Howard Makler of Innovation Refunds On 5 Things You Need To Know To Successfully Scale Your Business

Be ready to act. It only takes one good thing to change everything. And when that pivotal moment comes, will your eyes be open and ready to see the opportunity? That’s the first thing to master. Be open to seeing opportunity. It’s everywhere, once you set your intention and know what you’re looking for. Then, weigh the pros and cons, seek guidance from your mentors, trust your gut — and act.

Startups usually start with a small cohort of close colleagues. But what happens when you add a bunch of new people into this close cohort? How do you maintain the company culture? In addition, what is needed to successfully scale a business to increase market share or to increase offerings? How can a small startup grow successfully to a midsize and then large company? To address these questions, we are talking to successful business leaders who can share stories and insights from their experiences about the “5 Things You Need To Know To Successfully Scale Your Business”. As a part of this series, we had the distinct pleasure of interviewing Howard Makler.

Howard Makler has been starting and growing successful small businesses for 30 years. From giving gamers the ultimate in-person gaming experience to making it possible for everyday investors to invest in real estate, Howard seeks out opportunities to create access where it doesn’t exist. Today, he is the co-founder and CEO of Innovation Refunds, a dedicated team of small-business champions who, along with a network of tax attorneys, CPAs, and tax professionals, have helped thousands of companies receive billions of dollars in government-issued Employee Retention Credit refunds. Through his leadership, Innovation Refunds is helping small businesses across America gain access to the capital needed to reach their maximum potential.

Thank you for joining us in this interview series. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’?

I’ve always been an entrepreneur. The first job I ever had was a company I started out of my bedroom at age 15 — just as personal computers were launching — selling business software. I was determined to be successful; so much so that I convinced a Dun & Bradstreet representative to come to my house and learn about the business I’d just started.

My second venture was the result of a friend and I seeing an untapped opportunity to help retailers, dealing with nationwide store closings, unload their real estate. We got an introduction to a national bookstore chain that was closing 50 locations and managed to beat out some of the biggest commercial real estate players in the country for the business. That’s how Excess Space was born; we grew the business to become a leader in providing retailers with real estate disposition, restructuring, renewal, and valuation services. The company was eventually acquired, but not before we put $3 billion in capital back to work for retailers across the country.

I’ve always been drawn to business opportunities that help level the playing field for people, opening a door to access something they couldn’t before. Howie’s Game Shack, for example, was one of the first networked brick and mortar computer gaming centers where people could go to get the full gaming experience. I also established one of the first FinTech platforms that made it possible for the average investor to invest directly in real estate investment trusts, or REITs.

What I learned along the way led me to Innovation Refunds, which is the most exciting business I’ve had the opportunity to lead. I am an entrepreneur, so I know how entrepreneurs think. I know what they need and what keeps them up at night. Most often, it’s capital — to pay employees, to buy more equipment, whatever it is, to keep the business running. We’re in the business of helping small and mid-size business owners access more of that working capital to help them run their business.

You’ve had a remarkable career journey. Can you highlight a key decision in your career that helped you get to where you are today?

When you’ve been running businesses as long as I have, you start collecting a few of those “pivotal decisions” stories. There’s one that stands out for me. At one point, a company of mine owed more than a million dollars for airtime with a few radio companies. We didn’t have the money to pay the bills, and we were at risk of going out of business. Instead of accepting defeat, I walked into the offices of each of the broadcasters’ CEOs and explained our situation. I said something like, “I have only one way out of this with you. I can stay in business and pay you 10 cents on the dollar; or I could pay you no cents on the dollar.” This was risky because every one of the CEOs had to agree to this arrangement. If one executive demanded to be paid in full, we didn’t have the money — which means no one would be paid. So, I said this to each media group, and I told them, “All you’re going to get is my personal word. I owe you. I owe you, and I’ll be back.”

They all agreed, but I know none of them expected I’d ever be back. Three years later, I called one of those CEOs and said, “Hey, I’m back, and I need media. But this time, I’ll pre-pay you.” We had a good laugh and today he’s one of my best references; we’ve become friends. He’s opened the door to major corporations for us. Because it’s all about integrity. Those CEOs knew that I was honest and here we are doing business with all of them again.

