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In this video, we're going to be going over when it makes sense to actually create departments inside of your home service business for different service lines, or even for commercial versus residential.
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There's a whole bunch of other questions that I had with several entrepreneurs inside of HomeWorks.
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And if you'd like to be on one of these calls and ask me questions, go ahead and sign up today, go to home.works and join the weekly masterminds.
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So we're unapologetically generalist.
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We're going from, I'm looking at the spread of our services.
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It's massive.
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We have our hands in everything.
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We're an all-in-one stop, one-stop shop for apartment complexes.
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But my big question is, as we grow, we have to specialize.
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And we have to specialize, certain teams can specialize in, right?
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So we build basically a division of carpet cleaning, a division of gutter cleaning, a division that is specifically for...
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turnover maintenance, turnover repairs, so they'll allow technicians to hone their craft, specialize, get faster, get more efficient.
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Have you seen companies try to bridge that gap?
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And what are some of the keys in order to do that well?
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Or what are some of the things you've seen that they just failed miserably trying to get from generalists to more build departments?
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Great question.
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Quick question, just so I can clarify, Matt, how many technicians do you have in the field?
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Seven at once, yeah, seven guys.
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Yeah, so I think when it comes to handyman, a lot of people go into divisions too quickly, and by doing that, they splinter the amount of people in each division.
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meaning you only have one or two people that know how to do specific tasks.
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And so you actually create key man risk.
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And so until you have a certain size, divisions actually make way more key man risk because if one person leaves or maybe someone calls out sick, all of a sudden we're in a world of hurt.
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And so the generalist concept, it's the same thing as actually the admin where I also require them to do all these different things.
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I can't really get just someone for phones, just someone for payroll, just someone for AR, just someone for AP.
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I can't do that until I'm large enough.
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I think what I've seen people do is they hit up against seven, eight employees.
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They always feel the pressure.
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They'll do the visions as a Band-Aid fix instead of how can we simplify and standardize this and then be able to get to 20 technicians and then do the divisions and actually like three, four, five people in an apartment, for example.
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Yeah.
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like outdoor, indoor, commercial, residential.
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You can start breaking up and splintering it however ways you want.
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But I think that most people could take your current services.
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Okay, let's see we offer 15 things.
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What are the two things that are constantly pulling you back in and constantly pulling in specific people that the generalists can't get done?
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Those would be the things I'd be trying to chop because I then, once I do that, I can then triple or quadruple the business in size doing what can be more standardized.
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And in your business, it's less about simplification and more about standardization.
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Cause like simple doesn't happen.
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It's like, it's all over the way.
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But can we standardize what kind of gutters, which ones we're able to touch, which one we're not gonna touch.
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And you know, the 20% that causes 80% of the problems.
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And if you've cut that, usually I see handyman because the claim to fame is we do everything.
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They box themselves in to basically usually a seven to 10 person shop because everything ultimately still hinges on one person knowing everything.
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And so I would try to remove those bottlenecks and then scale it to the point where then dividing and making the divisions is actually permissive.
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Perfect.
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That really helps.
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Appreciate that.
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You got it.
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Eddie says, when it comes to buying trucks, I've always wanted newer to avoid short-term maintenance and having a unit out of service.
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Do you prefer getting trucks cheaper for a better price or newer units?
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Yeah, the video I made on Tuesday, I went over this in-depth about new versus used.
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If you're going to be in business for a long time and you do not have a lot of mechanical experience, new starts to make a lot more sense.
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because you pay less in maintenance, less in downtime.
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The reason you don't hear me talk a lot about it online is because most businesses don't last five years.
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And so if you're going to go buy new and two years got a business, you just took a huge depreciation hit that you might not get if you bought a 10-year-old truck.
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And so publicly, I will say,
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usually much more around used because the vast majority of people listening to me will not be in business in five years.
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But for those that are more established, and this is where we start doing above a million, you've been established, you know, you're gonna be doing this for a long time buying new when you look at cost per mile starts to make a lot of sense.
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All right, Daniel, go for it.
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I was thinking of actually implementing P4P just to bring up the motivations.
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I'm going to be bringing a lot of new hires.
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And if I want to sell them on the vision of the company and where we're going, I think P4P would help a lot.
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Right.
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Yeah.
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I agree.
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Do you have a specific question?
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Or do you need me to pick?
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Yeah.
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How would I go introducing it to the whole team, everything?
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Yeah.
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I think based on what I remember us talking about before, I still think personally, I probably wouldn't be yet.
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Okay.
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Mostly because if you have not done budget hours, you're basically asking for a mutiny in three to six months when they think that budget hours are off, you're screwing them on money, you're not estimating jobs correctly, et cetera.
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Personally, I would just make sure that what you're paying them per hour is less than or at what your base pay on P4P is going to be down the road.
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Okay.
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So that way, when you do implement P4P, you're like, hey guys, guess what?
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Here's this new thing where you can make more money and there's no downside.
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Now, the problem is if you start paying them $25, $26 an hour, for example, and they're like, all right, base pay on P4P is 22.
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They're gonna be like, whoa, whoa, whoa.
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There's downside here?
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And so I would just focus on
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budget hours and you can track it like getting in the software that this is all big rocks i want you to focus on so when you do p4p you're confident because like budget hours are accurate you already know their approximate efficiency score you already know what your top performers produce in a day you already know that your estimating is accurate you can even connect homeworks to p4psoftware.com without them even knowing bring all the data automatically with the sync and just be tracking all their like even if you did i've done the
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There's actually a couple of people doing this.
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I saw this the other day.
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They're not running P4P.
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They're not paying their employees by P4P, but they do it.
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They sync all the data over to P4P so they can have a really easy dashboard of who's the most efficient employee.
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And it's the only reason they use it because they just bring over the budget hours.
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It brings their base payover.
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It brings all their clock times and everything over automatically.
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Well, I can do that then.
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Also, like I was thinking if I didn't know my budget hours that well, what I could do even with the PPP software is just put like the total amount of revenue and then just, you know, 33%, you know, whatever it is.
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Yep.
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That's called simple mode.
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Yeah, simple mode.
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Simple mode.
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Yep.
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But you're saying still just figure it out completely on my budget hours.
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How I would pitch this is like, hey, guys, this year I'm trying to figure this thing out.
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I want to be able to pay you more.
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I want to pay you based on how hard you work.
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Here's what our base pay is going to be.
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But by the end of 2026, I'm going to figure out a system that if you work harder, you can make more money.
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Okay.
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Then that gives you permission to figure the numbers out, connect over their P4P.
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And then one day you're going to go on a team meeting and be like, hey, guys, by the way, most of you have been earning about this much on P4P versus what you're making down here.
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This system is only upside for you.
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And now you log into P4P.
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As you complete jobs and homeworks, you're going to see how much money you're making in live time inside the P4P mobile app.
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Mm-hmm, mm-hmm.
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That's the most, like if you have route-based jobs or any sort of drive time, the most, the biggest reason to have P4P software, like the app, is that they can go from HomeWorks where they're clocking out jobs, doing everything at normal.
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They hop over to P4P and just watch their thermometer because it shows all the revenue they can earn for the day based on jobs assigned to them inside HomeWorks.
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And as they complete them, they see that revenue being earned.
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It's just like a huge morale booster for the team.
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Okay.
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Okay.
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Okay.
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Thank you so much, Mike.
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You got it.
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All right, this is a great question from Daniel, and I want to dive into this because recently we've heard a lot about fuel prices over the past few months, and I've seen people freak out about fuel prices and headlines, and it's in the news, and it's politics, and it's economics, and people are freaking out.
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And so I ran analysis on over 600 home service businesses and their financial statements, and what's crazy is that on average –
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about 4.5% of the revenue was being spent on fuel.
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Okay.
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Not nothing, but it's only 4.5%.
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In comparison to wages, which made up 57% of the revenue, 57% of it was going out the door to wages and labor expense.
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And so this question that Daniel's having around...
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budgeted hours, pay for performance, is in my opinion, the most important thing.
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That's why inside of HomeWorks, we talk about budget hours for every single visit.
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It's on the calendar, it's on the dispatch board, it's when you create every single visit.
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We're tracking your budget hour capacity because this is the thing that actually moves the needle.
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Making your crew efficient, having software and systems, it's going to move the business dramatically more than a couple percentage points based upon fuel prices.
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And so I encourage you to not buy into the hype,
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Not to get distracted with all the noise and just focus on what actually moves your business forward, which for home service businesses, it is making your labor efficient.
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Use budget hours, use pay for performance, and use homeworks as your software.
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Matt, go for it.
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We got a two-person Q&A today.
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Let's go.
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Yeah, I got another one on searchability of the time card app.
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I don't even know what the term is for homeworks.
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So we do a lot of time plus materials work with property management type items or turnover maintenance for rental properties, that sort of thing, where it's a time plus materials charge.
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And we rely heavily on...
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QuickBooks workforce right now for that.
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So we pull up reports and our accountant who's in the chat, Jennifer, she's our backend bookkeeper.
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She does a lot of that and goes through all the minutia to make sure we don't miss anything.
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How does that work with homeworks and your time tracking?
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Yeah, so what's nice is, assuming they're using a company device or they've enabled tracking their device, for us, we just require it for all our technicians.
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I know some people get their own devices for the company.
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We have breadcrumbs throughout their entire day of where they're at.
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And so you can always use that as a way to prove their time tracking.
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It's helpful if they forget to clock in and out, for example.
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You can just see where their truck was, when they showed up, when they left.
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All of that's in the breadcrumbs.
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The second thing is every single job on the Field Force mobile app, they have to clock in and out of.
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And it will remind them if after five minutes they enter the geofence around that property, if they haven't clocked in, it will remind them.
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It'll pop up and do a push notification.
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Same thing when they leave.
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It'll be like, hey, you left.
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Did you mean to clock out?
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So it reminds them kind of twice there.
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One thing that we, because that feature just got added a few weeks ago, Matt.
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What we're trying to do in the future is also allow that, because we already have the data, when they entered the geofence, when they left, as suggested clock in and out times on the dispatch board to your home office in case they don't clock in and out.
