Video Transcript

00:00
Welcome back to work on it
00:02
Wednesday. Mike Allen here with
00:03
Dylan Rothenberg of the Simple
00:05
Grow Team. helping you work on
00:07
your business, not in it just
00:08
like Michael Gerber. So, one of
00:09
the things we’re diving into
00:11
today on Workout It Wednesday
00:13
is the key KPI is the key
00:15
performance indicators that you
00:16
should be looking at in your
00:17
business for success now and
00:20
success in the future. So,
00:22
Dylan, thanks for joining me
00:23
again on Wednesday here and a
00:25
lot of people rave reviews
00:26
about workout at Wednesday
00:27
because we are actually
00:28
breaking down what we’ve done
00:29
in both of our seven figure
00:31
businesses and what is
00:32
important to look at what’s
00:34
important to work on and what
00:36
is the end goal and how to
00:38
avoid those hurdles of growth
00:39
all along the way? Well, I’ll
00:42
trying to find employees to
00:43
train employees and do
00:44
everything else in between. So,
00:46
without any further delay, I’m
00:47
going to pop the screen open
00:48
here and we will take a look at
00:52
it here. Yeah, let’s do it.
00:56
Alright, So, I’ll let you leave
00:57
brother and I’m sure I will
00:59
chime in. Probably, we’ll talk
01:00
right over the top as usual.
01:02
So, what happens That sounds
01:04
good. That sounds good. Yeah, I
01:06
know. it’s a hot topic
01:08
especially being midseason with
01:09
a lot of the lawn care guys and
01:11
girls but it’s easy to get
01:13
pretty head down in the
01:14
business and just like be like,
01:15
I think I’m doing good. I hope
01:17
I’m doing good. I got some
01:18
money in the bank. It’s kind of
01:20
nice when someone can come in
01:21
and just tell you the numbers
01:23
that you should be reviewing,
01:24
you know, on a weekly or at
01:26
least a monthly basis and once
01:28
you have the system set up to
01:30
do so, it doesn’t take more
01:33
than a couple of minutes to
01:34
look at this number and you’re
01:34
going to know if you’re off
01:35
base and then it requires some
01:38
further attention or if that
01:39
number looks pretty good and
01:41
and the data source is
01:42
accurate, then really, you
01:44
know, you got a pretty sound
01:45
business Now, I’m I definitely
01:49
love a lot of the sales staff
01:51
stats or I can nerd out on that
01:52
all day but a lot of people
01:57
that we help with especially in
01:57
the the service autopilot
01:59
community. They’re really
02:01
unclear of a lot of their sales
02:02
numbers. So, if you’re having
02:05
any type of sales issues, you
02:07
know, the first thing you gotta
02:08
be looking at is is what
02:10
percentage are you actually
02:11
converting and you know, if
02:13
you’re using a CRM, this is a
02:14
very, very easy number to pull
02:16
but even if you’re using like
02:17
pen and paper, it’s not
02:19
impossible to pull. It’s
02:20
literally the number of quotes
02:21
that you’ve sent out or sorry,
02:24
the number of courses that
02:24
you’ve won divided by the total
02:26
number of quotes that you’ve
02:28
sent out. Alright? So, very,
02:30
very simple calculation and and
02:31
the 50% number kind of gets
02:33
thrown around quite a bit that
02:35
you want to be ideally
02:36
converting 100% of your quotes
02:38
but if you’re converting 100%,
02:40
you know, you’re you’re
02:41
probably priced a little bit
02:42
too low. So, there is kind of a
02:43
fine line between winning too
02:44
many quotes and leaving a
02:47
little bit of profit on the
02:48
table. Interesting. So, what
02:51
you’re talking about is a
02:51
conversion from somebody who
02:52
hits your website, calls your
02:54
office. it’s a bot or something
02:55
like that on social media or
02:56
text us in and then it
02:58
percentage that converts into
03:00
an actual client. Yes, exactly.
03:04
So, if we’re going out across
03:06
multiple marketing sources, why
03:07
this would be important is if
03:08
we’re going out and scaling the
03:09
business. Now, if we have
03:10
historical numbers, it’s really
03:12
becoming a math game. So, if I
03:13
put X amount of flyers here, X
03:16
amount and Facebook X amount
03:17
here on average, these
03:18
percentage to convert across
03:20
each lead source and become a
03:22
client Yeah, 100% and it’s
03:25
funny that you say lead sources
03:27
because that is This is kind of
03:31
the next topic. So, the the
03:32
conversion percentage great on
03:34
a high level, right? You want
03:35
to know what kind of high
03:36
level, okay? we’re we’re
03:37
winning 50% of our quotes that
03:39
that that that’s great to know.
