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“First Ever” SimpleGrowth Business Podcast

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Transcript:
0:08
everyone welcome to this very first very first time ever the simple growth
0:14
business podcast I’m Dan Ralphs this is Aaron suttonfield and we’re kicking
off something that we have no idea if anyone
0:21
is ever going to watch or pay attention to but we’re doing it anyway
because we
0:26
care about a small business across the country especially service business
uh businesses across the country and we’re
0:32
really curious about how we might be able to help them um so Aaron welcome
welcome to our very
0:37
first inaugural edition of the simple growth business podcast we I don’t
even
0:42
know if we’re 100 decided on the name that’s what we’re calling it right
now sounds great I’m excited
0:49
so um I wanted just to introduce it this way so we
0:54
um I don’t know how long ago it was Aaron you and I are sitting in a a
beach house in Wilmington North Carolina
1:01
and we were talking about our experience because you’ve been coaching small
business lawn care companies for a
1:08
long time because you’ve run and been very successful in the lawn care
space you have a small company in Charlotte
1:15
and and we were talking about like some of the clients that you bump into
that
1:21
are like these service based companies these lawn care companies are like a
three hundred thousand four hundred thousand five hundred thousand and
1:27
they’re just kind of a mess a little bit is that fair to say yeah yeah yeah
so we uh at simple growth
1:35
uh systems I was helping companies build out
1:40
um their rate Matrix and their services and helping them uh use a software
to to
1:47
manage your business better um and we kept seeing that that when we were
kind of done helping them with sort
1:53
of some basic functions or some processes that they they really wanted to
talk more about their businesses they
1:59
really were you know lost to entrepreneurs and we we talk a lot about
entrepreneurship being a lonely place
2:07
um because typically it’s just the owner or maybe there’s a partner but
they’re they’re kind of lonely
2:13
um and I just could sense that as we were working with these companies they
they wanted more they wanted they wanted
2:21
just it is super lonely to be a business owner like you were doing you have
to tell the story you have to tell them
2:26
about the time when you you’re like maybe we shouldn’t say this public but
we don’t don’t you’re like I don’t even
2:32
go to certain parties unless there’s another business owner there like I
need someone I need another business or else I can’t
2:38
have fun at a party because I don’t know how to talk to normal people right
I feel that way sometimes too I’m like
2:44
people are like so what do you do and I’m like well I’m a business coach
and I help companies and and they kind of
2:49
glaze over as if being an entrepreneur is the most boring confusing world
right it’s like we live
2:55
on another Prime almost I I know I know that I have to kind of watch myself
in Social settings to not get really
3:02
excited about business and talking about business um most most people that
are you know
3:10
mid-level managers or managing a little division in a large corporation
I’ve got a great friend of mine
3:17
um who is he runs a pretty nice little group at Wells Fargo in Charlotte
and he’s a CPA and he’s like man I wish I
3:23
could get as excited about my spreadsheets as you do it and he’s someone
that for seriously 27 years he
3:30
has one friend that has always been he just loves talking to me about my
business and he genuinely does is
3:37
interested but they’re few and far between and I guess most people don’t
and so that’s what one of the reasons
3:42
why we’re here we recognize that most people aren’t as nerdy about business
as
3:47
we are like literally Aaron and I are sitting at a Charlotte Hornets game
and we just basically talk business during
3:54
the entire game wasn’t a very good game but uh we were sitting there
talking like the entire game we had good seats
3:59
we were just sitting there chatting business because we’re nerds for
business like we absolutely love it it’s all we want to think about it’s
all we
4:06
want to talk about so what better way to do that than starting a podcast
where we actually can give you some really sound business advice and so we
were sitting
4:12
there in North Carolina we were at this beach house and we were asking
ourselves the question question what are the fundamental steps what are the
4:18
fundamental like elements that if we were to meet any business owner and we
were to say how do we get that business
4:24
owner from 300 000 more or less the reason 300 000 because that’s like
right when you’re something you’re not a real
4:31
business before that but that’s like like when you’re finally got at your
first employee or two
4:37
and you’re you’re finally starting to get your head out of being just a
solopreneur and you’re starting to
4:42
really run a business somewhere around that 200 300 000 Mark where you’re
like
4:47
yeah that’s okay that point when you’re like I can’t really take venmo
anymore I
4:53
need you to like I need totally I need to take a credit card I I you know
cash
4:59
is fine but you know like I need to start reporting more things I got to
pay payroll taxes I gotta you know I gotta
5:05
do workers comp and all these things that that are real business things you
know I have to get like business
5:11
insurance and it it becomes less of a side hustle and more of the hustle
right
5:17
that’s from that’s the right where we get up like the transition from side
hustle to a main hustle is where we want
5:24
to talk to you and so if you’re that spot or anywhere beyond that probably
anything past 10 million we won’t have a
5:29
lot of good wise things to say to you but anywhere between like all right
it’s finally become my main hustle maybe we
5:36
should call this the main hustle podcast right where it’s like this is but
like when we finally got to our main hustle
5:44
and now it’s like all right we’re gonna try to grow it and we ask ourselves
the question what are the fundamental steps of how to go from from barely
becoming
5:53
our main Hustle to it being a million dollar company and that’s what the
primary that’s what
5:58
we’re gonna be talking about throughout this podcast and it’s going to be
the major theme of all of the different things we talk about is how do we
make
6:05
the main our main Hustle how do we turn that into a million dollar company
or
6:11
better and and we’ll we won’t talk too much about once we get to a million
plus we’re going to spend most of our time on
6:18
a simple growth business podcast I don’t know Maine hustle podcast might be
better but we’re going to spend most of
6:24
our time talking about that growth from point A to point B and and we
literally got together in a room and we asked
6:31
ourselves the question if we were trying to outline it what the steps would
be and we came up with five fundamental
6:38
steps five fundamental steps so I thought Aaron today on the podcast would
be cool
6:43
if we just talked through those five fundamental steps so starting at step
6:49
one so Aaron if you want to introduce step one of our five fundamental
steps again if you’re if you’re in that
6:55
category where it’s like it’s my it’s my main hustle now but I do not know
how to
7:00
grow this to a million like what what Where Do We Begin what’s step one yeah
7:06
so step one is just finding four hours each week each week find four hours
7:13
where you can you know separate yourself from your company from your you
know phone goes off you
7:20
treat this like you are unavailable so detached from you know social media
phones uh from the company you need to
7:28
have four hours dedicated to work on the business and I think it’s
important to kind of Define what is on the business
7:35
mean I’ll tell you what on the business is not really quickly it’s not
selling something it’s not producing something
7:42
and it’s not solving problems that come up from producing or selling so you
know
7:48
there would be things like reconciling your books or you know I I’ve
coached a lot of companies on the very first
7:55
couple of calls they’ll say I’m cash poor and I look and they have an
invoice for work right
8:01
um and so accounts receivable invoicing um hiring what’s your strategy for
8:07
hiring probably hiring is the number one thing we’ve heard about since 2019
2020
8:12
um you know how are you going to what’s your process for that what’s the
strategy all of that that stuff right
8:18
it’s all of the budgeting all of the stuff that isn’t selling and
fulfilling it’s all the stuff that isn’t selling
8:25
and fulfilling and and the truth is we all have we all have four hours
8:31
we every person in the history of the planet has four hours a week and I
like to say you know you have four hours a
8:37
week because if your tire went flat you would fix it you have four hours
and so what what’s
8:43
funny and I don’t know why this is Aaron maybe it’s like the question pops
the Mind why
8:49
don’t we I think every business owner that I’ve ever talked to if I said
hey should you be spending at least four
8:54
hours a week working on your resume not in your business they would all say
yeah yeah I definitely should be and yet yeah
9:01
for the most part if I ask how many actually are devoted committed
four-hour period it’s not as many as
9:08
like so why don’t we why don’t we yeah four hours a week because we’re very
9:15
much yeah we’re we’re we’re technicians like most of us got into this
because you know we like from a lawn care
9:23
perspective right we’re talking mainly Lawn Care here now so you know I
probably started in this business either
9:30
because in my case uh it became a summer job that became a career
9:36
um out of necessity if you don’t uh do well in college you got to find
another Avenue so you know or maybe there was
9:43
someone who really excelled at a lawn care company or a landscape company
and they became a leader in that company and
9:49
they’re like you know what I can do this I can I can do this on my own and
so so we kind of get here in two different
9:55
ways both of which require us to be really good in the field right we we
don’t
10:01
start lawn care companies rarely without knowing something about the
technical side of lawn care right whether it’s how
10:08
to stripe a lawn really well or how to fertilize a lawn or how to landscape
or or they love plants yeah it stays your
10:15
side hustle if you never figure it out it never becomes your main hustle if
you can’t figure those things out yeah and
10:21
so we we all are most comfortable in that and and and I can kind of tell the
10:27
the maturity of the lawn care business owner based on the things they talk
about most
10:33
um nothing wrong with this but you know they tend to talk about what type
of mower are you purchasing or you know
10:41
some of the you know less mature businesses what we’ll focus on man what
kind of blades are you running or or
10:46
some of the things that are honestly in the scheme of things aren’t going
to scale your company I think you’re right
10:54
I think because we because we start in the technical detail of the business
10:59
when it comes time for us to actually take our side hustle make it our main
hustle and then make our main hustle
11:05
like a legitimate business uh that’s a million dollar company like I think
sometimes we don’t even
11:11
know what to spend our time on it’s like I don’t know how to do that and it
reminds me I don’t know I’m sharing the
11:19
story but it reminds me of a buddy of mine who is playing tennis with his
wife and his wife kind of like said oh you
11:26
know I don’t really like tennis and his response was do you know why you
don’t like tennis because you suck at it
11:34
which which for the record is not the right thing to say to your wife when
she’s trying to we’re trying to
11:39
introduce her to a new hobby but there’s sort of some truth to that right
like the reason we don’t want to spend the
11:45
four hours the reason we don’t like discipline ourselves is to like get in
front of a computer screen and build
11:50
systems or whatever that four hours might need us to do is because we suck
11:55
at it like we just don’t know we’re just not very good at it do you think
that could be it right I mean I spend our
12:02
time there and yeah I mean I remember the days when I was starting a
company and and I was making a little bit of
12:08
money I didn’t know what a p l statement was I didn’t know what the balance
sheet was I mean I knew they were accounting
12:13
things but I didn’t really know like when I was looking at it it was you
know like like a monkey doing a math problem
12:19
like what what is this stuff and so I didn’t spend a lot of time looking at
it I certainly wasn’t concerned about
12:25
balancing my books every month or you know uh those types of things I
didn’t know how to look at those things and
12:31
project you know if my pricing was correct or not you know and so
12:37
um you know hiring like you know I have a job here’s how much I pay you
want to
12:43
come work for me you know like so those are all things and time that we
have to spend on those processes like a sales
12:49
process um you know I wouldn’t even know where to start with that stuff so
again early days step one step one is for us to go
12:57
we got four hours and I’m gonna I’m gonna sit down in front of a screen
even if I don’t know what to do even even if
13:03
I’m not good at it even if I suck at it I’m gonna sit down for four hours
and I’m gonna start working on things to
13:10
make my business better four hours a week and if and if if it’s like I
don’t know what to do Step One is
13:16
figure out what to do all right if you like and we’ll talk about what the
other steps are and what you should be
13:21
spending your time on but just the fact of the matter is we can’t like that
there are two core resources required
13:27
for us to grow a business and the first one is time like one of the reasons
we stayed treading water and we stayed pretty much
13:34
where we are is because we spend no time improving
13:39
um and making our business better like we just don’t spend the time there
I’ll I’ll tell you something Dan that makes
13:46
me think about this that I think is relevant here is um
13:51
sometime maybe about 11 12 years ago um I was a huge Sports fanatic I mean I
13:58
I watch sports I’ve invested a ton of energy into that you had the Dream
Team
14:04
be right behind you right yeah yeah I mean I I and I still love sports okay
but there was a point at which the the
14:11
Carolina Panthers owner at the time was gonna basically give away the year
14:17
because he was in charge of renegotiating the player’s cut of the of
14:22
the revenue share and he knew that they were going to be in a position to
be a more favorable share for the owners and
14:29
he basically gave away a season he didn’t sign any players he waited to
sign players till the next year and I
14:34
remember thinking you know that’s pretty smart number one on his part but
as a fan if he doesn’t care about this year
14:41
why do I need to watch this and it’s kind of done them it’s like by the way
I really don’t make any money my family
14:46
doesn’t become better because at the time I invest in sports you know if I
really invested this time of the things
14:52
that were made me a better person or a better company or you know were
invested
14:57
in something that would actually pay me back later like how much better
would my would my life be
15:03
um and you know I think that we all invest our time in something we all have
15:08
the same 24 hours a day and I think successful people um my son is a really
accomplished
15:15
guitar player he plays guitar three or four hours a day I mean they’re
really they’re literally I mean that may
15:21
be on the on the low end um and he also just started teaching some younger
kids how to play guitar and
15:28
he said they just don’t want to practice you know and and and you know so
we have to use our time wisely and business
15:35
owners don’t have enough hours in the day I used to tell my wife she’s a
teacher and I’d say you know you might
15:40
be able to accomplish some of the things that you’re supposed to at your
job today I have no chance of accomplishing most of what I need to in my
job today
15:47
and so I think successful business owners are very careful with their time
but they also prioritize their time
15:55
correctly yeah they work on the biggest things and good business owners
learn
16:00
how to delegate the things that they can pay someone to do you know we used
to talk about I
16:06
remember back in the day talking about you know work on thousand dollar an
hour ideas if you’re the owner and and
16:12
delegate those 20 an hour yeah the ten dollar an hour nobody you can’t
delegate ten dollars an hour anymore yeah it used
16:18
to be ten dollars an hour right so so step one step one is like go go cut
out
16:25
four hours of your week and sit down and if you honestly don’t move on to
step two until you figure that out until you
16:31
figure out how to discipline yourself in that way um because the truth is
you’re never gonna make to be a million dollar
16:36
company if you haven’t disappointed if you haven’t learned to discipline
yourself in the area of time and it really is a requirement I I’ve seen it
16:43
done a bunch of times I remember one woman she said Hey listen I just I
just told my husband I’m out of commission
16:49
from 6 p.m to 10 p.m on Wednesday nights I just do not have
16:54
just don’t plan on me being around from 6 p.m we’re not saying four hours
17:00
at one time it could be one hour four days I recommend at least a two hour
17:06
break it up I recommend at least into our blood because it can be hard
right to get
17:11
uh to do get a project significantly underway just like if you’re doing like
17:16
20-minute Sprints but but four hours that’s all we’re asking and it can’t
like I know another business owner who
17:23
he literally would like send everyone home from his business uh on Friday
afternoons at 3 P.M he called early
17:30
release Fridays and that way he could finally be alone and work on stuff so
whatever it looks like for you it
17:35
doesn’t need to be fancy special but we just need four hours so Step One is
the four hour rule you have to put in at
17:40
least four hours a week if you want to grow business that’s not fulfilling
or sales or the basic operations of your
17:46
business you need four hours a week step number two so once you have time
the first the next thing we’re going to
17:53
focus on is money so the next thing we’re going to focus on is money so
once you have some time to get your ducks in
18:00
order the first place we’re going to focus is on your money and that step
number two is we have to get our personal
18:06
and Business Financial house in order and it doesn’t mean our business and
18:12
personal house has to be a a nice house it just has to be an orderly one so
that
18:17
we can actually know what’s going on in our business because at the end of
the day our business our ability to build our business is really dependent
on cash
18:24
it’s the it’s the lifeblood of your business and so if we don’t have clean
arteries uh for us to pump our blood
18:31
around we’re going to have a business heart attack some people you know
have had business
18:37
heart attacks where literally I was chatting with a guy the other day who
said I’m having a business he didn’t say
18:42
this but he was having a business heart attack why was he having business
heart attack because he owed 250 000 in taxes
18:49
that he and they were unpaid and the IRS was showing up uh you may have a
business heart attack didn’t you have
18:55
one the other day that was having a business heart attack because he uh
hadn’t paid his what was the story
19:01
well yeah I mean you know it’s just you know when we’re small or you know
we’re running a business we might have you
19:07
know we might put guys on a 1099 you know and at some point they become
employees and and uh so yeah we’re
19:13
working through a situation where we we’ve got to figure out you know how
do we overcome a a situation we’re a pretty
19:20
large business running a lot of 1099 labor and the Department of Labor in
his
19:25
state is auditing his company and we call that a business heart attack right
19:31
it’s like holy cow business emergency and uh you know they’ve they’ve done
an
19:37
awesome job with this business and and we’re hoping that this situation is
something they can work through we’ll see we’ll find out
19:43
um but yeah you know understanding and having a good understanding uh of
your
19:50
of the finances of your business and of of you know just your break even
number like what is it you know Dan we were
19:56
talking at a conference in Wilmington uh site one invited us invited me to
speak there and and uh you know I show hands
20:04
who knows their Breakeven number I mean you know no one no one knows to
break even and they’ll say well we kind
20:10
of knew like what what it cost what our labor is per hour it’s like no no
like what does it cost your company per hour
20:18
um and and then you know it’s it’s pretty easy to figure that out um
doesn’t take long but then we got to
20:24
go to that other sheet that balance sheet we got to understand well how
much debt do you have yeah very few of the
20:31
companies we’re coaching are debt free um some have gone into some form of
debt so we need a ballot you know we need to
20:37
pull that number over um you know no one very very few that we
20:43
coach I shouldn’t say none but very few that we coach have a budget you
know what what are they what is their goal
20:49
for for this month in spending and and so at the beginning is just getting
all of those pieces in a row getting all
20:55
your ducks in a row financially now we could and we will spend a lot of
time talking about uh what the details of
21:03
your not a nice healthy profit loss look like what the details of a nice
healthy personal budget look like business
21:09
budget looks like how do we account for debt and all those things but if I
have my four hours and I’m I’m breaking away
21:16
on a Saturday afternoon and I’m just hiding up in a in a coffee shop
somewhere and I begin I begin by opening
21:23
up my my books and I make sure that we’re healthy and clean now sometimes
this means that we have some hard
21:30
decisions like right away we might start to discover things within our in
our family live or within our business life
21:36
that are hard because at the end of the day a small business can afford an
21:42
extravagant CEO they just can’t you can’t afford to be
21:47
an extravagant CEO at the level of a small business and if you’re living an
extravagant personal lifestyle
21:53
like you got to cut it because we we need that 300 you’re spending on your
jet skis a month we need that in your
22:00
marketing budget we need that 680 car payment you’re paying for that nice
22:06
truck we need 480 of that in your marketing budget we need so like
22:11
sometimes the reason our business is handcuffed is because our personal
finances aren’t in order and so at least
22:19
for a little while we have to like cinch up the belt personally and
professionally so that then we can go uh
22:26
you know spend extravagantly yeah what is it Dave Ramsey says like live
maybe like no one else so later you can
22:32
live like no one else or if you live like no one else today you’re probably
gonna live like no one else later
22:38
because you know if if you if you’re doing wrong things today you’re gonna
have pain later if you do right things
22:44
today you’re not you’re gonna avoid the pain so yeah you’re gonna you’re
gonna have pain or sacrifice at some point
22:52
um and I think you know we we talk about you know the personal finance I
think it’s important to talk about this for a
