all in the 70s through the recession. And it was really tragic on him and our family and the like. And so let’s feed forward. I’m growing my company. Half million million, two million, four million, getting ready to do eight million. I’m going to be an INC 500 company and boom, 9/11 hit. And we were out of business in about 10 weeks because the airlines have shut down and people need to get to our and I lost like a million bucks and 10 weeks. I’ve been dutifully losing money as I was scaling up, which is what you did in the late 90s. And so I was broke and I thought I was going to lose our home. And right at that same time, our church, Dave had just launched it and decided to go out with the largest capital campaign in our church’s history. And honestly, I’d throw a few dollars into the till every Sunday, but had never really made a commitment. And I thought it was interesting that we were hosting Richard Kurosaki The Rich Dad, poor dad guy who I always thought was this kind of get rich quick guy. But I thought, you know how to respect that. I read his book and he mentioned at the very end of it that folks, when they got in financial trouble, found that. And you’ve got to do it sincerely. You can’t expect anything in return. You have to give with no expectation of return, found that they needed to kind of seed the pomp and give beyond what was comfortable. And, you know, my church has been putting out all of those vibes here at the end of the year for the giving season. And I thought, you know what, I’m going to try it. And I hate to say it’s like this experiment, right? Maybe there should be more behind it than that. But, hey, I’m human. And I thought, all right, I’m going to pledge over the next thirty six months to our church’s capital campaign, the largest set of gifts I’ve ever even contemplated. And I’m broke. I think I’m gonna lose the house. And all the scripture was clear. It’s at that moment you must give the most. And I’m like, look, what do I have to lose? Because I’ve already lost it all. And so, again, often we don’t find our Faith Hill. We’re driven to our knees, which is a whole nother broadcast. But I did and it was crazy. Our results in two thousand to them the following year were exactly ten acts to the bottom line. What I committed to give that year and my only regret is I had not given more. You know, it’s a very I’m sorry, very wrong reason. But again, I’m not perfect. But from that point forward, I always worked hard and we thought we were really going to have a really bad year this year because all of a sudden the covid mess and at the very beginning of that, when I think, oh, my gosh, what am I going to do to save all of our jobs? I also knew that there were some charities involved in that were hurting worse, and it came back to me in two thousand one, the importance of really digging deep and giving when you most don’t want to. And it honestly has always been the right thing. It doesn’t mean you get the financial fruits of that labor, but the lessons, I think, are super clear. And so we really work hard, even in our coaching organization, to tithe our time and say, hey, 10 percent of your coaching efforts should be donated out to those who need it and charities and others. And I, I think it is set the right tone.

Henry Kaestner: And that’s a beautiful message to end on. And normally we would end there, except for the fact that after having done one hundred forty of these, we always ask our guests, is there something that you’re hearing from God and his word, maybe this morning, maybe this week sometime that you would want to leave as an encouragement to our audience?

Verne Harnish: Oh. What came immediately to mind, as you said, that was a revelation I had two years ago and this is what came up again Sunday, and that is to always approach every situation in the way Jesus would. And I have a mantra. It’s to be peaceful, playful and purposeful. And I didn’t want to I admitted to my pastor I was angry and I wanted to lash out at this person and all of this. And, you know, he’s a safe place where I can share all those bad things I was feeling. And that’s the revelation that came to me right at that moment. And that’s what’s been speaking to me this week, is to go back and be peaceful.

Episode 165 – Not for Sale with David Batstone

David Batstone’s entrepreneurial journey begins at his favorite restaurant in San Francisco. As he recalls, he loved the tandoori chicken, but he didn’t realize that he was eating in the center of a human trafficking ring that had brought over 500 teenagers from India into the United States for the purpose of forced labor. 

A journalist and venture capitalist, David couldn’t reconcile the fact that human slavery was happening in his own backyard. So, he decided to do something about it. The result is Not for Sale, a book where he breaks down how business can fix the $31 billion human trafficking epidemic.

Today, he’s with us to share that journey of how God opened his eyes to the brokenness in the world and gave him a vision for how to fix it.


Episode Transcript

*Some listeners have found it helpful to have a transcription of the podcast. Transcription is done by an AI software. While technology is an incredible tool to automate this process, there will be misspellings and typos that might accompany it. Please keep that in mind as you work through it. The FDE movement is a volunteer-led movement, and if you’d like to contribute by editing future transcripts, please email us.