03:40
You can kind of have a little
03:42
bit more of a predictable sales
03:43
flow and and budget knowing
03:45
that you close 50% of all
03:47
estimates that you get and like
03:48
Mike said, you can kind of work
03:49
backwards and say, well, how
03:50
many marketing pieces or how
03:52
much marketing do I need to do
03:54
to you know, if you want to get
03:56
100 new clients this year and
03:58
you’re your closing percentage
03:59
is 50% well then we need to
04:01
generate 200 opportunities,
04:03
right And you know, if you if
04:03
you send a thousand postcards,
04:06
Let’s say and only 10% or or 1%
04:09
of people get back to you.
04:10
Well, these are all just data
04:11
figures that you can kind of
04:13
work backwards and say, well,
04:13
we’re going to to send out
04:14
maybe it’s 25 thousand
04:16
postcards to get enough people
04:18
requesting a quote so that we
04:19
can close 50% of those and
04:21
reach our sales goal but like
04:24
you said, not all marketing
04:26
sources are 100% equal You need
04:30
to be tracking what percentage
04:31
of your leads are actually
04:33
coming from each one of these
04:35
marketing sources and then,
04:37
almost more importantly, what
04:38
percentage of those leads from
04:39
each marketing source are
04:41
actually converting into
04:42
clients because it’s it’s great
04:43
to say, yeah, we got 10
04:45
thousand leads from Facebook
04:46
but if 0% of them actually
04:49
converted into a client you
04:51
know, maybe they’ll convert in
04:51
the future but really we we
04:53
kind of want to live in the
04:54
moment here and get some
04:55
concrete sales today.
04:57
Essentially, all those
04:58
Feel-good likes really don’t
04:59
mean anything at the end of the
05:00
day, it’s all about dollars in
05:01
and dollars out. So the funny
05:03
thing is I haven’t seen this so
05:04
I’m going to let you go I have
05:05
a feeling I know your next
05:06
slider too but I think this is
05:09
really important. So, I think
05:10
lead sources you need to be
05:11
tracking in my opinion, the
05:13
paid sources but also the quote
05:16
unquote non paid sources as far
05:18
as like client referrals and
05:20
people referring as well as
05:23
people seeing your truck or
05:23
your crews out in the field
05:25
because technically, you’ve got
05:26
that truck or car wrapped
05:28
probably or loaded up. There is
05:30
a cost to that but there are
05:32
lead sources that are going to
05:33
come off of those that will
05:34
convert higher or lower based
05:36
on the actual lead source
05:37
itself. So yeah, great work.
05:39
I’m kind of curious to see what
05:39
your next slide is. I’m not
05:40
really prepared today So, yeah,
05:42
I think I know where you’re
05:44
going and I might have missed
05:45
that one but there there’s
05:46
going to be a couple main KPIs
05:47
that I was going to ask you at
05:48
the end of just like, you know,
05:49
what what did you use in
05:51
Callahan’s and and what are you
05:51
kind of thinking in the back of
05:53
your mind? High level at simple
05:54
gross that that we can we can
05:55
definitely chat about too but I
05:57
think before we go over to the
05:59
sales here quick, let’s just
06:00
let’s just pause on lead source
06:03
for a second. I think I know
06:04
where you’re going to go. Maybe
06:05
I was going maybe we’ll wrap on
06:06
it it together. So once we’ve
06:07
got that we’ve got those dollar
06:09
amounts in track per campaign
06:10
how much we’re spending for
06:12
each marketing campaign. each
06:13
flyer and campaign. What is the
06:15
cost per client on average, a
06:19
client acquisition cost. So,
06:21
how much is it costing you to
06:22
get the client? So, you may be
06:24
looking at it like, wow,
06:25
HomeAdvisor is like a really
06:26
cheaply that cost me thirty
06:27
bucks. like, we should just
06:28
triple down on HomeAdvisor but
06:31
the second part of that is that
06:32
client lifetime value. So, is
06:35
it a 225 dollar lead
06:37
acquisition cost? It’s a
06:38
lifetime value is only worth
06:40
250 Bucks where you may have
06:41
150 $150 client acquisition
06:44
cost on a flyer Facebook but
06:45
you’ve got client lifetime
06:49
value. So, you kind of gotta do
06:51
the math back and forth to see
06:52
which one of those you want to
06:53
double down on and you may want
06:55
to spread it across all of them
06:56
and now, I’m not emotionally.
