Latest / Home Service Millionaire with Mike Andes / JP Answered Mike's Biggest Question About Business

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JP Answered Mike's Biggest Question About Business · Home Service Millionaire with Mike Andes

• 0:00
  If CityTurf was valued like SpaceX, we'd be worth $2.7 billion.
• 0:06
  For anyone watching, just take your revenue, multiply it 150, and that's your valuation of your lawn care business.
• 0:12
  Once you get to a high level of wealth and tax complication and trust complication, like one answer pays for a lot.
• 0:19
  I just pulled the data because I was interested.
• 0:21
  I pulled a couple of locations close to you.
• 0:24
  And we're getting leads for like $10.
• 0:26
  And they're good.
• 0:27
  I believe as you become a more senior leader inside an organization, your predominant job is getting the right people on the team and coaching people and getting the wrong people off the team.
• 0:36
  Like your job is to grow people.
• 0:38
  So whatever you, I would invest in them.
• 0:40
  Franchisees are exact same thing.
• 0:42
  Whatever you got to do to invest in them, you do that.
• 0:44
  That's how you grow this business.
• 0:45
  Welcome back, everyone.
• 0:46
  Another week, another podcast.
• 0:48
  Hey, everyone.
• 0:49
  We're going to jump right in.
• 0:51
  And I got the craziest cold open of the day.
• 0:54
  Oh, great.
• 0:55
  Yeah.
• 0:57
  We're going to do a little bit of everything.
• 0:58
  I had like, I was like, you know, I could have these three different cold opens over the next three episodes or just do it all in one.
• 1:03
  So we're going to do it all in one.
• 1:04
  But we're going to need to keep your answers tight because I have like eight of these.
• 1:08
  Okay, so.
• 1:09
  First, first tie.
• 1:10
  Do you know who you're talking to here?
• 1:13
  The first section is just hot takes.
• 1:14
  OK, all right.
• 1:16
  Hot takes.
• 1:17
  Yeah, these are the longer ones.
• 1:18
  They're not too hot.
• 1:19
  Don't worry.
• 1:20
  OK, so the first one, should there be a minimum wage?
• 1:24
  And if so, what should it be?
• 1:26
  I say no because prices will just rise immediately to minimum wage.
• 1:30
  It makes no difference.
• 1:32
  I don't know.
• 1:33
  That's my, yeah.
• 1:34
  There's your hot take?
• 1:35
  Okay.
• 1:35
  I mean, I think there should be a minimum wage, but I just, the idea that we take it to 25 bucks an hour doesn't, in my opinion, fix the problem.
• 1:42
  Right.
• 1:43
  Okay.
• 1:43
  All right.
• 1:44
  If you were the Fed chair, so recently Kevin Warsh just got in.
• 1:47
  Today was his first press conference.
• 1:50
  But if you were the Fed chair for one year, what would you change with interest rates and how would you do it?
• 1:55
  Oh my gosh.
• 1:56
  This requires thought.
• 1:57
  My first inclination...
• 1:59
  My first thought is I wouldn't lower interest rates right now.
• 2:02
  Would you increase them?
• 2:03
  I would need – you don't want me being the Fed chair, but my answer is I would not change anything right now.
• 2:11
  I'd have to get in and understand the data better, but I wouldn't in this moment say I'd raise them either.
• 2:17
  No, it's interesting.
• 2:18
  I listened to a little bit of his initial press conference.
• 2:21
  You can tell they're basically going to redo all the numbers, how inflation is calculated, how unemployment, which probably is necessary, but they're just going to bake the numbers they want to see.
• 2:30
  It's going to be great.
• 2:31
  I hope not.
• 2:32
  But I do understand the argument for updating the numbers.
• 2:36
  I've heard some stuff about that over time.
• 2:37
  And when I at least when I hear one perspective, it's like, oh, yeah, that makes sense.
• 2:41
  Okay, so the next part of the cold open, because that was the first two questions.
• 2:44
  Those are hot tips.
• 2:45
  This one, I just need one bit of information or one piece of advice for two different business owners.
• 2:51
  Okay, so I'm going to express who this is and it needs to be relationship advice.
• 2:56
  Okay.
• 2:57
  So relationship advice for two different types of entrepreneurs.
• 2:59
  The first entrepreneur is a single guy.
• 3:01
  His business is doing $400,000 in annual revenue.
• 3:05
  He's 22 years old and he's looking for a wife.
• 3:08
  So he's currently single.
• 3:09
  What piece of advice off the top of your dome is,
• 3:12
  Would you give this young man to find a wife?
• 3:14
  Yeah.
• 3:15
  He's looking for a wife to find them or just general advice at this, this size of business and stage of life.
• 3:22
  I don't know what I want to say here.
• 3:25
  I feel like you played it pretty well.
• 3:27
  Heads down, build through your twenties, then go find a wife.
• 3:31
  Okay.
• 3:31
  So after like 29, 30, that's when you look for a wife.
• 3:35
  It's a dang good strategy.
• 3:36
  How old were you when you got married?
• 3:38
  Oh, I was 21.
• 3:39
  Okay.
• 3:40
  It worked for me, but I know other people got married at my age and they got divorced.
• 3:43
  How do you do what you want?
• 3:44
  Yeah.
• 3:45
  And I would not talk somebody out of getting married.
• 3:48
  See, this is where we turn in longer.
• 3:50
  And so I don't know that I'm really answering your question, but I would just think there's nothing wrong with just building, building.
• 3:57
  If you don't already have a girlfriend that could be your wife, I don't think it's imperative to go find one.
• 4:02
  If you're really passionate about business, just build the thing.
• 4:04
  Yeah.
• 4:04
  And worry about that later.
• 4:06
  I don't think you have to solve that problem immediately.
• 4:08
  But everybody's wired differently.
• 4:10
  I started dating Tiffany who was 17.
• 4:11
  It just happened to work out that way.
• 4:13
  It wasn't a problem I was trying to solve for.
• 4:16
  Got it.
• 4:17
  I don't think I answered.
• 4:18
  Did I answer that the way you?
• 4:20
  Down the road, we can do a much longer monologue about the pros, the cons, etc.
• 4:25
  I'm pro-marriage.
• 4:26
  I am pro-marriage.
• 4:28
  But there is no greater opportunity to go all in on building.
• 4:32
  Yeah, I get you.
• 4:33
  All right.
• 4:33
  That leads me to entrepreneur number two.
• 4:35
  Okay.
• 4:36
  This individual is married.
• 4:39
  They're 45 years old.
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  They have two kids in their early 20s.
• 4:43
  They have a business that is $1.2 million in revenue.
• 4:46
  It's really profitable.
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  But there's now stress in the relationship because they've grown apart.
• 4:50
  What piece of advice would you give to this entrepreneur?
• 4:52
  Questions have to be asked, but I would tell you that at this point, you probably have grown apart because you're living two different lives.
• 5:01
  Like maybe she's living the kid life.
• 5:02
  I don't know.
• 5:03
  This is where you expect you're living the business life and your communications maybe are too much about the business or just too much about the kids, but they're not really...
• 5:13
  anything else at this point.
• 5:14
  And so it has to be a very concerted effort to stop talking about the business, stop talking about the kids and start talking about other things in life.
• 5:23
  Date nights, going on weekend trips together, finding things you can do together, eating dinner together, like all this stuff and maybe therapy, maybe getting somebody to help you work through it.
• 5:36
  I've not, we've not done therapy or anything like that, but I have several business friends that have done it and they swear by it.
• 5:42
  And so I think there's a connotation around it like something's wrong, but it could just be you're just wanting a facilitator to have the conversations that are hard to start on your own because there's been a distance and a gap for so long.
• 5:57
  Like if you go too long with a business partner or a marriage or a spouse or anything and you don't talk about a thing, it's really awkward to ever start the conversation.
• 6:06
  It's really awkward to ever –
• 6:09
  cut that divide.
• 6:10
  And so sometimes just having somebody help you do that is enough to just get the conversation started where both parties feel heard.
• 6:18
  So I'd be very intentional.
• 6:19
  And those are some of the things I think about.
• 6:22
  I love it.
• 6:22
  Side note on that topic.
• 6:24
  Renee, I think it's Renee, Dan Martell's wife has a YouTube channel, and she did a couple podcasts with the two of them together.
• 6:30
  They're really good.
• 6:31
  I sound agree.
• 6:32
  Yeah, yeah.
• 6:33
  So Dan told me, oh, I did a thing with him.
• 6:37
  He's from Ireland.
• 6:39
  I don't know him or anything.
• 6:40
  I met him in 14 through Yannick Silver, a guy, and...
• 6:45
  I was really impressed with him.
• 6:47
  And then probably like four years ago, Dan told me that he and Renee do a thing with him, I think every year.
• 6:55
  And he's like, it's phenomenal.
• 6:57
  You've got to go do it with Tiffany.
• 6:59
  It was in Ireland.
• 6:59
  I think in Ireland, I think, well, I think he bought a castle to do it out of.
• 7:03
  Yeah.
• 7:04
  He's an interesting guy.
• 7:04
  I think he had built a big coffee business.
• 7:07
  We did.
• 7:07
  I did this thing with him in Aruba, I think.
• 7:11
  And anyway, he's great.
• 7:14
  I really thought he was really good.
• 7:15
  But anyway, I was surprised when Dan's like, Oh yeah.
• 7:17
  He,
• 7:18
  Renee and I, we work with this guy.
• 7:20
  He's fantastic.
• 7:21
  And we go to Ireland.
• 7:22
  I came back and asked Tiffany if she was interested.
• 7:24
  She's like, yeah, I'd do that.
• 7:25
  Well, then we just went on about years of traveling and it never made our calendar.
• 7:29
  And I actually forgot about it.
• 7:30
  So you brought it up now.
• 7:32
  Wow.
• 7:32
  Very cool.
• 7:32
  Okay.
• 7:33
  All right.
• 7:33
  We got close.
• 7:34
  See, that wasn't brief.
• 7:35
  Wasn't brief.
• 7:35
  All right.
• 7:37
  This part of the cold open is rapid fire.
• 7:39
  Okay.
• 7:39
  Okay.
• 7:39
  So these are gonna be non-business stuff.
• 7:41
  This is more or less just audience getting to know you a little bit more.
• 7:44
  It's simple A or B.
• 7:45
  All right.
• 7:45
  Which would you prefer?
• 7:46
  Either A or B.
• 7:47
  or B.
• 7:48
  And you don't have to say air B.
• 7:49
  Just tell me which one.
• 7:49
  If you want to think through it, you can.
• 7:51
  But it's just four.
• 7:52
  Just don't say more than, I hear you, I hear you.
• 7:56
  Okay, so from a health perspective, do you prefer a cold plunge or a sauna?
• 8:02
  Sauna.
• 8:02
  Oh, very interesting.
• 8:03
  Okay.
• 8:04
  Second, perfect date night or a preferred date night.
• 8:07
  Painting class or sports event?
• 8:09
  Sports.
• 8:10
  Really?
• 8:10
  Okay, I didn't know that.
• 8:11
  Okay.
• 8:12
  Third, better viewing.
• 8:14
  UFC, NBA finals, there's a third one, or World Cup?
• 8:19
  UFC, but Tiffany would strongly disagree.
• 8:23
  Would she be World Cup?
• 8:24
  Yes.
• 8:24
  Because she'd probably gone to soccer because of the boys, right?
• 8:27
  Oh, oh my gosh.
• 8:28
  Riley.
• 8:29
  Okay.
• 8:30
  Riley played academy soccer.
• 8:31
  It's like it never ended.
• 8:32
  Yeah.
• 8:32
  Okay.
• 8:32
  All right.
• 8:33
  Last one.
• 8:34
  Preferred workout.
• 8:35
  Do you do full body lift when you're doing weights or do you do upper and lower body splits?
• 8:40
  Splits.
• 8:41
  You do?
• 8:41
  Okay.
• 8:42
  All right.
• 8:43
  Cool.
• 8:43
  There's your cold open.
• 8:44
  All right.
• 8:45
  All right.
• 8:46
  I survived it.
• 8:47
  What are you working on this week?
• 8:48
  I know last week, a lot of data stuff.
• 8:50
  Is it still working on...
• 8:51
  I'm working on a lot of stuff, but I got my...
• 8:54
  It's hard to describe how giant of a project this was.
• 8:57
  I got my marketing calendar nailed down.
• 8:59
  And I think I probably did a marketing calendar at a level most people don't think about.
• 9:04
  And then I also created, I said this before, this...
• 9:07
  It was a big project, this task list that defines everything that has to continue happening in the business on an ongoing basis and who owns it.
• 9:14
  I got all that done.
• 9:15
  And in doing so, a project that I had started a while back that I was going to I was doing it for.
• 9:23
  We're moving to every chat to run our business from a communications marketing standpoint.
• 9:29
  And I'm waiting for something to get built in there, which is the tiering of our clients.
• 9:34
  And so I started this project where I tiered all of our clients.
• 9:37
  I'll explain that.
• 9:38
  And I was just waiting for this to get done in the product.
• 9:41
  Well, after going through it, so I kind of just put the project on hold.
• 9:43
  But after going through my marketing calendar and everything, I resurrected this project.
• 9:47
  And it's my top project to finish this week.
• 9:50
  And what it is, is it's basically a ranking of every client in our system into four tiers.
• 9:56
  So tier one client, tier two, tier three, tier four.
• 9:58
  I also have all the data for every home that I could potentially serve in my market.
• 10:03
  The neighborhood they're in, the home value, all this other data, it's tiering that entire prospective base.
• 10:09
  And the tiering becomes critical because it determines how I market to different
• 10:14
  classes of people, how I talk to them, how we serve them customer service wise.
• 10:19
  And then when you get into the prospects, who gets direct mail, who gets what kind of packages, who doesn't get any physical touches, things like that.
• 10:26
  So it drives all decision making.
• 10:28
  So I have to finish this tiering project.
• 10:30
  And I'm doing it now.
• 10:31
  I have a question about that.
• 10:31
  I have a question.
• 10:32
  I know you still got to keep going on this.
• 10:33
  No, I'm good.
• 10:33
  I'm good.
• 10:34
  I'm good.
• 10:35
  The hardest part about that is weighting.
• 10:36
  Because when you have multiple variables, it's like, well, is the home value the higher weight?
• 10:41
  Or is the lifetime value of the customer?
• 10:43
  Or is the type of service?
• 10:45
  That's always been the hardest for me when I come to tiering.
• 10:49
  It becomes still a subjective game of what do I put the most weight on?
• 10:53
  100%.
• 10:54
  And the other one is there's factors I can't score yet that I'm hoping to convince Riley to build into every chat, which is referral waiting.
• 11:04
  I need to understand who referred who.
• 11:07
  It was something we were always going to build into Service Autopilot.
• 11:09
  It actually is in Service Autopilot.
• 11:11
  It's hidden.
• 11:12
  A little side note about service hot bite.
• 11:14
  That's in service hot bite hidden.
• 11:16
  And so is a whole entire affiliate marketing functionality piece to turn all your clients into referral people.
• 11:23
  And we never released it.
• 11:25
  It's another one of my brainchilds that never got done.
• 11:28
  Anyway, my point is, I really believe in this.
• 11:30
  Like when you think about the value of a client, you could say, hey, the value of the client is based on what services are they buying?
• 11:36
  Are they higher margin?
• 11:37
  Right.
• 11:38
  the pain in the butt factor of this person, their propensity to buy additional services.
• 11:43
  Like you could come up with all these scoring criteria.
• 11:45
  Well, one of the major scoring criteria has to be, do they refer and how many people have they referred?
• 11:51
  Like a client that refers four clients versus a client refers nobody is way more valuable than a client that, like if I have a client that buys one service,
• 12:00
  but refers two people a year.
• 12:03
  And I have a client that buys three services, but refers nobody.
• 12:06
  The client that refers is way more valuable to me.
• 12:09
  Hands down.
• 12:10
  Are you tiering it based upon, like what's the factor between tier one and tier two?
• 12:14
  Is it a point system?
• 12:16
  Yeah, so I'm sorry, I got distracted.
