Latest / Success Story with Scott Clary / Chad Riddersen & Kyle Voss - Epic Septic Co-Founders | Why Boring Businesses Beat Sexy Startups
Transcript
- 0:00I need to understand where does this idea come from?
- 0:02The idea to do something that doesn't even cross people's minds.
- 0:05It's all about just finding a big problem to solve regardless of what industry it is.
- 0:10I've always just like helping people.
- 0:12Some advice for entrepreneurs, think about how you exit the business.
- 0:15Should somebody think about that from day one or is that something that you worry about later on?
- 0:19If you were to start at the end of mine, you might actually set a limiting belief for yourself.
- 0:23Today's guests are Chad Ritterson and Kyle Voss, the co-founders of Epic Septic and Service.
- 0:27Chad brings years of experience in entrepreneurship and marketing, while Kyle is a former professional football player and Marine Corps captain turned entrepreneur.
- 0:36Together, they saw an overlooked industry and built Epic to challenge the traditional septic business with bold branding, technology, and a scalable model.
- 0:46What would be the hardest lesson you guys had to learn building Epic?
- 0:49The hard part about it is like the opportunity cost.
- 0:51The moment you have this little soul that you have as like this baby, everything becomes so finite because you like... Oh, this is for a concern.
- 1:01You start to miss like a few things.
- 1:03Chad's on this journey with me and sacrificing so much time away, missing dinner with his boys, his wife.
- 1:09As they get older and more time you spend away, that guilt compounds.
- 1:12If you want to do something great, it requires great sacrifice.
- 1:18MyFitnessPal is a success story partner.
- 1:20Now, everybody wants more energy.
- 1:23Everybody wants better sleep.
- 1:24Everybody wants to feel sharper during the day, to not hit that wall in the afternoon where your brain just checks out.
- 1:30And people try a lot of things to get there.
- 1:32So new routines, new supplements, better sleep habits, more coffee, less coffee, all of the above.
- 1:38And some of that stuff works, but the single biggest lever you have for how you feel on any given day is what you eat.
- 1:44It's not the most exciting answer,
- 1:46Nobody's making a viral reel about eating lunch, but food is the foundation, right?
- 1:50Your energy, your sleep, your weight, your recovery, how you perform at work, how you feel when you get home.
- 1:56It's the one input that touches everything else.
- 1:59Now, the problem is that most people have no idea what they're actually eating.
- 2:02They have a general sense.
- 2:03They can say, I eat pretty healthy, okay, but,
- 2:06How much protein are you getting?
- 2:07And how does that break down across your day?
- 2:09Are you eating enough in the morning?
- 2:11Are you stacking everything at night?
- 2:13Those details matter a lot.
- 2:14And you can't answer those questions without logging what you eat and looking at the data.
- 2:19And that's why I use the MyFitnessPal app, because you log what you eat and it shows you exactly what's going on.
- 2:24Your macros, for example, that's just your proteins, your carbs, your fats.
- 2:28those are broken down by grams.
- 2:29And on premium, it breaks those numbers down by meals.
- 2:31So you're not just seeing one number for the day, you're seeing what breakfast looks like versus lunch versus dinner, and that changes things.
- 2:38Because your body doesn't run on daily averages, it runs on what you give it right now.
- 2:42The food analysis, another great feature, it shows you patterns across the week too.
- 2:46Where things are consistent, where they start to drift, and you're gonna notice how what you eat impacts your energy and why you wanna stay consistent, and when you don't, why you start to feel like you're hitting walls
- 2:57in the afternoon.
- 2:58Now the food logging.
- 2:59This is where a lot of people think it's going to be a whole thing.
- 3:02It's not.
- 3:02For example, I can say what I ate out loud.
- 3:05There's a voice logging feature and it's done.
- 3:07Or I can scan a barcode of something I ate, two seconds.
- 3:10There's also a meal scan where I just point my camera at a plate and the app captures exactly what I ate and all the macronutrients.
- 3:18And MyFitnessPal has the largest food database out there.
- 3:21So whatever I'm eating is already in it.
- 3:23And it remembers what I eat regularly.
- 3:25Also, it connects with over 40 fitness apps and wearables.
- 3:28So everything goes into one spot, all of my health, wellness, and nutrition.
- 3:33So if you have been trying to figure out why your energy dips in the afternoon, or why you're not sleeping as well as you used to, or why you just feel off and you can't put a finger on it, look at your food first, before you buy another supplement or you try some other hack.
- 3:46The answer is usually in nutrition.
- 3:49And this is the easiest way that I found to actually see what's going into your body and track it and pay attention to it and improve it.
- 3:56So do yourself a favor.
- 3:58Go to podcast.myfitnesspal.com and use code Scott.
- 4:01That's S-C-O-T-T, all uppercase.
- 4:04That gives you 15% off MyFitnessPal Premium.
- 4:07One more time, that is podcast.myfitnesspal.com.
- 4:11Code Scott.
- 4:11That's giving you 15% off MyFitnessPal Premium.
- 4:20You guys call yourselves brown collar.
- 4:23What does that mean?
- 4:24We're the brownest of the blue.
- 4:26That's where I, it's something that we've adopted because I come from like Brooks Brothers white investment banking collar.
- 4:34Kyle comes from a football pad NFL collar.
- 4:38I don't know if there's a collar in that, but that's where for us, like really embracing the dirty aspects of being septic empire builders.
- 4:47Yeah.
- 4:48When you think about all the different jobs you could do and all the different kinds of businesses you could go into, I don't think most people raise their hands and say, hey, I wanna deal with people's shit.
- 5:02I need to understand, as entrepreneurs, where does this idea come from?
- 5:08Where is the idea to do something that
- 5:10doesn't even cross people's minds?
- 5:13Where does it come from?
- 5:14That's a loaded question.
- 5:14I mean, for me, it's all about just finding a big problem to solve regardless of what industry it is.
- 5:22So I think a lot of people, they get predispositioned to doing what's cool in life.
- 5:28You know, like I want to go be an investment banker.
- 5:31I want to go be an actor.
- 5:32I want to do this fun, sexy thing.
- 5:35For me personally, like I've always just like helping people, getting my hands dirty, like sweating out in the field.
- 5:42Like I started in roofing, you know, that's what I did when I first got out of the Marine Corps.
- 5:47And septic's one of those industries that's 10, 15, 20 years behind what...
- 5:55big service industry is like plumbing HVAC electrical is like the big, big three or four septics.
- 6:00One of those ones that hasn't been touched.
- 6:01It's extremely fragmented.
- 6:02Um, nobody knows how to brand a market in this industry.
- 6:04And we saw that it was like, Hey, there's a big problem to solve septic in itself.
- 6:08A hundred to $150 billion total addressable market.
- 6:11There's tons of opportunity out there.
- 6:13Nobody's grabbed that bull by the tail or by the horns and went after it.
- 6:17And we're trying to do that.
- 6:19You know, this reminds me of, do you know who Scott Galloway is?
- 6:22Have you seen his content before?
- 6:23He's like a business podcaster, but he has this idea that everybody wants to go into vanity businesses.
- 6:32And a vanity business could be like an actor or an athlete or podcasting is very much a vanity business.
- 6:38Like it's like so sexy, even like being a startup software founder.
- 6:43Yeah, it gets glamorized.
- 6:44Vanity business.
- 6:46But the issue is in vanity businesses, like 0.001% of people really make money.
- 6:53Like how many podcasts out of all the podcasts on earth make over $100 million?
- 6:58Well, okay, Jay Shetty just got a deal.
- 7:01Joe Rogan's got a deal.
- 7:02Maybe Howard Stern has a fire SiriusXM deal.
- 7:06There's not a lot of podcasters that make real money.
- 7:09And these are not even, you know, billion-dollar unicorn podcasts are just...
- 7:14significant deals.
- 7:15But in all of these unsexy industries, it's not the 0.001%.
- 7:22If you are in like the top 1% or even the top like 5% of septic and there's a whole bunch of other unsexy, non-van, like you're flying private, you're killing it, your life is incredibly good.
- 7:36Why do so many people stay away from these unsexy jobs when there's so much money in it?
- 7:42I'll take a crack at that because...
- 7:45I'm the eldest child.
- 7:47I have wonderful parents.
- 7:48And not that they push me in any direction, but there is like, there may be like this external vanity that comes from like making my family proud.
- 7:57And that's something that going out of school and then going into investment banking, it's like, okay, like Chad's got it.
- 8:03Like that made sense from everybody's perspective.
- 8:06And then you kind of,
- 8:09You kind of go along in a career and there was an episode that you did where you were talking about career reinvention.
- 8:15And there's, you know, I think the likelihood of maintaining the same position role industry for an entire career, unless you're a podcaster, like it's pretty low.
- 8:25And so...
- 8:26Having this career reinvention, the odd thing, as I've had my own kind of reinvention and reincarnations in my career, which went from like iBanking to owning a marketing agency, now in a poop-pumping business, like that's something where my father,
- 8:42is like most proud of me now.
- 8:43He's like, Oh, finally you're doing something like for real.
- 8:46And so it's like all this time I was like a big charade thinking I was making mom and dad proud, which is something that I think is like just very much baked into my subconscious.
- 8:57The, the funny thing is like, this is the one thing they're like, Oh, this is going to be the big one.
- 9:00Chad, good word.
- 9:01So I think everybody has that expectation.
- 9:03I've actually, I don't know which podcast you're listening to, but I I've mentioned this several times where, uh,
- 9:10What people think success is, career success or, you know, other parts of their life, who they marry, where they live, a lot of it is dependent on what their parents actually sort of embed into their subconscious when they're kids.
- 9:22And I don't think a lot of people ever challenge it.
- 9:24And then I think one day you wake up and you're like, why am I even living the life that I'm living?
- 9:28And...
- 9:30There's a lot of reasons why people don't go into unsexy, like hard businesses.
- 9:36But to your point, I don't think a lot of people who are in your position who feel like
- 9:42their family wants them to do this thing, go into investment banking, go into the white collar corporate job, make a lot of money in a different way.
- 9:49I feel, I don't even think they really check to see if it's what they want, if it's what their family wants, if it's just what they think their family wants.
- 10:00And we kind of just live life on autopilot.
- 10:02And most people don't wake up until they're like 50, 60, and then they have this midlife, late life crisis about what am I doing with my life.
- 10:09So you kind of, Kyle, I don't know your whole story compared to Chad, but you kind of woke up and you said, the path that I'm on is not for me.
- 10:19This is like, I'm not getting lit up by this job in investment banking.
- 10:24Like, how do I do something?
- 10:26I'm still entrepreneurial.
- 10:27I still want to build something.
- 10:28I still want to be successful.
- 10:29Let me take a different road.
- 10:30So I'm curious.
- 10:32Chad, what made you pivot and sort of come to this realization way younger than most people?
- 10:39But then also, Kyle, did you have a similar story or is yours a little bit different?
- 10:42Mine's a little bit different.
- 10:44I kind of my story starting back, I'll start in college.
- 10:48Like I come from a small town in Texas.
- 10:51And, you know, my dad beat into me like sports, sports, sports, sports, sports.
- 10:55So you got to be a good athlete.
- 10:57Still a lot of expectations from the parents, though.
- 10:58Lots of excitation from the parents.
- 11:00It's like, go to college, get a degree, all that stuff.
- 11:02And I followed that.
- 11:03I was a good football player.
- 11:05I had a chance to play in a collegial level, played professionally for a brief stint.
- 11:08Then when I retired, a step away from football, I came back to America, and I got a corporate job.
- 11:13I got a software sales job.
- 11:15I was beating my head against the computer all day, every day.
- 11:18And my best friend I made...
- 11:21In college, he was a recon Marine.
- 11:23So our special form of special forces.
- 11:25I would call him every day just as like a confidant.
- 11:28It's like, hey, Aaron, I hate my job.
- 11:30Like, what do I do?
- 11:31He's like, Kyle, if you call me one more time and complain about where you're at in life without making a change, I'm going to fly down there.
- 11:37I'm going to drag you out of your office.
- 11:38I'm going to make you go quit your job and tell your boss like a little child.
- 11:41And you're going to come move in with me into a small town.
- 11:44I'm really you're going to join the Marine Corps.
- 11:45I'm like, yeah, right, whatever.
- 11:47Three days later, he knocks on my door because I shot him a text like I'm done.
- 11:51He's like, let's go.