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So in the event that someone does forget and they also don't see the notification and somehow it still happened, in order to prevent you from having to go and see the map and see, okay, when do they actually leave there?
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We want to be able to present that information right on the dispatch board and be like, okay, that makes sense.
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They left the geofence.
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Okay, except at 348 they left.
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Nice.
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And so right now those are kind of the three ways that we sort of triangulate making sure that's accurate.
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Awesome.
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And a quick follow-up on that is, so some of our techs, I have my, you know, A team, B team on certain jobs, right?
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They specialize in a few things they're really good at.
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One of the things that I'd love to be able to do, and I know it's possible, I just haven't been able to figure it out.
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I'd like to see how I work in homeworks is how to analyze based on job type, the productivity level and how quick they are and how efficient they are and be able to bring that to them and performance reviews and those types of things.
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And,
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Just to encourage, help them.
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How can we help them solve some things or shift them to a better area of strength?
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How does that work within homeworks?
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Because I think if I've heard you, I think you're pretty big on that type of analytics.
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Yeah, so budget hours is kind of like, I would say the thing that's through and through on homeworks.
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like budget hours versus actual hours, i.e.
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the efficiency score is the metric to be able to do this.
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Like in one-on-ones, in our performance, in our weekly huddles, in our daily huddles, like is all we talk about is efficiency score.
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So that's why like when you see budget hours on every visit, every single meeting, every single job, that's why, that's the number that's gonna be the easiest to use with them is like, hey, did you hit budget hours?
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That's like the easiest, cause they can see it.
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It goes red on their device as soon as they start going over that time.
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The more granular approach is actually tracking efficiency score.
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and actually having a scoreboard or compensation tied to that and moving in the direction of more like a pay for performance situation, that's when you would actually take the budget hours and the information there and actually utilize it to change comp.
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But that's what I would be using is really, it'd just be budget hours divided by clocked hours, there's efficiency score.
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For your type of work where they're tracking their own time, everyone's like, oh, well, like,
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Now, all of a sudden, efficiency doesn't matter.
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It's like, well, like, there's still a lot of drive time, unload time, material pickup that can really be squeezed.
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And so we still encourage a lot of the handyman that use home or still track your budget hours, still track time on jobs, because it's still a great mechanism to improve their performance, as well as be able to compare and contrast, you know, A versus B versus C team type situation.
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Like, what are the actual efficiencies?
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And then also being able to budget, like, how much can I pay them?
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Because they're 10% more efficient, right?
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Nice.
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Appreciate it.
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Thank you.
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The one thing it doesn't do, Matt, right now, just to go back on your point, sorry, is there's no report now that it's like, hey, what's our efficiency score on bathroom remodels versus kitchen installs?
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That right now, there's no granular.
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around that it's much more around the individual days the weeks you can pull the whole dispatch board up and see all the budget hours on every single visit on the dispatch board as you see them it'll go red if it goes over budget hours it'll go green if they complete the job it's above budget like they beat budget hours so
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Every industry is a little different.
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How do I want to present efficiency to my crew?
202
00:14:04.558 --> 00:14:05.479
We track every minute.
203
00:14:05.779 --> 00:14:16.670
In some cases, I've seen handyman, it's like, hey, let's just track percentage of jobs that beat budget hours, for example, or on time and on target, on budget kind of thing.
204
00:14:16.690 --> 00:14:17.351
Yeah.
205
00:14:17.631 --> 00:14:23.494
So the level of granularity you use and how much you comp on it or give profit sharing or whatever it might be, it's kind of up to you.
206
00:14:23.794 --> 00:14:26.755
We don't really do the reporting right now, though, based upon service.
207
00:14:27.055 --> 00:14:29.416
Just to be clear, I don't want to false expectation there.
208
00:14:30.137 --> 00:14:35.059
I have seen some people export the data, put it into like a chat to be tea and then do that analysis.
209
00:14:35.719 --> 00:14:41.162
But we don't have like a quick, easy way like, hey, I want to know what my efficiency is on these three different services across the entire team.
210
00:14:41.382 --> 00:14:42.002
We don't have that now.
211
00:14:42.302 --> 00:14:42.542
Got it.
212
00:14:42.602 --> 00:14:42.942
Thank you.
213
00:14:43.122 --> 00:14:43.723
Daniel, you're up.
214
00:14:43.803 --> 00:14:45.604
I'm gonna hire my first admin this season.
215
00:14:46.004 --> 00:14:51.147
I had like a kind of a customer service person overseas, like a VA last season.
216
00:14:51.247 --> 00:14:55.970
And I watched your video about how you say about VA versus hiring in-house, right?
217
00:14:56.370 --> 00:14:59.231
And you mentioned how it's like a lot easier training in-house, right?
218
00:14:59.251 --> 00:15:01.873
But it's always more expensive, right?
219
00:15:02.313 --> 00:15:08.159
But I just wanted to know, like, what's your advice on, like, setting up my admin this season for success?
220
00:15:08.199 --> 00:15:10.642
Right now, my company is from, we did 1.1 last year.
221
00:15:11.022 --> 00:15:12.644
And my goal this year is to do around two.
222
00:15:13.405 --> 00:15:14.686
We just do lawn care, right?
223
00:15:16.268 --> 00:15:20.052
What system should I put in place, like SOPs, like, to make her succeed in her role?
224
00:15:20.092 --> 00:15:22.935
Do you already have an office, Daniel, that you pay ShopPrint for?
225
00:15:23.475 --> 00:15:31.184
Um, currently I, this season I'm getting a office container and I'm just going to run out of a generator and then I have like all my trucks there.
226
00:15:31.705 --> 00:15:32.005
Okay.
227
00:15:32.286 --> 00:15:32.506
Yeah.
228
00:15:32.686 --> 00:15:35.029
Um, does it, is it like equipped though for an office?
229
00:15:35.389 --> 00:15:35.870
Uh, yeah.
230
00:15:35.890 --> 00:15:37.071
Like it's going to be a office container.
231
00:15:37.111 --> 00:15:37.952
It's going to be nice.
232
00:15:38.333 --> 00:15:40.976
I'm going to decorate and make a nice, make a, you know, okay.
233
00:15:41.196 --> 00:15:43.197
But is it like a shipping container or like a portable?
234
00:15:43.438 --> 00:15:44.138
A shipping container.
235
00:15:44.438 --> 00:15:44.719
Oh, wow.
236
00:15:44.799 --> 00:15:45.279
Okay.
237
00:15:45.339 --> 00:15:45.919
Let's go.
238
00:15:45.959 --> 00:15:48.141
But it has like – it's insulated.
239
00:15:48.201 --> 00:15:48.641
It has AC.
240
00:15:48.761 --> 00:15:49.002
Okay.
241
00:15:49.082 --> 00:15:50.303
It has heating.
242
00:15:50.783 --> 00:15:52.064
Yeah, we did that back in the day.
243
00:15:52.404 --> 00:15:52.644
Okay.
244
00:15:52.664 --> 00:15:53.145
Yeah.
245
00:15:53.505 --> 00:16:01.771
As long as your rent's not going crazy, I think that if you're going from $1 million to $2 million, I think having an admin in-house and full-time is probably worth it.
246
00:16:02.151 --> 00:16:03.232
Let's assume they're $70,000 a year.
247
00:16:03.312 --> 00:16:03.572
That's –
248
00:16:05.233 --> 00:16:08.934
7% of last year's revenue, but 3% of next year's revenue.
249
00:16:09.374 --> 00:16:12.395
I think I would make that bet that you could utilize them.
250
00:16:12.875 --> 00:16:17.596
I think the thing that you can be careful of is not having systems in place for them to actually be efficient.
251
00:16:17.656 --> 00:16:20.716
And so if you have those things nailed down, I would try to bring them in-house.
252
00:16:21.076 --> 00:16:25.337
And then as you scale past two million, they could be your office manager.
253
00:16:25.457 --> 00:16:28.678
And then when you get a VA, whether it be in the US or abroad,
254
00:16:29.278 --> 00:16:53.816
there's someone else managing them and making sure they actually are set up for success so like as you scale you could go virtual again but the first office manager really being in person learning from you learning from the crew being there is highly rewarding okay okay i get what you're saying so like make train them as much as they can make them succeed and then make them replace their role automate as much as they can build systems so and then they can get replaced and move up right okay
255
00:16:54.076 --> 00:16:58.703
And then, too, if you get someone and they're like, hey, I'd like to eventually work hybrid, you say, great.
256
00:16:59.083 --> 00:17:07.356
As you create systems in all these departments and you get people virtually to be able to handle them, you can move to where you only come in the office once or twice a week, for example.
257
00:17:07.576 --> 00:17:09.018
That would be a perk for them to move hybrid.
258
00:17:09.958 --> 00:17:12.359
as they employ people that are virtual.
259
00:17:12.779 --> 00:17:16.320
And you're probably not gonna need that person, but once you hit two million, they're gonna need an assistant, right?
260
00:17:16.600 --> 00:17:23.301
So you would reward inside their initial 30, 60, 90, one 80 and 365 in their onboarding doc.
261
00:17:23.661 --> 00:17:38.865
I would bake in there, their comp stuff, benefits like working hybrid, as well as the expectations that, hey, as we hit these revenue markers, I expect you to be getting someone to be able to handle phones, someone to be able to handle payroll and QuickBooks, like bake that all into their onboarding.
262
00:17:39.125 --> 00:17:39.686
document.
263
00:17:39.706 --> 00:17:39.946
Okay.
264
00:17:40.126 --> 00:17:40.406
Okay.
265
00:17:40.446 --> 00:17:44.651
So when they bake it all into the onboarding document, make sure that everything's clear, right?
266
00:17:44.751 --> 00:17:45.692
Okay, cool.
267
00:17:45.752 --> 00:17:47.414
And then like, what do you think?
268
00:17:47.874 --> 00:17:49.756
Like my goal is here, 1 million to 2 million, right?
269
00:17:50.957 --> 00:17:52.319
Like I'm going to hire her, right?
