Tom Gavin of CannaTrac: Five Things You Need To Create A Highly Successful Startup

Your startup should have strong ties — to your networks, and key players in your industry. Don’t underestimate the importance of getting out there and making connections and partnerships to drive the business forward.

Startups have such a glamorous reputation. Companies like Facebook, Instagram, YouTube, Uber, and Airbnb once started as scrappy startups with huge dreams and huge obstacles.

Yet we of course know that most startups don’t end up as success stories. What does a founder or a founding team need to know to create a highly successful startup?

In this series, called “Five Things You Need To Create A Highly Successful Startup” we are talking to experienced and successful founders and business leaders who can share stories from their experience about what it takes to create a highly successful startup.

I had the pleasure of interviewing Thomas Gavin, CEO of CannaTrac.

Tom Gavin began his professional career over 21 years ago in residential and commercial real estate finance. During an 18 year span in the industry, he was responsible for managing a corporate office and 4 out-of-state offices, in addition to overseeing more than 100 employees.

In 2005, he began dabbling in the marketing and advertising industry as well. After assisting with the development of an improved marketing campaign for 14 publications, he decided to start T E G Resources, Ltd., in late 2007. The boutique firm provided marketing consulting to small-medium sized businesses looking to expand within their market and become more efficient.

In September of 2015, Tom was presented with the opportunity to step away from the lending world and fully immerse into the world of cannabis. He started as a consultant for CannaTrac Technology to assist them with their marketing plans, and was quickly moved into the role of Director of Marketing in February of 2016, then to Chief Operating Officer by May 2017. During his time as COO, he established relationships throughout the industry and beyond. By January of 2019, the Board of Directors had appointed Tom to the position of CEO.

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 bit better. Can you tell us a bit about your ‘backstory’ and how you got started?

I actually got into this business in a story that looking back, seems like it was based on good karma. I had met the founder of CannaTrac at a local restaurant about 6 months before I was hired as a consultant. He looked like he was having a rough day, so I sent him a drink and invited him to join my group of friends that were at the bar. He joined our party and we ended up becoming friends.

When it came time for Terry to hire a person to help with banking, he talked to me first. At the time, as much as I wanted the position with CannaTrac, I didn’t feel I had all of the requisite skills needed to fill the position, so I referred him to someone else. I apparently shocked him by being so honest that he hired me immediately as a consultant and I moved my way up the ranks over the next few years.

What was the “Aha Moment” that led to the idea for your current company? Can you share that story with us?

The “Aha Moment” for CannaTrac was definitely the need for cannabis banking services. As we know, banking access for companies dealing with cannabis, even ancillary and professional services companies, can be difficult to access due to federal regulations. There is a major need for these companies to do business in something other than cash due to safety concerns, high costs, and transparency issues. Without regulations in place and systems to monitor the movement of cannabis money, it is difficult to legitimize the industry. Out of this need, CannaTrac was born and I truly believe in the concept, so I went all in.

Was there somebody in your life who inspired or helped you to start your journey with your business? Can you share a story with us?

Terry Patton, the visionary who founded CannaTrac and came up with this brilliant concept to solve cannabis banking issues, inspired me greatly and helped me on this journey. It’s a true testament to the power of networking, being a good person, and believing in a dream (paired with the dedication to follow through!)

What do you think makes your company stand out? Can you share a story?

While cannabis banking is a difficult process these days, there are many solutions available which I think is a great way to view the innovation and vision of folks within the cannabis industry. Although there are other solutions, I believe CannaTrac stands out from the crowd because we offer the only payment solutions with all options housed in an easy to use platform under one roof.

How have you used your success to bring goodness to the world?

I really enjoy paying it forward, and a couple times a week I’ll go on social media and make personal donations to friends’ charities, support different nonprofits, or share information to help amplify causes that are important to me. I have also sat on a couple different boards as a volunteer, and have felt an obligation to give back to veterans organizations especially. My grandfather was a POW in the Navy in Korea and I feel the need to support these organizations since I believe in what they do to support the American people.

You are a successful business leader. Which three character traits do you think were most instrumental to your success? Can you please share a story or example for each?

The first character trait I credit my success to is organization and the ability to handle time management. There are many moving pieces in my role and never enough time in the day to handle them all. It’s about prioritizing and making sure the most important items are completed to keep the wheels of the organization running smoothly.

The second is persistence. When I joined CannaTrac, I knew I would be making some sacrifices, in time with my family and in income as the company grew and scaled. Being able to see the end goal and keep on a steady path requires a high level of persistence and belief in the vision of the company.

The third trait would be leadership and the ability to delegate. It’s impossible to do everything on your own, even with stellar time management, and so building a strong team filled with qualified people you can trust is important. Having the confidence to delegate tasks will help ensure everything will get done so you can focus on running the business.

Often leaders are asked to share the best advice they received. But let’s reverse the question. Can you share a story about advice you’ve received that you now wish you never followed?

Unfortunately, I would follow the advice of never hiring someone who I would feel uncomfortable letting go of. Keep your personal relationships and business relationships separate to ensure you are using your best strategic judgment. Learn to compartmentalize so you can “see the forest through the trees” when it comes to your employee relationships.

Can you tell us a story about the hard times that you faced when you first started your journey?

