WEBVTT
1
00:00:00.091 --> 00:00:08.014
Hey everyone, today I'm going to be giving you a 12 step process of how exactly you can build a $1 million business, a home service industry with $0.
2
00:00:08.054 --> 00:00:16.257
You don't need any money to get started, you don't need a ton of experience, and most home services you can start without a ton of equipment or huge amounts of skill.
3
00:00:16.357 --> 00:00:17.898
You just need to be able to work hard.
4
00:00:18.018 --> 00:00:19.779
Let's go ahead and jump right into it.
5
00:00:19.799 --> 00:00:22.760
First thing is we've got to define why a million dollars.
6
00:00:23.300 --> 00:00:26.822
Why do you want to build a $1 million business?
7
00:00:27.182 --> 00:00:39.528
In my opinion, in order to grow a seven-figure or $1 million business, that's going to be the thing that allows you to be able to actually build a company that is providing for you without you working in daily operations.
8
00:00:39.808 --> 00:00:51.234
For example, if I'm running a 10% profit margin business, and I mean net profit, in fact, I mean taking 10% out for you personally, okay.
9
00:00:51.454 --> 00:00:58.098
If I am trying to build this business, that means I'm going to get $100,000 out of the business every single year.
10
00:00:59.078 --> 00:01:04.541
And if I'm trying to do that on, say, $300,000 business, it's not enough to live.
11
00:01:04.941 --> 00:01:17.128
And the reason I'm only assuming 10% profit is because I want to be able to pay a general manager and other managers a significant amount of money so I don't have to be there every single day inside of the business.
12
00:01:17.148 --> 00:01:17.488
Right?
13
00:01:17.728 --> 00:01:19.569
I want to be able to show up when I want to.
14
00:01:19.749 --> 00:01:23.091
I want to be able to work on other investments or be able to travel.
15
00:01:23.431 --> 00:01:36.298
And so if I'm trying to build a $1 million business, I think that's the size you'll have to build it to to be able to afford management and profit sharing and compensation for your team to be able to run the business without you being there.
16
00:01:36.679 --> 00:01:37.879
And for everyone mocking 10%,
17
00:01:39.140 --> 00:01:39.881
I would just say this.
18
00:01:40.121 --> 00:01:45.144
Have you built a 10% profit margin business that runs without you ever being there?
19
00:01:45.384 --> 00:01:47.986
And every single day, you're able to take 10% of the revenue.
20
00:01:48.366 --> 00:01:49.647
That's really what it comes down to.
21
00:01:49.727 --> 00:01:50.888
Everyone mocks 10%.
22
00:01:51.308 --> 00:01:53.410
Honestly, if you don't have to be there, that's not a bad deal.
23
00:01:53.430 --> 00:01:53.770
You know why?
24
00:01:53.790 --> 00:01:57.513
Because you would build another one that also you get 10% every single year.
25
00:01:57.713 --> 00:02:05.058
So in my opinion, it's my opinion based upon me seeing thousands of home service businesses, I think you need to build a million-dollar business because
26
00:02:05.378 --> 00:02:08.001
And it might be a couple of locations that do 500,000 each.
27
00:02:08.381 --> 00:02:08.861
That's fine.
28
00:02:09.102 --> 00:02:20.212
But gross revenue, I think you need to build a $1 million business to be able to allow it to run without you and be able to afford the management required for that to happen.
29
00:02:20.652 --> 00:02:22.274
So first off, we defined.
30
00:02:22.514 --> 00:02:25.296
Now let's talk about number two, and that is pre-sale.
31
00:02:26.137 --> 00:02:32.999
If you're just getting started, you don't have a bunch of money to run Facebook ads or Google ads or YouTube ads or big banners.
32
00:02:33.079 --> 00:02:37.280
You don't even have the money to potentially go get registered and licensed and insured.
33
00:02:37.300 --> 00:02:38.920
You don't have the money for your trucks or equipment.
34
00:02:39.080 --> 00:02:42.701
We're assuming that you have exactly $0.
35
00:02:43.221 --> 00:02:44.042
So what can you do?
36
00:02:44.362 --> 00:02:45.382
You can go door knocking.
37
00:02:45.902 --> 00:02:47.262
You can go talk to your network.
38
00:02:47.783 --> 00:02:52.944
You can go talk to everyone on your Facebook account, on your social medias account, on
39
00:02:53.164 --> 00:02:56.088
all your personal groups that you might be in.
40
00:02:56.629 --> 00:02:57.931
This could be church groups.
41
00:02:58.331 --> 00:03:00.575
This could be online social media groups.
42
00:03:00.955 --> 00:03:06.683
Your whole goal here is to pre-sale, which means I'm going to go out and I am going to,
43
00:03:08.126 --> 00:03:12.687
Before I even have the equipment, before anything, I'm going to go sell jobs.
44
00:03:13.247 --> 00:03:18.729
And I'm going to be able to knock on doors and promise them the service that I am going to provide.
45
00:03:19.129 --> 00:03:21.150
Now, I'm not going to actually do the work.
46
00:03:21.590 --> 00:03:23.110
And I'm not going to just give them an estimate.
47
00:03:23.370 --> 00:03:25.151
This is the hard part about having zero dollars.
48
00:03:25.431 --> 00:03:27.171
You don't have the money to go get the tools.
49
00:03:27.611 --> 00:03:29.612
Like we are assuming we have zero dollars.
50
00:03:29.632 --> 00:03:29.852
Right?
51
00:03:30.112 --> 00:03:34.274
which means you have no money to even get the tools required to get your business started.
52
00:03:34.554 --> 00:03:37.036
You don't have any money to even do any advertising.
53
00:03:37.216 --> 00:03:38.536
But you know what you can do?
54
00:03:38.857 --> 00:03:40.597
If you don't have money, you have time.
55
00:03:41.158 --> 00:03:42.738
And so you could go knock on doors.
56
00:03:42.919 --> 00:03:43.559
Is it fun?
57
00:03:43.999 --> 00:03:44.279
No.
58
00:03:44.759 --> 00:03:55.365
But if you're going to get a business started from zero, it's going to require a lot more work and a lot more upfront effort than if you had the cash to just go spend a bunch of money on advertising.
59
00:03:55.385 --> 00:03:55.725
Okay.
60
00:03:55.885 --> 00:04:06.979
So I would first pre-sale, which means I'm going to go talk to people that I know, people that I already know, like, and trust me in my personal social groups and try to sell them on my service.
61
00:04:07.613 --> 00:04:09.914
Next thing I'm going to do, I'm going to collect prepayments.
62
00:04:10.454 --> 00:04:10.694
All right.
63
00:04:10.934 --> 00:04:16.937
The reason I need to get prepayments is because, like I said, I don't have any tools and I just need the basics.
64
00:04:17.477 --> 00:04:21.759
For example, if I was doing a landscaping business, I don't need to get an excavator.
65
00:04:22.379 --> 00:04:23.620
I don't need to even get a truck.
66
00:04:24.140 --> 00:04:30.723
I just need probably, let's look at a landscaping business, a rake, a blower.
67
00:04:32.724 --> 00:04:35.705
Let's just see, maybe some hand shears.
68
00:04:38.505 --> 00:04:43.349
Probably a bin, a tarp, maybe some gloves.
69
00:04:44.530 --> 00:04:48.473
This is probably all I need in order to be able to sell property cleanups.
70
00:04:49.194 --> 00:04:52.497
Breaking out their beds, pulling the weeds, trimming the bushes.
71
00:04:53.097 --> 00:04:59.743
All of this can be achieved with what I call my MVP, Minimum Viable Product Tools.
72
00:05:00.854 --> 00:05:02.995
My most valuable tools, that's what I'm going for.
73
00:05:03.195 --> 00:05:04.376
The ones that I must get.
74
00:05:04.896 --> 00:05:10.779
And I know that I can probably get a decent rake, blower, shears, bin, tarp, gloves, etc.
75
00:05:11.060 --> 00:05:12.500
For probably a few hundred dollars.
76
00:05:12.881 --> 00:05:13.601
Maybe $500.
77
00:05:13.621 --> 00:05:14.702
Let's just call it $500.
78
00:05:14.742 --> 00:05:15.502
Especially that blower.
79
00:05:15.722 --> 00:05:16.703
It's going to cost a little bit.
80
00:05:16.963 --> 00:05:20.825
Honestly, I could probably get away if I didn't have enough money just with a broom.
81
00:05:21.245 --> 00:05:23.747
So again, I'm just trying to get started.
82
00:05:23.767 --> 00:05:26.149
This is the minimum viable product.
83
00:05:26.189 --> 00:05:30.412
This is not getting a ton of trucks and equipment and all the fancy schmancy stuff.
84
00:05:30.653 --> 00:05:31.273
We're not doing that.
85
00:05:31.293 --> 00:05:32.314
We're getting the minimum.
86
00:05:32.574 --> 00:05:34.416
How can we make this business just get started?
87
00:05:35.216 --> 00:05:39.760
And I'm going to collect prepayments on all those jobs that I pre-sold.
88
00:05:40.000 --> 00:05:41.782
So remember, number two, I pre-sold.
89
00:05:42.222 --> 00:05:49.347
Before I even got the business off the ground, I went out and I sold to people that I already know on my social media, inside of my network.
90
00:05:49.547 --> 00:05:54.631
And then I said, hey, look, by the way, I could do your property cleanup for $500.
91
00:05:54.751 --> 00:05:56.913
But if you give me $300, I will do it.
92
00:05:57.133 --> 00:06:00.095
Now, the reason they're going to let you do this is because they already know you.
93
00:06:00.796 --> 00:06:02.998
You're selling the people you already know, like, and trust.
94
00:06:03.619 --> 00:06:04.500
They're in your neighborhood.
95
00:06:04.840 --> 00:06:05.561
You already did.
96
00:06:05.681 --> 00:06:06.722
You went to school with them.
97
00:06:07.142 --> 00:06:08.003
You know their family.
98
00:06:08.424 --> 00:06:15.632
And so because of that, they are willing to trust you without any sort of prior, you know, you being in business to get their job done.
99
00:06:15.832 --> 00:06:18.975
Say, look, I'm going to give you this discount, but I'm going to get the job done.
100
00:06:19.235 --> 00:06:20.957
I don't even care if you have to do it for free.
101
00:06:21.558 --> 00:06:23.178
And I'll show you why in a moment.
102
00:06:23.538 --> 00:06:32.260
But we're going to collect on as much as possible our prepayments, which is before we even get the work done, I'm going to then go use that money to go buy myself some tools.
103
00:06:32.800 --> 00:06:35.141
So then let's assume we keep doing that.
104
00:06:35.161 --> 00:06:36.201
We get our prepayment.
105
00:06:36.421 --> 00:06:37.621
We've got our couple tools.
106
00:06:37.881 --> 00:06:42.262
And now I just keep going and doing these jobs of people that I already know inside of my market.
107
00:06:42.742 --> 00:06:45.823
But now what I'm going to do is test marketing channels.
108
00:06:47.599 --> 00:06:57.125
Because if I go out and I pre-sell and I'm able to knock on doors and talk to a bunch of people, I'm not going to have any time to actually do a whole lot of marketing, potentially.
109
00:06:57.545 --> 00:06:59.747
And so what I want to do is go test what's working.
110
00:07:00.047 --> 00:07:01.868
All right, so what are some of the things I can do?
111
00:07:01.948 --> 00:07:05.370
Well, if I have a little bit of money, I might do a little bit of Google ads.
112
00:07:06.171 --> 00:07:06.491
All right?
113
00:07:06.971 --> 00:07:08.372
I might do a website.
114
00:07:10.212 --> 00:07:10.392
right?
115
00:07:10.672 --> 00:07:16.456
Those are great ways, forms of marketing and advertising to be able to get more leads.
116
00:07:16.877 --> 00:07:19.478
I need to increase the size of my business because guess what?
117
00:07:19.679 --> 00:07:21.520
You're like, well, I'm just going to work off a word of mouth.
118
00:07:21.880 --> 00:07:22.180
Great.
119
00:07:22.540 --> 00:07:24.962
It could potentially take you five or 10 years to build a
120
00:07:26.243 --> 00:07:35.050
which is completely awesome, by the way, but I do believe it can be done faster using advertising and getting eyeballs on your business because no one knows about you.
121
00:07:35.410 --> 00:07:41.035
No one knows that you're the best person to do property cleanups, the best person to paint their house, the best person to clean their windows.
122
00:07:41.335 --> 00:07:48.060
And so in order to be able to get that message out and grow much quicker in the first few years of business, we're gonna have to do some advertising.
123
00:07:48.400 --> 00:07:49.701
But I want you to be able to test it.
124
00:07:50.062 --> 00:07:51.363
So we're gonna do some door hangers.
