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Sometimes as business owners, we think that our ads aren't working and we stop spending money on Facebook or Google because we don't think the ads work.
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But in reality, if you could just make the customer worth two, three, four times more, spending money on ads would not be the problem.
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Today, I'm doing a one-on-one coaching call with a pressure washing, window cleaning, and gutter cleaning business that really has to figure out how to make continuity offers to be able to continually sell customers every single year of what is usually a one-time service.
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We're going to figure out how to use that to increase the lifetime value of the customer,
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fix their sales process and then be able to pour money again on hiring expansion and advertising because in the past he tried that but had to retreat back to being a solo operator next time he grows we're gonna do it right by increasing the lifetime value of the customer from a couple thousand dollars to five six or seven thousand dollars let's go ahead and roll the coaching call
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Basically, since August 2025, I've been solo.
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In the past, I've had a team of six people, like office admin, estimator, four technicians.
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But I think we grew too fast and without a stronger foundation.
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So I decided to scale down and build things with a stronger foundation this time around.
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So basically been doing everything myself since then.
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And I do have like a new VA starting this coming Monday to start taking care of admin.
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Basically, we have one active truck, which is only me.
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And we're doing about six to eight K a week.
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We have a close ratio of about 35 percent at the moment.
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We have a.
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Something I want to work out with you here is like the continuity or like service plans.
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We've tried to implement them in the past, but we only have two customers like on a recurring payment.
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The goals that I have for this year is basically finish with a team of three people plus me.
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So four people.
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So one person.
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one truck, one tech.
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I have like actually one truck, Edo here in the shop.
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And I also like finish the year as a GM, like managing the team and have at least like 50 active service plans.
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Basically my first question, it's related to the admin side of things.
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As you say, it's delegate admin, then delegate operations, and then delegate sales.
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So I have the admin coming on
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But the way we do sales is so like remotely or over the phone, like 80% or 90%.
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If it's like in the local area and it's a good job, I would go and do the in-person estimate.
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But I'm a bit confused in that way because like as I see it, pretty much most of the sales are part of kind of admin.
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What is your point of view on this?
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Yeah, 100%.
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Like if you can do over the phone or instant quotes, the whole objective is to simplify sales so much to the point where it's actually not even a role.
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And so that's a huge win.
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I talk about in the book because so many people do in-person estimates and that's the part I'm really talking about.
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But yeah, like for us, for example, like we don't do in-person estimates hardly at all.
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We do instant quotes and over the phone estimates, right?
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So you're on track there.
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I think it's more a matter of
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operations being the next thing that you would delegate, obviously.
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And then when you get a general manager, they're going to have to know enough about sales to know the numbers of like balancing operations and incoming leads.
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So like balancing capacity of how many team members and trucks do I have versus, you know, inbound over the phone estimates are being sold by your admin person.
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Okay.
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So pretty much the way that I'm thinking to delegate the sales is just like the first month, just get her to draft the quotes, send me like a WhatsApp text, say, here is what I think this quote costs.
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Yes, no, send it through and then like get her to follow up.
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So pretty much simplifying the sales process.
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Is that how I should do it?
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Yeah, you could start off as however you check everything.
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But I would personally, and you could even set up an automation, like when an estimate goes draft, it texts you and tells you like you'd set up on automations.
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I would try very hard to push to where you don't have to review them.
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And then you can even make it where it's like, for example, after the first service, you have the ability to change price if needs be.
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So if someone's way off over the phone, you can always correct it.
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So I would try to get off of that mode as quickly as possible.
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But yeah, to get started, if you have doubts about like their ability to accurately estimate, then yeah, you could definitely review them.
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Yeah, no, definitely, definitely.
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And I have done it in the past.
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I had a VA doing that up until November.
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Had to let him go because drop performance and maybe just one out of 10 jobs would be like under price.
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Yeah, most of the time too, if over the phone, they just say, hey, look, like after the first service, if we need to change pricing, we'll let you know.
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Like one out of 10, if it's that low, like I would just let the VA run.
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And then if a job is way over, you just know that we'll correct it afterwards.
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Because otherwise, if you just start becoming the bottleneck still, you're still the bottleneck if all the estimates don't have to be checked by you.
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So I want you to get away from that as fast as possible.
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No, that's great, man.
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My second main thing here is the P4P.
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I've been like, I've listened to the Audi book.
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I gone through some of the videos of the, of the P4P university.
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Um, I moved on to, to homeworks and it's kind of started tracking like budgeted hours.
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And I want to kind of do it the right way, not the simple way, do it the right way.
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But something that confuses me a little bit is like the labor revenue, because we're like window cleaning, pressure washing business.
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We don't have much other than chemicals and a few tools like blades for squid and stuff like that to buy.
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So what do you think or how do I calculate the labor revenue?
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Or could I say like, OK, set up about like, oh, no, 70 percent of the total revenue is what labor revenue is.
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I would just consider all of it revenue, unless you have certain jobs where it is 30% and some jobs where it's 2%.
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But I would personally just consider all of it revenue unless you have actual materials, actual supplies going to the job.
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Most of it for the sake of simplicity.
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So the crew can just see the number, divide it in their head, they know what they're getting paid.
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It's like, yeah, it's like 70%, and then you get a percentage of that money.
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Like, I would just, like, same thing for mowing.
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Like, we have blades, we have fuel, we have all these other things that go into it.
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But I just consider all of the revenue revenue
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labor revenue.
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Because you say, for example, in your case, you give them like 33% of the labor revenue, but if I was to give like 33% of the revenue to, how do you say this, to the P4PI, I would think it's too much.
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So would you say setting that bar at a max of like 22 to 25%?
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Yeah.
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Yeah, we start at 33, but as we go into profit mode, we bring that number down to usually closer to that 20 to 25%.
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And then as you do like more like treatments, for example, with lawn care, we run down to 15%.
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So if you know that, hey, 20 to 22%, I can be easily getting them above base pay, then it's really a matter of what percentage you need to pay to get them consistently above base pay.
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And a good measure of that is like looking at how much you paid last year in wages compared to your total revenue.
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And that's a good benchmark of like, oh, I need to pay them at least 20% or 22% to get them at least to base pay.
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Do you have anything to add in there in relation to implementing the P4P system?
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But the way I'm thinking about it, it's just like continue to track my budgeted hours.
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Obviously like the people that I hire, which I'm planning for in like one, two months, it's not going to be as fast as me, but,
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but I think we have a good hourly rate.
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And like we were charging about a 20, 220 to 275 per hour.
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Um, like, uh, like the, like the hourly rate for a technician that I'm thinking is like all up with like all burdens, like about 35 per hour.
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Is that, is that 220 per, per person per hour or per crew too?
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Per person.
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So the way I'm thinking is running one man, one truck.
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So that's how I've been running.
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Like I've kind of been improving the system myself for the last six months.
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And I think it's more simple and will allow for like better remuneration to the technician as well.
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Yeah, so 20% to 22% will be just fine then on P4P.
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I think they won't be as fast as you, but I think even still, given $35 is what you're paying them on base traditionally, and you're making $2.20 an hour, you should be able to pay them about 20% to 22% and then still make $40 or so an hour, because you want that difference between base pay and P4P to be significant.
