Latest / Home Service Millionaire with Mike Andes / He is One Customer Away From Losing EVERYTHING
Transcript
- 0:00There's been so many times where I was like, we are done.
- 0:03Because that's really where I'm at.
- 0:05I'm like, what is the point?
- 0:06Today we're in Tennessee visiting Cameron with Erosion Masters.
- 0:10We just prevent sediment from getting where it shouldn't go.
- 0:13He's on track to make over a million dollars in revenue this year.
- 0:16I would love to get to, you know, 10 million at some point.
- 0:20But 80% of his revenue comes from just two customers.
- 0:23If we were to lose them, we're in a very bad position.
- 0:27That's kind of the breakdown.
- 0:28Whoa.
- 0:29Yeah.
- 0:30You don't have to say that loud.
- 0:31Like potentially not being busy enough to close the doors.
- 0:34It's not under contract.
- 0:36They can get rid of us anytime they want.
- 0:37He has lost all motivation for the business and his first baby is due next month.
- 0:42I want to take care of my family, but if I'm destroying myself and my mindset and my sanity in the process, then what's that worth?
- 0:49This is the Business Turnaround Show.
- 0:51My name is Mike Andes.
- 0:52I'm the founder of Augusta Lawn Care and HomeWorks Software.
- 0:55I travel the country fixing struggling businesses.
- 0:58Our goal is to give Cameron a strategy to turn around the company in the next six weeks.
- 1:03I would highly recommend figuring out why are you still doing this?
- 1:06Yeah.
- 1:07Otherwise, you're going to build a $3 million business and feel the same way.
- 1:13Okay, so a little bit of background.
- 1:15Cameron applied and then backed out.
- 1:19and then joined again.
- 1:20So he was a little nervous, I think, about us coming, which is understandable, so shout out to him for letting us come out.
- 1:26But they've been in business for four years, they have $760,000 in annual revenue, they do erosion and sediment control and residential street sweeping.
- 1:35Interesting.
- 1:36Basically, you know, we just prevent sediment from getting where it shouldn't go.
- 1:40There's a lot of different methods of installation, but we use a trencher because the ground in Tennessee is so hard.
- 1:46Watch out for this water meter.
- 1:48So we use this big trencher attachment.
- 1:50It's got these crazy rock teeth on it.
- 1:54See how these teeth are like thicker.
- 1:56But yeah, so since this silt fence obviously got trampled over, it looks like another machine came through here.
- 2:01For example, this trunk guy, if there's somebody parked right there or something, they'll just run right through the fence because that's the only way they'll be able to get to the, whatever they're trying to do, you know?
- 2:10Mike's just gonna go through and retrench that area so that we can put new silt fence in.
- 2:16I think of it as a good thing because it's more work for us, so.
- 2:20You know, regular silt fence with wood stakes on it.
- 2:24This stuff here.
- 2:26has a wire mesh material attached to it.
- 2:31So it makes it a little bit more sturdy.
- 2:33And then you use the metal T-post in the ground and attach it to this.
- 2:39So all that old stuff, we'll tear it out like that.
- 2:43We'll throw it in the trash.
- 2:44And then we'll put fresh new silt fence right there in that area so that all of this dirt and stuff doesn't run off onto the road when it rains this week.
- 2:54usually like eight to 12 inch trench.
- 2:56And then you put the silt fence into the ground and then backfill the silt fence.
- 3:02You know, when water hits it, sediment hits it, it captures it so that it's not going where it shouldn't go.
- 3:08If you don't got erosion control, none of these houses would be able to be built.
- 3:14We get paid to put it in the ground, we get paid to repair it, and then we get paid a lot of times to take it out and throw it out too.
- 3:22Okay.
- 3:24Let's go ahead and look at his application video.
- 3:26What's up, Mike and Augusta Nation?
- 3:28My name is Cameron French.
- 3:30I own an erosion and sediment control company here in North Nashville area.
- 3:36I've got five full-time employees, excluding myself.
- 3:39They're all great.
- 3:40I can't say anything bad about any of them really.
- 3:43But Mike has been my right-hand man.
- 3:45As far as personal issues hurting the business, I would say motivation is probably definitely a big one right now.
- 3:51In this space, there's a lot of loss leader type services that are kind of a tough pill to swallow.
- 3:58And then we're also just fighting a battle with these large private equity companies doing things that like a really, really low cost.
- 4:04Also super blessed and thankful to say that I'm having a baby girl in June.
- 4:08So my wife's doing June, but definitely want to
- 4:12start delegating some things and be present during that time because there's been certain circumstances where I You know things have happened and I wasn't able to be present in it'd be it'd be nice And I know my wife would love it for me to be able to just like completely like Step away from it for a couple of days so that we can enjoy some time together and we haven't been able to do that for three years so
- 4:35Alright, so this is one of those rare cases where when we're doing a turnaround it has nothing to do with liquidity in the 4-0 framework, which is cash on hand.
- 4:42And I think the biggest risk here is that he has huge amounts of customer concentration.
- 4:47And that is with 80% of your revenue coming from one customer, if that person leaves you have no business.
- 4:52You're laying people off, all of a sudden this debt is an issue if you have $150,000.
- 4:57And furthermore, he can't go back out in the field because of his injury in his back.
- 5:00Like there's like three discs that have just been worn to nothing.
- 5:04I joked with my wife all the time, I was like, if Mike leaves, I'm done.
- 5:07It's extremely risky, and if a business is risky, it's not worth anything.
- 5:11So you can't sell it, you can't run passively, and so that's why he likely is losing motivation.
- 5:18It's like, you have money, so there's no immediate pain to make change, but you're having a kid, you gotta delegate, but you're also afraid of the fact that one or two employees leaving, or one or two customers leaving, and my business is kaput.
- 5:30So we want to get that monkey off his back and give him systems in place that the business can run without him.
- 5:36So he can spend time with his kid and his family.
- 5:39But also that losing one customer employee is not making him lose sleep at night.
- 5:45And if your business is in that position, it's just like, it's a horrible business to run.
- 5:52Oddly enough, this is, well, I guess it's not really odd, but half of our fleet is down right now, so perfect timing.
- 6:01But, we've been having truck issues.
- 6:04So one of our trucks has been in the shop for like, coming on two weeks now.
- 6:09And then one of our other machines is just getting serviced.
- 6:12This is our little area that I rent from a realtor.
- 6:16And we just kinda check the loads in the morning.
- 6:23Make sure we've got all the material on the trucks.
- 6:28And then these guys hop in and roll out for the day.
- 6:32Thanks for being on time, buddy.
- 6:37Yeah, here's closing up.
- 6:41One day we'll be closing some big doors to a facility.
- 6:51What's up, Mike?
- 6:52What's up, man?
- 6:52Good to see you.
- 6:53Nice to meet you.
- 6:54Dude, that shop space you had is great.
- 6:57Right on the road, but kind of little rule.
- 7:00Give me a little bit of background on the business.
- 7:03I know I kind of caught up.
- 7:04I saw the monthly P&Ls.
- 7:06Yeah, yeah.
- 7:06But maybe kind of give me this origin story.
- 7:09How'd you get even into the erosion side?
- 7:11So it really just stemmed from
- 7:15me building houses for a production home builder.
- 7:19So I was in charge of several different subdivisions and basically our entire vendor base.
- 7:26All of my expertise comes from the construction side of things and managing people and timelines and budgets and all that kind of stuff.