125
00:07:51.923 --> 00:07:57.825
All right, and you might go to, if you're doing something like landscaping, you can go to lawncaremedia.com and get a bunch of door hangers or flyers.
126
00:07:58.266 --> 00:07:59.786
All right, we got some flyers in here.
127
00:08:00.246 --> 00:08:02.267
And maybe we do some every door direct mail.
128
00:08:03.088 --> 00:08:05.328
Our goal is to be able to test things out.
129
00:08:05.669 --> 00:08:07.109
Maybe we do some yard signs.
130
00:08:07.409 --> 00:08:13.132
I'm not gonna go spend thousands of dollars on some elaborate online campaign or a massive billboard.
131
00:08:13.252 --> 00:08:14.112
I don't have the money.
132
00:08:14.592 --> 00:08:19.754
I need to be able to test all these different ways of marketing though in my local market.
133
00:08:20.014 --> 00:08:20.955
All right, number five.
134
00:08:21.910 --> 00:08:23.851
we're going to move forward is the rule of 100.
135
00:08:24.071 --> 00:08:28.094
This is something that Alex Hermosi talks about in his books.
136
00:08:29.535 --> 00:08:32.617
And that is every single day, I'm going to do something 100 times.
137
00:08:32.717 --> 00:08:40.963
Because I truly believe you can build a home service business using this one step of the process and build a seven-figure company.
138
00:08:41.263 --> 00:08:43.364
And that is every single day, I'm going to do 100 doors,
139
00:08:44.805 --> 00:08:47.609
For door knocking, maybe it is door hangers.
140
00:08:48.189 --> 00:08:51.514
I'm going to actually go put 100 of those out every single day.
141
00:08:51.894 --> 00:08:56.200
And if you just have this rule, every single day, I'm going to do this one action 100 times.
142
00:08:56.620 --> 00:08:57.181
Here's the thing.
143
00:08:57.521 --> 00:08:59.744
What I'm trying to focus on is inputs.
144
00:09:00.525 --> 00:09:01.805
I can't control the outputs.
145
00:09:01.966 --> 00:09:05.107
I can't control whether or not customers accept the estimate.
146
00:09:05.467 --> 00:09:07.628
I can't control whether I get more customers.
147
00:09:07.928 --> 00:09:09.668
What I can control is my inputs.
148
00:09:10.208 --> 00:09:21.272
And doing that 100 times every single day, I can guarantee you, without any shadow of a doubt, you will get closer to building the million-dollar business doing that action 100 times.
149
00:09:21.652 --> 00:09:23.213
The output, I cannot control.
150
00:09:23.373 --> 00:09:24.713
But the inputs, I can.
151
00:09:25.134 --> 00:09:26.034
And so it could be doors.
152
00:09:27.014 --> 00:09:27.754
Your door knocking.
153
00:09:27.774 --> 00:09:28.575
Let me just fill that in.
154
00:09:28.615 --> 00:09:29.015
Knocking.
155
00:09:29.535 --> 00:09:31.075
It's your door knocking, your door hangers.
156
00:09:31.255 --> 00:09:31.836
You say, you know what?
157
00:09:32.196 --> 00:09:36.917
I'm going to go to a hundred different people and talk to them.
158
00:09:37.117 --> 00:09:38.757
I'm just going to go talk to a hundred people.
159
00:09:38.777 --> 00:09:41.717
I'm going to go knock on, go to local coffee shops.
160
00:09:41.918 --> 00:09:43.358
I'm going to go to property managers.
161
00:09:43.898 --> 00:09:51.740
I'm going to go talk to other contractors that in my market could potentially subcontract to me, or they're kind of around my industry, but not directly.
162
00:09:51.780 --> 00:09:56.520
So, for example, I might go talk to a tree service and say, look, you don't do landscaping.
163
00:09:56.781 --> 00:09:58.941
You don't do property clamps and trimming bushes and pulling out weeds.
164
00:09:59.301 --> 00:10:02.142
If you ever have any work, shoot it my way.
165
00:10:02.623 --> 00:10:05.724
I'm going to go do 100 things every single day.
166
00:10:06.325 --> 00:10:09.786
100 door hangers, 100 yard signs, 100 flyers.
167
00:10:09.946 --> 00:10:11.647
I'm going to do something 100 times.
168
00:10:12.087 --> 00:10:16.470
And again, at this stage in your business, you have more time than you do money.
169
00:10:16.490 --> 00:10:20.912
All right, so if we look at the fact that, hey, we have way more time
170
00:10:22.617 --> 00:10:23.237
Then we do money.
171
00:10:23.658 --> 00:10:23.938
All right.
172
00:10:23.958 --> 00:10:24.278
You know what?
173
00:10:24.298 --> 00:10:26.239
Instead of just putting money, I'm just going to put a dollar sign.
174
00:10:26.460 --> 00:10:28.681
We have more time than we have money.
175
00:10:29.041 --> 00:10:34.345
And because of that, I'm going to use the rule of 100 to do an action 100 times a day.
176
00:10:34.885 --> 00:10:35.646
No one likes this.
177
00:10:35.706 --> 00:10:36.746
No one likes door knocking.
178
00:10:37.227 --> 00:10:38.868
No one loves putting out door hangers.
179
00:10:39.528 --> 00:10:46.253
But if you don't have a lot of money and you're getting started, this is the way to get initial inertia and momentum in the business.
180
00:10:46.413 --> 00:10:49.275
All right, now we've started to get a lot of leads coming in.
181
00:10:49.516 --> 00:10:50.796
We're doing the rule of 100.
182
00:10:51.097 --> 00:10:55.640
We might be doing that rule of 100 in the evening, working in the middle of the day, in the beginning of the day.
183
00:10:55.840 --> 00:11:00.784
But we're trying to get 100 of something out every single day to try to get the business momentum rolling.
184
00:11:01.144 --> 00:11:06.848
Now what I need to do is I need to buy equipment so I can increase my labor efficiency.
185
00:11:07.649 --> 00:11:13.295
All right, because just having that rake and just my gloves and just the broom, not super efficient.
186
00:11:13.515 --> 00:11:20.583
If I get an electric or a gas powered hedge trimmer instead of my hand shears, I will go three or four times faster.
187
00:11:20.943 --> 00:11:28.691
If I can get a bigger blower and be able to move much faster, I'll be much more efficient, which will allow me to be able to get the jobs done faster.
188
00:11:28.711 --> 00:11:29.712
So faster.
189
00:11:29.812 --> 00:11:30.333
Faster.
190
00:11:31.991 --> 00:11:34.352
And more volume.
191
00:11:35.012 --> 00:11:38.332
I need to get more jobs done every single day.
192
00:11:38.632 --> 00:11:40.913
How do I do that without having to hire a bunch of people?
193
00:11:41.353 --> 00:11:43.333
Is I get more jobs done faster.
194
00:11:43.753 --> 00:11:52.395
So instead of taking one job to take me the entire eight hours of the day for working, I'm going to get two jobs done in the eight hours because I'm more efficient.
195
00:11:52.535 --> 00:11:54.256
That's what we call labor efficiency.
196
00:11:54.616 --> 00:11:58.476
So I can use my tools and equipment to increase my efficiency.
197
00:12:01.997 --> 00:12:04.639
in a little tiny car that you can throw in all your tools in there.
198
00:12:04.880 --> 00:12:05.680
Maybe you get a truck.
199
00:12:05.820 --> 00:12:06.601
Why is that important?
200
00:12:06.821 --> 00:12:13.847
Because now I can haul this stuff to the dump instead of having to take a whole bunch of debris in my car back and forth three or four times.
201
00:12:14.187 --> 00:12:16.889
So this is the point where I'm growing my business.
202
00:12:16.969 --> 00:12:26.958
This might take you a couple of seasons, by the way, to be able to actually afford the equipment required to expand services and do the work more efficiently.
203
00:12:26.978 --> 00:12:27.298
Okay.
204
00:12:27.617 --> 00:12:30.339
All right, number seven is I'm going to raise prices.
205
00:12:30.740 --> 00:12:32.061
Why am I going to raise prices?
206
00:12:32.081 --> 00:12:38.706
Well, up until this point, I've been trying my very best just to get the deals and just close the jobs, all right?
207
00:12:39.066 --> 00:12:41.829
But at this point, I'm filling up my schedule.
208
00:12:41.929 --> 00:12:44.811
I don't have a lot of space left because I'm trying to do rule of 100.
209
00:12:44.891 --> 00:12:46.632
I'm trying to get the jobs done throughout the day.
210
00:12:47.646 --> 00:12:53.070
And I'm hitting capacity, which means I don't have any more time left in the day to do any more jobs.
211
00:12:53.530 --> 00:12:56.592
So I'm going to raise my prices because I hit capacity.
212
00:12:57.033 --> 00:12:58.534
I have no more time left in my day.
213
00:12:58.874 --> 00:12:59.474
Guess what I'm going to do?
214
00:12:59.534 --> 00:13:01.496
I'm going to raise prices.
215
00:13:01.996 --> 00:13:07.360
And so we are going to raise the dollars per hour that we are charging the customer.
216
00:13:07.580 --> 00:13:12.461
Now, I don't necessarily tell the customer how much I'm charging per hour, but I do give them a price.
217
00:13:12.761 --> 00:13:17.282
And that price is based upon how many hours it's going to take me to get the job done.
218
00:13:17.622 --> 00:13:19.943
And I'm going to increase how much I charge per hour.
219
00:13:20.583 --> 00:13:26.705
So if you're charging right now at the very beginning, maybe you're only charging, you know, let's just call it $50 an hour.
220
00:13:27.165 --> 00:13:27.685
That's fine.
221
00:13:27.705 --> 00:13:28.445
We charge $50 per hour.
222
00:13:32.366 --> 00:13:33.247
But here's the problem.
223
00:13:33.687 --> 00:13:40.034
I've got to start thinking about if I hire somebody else, if I hire an employee, am I going to make any money?
224
00:13:40.474 --> 00:13:47.100
At $50 an hour, if I'm just working, doing all the work myself, I can make a decent living because I don't have a lot of expenses.
225
00:13:47.140 --> 00:13:52.446
I have my, like maybe my truck, some tools, some insurance that I pay every month, pay for my website, whatever.
226
00:13:52.926 --> 00:13:56.089
I might be looking at a few hundred dollars per month in expenses.
227
00:13:56.230 --> 00:13:57.971
Other than that, it's all straight profit.
228
00:13:58.292 --> 00:13:59.533
However, this is the problem.
229
00:13:59.793 --> 00:14:04.378
If you actually start thinking about, okay, when I hire my first employee, what's that going to look like?
230
00:14:04.418 --> 00:14:08.202
Well, I'm going to pay $25 is going to go out the door to labor.
231
00:14:08.262 --> 00:14:08.783
So immediately...
232
00:14:09.183 --> 00:14:10.643
Half of my profit gone.
233
00:14:11.224 --> 00:14:13.564
Now all of a sudden, they're also less efficient than I am.
234
00:14:14.124 --> 00:14:26.407
So they're not going to get the work done as fast as me, which means I'm not going to make as much revenue in one day as when I'm doing the work, which means I'm probably gonna make 30 to 40% less because of them working instead of me.
235
00:14:26.827 --> 00:14:32.709
So now all of a sudden, it's actually going to cost me the equivalent of like $35 an hour.
236
00:14:32.989 --> 00:14:35.069
Well, now I tack on like tools.
237
00:14:35.429 --> 00:14:38.450
I tack on all of my materials.
238
00:14:39.110 --> 00:14:39.591
et cetera.
239
00:14:39.851 --> 00:14:42.374
And all of a sudden I'm not making any profit.
240
00:14:42.815 --> 00:14:49.203
And so the problem that a lot of people do is they go, they're making a bunch of money and they say, Oh, I'm going to hire an employee and double how much money I'm making.
241
00:14:49.263 --> 00:14:56.071
No, you're actually going to reduce the much money you're making because they're less efficient and you've got to pay them a bunch of wages and they're
242
00:14:56.572 --> 00:14:57.913
they're not gonna work as hard as you.
243
00:14:58.373 --> 00:15:02.354
And so that's why a lot of people will hire employees and then all of a sudden they're not making any money.
244
00:15:02.534 --> 00:15:02.814
Why?
245
00:15:02.834 --> 00:15:04.655
Because they didn't raise their prices.
246
00:15:05.055 --> 00:15:18.400
They never made sure that when they actually hired an employee, they took into account the fact that, should I raise this $50 to more like $70 or $80 per hour in order to be able to actually afford hiring an employee?
247
00:15:18.721 --> 00:15:25.023
So that when I take out their wages, when I include the fact they're not gonna be as efficient as me, I still make a profit.