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There's like, we're going pretty quick over this, you know, it's everything pretty simple.
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The off season, man, is what's killed me before, you know, like when I had a team, we would just like, like when I, when I had two trucks out and the four guys, we would do like in a summer weeks of 18, 20, 22K.
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But then comes April, April to July, we would just like a smoke through those profits as an event, spend the money that we set aside for like GST and taxes.
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Therefore creating like even more debt.
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And I run that cycle for like two years until I said last year, like, Carol, I'm going to
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go back to solo and build it all again.
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So I listened to the book, the off season, yet to read it, I think it's better to read it, but yeah, that brings me here to the service plans.
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Have you ever worked with other pressure washing business?
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Because I think like the service plans kind of thing is a bit different when it comes to this type of service to the service you offer.
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Yep, for sure.
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Yeah.
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Well, I talked to a couple actually last week about they do gutters, they do pressure washing, they do soft wash on the houses.
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But like, it's really a function of how do you take one-time jobs and turn it into recurring revenue?
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And so creating the sales process for both when you're initially giving the job estimate for the one-time job, you're already pitching the ongoing service.
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But then especially once the job is done and they just paid you $1,000, that's what
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I'm definitely going to be trying to get them onto an annual or biannual six month plan at $300.
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It's just such an easy drop sell because they just paid you a thousand.
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So it's like about 50% cheaper.
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Is that what you would recommend?
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Like how much cheaper in comparison to the first one soft job?
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Just so it's like a no brainer for them.
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There's a few things that go into it.
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First off, how often do you usually need to do pressure washing?
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Is that every three years, two years?
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Yeah, around one, yeah, two years.
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Some people call us every year, but yeah.
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Yeah, so what's cool about pressure washing is people assume you gotta kinda do it every season, because it's like once a year thing.
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So if you sell it for a thousand, there's no reason why you can't say, hey, if you sign up for our annual plan and we'll be back here the same time next year, it's gonna be 500 bucks.
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but you gotta sign up for this plan and you pay now, like for next year.
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That will crush, mostly because what you're trying to do is you're trying to increase the annual, not the annual customer value, but the lifetime value of the customer because they actually, you lock in that second visit.
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The big question becomes what percentage of your current one-time customers end up calling you again a year from now?
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And if that's 20%, if we can get that to 80%, we double the business, right?
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And more importantly, you get revenue that's recurring, even if it's annual or biannual, versus always going from one job to the next to the next.
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And then taking those recurring customers and moving them to your slower seasons, right?
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All right, let me stop here.
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This is a really important point.
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And I think that the majority of home service businesses are not good businesses to be in because of this problem.
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We have an off season that you have three, four months of the year where your revenue drops off a cliff, leads drop off a cliff.
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And if you have that problem, I've created a free workshop down in the description of this video, there's a link to it.
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And it's gonna walk you through the five ways to solve the off season.
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One of which is just changing the way you do your scheduling.
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Like we're talking about here, pushing demand forward,
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pulling demand forward into your off season.
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So you don't have this collapse of revenue and leads and profit during an off season.
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So the number one thing that most home service businesses be focused on is solving the off season.
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And that's why I created the workshop.
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It's completely free.
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Look in the description, click the link and we'll see you there.
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So it like, it should be contingent to like that, like the slow seasons, right?
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Like to the May to July, cause like the mental mental block I have sometimes towards like service plans is like, Oh, what if then we have to book a visit when a, it is like summertime and we're spending two to three hours on this job and really not getting like when, when we, if we book one of the ones of jobs that come like
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nothing in this season, we make $1,000 and we're like giving away that slot, you know what I mean?
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So I feel like we're losing opportunity just for that.
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First off, I wouldn't feel that way because the quality of the revenue is better.
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And so when you have recurring revenue, the quality of it's so much better, both from enterprise value perspective, the business being able to have systems and run without you, being able to be consistent on paid for performance.
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So like, I always want recurring revenue.
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So the quality of the revenue is increasing.
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So I'm okay having a little bit of a margin hit.
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That would be the first thing.
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So I wouldn't feel that way as badly.
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Secondly, I would just make it very clear to them, like, hey, we're going to give you a week heads up before we show up.
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But this happens once a year.
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But if right now they just sign up with you in May, next year, you're going to do that in July.
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So you can move your recurring slowly to where they all are happening in the offseason.
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So everyone like in, for example, March, April, May, that signs up on an annual, I'm going to be doing them in June and July next year.
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And everyone that signed up for my service in August, September, October, I'm going to be doing them in June and July.
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Like, I'm going to push those in towards my off season.
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So how I was actually working it out before is we would sell them like three to four visits a year plan where we're doing like all the services like gutter cleaning, pressure washing, window cleaning.
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And then just divide that total by 12 to charge it monthly and give like a 15% discount in the total, right?
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The way you're suggesting it is just like, just book the service this time again for next year at a cheaper price.
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Am I right?
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How many people do you convert on the monthly subscription if you bundle everything together?
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We haven't really pushed it that much.
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Like, to be honest, we haven't really pushed that much, but we have two customers on that.
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Yeah, the easiest upsell is for the thing that people just bought.
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Because if you're bundling everything together in a subscription, the challenging part becomes you now have to convince them they need the other three services in the bundle.
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I would rather just say, you just paid me $1,000.
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Why don't we make that $500?
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So I would first lean into that.
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And then what I would do is grease the gears of upselling the other three services when you know they're needed.
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Okay.
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Right?
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So like, if you send a text blast when you know gutters are needing to be cleaned out, you'll get all the people on gutters.
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Instead of having to try to convince them any gutter clean out eight months prior when you did the pressure washing and their pressure washing is on their mind.
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I present dessert after dinner, right?
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I don't be like, all right guys, welcome to our, today we have this great dessert.
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No, I'm gonna show you your appetizers after the drinks.
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Then I'm gonna show you entrees.
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Then I'll show you the desserts.
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And so the same way that there's like four sections of a dinner, you wanna look at the four services you currently offer and say, when am I pitching them throughout the four quarters of the year?
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And I know that for every single time I do any of these services, I'm just trying to sell them the same service next year at a discount.
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But now that they're on my service, I'm going to upsell them into other three over time.
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Yeah, yeah.
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No, it makes sense.
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It makes sense.
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Like, slowly, slowly start to get them from every service rather than just, like, sign up to this.
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And I think I heard you say that on similar calls, but I couldn't, like, figure it out or really understand how you meant it.
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Given my goal for the next 12 months, what do you think I should be focusing on and avoid doing?
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Do you have any paid ads right now, Antonio?
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No, so last year I was focusing a lot of doing paid ads.
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like I've been doing courses.
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I know how to run Google Ads, not Facebook Ads.
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And we would do a right, you know, we'll get like a four to one return.
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If I look at all the data, I'm getting, let's say I'm spending $3,000 to $4,000 on pay ads, and I'm getting about five to seven leads a week out of that, so expensive leads.
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But then with SEO, I'm getting double or triple the leads, basically for free.
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And the quality of the lead sometimes with SEO is even better as well.
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I started to think like what Hermosi says, like more better new.
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So I'm focusing on new instead of doing more.