270
00:17:52.399 --> 00:17:54.901
It's going to be around the 60, 60 base.
271
00:17:55.402 --> 00:17:56.143
And then,
272
00:17:56.483 --> 00:18:05.365
I was thinking, because I also was, I might want to go as well, like with a customer service rep in the Philippines, just, you know, pay like six, seven, eight dollars an hour, right?
273
00:18:05.705 --> 00:18:16.408
Or whatever it is, just to handle like a couple hours of customer service calls in case like my admin, if she's answering, like, you know, she's doing a lot of stuff, she can, the customer service can help out, right?
274
00:18:16.688 --> 00:18:21.893
Yeah, so I would bake that into probably their 90-day is getting that person set up.
275
00:18:21.913 --> 00:18:22.413
Okay.
276
00:18:22.493 --> 00:18:26.997
Because you don't want to – if they both start at the same time you're asking for chaos, then both of them will fail.
277
00:18:27.758 --> 00:18:41.870
If you get the first person established with systems and they learn about the role, they learn about the process, how you do things, the industry, how you want your sales process to go, et cetera, then you have baked into their 30, 60, 90 exactly – hey, you're supposed to be –
278
00:18:42.210 --> 00:18:44.791
looking for a VA after 30 days, I expect you to hire them.
279
00:18:45.111 --> 00:18:46.091
30 days after that, I expect it.
280
00:18:46.251 --> 00:18:48.252
Like, so just create a really solid roadmap.
281
00:18:48.352 --> 00:18:56.014
Everyone over indexes on onboarding when the actual job description should just have the 30, 60, 90, 180 and a 365.
282
00:18:56.234 --> 00:18:59.335
And then just the triggers for when their comp goes up where they get other rewards.
283
00:18:59.575 --> 00:19:00.075
Okay, wow.
284
00:19:00.255 --> 00:19:02.296
I never looked at like that, 30, 60, 90.
285
00:19:02.716 --> 00:19:06.876
So creating a roadmap of vision so they can know how to succeed.
286
00:19:06.916 --> 00:19:07.196
Okay.
287
00:19:07.516 --> 00:19:16.058
The reason you're willing to pay more for that first admin person and you're going to kind of overpay, quote, unquote, is going to be that they set up admin for you.
288
00:19:16.378 --> 00:19:19.599
And so you just make sure that them leaving doesn't handicap the business.
289
00:19:19.819 --> 00:19:21.159
So they've got to document everything.
290
00:19:21.179 --> 00:19:21.979
They've got to have systems.
291
00:19:21.999 --> 00:19:23.479
They've got to have screen recordings, et cetera.
292
00:19:23.779 --> 00:19:26.160
But then bake it into where you don't hire the VA.
293
00:19:26.380 --> 00:19:26.820
They do.
294
00:19:27.300 --> 00:19:28.581
Okay, so another question I have.
295
00:19:28.601 --> 00:19:36.368
So every season, like here in Canada, I actually don't do any winter services just because I don't really like snow and liability is too high over here.
296
00:19:37.269 --> 00:19:42.013
But every season I struggle with like getting new guys, you know, filling up the roles again, right?
297
00:19:43.114 --> 00:19:46.497
This past season I had on like about eight guys.
298
00:19:47.077 --> 00:19:48.439
About five of them are coming back.
299
00:19:48.459 --> 00:19:49.700
So I'm going back to school and stuff.
300
00:19:50.140 --> 00:19:51.701
Actually six are coming back this season.
301
00:19:52.642 --> 00:19:54.684
And this year I have, I'm going to have,
302
00:19:55.184 --> 00:19:56.244
seven, eight trucks on the road.
303
00:19:56.524 --> 00:20:00.365
So I need about like, you know, 12, 14 guys, right?
304
00:20:01.326 --> 00:20:02.926
I need to do a lot of hiring, right?
305
00:20:02.946 --> 00:20:05.667
So what's your most efficient, most effective way on hiring?
306
00:20:05.687 --> 00:20:09.208
I already posted a lot on Indeed, but what's your take on that?
307
00:20:09.528 --> 00:20:09.688
Yeah.
308
00:20:09.708 --> 00:20:10.368
So two things.
309
00:20:10.428 --> 00:20:17.650
First off, you can set up customer types inside of Homeworks and just change it to a custom name and you just call them applicants.
310
00:20:18.070 --> 00:20:22.652
So that way, when an applicant comes in, you could just put them inside of there and set them up inside of an automation.
311
00:20:22.792 --> 00:20:30.834
So, for example, you can set up in-person meetings that are actually called in-person interviews for applicants and set them up on a reminder sequence to actually show up to an interview.
312
00:20:31.134 --> 00:20:31.514
Same thing.
313
00:20:31.695 --> 00:20:33.655
We do the same thing when it comes like first day of work.
314
00:20:33.775 --> 00:20:38.957
After someone accepts a job, I'm going to set them on an automation sequence to get like they learn about paper performance.
315
00:20:39.057 --> 00:20:39.297
They learn.
316
00:20:39.297 --> 00:20:40.337
They learn about open book management.
317
00:20:40.357 --> 00:20:42.978
They learn about the 3F program, what we're about at Augusta.
318
00:20:43.398 --> 00:20:46.119
All of that is trickle-feated to them before their first day.
319
00:20:46.540 --> 00:20:49.981
And you can do that by just changing the applicant or the customer type.
320
00:20:50.681 --> 00:20:52.862
You can customize it to be applicant.
321
00:20:53.702 --> 00:20:54.402
That'd be the first thing.
322
00:20:54.482 --> 00:20:56.623
Second thing is use Indeed Automations.
323
00:20:57.063 --> 00:20:59.244
If you're paying for an ad, you usually get it already.
324
00:20:59.784 --> 00:21:03.966
And that is where it automatically is going to send them a text, an email, et cetera.
325
00:21:05.006 --> 00:21:09.568
And then I would use those to actually send them to a video application.
326
00:21:09.868 --> 00:21:18.312
Because right now, especially with everything in the current labor market, you're going to actually have a lot of applications on Indeed.
327
00:21:18.712 --> 00:21:23.654
So we usually get 50 to 60 applications over a weekend at one of our locations if we put up a job ad.
328
00:21:24.215 --> 00:21:26.295
I do not want to go through 50 or 60 applications.
329
00:21:26.896 --> 00:21:29.877
I don't want to send 20 interview requests and have five people show up.
330
00:21:30.137 --> 00:21:36.778
So what I'd recommend is use Indeed, use the automation, then send them a link to ask them specific interview questions via video.
331
00:21:36.798 --> 00:21:41.159
Because from that video, you already know the top two or three people out of those 50.
332
00:21:41.559 --> 00:21:52.982
And instead of inviting 20, blocking off two days of your work schedule to do interviews, and then five people showing up and two of them being good, you'll just get the five people that are good to submit videos, and out of them, you'll choose the two good ones.
333
00:21:53.182 --> 00:21:59.064
So this didn't work back in 2020 and 2021 because we were all just like, if someone could just have a heartbeat, we'd hire them.
334
00:21:59.584 --> 00:22:06.567
Now you're gonna be overwhelmed with so many applicants that you actually make bad hiring decisions because you're just overwhelmed with the number of applications.
335
00:22:06.707 --> 00:22:09.728
And so you actually need to create more filters in the hiring process.
336
00:22:09.968 --> 00:22:11.769
And I would implement video.
337
00:22:11.789 --> 00:22:13.650
We use SparkHire, but like,
338
00:22:14.170 --> 00:22:17.272
We get it for all our owners for free, so they don't pay 500 bucks a month.
339
00:22:17.392 --> 00:22:19.673
I would not use SparkHire if you're just doing that many employees.
340
00:22:19.713 --> 00:22:23.895
It's pretty expensive, but you could very easily have like a Google form.
341
00:22:24.295 --> 00:22:28.597
And again, that link to the Google form could just be sent automatically from Indeed as soon as they apply.
342
00:22:28.617 --> 00:22:31.638
So you apply on Indeed, automation triggers out, sends them a text message.
343
00:22:31.898 --> 00:22:33.219
Here's a link to a Google form.
344
00:22:33.499 --> 00:22:37.621
Please answer these two or three questions and submit the videos right from your phone.
345
00:22:37.961 --> 00:22:39.222
Google Forms isn't so bad.
346
00:22:39.382 --> 00:22:41.303
It's not like the perfect user interface.
347
00:22:41.663 --> 00:22:46.325
but it's good enough for them to open it up, make a video of themselves, attach it and submit it back to you.
348
00:22:46.725 --> 00:22:47.245
I would do that.
349
00:22:47.585 --> 00:22:47.845
Okay.
350
00:22:48.066 --> 00:22:48.266
Okay.
351
00:22:48.306 --> 00:22:48.626
Thank you.
352
00:22:48.786 --> 00:22:48.986
Yeah.
353
00:22:49.006 --> 00:22:50.587
So automating the hiring role.
354
00:22:50.607 --> 00:22:51.347
Thank you so much, Mike.
355
00:22:51.747 --> 00:22:52.307
Yeah, you got it.
356
00:22:52.427 --> 00:22:53.248
Patrick, go for it.
357
00:22:53.648 --> 00:22:54.208
Awesome, man.
358
00:22:54.388 --> 00:22:56.689
I've been a longtime follower and lurker here.
359
00:22:57.409 --> 00:22:59.050
I just, I just, my business.
360
00:22:59.070 --> 00:22:59.390
Let's go.
361
00:22:59.790 --> 00:23:01.533
Yeah, I just started my business in September.
362
00:23:01.593 --> 00:23:03.836
I was a fireman working for the man.
363
00:23:03.856 --> 00:23:07.721
I was actually doing some pretty cool stuff, but got a different plan for me.
364
00:23:07.741 --> 00:23:08.562
So I'm just getting started.
365
00:23:08.622 --> 00:23:09.363
I'm wondering a lot.
366
00:23:09.583 --> 00:23:12.507
And I'm actually looking at starting a handyman business.
367
00:23:12.607 --> 00:23:14.029
So maybe Matt could actually help me.
