Finishing my talk with Paul Weaver
- B.J. Yoder: Young Money
- August 16, 2023
- 673
Part two of BJ Yoder’s interview with Paul Weaver, which concludes with a story at the end that’s a good example of how money works in a corporation.
Q: What common mistakes have you seen from people wanting to start investing or start a business?
When people look at investments, they look solely at the returns. I remember the CEO of Southwest Airlines was this flamboyant guy that would drive his motorcycle into the office when he would show up. Then the flight attendants would add humor to the safety presentation and the introduction to the flight. When COVID-19 hit, all airline stocks were down, so I invested in Southwest because of how great the CEO was. All of sudden the stock went down. What I didn’t know was that there was a new CEO. He neglected everything but the bottom line, equipment, staff, and now it is one of the worst airlines out there.
I look at the leadership team when I am looking at businesses, and Weaver Leather has an unreal executive team.
Q: What would you tell your 20-year-old self?
Rome wasn’t built in a day. Plan your work and work your plan.
He then said “a good plan is halfway done” in Dutch, and isn’t that the truth?
Q: I was part of Lodestar through Hummel. What other opportunities have you been afforded to help people through your business?
My legacy program will not be Weaver Leather; it will be Lodestar. We will hire Amish girls, and they will leave, but then we will hire their kids. When people leave Weaver Leather, we have them fill out a small note card asking questions about their time at Weaver Leather. I have noticed that over 50% of those cards love the character program (Lodestar) because it does not only help their work life, but it’s also helped with their at-home relationships, whether it’s marriage, kids or parents.
Q: What is good financial business advice for any industry?
Whatever you do, do it in your sweet spot. Do not work on the numbers if that doesn’t energize you. What energizes me is people and new opportunities. I know I am an absolute 10 at delegating, not pushing off work to others, but delegating. Then my other sweet spot is communication with people, keeping morale and new products as well. The culture at Weaver Leather didn’t happen by accident, which was very intentional.
Q: Most recommended book?
“Good to Great” by Jim Collins. It shows how the worst enemy of great is good. I know that I can live in a healthy discontent.Healthy, it is moving the needle just a titch because I have seen too many people let their hobbies run their time. They have become content, and their hobby has become their profession.
One story he told me really resonated:
“With your company you want to be as transparent as possible. Tell them everything and treat them like a partner in a company. I had asked my accountant to come in and give a presentation showing where everything went from a single dollar bill. The dollar bill represents the company’s gross sales. So he went through and he peeled away 30% for cost of goods, then 30% for the cost of labor. Then he kept peeling away until he got to one dime or 10%. Then he took five cents off for taxes, leaving one nickel for ending profit.
“After that, I asked the employees what they thought the percentage was, and I heard anywhere from 25-50%, but they were all shocked and wondering how we even made it. I told them that it is what we do with that nickel that makes the difference. Every bonus moving forward, everyone was much more appreciative of it because they knew what it took to get.”
Holmes County native BJ Yoder is an insurance agent by day and a finance enthusiast by night. This column is for informational purposes only. He can be emailed at benjamin.john.yoder@gmail.com.