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of what's already working.
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How do I do more of like SEO?
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So I stopped running ads and we still make the, still making the same revenue a week, even though we're not running that.
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So I think I'm gonna run ads again when the time comes and I have the two trucks out, but I don't see the value of running ads at the moment.
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Yeah, the trouble with SEO is it's not really something you can pour gasoline on.
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It's like, okay, I can't double my SEO budget.
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It's not going to help you.
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Like, if you doubled your SEO budget, if you're paying somebody to do SEO, for example, you're not going to get twice as many ads.
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And so SEO is a function of brand authority online, as well as just brand overall, like reputational referrals, people seeing your trucks, et cetera.
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And so, you know, getting great reviews, being on Google business profile, like address verified, a lot of that will come down to SEO.
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really moving the needle.
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If you're spending thousands of dollars a week and you're only getting a few leads, like your paid ad strategy, Google Ads should be able to produce way better returns than, you know, four or $500 a lead.
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Like that's insane.
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I would definitely consider like using Upwork for a professional that does...
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Google ads, cause like for your service, you should not be paying anywhere close to that for a lead.
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I was getting leads about a hundred to $120 when it comes to, when it came to pressure washing, when it came to window cleaning, I was getting leads for like a 50 to $60.
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But then I was just like, if I booked a day with window cleaning, I would maybe make $1,600.
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When if I booked a day for pressure washing, I made, I would make $2,200.
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So I'm like, if I need to focus on either one, cause like window cleaning is bringing a lot, but then it's messing up the capacity, if that makes sense.
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I would say if you can get leads for that cheap, it's not a function then of do your leads work?
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It's a function of can we make it more worth it by increasing the lifetime value of the customer?
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Cause if you're putting in 150 for a lead, let's just say 50%, that's per lead, right?
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Is that cost per lead?
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Yeah, cost per lead, cost per conversion.
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So customer acquisition cost is probably like 200 or 300 bucks.
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So I understand the apprehension to spend 200 or 300 dollars and then make 15 or 100 or 2 grand.
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I understand that as a big chunk.
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But if I can make that customer worth six or seven grand because I keep them on average for three to four years and I do multiple service and I upsell them three other things.
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Now I can make sense of spending that money.
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I think that your actually, your paid strategy is actually doing pretty well on a cost per lead basis.
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I'd be trying to increase my close ratio with better sales processes, like over the phone, better automation, stuff like that.
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I think you get a 35% to maybe 45 or 50% pretty easy by just really refining the sales process.
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If you do that and you then take the $2,000 customer, make them $8,000 because you sell them three other things throughout the year and you keep them for three years, that makes a lot of sense.
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Like now you're not a one to four, you're a one to 10 or one to 12.
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And would you say like right now that I'm on my own, if it were to run ads with that big budget that I was putting like $3,000 a month or just like put like a...
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a more conservative budget of, let's say, like a thousand, thousand, 500, just to start building that funnel again.
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Do you have so much work, like when you're solo, are you filled up completely?
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Yes, I work four days a week.
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If we reach the revenue goal for each day, we're making about 8,800 a week, which is more than enough for the cost that we have right now.
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So that's what I do.
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If you turn on ads, would you be overbooked?
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If I run ads, I'm gonna still make the same 8,000 because I'm living one day just so I can work on the things of the business, train the people.
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Yes, you're at capacity, right?
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Like you can't turn on ads because doing so doesn't allow you to increase the amount of work that gets output.
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You're at capacity.
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And so I think determining how much revenue you can do by yourself, you're basically there now.
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$8,000 a week, you're already doing that.
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If you were to hire someone though, can we now do $15,000 per week?
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And if so, we have now capacity to backfill with more work and then you turn on your paid ads.
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So then it just comes down to how much capital
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You have because now you're going to go hire someone, so more overhead, and you're going to be spending money on ads, but it could double the business.
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So that's what I'm waiting to do as well because, like I said, as soon as I hire someone, this person is trained and completely delegated with truck one.
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I can start taking care of truck two three to four days a week.
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When that's a stable, I might have to run out just to bring more like demand on the strokes.
265
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I just like there's things that I haven't done, like text blast or like email blast or like door knocking, like five runs on the jobs, which is things that I think would bring like cheap leads, basically.
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Yeah, like until I do all of those things, I'm never going to spend money on ads, right?
267
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Like if I'm not doing follow up phone calls on every pending estimate, if I'm not sending out mass email, mass text to my existing database, if you haven't already created monthly emails and texts for all your existing database, then I don't spend a dollar in ads.
268
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But if I've done all those things that I've honed in my sales process, then I go to the ads and I turn on the faucet.
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But first I need you to fix all the leaks in the sales process and do the things that are free.
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Like email all your customers and tell them, hey, I have this other thing that you could also buy.
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Another thing I wanted to ask you is like, as I bring the team in, you know, something that I am...
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not the best is how do I become like a better coach or a better educator, you know, because like when you're in the cleaning business, you realize that you're not really in the cleaning business, but in the recruiting and training business.
273
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Right.
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So that's been on my mind lately.
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What are some tips that you can give me?
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So I became like a better coach for the people that come in.
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The main thing is when it comes to retention is most people are going to leave your business not because of the work, not because of the money you pay them but because of you as the manager.
278
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Most people quit their manager, they don't quit their job.
279
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And it's evidenced by the fact that usually they will go get a job in the same industry.
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So it's usually the manager they're working for.
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Do you have to be competitive in pay?
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Yes.
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But a lot of times pay, compensation, benefits, et cetera, gets people in the door.
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What keeps them is you as a great manager.
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And so having one-on-ones is probably the biggest flaw I see people not do.
286
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And it's on a monthly basis.
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You're asking them like...
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What are your goals personally?
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What are your goals professionally?
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How can I help you get to these things?
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How can I, like, what tools and support can I give you to make sure you're successful?
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Those are the type of conversations most people don't have.
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Like, one thing I was talking with my manager, one of my managers earlier today was, is opening up like a one-on-one, sometimes awkward.
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And so to do that, you just play like what's called the Buffalo game.
295
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It's like so high, low Buffalo.
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It's like, tell me about a recent high, tell me about a recent low, and then tell me about something that I don't know about you.
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And then you flip it on yourself.
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I'm going to tell you something that personally is a big win recently.
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Then I'm going to tell you about something low, something I'm kind of going through right now.
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And I'm going to tell you something you don't know about me.
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And if you do that, you now have six data points to talk about.
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So they just shared a high and a low and something you don't know about them.
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And then you're going to share something that you're going through that's tough, a high, as well as something they don't know about you.
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Now these are six points that throughout the rest of the month, outside of that one-on-one, you can connect with them.
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Instead of just like giving a fist bump in the morning, you're like, hey, how's your mom doing?
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I know you said she was in the hospital.
307
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That was one of your lows.
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And so having that personal connection and then having the one-on-one to be able to guide them towards their goals professionally and personally is really the unlock for retention typically.
309
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Great, great.
310
00:25:13.568 --> 00:25:16.310
So create a more like of a personal connection.
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When you hire your first guy, your very first guy, I know that you mentioned one of them was your friend and he's no longer your friend.
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He probably left.