• 12:17
  I was saying that there's tiering functionality that I can't include right now that will include heavier weighting later, but I need software to do it.
• 12:26
  So that's where that went down the road of the referrals.
• 12:29
  It's also where the paid in the back factor comes in.
• 12:32
  So right now when I'm tiering, I'm tiering based on where they live, what services they're buying that are stacked rank by gross margin.
• 12:43
  I'm tiering based on...
• 12:45
  this very lousy thing we've tried to build that tries to figure out if they're a pain in the butt client or a good client.
• 12:57
  And then total revenue, which is a little less.
• 13:02
  That they're billed, that accrued?
• 13:04
  No, total revenue that they are spending with us at this exact moment.
• 13:10
  So when it comes to accrued, I don't value that as much because I just do projections.
• 13:16
  I don't know.
• 13:17
  Maybe that's flawed, not flawed.
• 13:19
  But if somebody's been with me for six years, yeah, they're really, really valuable.
• 13:25
  But if somebody's only been with me for one year, and I am only looking and I'm looking at accrued revenue, that massively devalues what could be an incredibly valuable client.
• 13:34
  And so that waiting, I didn't give that a lot of value.
• 13:41
  I mean, yeah, so interesting.
• 13:43
  I wanted to do this so bad.
• 13:44
  It's really hard.
• 13:46
  It's well, the thing is, I started I convinced myself not to do it once I started being like, OK, if I do this has 10 percent weight versus 20 percent.
• 13:54
  Oh, I just changed all the tiers.
• 13:55
  Or if, for example, to your point, referral, someone who does referral has so much more value.
• 14:00
  Well, is it like five X the value as their lifetime gross profit?
• 14:05
  So like it got
• 14:06
  To the point, too, where I couldn't do it across Augusta because everyone has different values.
• 14:09
  Like, for some people, revenue with a lower gross profit is more valuable than because it fills in their off-season, for example.
• 14:17
  I think it's different by company.
• 14:18
  It's got such a bad idea.
• 14:20
  It has to be different by company.
• 14:22
  This isn't a new idea.
• 14:23
  This is an idea back in the service.
• 14:24
  I mean—
• 14:26
  The volume of things that never got built into my vision of ServiceLotipide.
• 14:29
  This is an example.
• 14:30
  But even back then, I remember thinking you could never just define this for people.
• 14:35
  I had a name.
• 14:36
  Yeah, I mean, anyway.
• 14:37
  We were trying to, because we do the same thing.
• 14:39
  We do this internally for the franchise owners.
• 14:42
  Because we have much more parameters.
• 14:44
  Internally, we know the health score of every location.
• 14:48
  And so we know who needs help, who's crushing it, etc.
• 14:51
  Is that based on MPS or is that based on this data?
• 14:54
  We don't even put in MPS.
• 14:56
  It's simply based upon...
• 14:57
  the amount of recurring revenue, their profit margins, the percentage of efficiency of labor, a bunch of stuff in the back and we plug into it and then that gives us health score.
• 15:05
  And we were really trying to think about this for homeworks.
• 15:08
  Like, how can we just give people a health score of a client like you just see it like, oh, it's red, it's green.
• 15:12
  It's it.
• 15:13
  But man, it's just it's a bag of a bunch of variables.
• 15:16
  And if you tweak one too much or put too much weight on one, it can throw it off.
• 15:20
  I think what you're at risk of, I've thought about with the software, is your risk of building this thing that sounds so wonderful, but then nobody ends up using it for those exact reasons.
• 15:28
  And so to solve the problem for me, because I've got a lot of holes in the data, I'm just only taking it so far for now, and then we'll re-rate all of our client base in the future as we have more ability.
• 15:38
  But I've got to have something.
• 15:40
  Yeah, that's super cool.
• 15:41
  So yeah, you finish now the marketing calendar.
• 15:43
  That's basically.
• 15:44
  Calendar, task, that stuff.
• 15:46
  It sounds so, I finished my task list.
• 15:48
  It sounds like nothing.
• 15:49
  This, it was miserable projects to finish.
• 15:52
  It was, they were really miserable.
• 15:54
  I actually just wrapped up one of them last night.
• 15:56
  I went to bed at four o'clock this morning.
• 15:58
  So I just, it's like pulling teeth to get me to finish these because there's so much thought and decision making that has to go into it.
• 16:04
  So I just kept finding I want to go do something else.
• 16:07
  So anyway, yeah, those are done.
• 16:09
  Tiering's next.
• 16:10
  And then I got so many projects going, but I got key projects that I try to spend most of my time on until they're done.
• 16:17
  And then I move to the next one.
• 16:19
  And the tiering is a bottleneck to some of my next projects.
• 16:21
  So I got to get it done.
• 16:22
  Cool.
• 16:23
  What about you?
• 16:23
  All right.
• 16:24
  This week, so we kind of went to phase two of the MCP axis.
• 16:30
  So now there's a whole bunch more people inside.
• 16:32
  So I was able to go and see some things that people are doing.
• 16:34
  So it's code ready that people – is it beta?
• 16:39
  Yeah, it's beta.
• 16:40
  So phase two beta.
• 16:41
  Yeah.
• 16:42
  Yeah, exactly.
• 16:42
  We'll do the third phase too.
• 16:43
  So we're going to just do it slow.
• 16:45
  But yeah, just seeing some of the use cases, people get creative.
• 16:47
  It was really cool.
• 16:48
  For example, I actually specifically went and looked at what you had talked about last week, like data attribution, and then tying it to like channel churn.
• 16:55
  It was like, okay, if they came from Facebook, what's the churn?
• 16:57
  If they come from a door hanger, what's the churn?
• 16:59
  If they come from Google, what's the churn?
• 17:02
  And man, it is great.
• 17:03
  So there's some really cool stuff that members are building.
• 17:06
  It's just so cool to see what they're building, stuff I didn't even think of.
• 17:10
  When you say building, they're just building as a prompt, right?
• 17:13
  Correct.
• 17:14
  Yeah.
• 17:14
  It's just really the prompt.
• 17:15
  And most of it's useful for reporting because we will never be able to build every report that everyone wants to see.
• 17:20
  This is one of the greatest things about this.
• 17:22
  I think about like a Service Alpine 2.0.
• 17:23
  It's like, I would have had to do all this reporting stuff that nobody will ever be happy with.
• 17:28
  This is like the solution to that problem.
• 17:30
  I love it.
• 17:31
  You just keep legacy reports.
• 17:32
  Just keep legacy reports.
• 17:36
  um what what is so you've seen cool things that have been built what's the biggest like technical challenge like oh crud this is uh has is anything like that presented itself just yet you're like oh this is a big decision we have to make internally
• 17:51
  Well, right now, the biggest one has been like, I'm going to eat the cost.
• 17:56
  I want to see people.
• 17:57
  Of tokens?
• 17:58
  Yeah.
• 17:59
  Of tokens or like our data cost or like a hosting cost because you're hitting.
• 18:04
  Because eventually it'll mean you have to scale more instances of services or servers.
• 18:08
  A little bit of both.
• 18:09
  A little bit of both.
• 18:09
  Right now, it's like, hey, what are the parameters we got to put in place?
• 18:11
  But like, I want the box to be open because I feel like if I'm like from day one, hey, we're charging.
• 18:16
  Yeah.
• 18:17
  So few people get in and then nothing interesting gets built inside the community.
• 18:20
  I agree.
• 18:21
  That's a good idea.
• 18:22
  And so I'm like, hey, let's let's eat the cost, let people in and then down the road, we'll put the parameters because there's people that get in there and they will hit that thing.
• 18:29
  Like, my goodness, they can go they can go crazy really fast.
• 18:33
  And so, yeah, been very interesting.
• 18:35
  The second thing I've been working on this week was I had mentioned a couple weeks ago, the upsell calls that we're doing for on the phone for Augusta.
• 18:43
  I went out and did some.
• 18:44
  So I got on the phone and just started doing it.
• 18:46
  Just to get the rep, see where some of the holes are, what's working, what's not.
• 18:50
  It was super eye-opening and just really, really solid to be able to get hands-on with the customers, what it feels like from an agent's perspective, where the gaps are in information for the agent to actually do a good upsell.
• 19:03
  But it was fun.
• 19:04
  I actually did some of it I got on video, and I'll post it.
• 19:08
  Oh, that's cool.
• 19:09
  On the back end for your AI model, what model do you use?
• 19:13
  For what I'm building?
• 19:17
  Are you guys only passing data to the front end model?
• 19:21
  Like if they're using ChatGPT, you're just gathering the data and passing it.
• 19:26
  Have you AI enabled with a model your system in any way yet?
• 19:30
  In Claude.
• 19:31
  You are.
• 19:31
  In terms of an MCP connector.
• 19:33
  Okay, so you just built it for Claude.
• 19:35
  Correct, yeah.
• 19:36
  Okay, that's what, okay, all right.
• 19:37
  Yeah, like, yeah, there's so many ways to do it once you open up the API, but right now we're just doing a connector with Claude.
• 19:46
  Okay.
• 19:46
  That's what our focus on.
• 19:47
  Okay.
• 19:47
  And then I think down the road, we'd open up some other elements.
• 19:50
  Okay.
• 19:50
  Cool.
• 19:50
  That's what I've been working on.
• 19:52
  Okay.
• 19:52
  Fantastic.
• 19:52
  We are going to go into our first question.
• 19:55
  The first couple of questions of the day are a little different.
• 19:57
  So it's what questions we want to ask each other.
• 20:01
  Now, we have not talked to each other about these or given any heads up.
• 20:04
  I've prepared two questions that I'm going to ask JP.
• 20:07
  And then if you have any questions, you're welcome to ask me anything.
• 20:12
  I have two questions.
• 20:14
  I love this.
• 20:14
  I like this.
• 20:15
  I thought this was a cool idea.
• 20:16
  Yeah, I thought last week's episode, I thought it was really good.
• 20:19
  It just came out this morning.
• 20:20
  Yeah.
• 20:20
  Like, I enjoyed last week's episode because I took actual things away from our conversation and implemented it within an hour.
• 20:27
  And I think you had some similar things.
• 20:29
  Yeah, I liked that.
• 20:29
  I listened to it at 1.30 this morning while I was walking.
• 20:33
  1.30, you were doing a walk?
• 20:34
  I would have been at 4 o'clock this morning.
• 20:36
  Bro.
• 20:38
  I'm in a really bad place from this whole sleeping thing right now.
• 20:42
  Oh, man.
• 20:43
  Okay.
• 20:43
  All right.
• 20:43
  Well, I'll ask you my questions first.
• 20:45
  Okay.
• 20:46
  And then we'll see.
• 20:47
  We'll go from there.
• 20:48
  So the first question I have is about dealing with public backlash.
• 20:52
  So what are actionable things you had to learn or do to regulate your emotions and lead better?
• 20:59
  And specifically, if you have examples or stories, I know you had already a bit of a personal brand.
• 21:05
  and online presence that really launched a lot of service autopilot.
• 21:09
  But what did you have to learn?
• 21:10
  I think one of the things I've mentioned before in the show is just my respect for your emotional regularity, like lower highs and higher lows.
• 21:21
  and being able to stay composed in those moments.
• 21:23
  But what were some of the things you actually had to learn or specific things that you would do to make sure you could regulate your emotions and lead, especially internally, the team, but also the external facing backlash that's coming your way?
• 21:36
  You know, I never really had to get comfortable with getting a lot of negativity on social media because I never built that big of a channel, even though it was really successful in terms of driving revenue at Service Autopilot leads.
• 21:50
  But Service Autopilot, that was a different thing because you just deal with so many challenges, building software and meeting expectations and then problems happen.
• 22:00
  There's no getting around the problems.
• 22:02
  It's impossible.
• 22:04
  So, the one thing that I think the first thing that came to mind that I feel like I've really learned in dealing with really hard stuff where you're kind of stuck, and I don't know if we've talked about this already on this in our whatever number of episodes we've done, but it's this idea.
• 22:20
  This is probably one of the biggest takeaways for me.
• 22:23
  It's this idea that my brain will just cycle.
• 22:26
  And I will go over the solution and over the solution and just constantly because I like facts and details.
• 22:33
  So I'm always trying to solve.
• 22:34
  Like, what's the solution here?
• 22:36
  And it just becomes this negativity in my mind.
• 22:39
  I'm not really a person that just gets stuck dwelling on problems forever.
• 22:43
  I more live a little in the future than I live in the past.
• 22:46
  But I will cycle on solving something forever.
• 22:48
  Yeah.
• 22:49
  and just bring it back up.
• 22:50
  And so that whenever I would get into a bad place where things weren't going good, I was frustrated with the company, it's going too slow.
• 22:58
  I was frustrated with a situation in the company or we had really screwed up, like servers are keep dropping or whatever.
• 23:08
  We promised everybody nine months ago you were gonna get this functionality, whatever the scenario is.
• 23:12
  And that's where you feel like you're taking a mental beating.
• 23:15
  My thing I use to this day is to constantly ask myself,
• 23:19
  Have I identified the problem?
• 23:21
  Have I figured out what it is?
• 23:22
  Have I figured out what the next few steps are with absolute clarity?
• 23:26
  And am I doing the next step?
• 23:27
  And that's a really simplistic thing.
• 23:30
  But for me, it helped because I would constantly just reanalyze the problem and what we need to be doing, constantly rethink it.
• 23:38
  And so then you end up just dwelling on this thing and you're not, it drains all the energy and life out of you and you're not moving forward.
• 23:45
  And so what I got comfort in was I am doing something
• 23:49
  I believe we have made the right decision.
• 23:50
  We're doing everything possible.
• 23:51
  We're doing the best thing for the client, doing the best thing for the team.
• 23:54
  Here's the next action.
• 23:55
  I am working it.
• 23:56
  And as soon as that's done, I will work the next action and the next action.
• 23:59
  And that brought me a lot of mental relief.
• 24:01
  It didn't solve the problem, but it brought this structure to the situation.
• 24:07
  That's the first one that came to mind.
• 24:10
  The other one...
• 24:11
  I want to hear about the next one.
• 24:13
  I think the thing for me that's hardest is when it's the nine month problem.
• 24:17
  It's not something that is like, hey, I hear you.
• 24:20
  I will fix this tomorrow.
• 24:21
  It's not like that's not that.
• 24:23
  Those are the easiest.
• 24:24
  I love those problems.
• 24:26
  That was never my problem.
• 24:27
  It's the longer stuff.
• 24:28
  It's the stuff where you don't know the servers.
• 24:31
  Why do I have to keep rebooting these three front end servers online?
• 24:35
  This was a real service all-pilot thing.
• 24:37
  Every two weeks because people are calling in and saying it got slower.
• 24:40
  We can see the data.
• 24:41
  It's like all of a sudden the thing got slow.
• 24:42
  Why is it getting slow?
• 24:43
  So we have to reboot the server and everything is great for two weeks and it's slow again.
• 24:46
  And we're just chasing a problem.
• 24:48
  And we're like, can't find it.
• 24:49
  It's like that kind of stuff where it's like, this is a terrible experience for people.
• 24:54
  You know, we had a lot of service.
• 24:55
  Yeah, well, you know, we had a lot of service.
• 24:57
  So in that scenario, maybe 15% of people are being impacted by it.
• 25:00
  Well, today, 15%.
• 25:02
  And in three days, there'll be a different 15%.
• 25:03
  And five days, there'll be a different 15%.
• 25:05
  It's like, that's, this is terrible.
• 25:07
  We got it, you know, that kind of stuff would eat at me because it felt like we were letting people down.
• 25:12
  And we didn't know the answer.
• 25:14
  And so that's those just as to what you said, it wasn't the we've got a problem and I can deal with this tomorrow.
• 25:21
  We can fix this for them.
• 25:22
  And that's done.
• 25:23
  It's the stuff that lingered that was going to take forever was behind or we didn't know it.
• 25:27
  We didn't have the answer just yet.
• 25:30
  Second example.
• 25:31
  Man, the other one, I know I've talked about this.
• 25:34
  One of the great things about being a dad is you just really think about how everything happens in life.
• 25:40
  You can say whatever you want to your kids.