248
00:15:25.323 --> 00:15:29.946
And I recommend you take some time here and keep your capacity at high.
249
00:15:29.986 --> 00:15:31.327
You're booked out two, three, four weeks.
250
00:15:31.367 --> 00:15:31.547
Great.
251
00:15:31.787 --> 00:15:32.487
Raise your prices.
252
00:15:32.967 --> 00:15:38.371
Any new jobs that come in, they're going to be charged the $70 or $80 per hour, and you're going to bid them at a higher rate.
253
00:15:38.771 --> 00:15:40.812
You're still three, four, five weeks booked out.
254
00:15:41.112 --> 00:15:41.372
Great.
255
00:15:41.773 --> 00:15:42.773
Raise your prices again.
256
00:15:43.253 --> 00:15:49.337
This allows you to be able to know with confidence that you'll be able to hire an employee and still make a profit.
257
00:15:50.485 --> 00:15:52.446
Number seven, we're going to run the math.
258
00:15:52.746 --> 00:15:57.209
We're going to run the math on what a $1 million business is going to require.
259
00:15:57.569 --> 00:16:00.530
Let's assume that we are charging $100 per hour.
260
00:16:00.971 --> 00:16:04.272
You say, that's impossible to charge $100 an hour.
261
00:16:05.691 --> 00:16:13.353
I guarantee you that the vast majority of very profitable home service businesses in the matter of just a couple years will be charging over $100 per hour.
262
00:16:13.773 --> 00:16:18.215
This figure probably used to be $50 an hour as an average just 10 years ago.
263
00:16:18.635 --> 00:16:22.416
It's increasing because of inflation, the cost of wages, cost of everything is going up.
264
00:16:22.856 --> 00:16:25.177
And I believe that you can charge $100 per hour.
265
00:16:25.277 --> 00:16:32.600
At Augusta Lawn Care, a lot of our locations are charging $90 to $120 per hour for lawn care, landscaping, etc.
266
00:16:33.040 --> 00:16:41.684
So if we run the math, how many hours of labor are we going to have to bill out every single year to hit this marker?
267
00:16:41.704 --> 00:16:41.924
All right.
268
00:16:54.083 --> 00:16:58.625
per year in order to be able to make a $1 million business.
269
00:16:59.025 --> 00:17:00.906
And this is assuming all of its labor.
270
00:17:01.186 --> 00:17:03.767
We had a bunch of materials and extra costs for charging the customer.
271
00:17:04.027 --> 00:17:04.448
Who cares?
272
00:17:04.748 --> 00:17:09.570
We need to sell 10,000 hours per year to make at least a million dollar business.
273
00:17:10.030 --> 00:17:11.090
Now let's break down the math.
274
00:17:11.491 --> 00:17:16.113
Let's go ahead and divide that now by let's just call it 50 weeks in the year.
275
00:17:16.213 --> 00:17:17.213
So take a couple of weeks off.
276
00:17:17.633 --> 00:17:20.555
That means that we got to sell 200 budgeted hours per year.
277
00:17:21.495 --> 00:17:22.136
per week.
278
00:17:22.396 --> 00:17:25.579
Now, budget hours are the time actually on the job site.
279
00:17:25.960 --> 00:17:30.845
Not how many clocked hours our crew has, but how many hours we are selling on the estimate.
280
00:17:31.686 --> 00:17:34.548
So we got to do 200 budget hours per week.
281
00:17:35.169 --> 00:17:37.552
Now, realistically, how many, how many, uh,
282
00:17:38.485 --> 00:17:42.588
How many hours can an employee actually get completed in a single week?
283
00:17:42.849 --> 00:17:48.293
Well, let's go ahead and assume they complete 30 budgeted hours, 30 budgeted hours per week.
284
00:17:48.533 --> 00:17:50.615
You say, oh, no, well, they work 40 hours a week.
285
00:17:50.915 --> 00:17:53.958
Yeah, but the problem is there's also load time and unload time.
286
00:17:54.178 --> 00:17:55.779
You have safety meetings.
287
00:17:56.180 --> 00:17:57.281
They drive between jobs.
288
00:17:57.301 --> 00:17:58.021
They drive time.
289
00:17:58.041 --> 00:17:59.122
They stop at gas stations.
290
00:17:59.382 --> 00:18:04.507
So there's always some sort of inefficiency to some degree, right?
291
00:18:04.527 --> 00:18:04.627
Okay.
292
00:18:04.847 --> 00:18:20.511
Now, what we're going to assume here is that in a 40-hour work week, they get 30 budget hours completed, which means if I take 200 and I divide that by 30, it means I need to have probably seven employees out in the field working every single day.
293
00:18:20.571 --> 00:18:24.351
Assuming I'm not doing any work in the field, I need seven employees.
294
00:18:24.832 --> 00:18:26.772
Now, you're just asking, well, am I going to...
295
00:18:26.952 --> 00:18:27.953
only a million revenue.
296
00:18:28.253 --> 00:18:35.540
No, you're probably gonna do like 1.2 or $1.3 million if you have seven employees because there's other fees that you're gonna charge in addition to just the labor.
297
00:18:36.001 --> 00:18:37.602
Estimate fees, dump fees.
298
00:18:38.683 --> 00:18:39.664
You're also gonna have materials.
299
00:18:39.985 --> 00:18:41.466
But we need seven employees.
300
00:18:41.646 --> 00:18:43.868
The reason I have number eight here is run the math.
301
00:18:44.725 --> 00:18:46.306
What size of business are you going to have to build?
302
00:18:46.546 --> 00:18:49.748
Because off of the seven employees, I say, okay, well, I'm going to need at least four trucks then.
303
00:18:50.448 --> 00:18:53.130
And I'm going to need a certain amount of space for my shop.
304
00:18:53.510 --> 00:18:55.751
And I'm going to need a certain amount of equipment, et cetera.
305
00:18:56.271 --> 00:19:03.976
Because ultimately, back here when we raised our prices, the whole point that I'm trying to figure out here is what am I going to have to pay my employees?
306
00:19:04.276 --> 00:19:06.777
So, for example, if I am paying $80 per hour.
307
00:19:08.700 --> 00:19:15.262
I've got to hit what I call the rule of 25%, which means, well, I am paying my employees per hour.
308
00:19:15.802 --> 00:19:28.265
I need to be able to make sure that only 25% of that is going to wages, which means if I am paying, if the customer is paying me 80, I don't want to be having to pay my employees more than $20 per hour.
309
00:19:28.565 --> 00:19:30.185
You're like, well, I'm going to have to pay them 25.
310
00:19:30.665 --> 00:19:30.965
Great.
311
00:19:31.225 --> 00:19:37.307
The rule of 25% means you'll have to get this to $100 per hour in order to hit the rule of 25%.
312
00:19:38.587 --> 00:19:46.795
So I don't want what I'm paying my employees per hour to be more than 25% of what I'm charging the customer per hour.
313
00:19:47.356 --> 00:19:57.727
And that means I can then with confidence move into number eight and know what my hourly rate is and then run the math on what it's going to be to build the $1 million business.
314
00:19:58.127 --> 00:20:00.670
Now, number nine is your close ratio.
315
00:20:01.935 --> 00:20:03.537
Our target, where are we going?
316
00:20:03.957 --> 00:20:07.841
We're trying to hit the target of 70% close ratio.
317
00:20:08.141 --> 00:20:08.762
What does that mean?
318
00:20:08.802 --> 00:20:09.863
What does the close ratio mean?
319
00:20:10.163 --> 00:20:14.227
Is the number of accepted estimates divided by total cent.
320
00:20:18.018 --> 00:20:28.125
which means if I send out 100 estimates to my customers in a month and 70 of them are accepted, that would be a 70% close ratio.
321
00:20:28.765 --> 00:20:35.310
I want to be at 70% close ratio all the way up until I build a $1 million business.
322
00:20:35.690 --> 00:20:38.492
Again, I'm assuming I'm trying to maximize growth.
323
00:20:38.872 --> 00:20:41.754
I'm trying to grow the business as quickly as possible to a million dollars.
324
00:20:42.234 --> 00:20:44.956
I am going to be shooting for a 70% close ratio.
325
00:20:46.417 --> 00:20:59.727
Now, once I hit a million dollars and I want to go into profit mode, which means I want to extrapolate and pull out as much profit as possible, then I actually want my close ratio to be under 50%.
326
00:21:00.367 --> 00:21:00.768
Why?
327
00:21:01.068 --> 00:21:04.911
Because I know that if I raise prices, my close ratio will go down.
328
00:21:05.351 --> 00:21:17.021
If I'm still closing 80, 85% of my estimates, and 80% of them are getting accepted, and I'm running a million-dollar business, I'll keep growing, but I'm not going to be super profitable typically.
329
00:21:17.121 --> 00:21:22.306
Or at least I can say that you're going to be leaving money on the table, profit that you could be making otherwise.
330
00:21:22.606 --> 00:21:23.988
So I want to raise my prices.
331
00:21:24.588 --> 00:21:30.572
Until my profit, until my close ratio goes down underneath 50%.
332
00:21:30.892 --> 00:21:37.157
That way I know I can still maintain a seven figure business, still be one, 1.2, 1.3 million.
333
00:21:37.617 --> 00:21:42.841
But now I'm making more profits and I want to be making like 20% profit in my goal.
334
00:21:43.401 --> 00:21:43.982
Ideally.
335
00:21:44.282 --> 00:21:44.562
Why?
336
00:21:44.782 --> 00:21:52.628
So that then I can afford to hire a general manager and management to take over, give them good profits, give them good incentives to run the business without me.
337
00:21:53.168 --> 00:21:59.629
So I want to be able to actually keep increasing my prices until my close ratio goes back down under 50%.
338
00:22:00.069 --> 00:22:03.330
But only after I've hit a million dollars in revenue.
339
00:22:03.490 --> 00:22:08.611
And until then, I'm going to be focused on 70% close ratio.
340
00:22:08.991 --> 00:22:09.231
All right.
341
00:22:09.291 --> 00:22:12.491
We've got to think about value versus price.
342
00:22:12.771 --> 00:22:13.952
Now, this is how it works.
343
00:22:14.292 --> 00:22:15.112
It's like a seesaw.
344
00:22:15.312 --> 00:22:16.532
All right.
345
00:22:17.352 --> 00:22:17.652
Boom.
346
00:22:18.312 --> 00:22:20.573
Over here, we have value.
347
00:22:22.845 --> 00:22:23.605
We have price.
348
00:22:25.146 --> 00:22:29.668
As long as the value is higher than price, the transaction will take place.
349
00:22:30.088 --> 00:22:30.288
All right?
350
00:22:30.588 --> 00:22:33.850
If I think that this drink, in my mind, I'm really, really thirsty.
351
00:22:33.870 --> 00:22:42.614
If I think it is worth $10, well, if it's on the shelf for $3, I'm going to buy it because value is higher than price.
352
00:22:42.634 --> 00:22:42.974
All right?
353
00:22:44.612 --> 00:22:45.413
This is how it works.
354
00:22:45.814 --> 00:22:47.115
Now, the problem is this.
355
00:22:47.616 --> 00:22:52.103
If value is higher than price, it means that the transaction will always go through.
356
00:22:52.123 --> 00:22:53.224
So you know what happens?
357
00:22:54.146 --> 00:22:57.631
So many people, when a customer says, no, I don't want that estimate, you know what they do?
358
00:22:57.671 --> 00:22:58.472
They just lower price.
359
00:22:59.113 --> 00:23:03.076
Because if I can lower prices far enough, I'll eventually get the bid.
360
00:23:03.256 --> 00:23:04.357
Eventually, I'll get to zero.
361
00:23:04.657 --> 00:23:11.242
And this is what causes a massive amount of people being erased to the bottom in home services, is they just keep lowering price.
362
00:23:11.443 --> 00:23:15.566
Because if they can keep lowering price enough, the job will always get accepted.
363
00:23:16.126 --> 00:23:23.372
And so what I want to challenge you to do, instead of trying to lower price to make the job go through, I want to focus on increasing value.
364
00:23:25.064 --> 00:23:29.127
And this is why at mycandies.com, there's a whole bunch of resources for you to do what?
365
00:23:29.487 --> 00:23:37.712
Increase your value, whether it be making a new website, having a great brand image, all the things around your business that you can do to increase value.
366
00:23:38.213 --> 00:23:45.497
Follow up with your customers, be able to communicate with them with automations and using Copilot to be able to text them and put a credit card on file.
367
00:23:45.958 --> 00:23:50.761
This is all increasing value without having to lower your price.
368
00:23:51.381 --> 00:23:53.882
And so I'm still able to get the transaction to go through.
369
00:23:54.342 --> 00:24:01.285
Because if I'm only valuing this drink at $1, and it costs $2, I'm not going to buy it.