313
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But after that, sometimes I thought, because like when I'm training a guy, this guy is just like next to me all day in the car, you know, while we're going doing the route.
314
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Was it the same for you when you're training the first person or you just, we just like hire, train them for a week and send them on their own?
315
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It just really depends on whether or not you have the capacity to get another vehicle, right?
316
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And if you have the leads to keep them busy.
317
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And if they have the skills to be able to do it without your constant supervision.
318
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And so, you know, assuming that you hiring one more person allows you to go from 8,000 a week to, let's call it 12 or 13, maybe 14.
319
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Cool.
320
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And if they got in their own truck, maybe it gets you to 15 or 16 because you double output.
321
00:26:08.251 --> 00:26:19.007
So it really comes down to whether or not you have the capital available to be able to increase capacity by buying the other truck instead of them just riding alongside you as a variable expense in the form of wages.
322
00:26:19.148 --> 00:26:23.554
So I do have a truck here, because I've had the two teams in the past.
323
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Yeah, so I would then drive their comp to, hey, you're going to be with me for however long is required to be able to do these tasks and complete this number of jobs.
324
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After that, you have the ability to move into your own truck and make more.
325
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My comp, I'm going to tie it to it for them.
326
00:26:40.451 --> 00:26:47.373
But you have to first do all these tasks, two specification, this number of jobs of each of these things, and then you have the ability to go out on your own, for example.
327
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And I would just tie that to comp.
328
00:26:50.234 --> 00:27:03.160
Another thing here I wanted to talk to you if we had time is about the vision kinds of kind of things, you know, and in my past coaching program, something they will teach us is like, you've got to sell the vision, right?
329
00:27:04.480 --> 00:27:10.343
But like sometimes I see like the career ladder could be limited in a business like this, like, yes, you know.
330
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are like a junior technician, become a lead technician on your own, run your own truck, then you might become a manager, but that's it.
331
00:27:18.925 --> 00:27:23.766
So I've been really inspired by what you do with the franchise side of things.
332
00:27:23.806 --> 00:27:31.988
And I know that it's maybe too early to talk about franchise, but it's something that I wanted to talk to you before like really creating my vision again.
333
00:27:33.088 --> 00:27:57.414
uh because you say like franchises franchising is a complete different business but i would like some thoughts that i had is like okay what if we can sell the the division or the dream that like okay you can own your own franchise uh like you come here as a junior technician you in two three years you can own your own franchise or what i heard in one of your recent podcasts with the
334
00:28:02.995 --> 00:28:06.000
I was like, how could I give these guys a better opportunity here?
335
00:28:06.541 --> 00:28:10.367
So like, I could just make them a minority partner in their own location.
336
00:28:10.908 --> 00:28:14.694
And so I did that for my second location and it went really, really well.
337
00:28:14.734 --> 00:28:14.995
I'm like...
338
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kind of sell that dream just so they don't think like, oh, I'm going to be an employee forever.
339
00:28:20.177 --> 00:28:27.061
Some people might be like that, but in this age of the internet, everyone kind of want to have their own business.
340
00:28:27.101 --> 00:28:38.207
So what do you, would you say like is like the most viable path just to expand that career ladder and get people really bought into the business?
341
00:28:39.006 --> 00:28:42.628
The most viable is honestly just to grow a bigger business, right?
342
00:28:42.648 --> 00:29:00.815
Because if you had, you know, 20 technicians, three or four people doing sales on the phone, a bunch of admin people, crew leaders, specific departments and department heads for each of the services that you do, you have specific people just doing upselling and into the continuity program.
343
00:29:00.835 --> 00:29:07.778
Like that's going to be the easiest and probably the simplest way to create a career path for technicians.
344
00:29:09.202 --> 00:29:14.604
Now, if you're starting to like if I want to do franchising or give equity, like it becomes a very, very different game.
345
00:29:15.365 --> 00:29:18.966
And so, for example, with Jonas, with the pest control, he gives percentage.
346
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And, you know, afterwards, I told him, you got to get out of that.
347
00:29:22.828 --> 00:29:25.649
Like, that's the worst legal setup in the world.
348
00:29:26.169 --> 00:29:28.170
And Alex Ramozzi told him the exact same thing.
349
00:29:28.310 --> 00:29:33.192
Like he has it's horrible to own have 30 percent with a whole bunch of people.
350
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Your liability is just through the roof.
351
00:29:35.293 --> 00:29:40.717
I would strongly recommend that if your goal is, okay, I just want to create a ladder for people, just build a bigger business.
352
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Build a bigger business.
353
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And if you build a bigger business, it's super profitable.
354
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The doors open up.
355
00:29:46.261 --> 00:29:48.363
All of a sudden, franchising is a viable option.
356
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If you have a $3 million company that does a million dollars in profit and you've figured out how to do all the continuity and the upsells and you have the website, there's opportunity down the road.
357
00:29:57.650 --> 00:29:59.331
But first, build a great business.
358
00:30:00.632 --> 00:30:04.535
What made you decide franchising is what I'm doing?
359
00:30:05.355 --> 00:30:09.198
Because the goal wasn't, the goal didn't start as like, I need continuity for my team.
360
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The goal started as I wanted to change the level of professionalism in the industry and no one would listen to me unless I competed with them.
361
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And so I needed to figure out how to maximize how many people I competed with.
362
00:30:19.485 --> 00:30:20.565
So like a very different goal.
363
00:30:20.726 --> 00:30:34.355
And so like, if your goal is that, like, then yes, maybe franchising is in the cards, but like if it's to make more money or is to just give continuity for your team to move up, the fastest way to do this is build a bigger business that has levels of management and hierarchy they can move up into.
364
00:30:35.658 --> 00:30:36.378
Yeah, definitely.
365
00:30:36.858 --> 00:30:41.660
So my, my, the goal that I, like, I started the business, uh, six years ago already.
366
00:30:42.340 --> 00:30:47.882
And I kind of say to, uh, when I hire guys, like I started this business because I wanted to make money.
367
00:30:48.202 --> 00:30:59.485
And then I realized what it takes, like for a business, you have to be, uh, have a vision, but like, I want to bring you into the team to ultimately share that same goal, make money, you know, and have some, some freedom.
368
00:30:59.665 --> 00:31:08.556
Yeah, like I think you could always have sessions talking about financial freedom, credit, buying houses, educating them on financial things.
369
00:31:09.357 --> 00:31:15.884
But if you actually want to create a path for them where they can make more money in your business, many times that is you grow a bigger business.
370
00:31:16.686 --> 00:31:17.506
No, that's great, man.
371
00:31:17.546 --> 00:31:21.068
I think I've talked about everything I had in mind.
372
00:31:21.088 --> 00:31:22.488
I appreciate the time.
373
00:31:22.508 --> 00:31:23.628
I appreciate the advice.
374
00:31:25.469 --> 00:31:29.130
And, you know, we'll make sure that we take action, you know.
375
00:31:29.631 --> 00:31:33.472
I was on the fence of booking this call for like a few weeks.
376
00:31:34.672 --> 00:31:44.736
But I then listened to one of the latest Hormosi videos where he's like, if you see somebody that has already done it, just pay it and increase your knowledge.
