Today we’d like to introduce you to Brian Hayduk.
Brian, let’s start with your story. We’d love to hear how you got started and how the journey has been so far.
Coming out of Lehigh University in the early 1990s and growing up near New York, I thought I wanted to be a Wall Street banker. A law-abiding version of Bud Fox or Gordon Gekko would have been fine. I didn’t get a job on Wall Street but did get a position at a bank. I spent my first day listening to my fellow workers making collection calls to people who were sold severely overpriced debt consolidation loans. I quit on the commute home.
Through my next couple of jobs in the electricity utility industry, I found my passion in the energy industry. Fast forward through a masters in Environmental Science and a few years spent doing environmental consulting in DC. Then in 1997, the first states began deregulating their electricity utilities. This was a multi-billion dollar industry that interested me and seemed much more hands-on than consulting. I quit my job in DC and moved back to New York as New York was one of the states testing the deregulation waters. I applied for a trading job at an electricity supplier (i.e., the company you can switch your electricity to in deregulated markets) start-ups but was offered a sales job instead.
I ended spending 9 years with that company, today’s Constellation Energy, and its subsequent owners. We went into every deregulated state, and even a few countries, as they opened up. We made every mistake possible but survived and l learned an enormous amount along the way about how energy markets work, commodity risk management, and business generally. We grew that business into the largest deregulated energy company in North America with revenues over $5B. And the owners were foolish enough to give me responsibility for about half of that business.
After a start-up I was a partner in, that was tied to the hip of Lehman Brothers, had to be wound down in late 2008, I ended up moving with my wife (a Texan) and two small kids to TX to lead a large electricity supplier in Texas called First Choice Power. Another great experience and a fantastic group of people. We sold that business to the parent company at the end of 2011, It was at that point we developed the business plan for 5.
The energy market had developed where most commercial and industrial businesses were buying their energy through consultants or brokers and not directly from suppliers.
Similar to commercial insurance brokers, but for energy. We had worked with almost all of these brokers/consultants from our days as suppliers and we felt there was a huge value gap in the depth of their analysis and ultimately the quality of the advice and services they were providing. Because there is virtually no regulation of the energy broker/consultant industry, there was a tremendous range of ethics, analytics, experience and ultimately advice. We thought people deserved much better so we started 5. Myself and 4 other partners formed 5 in late 2011 and we were off and running to change the energy advisory industry.
We’re always bombarded by how great it is to pursue your passion, etc – but we’ve spoken with enough people to know that it’s not always easy. Overall, would you say things have been easy for you?
In a way, this was really my third time in a start-up environment and it has been by far the easiest. This is probably due to a combination of incredible partners and initial employees as well as a better business plan and more experience. Of course, the road is never smooth. Our first speed bump came pretty quick. We started the business in a partner’s house. As the business grew and the neighbors watched us hauling desks and chairs into the house we were politely asked by the HOA to leave! We quickly had to find a real office.
Another struggle was our sales model changed very quickly from an indirect model to a more direct model (aka more full-time employees) which immediately created a capital issue we had to overcome. We have also had some people misses which has caused us to go from pushing hard in certain markets around the U.S., to have to back off periodically. The cliche that it’s all about the people and your ability to attract the best and brightest remains true in any business I have been in.
We’d love to hear more about your business.
Our business is a professional advisory service, like lawyers, accountants, or financial advisors. But in our case, organizations across North America outsource the buying and managing of energy to us. We help manage costs and risks associated with what can be very volatile energy spend. We are agnostic to the source of power for our clients so we have helped with everything from traditional electricity supplier purchases to roof-top solar to on-site diesel generation to long-term utility-scale renewable purchases. We serve a range of clients including Fortune 100 corporations, quick-serve restaurant chains, cities and schools, and large manufacturers.
What sets us apart is quite simply the depth of analysis we are capable of combined with more experience than we are willing to admit. Our team includes commodity traders, energy engineers, data scientists, and attorneys. That combination allows us to create value and find solutions that others simply can not. A large energy user has an almost limitless set of options and technology to choose from and that world is constantly changing. They need an experienced team to get the best return on their energy dollars spent.
The thing I am most proud of is the balance we are achieving between culture and growth. We have been lucky enough to receive awards for growth (back to back Inc 5000 recipients) as well as Best Place to Work awards in Texas (top 10 the last 3 years) and nationally by Fortune and Inc. Magazine. We set out to create an organization that was not only going to provide best in class energy advisory service to clients but also a culture where people loved coming to work and where we had the ability to create the next generation of business leaders. The awards are some small validation that we remain true to our initial goals and on the right track.
What were you like growing up?
I grew up in a very small town at the end of Long Island, NY called Montauk. I think my 8th-grade graduating class was 26 kids. Given that size, you were forced to be part of every sports team and activity. A far cry from what my kids in the Lewisville school district go through. I think being involved in all those activities from plays to sports teams at an early age pushed us outside our comfort zones and created a confidence with new situations.
I also did not come from much money so began working at a very early age that has taught me many valuable lessons about hard work and how to treat people that I still use today. My addiction for pizza comes from years working in a restaurant making and “sampling” thousands. Finally, growing up surrounded by the ocean cemented my love for the beach and the water. Luckily my family is happy to tag along when I need my fix.
Contact Info:
- Address: 4545 Fuller Dr., Ste 412 Irving, TX 75038
- Website: www.energyby5.com
- Phone: 972-445-9584
- Email: email5@energyby5.com
- Instagram: www.instagram.com/energyby5/
- Facebook: www.facebook.com/energyby5
- Other: www.linkedin.com/company/energyby5/
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