David Batstone: Like I thought, look, I was at the end of a river pulling bodies out as they were drowning and flailing, and that’s compassion and something is very important. Part of my spiritual journey is to practice compassion, but at the same time is wisdom, and that is to look upstream and say, well, how are these bodies falling in? Like, what are the systems and what are the people, the demand behind it? How do we solve the problem there?

Henry Kaestner: Welcome back to the Faith Driven Entrepreneur podcast. We’ve got a special guest today, David Batstone is in the House talking about the ministry that he started with regards to human trafficking. And, David, it’s great to have you on the program. Thank you very much for being here.

David Batstone: It’s a real pleasure to talk to some brothers about my heart.

Henry Kaestner: So there’s so much to talk about with what is on your heart. And I want to get into that, provide our listeners a context about the industry and the problem that you’re looking to solve and how you as an entrepreneur have gone about solving that problem. But before we do that, love to start our show every time by asking our guests who they are, where they come from, what their faith journey has been, and really bring us up to that moment in your life when all of a sudden this became a big, big deal for us. So what is it like growing up brings up to speed?

David Batstone: Well, you know, I grew up in the Midwest and I grew up in a evangelical background, the Plymouth brother. And maybe some people who are listening are familiar with the Plymouth Brethren. But it’s a small community that very much values the scripture and looked for ways to implement it in the life of the church and in the community around. And I went I went to Westmont College, which is a Christian evangelical school. And in Santa Barbara. Really? Really. Yeah. And I went on to get an objective and studied theology and have a Ph.D. in theology. And so, you know, today I’m a venture capitalist and teach business at the University of San Francisco. I don’t know if I’m probably the only business professor in entrepreneurship that has a Ph.D. in theology.

Henry Kaestner: Then you may be the only one. The only one I know Rusty.

Rusty Rueff: I don’t know any others either. So whether or not that you’re the only one, we’re going to give it to you today. You got that badge, you know.

David Batstone: Yeah, a dash. My dreams. I had one thing I stand up for.

Henry Kaestner: OK, so tell us I want you to take us back to the restaurant that you used to frequent that you later found out was a center of human trafficking. So this is a restaurant, the United States, correct?

David Batstone: Yeah, it’s in the San Francisco Bay Area. And I was a venture capitalist in Silicon Valley at the time, and I was also a professor teaching University of San Francisco. So it wasn’t like I was looking for another gig, Henry. I mean, you know, my life was full and it was just a shock to learn that my favorite restaurant I would go to regularly. You know, I love the Italys and Poppadoms and Teriyaki Chicken. Yeah, but I learned that this restaurant had trafficked young girls from the ages of 14 to 19, over 500 young girls. Oh, my goodness. Into the San Francisco Bay Area for the purpose of forced labor. First in this restaurant, they were being forced to work against their will and then they’d be taken out the brothels and fruit and vegetable fields in California. I didn’t discover it and that was part of my journey. The trafficker kept these young girls and fifteen to twenty in an apartment and there was a natural gas leak that killed one girl and injured others. And when the police showed up, they said, we need to get you away from the gas and we’re more worried about him and pointed to the trafficker. And so front page of my newspaper, I read it and I’ve been going to this place for years. And I was like, how could I not see this? How could have been blind to it? And it’s really funny how, you know, when we often say we pray that God would give us some wisdom or teach us a path or open a door. And I could have changed my philosophy on this because I think God is always putting things in front of us. It’s how we respond to those things. That’s how it builds our character, the way we respond to things that God puts in front of us. It’s not like we need to somehow go out and find it. It’s there. And I can’t tell you why. That was a defining moment of my life. I had to do something about it because I’m sure many other people went to that restaurant. I said, well, that’s a very bizarre experience. But for me, it was a calling. I had to respond to it.

Henry Kaestner: That’s incredible, the size and scope, and it’s just right there, I think that when we think about human trafficking, we think that, yes, we’ve heard about girls coming from Nepal or India, but we generally think that they I don’t know, they go to Amsterdam or they go to some other places. It’s far from us. But that many girls, it’s not two or three or 500 through a restaurant in San Francisco. Reasonably civilized city. That’s incredible.