377
00:31:45.627 --> 00:31:46.128
Well, yeah, man.
378
00:31:46.168 --> 00:31:47.030
Best of luck this year.
379
00:31:47.130 --> 00:31:54.247
I think there's just a few tweaks away on the sales and then the continuity side of things, and then making sense of still being able to run the ads.
380
00:31:54.768 --> 00:31:57.855
And then it's a function of just hiring, management, leadership.
381
00:31:58.136 --> 00:32:00.501
And those are skills that in part come with reps too.
382
00:32:00.601 --> 00:32:02.145
So I wish you all the best.
383
00:32:02.906 --> 00:32:03.869
Thank you so much, man.
384
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Have a great rest of your day and catch you around.
385
00:32:06.635 --> 00:32:07.036
Thanks, brother.
386
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Take care.
387
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See ya.
388
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Thank you.
389
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Bye.
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Sometimes as business owners, we think that our ads aren't working and we stop spending money on Facebook or Google because we don't think the ads work.
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But in reality, if you could just make the customer worth two, three, four times more, spending money on ads would not be the problem.
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Today, I'm doing a one-on-one coaching call with a pressure washing, window cleaning, and gutter cleaning business that really has to figure out how to make continuity offers to be able to continually sell customers every single year of what is usually a one-time service.
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We're going to figure out how to use that to increase the lifetime value of the customer,
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fix their sales process and then be able to pour money again on hiring expansion and advertising because in the past he tried that but had to retreat back to being a solo operator next time he grows we're gonna do it right by increasing the lifetime value of the customer from a couple thousand dollars to five six or seven thousand dollars let's go ahead and roll the coaching call
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Basically, since August 2025, I've been solo.
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In the past, I've had a team of six people, like office admin, estimator, four technicians.
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But I think we grew too fast and without a stronger foundation.
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So I decided to scale down and build things with a stronger foundation this time around.
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So basically been doing everything myself since then.
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And I do have like a new VA starting this coming Monday to start taking care of admin.
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Basically, we have one active truck, which is only me.
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And we're doing about six to eight K a week.
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We have a close ratio of about 35 percent at the moment.
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We have a.
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Something I want to work out with you here is like the continuity or like service plans.
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We've tried to implement them in the past, but we only have two customers like on a recurring payment.
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The goals that I have for this year is basically finish with a team of three people plus me.
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So four people.
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So one person.
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one truck, one tech.
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I have like actually one truck, Edo here in the shop.
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And I also like finish the year as a GM, like managing the team and have at least like 50 active service plans.
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Basically my first question, it's related to the admin side of things.
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As you say, it's delegate admin, then delegate operations, and then delegate sales.
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So I have the admin coming on
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But the way we do sales is so like remotely or over the phone, like 80% or 90%.
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If it's like in the local area and it's a good job, I would go and do the in-person estimate.
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But I'm a bit confused in that way because like as I see it, pretty much most of the sales are part of kind of admin.
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What is your point of view on this?
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Yeah, 100%.
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Like if you can do over the phone or instant quotes, the whole objective is to simplify sales so much to the point where it's actually not even a role.
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And so that's a huge win.
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I talk about in the book because so many people do in-person estimates and that's the part I'm really talking about.
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But yeah, like for us, for example, like we don't do in-person estimates hardly at all.
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We do instant quotes and over the phone estimates, right?
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So you're on track there.
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I think it's more a matter of
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operations being the next thing that you would delegate, obviously.
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And then when you get a general manager, they're going to have to know enough about sales to know the numbers of like balancing operations and incoming leads.
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So like balancing capacity of how many team members and trucks do I have versus, you know, inbound over the phone estimates are being sold by your admin person.
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Okay.
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So pretty much the way that I'm thinking to delegate the sales is just like the first month, just get her to draft the quotes, send me like a WhatsApp text, say, here is what I think this quote costs.
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Yes, no, send it through and then like get her to follow up.
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So pretty much simplifying the sales process.
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Is that how I should do it?
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Yeah, you could start off as however you check everything.
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But I would personally, and you could even set up an automation, like when an estimate goes draft, it texts you and tells you like you'd set up on automations.
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I would try very hard to push to where you don't have to review them.
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And then you can even make it where it's like, for example, after the first service, you have the ability to change price if needs be.
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So if someone's way off over the phone, you can always correct it.
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So I would try to get off of that mode as quickly as possible.
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But yeah, to get started, if you have doubts about like their ability to accurately estimate, then yeah, you could definitely review them.
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Yeah, no, definitely, definitely.
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And I have done it in the past.
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I had a VA doing that up until November.
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Had to let him go because drop performance and maybe just one out of 10 jobs would be like under price.
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Yeah, most of the time too, if over the phone, they just say, hey, look, like after the first service, if we need to change pricing, we'll let you know.
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Like one out of 10, if it's that low, like I would just let the VA run.
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And then if a job is way over, you just know that we'll correct it afterwards.
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Because otherwise, if you just start becoming the bottleneck still, you're still the bottleneck if all the estimates don't have to be checked by you.
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So I want you to get away from that as fast as possible.
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No, that's great, man.
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My second main thing here is the P4P.
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I've been like, I've listened to the Audi book.
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I gone through some of the videos of the, of the P4P university.
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Um, I moved on to, to homeworks and it's kind of started tracking like budgeted hours.
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And I want to kind of do it the right way, not the simple way, do it the right way.
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But something that confuses me a little bit is like the labor revenue, because we're like window cleaning, pressure washing business.
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We don't have much other than chemicals and a few tools like blades for squid and stuff like that to buy.
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So what do you think or how do I calculate the labor revenue?
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Or could I say like, OK, set up about like, oh, no, 70 percent of the total revenue is what labor revenue is.
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I would just consider all of it revenue, unless you have certain jobs where it is 30% and some jobs where it's 2%.
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But I would personally just consider all of it revenue unless you have actual materials, actual supplies going to the job.
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Most of it for the sake of simplicity.
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So the crew can just see the number, divide it in their head, they know what they're getting paid.
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It's like, yeah, it's like 70%, and then you get a percentage of that money.
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Like, I would just, like, same thing for mowing.
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Like, we have blades, we have fuel, we have all these other things that go into it.
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But I just consider all of the revenue revenue
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labor revenue.
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Because you say, for example, in your case, you give them like 33% of the labor revenue, but if I was to give like 33% of the revenue to, how do you say this, to the P4PI, I would think it's too much.
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So would you say setting that bar at a max of like 22 to 25%?
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Yeah.
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Yeah, we start at 33, but as we go into profit mode, we bring that number down to usually closer to that 20 to 25%.
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And then as you do like more like treatments, for example, with lawn care, we run down to 15%.
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So if you know that, hey, 20 to 22%, I can be easily getting them above base pay, then it's really a matter of what percentage you need to pay to get them consistently above base pay.
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And a good measure of that is like looking at how much you paid last year in wages compared to your total revenue.
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And that's a good benchmark of like, oh, I need to pay them at least 20% or 22% to get them at least to base pay.
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Do you have anything to add in there in relation to implementing the P4P system?
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But the way I'm thinking about it, it's just like continue to track my budgeted hours.