22:58
second you know a lot of times I’ll I’ll coach someone and I’ll say you know
23:03
um they want to make a big change or they make a pretty aggressive change
in their business and it a lot of times that means reducing revenue for a
period
23:10
of time to build revenue somewhere else right like we we we learn it we’ll
talk
23:15
about a little bit more of this in step three but I think the reason it’s
important to understand personally where
23:21
you stand is you know are you the breadwinner of this family are you the
23:26
person who needs who makes the majority of the money for this family off of
your business well then if you’re going to
23:32
make a big change in that we’ve got to be careful we’ve got to make that
slowly we’ve gotta you know it’s almost like a
23:39
business break even and then there’s a personal break even it’s like hey
what is our personal break even number
23:44
meaning how much money does my family need to pay all the bills and live
and eat and survive and and once I figure out that kind of
23:51
personal break even then I I know what my business I know the flexibility I
have now to build my business up or down
23:58
or remove that division add this product take on this debt but until we know
24:04
those numbers that like little personal break even number we don’t know how
to kind of move forward
24:09
yeah we don’t know how to coach you and then you know I’ve had clients who
say you know my wife makes three times what
24:15
I do and you know I’m thinking well why are you working you know no but uh
you
24:20
know she makes three times what I do so I can rip this Band-Aid really
quickly and we can transition really quickly to
24:28
this other you know model that we want to run which we know has the ability
to scale faster scale better you know have
24:34
a lot of advantages there the other thing I’ll tell you too is like you
know I’m 27 years in business and and I own
24:42
and operate a lawn fertilization Company in Charlotte North Carolina but I
haven’t always owned and operated
24:47
a lawn fertilization company for the first 15 years of my company’s
existence we we were kind of that we were a mess
24:54
you know we we did everything in the industry wait wait wait don’t scan now
three yet don’t skip to step three yeah I’m not I’m not I’m not but but the
25:02
reason I know how why I would sacrifice so much more than I did to
transition to
25:10
a healthy scalable business because I’m kind of living the scalable
business life now and I know what that looks like
25:16
and so I I would have been even more aggressive
25:21
um and so the cool thing is we’re going to give you the steps and
strategies to really that are tried and true right
25:26
these are things that a lot of our coaches are either doing or have done
25:32
um and and so knowing what we know I would have been I would have
sacrificed even more and so we talk about Dave
25:38
Ramsey someone here and you know why do people sell the truck or why do
people sell the car because they know their
25:45
debt snowball they know like why they’re doing these things and they get so
excited about they’re like yeah I want
25:51
that more than I want this other thing um and so um you know when we get
your house in
25:57
order in step two uh we’re gonna we’re gonna give you that that Financial
26:02
Freedom to go and invest in the things that that we know are the most
important
26:08
so you want to talk about step three so it’s step step one
26:13
get your time right have time step two get your get your head above
26:18
water once we have these two things accurate meaning all right I can pay my
bills
26:24
and I can and I have time to work on the business now we can really start
building the business but until we have
26:30
those that’s like that’s like the water line and before we’re there like
we’re underwater and and we just got to get
26:36
our head above water so we can breathe so that’s priority number one and
some of you are in a position and you know if
26:41
if you’re that person right where where you your head isn’t even about
water enough to breathe but once we do get our
26:47
head above water and once we can breathe once we know that our bills can
get paid well now what do we spend our next
26:54
amount of time on and that is we we need to build a simple business we need
to
27:00
build a business craft a business model that will actually work and that
will be simple and scalable
27:07
over time there’s a reason why companies like apple or Verizon or the like
the go
27:15
across the board of the biggest companies in the world why for the most
part they get really good at one thing
27:21
they get really good at just one doing one thing and crafting a business
model it’s a very simple
27:28
um and scalable and so our we always the you know it was my assertion Aaron
you
27:33
can tell me if I’m wrong but um it’s my assertion that far too often
business owners build a business a
27:40
little bit like um I I spent some time in Africa and sometimes it felt like
their homes were
27:46
just bolted on like when they got a little extra money they built this room
and then it feels like our businesses
27:52
are just kind of like a hodgepodge of different eras and moments in our
27:57
business but it’s not a elegant simple business and as a result we find
28:02
ourselves with our fingers in all kinds of different pies trying to make
money in all kinds of different ways and we
28:08
become just the center pin of that business and we can’t really grow and
scale it and so like
28:14
I I think to myself what can we do to build a simple business but the
simple business really should be the goal right
28:21
Aaron like simple yeah yeah I mean you it’s like your example
28:26
is like you would never build a house without a plan right like you and
when you do build something without a plan
28:32
what does it look like when you’re finished well yeah I mean maybe you get
lucky it’s kind of a mess yeah that’s
28:38
what it looks like yeah it’s like you get lucky sometimes yeah um yeah I
mean I I think
28:45
it’s it’s doing one thing really well and being really good at that
28:51
um when when I’m coaching companies um and and we bring them in for the
28:56
first call or a couple calls I’ll I just had one the other day and and the
guy said you know I’m right at 900 000 in
29:03
revenue and I was like man that’s that’s really awesome uh you know we’re
gonna get you to a million quick right that’s
29:09
what I’m thinking and as I dug in a little bit and we do we dig into the to
the company a little bit we find out he
29:16
really has three three hundred thousand dollar companies right he’s got a
maintenance division he had a tree
29:23
service Division and then he had a um and he had like a little small project
29:29
Division and each one of those made up about 300 000 in revenue and I said
so
29:36
awesome this is great we’ve got three strong little companies right um
under one umbrella
29:43
um are you ready to go hire three managers for those three small companies
29:48
and and hey do you have about a half million bucks in the bank to do this
and
29:54
and he goes heck no I’m cash poor right now I was like well we really don’t
have a simple business now and we certainly
30:01
don’t yeah we can maybe put your name on one of those divisions but we
can’t put your name on all three and scale that to
30:07
three million dollars because basically I look at the 3x you have to 3x
your work in a lot of those areas right you
30:14
have to have a great marketing campaign for tree and you have to have a
great marketing campaign first your projects
30:20
and you have to have a great marketing campaign and then you have to have a
great system for selling and estimating
30:25
trees and then you have to Great system for selling and estimating so every
one of those has to be like 3x and it’s hard
30:32
enough to grow one business much less trying to go three at the same time
so let’s go back to what our first two
30:39
steps so you you have to find you know 12 hours yeah 12 hours a week of
course
30:44
you know you have to find the money for three businesses and you said
marketing
30:50
campaigns like it’s it’s one thing to find the time to design all the
systems and things we need for three divisions
30:58
but now we gotta fund three divisions right and and a half million dollars
31:03
might not be enough right and and sometimes sometimes I think we do this
because we look at the other big company
31:10
in our neighborhood who’s like got 50 million and they’re and they do all
of the services and we think to ourselves
31:16
well that’s the model that’s what we should pattern ourselves after but at
the end of the day you can do that when
31:24
you have five great leaders in five different divisions that that works at
31:30
that stage in the game but early on the simpler really the better and by
the way
31:35
when I say simpler I mean means simpler across the board the simplest way
to service the simplest way to mow a lawn
31:42
the simplest way to write all of these little details of Simplicity add up
to
31:48
me creating room and space to grow even if we’re talking about a lawn
maintenance company we need to be very
31:54
simple in that are we going to be a residential company or are we going to
be a commercial company because you know those are two
32:02
different you know this is two different sales models right two different
trucks
32:08
yeah right and so yeah we need to simplify all the way
32:15
down like yeah to what we sell and how we do it it’s exactly right and and
when
32:22
you see it done right like the companies who do emerge as the million
dollar companies the ones who make it out uh my
32:28
buddy Mike Callahan who many of you might know but uh Mike Mike was showing
me he got all nerd at nerded out he’s
32:34
like do you know how simple we got like when we would pull up to the yard
we knew which side of the yard we wanted
32:42
the truck on because it was simpler for our guys to get the job done so I
mean we want to build a very so step three is
32:49
to build the simple business model build a business model is simple build
one that can scale
32:55
um because we want something simple because we want we want a business we
33:01
want to sell a product that’s simple we want to have fulfillment be simple
we want to have the sale be simple because
33:06
we’re gonna we want to do it uh thousands of more times
33:15
so like you there you’re talking sorry step three is kind of two parts right
33:21
you got three a which is we need to decide like where are we going to focus
33:27
our time what do we love what what do we like doing in the business we’re
not going to direct you into one space we’re
33:34
not going to transition everybody to a lawn mowing company or everybody to
a lawn fertilization company we’re gonna
33:40
let you choose that but we’re gonna push you to pick like what do you what
do you feel you can scale the best
33:46
um and that’s kind of 3A but 3B is is all these things you’re talking about
now which is like the systems and and
33:52
how do we hire people and what is the organizational structure look like
for this model
33:58
um you know what do our truck setups look like at this model um but
probably the most important part
34:04
of this this 3B is the cells and systems I mean the systems and processes so
34:11
sales processes hiring processes lead you know how do we make when we’re in
34:17
that same meeting remember this meeting we we were chatting you had a
competitor in the
34:22
room essentially a smaller guy and he go and you said how long does it take
you to get an estimate out
34:30
and his process from start to finish what did he say three days four days
so there were two guys they were
34:36
actually direct competitors to us they were wanting the same exact client
that my company
34:41
um goes after in the same market and they set one guy said I was about
three to four days for me to get to get back
34:47
to a car the other one was very honest and I appreciated him being honest
because he said I’ll be honest with you
34:54
I’m at least a week and he goes there’s times where my voicemail is full
and and he said this word for he said my
35:00
voicemail is full and they can’t even leave me a message yet and so here
were two guys and and one might not get back
35:07
to him at all One’s Gonna Get Back in two three days but if we want to go
sell that product a
35:14
thousand times and it takes in two to three days to get back to that client
35:20
you realize how many compounded days that is so so the spirit of this step
35:26
three is as we’re spending our four hours a day a week whereas a day that’d
be great four hours a week working on
35:33
the business we’re gonna start to look for ways we can make sure we have a
simple business model and look for ways
35:40
we can simplify the work that we’re doing because each time we simplify it
so in the same way when I go sell a
35:46
product and I I make a hundred dollars a month every time I go MO
35:52
I I’m I’m storing and and putting in the bank dollars I want us to think of
35:59
simplifying as a way of storing and putting in the bank hours so every time
I can simplify a portion
36:06
of my business I I’m I’m becoming time richer and we need in order for us
to get out
36:12
of the rat race of the business in order for us to finally be free of the
business and own it and not have it own
36:18
us is we have to store time and so I want you to think about each
36:24
time you’re doing something if it takes you 45 minutes to create an
estimate if
36:29
you can do that same estimate in 25 minutes or 20 or eight
36:36
like all of a sudden you’re gaining and storing in your book in your log I
have 40 more minutes than my competitor
36:43
and that 40 40 more minutes times a thousand that’s like years of your life
right
36:50
that you’re getting back each time you can simplify so the third step one
get four hours step two uh get your personal
36:58
and business house in order so we at least know what’s going on and we get
our head above water so we can pay our
37:04
bills and then step three is let’s start to go about the business of
crafting a business a simple business model with
37:11
simple Business Systems is step three then step four we’ll go through the
last two quickly because most of you need to
37:19
be working on one through three but step four is then we figure out and we
start
37:24
pouring fuel on by creating and and designing an awesome acquisition model
so how do we acquire new business how do
37:31
we do it at a price point that works within our business model and how do
we do it in a way that we can do it over and over and over and over again
uh so
37:39
that we can really start to put gas on the rocket right gas not on the
rocket in the rocket uh yeah we can really
37:45
start growing this thing yeah I mean I I was you know I always look at
steps one through three as kind of building the
37:52
rocket like yeah you know if you were NASA you know they’re not worried
about Rocket Fuel and pouring it on the launch
37:58
pad until there’s a rocket out there right yeah and so we need to really
build something that that one can handle
38:05
like imagine like you know and we’ve seen it tragically you know where
rockets explode
38:12
um and you know we want to make sure that when we build this model that it
38:17
can handle the pressure of a heavy marketing campaign right a marketing
38:22
campaign that is geared towards you know generating thousands of leads and
you
38:28
know hundreds and hopefully thousands of new clients every year and the
process of of just flowing that through your
38:36
business and you know the bad part about Lawn Care is you know it’s really
all
38:41
about February through May that’s when we get to get new clients and so
we’re
38:46
really even stress testing testing the business even more because we’ve got
like a four month window to really do
38:53
our sales well um sure we pick up clients in other months we all we all do
but I can tell
38:59
you as we’ve looked at you know you know 60 different businesses and look
at their scorecards that we compile with
39:06
them all the sales come in a really short period of time and so you know the
39:12
worst thing we could do is start marketing your business when it’s not
ready it would it would fail
39:18
um and uh and also we know that small businesses and if it doesn’t fail
you’re
39:23
gonna you’re gonna have the same pain like what’s the number one complaint
of clients in this industry is they’re
39:30
saying I can’t get a hold of anybody I tried to call that company I
couldn’t get a hold of them well why is that because they’ve marketed
they’ve out
39:36
their marketing’s outpace their systems but Aaron if anybody calls your
company is there ever a time where they can’t
39:41
get a hold of you live every day and and so we have to
39:48
build that system first and then we start really putting putting the gas in
the marketing this is the weirdest
39:53
industry in the world because I’ve coached companies from all the kinds of
different Industries this is one of the few places in lawn care and Lawn
Care
40:00
Services where the major issue isn’t lead volume it’s not not an issue but
40:06
it’s like most companies like man if we can figure out how to sell stuff
and here it’s like man we have plenty of
40:11
business opportunity if I just pick up the phone right the guy who’s like
man my voicemail box fills up so step four
40:20
is once we do have the system and it’s ready to roll now we can start to
really answer all of those phone calls then we
40:26
can start really connecting with all of those clients but we need a great
acquisition model that’s the four step
40:32
five it’s simply that now we scale up now we put start putting into place
the
40:37
other healthy systems that a business has we start putting in place are a
great hiring model we start adjusting
40:44
pricing on a nice Rhythm we start just pruning and caring for the business
that
40:49
we’ve now built and and Aaron you’re still working on systems you’re still
working on simplifying you’re doing it
40:56
the other day you’re making a simple form for your for your staff yeah you
you know step five is kind of just that
41:02
healthy stage right we just want to keep you know it’s like Steps one
through four are kind of the big weight loss and
41:08
then you’ve lost all the weight now you keep it off how do you you know and
that’s that’s staying healthy and and and healthy
41:17
businesses scale um I think too like we talk about steps
41:22
one and two are things we need to fix and we kind of they’re one-time fixes
probably step three we kind of go back
41:29
to step three a good bit we’re always refining step three and maybe you
know maybe you grow one of your you know your
41:36
services up to a million and a half dollars a year and you’re like you know
what we’re ready to take on X and so
41:42
we’re gonna add a service and we’re gonna you know we’re gonna hire the
manager for that and so and by the way like the the healthy step five right
is
41:49
you’re really revisiting all of these steps you’re constantly improving the
amount of time that you’re spending on
41:55
the business you’re constantly improving your understanding of the finance
your financial situation and your your debt
42:01
position all that you’re constantly refining the quality of your business
and then finally you’re constantly refining and improving your your ability
42:07
to go acquire customers so stage five is really like the keep it off stage
where
42:13
you’re saying how do we how do we get better the truth is if you do stages
one through four correctly you’re you’re
42:19
going to have all the tools you need to get to be at that million dollar
company and more importantly we want you not
42:25
just to be a million dollar company because I’ve met plenty of Million
Dollar business owners who are miserable because they’re buried they may
have a
42:32
lot of money but they’re very short on time and so we want you not just to
be a million dollar business owner we want to
42:38
have you to have a simple Million Dollar business and that simple Million
Dollar business means that you it allows you to
42:45
have not only a bunch of money but it also means you have time to spend it
time to use it uh in your life and so
42:52
Aaron I know this is like showing like a big diamond ring where that
doesn’t make anybody feel good about themselves when
42:58
someone has a big diamond ring but um but how much how much time do you
spend in your business you you know
43:05
million plus Dollar business um it depends on the week but I mean on
average I would think uh eight hours or
43:12
less um a week you know um that that is what we want we want to
43:17
get to a point where you have a really really successful business and you
haven’t just been storing money
43:23
but through building a simple business you’ve also been storing time and as
you
43:28
start to store time in your bank account in your in your calendar account I
don’t know what we call it but you start
43:34
storing time all of a sudden now I have a lot of time and a lot of money
and that’s where real Freedom comes comes in
43:40
where you get to do what you love you get to do it with who you love and
that’s what a true like that’s the dream
43:46
of at least most of the entrepreneurs I meet is I want the dream of not
only having the money but the time to use it
43:52
yeah and and Dan I mean I think as somebody who’s built a very simple
business and and uh it it is it I get to
44:00
spend time where I like it you know like that’s the important thing like
there were times where I really didn’t like my
44:06
business over the last 27 years um and and I think you know now
44:12
there’s things that we do that I don’t want to have to do in fairness um
and I don’t I I you know those those
44:19
responsibilities do fall to someone else they get taken care of we don’t
ignore anything but I get to spend my time in
44:25
the areas one where I’m where I’m the strongest um and I think in a lot of
ways
44:31
um my time spent in the business today is probably better than maybe when I
was full-time for the for the business right
44:38
the people that that work with me and that we work with um probably get
better time for me at
44:44
this point even though it’s less technically less time my time is better
spent and it and it’s for me it’s on
44:51
things that I like doing doing I love doing and I’m strong at doing um so
that’s the beauty that’s the dream
44:57
that’s the dream that we want to that we want to share here on the simple
growth business podcast
45:02
um because we want to help as many people as we possibly can genuinely like
Aaron and I are both in a position where
45:09
we don’t have to do this like our families are taken care of we we have
businesses that are that are successful
45:15
uh but the reason we do it is because we actually legitimately feel bad for
those
45:21
of you who are out there just grinding away in businesses that are complex
and convoluted whose heads are just above
45:26
water we and it’s not that we pity you you’re just fine you’ll be all right
but we do want to help if we can and so
45:34
that’s why we are doing this that’s why we and as you can tell we’re not
Pros we
45:39
kind of suck at it a little bit but we’re gonna try we’re gonna try to do
it in a way that will be really helpful and
45:45
because we want to see more and more of these companies thousands and
thousands of these companies get out of that day-to-day Rat Race in the
business get
45:52
out of business debt where it feels like your time and money are already
all spent before you even get them and give you the freedom that you were
45:59
looking for when you started the business in the first place that’s our
goal and so stick with us we’re going to keep recording we’re going to keep
46:05
talking whether or not anyone’s listening to be honest and uh but we hope
that it’s helpful uh so thank you
46:10
for being with us on this simple growth business podcast thanks sir thanks