- 7:34I just was looking at all the different vendors we used and I was like, all right, what would be something that I could make money that would be
- 7:41Easy, ha ha.
- 7:43The goal was to become a division president and they had, you know, they basically were saying like, hey, you're on that right path and all that stuff.
- 7:50And I just got to a point where I was like, I don't think I want that.
- 7:53But it's something that, you know, I could get behind and I felt like I could deliver a good service, maybe where service was lacking.
- 8:00And for whatever reason, erosion and sediment control just kind of lined up as that.
- 8:05I don't know, there's just something about it.
- 8:07And I always had this, I guess the bug to do my own thing.
- 8:11And yeah, I just kind of went out and just started this.
- 8:13And here we are three years later.
- 8:15I did not think I'd be here three years later.
- 8:17I'm not gonna lie.
- 8:18There's been so many times where I was like, we are done.
- 8:22And then right as I started mine, all these like private equity companies started coming in here and just buying people out.
- 8:28And then from that, those buyouts, some people that worked in those companies branched off and started their own.
- 8:34So then all of a sudden, like, there's all these erosion companies.
- 8:38Dang.
- 8:38So I've got some really fierce competition for sure.
- 8:42And is that competition mostly around, like, the self-fences or is it around, like, slope erosion?
- 8:48Is it the cleanup part?
- 8:49Like, what is the... All of it.
- 8:51Now, what I've tried to do to kind of...
- 8:53separate myself a little bit is we do do site cleanup which some of them do some of them don't do is the bread and butter the site cleanup or is you think it's mostly like street sweeping what's the the breakdown no the i would say the the site cleanup is just kind of like an extra
- 9:09We do street sweeping.
- 9:11Hand scrape the curbs, blow off the curbs.
- 9:14The guy in the machine will come and scrape the street, but he's getting a lot of it in that bucket so that he can dump it on the other side of some silt fence somewhere where it's off the road.
- 9:23Inlet protection.
- 9:25So this is a dandy sack.
- 9:28So if you see like a storm drain in a subdivision or along the side of the roads, on construction sites we'll put this in it and then this will still allow water to drain through it.
- 9:39Kind of works the same way as the filter sock sort of.
- 9:41Like water goes through it, but it contains the sediment in it.
- 9:44These always stay where you need them to and then you just grab the inside of the metal and take them out.
- 9:51What else did we do?
- 9:52Concrete washout services.
- 9:54I think I said construction entrances, yeah.
- 9:56These big concrete washout bags we set up so that the concrete washouts can wash out their chute.
- 10:02This is where a concrete truck will pull in, you know, clean out his chute because concrete contains a bunch of chemicals.
- 10:09So you want to try to contain that stuff.
- 10:12Stabilization services like seed and straw.
- 10:15we'll put up these perimeter controls until they do stabilize it, you know, like another lot where they put sod or seed and straw down.
- 10:22And then once it has, you know, vegetation grown, you know, no sediment really is going to run off into the streets anymore.
- 10:29It's weird, like there's a lot of services in it, but you have to kind of do them all, otherwise you're not gonna get the work.
- 10:36And those are mostly the general contractors that you're working underneath there?
- 10:39Yeah, yeah, like just all the large home builders.
- 10:41You know, like all of them.
- 10:43So the biggest ones, or is it like someone who's building three houses in a year?
- 10:47No, no, no, the big boys.
- 10:48Okay, yeah, yeah.
- 10:49Well, we find ourselves basically losing money a lot of times.
- 10:52is when we're going out to a job, we're putting one construction entrance in like 100 feet of the soap fence.
- 10:57It's like not worth it.
- 10:58Right.
- 10:59It is worth it because
- 11:01then we're making money servicing that subdivision, right?
- 11:04Doing the street sweeping and repairs and that kind of stuff.
- 11:08You know, if we were down in Florida or something, I mean, you're running thousands and thousands of feet of that a day because the ground's so soft.
- 11:17Where here, like I said, you're breaking your back literally trying to get these stakes in the ground sometimes.
- 11:22And there's some customers that we have where
- 11:26they're like hey install 5 000 feet of silt fence and 30 construction entrances and it's like sweet we're about to be here for two days and make good money right that's a two-day job 30 entrances yeah we can do it in two days yeah we're we're fishing yeah yeah
- 11:42We might charge anywhere from $2 to $3 a linear foot to put this stuff down.
- 11:49The wireback silt fence, depending on the job, we might charge anywhere from $2.50 to upwards of $4 a linear foot to put that stuff down.
- 12:01I really hadn't bid for jobs at all.
- 12:03Like all of this, this business so far has been built strictly through just relationships and word of mouth.
- 12:12I recently started doing some bids, but man, even those that have the time, I'm like, am I just giving this number to this guy so that he can throw it into a spreadsheet and have the numbers so that he can bid for the job?
- 12:24You know what I mean?
- 12:25Right, right, right.
- 12:25Is that the contractors you're calling or like HOAs being like calling you?
- 12:29No, no, no.
- 12:31It's usually the project manager on the job site.
- 12:34Got it.
- 12:34So they're like usually in charge of it.
- 12:36And, you know, so they're the ones that we coordinate with.
- 12:38Well, I coordinate with.
- 12:39Got it.
- 12:40Okay.
- 12:40All right.
- 12:40That makes sense.
- 12:41Cool, all right, well, we'll use the 4.0 framework to kind of move through it.
- 12:44The 4.0 framework explains the four reasons why every home service business stops growing.
- 12:50It's either a lack of liquidity, money in the bank, it's a lack of leads, more customers, it's a lack of labor, which is your employees, or a lack of leadership.
- 12:59I think from like a liquidity perspective, there's not a problem.
- 13:02Like I know you mentioned like paying off the debt, but I don't think that's a problem at all.
- 13:05Because like based on what I'm seeing, like if there's like 350K, it's all in cash.
- 13:10There's $178,000 or something approximately of debt.
- 13:14But all that debt is the trucks and the skid steers.
- 13:17Yeah.
- 13:17Yeah, okay, cool.
- 13:18From a leads perspective, when, like right now, is it like huge customer concentration with the big contractors or is it pretty distributed between a bunch of different customers?
- 13:29Customer concentration is the big issue because yeah, like it's like a handful of our...
- 13:37customers have just like, it's like all of our work.
- 13:41So like there's really a couple of them that if they were like, hey, we're not using it anymore, we're done.
- 13:47Right.
- 13:47That's a bad position.
- 13:49Got it.
- 13:49And is that like that big contract?
- 13:50Like for example, that five year one?
- 13:53Well, so it's not.
- 13:53Or is that more like a recurring?
- 13:54It's not, it's not, it's not con, it's not under contract.
- 13:58Oh, okay.
- 13:58They can get rid of us anytime they want.
- 14:00Oh, okay.
- 14:01So they can just, they just agreed upon price and they're giving you work.
- 14:04Yep, exactly.
- 14:05But if tomorrow they wake up like, we're pinching pennies, we're gonna go get jilly billy down the street.
- 14:10Okay, all right.
- 14:11Yeah, I mean, they're just constantly, constantly beating you up on price.
- 14:15And so it almost feels like your customers are dictating your price.
- 14:20And that is a terrible place to be.
- 14:23And it's not just that one customer or even the other couple that we've gotten in with.
- 14:27I mean, it's all of them.
- 14:28I mean, it's a constant battle of like, hey, how can we get this done for free basically?
- 14:34How much of your revenue do you think comes from those one or two big players?
- 14:38A lot.
- 14:38Like literally all of it?