• 25:42
  It's all about what you do.
• 25:44
  And so it's like I would use an example of somebody's a smoker and they tell their kids not to smoke, but they smoke.
• 25:49
  That's not going to work.
• 25:51
  So you have to live it.
• 25:52
  You have to live it.
• 25:53
  So I was always reminded myself
• 25:57
  And I always reminded myself, I am the example.
• 25:59
  So people have to see me calm.
• 26:02
  And so how can I calm myself?
• 26:07
  Breathing, I think, is a big thing.
• 26:08
  Just to be conscious.
• 26:10
  Two things I always remind myself of.
• 26:12
  This sounds so silly.
• 26:13
  I can picture this because we had an office.
• 26:15
  I drive to work, and I would think in the morning when I drive to work, I need to smile.
• 26:19
  Because I literally would try to smile while I'm driving to work because...
• 26:25
  I will get really serious.
• 26:26
  Like when I'm thinking about a problem, I'll look, I might do it on the air.
• 26:29
  Like I might look like I'm upset or frustrated.
• 26:32
  I'm not, I'm just processing.
• 26:33
  I'm working.
• 26:34
  So I can remind myself that.
• 26:36
  And then the one is like breathing and because you're the example.
• 26:39
  So how do you be as calm as you can possibly be?
• 26:42
  Because people are looking for confidence.
• 26:44
  The other thing that I constantly remind myself of, talked about this one too, is, and you're absolutely at this place in your career, and many people are, it's like if you think back about all the stuff that you thought was going to take you down or all the stuff that you
• 26:59
  You were so stressed about it.
• 27:01
  And here you are today.
• 27:02
  It's worked out.
• 27:03
  You figured out a solution.
• 27:04
  You didn't, you know, most people, like some people run from their stuff and don't solve them.
• 27:09
  But yeah, I'm talking to the person that like you continually, as I say, engineer a solution to the problem where you and the team together figured out that if you dwell on that and pay real close attention, that that should give you extreme confidence.
• 27:22
  So whatever you're stuck in right now, it's like, hey, I've been doing this for a decade.
• 27:25
  We've always solved it.
• 27:27
  It has not been fun and it hasn't been fast, but we have always solved it.
• 27:32
  Why would this be different?
• 27:33
  Those are so that I think there's an element where you just have to like inject some positivity into a really bad situation.
• 27:41
  The fourth would be like work out hard.
• 27:43
  Work out really hard to de-stress.
• 27:46
  Don't go home and drink vodka.
• 27:48
  Go run.
• 27:49
  Go lift weights.
• 27:50
  Go do, because that is imperative.
• 27:51
  Not at 1.30 in the morning.
• 27:52
  Not at 1.30 in the morning.
• 27:54
  Yeah, exactly.
• 27:56
  So those are four things that come to mind.
• 27:58
  Cool.
• 27:58
  All right.
• 27:59
  Second question I have for you.
• 28:00
  Probably a similar vein, but I'm 30 years old.
• 28:05
  I don't need to ask.
• 28:06
  I don't know how old you are.
• 28:07
  Are you in your 50s?
• 28:08
  I'm 50.
• 28:09
  You're 50 on the nail?
• 28:10
  No.
• 28:11
  Let's go.
• 28:13
  Come on.
• 28:14
  You're going to live to 120.
• 28:15
  Remember last week's podcast?
• 28:17
  We'll see.
• 28:18
  No, it's like I've always been – I wasn't happy when I was 30.
• 28:21
  I mean I'm happy.
• 28:22
  I'm happy.
• 28:23
  I've always been happy.
• 28:24
  It's like when I was 20, I was like, golly, I'm already – I'm 25.
• 28:28
  I got so much to do.
• 28:29
  I'm 30.
• 28:29
  I got so much to do.
• 28:30
  So for me, that's how 50 feels.
• 28:32
  Like I want to be able to do all the – I want to be able to do all the athletic stuff and not one day not be able to do it.
• 28:38
  So that's where it comes from.
• 28:39
  I need to quit whining about it, but yeah.
• 28:41
  Thank you.
• 28:42
  Okay, well, then that might actually, you might have answered the question.
• 28:44
  All right.
• 28:45
  So what would the current 50-year-old version of JP tell the 30-year-old version of JP to stop worrying about?
• 28:54
  Could be in life, business, anything.
• 28:56
  I've just convinced in life I've been wired to optimize for safety.
• 29:00
  I mean, to this day, I can't unwind the wiring.
• 29:03
  I still think about, is it enough?
• 29:05
  It's like so beyond, if anybody knew my number, they'd be like, this is the dumbest thing I've ever, like, what, how?
• 29:11
  How?
• 29:11
  Like, how could you even ever think about this again?
• 29:13
  It'll never matter.
• 29:14
  There's no chance it could matter.
• 29:16
  But there's still the program running in the back of my mind where I'm like, well, it's enough.
• 29:20
  But I've come to learn a lot of entrepreneurs do this like a little bit more.
• 29:24
  And so, but I've always had that wiring.
• 29:27
  Yeah, that would be the simple answer is it'll all be fine and you will have plenty.
• 29:34
  And I had plenty already.
• 29:37
  Would you tell that 30-year-old version of yourself to take more risk with the money?
• 29:40
  Yes.
• 29:41
  Or would you tell them to enjoy the money more?
• 29:44
  You know, this is the thing.
• 29:47
  If you have the advantage of hindsight, then you say take way more risk.
• 29:51
  But we don't know what's going to happen.
• 29:53
  So when I look back and say, did it work out?
• 29:57
  Yeah, it worked out really well.
• 29:58
  Was I...
• 29:59
  Did I put myself in a position where I was constantly stressed because I was taking risks?
• 30:03
  No, not at all.
• 30:05
  I played a conservative game, which worked for me financially, and I did not stress about...
• 30:10
  I didn't stress about money like, oh my gosh, the business is going to be... Is the business going to be okay?
• 30:15
  I didn't have any of those stresses.
• 30:17
  I believed that I would be fine financially.
• 30:20
  I just always thought, will it be enough?
• 30:23
  It's like this little thing of more, more, more runs in my head.
• 30:26
  That's where it's like an unnecessary...
• 30:30
  So I would take more risks knowing how I know the economy worked out and the world worked out and politics worked out, but we don't know what the next 20 years looks like.
• 30:38
  So if I look at it from a purely analytical standpoint, I was protected along the way.
• 30:44
  If really bad stuff happened, my businesses were not going away.
• 30:47
  And so I think I made the right decision for me, how I'm made.
• 30:51
  But in the hindsight of history, I should have financed everything and leveraged everything.
• 30:56
  But I didn't.
• 30:58
  And I have a lot more if I did.
• 30:59
  But who cares?
• 30:59
  So is that clear on how I answered that?
• 31:03
  Yeah.
• 31:05
  Yeah, totally.
• 31:05
  So it was the worry about money and that you were too conservative in your in your bets, essentially.
• 31:12
  Yeah, but the conservative gave me a level of peace because of my underlying program that's running for safety.
• 31:20
  Interesting.
• 31:21
  Okay.
• 31:21
  All right.
• 31:21
  Heard.
• 31:22
  Okay.
• 31:22
  I was digesting it for my own self.
• 31:24
  I'm in that same boat of like, I still have so many opportunities to put the money back in.
• 31:29
  And I don't worry about money.
• 31:31
  I don't at all.
• 31:33
  And so I'm a little different in your regard.
• 31:35
  I think I'm business.
• 31:36
  I make very conservative decisions.
• 31:38
  I don't worry about money.
• 31:39
  I don't know.
• 31:40
  It's just different.
• 31:40
  It's an interesting topic.
• 31:42
  So let's just go slightly further.
• 31:43
  I wonder if some of why I worried about money was from a religious standpoint because of what I believed was coming in the future, just to be very clear, how I saw the world back when I was... And it was unnecessary wiring.
• 31:57
  I also think some of it was...
• 31:59
  I got married at 21, and it wasn't just me.
• 32:04
  I had a wife, and then I had kids.
• 32:07
  And so that brought this whole, like, they need to be okay if something happens to me.
• 32:13
  It wasn't, like, I feel like if it had always just been me, then I could have just, I would have been more free with money because the only person that gets hurt is me.
• 32:21
  But as soon as I had family, it's, I still think this way.
• 32:27
  I've noticed like, oh, wow.
• 32:28
  I mean, I think if it was just me today, I would probably work even more than I work.
• 32:32
  And I would spend, I would probably invest a little more aggressive.
• 32:36
  And I'm like, I could do that now.
• 32:38
  It doesn't even matter.
• 32:40
  But I noticed that in my brain.
• 32:41
  So I think I was pretty impacted because I got married so young.
• 32:45
  There are advantages to this, but because I had such responsibility at such a young age,
• 32:51
  It wasn't just me that I was taking care of financially and I didn't want to let Tiffany down.
• 32:55
  Like the idea that I might have blown it all up and she's on the ride with me, that was very much on my mind.
• 33:02
  So I think those are two of the factors that wired me for this security thing.
• 33:07
  In your case...
• 33:09
  Man, I mean, to be where you're at at 30, you're marching in.
• 33:12
  I mean, you've got such momentum at this point.
• 33:16
  It's going to be very hard to stop it.
• 33:19
  I mean, even whether you invest massively or not.
• 33:23
  What's funny is that when I got married, it almost was the opposite.
• 33:25
  I went, I think seeing someone else spend the money a little bit helped me realize like, oh, I can go get more of that and I don't need to worry about it.
• 33:34
  And I almost started, I don't have that mentality of like, okay, if something happened to me, she's not going to be okay.
• 33:40
  Or I need to go out and I'm even more conservative because I have her.
• 33:43
  It's actually been very different for me.
• 33:45
  That's great.
• 33:46
  It's just, yeah, it's very interesting.
• 33:48
  I'll say the one last thing, man, something I really believe in.
• 33:51
  And I think this would resonate with you is you got to figure out what you're trying to optimize for.
• 33:57
  And so one thing you're optimizing for in life is money.
• 34:00
  But I know with you, it's not the only thing you're optimizing for.
• 34:03
  And so when it comes to the money thing, I do think you should figure out what the number is.
• 34:08
  And I think you figure out what the number is based on imagining what the ideal life looks like.
• 34:14
  Whatever that dollar amount is.
• 34:16
  That's, and it's just the dollar amount to live.
• 34:19
  And, but like live a really epic life.
• 34:21
  Whatever the epic life you want is that you think you would probably still want 30 years from now, what's that number?
• 34:27
  You build to that number to be able to generate that.
• 34:30
  And then everything after that,
• 34:32
  is just gravy.
• 34:33
  You could just give every other doll you ever make after that number away.
• 34:37
  You can let off the gas a little bit.
• 34:41
  I think that is the angle.
• 34:43
  The problem is I know almost nobody that actually lifts that.
• 34:46
  Everybody just goes and goes and goes forever.
• 34:49
  There's an element of why.
• 34:50
  I think about this a lot with myself.
• 34:52
  Why?
• 34:53
  Because then you're going to wake up when you're...
• 34:56
  I had less hobbies when I was your age
• 35:00
  Because all I cared about was work.
• 35:02
  I had one goal.
• 35:03
  I wanted to be successful.
• 35:04
  I liked what I was doing.
• 35:06
  I wanted to make it work.
• 35:08
  And I wanted to make money.
• 35:09
  And then, but I loved other stuff, but I didn't do any of the other stuff.
• 35:14
  Because I had kids.
• 35:15
  It was either like, I'm either working or I'm with my family.
• 35:17
  There's no time for much of anything else.
• 35:20
  Yeah.
• 35:20
  But as I got a little older and the money thing was less of an issue and I had a team around me, I started introducing more stuff into my life like racing cars or traveling.
• 35:34
  And the idea that if I hadn't done that and I'm at where I'm at today and I hadn't done any of those things, I'd have a much lesser life.
• 35:41
  So I do think there's this element where you figure out your number so you can bring all that other cool stuff into your life.
• 35:46
  And, and, and part of that is like, I know, I think I kind of know how you're wired.
• 35:52
  You want to help other people and you're doing it with what you do.
• 35:54
  Your platform does that, but also there's other ways I suspect you want to help people in the future.
• 35:59
  And once you have that number, you also give your permission, yourself permission to be way more free in that area.
• 36:04
  Versus just build, build, build.
• 36:05
  I don't know if that means anything to you.
• 36:08
  I'll listen back to this part of the podcast myself, since I've got my therapy session for the day.
• 36:14
  Cool.
• 36:14
  All right.
• 36:15
  Your turn.
• 36:15
  All right.
• 36:17
  So what's the thing you're most proud of that Augusta is doing that you would suspect CityTurf does not do and we should implement?
• 36:28
  Yeah.
• 36:29
  And you only know so much about CityTurf.
• 36:31
  I only know so much about Augusta.
• 36:33
  I think you're pretty fond of your online pricing and selling.
• 36:37
  I think you would say that's a really important thing that you've done.
• 36:39
  So you can't use that one.
• 36:41
  You've already got me thinking about that.
• 36:42
  I've thought about it for years, but you've resurrected it for me.
• 36:46
  Does anything else come to mind that you think you guys are doing that CityTurf's not that I need to be thinking about?
• 36:51
  Well, I don't think you need to do anything.
• 36:53
  I think you're doing just fine.
• 36:54
  I don't.
• 36:56
  I really, really like working on CityTurf again and getting back into the marketing world.
• 37:02
  I really like it.
• 37:03
  Yeah, I think, okay, again, I don't think you should do anything.
• 37:07
  I think the thing that I have seen really good outsider turns from us that I haven't seen you lean into as much is probably Facebook ads.
• 37:14
  We do not.
• 37:14
  We do.
• 37:15
  Zero.
• 37:16
  The reason I think that it'd be a huge opportunity is because you know copy so well.
• 37:20
  Okay.
• 37:21
  And you're so good at identifying the pain of the customer.
• 37:24
  And I think that's actually where it shines.
• 37:26
  And I think you have been super successful in the print side in the past.
• 37:31
  because uh you know how to speak to the pain of the customer and that facebook is a just a it's a postcard and um i think if you were if you took that same energy towards you put towards postcards and the copy there and put towards like short form video and facebook i think you'd crush and i think it would serve you even more so because it it has so much better data and that's the part where i
• 37:57
  And then you could take that and scale it just the way you like it versus so many elements of print just have limitations on.
• 38:06
  So, hmm.
• 38:07
  OK, so I am heading that direction, but I got to say it's pretty far down my list of things to do.
• 38:12
  That's interesting.
• 38:13
  I'm not saying it should be the top.
• 38:14
  I'm just saying.
• 38:15
  Yeah, yeah.
• 38:16
  No, but you think that we could make the economics on it work quite well is what you're saying.
• 38:20
  Oh, yeah, I just pulled the data because I was interested.
• 38:23
  I pulled a couple of locations close to you, and we're getting leads for like $10.
• 38:28
  On Facebook?
• 38:29
  Yeah.
• 38:29
  Okay.
• 38:29
  Yeah.
• 38:30
  So, you know, I'm not saying you should do anything.
• 38:32
  I'm just thinking you're very good at identifying pain and then turning that pain into words.
• 38:38
  I get excited about it.
• 38:40
  I will tell you it's a project that I'm excited about and I've hired a video photography guy.
• 38:44
  And so I've got like a guy that can help me with this.
• 38:48
  But I've identified it possibly incorrectly after talking to you as lower on the list.
• 38:54
  First, I need to get all these other key things really running smoothly.
• 38:57
  So that's great.
• 38:58
  Thank you for that.
• 38:59
  The caveat to that would be like, go get someone lethal at Facebook ads.
• 39:03
  There's a difference.
• 39:04
  There's so many tiers in this.
• 39:06
  And just get someone incredible.
• 39:08
  Because if you get just someone to just run ads for you, it's useless.
• 39:12
  You will 5X your lead cost.
• 39:14
  And so I saw the difference this year getting Matt, who's the head of Augusta Leads, who knows what he's doing and spends a lot of time.
• 39:21
  That's all they do.
• 39:22
  So you hired him full time.
• 39:24
  For Augusta Leads.