370
00:24:01.665 --> 00:24:02.485
So there's two things I can do.
371
00:24:02.526 --> 00:24:04.746
I can, oh, lower the price down to 50 cents.
372
00:24:05.207 --> 00:24:06.087
And then guess what would happen?
373
00:24:06.707 --> 00:24:09.868
Value would be greater than price, and I would sell this can.
374
00:24:10.149 --> 00:24:15.731
However, what's more important, what I could also do, is increase the value of this in your mind.
375
00:24:16.071 --> 00:24:18.012
And so instead of you think it's only worth a dollar,
376
00:24:18.872 --> 00:24:21.615
And the price being $2, a transaction doesn't happen.
377
00:24:21.976 --> 00:24:24.078
I can sell you on, hey, this is going to give you energy.
378
00:24:24.299 --> 00:24:26.281
This is going to allow you to be able to ace your test.
379
00:24:26.501 --> 00:24:28.103
This is going to allow you to work out harder.
380
00:24:28.123 --> 00:24:31.788
This is going to allow you to grow muscle because you have extra energy while you're working out.
381
00:24:32.128 --> 00:24:35.632
And all of a sudden, I'm increasing the value of what I'm selling to you.
382
00:24:35.932 --> 00:24:37.775
And all of a sudden, you're like, well, that's worth like $5.
383
00:24:37.815 --> 00:24:37.875
$5.
384
00:24:39.036 --> 00:24:42.139
Now the value is higher than $2 and the transaction will go through.
385
00:24:42.600 --> 00:24:46.784
So focus on increasing value, not on decreasing price.
386
00:24:47.204 --> 00:24:48.826
Otherwise, we'll be in a race to the bottom.
387
00:24:49.226 --> 00:24:55.873
And that's why my entire brand exists at MikeCandies.com and all my channels is to raise the level of professionalism.
388
00:24:56.093 --> 00:25:02.360
Because if we do that, we'll be able to continually charge a premium price and be able to offer a premium service to our customers.
389
00:25:02.540 --> 00:25:06.002
And that's how we change the level of professionalism in the industry.
390
00:25:06.042 --> 00:25:07.323
You don't want to be in a race to the bottom.
391
00:25:07.523 --> 00:25:09.124
There's plenty of people that will do it cheaper.
392
00:25:09.465 --> 00:25:10.225
Don't focus on that.
393
00:25:10.545 --> 00:25:11.486
Have a great website.
394
00:25:11.866 --> 00:25:12.967
Follow up with the customer.
395
00:25:13.187 --> 00:25:15.849
Have professional uniforms and decaled trucks.
396
00:25:16.309 --> 00:25:20.211
And have a software that can take their credit card on file and do automations.
397
00:25:20.552 --> 00:25:22.033
Answer your phone for crying out loud.
398
00:25:22.333 --> 00:25:24.855
Those are all things you can do to increase value.
399
00:25:25.255 --> 00:25:25.415
Now.
400
00:25:26.317 --> 00:25:27.137
The busy season.
401
00:25:27.157 --> 00:25:28.018
11.
402
00:25:28.038 --> 00:25:30.079
We have two more steps to build this million-dollar business.
403
00:25:30.419 --> 00:25:32.880
But I don't want you to fail when you're almost there.
404
00:25:33.120 --> 00:25:38.603
And a lot of times what I see when businesses are growing really, really quickly is they'll actually fail during their busy season.
405
00:25:39.003 --> 00:25:42.825
Because they just get completely overwhelmed with the fact that you're going to have a spring rush.
406
00:25:43.265 --> 00:25:46.687
Now, spring rush, busy season, this is when it gets crazy.
407
00:25:46.787 --> 00:25:49.148
And for most home services, we're somewhat seasonal.
408
00:25:49.368 --> 00:25:51.930
There's a period of the year where we get really, really busy.
409
00:25:52.773 --> 00:25:58.836
And so if I look at the fact that this is January, this is maybe the summer, July, and this is the end of the year, December.
410
00:25:59.676 --> 00:26:05.940
This is what, for like most home services, you have this spike in demand when it comes to spring rush.
411
00:26:06.320 --> 00:26:06.580
All right?
412
00:26:07.100 --> 00:26:08.741
This is your busy season.
413
00:26:08.761 --> 00:26:14.684
So you'll need to prepare for the busy season because this is when a lot of people burn out.
414
00:26:16.665 --> 00:26:18.466
It gets so busy and so intense.
415
00:26:18.746 --> 00:26:21.948
And during this season, employees leave because they're burnt out.
416
00:26:22.777 --> 00:26:24.758
There's so many leads just pouring in.
417
00:26:25.318 --> 00:26:28.479
And so how do you make sure you get through the busy season without failing?
418
00:26:28.959 --> 00:26:30.820
You've got to prepare for it right here.
419
00:26:30.840 --> 00:26:34.261
I'm going to make sure that I have all my trucks and equipment ready to go.
420
00:26:34.441 --> 00:26:37.843
I'm going to make sure that I've hired all my team and I've trained them all up.
421
00:26:38.303 --> 00:26:41.304
I'm going to make sure I do that so that during the busy season,
422
00:26:42.004 --> 00:26:50.351
During this period of the year, I'm able to continually keep marketing and advertising to my customers because at that time, everyone needs my services.
423
00:26:50.451 --> 00:26:51.572
Demand is very high.
424
00:26:51.872 --> 00:26:58.717
And if I can keep advertising during the busy season, I'll be able to get way more customers than if I have to stop taking new customers.
425
00:26:58.757 --> 00:26:59.598
I'm booked way out.
426
00:26:59.898 --> 00:27:01.399
I'm late to all of my estimates.
427
00:27:01.660 --> 00:27:02.760
I don't have enough team members.
428
00:27:02.860 --> 00:27:06.343
A couple of them walk off the job and all of a sudden I can't do my jobs.
429
00:27:06.643 --> 00:27:07.024
I can't.
430
00:27:07.324 --> 00:27:08.085
follow up with customers.
431
00:27:08.105 --> 00:27:09.706
I'm showing up late to my estimates.
432
00:27:10.127 --> 00:27:11.048
I don't want that to happen.
433
00:27:11.368 --> 00:27:16.193
And so planning for the busy season is the number one way you can grow your business faster.
434
00:27:16.733 --> 00:27:21.137
Have the employees, your trucks, your equipment, the systems in place to be able to scale.
435
00:27:21.618 --> 00:27:23.439
Have someone be able to answer the phone.
436
00:27:24.060 --> 00:27:25.181
as much as possible.
437
00:27:25.542 --> 00:27:26.823
On the weekends, it's even better.
438
00:27:26.843 --> 00:27:31.408
Maybe you get a virtual assistant to be able to answer the phone when your office is closed.
439
00:27:31.688 --> 00:27:37.114
The goal here is to be able to take as many leads as possible and not have to turn customers away.
440
00:27:37.434 --> 00:27:44.502
Ideally, you do estimates over the phone or you're allowing yourself to be more efficient to be able to absorb as much business as possible
441
00:27:45.022 --> 00:27:49.723
during the busy season without having to turn off your estimates or tell customers you can't serve them.
442
00:27:50.203 --> 00:27:52.684
Now the next thing you'll want to do is the off season.
443
00:27:52.924 --> 00:27:56.985
So there's going to be three or four months in most of our business where it gets really, really slow.
444
00:27:57.165 --> 00:27:57.885
This could be the winter.
445
00:27:58.105 --> 00:27:59.325
For some people it's the summer.
446
00:27:59.565 --> 00:28:02.206
If you're doing snow plowing services, winter is great.
447
00:28:02.546 --> 00:28:03.966
Summer is actually your slow season.
448
00:28:04.366 --> 00:28:06.707
So what can we do during the off season?
449
00:28:07.307 --> 00:28:11.368
First off, I'm going to do other services.
450
00:28:12.796 --> 00:28:19.101
If I'm doing that landscaping business and doing property cleanups and trimming bushes and weeding during the summer and the spring and the fall, great.
451
00:28:19.201 --> 00:28:21.723
I've got leaves that are falling down during the fall.
452
00:28:21.983 --> 00:28:23.524
During the summer, I can do some projects.
453
00:28:23.544 --> 00:28:25.526
During the spring, people want their property cleaned up.
454
00:28:25.806 --> 00:28:26.487
Fantastic.
455
00:28:27.413 --> 00:28:30.476
But during the winter, those three or four months, I've got to figure out a different service.
456
00:28:30.976 --> 00:28:34.059
And so I've got to create season-specific services.
457
00:28:34.720 --> 00:28:41.466
Services that I offer during my go time, during my really busy season, and services that I offer during my off-season.
458
00:28:41.846 --> 00:28:44.629
This could be, if I'm doing landscaping, I could do snow plowing.
459
00:28:45.169 --> 00:28:46.370
I mean, that's a lot of equipment.
460
00:28:46.510 --> 00:28:49.113
Well, maybe I could do Christmas light installation.
461
00:28:49.513 --> 00:28:56.035
Or maybe I could do some other service during the winter that I can't do during the busy season.
462
00:28:56.536 --> 00:28:58.456
So I've got to increase my service mix.
463
00:28:58.796 --> 00:29:01.197
I've got to increase the service offering to my customers.
464
00:29:01.597 --> 00:29:03.418
Also, what I'm going to do is I'm going to upsell.
465
00:29:04.418 --> 00:29:05.999
I'm going to create those other services.
466
00:29:06.639 --> 00:29:06.939
Check.
467
00:29:07.399 --> 00:29:11.101
Then I'm going to upsell my existing customers that I have had all year long.
468
00:29:11.361 --> 00:29:14.062
I'm going to upsell and also cross-sell them.
469
00:29:15.128 --> 00:29:16.349
into other services.
470
00:29:16.769 --> 00:29:20.272
So upselling, I'm going to sell more of my current services to my customers.
471
00:29:20.632 --> 00:29:27.918
Cross-sell, I'm going to sell them another service that is adjacent, a little bit different, but I'm able to increase my revenue during the off-season.
472
00:29:28.098 --> 00:29:34.643
Because most home services, most home service businesses will go out of business because they're off-season.
473
00:29:34.983 --> 00:29:35.344
Why?
474
00:29:35.604 --> 00:29:39.387
Because of this very, very bad thing called fixed expenses.
475
00:29:40.617 --> 00:29:46.661
Fixed expenses come in the form of expenses that do not go down, even if your revenue during the offseason goes down.
476
00:29:47.021 --> 00:29:53.985
So your revenue might go from $100,000 a month, but if it drops all the way down to $10,000 a month, well, you still have fixed expenses.
477
00:29:54.266 --> 00:29:55.486
Your insurance doesn't go down.
478
00:29:55.947 --> 00:29:57.508
Your rent doesn't go down.
479
00:29:57.568 --> 00:29:58.868
Your utilities doesn't go down.
480
00:29:59.149 --> 00:30:01.410
Any salaries that you're paying your employees, they don't go down.
481
00:30:01.430 --> 00:30:03.151
They're still paying the paid salary.
482
00:30:03.711 --> 00:30:05.653
Any debt, this is the one that really kills people.
483
00:30:06.313 --> 00:30:10.535
Like the bank isn't going to like not let you pay for four months of the year because you have this big debt.
484
00:30:10.795 --> 00:30:22.960
So these fixed expenses, if I can keep those low during the winter months, during the slow season, you'll absolutely be able to weather the storm and build a seven figure $1 million business.
485
00:30:23.060 --> 00:30:26.201
I truly believe if you follow these 12 steps, you'll be able to build that business.
486
00:30:26.521 --> 00:30:35.245
And that size of business is required to be able to afford the management and be able to give them incentives, profit sharing and bonuses so that you can go faster.
487
00:30:35.705 --> 00:30:43.209
Somewhere else, go build another business, go start a different industry, start a second location, invest in real estate, go on it, do whatever you want.
488
00:30:43.809 --> 00:30:46.490
That's really the goal of building a $1 million business.
489
00:30:46.510 --> 00:30:52.673
And I believe if you follow these 12 steps, yes, it might take you three, four, five, six years to build a business.
490
00:30:52.854 --> 00:30:53.614
But I promise you.
491
00:30:53.934 --> 00:31:02.840
Building a business that's doing a million dollars in revenue and every day you don't have to be there for operations is well worth five, ten years dedicating yourself to it and putting in the hard work.
492
00:31:03.040 --> 00:31:07.503
If you want more resources, there's a bunch of courses, templates, everything that you need.
493
00:31:07.684 --> 00:31:08.784
Go to MikeGandys.com.
494
00:31:09.145 --> 00:31:15.909
And if you want to grow your home service business, use CopilotCRM.com to be able to create systems and procedures in your business.
495
00:31:16.370 --> 00:31:16.890
We'll see you soon.