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Obviously like the people that I hire, which I'm planning for in like one, two months, it's not going to be as fast as me, but,
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but I think we have a good hourly rate.
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And like we were charging about a 20, 220 to 275 per hour.
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Um, like, uh, like the, like the hourly rate for a technician that I'm thinking is like all up with like all burdens, like about 35 per hour.
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Is that, is that 220 per, per person per hour or per crew too?
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Per person.
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So the way I'm thinking is running one man, one truck.
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So that's how I've been running.
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Like I've kind of been improving the system myself for the last six months.
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And I think it's more simple and will allow for like better remuneration to the technician as well.
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Yeah, so 20% to 22% will be just fine then on P4P.
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I think they won't be as fast as you, but I think even still, given $35 is what you're paying them on base traditionally, and you're making $2.20 an hour, you should be able to pay them about 20% to 22% and then still make $40 or so an hour, because you want that difference between base pay and P4P to be significant.
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There's like, we're going pretty quick over this, you know, it's everything pretty simple.
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The off season, man, is what's killed me before, you know, like when I had a team, we would just like, like when I, when I had two trucks out and the four guys, we would do like in a summer weeks of 18, 20, 22K.
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But then comes April, April to July, we would just like a smoke through those profits as an event, spend the money that we set aside for like GST and taxes.
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Therefore creating like even more debt.
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And I run that cycle for like two years until I said last year, like, Carol, I'm going to
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go back to solo and build it all again.
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So I listened to the book, the off season, yet to read it, I think it's better to read it, but yeah, that brings me here to the service plans.
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Have you ever worked with other pressure washing business?
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Because I think like the service plans kind of thing is a bit different when it comes to this type of service to the service you offer.
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Yep, for sure.
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Yeah.
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Well, I talked to a couple actually last week about they do gutters, they do pressure washing, they do soft wash on the houses.
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But like, it's really a function of how do you take one-time jobs and turn it into recurring revenue?
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And so creating the sales process for both when you're initially giving the job estimate for the one-time job, you're already pitching the ongoing service.
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But then especially once the job is done and they just paid you $1,000, that's what
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I'm definitely going to be trying to get them onto an annual or biannual six month plan at $300.
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It's just such an easy drop sell because they just paid you a thousand.
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So it's like about 50% cheaper.
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Is that what you would recommend?
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Like how much cheaper in comparison to the first one soft job?
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Just so it's like a no brainer for them.
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There's a few things that go into it.
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First off, how often do you usually need to do pressure washing?
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Is that every three years, two years?
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Yeah, around one, yeah, two years.
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Some people call us every year, but yeah.
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Yeah, so what's cool about pressure washing is people assume you gotta kinda do it every season, because it's like once a year thing.
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So if you sell it for a thousand, there's no reason why you can't say, hey, if you sign up for our annual plan and we'll be back here the same time next year, it's gonna be 500 bucks.
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but you gotta sign up for this plan and you pay now, like for next year.
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That will crush, mostly because what you're trying to do is you're trying to increase the annual, not the annual customer value, but the lifetime value of the customer because they actually, you lock in that second visit.
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The big question becomes what percentage of your current one-time customers end up calling you again a year from now?
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And if that's 20%, if we can get that to 80%, we double the business, right?
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And more importantly, you get revenue that's recurring, even if it's annual or biannual, versus always going from one job to the next to the next.
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And then taking those recurring customers and moving them to your slower seasons, right?
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All right, let me stop here.
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This is a really important point.
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And I think that the majority of home service businesses are not good businesses to be in because of this problem.
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We have an off season that you have three, four months of the year where your revenue drops off a cliff, leads drop off a cliff.
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And if you have that problem, I've created a free workshop down in the description of this video, there's a link to it.
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And it's gonna walk you through the five ways to solve the off season.
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One of which is just changing the way you do your scheduling.
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Like we're talking about here, pushing demand forward,
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pulling demand forward into your off season.
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So you don't have this collapse of revenue and leads and profit during an off season.
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So the number one thing that most home service businesses be focused on is solving the off season.
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And that's why I created the workshop.
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It's completely free.
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Look in the description, click the link and we'll see you there.
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So it like, it should be contingent to like that, like the slow seasons, right?
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Like to the May to July, cause like the mental mental block I have sometimes towards like service plans is like, Oh, what if then we have to book a visit when a, it is like summertime and we're spending two to three hours on this job and really not getting like when, when we, if we book one of the ones of jobs that come like
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nothing in this season, we make $1,000 and we're like giving away that slot, you know what I mean?
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So I feel like we're losing opportunity just for that.
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First off, I wouldn't feel that way because the quality of the revenue is better.
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And so when you have recurring revenue, the quality of it's so much better, both from enterprise value perspective, the business being able to have systems and run without you, being able to be consistent on paid for performance.
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So like, I always want recurring revenue.
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So the quality of the revenue is increasing.
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So I'm okay having a little bit of a margin hit.
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That would be the first thing.
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So I wouldn't feel that way as badly.
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Secondly, I would just make it very clear to them, like, hey, we're going to give you a week heads up before we show up.
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But this happens once a year.
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But if right now they just sign up with you in May, next year, you're going to do that in July.
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So you can move your recurring slowly to where they all are happening in the offseason.
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So everyone like in, for example, March, April, May, that signs up on an annual, I'm going to be doing them in June and July next year.
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And everyone that signed up for my service in August, September, October, I'm going to be doing them in June and July.
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Like, I'm going to push those in towards my off season.
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So how I was actually working it out before is we would sell them like three to four visits a year plan where we're doing like all the services like gutter cleaning, pressure washing, window cleaning.
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And then just divide that total by 12 to charge it monthly and give like a 15% discount in the total, right?
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The way you're suggesting it is just like, just book the service this time again for next year at a cheaper price.
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Am I right?
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How many people do you convert on the monthly subscription if you bundle everything together?
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We haven't really pushed it that much.
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Like, to be honest, we haven't really pushed that much, but we have two customers on that.
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Yeah, the easiest upsell is for the thing that people just bought.
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Because if you're bundling everything together in a subscription, the challenging part becomes you now have to convince them they need the other three services in the bundle.
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I would rather just say, you just paid me $1,000.
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Why don't we make that $500?
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So I would first lean into that.
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And then what I would do is grease the gears of upselling the other three services when you know they're needed.
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Okay.
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Right?
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So like, if you send a text blast when you know gutters are needing to be cleaned out, you'll get all the people on gutters.
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Instead of having to try to convince them any gutter clean out eight months prior when you did the pressure washing and their pressure washing is on their mind.
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I present dessert after dinner, right?
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I don't be like, all right guys, welcome to our, today we have this great dessert.
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No, I'm gonna show you your appetizers after the drinks.
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Then I'm gonna show you entrees.
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Then I'll show you the desserts.
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And so the same way that there's like four sections of a dinner, you wanna look at the four services you currently offer and say, when am I pitching them throughout the four quarters of the year?
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And I know that for every single time I do any of these services, I'm just trying to sell them the same service next year at a discount.
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But now that they're on my service, I'm going to upsell them into other three over time.
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Yeah, yeah.
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No, it makes sense.
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It makes sense.
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Like, slowly, slowly start to get them from every service rather than just, like, sign up to this.
