January 12, 2023

Episode #60: Shane Araujo – 3BG Supply Co

Transcript

hello this is coach Tim Campsall and I’m your host for the self-made is a myth making a difference together show where we’re talking with successful business owners to hear their stories of the journey to building their business and because we know that success in business is not something that we can do on our own we’re taking some time to acknowledge the folks who helped us to excel today I’m excited to have a fellow business owner with us from Indiana today he is obsessed with helping others he enjoys spending time with family golfing and Jiu Jitsu and he is most proud of his family as well as the folks that he has the opportunity to work with it is my pleasure to welcome Shane to the show today hello Shane hey Tim thanks for having me on appreciate it it is my pleasure well hey let’s start with having you introduce yourself so tell us uh obviously your name and and uh a little bit of your personal story so where were you born where do you live about your family and some of your hobbies yeah sure no problem so uh my name is Shane rugio I am co-founder and present at 3bg Supply we are a technology enabled power transmission distributor so we sell products like big bearings and electric motors gearboxes things that go into big factories and foundries things like that I’ve been in this business since I was a young kid probably 12 or 13 years old uh sweeping up the floor in the warehouse and my business partner and I saw an opportunity uh to jump into this space and uh we did just that and um that’s been a great deal for us the last about 10 years or so so um we started the company here right where we were from in Fort Wayne Indiana uh Northeast Indiana northeast corner there and uh um we grew up best buddies um met at basketball camp and um our personalities really have a really perfect yin and yang when it comes to operating the business so um it’s been a really fun ride so far and it’s allowed for us to feel a little bit more proud for what we do you know than some of the other people that you know we talk to you know we have friends that you know went to college for a long time got into a gig might make good money but it’s you know not that fulfilling for them daily and we’ve been able to be kind of blessed in what we’re doing right now so um I have four kiddos my wife and I um we um have a ages go from 11 all the way down to nine months old so we’re pretty busy and what’s your wife’s name her name’s Aaron with two ends okay yeah very yeah very important yeah very fancy with the second end there I always I always tell her I always ask her mom I was like why’d you just go with the third end why not just like go for it so Shane is there a funny story that your family likes to tell about you that you’d be willing to share with us today oh gosh I mean I definitely play like I think like a lot of dads do it’s like that like it’s funny because like you run the household in a way like we’re definitely more of like an old school family like that um where you know it is that almost like that Peter Griffin like I might be like a certain thing outside of the home and then as soon as I’m inside the home I’m just like dad who doesn’t know what’s going on sometimes I feel like that um I’m sure there’s a ton of stories I couldn’t think of one off the top of my head but you know I’ve done some pretty bonehead stuff in my time so I’m sure if you ask the right people you get a good story out of it awesome um I think it’s been you know we’ve had some interesting times lately though because just kind of the way life works even when the business was the most hectic or busy we’ve seemed to have really interesting personal I don’t know if you want to call them problems but like personal family things have gotten introduced and and it’s kind of funny how that works because it’s like the universe hands you you know um uh an obstacle or something to get over and a lot of times you can look at it as as just that as a problem or you can really if you can if you have the ability to change your mindset look at it as like an opportunity to do something better to grow personally and I think we’ve done a really good job of taking that because we’ve had some pretty intense um just family problems that’s hit us over the years and being able to come out of it and learning a lot more has been not just effective for me as a husband and a father but also being able to take what you learn in your personal life and put that into your business Yeah you mentioned that you know that the Universe brings us stuff so I’m I’ve been involved in this uh mindset coaching program for about two years and and the essence of what they talk about is is that that you know the universe our higher power whatever you want to call it right brings us exactly what we need to help us grow and develop to the next version of ourself right and and we can look at it like you said from a negative or embrace it and say hey that I this is exactly where I’m supposed to be and what I’m supposed to be working on and so let’s jump in and and learn our way through this yeah I think that’s uh it’s something that’s happened to me a couple of years ago but has been a constant reminder for me lately is that like if I like to just assume that everything’s my fault first and that has helped me in a multiple multitude of ways from like even when I was managing our sales teams one-on-one before we had all the managers in place like before you want to like rip a salesperson’s head off like looking at it be like okay what did I do everything I could do in this scenario to like put this person in the best position to win yeah and sometimes it’s like no right and that kind of changes how you um manage people and coach and everything and so that’s been a huge help for me too especially like when I screw things up and just being able to look at it like yeah you did this so you know my dad told me once when we were a little I was in that little I was probably my young teens Maybe um it was about being a man I think I was like probably getting a little too big for my britches at that point and uh he told me a man uh makes decisions and then lives with those decisions and I always think about that and it kind of feeds into the thoughts of like you know you got to look at things as being your fault first I think that’s helped me a lot I love that perspective we we do a little uh game at some of our education events where ask people to point at me as if they’re blaming me for something right and then ask them how many fingers are pointing back at themselves right and yeah we always have three times more control over every situation than who we’re wanting to so I love your your thought of you know what did you do wrong first and then what can you change and adjust that’s awesome yeah I think I think like covid working through covid was uh really good exercise to teach ourselves and each other that what do you have in your control what do you what can you do that’s actually in your control yeah and if you just kind of split