Callahan’s Corner: Non-Profitable Job that Requires More Work and the Client is Upset

Video Transcript

Transcript:
0:00
Callahan’s Corner where you ask
0:02
the questions we answer them
0:03
live right here on Facebook.
0:04
Got a doozy this morning.
0:06
Wanted to jump right in,
0:07
submitted here via Facebook
0:09
Messenger here. I’m going to
0:11
read out parts of the question
0:12
and actually dive in and answer
0:14
this question live but kind of
0:16
some background on this is well
0:19
actually I’ll dive right into
0:20
the question. Um Mike, we’re in
0:22
the middle of doing our audits
0:23
on the job like you were
0:24
talking about on a recent video
0:27
and looked at this client’s
0:28
account over the last 90 days.
0:30
Once again, remember, I’m
0:32
going to open up the screen and
0:33
show you kind of what we’re
0:34
talking about here but when we
0:35
go in, we do not want to
0:37
continue to service jobs that
0:38
aren’t profitable. So, congrats
0:40
to this contractor. They’re
0:42
going out and executing some of
0:43
the the tangibles we’re
0:45
throwing out here on Callahan’s
0:46
Corner. So, they’re doing a
0:47
90-day audit on every
0:48
maintenance account among some
0:50
other accounts I’m sure but
0:52
particularly in a maintenance
0:53
account here over the last 90
0:54
days. So, they’ve done this, I
0:56
believe they’re down in the
0:57
south, possibly Florida and The
1:00
long and short of it is he he
1:02
wants no non-selective
1:04
herbicides played applied to
1:06
his landscape beds so they’re
1:08
having to actually go out and
1:10
manually weed it. So I believe
1:11
if I’m reading through this
1:12
that they haven’t been able to
1:15
keep pace because it is the
1:16
rainy season starting down
1:17
there with the heat the heat
1:18
and humidity. Um and they’re
1:20
weeding 95 95 percent of the
1:22
property manually. But
1:24
traditionally it’s a
1:25
non-selective herbicide sludge
1:26
is round up where they’re
1:28
actually spraying it and be
1:29
able to maintain that with a
1:31
significantly less effect. Uh
1:32
but time. So, it doesn’t look
1:36
like they’ve actually raised
1:37
the price in this property but
1:38
to accommodate his needs from
1:40
what they normally do of doing
1:42
a spraying or spot spraying,
1:44
they’re actually manually
1:45
weeding the property to get as
1:47
close as they can near the
1:49
allotted time. Um they are at
1:52
about $33 an hour on this
1:55
account and it’s actually
1:56
costing them $45 break even.
1:58
So, they’re actually losing the
2:00
difference between the 33 and
2:01
the $45 an hour. Um profit or
2:04
basically their revenue goal
2:06
per man hour is actually fifty.
2:08
So, they’re about 20 or $17
2:14
off. They’re they’re goal. So,
2:16
they’re actually losing money
2:17
on this account. Um they’re
2:19
getting thirty-three. They want
2:20
fifty but it’s costing them
2:22
forty-five. So, it’s about a
2:23
$17 per man hour gap here. So,
2:25
their question is the
2:27
individual is demanding an
2:30
on-site visit with a
2:31
supervisor. Um they also have a
2:33
very large backlog of landscape
2:37
installation jobs well over a
2:38
month by the looks of it and
2:40
their revenue per hour on their
2:42
landscape maintenance or the
2:43
landscape installs is obviously
2:45
significantly higher and more
2:47
profitable their question is
2:49
should they cut them loose we
2:51
should bill billing him 185 to
2:53
200 a month to break even small
2:56
profit and they’re currently
2:59
billing 1 30 so they’re at one
3:00
thirty they’re saying they
3:02
should be somewhere between a
3:04
hundred and eightyfive and two
3:04
hundred a month so let me dive
3:05
in and kind of put some concept
3:06
or context to how we kind of
3:08
should track this I’m going to
3:10
answer these questions directly
3:11
and I’ve got a couple different
3:12
options here because we have
3:13
been through this in my
3:14
company, the same exact issue
3:16
here. So, basically, your
3:19
client has demanded the
3:23
contractor to go out and kind
3:24
of go out outside of the normal
3:25
standard rating operating
3:27
procedure for landscape
3:29
maintenance. They do not want
3:30
pesticides or non-selective
3:32
herbicide. So, we’ve gone and
3:33
done some manual weeding. So,
3:34
with all the changes, in New
3:36
York State, this is something
3:37
we have actually encountered so
3:39
I’ll tell you how we tackle it
3:41
or a couple different ways
3:41
we’ve actually tried to tackle
3:43
it here. So I’m going to open
3:43
up the screen here and just put
3:45
some context to how did this
3:47
contractor go out and look at
3:49
how what they should be making
3:52
versus what they’re actually
3:53
making to make that decision
3:54
and if they have any questions,
3:56
they should clarify that and
3:57
then I’ll I’ll actually jump in
3:59
and talk about how do we
4:01
address this frustrated
4:02
customer that has basically
4:05
been able to get some services
4:06
to make them more happy but
4:07
it’s been outside standardized
4:09
operating procedure or scope.
4:11
Um so no judgement here. Trust
4:12
me. I have done this myself. Um
4:15
So, the first thing we’re
4:16
looking at is a contractor is a
4:19
simple growth client. He’s been
4:20
watching these videos and
4:23
they’re going in and doing the
4:23
right thing. So, that is huge
4:25
step number one. Now, if you
4:27
haven’t seen the video that
4:28
they’re talking about, I
4:29
want to show you this. So, what
4:30
we should be doing up here up
4:32
top, we’ve got crew number one.
4:34
Let’s imagine this is our
4:35
maintenance crew. So, we should
4:38
have budgeted times including
4:39
drive time for all the jobs.
4:40
So, this crew here fictitiously
4:42
is budgeted for 20 hours and We
4:46
started at 7 AM, went to 5 PM,
4:48
that’s a 10-hour day. I’m
4:49
assuming they’d be running four
4:51
tens based in this scenario and
4:52
we got a half-hour lunch for
4:53
two individuals on that crew.
4:55
So, we got 20 hours an hour
4:58
subtracted for lunch, non-paid.
4:59
So, our payroll liability is 19
5:02
hours and we budgeted 20 here.
5:03
So, they’re actually one hour
5:05
under budget. So, if this
5:07
contractor is fully
5:08
implementing this, these are
5:09
the things that would go on the
5:11
shop wall and then we’re
5:11
actually going to dial into
5:12
that specific job where
5:15
thirty-3 an hour but they
5:16
really need to be at about
5:18
forty-five. Um but this is the
5:19
first thing that usually will
5:21
raise a red flag if this
5:23
property’s in here and hurting
5:25
us so much even on a daily
5:26
basis throughout the week. So
5:28
we’ve got 1 0and5 percent. So
5:30
that is how we’re putting that
5:31
on the shop wall or shop TV. 0
5:34
and 5%. Anything from 100
5:35
andabove is really good.
5:37
They’re they’re beating their
5:38
budgeted times. You can tell
5:39
the the crew. Hey you gave 105%
5:42
today with a quality standard.
5:42
You did a great job Conversely,
5:46
if I went in and said, hey,
5:47
we’re going to give these guys
5:49
19 hours and they did it
5:50
nineteen. That’s 100% once this
5:52
update. So, they’d understand
5:53
that with the quality standard
5:54
and then, finally, what we
5:57
would want to do is say, okay,
5:58
if we gave them 17 hours and it
6:01
took them nineteen, this could
6:02
be the direct effect. Now, this
6:05
is a probably a smaller
6:06
residential property but if you
6:07
had a large large HOA and
6:09
you’re only doing one or two a
6:10
day, this could actually pop up
6:13
and be a red flag. There’s a
6:14
massive issue on this day
6:15
because we’re going outside of
6:17
scope. We’re not spraying the
6:18
non-selective herbicide. We’re
6:20
in Emmanuel leading at the
6:22
customer’s request with no
6:22
additional increase in price.
6:25
So, you could go to the crew
6:26
and say, hey, you gave 89%
6:27
today with a quality standard.
6:29
So, this is a public
6:30
accountability piece that we
6:32
should be doing daily and
6:34
reviewing weekly over here with
6:36
the company as a whole
6:37
throughout all our crews. Now,
6:40
going to the question at hand,
6:41
they’re losing money on one
6:42
specific account but before we
6:43
go in and do that audit, we
6:46
should be tracking on a daily
6:47
and weekly basis every crew as
6:48
a whole. Now, the question at
6:50
hand is they’ve got lawn mowing
6:54
and landscape maintenance being
6:56
the Southern States most lawn
6:57
care companies will do the bed
6:59
maintenance, some of the
7:00
pruning, and the mowing all at
7:01
the same time in one visit. Uh
7:03
if you’re in the north or mid
7:05
west, it’s a little bit
7:06
different. Uh we work with
7:08
hundreds and hundreds of
7:09
companies across the US. This
7:10
is very normal in the southern
7:12
state that this contractors at.
7:14
So, let’s let’s assume that
7:16
this is just the bed
7:16
maintenance portion and what
7:17
we’re looking at is based on
7:21
the start and top times in a
7:22
mobile, this fictitious
7:25
example, not the exact example
7:26
it was submitted, but
7:28
basically, they’re generating
7:29
$57 and 30 cents. So, in this
7:33
example, if we had bumped this
7:35
up to about sixty-seven,
7:37
actually about sixty-nine
7:37
bucks, that’s the difference.
7:39
They’re desiring, say $69 an
7:41
hour, they’re only getting 57
7:44
and maybe it’s costing them $60
7:46
and operate before there’s a
7:47
profit. So, we’re losing money
7:50
on this. So, we need to go in
7:51
and figure out, okay, based on
7:53
that, what should we actually
7:55
be charging? So, the current
7:56
price is fifty-four but based
7:58
on the revenue goal and the
8:01
historical data of the last 90
8:03
days in the question, they
8:05
should be going out
8:06
fictitiously. In this example,
8:07
charging the one sixty-five.
8:09
So, I believe in the question,
8:12
they came up with a billing
8:13
rate of somewhere on average to
8:15
185 and 200. So, you want to
8:17
take the average of those. I’m
8:18
guess that’s going to come out
8:20
to about one one ninety1 95 is
8:22
what they should be charging.
8:24
So, to answer the question
8:26
directly, there’s there’s
8:27
there’s a couple pieces to
8:28
this. Um first is the the
8:30
customer’s upset because we’ve
8:32
kind of basically gone out of
8:33
scope to satisfy them but we
8:35
haven’t been able to actually
8:36
maintain the property in the
8:37
same way we would with a with a
8:39
a round up or a non-selective
8:41
herbicide. So, what I would say
8:42
is we need to just have a
8:44
communication with them. Um via
8:46
the phone with the manager. If
8:47
we decide to the client and
8:49
even if we don’t decide to keep
8:50
the client, let’s have that
8:51
conversation with them. I don’t
8:52
know if it necessarily requires
8:54
an on-site visit because if
8:57
they’re not going to pay the
8:58
higher amount, why waste the
9:00
revenue pulling a manager off
9:01
your hardscape division when
9:03
they’re generating some
9:04
revenue, making sure that
9:04
profit center’s going. So,
9:06
first thing is, I would call,
9:08
have a conversation, explain,
9:08
hey, we made the exception of
9:10
doing manual weeding. If you
9:12
want to continue the manual
9:14
weeding with no non-selective
9:16
herbicide, it’s going to be at
9:17
that 195 or 200. I would take
9:18
the high end of that at 200
9:20
because the expectation
9:21
especially in the season is
9:23
going to be pretty tough. So,
9:23
we want to make sure recovered.
9:25
We got some extra time. The
9:26
crew could do a good job. So,
9:27
they’re happy. Um the second
9:30
option there is if you
9:32
continually want to do it, we
9:34
charge them hourly. Now, this
9:36
would probably be the way to
9:38
tackle this in my opinion
9:39
because we’re going to take the
9:40
risk out of it for us and then
9:42
that gentleman who owns the
9:43
house can set a threshold to
9:44
how much he wants to pay. So,
9:46
we we basically alleviated a
9:49
billing situation there because
9:52
you know, if it’s hourly and it
9:54
takes three hours, one week,
9:56
and two hours the next week, we
9:57
want to make sure we’re
9:58
covered. So, either we raise
9:59
the price to that 195 or 200 a
10:04
week. We build them hourly with
10:05
a set cap of desired amount
10:08
that we can go up to each month
10:10
and those two options, we would
10:11
require a credit card on file
10:13
and a signed electronic
10:15
contract. So, we are covered
10:16
and we’re not going to get a
10:17
charge back because a lot of
10:19
times, you’ll see that instance
10:20
in the spring cleanup with a
10:21
contractor do the work. It’s an
10:23
hourly set amount and then it
10:24
gets disputed and who’s left to
10:26
hang the dry, the contractor.
10:27
So, you want to make sure we’re
10:28
covered there. Now, the third
10:29
option
10:32
is basically have a have a
10:34
candid conversation and say,
10:36
hey, listen, you know, we’re
10:38
sorry that you’re upset. Let’s
10:39
count them maybe a visit so we
10:40
don’t get a bad review on
10:41
Google for the inconvenience
10:43
but wash our hands but let’s
10:44
walk away. Let’s be honest.
10:45
Say, hey, we made the
10:46
exception. You’re a great
10:47
client. We’re going to manually
10:48
read this prop. We tried to
10:49
manually weed your property but
10:51
really what we do is we spray
10:53
non-selective herbicides,
10:55
Roundup and in order to get the
10:56
best quality and predictability
10:57
like we do on our other
10:59
hundreds of accounts, this is
11:00
our process we deviated the
11:02
process, try to make you happy,
11:03
and continue to have you as a
11:05
customer but unfortunately, if
11:06
you want to have these beds
11:07
maintained, it needs to be a
11:09
non-selective herbicide such as
11:11
a roundup. At this point, the
11:12
gentleman has the ability to
11:14
stay with you with the
11:15
standardized operating service
11:17
or leave you and that would
11:19
probably be my my top advice
11:23
because the problem is is when
11:24
we start to deviate our
11:26
services that are standard
11:27
across the whole entire company
11:29
for one or two individuals, It
11:30
creates inconsistency and what
11:33
people want really is only 80%.
11:35
Now, not that we shouldn’t give
11:37
them 100% but if you can give
11:38
’em 80% solid in its
11:41
predictable each and every week
11:42
and it’s a predictable process
11:44
and it’s a predictable quality,
11:46
they’re going to be happy. When
11:48
we go out, especially myself in
11:50
the early days, we go out and
11:51
try to be everything to
11:52
everybody. That’s where we get
11:53
into trouble. So, we want to
11:54
make sure that we kind of put
11:57
it back in the consumer’s hands
11:58
and say, hey, listen, we we try
11:58
to make the exception.
12:01
Unfortunately, we we can’t
12:02
continue this exception because
12:04
it’s not meeting your needs and
12:06
it’s out of scope of what we
12:06
normally do and do well that
12:08
you love. So, either you go
12:10
with an unselected herbicide
12:12
for the weed control in the
12:12
beds or we kind of part ways
12:15
and we copy maybe a mowing for
12:16
free and send some goodwill. If
12:18
we are going to keep the
12:20
customer, the two options here
12:21
is an hourly charge with the
12:24
consumer sending a cap of how
12:26
many hours, credit card on file
12:28
with signed capture or the
12:30
third option which I like the
12:31
least especially around bed
12:32
maintenance and weeding as we
12:34
that price that 195 to 200 that
12:37
we’ve seen here that we need
12:39
based on your numbers and we
12:41
move forward and continue it.
12:42
The thing you need to be
12:43
careful is job notes and
12:45
probably before and after
12:46
pictures through your mobile
12:47
app to document the process but
12:50
you are getting yourself, I
12:50
think in my opinion and I’ve
12:52
done this before is when we get
12:54
out of the scope of what we do
12:55
well and what we can train and
12:58
standardize when we get out of
12:58
that, that’s where we get into
13:00
trouble. We start losing money
13:01
and we start upsetting clients
13:02
and the quality is as good
13:04
because we’re not training to
13:06
that exact process procedure
13:07
across all say five or 600
13:10
accounts you’re servicing. So,
13:12
that is my take on it. Great
13:14
question. Um but I I gotta give
13:17
this contractor credit. If
13:18
you’re not tracking your daily
13:19
and weekly budget versus actual
13:21
hours and running that audit on
13:23
those clients in the middle of
13:25
July and November, December in
13:27
most areas and be able to raise
13:30
your dollar per man hour
13:31
revenue to the penny and make
13:33
those services apply to it. Um
13:34
you’re kind of flying lines.
13:36
So, this contractor, huge
13:39
kudos. Way to follow the
13:40
system. I would say have the
13:41
candid conversation, either
13:43
have them accept the
13:44
standardized service or they
13:45
don’t and we compliment maybe a
13:47
mowing to make sure they’re at
13:49
least kind of satisfied and
13:51
they’re not going out on social
13:51
to kill you but if you are
13:52
going to do it, do an hourly
13:54
with a minimum, signed
13:55
contract, card on file, we bill
13:56
it right afterwards, before and
13:58
after pictures in your mobile,
14:00
or the least favorite is raised
14:02
it’s the one95 to 300 or 195 to
14:04
200a visit. Same thing, have
14:07
them sign off, credit card on
14:08
file before and after pictures
14:09
and protect yourself.
14:11
Callahan’s Corner, you ask the
14:12
questions, we answer them live
14:13
right here on Facebook. We’ll
14:14
see you again later this week.

Callahan’s Corner: HOA work, Who is Liable for 5k to 6k in Damages

Video Transcript

Transcript:

Corner where you ask the
0:02
questions we answer them live
0:03
right here on Facebook. Got a
0:05
doozy submitted in one of the
0:07
private Facebook groups. Um so
0:08
I thought I’d answer this
0:10
question here via video. Um
0:11
says an HOA snow ice client,
0:13
snow removal, almost four
0:15
months is seeing our four
0:16
months afterwards is seeing our
0:18
plows damaged their speed bombs
0:19
and we need to pay the repairs
0:21
estimated between five and
0:23
6thousand dollars. Our winter
0:24
contract does not say anything
0:26
about not being liable for the
0:28
curbs and the speed bump The
0:31
HOL HOA also let this
0:34
contractor go sometime in March
0:36
because they felt that
0:38
potentially their prices are
0:38
too expensive. They did in fact
0:41
pay the invoices in full for
0:42
the contractor which is a win.
0:44
What would you do about the
0:46
speed bumps? Uh several
0:47
comments in here. Uh they have
0:49
no proof and if they are no
0:51
longer a client, shouldn’t
0:52
Roane damage be covered by the
0:54
city. In fact, most HOA roads,
0:56
if you’re plowing them, you
0:57
know, are private roads and
0:58
owned and maintain by the HOA.
1:02
Reason being you have to have a
1:02
contractor Um go in there and
1:05
some other people commented
1:06
that they are worried about a
1:08
lawsuit. Um it could leave
1:10
damaging reviews. So, after
1:12
about twenty-six, 27 years in
1:14
snow and ice removal in Upstate
1:15
New York, Rochester, New York
1:17
to be particularly the third
1:18
largest snowfall market in the
1:20
whole United States averaging
1:21
about a hundred and 30 to about
1:23
125 inches of snow. Lakeside,
1:26
this is near and dear to my
1:27
heart. So, the contractor
1:30
unknowingly probably should
1:31
have reached out to a legal
1:34
entity such as a lawyer to
1:36
actually have some hold
1:37
harmless information in there.
1:39
So, my take on this is you’ve
1:41
got a bit of a gray area.
1:42
Technically, you are liable for
1:44
the damages caused to road, the
1:46
speed bumps, and potentially
1:48
the curves if it’s not in your
1:49
contract. Now, the contract is
1:53
ended. They’ve paid you in
1:54
full. So, I would suggest
1:56
sitting down and actually
1:57
having a conversation with the
1:58
HOA if reasonable to see if you
2:01
can actually meet somewhere in
2:01
the middle. You are correct.
2:03
Yes, damaging reviews from not
2:05
only just the HOA but all the
2:06
people in the HOA so you can
2:08
have multiple Facebook, Google,
2:09
Yelp reviews. It could spiral
2:11
into a really downward, ugly
2:13
situation for you. Now,
2:15
hopefully, we do have an
2:17
insurance coverage and that
2:19
will be covered. So, maybe a
2:22
payment four to 500 or a
2:24
thousand as a deductible. We’ll
2:25
cover you. That’s probably the
2:27
road I would go through and let
2:29
your insurance company handle
2:29
it after at least having a
2:31
conversation. Don’t emit any
2:33
fault or guilt because you
2:34
could get yourself trouble
2:35
right off the bat. Um but
2:37
technically my my opinion on
2:39
this one and we’ve been there
2:41
is that you are probably on the
2:42
hook. That’s why we have
2:43
insurance. But the lesson to be
2:45
learned here is we really need
2:46
to go out and protect ourselves
2:49
as contractors. And be upfront
2:51
with our bidding process. So
2:53
I’m going to show an example of
2:53
a residential contract that we
2:56
use in our company. Some of the
2:58
verbiage was pretty much
2:59
identical for commercial snow
3:01
removal. It was actually a
3:01
little more lengthy. I
3:02
literally just read this and
3:03
I’ve gotta hop on, believe it
3:04
or not my lawyer in five or 6
3:06
minutes to update some
3:07
contracts. So, I was like, let
3:08
me answer this in the next five
3:09
or 6 minutes but if you can’t
3:11
see this here, the area that I
3:13
highlighted is, well, actually,
3:15
I’m going to read through all
3:16
of it ‘cuz it actually, you
3:17
need to go in whether it’s
3:19
residential or commercial. Like
3:20
I said, the commercial contract
3:20
is a little more lengthy and
3:22
more detailed but these are the
3:23
main things you need in any
3:25
snow removal contract in my
3:26
opinion. The driveway will be
3:28
plowed. When the snow falls and
3:29
accumulates from the sky on the
3:31
driveway with a total
3:32
accumulation of three inches in
3:35
non-obstructed areas. Sounds
3:36
obvious to us but we are not
3:38
plowing under cars. We are not
3:40
coming back after the cars are
3:41
moved. Unobstructed areas. Now,
3:43
in a commercial situation, we
3:44
need to define, are we coming
3:46
back to plow the parking lots
3:47
that have cars in them? What is
3:49
the time span that we’re
3:50
actually doing this in and what
3:52
is the length of time we’re
3:53
willing to wait? If any, to
3:55
hurt people to move their cars
3:57
because you could have a 15 to
3:58
20-minute cleanup run for some
4:00
parking spots in an HOA or
4:01
general parking area that could
4:02
turn into a to five-hour
4:04
ordeal. Complete with honking
4:06
and people running into your
4:07
truck or each other. So, those
4:09
are things I would recommend in
4:10
the commercial end that we add
4:11
into that. In addition,
4:14
highlighted area, the company,
4:16
Callahan’s Lawn Care is not
4:17
responsible and will be held
4:19
harmless for any previous
4:21
driveway damage and or any that
4:23
may occur since all driveways
4:26
or pavement conditions are not
4:27
the same. And we also included
4:30
inside that contract in the
4:31
commercial end that to the fact
4:33
that we couldn’t see the
4:35
conditions on a nightly basis
4:36
or daily basis underneath the
4:38
snow. We were not able to
4:39
actually monitor some of the
4:41
conditions throughout the snow
4:43
event. So if damage happened,
4:43
we were not taking
4:47
responsibility that. Callahan’s
4:49
will also be held harmless for
4:50
any slip and fall on your
4:51
property or damages to siding
4:54
or fences directly next to the
4:57
plow area. All equipment is new
4:59
and properly maintained to
5:00
avoid damage. So we’ve held
5:01
ourselves harmless. So, we if
5:03
we went and got sued, this
5:06
alleviated is from slip and
5:07
fall liabilities, any damage to
5:08
the property. Now, the big
5:09
thing you’re going to see with
5:10
property management companies
5:11
is they’re going to try to
5:12
force you to sign their
5:14
contract which eliminates any
5:15
of the rights you may have. I’m
5:17
going to highly recommend it.
5:19
All costs and you do not sign
5:21
it and if you do have to sign
5:23
it, have your lawyer review it
5:24
and add amendments to it that
5:26
are attached and signed to it
5:27
to get you off the hook for
5:29
some of these things. Uh we got
5:30
sued for an HOA where gentleman
5:32
from a garbage this company
5:35
slipped and fell on the
5:36
driveway of one of the homes in
5:37
the HOA are only responsible
5:40
for salting the main roadways.
5:42
So, we add an addendment to
5:44
that particular contract that
5:45
we were not responsible to any
5:49
of the non-salted areas for
5:50
slip and fall liabilities such
5:51
as the sidewalks and driveways
5:53
that we did not maintain. In
5:55
addition to actually still
5:57
being held harmless for the
5:58
main driveways. We will not
5:59
guarantee an exact time the
6:01
driveways plowed you the way
6:02
the snow may accumulate. You
6:03
may be locked into some really
6:05
stringent timelines but if it
6:06
starts snowing at three, four
6:07
in the morning, Um it doesn’t
6:09
hit the trigger till six and
6:10
everybody rolls out at 6thirty.
6:12
You can’t be there on that
6:14
timeline. Just impossible. So
6:15
set the cadence and
6:17
expectations upfront. Also not
6:19
responsible for snow drifts.
6:20
Snow plowed by the town part
6:23
trucks on sidewalk or apron if
6:25
snow prevents entrance into the
6:26
driveway or maybe damaging the
6:28
vehicle. It may be plowed out
6:29
at your request which we charge
6:30
an additional fee. In addition,
6:33
down here at the bottom, I
6:34
want to bring kind of to this
6:36
because this is going to happen
6:38
snow market eventually if it
6:39
hasn’t. So, in 2014, Upstate
6:42
New York, Buffalo. Buffalo had
6:43
snow, no joke, literally up to
6:45
the gutters of the first-story
6:46
homes. Uh City went into a
6:47
state of emergency for probably
6:50
about a week but we wanted to
6:52
put a contingency in there. In
6:53
the event of a snow emergency
6:55
where a one-ton truck cannot
6:56
plow the driveway, load of
6:58
services available at an
7:00
additional charge at market
7:02
rate, several feet of snow in a
7:04
24-hour period similar to the
7:05
2014 snow storm in Buffalo, New
7:06
York that was absolutely
7:09
paramount and it did save us
7:11
because we did have a couple
7:12
massive storms where it at
7:14
least bought us some more time.
7:16
We didn’t need to bring the
7:17
loader but if we did, we were
7:18
able to charge for it legally.
7:20
So, my suggestion here is talk
7:23
to the HOA, see if they’re
7:25
reasonable, don’t necessarily
7:27
commit to anything. If you can
7:28
have a somewhere in the middle
7:30
agreement that’s amicable, that
7:31
saves you some insurance,
7:33
great. If not, have your
7:33
insurance come in, pay for it
7:35
but by all means add these
7:37
things into your contract, talk
7:38
to a lawyer each year, put them
7:40
on a retainer for a couple
7:41
hundred dollars, a 000 a year,
7:43
and have them review this as
7:44
the laws change. So, those are
7:47
the things, unfortunately, I
7:48
think you probably are on the
7:49
hook for this, you know, but
7:51
that’s why we have insurance
7:52
but do your due diligence and
7:54
make sure that we’ve got these
7:55
and if you are forced to sign
7:56
the HOA contract, have your
7:57
lawyer review it and add some
7:59
amendments that are attached to
8:00
it. So, hopefully, protect you
8:01
as the contractor and
8:03
potentially protect your client
8:04
as well from different slip and
8:06
fall liabilities because if
8:08
somebody goes down in that HOA,
8:09
they’re not only suing the
8:11
contractor but they’re suing
8:12
the HOA and probably whoever
8:14
owns the unit if they go down
8:15
to that unit. So, by doing
8:16
this, you can protect yourself,
8:17
the HOA, and the management
8:19
group because they’re going to
8:20
get wrapped up into that
8:21
lawsuit as well. So, Callahan’s
8:23
Corner s, you ask the
8:24
questions, we answer them live
8:25
right here on Facebook.