• 39:25
  Yeah.
• 39:26
  Would you have a concern about me hiring a contractor to do that?
• 39:30
  No.
• 39:30
  No, I would just go on, like pay 500 bucks an hour, get the best of the best, have them set it up to 20 hours or less, and then maybe three to four hours a week of optimization.
• 39:42
  Little things, for example, like it's more of a Google thing, but...
• 39:46
  not showing our ads on the display network.
• 39:48
  We have like 9,000 websites that we've aggregated that we just know doesn't perform as well.
• 39:53
  You're taking them out, yeah.
• 39:54
  So most people are like, oh, the ads display network stinks.
• 39:56
  It's like, well, actually, if you narrow it down, you can crush.
• 40:00
  Yeah, the exclusions.
• 40:01
  So it's all about like just getting an absolute savage.
• 40:05
  I think the creative part is that you're so good at it.
• 40:08
  And if you get an average person to be a media buyer for you, it won't perform well.
• 40:13
  But if you get a great media buyer, I think you'll crush.
• 40:16
  Okay.
• 40:17
  Thank you for that.
• 40:19
  That's the stuff I get excited about.
• 40:21
  Like where I get will be engaged.
• 40:23
  So interesting.
• 40:24
  And the part that is so fun with Facebook ads compared to print is the delay between execution versus data collection.
• 40:33
  Yeah.
• 40:34
  Because you can change one thing in the ad and see the bump.
• 40:37
  Versus print, it's like, okay, well, like, they might call me a week later.
• 40:40
  I can't, like, change the offer out quickly.
• 40:43
  It's so much slower.
• 40:45
  Versus, like, we could iterate really fast in even just three weeks on a Facebook ad and get it towards crushing.
• 40:50
  It's like right now, I can say this now because it's almost July 4th.
• 40:53
  Like right now, if you throw a July 4th something inside the ad and reference July 4th, you'll just crush.
• 40:59
  Like all of our Facebook ads right now are showing like get your property ready for July 4th.
• 41:04
  It's coming up.
• 41:04
  It's the best holiday of the season for your outdoor living area.
• 41:08
  Like little stuff like that on the creative side, I think you'll just dominate.
• 41:13
  All right.
• 41:14
  Very good.
• 41:14
  Thank you.
• 41:16
  All right.
• 41:17
  Next one.
• 41:18
  So based on what you know about me.
• 41:20
  Okay.
• 41:21
  And maybe what, you know, it's like, I think you know a decent amount about me.
• 41:25
  This is like the son having to tell the dad how to like run the personal finances of the family.
• 41:29
  Like what in the world?
• 41:31
  Hey, man, I bet you've got.
• 41:33
  Riley, what do you think about your dad?
• 41:34
  You think he's doing a better job?
• 41:36
  I would ask.
• 41:36
  Riley's really well put together.
• 41:38
  I ask.
• 41:39
  I have conversations with Riley.
• 41:40
  Like I value his opinion.
• 41:42
  You've done it.
• 41:43
  You're 30.
• 41:43
  You've done a ton of stuff.
• 41:44
  So are you 30 or 31?
• 41:45
  30.
• 41:46
  Okay.
• 41:47
  All right.
• 41:48
  So based on, but we are in the same world.
• 41:51
  So I just curious what you're going to say to this.
• 41:52
  So based on what you know about me and kind of how I think and my expertise and what you see me do, what would you tell me that you think I should be doing from a work standpoint right now?
• 42:02
  My first thought went towards media because it has been 10 years I've been making content.
• 42:08
  I feel like I'm on this grind.
• 42:10
  You have the stories and you have an incredible resume.
• 42:14
  And I would not say to necessarily give your number or be more open about that.
• 42:20
  But I do think the type of media and the format that you deliver in, if done correctly, could just crush.
• 42:27
  And...
• 42:29
  You also have a Rolodex that is like really, really solid.
• 42:31
  You know so many people with incredible businesses.
• 42:35
  And I think your comfortable format is interviewing and podcasting and long format.
• 42:43
  And I'd be really interested to see you getting really good at packaging and then shortening.
• 42:48
  Not like how long, not necessarily shortening the conversation, but like how do you make a 10-minute video with a friend of yours instead of a three-hour video?
• 42:56
  Yeah.
• 42:56
  Okay.
• 42:57
  That 10 minute video is only like no one else has access to them.
• 43:01
  They're not a credible entrepreneur.
• 43:03
  You have that pool of people and I would love to see them highlighted for my own selfish sake.
• 43:08
  And then being done in a format though, from a media perspective, that's more digestible versus like, I will watch your three hour podcast.
• 43:17
  But other people won't.
• 43:19
  And so I would love to see everything that you've done.
• 43:21
  I like to put a microphone and megaphone to it.
• 43:25
  It's like partly why we started this show.
• 43:27
  Partly one of my reasons for doing it was to be able to pass those things on to the next generation of entrepreneurs and specifically in home services.
• 43:35
  So I would love to see like the media side just blow up for you.
• 43:39
  And I don't know exactly what that recipe looks like because I'm still trying to figure that out.
• 43:44
  But...
• 43:45
  I think you are already knocking on this door.
• 43:48
  So you'll get there.
• 43:50
  I don't have these answers either, but I am.
• 43:52
  Yeah, I'm curious.
• 43:52
  Okay.
• 43:53
  All right.
• 43:53
  Thank you.
• 43:53
  It's so hard.
• 43:54
  It's so funny when people are like, oh, they just make content and they do.
• 43:57
  It's like, you know how hard it is to do this?
• 44:00
  It is.
• 44:01
  It is hard.
• 44:02
  Oh, man.
• 44:03
  And it's hard to get the feedback.
• 44:06
  It's such a broad audience.
• 44:07
  What do you care about?
• 44:08
  What do you like?
• 44:09
  What do you value?
• 44:10
  Because you could have a video that people actually care about, but the packaging wasn't that good.
• 44:15
  And so nobody saw it.
• 44:17
  It's really complicated.
• 44:18
  And then it's like, you got to balance what you want to make, because I'm interested in certain things.
• 44:22
  But then like, so recently, I was like, okay, I put a poll up.
• 44:25
  I'm like, guys, do you want to hear?
• 44:26
  I like three different types of content.
• 44:28
  It was like, more turnarounds, studio videos, kind of listicles, etc.
• 44:33
  Or do you want to hear more about my businesses, like how I run my business?
• 44:36
  And it was like 50% plus of the three options was, we want to hear more about how you operate.
• 44:41
  Oh, really?
• 44:42
  Okay.
• 44:42
  Yeah.
• 44:43
  Yeah.
• 44:43
  I made like five or six of those videos.
• 44:45
  We're talking about like five to 10% of the views compared to a regular video on my channel.
• 44:51
  Oh, okay.
• 44:51
  And so it's tough though, because now you have people like we have a whole team.
• 44:56
  I got to make sure the team gets fed.
• 44:58
  They have salaries.
• 44:59
  I can't just be like, I'm doing this because I'm interested in it.
• 45:02
  It needs to be packaged well.
• 45:03
  It needs to have a good thumbnail.
• 45:04
  It needs to have a good hook.
• 45:06
  And so what's also interesting, the thing that's helped me, though, is tracking link clicks and realizing that a video that might get 300,000 views might drive, let's just call it 200 leads.
• 45:17
  A another view of it video, though, that is really, really focused on my ICP, like who I'm going after.
• 45:23
  People are really interested in my core audience.
• 45:25
  It might do 4000 views and drive 100 clicks or 100 leads.
• 45:30
  Um, so we've been recently tracking the click on every single video for every single platform for every single business.
• 45:38
  And that has helped me realize that the vanity metrics of views aren't all that they're made out to be in terms of driving business results.
• 45:47
  And when you say clicks, are you talking like end card or are you talking in the description?
• 45:51
  Mostly the description.
• 45:52
  You can track, and cards are easy.
• 45:55
  QR codes, we have QR codes, we track those.
• 45:58
  But now in the description, we have individual links for every video.
• 46:01
  It takes a little bit longer, but then you have really good granular detail, like what videos drive business results versus which ones just get a bunch of views.
• 46:10
  I see.
• 46:10
  And it is interesting.
• 46:12
  Nonetheless, for anyone that says making content is easy, it is hard.
• 46:15
  Yeah.
• 46:16
  It is.
• 46:17
  Even when you have a $40,000 dog that you bring on for a great hook.
• 46:21
  A great hook.
• 46:23
  And still you can't get views.
• 46:25
  This is Oliver.
• 46:26
  We call him Ollie.
• 46:27
  He's a 10-year-old French bulldog.
• 46:29
  And I've got at least $40,000 invested in this guy, $3,000 to buy him, and the rest, keeping him here.
• 46:37
  That video did not do good.
• 46:38
  I know.
• 46:39
  I was like, come on, folks.
• 46:41
  What are we going to do?
• 46:43
  Oh, man.
• 46:44
  All right.
• 46:44
  All right.
• 46:45
  I'm just going to lead you to the next question here.
• 46:47
  I have heard you mention this before.
• 46:50
  I have purposely not done research on this because I wanted to come to much more of a student's perspective.
• 46:55
  Tiger 21, you've been doing it for six years.
• 46:58
  Oh, yeah.
• 46:59
  Let me first explain what it is and what you've learned being inside that group for the past six years.
• 47:05
  Yeah.
• 47:06
  So Tiger 21 is a group I had heard about and I joined after I sold Service Autopilot, but I'd heard about it previously.
• 47:15
  And then when I was going through the transaction to sell Service Autopilot, I talked to a couple references of investment banks.
• 47:23
  And so they're individuals that sold their companies and Tiger 21 came up several times.
• 47:28
  They're like, man, I got Tiger 21 after I sold my company.
• 47:31
  It was fantastic.
• 47:32
  Love it.
• 47:33
  So I'd heard of this thing as a financial group, and then I got it reinforced by these referrals.
• 47:39
  And so Tiger 21 is basically this referral group, not referral, financial group that it's focused on finance.
• 47:48
  And there are chapters all over the world.
• 47:50
  I think they're like, I don't know.
• 47:52
  1,700, 1,900 people in it.
• 47:54
  I don't know the exact number around the world.
• 47:56
  I think when I got in, there was under 1,000.
• 47:59
  I don't know.
• 48:00
  Some would call this the Illuminati.
• 48:02
  Yes, it's the Illuminati.
• 48:03
  Yes.
• 48:05
  It is a very, very successful group.
• 48:09
  It is.
• 48:09
  It is legitimately very successful.
• 48:12
  It's very, like you're not allowed to talk about the meetings at all because very private information is discussed.
• 48:18
  Oh, well.
• 48:19
  And so I have to, I feel like I have to be very careful what I say.
• 48:21
  Let's see, maybe a couple ways to describe it would be there would be a monthly meeting.
• 48:27
  And so there's local chapters.
• 48:28
  So I'm in one of what I got in, there were two chapters.
• 48:32
  Now I think there are six chapters in Dallas.
• 48:34
  And so each chapter has about 16 people in the chapter.
• 48:39
  And so like, for example, in the Dallas chapter, I know a bunch of people across different chapters because you go like tomorrow, I'll be at my Tiger 21 meeting all day long.
• 48:48
  And so, you know, there'll be, call it 16 people in the room.
• 48:53
  And periodically we get together with the other chapters and do stuff.
• 48:56
  And so the general format of it is at the beginning of the meeting, we do a world update.
• 49:02
  So what's going on in the world financially, that kind of stuff.
• 49:06
  What are numbers, metrics, things like that.
• 49:09
  Then we do an issues and opportunities.
• 49:12
  So everybody has an, goes around and they're like, what's something personal to share?
• 49:17
  Um, what's an investment you've recently made?
• 49:21
  What is something you need help from, from your board of directors in this room?
• 49:26
  And, um,
• 49:27
  Then usually there's a fourth question.
• 49:29
  This is how our chapter runs.
• 49:31
  Different chapters run differently around the country or world.
• 49:34
  And then the fourth question might be some question like, what do you think is going to happen with interest rates?
• 49:40
  That might be a, you know, that's been a question.
• 49:42
  It'll be, what do you think is going to happen with, you know, some investment?
• 49:45
  I'll bet we talk about SpaceX as an example tomorrow.
• 49:48
  I'll bet we do.
• 49:49
  And so it'll be that's so then then we usually have lunch and we talk about all that.
• 49:54
  Everybody takes a turn, talks about all that stuff and whatever you want to discuss kind of goes into goes on a list.
• 50:02
  And then we we literally go around and we just everybody gives you feedback on that thing.
• 50:06
  And then somebody does what's called a PD, which is called a portfolio defense.
• 50:11
  Yeah.
• 50:11
  You literally get up in front of the room and you lay out every single financial asset you have, where it's invested, how much money you've got.
• 50:19
  You lay out your entire tax structure, how much money you spend a year, how you manage taxes, how you manage trust, everything.
• 50:28
  So the idea is that you expose everything.
• 50:31
  It's completely confidential.
• 50:32
  And then people challenge you.
• 50:34
  Like, wait, what about this?
• 50:35
  Should you be doing that?
• 50:37
  It's that kind of a thing.
• 50:38
  And then sometimes our group will go to dinner or there will be a cocktail hour after or something like that.
• 50:43
  It's usually like the meetings about six, seven hours.
• 50:46
  So that's the structure of it.
• 50:48
  Been in it a bunch of years.
• 50:50
  I really like the people in the Dallas market.
• 50:53
  A lot of very, very, very wealthy people.
• 50:57
  I think most of them are pretty down to earth compared to what people would imagine.
• 51:02
  Is it application based or is it like you have to have a certain net worth?
• 51:04
  Like how do you get into that liquid liquid net worth above 20 million?
• 51:08
  So can't count your business.
• 51:09
  Can't count your real estate unless you're in the real estate business.
• 51:12
  I think, I think that's how it works.
• 51:14
  I don't know.
• 51:15
  I, I, I, what I just know, I just know that one stat.
• 51:18
  So, um, is it like a paid thing kind of like Hampton?
• 51:21
  Yeah.
• 51:22
  Yeah.
• 51:22
  It's paid.
• 51:23
  It's 33,000 a year.
• 51:23
  And, um, yeah.
• 51:26
  I mean, I think Hampton was largely inspired by Tiger and then changed.
• 51:33
  And there's several others.
• 51:34
  There's another – it's an application and a lot of people don't get in.
• 51:38
  Like they really are hardcore about who gets in.
• 51:42
  And there's other groups like this.
• 51:45
  There's a few others.
• 51:46
  And there's one that I think you have to have above 100 million network to get into it.
• 51:50
  So there's a couple things like this.
• 51:52
  I'm perfectly –
• 51:54
  If I were to leave the group, I wouldn't join a different one.
• 51:56
  I'm happy here.
• 51:57
  If I were to leave the group, I'd be joining a normal business group.
• 52:00
  And what have your biggest takeaways been now that you've been there for six years?
• 52:04
  Obviously, a lot of really cool people, wealthy people.
• 52:08
  What are some of your biggest takeaways?
• 52:10
  Everybody's an expert.
• 52:11
  They've got a thing.
• 52:13
  So I think maybe one of the biggest ideas that I might have had is I was going to...
• 52:18
  It's the same thing that happened to me when I sold Service Autopilot.
• 52:21
  So I sell the Service Autopilot business.
• 52:23
  We have a leadership team.
• 52:25
  We do all kinds of planning and like, we'll just call it meetings, like where you're trying to figure stuff out.
• 52:31
  So you go sit in a board meeting after I sell the business at the explore level.
• 52:36
  And, you know, I just thought it was going to go into a world where it's like,
• 52:39
  wow, when you're dealing in hundreds and hundreds of millions of annual revenue, that I was going to have all these wow moments.
• 52:45
  And it's like, you know, learned a few things, but it's largely the exact same thing, just executed with bigger numbers.
• 52:50
  That was my, like, so I was a little disappointed.
• 52:52
  And I really smart people, like legitimately smart people, but we weren't stupid people either.
• 52:58
  Like we were operating at a decent level.