- 14:39Or like 80, 70, 90%?
- 14:42That's kind of the breakdown.
- 14:48Whoa.
- 14:49Yeah.
- 14:49You don't have to say that loud.
- 14:51Yeah.
- 14:55350 on top.
- 14:56Wow, so it's like 85%.
- 14:58Now, I will say this.
- 15:00This customer here, we are growing with them.
- 15:02Like, they have some stuff coming up.
- 15:04They've been awesome.
- 15:05Like, I would love to grow with them.
- 15:08They don't.
- 15:09you know, they're not penny pinching too much.
- 15:11Like they don't hound us too much.
- 15:12There's a really good relationship there.
- 15:14So that's gonna help.
- 15:15And then we just got our foot in the door with this customer here.
- 15:19And that was the first job we did with them.
- 15:21So that was a big job, right?
- 15:23And how did that customer four hear about you?
- 15:26I used to work with them.
- 15:28Oh, okay.
- 15:28I used to work with them in leadership at the other company I worked for years ago.
- 15:32Years ago.
- 15:33Because you're not really going after the home builder that does like a few houses.
- 15:36You're going after the guys.
- 15:37No, I've been going after the big boys.
- 15:39Yeah, okay.
- 15:40And how many more of them are there?
- 15:42Oh, there's a lot of them.
- 15:43Okay, okay.
- 15:44So realistically, could we have 20 customers?
- 15:46Like, is that even possible?
- 15:47Oh, 100%.
- 15:48Okay, all right.
- 15:48The problem I run into is like, I'll cold call these people and I'll talk to them and I'll follow up with them.
- 15:53They're just like, you got to get to this price.
- 15:55And I'm like, there's just no way.
- 15:57Okay.
- 15:57Like, I just can't do it.
- 15:58That or...
- 16:00I follow up with them so much and then they're like, oh, we ended up using so-and-so at the same price I'd bid.
- 16:05And I'm like, what the heck?
- 16:06I'm like, have I not been annoying enough?
- 16:09Like, I can be relentless.
- 16:11And it's like, I don't know, maybe I annoyed them too much.
- 16:14Yeah, yeah.
- 16:15Okay, so customer four, just because this is the new one.
- 16:18Yeah.
- 16:18What happened to this previous erosion guy where he's like, I gotta call Cameron.
- 16:22Again, same situation.
- 16:23Someone that I used to work with,
- 16:26they saw that I was actually posting stuff on LinkedIn, you know, the minimal marketing that I did do, uh, someone from LinkedIn who I used to work with, uh, saw what I was doing and, you know, they started working for this, this builder and, uh, they, they had the division president, uh, for this builder reach out to me and we just grabbed lunch and, and headed off.
- 16:48And right from the rip, he gave me, uh,
- 16:51two jobs to start servicing.
- 16:53And since then, we've just delivered a good quality job for them.
- 16:57And they're going to continue giving us more work.
- 17:00They've got, gosh, I think three in the pipeline coming up soon.
- 17:05So they've been a great partner.
- 17:07I can't say enough good things about them.
- 17:09So really, this is like a relationship business at the end of the day.
- 17:12It's like, who do you know?
- 17:13Who knows you?
- 17:14Yeah.
- 17:14And who's calling you after the storm?
- 17:17Yeah.
- 17:17And that's partly why you feel chained to your phone though.
- 17:20Cause like that's your kind of your stream of keeping in contact with these guys.
- 17:25Yeah, yeah, yeah.
- 17:25Well that and I do everything else.
- 17:28Like I take every phone call.
- 17:29Like there is no one else that does it, which you know, again, it's fine.
- 17:32I mean, I can't be there forever.
- 17:34Yeah.
- 17:35It's never been just like, oh man, we got a consistent stuff, man.
- 17:40It's like, it's always like,
- 17:42How are we gonna get all this done?
- 17:43Or man, what are we gonna do Tuesday and Wednesday this week?
- 17:47Like, I just have no idea.
- 17:48All right, we will come back to that.
- 17:50Leads right now is I think the biggest opportunity because like, having 85% of our revenue from two customers and 95% of it from four customers is just like, it's hurting my soul.
- 18:01You have no idea.
- 18:03it's just so hard maybe you've been there but it's crazy it's almost hard to want to grow because like you could double this business but if it's all from one you know two customers let's call it then you're still like always in the back of your mind if they leave I can't grow any infrastructure it's like getting an ad in person is scary if revenue could drop 90% have you have you ever built the relationship with the county inspectors
- 18:25Um, a couple of them.
- 18:26A couple of them I've talked to, and I have, like, a couple of their phone numbers and stuff.
- 18:31You need soap fence erosion to pass inspections of all these houses, so if you don't got this, this is the first thing that they do after they grade and do whatever.
- 18:41If you don't got erosion control...
- 18:44none of these houses would be able to be built.
- 18:47So I've reached out to some of those companies and I'm like, hey, this is what I'm doing.
- 18:51You know, they don't do installation or maintenance.
- 18:53They only do inspections.
- 18:55I'm like, throw me some leads.
- 18:57I'll throw you some leads and like, let's try to help each other out.
- 19:00And the conversations were really, really good.
- 19:03No leads.
- 19:03I've thrown them leads.
- 19:04Yeah.
- 19:05What is the obstacle for you also doing site inspections?
- 19:08Price.
- 19:09Well, they're just like the bottom of the barrel.
- 19:12Yeah, it's alright.
- 19:13But I think what they're, they're kind of using that to their advantage a little bit, which I guess the integrity of me kind of, I don't know, there's something about it where they're like, they go do their own site inspections.
- 19:24And then they're just writing a laundry list of stuff so that they can get paid to go fix those things.
- 19:29They're definitely not making money doing it.
- 19:30inspections, but they're making money to do the work.
- 19:32There's a lot of things that come with inspection.
- 19:35Um, making sure that the fence is a certain amount of height under the trench.
- 19:41If it's not a certain amount of height or not covered good, it's not going to pass inspection.
- 19:45It's not going to do what it's supposed to.
- 19:47For example, keeping everything from getting onto the road, et cetera.
- 19:51T post, we got to put those every five feet.
- 19:54Cause I think inspectors like if you're going after new customers, they kind of control the lead flow.
- 19:59And to your point, that's why they're doing the loss leader is because they know they can go sell all this work behind it.
- 20:04A lot of the big companies do do it, like the bigwigs.
- 20:07I think that's an opportunity.
- 20:09The inspections?
- 20:10Yeah, and I think the reason is because I imagine that inspector can get licensed pretty easily.
- 20:16Super easy.
- 20:16Like my crew leader right now is, I got him certified.
- 20:20Yeah.
- 20:20It's literally like a four hour class.
- 20:21Yeah, I almost think though, instead of your crew leader, that becomes your admin person.
- 20:25The person rolling around all day long is able to now pay their wages using the inspections, but also take that off their plate.
- 20:32I understand that Cameron wants to avoid low margin work or loss leaders.
- 20:38And so he's been avoiding the idea of doing inspections.
- 20:41But that's the top of the funnel.
- 20:43Because the inspectors are the ones that determine what work needs to be done.
- 20:47And so if I'm trying to get the work, it might be required for me to go out and do this quote, lower margin work.
- 20:54I happen to believe it's really low barrier to entry for him to get an admin person that can do those inspections, but then keep funneling that work to him instead of him depending on inspectors to not be doing the services themselves and shoveling the work off to him.