06:57
You may know what the client
06:59
lifetime and revenue that’s
07:00
generating in there. Yeah,
07:03
exactly and another major one
07:04
that II missed out here which
07:06
ties directly into the lifetime
07:08
value is just the overall
07:10
customer churn, Right? A lot of
07:12
people that we’re dealing with,
07:13
you know, my my previous
07:15
company included II know it’s
07:16
yours as well. We’re growing
07:18
really quick and often A lot of
07:21
the focus can just be on
07:22
growing the sales and
07:23
everything like that. Well,
07:24
it’s of no value to you. If you
07:25
grow 100% and then you lose,
07:28
you know, everything that you
07:29
grew by clients churning out
07:32
through the through the back
07:33
door. It’s coming to the top of
07:34
the funnel. There’s new ones
07:35
and the old ones are popping
07:36
out the bottom So we need to
07:37
have that balance to keep an
07:38
eye on that. I couldn’t agree
07:39
more. Exactly. So, just having
07:41
a pulse on those numbers. It
07:42
doesn’t need to be this big
07:44
complex system. You know, if
07:45
you’re using a CRM of course
07:46
that can be tracked but even if
07:47
you’re not just okay if
07:50
cancelled this month. That’s
07:51
not inherently good or bad.
07:53
That might be a 50% decrease
07:55
from last June or you may have
07:58
had no cancels in June. So,
08:00
this is kind of a number that
08:01
you need to keep a pulse on and
08:02
just say like are my overall
08:04
cancellations as a percentage.
08:06
I’m going down or going up and
08:08
just having a really basic
08:09
pulse on that. It’s going to be
08:11
huge, right? These are these
08:13
are numbers that are crucial to
08:14
the success of your business.
08:17
So, the next one here is just
08:21
people can look at the sales
08:22
number and they can say, hey,
08:23
we’re we’re growing quick but
08:24
II. think I really, really
08:26
important. One to be looking at
08:27
is just how are we doing? So,
08:30
let’s just look at May that
08:31
just passed as an example. How
08:33
did we do this? May versus how
08:35
did we do last May? Yes,
08:38
looking at the aggregate of the
08:39
sales numbers is is obviously
08:41
important but you want to be
08:42
comparing apples to apples and
08:45
your sales are going to be
08:46
somewhat cyclical even if you
08:47
have a 12 month out of the year
08:48
business. right? So, you don’t
08:51
just want to have 100 thousand
08:54
per month sales goal. That’s
08:56
probably not going to be 100%
08:58
accurate. There’s going to be
08:59
dips in it where it might be
09:00
150 thousand in sales in May
09:03
but then it might be 50
09:05
thousand in June or whatever
09:07
that looks like you just want
09:08
to have accurate sales numbers
09:10
that you’re forecasting and
09:12
comparing to. Yeah, I love the
09:14
fact that you mentioned
09:15
seasonality because all of us
09:16
even in home cleaning your lawn
09:17
care pest control, there’s
09:18
going to be some seasonality so
09:19
we need to put that in there
09:20
and especially like even around
09:22
holiday seasons that may be
09:23
good or bad depending on the
09:24
service industry you’re in but
09:25
we need to be going in that YOY
09:27
is year over year comparison.
09:30
So, we need to go year after
09:30
year and compare them. So, if
09:31
you’re in QuickBooks, we can do
09:34
a previous year comparison in a
09:37
cure basis. I recommend and
09:38
then we want to go to percent
09:39
change in the dollar change.
09:42
You can actually look what you
09:42
did in 2020. 2021 and really
09:45
get a benchmark. So you’ll
09:46
start to see if you look year
09:48
after year. There are some
09:49
definite trends in most
09:50
markets. Well, pretty much all
09:51
it’s not going to recommend. So
09:52
that that’s that’s good stuff.
09:54
they’re doing. Yeah. Yeah. for
09:57
sure. And if you’re kind of
09:57
like you mentioned, QuickBooks,
09:59
we mentioned, you know, CRM we
10:01
mentioned maybe pen and paper.
10:03
Yes, this might be coming from
10:04
different sources and if you’re
10:05
thinking like I don’t really
10:06
have the time to do this, you
10:07
know, this is something that
10:09
once explained to an admin
10:10
staff or someone else you have
10:12
helping you at your company,
10:13
you know, even a virtual
10:14
assistant. these are numbers
10:15
that they could be pulling and
10:17
compiling for you on a monthly
10:19
basis and you meet with them
10:20
for five or 10 minutes and and
10:21
review those numbers but you
10:23
know that they need to be
10:24
useful numbers of course and
10:25
they need to be numbers that
10:26
make So, when you see them, you
10:30
can make decisions off of them.