• 52:59
  It's like, I definitely learned things, but it's like, I just thought there was going to be this
• 53:03
  oh my gosh, I never thought of that kind of moment.
• 53:06
  It's more like just do the basics, do the blocking and tackling and execute on it really well.
• 53:11
  Well, kind of coming into Tiger, I had this idea that you're coming into a world of people that probably have a tremendous amount of knowledge at a financial level.
• 53:21
  And the people that do are the people that do financial, like do investing as a career.
• 53:27
  But then you've got people that are real estate people
• 53:30
  And if you look at their portfolio, it's heavily weighted towards real estate.
• 53:33
  And they've got other investments, but that's their lane.
• 53:36
  Then you've got business guys like me that are operators.
• 53:39
  That's their lane.
• 53:40
  And they've got knowledge in other things.
• 53:42
  And so I think one of the big things I learned was like, we're all just human at the end of the day.
• 53:46
  We have expertise in an area.
• 53:49
  And then we...
• 53:50
  We have general expertise in lots of other areas.
• 53:53
  And some of us are stronger in certain investing than others.
• 53:56
  But just because you're really good at one modality does not mean you're a good investor.
• 54:00
  And I'm not saying that people are, there's something wrong with the people in the group.
• 54:03
  I don't mean that.
• 54:04
  It's just like, you just really quickly realize we can all only really be incredibly good at a few things.
• 54:11
  And so you might be a wonderful operator.
• 54:13
  And then when you come into the investing environment, you might be good, but you're not exceptional as compared to other people in the group.
• 54:20
  That's one thing.
• 54:20
  The other thing is everybody's human.
• 54:23
  Everybody worries about all the same stuff.
• 54:26
  The biggest thing everybody worries about is their kids.
• 54:30
  People aren't sitting around like, yeah, of course, you want to grow your wealth, but the conversations are about all the human stuff, your family, your kids, your kids.
• 54:39
  It's all about the kids.
• 54:40
  Like, how are they going to turn out in life with the money?
• 54:42
  You know, how do you pass money to them?
• 54:44
  What are they doing in their careers?
• 54:45
  How are their marriages?
• 54:47
  Like, it's all that kind of stuff.
• 54:48
  It's like everybody's human and everybody worries about the stock market because the stock market moves every day and you can see it move.
• 54:55
  But if you're in a private equity portfolio or in your venture or you're in real estate, you can't see the valuation moving.
• 55:02
  So when you hear people's language, they're way more worried about stocks than they were private equity or real estate.
• 55:09
  And that's just a very human thing.
• 55:11
  And so to me, there's a lot of incredibly smart people that are making really smart decisions.
• 55:16
  And we have great – it surfaces great conversations.
• 55:19
  But in the day –
• 55:20
  You know, it's every everybody's still trying to figure it out.
• 55:23
  And everybody worries about the same stuff in life.
• 55:25
  That would probably be one of my big takeaways.
• 55:27
  Now, I can kind of talk about how people invest, but I think that emotional element is really important to understand.
• 55:34
  Yeah, I think sometimes two people, when they join a community, they think it is going to be this like unlock or this massive aha moment.
• 55:40
  And then they get in there, like almost disappointed.
• 55:41
  Yeah.
• 55:42
  Because they realize that other people are going to assist through the same problems.
• 55:45
  They don't have this infinite level of knowledge that they thought they had from the outside looking in.
• 55:50
  And so what's the value of still staying in a community like that, where it's not like this aha, you're not, you know, everyone's not leagues ahead of you.
• 55:59
  You actually feel like you're probably contributing to other people in the group as well.
• 56:03
  Why still stay in a group like that for six years?
• 56:05
  I don't know if I'll stay in it forever, but because we travel a lot or we've dialed it back a little bit, well, a lot, I would be gone and miss meetings.
• 56:15
  I was really trying to plan my travel as best I could to miss as few Tiger meetings as possible.
• 56:20
  So I'd have this feeling because I'll be gone for a while and I'm driving to the meeting.
• 56:24
  This has happened to me multiple times.
• 56:25
  Like, I don't know if I, why am I still doing this?
• 56:28
  You know, because I haven't really invested in many deals.
• 56:31
  There's a ton of opportunity to invest in deals inside Tiger.
• 56:35
  And that's another thing.
• 56:36
  Somebody presents to us every month.
• 56:38
  And so you get access to deals.
• 56:41
  That's a really actually important thing I didn't say.
• 56:44
  And a lot of people do invest in those deals.
• 56:46
  I just don't.
• 56:47
  I figured out what my investment philosophy is, and I'm just executing my playbook.
• 56:51
  And I'm good.
• 56:52
  So I don't get that benefit from the group.
• 56:55
  And so sometimes going to the group, I'm like...
• 56:57
  I don't know, this is taking up time on my calendar.
• 56:59
  Should I do this?
• 57:00
  And then every time I, after I leave the meeting, it's like, there's no way I'm leaving.
• 57:04
  And so I think it's this element of, it's not that you need to get something out of it every single week or month, better said.
• 57:11
  It's like when you need something or you have a question or you're just trying to think through something or you listen to other people thinking through their challenges, once you get to a high level of wealth,
• 57:21
  and tax complication and trust complication, like one answer pays for a lot.
• 57:27
  It doesn't take much to get all your money back.
• 57:31
  And I really like the people a lot.
• 57:34
  And so it's the way I think about it is literally that simple.
• 57:37
  It keeps me way more informed.
• 57:39
  It keeps me in front of a lot of people have very different perspectives on business and life and investing.
• 57:44
  Yeah.
• 57:45
  It gives me when I need something, I could call.
• 57:47
  Like we had a fellow in our group that he was traveling somewhere and something happened.
• 57:51
  And somebody in Tiger, not even in the Dallas chapter, set a private jet to pick him up and get him back to Dallas.
• 57:57
  You hear those stories all the time.
• 57:58
  It's a very tight-knit group of people that will do anything.
• 58:02
  I feel like I could call anybody in Tiger and they'll take the call.
• 58:05
  And there's just a lot of little things like that that are incredibly valuable.
• 58:11
  So if someday, as an example, I had a medical emergency, there's an infinite number of people I could get on the phone that would get me in somewhere that I wouldn't be able to get in otherwise.
• 58:21
  And that's just relationships.
• 58:23
  It's back to that network concept.
• 58:24
  And so those are the little reasons why it's like, okay, I can't point to, I just saved $33,000 this month, but I can over time say that I'm convinced I get, it's worth every dollar.
• 58:35
  It's interesting, too, that you say that the things that they worry about or talk about the most are actually now nothing to do with the money or less to do with the money and more about the human aspects of life.
• 58:46
  Yeah, I mean, the whole group's a financial group, but people are good.
• 58:50
  Like, I just like people like the game.
• 58:52
  They're playing their games.
• 58:53
  They're playing the game because they like what they do.
• 58:56
  And of course, they think about their money.
• 58:57
  And of course, they want to grow it.
• 58:58
  They want to see their number go up.
• 58:59
  But my experience, and again, there's groups all over the world.
• 59:03
  My experience in the Dallas group is like most people feel generally like I'm fine.
• 59:09
  I'm good.
• 59:10
  And they're worried about other stuff at this point.
• 59:13
  And they're just playing the game because –
• 59:16
  They like doing it.
• 59:16
  And then another thing I observe is that people get caught.
• 59:21
  Like all of us, you get caught in a trap where you just keep going.
• 59:24
  This is what I've been doing for 25 years.
• 59:25
  This is what I'm going to keep doing.
• 59:27
  And so like I travel so much and people are like, man, I would like to do all that traveling.
• 59:31
  And I'm like,
• 59:35
  you could do, you never need to work again.
• 59:37
  You could do all this traveling.
• 59:38
  But so Pete, we all have this risk of getting stuck and not doing all these other things we'd like to do.
• 59:45
  And that happens even at this level in a major way, because you have so many responsibilities.
• 59:51
  I don't think I'm saying anything I shouldn't be saying publicly.
• 59:55
  Another observation is smaller owners or people that own smaller businesses get trapped in their business and they don't know how to find the key people to run their companies.
• 1:00:05
  That happens at a very, very high level.
• 1:00:07
  Companies are doing massive amounts of money.
• 1:00:11
  the same exact problem, like how do I find the person that can really free me up?
• 1:00:17
  You're doing massive money, but you're the CEO and you're still literally stuck in the business.
• 1:00:22
  That still happens at huge numbers, huge numbers.
• 1:00:26
  And people are still worried about what will happen to their business if they hand it over.
• 1:00:30
  That doesn't change.
• 1:00:31
  There's lots of that stuff.
• 1:00:33
  Something else I'd tell you is most people are investing in assets.
• 1:00:36
  Like they own things.
• 1:00:40
  they own deals, businesses, they're invested in private credit, they're invested in public equity, they're invested in venture, like their money is heavily locked up.
• 1:00:52
  You know, people have liquidity, but a lot of money is not liquid.
• 1:00:55
  Yeah.
• 1:00:56
  And that's a really common thing you'll see.
• 1:00:58
  So they're going to, people are going to be in, and if you were to just look up ultra high net worth individuals, you'll find that this is a pretty common story.
• 1:01:06
  It's not just a tiger story.
• 1:01:08
  And tiger does make this data public of how people invest their money.
• 1:01:12
  So I'm not saying anything too private here.
• 1:01:14
  But if you look, you'll find that they're invested in private equity, real estate, public equity, fixed income, private credit, hedge funds, Bitcoin, commodities, all that.
• 1:01:27
  It's like they have allocations in lots of different places all inside their portfolios.
• 1:01:33
  And then if you're a real estate guy, you're going to be totally cool with tons of debt.
• 1:01:38
  If you're not a real estate guy, you'll probably be less comfortable with lots of debt.
• 1:01:42
  Most of the people that I know have their homes paid for.
• 1:01:44
  It's like things like, it's just, you know, it's all over the board, but that's some of the things I've learned.
• 1:01:48
  Very cool.
• 1:01:49
  I have played with the idea of doing some sort of like higher tier of home service business owner and it being like non-business almost.
• 1:01:57
  Like whether it be like investing or trusts or just like – but more like relationship, lifestyle, health, travel, things like that.
• 1:02:04
  Just I've played with the idea.
• 1:02:06
  Even just seeing like what you do with Academy and like the relationships that were formed inside the community.
• 1:02:11
  I still run into people all the time.
• 1:02:12
  And they're like, oh, yeah, like I met that person in Academy.
• 1:02:15
  I'm like, yeah.
• 1:02:16
  There's got to be something at that level where it's not just how to do sales and how to do your door hanger, but it's like it's a little higher level.
• 1:02:24
  I've thought about doing the same thing as I've thought about what I'm going to, you know, what I thought about what I was going to do next.
• 1:02:29
  And I will tell you, it's one of the best things I ever did was Academy.
• 1:02:33
  I really, really liked it.
• 1:02:35
  So it's something I recommend, but I will tell you, I do not think it's the best use of your time or money compared to what you've got right now.
• 1:02:42
  So if you're optimizing for what might make you give you the most enjoyment personally and satisfaction, yes.
• 1:02:49
  If you're optimizing for building wealth and a big giant thing, you don't do it.
• 1:02:56
  It's very distracting.
• 1:02:57
  Remember what JP50 said to JP30.
• 1:03:00
  He said not to worry about the money as much.
• 1:03:02
  Agreed.
• 1:03:03
  Yeah, that's the question you have to ask yourself.
• 1:03:06
  Yeah, 100%.
• 1:03:07
  Yeah.
• 1:03:08
  Okay.
• 1:03:08
  But it's good.
• 1:03:09
  We're going to move to the last question on the docket.
• 1:03:12
  And this is, I think someone had asked this and we kind of tailor it a little bit for the show.
• 1:03:18
  But what mindset do you see as the biggest obstacle for entrepreneurs going from zero to a million and then from one million to 10 million?
• 1:03:25
  So I'll give my two cents and then I'll volley back to you.
• 1:03:28
  I kind of tried to break it down.
• 1:03:29
  So from zero to a million, I see the constraint mostly just selling and then beginning stages of management.
• 1:03:36
  So figuring out how to sell, whether it be online, digital, print, just getting a sale, identifying the pain of the customer, having an offer that's appealing, and then being able to actually consummate that sale and get enough of them.
• 1:03:51
  And then management, because you have to typically get to a million, you need employees.
• 1:03:55
  And so how do I actually manage employees?
• 1:03:58
  But from a million to 10 million, I think it really switches.
• 1:04:00
  And I think a lot of times people just think at a million, what I have seen be a limiting belief is like, oh, I'll just keep doing what I've done to get to a million.
• 1:04:09
  And I'll get to a million, I'll double it, and I'll triple it, and I'll go to 3 million.
• 1:04:11
  Yeah.
• 1:04:12
  Versus from a million plus, especially getting closer to 10 million, I see leadership and decision making as really the skills that are required and leadership being very different than management.
• 1:04:24
  And requiring now to hire managers underneath you as the founder, the leader of the organization, that being a very different skill than managing the technicians or the managers.
• 1:04:36
  frontline team members.
• 1:04:37
  And so that's kind of how I bucket it.
• 1:04:38
  It was like zero to a million is sales and management.
• 1:04:42
  Very entry-level management, I would say, because you usually need five, six, seven, maybe employees.
• 1:04:46
  And then as you get to 10 million, it's more about leadership, decision-making.
• 1:04:50
  No, I'll say for you, it's breathing and smiling, things like that.
• 1:04:54
  Totally agree with that.
• 1:04:55
  I have two different ones, but I totally agree.
• 1:04:58
  And with the 5 for 50 thing, I've got this thing that I haven't finished called these roadmaps.
• 1:05:03
  And so I think about the business as two engines.
• 1:05:06
  like the revenue engine and the recruiting engine for people.
• 1:05:10
  And so it's sort of aligned with what you said.
• 1:05:13
  The revenue engine is the really important one under a million.
• 1:05:16
  And then the recruiting is the one after.
• 1:05:19
  So let me give my two answers.
• 1:05:21
  So I'll do the one to 10 million first.
• 1:05:23
  It really becomes, it's about, I agree with what you said about leadership, but my answer was it's very much about people, which is a leadership thing.
• 1:05:31
  It's like getting the right people on the team and getting good at finding people.
• 1:05:35
  Like that's really important.
• 1:05:36
  really important.
• 1:05:38
  And so if you're not finding the right people, you're either not able to grow, and so then you shut down the revenue machine, or you are growing, but you're just letting the wrong people on the team and you end up with a company you despise because you have the wrong people.
• 1:05:52
  You hate it.
• 1:05:52
  It feels painful and hard.
• 1:05:54
  And so the people side after a million is just so critical.
• 1:05:58
  On the zero to one million, I agree with what you said, which is aligned with what I talk about in the roadmap.
• 1:06:04
  But I went with this idea that nobody can do it as good as me.
• 1:06:08
  If you look at a lot of companies that get stuck at around 350,000 in revenue or half a million revenue, it's a story of...
• 1:06:16
  It's a story of maybe they don't have the money to hire the person or they don't know who to hire.
• 1:06:19
  But it's also a story of they can't install this thing like I install it.
• 1:06:24
  They can't design it like I designed.
• 1:06:26
  They can't sell it like I sell it.
• 1:06:28
  They can't do the work.
• 1:06:30
  They're not going to be as good at the front door, Ms. Smith, as I am.
• 1:06:33
  It's a lot of stories of nobody can do it like me.
• 1:06:36
  And so you don't hand off the tasks.
• 1:06:40
  You don't trust somebody else.
• 1:06:42
  You don't invest enough in another person to train them up so they can be as good as you.
• 1:06:45
  So those are my two.
• 1:06:47
  And I think if you can't recruit, to your point, it's almost like supply and demand.
• 1:06:50
  Like most of the time to get to a million, you just need more demand.
• 1:06:54
  You need more customers.
• 1:06:55
  You need more leads.
• 1:06:56
  But then after that engine has – you have that momentum.
• 1:06:59
  I think you said this.
• 1:07:00
  I apologize if not.
• 1:07:03
  any business like doing 10 million plus, it's like it already has so much momentum.
• 1:07:06
  Yes, I said that.