- 21:08So it's like, hey, here's the number of inspections, like our target number of inspections, our target number of upsells, i.e.
- 21:15revenue coming to the business that is profitable.
- 21:17Yeah.
- 21:17And here is admin tasks that they can get done.
- 21:21Oh, okay.
- 21:22Because now their office becomes mobile.
- 21:24It's, hey, here's a truck, and I'm paying your wages, and you're going to get an extra commission based on anything you sell on the back end, but we've also got to complete all these inspections.
- 21:33The inspections alone could potentially get to the point down the road where it covers their wages, and then you also have a lead source of the revenue that they're selling on the back end of those inspections.
- 21:43On the website, I think all of this comes back to the website.
- 21:45Oh, wow.
- 21:46Drill me for it.
- 21:48Tell me.
- 21:48Tell me about it.
- 21:51All right, so let's see his website.
- 21:55Erosion Masters LLC.
- 21:57Oh, man, this site is brutal.
- 21:59This doesn't scream I want customers at all.
- 22:02Yeah, so like if you come here, for example, protecting our waterways and fisheries from sediment and stormwater pollutants.
- 22:07I don't know, man.
- 22:08I don't know if that's why people come here.
- 22:10I think they're like, I have a mess on my...
- 22:13on the road i need i have erosion problems so sometimes because you get cash in the bank you start doing the the basics and that keeps you from the next stage of growth and so he's comfortable he's lost motivation and it's evident on the website because the only way to contact him is the very bottom is his phone number and it's not even clickable so on a mobile device i can't even click on his phone number so all right well we'll find out tomorrow
- 22:35I know it's bad.
- 22:36I just have to have a website.
- 22:37Yeah.
- 22:38Like, I think the website becomes, hey, we do two things.
- 22:42We do inspections and we do erosion control.
- 22:45Yeah.
- 22:46Because we need new leads with the inspection site.
- 22:49We need a rank for that.
- 22:50But then we know if we get them on that, then we get them on the erosion control.
- 22:54The challenging part is like, you don't need to like, be ranking well, like you do need to rank well, but not for the local area and local homeowners and getting thousands of clicks and traffic.
- 23:05You need that when 10 people look at, in the local area for like those contractors look in this area, they find you.
- 23:12And then it's really clear what you do.
- 23:14And I would say like right now, your website is built for the inspector, it is not built for the contractor.
- 23:20If you look at your site, the first thing is it's all about environment.
- 23:25Contractors could care less about the environment.
- 23:26Yeah, it needs to be something like keep your erosion inspector off your back.
- 23:30Yeah, 100%.
- 23:31Or keep the city off your back.
- 23:34Avoid site closures.
- 23:36What's the worst thing that can happen if they don't do inspections or use you guys?
- 23:40Yeah, site closure.
- 23:41So up in White House, Tennessee, they have a really, really strict process.
- 23:47And they shut the whole city down.
- 23:49all this sediment and stuff actually goes to stream buffers and then from there it goes to like bigger rivers around the Tennessee area, which I mean, if there's like cement or random stuff going into the rivers,
- 24:01the population of the fish would be dying and all this ecosystem stuff, like it would just be going bad, you know?
- 24:07Even doing guarantees to the builder on like, hey, guarantee no site closures.
- 24:12Yeah.
- 24:12You get your money back if there's a site closure.
- 24:14Oh yeah.
- 24:15Now I need to have the inspection to be able to guarantee them that.
- 24:19If there's this constant flow of inspectors above you, there's always the chance that they do cut you out.
- 24:25Like this is also like customer retention.
- 24:28Because if inspectors are walking every single day and all of a sudden there's an inspector that's like, hey, I'll do this work for like five grand, and you're 10 grand.
- 24:33All of a sudden, they have to think about this.
- 24:35Yeah, no, I think that's a great point.
- 24:38Okay, so I'm going to put website.
- 24:40And what I want to do is speak to pain.
- 24:43Speak to pain.
- 24:46of icp so ideal customer profile so we're talking to the contractor of a large subdivision and when we're building the website we that's all we want to think about they do not care about the environment builders are like the last people in the world to think about the environment i think the business owners there might be some that do care but i mean there's other some that they just want to make money make money and
- 25:09more money.
- 25:10But I mean, it's something that's necessary also.
- 25:13Like we need places to live and there's a lot of people moving down here too, for example, from California to Texas.
- 25:18So speaking of the pain of the ICP currently, but then just having a better website will allow for the commercial to kind of start coming in.
- 25:25Yeah.
- 25:25And then that is not necessarily recurring revenue, which we love, but like it's reoccurring.
- 25:30Yeah.
- 25:30Which is like, there's always new contractors, new things, stuff being built, apartments, et cetera.
- 25:33Yeah.
- 25:34It's just tough with like such a small staff.
- 25:37even cause we've had calls before where it's like, Hey man, like we need a bunch of stuff.
- 25:41And since a big commercial job and I'm like, man, I'd love to do it.
- 25:44But if I do, these guys who are feeding us, um, something's going to lack there and we can't, we can't do it.
- 25:53What about temporary labor though?
- 25:55Yeah.
- 25:56I mean, I gotta find it.
- 25:59Okay.
- 26:00Labor's been a big thing.
- 26:01A lot of turnover.
- 26:02Right.
- 26:03Um,
- 26:03All my guys are great.
- 26:05I do like working with all of them.
- 26:07All the other people, they've either gotten fired or quit or just, yeah, mostly not showed up.
- 26:17You're either full-time with us or you're not, because it's hard enough getting full-time people.
- 26:22If this is their job to do, you need them to do sometimes.
- 26:25I think, honestly, it's just when it hits summertime, but that's the worst part.
- 26:28You know, you get darker.
- 26:29Being in the sun all day, pulling fence, hammering all day.
- 26:33And I guess, yeah, that's the hardest part.
- 26:36Oh, and you have to, like, wake up early, I guess, too.
- 26:38You got to put your part in, too.
- 26:39You know, everybody's putting their part in.
- 26:41Our guys right here, if you're used to it, like it's cake to us, you know?
- 26:46Especially for me, like I've been in this business for like four plus years, so.
- 26:49And then it's like, all right, now I'm gonna, you know, bank on a guy who's part-time, who doesn't need to show up.
- 26:55Yeah, but what if you had your core four to do like recurring work that is more stable, but then you had a whole bench of people that you had them on a WhatsApp group.
- 27:03When you're like, okay, we got a big job coming.
- 27:04Hey, who wants three days of work?
- 27:06Yeah.
- 27:07What is it?
- 27:07WhatsApp?
- 27:08You can use a WhatsApp.
- 27:09I'm just saying you get a bench of people that you put into a group.
- 27:12Yeah.
- 27:13A text group or a WhatsApp group where it's announcements only and they're not able to communicate.
- 27:17They're like, hey, you could put up job listings, which is, hey, I'm going to pay X amount, which would be significantly higher than your current rate.
- 27:23Temporary.
- 27:24This is $10.99.
- 27:26So you get some job that does junk removal, for example.
- 27:29Yeah.
- 27:29He's slow.
- 27:30Like, hey, I'll put you on the roster.
- 27:32And basically what's going to happen is when a job comes in, I will put it on the chat.
- 27:35And whoever responds first, back to me, gets the job.
- 27:38You'd have one of your guys, one of them, with like two or three temporary guys putting in the silk fence.
- 27:43Because I'm going to go on a limb and stuff like that is easy to do.
- 27:46Yeah, yeah, it's not rocket science.