10:32
I know Lori from our team
10:33
always says like, yes, I can
10:34
get you this data but what are
10:37
you going to do with it? Is it
10:38
actually going to be something
10:39
that’s useful to you and you
10:40
can actually make a decision
10:41
and and it’s going to change
10:41
the way you’re doing things now
10:43
So, that’s that’s something to
10:45
keep in mind as well. Now, this
10:48
this ties in a little bit to
10:49
the webinar we’re going to be
10:51
doing tomorrow and we’re going
10:52
to be going into the major
10:54
depth with this but daily You
10:56
know, you gotta be finding the
10:58
time to look at your numbers on
11:00
a daily basis. This is
11:02
literally the lifeblood of your
11:03
business. If these jobs are
11:05
profitable or not, if if you’re
11:08
dealing with labor in any way,
11:09
shape, or form, you know,
11:10
that’s going to be the major
11:13
factor here. If these jobs are
11:14
getting done in a timely
11:16
manner. So, basically, the
11:18
daily budgeted time over under
11:21
is just a simple check under
11:22
our report. If you’re using a
11:24
CRM to see the times that I set
11:27
up for budgeted hours. So, if
11:29
if we’re estimating a job, it
11:31
should take about 1 hour. Well,
11:32
in reality, how much time did
11:35
that actually take? So, you
11:36
know, if it took 50 minutes,
11:38
great. You know, we’re we’re
11:39
actually basically, we still
11:41
have time in the budget but if
11:43
all of a sudden that Job took 2
11:44
hours. Well, your job probably
11:47
just cost you money Yeah and I
11:50
think as you’re diving into it,
11:51
Dylan, I don’t know if you can
11:52
apply it a little bit already
11:54
but kind of just specifically
11:56
dialing into it’s not just the
11:57
budgeted time on the specific
11:59
jobs we also want to track the
12:00
non mobilization. So, like
12:03
literally your shop time, your
12:05
drive time. So, like the way we
12:06
did it at my company, really is
12:10
what we did is I got a piece of
12:11
paper. I don’t know if you’ll
12:12
be able to see it but
12:13
basically, when we started at
12:15
Job, A and went to Job B, the
12:19
clock actually started ticking.
12:20
So, you’re going to you go.
12:22
that clock is starting to tick
12:23
a job B. So, if you’ve got a 30
12:27
minute job budget at a job, B,
12:30
you’re going to take your 30
12:31
minute, starts clicking when
12:32
you leave Job A now where it
12:34
gets interesting is if you’ve
12:35
got two people on that crew or
12:36
truck that thirty it now
12:38
becomes 15 minutes and you’ve
12:40
gotta cover that drive time.
12:42
So, what we’re finding most
12:43
service businesses is a
12:44
two-person crew is going to be
12:45
optimal maximum size unless
12:47
you’re one or two properties
12:48
the whole time because if you
12:49
have an 8 hour a day and you’ve
12:51
got just 1 hour of just
12:53
mobilization, that’s a whole
12:54
extra hour time. Say like
12:58
thirty-six bucks an hour break
12:59
even that’s an extra $36 a day
13:02
of expense that’s basically
13:03
being eroded from the profit.
13:05
So, you really need to go in
13:06
and figure out what’s that non
13:08
billable mobilization and work
13:10
with financial expert and build
13:12
that into your hourly rates.
13:13
You’re on average, you’re
13:14
covering that throughout your
13:15
whole business but yeah, the
13:16
daily budget of time over and
13:17
under is huge and that that
13:19
builds transparency with your
13:20
team. So, you got a dry erase
13:22
board or TV in the shop and
13:24
you’re showing them hopefully
13:26
what they’re doing and building
13:27
a friendly competition with
13:29
quality for a week
13:30
accountability Yeah, so you’re
13:32
you’re basically saying
13:33
obviously the more guys on a
13:35
crew, the more windshield time
13:37
you’re going to have and Yeah,
13:39
you definitely gotta be
13:40
tracking that drive time
13:42
because that you know,
13:43
Thirty-six $36 per day. Let’s
13:45
say that you’re wasting
13:47
windshield time actually might
13:47
be fairly low. Oh yeah. It’s
13:49
significantly low. I mean, it’s
13:50
it’s we see 222 and a half
13:52
hours of non no mobilization.
13:54
Usually an average of most
13:55
companies we work with. The
13:56
other interesting thing is
13:57
like, so let’s just say we’re
13:58
doing a mulch installation job
14:00
where we’re going to pick up
14:01
materials at the nursery design
14:03
and build like a lot of
14:03
companies aren’t taking in
14:05
account for the extra two to
14:07
three guys on the truck when
14:08
they’re going to the nursery
14:09
and sitting in line for a half
14:10
hour and then driving from
14:11
their shop to the nursery to
14:13
the job. So, after that first
14:15
or have a preloaded maybe the
14:16
night before when you go to do
14:18
that job, if you need another
14:19
five or six yards of mulch, you
14:20
got a two or three man crew.
