Patrick Brandt - Former President & Co-Founder of Shiftsmart

In this episode of the Growth Elevated Leadership Podcast, host Julian Castelli interviews Patrick Brandt, a seasoned entrepreneur and business leader. Patrick shares his entrepreneurial journey, detailing the challenges and successes he encountered while founding and leading various companies, including Shiftsmart. He discusses the impact of the 2008 financial crisis and the COVID-19 pandemic on his ventures, emphasizing the importance of resilience and adaptability. Patrick also highlights the significance of balancing supply and demand in a marketplace, the role of partnerships, and the necessity of understanding the labor pool to ensure business success. For more resources on how to be a a better leader in business, please visit us at ⁠⁠⁠⁠⁠⁠⁠GrowthElevated.com⁠⁠⁠⁠⁠⁠⁠, and follow us on ⁠⁠⁠⁠⁠⁠⁠LinkedIn⁠⁠⁠⁠⁠⁠⁠. Timestamps: Introduction to the Podcast (00:00:02)Julian Castelli welcomes listeners and introduces the episode's focus on leadership challenges in tech companies. Guest Introduction (00:00:30)Julian introduces Patrick Brandt, highlighting his entrepreneurial journey and the challenges he faced traveling to the podcast. Patrick's Early Entrepreneurial Spirit (00:01:32)Patrick shares his background, mentioning his early ventures in entrepreneurship, including a lawn mowing business at age 11. The Seminal Moment (00:02:18)Patrick recounts a pivotal moment when his father's company was taken over, igniting his resolve to never work for anyone else. First Company Launch (00:03:17)He discusses starting his first company in 1996 and the challenges faced during the dot-com crash. Investment and Growth (00:04:19)Patrick talks about securing investment and the challenges of selling software during the early 2000s. Acquisition Experience (00:06:15)He describes acquiring a public company and navigating the challenges of leading a much larger organization. 2008 Financial Crisis Impact (00:08:13)Patrick reflects on the challenges faced during the 2008 financial crisis, despite having a successful business at the time. Transition to New Ventures (00:11:09)After selling his company, Patrick discusses his recruitment to run an on-premise company and subsequent successes. Introduction to Shift Smart (00:12:23)Patrick introduces Shift Smart, a company focused on flexible labor solutions in the gig economy. Shift Smart's Mission (00:13:14)He explains the company's mission to help workers stack shifts across multiple jobs to increase flexibility. Raising Funds and Initial Growth (00:14:21)Patrick discusses raising funds in late 2019 and the company's growth trajectory before the pandemic. COVID-19 Impact (00:15:46)He describes the immediate impact of COVID-19 on Shift Smart's business operations and workforce. Innovative Response to Food Insecurity (00:16:59)Patrick shares how they pivoted to help food banks by employing laid-off workers during the pandemic. Launch of Nonprofit Initiative (00:18:06)He details the creation of a nonprofit to employ out-of-work hospitality workers in food banks. Community Support and Media Attention (00:19:07)The initiative gained media coverage, showcasing a creative solution to COVID-related challenges in the community. Shift Smart's Rapid Growth (00:20:10)Patrick shares the rapid expansion of Shift Smart into 12 cities, raising $16 million and serving 60 million meals. The Call Center Challenge (00:21:05)Patrick discusses a last-minute request from the SBA to set up a call center in just 72 hours. Partnership and Problem-Solving (00:22:15)Despite initial setbacks, Patrick and his partner strategize to meet the SBA's urgent call center needs. Recruiting and Implementing (00:24:09)They face the challenge of recruiting 3,600 people and implementing necessary software in a tight timeframe. Unexpected Outcomes (00:25:08)Despite being prepared, no calls came in, but the program became significant for the SBA and their business. Navigating Zero Revenue (00:27:14)Patrick recounts the drastic drop to zero revenue and their decision not to lay off any employees during the crisis. Adapting to Market Changes (00:29:18)The pandemic shifted their business model from hospitality to on-demand labor, changing their workforce dynamics. Rapid Worker Growth (00:30:12)Shift Smart experienced unprecedented growth, reaching nearly 4 million workers on the platform in a short period. Investment and Leadership Transition (00:31:33)In late 2021, they secured $100 million in funding, leading Patrick to step back from daily operations. Nonprofit Efficiency (00:32:14)Patrick praises Akash for revolutionizing nonprofit operations, improving efficiency and throughput during their initiatives. Lessons on Partnerships (00:35:53)Patrick emphasizes the importance of choosing partners with aligned values and experiences for navigating challenges. Marketplace Challenges (00:39:00)Discussion on the cold start problem in marketplace businesses and strategies to balance supply and demand effectively. Marketplace Dynamics (00:39:08)Discussion on the challenges of balancing supply and demand in a marketplace. Market Maker Importance (00:40:10)Explanation of the concept of a market maker and its critical role in marketplace success. Guaranteed Stock Strategy (00:40:13)Illustration of Uber's strategy of guaranteeing driver availability during city launches. Shift Fulfillment Challenges (00:41:02)Insights into the necessity of achieving 100% fulfillment in staffing to maintain business. Magic Moment Concept (00:42:25)Discussion on creating 'magic moments' in the marketplace, akin to dating app matches. Labor Flexibility and Demographics (00:43:46)Overview of the diverse labor pool, including retirees and part-time workers seeking flexibility. Conclusion and Gratitude (00:45:07)Closing remarks and thanks to the guest for sharing insights despite challenges faced.