• 1:07:07
  I believe that.
• 1:07:08
  It's already moving so much, right?
• 1:07:10
  And it's hard to stop it because like it just has so much momentum behind it.
• 1:07:14
  And then it inevitably is no longer a demand issue.
• 1:07:17
  It is a supply issue.
• 1:07:18
  Can I get good people?
• 1:07:20
  Can I build out a leadership and management team?
• 1:07:23
  Can I create the systems where this all doesn't fall apart because of the weight that's being put on it?
• 1:07:26
  And so I think it's almost like to your point, even if we boil it down lower, it's like you got to get demand.
• 1:07:32
  And once you have enough of that, it's all about just making sure you have the supply to be able to make sure you don't fall apart.
• 1:07:38
  Yeah, I agree.
• 1:07:40
  I had one other little idea here that isn't really what you were asking, but your word mindset just triggered this random little idea.
• 1:07:45
  It was a mistake I made.
• 1:07:47
  And so I thought I'd mention it for anybody that might feel this way.
• 1:07:51
  So when I got started in the business, I didn't really know the business.
• 1:07:55
  The thing you have to remember is I was a high school kid that mowed lawns and trimmed bushes.
• 1:08:00
  That's all I did.
• 1:08:01
  Then I out of the business for years and I get back in the business for CityTurf.
• 1:08:05
  Okay.
• 1:08:06
  So I thought we needed to look really professional and bigger and like to compete.
• 1:08:11
  Like when I started CityTurf, True Green Landcare was big and residential in my market.
• 1:08:17
  So people think of True Green as fertilization.
• 1:08:19
  The Landcare division was doing lots of maintenance.
• 1:08:22
  There was a bunch of bigger companies.
• 1:08:24
  It was heavily contracts.
• 1:08:26
  And it was a very different business than it is today.
• 1:08:28
  Like when we went selling over the phone, quoting over the phone, that was really unusual.
• 1:08:33
  Charging a credit card, way, like crazy, unusual.
• 1:08:37
  And so my, it's very, the business has really changed.
• 1:08:40
  Where I'm going with that is I just felt looking at the market, I needed to be bigger.
• 1:08:44
  And I don't know if this is a thing people feel like they want to represent themselves as bigger.
• 1:08:49
  But the simple concept here or thought is...
• 1:08:52
  play to your strength.
• 1:08:53
  Like we are going to have different phases of business.
• 1:08:56
  And when you're small, I'd play that angle up in terms of what that means to how you'll serve the client and be present with the client.
• 1:09:05
  So as your business progresses, you're going to have
• 1:09:07
  You can do different things to serve the client and treat them differently.
• 1:09:12
  And I've played to that strength.
• 1:09:13
  So just don't, I don't think it's necessary to try to represent yourself as some big company when you're not a big company.
• 1:09:20
  I don't know if that will resonate with anybody, but that's something I also noticed in the service autopilot world that I was like, hey, you know, if it were me and I was running this business, I'd totally play the angle.
• 1:09:29
  There's only four crews here and we are going to take care of you like nobody else.
• 1:09:34
  Yeah.
• 1:09:34
  And it's funny because I always say it's like you have this identity crisis because you you have that angle.
• 1:09:39
  And I'm always a big believer in like play to your strengths.
• 1:09:42
  Don't try to be something you're not when it comes to the size of your business, because they will inevitably be disappointed if they think you have 100 members and you show up every single week and then they don't like you.
• 1:09:51
  And they're like, can I have someone else?
• 1:09:52
  You're like, no, you're kind of stuck with me.
• 1:09:55
  But then as the business grows, you eventually have to get to the point where, okay, now I don't have four crews.
• 1:09:59
  I have 15 crews.
• 1:10:00
  And now I've got to convince them that like I almost want to change my identity to, okay, now we are more professional.
• 1:10:06
  And I think it's when you start trying to become something you're not.
• 1:10:08
  And it almost shifts to where when you're bigger, you're like, okay, now I'm going to try to appear smaller because I'm trying to market to what I'm not.
• 1:10:16
  Like Apple trying to appear small.
• 1:10:17
  And then like you got the guy in his garage trying to appear massive.
• 1:10:21
  Right.
• 1:10:21
  Very interesting.
• 1:10:21
  Yeah.
• 1:10:22
  Agreed.
• 1:10:23
  Okay, I want to go back.
• 1:10:24
  We're going to go to non-financial advice in just a second, but I want to go back.
• 1:10:27
  Because the questions at the beginning, you had better questions for me than I had for you.
• 1:10:33
  Really?
• 1:10:33
  Okay.
• 1:10:34
  Yeah, because I took it from a different angle.
• 1:10:37
  And so now I have my real questions.
• 1:10:38
  I haven't thought about this, but in the last three minutes.
• 1:10:42
  I couldn't let this opportunity go by.
• 1:10:43
  So you asked really specific questions like CityTurf and Augusta.
• 1:10:47
  So I'm going to ask you really specific questions.
• 1:10:50
  Okay.
• 1:10:51
  I'm going to not recant.
• 1:10:53
  What's the word?
• 1:10:54
  Take back my other questions, I guess.
• 1:10:55
  You could have extra questions.
• 1:10:57
  You have to take them back.
• 1:10:58
  There you go.
• 1:10:58
  Yeah, this is my third and my fourth question.
• 1:11:00
  We're the moderators.
• 1:11:01
  We can just do this.
• 1:11:02
  So if you were running HomeWorks right now,
• 1:11:05
  Knowing what you do know, which I know is limited, but like knowing what you do know about the technology space, service autopilot, where you wanted to take it, current players and even business owners that you know in the market.
• 1:11:16
  If you were like dropped into my shoes, what would be the first things you'd be looking at or which direction would you be pushing me in the direction of focusing on?
• 1:11:26
  I think I need a little more context there.
• 1:11:28
  When you say focusing, are we talking about building the tech, selling to clients?
• 1:11:32
  What do you mean exactly?
• 1:11:33
  Great point.
• 1:11:34
  I think just more or less, like I know when you left Service Alphabet, you have a pretty clear vision of what you wanted to build.
• 1:11:40
  And you obviously saw that there was a need for, in the market for that development.
• 1:11:45
  If I were to build a new thing, yeah.
• 1:11:46
  Or even where you were taking Service All Pilot version 2.
• 1:11:48
  Oh, yeah.
• 1:11:50
  Oh, yeah, yeah, yeah, yeah.
• 1:11:51
  And so- Service All Pilot was a little stuck.
• 1:11:53
  So what I'd build now is different than what I'd build if I still own Service All Pilot.
• 1:11:57
  Okay.
• 1:11:58
  Oh, man.
• 1:11:59
  Okay.
• 1:11:59
  So that's much more blue ocean way of looking at it.
• 1:12:02
  So assuming you have backend service hotspot where you feel a little stuck because you do have, you have clients, you have infrastructure.
• 1:12:08
  It's not like you're building from scratch.
• 1:12:11
  What would you be thinking next like few years?
• 1:12:12
  Because for example, from my perspective, I am very much thinking of us as a
• 1:12:17
  What will AI not be able to replicate being really, really good at that and then making it easy for people to pour into?
• 1:12:23
  So, for example, dispatch routing elements around some payment stuff.
• 1:12:28
  But like a lot of automations, reports, et cetera.
• 1:12:31
  I feel like AI is going to do a fantastic job of that.
• 1:12:33
  And so I'm really trying to focus on like, what's our differentiator?
• 1:12:36
  What do we do so well that they're not going to be able to copy and that they wouldn't want to put all of their data into some...
• 1:12:42
  something they just spin up, vibe coding.
• 1:12:45
  That's where my head is at right now, but where would your head be at from the next 36 to 60 months in this space, CRM world?
• 1:12:53
  I don't know if I'm going to answer exactly what you're asking.
• 1:12:55
  So man, redirect me here because there are so much we could talk about, but it may be different now because you can vibe code so much stuff.
• 1:13:02
  But when I was thinking about the next service autopilot, I was one thing I was going to do that you can't that I don't think you can or should do.
• 1:13:10
  And then the other thing that I was thinking about, I think, applies.
• 1:13:14
  The first thing is I was going to go way up market, smaller business, fewer clients, smaller business.
• 1:13:20
  paying us much more money.
• 1:13:21
  And I don't think you can do that.
• 1:13:22
  It's not it's not that you can't serve bigger clients.
• 1:13:26
  You will.
• 1:13:27
  But I was going to exclusively focus on and they might be a smaller client there is willing to pay up because they know they're going to be big someday.
• 1:13:34
  The problem that we had at Service Autopilot is it's almost impossible in the technology to serve the smaller company and the big company doing.
• 1:13:42
  I'll use the example of a company that does 150 jobs a day and a company that does 2000 jobs a day.
• 1:13:48
  They are literally completely different organizations in the way they think and the way they – the stuff they have to do on the – within the UX.
• 1:13:59
  And so it's really hard to serve both of them really, really well.
• 1:14:02
  So I was just going to go way up market.
• 1:14:05
  You can't do that, though, because you've got Augusta and you've got to build for Augusta and the broader market anyway is a smaller company.
• 1:14:13
  And so I think you have to kind of understand as much as you won't like this.
• 1:14:20
  who you're going after and say, I'm going after $3 million.
• 1:14:24
  Just an example, I'm not saying this is the number, but I'm for $3 million companies and less, which is at the end of the day, like 90% of the market.
• 1:14:32
  But I think you have to kind of decide because, and I can't figure out how AI changes this yet, because a city turf operates completely different than a,
• 1:14:43
  and operate completely different than a lot of the service autopilot members, CityTurf never got the functionality they needed.
• 1:14:49
  They just didn't.
• 1:14:51
  And the small guys got functionality that was just, they didn't need it and it complicated the screens.
• 1:14:57
  And so like, how do you find the sweet spot?
• 1:14:59
  That'd be one thing to just put a lot of thought into.
• 1:15:02
  Who is the sweet spot and how do I only build for them?
• 1:15:04
  And I'm totally okay turning away the CityTurfs.
• 1:15:08
  and certain other types of companies.
• 1:15:10
  One thing you do have going for you is because you're building for Augusta, you have to be able to handle franchises and or multi-location.
• 1:15:18
  A lot of software products don't handle that.
• 1:15:20
  And if you look at across franchises and multi-location, they tend to be smaller.
• 1:15:24
  They'll fit right into your world.
• 1:15:25
  So like that's an advantage right there.
• 1:15:28
  The serving the franchise people or the multi location people is also very different than serving the one off guy.
• 1:15:34
  So it's just back to this clarity.
• 1:15:37
  Okay, that's one thing I think about.
• 1:15:39
  I just don't know how if I was doing another service, I can live in both worlds.
• 1:15:43
  Maybe I'm wrong.
• 1:15:43
  Maybe we could have.
• 1:15:44
  I just don't know how.
• 1:15:45
  I talk to too many people, listen to too many onboarding calls, too many sales calls, too many everything, too many feature requests.
• 1:15:52
  It's just, I don't know if it's possible to go too far upmarket in the same software.
• 1:15:57
  And then...
• 1:15:58
  The other one that I had decided on, and this is the thing I don't know for you because of where we're at in the market.
• 1:16:07
  If I was building a new service autopilot, I was going to build hardcore scheduling, costing, just be the best of the best at that and not do the other stuff and build APIs into HubSpot, Salesforce, Salesforce.
• 1:16:21
  whatever other system.
• 1:16:22
  But that made sense because I was going up market.
• 1:16:25
  Even in a world with you being able to vibe code and turn out all kinds of functionality, we won't know the answer to this for years.
• 1:16:33
  Our system's going to become so...
• 1:16:36
  Like service autopilot could never build everything we dreamed of.
• 1:16:40
  And we promised this in the early days, this one system to run your business.
• 1:16:43
  It was a pipe dream.
• 1:16:44
  Well, now maybe it's less of a pipe dream.
• 1:16:47
  But can you even build a really organized, well put together focused system when you can build anything as fast as you want it every time you have an idea?
• 1:16:55
  I suspect the new problem is systems are just going to be a ginormous mess.
• 1:16:59
  Because now you can do everything you want to do.
• 1:17:03
  But should you?
• 1:17:04
  And that's something I've been thinking a lot about with technology.
• 1:17:07
  And so for you, I don't have the answer, but I think you still have to have one hardcore lane that you are by far the best at.
• 1:17:16
  And everything else is good, but it's not really a focus.
• 1:17:19
  And I think scheduling and costing is the defensible lane in an AI world.
• 1:17:24
  like really having all that data and being incredibly good at it.
• 1:17:28
  Like even in a world where an AI model is going to be able to do the scheduling for a company, there's going to be a long period of time where it's like, okay, yes, all this could be contained inside a model, but people are never going to be comfortable with that because they have to verify on a screen.
• 1:17:42
  They still need the CRUD database that put Pate's data back out to the screen where it's like, yes, that did get done.
• 1:17:49
  Yes, that did get invoiced.
• 1:17:51
  They need to see it.
• 1:17:52
  So this idea that the user interface is going to be completely reinvented and changed, I don't buy it because while it's possible it could be reinvented and changed, people are not going to let it happen.
• 1:18:02
  Ms. Smith, who's 53 years old, answering the phone inside a home services company, is not going to live in a completely new paradigm where all she does is talk to her system and trust that everything's happening correctly.
• 1:18:15
  She wants to see it on her screen, and that interface is going to last a long time.
• 1:18:19
  And where I'm going with that is that if we still have to have a lot of interface, if you have a massive system, people's brains shut down.
• 1:18:26
  So it's like on one hand, you guys could build it all and it could be great.
• 1:18:30
  But what will accidentally happen is because of the audience you're selling to, it'll be too much.
• 1:18:34
  Like they'll love it.
• 1:18:35
  The sales dream will be great.
• 1:18:37
  But when they're in the system, it's like, oh.
• 1:18:39
  It's too much.
• 1:18:40
  So I don't have the answer to it, but really saying this is what we're about and being really focused on that, I think still matters in a world where you can build anything.
• 1:18:49
  And I think it's clearly scheduling.
• 1:18:51
  And then how can you start, like I think about the new product still, even though I'm not building one, I'll never be able to stop thinking about what would be next.
• 1:19:01
  How can you completely reinvent inputs?
• 1:19:04
  The idea that my team, I've thought about this a lot.
• 1:19:08
  The idea that my team uses a mobile device to put in what they did makes no sense to me.
• 1:19:15
  If that is what the world looks like in five years, I can't fathom it.
• 1:19:20
  If I was building today, I'm building something totally different.
• 1:19:22
  You're using a mobile device.
• 1:19:24
  You're not typing in your device.
• 1:19:25
  My technician is not typing.
• 1:19:27
  I have a lot.
• 1:19:28
  I've actually already code vibes.
• 1:19:29
  I've already vibe code something around this just to see what it would look like because Philip and I were talking about it.
• 1:19:35
  And so how can you reinvent the entire input?
• 1:19:40
  If I'm asking a guy that speaks Spanish to have to type in all this stuff and what chemical he used and how many products he used and customer notes, like this is what I want to tell Ms. Smith.
• 1:19:52
  Versus this is what the office needs to know.
• 1:19:54
  This is what the tech that's going to be back on the property in three weeks needs to know or two months.
• 1:19:59
  You don't get anything because they have to type.
• 1:20:02
  You get no information.
• 1:20:05
  So what's the input mode that would capture the most amount of information and then automatically take the information and send it where it needs to go?
• 1:20:12
  This needs to go to the customer.
• 1:20:14
  This needs to go to chemical tracking.
• 1:20:15
  This needs to go to office notes.
• 1:20:17
  This needs to go to the notes to the next tech that's on the property.
• 1:20:20
  What's that new...
• 1:20:22
  mode of capture.
• 1:20:23
  And then also, if you think about a lot of the guys are so busy, like they don't want to write all this stuff.
• 1:20:28
  Like at CityTurf, we have this really good process of leaving stuff on your door and a text still writes on it.
• 1:20:34
  It's personal.
• 1:20:35
  That's great, except most people don't write very good.
• 1:20:39
  You know, and I'm not knocking anybody.
• 1:20:41
  I think my writing's got worse too.