David Batstone: I’m shocking. So I should call in other people that, you know, if you heard of this and some friends in L.A. said, well, yeah, we just had a sewing factory in East Los Angeles where 112 girls from Thailand were imprisoned and forced to sew clothes every day. And they would then be locked into rooms in the same facility where they were sewing clothes. And then I called friends in the Texas area, Houston and Dallas, and they would tell me of these bars or cantinas where young girls would be lined up with a numbers printed on their chest and a man would come to get a beer and then point to number 30 for who he wanted to buy for a night or weaker. And it was just, you know, just so shocking to me that this was a part of, you know, my country and my reality that I felt like, OK, I need to really understand this. So I took a leave of absence from my university and my venture capital bank. And I went around the world for a year, follow the money. I went from San Francisco to Bangalore and went from Los Angeles to Thailand. I went from Houston and Dallas to Peru and Guatemala. So, you know, basically follow the money to understand this trade in people.

Henry Kaestner: So I was going to ask you, so you’re an entrepreneur, you’ve been a venture capital. You understand it. Entrepreneurs solve problems. You see that there’s clearly a problem. But instead of doing something right away, you say, I want to fully understand the problem, let’s follow the money. So what an incredible adventure that must have been. Oh, you know, I wish that there’s a documentary filmmaker along with you as you kind of leave San Francisco in this restaurant and then you go to Bangalore and you’re in the back alleyways. So you spent a year trying to understand the problem, following the money. And at some point in time, you’re like, I got it. There’s a big problem. I think I have a sense about how I might address it. What was that?

David Batstone: It’s funny how we have an accepted paradigm of how you approach a concern, whether it’s social, environmental. And I’m sure everyone listening today has something that they really care about, whether it’s malaria or global warming or extreme poverty. So it’s very funny, though, that many of us, when we attempt to address these problems, we open our heart and we shut down our brain. At least that’s what I did, because here I was a venture capitalist in Silicon Valley. And when I confronted with this problem of trafficking, you know, over 40 million individuals living in some form of forced bondage or slavery, what I did is I started a bad business model called a nonprofit, a charity. And now I do want to clarify, I don’t think charities are all bad or wrong or they’re foolish, but they are not sustainable and they’re not scalable. And if you really want to address a problem of the magnitude we’re talking about, you need to develop a business model that has the scalability to it to actually solve the problem. So what I did is I set up a nonprofit and we would go to churches and rotary clubs and schools and, you know, we get donations and then we build a shelter. And I mean, we were good at it. It was fine. It was great. But it was small and it was very difficult to build something that would actually, I believe, solve the problem.

Rusty Rueff: But you did find a way to release the talents that God had given you. And one of the things I find fascinating about your story, and I think it should be enlightening to all entrepreneurs. And I remember, you know, we were much younger than when you wrote Not for Sale, when you and I first met years and years ago in San Francisco. But I was impressed then and I’m still impressed now that you not only had the heart for it, but as you started to allude and get into. You also had some skills, some talents that you’d been given that all you needed to do was sort of look inside of yourself and say, wait a minute, I can do something with this. And you had these journalism skills. That you uncovered, so take us through that and then take us into, you know, what you ended up doing with those writing skills.