Callahan’s Corner: Weekly Meetings and What You Need to be Talking About

Video Transcript

Transcript:
0:02
Corner. Were you asked a
0:02
question? We had some live
0:03
right here on Facebook. Had
0:04
another great messenger
0:06
question submitted last week.
0:08
Um I’ll paraphrase it here but
0:10
basically, a gentleman is
0:11
saying that Mike, I hardly ever
0:13
get time to have one-on-one
0:14
meetings with my office staff,
0:15
my crew leaders, and some of my
0:17
managers and what I do have
0:19
these meetings, I’m not really
0:21
sure what to talk about and
0:23
they seem to, if I’m
0:24
paraphrasing here, be all over
0:26
the place with no organization
0:27
and if I’m reading between the
0:29
lines here, probably don’t have
0:29
a of value in the managers, the
0:33
crew leaders, and the office
0:34
staff really don’t enjoy them
0:36
and there’s really no need to
0:38
have these unless they’re
0:38
organized. So, this is
0:40
something actually we’ve been
0:41
working with and going to be
0:42
instituting in the Simba Girl
0:44
Scout Group where we have
0:45
one-to-one coaching with
0:48
business owners under a million
0:50
dollars in our over a million
0:51
dollar basically consulting
0:53
group is our masterminds group
0:55
but I’m going to open up the
0:56
screen here. So, if somebody
0:57
owns a service business, this
0:58
is pretty much what we in my
1:01
service business as well. Um
1:02
and feel free to take a look at
1:04
it and you know institute this
1:06
in your own business here. So,
1:07
let me flip the screen over
1:08
here and pop this open. So,
1:10
this is something if you’re in
1:11
the scout group with Simple
1:12
Growth with the one-on-one
1:14
consulting two and a half hours
1:15
with our seven-figure business
1:16
experts. Uh you’re going to be
1:18
seeing here shortly but this is
1:19
something we used in my
1:21
business here and this is what
1:22
we’ve been looking at on a
1:24
weekly basis. So, on the far
1:26
left here, we’re going to be
1:27
walking through and this is a
1:28
10 to 15-minute exercise with
1:30
some things off to the right
1:32
that need to be prepared before
1:33
the meeting. Uh top of mind,
1:34
things we should talk about.
1:35
So, you’re actually engaging
1:37
this and the employee, not the
1:40
managers filling this out to
1:41
have ownership. Uh priority
1:43
since we last met, what have
1:44
you been working on? Uh
1:45
priorities until we meet again.
1:47
Top things you’re going to be
1:49
focusing on from now until the
1:50
next time we meet. Positive
1:52
things that went well this
1:53
week. Recent wins and positive
1:54
news. We’re going to frame it
1:56
with positivity and see what’s
1:57
going on. Uh next thing is our
1:59
Challenges. Roadblocks and
2:01
concerns that we can work we
2:02
can work out. And last thing is
2:05
feedback, recognition, and
2:07
suggestions for improvement. So
2:09
whether it’s a crew leader for
2:09
a landscape maintenance
2:11
company, a cleaning tech with a
2:13
multi-person crew, a manager,
2:15
or the office. This all
2:17
basically on the left hand side
2:18
fits in perfectly. Now, what
2:21
we’re looking at here on the
2:21
far right is probably going to
2:23
be more for a manager or
2:25
business owner. But this is the
2:26
things that we should be doing
2:27
on a weekly basis. The things
2:29
on the left here even as the
2:30
business owner, I have a
2:32
personal coach that I meet with
2:33
every Friday for an hour, not
2:34
cheap but we have these types
2:36
of accountability. So, these
2:37
are some of the things that I
2:39
actually do in my current
2:39
business as well as the lawn
2:40
care business. So, on the left
2:43
here, or in the middle, we’re
2:45
looking at employment
2:47
recruitment in virtual bench.
2:48
If you ever heard me talk about
2:49
stacking the virtual bench, we
2:50
should always be interviewing
2:52
at least twice a week.
2:53
Traditionally, Monday,
2:54
Wednesday, and sometimes
2:55
Friday. We’re stacking the
2:56
virtual bench. So, when we meet
2:57
an employee and we we don’t
3:00
have a basically a virtual
3:02
bench set almost like a farm
3:04
team for a sports club. It’s
3:05
too late. So, we need to have
3:07
those people already readily
3:08
available on screen before we
3:10
go out and hire. So, what I’m
3:11
going to recommend is go out
3:12
and interview two to three
3:13
times a week and we should be
3:15
tracking this for our cadence
3:16
to see where these interview
3:17
people coming from or
3:19
applicants are coming from. So,
3:20
this Thursday for the scale
3:21
group, we’ve got a whole hour
3:22
about going out and doing paid
3:25
advertisements for in in a in a
3:28
recruiting process to go out
3:30
and get employees when you need
3:31
them but also to stack that
3:33
virtual bench. So, we’re
3:34
going to put the date of the
3:35
week in here. How many
3:36
interviews were booked? How
3:38
many showed? How many were
3:39
hired? And then how many were
3:40
qualified to go on that virtual
3:42
event? So, what we’re doing is
3:43
creating a cadence of
3:43
accountability throughout each
3:46
week tracking your employment
3:48
process. I’ll tell you folks,
3:50
including myself in the early
3:51
days, we did not do this and
3:53
man, when we we stopped doing
3:55
this, we got in trouble. So,
3:56
really need to go out right in
3:58
my opinion, several times a
3:59
week and go out and recruit
4:00
even if we don’t need anybody
4:01
because you’re going to find
4:03
these applicants that you may
4:05
be able to use. So, the
4:06
gentleman who ran my company, I
4:07
found him about a year and a
4:08
half, two years earlier than I
4:09
needed him but it was a perfect
4:11
applicant. So, we moved some
4:11
money around and made it happen
4:13
but like I said, when you’re
4:14
going out to find that person
4:15
when you need them right in
4:16
that time and then, BDC, you’re
4:18
not going to find it. So, we
4:19
need to go out and recruit
4:19
beforehand. So, I’m suggesting
4:21
that our weekly meeting summary
4:23
from the following week for the
4:25
previous week, we go in
4:25
interviews interview showed,
4:27
hired, added to the virtual
4:29
bench. And then the final thing
4:30
based on the position, this
4:32
would be great for crew leaders
4:34
as well. Uh, in the field and
4:36
managers is the week of the
4:38
total budgeted hours for either
4:40
that crew that they’re in
4:42
charge of or the whole entire
4:43
division or company if they’re
4:45
managing that whole entire
4:46
company depending on the size
4:47
of it. But we want to know the
4:48
total budgeted hours, total man
4:49
hours work, and over and under
4:51
man hours. Now I would also
4:53
suggest here in the space
4:54
below, we have something about
4:56
quality because production that
4:58
is not aligned with quality
4:59
work is not going to be a
5:01
benefit. So, I would go in and
5:02
probably put some kind of
5:04
internal ranking like we did.
5:06
We did internal QC test and
5:08
then, we also had a portion
5:10
that based on the clients
5:11
calling in compliments or
5:13
complaints. So, those are the
5:14
things I I’d suggest you be
5:16
looking at but a quick summary
5:17
here, top of mind, things we
5:18
should talk about here.
5:20
Priority since we last met,
5:21
what have we been working on?
5:22
Priorities until we meet again.
5:24
Top things you’re focusing on
5:24
from until the next time we
5:27
meet, things that went well
5:28
this week, recent winds and
5:29
positive news and then we’re
5:31
looking at our challenges,
5:32
roadblocks, concerns, and ways
5:33
we can work them out and then
5:35
feedback, recognition, and
5:38
things for improvement. So,
5:39
these are the things that I
5:40
would suggest on your weekly
5:41
meetings with crew leaders,
5:43
managers, and office personnel,
5:46
a version of this is going to
5:47
be in, and then whoever’s
5:48
responsible for your
5:49
recruiting, right here, weekly,
5:52
how many interviews you were
5:52
booked, how many showed up, how
5:53
many hired, how many stuck
5:54
filtered to bench that were
5:56
qualified and then production
5:58
wise, budget, total hours work
6:01
over and under budget and I
6:01
would have a quality thing in
6:03
here and the final thing that
6:05
I’d be looking at off to the to
6:06
right here that is not on here
6:08
yet is I’d be also looking at
6:09
total client count, total
6:12
cancelled clients, new clients,
6:14
and net new and those are
6:16
going to be metrics across a
6:18
service business. I’m going to
6:19
recommend you look at on a
6:21
summarized weekly basis. So, if
6:22
you’re wondering how to go out
6:23
and tackle weekly one-on-one
6:28
meetings, this is what we do.
6:29
Every every week at Simple
6:31
Growth, every Tuesday, the
6:32
second half of the day, I’m
6:32
doing one-on-one meetings,
6:34
creates clarity, and we can go
6:35
in and better support the team
6:36
members and in a turn, better
6:38
support our customers. So,
6:40
comments, questions, drop
6:41
below. Callahan’s Corner. You
6:43
ask the questions. We answer
6:44
them