- 11:52And I quit my job literally two days later.
- 11:54He helps.
- 11:55He called a moving company, helped me pack up my apartment.
- 11:58And I moved in with him.
- 11:59I because I I was drinking.
- 12:01I gained a bunch of weight after football.
- 12:02I was kind of like just lost, you know.
- 12:05And I went from, you know, three-mile time, 30 minutes, down to 19.
- 12:09I joined the Marine Corps and did that for 8 to 10 years, and I never looked back.
- 12:13And after the Marine Corps, I got off active duty four and a half years at this point.
- 12:18It was the next big transition in my life, and that one was even harder.
- 12:20It hit me like a break.
- 12:21For all the veterans listening out there, you probably relate.
- 12:24You get out.
- 12:26You do it for so long and you get out to the real world and you're like, man, what the hell is this?
- 12:31You're like, what do I do with my life?
- 12:33And I took a six-month hiatus just trying to figure it out.
- 12:37And my best friend, my other good friend who I played college football in, he ran one of the largest home remodeling companies in Austin.
- 12:44Their $100 million office called Power Home Remodeling.
- 12:47He's like, Kyle, you're not doing anything.
- 12:49Why don't you come work for me?
- 12:50I'm like, all right, what do you want me to do?
- 12:52He's like...
- 12:53you're going to come knock doors for me and generate leads for my sales reps.
- 12:56He's like, it's something for you to do.
- 12:57I'm like, okay, whatever.
- 12:58So I come fresh off the boat, my last deployment, leading 160 Marines on my last deployment as, as you know, as an officer to my first civilian job, knocking on doors for a roofing company, getting spit on and screamed at.
- 13:10My first week I got a guy pull a gun on me.
- 13:11I'm like, I'm right back where I need to be.
- 13:13This is awesome.
- 13:14And I, I,
- 13:16What that taught me, it, it, one, it, it helped me transition from military civilian life, but two, it, it gave me, it built, helped build the skills that I need to like be successful.
- 13:26Not only, not only in like society, but in the service business.
- 13:28Cause if you can go around and knock doors for a roofing company, really successful, you, you can, you can do anything, you know, it's, you gotta be pretty fearless when it comes to that.
- 13:35So I.
- 13:37I did that.
- 13:37I became the number one sales rep in the company of like 3,000 sales reps. Made more money I knew what to do with.
- 13:42I started my own roofing consulting business after that and went to go sell for a bunch of local mom and pop shops because they need to get sales reps. And I saw private equity get involved.
- 13:50I started rolling up roofing companies, the guys that I consulted for, and everything went to crap.
- 13:56And I didn't want to be dependent on an industry that's dependent on the weather either and insurance companies.
- 14:01So I was like, okay, what's next?
- 14:02And this is actually a good segue to how we got into septic.
- 14:05I want to like also just unpack like how did you – because you've both gone through so many different reinventions.
- 14:11So I want to go into septic, but I also want to understand like advice for people that are in both of your situations because the situations you just spoke about –
- 14:21coming from a family of high expectations, sports and career, and then you going through military, reinventing the civilian life, going through employee, reinventing the entrepreneur.
- 14:32I think you just literally spoke to like a couple hundred million people that are struggling in life and not happy.
- 14:39So like I need advice on how you did this successfully.
- 14:41Can I jump in real quick?
- 14:42Yeah, you can.
- 14:43Because I want to modify, like, I wasn't fully unhappy.
- 14:48Like, I actually liked going through the investment banking side, and I liked what I was doing before.
- 14:52But there was something deep down inside that was like, there is something else.
- 14:57And, like, that's actually the harder, in my opinion, the harder...
- 15:02reason for making a change it's if you're like if you're pretty happy it's way harder to try to try to leave that behind and go for something great because if you hate your life and you hate your job which a lot of people kind of get to that point eventually like it's a little bit easier like okay i'm gonna go like it's gotta be better than this the real hard transition is like i'm sitting in a fortune 500 job i'm making good money you know selling to whatever you know
- 15:23selling to Fortune 500 companies, like doing that whole thing, but to then go and take a leap into media or go take a leap into a septic tank or whatever you end up doing in life, like that actually is the probably more challenging decision to make in life.
- 15:38You don't know what's on the other side until you take the leap.
- 15:41If you're somebody sitting at your job right now, you're not happy, but you have that deep fire inside, like telling you to do something, listen to it.
- 15:48Something great's on the other side.
- 15:49You just have to take a leap and believe in yourself.
- 15:52Cut out what all your parents tell you, what your friends tell you, the pure pressure of society.
- 15:56If you believe in something, just go for it.
- 15:58Just like you, Scott.
- 15:59Did you ever think you were going to be a successful podcast?
- 16:02No, but but you but but you're like, dang, this is this is something that makes me happy.
- 16:06It fires me up.
- 16:07You came from a really demanding family, law enforcement.
- 16:10Dad was in special CIA.
- 16:11I don't know how much I can disclose on the podcast, but everything I've known about you and he was a hard ass.
- 16:16He was a hard ass.
- 16:16Right.
- 16:17But like.
- 16:18He's like, you're doing what?
- 16:19Like, you know, but look at you now.
- 16:21You believe in yourself.
- 16:22You took the leap.
- 16:23And if you never take the leap, you're never going to know what the other side looks like, man.
- 16:28I've reinvented myself so many times.
- 16:31It's not even funny.
- 16:32Football, Marine Corps, a bunch of jobs.
- 16:34People are like, what are you doing, Kyle?
- 16:35But I'm here now.
- 16:36And you'll find the thing.
- 16:37It could take you 20 times to find the thing.
- 16:40You will find the thing if you keep trying.
- 16:42Now listen, a lot of people, this is my biggest issue with everybody who's listening, who will listen to this and not do shit.
- 16:49Yes.
- 16:49With the information.
- 16:50They'll get motivated for two minutes and be like, no.
- 16:52I'm like, you know what?
- 16:54If you just write down one thing and then do it and you stop listening to my podcast and your life changed, like, you know, job well done, Scott.
- 17:00I'd be happy with that.
- 17:03There's two ideas that are really important.
- 17:06One, you need to take action.
- 17:07And if you're talking about golden handcuffs, if you feel like life's good but not great, doesn't matter.
- 17:12Like you live once, go do it.
- 17:13But the second thing about going into septic in particular and dirty jobs, it's,
- 17:21There's so many options to make money and live a life that you have not thought about ever.
- 17:27And I think that's not discussed enough.
- 17:32How many ways there are to make money.
- 17:36I don't know.
- 17:36I feel like it's like sometimes I feel like I'm oversimplifying.
- 17:40But if you just spend enough time focused on one thing, figuring it out, and you find a way to not have to quit that thing.
- 17:47I don't care if it's septic, podcasting, like outside of maybe you weren't born seven foot five and you're not going to play in the NBA.
- 17:55Most things most people can figure out.
- 17:56They put enough energy and time and resources towards that thing.
- 17:59In our society, we're distracted, you know, and we have this phone and we get motivated.
- 18:05I would say as long as you're curious, if you stay curious and you consistently seek knowledge and consistently try to learn new things, you'll find your thing.
- 18:14It's the golden handcuffs, like torture that, oh, I got this $250,000 a year tech job.
- 18:20I get to drive my Corvette.
- 18:21Everybody, I'm cool.
- 18:22Look at me.
- 18:22But deep down inside, you know, you're meant for something more.
- 18:25It's like, dude, just go do it, man.
- 18:28But I also want to add, there is power in the reinvention because- There is, yeah.
- 18:32Like if I were to put myself on a scale of investment banking, when I was like fresh out of school, I was like, I was at like, you know, mid-pack and, you know, but then I go and do marketing.
- 18:41I was like the guy who was the marketing agency owner that also knew investment banking.
- 18:46And I put myself in this like nice little category.
- 18:48And then we get into septic, which we haven't really talked about a whole lot.
- 18:51But like now we're all of these things that kind of- But does experience come?
- 18:56It's like that's where the magic is.
- 18:58Like the magic is actually in the reinvention because with your Fortune 500 experience, you can go land HubSpot as an advertiser.
- 19:06LinkedIn as an advertiser.
- 19:08Hewell as an advertiser.
- 19:10But not everyone can do that.
- 19:11Like it's because you can go sell and you have that meta skill set that puts you in the room with these huge companies and you're like,
- 19:18Yeah, this audience that's listening to this most valuable audience in the world.
- 19:22Literally, there's not a more valuable audience than what you have.
- 19:24People looking to make a change in business like that's there's nothing bigger than that.
- 19:29Still, I need to know.
- 19:30I need to understand because you all the different mental models that we're talking about.
- 19:35These are things that you both live.
- 19:37So what's interesting to me is, I don't know, maybe you'd listen to a podcast or had some inspiration, but I always like to understand why do Chad and Kyle look at the world differently than 99% of people?
- 19:48Why were you able to reinvent yourself repeatedly, go into an industry that really nobody has ever thought about going into when you didn't have parents that were in it, didn't have like a friend that was like, hey, I just had a hundred million dollar, billion dollar exit in septic.
- 20:00Like without the influence, people rarely take action.
- 20:03So what happened in your lives?
- 20:05Call me crazy.
- 20:06I don't know, but I've always loved, ever since I was a little kid, it started with sports.
- 20:12And I was never the fastest.
- 20:14I was never the strongest.
- 20:15And everybody always told me no.
- 20:16Every time I would like speak things into existence, like, no, Kyle, you can't start on varsity as a freshman.
- 20:20No, Kyle, you can't do this.
- 20:21No, Kyle, you can't go play college football.
- 20:23I wanted to prove people wrong.
- 20:25And I always want to put myself in the hardest environments possible just because I'm crazy.
- 20:30I always want to surround myself with people who are better than me, just consistently push myself.
- 20:34And to answer the question, like I.
- 20:38Again, call me crazy, but I put myself in positions to get my ass kicked.
- 20:42And through those ass kickings I've had every single year, it's built the calluses to help see the world in a different life.
- 20:47But if you're not willing to put yourself out there and get your ass kicked and actually enjoy it, like it's probably not for you.
- 20:54Entrepreneurship is probably not for you because it's not for the weak and it's been hard.
- 20:58This hasn't been an easy journey at all, but I enjoy every single minute of it.
- 21:03It's exhilarating.
- 21:04And someone who's listening to the success podcast here, the success story podcast, halfway through, you're already in your own rarefied territory.
- 21:13Like to be here listening to this right now puts you in a spot where you could have watched TikToks and scrolled into some deep, dark meme cave.
- 21:23I want to give people credit, too, for what they're doing actively as, like, they're listening to this.
- 21:27Because, like, there's so much distraction, which we're talking about.
- 21:31But to listen to long form, like you have here, and to really ingest this.
- 21:35Like, the only reason that we're on this, there's a guy named Richard Sloss.
- 21:38We call him number uno.
- 21:39Shout out Richard Kansas City.
- 21:41Yeah, and he was, like, he, like, sent us you, and he was, like...
- 21:45I have to go buy him a beer.
- 21:47We do need to buy him.
- 21:49He likes beer.
- 21:49He was like, this guy's legit.
- 21:51Like, the people that he interviews are insane.
- 21:53Like, he was talking about, like, all the things that you've talked about throughout these.
- 21:58And then the through lines, which I think there's the entrepreneurial through line, the bet on yourself through line.
- 22:03Like, being able to just, like, go out.
- 22:06We were talking in the preamble here, like, to be aggressive.
- 22:09I think as a characteristic in a lot of...
- 22:13like places in society being aggressive has been like something that you're like oh you can't can't be too aggressive like you can't want it that much but like you were talking about you want to get your ass kicked like that's an aggressive statement and i think there are realms where that degree of aggression is warranted septic is one of those certainly but like just aspects of business if you want something go after it aggressively
- 22:34Well, I know we still haven't answered the question how we got in the septic.
- 22:36I don't even know what's the question.
- 22:37Oh, that one.
- 22:39Which I could segue into that.
- 22:40Go for it.
- 22:40Okay, so how we got in the septic, finally.
- 22:44Tangent, tangent, tangent.
- 22:47So it came.
- 22:47So again, four and a half years ago or so, I got a factory Marine Corps, went into roofing, was making a transition, and I was done with roofing.
- 22:55Insurance companies raising premiums 2%.
- 22:57Everybody and their mom, there's no regulation or rules for roofing.
