Over the course of growing my company, Newair, one thing remained constant—cash was always tight. Our growth was fast, and I had to constantly reinvest back into the business to keep up with demand. We were growing inventory, expanding into new markets, and constantly moving into larger warehouses to accommodate our growth.
In fact, we moved into seven different warehouses over the years, starting from a garage and eventually occupying more than 200,000 square feet, with distribution centers on both the east and west coasts. Growth was exciting, but it came with its challenges, and managing cash flow was one of the biggest. Margins were everything, and I poured all the earnings back into the business, often avoiding what I thought were unnecessary expenses.
Looking back, that mindset was a mistake.
The Shift Toward Expertise
For many years, I handled most of the big decisions myself, believing that keeping costs down was the key to survival. But it wasn’t until I brought in a top-tier management team and outside experts that I realized the power of hiring the right talent—and that expertise is worth every penny..jpg?width=308&height=205&name=steptodown.com575427%20(1).jpg)
The turning point came in the final five years before I sold the business. The first major step was hiring a set of consultants who had decades of experience and had been involved in transactions worth over a billion dollars. They quickly identified gaps in our systems and processes, and they put me on the path toward a major upgrade: implementing a new ERP system.
This move was a game-changer. Not only did the ERP system streamline our operations and give us access to real-time financial data, but it also set us up for audited financials—a must-have if you want to work with serious investors. This, in turn, led to a much better banking deal, improving our cash flow and positioning the company for further growth.
Building a World-Class Executive Team
Another crucial lesson was learning the value of the right executive talent. Over the course of four years, with the help of an outstanding executive recruiter, I hired some of the best leaders in the industry for key roles in sales, marketing, product, and finance.
Yes, these hires were expensive, but the return on investment was undeniable. Having executives with proven experience in their respective areas transformed the business. They brought new strategies, industry connections, and operational discipline that helped us accelerate our growth and improve our margins.
Navigating the Deal Phase
As we prepared to transition into the deal phase, I was lucky enough to find a sell-side advisory firm that became my guiding star. Their expertise was invaluable as they helped me hire a top-notch attorney to manage the legal aspects of the deal, and they also connected me with an experienced investment banker who knew how to get the best terms.
Each one of these consultants was the best in their field, and I can honestly say that I wouldn’t have made it to the finish line without them. They provided not just expertise, but the confidence and guidance I needed during critical phases of the business and deal-making process.
The Lesson: Invest in the Best Talent.jpg?width=234&height=155&name=steptodown.com764908%20(1).jpg)
The key takeaway from my experience is simple: the best talent is always worth the higher price tag. Whether it’s consultants, executives, legal experts, or bankers, having the right people in your corner can make all the difference.
In my early days, I thought saving money by doing everything myself was the best approach. But in reality, hiring the right experts earlier would have saved me time, stress, and ultimately led to better outcomes.
Need Help Building Your Expert Network?
If you’re feeling stuck or need help building out your own network of experts, I can help. Having been through it myself, I know how daunting it can feel, but I also know how transformative it is when you surround yourself with the right people. Don’t make the same mistake I did by waiting too long—invest in top-tier talent, and the results will follow.