David Batstone: I appreciate that, Rusty, because it is I think many people listening. They say, well, how could I do? I like to do something more meaningful. I’d love to be involved and say works that that would bring about a benefit for the world. And oftentimes they don’t think about, well, what do I know best and who do I know best and what would be the process I would follow. And I guess I started to look at the fact that in Silicon Valley, if I wanted to build an enterprise, what I do is I’d find the best capital, the best talent and cutting edge technology. And I would build a company based on that that would be profitable and would reach internationally. And in the case I said, well, what if I took those same skills, that same kind of formula, and I applied it to human trafficking? And the first thing to do is bring together the best talent, so I got 50 people who, you know, the smartest people I knew, the most successful, you know, the founder of Twitter was one of them. I got the founder of the largest health care online company. I got a you got a baseball player for the San Francisco Giants, like people who are successful. And I said, look, help me come up with a business model or a business plan for a very specific situation. And this situation is in the Amazon of Peru, my nonprofit not for sale. We build a shelter for young kids coming from native or indigenous communities in the Amazon. They’re being trafficked into Lima. Help us come up with a business model. So we had a 24 hour period where we brainstormed and had a competition. The winning idea was to start a company that would source the wonderful assets or ingredients that come out of the Amazon. These super herbs like Mocha Mocha suddenly pay a fair wage, create an economic platform that would provide long term security for the native communities, put into a beverage, sell it in mainstream grocery stores and return profits back to those communities. It’s a wonderful, beautiful idea. Unless you’re the guy on Monday morning that now has to start this company, that’s a beverage. Right. And I knew nothing about beverage. And so, again, I thought, OK, what would I do if I was in Silicon Valley now? What would I do if I was just another charity? Well, I go and find the best beverage maker in the world who could use these herbs and put them into the beverage and make a wonderful product. And that’s what I did. I just found the best beverage maker in the world, hired them, paid them what Coca-Cola would have paid him. I didn’t pay them a nonprofit salary in equity in the company. And, you know, fast forward six years. We are now the number one health beverage in America. Rebel groups extract Barberi leaves rebel, and we have now returned over a million dollars back to those communities through our profit sharing. We’re sourcing ingredients in three countries now and we choose the ingredient based on the most impact, not the cheapest ingredient. But where will we have the most impact on poor communities? So over 30000 families, one hundred twenty thousand people, more or less, are being empowered in poor, rural, exploited communities. So to me, this was like a revelation. It’s taking the same principles and mission that I had a nonprofit, but embedding the DNA into a enterprise, a for profit enterprise.

Rusty Rueff: Well, I got to give you a plug, because unless I’m wrong, Serena Williams is on your side, right, with Rebel, right. I see her on television all the time.

David Batstone: We got we’re fortunate. We have so many. Rubirosa is a great actress. She’s a bit one of our big ambassadors, Michael Franti, who’s a musician. So we get a lot of actually actors, musicians, artists who come to us and say, is there any way I could be an ambassador for your brand? And that’s the great thing about, you know, doing well by doing good. People want to be a part of it.

Rusty Rueff: Yeah, that’s awesome. So it reminds me of and we all know the story of Esther did write in the book of Esther. And Mordechai says to her, you know, is it that you’ve been called for such a time just as this? Do you feel like God specifically prepared and equipped you to make the headway into this sort of massive, let’s call it a massive force of evil in this world? Did you have that Esther moment?

David Batstone: Oh, very much so. You know, coming out of that experience of understanding that in my own backyard was this trafficking of hundreds of young girls from Bangalore. I just could not walk away. It was a calling. And to have walked away would have meant for me a betrayal of a character that I was being called to fill. And, you know, I suppose even today, now, 15 years later, people ask me, well, gosh, know, aren’t you just being overwhelmed by this evil or by the enormity of the problem? And I say, you know, for whatever reason, I’m more inspired by what we do achieve and the people we can rescue and save and the empowerment that does happen, that inspires me more than the enormity of what we haven’t done. And I think once you’re on that calling, then your inspiration comes through your daily walk and not through some kind of expectation of how much of it you’re going to solve.

Rusty Rueff: So I’m going to encourage everybody to jump on Amazon and go back and get that book not for sale, because it tells your story and it tells the story of the beginnings of what you tried to conquer. If you were writing an epilog or a new chapter for not for sale, what would it say right now?

David Batstone: I would say I’d say it’s the art of being a rebel and of course, is the name of the first company we started. We now have 10 companies, by the way. And I could talk about some of those if you’d like. But the art of being a rebel, meaning that we’re so much through social media or through advertising or just through our environment that we live in, that we’re so, you know, told to what makes us valuable, what we should consume or what career we should pursue. And to be a rebel, anything in the best sense is to hear a different voice, to follow a different path. And that requires us to have a strong spiritual grounding that we realize that where the world is going and what is named as what is valuable, what will make me a success may not be what’s true for my character. And so I think the art of being a rebel is about choosing a path that you’re going to follow, regardless of what the rest of the world tells you.