368
00:23:15.420 --> 00:23:20.884
I guess my biggest thing right now is just getting started, just trying to get a client list going.
369
00:23:21.004 --> 00:23:28.109
And so any word of advice you can give me for that, I guess I do need to go door to door and kick some doors in and meet people for sure.
370
00:23:28.189 --> 00:23:29.150
I'm looking forward to doing that.
371
00:23:29.310 --> 00:23:34.193
But property managers, you know, going around and talking to all those people I need to do.
372
00:23:34.233 --> 00:23:36.435
But just any advice I can get would be awesome.
373
00:23:36.615 --> 00:23:50.000
Yeah, one of the things I think when it comes to handyman is you got to really determine are you going commercial you going residential and so because if you're doing residential, yeah, you're going to door knock you're going to run ads your websites and look totally different.
374
00:23:50.300 --> 00:23:51.461
I just all the time, especially when you're.
375
00:23:52.201 --> 00:23:57.163
electrical HVAC, et cetera, it's like their website looks residential and then they go into commercial.
376
00:23:57.183 --> 00:23:59.224
It's like, you have to have a clear brand image.
377
00:23:59.244 --> 00:24:01.825
When the customer thinks I need something, they stop finding on Google.
378
00:24:01.885 --> 00:24:11.629
When they come to your site, it screams residential or commercial because the best way to get rid of a customer and reduce your conversion rate is for them to think this is not for me.
379
00:24:12.009 --> 00:24:13.889
And so I would choose one of those lanes.
380
00:24:14.250 --> 00:24:16.270
Doing both at the beginning can be very difficult.
381
00:24:17.051 --> 00:24:17.571
I would also,
382
00:24:18.211 --> 00:24:20.492
I'm assuming you have tons of handyman skill.
383
00:24:21.233 --> 00:24:24.595
And if you didn't, I'd say go get a job because handyman is one of those things.
384
00:24:24.615 --> 00:24:25.755
There's so much variety.
385
00:24:25.795 --> 00:24:26.696
You've got to know what you're doing.
386
00:24:26.716 --> 00:24:28.277
And there are so many handy businesses.
387
00:24:28.317 --> 00:24:29.437
They have such a bad job.
388
00:24:29.457 --> 00:24:29.998
It's so bad.
389
00:24:30.038 --> 00:24:30.578
It's so horrible.
390
00:24:31.379 --> 00:24:35.941
And the good thing is it's like, hey, if you do a good job, you've got a lot of work coming in.
391
00:24:36.401 --> 00:24:40.524
And so I would really be very intentional about choosing residential versus commercial.
392
00:24:41.124 --> 00:24:43.406
and then choosing your brand around that.
393
00:24:43.666 --> 00:24:49.812
So being even like the logo, the website, your ads, it needs to speak to either of those consumers.
394
00:24:50.372 --> 00:24:57.638
So like putting a dog laughing is not gonna speak to a property manager as much as a much more commercial looking site and logo.
395
00:24:57.799 --> 00:25:02.883
And so I would be, you know, given that you're so early, I'd be very intentional which direction I wanna take that.
396
00:25:03.223 --> 00:25:08.628
Okay, I guess any advice on which way I might should go on that?
397
00:25:09.569 --> 00:25:17.558
So if you go commercial, it's much more who you know, property managers, contractors, large landlords, et cetera.
398
00:25:17.979 --> 00:25:22.905
If you're going the residential side, no one thinks about their broken toilet until they have one.
399
00:25:23.025 --> 00:25:23.986
And so then you –
400
00:25:24.146 --> 00:25:26.708
are going to go much more traditional advertising route.
401
00:25:26.929 --> 00:25:33.735
And if you're like, well, I don't know which one to go, then you might just start running ads to a site and see what comes to you and what sticks and what you like, et cetera.
402
00:25:34.215 --> 00:25:38.058
Uh, that is usually a pretty unprofitable time because you're figuring so much out at the same time.
403
00:25:38.499 --> 00:25:45.325
And usually it's hard to show yourself as the professional or like the expert when you're kind of testing out all the waters.
404
00:25:45.525 --> 00:25:45.765
Okay.
405
00:25:46.105 --> 00:25:47.166
Matt probably has something to add to that.
406
00:25:47.186 --> 00:25:47.647
Go ahead, Matt.
407
00:25:48.047 --> 00:25:48.647
Yeah, sorry.
408
00:25:48.668 --> 00:25:51.329
Just throw something in there for you, Patrick.
409
00:25:51.950 --> 00:25:59.154
If your personality is one that you liked, you'd like to meet a lot of people and you'd like to talk to a lot of people and you just get a lot of energy from that.
410
00:25:59.695 --> 00:26:01.356
I'd go the route of residential.
411
00:26:02.006 --> 00:26:08.548
If you are not so much a people person, you'd like to have a few, maybe seven to 10 relationships that you can manage.
412
00:26:08.808 --> 00:26:16.110
I would go the route of property management because then you'll be able to have a lot of work from a few people, few relationships.
413
00:26:16.351 --> 00:26:29.455
So I would go door knocking on lots of property management companies, real estate offices, bringing your business card and talking to them because a lot of times they're looking for somebody that's a one-stop, just a handyman that they can use on their properties.
414
00:26:29.735 --> 00:26:30.415
That's my two cents.
415
00:26:30.775 --> 00:26:40.797
I guess that'd be the easier way to go for recurring revenue and customers bringing me work and not having to keep going out and finding new customers and new customers.
416
00:26:40.917 --> 00:26:48.979
And it might be too bad, like at the beginning, you kind of take on both because running the ads or reaching out to your personal Rolodex might immediately get you busy on the residential side.
417
00:26:49.059 --> 00:26:52.920
And then just over time, build that book of business on the commercial side, right?
418
00:26:52.940 --> 00:26:55.080
Because everyone wants those property managers.
419
00:26:55.480 --> 00:26:57.281
So it's a harder, it's a slower grind.
420
00:26:57.581 --> 00:27:01.582
I almost look at like one-time jobs almost as like your residential.
421
00:27:01.622 --> 00:27:06.203
And like long-term, I'm trying to build the recurring revenue or the more stable revenue of the commercial side.
422
00:27:07.104 --> 00:27:08.364
Just remember, everyone's going for that.
423
00:27:08.384 --> 00:27:08.904
Okay.
424
00:27:09.164 --> 00:27:09.925
All right.
425
00:27:10.345 --> 00:27:10.765
Well, thank you.
426
00:27:11.325 --> 00:27:13.326
Okay, Eddie says, great insight, Mike, thanks to you.
427
00:27:13.366 --> 00:27:14.086
Another question for you.
428
00:27:14.226 --> 00:27:19.989
If you're running a two-man crew, mowing and landscape, what's a good benchmark for that crew to produce in revenue daily?
429
00:27:20.129 --> 00:27:21.490
So I wouldn't think in terms of revenue, Eddie.
430
00:27:21.650 --> 00:27:23.831
I would think in terms of efficiency score.
431
00:27:24.151 --> 00:27:27.353
So typically, I want everyone over 70% efficiency score.
432
00:27:27.653 --> 00:27:32.735
That means on a 10-hour clocked day, seven budget hours of work is getting done.
433
00:27:33.115 --> 00:27:35.737
If you have an elite team, they'll be over 90%, very little waste.
434
00:27:36.837 --> 00:27:43.479
If they're under 50% efficiency, I have yet to see a home service business that's profitable and scalable with a 50% or less efficiency score.
435
00:27:43.819 --> 00:27:45.320
Budget hours divided by clocked hours.
436
00:27:45.520 --> 00:27:53.723
And so that's what I'd be focused on because how do I make them more revenue per day is I just increase their hourly rate, the cost per budget hour.
437
00:27:53.763 --> 00:28:00.705
So if someone's like, well, my guys are working super hard, but they're making $40 an hour per budget hour, we're not going to make much revenue.
438
00:28:00.865 --> 00:28:07.969
If they're making $150 per budget hour as skilled laborers or you're really in profit mode, the revenue is inconsequential.
439
00:28:07.989 --> 00:28:09.129
It's how efficient are they?
440
00:28:09.469 --> 00:28:11.470
That's really the thing that we want to track.
441
00:28:12.011 --> 00:28:14.692
Michael says, I have been doing research in my market.
442
00:28:14.712 --> 00:28:18.874
It appears that my main competitors do everything from weed control, fertilization, any service you can think of.
443
00:28:19.174 --> 00:28:24.477
Is it an advantage to be starting out in the market and just offer a basic mowing, clean up, small project, clean, cleaning gutters?
444
00:28:25.278 --> 00:28:30.123
I think in general, you'll penetrate the market faster if you specialize because you'll get good at it.
445
00:28:30.403 --> 00:28:32.385
You'll figure out what works in terms of marketing faster.
446
00:28:32.806 --> 00:28:39.533
The generalization usually helps with churn because the more services I can offer to someone, the less likely they're going to try someone else out.
447
00:28:39.853 --> 00:28:45.620
And the likelihood that person has the service that I offer is high, especially if they're an established player and they could potentially take my customer.
448
00:28:45.900 --> 00:28:54.004
And so many times I actually see growth happens in terms of service count as a way to lock in and reduce churn of my customer base.
449
00:28:54.284 --> 00:28:55.644
So they stop using other providers.
450
00:28:55.925 --> 00:28:58.906
A churn is always lower for customers that use more of your services.
451
00:28:59.406 --> 00:29:06.849
And so I would look at as much of a retention tool, but to get started, I would focus on one thing because you can get really good at it from a sales operations and admin perspective.
452
00:29:07.230 --> 00:29:12.212
If you start adding fertilization, weed control, and all these other things, I've got to train admin on.
453
00:29:12.452 --> 00:29:13.794
know how to handle all those calls.
454
00:29:14.174 --> 00:29:20.283
I've got to sell all these different verticals, which are all very different when it comes to how you're going to run these ads.
455
00:29:20.684 --> 00:29:27.153
So I would focus on one, I'd go deep, make it large enough to where now when I go roll out the fertilization department, it's a $200,000 line of business.