- 23:00So anybody with a hat and a shirt and a truck can start a roofing company, especially in Texas.
- 23:04There's no license requirement.
- 23:05It's the Wild West.
- 23:06And I was like, okay, well, I need a little bit more something defensible to bet the next 20 years of my life on.
- 23:13Ironically, true story, my neighbor at the time, sweet old lady, she's like 72 years old.
- 23:18I see this truck roll in.
- 23:20It looked like something out of a horror movie.
- 23:21It was rusted to all get out.
- 23:23Had no sign on the side.
- 23:25The guy that got out had no teeth.
- 23:27Smelled like pot.
- 23:27Like literally opened the door.
- 23:28Just whoosh, right in your face.
- 23:30And I'm like, okay, well.
- 23:32I fixed that.
- 23:33And then he took 15 minutes, pumped out one portion of the tank.
- 23:36No, we don't know now.
- 23:37All you pumpers out there, you know, you just don't pump one section of the tank.
- 23:41Left, charged her $1,500.
- 23:44And she was like freaking out.
- 23:45She's like, I don't know what to do, Kyle.
- 23:46So I followed him.
- 23:47I found him at a gas station.
- 23:48I said, hey, brother, you need to come back and finish your job.
- 23:50I convinced him in a very nice way.
- 23:52To come back and finish.
- 23:53So he was just scamming old ladies.
- 23:55He was scamming everybody.
- 23:56But this is the septic industry.
- 23:58And I'm like, I can fix that.
- 24:00And this is like, I don't care what it is.
- 24:02Septic, you know, carpet cleaning.
- 24:04It's like, okay, I can fix that.
- 24:06That's what I can fix.
- 24:07So I went to Chad.
- 24:07I'm like, Chad.
- 24:09This is it.
- 24:10I do guys know each other.
- 24:11We're brother-in-law.
- 24:12Yeah, yeah.
- 24:12Oh, that's right.
- 24:13Okay, so you're, okay, I understand.
- 24:14Our wives are sister, not married.
- 24:15I used to say our wives are married.
- 24:16It got really weird.
- 24:17No, I corrected it.
- 24:19We're not in a polygamous situation.
- 24:21That got me thinking.
- 24:22I'm like, then I went to my wife, and I bought the truck before I even got Chad involved, by the way.
- 24:27Did you even get Natalie's permission?
- 24:28No.
- 24:29You're still an investment banker.
- 24:30So at that point, Markie and Asia.
- 24:32Markie and Asia, okay.
- 24:33marketing.
- 24:33So I, I will on a whim, on a whim.
- 24:35I'm like, this is it.
- 24:36Boom.
- 24:37Light bulb.
- 24:37I called my Mac daddy, Mike, shout out Mac daddy, Mike, uh, who's our Mac dealer.
- 24:42He's a character.
- 24:43He'd be an interesting guy to have a show, but I'm like, make me a septic truck.
- 24:47I don't know what I'm doing.
- 24:48Go.
- 24:48So what did I do?
- 24:49I bought the most expensive,
- 24:50Expensive septic truck.
- 24:51I got raked over the coals on the first one still have it Really great, but I didn't know anything about it.
- 24:56We we put a really cool brand on it I wrapped it I was watching YouTube videos on my way to my first pump out We put a little Google map location had no idea what I was doing and first call comes in.
- 25:06I'm like, oh my god Like yeah, sir.
- 25:08He's like hey man, I need it pumped out.
- 25:09Can you make it out here?
- 25:11You know in the next couple I was like, yeah, sure man.
- 25:12I got you covered.
- 25:13He's like how much you charge?
- 25:14I'm like, I'm
- 25:15I don't know, like, yeah, 500 bucks.
- 25:16She's like, yeah, done, come out.
- 25:18And I was like $300 less than like everybody else in the area, you know?
- 25:21And I was like, okay, what am I doing?
- 25:23Watching YouTube videos.
- 25:24I show up.
- 25:24I'm like, oh, there's the green lid.
- 25:25Let's unscrew that.
- 25:26And I did it, and I got paid, and I was hooked.
- 25:29And, I mean, I don't know if we talk about like where we're like going to that.
- 25:33But that's how we got into it.
- 25:33That's how I literally just figured it out.
- 25:38Well, in the artillery community, I don't know if I can cuss on the podcast.
- 25:41You can if you want, but.
- 25:43You can bleep it out.
- 25:43But in the artillery community in the Marine Corps, it's called Fifi.
- 25:46Fuck it.
- 25:47Fire it.
- 25:47Okay.
- 25:48Fifi.
- 25:49Yeah.
- 25:50It's Fifi.
- 25:50So I full sent.
- 25:52Dispired it.
- 25:53Didn't know anything.
- 25:56I paid $200,000 on a truck.
- 25:58Didn't know what I was doing.
- 25:58And the first month I did $25,000 my first month.
- 26:02Just me behind the truck.
- 26:03Based on YouTube videos.
- 26:04On YouTube.
- 26:05Me just learning out on the fly.
- 26:06I do.
- 26:06Yeah.
- 26:07Yeah.
- 26:07And then you can go into the rest.
- 26:08But that's how we got into the septic industry.
- 26:09I think technically it wasn't 25.
- 26:11It was like 22 and change.
- 26:12Because we're under this whole like FDD, like because it's franchised now.
- 26:16And so like.
- 26:17We got to be careful.
- 26:18And then, and then it was like 56.
- 26:20I get a little lower.
- 26:22Yeah.
- 26:23Okay.
- 26:2454.
- 26:25And then it was like.
- 26:26I don't, I don't know the difference.
- 26:27So like if you get yourselves in trouble from.
- 26:29Yeah, no, no, it's okay.
- 26:30No, we will.
- 26:31We always toe the lines.
- 26:32We got a legal team.
- 26:34It was a million dollar run rate in the first 90 days of business.
- 26:37And it's like, oh, damn, the trades?
- 26:39You're telling me I worked like how long to get to a million dollars?
- 26:42I worked years to make an agency that was doing a million dollars.
- 26:45By the way, you're talking about your franchise disclosures.
- 26:48Yeah, that's what we're talking about.
- 26:49I understand.
- 26:49Yeah, yeah.
- 26:50Okay.
- 26:50Which we're in the clear on all that stuff.
- 26:52This is in the clear, public record.
- 26:54We already have soiled.
- 26:56We're safe.
- 26:57But the point is, in 90 days, you had a million dollar.
- 27:01So run rate.
- 27:02Run rate.
- 27:02Run rate.
- 27:03Okay, okay, okay.
- 27:04And so that's where.
- 27:05So like 83.33.
- 27:07Yeah.
- 27:08That's incredible.
- 27:09But this thing was, and this thing was.
- 27:10And it's a recurring revenue business.
- 27:11So there's, well, yeah, that's a great, great segue.
- 27:14There's five pillars to the segment.
- 27:15Got a lot of questions.
- 27:16Scott, five here in questions.
- 27:19For those of you who don't know anything about the septic industry, what is septic?
- 27:22Let me give you a brief history lesson on septic.
- 27:24All right.
- 27:25On-site wastewater, all right?
- 27:27Your billion-dollar wastewater treatment facility in Miami that treats all people's poop here in Miami.
- 27:33That same process of trash to aeration to treatment to in your Dasani water bottles, right?
- 27:41That's it.
- 27:42I'm just saying it.
- 27:45There's never an average chance of ever getting a designer sponsor.
- 27:49So straight.
- 27:49They're not owned by Coca-Cola or anything.
- 27:51Don't quote me on this.
- 27:52I believe this is like 82.75% accurate.
- 27:56I don't know.
- 27:57But back in the 80s, I think it was Reagan.
- 27:59I don't know.
- 28:00I don't know my president.
- 28:01I don't know my president's Reagan, not Roosevelt.
- 28:03Roosevelt's way.
- 28:03There's lots of.
- 28:04Yeah.
- 28:05But back in the 80s, every the whole thing was I'm putting it.
- 28:08We're providing.
- 28:09city infrastructure for everybody.
- 28:10We're going to put you on city sewer water utilities.
- 28:12Everybody's getting supported by us, you know?
- 28:15And they figured out real fast it was expensive to take that city sewer line all the way out.
- 28:19So all the people on the outskirts of the city, their water wasn't being treated.
- 28:24So people were getting sick.
- 28:26There were harmful pathogens, viruses, bacterias getting spread into people's drinking water.
- 28:30And like, oh, we need to figure something out.
- 28:32So on-site wastewater became a thing.
- 28:35The same technology that you have in your billion dollar wastewater treatment facility here in Miami is in a package unit in people's homes.
- 28:43It's called Onsite Wastewater Treatment Facility, OSSF.
- 28:47And that is a 100 plus billion dollar a year industry.
- 28:52across the country.
- 28:53People don't realize it.
- 28:54So back to the five pillars.
- 28:56A lot of people think we just pump poop.
- 28:57That is far from the truth.
- 28:59We do.
- 29:00We do that.
- 29:01We do.
- 29:01But there's pumping, which is pillar one, residential, commercial, grease traps and things like that fall into that category.
- 29:07You have maintenance with recurring revenue.
- 29:09So in certain states, and we can get into the craziness of septic across the country, but for high level stuff.
- 29:15Maintenance contracts, certain states, Texas, I can speak for Texas, for example, if you have an aerobic septic system, which is a certain type of septic system, the states and the counties require you as the homeowner to contract with a licensed maintenance provider in the septic side to come out three to four times a year, and it's mailbox money.
- 29:33You go out, you do the inspections, you have to file paperwork with the county to make sure that septic system is not dumping untreated water into the water table.
- 29:40Does that make sense?
- 29:42The third one is repairs.
- 29:43So there's that middle layer of things break on these systems.
- 29:45You go fix it.
- 29:47The fourth one, which is like big ticket items, is new system installs.
- 29:50So for range of reference, like residential installs, you look at, depending on the market you're in, like $20,000 to $60,000 to $100,000 on the residential side per install.
- 30:01And then on decentralized wastewater treatment facilities, on the commercial side, 3,000 gallons per day and up, you're looking at $300,000 to $30 million on that.
- 30:11When you get into that, it's the infrastructure business, right?
- 30:15And anytime you see like a pump truck on the road, this industry is run by small owner operators.
- 30:21There are some that rise to the top because a lot of guys start off in residential and then they get their first commercial job and they get hooked and they totally like just forget about that business altogether.
- 30:30But what sets us apart is we're true full service.
- 30:34We do all five pillars in our business.
- 30:36Inspections was the fifth one.
- 30:37The inspections, real estate for resale inspections is the fifth one.
- 30:40If you go, if you do your market research, pumpers typically only do pumping.
- 30:45It's super fragmented.
- 30:46Maintenance providers only run a maintenance provider service business.
- 30:50They don't do pumping and repairs.
- 30:52Installers only do installs and then inspect.
- 30:55They all kind of all do inspections, but they all refer business to each other.
- 30:58So it's like a good old boys network.
- 31:01But we're like, why do we want to leave all the other revenue on the table?
- 31:03Let's become full service.
- 31:05So if you look at every single septic company across the country, I would say the less than 1% of them are true full service.
- 31:10Is it because it's the case of, oh, it's just always the way we've done it?
- 31:15And then nobody wants to improve, modernize, change, whatever.
- 31:19And that's the opportunity.
- 31:20It's that.
- 31:21And then there's a big barrier to entry in the septic business.
- 31:24Capital equipment, right?
- 31:26Not a lot of people have money to fund, like keep reinvesting into the business.
- 31:30How much to get in?
- 31:31I mean, well, we can talk about the franchise, but if you were just an owner-operator and wanted to buy a used truck, you can buy a used truck for $150,000.
- 31:40Okay.
- 31:41You know?
- 31:41So it's not money.
- 31:42It's not zero.
- 31:43It's not a million.
- 31:45Right.
- 31:45Yeah, but the other problem with this industry is, unlike plumbing, HVAC, electrical, what's the fourth one I always forget?
- 31:51Roofing.
- 31:51Roofing.
- 31:52There it is.
- 31:53There's like industry-wide training programs.
- 31:57There's university technical trade schools for these universities.
- 32:00Plumbing and HVAC and electrical, I think it's 10,000 hours to get your journeyman or 8,000 to 10,000 hours to get your journeyman.
- 32:07So it's like when you get out into the field, you know what you're doing.
- 32:11In septic, talent pool is like...
- 32:14shrunk, right?