That was a great learning experience for me. It reinforced for me that being a man of your word is essential to building and maintaining trusted business relationships of value to both sides.

What’s the most impactful initiative you’ve led that you’re particularly proud of?

I’m incredibly proud of the work we’re doing at Innovation Refunds. Large businesses have much more access to capital than small businesses, which are the backbone of the American economy. Access to capital in today’s climate could be the difference between surviving and going under. We’re helping solve that. We empower these small and mid-sized businesses to reach their full potential by helping them gain access to capital — and they can use it in whatever way they see fit for their business, be it to cover operating expenses, reward employees, create jobs, pay off debt, or build a safety net.

For example, we’ve built a streamlined way for business owners to figure out if they qualify for the Employee Retention Credit. We connect them with certified tax attorneys and CPAs to determine eligibility and claim their money. This important work has returned billions of dollars to thousands of small and mid-sized businesses at the heart of our economy.

Sometimes our mistakes can be our greatest teachers. Can you share a mistake you’ve made and the lesson you took away from it?

Several years ago, I learned a vital lesson about the importance of addressing toxic workplace behavior before it poisons your entire organization. I’d hired someone who, I soon came to realize, was creating negativity and business risks through his decisions and behavior. Rather than face the facts that this person was causing the organization more harm than good, I waited in hopes something would change. It didn’t, and I ended up having to let him go, but not until he’d created issues for me and his co-workers. From that, I learned how important it is to protect your business from troublemaking behavior by acting swiftly and definitively.

How has mentorship played a role in your career, whether receiving mentorship or offering it to others?

Mentorship has played a huge role in my career, and it’s come from a variety of sources: my dad — a business owner himself — who taught me a lot about entrepreneurship; a spiritual leader who long ago guided me about finding purpose in life and work; and many business leaders who I’ve had the privilege to meet and learn from. It’s important to create a diverse network of mentors from whom you can learn and grow. I do my best every day to pass along the lessons I’ve learned and be a mentor to others. It’s important to keep the cycle going.

It’s also important for companies to prioritize mentorship and not just expect it to happen naturally. At Innovation Refunds, we have a formal mentor program. We also have two full-time coaches who are there to help anyone in the company who needs guidance on navigating a personal or professional challenge.

Developing your leadership style takes time and practice. Who do you model your leadership style after? What are some key character traits you try to emulate?

I’ve never intentionally set out to emulate any one person’s leadership style. For me, it’s always been about how I choose to live my life. And I follow three principles in life and leadership: do what you love and bring your passion, be curious and open to learning, and make a commitment to always act with integrity. Those values have served me well both personally and professionally, creating the basis for how I lead companies and teams.

Thank you for sharing that with us. Let’s talk about scaling a business from a small startup to a midsize and then large company. Based on your experience, can you share with our readers the “5 Things You Need To Know To Successfully Scale Your Business”? Please give a story or example for each.

1. Get out of your own way. As a business owner, one thing I learned long ago is that you can either work on your business or in your business — but you can’t do both well and expect to grow. I best serve my company by focusing on the big picture and giving the amazing people we’ve hired the space and support to do their jobs well.

2. Never stop focusing on your people. Whether you employ one person or 100, you can’t grow without the support of your employees. Hire people who want to succeed — for themselves and your business. Invest in training that will help them grow and flourish in their roles — and in whatever they may decide to do next. And never stop showing them how much you appreciate their commitment.

3. It’s always about the customer. Steve Jobs — before he was Steve Jobs — taught me my first lesson about serving your customers. I had one of the very first Apple computers and when I turned it on, it would knock out every TV in the house. I lived in Menlo Park, so I called Apple and asked to speak with Steve Jobs directly. After a few failed attempts, they connected me with him. I told him the problem, he apologized, diagnosed the issue over the phone and had someone drive right over to my house to fix it. That lesson in listening and fixing customers’ problems quickly has always stuck with me. And, yes, that’s a true story!

4. Take advantage of resources available to you. There are several tax programs and refunds that small and mid-sized businesses can use to invest back into their companies and scale operations. Seek out qualified experts who can help determine what your business may qualify for.