456
00:29:28.074 --> 00:29:35.388
Not rolling out from day one where it's 15,000 M of spending, an extra truck, an extra spray tank, way more operational complexity.
457
00:29:35.569 --> 00:29:35.789
Awesome.
458
00:29:35.809 --> 00:29:36.410
Well, thank you all.
459
00:29:36.470 --> 00:29:37.232
I really appreciate it.
460
00:29:37.292 --> 00:29:45.608
Whether or not you join HomeWorks, just want to say thank you for being part of the community and getting back to everyone on YouTube and everything we're going to do with the books and everything.
461
00:29:45.628 --> 00:29:46.570
I really do appreciate it.
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In this video, we're going to be going over when it makes sense to actually create departments inside of your home service business for different service lines, or even for commercial versus residential.
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There's a whole bunch of other questions that I had with several entrepreneurs inside of HomeWorks.
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And if you'd like to be on one of these calls and ask me questions, go ahead and sign up today, go to home.works and join the weekly masterminds.
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So we're unapologetically generalist.
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We're going from, I'm looking at the spread of our services.
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It's massive.
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We have our hands in everything.
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We're an all-in-one stop, one-stop shop for apartment complexes.
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But my big question is, as we grow, we have to specialize.
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And we have to specialize, certain teams can specialize in, right?
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So we build basically a division of carpet cleaning, a division of gutter cleaning, a division that is specifically for...
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turnover maintenance, turnover repairs, so they'll allow technicians to hone their craft, specialize, get faster, get more efficient.
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Have you seen companies try to bridge that gap?
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And what are some of the keys in order to do that well?
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Or what are some of the things you've seen that they just failed miserably trying to get from generalists to more build departments?
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Great question.
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Quick question, just so I can clarify, Matt, how many technicians do you have in the field?
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Seven at once, yeah, seven guys.
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Yeah, so I think when it comes to handyman, a lot of people go into divisions too quickly, and by doing that, they splinter the amount of people in each division.
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meaning you only have one or two people that know how to do specific tasks.
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And so you actually create key man risk.
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And so until you have a certain size, divisions actually make way more key man risk because if one person leaves or maybe someone calls out sick, all of a sudden we're in a world of hurt.
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And so the generalist concept, it's the same thing as actually the admin where I also require them to do all these different things.
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I can't really get just someone for phones, just someone for payroll, just someone for AR, just someone for AP.
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I can't do that until I'm large enough.
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I think what I've seen people do is they hit up against seven, eight employees.
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They always feel the pressure.
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They'll do the visions as a Band-Aid fix instead of how can we simplify and standardize this and then be able to get to 20 technicians and then do the divisions and actually like three, four, five people in an apartment, for example.
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Yeah.
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like outdoor, indoor, commercial, residential.
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You can start breaking up and splintering it however ways you want.
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But I think that most people could take your current services.
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Okay, let's see we offer 15 things.
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What are the two things that are constantly pulling you back in and constantly pulling in specific people that the generalists can't get done?
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Those would be the things I'd be trying to chop because I then, once I do that, I can then triple or quadruple the business in size doing what can be more standardized.
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And in your business, it's less about simplification and more about standardization.
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Cause like simple doesn't happen.
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It's like, it's all over the way.
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But can we standardize what kind of gutters, which ones we're able to touch, which one we're not gonna touch.
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And you know, the 20% that causes 80% of the problems.
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And if you've cut that, usually I see handyman because the claim to fame is we do everything.
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They box themselves in to basically usually a seven to 10 person shop because everything ultimately still hinges on one person knowing everything.
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And so I would try to remove those bottlenecks and then scale it to the point where then dividing and making the divisions is actually permissive.
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Perfect.
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That really helps.
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Appreciate that.
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You got it.
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Eddie says, when it comes to buying trucks, I've always wanted newer to avoid short-term maintenance and having a unit out of service.
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Do you prefer getting trucks cheaper for a better price or newer units?
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Yeah, the video I made on Tuesday, I went over this in-depth about new versus used.
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If you're going to be in business for a long time and you do not have a lot of mechanical experience, new starts to make a lot more sense.
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because you pay less in maintenance, less in downtime.
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The reason you don't hear me talk a lot about it online is because most businesses don't last five years.
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And so if you're going to go buy new and two years got a business, you just took a huge depreciation hit that you might not get if you bought a 10-year-old truck.
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And so publicly, I will say,
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usually much more around used because the vast majority of people listening to me will not be in business in five years.
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But for those that are more established, and this is where we start doing above a million, you've been established, you know, you're gonna be doing this for a long time buying new when you look at cost per mile starts to make a lot of sense.
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All right, Daniel, go for it.
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I was thinking of actually implementing P4P just to bring up the motivations.
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I'm going to be bringing a lot of new hires.
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And if I want to sell them on the vision of the company and where we're going, I think P4P would help a lot.
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Right.
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Yeah.
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I agree.
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Do you have a specific question?
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Or do you need me to pick?
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Yeah.
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How would I go introducing it to the whole team, everything?
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Yeah.
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I think based on what I remember us talking about before, I still think personally, I probably wouldn't be yet.
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Okay.
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Mostly because if you have not done budget hours, you're basically asking for a mutiny in three to six months when they think that budget hours are off, you're screwing them on money, you're not estimating jobs correctly, et cetera.
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Personally, I would just make sure that what you're paying them per hour is less than or at what your base pay on P4P is going to be down the road.
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Okay.
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So that way, when you do implement P4P, you're like, hey guys, guess what?
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Here's this new thing where you can make more money and there's no downside.
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Now, the problem is if you start paying them $25, $26 an hour, for example, and they're like, all right, base pay on P4P is 22.
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They're gonna be like, whoa, whoa, whoa.
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There's downside here?
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And so I would just focus on
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budget hours and you can track it like getting in the software that this is all big rocks i want you to focus on so when you do p4p you're confident because like budget hours are accurate you already know their approximate efficiency score you already know what your top performers produce in a day you already know that your estimating is accurate you can even connect homeworks to p4psoftware.com without them even knowing bring all the data automatically with the sync and just be tracking all their like even if you did i've done the
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There's actually a couple of people doing this.
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I saw this the other day.
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They're not running P4P.
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They're not paying their employees by P4P, but they do it.
86
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They sync all the data over to P4P so they can have a really easy dashboard of who's the most efficient employee.
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And it's the only reason they use it because they just bring over the budget hours.
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It brings their base payover.
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It brings all their clock times and everything over automatically.
90
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Well, I can do that then.
91
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Also, like I was thinking if I didn't know my budget hours that well, what I could do even with the PPP software is just put like the total amount of revenue and then just, you know, 33%, you know, whatever it is.
92
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Yep.
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That's called simple mode.
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Yeah, simple mode.
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Simple mode.
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Yep.
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00:06:30.474 --> 00:06:34.037
But you're saying still just figure it out completely on my budget hours.
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How I would pitch this is like, hey, guys, this year I'm trying to figure this thing out.
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I want to be able to pay you more.
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I want to pay you based on how hard you work.
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Here's what our base pay is going to be.
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But by the end of 2026, I'm going to figure out a system that if you work harder, you can make more money.
103
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Okay.
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Then that gives you permission to figure the numbers out, connect over their P4P.
105
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And then one day you're going to go on a team meeting and be like, hey, guys, by the way, most of you have been earning about this much on P4P versus what you're making down here.
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This system is only upside for you.
107
00:07:01.461 --> 00:07:02.722
And now you log into P4P.
108
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As you complete jobs and homeworks, you're going to see how much money you're making in live time inside the P4P mobile app.
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Mm-hmm, mm-hmm.
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That's the most, like if you have route-based jobs or any sort of drive time, the most, the biggest reason to have P4P software, like the app, is that they can go from HomeWorks where they're clocking out jobs, doing everything at normal.
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They hop over to P4P and just watch their thermometer because it shows all the revenue they can earn for the day based on jobs assigned to them inside HomeWorks.
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00:07:27.255 --> 00:07:29.736
And as they complete them, they see that revenue being earned.
113
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It's just like a huge morale booster for the team.
114
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Okay.
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Okay.
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Okay.
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Thank you so much, Mike.
118
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You got it.
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All right, this is a great question from Daniel, and I want to dive into this because recently we've heard a lot about fuel prices over the past few months, and I've seen people freak out about fuel prices and headlines, and it's in the news, and it's politics, and it's economics, and people are freaking out.
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And so I ran analysis on over 600 home service businesses and their financial statements, and what's crazy is that on average –
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00:08:03.208 --> 00:08:07.110
about 4.5% of the revenue was being spent on fuel.
122
00:08:08.011 --> 00:08:09.512
Okay.
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00:08:09.712 --> 00:08:11.893
Not nothing, but it's only 4.5%.
124
00:08:12.714 --> 00:08:21.559
In comparison to wages, which made up 57% of the revenue, 57% of it was going out the door to wages and labor expense.
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00:08:21.999 --> 00:08:24.741
And so this question that Daniel's having around...
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00:08:25.261 --> 00:08:29.242
budgeted hours, pay for performance, is in my opinion, the most important thing.
127
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That's why inside of HomeWorks, we talk about budget hours for every single visit.
128
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It's on the calendar, it's on the dispatch board, it's when you create every single visit.
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We're tracking your budget hour capacity because this is the thing that actually moves the needle.
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Making your crew efficient, having software and systems, it's going to move the business dramatically more than a couple percentage points based upon fuel prices.
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And so I encourage you to not buy into the hype,
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Not to get distracted with all the noise and just focus on what actually moves your business forward, which for home service businesses, it is making your labor efficient.
133
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Use budget hours, use pay for performance, and use homeworks as your software.
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00:09:06.528 --> 00:09:07.610
Matt, go for it.
135
00:09:07.650 --> 00:09:09.032
We got a two-person Q&A today.
136
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Let's go.
137
00:09:10.974 --> 00:09:16.660
Yeah, I got another one on searchability of the time card app.
138
00:09:16.740 --> 00:09:19.063
I don't even know what the term is for homeworks.