that up that makes life a lot easier Amen to that so Shane tell us how’d the business come about it and at what point did you have the confidence that you and your partner could run your own business yeah I don’t know if I still have I don’t even know if I have the confidence to still to this day just to make sure uh we um I was put into a management position at a local like a regional distributorship of basically like the older version of what we do now and um when I was put in that position we had a bunch of cash flow problems and so one thing that I would do all the time instead of ordering like thousands of feet of conveyor belting and then cut it and do all the things that we need to do once we got the order from somebody they wanted their order by like Thursday so instead of doing all this like supply chain I would just call the manufacturer have them cut everything do everything to to order and then I would just drop ship it from their place to our customer that way my customer got it on Thursday and we were factoring our invoices at this company so then we were able to factor the invoice faster because it showed that it was delivered sure and what the old school guys in the company wanted to do is they wanted to take that order use that to buy a thousand foot reel of like 60 inches wide even though we need to cut it down to 24 or whatever they were like yeah but per foot basis you’re going to make a lot more money it’s like yeah but the customer’s not going to be happy we’re not going to be able to bill forever now we have belt sitting on the floor which we can’t pay for so I always thought the Drop Shipping model would be very helpful as long as we could find customers that were more of a planned maintenance focused company and then if we ran into people that always needed things done today they probably weren’t going to be a great fit for us now over the years what’s kind of funny was we start to get good at pretty good at doing same-day deliveries as well once we’ve created such a network but um so that was like the first first introduction to like I was like man this business is a little different now I also could tell even then I could tell that there was a lot of knowledge exiting our industry and what was happening is they were putting like a 26 year old engineer into a position to run this plant or this line and those lines for years let’s say it was making a hundred thousand dollars a day coming off that line and you had some dude that never went to college maybe didn’t even finish high school that kept that line up and running well that guy retired and now you have a 26 year old that’s very smart very capable of a lot of things but doesn’t necessarily know even with an engineering background how to manage that line and we started to become really focused on the White Glove service side of our business because we learned that we needed to help these people and we knew that there was a ton of value in being able to be those that person for them right and it really started to change our business or my thought process and what how to do business the the day that things really changed for me where you took you know so we talked about the people we kind of talked about the processes right of being able to drop ship the people of that’s entering our industry and then the technology piece really is what’s sewed it up for me because I was at a customer that made these jet fuel pumps so literally they pumped fuel for jets and they were having a trouble they were having problems coming up with because everything was so customly designed right they were having trouble finding an oil seal that fit their dimensions at the temperatures that they needed so it’s funny they had like a little library of like all these manufacturers catalogs that they’ve used over the years and I’ve always just wanted to be able to like type in the filters like you would buying shoes on Nike or on whatever website you use just like high temp this Dimension OD ID width all these things type it in I wanted the bulk the book just to fall off the wall and open up to the page you know and so that kind of gave me the idea of like okay if we can get the technology at the people’s fingertips if we can drop ship the product directly if we can find the customers that fit how we want to do business we can not only put together a business that can do well in scale into a market that’s pretty large and changing but we could also make our lives a lot easier and really enjoy our time while we do that right because that was a big Focus for me then and it still is now which was yeah you can hire a bunch of really cool sales people that can get after it but how do you teach how do you like not get you know exhausted and burnt out from doing that all the time and I think creating a really great place and business where it doesn’t necessarily feel like work all the time can help people last a lot longer in this business such can be pretty tough that’s awesome so um Shane as you’re you know you’re reflecting on the this creating this business share a story where someone pushed you or inspired you that you could do it even though maybe you didn’t think you could and the impact that that person had on you well I think I think that’s that’s what drew me because I get people that request like podcasts often enough which is kind of weird and I get because everyone’s like looking for content and people are I can get why but when you reached out I love the premise because I always get so turned off by people that like talk about being self-made and stuff like that um some of my mentors even who are like some of the most smartest amazing people in the world is like if you get to know them well enough you like eventually find the person in the organization that like help really guide them uh to like where they were today yeah or where they are today and I always think about it like I’ve actually never you know this is you’re probably gonna get everyone to unsubscribe after this comment but like I’ve never actually watched Star Wars before but I have a good understanding of like you know there’s a story that you always can tell where there’s a person this main character who has a problem and he’s met by someone older and wiser or somebody that can help guide them through this time and then they usually like hurt that person the main character hurts that person in some way they come back around and then you know it always works this way and people when they say they’re self-made just when they especially when they say it it makes me feel like they probably weren’t or they’re not acknowledging the people that help them right for me honestly it was my business partner who was like constantly like never letting me off the hook for things you know and his you know we took I’ll give you an example we do a lot of disc profiling in our organization and I uh the first time I ever did it and I’m still pretty low I was a 3C which is like uh I’m like dangerous like the opposite of calculated and um you know Alex my this our CEO and our my partner was so good about