Henry Kaestner: So I’m fascinated by, you know, we’ve been around the space long enough to know that there’s this thing of impact investing, and so there are social entrepreneurs that come out of programs like Praxis and others that really have a desire to really make an impact on communities in many cases, work with them on the business side, which I love, which is there’s injustices in this world. Yes, there’s an opportunity for philanthropy. But in terms of providing dignity rather than dependency, there’s a place for the markets in all of this. You teach about social entrepreneurship in innovative entrepreneurship in San Francisco. I’m wondering what you do as you take a 19, 20 year old student that is starting to understand the enormity of the injustice in this world. They’ve got a heart for these things. What is it that you do as you train them, as you give them this kind of alternate imagination and you equip them? What do you tell them? How do you get them trained up?

David Batstone: Hmm. What I find my students is they are looking for a bridge to tie together with their heart. And talent is what they’re really passionate about and their expectation of creating a life that is, you know, financially responsible and maybe having a family. And and they feel like they have to choose between the two. And probably the most helpful thing that I do in my classroom is to help them understand that their skills are needed all over the world. And there’s incredible opportunities for them to deploy investment or accounting or, you know, their entrepreneurial passion in environments that are basically untouched. And so there’s so much opportunity in the world today, the way that we’re rewriting our energy systems and the way that we’re going to be moving into new economies of transport. And this is every area health care is going to transform that. I would say to my students that even though you’re getting the message that, wow, it’s almost like you’re nineteen eighty four, you wish you joined the Beatles, it’s over. There’s nothing new and there’s nothing in the truth of the matter is, is that you’re living in the most exciting moments in history and you can use your skills to build livlihood not only for yourself but for those who typically are being left out of the world economic picture today. So I really do encourage them to think bigger than simply can I get a job at Goldman Sachs or Apple?

Henry Kaestner: So I think that you’re probably finding this new generation is really, really open to that in a way, not the to options weren’t. Do you ever see there’s a book that we all know called When Helping Hurts by guy named Brian Fisher, talking about some great intentions? And what are things like that might go wrong? What are the unintended consequences? Are there examples when impact investing or social entrepreneurship might also go wrong, where somebody comes at it with the right intentions, wants to really address an injustice, but there’s something that they don’t see that ends up maybe even doing more harm than good. And I shouldn’t focus on the negative side because there’s so much positive that can happen. And yet there are probably some examples where it’s done poorly as well.

David Batstone: Absolutely. The best way to talk about poor examples is start with my own life. You know, when I first started working in social entrepreneurship, I was in Latin America and I tried to create economic opportunities for poor communities and teach them agricultural skills or teach in the show or whatever skills training. And you often find this in the nonprofit or ministry world that we train people to do a job. But some of that we never think about is, well, if there’s no ecosystem, if there’s not a environment where then there’s investment opportunity or there is a supply chain or a demand for the products or services, then really you’re equipping someone for a very disappointing and frustrating life. And I find this is not only within a training program, but say, in well hearted people who want to teach people in Africa how to grow mangoes better. OK, but how do you think about the system that allows for that success, whatever investment that might be for that community? And so I suppose from the start, you need to think about both the demand and the supply and the ability to use your investment in a way that those communities can actually begin to build out an economy and a platform that will sustain itself over a long period of time. Unfortunately, I find that many social impact enterprise groups. What they do is that they have a very, you know, three to five year investment and then it dries up and it goes away.

Rusty Rueff: So, David, I want to go a little deeper into sort of the faith journey that you took. Right. That at the time when you said, I’m walking away from all of this and I’m going to travel around the world and I’m going to go solve or I’m going to try to solve or try to understand sex trafficking, that’s as much of a faith journey is sitting there going, I’m going to solve world hunger. I mean, because it’s a big thing, like you were trying to put your arms around so we can. Call that a faith journey, but let’s also call it a faith journey, you know, with your faith. Take us through that journey that God put you on and share some of the stories, maybe ups and downs of your own personal faith journey as you embarked on this.