- 27:48I mean, the hardest part is just knowing how to run like the equipment and the attachments.
- 27:53Right here is the wheel that spins.
- 27:55When you grease it, it basically just greases everything on the inside so it doesn't grind on itself, on metal.
- 28:02These four bolts hold the trencher in together.
- 28:05on this side too.
- 28:07And then when you're gonna grease it, tighten the chain, you gotta take these off and then we grease it from right here and that tightens the chain.
- 28:16We used to have a old trencher.
- 28:18That one was a pain in the butt too.
- 28:20The other one, the chain would always pop off.
- 28:23You're a master.
- 28:24I'd say like at least three times a week.
- 28:26Is there something that y'all use that you recommend?
- 28:29Cause like Indeed is, man, you get so many, but it's like,
- 28:34You're going through like 200 of them and you find maybe two.
- 28:38Yeah, you want to create some more friction to the process.
- 28:41And so like, we use a software called SparkHire, but you could just use like Google Forms even.
- 28:46So in Indeed, when they apply, you can set up an automation.
- 28:50And you can just have, hey, when they apply, they submit their application, set up an Indeed automation that sends them this link.
- 28:55So you'll be like, hey, thanks so much for applying, really appreciate it.
- 28:57You've advanced the next stage of the process.
- 28:59Click this link and fill it out.
- 29:01And part of that,
- 29:02Google Form or however you set it up, could just be a video.
- 29:05Like we always require video.
- 29:06So we have no in-person interview before a video is submitted.
- 29:10So you kind of get an idea.
- 29:11We cut it down from 100 applicants down to 10 real fast.
- 29:14I love that.
- 29:14That would be partly useful for even your current team.
- 29:17That sounds like there's churn at that level.
- 29:19But even fixing that churn, I think can tie into our upsell strategy.
- 29:23Like right now, I think I would give a huge bonus for them to find upsells on job sites.
- 29:30Because like right now it's strictly hourly.
- 29:32Is there any incentives for them to stay with you longer?
- 29:35Not really, man.
- 29:36I mean, in my head I have a, I'm like, if you stay here, you're gonna be this.
- 29:41If you stay here, you're gonna be this.
- 29:42And I try to, you know, give that information to them too so that they feel that motivation themselves.
- 29:47So most of them don't even last three months.
- 29:50Like the bottom, the bottom.
- 29:52There's been a few, yeah, that, yeah.
- 29:55Three months is probably pretty fair.
- 29:56And right now, do you have any comp structure?
- 29:58Is it like basically you hire them for what you need and then if they ask for a raise, we're basically giving them?
- 30:04I basically just started them out at a certain amount and then I've just kind of have paid them more as time went on.
- 30:10I need to give them some way to be able to move up inside the company, but when you make it arbitrary or like they don't really know when it's happening, to them it doesn't exist.
- 30:18Yeah.
- 30:19Right?
- 30:19They don't operate in the world of like, we're gonna grow this business and one day you're gonna become X, Y, and Z and I'll be able to pay you more.
- 30:24They don't operate in that world.
- 30:25You know, Mike understands the vision.
- 30:27Cause I know Erosion Masters is gonna be a big thing one day.
- 30:31So I know I was there from the beginning and you know, just making this company work.
- 30:38The other guys, I don't really know so much.
- 30:40You know, they might.
- 30:42I probably haven't done a good job, you know, getting that out to them.
- 30:47I have a cousin who does concrete.
- 30:51And I just go in there and help them, but it's pretty far.
- 30:54So the money I make here, I use it on gas sometimes.
- 30:57They operate in the world of like, how much longer do I need to work here to be able to get a raise?
- 31:00Yeah.
- 31:01Right?
- 31:01Yeah.
- 31:02And like, otherwise, it's just awkward conversations when they need more money, they come to you.
- 31:06Yeah.
- 31:07And that's like really weird and awkward.
- 31:08Oh, it's so awkward.
- 31:10And what always is like the litmus test for me is like, if everyone in the business saw each other's wages, would you freak out?
- 31:17Yeah.
- 31:17Yeah.
- 31:18Yeah.
- 31:20The average of a machine operating, I'd say 23 and up.
- 31:24Not sure I wanna put how much I make out there, but.
- 31:28I've been in situations with some of our folks where I needed people so bad and I had to pay them.
- 31:33You had to pay more, yeah.
- 31:34I was like, Mike, you're not leaving.
- 31:35So I just bumped this pay up to what he was asking for and I don't regret it at all.
- 31:41It's like, man, you're getting paid really good.
- 31:44So we got to create a comp structure and I think for now, I would just build it around tenor.
- 31:49And so I would create the WhatsApp group for the whole team but then I have another one for upsell videos.
- 31:55That way it's just, hey, when we're doing chatting throughout the day, someone's equipment, flat tire, I have a problem, whatever, group chat.
- 32:02When you are over here, you're making videos of stuff you see on job sites that can be upsold.
- 32:07You send them here and then I will take those and try to sell them to the customer.
- 32:10And if they sell it, if they buy it, you get a percentage.
- 32:13Now, do you think 10 or 20%, whatever, like makes sense?
- 32:17Does it go to the whole group?
- 32:20How is there usually two or three on the job site?
- 32:22Usually four guys in a truck right now.
- 32:24Oh really?
- 32:25It's overkill.
- 32:26It just depends on how busy we are.
- 32:29You know, like a job like this, I like to have four guys.
- 32:32Because you got, you know, these guys are staying busy, right?
- 32:35It's not like someone's standing around with their, you know, hands in their pockets.
- 32:38Like Mike's on the machine.
- 32:40These guys are doing repairs.
- 32:41You know, he's throwing something away.
- 32:43It makes it more efficient.
- 32:45But there are times where it's like, hey, maybe we're coming out there just to sweep.
- 32:48And then maybe we only do send, you know, two guys in the truck and we have two guys in the other truck going to hit another job.
- 32:53This is what I would do.
- 32:54I would do whoever hits the two year marker is eligible to get the upsell bonus.
- 33:00Right, so I have, hey, entry wage, and then I have six month, 12 month at two years, you now get where you're, you should be kind of managing the crew.
- 33:08And I would also, each of those stages have a different title.
- 33:11That last one should be probably crew lead or something like that.
- 33:14Like have, so like a technician, six month at something else, 12 months, and then two years, when you become a crew lead, that's when you're eligible for the 20% bonus.
- 33:23Down the road, that upsell video likely should go to the inspector, i.e.
- 33:26your admin person, not you.
- 33:28Yeah.
- 33:28Because they should be able to look at it and get that bid to the contractor.
- 33:32Yeah.
- 33:33So we have two-year, we got crew lead.
- 33:38And then right now, entry-level, erosion tech.
- 33:41Yeah.
- 33:42I like that.
- 33:42It sounds nicer.
- 33:43Yeah.
- 33:44And then we got, we want a six-month...
- 33:48And we want a 12 month.
- 33:50Entry level, you're an erosion tech.
- 33:51You're expected to do these three things.
- 33:54Erosion specialist, you've got to be able to know these things.
- 33:57And that unlocks the wages.
- 33:59So it would be six months plus tasks.
- 34:02Twelve months plus certain tasks.
- 34:05Two years plus certain tasks.
- 34:06Like if you get someone with two years and they can't get a piece of equipment, they're not a crew formant.
- 34:11I'm not super hard on them, but I do think as we grow, I will start being a little bit more strict on certain things.
- 34:20That's only because I know that if I'm pushing them to do better, they're gonna push me to do better, right?