you know in a way he was kind of like building like hallways for me to operate in without like destroying myself or destroying the business yeah like he created those processes and those things which actually in turn allowed me to just like focus on like what I was good at at the time and that actually rubs off on me like if I took that test now or if you to ask somebody that well one of our employees or something about like hey what do you think Shane’s C is on the disc they didn’t know already they would give you a much higher number than I really am because over time I’ve changed a little bit or I know how to like under the right circumstance of have to be like a little bit more detail-oriented or be a little bit more understanding of the situation or just be more present and so I’d probably say even though I had some really great mentors in my life I would probably have to say that my business partner Alex was probably the one that was there the most to help me through that awesome so similar uh context here in terms of the next question is what’s your biggest learning over the years of being a business owner that uh we you would share that other people may be able to learn from your experience um yeah so uh I would I was taught this from a mentor of mine and it was through a time when we were growing really fast and um I had to leave for California for a really big meeting and my daughter

um said to me well why she had a dance competition that same weekend or that same day well her my wife and then her mom are very close they were going to go with her to Nashville so it was fine plus between us and your listeners I despise having to go to dance competitions it’s pretty much the worst but I really did because of the timing of everything I really did have to be in California for this for this meeting and it was a big meeting to help our whole business grow I mean it was literally putting money in the pockets of our employees at this point and she asked me where I had to go and I I grabbed a dry erase marker on our our back sliding door I in stick figures I wrote out or Drew out all of the families in our company like all of our employees and their families as much as I could remember which is a daunting task and I would tell no one to ever do that because it’s an awful thing but it did put in perspective the amount of people that were responsible to us into or that we were responsible to responsible to in our business and it really brings Focus to understanding that coaching people training managing all of those when you’re in a leadership role especially nowadays with the certain types of people that are in our job market the people that are owning budgets the people that are making decisions in our world now you have to be what I say I ask my managers I say can you be the dog to your employee and what I mean by that is um do you have a dog Tim I used to she passed away okay well I’m sorry about that but thank you we’re gonna have to jump into this for a second when you come home the dogs typically act how to you they love you they’re wagging they just very excited very excited but pay attention to you yeah they love it and then you what feed them let them go outside go to the bathroom right it’s funny because your dog goes in the backyard he’s like yeah talking to your neighbor’s dog and he’s like you know or she’s like you know Tim’s a real idiot I did absolutely nothing all day literally nothing I barked at the few people that walked by the house besides that I kind of did nothing today but then Tim comes home and he’s jacked up to see me and he pets me and he feeds me and he lets me out it’s just amazing and the dog goes back inside and then poops on the floor who has to pick up the poop right you do the dog doesn’t have any thumbs unfortunately so you have to pick it up and you there’s a reason why you’re willing to do that you know for the dog and so I asked our managers is like can you