How to Charge for Gas and Travel Expenses

Video Transcript

Transcript:
0:00 Make a quick video. I had a
0:02
question submitted right now
0:04
with the crazy gas prices and
0:07
needing to cover drive time.
0:08
How do we actually go out for
0:09
best practice and institute
0:11
this into a software program to
0:13
make sure that each and every
0:15
job moving forward that is
0:17
estimated includes travel time
0:19
and approximate cost to cover
0:22
the labor, overhead, and the
0:24
gas. As well as if you’re doing
0:27
design, build, or landscape
0:28
maintenance far as like mulch
0:29
installation shrub pruning,
0:31
things like that. How do we
0:33
account for the travel time and
0:34
the gas cost that’s passed on
0:37
to the client but it’s not
0:38
shown upfront as an extra line
0:40
item itself. So, what I’m
0:42
going to do is open up a
0:43
software that we work with,
0:44
Service Autopilot and show you
0:45
how this is done. Uh the final
0:47
product that I’m going to
0:48
reverse engineer it over the
0:49
next 10 to 15 minutes but this
0:50
is going to be applicable to
0:52
any software that you’re using.
0:53
If you’re not using a software,
0:54
this is a great option to go
0:57
out and build this into your
0:57
system. This is something we’ve
0:58
done in my company since about
1:00
two thousand8 when gas prices
1:04
skyrocketed and we hit a
1:05
recession. So, this is tried
1:06
and tested and we’ve done this
1:08
for hundreds and hundreds of
1:09
companies over the years. I’m
1:10
going to show you actually how
1:11
to build this out yourself
1:12
here. So, comment your
1:13
questions, drop em below but
1:15
that’s how we’re going to do
1:16
it. So, right now, I’m going to
1:17
go in and this is the workflow
1:18
of how it’s going to happen in
1:19
your office and I’ll actually
1:20
show you how to set this up.
1:22
So, first thing I want to do is
1:23
go in. Uh this product here
1:25
service autopilot. This can be
1:26
done. Um even with an excel
1:28
sheet but if you’re not doing
1:29
you should be doing this in a
1:31
software. If not, at least a
1:32
Google sheeter sells sheet. So,
1:34
what I’m going to do is put in
1:34
the first blame and last name
1:37
of our lead. So, they’re
1:38
calling your office imagine and
1:40
we’re going in now and just
1:41
having a conversation asking
1:44
them where their property is.
1:46
Now, this could be commercial
1:47
or residential, really doesn’t
1:49
matter. and we put in the
1:54
postal code and then the system
1:55
if it’s in question is going to
1:56
ask us what city and state that
1:58
is. Now, we’ve got information.
2:00
You notice the service address
2:01
is automatically going into the
2:02
billing address and we’re
2:03
going to want to put in an
2:04
Email address so we can
2:06
actually send them out a
2:08
estimate with the gas prices
2:11
and overhead included in it and
2:13
we would put their cellphone
2:14
number in there so we could
2:15
follow up with an automated
2:16
system to text them and make
2:17
sure they got this estimate.
2:19
Final couple things I recommend
2:21
that you’re doing before we get
2:21
to this. Uh things you should
2:23
be tracking is the account type
2:24
commercial and residential and
2:26
finally the sales. Uh how’d you
2:28
how’d you hear about it? So, I
2:28
heard about you from your nine
2:29
around direct mailing. Or the
2:32
every direct door. EDM, every
2:34
direct door mailing with the
2:35
long copy of the picture. So
2:37
we’ve got them into the
2:37
software. We’re going to pull
2:40
him up. Now, we’re working this
2:41
lead over the phone and this is
2:42
where we actually kind of are
2:43
tackling the question at hand.
2:45
How do we go out and build for
2:46
these things and not raise a
2:49
red flag with the future
2:50
client? So, what we’re going to
2:51
do is go into the more tab and
2:53
I’m going to go into property
2:54
measurement and actually
2:55
measure out this property. Now,
2:56
I’m going to show you here
2:57
shortly how we actually have
2:58
the math going in here but I
2:59
want to draw some context to
3:01
this. So, right inside the
3:02
software, we’re going to go in
3:04
and measure that area. and got
3:09
a little busy with the clicking
3:10
here but let me go in and
3:11
measure this out. So, I’m just
3:13
grabbing the turf area. So,
3:14
this could be for lawn mowing,
3:16
could be fertilization, could
3:18
be any service. Right now, I’m
3:19
going to do a lawn mowing
3:20
example just for real basic
3:23
travel time and gas
3:24
recuperation. So, we’ve got the
3:26
area here. I’m going to
3:27
recommend if especially if
3:28
you’re using service autopilot,
3:29
you want to go in and color
3:31
code these. and name it. So,
3:33
every time we come up to the
3:35
client record, we know the
3:36
areas we’re servicing, what
3:36
we’re on the hook for. This is
3:38
a test account. It’s got a ton
3:40
of these custom fields but what
3:41
I’ve done is embedded a couple
3:43
emojis here. So, that will make
3:45
your sorting a little bit
3:47
easier. So, that’s a little pro
3:48
tip here if you are using
3:49
service autopilot. So, we’re
3:50
going to hit save and we’ve
3:51
gone in and adjusted this. So,
3:55
once we save that custom field,
3:57
we’re going to go in and add an
3:59
estimate. So, I’m going to do a
4:00
lawn mowing estimate. I’m also
4:01
going to do one for mulch
4:03
installation as well. So, we
4:04
actually can see how to add
4:07
material pickup as well as the
4:09
drive time based on location.
4:11
So, like I said, we’re going to
4:13
open this up and show you how
4:14
to actually build this but this
4:15
is the actual idea. So, I’m
4:16
going to go and grab my
4:17
template and all my services
4:20
are going to load here in a
4:21
second and what we’ve done is
4:23
at 8400 square feet is now that
4:25
I measured on the map
4:26
automatically comes in. On all
4:28
this is fictitious, you need to
4:29
make your own pricing but based
4:31
on the model that we set up
4:32
here, it’s charging $30 for the
4:34
on-site only mowing, weed wa
4:37
blowing, and edging. Uh we said
4:39
that’s going to take point four
4:40
man hours and based on the
4:41
hourly cost in his test
4:43
account. It’s costing us $14
4:44
and 76 cents before we make a
4:47
profit. So that comes out to be
4:48
about a 50% net profit bottom
4:50
line in your bank account. Now
4:52
you ask how do we account for
4:53
the drive times? Like I said,
4:55
this is actually from my
4:56
company, Callahan’s Lawn Care.
4:58
We’ve recreated this in this
4:59
test account. Uh but we’ve got
5:00
several areas. So if you’re in
5:02
Upstate New York, over in
5:04
Rochester, New York, these are
5:04
going to actually look
5:06
familiar. These are postal
5:08
codes. So, one, four, five,
5:08
three, four, one, four, four,
5:10
five, oh, some members on our
5:12
development team actually live
5:12
out there in Fairport. One,
5:14
four, five, two, six. In Greece
5:16
and Irondequoit, we’re right
5:17
near our shop. So, what we
5:18
would do is the admin in the
5:20
office would simply go by the
5:20
zip code and go in and
5:23
literally click in here. So, if
5:25
you’re going to this first zip
5:26
code, we just type the one in
5:27
there because we’re going there
5:28
once and it calculates its. 16
5:31
man hour. So, it multiplies it
5:32
by your hourly rate and
5:33
calculated $8 and nine cents.
5:35
Now, conversely, if we were
5:37
right by our shop and we did it
5:38
here in this Greece area, it’s
5:39
only $three dollarsand twenty3
5:41
cents and point oh six. So, it
5:43
allows you to basically be more
5:47
competitive, price wise, closer
5:50
to your shop but what we’ve
5:51
done is taking the map and the
5:54
routes of all our jobs and all
5:57
the jobs that are in the one,
5:59
four, five, three, four, postal
6:01
code. We’ve averaged them in.
6:03
So, if there’s five different
6:04
days we’re out there, we took
6:05
those five days on average
6:07
through the mapping program and
6:09
from the shop all the way
6:10
through those jobs and back was
6:11
the total time. Um not
6:15
basically drive-time
6:15
allocation. So, if there was 1
6:18
hour of drive time in those 30
6:19
stops, that would be 2 minutes
6:21
of average drive time per
6:23
visit. So, that’s how the math
6:25
has worked in here. Now, based
6:27
on this in a break it out here
6:30
in an Excel sheet a little bit
6:31
in a minute. How did we figure
6:32
out the drive time caustic
6:33
fence and actually add that
6:34
into that charge? I’m going to
6:36
get to that but this is what it
6:36
looks like in the software and
6:39
now, all the clients going to
6:39
see is lawn mowing here for
6:41
thirty-eight oh 9. 56 man hours
6:45
and a cost of twenty-six
6:47
seventy-four. So, we’ve got
6:48
about a 45% net profit margin
6:51
long as the guys and girls on
6:52
the crew hit their budgeted
6:54
time with equality. So, we’re
6:55
going to go to drafted quote.
6:57
Now, this is a live estimate we
6:58
built in the on-site time
7:00
specific to the machines we’re
7:01
using so you could break it out
7:03
to a sixty, a fifty-two, a
7:04
forty-eight, a push mower. Um
7:06
all those different things.
7:07
Backyard and front yard with or
7:09
without a gate, a smaller
7:10
mower. All these variables can
7:11
be built in here with that
7:13
drive time and overhead cost
7:14
effect. Now, in addition, if we
7:15
scroll down here I didn’t fill
7:19
out the on-site estimate form
7:19
but what would happen is you’ve
7:21
got one, two, or three inches
7:23
depths of bed. So, I’m going to
7:25
say we’re going out to this
7:25
residential property and it’s a
7:27
little more the top dress but
7:28
it’s two-inch addition, two
7:29
inches of additional depth. So,
7:31
we would plug in say 600 square
7:32
feet and what that’s going to
7:34
do is calculate $330 for the
7:38
three yards of mulch, three
7:39
hours to get it done, and 198
7:42
labor materials. That’s a 40%
7:43
profit margin. So, now, what we
7:45
can do is we figure on average
7:47
is how long is this going to
7:49
take to actually either fill up
7:51
the dump truck or the dump
7:55
trailer on site or drive to a
7:57
nursing unit filled and get to
7:58
that property on average in our
8:00
service area. So, based on
8:02
this, let’s say
8:06
this is 1, 200 square feet and
8:08
that’s six yards of malt. So,
8:10
maybe our dump trailer or dump
8:11
truck can only handle four,
8:13
five yards of mulch. That’s
8:13
actually going to make us go to
8:14
the shop twice and actually
8:17
wore the nursery and fill up
8:18
twice for the wholesaler. So,
8:19
what I could do is put in two
8:21
units here and it would be an
8:23
extra $42 dollars and 90 cents
8:24
and point 66 man hour. So,
8:26
we’ve covered the drive time
8:28
and the drive time gas effect
8:31
for that individual to go and
8:32
refill that dump truck twice.
8:34
So, these are the keys to
8:36
success that I usually see when
8:37
we set these up. We’ve done
8:39
this for my company. Uh
8:40
multi-seven-figure business as
8:42
well as hundreds of other
8:43
businesses anywhere from a half
8:44
a million to all all the way up
8:46
to 19 to 20 million in annual
8:48
revenue and it works on scale
8:49
but we need to do is build this
8:51
in here and be able to hit save
8:52
and have a system that a very
8:56
can measure this or enter data
8:58
in or someone in the field
8:59
through their mobile device and
9:00
be able to create these
9:02
estimates in a systematic way
9:03
that covers that drive time,
9:04
gas effect, and budgeted time.
9:06
It projects profit. So, once we
9:09
have this, we can go in
9:10
literally and hit Email and
9:13
what it’s going to do is pull
9:15
up a an Email here and here it
9:18
is right here and we’ve got a
9:20
pretemplated Email button. You
9:22
can click if you’re on your
9:23
mobile in the five major
9:24
reasons why our business is
9:26
different than other
9:26
businesses. So, this right here
9:28
is basically incorporation of a
9:30
lead letter and it
9:31
differentiates yourself and
9:32
you’ve built it enough value
9:33
into this before they get the
9:34
estimates. So, price is not the
9:36
issue. So, what I’m going to do
9:37
is hit send real quick and on
9:38
my other screen, I’m going to
9:40
pull up my Email real quick so
9:40
you can see what the consumer
9:42
is getting and how we built
9:43
that in and then in the next
9:44
five to 8 minutes, I’m going to
9:46
actually go in and show you how
9:47
to build this out inside your
9:50
software system here. So, this
9:54
is going to be, in my opinion,
9:56
instrumental right now with
9:58
everything that’s going on in
10:01
the industry right now. So,
10:02
what we’ve got here is inside
10:03
my Email inbox. The ability to
10:04
go and see the Email that was
10:06
already pretemplated. Nobody’s
10:08
writing an Email. It’s said it
10:09
and forget it. We’ve got some
10:10
testimonials in here. Um and
10:12
what we’re going to do is the
10:13
customer now is going to click
10:14
view my proposal and as this
10:16
opens up, we’ve got it right
10:18
here. Step one, select the
10:20
services. Step 2, accept and
10:21
sign. Now, what I’m going to
10:23
recommend for best practice,
10:24
don’t have all this verbiage in
10:25
here but in this test account,
10:27
we’ve got all the verbiage to
10:28
say, hey, you can put as much
10:29
details you want in here or you
10:31
have a couple things spilling
10:33
the exact service and
10:34
underneath in in the contract
10:36
or the estimate terms you have,
10:37
the finer details but once
10:38
again, it’s got that
10:39
thirty-nine oh nine in there
10:40
per cut includes the drive time
10:42
and budgeted time. Consumer can
10:44
click it and another key to
10:45
success is we can go in and
10:48
have a video embedded live
10:50
inside the estimate that
10:52
actually talks about what’s
10:53
included, not included in the
10:54
service, and we can create more
10:56
perceived value. So, this video
10:57
myself in here was our our
10:59
automated salesperson,
11:00
literally twenty-four seven.
11:02
Now, the mulch insulation
11:03
obviously, we could’ve updated
11:05
the details but we built this
11:07
out as a test account but you
11:08
got $702 and 90 cents. That
11:10
actually include the mulch
11:13
installed, I believe it was six
11:14
yards and it includes the drive
11:16
time for two different visits
11:17
with the dump trucker dump
11:19
trailer. So, that’s the idea
11:20
here. Now, obviously, we can go
11:21
in and update that and another
11:24
pro tip here. So, if we went
11:25
in, you can go in on the fly
11:29
and update this one off.
11:31
Traditionally, you want that
11:32
all loaded in but what you
11:33
could do is includes mulch,
11:43
flavor or mulch, installation
11:47
of double round,
11:56
and you can put that in there.
11:58
So, you can obviously put some
11:59
more details and everything.
12:00
You could customize it on the
12:01
fly, hit save. Cool thing here
12:03
is when I go to view my
12:05
proposal and I actually refresh
12:07
this. Uh system hasn’t caught
12:11
up but that would actually
12:12
update this system here. So, we
12:14
go and see if I can get this to
12:15
actually update for us just so
12:16
I can show you the live update.
12:18
This is a cool trick. You can
12:20
also do this for change
12:22
requests as well. And actually
12:24
get that to come out.
12:28
and
12:29
we’ll give it one more try.
12:31
Alright, so right there, it
12:32
automatically updates that. So,
12:34
that’s another pro tip. You can
12:35
update those until some excepts
12:36
or doesn’t accept it which
12:37
means you can also update the
12:38
price. So, that’s what it’s
12:40
going to look like finish.
12:41
You’re going to measure it
12:42
through the mapping program.
12:43
Probably have an on-site
12:44
estimate form to plug in the
12:46
square footage of the mulch
12:46
better measured online. We’ve
12:48
included the additional drive
12:50
time in there for the mulch and
12:53
we’ve included it for the lawn
12:54
mowing based on postal code.
12:56
here. So, As we’re going in,
12:58
this is how we actually fill
13:00
this out. So, if our dollar per
13:03
hour goal is say, let’s say $65
13:05
and we’ve gone through a
13:07
financial overhead recovery
13:09
model. So, we know it’s costing
13:11
us $42 per man hour break even.
13:13
That’s including your average
13:15
fuel cost. Now, at the higher
13:17
rate, that’s going to be built
13:18
in. So, what we do is say,
13:19
okay, what’s our base price?
13:20
The lowest we would charge to
13:21
go in. So, I’m going to say at
13:22
4-5 bucks and based on that
13:25
equals 4-five divided by 6five
13:27
bucks an hour. The longest
13:29
amount of time I can take is
13:30
point six nine man hours right
13:32
here. Now, a lot of people are
13:33
going to be like, what is point
13:34
69 man hour mean? Well, that
13:36
means if one person was mow
13:38
blowing stick edging that
13:38
property, they’d have 41. 4
13:40
minutes to get that done.
13:41
That’s the most amount of time.
13:42
So, we’ve got that in there and
13:44
I’m going to say between one
13:45
and 5000 square feet is my base
13:48
price of forty-five and if I go
13:50
in and add some simple math
13:51
here, that budgeted time, time
13:53
is a break, even a 42 hour.
13:55
Coverage drive and gas here. Uh
13:58
that’s twenty-nine oh eight.
13:59
So, you’re charging 4five. It’s
14:01
cost you twenty-nine oh eight.
14:03
You got about a thirty-five
14:04
percent profit margin of
14:05
fifteen ninety-two. In this
14:07
example, now, what I’m going to
14:08
say is a very basic model.
14:09
Every thousand square feet over
14:10
the first 5000 is let’s say our
14:13
production rate is 6 minutes
14:16
per thousand. That’s
14:17
significantly higher than it
14:19
probably would be but we’ll go
14:20
with it just for this example.
14:21
So, it’s point 10 or. 1 man
14:24
hour. So, if I would go in and
14:26
that multiply by my hour rate
14:28
of sixty-five, I would need to
14:30
charge $6 and 50 cents per
14:31
thousand and it would be
14:32
costing me $4 and 20 cents. So,
14:35
that’s the on-site labor and
14:37
how we create a system where
14:38
you measure it and that’s what
14:39
the math does in the back end
14:40
of the software. Now, for drive
14:43
time, I’m going to just put DT
14:45
one four six one two. That’s
14:47
the the postal code, okay? And
14:49
I would say from one to one
14:52
trips to that area, let’s just
14:53
say, on average, each stop the
14:54
drive from the shop, to the
14:57
first stop, all the way through
14:58
25 stops and back to the shop
14:59
again. Let’s say that takes
15:01
about 8 minutes drive time. So,
15:03
eight divided by 60 is point
15:06
one three. So, my price would
15:09
be the. point13 man hours times
15:11
6-5 bucks. It would make that
15:12
would ensure that I would have
15:14
to charge $8 and 67 cents per
15:18
stop to cover that non-billable
15:19
drive time and the additional
15:20
gas expenses built in to now
15:23
the forty-two an hour from the
15:25
38 and every one visit over the
15:28
first visit is an additional
15:29
eight seventy-six point one
15:30
three man hours and its cost is
15:32
560. So, that’s how we build in
15:34
the onsite versus the drive
15:35
time and that’s exactly what we
15:37
had inside service autopilot.
15:39
That’s what was going on behind
15:41
the scenes. Now, same idea as
15:43
the drive time here, pickup,
15:46
and delivery of materials, 65.
15:49
I’m going to move that 30 up to
15:50
$42 an hour break even based on
15:51
new gas prices and inflation
15:53
and once again, it’s a
15:54
one-to-one ratio. So, each
15:56
visit, if it took me forty
15:58
minutes to do at. 75 man hours,
16:01
I would have to charge at 65
16:05
bucks an hour, forty-eight, 75
16:07
per pickup of materials. So,
16:10
each pickup, it’s an additional
16:12
4eight seventy-five. Each
16:13
additional one is another
16:14
forty-eight seventy-five. What
16:15
we’re going to do then is go
16:17
into service autopilot under
16:20
the gear icon and this is where
16:21
it actually all comes together.
16:22
So, you’re going to build out
16:24
some things called custom
16:25
fields first. These are those
16:26
job variables. So, you’re
16:27
going to go and create
16:34
per square footage and it would
16:38
be built to a number and then
16:40
save a new and then you would
16:42
put in the one four six, one,
16:44
two, that’s the postal code,
16:47
that I had in the example.
16:49
Primetime, number of trips. Hit
16:51
say, next step is we’re
16:53
going to go into
16:57
services and build this out.
16:58
Now, we’re going to use a
16:59
simple growth blueprint here.
17:00
This blueprint, we blueprint it
17:02
before we build it just like we
17:03
build a house off of blueprint.
17:04
Do you not want to go in and do
17:06
this without a blueprint? So,
17:07
we’re going to do is add a
17:08
service and quickly, I’m
17:10
going to show you how to build
17:11
this out. So, you would have
17:12
your lawn mowing.
17:17
and
17:18
you would need to go in the
17:19
per unit, invoice description,
17:21
income account is going to be
17:23
maintenance services and
17:25
estimates what the subscription
17:27
is on the, on the estimate, and
17:29
then rate matrix, we go to
17:30
quantity rate times visits, we
17:32
would go in and pull up your
17:35
turf square footage, and the
17:37
one to 5000 square feet that
17:40
was on the blueprint here,
17:42
taking the top five lines and
17:44
bottom five lines and literally
17:45
put him in there and that’s as
17:47
easy it is. Now, you’ve built
17:48
in your overhead recovery and
17:49
job costing for your service
17:52
business. Now, this could be
17:53
lawn care, home cleaning, pest
17:54
control, pool services, holiday
17:56
lights. List goes on and on.
17:58
We’ve done this in multiple
17:59
industries. Uh asphalt
18:01
maintenance, you name it. So,
18:02
what we’re doing is just
18:04
literally taking these top five
18:05
lines and I’m driving it right
18:07
here. So, one to 5000 square
18:08
feet is forty-five bucks. And
18:12
We’ve got point 69 man hours.
18:18
and it is costing us 2908
18:22
before profit. So, you kind of
18:24
get the idea. We’re just
18:25
rebuilding that blueprint now.
18:26
The top five lines and the
18:27
bottom five lines. Each one of
18:29
these services and now they’re
18:31
connected in the back end of
18:32
the template. You measure it,
18:33
it pulls the math in. We know
18:35
the math is right because we
18:36
tested it in the blueprint and
18:37
now we have a way to create
18:39
systematic, repeatable
18:40
estimates can be delegated to
18:41
anybody in your business.
18:43
Callahan’s Corners, you ask the
18:44
question, we answer them live
18:45
right here on Facebook. Leave
18:46
your comments, questions below
18:47
but that’s how I recommend
18:49
tackling the drive time per
18:51
postal code or zone in your
18:52
business and up and delivery or
18:55
disposal of debris for your
18:57
landscape maintenance services
18:58
or your hardscaping services
19:00
and how you’d update that based
19:02
on the higher gas prices and
19:03
have that job-costing and
19:05
additional prices hidden in the
19:08
back end of the software that
19:08
you’re using. So, comment your
19:09
questions, drop below.
19:11
Callahan’s Corner US

