An Interview With Chad Silverstein
Before full implementation, it involves a lot of education of employees given that people are trained to think that being an owner is just for special people.
The global pandemic has forever altered the landscape of sales, propelling us into the era of remote selling. Today, businesses and sales professionals face the challenge of connecting with clients and closing deals without the traditional in-person interactions. Mastering the art of remote selling has become not just an advantage but a necessity. From leveraging technology and digital tools to building trust and rapport over virtual platforms, the skills required for effective remote selling are evolving. I had the pleasure of interviewing Matt Perez.
Matt has been in the computer business since 1976, first in Chicago and later in Silicon Valley. Throughout his career he’s helped raise over $50 million dollars of Venture Capital. His last company got sold successfully.
In the last seven years he has concentrated on developing the Radical model with Adrian Perez and Jose Leal.
Last year he has also co-started a company, rEnchilada, with his partner Jose Contreras. rEnchilada is a sales company that handles the whole sales process.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to “get to know you” a little bit about you. Can you tell us about your ‘backstory’ and how you got started?
As I was about to leave for the US, my uncle advised me to go for the newest technology and that was computers. This was in 1969!
In 1983 I moved from Chicago to San Jose, California. I had started a business in California selling Unix machines and software and I went to visited a customer in California. My wife and I immediately loved the area. Soon after the visit, we moved and never looked back.
How would you describe the culture at your company and what has been the biggest contributor?
I f0unded a company named Nearsoft and sold it in 2017. As I said above, the company was co-managed from the start and that contributed in large part to its success.
How would you explain what an ESOP is to someone who has never heard of it before?
At one point I was really excited around ESOP, the Employee Stock Ownership Plan. It seemed to work well and it was a US law. Then I researched it and I wasn’t so excited anymore.
The ESOP law was inspired by Louis Kelso and co-author Mortimer Adler in their book Capitalist Manifesto. A post by Thomas Lewin claims that ESOPs were “… driving employee performance and satisfaction.” That is pretty much the way I felt until I discovered how many loopholes had crept in the law over the years. For the most part, ESOPs are a windfall for the owner, and the employees have no say in the business.
Looking back, what was the catalyst that made you start thinking about transitioning to an ESOP?
We ended up not transitioning to an ESOP and then we sold the company.
Was there ever a point you doubted the ESOP route? What kept you motivated to push through those challenges?
See above.
ESOP companies often have a distinctive culture and operational approach. What makes your company stand out from others, thanks to the ESOP structure?
See above.
Great. Now, let’s dive into the heart of our interview. The transition to an ESOP involves a lot of challenges and opportunities to learn. Could you list the top “Five Things You Need to Successfully Leverage the Power of ESOPs”?
Before full implementation, it involves a lot of education of employees given that people are trained to think that being an owner is just for special people.
Ongoing education on how to leverage that power. New Belgium Brewing did an excellent job of that before it was sold.
Open books and goals. Again New Belgium Brewing did an excellent job of that before it was sold.
Financial literacy is crucial in an ESOP for employees to understand the value of their shares and how their actions impact the company’s success. What initiatives have you taken to educate your employees about financial aspects and the workings of the ESOP? Employee ownership often changes the dynamics of engagement and participation. How have you seen employee involvement evolve in decision-making and daily operations since transitioning to an ESOP?
Decision-making and daily operations, better known as self-management, is a different thing altogether. Most ESOP businesses don’t have self-management; ESOPs are purely financial in nature. New Belgium Brewing implemented his own form of self-management.
Company culture and the ability to attract top talent are critical factors for business success. How has adopting an ESOP model impacted your company culture and your approach to recruiting and retaining employees? Do you believe the ESOP model has given you an advantage in the labor market?
ESOPs are great for retaining people..
How can our readers further follow you or your company online?
Decision-making and daily operations, better known as self-management, is a different thing altogether. Most ESOP businesses don’t have self-management; ESOPs are purely financial in nature. New Belgium Brewing implemented his own form of self-management.
This was great. Thank you so much for the time you spent sharing with us.
About the Interviewer: Chad Silverstein, a seasoned entrepreneur with over two decades of experience as the Founder and CEO of multiple companies. He launched Choice Recovery, Inc., a healthcare collection agency, while going to The Ohio State University, His team earned national recognition, twice being ranked as the #1 business to work for in Central Ohio. In 2018, Chad launched [re]start, a career development platform connecting thousands of individuals in collections with meaningful employment opportunities, He sold Choice Recovery on his 25th anniversary and in 2023, sold the majority interest in [re]start so he can focus his transition to Built to Lead as an Executive Leadership Coach. Learn more at www.chadsilverstein.com
Matt Perez On Why ESOPs Are the Future of Business Succession was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.