have that like unconditional like love to your employees so that you get it in return and that they will do amazing things for you one of those things that they might do for you is dig deep and do things that they never thought they could do and Achieve things that they never could achieve and at the end of the day as a leader that’s really what your job is is to get every ounce out of your teammates that they had no idea that they were capable of doing and sometimes you have to do that against the fact you know maybe they don’t want to do it you know they don’t understand it they don’t see it and so when I asked the managers or team leaders or whoever I say okay so can you be the dog you know can you be the dog in the situation and when I’m looking for leaders in our business I look at someone and I think okay does this person have the ability to put themselves in another person’s shoes because that’s like a skill set that not everyone has a lot of people do but not everyone has that skill set the second thing that kind of makes you capable of like Samurai status is like once you’re in someone’s shoes do you have the ability to change someone’s perception you know so when you’re sitting there with the young 23 year old salesman that’s exhausted from doing cold calls he’s heard no 20 times today he had three great orders that he was really excited for get returned or whatever the negative things that are happening do you have the ability to like empathize and sympathize with somebody so that you can sit in their shoes and then once you’re in their shoes can you actually help them and redirect them to something that’s more positive or get them to just kind of change their reality for them a little bit and I think that’s what I’ve learned over my time was that’s an exhausting task but if that’s what you’re into and that’s what you want to do uh you have to have the ability to do that I love that what the the um the analogies are pretty powerful when you can visualize you know that that uh that dog and and having that type of commitment to your your team I like that thank you for sharing yeah no problem so Shane we know that business success doesn’t happen in isolation you mentioned it earlier tell us about one of your biggest challenges over the years and and maybe another business owner that you know helps you to get through that

um I’d probably say

understanding the difference between a lifestyle business and like a growth based business and in defining what you really want to do yeah I think especially nowadays when they’re so popular to fundraise and go through venture capital or you know you hear about some of these unicorns that you know the software company starts two years later you know they’re they’ve raised a half a billion dollars and they’re worth seven and then they sell for 14 or something crazy you know and and everyone hears those fun stories but you really have what in practice you got to really understand what kind of business are you trying to build for yourself um because once you understand what you want out of that business it’s gonna be a lot easier for you to understand what you’re good at and what you’re not good at and how can you find people that are better than you uh to do what you need to get done um it’s almost like you almost have to be preparing to be that you’re firing yourself always you know the from the different hats that you might wear yes and I think it all starts with really understanding of what kind of business do you want to have is the lifestyle business this is the growth based business um because that’s going to dictate a lot of what you do um all the way down to even financing it you know so I and I don’t think people think about that enough at the beginning yeah so with that then um was there somebody that helped you to to think through that process and and you know give you come alongside you and help you to navigate that um