1
00:00:00.091 --> 00:00:08.014
Hey everyone, today I'm going to be giving you a 12 step process of how exactly you can build a $1 million business, a home service industry with $0.
2
00:00:08.054 --> 00:00:16.257
You don't need any money to get started, you don't need a ton of experience, and most home services you can start without a ton of equipment or huge amounts of skill.
3
00:00:16.357 --> 00:00:17.898
You just need to be able to work hard.
4
00:00:18.018 --> 00:00:19.779
Let's go ahead and jump right into it.
5
00:00:19.799 --> 00:00:22.760
First thing is we've got to define why a million dollars.
6
00:00:23.300 --> 00:00:26.822
Why do you want to build a $1 million business?
7
00:00:27.182 --> 00:00:39.528
In my opinion, in order to grow a seven-figure or $1 million business, that's going to be the thing that allows you to be able to actually build a company that is providing for you without you working in daily operations.
8
00:00:39.808 --> 00:00:51.234
For example, if I'm running a 10% profit margin business, and I mean net profit, in fact, I mean taking 10% out for you personally, okay.
9
00:00:51.454 --> 00:00:58.098
If I am trying to build this business, that means I'm going to get $100,000 out of the business every single year.
10
00:00:59.078 --> 00:01:04.541
And if I'm trying to do that on, say, $300,000 business, it's not enough to live.
11
00:01:04.941 --> 00:01:17.128
And the reason I'm only assuming 10% profit is because I want to be able to pay a general manager and other managers a significant amount of money so I don't have to be there every single day inside of the business.
12
00:01:17.148 --> 00:01:17.488
Right?
13
00:01:17.728 --> 00:01:19.569
I want to be able to show up when I want to.
14
00:01:19.749 --> 00:01:23.091
I want to be able to work on other investments or be able to travel.
15
00:01:23.431 --> 00:01:36.298
And so if I'm trying to build a $1 million business, I think that's the size you'll have to build it to to be able to afford management and profit sharing and compensation for your team to be able to run the business without you being there.
16
00:01:36.679 --> 00:01:37.879
And for everyone mocking 10%,
17
00:01:39.140 --> 00:01:39.881
I would just say this.
18
00:01:40.121 --> 00:01:45.144
Have you built a 10% profit margin business that runs without you ever being there?
19
00:01:45.384 --> 00:01:47.986
And every single day, you're able to take 10% of the revenue.
20
00:01:48.366 --> 00:01:49.647
That's really what it comes down to.
21
00:01:49.727 --> 00:01:50.888
Everyone mocks 10%.
22
00:01:51.308 --> 00:01:53.410
Honestly, if you don't have to be there, that's not a bad deal.
23
00:01:53.430 --> 00:01:53.770
You know why?
24
00:01:53.790 --> 00:01:57.513
Because you would build another one that also you get 10% every single year.
25
00:01:57.713 --> 00:02:05.058
So in my opinion, it's my opinion based upon me seeing thousands of home service businesses, I think you need to build a million-dollar business because
26
00:02:05.378 --> 00:02:08.001
And it might be a couple of locations that do 500,000 each.
27
00:02:08.381 --> 00:02:08.861
That's fine.
28
00:02:09.102 --> 00:02:20.212
But gross revenue, I think you need to build a $1 million business to be able to allow it to run without you and be able to afford the management required for that to happen.
29
00:02:20.652 --> 00:02:22.274
So first off, we defined.
30
00:02:22.514 --> 00:02:25.296
Now let's talk about number two, and that is pre-sale.
31
00:02:26.137 --> 00:02:32.999
If you're just getting started, you don't have a bunch of money to run Facebook ads or Google ads or YouTube ads or big banners.
32
00:02:33.079 --> 00:02:37.280
You don't even have the money to potentially go get registered and licensed and insured.
33
00:02:37.300 --> 00:02:38.920
You don't have the money for your trucks or equipment.
34
00:02:39.080 --> 00:02:42.701
We're assuming that you have exactly $0.
35
00:02:43.221 --> 00:02:44.042
So what can you do?
36
00:02:44.362 --> 00:02:45.382
You can go door knocking.
37
00:02:45.902 --> 00:02:47.262
You can go talk to your network.
38
00:02:47.783 --> 00:02:52.944
You can go talk to everyone on your Facebook account, on your social medias account, on
39
00:02:53.164 --> 00:02:56.088
all your personal groups that you might be in.
40
00:02:56.629 --> 00:02:57.931
This could be church groups.
41
00:02:58.331 --> 00:03:00.575
This could be online social media groups.
42
00:03:00.955 --> 00:03:06.683
Your whole goal here is to pre-sale, which means I'm going to go out and I am going to,
43
00:03:08.126 --> 00:03:12.687
Before I even have the equipment, before anything, I'm going to go sell jobs.
44
00:03:13.247 --> 00:03:18.729
And I'm going to be able to knock on doors and promise them the service that I am going to provide.
45
00:03:19.129 --> 00:03:21.150
Now, I'm not going to actually do the work.
46
00:03:21.590 --> 00:03:23.110
And I'm not going to just give them an estimate.
47
00:03:23.370 --> 00:03:25.151
This is the hard part about having zero dollars.
48
00:03:25.431 --> 00:03:27.171
You don't have the money to go get the tools.
49
00:03:27.611 --> 00:03:29.612
Like we are assuming we have zero dollars.
50
00:03:29.632 --> 00:03:29.852
Right?
51
00:03:30.112 --> 00:03:34.274
which means you have no money to even get the tools required to get your business started.
52
00:03:34.554 --> 00:03:37.036
You don't have any money to even do any advertising.
53
00:03:37.216 --> 00:03:38.536
But you know what you can do?
54
00:03:38.857 --> 00:03:40.597
If you don't have money, you have time.
55
00:03:41.158 --> 00:03:42.738
And so you could go knock on doors.
56
00:03:42.919 --> 00:03:43.559
Is it fun?
57
00:03:43.999 --> 00:03:44.279
No.
58
00:03:44.759 --> 00:03:55.365
But if you're going to get a business started from zero, it's going to require a lot more work and a lot more upfront effort than if you had the cash to just go spend a bunch of money on advertising.
59
00:03:55.385 --> 00:03:55.725
Okay.
60
00:03:55.885 --> 00:04:06.979
So I would first pre-sale, which means I'm going to go talk to people that I know, people that I already know, like, and trust me in my personal social groups and try to sell them on my service.
61
00:04:07.613 --> 00:04:09.914
Next thing I'm going to do, I'm going to collect prepayments.
62
00:04:10.454 --> 00:04:10.694
All right.
63
00:04:10.934 --> 00:04:16.937
The reason I need to get prepayments is because, like I said, I don't have any tools and I just need the basics.
64
00:04:17.477 --> 00:04:21.759
For example, if I was doing a landscaping business, I don't need to get an excavator.
65
00:04:22.379 --> 00:04:23.620
I don't need to even get a truck.
66
00:04:24.140 --> 00:04:30.723
I just need probably, let's look at a landscaping business, a rake, a blower.
67
00:04:32.724 --> 00:04:35.705
Let's just see, maybe some hand shears.
68
00:04:38.505 --> 00:04:43.349
Probably a bin, a tarp, maybe some gloves.
69
00:04:44.530 --> 00:04:48.473
This is probably all I need in order to be able to sell property cleanups.
70
00:04:49.194 --> 00:04:52.497
Breaking out their beds, pulling the weeds, trimming the bushes.
71
00:04:53.097 --> 00:04:59.743
All of this can be achieved with what I call my MVP, Minimum Viable Product Tools.
72
00:05:00.854 --> 00:05:02.995
My most valuable tools, that's what I'm going for.
73
00:05:03.195 --> 00:05:04.376
The ones that I must get.
74
00:05:04.896 --> 00:05:10.779
And I know that I can probably get a decent rake, blower, shears, bin, tarp, gloves, etc.
75
00:05:11.060 --> 00:05:12.500
For probably a few hundred dollars.
76
00:05:12.881 --> 00:05:13.601
Maybe $500.
77
00:05:13.621 --> 00:05:14.702
Let's just call it $500.
78
00:05:14.742 --> 00:05:15.502
Especially that blower.
79
00:05:15.722 --> 00:05:16.703
It's going to cost a little bit.
80
00:05:16.963 --> 00:05:20.825
Honestly, I could probably get away if I didn't have enough money just with a broom.
81
00:05:21.245 --> 00:05:23.747
So again, I'm just trying to get started.
82
00:05:23.767 --> 00:05:26.149
This is the minimum viable product.
83
00:05:26.189 --> 00:05:30.412
This is not getting a ton of trucks and equipment and all the fancy schmancy stuff.
84
00:05:30.653 --> 00:05:31.273
We're not doing that.
85
00:05:31.293 --> 00:05:32.314
We're getting the minimum.
86
00:05:32.574 --> 00:05:34.416
How can we make this business just get started?
87
00:05:35.216 --> 00:05:39.760
And I'm going to collect prepayments on all those jobs that I pre-sold.
88
00:05:40.000 --> 00:05:41.782
So remember, number two, I pre-sold.
89
00:05:42.222 --> 00:05:49.347
Before I even got the business off the ground, I went out and I sold to people that I already know on my social media, inside of my network.
90
00:05:49.547 --> 00:05:54.631
And then I said, hey, look, by the way, I could do your property cleanup for $500.
91
00:05:54.751 --> 00:05:56.913
But if you give me $300, I will do it.
92
00:05:57.133 --> 00:06:00.095
Now, the reason they're going to let you do this is because they already know you.
93
00:06:00.796 --> 00:06:02.998
You're selling the people you already know, like, and trust.
94
00:06:03.619 --> 00:06:04.500
They're in your neighborhood.
95
00:06:04.840 --> 00:06:05.561
You already did.
96
00:06:05.681 --> 00:06:06.722
You went to school with them.
97
00:06:07.142 --> 00:06:08.003
You know their family.
98
00:06:08.424 --> 00:06:15.632
And so because of that, they are willing to trust you without any sort of prior, you know, you being in business to get their job done.
99
00:06:15.832 --> 00:06:18.975
Say, look, I'm going to give you this discount, but I'm going to get the job done.
100
00:06:19.235 --> 00:06:20.957
I don't even care if you have to do it for free.
101
00:06:21.558 --> 00:06:23.178
And I'll show you why in a moment.
102
00:06:23.538 --> 00:06:32.260
But we're going to collect on as much as possible our prepayments, which is before we even get the work done, I'm going to then go use that money to go buy myself some tools.
103
00:06:32.800 --> 00:06:35.141
So then let's assume we keep doing that.
104
00:06:35.161 --> 00:06:36.201
We get our prepayment.
105
00:06:36.421 --> 00:06:37.621
We've got our couple tools.
106
00:06:37.881 --> 00:06:42.262
And now I just keep going and doing these jobs of people that I already know inside of my market.
107
00:06:42.742 --> 00:06:45.823
But now what I'm going to do is test marketing channels.
108
00:06:47.599 --> 00:06:57.125
Because if I go out and I pre-sell and I'm able to knock on doors and talk to a bunch of people, I'm not going to have any time to actually do a whole lot of marketing, potentially.
109
00:06:57.545 --> 00:06:59.747
And so what I want to do is go test what's working.
110
00:07:00.047 --> 00:07:01.868
All right, so what are some of the things I can do?
111
00:07:01.948 --> 00:07:05.370
Well, if I have a little bit of money, I might do a little bit of Google ads.
112
00:07:06.171 --> 00:07:06.491
All right?
113
00:07:06.971 --> 00:07:08.372
I might do a website.
114
00:07:10.212 --> 00:07:10.392
right?
115
00:07:10.672 --> 00:07:16.456
Those are great ways, forms of marketing and advertising to be able to get more leads.
116
00:07:16.877 --> 00:07:19.478
I need to increase the size of my business because guess what?
117
00:07:19.679 --> 00:07:21.520
You're like, well, I'm just going to work off a word of mouth.
118
00:07:21.880 --> 00:07:22.180
Great.
119
00:07:22.540 --> 00:07:24.962
It could potentially take you five or 10 years to build a
120
00:07:26.243 --> 00:07:35.050
which is completely awesome, by the way, but I do believe it can be done faster using advertising and getting eyeballs on your business because no one knows about you.
121
00:07:35.410 --> 00:07:41.035
No one knows that you're the best person to do property cleanups, the best person to paint their house, the best person to clean their windows.
122
00:07:41.335 --> 00:07:48.060
And so in order to be able to get that message out and grow much quicker in the first few years of business, we're gonna have to do some advertising.
123
00:07:48.400 --> 00:07:49.701
But I want you to be able to test it.
124
00:07:50.062 --> 00:07:51.363
So we're gonna do some door hangers.