- 32:16The amount of time it takes to get your license in the state of Texas, it's a one-day course, and you pass one test, and you have your license within a month.
- 32:23That's it.
- 32:24There's no 10,000 hours to get your license.
- 32:25Then you can do whatever you want.
- 32:27Life at the Speed of Play is a success story partner.
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- 32:40The book is Life at the Speed of Play, Launch Products People Love.
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- 33:24People always ask me how I have time to track what I eat, pay attention to my nutrition when I have a daily podcast, I have a weekly podcast, I have a newsletter, I run a marketing agency, my days are super full.
- 33:33But honestly, that's exactly why I have to do it.
- 33:35See, when you're running that many things, when you are a high performing person, you cannot afford to have your energy be inconsistent.
- 33:42Food is a foundation for everything, for energy, for sleep, for weight, for recovery, for performance.
- 33:46And the days when I'm not paying attention to what I'm eating,
- 33:49I feel it.
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- 33:52I can say what I ate, it has voice logging, or I can point my camera at a plate with meal scan and it figures out what's there.
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- 34:02The app does the work for me.
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- 34:33Every entrepreneur, founder, CEO is listening right now needs to pay attention.
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- 35:32You want to hire somebody, you have to have your own standards or you're going to have like this very wide range.
- 35:38We have core values and we have a higher standard, but the best hires we've ever made in our organization come from outside the industry.
- 35:44And I want to bring it up to, like, the 30,000-foot level a little bit because I know people listen to this.
- 35:48They're like, maybe I'm interested in pumping poop.
- 35:51But I think, like, the business-building side of this is really interesting because when we came into this, Kyle went full send on a truck.
- 35:58And, you know, it was 180-some-odd thousand or whatever.
- 36:01It ended up being a little over – and then –
- 36:04And then all of a sudden the revenue came and ramped.
- 36:06And then you asked the question like, what are the challenges that people have?
- 36:10Like, why isn't everyone full service?
- 36:13My answer, and I come from a marketing background, but it's the ability to generate your own leads.
- 36:18Because a lot of those leads are good old boy, like refer, refer, refer.
- 36:21And if you can come out with a phenomenal brand and marketing, you now control the industry and you can just arbitrage labor.
- 36:29It's like, all right, if I can capture 50% of the leads in this market, then I'm going to get the ability to control where the labor goes and I make my margin off that.
- 36:37And so from an investor standpoint, we've created this phenomenal brand.
- 36:42And the number of door knocks that we get on a week-to-week, day-to-day basis saying, I will write whatever check you want to own a piece of this epic situation is significant.
- 36:51And all the time, because I almost went to private equity, I'm like...
- 36:54Yeah, you can go after.
- 36:55Like, I'm not going to sell to any private equity guy.
- 36:58Although, you know, that's where I get to say that because I was almost one of those guys.
- 37:02But it is something that the respect that we have for the owner operator, the type of guy that's like willing and gal, but willing to go out there and get their hands a little dirty and build an empire by scaling people and, you know, doing all that side is significant.
- 37:15We did want to rip the spirit of what Septic is, that it's owner-operator, small business, somebody who can literally start with a truck and run a million-dollar-plus-year business, starting with nothing, from ground zero.
- 37:27Like, I wanted to give the people that opportunity.
- 37:30Totally.
- 37:30And because no one's ever, no one's ever, like...
- 37:32Oh yeah, Private Equity, they went and bought up all these plumbing companies.
- 37:35And it's so nice.
- 37:36I'm so glad Private Equity owns all that.
- 37:38The only people that win are like the limited partners behind the scenes.
- 37:41Like the consumer loses, the management loses.
- 37:45Like there's one big fat cat winner that sits in.
- 37:48If we decided to go in plumbing, I'm competing against BlackRock and State Street.
- 37:53Like what chance do I have?
- 37:55But you know what?
- 37:56You say that, but I actually think a good chance because just because somebody buys it doesn't mean you know how to run it.
- 38:02I'm dead.
- 38:03Like so many people sell their company and then the non-compete expires and then the person that acquired it sucks.
- 38:10And I mean, look at Dave Portnoy with Barstool Sports or like, that's again, that's a good media business, but there's so many examples of you sell it, the parent company who bought it screws up,
- 38:21And then you either buy it back for pennies on the dollar or you start it again.
- 38:26I just had a podcast with Daniel Lubezki, who's the billionaire founder of Kind Bars.
- 38:31And he bought back a portion of Kind after selling it for, I think, 220-some million dollars.
- 38:37And he made a bet on himself.
- 38:38And now he sold it for billions.
- 38:41Sold it twice.
- 38:42Yeah.
- 38:42And a lot of people sell it.
- 38:44multiple times because just because somebody has capital does not mean they know how to run the business.
- 38:50I redact my statement.
- 38:52Yeah, no, I was actually, so I want to, we'll go more into this, but I was actually, I was just laughing because you're talking about private equity and I'm just wondering how this is going to age.
- 39:05The plans to go public.
- 39:06In five years from now.
- 39:09You only have so many different ways to exit.
- 39:11You could be Tommy Mello and sell it for two minutes.
- 39:13Could be Tommy Mello.
- 39:14Wait, hold on.
- 39:15We never said, well.
- 39:16No, I'll be on record.
- 39:18I'm joking.
- 39:19We can.
- 39:20No, I will go on record saying I hate private equity.
- 39:23I do.
- 39:23They ruin the trades.
- 39:25There's going to be so many people that agree with me, except for the private equity.
- 39:27In fact, the private equity people probably will agree with me in many cases as well.
- 39:30But there are certain alpha and edge that you get by aggregating a bunch of little turtles that you can have a little bit of economies of scale.
- 39:37You can build a real brand.
- 39:38You can bring professional management.
- 39:39You can go in.
- 39:40But ultimately, they're looking to trade.
- 39:42And I think if you can find people like the kind guy that are willing to go long and...
- 39:46play like reinvent a business not just themselves but reinvent business as well like this whole theme of reinvention is something that isn't just for humans it's for these ambiguous business entities the only person that could have turned that situation around i don't know if they were actually fledgling or not the only person to get it back to growth is the founder that founder energy is that is what created that opportunity you have the goal of of building this of epic to over a billion dollars in
- 40:12valuation and maybe one day revenue too, which would be an incredibly sized, a great company.
- 40:19How do you do that?
- 40:20How do you, so this whole industry is fragmented.
- 40:23You said there's like 100 billion, 150 billion dollar opportunity.
- 40:28Who are the big players in this industry?
- 40:30There's like maybe one.
- 40:33Yeah.
- 40:33There's one.
- 40:34And is that a billion?
- 40:35It's a lot.
- 40:36I don't know the revenue number.
- 40:37They've acquired like 60.
- 40:38It is a private equity roll.
- 40:39Oh, yeah.
- 40:40It's called Wind River.
- 40:40It's called Wind River and Dire Manor.
- 40:42Septic private equity specific, like focus?
- 40:45Strictly, if you go on their website, it'll show you all the local companies they've rolled up.
- 40:50Yeah.
- 40:50I think it's like 87 at this point.
- 40:52It's really hard to roll up septic because it is so fragmented.
- 40:55And any business that's doing south of two million is very key man risk.
- 40:59And you would put yourself in a position where you have to find that operator.
- 41:02And so what they've done now, I don't know all 70 entities, but if you can find that north of two million and some recur revenue from like...
- 41:11commercial then you have something of substance worth buying but we have so many people that come into the epic septic like franchise pipeline where they're like i went down a process with multiple other companies just like kyle and i went down processes and then they just disintegrate at the end because the operator gets spooked or it's like what am i going to do now or like i didn't that the ability to get in there's a lot of people that want to get into the most unsexy business ever which is septic
- 41:35And we've made Septic Sexy and we've provided this on-ramp that really is the only pathway for a lot of people, unless you're going to go in and acquire some like $10 million whatever entity, but you really are playing against private equity money at that realm.
- 41:48So when you think like some advice for entrepreneurs, think about how you like think about how you exit the business at some point or what's your plan?
- 42:00Should somebody think about who they're selling to or there's going to be some succession plan?
- 42:05They're going to pass it on to the kids.
- 42:06Like, should somebody think about that from day one or is that something that you worry about later on?
- 42:11I'm going to answer that and give you time to provide an answer.
- 42:14There is the adage, start with the end in mind or reverse engineer.
- 42:18And as much as I want to say that makes sense in an academic setting, did you start with the end in mind when you came to podcast land?
- 42:26No, I did not.
- 42:27Because the end that you would have put would have limited your belief of what was possible.
- 42:32And now you're in the unlimited game of media where you're going and doing billionaire interviews and you have all these crazy opportunities.
- 42:39And so if you were to start at the end of mine, you might actually set...
- 42:43A limiting belief for yourself.
- 42:44A limiting belief for yourself, yeah.
- 42:45But I think the other thing is if you don't enjoy the damn journey along the way, you also are going to just ruin your life again.
- 42:53Like if you leave your corporate job to go and pursue something that some guys on a podcast said sounded awesome, like you could also end up
- 43:02just in the same position that you were before.
- 43:04So I think if you set out to just enjoy a journey and build, build, build, be aggressive, create momentum, create opportunity for your family, you're going to die at the end of the day anyways.
- 43:13And so if you really care about how much is in the bank, like that's a problem in and of itself.
- 43:18And so let's find the infinite game that you want to play.
- 43:20That's what we should really be finding.
- 43:22Yeah, I think my comment on that is just like,
- 43:25As long as you love it and as long as you run hard, run fast, as long as you can until you'll know when the time is to, to, to let it go.
- 43:32Yeah.
- 43:32You know, just like you, like there's going to be a time where you don't want to do podcasting anymore.
- 43:37You're going to have to reinvent yourself too.
- 43:39Like we'll see how this one ages and you know, um, but you're doing something extremely successful now, but 10, 20 years down the road when you have kids, for example, you don't know how our lives have totally been flipped upside down with kids.
- 43:51Like, thank the Lord that we have supportive wives that let us come to Miami on a whim to talk to you.
- 43:57Yeah, that was like a 24-hour, like, hey, we're going to be there.
- 44:01Can I give the real story?
- 44:02We were in our headquarters.
- 44:04Yeah.
- 44:04And Chad's like, it's on.
- 44:06We didn't, this is the same clothes we wore.
- 44:08We didn't pack a toothbrush.
- 44:09We didn't pack anything.
- 44:10We went to the office.
- 44:10Got on a plane and we never came home.
- 44:12Yeah.
- 44:12Yeah.
- 44:12Which is a very wife unapproved thing to do.
- 44:15Like, like, they're like, you forgot your, you forgot your everything.
- 44:18So we, we, I don't know if we should say this, but whatever.
- 44:21So like, we were at a hotel, the hotel, um, mind you, we're brother-in-laws.
- 44:25So like, I was like, kind of like, I really think we should wash our clothes before we meet Scott.
- 44:30This is like behind the scenes.
- 44:31This is entrepreneurship in a nutshell.
- 44:33This is, this is just getting shit done.
- 44:35Getting shit done.
- 44:36And we're like, oh, it's a Nike dry fit.
- 44:37I don't think he'll be close enough to smell me.
- 44:39It's fine.
- 44:40And so Kyle's like, no, no, I think I should, like, wash our clothes before we meet on this really important interview.
- 44:47So he went downstairs in a towel to the little laundry.
- 44:52I acted like I was going to the pool.
- 44:53I had towels around me.
- 44:55We didn't have a change of clothes.
- 44:55I'm like.
- 44:58Looking around the corner, looking around the corner.
- 45:00Okay, we're clear.
- 45:00And I run into the laundry room.
- 45:02Boom, boom, quarter, quarter, quarter, quarter.
- 45:03Run back up, wait 30 minutes, fall asleep.
- 45:05Go down.
- 45:06Yeah.
- 45:07Go down, dryer.
- 45:08And then he, yeah.
- 45:09So we were texting you at like midnight when you're coming back down to Florida in like towels waiting for our same clothes to dry for today.
- 45:16So I was, I thought you guys were flying in early.
- 45:18I didn't know you were already here last night.
- 45:20Okay.
- 45:21We were in Atlanta with one of your guests, John Ostinson.
- 45:25I was at Atlanta this morning.
- 45:26Atlanta.
- 45:26I met with John this morning in Atlanta.
- 45:28He got on a plane, came down here, drove here, and we're about to duck.