not really uh I think we were always Alex and I were always very excited about the growths okay the thought of growth um that really lent to like what our personalities were and like what we wanted to achieve and you know like to this day I get so much out of like hiring a single mom and then teaching her how to sell and knowing that she can always forever put food on the table no matter what and that and a growth based business is really going to support like those types of things yeah and so I think we’ve always been focused on the on the growth side um but we have friends with like really healthy lifestyle businesses that sometimes you look over and you’re like Ah that’s nice you know right now we’ve we’ve reinvested 100 of our dollars this year into this X Y and Z and this guy is you know having a good time this summer yeah yeah you know so we I can understand the sexiness of the lifestyle side but I think day-to-day and especially over the last 10 years I think we’ve gotten a lot more out of it spiritually and mentally and physically through having that feeling every day by growing it so if I asked you to pick three people in your business owner Journey that you’re most grateful for being there to to help you with your growth who are those three people and how they help you oh that’s interesting yikes um I definitely have to say my partner again Alex I couldn’t do anything without him he’s the best um my wife has been the most supportive person on the planet I listened to you know I have some friends that got divorced from their first wives during their time building their business because of how much they put into it and my wife was always there every step of the way extremely supportive um I have a mentally physically handicapped sister that lived with us for a long time and I remember being in Boston for business and my wife who grew up not around that having to bathe my 170 pound sister while I was out you know and just like things like that she’s been so extremely supportive it’s been amazing and then I’d probably say that my grandfather who taught me a lot about business not just about the good things but I mean he also taught me a lot about what not to do right so um there’s a lot that’s helped me my uncle uh one had passed my one that’s still alive he’s uh he’s always been amazing um I probably talked to him like four times a week still you know running bouncing things off of him um I mean I think that kind of goes to the goes to show you about this podcast it doesn’t the whole idea of being self-made I mean when I look back and really think about all the people that have helped Alex and I this far it’s an uh almost a never-ending list I mean even if you talk to um employees that maybe that worked with us for a while then we had to let go for whatever reason you know you still learn things from them all the way to your wife and your children so um I think it’s a good it’s a good moment to stop and think about all the people that have helped you and understand that self-made is an interesting term yes it sure is well so now as you think about the next three to five years Shane what are some of the challenges that that you see that you’re going to face in in hitting your goals and who are the types of people that you’re going to need to solve those challenges oh that’s great so we’ve set some really large sales goals for us every year uh every quarter I think um

I think we need to keep finding more people that understand that sales is a noble profession um yes and I think we need to keep finding more people that understand that our prospects and our customers need us it’s not just um us selling snake oils and you know whatever else the the terms are but like understanding that people have budgets people have downtime I mean I have a call that we use in our training where I got down to such personal pain with our purchasing or is actually a maintenance person because you realize that he had gotten in trouble for not keeping that line up before and now that line is down again and that’s his job that’s his livelihood his family everything and a lot in lot balances right there at that moment as our as is my sales person able to deliver the product or the service that they need to get up and running so that their lives are easier or their lives are even effective a business lives are effective and so we need to continuously find people that can get themselves um motivated for that and um find people that have the discipline to continue when it’s hard to do so yeah yeah I like what you said about the the mentality right of not so sales can have a bad rap and one of the things that that we say is you know selling is actually just professionally helping people to make a decision that’s right for them right and that really helped me you know shift my mindset of oh well if that’s what it is then then yeah I want to be a salesperson because that sounds pretty cool right versus the the snake oil version that you mentioned earlier yeah I had a mentor or he’s still a mentor of mine um extremely wealthy individual

um I mean extremely it’s like beyond anything else and um he was the head of the finance committee for his church so like he had to go and raise money for his church and I thought that was so hilarious I was like well you go around asking people for money that’s like what’s that like right and he said to me he goes well you know I’ve been doing it for a while and here’s how I go through this in my head I was like yes and I use this I think about this every day to this day he said when you donate or do something charitable how good does it feel it feels good I love it he goes so by me not asking my wealthy friend to donate for this church I’m stealing the opportunity to make him feel great uh you know what that is absolutely genius I’ve kind of taken that on as well right to to your point right like this is a profession where you know if we are valuable to somebody uh there’s an opportunity that you might get paid for it and that is I forget what the term is the Japanese term but it is like an inflection of like you know a good opportunity to be happy with what you’re doing and make money at the same time it sounds pretty sweet it sure does uh so last question here Jim Rohn said that we become the average of the five people that we spend the most time with so as you think about that quote what advice do you have for business owners who are trying to do it on their own who who don’t don’t think that it’s a good idea to to get help and and and ask people for support or things like that