125
00:07:51.923 --> 00:07:57.825
All right, and you might go to, if you're doing something like landscaping, you can go to lawncaremedia.com and get a bunch of door hangers or flyers.
126
00:07:58.266 --> 00:07:59.786
All right, we got some flyers in here.
127
00:08:00.246 --> 00:08:02.267
And maybe we do some every door direct mail.
128
00:08:03.088 --> 00:08:05.328
Our goal is to be able to test things out.
129
00:08:05.669 --> 00:08:07.109
Maybe we do some yard signs.
130
00:08:07.409 --> 00:08:13.132
I'm not gonna go spend thousands of dollars on some elaborate online campaign or a massive billboard.
131
00:08:13.252 --> 00:08:14.112
I don't have the money.
132
00:08:14.592 --> 00:08:19.754
I need to be able to test all these different ways of marketing though in my local market.
133
00:08:20.014 --> 00:08:20.955
All right, number five.
134
00:08:21.910 --> 00:08:23.851
we're going to move forward is the rule of 100.
135
00:08:24.071 --> 00:08:28.094
This is something that Alex Hermosi talks about in his books.
136
00:08:29.535 --> 00:08:32.617
And that is every single day, I'm going to do something 100 times.
137
00:08:32.717 --> 00:08:40.963
Because I truly believe you can build a home service business using this one step of the process and build a seven-figure company.
138
00:08:41.263 --> 00:08:43.364
And that is every single day, I'm going to do 100 doors,
139
00:08:44.805 --> 00:08:47.609
For door knocking, maybe it is door hangers.
140
00:08:48.189 --> 00:08:51.514
I'm going to actually go put 100 of those out every single day.
141
00:08:51.894 --> 00:08:56.200
And if you just have this rule, every single day, I'm going to do this one action 100 times.
142
00:08:56.620 --> 00:08:57.181
Here's the thing.
143
00:08:57.521 --> 00:08:59.744
What I'm trying to focus on is inputs.
144
00:09:00.525 --> 00:09:01.805
I can't control the outputs.
145
00:09:01.966 --> 00:09:05.107
I can't control whether or not customers accept the estimate.
146
00:09:05.467 --> 00:09:07.628
I can't control whether I get more customers.
147
00:09:07.928 --> 00:09:09.668
What I can control is my inputs.
148
00:09:10.208 --> 00:09:21.272
And doing that 100 times every single day, I can guarantee you, without any shadow of a doubt, you will get closer to building the million-dollar business doing that action 100 times.
149
00:09:21.652 --> 00:09:23.213
The output, I cannot control.
150
00:09:23.373 --> 00:09:24.713
But the inputs, I can.
151
00:09:25.134 --> 00:09:26.034
And so it could be doors.
152
00:09:27.014 --> 00:09:27.754
Your door knocking.
153
00:09:27.774 --> 00:09:28.575
Let me just fill that in.
154
00:09:28.615 --> 00:09:29.015
Knocking.
155
00:09:29.535 --> 00:09:31.075
It's your door knocking, your door hangers.
156
00:09:31.255 --> 00:09:31.836
You say, you know what?
157
00:09:32.196 --> 00:09:36.917
I'm going to go to a hundred different people and talk to them.
158
00:09:37.117 --> 00:09:38.757
I'm just going to go talk to a hundred people.
159
00:09:38.777 --> 00:09:41.717
I'm going to go knock on, go to local coffee shops.
160
00:09:41.918 --> 00:09:43.358
I'm going to go to property managers.
161
00:09:43.898 --> 00:09:51.740
I'm going to go talk to other contractors that in my market could potentially subcontract to me, or they're kind of around my industry, but not directly.
162
00:09:51.780 --> 00:09:56.520
So, for example, I might go talk to a tree service and say, look, you don't do landscaping.
163
00:09:56.781 --> 00:09:58.941
You don't do property clamps and trimming bushes and pulling out weeds.
164
00:09:59.301 --> 00:10:02.142
If you ever have any work, shoot it my way.
165
00:10:02.623 --> 00:10:05.724
I'm going to go do 100 things every single day.
166
00:10:06.325 --> 00:10:09.786
100 door hangers, 100 yard signs, 100 flyers.
167
00:10:09.946 --> 00:10:11.647
I'm going to do something 100 times.
168
00:10:12.087 --> 00:10:16.470
And again, at this stage in your business, you have more time than you do money.
169
00:10:16.490 --> 00:10:20.912
All right, so if we look at the fact that, hey, we have way more time
170
00:10:22.617 --> 00:10:23.237
Then we do money.
171
00:10:23.658 --> 00:10:23.938
All right.
172
00:10:23.958 --> 00:10:24.278
You know what?
173
00:10:24.298 --> 00:10:26.239
Instead of just putting money, I'm just going to put a dollar sign.
174
00:10:26.460 --> 00:10:28.681
We have more time than we have money.
175
00:10:29.041 --> 00:10:34.345
And because of that, I'm going to use the rule of 100 to do an action 100 times a day.
176
00:10:34.885 --> 00:10:35.646
No one likes this.
177
00:10:35.706 --> 00:10:36.746
No one likes door knocking.
178
00:10:37.227 --> 00:10:38.868
No one loves putting out door hangers.
179
00:10:39.528 --> 00:10:46.253
But if you don't have a lot of money and you're getting started, this is the way to get initial inertia and momentum in the business.
180
00:10:46.413 --> 00:10:49.275
All right, now we've started to get a lot of leads coming in.
181
00:10:49.516 --> 00:10:50.796
We're doing the rule of 100.
182
00:10:51.097 --> 00:10:55.640
We might be doing that rule of 100 in the evening, working in the middle of the day, in the beginning of the day.
183
00:10:55.840 --> 00:11:00.784
But we're trying to get 100 of something out every single day to try to get the business momentum rolling.
184
00:11:01.144 --> 00:11:06.848
Now what I need to do is I need to buy equipment so I can increase my labor efficiency.
185
00:11:07.649 --> 00:11:13.295
All right, because just having that rake and just my gloves and just the broom, not super efficient.
186
00:11:13.515 --> 00:11:20.583
If I get an electric or a gas powered hedge trimmer instead of my hand shears, I will go three or four times faster.
187
00:11:20.943 --> 00:11:28.691
If I can get a bigger blower and be able to move much faster, I'll be much more efficient, which will allow me to be able to get the jobs done faster.
188
00:11:28.711 --> 00:11:29.712
So faster.
189
00:11:29.812 --> 00:11:30.333
Faster.
190
00:11:31.991 --> 00:11:34.352
And more volume.
191
00:11:35.012 --> 00:11:38.332
I need to get more jobs done every single day.
192
00:11:38.632 --> 00:11:40.913
How do I do that without having to hire a bunch of people?
193
00:11:41.353 --> 00:11:43.333
Is I get more jobs done faster.
194
00:11:43.753 --> 00:11:52.395
So instead of taking one job to take me the entire eight hours of the day for working, I'm going to get two jobs done in the eight hours because I'm more efficient.
195
00:11:52.535 --> 00:11:54.256
That's what we call labor efficiency.
196
00:11:54.616 --> 00:11:58.476
So I can use my tools and equipment to increase my efficiency.
197
00:12:01.997 --> 00:12:04.639
in a little tiny car that you can throw in all your tools in there.
198
00:12:04.880 --> 00:12:05.680
Maybe you get a truck.
199
00:12:05.820 --> 00:12:06.601
Why is that important?
200
00:12:06.821 --> 00:12:13.847
Because now I can haul this stuff to the dump instead of having to take a whole bunch of debris in my car back and forth three or four times.
201
00:12:14.187 --> 00:12:16.889
So this is the point where I'm growing my business.
202
00:12:16.969 --> 00:12:26.958
This might take you a couple of seasons, by the way, to be able to actually afford the equipment required to expand services and do the work more efficiently.
203
00:12:26.978 --> 00:12:27.298
Okay.
204
00:12:27.617 --> 00:12:30.339
All right, number seven is I'm going to raise prices.
205
00:12:30.740 --> 00:12:32.061
Why am I going to raise prices?
206
00:12:32.081 --> 00:12:38.706
Well, up until this point, I've been trying my very best just to get the deals and just close the jobs, all right?
207
00:12:39.066 --> 00:12:41.829
But at this point, I'm filling up my schedule.
208
00:12:41.929 --> 00:12:44.811
I don't have a lot of space left because I'm trying to do rule of 100.
209
00:12:44.891 --> 00:12:46.632
I'm trying to get the jobs done throughout the day.
210
00:12:47.646 --> 00:12:53.070
And I'm hitting capacity, which means I don't have any more time left in the day to do any more jobs.
211
00:12:53.530 --> 00:12:56.592
So I'm going to raise my prices because I hit capacity.
212
00:12:57.033 --> 00:12:58.534
I have no more time left in my day.
213
00:12:58.874 --> 00:12:59.474
Guess what I'm going to do?
214
00:12:59.534 --> 00:13:01.496
I'm going to raise prices.
215
00:13:01.996 --> 00:13:07.360
And so we are going to raise the dollars per hour that we are charging the customer.
216
00:13:07.580 --> 00:13:12.461
Now, I don't necessarily tell the customer how much I'm charging per hour, but I do give them a price.
217
00:13:12.761 --> 00:13:17.282
And that price is based upon how many hours it's going to take me to get the job done.
218
00:13:17.622 --> 00:13:19.943
And I'm going to increase how much I charge per hour.
219
00:13:20.583 --> 00:13:26.705
So if you're charging right now at the very beginning, maybe you're only charging, you know, let's just call it $50 an hour.
220
00:13:27.165 --> 00:13:27.685
That's fine.
221
00:13:27.705 --> 00:13:28.445
We charge $50 per hour.
222
00:13:32.366 --> 00:13:33.247
But here's the problem.
223
00:13:33.687 --> 00:13:40.034
I've got to start thinking about if I hire somebody else, if I hire an employee, am I going to make any money?
224
00:13:40.474 --> 00:13:47.100
At $50 an hour, if I'm just working, doing all the work myself, I can make a decent living because I don't have a lot of expenses.
225
00:13:47.140 --> 00:13:52.446
I have my, like maybe my truck, some tools, some insurance that I pay every month, pay for my website, whatever.
226
00:13:52.926 --> 00:13:56.089
I might be looking at a few hundred dollars per month in expenses.
227
00:13:56.230 --> 00:13:57.971
Other than that, it's all straight profit.
228
00:13:58.292 --> 00:13:59.533
However, this is the problem.
229
00:13:59.793 --> 00:14:04.378
If you actually start thinking about, okay, when I hire my first employee, what's that going to look like?
230
00:14:04.418 --> 00:14:08.202
Well, I'm going to pay $25 is going to go out the door to labor.
231
00:14:08.262 --> 00:14:08.783
So immediately...
232
00:14:09.183 --> 00:14:10.643
Half of my profit gone.
233
00:14:11.224 --> 00:14:13.564
Now all of a sudden, they're also less efficient than I am.
234
00:14:14.124 --> 00:14:26.407
So they're not going to get the work done as fast as me, which means I'm not going to make as much revenue in one day as when I'm doing the work, which means I'm probably gonna make 30 to 40% less because of them working instead of me.
235
00:14:26.827 --> 00:14:32.709
So now all of a sudden, it's actually going to cost me the equivalent of like $35 an hour.
236
00:14:32.989 --> 00:14:35.069
Well, now I tack on like tools.
237
00:14:35.429 --> 00:14:38.450
I tack on all of my materials.
238
00:14:39.110 --> 00:14:39.591
et cetera.
239
00:14:39.851 --> 00:14:42.374
And all of a sudden I'm not making any profit.
240
00:14:42.815 --> 00:14:49.203
And so the problem that a lot of people do is they go, they're making a bunch of money and they say, Oh, I'm going to hire an employee and double how much money I'm making.
241
00:14:49.263 --> 00:14:56.071
No, you're actually going to reduce the much money you're making because they're less efficient and you've got to pay them a bunch of wages and they're
242
00:14:56.572 --> 00:14:57.913
they're not gonna work as hard as you.
243
00:14:58.373 --> 00:15:02.354
And so that's why a lot of people will hire employees and then all of a sudden they're not making any money.
244
00:15:02.534 --> 00:15:02.814
Why?
245
00:15:02.834 --> 00:15:04.655
Because they didn't raise their prices.
246
00:15:05.055 --> 00:15:18.400
They never made sure that when they actually hired an employee, they took into account the fact that, should I raise this $50 to more like $70 or $80 per hour in order to be able to actually afford hiring an employee?
247
00:15:18.721 --> 00:15:25.023
So that when I take out their wages, when I include the fact they're not gonna be as efficient as me, I still make a profit.
248
00:15:25.323 --> 00:15:29.946
And I recommend you take some time here and keep your capacity at high.
