This article was originally published by MonitorDaily in May 2024.
Reprinted with permission from the author.

 

Leadership in the equipment leasing industry, like many others, requires adaptability, continuous learning and a strong focus on collaboration. How can leaders leverage their experiences to optimize profitability and scalability and stay ahead? What does it take to lead a growing company and maintain peace of mind?

To gain deeper insights, I sat down with Bob Rinaldi, an equipment finance industry veteran. We discussed the power of curiosity, humility, collaboration and the critical questions for future readiness and peace of mind. Following is our interview condensed and rephrased for conciseness.

REUBEN: What are the highlights of your journey leading to what you do today?

RINALDI: I’ve had quite a journey since the 80s, when I started a small leasing company with my partners, Mike Rooney, Denny Hurt and my brother, Vince. We grew that company significantly, selling it to a community bank in Cincinnati. Under the bank’s ownership, we expanded it more than tenfold and eventually sold it to another bank, turning it into the fifth-largest bank-owned leasing company. After the 2008 financial crisis, the bank was taken over, and we were put in charge of their group, which eventually became PNC Equipment Finance.

After leaving that company, I spent a few years consulting and working with CSI Leasing. I helped them diversify, acquiring a municipal finance group. Later, I bought a small leasing company with Scott Hawkins, which we sold to another community bank after 15 months.

Following my stint at the bank, I transitioned into consulting. It started by chance, but soon became a full-time gig. I know I don’t know everything. I’d like to think I do. I do know a lot of things, but it doesn’t mean I’m an expert at any one thing. So, I brought in people I admired and trusted, like Harry Kaplan from Frost Bank, to build a team with deep expertise in various areas of the equipment leasing industry.

Our team covers everything from talent recruitment to credit analytics, bringing unparalleled resources to our clients. Today, we help equipment leasing companies profitably optimize their operations and achieve their strategic goals.

REUBEN: Why is curiosity important to you?

RINALDI: Curiosity has always been a driving force for me. Whether involvement in the equipment finance industry — I’ve been a student of this industry since I’ve been involved — or hobbies like smoking cigars and drinking bourbon, or my deep faith, I’m constantly seeking to learn everything I can. I have more questions than answers, and that insatiable curiosity pushes me to explore and understand things deeply.

This curiosity extends to my work with clients. At this stage in my career, I only want to work with people I enjoy and can form lifelong friendships with. It may sound corny, but it’s true. For instance, when I first started working with Mark Keepman and Spencer Thomas at KLC, I told them I wanted us to become lifelong friends. After we sold KLC to Gulf Coast Bank, Mark reminded me of that conversation, and it turned out we really did become close friends.

REUBEN: How do you foster genuine collaboration and humility?

RINALDI: Most of my clients share a common trait: humility. They recognize they don’t know everything and are willing to ask for help. This vulnerability isn’t a weakness; it’s a strength. It fosters genuine collaboration and long-term success, which is what I value most in my engagements. If someone thinks they have all the answers, there’s no reason for them to engage with us. But if they want to improve and avoid the mistakes we’ve already made, they’re making a smart move. We’ve made plenty of mistakes along the way, and learning from them has made us better. Avoiding those mistakes can help others get there faster and more efficiently.

That’s part of it. Another aspect is that my clients often resonate when I say, “I’ve been where you are.” You spend your days with your head down, buried under a never-ending list of tasks and to-dos. Time flies; before you know it, years have passed. If you never lift your head up, how can you be sure you’re heading in the right direction? Constantly playing whack-a-mole with problems leaves you without peace of mind or a good night’s sleep. Some might think everything they touch turns to gold, but that’s rarely the case. Most people need to step back and reassess to ensure they’re on the right path.

REUBEN: How do you help executives to be future ready?

RINALDI: I aim to step in before a major problem arises, ideally preventing it altogether. External factors will always be a challenge, but my role is to help clients stay ahead.

While they’re heads down focused on day-today tasks, I’m looking at the bigger picture, scanning the horizon for potential issues and opportunities. I provide a broader view, considering different paths and what it takes to achieve their goals. I’m very metrics-driven and financial statement-focused. I push clients to develop pro formas, essentially detailed business plans, forecasting where they’ll be in the next few years. This helps ensure they’re on the right track and ready for the future.

REUBEN: What are some power questions for future-ready executives?

RINALDI: I push executives to think deeply about where they are going with their business. We consider questions like:

  • If I continue doing what I’m doing today, what will my business look like in five years?
  • Is the future outcome aligned with my goals and aspirations?
  • Is all the effort I’m putting in now going to be worth it?
  • What changes do I need to make to achieve more from my business?
  • How do I make these changes, and what are the next steps?
  • If I want to eventually monetize my company, how do I ensure it will be worth something significant?

Numbers don’t lie. Planning and running the numbers provides clear pictures of whether your efforts will pay off. This helps you make informed decisions about the future direction of your business.

I guide many of my clients — especially independents — through exit strategy planning. It’s not just about planning to exit; it’s about becoming the most valuable you can be to multiple potential buyers, which increases your company’s value.

I also help banks looking to enter this space to diversify from heavy concentrations in commercial real estate. For both independents and banks, the questions remain the same: Where do you want to be in three to five years? What will your business look like after acquiring? Starting a new operation? Or integrating a team from another organization?

With emphasis on financial modeling, we project different scenarios and design strategies aligning with those projections. We help clients think critically about their future and make informed decisions.

REUBEN: What role does vulnerability play in future readiness?

RINALDI: Vulnerability plays a crucial role in leadership. It means acknowledging that you don’t know everything and being willing to seek help from those who know more. When clients pay for our services, it shows they recognize their need for assistance and are open to being vulnerable.

In my initial conversations with potential clients, I assess if they are the kind of people who are willing to be vulnerable and admit they don’t have all the answers. Those who are ready to explore new ways and learn from others are the ones I want to work with.

With exit strategy planning, it’s not just about preparing to sell; it’s about being ready for anything life throws at you. Preparedness ensures your business remains valuable and sellable, providing peace of mind. Like having an insurance policy — none of us live forever. Being prepared means your family or employees won’t be left with a mess if something happens to you. Readiness allows you to focus on your business without constant worry about the future.

Strategically consider all aspects, including technology changes and business succession. Do you want your family to inherit your business? Are you preparing to leave it in the best possible state for your employees? Asking the tough questions now helps you to be truly future-ready.

REUBEN: What is something leaders can do today to shape a better future?

RINALDI: I don’t claim to be the perfect leader, but one thing leaders can do now is to lift your head up. Take stock of your accomplishments. Acknowledge what was achieved through luck, sheer hard work and determination. Recognize that neither luck nor hard work alone always ensures success. Be grateful for what you have. This helps you appreciate the support from your team, family and even higher powers if you believe in them. Gratitude is a solid foundation for planning what’s next and moving forward with a clear and humble mindset. •

Bob Rinaldi, CLFP is president of Rinaldi Advisory Services, a forward-thinking, innovative finance executive and lifelong entrepreneur with a sizable history of success in banking and commercial equipment finance. He is a strategic growth advisor to companies in or entering the equipment finance market. Learn more at rinaldiadvisory.com.

Deborah Reuben, CLFP, is CEO and founder of TomorrowZone, an innovative consulting firm bringing forward-thinking insights and original ideas to help companies explore the art of the possible, and design roadmaps for the future. She holds many industry leadership positions and authored The Certified Lease & Finance Professionals’ Handbook 6th-9th editions. Learn more at tomorrowzone.io.