- 45:31We listened to the John podcast.
- 45:33That was the one that we listened first of yours.
- 45:35And then he's like, he's the number one business broker in the entire country.
- 45:39I know.
- 45:40He's incredible at what he does.
- 45:41Yeah.
- 45:42And then everyone said on our team, like, yeah, you don't meet John first because he's the guy that you meet after you know what you're supposed to talk about, not supposed to talk about, and you're really refined.
- 45:51And at that point, we just had already booked the flight and we're going there.
- 45:56So entrepreneurship is so messy and so not the way that it's portrayed on social media.
- 46:03It's like everyone thinks it's like so sexy and fun and like you're fucking driving Lambos and all the other bullshit that comes with entrepreneurship, which is not the case.
- 46:13What would be the most important lesson or hardest lesson you guys had to learn building Epic?
- 46:20Because you weren't entrepreneurs, either of you really.
- 46:24Your parents weren't, I don't think either.
- 46:26So this is sort of like your first, I want to like...
- 46:30You guys are killing it.
- 46:31And not just the fact that the job is difficult and the industry is tough, but all the other behind the scenes stuff.
- 46:37It doesn't matter what you're doing, those crazy adventures in a hotel trying to get ready for an event or a conference or whatever.
- 46:43That happens to everybody.
- 46:45Everybody has those stories, nobody tells them.
- 46:47And I think that sometimes people are like, they choose to become entrepreneurs and there'll be a moment where they're doing exactly what you did and they're just like, what the fuck did I sign up for?
- 46:56But everybody I watch on podcasts
- 46:59they always try to be so polished.
- 47:01There's very few people who are willing to be vulnerable on these things, and I'm not afraid to get real and down and dirty.
- 47:08When I first started this business, I was taking two 3 a.m. emergency service calls, waking up while my wife was holding our baby, crying, because I literally...
- 47:19sacrificed everything.
- 47:20I gave up like, you know, I was made high six figures in roofing and I threw all that security away to bet on this.
- 47:27And my wife believed in me.
- 47:28But if you're not willing to sacrifice things, if you're not willing to sacrifice comfort, there's times where I go out in a two, three o'clock in the morning service call and I had the vacuum on pressure and I'd turn it on and I was covered in 20 gallons of shit water at 3am in the morning.
- 47:50Let me hear that story.
- 47:51You know, having panic attacks in the middle of the night, you know, because I'm so stressed because we're growing so fast and I don't know what to do.
- 48:00You know, if you're not ready for that, like, it's probably not for you.
- 48:05And riding the lightning financially, you know, when we first started it, we started eating into our savings real fast.
- 48:12Capital equipment, labor, growth.
- 48:14It goes fast.
- 48:15And you know that as much money as you make, you spend it just as fast.
- 48:19And especially starting in the growth phase.
- 48:21And, you know, we're in a better spot now, but you, you really have to, one, I think the biggest lesson for me, and I've finally started to get better about this is putting yourself first.
- 48:33You got to take care of yourself.
- 48:34If you're going to be the leader that others expect of you to like go through the day and like do a good job, like, you know, go into the gym, eating healthy, eating, eating, eating,
- 48:41You know, you have to take care of yourself first before you can take care of others.
- 48:46You have to be the best version of yourself for your wife, for your child, for your employees.
- 48:50You got to take care of yourself first, man.
- 48:52In the Marines, like it was drilled into me, like put your Marines first and like leaders eat last, like their whole methodology.
- 48:58It starts with you, dude.
- 49:00Like if you're not mentally good, if you're not physically good, if you're not spiritually good, there's no way you're going to be able to go out into the world and conquer and grow a huge business.
- 49:09Because when I first started out, and Chad will tell you, he's my brother-in-law, I see him every – he lives one mile away from me, by the way, down the hill.
- 49:15We see each other every day.
- 49:16It's been a journey.
- 49:19I can go vulnerable.
- 49:20I can actually go real vulnerable on this one.
- 49:23Like, I think the hard part about it is, like, the opportunity cost side.
- 49:26And so, like, you do something and there's, like, oh, like, I'll compare against the former salary I was making.
- 49:31And, like, you feel like, oh, that's a quantified opportunity cost.
- 49:35But then there's, like...
- 49:36the opportunity cost of time.
- 49:38And so you right now live in this pre-kid era of your life that time and space are fluid and infinite.
- 49:47The moment you have this little soul that you have as like this baby, everything becomes so finite because you like, this is for, you start to miss like, I don't actually want to cry, but you start to miss like a few things.
- 50:02Ah, can you say what I was going to say?
- 50:04Chad has two beautiful boys, Rome and Rocky.
- 50:09Um, I've known them since they were born and
- 50:15Chad, it eats Chad alive to be away.
- 50:18And the older my daughter gets, she's a year and nine months now.
- 50:21Like she started to remember things.
- 50:23She started to ask where daddy is.
- 50:25And the fact that Chad's on this journey with me and sacrificing so much time away, missing dinner with his boys, his wife, those precious moments that you remember as a kid when your dad would like throw a football with you in the backyard and play catch.
- 50:40He's missing that.
- 50:41Yeah.
- 50:42I'm missing out on my daughter.
- 50:43My daughter's a little younger at that point, but as they get older and then more time you spend away, that guilt compounds.
- 50:49But that's, those are the sacrifices you make to grow a company.
- 50:54It's like there's, dude, there's, if you want to do something great, it requires great sacrifice.
- 51:03I can talk again, I think, on the switch.
- 51:05Yeah.
- 51:05Are you okay, dude?
- 51:06Thank you.
- 51:07I didn't expect to cry on this podcast.
- 51:08It's not a cry podcast.
- 51:10Do you need a Red Bull or a Magic Mile?
- 51:13I don't know.
- 51:13Whatever you need.
- 51:14No, I think it's heart-wrenching because, like, the opportunity cost of us.
- 51:18I'll try to finish my comment there.
- 51:21Like when you miss something, like because they're evolving so quickly, you can miss like, you're like, oh, I was really busy for this week or this month.
- 51:29And it's like, oh, you miss like some actual life changing things for them.
- 51:33And that's where when you get into kid mode, which hopefully God willing, you'll be in that mode not too long from now.
- 51:40you want to be present for that.
- 51:41And I come from a former business where I got to be present for everything because I worked from home all the time.
- 51:45And so it was awesome.
- 51:46I was like marketing, virtual entity, all the things.
- 51:49But then there was something inside where I was like, I need the big, big one.
- 51:55Like that's where, you know, I've been around a lot of success.
- 51:58I've been a part of a lot of success, but I haven't had the one where I was like, that was me.
- 52:02Like I really wanted to hit a home run.
- 52:04And so that's what I'm going out.
- 52:06And with this endeavor, like we're on the pathway there.
- 52:09But to create opportunity in this world, like going in person like we did, we just got on a plane.
- 52:15Part of the reason, Scott, to tell you like the honest truth and why we didn't book this to the last little bit is like it's hard to book it far in advance because that's when you have to like tell your wife and tell your kids and make the plans.
- 52:26And it feels so much harder.
- 52:27But if it's like I wake up, go to the office and then all of a sudden I like send it.
- 52:31I shouldn't have done it this way.
- 52:32Like send a text message like, hey, we're going to be back not tonight, but tomorrow night.
- 52:36We're going to Miami.
- 52:37And that's not the words they want to hear.
- 52:38Um, but it was easier psychologically for me because it's like, oh, I'm just like gone a little bit longer.
- 52:44I'm not like going to miss as much as kind of where it is.
- 52:47But like, I don't know, I'm kind of going, going on this topic, but the opportunity cost and like, especially when you get a kid, it's like it's going to change the way you operate your life.
- 52:56It totally is gone.
- 52:57I'll add something to that because I think it's important.
- 53:00So I'm well aware.
- 53:02And thank you for opening up because I don't think a lot of people are comfortable.
- 53:07It's easy to say, you know, life's great, building the business.
- 53:11But I see a lot of people on the other side of 30 years of just building the business and ignoring everything else.
- 53:18And they won't say it, but you can see like part of their life is not complete, a majority of it.
- 53:25And I look at people who I sit down with who are wildly successful and have sold companies for hundreds of millions of dollars and some billionaires.
- 53:31And there's sort of like two versions of those people.
- 53:32Like one of them has maintained...
- 53:35the relationship with their kids, their family, their wife or their husband, and the other one hasn't.
- 53:39And the person who hasn't is just not happy and not fulfilled.
- 53:43And they're always chasing and trying to get something back.
- 53:47They let go and they shouldn't have let go of it and forgotten about it for so long.
- 53:51You've interviewed some amazing people.
- 53:54I haven't watched all your episodes.
- 53:55I've watched a couple.
- 53:56Have you learned anything like even off camera?
- 53:59Like what would be like the one thing that you've learned from some of these extraordinary people that you've interviewed on how to balance it all?
- 54:22and you not allowing things to distract you from it.
- 54:26I don't know if that makes sense, but the people that care about things outside of work, they just make it a priority.
- 54:32It's not like their life is easier or there's less commitment on their calendar.
- 54:36They block off time for it.
- 54:37They focus on it.
- 54:39They maybe, you know, they don't go after every opportunity, even if it's exciting, because that thing would conflict with the family thing.
- 54:46And they leave money on the table in some cases because family is important.
- 54:51I think that what I do, and I'm not like super proud of it, but sometimes I want kids.
- 54:57But I don't feel the pain of not having kids yet because I distract myself with work.
- 55:02And that's something that I'm working on.
- 55:04Like I'm consciously, and with Gina, and we talk about it a lot, like we have to create space in our lives.
- 55:10Because if you're single, it's not like, especially when you're building your own thing, it's not like you don't have to have downtime.
- 55:20Like there's always something for me to do.
- 55:22Like if I clear my inbox, which is rare, I can still like find another cool person to interview or I can go through my emails and somebody asked me to go on their podcast or come to this event in this part of the country or even outside the country.
- 55:34Like there's never an end.
- 55:36And all of it usually comes with some form of money or a cool connection.
- 55:39So it's like...
- 55:40But you have to be like, okay, that's not my priority.
- 55:44And if I keep this up, I can keep operating like this for the rest of my life.
- 55:47And then I'll just never have kids and I'll never miss them until one day, like I won't be able to work anymore.
- 55:52And then I'll have all the time.
- 55:53And all I'd be thinking about is why didn't I do this?
- 55:54Like,
- 55:5650 years ago.
- 55:58And I think about that a lot.
- 55:58And I just, you know, I just have to stop distracting myself with work and that's super hard for me because work is a lot of my identity.
- 56:06But I think that's what a lot of people struggle with.
- 56:07And then I just don't, I think I'm fortunate because I have like a, you know, the access to people who were in my position at my age and could have gone in both directions.
- 56:21One being stop working all the time and build out a family and be fulfilled across all these areas of your life.
- 56:28And the other version being I'll have kids later, I'll have kids later, I'll have kids.
- 56:32And I just see the end result of that second person.
- 56:35I just don't want to be it.
- 56:36So then it's very easy for me to make a conscious decision to like not do as much and then have like focus on family and shit.
- 56:42So a lot of the viewers you listen to, I would say all of them, but there's some 9-to-5ers out there that, to your point, have golden handcuffs.
- 56:50With that in mind, what would be your message to them?
- 56:56Somebody who wants to make a jump.
- 56:58I mean, we have an answer to this, but somebody who wants to make a jump to go after something.
- 57:02And are too scared to do that, what would be your... Well, I think you have to know what season of life you're in.
- 57:07So in all seriousness, entrepreneurship is not for everyone, and it may not be for you now.
- 57:12Or it could be, but you've got to figure that out.
- 57:14So if you're going to make a jump, it's not going to be easy.
- 57:18It's not going to be less work.
- 57:21It'll probably be more work for less money in the short term.
- 57:23Yeah.
- 57:25But that's okay because if you do it for 10, 15 years, you'll find a way to make it work.
- 57:30But is that where you're at in your life right now?
- 57:33I think the answer is set proper expectations and know what it's going to take.
- 57:38And if you just had a kid and you don't want to miss these, like I don't have kids, but I have friends with kids, and time goes by very quickly, maybe you don't do that just yet.
- 57:54Maybe you work the 9 to 5 because you have 5 to 9 and the weekend's off and you can spend time with your kid.
- 58:02So don't do what Kyle and Chad did.
- 58:04Do it.
- 58:06I think it's tough.