David Batstone: You know, it’s really interesting, Rusty, that we like to make heroes out of people when we see the whole narrative. So while it’s very heroic, but everyone’s journey, whether it’s a hero’s journey or not, starts with just one step. And that’s the hardest step, is to say I’m going to leave my security and my comfort to do something. And it it’s scary to take that one step. And I honestly was not thinking of anything beyond, you know, I need to understand how this was happening in my backyard. My one step is I’m going to go to India and Thailand, follow the trail of trafficking from California to Asia and just understand it. It was curiosity. And also, if I made it visible, I was going to go back to my venture capital firm at my university. But what happened is that you made that one step. Then I met this woman who in northern Thailand, she had rescued twenty seven kids who were in karaoke bars being forced to sell their bodies to male clients. And she was living out in an empty field without any resources. And so I went, oh, man, OK, I have a second step. I’ll take. I promised I would build her a home. That was OK. Now I’m going to, you know, write this book about my understanding of what we’ve learned and to build a home. Then I’ll go back to my life. And that just keeps cascading. So, you know, the fact that not for sale does what it does today, if you think, oh, my gosh, it’s wonderful, what you do is that, you know, that I’ve just been stumbling my way toward it now. You know, there’s been a lot of ups and downs and things that I wish we had done differently. And, you know, one saying I learned and gone I really would love is that we don’t mind stumbling because it makes us move forward more quickly. And I think that’s probably than my journey is. Like I’d like to say that there was clarity, but probably reluctantly. I took each step and then you look back and say, well, God really blessed that narrative. God bless that journey

Henry Kaestner: or take us forward in a second to some of the other ventures that you’re involved with and energy and a number of different projects. I want to go backwards, though, first, which is to go into this kind of atwar about understanding the larger ecosystem. And I’m compelled not only about the stories of where these girls come from, but also through to the demand side. And part of me is just thinking, oh, my goodness, if you can have prostitution where people have numbers on their chest and dozens and dozens of girls being sold in the field, what role does the demand side have in the equation on trafficking?

David Batstone: Well, it really is. The preponderance of the problem is that there is a demand for either the use of someone’s labor or their body for someone else’s pleasure or someone else’s greed. So, you know, after five years of my first five years of not for sale, Henry, what I felt like I thought like I was at the end of a river pulling bodies out as they were drowning and flailing. And that’s compassion. And something is very important. Part of my spiritual journey is to practice compassion, but at the same time is wisdom, and that is to look upstream and say, well, how are these bodies falling in? Like, what are the systems and what are the people, the demand behind it? How do we solve the problem there? And I suppose I don’t see there’s enough of that being done within the anti trafficking movement to actually solve the problem of the area of demand and not only the supply problem, that is people who are the consequences of these actions. So I think it’s really important to understand that demand side. And, you know, it’s everything from factories to agricultural fields to brothels to fishing industry, fishing boats. I mean, it’s embedded in so many systems that one thing that I felt as a business entrepreneur, I’m probably the best thing I could do is rather run after every one and kind of try and stop. All of the negativity was to start creating models of desire in the world that I wanted to live in. I’m sure other people want to live in as well. Start designing companies where there’s dignity and goodness at the core of the company in the DNA of the company, thereby inspire other young entrepreneurs to be able to want to live that life and pursue those dreams.

Henry Kaestner: So I want to get into that. But one last thing, the deterrent part, because I’m just thinking right through the demand side. I mean, the demand for lust and all that stuff, I mean, is biblical. We all know it. We all know that it’s inside of us. I’m wondering, you know, some number of people have there’s a debate about whether the death penalty is a deterrent or not. I wonder how, though deterrence enters into the demand side of the equation with sex trafficking, is somebody listening to this? Can you lobby your legislator to be able to have stricter rules? Does that even work? Do you find that rules are just lax enough and that just authorities kind of look the other way even in America, does deterrence and punishment work or is that just a myth?

David Batstone: Deterrence is effective and I think there’s different levels of deterrence. One is simply prosecution and rule of law that actually takes seriously the practice of same sex trafficking. I remember when we first started not for sale. I mean, it was hard to get, you know, local police officials and FBI to believe the extent of the problem in our American cities. And, you know, I’m not trained as a law enforcement officer, but I my team and I, we would have to go undercover with a camera and go into these brothels and massage parlors and the like and then take that footage to law enforcement. And it’s changed now. It is a much more of an awareness and a much more of a compliance with that in the United States at least. But so that’s one of the other is I think probably the biggest deterrence is the public shaming that comes from being exposed. It’s really interesting. I’m in Sweden right now. This interview in Sweden, what they’ve done is they put in newspapers or on billboards and shaming the johns and the demand side. And, you know, all too often it’s the victims is the young women who are kind of shamed or put into the spotlight. And, you know, it’s remarkable the level to which that puts another fear of the social community even more than in many cases, just the being arrested.