Starting my journey at CannaTrac was filled with ups and downs as I came into the business in its very early days. As a contractor, I wasn’t making big decisions in the beginning, but had to put a lot of skin in the game. I couldn’t initially take a paycheck and the hours were long, but I knew there was a capacity for success with this team and I believed in the company. I’m glad I did, because now I am so proud of my commitment and what we’ve built together for the cannabis industry.

Where did you get the drive to continue even though things were so hard? What strategies or techniques did you use to help overcome those challenges?

Honestly, the drive comes from not wanting to fail. It was a hard decision to make sacrifices in the beginning of working with CannaTrac, and I am not a person who likes to fail. The desire to succeed was tied to the challenges I faced, which helped motivate me to push forward every day.

The journey of an entrepreneur is never easy, and is filled with challenges, failures, setbacks, as well as joys, thrills and celebrations. Can you share a few ideas or stories from your experience about how to successfully ride the emotional highs & lows of being a founder”?

I really believe in giving back and supporting the people around me that I care about. I really am driven by a desire to make people’s lives better, including bettering the businesses of my cannabis industry comrades by helping them access safe and simple banking solutions. Cannabis is filled with enough regulations, requirements, and hoops to jump through for compliance — so figuring out where to put your money at the end of the day should be the last thing on their mind!

On a personal note, finding ways to give back through friends’ philanthropic programs and charities helps fill my tank to keep going. Especially the veterans organizations as they are working to make a difference every day in the lives of people who have given their lives and talent to care for our country.

Let’s imagine that a young founder comes to you and asks for your advice about whether venture capital or bootstrapping is best for them? What would you advise them? Can you kindly share a few things a founder should look at to determine if fundraising or bootstrapping is the right choice?

Although this sounds difficult, I believe founders have to do both fundraising and bootstrapping to be successful. The reason for this is because a business usually needs more money than they think they will, and you should always expect unexpected expenses to pop up. It’s important to ensure funding is in place before scaling the company in a way that would make funding difficult to get later down the line.

Bootstrapping will still have to be done concurrently with fundraising, and sacrifices will have to be made by the leader to make the business succeed, especially in the early days.

I’d encourage founders to look into all funding sources including venture capital to find the right options for their business.

Ok super. Here is the main question of our interview. Many startups are not successful, and some are very successful. From your experience or perspective, what are the main factors that distinguish successful startups from unsuccessful ones? What are your “Five Things You Need to Create a Highly Successful Startup”? If you can, please share a story or an example for each.

1. Your startup must be well-planned — with a clear path to your goal. You should expect to have detours and road bumps along the way, but it all starts with a solid baseline understanding of your industry
2. Your startup should be well-funded — both through fundraising and bootstrapping. Without the capital to hire the right people, make the right business decisions, and fund your future goals, your startup won’t scale the way you want it to.
3. Your startup should have strong ties — to your networks, and key players in your industry. Don’t underestimate the importance of getting out there and making connections and partnerships to drive the business forward.
4. Your leadership should have high energy — your people need to have the drive and desire to follow through on goals for the business. This may include long hours with little reward, but a persistent spirit!
5. Your startup should be focused yet flexible — ideally you are not distracted by detours, able to keep your eye on the prize, and understand there can be multiple ways to reach the same desired end goal.

What are the most common mistakes you have seen CEOs & founders make when they start a business? What can be done to avoid those errors?

A common mistake early stage startups make is not having enough funding. I recommend founders to always raise more money than you think you’ll need to account for unexpected expenses and setbacks. It’s important to understand the cost-effectiveness and necessity of business expenses, including making sure to have a strong marketing and sales team for your business. Not having the right team can hinder success, while an excellent, trusted team can make the difference. Be sure to include financial, legal advisors, and a technical team as needed.

Startup founders often work extremely long hours and it’s easy to burn the candle at both ends. What would you recommend to founders about how to best take care of their physical and mental wellness when starting a company?

Taking care of mental and physical wellness is important, especially as early stage startups can really demand a large portion of your time. Go into business understanding that the time for yourself will be limited, and don’t have unrealistic expectations that it will change quickly. When I do have free time, I enjoy playing golf and traveling with my wife, playing guitar in a rock bank, and watching TV. Everyone needs a break once in a while!

You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. :-)

I would like to start a movement that would emphasize the following: “Understanding the Value of Common Ground” and “Realistic Expectations of Change”. It would show people that they can be happy and comfortable even though things aren’t exactly how they envision them. Through learning to understand that people will likely never achieve your vision of perfection, but by taking an individual as they are and trying to find some common ground, we can all be a lot happier. Happiness alleviates stress, promotes health & wellness, and a much nicer environment for us all to live in. I think I would call it: Understanding Reality through Changed Expectations.

We are blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch, and why? He or she might just see this if we tag them.

Richard Branson would be amazing to sit down with to discuss his incredible life and career. He has made so many amazing pivots in business and worked in so many different industries, so it would be really inspiring to meet with him and pick his brain.

How can our readers further follow your work online?

You can find out more about CannaTrac on our website: https://cannatrac.com/

And follow us on social media:

Facebook: https://www.facebook.com/CannaTrac/

Twitter: https://twitter.com/cannatractech

Vimeo: https://vimeo.com/user98013995

Instagram: https://www.instagram.com/cannacardrewards/

This was very inspiring. Thank you so much for the time you spent with this. We wish you continued success and good health!