Callahans Corner: Drive-Time and Crews Stopping at Gas Stations…$$$$ LOST

Video Transcript

Transcript:
1
Corner where you ask the
0:03
questions we answered live
0:03
right here on Facebook. So, had
0:05
a question submitted earlier
0:07
this week. Company business
0:08
owner wanted to know how do we
0:11
communicate with the crews to
0:11
get them to stop going to gas
0:15
stations and fast food joints
0:15
outside of their break time
0:18
because it’s absolutely burning
0:19
up their profits and with the
0:21
price of gas right now, it’s
0:23
eroding their bottom lines.
0:23
Well, folks, this is nothing
0:25
new if you’ve owned a service
0:27
business. After 25 years,
0:28
owning a lawn care and snow
0:29
removal business. This is
0:30
Something that every business
0:32
owner including myself has
0:34
dealt with but we really need
0:35
to be able to go out a
0:37
conceptualize what the cost of
0:38
that extra drive time is and if
0:41
you eventually move to a
0:43
pay-per-performance or peace
0:44
rate system, how you educate
0:46
your crew around making good
0:48
decisions and not bad decisions
0:50
and finally, even if you’re not
0:52
using a P3 to pay for
0:54
performance system, how do we
0:54
have a conversation? So, the
0:56
crew actually understands what
0:58
they’re doing for their budget
1:01
verse actual time and how this
1:03
craziness of stopping at
1:04
Wendy’s halfway across the city
1:06
for a frosty on a 90-degree day
1:08
is absolutely killing Ada
1:10
cruise efficiency. Their profit
1:11
in their pocket if they’re not
1:12
paid for performance and
1:14
killing the company at the same
1:15
time. The madness has gotta
1:17
end. Um just saw five or six
1:19
trucks in a Wendy’s parking lot
1:20
on the way to the office this
1:22
morning. All eating breakfast
1:23
with their feet up on the
1:24
dashboard. That company was
1:25
getting blood dry and if that
1:27
company had paid for
1:29
performance at peace rate,
1:30
those employees were doing
1:31
themselves some injustice. So,
1:32
I’m going to pop the screen
1:33
over in here. And really show
1:35
How we broke it down in my
1:36
company, Callahans Lawn Care
1:38
and explained to the crew
1:39
members how they actually were
1:41
hurting themselves because
1:42
they’re on a peace rate or pay
1:43
performance system and how we
1:45
can actually talk to crew
1:46
members even if they’re not on
1:47
that kind of system about the
1:49
impact and how we can educate
1:51
managers and business owners
1:53
what the net effect of that gas
1:54
station or Wendy’s stop is. So,
1:56
I’m going to pop the screen
1:57
open and talk about this here.
1:59
So, what we’ve got here is just
2:01
a blank sheet of paper. I’m
2:02
going to recommend you put this
2:02
on a dry erase board. A big in
2:04
the shop. I’m going to kind of
2:06
go free hand here. Uh but what
2:08
we’re looking at and this is
2:08
how you should be looking at
2:10
your jobs too. And if you don’t
2:11
have budgeted time, you really
2:12
need it because this is what
2:14
what’s going to happen if if
2:15
you don’t. So, I have got job A
2:19
right here. And I have got job
2:24
B. Over here And what we’ve got
2:28
going here is I’m going to bump
2:29
this up here a little bit so
2:31
everybody can kind of see it.
2:32
Alright, so I’ve got Jab A.
2:33
I’ve got job B. Imagine we’re
2:36
cutting job A and and we’re
2:36
going to we’re going to put as
2:40
food over here as a another
2:44
option. So, what we should be
2:46
doing as we have job A, job B,
2:48
job C, all the way through the
2:50
day is we should be talking to
2:52
the crew leaders that when they
2:53
leave job A here, the budgeted
2:56
time for job B start. Makes
2:58
sense, right? On average, we
3:00
need over the 25 or 30 stops a
3:02
day. The average drive time
3:03
should be built in the budgeted
3:04
times of those jobs. You need
3:05
to recover that overhead. As
3:06
well as From the shop, to the
3:08
first job, and from the last
3:10
job, back to the shop. So,
3:11
let’s say on average, it’s it’s
3:13
three to 5 minutes drive time
3:15
for this cruise. So, we’re
3:16
going to say it’s a two-man
3:16
crew for this this service
3:18
business, lawn care, home
3:19
cleaning, whatever, whatever
3:20
that may be in my home or lawn
3:23
care company. This is how we
3:24
had it. So, we’re not going to
3:27
have any budgeted time here but
3:28
we’re going to say this is a
3:30
thirty-minute the hours. So 30
3:33
minutes of budgeted hours. So,
3:35
theoretically, this crew here
3:38
after they finish this job that
3:40
30 minutes starts. So, they’re
3:42
driving over to there. So, I’ve
3:43
got 30 minutes to drive there,
3:46
mow blown edge, and click out
3:48
of my mobile device and then
3:49
I’m going to go on to job C.
3:51
So, this is the issue that
3:53
happens when our employees make
3:55
the fast food stop at the gas
3:57
station stop but imagine this,
3:59
we’re going to be really
4:00
conservative here. This is
4:01
probably the best-case
4:03
scenario. We’ve got 5 minutes
4:04
here. So, from job A, they’re
4:06
driving five minutes to fast
4:08
food joint. We know the gas
4:11
station, the cigarette stop,
4:12
whatever they’re doing here,
4:13
probably going to be way more
4:14
than 5 minutes. Um but let’s
4:16
put that in as another 5
4:16
minutes here. And just take a
4:20
look at this. So you’ve got
4:21
your five minutes at the gas
4:23
station. You got five minutes
4:24
driving there. And I’m going to
4:26
say in the best case scenario
4:28
you got another 5 minutes. So,
4:30
real simple math here, if we’re
4:32
driving from job A, five
4:34
minutes to the fast food joint,
4:35
there are another 5 minutes
4:36
there, getting the frosty, and
4:37
another five minutes back to
4:39
job. B, that is with my math,
4:43
here is five times free. That’s
4:45
15 minutes for one person but
4:47
once again, we’ve got a two-man
4:49
crew there. So, we need to
4:51
multiply that by two. So, what
4:53
you kind of see here is
4:54
happened is we have created a
4:59
situation where by going five
5:01
minutes out of the way, another
5:03
five minutes at the gas station
5:04
or fast food, another 5 minutes
5:05
of job B. Technically, when we
5:07
leave job A, job B’s budgeted
5:09
time starts and I’ve got 30
5:11
minutes for job B and I’ve
5:13
already wasted 15 minutes times
5:15
two guys. So, I’ve eaten my 15
5:18
minutes times two. So, when I
5:19
get to job B, I’m already over
5:22
budget. So, if we’re paying
5:24
them pay for performance,
5:25
they’re getting paid for the
5:26
budgeted hours. So, if they do
5:27
this two to three times a day,
5:31
that’s going to affect their
5:31
pain in a negative way. Now,
5:33
you, the business owner, this
5:35
is, this is pretty detrimental
5:37
as well. So, let’s say right
5:38
now with gas prices and
5:39
inflation, it’s costing you
5:43
let’s say 38 to $40 per man
5:44
hour break even before we make
5:46
a profit. So, let’s round that
5:47
around in the middle of
5:48
thirty-nine dollars point 5.
5:52
So, what that has cost you in
5:55
expenses, not projected revenue
5:58
but just in expenses is you
6:00
have lost now an additional $19
6:04
and 50 cents. So, if this was
6:08
say a $40 cut, what you’ve done
6:12
is you’ve added additional
6:12
expense here. So, we won’t even
6:13
play with the forty but really
6:15
what this fast food joint stop
6:17
has caused you is is $19 and 50
6:20
cents. So, let’s say that these
6:23
guys do this two or three times
6:24
a day. You’re you’re looking at
6:26
40 to $60 of extra expense a
6:30
day and that’s not uncommon
6:32
that we’re seeing. So, let’s
6:33
just round it up to twenty
6:34
bucks. You’ve got 40 bucks a
6:36
day an additional expense,
6:38
times five days a week, times,
6:41
let’s just say a thirty-week
6:42
season. Actually, we’ll do it
6:44
thirty-six because even in the
6:46
northeast with fall cleanup,
6:46
spring cleanup, that’s about
6:48
what you’re running at. Believe
6:50
it or not, if they do that
6:52
three times a day over your
6:55
thirty-six-week season, they
6:56
have incorporated an extra
6:58
$7two hundred dollars of
7:00
expense Um so, we’ve gotta be
7:03
able to take a look at that and
7:05
have some accountability and
7:07
transparency. We’ll talk about
7:08
some KPIs, Jake Roberts
7:10
actually is in the Masterminds
7:12
Group at Simple Growth. We’re
7:13
going to be diving into KPIs
7:14
and how to make sure all of
7:15
this stuff is being accounted
7:17
for and how to track it on a
7:18
daily, weekly basis, and how to
7:20
actually talk to your crews to
7:20
do that so this is really
7:25
really important here, and what
7:26
I’m going to do is go into a
7:28
test account here that I have,
7:30
and I’m going to go in and pull
7:31
up a account, for Maps Pro, so
7:36
Google Maps. It doesn’t matter
7:37
what software you’re using
7:38
here, but I’m going to go in
7:39
and just pull up this test
7:40
account. So the second part of
7:42
this is, if they’re being
7:44
efficient, but you don’t have
7:45
standard standardized operating
7:48
procedures, you’re also hurting
7:49
yourself. So, a lot of the
7:51
companies that we’ve seen,
7:52
including myself in the early
7:53
days, they don’t have a a
7:56
standard way of handling how
7:59
they tackle where to park,
8:01
where to stop, where to do
8:02
these jobs. So, if you’re
8:04
looking at this house here in a
8:06
residential situation, let’s
8:07
not, let’s not accommodate
8:09
stick edging. There is a way to
8:10
do this but I’m just going to
8:11
sit a very simplistic way. If
8:13
you’re pulling up to this
8:14
house, where are you parking?
8:14
Are you parking over here with
8:15
these two cars are at? Are you
8:16
parking over here? So, before
8:19
you answer that, in my opinion,
8:22
you want to ask, which way is
8:23
the weed wacker carrying the
8:25
weed wacker? Is it off to the
8:26
right or is it off to the left?
8:27
In whatever way the head of the
8:30
weed wacker is on, the left or
8:30
the right where I’m parking.
8:33
So, if the guy’s holding it
8:34
like this and the weed wacker
8:35
heads right here, I’m parking
8:37
down here and what the reason
8:39
we’re doing is we’re
8:40
streamlining and creating
8:42
standardization. So, this will
8:43
save four to 6 minutes alone
8:45
every time consistently and
8:47
create better quality but what
8:48
we would do is he hops off the
8:50
trailer and he’s coming down
8:51
here and going around the
8:55
sidewalk on a 90 up the
8:56
driveway around the house and
8:58
the landscape badge here. Down
9:01
around the sidewalk, back over
9:03
here, and then right here and
9:05
when he’s here, the Carlos and
9:08
the team who trained these guys
9:09
said, don’t break the snake.
9:10
It’s a streamline thing. So, if
9:11
there’s even something right
9:13
next to it, you don’t weed
9:14
whack around it but if there’s
9:15
something in the front yard,
9:15
you grab it and we’re walking
9:17
around the house going down the
9:19
fence line. Maybe you’re
9:19
grabbing a shed. If there’s a
9:21
tree, we grab it and then we’re
9:23
walking all the way down back
9:24
to this truck and trailer. Now,
9:26
we’ve streamlined the process.
9:28
Ideally, this guy should be
9:29
done before the guy mowing. If
9:30
it’s two-man crew. He’s picking
9:33
up the blower very same
9:33
fashion. Blowing everything off
9:35
here. If the guy’s in the
9:38
backyard, he’s going to tackle
9:39
the rest of this year and then,
9:41
he’s going to go around the
9:42
house but hopefully, he’s going
9:43
up and back around the house.
9:46
And blowing that off. All in
9:47
one streamline fashion and if
9:49
we go in and use that same
9:50
system of going up and down and
9:54
around the house, blowing off
9:56
the mulch, coming back in here
9:58
and then going out round, load
10:01
off any swing sets or anything.
10:03
He’s back at the trailer or
10:05
truck with trailer and lifts
10:06
the gate for the guy there. But
10:08
the positive thing is now,
10:10
everything’s blown off in a
10:11
systematic fashion. Now, the
10:12
mower, in my opinion, should be
10:13
mowing the side yard up to the
10:14
back of the house, the whole
10:16
front and the side
10:20
before he goes into the backs,
10:22
everything’s done. He’s facing
10:23
an obviously away from the beds
10:24
in the house and then, most dry
10:27
or mowers are going to be
10:28
discharging from the right. So,
10:31
he’s going to go starting here
10:32
and coming back. Now,
10:33
obviously, we need to change
10:34
the directions but as he’s done
10:35
now, he’s coming back out
10:36
landing right at the truck and
10:38
trailer. So, you want to create
10:39
a standardized system or
10:39
procedure and then, the guy in
10:41
the mower is probably running
10:43
the crew can see way before a
10:46
guy misses something where he’s
10:46
going to miss it because he’s
10:47
doing it the same way. Now, if
10:48
this is a bigger House and the
10:52
guy weed whacking’s done and
10:53
he’s going to jump on another
10:54
sixty. He knows where the guy
10:56
is always starting and stopping
10:57
so he can start in an area and
10:59
work systematically towards
11:00
him. But creating a
11:01
standardized procedure like
11:02
this to where to park based on
11:04
the way the guys weed whacking
11:05
and basically a systematized
11:09
streamline way around the house
11:09
for weed whacking and blowing
11:11
and where they’re going to be
11:12
mowing first and mowing last
11:13
can save big big time and money
11:16
and create a better quality
11:17
product. So we tackled drive
11:18
time, how to talk about it, how
11:19
to those gas station or frosty
11:22
stops at Wendy’s and where we
11:24
park in the truck for
11:25
systemized predictability and
11:27
that’s going to improve the
11:28
quality and the ability for the
11:29
guy managing that crew to
11:31
double check that standard
11:32
process. So, questions or
11:34
comments, drop them below.
11:35
Callahans Corner. You ask the
11:36
questions. We answer them live
11:39
right here on Facebook

How to Create Room for Advancement No Matter Your Business Size

Video Transcript

Transcript:
0:00
mike allen here want to make a quick
0:02
video took a quick run this uh afternoon
0:03
and we think about a conversation we had
0:05
with a couple of our lawn care uh
0:07
business friends and clients about um
0:10
the size of the business didn’t allow
0:12
for them to actually create room for
0:14
advancement when they were hiring and
0:16
when they actually onboarded and hired
0:18
employees
0:19
employees were looking for more of a
0:20
career they’d done one hell of a job
0:22
going in and finding a players that
0:24
wanted a career not just a seasonal job
0:27
but the issue that they’re facing is a
0:29
lot of these a players are investing a
0:31
lot of time a lot of money going out
0:32
recruiting and onboarding them
0:35
and got lucky enough to actually get
0:36
them on the team but once they got on
0:38
the team they realized there really was
0:39
no room for advancement which actually
0:41
wasn’t the case so what i’m going to
0:43
suggest right off the bat in your hiring
0:45
process no matter the size of your
0:46
business you can have room for
0:48
advancements i’m going to take the very
0:50
basic example of a lawn mowing crew
0:52
technician and crew leader imagine we
0:54
have a two-person crew doesn’t really
0:55
matter the size but i want to use on how
0:58
we can lay this into play so if we’re
1:00
hiring for a lawn care technician
1:03
we may have some clear defined levels of
1:05
the technician a technician in training
1:08
a
1:09
regular technician and then an advanced
1:11
technician so you’ve actually got three
1:13
different levels of a technician
1:14
technically they’re doing the same job
1:17
but as their pay goes up and their skill
1:19
level goes up we can actually have
1:21
basically micro levels of that same
1:24
position so now we can go in and
1:25
actually show three levels of
1:27
progression in a technician with
1:29
different skill sets and then that
1:30
advanced technician is actually starting
1:32
to take some responsibility in training
1:34
to become a crew leader what we did at
1:36
my company callahan’s lawn care is we
1:38
had a crew leader a head crew leader and
1:41
then above that we basically had an
1:43
advanced crew leader that basically was
1:44
trained to either become a manager for
1:46
quality control and training or actually
1:48
become an estimator so my suggestion
1:50
today no matter the size of your
1:51
business especially in today’s labor
1:53
market we need to go out and create
1:55
different levels of advancement within
1:57
the same position so even if you’re only
1:59
having two or three employees in your
2:00
team the technician example is a great
2:03
example technician training
2:04
regular technician advanced technician
2:07
and we’re not just going to in in
2:09
drive them into each position based on
2:12
seniority or tenure how long they’re
2:14
with the company we need clearly defined
2:16
um skill set and things they need to be
2:19
able to achieve to get to each level and
2:21
i’m also going to recommend especially
2:22
with the labor market right now
2:24
certification it doesn’t have to be
2:26
something really crazy but certification
2:28
that they have actually passed
2:31
either a physical or written test or
2:32
both based on each level now what this
2:35
is going to do is help you standardize
2:36
your operating procedures your sops for
2:38
onboarding and training and quality
2:41
control once we can go in and create two
2:43
to three sub micro um
2:46
levels of each position now when we go
2:48
out to recruit and actually retain those
2:51
employees we have room for advancement
2:53
and obviously we want our employees to
2:54
continue to advance and within the
2:56
organization eventually if you’re doing
2:58
a job right they’re probably going to
2:59
advance past your organization somewhere
3:00
depending on the size of it
3:02
but wouldn’t it be nice instead of
3:03
keeping on to a crew leader or
3:06
technician for half or full season two
3:08
to three seasons um and that learning
3:10
curve and then the ability to advance
3:11
through those so those need to be
3:12
clearly defined with no motion based on
3:14
kpis key performance indicators and i’m
3:17
suggesting a physical um if it’s in the
3:19
field with possibly a written test and
3:21
certification so not just everybody can
3:23
go from
3:25
technician to training to technician to
3:27
advanced technician it’s the people that
3:29
are putting in the the time and the work
3:30
and understand those levels um and this
3:32
is going to require you to
3:34
frame out some onboarding and really
3:35
create a standardized process but in
3:37
today’s labor market that’s going to be
3:38
the key to success no matter the size of
3:40
your business micro positions within the
3:42
position
3:43
crew leader
3:45
um head crew leader
3:47
and then advanced crew leader going into
3:49
training for management herself but
3:50
would it be really cool to have a
3:52
technician that’s been trained through
3:53
three different levels that understands
3:55
everything behind time become a crew
3:57
leader and if you imagine a crew leader
3:58
now getting to the top of their level
4:00
ready to get out of the truck and
4:02
understanding what it takes to be a
4:04
technician a certified advanced crew
4:06
leader and a head crew leader and then
4:08
eventually having them going into
4:10
marketing
4:11
sales
4:12
so you understand they understand all
4:13
the pain points and the things that need
4:15
to be done or going into quality coral
4:17
katrina because they’ve actually done it
4:18
and lived it um but when we do advance
4:20
in the training i also recommend that
4:21
the training is also going to have micro
4:23
levels in it because not everybody who
4:26
can do the job correctly can be a good
4:28
trainer so that’s a certain skill set we
4:30
need to look for and set some
4:31
expectations um and you kind of use the
4:33
analogy too so um don’t just throw
4:35
somebody out there to watch somebody
4:37
model it for two weeks so it’s kind of
4:38
like uh if you’ve got a kid going out to
4:40
learn how to drive i mean
4:42
the equivalent of having them sit in the
4:44
passengers and watch you watch you drive
4:45
for two weeks and then saying okay cool
4:47
take the wheel you’re ready to go take
4:48
your driver’s test that’s not going to
4:50
happen you’re going to set them up for
4:51
failures you’ve invested so much time
4:53
and money on the onboarding and
4:55
screening and interviewing make sure
4:57
that the onboarding and training is
4:58
specific and relevant and very clean cut
5:02
first impressions the only impression
5:03
but if you take the the idea of that
5:04
base technician we’re not just going to
5:06
say here’s how to start the weed whacker
5:08
go out and use it we’ve got different
5:10
levels of training so weed whacking
5:12
blowing mowing
5:13
possibly driving the truck truck and
5:15
trailer backing it up certain things we
5:17
need to be able to check the checkboxes
5:19
to go to the next level doesn’t long
5:20
doesn’t matter how long you’ve been with
5:21
the with the business
5:23
so we have somebody who hasn’t met those
5:24
criteria they just they don’t get it and
5:26
the cool thing is not everybody has to
5:27
pass these different levels of micro
5:29
commitments from
5:30
uh
5:31
crew leader in training to crew leader
5:33
to advanced crew leader um or technician
5:35
so it’s good if some people don’t hit
5:37
that because they understand it has to
5:39
be done so micro levels in there if
5:42
you’re starting out in lawn care home
5:43
cleaning i’m going to recommend
5:44
technician is going to be technician to
5:46
training regular technician advanced
5:47
technician and then your crew leader is
5:49
going to be your crew leader head crew
5:51
leader and advanced crew leader that
5:53
crew leader is now training for that
5:54
next position and you need to set some
5:56
expectations of the timeline that they
5:58
may be in these positions they are not
6:00
set in stone but it could be from six to
6:02
12 months two to three months
6:04
but that’s just a benchmark we need to
6:06
be transparent about that up front
6:07
because the worst thing you could do is
6:08
say hey you’re going to join us and as
6:10
soon as possible we’re going to blast
6:11
you off to this next position because it
6:14
may not happen a they may not have set
6:15
the qualifications to advance through
6:17
the micro positions and b uh we may just
6:20
not have a spot from yet in the in the
6:21
company so we need to set that up front
6:23
so comments or questions drop below want
6:24
to say what’s up to aaron um hopefully
6:27
you’ve got some micro positions in your
6:28
business and creating room for growth uh
6:30
for those people to scale without a
6:32
glass ceiling within the position and
6:34
then a clear path to the next position
6:36
callahan’s corner you asked questions we
6:37
had some live right here on facebook

Callahan’s Corner: What Type of Marketing Works Best (Direct Mail or EDDM)

Video Transcript

0:02 Callahan’s Corner where you ask
0:04
the questions. We answer them
0:05
live right here on Facebook.
0:07
So, one of the many Facebook
0:08
groups we are involved in with
0:11
Callahan’s Corner s, there was
0:11
a question asked this morning,
0:15
what works better? Direct mail
0:16
or Every Door Direct Mailing
0:19
EDDM. Well, really the question
0:22
is right off the bat is, is
0:24
this individual or if you’re
0:25
looking at exploring different
0:27
marketing options for Everydoor
0:28
Direct, mailing, mail Facebook
0:30
ads, Google Ads, whatever that
0:32
is, are you actually tracking
0:34
the data? So, we did, in our
0:38
run, usually in the spring, we
0:39
run 75 to maybe $85, 000 at the
0:42
peak of the advertising season
0:44
in a month in Upstate New York
0:46
for the lawn care company I own
0:48
and that definitely worked but
0:50
the thing that I will tell you
0:51
is is working with hundreds of
0:53
businesses all over the US and
0:54
Canada, even Australia, and the
0:55
UK now. Um each market is the
0:58
same but it’s going to be a
0:58
little bit different based on
1:01
how they digest and what target
1:02
market actually demographic
1:04
you’re going after. So, really
1:06
I think it would be foolish to
1:06
answer the question directly
1:08
what worked better in my market
1:09
and actually show you how to
1:10
track your own data for
1:13
non-emotional systematic way
1:14
and I can show you how to
1:15
actually create a high-level
1:16
marketing plan to go along with
1:17
this. Once we got some good
1:18
data. So, what I’m going to do
1:19
here is open up the screen and
1:22
open up service autopilot. So,
1:24
this is one of the CRMs that we
1:26
use, customer relationship
1:27
management software is here. Um
1:28
so, if you using service
1:30
autopilot and the gentleman
1:31
that actually asked this
1:32
question, I know, is using
1:33
service autopilot. I’m going to
1:34
open it up and show you how to
1:36
actually use service autopilot
1:37
to track this stuff. Literally,
1:38
automatically, once you set it
1:40
up, it takes about five minutes
1:41
to set up. I’m going to show
1:43
you actually how to do it. So,
1:45
first thing you want to do is
1:46
go to our gear icon. and we’re
1:50
going to go into
1:54
client source right here and
1:55
client source is going to be
1:56
lead source tracking. So,
1:58
whether you’re doing Everydoor
1:59
Direct Mail ing, direct
2:00
mailing, or any other type of
2:03
advertising, literally, word of
2:04
mouth, they saw your truck,
2:05
whatever that is, that will be
2:07
able what we’re, we’re looking
2:09
at here. So, as you can see in
2:11
my old account here, we had our
2:13
20 twenty Every Door Direct
2:15
Mail ing with the long copy,
2:15
and one with the picture of a
2:18
family. So, you may be testing
2:19
different copies of this
2:20
marketing copy as well, because
2:22
Avidor Direct Mail ing may work
2:24
great on one piece but not as
2:26
good on in others. So, this is
2:27
how we go in a non-emotionally
2:28
set this up. So, if we go in
2:31
and let’s add a new source
2:33
right from the beginning, I’m
2:34
going to put this as our Every
2:35
Door Direct Mail ing test. 2022
2:41
and we can go in and put some
2:42
details in here. Now, the first
2:44
thing we need to do is set
2:45
these up. The second thing now
2:46
is when we do that Every Door
2:48
Direct Mail ing, we need to
2:49
actually go in and add a
2:50
campaign. So, if we
2:54
let’s say in March and it ran
2:56
all the way through the end of
2:58
April, we could put that date
3:00
in there. So, anytime a lead
3:02
comes into the system in that
3:03
date for that particular client
3:05
or lead source, it’s accredited
3:07
to that. Now, let’s say we’ve
3:09
did a ten thousand distribution
3:12
and it ran us to $8000 dollars.
3:15
So, we put the 10, 000 in here.
3:18
And our eight-thousand-dollar,
3:20
oh,
3:23
$10, 000 distribution and our
3:27
8, 000 dollars to actually have
3:30
the expense. Now, if you’re
3:31
actually marketing your current
3:32
database, we can actually hit
3:33
upsell and it would track the
3:34
upsell conversion ratio. So,
3:35
what this is going to give you
3:37
is how many leads came from
3:38
each marketing source? how many
3:42
converted into a client, the
3:43
closing percentage for your
3:45
actual estimator, and the
3:48
client acquisition cost. So,
3:49
what it costs you acquire for
3:50
each and every client that you
3:52
get and then, in addition we
3:53
could have a client lifetime
3:55
value. Uh if you are going to
3:57
this extent, I’m also going to
3:59
recommend that you go in and
4:01
track your cancellation and one
4:03
and loss reasons. So, if we go
4:05
into the gear icon, and go into
4:10
cancellation reasons and
4:11
estimate reasons. So, we have
4:12
estimate reasons and we’re
4:13
going to go in and put the
4:15
reason why we won and lost the
4:17
estimate and then, we’re
4:19
going to go back in. And
4:22
cancel, track our cancellation
4:25
reason. So, what we’ve done is
4:25
track our acquisition, cost,
4:27
and percentage of closing and
4:29
client lifetime value per lead
4:31
source and then, we can also
4:31
track our cancellation. So,
4:34
dissatisfied, whatever those
4:35
may be, we just go in and add a
4:37
cancellation reason and it’s
4:38
based on gleed or client. So,
4:39
once we have that information,
4:41
all the data now flows
4:42
automatically So, if you’re
4:44
using service autopilot, the
4:46
other thing that you may
4:47
want to look at here is your
4:50
website lead capture form. Now,
4:51
there’s two different versions
4:52
of it. There’s a V 2, there’s a
4:54
Vthree, for simplicity,
4:55
whatever I’m in here. I think
4:57
we’re in probably Vtwo. I’ll
4:59
show you but it’s going to be
4:59
the same exact thing whether
5:00
the V2 or V3 version but what
5:03
you want to do is go in and
5:04
when you create a form, we
5:07
want to be able to have it
5:08
automatically submit, do some
5:10
duplicate checking but the
5:11
thing that we’re looking at for
5:13
this video is how do we track
5:14
that lead acquisition off the
5:18
website. So, what we want to do
5:19
is autoproof, create on,
5:21
submit, and we’re going to
5:23
update and probably create and
5:25
update a lead source on submit
5:30
So, we’d actually go in and
5:32
have one in here for our
5:35
website. In that way, we would
5:36
have the ability to track the
5:37
lead sourcing coming off your
5:39
website or if you have separate
5:40
forms embedded into a Facebook
5:43
ad or a landing page, you
5:44
probably want separate lead
5:45
source tracking to track those
5:47
campaigns with the pricing
5:48
behind it. So, that’s how we
5:48
would be able to tackle that.
5:50
So, the final part is here,
5:52
when we go in to the My Day
5:54
screen, your office is working
5:56
this. We want to go into the
5:57
green plus icon, add a lead and
5:59
this is the important here. So,
6:01
we’re going to put in our first
6:04
name last name, the service
6:08
address,
6:12
As we’re talking to him, we’re
6:13
going to put in the postal code
6:15
and we’re going to update the
6:16
city. We’re going to get the
6:17
Email in here.
6:24
and we want to put the phone
6:25
number in the cellphone field.
6:27
Once we get the basic
6:28
information, we, this, the main
6:30
part around this question is we
6:31
want to go into details, select
6:33
the account type, and most
6:35
importantly, the sales type,
6:36
how did you hear about us? And
6:38
that’s where we can go in and
6:39
say they selected the Every
6:40
Direct Direct Mail ing with the
6:43
picture. Now, if they were
6:44
referred by someone in your
6:47
list here and you actually went
6:47
in, and had a customer referral
6:52
in here, you can go in and if
6:56
this wasn’t a test account, a
6:57
list of all our leads and
6:57
clients would show and you
6:59
would select the appropriate
7:00
person. So, not only do you
7:01
know the effectiveness of your
7:03
mail, your marketing copy but
7:05
your customer referral,
7:06
conversion ratio, and client
7:08
lead acquisition. If there’s
7:09
any gift cards or things you
7:12
send out for referrals. So,
7:13
comments, questions, drop
7:14
below. Callahan’s Corner. You
7:15
ask the questions. We answer em
7:16
live right here on Facebook.
7:17
What marketing source is
7:19
better? Direct mail, every
7:20
door, direct mailing. That’s
7:21
going to depend on your market
7:24
but a pro tip here is if you
7:25
are doing Every Door Direct
7:27
Mail ing, we want to do it not
7:29
just once. We want to do three
7:30
to five times. That’s going to
7:31
give us the best result and
7:33
then, in addition to that, one
7:35
thing that we did in my lawn
7:37
care companies, we drove around
7:39
literally with a notepad, a
7:42
notepad, something like this
7:44
and we wrote down the addresses
7:45
of all the homes that looked
7:47
like they were commercially
7:49
mowed and we went in through
7:50
the winter months when we’re
7:51
slow and went in through
7:52
satellite imagery and measure
7:54
all those and did direct
7:56
mailing to all those properties
7:58
with property specific pricing
7:59
and in the Email or on the
8:02
envelope, the address would be
8:03
lawn mowing customer. So, we
8:05
knew they were getting their
8:06
lawn mowed most likely and we
8:06
sent them a direct contract to
8:10
sign up with us. With property
8:12
specific pricing. So, that was
8:14
a huge way that we dominated
8:14
our market and grew market
8:16
share specifically in the
8:18
neighborhoods that we’re
8:18
already in and the
8:19
neighborhoods in between the
8:20
neighborhoods that we weren’t
8:21
servicing to build route
8:22
density. So, once again, you
8:23
want to the lead source on that
8:26
as well so you know the
8:27
conversion ratio and the cost
8:28
per acquired client. So it
8:30
actually cost a little bit more
8:30
to do the direct mailing with
8:32
property specific pricing. But
8:34
on average our client
8:36
acquisition cost because it was
8:37
so effective was actually
8:39
lowered. So the upfront cost
8:41
was a lot more but when you
8:42
average it over all the clients
8:43
we gained. Um that was a great
8:45
way of doing that. So it’s kind
8:46
of a pro tip. Callahan’s
8:48
Corner. You ask a question to
8:49
answer live right