Henry Kaestner: Yeah. OK, so I want to move forward towards your equipping some of these entrepreneurs to solve more problems, to create these businesses where business is done the right way. You’ve got just business and not for sale was maybe your first foray into that, but you’ve not stopped there. You’re in Sweden right now on an energy deal. Walk us through some of the different projects you’re working on.

David Batstone: Certainly, you know, part of this was it’s an ongoing evolution of understanding how could we scale the solution? And that’s really the objective here is not for me to be able to come on your show. And I could tell you three stories of young women or boys. And that’s a fantastic again, I don’t want to undersell that, but is being able to say, look, now we can impact millions because it’s the size of this, the scope of that. So, you know, I had a great entrepreneur come to me and I’m always looking for entrepreneurs. And he said, look, I have this idea of being able to assist big companies with mobility. And so if you look at the big tech companies or the big pharmaceutical companies or retail companies, they’re hiring people from all over the world. They want talent and they’ll move them around the world. So they’re in mobility. And so I thought about this, you know, look at all make an investment in your company and I’ll get behind you to be able to get the Apple, Facebook, Googles, Nike’s, and those are all our customers today for this company. But you have to take one percent of all the revenue. We generate one percent of the gross revenue and dedicate it to those people who are in mobility, refugees, human trafficking victim. But they don’t have those services. They don’t have someone to help them say when you come to a new city, find a place for your children to go to school or find a dentist. And so basically, we created a concierge service that now is global. This company, we’re the only investors in it, and it’s called velocity. And now we do have Apple, Facebook, Google, Nike, Twitter, all the companies, Nike, Walmart, Starbucks, they all pay us to take care of their employees. And what we’re doing is we’re taking some of that revenue directly to those communities that also are in deep need of mobility. Security.

Rusty Rueff: That’s very cool. That’s actually inspiring, David, that you’ve extended what you’ve done into, you know, organizations that we all know that needed to be shook at their core to say this is something important. And, you know, to that point, you know, on this podcast, you have the ears now of thousands of entrepreneurs, Faith driven entrepreneurs. What would you like to tell them about how they can, even in the earliest stages, you know, use their businesses to do more than just create a bottom line profit? And how would you like to see Faith driven entrepreneurs, you know, solving these types of problems?

David Batstone: I’ve been involved in a lot of faith driven entrepreneurial events. You know, there’s great things like businesses, Mission BAM and The Lion’s Den. And, you know, I could go on and on with faith driven organizations. And I guess my message continually to them is you’re not thinking big enough. You know, it’s almost as if it’s a ministry that we’re stamping a Bible verse on top of or some kind of a mission. But, you know, it’s not about transforming the business. And what I want to see is that we transform business, that we actually redeem the business model to bring about goodness for the community. And that requires thinking, you know, with grabble, my goal is to compete with Coca-Cola. Right. With velocity. I want to be the number one mobility company in the world. Doesn’t sacrifice my mission. My mission is at the heart of all that I do. But I have to think bigger. And I think entrepreneurs are making. Or God too small, they’re making their mission too insignificant and they’re not saying that, you know, this is a warrior’s test, is a lions task, and it’s to start to build the best companies in the world, but with faith and values of the center of the company.

Rusty Rueff: Yeah, we had Tony Evans on the podcast recently, the pastor of Cliff Fellowship Bible Church in Dallas, and he had a great sort of calling out to Faith driven entrepreneurs, to King Demised. Their business kingdom is your business, you know. And as I listened to that and I listened to you, sort of what I read into all of this is, look, the core of what we do, we might be out there running a agricultural business or cleaning business or a technology business. But if we’re faith driven entrepreneurs, you know, we are to give back, take our talents and our skills and kingdom is our business, but also to find these areas where we have the skills, talents and maybe resources, maybe financial resources that we need to put to help those that can’t be helped. And I’m going to turn this over to Henry to close this out. But I want to continue to encourage you, David, and thank you for the work that you’ve done in such an important area that’s happening all around us that, you know, we don’t see. You had to look into the shadows and you had to go into the shadows to find it. And I appreciate the courage and the journey that you took to get there.