- 34:26Like crew foreman and project manager, what's the difference with the project manager?
- 34:30Project manager at that point is probably like leading
- 34:33Two, three, four crews.
- 34:35Okay, so multi-crew leadership.
- 34:37Multi-crew leadership, yeah.
- 34:38Okay, all right.
- 34:39So each of these levels of tenor are going to come with certain tasks and comp, base pay for each of these.
- 34:47Yeah.
- 34:48Crew foreman is going to get, let's call it 10%.
- 34:52When they do an upsell, project manager is going to get 10% of everyone underneath them.
- 35:00That way we still have 20% here.
- 35:01Because that way the project manager can really make good money.
- 35:04If he starts teaching his foreman how to do the upsells and getting the videos to your admin person, that's where he can make real money.
- 35:14You could do something though around benefits.
- 35:17Yeah.
- 35:18Right, so it's like, hey, when you hit three years, if you're a project manager you get benefits.
- 35:22And then you could theoretically just do comp increases up to here, to the two year.
- 35:27That way when they hit the third year project manager, it's like, hey, you get benefits and you now get 10% of everyone below you.
- 35:33So it's easy to get technicians.
- 35:34You explain this to them when they come into an interview.
- 35:37Here's how it's gonna roll.
- 35:38Here's the stuff you're gonna learn.
- 35:40Here's where the company's going.
- 35:42This looks really appealing for a new candidate.
- 35:44And then your current team also is like, oh, I know what's happening.
- 35:47Next year I'll make more money.
- 35:49Your two current guys that are in this level have a place where they know they're going.
- 35:55Yeah, I like that too.
- 35:56Then you know that you're going to have someone in a year, year and a half that's probably hitting this project manager side.
- 36:01And then you're going to give them a roadmap to become operations manager.
- 36:04That's when you stop showing up at the shop.
- 36:06That's when something gets broken, they're calling the operations manager.
- 36:11So I think we're probably a year and a half to two years away from that.
- 36:17I'll bet you $1,000 is a year.
- 36:20I agree.
- 36:20If you do this stuff, you will get them a year.
- 36:23I agree.
- 36:24I love it.
- 36:25Cameron says he might have me doing a little more of doing the schedules for the guys, running errands, buying silt worms, for example, and then dropping it off at job sites, checking job sites, et cetera.
- 36:38Not too long ago, I got my inspection card, too.
- 36:41He might have me doing inspections also.
- 36:43I love being out here.
- 36:44Like, I told Cameron, like,
- 36:47If I could be out here, like I would be here all the time, you know?
- 36:50The thing though that's bottlenecking now, you're doing really low leverage tasks.
- 36:54You are not thinking about this stuff in the shower.
- 36:57You're thinking about, I need to go do billing.
- 36:59That could be all handed off to someone.
- 37:00Yeah.
- 37:00You're going to have to find the right person.
- 37:02You're going to have to go through three of them.
- 37:03It's going to be a pain in the butt.
- 37:04You're going to have to figure out all the systems that are currently going through your head to figure out scheduling has got to be put in a system.
- 37:09Yeah.
- 37:09To do that, you're going to pull up a screen recording like Loom while you're doing the billing and figure out where they're there and look in the... Just record it all.
- 37:17Yeah.
- 37:17And then that's going to be their SOP.
- 37:19That's going to be a standard operating procedure.
- 37:20Here's your training.
- 37:21Yeah.
- 37:21Here's how we do billing.
- 37:22There's four videos in there of me going through different types of jobs we've done where I had to figure out where they were at and the billing per rate or, you know, the flat rate stuff and the hourly stuff.
- 37:32I figured it all in there.
- 37:33Watch those four videos.
- 37:36So that's the first thing that's like tomorrow.
- 37:38This is also where like your wife says, amen.
- 37:41And hallelujah, right?
- 37:44Yeah, she'll say it for sure.
- 37:46The biggest part of like whenever I hear someone say they lost motivation is like you changing that one thing unlocks everything else in the business.
- 37:55As soon as the entrepreneur is looking at other industries.
- 37:59I don't even know if this is really the industry I want to stay in.
- 38:03Is bogged down.
- 38:04I'll never be satisfied, unfortunately.
- 38:07Doesn't love the work.
- 38:08It's tough work.
- 38:09Is constantly afraid.
- 38:11Like fear is the most debilitating thing ever.
- 38:12It stinks because you know 98% of what you worry about never happens.
- 38:16You stop scaling and it's a self-fulfilling prophecy.
- 38:19If you fixate on certain things, it seems like it does happen.
- 38:22Because you'll cap out at 1.2, you can't handle the stress, someone leaves.
- 38:25It's just like this horrible.
- 38:28Oh, well, we've been there so many times.
- 38:30Like I was telling your wife that, yeah, there's been so many times where it's like, yeah, we're done.
- 38:35Well, and when you're handling low leverage tasks like this and literally your thought process is like, you're not listening to your wife, she's in it, man.
- 38:44She wants you to quit too.
- 38:45Yeah, there's certain times where she's like, what's the point of all this?
- 38:49right what role does your marriage play in your business oh gosh man you can't tell me things like that I'll get emotional um it's it's awesome because she wants me to push through the hard times and she helps me do it I don't want to she's been she's been the best
- 39:13But at the same time, she's okay if it doesn't work out.
- 39:18Like she's proud of me no matter what.
- 39:20And what more could he ask for?
- 39:23I'll leave it at that.
- 39:29You're gonna get the clicks.
- 39:31You're gonna get the clicks.
- 39:33I think part of it is like you have actually done everything you hope to do.
- 39:38You create financial freedom and you provide for your family.
- 39:41Yeah.
- 39:41And so I think clarity on what the next step is important.
- 39:44Yeah.
- 39:44Cause that's why you've lost your motivation too.
- 39:46It's cause like everything you actually set out to do with this business you've done.
- 39:49Like that's why you quit your job.
- 39:51Right.
- 39:51And you got, was the accident at work?
- 39:54The previous, did you get back in the room?
- 39:57I was afraid you would ask that.
- 40:00When you're literally working like 5 a.m. to 9 p.m. getting a business started and you're spending, you know, eight to 12 hours of that, you know, however long that day is, just doing all the grunt work yourself.
- 40:16Yeah, it was literally the straw that broke the camel's back.
- 40:19But I had a day where I felt good and I was like, man, that was like the best I ever had.
- 40:24I was like, man, my back trail is really loose.
- 40:25Like, this is great.
- 40:27And then I went to a mixed martial arts class and it wasn't even doing anything crazy and it just went out.
- 40:34If he could, I know he would be out here with us banging these steaks in and doing all this stuff.
- 40:42Yeah, I know.
- 40:42And he's still out here.
- 40:43I'm like, man, you got to catch a break.
- 40:45You got to go home and stay home, man.
- 40:48I would highly recommend figuring out why are you still doing this.
- 40:52Otherwise you're gonna build a $3 million business and feel the same way.
- 40:55You're like, okay, so now what?
- 40:56That's my fear, is like I'm gonna go and- Oh, it will happen.
- 40:59It's not a matter of fear, it will happen.
- 41:01So getting clear on that is super valuable.
- 41:03Yeah.
- 41:04And here's the, I'll put an asterisk now because I have this background information.
- 41:07You're having a kid next month.
- 41:08I know.
- 41:10A baby girl.
- 41:11Uh.
- 41:12They say middle of June, but who knows?
- 41:15I mean, I should probably have my phone on ring just in case.
