Executive Letter #21: Can't Live With 'Em, Can't Live Without 'Em

If you’ve been following along for any time at all, you’ve likely picked up on the fact that I consider my team members to be true partners with me in the work my company does. I trust them to work as hard and push as far as I do, and because of it we’ve reached goals that were only dreams years—or even months ago.

But I want to switch gears and talk about a different kind of team member or partner today: specifically, business partners.

I’ve had a number of business partners in my life, including friends and family. I’ve had a number of different experiences, too. Some good, some bad, all leaving me with valuable lessons.



Today, I want to talk about why business partners are essential, and why I’ve done everything in my power not to need one.

Now, I want to talk about how to get those kinds of relationships going: what kind of foundation you need, what kind of conversations to have, and what signs to look for when you’re talking to someone face to face. It all starts with your core values and ensuring your team exemplifies them. 

When interviewing potential team members, never forget that potential comes in all shapes and sizes. Today, I'm going to tell you about a long-time team member and a newer one. 

What Do You Want in Life?

I’ve never been good at taking orders from people. From the time I was a kid, I worked out ways to make my own money, be it mowing lawns, selling baseballs cards, or delivering newspapers. Even during the grocery days, I was always looking for my own means, like buying my first carwash at 21.

I didn’t start thinking of myself as entrepreneur until much later in my life, but I certainly had most of the qualities you’d find in the dictionary. There were times when I’d built up a business to the point of selling it off and had to turn down buyers who wanted me to sign a non-compete clause. Why? Because my next step after selling my business was to turn around and start it all over again.

But there were also times when it was necessary to share the leadership of my business in the making. And let me tell you, it wasn’t easy.

It started early on with my dad—though I’ve told you that story before. What I learned from that experience was that I’d rather work with someone than for someone.

The opportunity to do so came early on in the story of REI Nation, when Sherry and I were retirees looking for passive income opportunities in Memphis. We attended local Real Estate Investors Association (REIA) meetings, only to realize that we knew more than most of the folks there. Having such a long track record in business was surely a leg up, but I’m also relentless when I want to learn about something. Sherry and I listened ad nauseum to every real estate book we could get on cassette, discussing what we were learning as we scanned local neighborhoods.

It was at one of those REIA meetings that we met a local investor who would change our lives. It began with a conversation during which we were frank about what we had and what we wanted. He had the money to invest, but needed someone to handle the details. I knew the details, but had only my own money to get started.

He would go on to buy thirty houses from us during the first few years of our business.

That partnership taught me what it meant to work hand-in-hand with investors. Without him, I’m not sure the business model of REI Nation would have ever come so far.

Seeing Eye to Eye

In another chapter in the story of REI Nation and Premier Property Management Group, I partnered with a local businessman on a property management company. At the time this company handled all the management for turnkey properties acquired and renovated by my team.

Within a few years of this arrangement, however, the property management side of things was stalling. Customer service was so-so, with residents as well as my team members coming to me complaining that no one answered the phone.

It was time to reevaluate our priorities when it came to property management. I wanted to set new, rigorous standards for how we treated our residents. It was going to take time, effort, and money—and that was tricky at a time when we knew we had to get to a certain amount of properties under management to begin making more of a profit—but if that’s what we needed to do to earn back the trust of our residents then it was worth it.

I also knew we had to find a differentiator that set us apart in the eyes of investors and residents, and I wanted that key thing to be better than excellent customer service. Achieving this would require investment in team members, processes, and time, and would be a new focus for our company. This was a different business philosophy than our partners in property management had at the time, so it was a natural breaking point in my relationship with that business partner. After discussing our different visions for the future, we amicably went our own ways.

After the split, turnkey investment properties that we sold stayed in-house rather than going to another property management company, and that wing of operations eventually became Premier Property Management Group. I took back the talent that I’d introduced, our old partners went on to get a new name and a new slew of team members, and they’ve been successful in their own right.

I'll be the first to tell you that we didn't get everything better than excellent immediately and it took us a while to hit all the right notes with our customer service. But keeping it a focus every single day for the last nineteen years has continued to be a key differentiator for our business and is an investment well worth the money and manpower.

I think of that partnership as not so different from the one I had with my dad back in the day. It served both partners, until it didn’t. It’s not always a dramatic end. Instead, a new dream emerges and you see where it goes.

The Silent Partner

There’s one exception to everything I’ve said so far in this letter. The one partner that’s been a constant as I moved from enterprise to enterprise, win or lose.

My wife, Sherry.

Sherry calls herself the silent partner of REI Nation at this point in the company’s life. That doesn’t mean she’s quiet when she disagrees with my sons and me about critical decisions or forks in the road. She’s the first to hold us accountable to our word and is the first person my sons call when they think I’m being unreasonable. If anyone can talk sense into me, she knows she’s the one to do it.

I wanted to talk about Sherry for a few reasons, the first being that “partners”—if they’re good ones—don’t play just one role in your business.

Sherry has always been a hard worker. In the grocery business, she did everything she could to learn each position and area of the business. When we started working in real estate, she applied those same skills to our new industry. She taught herself QuickBooks and accounting. She’s also helped acquire properties and talent. Above all, she’s been a thought partner when I really needed someone to give me their ear. None of this could have happened without her.

The other reason, is that I imagine most of you I’m speaking to are not alone out there. No person is an island. Whether you’re married, have kids, or none of the above, I encourage you to take stock of the people who’ve been a part of your journey, if only from the sidelines. Friends, coworkers, managers, mentors. Chances are their encouragement led you here.

That’s what true partnership is all about. It’s taking the lead, or following it: whatever is needed in the moment, in pursuit of the greater goal.

Commit to The Grind

Entrepreneurs hate admitting when they can’t go it alone. I’m the first to fall into that category. But it’s a fact of life that we can do almost nothing without the partnership of others.

Whether it’s raising money, finding a storefront, or building inventory, every action requires connection and trade-offs. Being honest about why you’re working with someone is essential. It will keep you from taking too much, or being taken.

Regardless of what industry or season of life you find yourself in, I encourage you to think clearly and creatively about what partnership means to you. You may find that The Grind gets easier with an extra pair of hands.

Until next time,

Kent Clothier
Chief Grind Officer