5. Be ready to act. It only takes one good thing to change everything. And when that pivotal moment comes, will your eyes be open and ready to see the opportunity? That’s the first thing to master. Be open to seeing opportunity. It’s everywhere, once you set your intention and know what you’re looking for. Then, weigh the pros and cons, seek guidance from your mentors, trust your gut — and act.

Can you share a few of the mistakes that companies make when they try to scale a business? What would you suggest to address those errors?

There are a few key mistakes companies make when trying to scale:

• Losing sight of what their customers need. You should never assume you know what your customers need without asking them. As you grow, don’t stop asking and never stop listening.
• Forgetting to put their employees first. You can’t scale if you can’t staff to your growth. That’s particularly challenging in today’s tight labor market. A focus on training and creating a positive employee experience will help you hold on to your rock stars and attract future hires.
• Losing focus. It’s easy to get distracted by potential new markets or product offerings — but how well will they serve your business in the long run? Stay focused on your best opportunities. And remember, CEOs and senior leadership should work on the business, not in it.

Scaling includes bringing new people into the organization. How can a company preserve its company culture and ethos when new people are brought in?

We’ve grown Innovation Refunds’ staff from 20 in 2021 to more than 1,000 today — so this is something we work at every day. We like to say we were “forged in F.I.R.E.” — Fun. Integrity. Resilience. Excellence. Our co-founder is our designated F.I.R.E. chief — he makes sure we’re bringing those values to life. We’re not just creating a company; we’re building a community of people who are very clear and passionate about our purpose for existing — and that’s to put funds into the hands of the small businesses that need it most. Our employees get that, and they’re excited about the difference they’re making and how they’re helping our company grow.

Storytelling is a powerful tool for engaging everyone on your purpose. Every day, our employees share stories about a business they helped or a goal they reached. It’s infectious.

Every company’s reason for being is different — but make sure you’re finding ways for employees to celebrate the role they’re playing in your successes, whether they’ve been there a day, a year, or since day one.

Many times, a key aspect of scaling your business is scaling your team’s knowledge and internal procedures. What tools or techniques have helped your teams be successful at scaling internally?

We’ve been very intentional in building a culture of support where people want to help and celebrate each other. When we were small, getting a question answered was as easy as asking the person across the table from you. Now, we have many geographies and there are reporting structures. So, we empower employees to be the keepers of knowledge so they can turn to each other for answers. We’ve always had weekly all-staff meetings to make sure everyone across the company is getting the same information. And we hired an internal communications team who ensure everyone can share their stories about the difference our work is making in the lives of small business owners.

What software or tools do you recommend to help onboard new hires?

Our workforce has grown quickly, and we’ve been careful in our need for speed not to be myopic about onboarding new employees. The onboarding experience with Innovation Refunds starts as soon as a candidate shows interest in working with us — we want the hiring process experience to be first-rate, no matter what the outcome. From a tech standpoint, we use Greenhouse’s applicant tracking and hiring system, which provides both job candidates and hiring managers with real-time awareness of where they are in the hiring process.

But tech is just part of our onboarding equation; we’re more about heart and creating personal connection early to make sure new hires feel supported and empowered in their roles. Members of our talent acquisition team become personal sherpas to new hires for the first 90 days — it’s a true buddy system focused on orienting them to all things Innovation Refunds, including our vernacular.

We also make sure every new team member understands performance expectations — we set clear, consistent performance goals for everyone, whether you’re a contractor or a full-time employee. And we do check-ins with new team members at 30 and 60 days to get their feedback on how things are going.

Because of your role, you are a person of significant influence. If you could inspire a movement that would bring the most amount of good to the most people, what would that be? You never know what your ideas can trigger.

Successful small and mid-size businesses are vital to our economy — they create jobs, futures and put money back into communities. I envision a movement that rises to empower these businesses so that they can gain more access to not only capital, but also support and advice they need without jumping through a million hoops. We’re working on making it happen!

How can our readers further follow your work online?

Follow me on LinkedIn: https://www.linkedin.com/in/howardmakler/ or https://www.innovationrefunds.com.

This was truly meaningful! Thank you so much for your time and for sharing your expertise!