• 1:20:43
  I'm not like putting myself out there as better than anybody else.
• 1:20:46
  But, and so that, on one hand, it's a nice experience for the client.
• 1:20:49
  On the other hand, it's like, can they read it very well?
• 1:20:52
  So how do you get the information and more information to the client better?
• 1:20:55
  Those are the big things.
• 1:20:57
  So if you think about where you guys spend your brain power,
• 1:21:01
  It just keeps pulling you back to scheduling, billing, and costing, in my opinion.
• 1:21:06
  Like, yeah, there's all this other really cool stuff you should do.
• 1:21:09
  I'm not saying you don't do it because it's just that you have to pick a lane that you're just going to dominate and a lot of other stuff is going to get ignored.
• 1:21:18
  And at the end of the day, my belief is people buy your system for scheduling and billing and understand their data more than they're going to.
• 1:21:24
  I'm not saying you don't do marketing, but if you have to rank it, they're buying you for that.
• 1:21:28
  They didn't come into your system because I need marketing data because they want to send an email blast because I want to create a to do because I want to respond to a text message.
• 1:21:36
  That's not why they bought your system first.
• 1:21:37
  They bought your system first for scheduling and billing.
• 1:21:40
  And that is the unique selling proposition here.
• 1:21:43
  So it has to be the thing above all the things that you destroy all the competition with.
• 1:21:47
  And the other stuff, you know, it matters.
• 1:21:50
  I'm not saying you don't do it, but that's how I think you have to think about it when you allocate resources.
• 1:21:54
  You mentioned job costing.
• 1:21:57
  Would that be mostly for projects?
• 1:21:59
  No.
• 1:21:59
  No.
• 1:22:00
  So still at the- I want to know my COGS by division, by service.
• 1:22:04
  I have all of it at CityTurf, but it requires- We have had it forever at CityTurf.
• 1:22:13
  We can tell you our COGS, our gross margin, our man hour rate, our labor rate.
• 1:22:18
  We can tell you all of it.
• 1:22:19
  Do you not think that's something that would be done very easily with vibe coding or not really?
• 1:22:22
  No.
• 1:22:22
  Oh, no.
• 1:22:23
  Yeah, yeah, yeah, yeah.
• 1:22:24
  You can.
• 1:22:24
  Yeah, yeah, yeah, yeah.
• 1:22:25
  It needs to be in your system.
• 1:22:27
  Oh, I see what you're saying.
• 1:22:28
  The inputs need to be there.
• 1:22:29
  Got it.
• 1:22:30
  Yeah, this is what I say the most important things for your system to do are scheduling, billing, and that.
• 1:22:37
  Give me the data for the operational side of the business.
• 1:22:40
  So, well, we've talked years ago, like, tell me what to do with the data.
• 1:22:45
  Like, we finally can live in the – that's really hard to do in service all pilot days.
• 1:22:50
  But now you guys can run models across the data and say, this is where the problem is.
• 1:22:56
  This is what you should do.
• 1:22:57
  You can start surfacing those opportunities to your clients.
• 1:23:01
  Yeah.
• 1:23:01
  If you think about just what you could do going down scheduling, billing, and giving them data to figure out how to price better, to figure out where they have density problems, to figure out all that stuff out, it's magic.
• 1:23:12
  And that system does not exist.
• 1:23:14
  And that system is completely solvable right now.
• 1:23:16
  And that's the system I'd be building.
• 1:23:19
  to the detriment of every other piece of functionality.
• 1:23:21
  I'd let, like to the detriment of email marketing and marketing and all the other stuff.
• 1:23:26
  Like, again, I would, the ideal is it's all in one system, but even in a vibe coding world, it's not writing code.
• 1:23:33
  Like writing code is only part of it.
• 1:23:35
  Like designing it is a mass, as you know, it's like the biggest, it's the hardest part of this whole thing, thinking about what gets in and how all the data interacts.
• 1:23:43
  And the other thing that I think is really important
• 1:23:45
  Hopefully I'm not going too far with this.
• 1:23:47
  Oh, that's great.
• 1:23:47
  The other thing is really... My personal coaching call.
• 1:23:49
  Yeah.
• 1:23:50
  The other thing that's really important is like, I think when you're writing software right now, there could be this default where it's like, okay, well, I'm just going to let AI solve all this stuff.
• 1:23:59
  Okay.
• 1:23:59
  So like, we're just going to accumulate data and then we're going to run a data model over top.
• 1:24:05
  We're going to run an AI model over top of it.
• 1:24:07
  And we're just going to extract all the data.
• 1:24:09
  Or we're going to let the data figure out or the model figure out how to do all this stuff.
• 1:24:14
  And I think what we're going to and I know there will be open source models, but I think what we're going to find ourselves in is people are going to buy software thinking it's going to cost them 300 a month.
• 1:24:21
  And when they when they have a massive data set, it's going to cost them 1500 dollars a month.
• 1:24:26
  in the future and so i think as a builder of technology we also have to be really cognizant of what's being built as an algorithm what's being built as a an ai model it's going to run over data how do we really get good at carving out just the data needed to pass that into the model stuff you're probably dealing with right now like that it's i use that as an example to say
• 1:24:49
  There are so many decisions that are going to have to be made to be the best scheduling, billing, and costing system out there.
• 1:24:55
  It doesn't leave a crazy amount of time to be the best at every other thing.
• 1:24:59
  You have to have estimating too.
• 1:25:01
  I put that as the fourth.
• 1:25:02
  That has to be really good because it's too tight.
• 1:25:05
  I actually don't think you have to have estimating.
• 1:25:08
  I've thought about this a lot because I've convinced Riley to build estimating into every chat because I'm staying on SA.
• 1:25:14
  So I'm like, could I give up estimating at SA?
• 1:25:16
  Yes, we're moving it to every chat.
• 1:25:19
  So I don't think you have to have it, but it is a really nice bundle.
• 1:25:23
  Again, I hope we probably just lost everybody in the conversation, but I will tell you one of the things.
• 1:25:27
  So I did it at the end.
• 1:25:28
  I was going to do it at the beginning.
• 1:25:29
  I was like, no, I'll do it at the end once everyone, all the retention curve is off.
• 1:25:34
  So the value of having estimating in the same system is if you can create a mechanism where you can click a button and auto schedule all of it.
• 1:25:42
  Do you guys do a package concept like we did?
• 1:25:44
  Okay.
• 1:25:45
  Can you automatically create the packages?
• 1:25:47
  Can you automatically create this?
• 1:25:48
  That's where estimating gets really cool.
• 1:25:50
  We had some of that in service autopilot.
• 1:25:53
  It worked best for packages.
• 1:25:54
  I don't know how much it was actually used though.
• 1:25:56
  And that's why I said, how far do you need to go with estimating?
• 1:26:00
  I'll tell you, if you go to, this is estimating, perfect example for big companies versus small companies.
• 1:26:05
  Okay.
• 1:26:05
  If you think about service autopilot estimating, we had cost.
• 1:26:09
  I don't know if you remember, but we had all this costing stuff in there, all kinds of things.
• 1:26:13
  It was never enough for the big companies.
• 1:26:15
  And it blew the mind of all the small guys.
• 1:26:18
  Blew their mind.
• 1:26:19
  Like just like number one thing that people wanted off the screens because they don't actually do that stuff.
• 1:26:25
  And so this is it's a perfect dilemma of how do you build something that works for both markets?
• 1:26:31
  Yeah.
• 1:26:32
  And yeah, so those are some, I mean, I got a lot more ideas, but those are some of the big ones that I'd be thinking about.
• 1:26:38
  Okay, that's great.
• 1:26:38
  That was my first one.
• 1:26:39
  Now I got to replace my second one.
• 1:26:40
  All right.
• 1:26:41
  I'm in this, I won't say strange position, but like a lot of the things that I currently have in the oven, I need to just wait on.
• 1:26:49
  I have great teams working on certain problems in all three departments.
• 1:26:53
  So we have homeworks, software, franchise, Augusta, and media.
• 1:26:58
  And as much as everyone in those individual departments would be screaming for my attention, like, yeah.
• 1:27:02
  should be focused on this?
• 1:27:02
  You should be focused on this.
• 1:27:04
  I know I have great people working on these problems and some of it might take some time to bake, but me getting involved is actually going to cause more problems than anything.
• 1:27:12
  If you were in my shoes, what would be some of the questions you'd be asking yourself to determine where should I be deploying my energy or my time without causing undue frustration for the internal team that for some of these things, it's just as literal as...
• 1:27:25
  I need to wait and let these things bake.
• 1:27:27
  So the MCP thing is a great example.
• 1:27:30
  It is now past my level in terms of what they're trying to figure out.
• 1:27:34
  I know that this is a matter of iterations, multiple layers of beta testing, figure out where things break, and just six months of really honing this in, me getting involved is going to probably cause more damage than anything.
• 1:27:46
  Um, but there's multiple instances of that, but from those three kind of layers of the business, what would be some of the questions you'd be asking yourself to be like, what should I be focused my time and energy on?
• 1:27:57
  So let me, before I try to come up with questions, let me tell you what first comes to mind that you should be focused on, right?
• 1:28:03
  What you just said, this is not what you're asking.
• 1:28:05
  What you just said is why I would tell you, you should absolutely not do a coaching business.
• 1:28:09
  You have so many things going, and these things have the potential to be so good and so big, you don't want to get distracted.
• 1:28:18
  You've got – even though you don't have to run them, it's a lot still because your brain has to think about them.
• 1:28:24
  So then how do you action your time within them?
• 1:28:27
  The thing I think about is –
• 1:28:29
  Two things.
• 1:28:30
  So let's use the example of the MCP project.
• 1:28:33
  Your job is you can't possibly be as technical as your team.
• 1:28:37
  You can't possibly know all the little fine details.
• 1:28:41
  But what you can do is you can ask questions all the time, even if it's a little bit annoying for them because it...
• 1:28:48
  It creates this element of challenging them and making them think.
• 1:28:52
  It's really easy for us to just knock projects out and sometimes not think about them.
• 1:28:56
  We just want to get them done.
• 1:28:57
  And so your role in this is to ask the good questions just to make sure things are going in the right direction.
• 1:29:03
  So it's not that you're trying to...
• 1:29:06
  layer on more to do's into the project.
• 1:29:08
  It's that, do you have a demo cadence in the company where that team is demoing to you or in stakeholders, what is being delivered?
• 1:29:17
  So in other words, I'll go back to my estimating project.
• 1:29:20
  You're building estimating.
• 1:29:21
  There was a design.
• 1:29:22
  Everybody agreed to the design.
• 1:29:24
  Uh,
• 1:29:25
  And then the design starts getting built by the dev team.
• 1:29:28
  Then the dev team should periodically on a probably every two week or less cadence, depending on the project demo to a small group, what's been built so far.
• 1:29:38
  That's when you get asked questions.
• 1:29:40
  That's when you get to make sure things are on track.
• 1:29:42
  That's when it's like, yeah, you're not the smartest guy on this topic.
• 1:29:45
  That's totally cool.
• 1:29:46
  You are the business intelligence.
• 1:29:48
  You are the best understander of the franchisee.
• 1:29:51
  You're the best understander of the, uh,
• 1:29:54
  It's a weird phrasing, but you really understand the franchisee.
• 1:29:57
  You really understand the buyer.
• 1:29:58
  You are that person.
• 1:30:00
  So you have this level of knowledge that they can't possibly have.
• 1:30:04
  No negative on them whatsoever.
• 1:30:06
  So there does need to be an element of your involvement.
• 1:30:10
  Because this is where I think service autopilot started making some mistakes.
• 1:30:15
  And in other businesses, I've got the same thing.
• 1:30:17
  Like you're very involved.
• 1:30:19
  Then the business starts to scale.
• 1:30:21
  You're working on other things.
• 1:30:22
  And everything's still going.
• 1:30:24
  Everything's still growing.
• 1:30:26
  But you weren't...
• 1:30:28
  Like that level of knowledge, these conversations convey training and knowledge to the team where they really understand the customer, what the customer is worried about, what the customer needs.
• 1:30:39
  There's just expertise that you're going to have that unless you're still having conversations, it doesn't get transferred.
• 1:30:45
  And then you're going to have some of the best questions, even though you don't technically know how to do it.
• 1:30:50
  So just you can solve part of that through demos.
• 1:30:52
  Does that make sense?
• 1:30:53
  Mm-hmm.
• 1:30:54
  That resonate?
• 1:30:54
  Okay.
• 1:30:55
  Yep.
• 1:30:55
  So I would tell you, be careful not to say, oh, I'm not the technical guy.
• 1:31:01
  I don't know.
• 1:31:01
  They just need to go do this thing and say, therefore, I don't need to be involved.
• 1:31:06
  You should still have some involvement because these things can get off track and you could be shocked at what you end up getting delivered.
• 1:31:14
  simply because you didn't have a cadence of these demo days or meetings.
• 1:31:18
  That'd be number one.
• 1:31:19
  The second thing is I think the swarm concept is the way you run the business as it gets bigger.
• 1:31:25
  So if your different businesses are having surfacing issues and those issues are getting stacked ranked, I think your role as you get bigger is you're a coach.
• 1:31:38
  And a lot of coaching happens by getting involved when things are, when there's a big hard thing that gets, that needs to get solved.
• 1:31:45
  So I think this idea that you can float, it's like the issues are getting service, uh, surfaced across the business.
• 1:31:51
  And the biggest issues are the ones you jump into for a moment of time and you help that group and then you're back out.
• 1:31:57
  And that's, and I think that's really valuable.
• 1:32:01
  And then, so that's like part A.
• 1:32:03
  Part B is there's other areas where stuff may not get surfaced.
• 1:32:07
  But if you don't have a cadence to check on it, even if you have a really strong ops leader, because you're the visionary of the business, if you're like, there could come a day you stop checking on onboarding.
• 1:32:17
  or you stop checking on what's going on in customer service because you've got a great leader there, I think that's a mistake.
• 1:32:23
  And so as you think about where you allocate your time, I think you're still periodically allocating your time to certain parts of the business, even though there's not some big brewing problem you have to be in.
• 1:32:34
  You just make yourself go kind of check on it.
• 1:32:36
  It keeps you in the loop on the business and keeps your finger on the pulse of the business.
• 1:32:40
  But also, I think it does another thing.
• 1:32:42
  It tells that part of the business.
• 1:32:43
  Like customer service is the perfect example.
• 1:32:46
  I actually think I dropped the ball here in Service Autopilot.
• 1:32:51
  I wish I had spent more time just sitting in that room with them as the thing got bigger.
• 1:32:55
  Like in the room versus them coming to a conference room.
• 1:32:59
  where they felt like I was really paying attention at a closer level.
• 1:33:02
  I wish John had done more of that too.
• 1:33:04
  It's not that we ignored them.
• 1:33:05
  It's just like we could have done way better.
• 1:33:07
  So that sends a really powerful message as a leader to be involved in the different parts of the business.
• 1:33:14
  For almost a year in Service Autopilot, I moved out of my office and I sat with the onboarding training and writing team and sales team, like in a big area.
• 1:33:23
  I thought it sent a message and I wanted to hear what was going on.
• 1:33:26
  And so like, there's lots of ways to have this conversation.
• 1:33:30
  Like there's that, that you keep on your schedule.
• 1:33:32
  And then there's the surfacing of issues.
• 1:33:34
  This is what I think Elon Musk does.
• 1:33:36
  I think that's his, his model.
• 1:33:38
  He just swarms to the biggest problem in the business and he jumps in co-works with the team and then he moves on.
• 1:33:43
  And I think that accomplishes a lot more than just solving a problem.
• 1:33:47
  Did I answer what you were asking?
• 1:33:49
  Yeah, it was great.
• 1:33:50
  I got lots of things to do.
• 1:33:52
  I think the one part that probably hit me the hardest or I'm going to have to think about, because everything you said was I will take action on.
• 1:34:00
  The one part is you said not doing the coaching thing.
• 1:34:04
  I agree.
• 1:34:05
  I think the part that is pulling me in the other direction is
• 1:34:08
  is I feel like the owners at Augusta, a lot of them are outgrowing a lot of the systems that got them to a million dollars and they're failing in leadership.