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And I think I heard you say that on similar calls, but I couldn't, like, figure it out or really understand how you meant it.
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Given my goal for the next 12 months, what do you think I should be focusing on and avoid doing?
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Do you have any paid ads right now, Antonio?
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No, so last year I was focusing a lot of doing paid ads.
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like I've been doing courses.
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I know how to run Google Ads, not Facebook Ads.
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And we would do a right, you know, we'll get like a four to one return.
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If I look at all the data, I'm getting, let's say I'm spending $3,000 to $4,000 on pay ads, and I'm getting about five to seven leads a week out of that, so expensive leads.
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But then with SEO, I'm getting double or triple the leads, basically for free.
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And the quality of the lead sometimes with SEO is even better as well.
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I started to think like what Hermosi says, like more better new.
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So I'm focusing on new instead of doing more.
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of what's already working.
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How do I do more of like SEO?
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So I stopped running ads and we still make the, still making the same revenue a week, even though we're not running that.
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So I think I'm gonna run ads again when the time comes and I have the two trucks out, but I don't see the value of running ads at the moment.
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Yeah, the trouble with SEO is it's not really something you can pour gasoline on.
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It's like, okay, I can't double my SEO budget.
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It's not going to help you.
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Like, if you doubled your SEO budget, if you're paying somebody to do SEO, for example, you're not going to get twice as many ads.
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And so SEO is a function of brand authority online, as well as just brand overall, like reputational referrals, people seeing your trucks, et cetera.
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And so, you know, getting great reviews, being on Google business profile, like address verified, a lot of that will come down to SEO.
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really moving the needle.
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If you're spending thousands of dollars a week and you're only getting a few leads, like your paid ad strategy, Google Ads should be able to produce way better returns than, you know, four or $500 a lead.
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Like that's insane.
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I would definitely consider like using Upwork for a professional that does...
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Google ads, cause like for your service, you should not be paying anywhere close to that for a lead.
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I was getting leads about a hundred to $120 when it comes to, when it came to pressure washing, when it came to window cleaning, I was getting leads for like a 50 to $60.
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But then I was just like, if I booked a day with window cleaning, I would maybe make $1,600.
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When if I booked a day for pressure washing, I made, I would make $2,200.
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So I'm like, if I need to focus on either one, cause like window cleaning is bringing a lot, but then it's messing up the capacity, if that makes sense.
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I would say if you can get leads for that cheap, it's not a function then of do your leads work?
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It's a function of can we make it more worth it by increasing the lifetime value of the customer?
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Cause if you're putting in 150 for a lead, let's just say 50%, that's per lead, right?
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Is that cost per lead?
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Yeah, cost per lead, cost per conversion.
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So customer acquisition cost is probably like 200 or 300 bucks.
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So I understand the apprehension to spend 200 or 300 dollars and then make 15 or 100 or 2 grand.
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I understand that as a big chunk.
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But if I can make that customer worth six or seven grand because I keep them on average for three to four years and I do multiple service and I upsell them three other things.
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Now I can make sense of spending that money.
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I think that your actually, your paid strategy is actually doing pretty well on a cost per lead basis.
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I'd be trying to increase my close ratio with better sales processes, like over the phone, better automation, stuff like that.
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I think you get a 35% to maybe 45 or 50% pretty easy by just really refining the sales process.
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If you do that and you then take the $2,000 customer, make them $8,000 because you sell them three other things throughout the year and you keep them for three years, that makes a lot of sense.
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Like now you're not a one to four, you're a one to 10 or one to 12.
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And would you say like right now that I'm on my own, if it were to run ads with that big budget that I was putting like $3,000 a month or just like put like a...
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a more conservative budget of, let's say, like a thousand, thousand, 500, just to start building that funnel again.
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Do you have so much work, like when you're solo, are you filled up completely?
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Yes, I work four days a week.
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If we reach the revenue goal for each day, we're making about 8,800 a week, which is more than enough for the cost that we have right now.
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So that's what I do.
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If you turn on ads, would you be overbooked?
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If I run ads, I'm gonna still make the same 8,000 because I'm living one day just so I can work on the things of the business, train the people.
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Yes, you're at capacity, right?
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Like you can't turn on ads because doing so doesn't allow you to increase the amount of work that gets output.
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You're at capacity.
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And so I think determining how much revenue you can do by yourself, you're basically there now.
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$8,000 a week, you're already doing that.
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If you were to hire someone though, can we now do $15,000 per week?
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And if so, we have now capacity to backfill with more work and then you turn on your paid ads.
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So then it just comes down to how much capital
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You have because now you're going to go hire someone, so more overhead, and you're going to be spending money on ads, but it could double the business.
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So that's what I'm waiting to do as well because, like I said, as soon as I hire someone, this person is trained and completely delegated with truck one.
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I can start taking care of truck two three to four days a week.
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When that's a stable, I might have to run out just to bring more like demand on the strokes.
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I just like there's things that I haven't done, like text blast or like email blast or like door knocking, like five runs on the jobs, which is things that I think would bring like cheap leads, basically.
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Yeah, like until I do all of those things, I'm never going to spend money on ads, right?
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Like if I'm not doing follow up phone calls on every pending estimate, if I'm not sending out mass email, mass text to my existing database, if you haven't already created monthly emails and texts for all your existing database, then I don't spend a dollar in ads.
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But if I've done all those things that I've honed in my sales process, then I go to the ads and I turn on the faucet.
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But first I need you to fix all the leaks in the sales process and do the things that are free.
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Like email all your customers and tell them, hey, I have this other thing that you could also buy.
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Another thing I wanted to ask you is like, as I bring the team in, you know, something that I am...
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not the best is how do I become like a better coach or a better educator, you know, because like when you're in the cleaning business, you realize that you're not really in the cleaning business, but in the recruiting and training business.
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Right.
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So that's been on my mind lately.
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What are some tips that you can give me?
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So I became like a better coach for the people that come in.
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The main thing is when it comes to retention is most people are going to leave your business not because of the work, not because of the money you pay them but because of you as the manager.
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Most people quit their manager, they don't quit their job.
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And it's evidenced by the fact that usually they will go get a job in the same industry.
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So it's usually the manager they're working for.
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Do you have to be competitive in pay?
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Yes.
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But a lot of times pay, compensation, benefits, et cetera, gets people in the door.
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What keeps them is you as a great manager.
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And so having one-on-ones is probably the biggest flaw I see people not do.
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And it's on a monthly basis.
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You're asking them like...
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What are your goals personally?
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What are your goals professionally?
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How can I help you get to these things?
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How can I, like, what tools and support can I give you to make sure you're successful?
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Those are the type of conversations most people don't have.
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Like, one thing I was talking with my manager, one of my managers earlier today was, is opening up like a one-on-one, sometimes awkward.
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And so to do that, you just play like what's called the Buffalo game.
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It's like so high, low Buffalo.
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It's like, tell me about a recent high, tell me about a recent low, and then tell me about something that I don't know about you.
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And then you flip it on yourself.
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I'm going to tell you something that personally is a big win recently.
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Then I'm going to tell you about something low, something I'm kind of going through right now.
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And I'm going to tell you something you don't know about me.