- 58:07I think, like, listen, there's no right or wrong advice.
- 58:09It's very unique depending on what you want your life to look like.
- 58:12I just think that the worst case scenario is, like, if you don't know what you're getting yourself into, and then you're, like, you hate and resent your life because you signed up for something, you didn't expect it to be this much work, and now you're, like, missing out.
- 58:25Kind of like what you're going through.
- 58:27It's tough.
- 58:27You'll figure it out.
- 58:29But...
- 58:32What you're going through is not.
- 58:34a lot of people would not survive what you're going through.
- 58:37Not like literally, but like figuratively, they wouldn't have the fortitude to deal with it, especially if they're on their own.
- 58:45You have two business partners.
- 58:47Third one's not here right now.
- 58:48We'll get them on the podcast eventually, but you have like friends and peers that can help you through this.
- 58:55Entrepreneurship is super lonely.
- 58:57So if somebody is gonna do it, maybe that's the answer.
- 58:59Maybe share some of the burden, you know, whatever it is.
- 59:03I don't know if that's the best advice, but it's like the advice.
- 59:06It's not going to make somebody feel good, but I don't care about making people feel good.
- 59:12I want people that live a good life that they enjoy and lights them up.
- 59:16I want to double click on a comment and also give you a compliment.
- 59:21One was I thought it was really insightful what you said about the timing.
- 59:25Because the podcast, especially the stuff that I listen to, is like super bro podcast stuff where it's like, the time is now!
- 59:32And it's in a voice.
- 59:33Good.
- 59:36There's nuance to that.
- 59:37Like the time might be soon, but the time isn't always now.
- 59:41Or like if it is like, you know, it's your own journey, but like you got to be conscious of the sacrifice.
- 59:45So I think your comment about like the right timing is very insightful.
- 59:49The compliment that I wanted to give you is like, you are in a very fortunate position through all the work that you've done, where if you get into dad mode, Scott, Scott the dad, what are you gonna call yourself as a dad?
- 1:00:02Dad Scott, Scott dad?
- 1:00:03I guess Scott's the dad.
- 1:00:05I don't know.
- 1:00:05Scott's the dad.
- 1:00:06I guess.
- 1:00:06I don't mind that.
- 1:00:07We'll put him on to it.
- 1:00:09But now you're like putting on this like new identity because you have Scott the podcast success story.
- 1:00:15And that's something that's like grown as a media empire quickly but also slowly at the same time.
- 1:00:21It's like the 10-year overnight success.
- 1:00:23I think it was 2019 was your first endeavor in there.
- 1:00:26And so, yeah, to be able to do in seven years as much as you have.
- 1:00:30Like if you were to actually –
- 1:00:32take a paternity leave as they call it in like the normal nine to five like you could actually do it and like you could Scott the podcaster could still you could put that back on and no one would know the difference like you could go out have a baby spend six months being Scott the dad and learning what that new coat of armor feels like and there's not everyone that gets that luxury so the fact that you've been able to accomplish what you have and feel confident in what you've accomplished.
- 1:01:00is like a really blessed and fortunate opportunity that you have.
- 1:01:03So it's a compliment.
- 1:01:03Yeah, you've built something where you're able to, like whenever the time does come, you can just enjoy that time.
- 1:01:10I would challenge you to enjoy it because it's going to be a really big challenge.
- 1:01:13I would say one more thing too.
- 1:01:16And this is actually kind of how you set entrepreneurs up.
- 1:01:18And I think it's actually a really interesting, this is what I was talking to John about with like franchising and whatnot.
- 1:01:25There's so many versions of entrepreneurship.
- 1:01:28So there's versions of entrepreneurship
- 1:01:31where you, I don't really agree, this is the best way to do it, but like you quit your job, you go all in, you build something from scratch.
- 1:01:38This is like the glorified social media, Stanford, whatever, right?
- 1:01:45I think for most people, if they really want to build something, there's easier ways to do it where it doesn't candidly like destroy your life for the first five plus years.
- 1:01:56This is like how you guys set up all your franchise with Epic.
- 1:01:58This is like, you're talking about John, he does this for a living and he's such, it's not just like a plug for franchise.
- 1:02:03There's a lot of other ways to build a business without destroying your life.
- 1:02:07But I just think like,
- 1:02:10Just build a life you actually want and find a vehicle to get yourself there.
- 1:02:14And there's like whether or not it's going into a septic or a random unsexy industry that no one's ever spoken about.
- 1:02:22There's like so many things that you can do to build a life that you actually want to live.
- 1:02:26That is not what Instagram is going to advertise to you.
- 1:02:31Tell them about Richard.
- 1:02:32Our first franchise fits that mold perfectly.
- 1:02:35What's wonderful is Richard didn't even have to quit the big Fortune 500 situation.
- 1:02:39He makes an amazing amount of money.
- 1:02:41And then he's like, I want to build something that my kids can be proud of, which is interesting.
- 1:02:47Kids don't really care about the Fortune 500 thing as much, but when they see mom and dad going out there and building something that they own, there's something intangibly valuable about that.
- 1:03:00And so for the Scots of the dad of the world, so to speak, there's the full send, high risk, potentially high reward of startup, figure it out on your own.
- 1:03:12And then franchising, which...
- 1:03:15The word franchise, like franchising gets a bad rap in certain situations where even Kyle and I were like, are we sure we want to do this?
- 1:03:21Because there's some connotations and some bad apples and all the things.
- 1:03:24But like when you talk about with John, you're talking about like it's kind of its own asset class.
- 1:03:29It makes a sexy spin on an unsexy industry in many ways.
- 1:03:33Creates a playbook where if you were going to accomplish something over a five year period with the right playbook, you know, connections, buying power, marketing power, etc.
- 1:03:42You might be able to accomplish that in two years.
- 1:03:46leave your family like destitute or leave you still can be like chad the dad and like be able to build something where my risk tolerance has to adapt slightly because i'm no longer the guy who graduated from usc that can go and like travel the world and do whatever i want and be remote and like you know that was me like a couple but now i'm like i got rome and i got rock and i my two little boys and like the risk that i take
- 1:04:12It is this compounding lever where if I go and something breaks, it breaks them, which would break me.
- 1:04:18That would break me.
- 1:04:20So that's where the opportunity to do something of like a trodden path of franchising this instance, it's a really interesting opportunity.
- 1:04:30I don't know if you, is that what you want to re-say?
- 1:04:31Well, in the famous words of Josh Cohen, you're in business for yourself, but not by yourself.
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- 1:08:21So you've gone through this, this sort of learning experience, building Epic, and you've, and you've learned, I mean, like, you know, you, you stress about parts of it because it's so hard and it's a lot of work and it takes you away from your family.
- 1:08:35Ironically, it's like incredibly successful and you're growing.
- 1:08:39And I know that you're on a couple of different shows, you were talking about like a playbook to get to a billion and you can actually break it down, which is incredibly, you know, any entrepreneur, oh my God, this is exactly what I want.
- 1:08:52but the question more is around how do you, if you go back and tell Chad and Kyle when you were just starting out,
- 1:09:02like a piece of advice that would help you decide how you want to be entrepreneurs?
- 1:09:07Like, how do you think through what your life should look like?
- 1:09:09Because I think you would probably, maybe you do things differently, maybe you wouldn't.
- 1:09:13But like, what's that piece of advice for somebody who's now in a job, who is trying to decide, should I start something from scratch?
- 1:09:21Should I stay in my job?
- 1:09:23Should I invest into a franchise?
- 1:09:25Like, how do they, what's the decision framework that you should have done that you hope somebody else would do?
- 1:09:32I don't think there's a perfect decision framework, but it goes back to what you said earlier.
- 1:09:36Knowing what phase of life you're in, number one.
- 1:09:39Doing an audit of yourself, number two.
- 1:09:42Write it down.
- 1:09:43Write your pros and cons.
- 1:09:44Where am I at financially?
- 1:09:46Where am I at spiritually?
- 1:09:47Where am I at at this phase of my life?
- 1:09:49Do I have the ability to do this?
- 1:09:52But at the end of the day, no time to jump is perfect at the end of the day.
- 1:09:57There's no decision matrix.
- 1:10:04box.
- 1:10:04There's no perfect way to do it.
- 1:10:05And I would just say it comes down to knowing yourself, doing the research, whatever industry you want to go into, do diligence.
- 1:10:13Do not do what I did and just buy a truck and figure it out on the web.
- 1:10:15There's so much information out there.
- 1:10:17We live in the most amazing, amazing, I almost sounded Canadian there for a minute.
- 1:10:22But we live in the most amazing time in history.
- 1:10:25There's so much information out there for you to make educated decisions.
- 1:10:28We have AI.
- 1:10:29We have all these tools.
- 1:10:30Like, leverage that.
- 1:10:32Learn that.
- 1:10:32Like, do so much due diligence.
- 1:10:34You know that industry backwards and forth before you even make the jump.
- 1:10:38There's so – like, don't go blind like I did.
- 1:10:40If I just took, like, six months to do, like, deep dog – like, the way I do diligence is the Marine Corps way to do diligence.
- 1:10:45Just run head first and figure it out later.
- 1:10:47He's a little bit different.
- 1:10:48But, like –
- 1:10:49Like, do your research.
- 1:10:51Do diligence and get to a point where you feel confident enough to make a leap.
- 1:10:54But at the end of the day, it's going to have to be on you.
- 1:10:56You're going to look at yourself in the mirror and be like, I'm doing this shit or I'm not.
- 1:10:59Like, it's going to be a personal decision.
- 1:11:01I'll take a swing at that question because I think it's a good question.
- 1:11:03The...
- 1:11:05There was one point in my life where I had like five really good tangible decisions, each one of which would have changed my entire direction of my life.
- 1:11:14And that was what was making my college decision, which I'm assuming some percentage of your audience is in that world.
- 1:11:18But you can make the same setup for business because a lot of people run into a situation like...
- 1:11:22It could be an epic franchise.
- 1:11:24It could be an ice cream parlor.
- 1:11:25It could be a podcaster.
- 1:11:26It could be whatever.
- 1:11:28You have lots of exciting opportunities.
- 1:11:29How do you figure out which one of those opportunities to really run at?
- 1:11:32Because what we were talking about before is like, run aggressive, run for a long distance.
- 1:11:37This is like a big decision to make.
- 1:11:40Now, for me, I had a stepmom at the time where there was a lot of problems with her.
- 1:11:45She was cheating on my dad and all this stuff.
- 1:11:47But she gave one really fabulous piece of advice.
- 1:11:51But that was really good advice.
- 1:11:52Yes.
- 1:11:54That piece of advice is like...
- 1:11:56All right, Chad, you're sitting here and you're looking out at all of these decisions.
- 1:12:00And so I was looking at the I was looking at Notre Dame, which in Midwest is like the equivalent of Harvard.
- 1:12:05It's like Harvard and there's Notre Dame at the same level.
- 1:12:08And then I also had Boston College.
- 1:12:10I had Northwestern.
- 1:12:12I got, I wait, well, I wanted to go to University of Pennsylvania, go to Wharton.
- 1:12:16I got denied by them.
- 1:12:17So I didn't care about my decision anymore.
- 1:12:19And now I went to like a football competitor of Notre Dame, USC, which a lot of people on the East Coast are like, cool, that's South Carolina.
- 1:12:26I was like, no, the West Coast version, like it's the Southern California, bougie rich kid version.
- 1:12:31And so that's where my, I couldn't make the decision.
- 1:12:34It was a really hard decision for me to make.
- 1:12:36And my stepmom in her finite wisdom in this moment, she's like, okay.
- 1:12:41In your brain, Chad, like, make the decision, like, go through the decision mentally.
- 1:12:45And so, you know, imagine yourself a year from now at Notre Dame, imagine yourself a year from now at USC, and all of a sudden, like, everything faded away.
- 1:12:55And I was like, this is...
- 1:12:56The only place that I want to be in my life is like sunny Southern California.
- 1:12:59I was from Minnesota.
- 1:13:00So maybe it's like my inner Canadian that was like viasing this decision.
- 1:13:04But like it was the one that had the right level of football with the right amount of AP credits with all these different things I evaluated.
- 1:13:11But if I like ripped my head off and I took, you know, like I no longer was thinking about the decision.
- 1:13:15I was feeling the decision.
- 1:13:17That was where it was completely obvious.
- 1:13:19I have to go to USC.