14:22
Those other two guys should
14:23
really be spreading and
14:24
cleaning up that job site while
14:25
the one guy goes and picks it
14:27
up and brings it back. So,
14:28
you’re you’re taking two thirds
14:29
of that non billable drive time
14:31
and minimizing it. So those are
14:31
like the silent killers that
14:33
when we’re so busy, we don’t
14:35
track them but then we see
14:37
people come back to us and
14:38
like, you know, September,
14:39
October and like Mike like
14:40
we’re we’re we’re really
14:42
crushing. We’re hitting these
14:42
budgeted times on a daily basis
14:43
on job. What’s going on with
14:47
the financial number? But when
14:49
you dive in to like a service
14:50
autopilot, you have a drive
14:52
time costing a factor, not
14:54
available costing effect based
14:55
on the particular guys with
14:56
labor and labor burden and it
14:58
clearly defines like, yes, you
14:59
are winning on the job.
15:00
Everything else is literally
15:02
destroying your profitability
15:04
so that that’s important to
15:05
track that daily and weekly for
15:06
sure. Yeah II see a lot of
15:09
people doing that too where you
15:10
know, they’re they’re charging
15:11
a delivery fee because they
15:13
gotta go and get the materials
15:13
but the delivery fee definitely
15:16
does not take into account, you
15:17
know, anything going wrong. You
15:19
know, they have they have to
15:20
stop somewhere and get gas.
15:21
whatever that is and it’s
15:22
sometimes like 2020 Bucks. I
15:24
just want to maybe talk on
15:26
twenty bucks for for a delivery
15:27
charge. Well, like you said, if
15:29
if it takes 30 minutes and all
15:31
of a sudden you got three guys
15:32
on that crew 30 minutes there,
15:33
30 minutes back maybe you know,
15:36
fifteen extra minutes of of
15:37
just doing who knows what all
15:39
of a sudden that adds up very
15:40
very quickly. Yeah it’s it’s
15:43
going to be almost three
15:44
additional hours that you
15:45
didn’t put in a job. I think
15:46
so. So if you’re looking three
15:48
yards of mulch installation.
15:49
Well, on average, it takes
15:51
about an hour per yard to
15:52
install it. So, you got a 3
15:53
hour budget. You need to
15:54
account for the other 3 hours
15:55
of screwing around. everything
15:56
else during the day. So, that
15:58
that seems to be the silent
15:59
killer that we see if you don’t
16:01
track it and realize it if you
16:02
realize it in the moment, you
16:04
can make some course
16:05
corrections but if you’re
16:06
looking at this November,
16:07
December, it’s too late like
16:09
you’re done Yeah and and
16:12
volume. obviously, you want
16:14
profitable volume but volume
16:15
does cure lot of things in that
16:18
regard, right? If you had a
16:19
massive dump trailer where you
16:20
can load up a bunch of yards of
16:22
mulch and that drive time
16:24
essentially in effect could be
16:26
spread out between, you know,
16:27
that that load up time and and
16:29
all that can be spread out
16:30
between four or five mulch jobs
16:32
and all of a sudden that that
16:34
fact is way less and then the
16:36
same thing with lawn mowing
16:37
too, right? If you’re driving
16:38
15 minutes to every job, half
16:41
of your day is going to be
16:42
driving versus you you park in
16:43
a neighborhood and you can bang
16:44
out, you know, 2020 job or
16:46
whatever that might be. Yeah.
16:48
And it’s interesting. So, like
16:48
as you’re talking about that,
16:50
just kind of a pro tip. So,
16:51
like getting back to the mulch
16:52
example because a lot of this
16:54
stuff can actually be
16:55
eliminated. So, when you’re
16:56
tracking this daily, it causes
16:58
you to actually look at it in
16:59
creative ways because it’s it’s
17:00
a it’s a pain point that you
17:02
may have a hard time overcoming
17:03
with your pricing in your
17:04
market. So, what we did is we
17:05
went to Lowe’s and Home Depot,
17:07
pitted them against each other
17:08
and in the spring and late
17:10
spring, they always run the
17:11
like Ninety-seven a bag of
17:13
mulch If you buy like six bags.
17:14
So what we did went to the pro
17:16
desk and I went to the pro pro
17:19
desk manager and said, listen,
17:19
we’ll we’ll commit to buying a
17:21
tractor trailer, full worth of
17:22
bagged mulch. They don’t make
17:24
you sign anything. They don’t
17:25
hold you to it but we were able
17:28
to get our bagged premium
17:29
mulch. I think in a dollar 90.7
17:30
a bag and then we went to him
17:33
and said, well, listen, can you
17:34
guys handle the delivery? So,
17:36
we actually dialed it to, I
17:37
believe that a few years ago,
17:39
it was $10 per delivery. It
17:41
didn’t matter if it’s two bags
17:42
or whole tractor trailer but we
17:44
did want an HOA that was 187
17:46
yards. I think 185 yards of
17:48
mulch with bag mulch. They
17:49
staged all the pallets in front
17:51
of all the units. We cut 2 days
17:52
of labor off with a submarine
17:54
man crew and the clean up was
17:55
like nonexistent and and the
17:58
client saw it as a higher
17:59
perceived value because it was
18:00
bagged mulch like was it was it
18:02
probably not but perception was
18:03
was wow we’re getting premium
18:05
mulch for a really good price
18:08
but where I’m going with this
18:09
is now you may not need that
18:10
dump truck or the dump trailer.