249
00:15:29.986 --> 00:15:31.327
You're booked out two, three, four weeks.
250
00:15:31.367 --> 00:15:31.547
Great.
251
00:15:31.787 --> 00:15:32.487
Raise your prices.
252
00:15:32.967 --> 00:15:38.371
Any new jobs that come in, they're going to be charged the $70 or $80 per hour, and you're going to bid them at a higher rate.
253
00:15:38.771 --> 00:15:40.812
You're still three, four, five weeks booked out.
254
00:15:41.112 --> 00:15:41.372
Great.
255
00:15:41.773 --> 00:15:42.773
Raise your prices again.
256
00:15:43.253 --> 00:15:49.337
This allows you to be able to know with confidence that you'll be able to hire an employee and still make a profit.
257
00:15:50.485 --> 00:15:52.446
Number seven, we're going to run the math.
258
00:15:52.746 --> 00:15:57.209
We're going to run the math on what a $1 million business is going to require.
259
00:15:57.569 --> 00:16:00.530
Let's assume that we are charging $100 per hour.
260
00:16:00.971 --> 00:16:04.272
You say, that's impossible to charge $100 an hour.
261
00:16:05.691 --> 00:16:13.353
I guarantee you that the vast majority of very profitable home service businesses in the matter of just a couple years will be charging over $100 per hour.
262
00:16:13.773 --> 00:16:18.215
This figure probably used to be $50 an hour as an average just 10 years ago.
263
00:16:18.635 --> 00:16:22.416
It's increasing because of inflation, the cost of wages, cost of everything is going up.
264
00:16:22.856 --> 00:16:25.177
And I believe that you can charge $100 per hour.
265
00:16:25.277 --> 00:16:32.600
At Augusta Lawn Care, a lot of our locations are charging $90 to $120 per hour for lawn care, landscaping, etc.
266
00:16:33.040 --> 00:16:41.684
So if we run the math, how many hours of labor are we going to have to bill out every single year to hit this marker?
267
00:16:41.704 --> 00:16:41.924
All right.
268
00:16:54.083 --> 00:16:58.625
per year in order to be able to make a $1 million business.
269
00:16:59.025 --> 00:17:00.906
And this is assuming all of its labor.
270
00:17:01.186 --> 00:17:03.767
We had a bunch of materials and extra costs for charging the customer.
271
00:17:04.027 --> 00:17:04.448
Who cares?
272
00:17:04.748 --> 00:17:09.570
We need to sell 10,000 hours per year to make at least a million dollar business.
273
00:17:10.030 --> 00:17:11.090
Now let's break down the math.
274
00:17:11.491 --> 00:17:16.113
Let's go ahead and divide that now by let's just call it 50 weeks in the year.
275
00:17:16.213 --> 00:17:17.213
So take a couple of weeks off.
276
00:17:17.633 --> 00:17:20.555
That means that we got to sell 200 budgeted hours per year.
277
00:17:21.495 --> 00:17:22.136
per week.
278
00:17:22.396 --> 00:17:25.579
Now, budget hours are the time actually on the job site.
279
00:17:25.960 --> 00:17:30.845
Not how many clocked hours our crew has, but how many hours we are selling on the estimate.
280
00:17:31.686 --> 00:17:34.548
So we got to do 200 budget hours per week.
281
00:17:35.169 --> 00:17:37.552
Now, realistically, how many, how many, uh,
282
00:17:38.485 --> 00:17:42.588
How many hours can an employee actually get completed in a single week?
283
00:17:42.849 --> 00:17:48.293
Well, let's go ahead and assume they complete 30 budgeted hours, 30 budgeted hours per week.
284
00:17:48.533 --> 00:17:50.615
You say, oh, no, well, they work 40 hours a week.
285
00:17:50.915 --> 00:17:53.958
Yeah, but the problem is there's also load time and unload time.
286
00:17:54.178 --> 00:17:55.779
You have safety meetings.
287
00:17:56.180 --> 00:17:57.281
They drive between jobs.
288
00:17:57.301 --> 00:17:58.021
They drive time.
289
00:17:58.041 --> 00:17:59.122
They stop at gas stations.
290
00:17:59.382 --> 00:18:04.507
So there's always some sort of inefficiency to some degree, right?
291
00:18:04.527 --> 00:18:04.627
Okay.
292
00:18:04.847 --> 00:18:20.511
Now, what we're going to assume here is that in a 40-hour work week, they get 30 budget hours completed, which means if I take 200 and I divide that by 30, it means I need to have probably seven employees out in the field working every single day.
293
00:18:20.571 --> 00:18:24.351
Assuming I'm not doing any work in the field, I need seven employees.
294
00:18:24.832 --> 00:18:26.772
Now, you're just asking, well, am I going to...
295
00:18:26.952 --> 00:18:27.953
only a million revenue.
296
00:18:28.253 --> 00:18:35.540
No, you're probably gonna do like 1.2 or $1.3 million if you have seven employees because there's other fees that you're gonna charge in addition to just the labor.
297
00:18:36.001 --> 00:18:37.602
Estimate fees, dump fees.
298
00:18:38.683 --> 00:18:39.664
You're also gonna have materials.
299
00:18:39.985 --> 00:18:41.466
But we need seven employees.
300
00:18:41.646 --> 00:18:43.868
The reason I have number eight here is run the math.
301
00:18:44.725 --> 00:18:46.306
What size of business are you going to have to build?
302
00:18:46.546 --> 00:18:49.748
Because off of the seven employees, I say, okay, well, I'm going to need at least four trucks then.
303
00:18:50.448 --> 00:18:53.130
And I'm going to need a certain amount of space for my shop.
304
00:18:53.510 --> 00:18:55.751
And I'm going to need a certain amount of equipment, et cetera.
305
00:18:56.271 --> 00:19:03.976
Because ultimately, back here when we raised our prices, the whole point that I'm trying to figure out here is what am I going to have to pay my employees?
306
00:19:04.276 --> 00:19:06.777
So, for example, if I am paying $80 per hour.
307
00:19:08.700 --> 00:19:15.262
I've got to hit what I call the rule of 25%, which means, well, I am paying my employees per hour.
308
00:19:15.802 --> 00:19:28.265
I need to be able to make sure that only 25% of that is going to wages, which means if I am paying, if the customer is paying me 80, I don't want to be having to pay my employees more than $20 per hour.
309
00:19:28.565 --> 00:19:30.185
You're like, well, I'm going to have to pay them 25.
310
00:19:30.665 --> 00:19:30.965
Great.
311
00:19:31.225 --> 00:19:37.307
The rule of 25% means you'll have to get this to $100 per hour in order to hit the rule of 25%.
312
00:19:38.587 --> 00:19:46.795
So I don't want what I'm paying my employees per hour to be more than 25% of what I'm charging the customer per hour.
313
00:19:47.356 --> 00:19:57.727
And that means I can then with confidence move into number eight and know what my hourly rate is and then run the math on what it's going to be to build the $1 million business.
314
00:19:58.127 --> 00:20:00.670
Now, number nine is your close ratio.
315
00:20:01.935 --> 00:20:03.537
Our target, where are we going?
316
00:20:03.957 --> 00:20:07.841
We're trying to hit the target of 70% close ratio.
317
00:20:08.141 --> 00:20:08.762
What does that mean?
318
00:20:08.802 --> 00:20:09.863
What does the close ratio mean?
319
00:20:10.163 --> 00:20:14.227
Is the number of accepted estimates divided by total cent.
320
00:20:18.018 --> 00:20:28.125
which means if I send out 100 estimates to my customers in a month and 70 of them are accepted, that would be a 70% close ratio.
321
00:20:28.765 --> 00:20:35.310
I want to be at 70% close ratio all the way up until I build a $1 million business.
322
00:20:35.690 --> 00:20:38.492
Again, I'm assuming I'm trying to maximize growth.
323
00:20:38.872 --> 00:20:41.754
I'm trying to grow the business as quickly as possible to a million dollars.
324
00:20:42.234 --> 00:20:44.956
I am going to be shooting for a 70% close ratio.
325
00:20:46.417 --> 00:20:59.727
Now, once I hit a million dollars and I want to go into profit mode, which means I want to extrapolate and pull out as much profit as possible, then I actually want my close ratio to be under 50%.
326
00:21:00.367 --> 00:21:00.768
Why?
327
00:21:01.068 --> 00:21:04.911
Because I know that if I raise prices, my close ratio will go down.
328
00:21:05.351 --> 00:21:17.021
If I'm still closing 80, 85% of my estimates, and 80% of them are getting accepted, and I'm running a million-dollar business, I'll keep growing, but I'm not going to be super profitable typically.
329
00:21:17.121 --> 00:21:22.306
Or at least I can say that you're going to be leaving money on the table, profit that you could be making otherwise.
330
00:21:22.606 --> 00:21:23.988
So I want to raise my prices.
331
00:21:24.588 --> 00:21:30.572
Until my profit, until my close ratio goes down underneath 50%.
332
00:21:30.892 --> 00:21:37.157
That way I know I can still maintain a seven figure business, still be one, 1.2, 1.3 million.
333
00:21:37.617 --> 00:21:42.841
But now I'm making more profits and I want to be making like 20% profit in my goal.
334
00:21:43.401 --> 00:21:43.982
Ideally.
335
00:21:44.282 --> 00:21:44.562
Why?
336
00:21:44.782 --> 00:21:52.628
So that then I can afford to hire a general manager and management to take over, give them good profits, give them good incentives to run the business without me.
337
00:21:53.168 --> 00:21:59.629
So I want to be able to actually keep increasing my prices until my close ratio goes back down under 50%.
338
00:22:00.069 --> 00:22:03.330
But only after I've hit a million dollars in revenue.
339
00:22:03.490 --> 00:22:08.611
And until then, I'm going to be focused on 70% close ratio.
340
00:22:08.991 --> 00:22:09.231
All right.
341
00:22:09.291 --> 00:22:12.491
We've got to think about value versus price.
342
00:22:12.771 --> 00:22:13.952
Now, this is how it works.
343
00:22:14.292 --> 00:22:15.112
It's like a seesaw.
344
00:22:15.312 --> 00:22:16.532
All right.
345
00:22:17.352 --> 00:22:17.652
Boom.
346
00:22:18.312 --> 00:22:20.573
Over here, we have value.
347
00:22:22.845 --> 00:22:23.605
We have price.
348
00:22:25.146 --> 00:22:29.668
As long as the value is higher than price, the transaction will take place.
349
00:22:30.088 --> 00:22:30.288
All right?
350
00:22:30.588 --> 00:22:33.850
If I think that this drink, in my mind, I'm really, really thirsty.
351
00:22:33.870 --> 00:22:42.614
If I think it is worth $10, well, if it's on the shelf for $3, I'm going to buy it because value is higher than price.
352
00:22:42.634 --> 00:22:42.974
All right?
353
00:22:44.612 --> 00:22:45.413
This is how it works.
354
00:22:45.814 --> 00:22:47.115
Now, the problem is this.
355
00:22:47.616 --> 00:22:52.103
If value is higher than price, it means that the transaction will always go through.
356
00:22:52.123 --> 00:22:53.224
So you know what happens?
357
00:22:54.146 --> 00:22:57.631
So many people, when a customer says, no, I don't want that estimate, you know what they do?
358
00:22:57.671 --> 00:22:58.472
They just lower price.
359
00:22:59.113 --> 00:23:03.076
Because if I can lower prices far enough, I'll eventually get the bid.
360
00:23:03.256 --> 00:23:04.357
Eventually, I'll get to zero.
361
00:23:04.657 --> 00:23:11.242
And this is what causes a massive amount of people being erased to the bottom in home services, is they just keep lowering price.
362
00:23:11.443 --> 00:23:15.566
Because if they can keep lowering price enough, the job will always get accepted.
363
00:23:16.126 --> 00:23:23.372
And so what I want to challenge you to do, instead of trying to lower price to make the job go through, I want to focus on increasing value.
364
00:23:25.064 --> 00:23:29.127
And this is why at mycandies.com, there's a whole bunch of resources for you to do what?
365
00:23:29.487 --> 00:23:37.712
Increase your value, whether it be making a new website, having a great brand image, all the things around your business that you can do to increase value.
366
00:23:38.213 --> 00:23:45.497
Follow up with your customers, be able to communicate with them with automations and using Copilot to be able to text them and put a credit card on file.
367
00:23:45.958 --> 00:23:50.761
This is all increasing value without having to lower your price.
368
00:23:51.381 --> 00:23:53.882
And so I'm still able to get the transaction to go through.
369
00:23:54.342 --> 00:24:01.285
Because if I'm only valuing this drink at $1, and it costs $2, I'm not going to buy it.