- 1:13:19Yeah.
- 1:13:20And I loved it.
- 1:13:20It was the best decision.
- 1:13:21I met my wife there in ballroom dancing class.
- 1:13:23My entire life would have been so different had I gone to Notre Dame.
- 1:13:28I ended up Catholic anyways, but I wasn't even Catholic at the time, and I somehow found my way to Catholicism through that.
- 1:13:33So this is kind of my way of making decisions, might be to rip your head off and think about that future state of heart.
- 1:13:40It was also like also knowing where you're at in life.
- 1:13:42Chad was 18.
- 1:13:43He's like, let me close my eyes.
- 1:13:45I'm going to be Southern California, hot chicks,
- 1:13:47Let's go.
- 1:13:49When I came, it was like, be real.
- 1:13:50There was literal sunbathing.
- 1:13:52There was sunbathing in the quad.
- 1:13:53It was like out of a movie.
- 1:13:55You were just sick of wearing it.
- 1:13:56If you went to Notre Dame, everybody's covered up and cold.
- 1:13:58You know, it's boring.
- 1:14:00I know.
- 1:14:00Do you mean oyster Notre Dame?
- 1:14:01Just like Minnesota.
- 1:14:02Yeah, you're from.
- 1:14:04I want to break down how you build a business to a billion dollars in revenue and break it down in a way.
- 1:14:12Because if somebody says, oh, yeah, I wish my business was a billion dollars in revenue, but...
- 1:14:16The only other person I've actually heard do that, ironically, was Tommy Mello, who broke down exactly how he's going to build.
- 1:14:24I was listening to a reel that he did two years ago on School of Hard Knocks when he literally said, I'm going to be a billionaire in two years.
- 1:14:32And now he just sold for $2 billion to KKR.
- 1:14:34So congrats, Tommy.
- 1:14:35Selling.
- 1:14:35Or is that done?
- 1:14:36Selling.
- 1:14:36Selling.
- 1:14:37Yeah.
- 1:14:37Not finished transaction yet.
- 1:14:39It depends when this airs.
- 1:14:41Yeah.
- 1:14:42It's what I had been.
- 1:14:43Knock on wood.
- 1:14:44I like him a lot.
- 1:14:44Give Tommy a round of applause.
- 1:14:47Tommy, good job.
- 1:14:47He skilled it.
- 1:14:49And he broke down.
- 1:14:51While I was looking at some of the podcast clips, because he was on the show about a year ago, and there was another one that pulled up, and it wasn't School of Hard Knocks.
- 1:15:01He was on another show, and he was talking about how he broke down to his managers.
- 1:15:06He said to his managers in the room, we're going to be a billion-dollar company.
- 1:15:10And not billion dollars in terms of valuation, billion dollars in revenue, which is a wild amount of money.
- 1:15:22And he said, what I need is I need, I think he said, how did he say?
- 1:15:27He said he needs 2,000 techs doing half a million dollars a year.
- 1:15:33And if 2000 texts do half a million dollars a year, then let's work backwards from that.
- 1:15:38And let's figure out, okay, so for that, how many recruiters do we need?
- 1:15:42And he had mapped out, like he reverse engineered exactly to the employee, to the activity, to the task, how to turn 2000 texts and $500,000 a year into a billion dollars in revenue.
- 1:15:56And it just was so clear.
- 1:15:58And I mean, this is the mind that you have to have to exit for two billion plus, which he's on his way to do.
- 1:16:04So you were speaking about how to build your company to a billion dollars in revenue, and I want you to break down how you think through it, because just by you breaking it down, I think that's how all entrepreneurs should know their KPIs.
- 1:16:18And it makes these revenue milestones, goals, KPIs, like way more manageable.
- 1:16:24But I don't think many people do it properly.
- 1:16:26Know your numbers.
- 1:16:28Chad is probably the best one.
- 1:16:29He's a number.
- 1:16:30I was a Marine, you know.
- 1:16:31But we're going to approach it a little bit different than Tommy approached it.
- 1:16:36Because franchising, you can still get there.
- 1:16:38It's just different.
- 1:16:40Um, it's still a numbers game at the end of the day, but just chat.
- 1:16:43I'll do quick numbers because then I put the heart behind or do you want to?
- 1:16:46Yeah, no, you go do the quick numbers and I'll just give like, are you public about your revenues now or not?
- 1:16:50So there's parts that we can be public ish about, but we have to be careful on how we talk about like earnings and things like that.
- 1:16:57But, but let's just do.
- 1:16:58We can talk off the record.
- 1:16:59There's a top down and a bottoms up analysis when we get into investment banking in terms of things.
- 1:17:03Tops down is like, we look at a hundred billion dollar industry, can we get 1%?
- 1:17:07Hell yeah, like let's go.
- 1:17:08We can build a billion dollar enterprise value through that.
- 1:17:11But then the bottoms up, which is what Tommy did, cow, I'm so bad at microphones, which what Tommy did, that's really like the more gritty, real road mapped version of it.
- 1:17:21And so for us, if we have 100 franchise locations,
- 1:17:26And these might have varying degrees of territory.
- 1:17:28But there's like 1,000 to 1,100, we believe, especially if we include our Canadian brothers to the north.
- 1:17:34We get a lot of inquiries in Canada.
- 1:17:35Yeah, there's a lot of great septic up in Canada, not surprisingly.
- 1:17:38A lot of Canadians are not living in that grid, right?
- 1:17:42They're off the grid a little bit.
- 1:17:43They have a lot of cottages, a lot of wealthy people.
- 1:17:47Canada is a multi-billion dollar septic industry.
- 1:17:50Yeah, multi.
- 1:17:50It's a great industry.
- 1:17:51It's all septic.
- 1:17:52All of them.
- 1:17:53All these cottages, all these homes in these smaller towns, they're all septic.
- 1:17:56Yeah.
- 1:17:57So if we can include our Canadian brothers there, there's definitely, we're grabbing, let's just say 10% of like the sellable markets there.
- 1:18:06Kyle likes to think about in football terms, it's like, if there's a professional sports team there, we should be able to build a monster in it.
- 1:18:11And then, so now let's just say we found, you know, a hundred, a hundred of these find us is really what the way it goes.
- 1:18:16And then each one of those is going to be doing, now this is where I have to be careful on earnings claims, but that's where like,
- 1:18:23The margin of this business, you can imagine it's a trade business.
- 1:18:27And we're not razor thin margins.
- 1:18:28We're a nice margin in a business like this.
- 1:18:31And so for a couple million dollars worth of revenue, which Kyle kind of go into the revenue trajectory here, you're able to drive a...
- 1:18:39aggregation of these this is where tommy gets to answer better than i do because he was just the guy in all this but in aggregation um if let's just say each one is doing five hundred thousand dollars of profit we now get up to in aggregate we have a hundred of those at fifty million dollars of profit that's coming off of this these are generalizations these are generalizations hard and fast rules that every franchise will hit but this is an average yeah
- 1:19:02I want to answer the question.
- 1:19:03I don't want to get sued after the fact.
- 1:19:05But now you've created $50 million of profit that's coming.
- 1:19:10Let's just call that EBITDA.
- 1:19:12And then when you look at trade multiples, now Tommy's multiple is probably significant.
- 1:19:17He's got a point.
- 1:19:17Yeah.
- 1:19:39Just like Epic, you could envision an opportunity where it's not just septic, it's all these other things in this Epic universe.
- 1:19:45Sounds like a comic book.
- 1:19:46So long story short, 100 franchisees, which we know we can close to 100 franchisees, doing a scaled version, which Kyle will talk about how that scales, where they're getting $500,000 a year of profit.
- 1:19:58We've created a system that's doing a billion dollars of realistic enterprise value.
- 1:20:03Now, that's where, Kyle, I've wanted to give it over to you because you can go through growth mode on this.
- 1:20:06You probably have things to add on it.
- 1:20:08We did an analysis of the entire country on hot septic markets.
- 1:20:11I think it's like 1,000 to 1,500.
- 1:20:12Like 1,500, right?
- 1:20:14If I ever have one truck in every single one of those markets, there's a million dollars in revenue potential in each one of those markets.
- 1:20:22And there's 400 million people in the United States.
- 1:20:24I just have to find less than a percent of that.
- 1:20:27And that turns you into a billion dollar.
- 1:20:29Yeah, absolutely.
- 1:20:30Yeah.
- 1:20:32And it's something that I know I want to be a little bit more transparent on this, but that's where because we're under all these FDD regulations, there'll be this is a good reminder.
- 1:20:41Maybe we just disclose how we do that on our FDD.
- 1:20:43Yeah.
- 1:20:44But anyways, that's where.
- 1:20:46Well, I think, no, but you it's not it's not a bad idea because also people listen to this.
- 1:20:52We just spoke about the fact that they are looking for like different ways to entrepreneurship.
- 1:20:57So.
- 1:20:58What we just really spoke about was, okay, you want to start your things from scratch?
- 1:21:01Cool.
- 1:21:01You want to join a franchise or you want a different way to become an entrepreneur?
- 1:21:05That's also cool.
- 1:21:06Yeah.
- 1:21:07There's various degrees of risk, of time, of energy required to do both.
- 1:21:12And like pure entrepreneurship, building Epic from scratch, or a version of Epic, or it doesn't have to be in septic, is like the most extreme version of entrepreneurship where you give your whole life to this thing.
- 1:21:23So maybe it's important to also break down like the alternative path, which is, okay, if you want to join a franchise,
- 1:21:30What are the margins?
- 1:21:31What does it mean to join a franchise?
- 1:21:32What's the difference?
- 1:21:33What's the risk?
- 1:21:35Because not everybody knows what a franchise even means versus just starting.
- 1:21:39I'm going to answer it.
- 1:21:40He's going to actually answer it.
- 1:21:41But some serve pros of franchise that I respect, within these mega franchise brands, you have these mega operators.
- 1:21:51You can run a $100 million enterprise company under a franchise business.
- 1:21:56For example,
- 1:21:57There's the Olsen, shout out Olsen, Olsen, Team Olsen in ServPro.
- 1:22:02He, I think, I forgot where he started.
- 1:22:04I think he started off in Colorado.
- 1:22:06But from there, he started like acquiring territories.
- 1:22:09What does he do?
- 1:22:10Sorry.
- 1:22:10ServPro is restoration.
- 1:22:12Okay, cool.
- 1:22:12Restorate ServPro, like the green trucks are down here.
- 1:22:14They're all over Florida, I'm sure.
- 1:22:16There's a lot of hurricanes down here.
- 1:22:18But he bought one territory, and then he went bonkers and grew it to scale.
- 1:22:23And he runs, I believe it's over $100 million in enterprise value and just his ownership in ServPro.
- 1:22:30And there's these companies.
- 1:22:31I forgot what Josh said, but...
- 1:22:34Within these franchise organizations, like there's these investors that these entities that go public that own franchises.
- 1:22:40Because I think when people think franchise, they think that they're playing small.
- 1:22:44But this is what you're saying is not the case.
- 1:22:47So the episode where John talks about how the big investor mind individual goes at this with the alternative asset class.
- 1:22:53And that I think is an interesting lens to view it through.
- 1:22:56Because you can also look at it as like an interesting degree of diversification where it's like you have your 401k, you may still have your Fortune 500 salary, and then you've created this new path of income through a franchise brand and it lends itself well to individuals who have...
- 1:23:12like other things going on because there's this nice playbook you install a gm the gm runs the playbook you add your value in the way with your connections your on your mentorship your things but when we look at how we can add value systemically i.e as a franchise there's a couple of things that we look at and this is the big three is like the technology the brand and lead generation and then you get into the systems the processes and the training the playbook
- 1:23:36There's some other things that we do around that.
- 1:23:38But the technology, we have this whole epic operating system that helps out with maintenance contracts.
- 1:23:42It's AI enabled.
- 1:23:44It brings down the administrative costs.
- 1:23:45It's awesome.
- 1:23:46The second thing that we have is all like the marketing demand generation.
- 1:23:50I come from a world with...
- 1:23:51my own marketing agency where my clients were harvard university and go daddy i helped the guy get a grammy nomination and worked in the music industry and that's where brand marketing all that like you you better be getting that if you're going into a franchise system just like mcdonald's if you open up a mcdonald's which we walked by one on the way here people walk in the door just because it's mcdonald's and they're you know they're hungry
- 1:24:13And they do a lot of advertising for that.