- 41:18I mean, you literally never know.
- 41:21So like that can become your why?
- 41:23Yeah, I think it is.
- 41:25That's obviously going to change my life, but I hate that I'm going through that situation.
- 41:30I'm blessed and so happy that we are, but I hate that we're going through it in a time where I'm still so involved in this.
- 41:36You know what I mean?
- 41:37I know the why with it is it's my family.
- 41:40Like I want to take care of my family.
- 41:42you know, sometimes I wonder what the trade-off is, right?
- 41:45So it's like, I want to take care of my family, but if I'm destroying myself and my mindset and my sanity in the process, then what's that worth?
- 41:55Like, I will be present.
- 41:57Like, I don't care if I've got to shut my phone off for that day.
- 42:00Like, I will.
- 42:02It'll be fine.
- 42:04It will.
- 42:05Like, it's only one day.
- 42:06I know I'm going to be in that hospital room.
- 42:09Have you played out with the worst case scenarios if you unplug?
- 42:13Oh, I probably get too much into the worst scenarios.
- 42:17But sometimes it's important to play it out because it's not a big deal.
- 42:20It's really not.
- 42:22The reason part of it is that you're afraid you're going to lose that one customer.
- 42:25Well, any of those, this one or this one too, because we're growing with them and that helps us diversify, that puts us in a bad position.
- 42:33Right, so not answering their phone call if they get mad at you.
- 42:37Yeah, and it's like, they'll be fine.
- 42:40Well, more importantly, you can just hire someone to answer the phone.
- 42:42You can afford it.
- 42:43If you had to spend, if you had to burn 40 grand,
- 42:47Getting this admin person that's like, they're not super efficient.
- 42:49They're not great at everything.
- 42:50They're kind of, that's fine.
- 42:51If you can start hiring someone for admin right away, get them up, get them started in two weeks, two weeks after that, they should be able to take calls.
- 42:58They should be able to do like the billing stuff.
- 43:00And then I would recommend where it's like, Hey, at the end of your shift, you list the five things I need to be brought into and you send them a message.
- 43:07That way you're going to ask for 10 minutes while your wife's giving birth, you're going to go and you're gonna answer five questions and that's it.
- 43:13But then you're not going to have this, because I also don't want you to be there with the phone off and not present.
- 43:18Yeah, yeah, yeah.
- 43:19And so the goal is that you take the reactive nature of a phone call and email, I've got to get a billing done tonight, off your plate.
- 43:25But there's still going to be things you have to address.
- 43:28But you know it comes at 5 p.m. And then you address them at 5.
- 43:31Yeah.
- 43:32Cool.
- 43:32So from a leadership perspective, delegate admin...
- 43:36And then this is the part I think I would recommend pulling your wife in together, figure out the why.
- 43:43You'll also get more buy-in as you do make some of these hard transitions of like, now your ad person doesn't show up and the phone calls are coming to you.
- 43:52She needs to understand you're in this transition part.
- 43:55You know what I'm saying?
- 43:57And not buy into the pipe and be like, oh, if we just grow the business, it'll be fun better.
- 44:00Because it won't.
- 44:01If you just keep growing the way you are now and you do two million next year and you're still answering that phone, it'll just get worse on a personal side.
- 44:07And then you got a kid screaming in the middle of the night.
- 44:08Yeah, yeah, yeah, yeah.
- 44:10Like, it all gets bad, you know?
- 44:12Oh, listen, I'm no... You know, it's really just trying to find out the why and stay on that path.
- 44:18I'm going to get reminded of it, you know, a hundred times a day, especially whenever...
- 44:23Her name's Faye.
- 44:24Once Faye's born.
- 44:25The only reason I feel like, and I hate even thinking of it this way sometimes, is like, sometimes I'm like, well, if this doesn't work, I know I can go get a job somewhere because I have...
- 44:36you know, the experience.
- 44:37Like I can go get a VP job, but it's not a big deal.
- 44:40But I'm like, man, I cannot fall back into that.
- 44:43The why has always been that, but sometimes I lose track of it.
- 44:47And there's times where I go, well, do I take it the easy route and just go get another job working for someone?
- 44:52But then you got to think about that too.
- 44:54It's like, are you going to be happy doing that?
- 44:56Dude, you are so beyond that.
- 44:58You're so beyond that.
- 44:59You have a million dollar business.
- 45:00You have very profitable.
- 45:02Yeah.
- 45:03And do you only think that because you think you have concentration risk and you have a key man risk?
- 45:08You grow the business and both of those things get solved.
- 45:11As a man, sometimes you hold things in.
- 45:13And, you know, a mentor is kind of like a therapist in a weird way, sort of, right?
- 45:19Like they're going to give you life advice inside of your business.
- 45:24You have to be a little vulnerable and talk to somebody, especially someone that's been there and has done it.
- 45:29You know, just like Mike.
- 45:31For you and what you've built so far, what's been your why behind it?
- 45:36Because I'm sure you've gone through so many roller coasters, right?
- 45:41How long have you been in business now for yourself?
- 45:4319.
- 45:44That's a long time, right?
- 45:46You can't tell me that there's been times where you haven't been motivated or you're like, dude, I'm done with this.
- 45:51Like I'm gonna go do something else or I'm gonna get a job or you know.
- 45:55If you said you didn't, I'd be like, okay, that's crazy.
- 45:59Like what's kind of been your motivation and kind of kept you going through it?
- 46:03I think a lot of times you can derive a lot of purpose from trying to solve the problems that you went through for other people.
- 46:10And so like, I had to, when I left medical school, there was a lot of pressure from like professors, and like, what are you doing, mowing grass?
- 46:18You were gonna become like this young doctor guy.
- 46:20So I feel for the person that has a lot of pressure on them because I didn't have it for my family, but I know there's a lot of people that do when they don't want to be doing some industry.
- 46:28They're just like pigeonholed into this thing.
- 46:29And I want to give them the opportunity like you can go do something else and if you want to work with their hands, there's opportunity.
- 46:34That's the first person that was when I was 18.
- 46:37But the 21 year old version of myself is why I really focus on it.
- 46:40Because I had almost a million dollar business, got in an accident, and basically if I would have had family or kids, I would have been bankrupt.
- 46:48and I had no systems, I'm on the hospital bed, FaceTiming my crew, trying to figure out the next job.
- 46:54So I'm just trying to prevent as many people as possible from getting to that spot.
- 46:58Because I know that pain, I can feel it a ton.
- 47:01Like it kinda like if someone says they have back pain and they really do, you know what they feel like.
- 47:04And you're like, dude, I know exactly what you're going through.
- 47:07So that's the way I feel for business owners.
- 47:10And then the one part I can't really relate with is going through that experience with family, and dependents, and a kid.
- 47:18That's where I get very passionate about it.
- 47:19Like I could care less about the cameras, I'd be the same way because like I feel everything you're feeling the same way you would feel someone's back pain if they're like, yeah, it's out.
- 47:28And so like, as you approach your why, yes, you can do it for like my family, my kid.
- 47:32Like those are important things.
- 47:33Those are intrinsic things.
- 47:34That's what's gotten you where you're at now.
- 47:35But as soon as you can revert that to like, how can I do this for someone else?
- 47:40Like that's when it unlocks a different level of effort and discretionary effort.
- 47:44I do want to make good money, but not solely for the purpose of, you know, myself and my family.
- 47:51I know how awful it is to get a business just off of the ground from like zero and to help someone out else with that and help alleviate some of that pain in the future someday would be super, super cool to do.