370
00:24:01.665 --> 00:24:02.485
So there's two things I can do.
371
00:24:02.526 --> 00:24:04.746
I can, oh, lower the price down to 50 cents.
372
00:24:05.207 --> 00:24:06.087
And then guess what would happen?
373
00:24:06.707 --> 00:24:09.868
Value would be greater than price, and I would sell this can.
374
00:24:10.149 --> 00:24:15.731
However, what's more important, what I could also do, is increase the value of this in your mind.
375
00:24:16.071 --> 00:24:18.012
And so instead of you think it's only worth a dollar,
376
00:24:18.872 --> 00:24:21.615
And the price being $2, a transaction doesn't happen.
377
00:24:21.976 --> 00:24:24.078
I can sell you on, hey, this is going to give you energy.
378
00:24:24.299 --> 00:24:26.281
This is going to allow you to be able to ace your test.
379
00:24:26.501 --> 00:24:28.103
This is going to allow you to work out harder.
380
00:24:28.123 --> 00:24:31.788
This is going to allow you to grow muscle because you have extra energy while you're working out.
381
00:24:32.128 --> 00:24:35.632
And all of a sudden, I'm increasing the value of what I'm selling to you.
382
00:24:35.932 --> 00:24:37.775
And all of a sudden, you're like, well, that's worth like $5.
383
00:24:37.815 --> 00:24:37.875
$5.
384
00:24:39.036 --> 00:24:42.139
Now the value is higher than $2 and the transaction will go through.
385
00:24:42.600 --> 00:24:46.784
So focus on increasing value, not on decreasing price.
386
00:24:47.204 --> 00:24:48.826
Otherwise, we'll be in a race to the bottom.
387
00:24:49.226 --> 00:24:55.873
And that's why my entire brand exists at MikeCandies.com and all my channels is to raise the level of professionalism.
388
00:24:56.093 --> 00:25:02.360
Because if we do that, we'll be able to continually charge a premium price and be able to offer a premium service to our customers.
389
00:25:02.540 --> 00:25:06.002
And that's how we change the level of professionalism in the industry.
390
00:25:06.042 --> 00:25:07.323
You don't want to be in a race to the bottom.
391
00:25:07.523 --> 00:25:09.124
There's plenty of people that will do it cheaper.
392
00:25:09.465 --> 00:25:10.225
Don't focus on that.
393
00:25:10.545 --> 00:25:11.486
Have a great website.
394
00:25:11.866 --> 00:25:12.967
Follow up with the customer.
395
00:25:13.187 --> 00:25:15.849
Have professional uniforms and decaled trucks.
396
00:25:16.309 --> 00:25:20.211
And have a software that can take their credit card on file and do automations.
397
00:25:20.552 --> 00:25:22.033
Answer your phone for crying out loud.
398
00:25:22.333 --> 00:25:24.855
Those are all things you can do to increase value.
399
00:25:25.255 --> 00:25:25.415
Now.
400
00:25:26.317 --> 00:25:27.137
The busy season.
401
00:25:27.157 --> 00:25:28.018
11.
402
00:25:28.038 --> 00:25:30.079
We have two more steps to build this million-dollar business.
403
00:25:30.419 --> 00:25:32.880
But I don't want you to fail when you're almost there.
404
00:25:33.120 --> 00:25:38.603
And a lot of times what I see when businesses are growing really, really quickly is they'll actually fail during their busy season.
405
00:25:39.003 --> 00:25:42.825
Because they just get completely overwhelmed with the fact that you're going to have a spring rush.
406
00:25:43.265 --> 00:25:46.687
Now, spring rush, busy season, this is when it gets crazy.
407
00:25:46.787 --> 00:25:49.148
And for most home services, we're somewhat seasonal.
408
00:25:49.368 --> 00:25:51.930
There's a period of the year where we get really, really busy.
409
00:25:52.773 --> 00:25:58.836
And so if I look at the fact that this is January, this is maybe the summer, July, and this is the end of the year, December.
410
00:25:59.676 --> 00:26:05.940
This is what, for like most home services, you have this spike in demand when it comes to spring rush.
411
00:26:06.320 --> 00:26:06.580
All right?
412
00:26:07.100 --> 00:26:08.741
This is your busy season.
413
00:26:08.761 --> 00:26:14.684
So you'll need to prepare for the busy season because this is when a lot of people burn out.
414
00:26:16.665 --> 00:26:18.466
It gets so busy and so intense.
415
00:26:18.746 --> 00:26:21.948
And during this season, employees leave because they're burnt out.
416
00:26:22.777 --> 00:26:24.758
There's so many leads just pouring in.
417
00:26:25.318 --> 00:26:28.479
And so how do you make sure you get through the busy season without failing?
418
00:26:28.959 --> 00:26:30.820
You've got to prepare for it right here.
419
00:26:30.840 --> 00:26:34.261
I'm going to make sure that I have all my trucks and equipment ready to go.
420
00:26:34.441 --> 00:26:37.843
I'm going to make sure that I've hired all my team and I've trained them all up.
421
00:26:38.303 --> 00:26:41.304
I'm going to make sure I do that so that during the busy season,
422
00:26:42.004 --> 00:26:50.351
During this period of the year, I'm able to continually keep marketing and advertising to my customers because at that time, everyone needs my services.
423
00:26:50.451 --> 00:26:51.572
Demand is very high.
424
00:26:51.872 --> 00:26:58.717
And if I can keep advertising during the busy season, I'll be able to get way more customers than if I have to stop taking new customers.
425
00:26:58.757 --> 00:26:59.598
I'm booked way out.
426
00:26:59.898 --> 00:27:01.399
I'm late to all of my estimates.
427
00:27:01.660 --> 00:27:02.760
I don't have enough team members.
428
00:27:02.860 --> 00:27:06.343
A couple of them walk off the job and all of a sudden I can't do my jobs.
429
00:27:06.643 --> 00:27:07.024
I can't.
430
00:27:07.324 --> 00:27:08.085
follow up with customers.
431
00:27:08.105 --> 00:27:09.706
I'm showing up late to my estimates.
432
00:27:10.127 --> 00:27:11.048
I don't want that to happen.
433
00:27:11.368 --> 00:27:16.193
And so planning for the busy season is the number one way you can grow your business faster.
434
00:27:16.733 --> 00:27:21.137
Have the employees, your trucks, your equipment, the systems in place to be able to scale.
435
00:27:21.618 --> 00:27:23.439
Have someone be able to answer the phone.
436
00:27:24.060 --> 00:27:25.181
as much as possible.
437
00:27:25.542 --> 00:27:26.823
On the weekends, it's even better.
438
00:27:26.843 --> 00:27:31.408
Maybe you get a virtual assistant to be able to answer the phone when your office is closed.
439
00:27:31.688 --> 00:27:37.114
The goal here is to be able to take as many leads as possible and not have to turn customers away.
440
00:27:37.434 --> 00:27:44.502
Ideally, you do estimates over the phone or you're allowing yourself to be more efficient to be able to absorb as much business as possible
441
00:27:45.022 --> 00:27:49.723
during the busy season without having to turn off your estimates or tell customers you can't serve them.
442
00:27:50.203 --> 00:27:52.684
Now the next thing you'll want to do is the off season.
443
00:27:52.924 --> 00:27:56.985
So there's going to be three or four months in most of our business where it gets really, really slow.
444
00:27:57.165 --> 00:27:57.885
This could be the winter.
445
00:27:58.105 --> 00:27:59.325
For some people it's the summer.
446
00:27:59.565 --> 00:28:02.206
If you're doing snow plowing services, winter is great.
447
00:28:02.546 --> 00:28:03.966
Summer is actually your slow season.
448
00:28:04.366 --> 00:28:06.707
So what can we do during the off season?
449
00:28:07.307 --> 00:28:11.368
First off, I'm going to do other services.
450
00:28:12.796 --> 00:28:19.101
If I'm doing that landscaping business and doing property cleanups and trimming bushes and weeding during the summer and the spring and the fall, great.
451
00:28:19.201 --> 00:28:21.723
I've got leaves that are falling down during the fall.
452
00:28:21.983 --> 00:28:23.524
During the summer, I can do some projects.
453
00:28:23.544 --> 00:28:25.526
During the spring, people want their property cleaned up.
454
00:28:25.806 --> 00:28:26.487
Fantastic.
455
00:28:27.413 --> 00:28:30.476
But during the winter, those three or four months, I've got to figure out a different service.
456
00:28:30.976 --> 00:28:34.059
And so I've got to create season-specific services.
457
00:28:34.720 --> 00:28:41.466
Services that I offer during my go time, during my really busy season, and services that I offer during my off-season.
458
00:28:41.846 --> 00:28:44.629
This could be, if I'm doing landscaping, I could do snow plowing.
459
00:28:45.169 --> 00:28:46.370
I mean, that's a lot of equipment.
460
00:28:46.510 --> 00:28:49.113
Well, maybe I could do Christmas light installation.
461
00:28:49.513 --> 00:28:56.035
Or maybe I could do some other service during the winter that I can't do during the busy season.
462
00:28:56.536 --> 00:28:58.456
So I've got to increase my service mix.
463
00:28:58.796 --> 00:29:01.197
I've got to increase the service offering to my customers.
464
00:29:01.597 --> 00:29:03.418
Also, what I'm going to do is I'm going to upsell.
465
00:29:04.418 --> 00:29:05.999
I'm going to create those other services.
466
00:29:06.639 --> 00:29:06.939
Check.
467
00:29:07.399 --> 00:29:11.101
Then I'm going to upsell my existing customers that I have had all year long.
468
00:29:11.361 --> 00:29:14.062
I'm going to upsell and also cross-sell them.
469
00:29:15.128 --> 00:29:16.349
into other services.
470
00:29:16.769 --> 00:29:20.272
So upselling, I'm going to sell more of my current services to my customers.
471
00:29:20.632 --> 00:29:27.918
Cross-sell, I'm going to sell them another service that is adjacent, a little bit different, but I'm able to increase my revenue during the off-season.
472
00:29:28.098 --> 00:29:34.643
Because most home services, most home service businesses will go out of business because they're off-season.
473
00:29:34.983 --> 00:29:35.344
Why?
474
00:29:35.604 --> 00:29:39.387
Because of this very, very bad thing called fixed expenses.
475
00:29:40.617 --> 00:29:46.661
Fixed expenses come in the form of expenses that do not go down, even if your revenue during the offseason goes down.
476
00:29:47.021 --> 00:29:53.985
So your revenue might go from $100,000 a month, but if it drops all the way down to $10,000 a month, well, you still have fixed expenses.
477
00:29:54.266 --> 00:29:55.486
Your insurance doesn't go down.
478
00:29:55.947 --> 00:29:57.508
Your rent doesn't go down.
479
00:29:57.568 --> 00:29:58.868
Your utilities doesn't go down.
480
00:29:59.149 --> 00:30:01.410
Any salaries that you're paying your employees, they don't go down.
481
00:30:01.430 --> 00:30:03.151
They're still paying the paid salary.
482
00:30:03.711 --> 00:30:05.653
Any debt, this is the one that really kills people.
483
00:30:06.313 --> 00:30:10.535
Like the bank isn't going to like not let you pay for four months of the year because you have this big debt.
484
00:30:10.795 --> 00:30:22.960
So these fixed expenses, if I can keep those low during the winter months, during the slow season, you'll absolutely be able to weather the storm and build a seven figure $1 million business.
485
00:30:23.060 --> 00:30:26.201
I truly believe if you follow these 12 steps, you'll be able to build that business.
486
00:30:26.521 --> 00:30:35.245
And that size of business is required to be able to afford the management and be able to give them incentives, profit sharing and bonuses so that you can go faster.
487
00:30:35.705 --> 00:30:43.209
Somewhere else, go build another business, go start a different industry, start a second location, invest in real estate, go on it, do whatever you want.
488
00:30:43.809 --> 00:30:46.490
That's really the goal of building a $1 million business.
489
00:30:46.510 --> 00:30:52.673
And I believe if you follow these 12 steps, yes, it might take you three, four, five, six years to build a business.
490
00:30:52.854 --> 00:30:53.614
But I promise you.
491
00:30:53.934 --> 00:31:02.840
Building a business that's doing a million dollars in revenue and every day you don't have to be there for operations is well worth five, ten years dedicating yourself to it and putting in the hard work.
492
00:31:03.040 --> 00:31:07.503
If you want more resources, there's a bunch of courses, templates, everything that you need.
493
00:31:07.684 --> 00:31:08.784
Go to MikeGandys.com.
494
00:31:09.145 --> 00:31:15.909
And if you want to grow your home service business, use CopilotCRM.com to be able to create systems and procedures in your business.
495
00:31:16.370 --> 00:31:16.890
We'll see you soon.