18:11
You can have a Ford Ranger, a
18:13
real small Chevy pickup pickup.
18:16
Two-wheel Drive, southern
18:17
model. It has some wheelbarrows
18:19
and blowers and some brakes in
18:20
there and not have to have a
18:22
sixty or $70000 vehicle. So,
18:25
now, you can have four or five
18:26
crews doing the same amount of
18:27
work and have it drop shipped
18:29
and staged the day before so
18:31
that there’s there’s some
18:32
creative ways once we look at
18:33
the daily times when you’re not
18:35
hitting them or you’re hitting
18:36
them like you can say, okay,
18:37
how can we creatively resolve
18:39
the issues because we’re making
18:40
great money on site but the
18:42
overhead of this machine, this
18:44
big dump truck and kind of a
18:46
couple of guys who was killing
18:47
us. So, if you’re not looking
18:48
at it, Don’t start thinking
18:49
outside of the box. how to
18:50
creatively overcome that. So,
18:52
just kind of a pro tip that we
18:53
did and I know quite a few
18:54
companies still doing it. So,
18:56
Lowe’s and Home Depot, you want
18:57
to talk to the pro desk? not
18:59
the Garden Center pro desk from
19:00
what I understand gets paid on
19:02
AA volume, not a profit
19:04
percentage. So, they’re willing
19:05
to take a loss on the product
19:06
just to get their bonuses. So,
19:09
pretty cool. Wow. Yeah, That’s
19:10
like the definition of work
19:13
smarter and not harder. That’s
19:15
and potentially cutting out
19:16
some trailer and truck costs.
19:18
That’s that’s huge. Yeah, it’s
19:20
kind of something cool that I
19:21
actually learned from Garrett
19:22
Matthews. I gotta give credit
19:22
where credits due the Southern
19:23
Boys pretty smart when it comes
19:26
to make it work. Yeah, for
19:29
sure. Next one here, we don’t
19:30
need to spend much time on it
19:31
but yes, you can. You can look
19:34
very granular, Have the daily
19:35
numbers and you you don’t want
19:37
to, you know, dismiss a day
19:38
that’s unprofitable. Obviously,
19:40
you want to look at that a
19:41
little bit further but hey,
19:42
they could just be having an
19:43
off day too. You know, our
19:45
market was huge. Some sometimes
19:47
it would literally be pouring
19:49
rain in one section of it and
19:50
snowing in the winter and and
19:52
other times there be no
19:53
precipitation, right? So, this
19:55
obviously affect the the
19:58
efficiency on some of these
19:59
days. So, it is nice to look at
20:01
things in an aggregate and say,
20:03
how do they actually perform in
20:04
the week, right? If you don’t
20:06
want to necessarily be
20:07
bickering over your guys about
20:09
being a little bit less
20:09
efficient on 1 day if they
20:11
absolutely crushed it on the
20:12
week, right? So so looking at
20:15
things as a whole II think is
20:17
probably actually almost more
20:19
valuable in the long run but
20:21
you do need to have a pulse on
20:22
the daily numbers for sure. I
20:23
love it. Yeah. Yeah. So that
20:26
one obviously pretty self
20:27
explanatory there. We don’t
20:28
need to spend much time here.
20:30
We’ll be hitting more of that
20:31
on the webinar tomorrow night.
20:32
I believe at 8 PM Eastern but
20:33
the the idea is like when you
20:35
look at that weekly thing,
20:36
we’re going to dive into that
20:37
tomorrow night. really lift the
20:38
hood and dial into it but
20:39
you’re going to find you got
20:39
crews that are crushing it for
20:41
you and you got other ones that
20:42
are bleeding you dry and
20:43
they’re just hiding behind the
20:44
scenes. Keep that pulse to 40
20:46
hours. So, we’re going to show
20:47
you on that webinar how to
20:49
really dial in and understand
20:51
that and be able to actually
20:54
use that data and work with
20:56
your teams for a productive but
20:58
efficient conversation to get
21:00
them back on track and we’re
21:01
going to coach them up or well,
21:03
we just might have to coach him
21:04
out. You never know. Yeah,
21:06
yeah. There’s a fine line
21:07
between, you know, obviously
21:09
you want peak performance and
21:11
efficiency but people can get
21:13
pretty pretty. I don’t know
21:16
what the word is but a little
21:17
bit antsy when you’re you’re
21:18
riding them a little bit too
21:19
hard on on just like peak
21:21
performance 24/7 there are
21:22
going to be oh they’ll get
21:23
sloppy. they will get sloppy.