139
00:09:19.403 --> 00:09:31.155
So we do a lot of time plus materials work with property management type items or turnover maintenance for rental properties, that sort of thing, where it's a time plus materials charge.
140
00:09:31.736 --> 00:09:33.518
And we rely heavily on...
141
00:09:34.598 --> 00:09:38.020
QuickBooks workforce right now for that.
142
00:09:38.321 --> 00:09:45.024
So we pull up reports and our accountant who's in the chat, Jennifer, she's our backend bookkeeper.
143
00:09:45.064 --> 00:09:48.907
She does a lot of that and goes through all the minutia to make sure we don't miss anything.
144
00:09:49.287 --> 00:09:52.909
How does that work with homeworks and your time tracking?
145
00:09:53.197 --> 00:10:01.548
Yeah, so what's nice is, assuming they're using a company device or they've enabled tracking their device, for us, we just require it for all our technicians.
146
00:10:01.949 --> 00:10:05.313
I know some people get their own devices for the company.
147
00:10:05.353 --> 00:10:08.797
We have breadcrumbs throughout their entire day of where they're at.
148
00:10:09.258 --> 00:10:12.260
And so you can always use that as a way to prove their time tracking.
149
00:10:12.580 --> 00:10:16.002
It's helpful if they forget to clock in and out, for example.
150
00:10:16.322 --> 00:10:18.944
You can just see where their truck was, when they showed up, when they left.
151
00:10:19.124 --> 00:10:20.465
All of that's in the breadcrumbs.
152
00:10:21.246 --> 00:10:25.028
The second thing is every single job on the Field Force mobile app, they have to clock in and out of.
153
00:10:25.588 --> 00:10:32.953
And it will remind them if after five minutes they enter the geofence around that property, if they haven't clocked in, it will remind them.
154
00:10:33.233 --> 00:10:34.934
It'll pop up and do a push notification.
155
00:10:35.394 --> 00:10:36.235
Same thing when they leave.
156
00:10:36.355 --> 00:10:37.176
It'll be like, hey, you left.
157
00:10:37.496 --> 00:10:38.436
Did you mean to clock out?
158
00:10:38.797 --> 00:10:40.358
So it reminds them kind of twice there.
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One thing that we, because that feature just got added a few weeks ago, Matt.
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What we're trying to do in the future is also allow that, because we already have the data, when they entered the geofence, when they left, as suggested clock in and out times on the dispatch board to your home office in case they don't clock in and out.
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So in the event that someone does forget and they also don't see the notification and somehow it still happened, in order to prevent you from having to go and see the map and see, okay, when do they actually leave there?
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We want to be able to present that information right on the dispatch board and be like, okay, that makes sense.
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They left the geofence.
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Okay, except at 348 they left.
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Nice.
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And so right now those are kind of the three ways that we sort of triangulate making sure that's accurate.
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Awesome.
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And a quick follow-up on that is, so some of our techs, I have my, you know, A team, B team on certain jobs, right?
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They specialize in a few things they're really good at.
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One of the things that I'd love to be able to do, and I know it's possible, I just haven't been able to figure it out.
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I'd like to see how I work in homeworks is how to analyze based on job type, the productivity level and how quick they are and how efficient they are and be able to bring that to them and performance reviews and those types of things.
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And,
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Just to encourage, help them.
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How can we help them solve some things or shift them to a better area of strength?
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How does that work within homeworks?
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Because I think if I've heard you, I think you're pretty big on that type of analytics.
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Yeah, so budget hours is kind of like, I would say the thing that's through and through on homeworks.
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like budget hours versus actual hours, i.e.
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the efficiency score is the metric to be able to do this.
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Like in one-on-ones, in our performance, in our weekly huddles, in our daily huddles, like is all we talk about is efficiency score.
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So that's why like when you see budget hours on every visit, every single meeting, every single job, that's why, that's the number that's gonna be the easiest to use with them is like, hey, did you hit budget hours?
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That's like the easiest, cause they can see it.
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It goes red on their device as soon as they start going over that time.
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The more granular approach is actually tracking efficiency score.
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and actually having a scoreboard or compensation tied to that and moving in the direction of more like a pay for performance situation, that's when you would actually take the budget hours and the information there and actually utilize it to change comp.
186
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But that's what I would be using is really, it'd just be budget hours divided by clocked hours, there's efficiency score.
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For your type of work where they're tracking their own time, everyone's like, oh, well, like,
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Now, all of a sudden, efficiency doesn't matter.
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It's like, well, like, there's still a lot of drive time, unload time, material pickup that can really be squeezed.
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And so we still encourage a lot of the handyman that use home or still track your budget hours, still track time on jobs, because it's still a great mechanism to improve their performance, as well as be able to compare and contrast, you know, A versus B versus C team type situation.
191
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Like, what are the actual efficiencies?
192
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And then also being able to budget, like, how much can I pay them?
193
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Because they're 10% more efficient, right?
194
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Nice.
195
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Appreciate it.
196
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Thank you.
197
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The one thing it doesn't do, Matt, right now, just to go back on your point, sorry, is there's no report now that it's like, hey, what's our efficiency score on bathroom remodels versus kitchen installs?
198
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That right now, there's no granular.
199
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around that it's much more around the individual days the weeks you can pull the whole dispatch board up and see all the budget hours on every single visit on the dispatch board as you see them it'll go red if it goes over budget hours it'll go green if they complete the job it's above budget like they beat budget hours so
200
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Every industry is a little different.
201
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How do I want to present efficiency to my crew?
202
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We track every minute.
203
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In some cases, I've seen handyman, it's like, hey, let's just track percentage of jobs that beat budget hours, for example, or on time and on target, on budget kind of thing.
204
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Yeah.
205
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So the level of granularity you use and how much you comp on it or give profit sharing or whatever it might be, it's kind of up to you.
206
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We don't really do the reporting right now, though, based upon service.
207
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Just to be clear, I don't want to false expectation there.
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I have seen some people export the data, put it into like a chat to be tea and then do that analysis.
209
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But we don't have like a quick, easy way like, hey, I want to know what my efficiency is on these three different services across the entire team.
210
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We don't have that now.
211
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Got it.
212
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Thank you.
213
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Daniel, you're up.
214
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I'm gonna hire my first admin this season.
215
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I had like a kind of a customer service person overseas, like a VA last season.
216
00:14:51.247 --> 00:14:55.970
And I watched your video about how you say about VA versus hiring in-house, right?
217
00:14:56.370 --> 00:14:59.231
And you mentioned how it's like a lot easier training in-house, right?
218
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But it's always more expensive, right?
219
00:15:02.313 --> 00:15:08.159
But I just wanted to know, like, what's your advice on, like, setting up my admin this season for success?
220
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Right now, my company is from, we did 1.1 last year.
221
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And my goal this year is to do around two.
222
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We just do lawn care, right?
223
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What system should I put in place, like SOPs, like, to make her succeed in her role?
224
00:15:20.092 --> 00:15:22.935
Do you already have an office, Daniel, that you pay ShopPrint for?
225
00:15:23.475 --> 00:15:31.184
Um, currently I, this season I'm getting a office container and I'm just going to run out of a generator and then I have like all my trucks there.
226
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Okay.
227
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Yeah.
228
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Um, does it, is it like equipped though for an office?
229
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Uh, yeah.
230
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Like it's going to be a office container.
231
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It's going to be nice.
232
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I'm going to decorate and make a nice, make a, you know, okay.
233
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But is it like a shipping container or like a portable?
234
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A shipping container.
235
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Oh, wow.
236
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Okay.
237
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Let's go.
238
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But it has like – it's insulated.
239
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It has AC.
240
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Okay.
241
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It has heating.
242
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Yeah, we did that back in the day.
243
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Okay.
244
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Yeah.
245
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As long as your rent's not going crazy, I think that if you're going from $1 million to $2 million, I think having an admin in-house and full-time is probably worth it.
246
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Let's assume they're $70,000 a year.
247
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That's –
248
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7% of last year's revenue, but 3% of next year's revenue.
249
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I think I would make that bet that you could utilize them.
250
00:16:12.875 --> 00:16:17.596
I think the thing that you can be careful of is not having systems in place for them to actually be efficient.
251
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And so if you have those things nailed down, I would try to bring them in-house.
252
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And then as you scale past two million, they could be your office manager.
253
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And then when you get a VA, whether it be in the US or abroad,
254
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there's someone else managing them and making sure they actually are set up for success so like as you scale you could go virtual again but the first office manager really being in person learning from you learning from the crew being there is highly rewarding okay okay i get what you're saying so like make train them as much as they can make them succeed and then make them replace their role automate as much as they can build systems so and then they can get replaced and move up right okay
255
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And then, too, if you get someone and they're like, hey, I'd like to eventually work hybrid, you say, great.
256
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As you create systems in all these departments and you get people virtually to be able to handle them, you can move to where you only come in the office once or twice a week, for example.
257
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That would be a perk for them to move hybrid.
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as they employ people that are virtual.
259
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And you're probably not gonna need that person, but once you hit two million, they're gonna need an assistant, right?
260
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So you would reward inside their initial 30, 60, 90, one 80 and 365 in their onboarding doc.
261
00:17:23.661 --> 00:17:38.865
I would bake in there, their comp stuff, benefits like working hybrid, as well as the expectations that, hey, as we hit these revenue markers, I expect you to be getting someone to be able to handle phones, someone to be able to handle payroll and QuickBooks, like bake that all into their onboarding.
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document.
263
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Okay.
264
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Okay.
265
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So when they bake it all into the onboarding document, make sure that everything's clear, right?
266
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Okay, cool.
267
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And then like, what do you think?
268
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Like my goal is here, 1 million to 2 million, right?
269
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Like I'm going to hire her, right?
270
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It's going to be around the 60, 60 base.
271
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And then,
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I was thinking, because I also was, I might want to go as well, like with a customer service rep in the Philippines, just, you know, pay like six, seven, eight dollars an hour, right?
273
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Or whatever it is, just to handle like a couple hours of customer service calls in case like my admin, if she's answering, like, you know, she's doing a lot of stuff, she can, the customer service can help out, right?