- 48:05It's like there's a certain point in every airplane's journey.
- 48:07It's like, okay, if something bad happens, we actually have to still get to the destination.
- 48:11Yeah.
- 48:11We're not turning back.
- 48:12Right.
- 48:13And so I would just like, that's the point of no return.
- 48:16It's like you get past this point where you're like, oh, there's no, let's go back to Seattle.
- 48:20Right.
- 48:20It's like we got to go all the way to Portland.
- 48:22We're almost there.
- 48:22Yeah, yeah, yeah.
- 48:23And so I would just say you got to have definition around your destination though because a lot of people, they take off and they don't really know where they're going and then something bad happens.
- 48:30So what they would do is turn around and go back.
- 48:32Yeah.
- 48:32versus being like, oh, no, my destination's right here.
- 48:35And for you, I would say you've already hit a lot of the goals you have.
- 48:38So it's time to change what is the next destination, get clarity around it, so that you can pass the point of no return and just go all in on it.
- 48:51To be completely honest, a lot of this stuff is kind of still in the works.
- 48:57Didn't really get implemented as soon as I'd liked it to.
- 49:00One, with the baby coming early, that threw a huge curveball.
- 49:04But then also, we've had like the wettest months that we've ever had.
- 49:10which makes our job just super crazy.
- 49:13The good news of that is with that crazy came a little bit of a diversification with some of our current customer base, which was obviously our biggest issue.
- 49:23So that's kind of helped a little bit.
- 49:26Definitely hasn't solved the problem, but has definitely helped alleviate that pain a little bit.
- 49:31As far as admin goes, still working on that.
- 49:35What me and Mike talked about was having maybe a part-time admin and
- 49:39We had someone in mind and it just didn't work out.
- 49:42And, you know, we knew that was going to be part of the process anyway.
- 49:46We just hadn't found that quite yet.
- 49:48Do have another person in mind for it, but there's a little bit of a time constraint there with that person.
- 49:54More so recently, I have noticed, you know, probably a good like hour or two of my day just getting sucked because of, you know, billing and, you know,
- 50:04you know, certain things with insurance and stuff like that.
- 50:06So I do think that we need to hire that person like ASAP, just with, you know, some of those different things that happened.
- 50:14It just hasn't happened yet, unfortunately.
- 50:16Also, the curveball that kind of got thrown at us with with hiring an admin was, you know, Mike had talked about maybe having them doing some site inspections for us.
- 50:26And the current customer base that we have, the one that I thought we might be able to get our foot in the door and do those inspections with because they're currently doing it with a third party.
- 50:37The person that was in charge of it kind of pushed away, so to speak, you know.
- 50:43They got fired in short.
- 50:45So now there's someone else that's running it and they're like, man, that's like not even at the top of my priority list right now.
- 50:50And he's like, but once this other person gets in the door, like it might be something to conversate with them about.
- 50:56So it's kind of on the back burner.
- 50:57Unfortunately, I do still have plans to do that.
- 51:00One thing that we, you know, I did jump on right away that actually should be going live this week is our website.
- 51:08Kind of the same thing with the website.
- 51:09We went through a couple of different people that just weren't really doing a good job.
- 51:13I was like, man, I can't win here.
- 51:17But finally found someone that has been really responsive and we're like pretty much 99% done with it.
- 51:24Just has to add a couple of testimonials to it, which Mike suggested we get.
- 51:29Hoping that really starts to get the phone ringing a little bit more.
- 51:33You know, kept the theme the same because I did like the theme of it.
- 51:37And but we, you know, we we we branded it more to where, you know, I created like a new logo.
- 51:44So we ditched the LLC at the end, like Mike was talking about.
- 51:50I'm going to do instead of erosionmastersllc.com, it's going to be something along the lines of, I think, I think we came to the conclusion it has to be erosion-masters.com because erosionmasters.com was taken.
- 52:04So we did that.
- 52:05So as soon as you get onto the website, you know, it kind of screams more of, Hey, we do residential and commercial erosion control services.
- 52:15Rather than kind of like Mike was saying, hey, nobody really cares about the environment.
- 52:20Not nobody, but a lot of contractors don't.
- 52:23And you're targeting that right from the get on the homepage.
- 52:28And then same thing kind of with the truck wraps.
- 52:30That was another thing on here for the six week plan.
- 52:33One of the trucks that wasn't here whenever you guys came to visit, we finally got back four weeks after your visit.
- 52:40So, you know, just another one of those things where the shop had it for a long time.
- 52:45I feel like I'm making a lot of excuses right now.
- 52:47But these are all like legit things.
- 52:49I wouldn't lie to you.
- 52:50I have a design that I've put together.
- 52:52I've gotten pricing, all that kind of stuff for the new logo on the sides of the trucks.
- 52:58But I'm still kind of shopping around to figure out exactly what trucks I wanna buy.
- 53:03use.
- 53:04Something that really wasn't on the six week plan, but was on, you know, the, the 4L framework was a temp labor, uh, have implemented that a little bit.
- 53:14That's been a huge help.
- 53:16Um, you know, we've had just kind of word of mouth, uh, even guys that know people that, you know, are, you know, might do roofing or something, but, you know, they have a day where, you know,
- 53:28You know, they don't have work and, you know, if we've got a big job coming up, we've utilized them on that and we've paid them a little bit extra.
- 53:36And that really saved us last week.
- 53:37Actually, we had a pretty big job that kind of got thrown at us last minute, which tends to be the name of the game in this industry.
- 53:46The one thing that's definitely helped the biggest was the WhatsApp.
- 53:51I still feel like an idiot for not knowing what that is.
- 53:54All my guys were like, yeah, we got it.
- 53:56And I was like, are you serious?
- 53:59And the one guy with the Android was saying, yeah, I haven't been able to see all these pictures and videos I've been looking at the other guys' phones.
- 54:05And I was like, man, I wish y'all would have suggested this to me earlier.
- 54:09We've slowly started to transition again, just with so busy as we've been, to transition into doing some of the
- 54:19upselling type stuff.
- 54:21So we haven't fully implemented it, but we've definitely talked to my crew leaders like, hey, this is kind of what we're thinking about in the future.
- 54:30Right now, we're just so busy that they're getting great hours and they love it.
- 54:35I've already noticed it.
- 54:36We haven't even implemented it yet.
- 54:38And I've noticed them sending me stuff.
- 54:41Which is great, but it's like, hey, love that you're sending me this, but we already have way too much we have to do today.
- 54:48So we just need to get a little bit more consistent with the workflow and then really start to utilize that.
- 54:54But I do think that's going to be a big game changer.
- 54:56And you could tell that just them knowing that that could be coming in the near future, it's motivated them.
- 55:03It was definitely way different than I anticipated it being.
- 55:07In a good way, though, for sure.
- 55:10It was a little bit more in-depth than I thought it would be.
- 55:13And then, you know, the time with Mike was really good.
- 55:15I appreciated that.
- 55:17But even the time just with...
- 55:19the cameraman Terrell was it, but even afterwards, like he was telling me, he's like, man, your team really likes working for you.
- 55:25And they're like super motivated.
- 55:27And like, you can tell that you have their respect sort of thing.
- 55:30So it was cool to just, you know, hear that from an outside source.
- 55:34You know, sometimes you kind of get lost in the weeds of things and you, you don't tend to see those kinds of, kinds of things.
- 55:40So it was, it was nice to have that, you know, brought to my attention.