- 1:24:16And so that's another thing you're paying for.
- 1:24:17I need demand generation.
- 1:24:19And then the playbooks and the training and the systems and the processes.
- 1:24:21So for us, we have this like marine that's involved.
- 1:24:24So we're able to use a lot of that same military mindset when we develop SOPs.
- 1:24:29And so we have our sit rep in the morning that our driver sends to make sure his day is going to be fully optimized.
- 1:24:33And that playbook, we're talking about the investor mind who can invest.
- 1:24:36install the GM or maybe your own GM at the beginning and you spin it up for a couple months, couple years, and now you install someone to replace yourself and now you're really humming and maybe you're Team Olsen and you're starting to aggregate other operators in your own system.
- 1:24:49And so you can imagine a world where even within this mothership, I think the other one that you look at is like 7-Eleven.
- 1:24:55That's like a minnow eating whale situation where you had 7-Eleven, which was fledgling in America, and then you had Japan where these guys were crushing in Japan.
- 1:25:04And they had a totally different way of working with their franchise, like their franchise brands.
- 1:25:08They were there and kind of let them do their own thing.
- 1:25:10And all of a sudden the Japanese were like, oh, we're just going to acquire all of America.
- 1:25:14And now this is like it's an amazing story.
- 1:25:16Like that literal franchisees went and acquired the franchisor.
- 1:25:20I think that, I mean, that is, I didn't know that story.
- 1:25:25I did actually, I had no idea that happened.
- 1:25:27Look into the 7-Eleven story.
- 1:25:28It's nuts.
- 1:25:29I have a lot of respect for 7-Eleven.
- 1:25:31If you go to their merch store, they sell like diamond encrusted 7-Eleven.
- 1:25:34They do all this stunt marketing, which is kind of my world.
- 1:25:36I didn't know this at all.
- 1:25:37The cult of 7-Eleven is significant.
- 1:25:38Yeah, dude.
- 1:25:39Yeah.
- 1:25:39It's crazy.
- 1:25:40You go there and like, yeah, this will be a good onscreen segue thing.
- 1:25:43But like shout out to 7-Eleven.
- 1:25:45I've never shouted them out before, but that's where I don't even shout anything out because I don't have an audience.
- 1:25:50Shout out the pizza and corn dots at two in the morning.
- 1:25:53They put their sushi and they have all the.
- 1:25:55I've been to 7-Eleven in Japan.
- 1:25:57You have.
- 1:25:57It was amazing.
- 1:25:58But I didn't know they I didn't know this whole story behind them.
- 1:26:01All the 7-Eleven lore.
- 1:26:02I had no idea.
- 1:26:03Oh, yeah.
- 1:26:04That should be your next podcast.
- 1:26:05That would be an amazing guest.
- 1:26:06Find that big dog in charge.
- 1:26:07Yeah.
- 1:26:08Whoever pulled that one off, you can find him.
- 1:26:10Well, and what they did, too, not to go too deep in the weeds.
- 1:26:13They created these micro-distributions around regions so that what they have is fresher food that's coming in.
- 1:26:19Because 7-Eleven, the corn dog version, that's what was killing people.
- 1:26:23Because in America, you've got to look jacked like Scott.
- 1:26:25And it's not from corn dogs.
- 1:26:26It's from meat and meat and then more meat.
- 1:26:28But in order to get fresh meat into your local place like you have What did you eat when you're at 7-eleven in Japan did you have anything cool?
- 1:26:36It was like the little like seaweed wraps Rice things with like the tuna in the middle of I can't remember what it's called Anyone know for the audience?
- 1:26:45I'm supposed to I lived in Japan for a year and so I'm supposed to know I forgot the name but lived on this delicious Yeah, but all of all of it was fam delicious um
- 1:26:54But that's where they brought that model to America.
- 1:26:56That model didn't exist.
- 1:26:57They innovated that model of bringing freshness from these little distribution all the way out there.
- 1:27:01And so America, they're doing that same playbook where they're bringing in more food, which 7-Eleven.
- 1:27:06Well, I had Jim Keys on, who was the old CEO of 7-Eleven and CEO of Blockbuster, but we didn't go into that part of it.
- 1:27:14We didn't go into that part of it.
- 1:27:15But like how 7-Eleven in Japan is like a massive logistics business.
- 1:27:21So they're fresh shipping like multiple times per day, which is why the food taste.
- 1:27:26I don't know if 7-Eleven in the U.S. has the same.
- 1:27:30They're trying.
- 1:27:30They're trying, but it's hard.
- 1:27:31The U.S. is massive, too.
- 1:27:32Like you're not on a little baby.
- 1:27:34Japan's a big island, but yeah.
- 1:27:36No, no.
- 1:27:36Smaller in terms of geographical footprint than the U.S., yeah, for sure.
- 1:27:40For somebody that's listening to this, because this audience is split, half of them are in a nine to five.
- 1:27:45The other half of them.
- 1:27:47Most of them are looking at entrepreneurship in a traditional sense, like they're trying to figure out how to start a business from scratch.
- 1:27:54I want you to leave some sort of last words of wisdom for both groups.
- 1:27:58So the person who's in the nine to five right now who probably has thought at some point about starting a business but has shied away from it, or the person who is building something right now and is just trying to build from scratch and it's not working out.
- 1:28:10What is the last piece of advice, words of wisdom you want to leave both of them?
- 1:28:15let me answer the nine to five one because there's a lot of people who think and they're great at thinking and then for whatever reason they don't do because I think the nine to five is something that is probably the most powerful unlock of it's the most powerful unlock of potential there's so many individuals that have so many amazing skill sets and they're stuck in some corner of some monolithic company where it's like man I never thought it'd be so good at like HR implementation of some ER I don't know what this is it helps them realize
- 1:28:44their own potential yeah but and and like being able to start going from idea to action you don't even need all the plans like all the stones don't need to be set out in front of you for you to skip across the pond on you just need to start taking the one step in front of the other and and maybe if this is a helpful exercise for people plan it failing
- 1:29:03Plan your first one is going to fail.
- 1:29:04That way the pressure of making a success is no longer there.
- 1:29:08But I'm just going to do this one for fun because it's supposed to be fun.
- 1:29:11And this is a fun thing in my life.
- 1:29:12And I'm going to be a Pokemon card collector.
- 1:29:14And I'm going to be like the best collector ever was.
- 1:29:17The greatest of them.
- 1:29:18What's the Pokemon phrase?
- 1:29:19Kyle collected Pokemon.
- 1:29:21But that's some gotta catch whatever.
- 1:29:23Gotta catch Moe's the phrase.
- 1:29:23But what's the statement in like the song where it's like Pokemon?
- 1:29:26I don't know.
- 1:29:27Pokemon.
- 1:29:28I'm going to be the very best.
- 1:29:29I'm going to be the... No one ever was.
- 1:29:31Thank you, Scott.
- 1:29:33That's right.
- 1:29:34I'm going to be the very best.
- 1:29:36God, it was a Pokemon.
- 1:29:37Yeah.
- 1:29:38Were you actually in the Pokemon card?
- 1:29:39So it was hockey and Pokemon.
- 1:29:41That was like the... Let's land the point.
- 1:29:44Okay, fine.
- 1:29:45Yeah, we're going to talk about Pokemon.
- 1:29:47So we came out of the podcast with you today, Scott, not to just...
- 1:29:51toot the horn of epic, even though that is like, we can't, we're wearing all this epic drip.
- 1:29:55I even put hats like secretly in there.
- 1:29:57So we have subconscious epicness happening.
- 1:30:00So that wasn't even the point.
- 1:30:02The point is like, you know, illustrate a story and then the rest has gravitational pull.
- 1:30:06If someone is actually interested in septic, like there is a whole rabbit hole that lands in the sludge of septic at the very bottom that we'd be happy to take them on.
- 1:30:14But if there is an interest in going into any industry, whether it's a septic industry or otherwise, trades possess a really interesting characteristic where you have these legacy family businesses where this current generation is like granddad's business that they've taken over.
- 1:30:28And they don't care at all about the business, but they're making like a million dollars a year doing whatever the heck some random corner of trade is.
- 1:30:35If you came in and you just went like God mode, like go like, I'm going to just...
- 1:30:40I'm going to be insane and I'm going to do all the things like you can compete at a level that no one.
- 1:30:44And if you look at it from a professional sport, which Kyle played professional football, he was going up against crazy competitors and he's an amazing athlete himself.
- 1:30:53But it was hard to find a way to play on Sunday in this industry.
- 1:30:58we can play at a level that no one competed against like that the ability to come in with a better brand in this industry compared to my prior life which is all this like big tech like it that world changes so quickly it's so hard to stay on top of the latest implementation of ai you go to if you find yourself an industry that's forgotten in a corner an industry like septic and you bring your white collar badass approach to something you're gonna crush
- 1:31:23you're gonna, and you put it at a local or regional level, you're gonna destroy, there's no one else like it.
- 1:31:29Put polish, especially in this industry, if you put a little polish in any really blue-collar brand, you're gonna crush.
- 1:31:36That's where the opportunity is.
- 1:31:38It's where the opportunity is.
- 1:31:39Like, to close it out, why Epic, right?
- 1:31:43Like, if you're considering, like, a trade, not just Epic, but any trade, if you're looking for something to actually get your hands on and actually feel that you're making a difference, this is the infrastructure.
- 1:31:53Because every trade that you have, you're actually contributing to society.
- 1:31:56You'll be able to go drive 10, 20, 30 years down the road and say, look, look, son, I put that roof on that building.
- 1:32:02Hey, look, son, like, I was responsible for making sure that those toilets for us right there.
- 1:32:06It's something you can actually build in the world.
- 1:32:08And put your hands on and it'll be there for generations.
- 1:32:10Your legacy will be there for generations.
- 1:32:13I can't say the same about software.
- 1:32:14You know, I can't say the same about certain white collar trades, but in the trade, in the actual blue collar, brown collar trades, the stuff that you do at your community lasts a lifetime as long as you're on this earth.
- 1:32:23And that's exciting to me.
- 1:32:24If that's exciting to you.
- 1:32:26Everybody's stressed about AI, which could be its own podcast, but this industry never goes away.
- 1:32:31Where can people connect with you guys?
- 1:32:33You have your own podcast.
- 1:32:34So drop website, socials, podcasts.
- 1:32:37We'll put everything in the show notes too.
- 1:32:38So on YouTube, the podcast is called The Epic Uncut Podcast.
- 1:32:42Also, if you want to find our handle, any social media platform, it's at EpicSepticCo, C-O.
- 1:32:48So you find us on any social media platform, TikTok, Instagram, everything.
- 1:32:52EpicSepticCo.
- 1:32:53Both of you, each one of you take this, if you could, you know, you've had a crazy journey, you did not expect to end up where you are at today.
- 1:33:03When you first started out from white collar investment banking, joining the military, if you could go back and give your 20 year old self one piece of advice, what would it be and why?
- 1:33:15At 30, I really wanted to have, for whatever reason, my number was $30 million by the time I turned 20.
- 1:33:21I wanted to have $30 million by the time I turned 30.
- 1:33:23And that's something that I did not hit.
- 1:33:26And it pissed me that off.
- 1:33:28And I'm like now trying to make up for lost time.
- 1:33:31And the advice that I'm giving to myself, as much as it's good to have a goal, we've talked about this before, to sprint towards, to work towards, I think the journey along the way, that was like my high school quote in the yearbook was like,
- 1:33:45It's good to have a journey, but it's the journey that matters at the end.
- 1:33:49It's good to have whatever it is.
- 1:33:50It's good to have a goal, but it's the journey that matters at the end.
- 1:33:53I can't even say my own high school year of a career.
- 1:33:56But it's so important.
- 1:33:58I think for me, it's don't take yourself so seriously.
- 1:34:01Don't take everything so seriously.
- 1:34:03Yeah, you can have high standards.
- 1:34:05Yes, you can have these crazy...
- 1:34:09crazy journey as you go on, but man, just enjoy the ride, man.
- 1:34:12Like if you're going to go on a journey, go it and just expect to fail, but have fun doing it.
- 1:34:16You know, I always take myself so seriously.
- 1:34:19I used to beat myself up when I would like lose a game or, or just, just go, you know, just have fun.
- 1:34:24Just let it ride, dude.
- 1:34:26I love it.
- 1:34:26Thank you.
- 1:34:27Thank you, Scott.