274
00:18:16.688 --> 00:18:21.893
Yeah, so I would bake that into probably their 90-day is getting that person set up.
275
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Okay.
276
00:18:22.493 --> 00:18:26.997
Because you don't want to – if they both start at the same time you're asking for chaos, then both of them will fail.
277
00:18:27.758 --> 00:18:41.870
If you get the first person established with systems and they learn about the role, they learn about the process, how you do things, the industry, how you want your sales process to go, et cetera, then you have baked into their 30, 60, 90 exactly – hey, you're supposed to be –
278
00:18:42.210 --> 00:18:44.791
looking for a VA after 30 days, I expect you to hire them.
279
00:18:45.111 --> 00:18:46.091
30 days after that, I expect it.
280
00:18:46.251 --> 00:18:48.252
Like, so just create a really solid roadmap.
281
00:18:48.352 --> 00:18:56.014
Everyone over indexes on onboarding when the actual job description should just have the 30, 60, 90, 180 and a 365.
282
00:18:56.234 --> 00:18:59.335
And then just the triggers for when their comp goes up where they get other rewards.
283
00:18:59.575 --> 00:19:00.075
Okay, wow.
284
00:19:00.255 --> 00:19:02.296
I never looked at like that, 30, 60, 90.
285
00:19:02.716 --> 00:19:06.876
So creating a roadmap of vision so they can know how to succeed.
286
00:19:06.916 --> 00:19:07.196
Okay.
287
00:19:07.516 --> 00:19:16.058
The reason you're willing to pay more for that first admin person and you're going to kind of overpay, quote, unquote, is going to be that they set up admin for you.
288
00:19:16.378 --> 00:19:19.599
And so you just make sure that them leaving doesn't handicap the business.
289
00:19:19.819 --> 00:19:21.159
So they've got to document everything.
290
00:19:21.179 --> 00:19:21.979
They've got to have systems.
291
00:19:21.999 --> 00:19:23.479
They've got to have screen recordings, et cetera.
292
00:19:23.779 --> 00:19:26.160
But then bake it into where you don't hire the VA.
293
00:19:26.380 --> 00:19:26.820
They do.
294
00:19:27.300 --> 00:19:28.581
Okay, so another question I have.
295
00:19:28.601 --> 00:19:36.368
So every season, like here in Canada, I actually don't do any winter services just because I don't really like snow and liability is too high over here.
296
00:19:37.269 --> 00:19:42.013
But every season I struggle with like getting new guys, you know, filling up the roles again, right?
297
00:19:43.114 --> 00:19:46.497
This past season I had on like about eight guys.
298
00:19:47.077 --> 00:19:48.439
About five of them are coming back.
299
00:19:48.459 --> 00:19:49.700
So I'm going back to school and stuff.
300
00:19:50.140 --> 00:19:51.701
Actually six are coming back this season.
301
00:19:52.642 --> 00:19:54.684
And this year I have, I'm going to have,
302
00:19:55.184 --> 00:19:56.244
seven, eight trucks on the road.
303
00:19:56.524 --> 00:20:00.365
So I need about like, you know, 12, 14 guys, right?
304
00:20:01.326 --> 00:20:02.926
I need to do a lot of hiring, right?
305
00:20:02.946 --> 00:20:05.667
So what's your most efficient, most effective way on hiring?
306
00:20:05.687 --> 00:20:09.208
I already posted a lot on Indeed, but what's your take on that?
307
00:20:09.528 --> 00:20:09.688
Yeah.
308
00:20:09.708 --> 00:20:10.368
So two things.
309
00:20:10.428 --> 00:20:17.650
First off, you can set up customer types inside of Homeworks and just change it to a custom name and you just call them applicants.
310
00:20:18.070 --> 00:20:22.652
So that way, when an applicant comes in, you could just put them inside of there and set them up inside of an automation.
311
00:20:22.792 --> 00:20:30.834
So, for example, you can set up in-person meetings that are actually called in-person interviews for applicants and set them up on a reminder sequence to actually show up to an interview.
312
00:20:31.134 --> 00:20:31.514
Same thing.
313
00:20:31.695 --> 00:20:33.655
We do the same thing when it comes like first day of work.
314
00:20:33.775 --> 00:20:38.957
After someone accepts a job, I'm going to set them on an automation sequence to get like they learn about paper performance.
315
00:20:39.057 --> 00:20:39.297
They learn.
316
00:20:39.297 --> 00:20:40.337
They learn about open book management.
317
00:20:40.357 --> 00:20:42.978
They learn about the 3F program, what we're about at Augusta.
318
00:20:43.398 --> 00:20:46.119
All of that is trickle-feated to them before their first day.
319
00:20:46.540 --> 00:20:49.981
And you can do that by just changing the applicant or the customer type.
320
00:20:50.681 --> 00:20:52.862
You can customize it to be applicant.
321
00:20:53.702 --> 00:20:54.402
That'd be the first thing.
322
00:20:54.482 --> 00:20:56.623
Second thing is use Indeed Automations.
323
00:20:57.063 --> 00:20:59.244
If you're paying for an ad, you usually get it already.
324
00:20:59.784 --> 00:21:03.966
And that is where it automatically is going to send them a text, an email, et cetera.
325
00:21:05.006 --> 00:21:09.568
And then I would use those to actually send them to a video application.
326
00:21:09.868 --> 00:21:18.312
Because right now, especially with everything in the current labor market, you're going to actually have a lot of applications on Indeed.
327
00:21:18.712 --> 00:21:23.654
So we usually get 50 to 60 applications over a weekend at one of our locations if we put up a job ad.
328
00:21:24.215 --> 00:21:26.295
I do not want to go through 50 or 60 applications.
329
00:21:26.896 --> 00:21:29.877
I don't want to send 20 interview requests and have five people show up.
330
00:21:30.137 --> 00:21:36.778
So what I'd recommend is use Indeed, use the automation, then send them a link to ask them specific interview questions via video.
331
00:21:36.798 --> 00:21:41.159
Because from that video, you already know the top two or three people out of those 50.
332
00:21:41.559 --> 00:21:52.982
And instead of inviting 20, blocking off two days of your work schedule to do interviews, and then five people showing up and two of them being good, you'll just get the five people that are good to submit videos, and out of them, you'll choose the two good ones.
333
00:21:53.182 --> 00:21:59.064
So this didn't work back in 2020 and 2021 because we were all just like, if someone could just have a heartbeat, we'd hire them.
334
00:21:59.584 --> 00:22:06.567
Now you're gonna be overwhelmed with so many applicants that you actually make bad hiring decisions because you're just overwhelmed with the number of applications.
335
00:22:06.707 --> 00:22:09.728
And so you actually need to create more filters in the hiring process.
336
00:22:09.968 --> 00:22:11.769
And I would implement video.
337
00:22:11.789 --> 00:22:13.650
We use SparkHire, but like,
338
00:22:14.170 --> 00:22:17.272
We get it for all our owners for free, so they don't pay 500 bucks a month.
339
00:22:17.392 --> 00:22:19.673
I would not use SparkHire if you're just doing that many employees.
340
00:22:19.713 --> 00:22:23.895
It's pretty expensive, but you could very easily have like a Google form.
341
00:22:24.295 --> 00:22:28.597
And again, that link to the Google form could just be sent automatically from Indeed as soon as they apply.
342
00:22:28.617 --> 00:22:31.638
So you apply on Indeed, automation triggers out, sends them a text message.
343
00:22:31.898 --> 00:22:33.219
Here's a link to a Google form.
344
00:22:33.499 --> 00:22:37.621
Please answer these two or three questions and submit the videos right from your phone.
345
00:22:37.961 --> 00:22:39.222
Google Forms isn't so bad.
346
00:22:39.382 --> 00:22:41.303
It's not like the perfect user interface.
347
00:22:41.663 --> 00:22:46.325
but it's good enough for them to open it up, make a video of themselves, attach it and submit it back to you.
348
00:22:46.725 --> 00:22:47.245
I would do that.
349
00:22:47.585 --> 00:22:47.845
Okay.
350
00:22:48.066 --> 00:22:48.266
Okay.
351
00:22:48.306 --> 00:22:48.626
Thank you.
352
00:22:48.786 --> 00:22:48.986
Yeah.
353
00:22:49.006 --> 00:22:50.587
So automating the hiring role.
354
00:22:50.607 --> 00:22:51.347
Thank you so much, Mike.
355
00:22:51.747 --> 00:22:52.307
Yeah, you got it.
356
00:22:52.427 --> 00:22:53.248
Patrick, go for it.
357
00:22:53.648 --> 00:22:54.208
Awesome, man.
358
00:22:54.388 --> 00:22:56.689
I've been a longtime follower and lurker here.
359
00:22:57.409 --> 00:22:59.050
I just, I just, my business.
360
00:22:59.070 --> 00:22:59.390
Let's go.
361
00:22:59.790 --> 00:23:01.533
Yeah, I just started my business in September.
362
00:23:01.593 --> 00:23:03.836
I was a fireman working for the man.
363
00:23:03.856 --> 00:23:07.721
I was actually doing some pretty cool stuff, but got a different plan for me.
364
00:23:07.741 --> 00:23:08.562
So I'm just getting started.
365
00:23:08.622 --> 00:23:09.363
I'm wondering a lot.
366
00:23:09.583 --> 00:23:12.507
And I'm actually looking at starting a handyman business.
367
00:23:12.607 --> 00:23:14.029
So maybe Matt could actually help me.
368
00:23:15.420 --> 00:23:20.884
I guess my biggest thing right now is just getting started, just trying to get a client list going.
369
00:23:21.004 --> 00:23:28.109
And so any word of advice you can give me for that, I guess I do need to go door to door and kick some doors in and meet people for sure.
370
00:23:28.189 --> 00:23:29.150
I'm looking forward to doing that.
371
00:23:29.310 --> 00:23:34.193
But property managers, you know, going around and talking to all those people I need to do.
372
00:23:34.233 --> 00:23:36.435
But just any advice I can get would be awesome.