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And if you do that, you now have six data points to talk about.
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So they just shared a high and a low and something you don't know about them.
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And then you're going to share something that you're going through that's tough, a high, as well as something they don't know about you.
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Now these are six points that throughout the rest of the month, outside of that one-on-one, you can connect with them.
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Instead of just like giving a fist bump in the morning, you're like, hey, how's your mom doing?
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I know you said she was in the hospital.
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That was one of your lows.
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And so having that personal connection and then having the one-on-one to be able to guide them towards their goals professionally and personally is really the unlock for retention typically.
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Great, great.
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So create a more like of a personal connection.
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When you hire your first guy, your very first guy, I know that you mentioned one of them was your friend and he's no longer your friend.
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He probably left.
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But after that, sometimes I thought, because like when I'm training a guy, this guy is just like next to me all day in the car, you know, while we're going doing the route.
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Was it the same for you when you're training the first person or you just, we just like hire, train them for a week and send them on their own?
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It just really depends on whether or not you have the capacity to get another vehicle, right?
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And if you have the leads to keep them busy.
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And if they have the skills to be able to do it without your constant supervision.
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And so, you know, assuming that you hiring one more person allows you to go from 8,000 a week to, let's call it 12 or 13, maybe 14.
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Cool.
320
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And if they got in their own truck, maybe it gets you to 15 or 16 because you double output.
321
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So it really comes down to whether or not you have the capital available to be able to increase capacity by buying the other truck instead of them just riding alongside you as a variable expense in the form of wages.
322
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So I do have a truck here, because I've had the two teams in the past.
323
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Yeah, so I would then drive their comp to, hey, you're going to be with me for however long is required to be able to do these tasks and complete this number of jobs.
324
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After that, you have the ability to move into your own truck and make more.
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My comp, I'm going to tie it to it for them.
326
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But you have to first do all these tasks, two specification, this number of jobs of each of these things, and then you have the ability to go out on your own, for example.
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And I would just tie that to comp.
328
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Another thing here I wanted to talk to you if we had time is about the vision kinds of kind of things, you know, and in my past coaching program, something they will teach us is like, you've got to sell the vision, right?
329
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But like sometimes I see like the career ladder could be limited in a business like this, like, yes, you know.
330
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are like a junior technician, become a lead technician on your own, run your own truck, then you might become a manager, but that's it.
331
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So I've been really inspired by what you do with the franchise side of things.
332
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And I know that it's maybe too early to talk about franchise, but it's something that I wanted to talk to you before like really creating my vision again.
333
00:27:33.088 --> 00:27:57.414
uh because you say like franchises franchising is a complete different business but i would like some thoughts that i had is like okay what if we can sell the the division or the dream that like okay you can own your own franchise uh like you come here as a junior technician you in two three years you can own your own franchise or what i heard in one of your recent podcasts with the
334
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I was like, how could I give these guys a better opportunity here?
335
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So like, I could just make them a minority partner in their own location.
336
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And so I did that for my second location and it went really, really well.
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I'm like...
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kind of sell that dream just so they don't think like, oh, I'm going to be an employee forever.
339
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Some people might be like that, but in this age of the internet, everyone kind of want to have their own business.
340
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So what do you, would you say like is like the most viable path just to expand that career ladder and get people really bought into the business?
341
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The most viable is honestly just to grow a bigger business, right?
342
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Because if you had, you know, 20 technicians, three or four people doing sales on the phone, a bunch of admin people, crew leaders, specific departments and department heads for each of the services that you do, you have specific people just doing upselling and into the continuity program.
343
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Like that's going to be the easiest and probably the simplest way to create a career path for technicians.
344
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Now, if you're starting to like if I want to do franchising or give equity, like it becomes a very, very different game.
345
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And so, for example, with Jonas, with the pest control, he gives percentage.
346
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And, you know, afterwards, I told him, you got to get out of that.
347
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Like, that's the worst legal setup in the world.
348
00:29:26.169 --> 00:29:28.170
And Alex Ramozzi told him the exact same thing.
349
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Like he has it's horrible to own have 30 percent with a whole bunch of people.
350
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Your liability is just through the roof.
351
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I would strongly recommend that if your goal is, okay, I just want to create a ladder for people, just build a bigger business.
352
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Build a bigger business.
353
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And if you build a bigger business, it's super profitable.
354
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The doors open up.
355
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All of a sudden, franchising is a viable option.
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If you have a $3 million company that does a million dollars in profit and you've figured out how to do all the continuity and the upsells and you have the website, there's opportunity down the road.
357
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But first, build a great business.
358
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What made you decide franchising is what I'm doing?
359
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Because the goal wasn't, the goal didn't start as like, I need continuity for my team.
360
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The goal started as I wanted to change the level of professionalism in the industry and no one would listen to me unless I competed with them.
361
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And so I needed to figure out how to maximize how many people I competed with.
362
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So like a very different goal.
363
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And so like, if your goal is that, like, then yes, maybe franchising is in the cards, but like if it's to make more money or is to just give continuity for your team to move up, the fastest way to do this is build a bigger business that has levels of management and hierarchy they can move up into.
364
00:30:35.658 --> 00:30:36.378
Yeah, definitely.
365
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So my, my, the goal that I, like, I started the business, uh, six years ago already.
366
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And I kind of say to, uh, when I hire guys, like I started this business because I wanted to make money.
367
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And then I realized what it takes, like for a business, you have to be, uh, have a vision, but like, I want to bring you into the team to ultimately share that same goal, make money, you know, and have some, some freedom.
368
00:30:59.665 --> 00:31:08.556
Yeah, like I think you could always have sessions talking about financial freedom, credit, buying houses, educating them on financial things.
369
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But if you actually want to create a path for them where they can make more money in your business, many times that is you grow a bigger business.
370
00:31:16.686 --> 00:31:17.506
No, that's great, man.
371
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I think I've talked about everything I had in mind.
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I appreciate the time.
373
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I appreciate the advice.
374
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And, you know, we'll make sure that we take action, you know.
375
00:31:29.631 --> 00:31:33.472
I was on the fence of booking this call for like a few weeks.
376
00:31:34.672 --> 00:31:44.736
But I then listened to one of the latest Hormosi videos where he's like, if you see somebody that has already done it, just pay it and increase your knowledge.
377
00:31:45.627 --> 00:31:46.128
Well, yeah, man.
378
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Best of luck this year.
379
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I think there's just a few tweaks away on the sales and then the continuity side of things, and then making sense of still being able to run the ads.
380
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And then it's a function of just hiring, management, leadership.
381
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And those are skills that in part come with reps too.
382
00:32:00.601 --> 00:32:02.145
So I wish you all the best.
383
00:32:02.906 --> 00:32:03.869
Thank you so much, man.
384
00:32:03.949 --> 00:32:06.174
Have a great rest of your day and catch you around.
385
00:32:06.635 --> 00:32:07.036
Thanks, brother.
386
00:32:07.056 --> 00:32:07.377
Take care.
387
00:32:07.477 --> 00:32:07.717
See ya.
388
00:32:07.998 --> 00:32:08.479
Thank you.
389
00:32:08.519 --> 00:32:08.700
Bye.