Tracking what Matters in your Business

Video Transcript

0:00 hey mike kelly here had a quick question
0:02
submitted to callahan’s corner about
0:04
what they should be tracking in their
0:06
service business particularly a lawn
0:07
care business they said mike what should
0:09
we be tracking on a daily and weekly
0:12
basis to outline success so i kind of
0:14
want to start it out right now with the
0:16
crazy inflation in gas prices and labor
0:18
at an all-time high as far as wages uh
0:21
there are some things we need to
0:23
actually track for success um but a
0:26
pre-note to that really is let’s go in
0:28
and focus on the things that we can
0:30
control now there’s going to be some
0:31
things we want to track
0:33
but what are we tracking right now on a
0:35
daily and weekly basis that we can
0:37
actually control we can’t control gas
0:39
prices we can’t control the inflation
0:42
but what we can
0:43
control and track are certain key
0:45
metrics in the business so we’re going
0:47
to talk about gas prices and how we
0:49
should look at that in a few minutes but
0:51
the main things that i want to be
0:52
looking at in my service business
0:53
particularly a lawn care or a home
0:55
cleaning company is going to look in
0:58
at the biggest hitter right off the bat
1:00
which is labor that’s going to count for
1:01
about 60 percent of your expenses in
1:03
your service business so what i’m going
1:05
to recommend if you have not we need to
1:07
build an estimating system um based on
1:10
how long you think it’s going to take or
1:12
production rate based estimating system
1:13
but the key variable that we need from
1:15
your estimates when we go to schedule a
1:17
job is how long will it take
1:20
or should it take for that job to be
1:22
done now the crews need to see a
1:24
budgeted time so we need to track budget
1:26
versus actual the way that i would train
1:28
this in the lawn care company uh with
1:31
really good success especially when i
1:32
was on the trucks training the guys and
1:34
then when we trained our trainers they
1:36
would do it this way but let’s say we
1:37
have a
1:39
full day of mowing today
1:41
and we want more training those guys and
1:42
girls on the crew what we’re going to do
1:44
is take a large overview so you’ve had
1:47
the budgeted time for the whole entire
1:48
day so let’s say we’re working for 10
1:50
hour days so we’re going to have 10
1:52
hours budgeted time
1:54
for the day so minus lunch 7-5 we’ve got
1:57
a 10-hour day so the goal is we need to
1:59
have all 30 or 33 lawns cut
2:02
in 10 hours now that is going to seem
2:04
extremely overwhelming for even a
2:06
veteran person on that crew no matter
2:08
the route density that we’d run 30 to 33
2:10
lawns a day in our residential cruise
2:13
we did that through route density so
2:14
we’d say hey we’ve got 10 hours to get
2:16
this done we need to be back at the shop
2:17
at 10.
2:18
let’s ignore the launch just for easy
2:20
math but between seven we leave at seven
2:22
we get there five we need it back to the
2:24
shop by by five o’clock
2:27
what i did is i broke down the schedule
2:29
itself into quarters um and then i broke
2:32
it down into hours the first thing we’re
2:34
doing is we’re gonna set some short-term
2:35
goals so if on average we need to cut
2:38
three lawns or three and a half lawns an
2:40
hour to hit that goal uh we labeled that
2:43
out and basically i would sometimes when
2:45
they first started print the schedules
2:46
out so i could physically show them we’d
2:48
use the mobiles from the clock in and
2:49
out but i can physically show them that
2:51
these are the three lawns
2:53
at this point at 9 a.m we should be at
2:55
and at 10 p.m we should be or 10 a.m we
2:56
should be here at 11 am we should be
2:58
here and at noon before we go to lunch
3:00
we should be here but we’re giving them
3:02
short-term executable goals now keep in
3:04
mind in most areas of the country these
3:06
the mowing early in the morning the
3:08
lawns are going to be wet with dew um
3:10
it’s going to take a little bit longer
3:11
so we’re going to account for the
3:13
slowness in the morning based on the
3:15
conditions and the speed that should be
3:17
picked up
3:18
on there but we’re going to set short
3:19
and long term goals so 10 hours for the
3:21
day
3:22
how many lawns per hour at 9 10 11 noon
3:25
and so on
3:26
and then break it up in quarters where
3:28
we should be at the parts of the day
3:29
that actually helped a lot
3:31
and as you’re training your quality
3:32
standard they’re going to get into a
3:34
pace and be able to visually see where
3:35
they’re at so as a business owner that’s
3:38
how we actually start to institute that
3:39
into the cruise with quality but at the
3:42
end of each day we need to make sure
3:44
there’s good start and stop times for
3:45
every job and a budget first actually
3:47
it’s on the shop wall the next day for
3:49
accountability publicly and personally
3:50
for those crew members with a quality
3:52
standard so the first one is budget
3:54
first actuals for the crews
3:56
next one is we should be looking at on a
3:59
weekly basis
4:01
our new clients canceled clients
4:05
and our net new clients in addition
4:07
depending on the services that you are
4:09
providing we also probably want to look
4:12
at our monthly reoccurring revenue so
4:14
how much reoccurring revenue for lawn
4:16
mowing and fertilizing have we budgeted
4:18
for and what’s the budget versus actual
4:20
we also want to track the one-time sale
4:22
so if you’re in design build or soft
4:24
skates and you’re doing maybe some
4:25
maintenance and design build want to
4:27
break those out separately so we have a
4:29
idea of what the recurring revenue is in
4:31
the one-time revenue and the final thing
4:33
that you’d be probably looking at here
4:35
especially if you have a sales team is
4:36
the opportunities that will close in the
4:38
month in your sales pipeline
4:41
and
4:42
projected next month out
4:44
or maybe quarter based on hardscapes but
4:47
those are some key variables you want to
4:48
look at but don’t get hung up in my
4:50
opinion we’ve been through this in 2008
4:52
uh with the recession we had and wicked
4:54
gas prices in my company and in the
4:56
beginning we started to get focused on
4:57
the things that we couldn’t control like
4:59
gas prices
5:00
um and that’s not where you want to play
5:02
and it’s only going to be two to three
5:03
percent of your budget
5:04
and we can also do a surcharge for gas
5:08
and systematically go out now i’m going
5:10
to recommend we’re coming up around july
5:12
4th weekend uh we would run a job
5:15
costing report so if our goal is 65
5:17
dollars per man hour anybody below 65
5:20
unless it was a commercial contract
5:21
locked up we would actually do price
5:23
increases on the customers not hitting
5:26
that threshold but let’s say your goal
5:28
is at 65 dollars per man hour and fuel
5:30
continues to go the way it’s going and
5:32
it probably will continue that way maybe
5:34
you need to be at 67 or 68 per ml now we
5:36
can systematically raise the prices on
5:38
the clients that are not hitting that
5:40
new financial break-even threshold so um
5:43
a lot of content right there but these
5:45
are the things that are kind of top of
5:46
mind with that question submitted
5:48
comments questions drop below callahan’s
5:50
corner you ask the questions we answer
5:52
them live for right here on facebook

Employee Theft… How would You Handle it?

Video Transcript

0:01
hey mike kelly here i want to make a
0:02
quick video had a
0:03
question submitted earlier this week
0:04
regarding employee theft just on the
0:06
road here about to uh hop on the plane
0:08
but thought it was important to tackle
0:10
this one head-on this morning so issue
0:12
was that gentlemen had someone steal a
0:14
piece of equipment and want to know if
0:16
you should just press charges fire the
0:17
gentleman or
0:19
what else should he do so i’m going to
0:20
reflect back on my years of 25 plus
0:22
years of my lawn care company and how we
0:25
handled threat and what the biggest
0:26
thing that popped into my mind was when
0:29
a gentleman a few years ago actually
0:31
stole uh gasoline from us well below the
0:34
gas prices that we’re seeing now
0:36
but this approach to how we handle the
0:38
prolly that may actually surprise some
0:39
people so
0:41
at that point our shop was about a half
0:42
a mile down the road from the gas
0:44
station we’d have four or five gentlemen
0:45
come in and gas up 18 to 20 trucks every
0:48
morning load them up and then um the
0:50
crews would arrive between 7 and 7 30
0:52
and they’d be staged out to go out so i
0:54
got a call around 8 8 30 in the morning
0:56
from the gas station obviously spending
0:58
a significant amount of money there
1:00
they alerted us that one of the
1:01
employees pulled up in their personal
1:03
vehicle
1:05
and actually grabbed the
1:06
gas handle and filled up their personal
1:09
vehicle
1:10
while
1:11
some of the crews were filling the
1:13
trucks
1:14
while the crew leader actually was
1:15
inside the gas station
1:17
going in to pay for one of the other
1:18
pumps so the other employees saw but
1:20
didn’t necessarily facilitate it but
1:23
what’s going to probably shock you is
1:24
the amount of gas this gentleman
1:26
actually stole
1:27
if he’d actually asked me i probably
1:29
would have just told him to put in his
1:30
tank and not to worry about it but he
1:31
actually stole about three dollars and
1:33
say 75 cents worth of gas probably just
1:36
enough to get to the shop problem is
1:38
ethically we did not stand for theft in
1:40
the company it did not align to our core
1:43
values at all um so
1:45
literally went down to the gas station
1:47
got a picture and a video of the
1:49
gentleman stealing the gas
1:51
spent about two and a half to three
1:52
hours went down to the police station
1:54
press charges but
1:56
the way i tackled it was a little bit
1:58
different and we had been plagued with
2:00
theft as well already
2:02
our shop had been broken into twice some
2:04
of the trucks and the tablets ripped off
2:05
the dashboard so
2:07
this was literally the last straw for me
2:08
but i needed to make a stand that i was
2:10
not standing for
2:11
a couple dollars worth of gas or
2:13
thousands of dollars worth of equipment
2:14
being stolen so after getting to the
2:16
police station and pressing charges
2:18
the officers wanted to know if i knew
2:20
where the truck was well that this guy
2:22
was working i knew exactly where it was
2:23
but i said listen guys could you do me a
2:25
favor i know you’ve been down to the
2:26
shop a few times we’ve been broken into
2:28
really want to uh unfortunately make an
2:30
example this gentleman to let people
2:31
know where we stand on theft
2:33
so what they did is they arranged to
2:35
come down to the shop
2:37
at 7 00 a.m during our team meeting
2:40
unbeknownst to me they came in hot we
2:42
had the gate open because we had an
2:43
electric gate with a passcode but they
2:45
came in hot with about three cruisers
2:48
and pulled up to probably about 35 to 40
2:51
guys literally standing at a team
2:52
meeting uh while i was on top of one of
2:54
the trailers kind of addressing the team
2:56
and we literally as the officers pulled
2:59
up and got out of the car i went over
3:01
and basically talked to them thank them
3:03
for coming and we actually pulled out
3:06
um and asked the gentleman to actually
3:08
come out
3:09
and kind of present himself uh to the
3:11
officers and at that point they actually
3:13
arrested him put him in cuffs
3:15
and put him in back of the cop car and i
3:17
will tell you
3:18
by doing this we were able to really
3:21
address how we stood on theft and where
3:23
we were going as a company and aligning
3:25
to those values so yes we actually had a
3:27
gentleman arrested for a little under
3:29
four dollars worth of gas in front of
3:31
the whole entire company
3:34
but what they did is it created a story
3:36
and it created clarity so literally
3:38
after the gentleman got drove drove away
3:41
in the car i asked everybody there are
3:43
we clear of where we stand on theft and
3:44
they were like yes we are crystal clear
3:47
and it was interesting things in the
3:48
shop stopped going missing things like
3:51
um additional gas or weed whacker line
3:53
things like that started to actually use
3:55
less and i have a feeling we actually
3:56
had some more theft
3:58
or people taking things probably for
3:59
their own home that we didn’t realize
4:01
but the end of this was it was very
4:03
clear where we stood on theft
4:05
but the cool thing was it was a story
4:07
that got better and better year after
4:08
year and i remember by the third or
4:10
fourth year um the story got so
4:12
embellished but it was just one of those
4:14
things that it when these things happen
4:16
you’ve got to literally act in the

Best Practice for Pre-Estimate Nurture

Video Transcript

0:01 hey mike allen here want to make a quick
0:02
video i had a question submitted this
0:03
morning around
0:05
pre-estimate nurture or education so
0:07
where this really comes into play um is
0:10
what we used to do in the early days is
0:11
actually manually do this but the
0:13
question was specifically around
0:15
automations and how do we educate and
0:16
nurture around
0:18
pre-estimate education so the instance
0:22
or how this would actually happen is if
0:23
somebody hits your website they’ve
0:24
requested an estimate commercial or
0:27
residential or they’ve hit the office
0:29
and requested an estimate so the way we
0:32
would automate this and if you’re going
0:33
to do it manually this is how you would
0:34
do it is we want to segment the database
0:37
based on the service they’re interested
0:39
in so one of the biggest mistakes that
0:41
we found out in the early years was
0:43
having too many services to nurture upon
0:47
because we wanted to make it automated
0:48
but personal so the way i recommend
0:50
tackling this is having five or less
0:53
services
0:54
that are going to be automated for
0:56
estimate nurture and the reason being is
0:58
if you’re building this out in a
0:59
automated fashion
1:01
we want to rank the most important
1:03
service from one two three four five in
1:06
descending order because the logic of
1:08
your automation now is going to go in
1:10
through a true statement if this then
1:12
that basically and based on the
1:15
importance of the service so if you’re
1:17
doing landscape maintenance per se
1:19
um
1:20
your fertilization weed control i’d
1:22
imagine is probably going to be more
1:23
important than your lawn mowing because
1:25
that’s a higher margin and easier
1:27
services scale with one technician
1:28
versus two to three man crew so the idea
1:30
here is that we want to go in and off
1:32
that website lead capture uh at least in
1:35
the logic only nurture up to five
1:38
services and base them on the importance
1:40
level that we want to nurture on so it’s
1:42
for instance if you had 10 services on
1:44
there that automation potentially could
1:46
be blasting 10 different pre-estimate
1:48
educations out that you don’t want so
1:50
you want to avoid the spam and keep it
1:52
personalized but automated so in the
1:54
marketing content
1:55
of the actual pre-estimate education we
1:58
should be talking about what a
1:59
professional does on that service so if
2:02
we’re using lawn mowing an example
2:03
proper mowing height how to sharpen the
2:05
blades how to go out and alternate the
2:08
different cutting directions you get the
2:09
idea but we want to provide a higher
2:11
value to the service basing you as the
2:14
expert
2:15
what are they getting it’s just not a
2:16
college kid going out and blowing an
2:18
engine we’re going to get actual
2:19
professional service that’s predictable
2:22
in addition the secret sauce is going
2:23
out in your pre-estimated nurture
2:25
education is to overcome the price
2:27
objections or salaries objections you
2:28
always hear so do i need to be home to
2:30
have the lawn mower what happens if it
2:32
rains are you going to cut in the rain
2:34
all the different questions we get what
2:36
happens if a rock goes and damages a
2:38
window what are those things we’re going
2:39
to answer the questions that most
2:40
contractors do not want to answer up
2:42
front
2:43
to shorten the sales cycle build more
2:46
trust so they know like and trust you
2:47
and educate them that you are the
2:49
professional to create a higher
2:50
perceived value so you could be
2:52
charging the highest amount in your
2:54
market so once again we want at most
2:56
five services we nurture pre-estimated
2:58
education they hit the website they hit
3:00
the phone they get that pre-estimate
3:02
education after their lead letter which
3:05
is the five or six main reasons you’re
3:06
different and when you are going out to
3:09
pre-educate if they select say lawn
3:11
mowing and fertilizing we educate to the
3:14
most important service then we delay the
3:16
next um sequence of education going into
3:19
the next service so most are getting
3:21
five communications about the top five
3:23
services spread out so we’re not
3:25
spamming them the next key to this is
3:27
based on an automated estimate file such
3:29
as 20 days to close when they accept
3:31
that estimate
3:33
that nurture automatically ends and we
3:35
start having the conversation of welcome
3:37
and wow and acclimate them and get that
3:38
credit card on file and get them
3:39
scheduled so comments or questions drop
3:41
them below
3:42
high summary of it though no more than
3:44
five services do we ever want to nurture
3:47
and we want to rank them in order from
3:48
the most important service to the least
3:50
important service and as we go out and
3:52
up to five emails educating we want
3:55
those properly spaced out and as soon as
3:57
the estimate is one we automatically
4:00
stop that nurture and drive them into
4:01
the welcome and acclimation sequence
4:03
comments or questions drop below
4:05
callahan’s corner you ask the questions
4:06
we answer them live right here on
4:07
facebook
AllRelatedLiveRecently uploadedWatched

Is your business broken? Our audit will show you what you need to fix in YOUR business now.