373
00:23:36.615 --> 00:23:50.000
Yeah, one of the things I think when it comes to handyman is you got to really determine are you going commercial you going residential and so because if you're doing residential, yeah, you're going to door knock you're going to run ads your websites and look totally different.
374
00:23:50.300 --> 00:23:51.461
I just all the time, especially when you're.
375
00:23:52.201 --> 00:23:57.163
electrical HVAC, et cetera, it's like their website looks residential and then they go into commercial.
376
00:23:57.183 --> 00:23:59.224
It's like, you have to have a clear brand image.
377
00:23:59.244 --> 00:24:01.825
When the customer thinks I need something, they stop finding on Google.
378
00:24:01.885 --> 00:24:11.629
When they come to your site, it screams residential or commercial because the best way to get rid of a customer and reduce your conversion rate is for them to think this is not for me.
379
00:24:12.009 --> 00:24:13.889
And so I would choose one of those lanes.
380
00:24:14.250 --> 00:24:16.270
Doing both at the beginning can be very difficult.
381
00:24:17.051 --> 00:24:17.571
I would also,
382
00:24:18.211 --> 00:24:20.492
I'm assuming you have tons of handyman skill.
383
00:24:21.233 --> 00:24:24.595
And if you didn't, I'd say go get a job because handyman is one of those things.
384
00:24:24.615 --> 00:24:25.755
There's so much variety.
385
00:24:25.795 --> 00:24:26.696
You've got to know what you're doing.
386
00:24:26.716 --> 00:24:28.277
And there are so many handy businesses.
387
00:24:28.317 --> 00:24:29.437
They have such a bad job.
388
00:24:29.457 --> 00:24:29.998
It's so bad.
389
00:24:30.038 --> 00:24:30.578
It's so horrible.
390
00:24:31.379 --> 00:24:35.941
And the good thing is it's like, hey, if you do a good job, you've got a lot of work coming in.
391
00:24:36.401 --> 00:24:40.524
And so I would really be very intentional about choosing residential versus commercial.
392
00:24:41.124 --> 00:24:43.406
and then choosing your brand around that.
393
00:24:43.666 --> 00:24:49.812
So being even like the logo, the website, your ads, it needs to speak to either of those consumers.
394
00:24:50.372 --> 00:24:57.638
So like putting a dog laughing is not gonna speak to a property manager as much as a much more commercial looking site and logo.
395
00:24:57.799 --> 00:25:02.883
And so I would be, you know, given that you're so early, I'd be very intentional which direction I wanna take that.
396
00:25:03.223 --> 00:25:08.628
Okay, I guess any advice on which way I might should go on that?
397
00:25:09.569 --> 00:25:17.558
So if you go commercial, it's much more who you know, property managers, contractors, large landlords, et cetera.
398
00:25:17.979 --> 00:25:22.905
If you're going the residential side, no one thinks about their broken toilet until they have one.
399
00:25:23.025 --> 00:25:23.986
And so then you –
400
00:25:24.146 --> 00:25:26.708
are going to go much more traditional advertising route.
401
00:25:26.929 --> 00:25:33.735
And if you're like, well, I don't know which one to go, then you might just start running ads to a site and see what comes to you and what sticks and what you like, et cetera.
402
00:25:34.215 --> 00:25:38.058
Uh, that is usually a pretty unprofitable time because you're figuring so much out at the same time.
403
00:25:38.499 --> 00:25:45.325
And usually it's hard to show yourself as the professional or like the expert when you're kind of testing out all the waters.
404
00:25:45.525 --> 00:25:45.765
Okay.
405
00:25:46.105 --> 00:25:47.166
Matt probably has something to add to that.
406
00:25:47.186 --> 00:25:47.647
Go ahead, Matt.
407
00:25:48.047 --> 00:25:48.647
Yeah, sorry.
408
00:25:48.668 --> 00:25:51.329
Just throw something in there for you, Patrick.
409
00:25:51.950 --> 00:25:59.154
If your personality is one that you liked, you'd like to meet a lot of people and you'd like to talk to a lot of people and you just get a lot of energy from that.
410
00:25:59.695 --> 00:26:01.356
I'd go the route of residential.
411
00:26:02.006 --> 00:26:08.548
If you are not so much a people person, you'd like to have a few, maybe seven to 10 relationships that you can manage.
412
00:26:08.808 --> 00:26:16.110
I would go the route of property management because then you'll be able to have a lot of work from a few people, few relationships.
413
00:26:16.351 --> 00:26:29.455
So I would go door knocking on lots of property management companies, real estate offices, bringing your business card and talking to them because a lot of times they're looking for somebody that's a one-stop, just a handyman that they can use on their properties.
414
00:26:29.735 --> 00:26:30.415
That's my two cents.
415
00:26:30.775 --> 00:26:40.797
I guess that'd be the easier way to go for recurring revenue and customers bringing me work and not having to keep going out and finding new customers and new customers.
416
00:26:40.917 --> 00:26:48.979
And it might be too bad, like at the beginning, you kind of take on both because running the ads or reaching out to your personal Rolodex might immediately get you busy on the residential side.
417
00:26:49.059 --> 00:26:52.920
And then just over time, build that book of business on the commercial side, right?
418
00:26:52.940 --> 00:26:55.080
Because everyone wants those property managers.
419
00:26:55.480 --> 00:26:57.281
So it's a harder, it's a slower grind.
420
00:26:57.581 --> 00:27:01.582
I almost look at like one-time jobs almost as like your residential.
421
00:27:01.622 --> 00:27:06.203
And like long-term, I'm trying to build the recurring revenue or the more stable revenue of the commercial side.
422
00:27:07.104 --> 00:27:08.364
Just remember, everyone's going for that.
423
00:27:08.384 --> 00:27:08.904
Okay.
424
00:27:09.164 --> 00:27:09.925
All right.
425
00:27:10.345 --> 00:27:10.765
Well, thank you.
426
00:27:11.325 --> 00:27:13.326
Okay, Eddie says, great insight, Mike, thanks to you.
427
00:27:13.366 --> 00:27:14.086
Another question for you.
428
00:27:14.226 --> 00:27:19.989
If you're running a two-man crew, mowing and landscape, what's a good benchmark for that crew to produce in revenue daily?
429
00:27:20.129 --> 00:27:21.490
So I wouldn't think in terms of revenue, Eddie.
430
00:27:21.650 --> 00:27:23.831
I would think in terms of efficiency score.
431
00:27:24.151 --> 00:27:27.353
So typically, I want everyone over 70% efficiency score.
432
00:27:27.653 --> 00:27:32.735
That means on a 10-hour clocked day, seven budget hours of work is getting done.
433
00:27:33.115 --> 00:27:35.737
If you have an elite team, they'll be over 90%, very little waste.
434
00:27:36.837 --> 00:27:43.479
If they're under 50% efficiency, I have yet to see a home service business that's profitable and scalable with a 50% or less efficiency score.
435
00:27:43.819 --> 00:27:45.320
Budget hours divided by clocked hours.
436
00:27:45.520 --> 00:27:53.723
And so that's what I'd be focused on because how do I make them more revenue per day is I just increase their hourly rate, the cost per budget hour.
437
00:27:53.763 --> 00:28:00.705
So if someone's like, well, my guys are working super hard, but they're making $40 an hour per budget hour, we're not going to make much revenue.
438
00:28:00.865 --> 00:28:07.969
If they're making $150 per budget hour as skilled laborers or you're really in profit mode, the revenue is inconsequential.
439
00:28:07.989 --> 00:28:09.129
It's how efficient are they?
440
00:28:09.469 --> 00:28:11.470
That's really the thing that we want to track.
441
00:28:12.011 --> 00:28:14.692
Michael says, I have been doing research in my market.
442
00:28:14.712 --> 00:28:18.874
It appears that my main competitors do everything from weed control, fertilization, any service you can think of.
443
00:28:19.174 --> 00:28:24.477
Is it an advantage to be starting out in the market and just offer a basic mowing, clean up, small project, clean, cleaning gutters?
444
00:28:25.278 --> 00:28:30.123
I think in general, you'll penetrate the market faster if you specialize because you'll get good at it.
445
00:28:30.403 --> 00:28:32.385
You'll figure out what works in terms of marketing faster.
446
00:28:32.806 --> 00:28:39.533
The generalization usually helps with churn because the more services I can offer to someone, the less likely they're going to try someone else out.
447
00:28:39.853 --> 00:28:45.620
And the likelihood that person has the service that I offer is high, especially if they're an established player and they could potentially take my customer.
448
00:28:45.900 --> 00:28:54.004
And so many times I actually see growth happens in terms of service count as a way to lock in and reduce churn of my customer base.
449
00:28:54.284 --> 00:28:55.644
So they stop using other providers.
450
00:28:55.925 --> 00:28:58.906
A churn is always lower for customers that use more of your services.
451
00:28:59.406 --> 00:29:06.849
And so I would look at as much of a retention tool, but to get started, I would focus on one thing because you can get really good at it from a sales operations and admin perspective.
452
00:29:07.230 --> 00:29:12.212
If you start adding fertilization, weed control, and all these other things, I've got to train admin on.
453
00:29:12.452 --> 00:29:13.794
know how to handle all those calls.
454
00:29:14.174 --> 00:29:20.283
I've got to sell all these different verticals, which are all very different when it comes to how you're going to run these ads.
455
00:29:20.684 --> 00:29:27.153
So I would focus on one, I'd go deep, make it large enough to where now when I go roll out the fertilization department, it's a $200,000 line of business.
456
00:29:28.074 --> 00:29:35.388
Not rolling out from day one where it's 15,000 M of spending, an extra truck, an extra spray tank, way more operational complexity.
457
00:29:35.569 --> 00:29:35.789
Awesome.
458
00:29:35.809 --> 00:29:36.410
Well, thank you all.
459
00:29:36.470 --> 00:29:37.232
I really appreciate it.
460
00:29:37.292 --> 00:29:45.608
Whether or not you join HomeWorks, just want to say thank you for being part of the community and getting back to everyone on YouTube and everything we're going to do with the books and everything.
461
00:29:45.628 --> 00:29:46.570
I really do appreciate it.