what would you tell them I I am going through this right now with somebody that I’m mentoring um

there has to be a moment that you realize that there are people that are smarter and More in fact and more effective than you in certain areas and you gotta somehow find the humbleness to do that not everyone has like uh this weird imposter syndrome that Alex and I constantly talk about that we all have which is we thank God we have that because that kind of pushes us to find people to help us with answers right another thing though too and it sounds kind of oh the word to use here but uppity or snobby but I really a few people that I think about that are building businesses right now that I’m talking with and mentoring who do you want to be like how do you want to live your life how do you want to spend your time and are the people that you spend time with now are they good reflections of that right because you know let’s say you let’s say you grew up in a situation where your parents were always talking ill or negative about money or take you know or sometimes the family down the street that went to the country club maybe they said snarky things about them behind their back and like how does that affect you now are you one that wants to kind of live a life that’s better than the one you’ve lived and if it is do you put yourself around people that are going to help you get there or do you put yourself around people that kind of bring you down a little bit and it’s it sounds tough because you have old friendships from the old neighborhood and things like that I know we had that but you have to understand that those the personalities that you spend time with are going to affect how you think daily yeah and um you know let’s use a country club for example we we belong to one because I wanted to play golf and I wanted to meet other like-minded individuals and I was so stressed out at the time because I felt like our whole sales staff were whale hunting it was great because we had a great aov average order size but what we were missing were these higher margin middle size orders that was really helping Propel our business forward right and I’ll and I didn’t say anything about it out loud yet I was talking to my CFO a little bit about it but I never said it to anybody really because I thought it was like a dumb thing that I’m thinking about and just by happenstance I’m talking business with this um guy he probably is in his late 70s but he had built a few different businesses from 10 million to about uh 10 million to almost half a billion so he has understands of growth he has an understanding of managing large teams and we started talking and he went right to it he said hey well tell me about the average order size are you is there a lot of whale hunting are there people hitting deer or moose and I was like oh my gosh and we were able to have a such a solid conversation about how he had seen in his past how bad that affected his business when people weren’t going for those middle-sized orders and and you really have to cultivate those types of sales people that are comfortable in that world and that really helps sustain your business model as you progress and I never would have known that if I didn’t sit and have a really cool conversation with that guy I wouldn’t have sat and had that conversation with that guy if I didn’t get want to get more out of my relationships and the friendships that I had at that time and I didn’t want to get out of those friendships at that time because I might have been set in my ways with the old friends from the neighborhood or whatever and and they’re not going to do anything positive for me for my business so it sounds tough but I also want to ask people too like what do you want out of your business what do you want out of life what does that look like and the people that you spend your time with are they going to help you get there yeah it the the whole Law of Attraction comes into play here right so the people we surround ourselves with are the messages that we internalize and therefore that’s what we think and believe and then there that’s what we attract in our life so I know that’s thank you for being here thank you so honest about that and and uh willing to to share with what you know you said uppity upper snobby right it it could come across as a negative but it’s definitely not it’s not intended to be I know your heart right and so it’s just good solid advice for other aspiring business owners to to look at you know who who are we surrounding ourselves with so you know thank you for sharing that hey yeah thanks for asking the question appreciate that it sounds like you’ve been blessed with some pretty incredible people who have you know been uh key in terms of your journey of of building a successful business so if they were all on the show here today what would you want to say to them thank you and I don’t know why you did it but we I appreciate it I don’t know uh you know there’s like no way to Forever say thank you to those people and some of those people aren’t around here anymore you know um some of those people or someone passing you in the street that you might not even might not ever even known um but if I could tell it just I don’t know how to say thank you but as much as I could that’s what I would say um and I hope I get to pay it forward down the road as well awesome Shane it’s been a pleasure speaking with you today thank you so much for being on the show hey thanks for having me I really appreciate it to everyone who tuned in thanks for listening to the self-made is a myth show with your host coach Tim cancel be sure to help us spread this Movement by liking it and posting about it on your social media and to join our movement go to be mad together.com all right folks that’s a wrap make sure to pay it forward and I’ll see you all next time take care