21:25
I’ve seen both ends and we’ll
21:26
talk about that tomorrow night
21:28
too for sure. No for sure. So,
21:30
this isn’t necessarily maybe
21:32
something that’s ingrained in
21:34
the CRM whatever CRM, you might
21:37
be using if your payroll is in
21:39
there, of course, you know, it
21:41
would be but something that
21:43
people don’t necessarily have a
21:44
huge pulse on. Yes, we’re we’re
21:46
calculating the drive time and
21:47
all that but what’s the
21:49
percentage of actual time that
21:51
you’re paying people for or
21:53
sorry that they’re actually
21:54
working like kind of billable
21:56
hours to to some degree versus
21:59
the actual payroll hours that
22:00
you’re paying them basically,
22:02
the end of the week, right?
22:04
Because yes, you know, you
22:04
could be tracking tracking,
22:06
drive, time and service
22:07
autopilot. You could be trying
22:08
to track everything but
22:10
sometimes little things will
22:12
get missed and really what
22:13
you’re actually paying them for
22:14
that that gross payroll amount.
22:16
however many hours are actually
22:17
getting paid for. It is a very
22:19
valuable number that you need
22:20
to be tying back into some of
22:22
the performance data here to
22:24
make sure that it is 20% of our
22:27
week, you know, just kind of
22:29
fudged and and that’s loading
22:30
time and shop time and gas time
22:32
and once have a baseline for
22:35
that. Maybe. maybe 20% is the
22:37
number. Then, you can start
22:38
looking at ways like Mike said
22:40
with the the mulch example but
22:43
maybe it’s something II know
22:44
you’ve spoken about this before
22:46
many times where the guys are
22:49
near one job, they’re going to
22:50
a gas station and all of a
22:52
sudden that that quick little
22:53
fill up or bathroom break is is
22:55
a thirty-minute break that that
22:56
really wasn’t scheduled. So,
22:58
all these little things can be
22:59
looked at once you know how
23:01
much efficiency are we losing
23:03
in a week so things like that
23:06
you can look at for that
23:07
specific scenario would be
23:07
well, maybe if you’re using the
23:08
gas as an excuse. Maybe we
23:11
actually get some fuel tanks on
23:13
site and the second stop of the
23:15
day isn’t the gas station and
23:16
you know, Tim Horton’s and you
23:18
know, 30 minutes of unavailable
23:20
time. I don’t know about them
23:22
tidbits, brother. I want to cut
23:23
up the Timmy stop but you know,
23:24
those can be expensive. We had
23:26
a guy who was costing him about
23:28
$1500 in additional paper
23:30
performance pay, just stop at
23:31
Dunkin’ Donuts each day. So,
23:33
we’ll we’ll dive in a little
23:34
more of the math on that
23:35
tomorrow night but that was
23:36
that was an eye-opener to the
23:38
individual because at that
23:38
point he was getting paid by
23:39
the budget of time not the
23:42
actual time and I wanted to
23:42
make more money and he just
23:43
couldn’t understand why he
23:44
wasn’t hitting his numbers like
23:45
everybody So, we use the GPS in
23:47
the truck to kind of figure out
23:48
what was going on and lo and
23:50
behold, it was at the Dunkin’
23:51
Donuts stop that was crushing
23:52
him. Put him right in the
23:54
traffic. Yes. No, that’s that’s
23:57
huge. So, these are just kind
23:58
of a variety of KPI is that you
24:00
need to be thinking about but
24:01
really what you want to do is
24:03
kind of bundle this to some
24:04
type of document. If it’s all
24:06
in your CRM great. These are
24:07
just going to be reports that
24:08
you’re kind of looking at but
24:10
the more important thing is not
24:11
having the report that you
24:14
know, you can go and access is
24:14
do you actually have a pulse to
24:16
be looking at these numbers? Is
24:18
it weekly, is it monthly Do you
24:20
actually have something blocked
24:20
out in your calendar It says,
24:22
no matter what else is going
24:23
on, I’m going to take 5 minutes
24:25
and look at these numbers and
24:26
make sure that my business is
24:28
on track and this probably
24:30
isn’t the totality of all the
24:31
ratios and and you know, KPIs
24:34
that you need to be looking at
24:35
but this is definitely a good
24:36
start and if there’s any other
24:39
other key ones that people want
24:40
us to dive into a little bit
24:41
deeper, you know, you can put
24:42
it in the in the in the
24:43
comments or any major ones that
24:44
you think we missed but this is
24:46
I think is a great starting
24:48
point and obviously we’re going
24:49
to dive into things quite a bit
24:50
deeper tomorrow Yeah, I know.