David Batstone: Well, thank you. I appreciate it, Rusty. You know, now my being in Sweden today, I think the other thing that spiritual vision gives you is the audacity to think that you can start to kingdom eyes the world we live in. And, you know, right now I’m really compelled not only to the work of my own people and dignity of people, but also the planet. And how do we rethink and redesign the world so that the planet is something that has the same dignity. But God made it with, you know, working with all the big car companies, Tesla, GM, Ford, for the next generation of car. We’re recycling all the batteries. We’re extracting the minerals that they need for the batteries. But it’s done all with a new kind of technology that is going to just really remarkably change the way that transport is done so that companies, American Battery Technology Company, we also have a hydrogen company. So rethink the world, redesign it, put values at the very center of it

Henry Kaestner: by saying, that’s awesome. So much more to go to. I think that we could do an episode on each one of those ideas about how you’re looking to solve for them, how you’re tracing the money and the problem, just like you did with child trafficking and understanding how the supply chain works and things like energy and how it needs to be redeemed and what does it look like right down to the end user. So we’re going to come back to that. For now. We want to ask you, as we do all of our guests, what you’re hearing from God through his word and doesn’t need to be this morning. But it very well could be. But maybe the last week or last couple of weeks now, as one of the things that unites all of our guests together is God is at work. One of our guests has said Auslan is on the move and he’s very much at work. And what’s your sense with all that?

David Batstone: I’ve been drawing recently to the Proverbs, I’ve been reading a lot of the proverbs. And one of the problems over the last week I’ve been thinking a lot about is Proverbs 17. Twenty two about a cheerful heart is good medicine, but a crushed spirit dries up the bones. And I just think about what do I surround myself with, what is a cheerful heart? You know, the people around me and I guess in a very glib way of saying is that toxic people really do dry your bones, cheerful people, people who have a good heart, people who are positive, they inspire you. And, you know, I just don’t think a lot about time is precious, relationships are precious. And to surround yourself with people who are hopeful and encourage you, they want to see you succeed. And, you know, if people are a negative force in your life, get rid of them, walk away because they never get better. I know it sounds harsh, but really it’s about building communities of hope and inspiration and faith.

Henry Kaestner: David, thank you very much for being with us. Great joy. Thank you for being one of those people that is a positive force in the midst of all this going on with covid being able to look at some of the challenges that can be solved and getting out there and doing it creatively and then also inspire the next generation through your work in school. That’s super cool as well. Thank you.

David Batstone: Thank you very much. Entrain Rusty really been good to connect with you today.

David Batstone

Professor | USF School of Management

Professor David Batstone teaches in the Department of Entrepreneurship & Innovation at USF School of Management. Previously a private equity banker in the technology industry, Batstone is published widely in both academia and the popular press. His five books feature entrepreneurship at the crossroads of business and society.  USA (Today) Weekend describes Batstone as “one of the country’s leading authorities on ethics in the business world.”

A sought-after speaker and consultant to businesses and nonprofits alike, Batstone works with entrepreneurs and investors to create forward-thinking companies that return dignity to people and planet and shares his unique model for developing successful enterprises that create an opportunity for everyone. His ground-breaking work has earned him numerous awards. Most recently the United Nations Women for Peace Association selected him as their annual Peace Award winner in 2017.  He also was awarded in 2017 the Harari Conscious Leadership and Social Innovation prize (USF School of Management award).

Batstone is the founder and managing director of Just Business, a social impact investment firm. His portfolio of successful ventures includes REBBL ” top new organic beverage in the USA” (2016), Relocity, American Battery, Hydra Energy, Haus of Z, and Not For Sale. As founder of Not For Sale, Batstone has connected business leaders, celebrities, politicians, and students to design strategic solutions for the 30 million human slaves in the world today.

In 1997 Batstone was one of the founding team members of Business 2.0 magazine, which burst onto the publishing scene with National Magazine Award “Best New US Magazine.”  Time-Warner acquired Business 2.0 magazine in 2001. Batstone also has been a contributor to The New York TimesWiredThe Chicago TribuneSpinStanford Social Innovation Review, and The San Francisco Chronicle.

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