Video Transcript

Hey, Mike Callahan here with
0:03
Simbler Growth. We’ve got our
0:05
seven business, seven-figure
0:07
business expert, Dylan here
0:07
with us from the Simple Growth
0:09
Team and Dylan and I were just
0:10
talking about all the things
0:11
that are going on in
0:12
businesses. It potentially
0:13
could be broken without the
0:15
business owner really knowing
0:16
it. Uh so, we decided to hop on
0:18
a quick Facebook Live here to
0:20
actually break down something
0:22
we’re going to be doing free of
0:23
charge for any service business
0:25
that’s willing to take 15 to
0:27
maybe 20 minutes with our
0:28
Simple Grow team to actually
0:29
show you the in your business
0:31
potentially are broken. Um and
0:33
Dylan, I know you’ve done this
0:34
audit over the last six to 12
0:36
months with probably hundreds
0:38
of of different service
0:39
businesses based in lawn care,
0:41
home cleaning, pest control,
0:42
pool services, you name it. Um
0:44
but right now there’s a lot of
0:46
uncertainty right now. A lot of
0:47
businesses are trying to
0:48
continue to grow to that
0:49
million mark and well beyond.
0:50
Uh but inflation, gas prices,
0:52
labor shortages. Where do I
0:54
need to work on my business
0:56
specifically right now to go
0:58
out and just crush my goals but
1:02
stay alive and continue the
1:02
same size I’m at. Um now,
1:04
obviously, most people watch
1:05
this want to continue to grow
1:06
their business successfully and
1:08
profitably but if you’re
1:09
looking at your service
1:10
business right now and you’re
1:11
like, I need to make sure my
1:13
business is okay to sustain
1:14
what’s going on in the
1:16
ecosystem right now. Uh we’ve
1:17
got good news. Dylan has the
1:18
ability for you to hop on the
1:20
team with one of our
1:22
seven-figure growth experts to
1:23
go through this free audit. So,
1:25
Dylan, I know we’ve got some
1:26
compressed time because you
1:26
actually have an audit here in
1:28
another 10 to 15 minutes. Um if
1:29
you don’t taking the wheel
1:32
brother and just kind of going
1:33
through what we we walked
1:34
through. We’re going to put in
1:35
some fictitious answers here so
1:36
people can actually see what
1:37
you get at the end of this but
1:39
like it’s a massive, actionable
1:41
information that would cost a
1:43
lot of money but we’re just
1:45
literally trying to help every
1:46
service business we can know
1:48
where they need to focus and
1:49
what pinpoints are going to
1:50
help them along the way. So, if
1:52
you don’t mind, brother, let’s
1:53
let’s walk through this and see
1:54
what it is and when we’re done,
1:56
if you’ve got a link, if you
1:57
want to slack it to me or after
1:59
this, we can post the sign up
2:01
link in the Facebook Live here
2:03
so people can sign up for this
2:04
free audit but I’ll let you let
2:05
you take over here. Cool, cool.
2:08
Yeah, it’s not every day that
2:09
you can kind of get like a a
2:12
scorecard almost on how your
2:14
business is doing, right? You
2:15
see your financial statements
2:16
at the end of the year and
2:17
you’re like, oh, I I think I
2:19
did pretty good but sometimes
2:21
the financial statements don’t
2:23
say everything as well. So,
2:24
this kind of secondary report
2:26
card just to make sure that
2:28
your business is healthy in all
2:29
aspects and that there’s not
2:29
really any glaring things that
2:33
you’re just missing can be
2:34
really beneficial. So, step 1
2:37
is, obviously, we’re going to
2:39
expect different things
2:41
depending on the size of your
2:42
business, right? If you’re just
2:43
starting out and you’re 50, 000
2:45
a year in annual sales,
2:48
going to be totally different
2:49
expectations on a company
2:50
that’s doing $3 million dollars
2:52
a year. And that’s the actual
2:54
process we go through here. So,
2:56
what if I’m a steady operation
2:57
between a half a million and a
2:58
mill? Alright, so we’ll mark
3:01
that down. And then we roll
3:03
into just a simple setup
3:05
analysis here. So Mike in your
3:08
company, are you using a CRM?
3:10
Uh well Dylan, what is a CRM?
3:12
Uh CRM is a customer
3:14
relationship management
3:16
program. Um that you would
3:17
house your customers in, you
3:19
know, kind of think service
3:22
autopilot, jobber, yardbook,
3:24
something like that. A little
3:24
bit different than QuickBooks
3:26
which is primarily just a
3:28
financial software. Okay, so
3:29
our Aspi and other softwares
3:32
like that would probably
3:32
qualify as that as well. Yeah,
3:33
I’m I’m definitely using a CRM.
3:35
Okay. And I do have a a website
3:38
and a Facebook page. Okay,
3:41
perfect. Um. And are your
3:44
services priced based off a
3:46
square feet or are you just
3:47
kind of eyeballing it? Oh,
3:48
let’s play. I’ll play doubles
3:50
advocates. Um let’s say it’s
3:52
the early years and I’m just
3:53
eyeballing it. Okay. So, I’ll
3:57
mark that as no. And when
3:58
you’re doing these quotes,
4:00
Mike, are you jotting them down
4:01
on a notepad? Are you entering
4:02
them in directly into your CRM?
4:05
How are you capturing that
4:06
information? I’m going to
4:06
answer this fictitiously just
4:08
to kind of see what it looks
4:10
like but I’m going to say we’re
4:11
driving around in an estimate
4:12
truck or car, writing it down a
4:13
pen and paper and then we get
4:14
back to the office. We put it
4:16
into that CRM.
4:22
and are your team members, if
4:24
you have any team members, are
4:24
they clocking in and out using
4:26
like a mobile app, tracking
4:27
their time, or? I’m going to
4:29
say for this exercise, they are
4:31
not. You’ve gotta be making
4:33
money because there’s money in
4:34
the bank. So, why would I
4:35
want to track that, right?
4:36
Gotcha. Yeah, well, we’ll see
4:39
why. You do want to track that
4:40
shortly but I like the
4:42
fictitious example. Oh, yeah.
4:43
So, the next part here is the
4:46
sales analysis and basically,
4:47
you’re going to receive a score
4:48
on each one of these segments
4:50
which is really cool Do you
4:53
have a website quote form? And
4:55
if so, is it automatically
4:57
entering the leads into your
4:59
CRM? Yeah, I’ve got one, Dylan,
5:01
but it sends me an Email and I
5:03
gotta type them in. You tell me
5:04
there may be a way to get those
5:05
in automatically, huh? Yeah.
5:06
So, right now, I do not have it
5:07
automatically getting those in.
5:10
Okay. So, I’ll put no for now.
5:13
And are you tracking and
5:16
reviewing where these clients
5:17
and leads are coming from, your
5:19
client’s source? Fictitiously
5:21
for this example, I am not.
5:25
Okay? And are you sending out
5:26
at least 20 quotes per month?
5:29
Oh, yeah, for sure. We’re
5:30
blowing it up. Okay. Uh, and
5:34
are you following up on these
5:35
quotes at least five times? Uh,
5:38
I will pretend it’s, I will
5:39
pretend it’s early days before
5:40
we automated. Be lucky if you
5:41
got maybe a phone call back.
5:42
So, definitely not. I’m out
5:43
there in the field or at least
5:44
I was back in the day. Uh,
5:46
getting that work done. So,
5:48
we’ll say no. Yep, been there
5:50
for sure. Um, are you upselling
5:53
your database at all? Uh, well
5:56
fictitiously, who has time for
5:57
that? Maybe, maybe in the
6:00
spring and. Yeah, maybe, maybe.
6:02
Obviously, things have changed
6:03
but we’ll we’ll answer this as
6:05
if we’re in the early days.
6:09
Turn turning back time. Um you
6:11
turn it back my hairline will
6:12
be better, huh? So the last
6:16
part here is operational. This
6:18
one’s a little bit tougher, a
6:19
little bit more advanced. Are
6:22
you tracking daily if your
6:23
teams are hitting their
6:24
budgeted times? Uh yeah I am
6:26
but it’s it’s through a pen and
6:28
paper. Excel sheet. Do my best.
6:30
So I’ll say yes. I mean you’re
6:33
tracking it. Uh however you’re
6:34
doing it. Might be a little bit
6:36
more of an efficient way to do
6:37
it. But at least you are
6:38
tracking it. That’s great. Are
6:41
you communicating any of those
6:42
findings with your for
6:45
accountability. I’m going to
6:46
say I know because most people
6:47
we talk to right now are scared
6:48
to do such because they’re
6:49
afraid they’re going to lose
6:50
their employees but obviously
6:51
when you do it correctly,
6:53
that’s a good way to get
6:54
employees. So, and keep them
6:55
but I’ll say no for this
6:56
example just so we see what the
6:58
report kicks out. And are you
7:02
reviewing any of your clients
7:03
that you have that you’re not
7:05
hitting your revenue goals
7:07
with? Um we’ll pretend this is
7:08
back in the day. Let’s say no.
7:10
Okay. So, if you are doing a a
7:13
price increase, it’s just a
7:14
blanket across the board. It’s
7:16
usually what we see in these
7:17
Facebook groups. So, yeah,
7:18
let’s let’s roll with that and
7:19
see what the the audit comes
7:20
out with. have you received
7:22
over 25 five-star reviews in
7:25
the last 12 months? Uh let’s
7:27
put a note because before we
7:29
systematically went out to get
7:29
those reviews, it didn’t
7:31
happen. Mm hmm And are you
7:34
tracking your equipment
7:35
maintenance and warranty
7:36
expiration automatically? Uh
7:40
no, we definitely weren’t too.
7:41
We were blowing two or three
7:41
engines in a year. So, let’s
7:43
check in the oil. So, let’s
7:44
let’s put no because that was a
7:45
big issue in the early days.
7:47
Yeah, I’ve been been there as
7:48
well. Those add up pretty
7:50
quickly. I’ll say no there. So,
7:52
that’s the end of the quick
7:54
quick analysis and then like
7:57
what? Maybe eight to 10
7:59
minutes? Maybe 15 tops with
8:01
some some in some conversations
8:03
back and forth and dive in a
8:04
little bit deeper? Pretty
8:05
pretty painless? Exactly, yeah.
8:07
we went to some of these
8:08
questions a little bit more
8:09
detail. A lot of them are,
8:11
well, maybe sort of I do this
8:13
but. Okay, maybe we’re having
8:14
some fun with it but just
8:15
kind of let people know what
8:16
what this audit actually does
8:17
for him. Yeah and so if we go
8:20
over to the results page now
8:23
which we include as a PDF to
8:24
everybody once we’ve done this,
8:27
looks like we’re having a
8:29
little bit of an error here,
8:30
but that’s okay. I’ll tally up
8:31
the results, shouldn’t be a,
8:34
shouldn’t be a hard equation to
8:36
do here. Um, so you, you
8:39
basically got about 60% on the
8:40
setup side of things. So, I’ll
8:44
have to, oh, let’s just go. Um,
8:50
Three divided by five. There we
8:53
go. That looks a little better
8:54
anyways. Um. All the things
8:56
that happen on Facebook Live
8:57
but we’re we’re good. So.
8:59
Alright. No. No, Biggie. Um so,
9:00
you’re a stage three business
9:02
on the setup side of things. Um
9:03
you got 60%, which, you know,
9:06
is a passing grade and not
9:07
passing with flying colors but
9:09
past. Um then, on the sales and
9:12
the operational side of things,
9:14
you didn’t do so well. Um ten,
9:17
10% is basically what you got.
9:19
So, the overall score is about
9:22
17%. Um with the the biggest
9:25
issues coming from like the
9:27
sales and the operational side
9:28
of things. Obviously, you can
9:30
kind of see it in graph form
9:31
here. But usually what I’ll do
9:33
is when I send over the
9:34
results, I don’t just send you
9:36
this and say, hey, have fun
9:37
with it. Um there’s obviously
9:39
like some recommendations, very
9:40
high level that can be made to
9:42
improve these sections. Um
9:44
usually, they’re fairly easy
9:45
things to fix. It’s just a
9:47
matter of, you know, enlisting
9:48
someone to do it that’s someone
9:51
at your company or or someone
9:52
else but that’s that’s
9:55
typically the process that I
9:56
would do is just add in some
9:58
some kind of concrete
10:00
recommendations here based on
10:03
what she answered no to. Yeah,
10:05
I’ve seen those recommendations
10:06
are really solid and and a lot
10:08
of things, I mean, obviously,
10:09
we’re doing this for free but a
10:10
lot of the stuff, honestly,
10:11
don’t want to, we’re not really
10:12
selling anything with with a
10:13
lot of it. It’s it’s really,
10:14
these are things you need to
10:15
take action on and fix and if
10:17
you do need some help, some of
10:18
it, we provide services, some
10:20
we we actually don’t. Um but it
10:21
really is some great
10:23
transparency and you know, it’s
10:24
just 60%, you know. I mean,
10:27
that’s how I got through some
10:28
of my chemistry classes at in
10:29
high school. Um you know, I got
10:32
through but it really wasn’t
10:33
successful and it’s something
10:34
that I probably couldn’t take
10:35
later on life with me. Um so, I
10:37
mean, if you’re 10% of your
10:38
sales and operations, those are
10:40
usually traditionally very easy
10:41
fixes and some can be
10:43
automated, some can be systems
10:44
and processes but the idea here
10:46
is if you’re looking at it and
10:47
you kind of want to know what
10:48
stage business you are from one
10:50
to a million or beyond and what
10:53
we do is we look at the
10:53
different stages business one A
10:57
and one B I like to call it.
10:58
So, one A, you’ve got a
10:59
part-time or you got a
11:00
full-time job, you’re doing
11:01
your your service business full
11:02
or part time. One B, you
11:04
kind of said the hell of the
11:05
man. He’s making too much money
11:06
off you. I’ve quit that job and
11:07
I’ve become an entrepreneur.
11:09
Now, my biggest pain point is,
11:11
how do I get more leads? Stage
11:14
number two, your biggest issue
11:16
now and it’s based on and we
11:18
can break down the sales
11:19
revenue things but the biggest
11:20
hurdle there is going to be
11:21
going in and figuring out how
11:23
to make sales. Stage 3 is
11:26
systems, and then stage four is
11:28
at Million Beyond. Um so,
11:30
that’s really SOP, standard aid
11:32
operating procedures, and
11:33
building a team. The stage 5 is
11:36
three to five million and
11:37
beyond is really building a
11:38
leadership team. Um so, if
11:40
you’re kind of looking at that
11:41
stage of business that kind of
11:43
correlates and behind the
11:44
scenes of this, it’s looking at
11:46
the biggest pinpoint and hurdle
11:48
and are you at 1 hundred
11:49
percent? So, if you’re at a
11:50
stage three business, just to
11:52
about to break a million or or
11:53
button up again it, the biggest
11:56
pinpoint right now is sales and
11:58
operations. So, this kind of
11:59
lines up perfectly against
12:01
that, Dylan and there are some
12:02
very strategic things that
12:03
every service business should
12:04
do with a stage three business
12:06
and obviously, if this was a
12:07
real business, they’ve got some
12:09
really tough issues here. So,
12:11
somewhere between that $750 and
12:12
a million dollars or even a
12:13
half a million and seven fifty.
12:15
If they don’t fix these things,
12:18
they’re they’re at serious risk
12:20
of financial failure. Um and
12:22
not being able to recruit and
12:24
train and and retain the
12:24
employees that we all need. So,
12:27
if people are interested, we’re
12:28
going to drop a link here below
12:30
this but basically, it’s a 15
12:32
to 20-minute free audit with
12:33
Dylan or somebody on the Simple
12:35
Growth team that has scaled a
12:36
seven-figure business beyond.
12:37
Um it’s all private and then
12:39
once you get this graphic
12:40
underneath it, there is some
12:42
detailed plans of things that
12:44
you should do specifically now
12:46
at that stage one, two, three,
12:48
or four, five business to be
12:49
successful. Um and there’s
12:51
there’s a decent amount of
12:52
detail in there. So, I’d wish
12:52
something like this was around
12:54
when we were trying to break
12:55
that million mark at $750 to a
12:57
million mark. As you know,
12:58
Dylan, you’ve been there
12:58
before. It’s like the gray area
12:59
of death. You gotta you gotta
13:01
get over that or you’re
13:02
going to die in there. Um as is
13:03
well, that one to two 2. 5
13:06
million mark, there’s also some
13:07
massive hurdles there. So, this
13:08
is built to just literally
13:10
pinpoint the exact pinpoint
13:11
based on your business and what
13:14
the pinpoints are in each stage
13:15
of business and how they
13:16
correlate. So, Dylan, I know
13:18
you’ve got a another audit to
13:19
do here in another minute or
13:20
two but any closing thoughts
13:21
before we wrap this up and post
13:23
the link and I guess if you can
13:23
actually message me on Slack if
13:27
you have it afterwards I will
13:28
post the link for people to
13:30
sign up for the free audit.
13:31
Yeah, we’ll do. Um I guess my
13:33
only thing to add is some
13:35
people want to go a little bit
13:37
more in depth with it. Um so,
13:39
sometimes on a screen share,
13:41
like we don’t need to follow
13:43
this exact format, right? Um
13:44
sometimes, someone comes to me
13:46
and says, hey, this is my issue
13:48
specifically. I know what it
13:49
is. Um I’d like to do the audit
13:51
but I’m more interested,
13:53
kind of your opinion on this
13:53
one issue. So, we kind of scrap
13:56
this format if necessary and
13:59
really dive in a little bit
13:59
more in depth to a specific
14:02
issue Maybe their budgeted
14:04
times aren’t matching up with
14:06
their actual times and they
14:07
just want like a more in-depth
14:09
analysis on that. So, you know,
14:11
I’m interested in stuff like
14:13
that. Kinda nerd out on on
14:15
solving some of these problems.
14:16
So, I’m more than happy to to
14:19
kind of break the mold of this
14:20
if it is necessary. If people
14:22
do want to get a little bit
14:23
more in-depth with it. Yeah,
14:24
glad you said because some of
14:26
the biggest breakthroughs of
14:27
when you’ve gotten off the path
14:28
of this. We’re actually done
14:29
this and dove in a little bit
14:30
deeper but I know some of our
14:31
our clients that we work with
14:33
have literally ended up sitting
14:34
with us knee to knee for 23
14:35
hours over screen share or in
14:39
person to actually rebuild
14:40
their whole entire pricing
14:42
matrix and service business
14:44
after diving in and actually
14:46
seeing the solution. They tried
14:47
it themselves. They didn’t have
14:48
the time or the bandwidth to do
14:49
it and they said, you know
14:51
what? We just trust you guys
14:52
after this. You showed us how
14:53
to do it. We just didn’t have
14:54
the time ability to do
14:55
ourselves. So, we’ll we’ll show
14:56
you how to do it and then, if
14:58
you need some help, obviously,
14:58
we’re here. The idea is just to
15:00
to go and pinpoint those
15:01
business pain points right now
15:02
in the uncertain times we’re
15:03
living in to to be make sure
15:05
this business survives and
15:06
thrives throughout the year and
15:08
in the next year. So, we’ll
15:09
post a link right after the
15:10
video and Donna let you take
15:11
her home. Alright, sounds good.
15:13
Yeah, I was just going to add
15:14
one last thing like there’s,
15:15
it’s just so important to get a
15:18
second set of eyes on things.
15:19
There’s things that me and you,
15:21
Mike, if we’re looking at
15:22
someone’s file, would be able
15:22
to see and notice, then would
15:25
never ever reach your
15:26
accountant’s eyes. Um so, you
15:29
know, little things like the
15:31
discrepancies between actual
15:32
and budgeted times that can
15:33
actually be a massive issue
15:34
depending on the size of your
15:35
company. Um you know, your your
15:38
accountants are never going to
15:38
see those those data points.
15:40
So. Yeah and pro tip,
15:42
especially with gas prices
15:43
right now, off-road fuel credit
15:45
tax. If your accountant is not
15:46
getting you the off-road fuel
15:47
credit tax in the states, get a
15:51
new accountant but we’ve had
15:52
people literally seven or $8,
15:54
000 of tax credits for fuel.
15:57
that their accountant never got
15:58
them. So, you can reimmend
16:00
those tax returns up to three
16:01
years at a very small price.
16:03
So, you know, this video may
16:05
just profit you seven to $10,
16:07
000 in tax credit. So, Dylan,
16:10
can’t thank you enough and
16:11
we’ll get that link under here
16:12
to sign up for your free
16:12
business audit coming up here
16:15
shortly. Thanks again, Dylan.
16:17
Appreciate it. Yep, thank