24:52
Great, great work on this deal
24:53
and I think that I mean to be
24:54
transparent just for simple
24:55
growth. I was on QuickBooks
24:57
online before a team call at
24:58
eleven and I was running the
25:00
stats mid mid month. How much
25:01
we had to hit for the next 15
25:03
days and I was also looking at
25:06
the budget first so setting up
25:09
a budget and QuickBooks desktop
25:11
or online so maybe that I’m one
25:12
of these working on Wednesdays.
25:13
We can actually go in into one
25:15
of my Quickbooks account and
25:17
actually show you how to build
25:18
out a budget but that’s huge
25:19
because now when we go in
25:21
QuickBooks. We actually have a
25:23
budget. and based on the actual
25:25
numbers that are happening, we
25:26
can run those comparisons and
25:27
there actually is some good,
25:29
great data in there So, that
25:31
that’s a key but I think if you
25:33
are going to go down that road
25:35
with the budgeting and
25:36
Quickbooks, have a have a talk
25:37
with your accountant to make
25:38
sure they’re talking contractor
25:39
accounting, not accountant,
25:41
accounting talk because the way
25:43
they’re going to approach
25:45
certain things and track it is
25:46
going to be for a tax purpose
25:48
and not necessarily how you’re
25:50
going to look at it as a daily
25:51
or weekly or monthly or
25:52
quarterly cadence for profit
25:55
loss. So, those are the major
25:57
things you want to look at
25:58
because your accountant could
25:59
be accelerating the
26:01
depreciation. So, it looks like
26:02
you made more or less than you
26:03
actually did. It could be
26:04
looking at a cash basis when
26:06
you actually got paid not when
26:07
the the actual revenue was one
26:09
and sold. So, those are some
26:11
things we want to look at and
26:12
then probably the last one is
26:15
going in and for I was going
26:20
with this one but basically
26:21
going in and track any of the
26:25
the reoccurring subscriptions
26:27
or like services as far as like
26:28
lawn mower and fertilizing.
26:30
what is the reoccurring remedy
26:32
that goes pretty much forever
26:33
to the cancel and then, what’s
26:35
the one time revenue?
26:36
Obviously, the value of your
26:37
business, the longevity of the
26:39
business is going to be based
26:40
upon the reoccurring than the
26:43
one time and then the third
26:45
stat, there is the expansion of
26:46
the upsell. So going in and
26:48
raising that client value
26:50
systematically through an
26:51
upsell process the way we do in
26:52
the automation. So, Dylan. Any
26:54
clues and thoughts here before
26:55
we wrap it up? I know I gotta
26:56
get on a training call with
26:58
another client here in a few
27:00
minutes but things have been
27:01
rocking and rolling and I think
27:02
it’s important that we take the
27:05
time to work on it and help
27:05
other people work on it on
27:06
Wednesdays here. So, I can’t
27:08
wait til next week and tomorrow
27:09
night, I’m going to get some
27:10
rest. We got a big night ahead
27:11
of us for the KPI webinar and
27:14
job costing that we’re going to
27:16
be doing at 8 PM Eastern. Yeah
27:18
and if anybody is did not
27:21
receive an Email from me
27:21
regarding that and they’d like
27:23
access to the webinar, you can
27:25
definitely reach out to me,
27:26
Dylan DILL, AN at Simple Growth
27:30
Systems.com but otherwise,
27:31
yeah, just just make sure
27:33
you’re spending whether you
27:34
started out at 2 minutes a
27:36
month, whatever that might be
27:37
block or 2 minutes and and put
27:39
together even some of these
27:41
KPIs that we’re talking about
27:42
in a Google sheet and start
27:44
tracking them on a monthly
27:45
basis and that’s that’s really
27:46
where you gotta start and it’ll
27:47
evolve from there. Love it.
27:49
I’ll see you tomorrow night
27:50
work on it Wednesdays we’ll see
27:51
everybody else and it doesn’t
27:53
attend tomorrow night. You’re
27:53
going to miss out if you don’t.
27:55
Next Wednesday, I’m working on
27:56
Wednesdays and we’ll post on
27:57
Facebook about what we’re going
28:00
to be diving into. If you have
28:00
any comments or questions in
28:02
the library, recorded version,
28:03
pop in or a topic you’d like us
28:04
to cover on work it work on it
28:06
Wednesday. It’s a mouthful
28:08
Wednesday brother. Alright, I
28:08
will see you tomorrow night.
28:11
Alright, take care. Alright,