• 1:34:16
  Like that talent acquisition, like the elements outside of the business, even like health stuff and like other elements.
• 1:34:23
  And I'm trying to figure out a way if I can help them.
• 1:34:27
  Go ahead.
• 1:34:28
  I think it's different for your, I think of your franchisees as your team members.
• 1:34:32
  I can think of where you might argue against a few points here.
• 1:34:35
  I'm saying that you aren't building this big, broader coaching organization across the industry.
• 1:34:42
  Oh, okay.
• 1:34:43
  Because it will take a lot from you.
• 1:34:44
  That's what I thought you were saying.
• 1:34:46
  Oh, yeah.
• 1:34:46
  No, this would be like more like maybe I could allocate an hour of my time a week to really getting the next level for the owners.
• 1:34:54
  I'm glad you.
• 1:34:55
  Okay.
• 1:34:55
  Okay.
• 1:34:56
  I'm really glad you brought this back up.
• 1:34:57
  That is not what I was talking.
• 1:34:59
  That to me is a no-brainer.
• 1:35:01
  I believe as you become a more senior leader inside an organization, your predominant job is getting the right people on the team and coaching people and getting the wrong people off the team.
• 1:35:11
  Your job is to grow people.
• 1:35:13
  When I sold Service Autopilot, I went to the office every day
• 1:35:17
  I worked a full day, I did all the stuff.
• 1:35:20
  And then whenever I was done, meaning I sold the business and I could stop doing anything I wanted to stop doing, I realized how much of my day was not actually spent doing any service help.
• 1:35:31
  It was coaching the team, working with the team, talking to team members about personal stuff that they were asking me questions about.
• 1:35:39
  And I think that's what makes a person feel very different about an organization and wants to be at your organization.
• 1:35:45
  So I think about your franchisees as your team members.
• 1:35:49
  Like you're all in this thing together.
• 1:35:50
  You got to grow them.
• 1:35:52
  Like I would want to grow my COO.
• 1:35:54
  I'd want to grow my head of customer service, of onboarding.
• 1:35:57
  I want to grow them, give them more skills.
• 1:36:00
  So whatever you, I would invest in them.
• 1:36:02
  Franchisees are exact same thing.
• 1:36:03
  Whatever you got to do to invest in them, you do that.
• 1:36:05
  That's how you grow this business.
• 1:36:06
  It's so frustrating.
• 1:36:08
  Probably my biggest frustration this year has been seeing them hit roadblocks.
• 1:36:11
  I know I have nothing to do with the business or they're entrepreneurial.
• 1:36:16
  It's just like outside life, like stress stuff, like out of whack diets, like things that were, I feel like, can I just get these people aside from people that need the tactics around door hangers and running your ads and get them aside and kind of almost like an academy situation, a little bit more on non-business.
• 1:36:34
  Yeah, so.
• 1:36:36
  This is an uphill battle right here.
• 1:36:38
  We used to do a...
• 1:36:40
  I think it was like a monthly lunch and learn, and we talked about all these things.
• 1:36:43
  Like we did the health thing.
• 1:36:45
  We did the finance thing.
• 1:36:46
  You had to be a little careful on the finance thing because you're an employer.
• 1:36:49
  You got to be a little...
• 1:36:50
  But we did all...
• 1:36:50
  It's like some people are receptive to it.
• 1:36:52
  A lot of people aren't.
• 1:36:53
  I don't know how to change them.
• 1:36:55
  And I think that's team members and franchisees will kind of be like...
• 1:36:59
  the same, like you'll, this, you're going to have the same problem with both groups.
• 1:37:02
  And so some people are going to be rock stars and some are not.
• 1:37:06
  And it just, they're just going to have to arrive at a place in life when they finally decide by looking at other franchisees that are living a certain way that, wow, look at the results they give, or they get to a place where they're so frustrated with the life they're living, they're ready to make change.
• 1:37:19
  And so all you can do is keep showing up, having the conversation.
• 1:37:23
  And one of the ways I like that, I think when you alluded to Academy is I think where we got a lot of the value in Academy was getting everybody together.
• 1:37:32
  I don't know if you kind of alluded to that.
• 1:37:34
  So how can you have, I think you do stuff like this already, but, and I don't know what you're experiencing, but.
• 1:37:40
  I think there's magic in getting the people together and they become friends.
• 1:37:46
  And so it's less about Mike delivering the messaging.
• 1:37:50
  And eventually it's, you know, two guys on your, within your world talking to each other via text or whether they're being challenged directly.
• 1:38:00
  And they're growing themselves and they're excited about doing new things because they see what the other people that they've become friends with and they respect are doing.
• 1:38:08
  And so it's constantly about you, I think, setting the example and then teaching, but you've got to bring them all together.
• 1:38:15
  That's what I would – I think you're doing that, but that's how I would – that's what I think worked best in Academy.
• 1:38:21
  So how can you get them together more often?
• 1:38:23
  Yeah, absolutely.
• 1:38:25
  Well, thank you.
• 1:38:25
  I have one, two, three, four, five, six, seven things I'll be doing here next week.
• 1:38:30
  So it's too much.
• 1:38:32
  It's a journey over time.
• 1:38:34
  All right.
• 1:38:35
  Non-financial advice.
• 1:38:36
  Did you come prepared?
• 1:38:37
  I came.
• 1:38:38
  Yeah, yeah.
• 1:38:39
  Oh, let's go.
• 1:38:40
  I actually did a little data work to come up with this one.
• 1:38:44
  I have non-financial financial advice.
• 1:38:47
  I have financial advice.
• 1:38:48
  Okay, all right.
• 1:38:49
  Go ahead.
• 1:38:50
  This SpaceX IPO thing, man.
• 1:38:52
  Oh, man, that was mine.
• 1:38:53
  I have it written down right here.
• 1:38:55
  Okay.
• 1:38:58
  So I did invest in the SpaceX IPO.
• 1:39:03
  I said I was not going to, but I only did it.
• 1:39:06
  It's like a couple hundred grand.
• 1:39:07
  It's like, there's nothing.
• 1:39:08
  I was going to slide it in earlier when you mentioned like having, like you could be more risky.
• 1:39:13
  I was like, you could have invested in the SpaceX IPO, but sure enough, you did.
• 1:39:17
  Give me this guy.
• 1:39:18
  Yeah, yeah.
• 1:39:18
  But this is not- You teach a dog new tricks.
• 1:39:20
  Well, and I barely put any money in it.
• 1:39:22
  I took no risk.
• 1:39:24
  And I sold it on the open.
• 1:39:27
  So I bought it 135 and sold it 150.
• 1:39:31
  Oh, really?
• 1:39:32
  Yeah.
• 1:39:33
  You didn't wait until like 230.
• 1:39:34
  It's crazy.
• 1:39:37
  Well, I had just given instructions that I don't want to hold the investment.
• 1:39:40
  So I thought maybe they sell at the end of the day.
• 1:39:42
  They sold at the open.
• 1:39:43
  Wow.
• 1:39:44
  So anyway.
• 1:39:44
  It shot up.
• 1:39:46
  Such a – but whatever.
• 1:39:49
  Here's the – but that's – it is annoying.
• 1:39:51
  I will tell you it is annoying.
• 1:39:54
  But I never – the IPO does not make any sense to me.
• 1:39:59
  But that doesn't – it doesn't have to make sense because Tesla, Elon Musk stuff doesn't make sense.
• 1:40:05
  But I do want to say a couple of things about this.
• 1:40:09
  I don't know if anybody's ever thought about it this way.
• 1:40:11
  And I just want to make a few points.
• 1:40:12
  This is why I was not a fan of the IPO.
• 1:40:15
  I am so glad that they're not letting SpaceX onto the S&P 500 index for a year because I would be very nervous.
• 1:40:23
  All right.
• 1:40:23
  So...
• 1:40:24
  Is NASDAQ allowing them?
• 1:40:26
  They're letting them, yeah, they're letting them faster.
• 1:40:28
  I think it's really fast.
• 1:40:30
  Really fast, yeah.
• 1:40:31
  Okay, so let me give you a couple, let me give you analogy.
• 1:40:35
  I'm gonna give you a couple analogies.
• 1:40:37
  And I did some research yesterday to put these numbers together.
• 1:40:40
  Okay.
• 1:40:40
  All right, if city turf was valued like SpaceX-
• 1:40:45
  Oh, yeah, this is fun.
• 1:40:46
  I did the same thing.
• 1:40:48
  Weed for $2.7 billion.
• 1:40:50
  Let's go.
• 1:40:50
  Based on revenue or I guess revenue because they don't have any profits.
• 1:40:53
  They're both based on revenue, yeah.
• 1:40:55
  So Weed for $2.7 billion.
• 1:40:57
  That's how.
• 1:40:58
  Crazy this is.
• 1:40:59
  Now I understand city turf doesn't matter to the future of humanity.
• 1:41:02
  You really got to work on your messaging, bro.
• 1:41:05
  Come on.
• 1:41:07
  We're going to do a trillion dollars in the next five years.
• 1:41:10
  So anyway.
• 1:41:10
  All right.
• 1:41:11
  But here's, I'm going to give a couple more stats like that.
• 1:41:13
  But let me, this is something I theorize a lot.
• 1:41:16
  So I did a little research.
• 1:41:17
  It does seem, my theory was retail investors are driving this.
• 1:41:21
  more than institutional.
• 1:41:22
  And it is.
• 1:41:23
  So I have this theory because I've talked to several people that have asked me if I'm going to invest in the IPO.
• 1:41:29
  And I'm like, no, I'm not really into IPOs because 70% of the time they're down.
• 1:41:32
  And when the lockup comes, and there's some crazy ones on this one.
• 1:41:36
  Yeah.
• 1:41:37
  Okay.
• 1:41:37
  So I theorize that a lot of people will think like, hey, if I had invested in Google or Amazon or whatever, I'd be rich today.
• 1:41:48
  So I don't want to miss out on SpaceX.
• 1:41:50
  And the point I want to make is this one.
• 1:41:53
  Okay, if you'd invested in Google, you would have been investing at a $27 billion valuation.
• 1:41:59
  That's how much the company was.
• 1:42:00
  So you would have 167 X'd your investment to get to become rich because you invested in Google.
• 1:42:07
  If you're investing at SpaceX, I haven't looked at SpaceX today, but as of yesterday, I think it was worth around $2.8 trillion.
• 1:42:13
  So if you were to get rich, like investing in Google,
• 1:42:17
  To make that happen, SpaceX has to become worth one half of a quadrillion dollars to get the same return on your money.
• 1:42:24
  Let's go.
• 1:42:25
  A quadrillion.
• 1:42:26
  500 quadrillion.
• 1:42:28
  Okay.
• 1:42:29
  So I think people imagine that it's going to – that they could get that.
• 1:42:33
  It's like the math can't even work.
• 1:42:35
  I'm just hoping when we go public in about 10 years, I'm just hoping the current like ideas around going IPO is something like that then because it's always up and down, right?
• 1:42:45
  Like three years ago, you did not want to go public.
• 1:42:47
  Now, my goodness, the stage is set for Anthropic and OpenAI and it's even Stripe and all these other companies.
• 1:42:55
  But it's crazy.
• 1:42:56
  Let me give you two more numbers.
• 1:42:58
  Okay, okay.
• 1:42:59
  All right.
• 1:42:59
  That just like, this is like nothing else.
• 1:43:01
  So I, so I'm like, well, it's clearly the Elon Musk premium, which go ahead.
• 1:43:07
  Sorry.
• 1:43:07
  I have a question just for the audience.
• 1:43:09
  Cause they're going to want to figure this out.
• 1:43:10
  What's the revenue multiple?
• 1:43:11
  Do you remember off the top of your head?
• 1:43:13
  150 times revenue.
• 1:43:15
  150, I don't get it.
• 1:43:16
  All right, cool.
• 1:43:16
  So for anyone watching, just take your revenue, multiply 150, and that's your valuation.
• 1:43:20
  Yeah, that's accessible.
• 1:43:20
  So SpaceX- I'm your longer business.
• 1:43:22
  Yeah, yeah.
• 1:43:23
  So SpaceX did like 18 billion, 19 billion in revenue times 150.
• 1:43:29
  That's how you get the multiple, okay?
• 1:43:30
  Let's get it.
• 1:43:30
  All right.
• 1:43:31
  So then you're like, okay, well, it's the Elon Musk premium.
• 1:43:36
  And it is, except the premium on Tesla is only 13 times revenue.
• 1:43:41
  Think about that.
• 1:43:42
  So Tesla does almost $100 billion.
• 1:43:45
  They're valued at $1.2 trillion.
• 1:43:47
  I think these numbers are pretty close.
• 1:43:49
  And SpaceX does $18 billion and is valued at well over double what Tesla.
• 1:43:54
  So that's probably going to buy out Tesla.
• 1:43:58
  Probably, yeah.
• 1:43:59
  And now's the time.
• 1:44:00
  If he could buy Tesla right now at this valuation.
• 1:44:02
  He'll get his control back.
• 1:44:03
  He'll get control back of Tesla.
• 1:44:05
  Yeah.
• 1:44:05
  And then I'll give one more.
• 1:44:07
  This is my last one.
• 1:44:08
  So Cisco, I was in my early 20s during the 90s, the dot-com boom and bust.
• 1:44:16
  And Cisco was the poster child of insanity in the stock market.
• 1:44:22
  And then when Cisco crashed, it took 25 years for their price in 2000 or 1999 to get back to where they were.
• 1:44:30
  They were valued at 46 times revenue.
• 1:44:31
  And Tesla and SpaceX is valued at 150.
• 1:44:34
  It's beyond comprehension.
• 1:44:36
  So this is why I was scared of it going into it.
• 1:44:40
  And I thought, you know, it is Elon Musk.
• 1:44:42
  This could go really good.
• 1:44:44
  But I just, I'm not a gambler.
• 1:44:45
  I don't go to, I don't gamble in Vegas.
• 1:44:47
  I don't bet on things.
• 1:44:49
  I just, it's not who I am.
• 1:44:50
  So that's why I had a hard time buying the IPO.
• 1:44:53
  So when I had an opportunity to sell immediately,
• 1:44:56
  Like when I had to put in my order, we didn't know yet how well orders were going to do.
• 1:45:00
  And, you know, so it still felt like gambling.
• 1:45:03
  So I hardly put any money on it.
• 1:45:05
  Anyway, a lot of information.
• 1:45:07
  One thing I thought was interesting was the revenue from X is basically halved.
• 1:45:12
  And so he's basically spun.
• 1:45:15
  That's now in SpaceX, essentially.
• 1:45:17
  But he won't look like he has an L there.
• 1:45:20
  Like most people, if you buy a business...
• 1:45:22
  at a premium like 40 billion dollars and then revenue halves over the course of four or five years that's an l but this is not going to be an l because it's wrapped up into spacex so there is nobody like this guy it's unbelievable like crazy it's unbelievable he's so good at what he does my non-financial advice was to not buy spacex um
• 1:45:46
  I think the lockups are going to absolutely obliterate this very low float.
• 1:45:50
  Only 5% of shares are for the public market.
• 1:45:52
  I think it's 3%.
• 1:45:53
  Is it 3?
• 1:45:54
  I think it's 3.
• 1:45:56
  You should double check me.
• 1:45:57
  You might be right at 5.
• 1:45:58
  I have been listening to a couple of things, and I thought they said 3.
• 1:46:01
  Okay.
• 1:46:02
  All right.
• 1:46:02
  So we're going to end on this.
• 1:46:04
  365 days from now, it'll be June 17, 2027.
• 1:46:10
  All right.
• 1:46:10
  We both got to figure out or come up with what our prediction for the stock price is going to be.
• 1:46:16
  And then we'll revisit this in a year and see who's close.
• 1:46:18
  Okay.
• 1:46:19
  What is the stock price now?
• 1:46:21
  It's like $2.15 this morning.
• 1:46:23
  I'll let you look.
• 1:46:24
  I don't, yeah, I can't get to it on my computer.
• 1:46:25
  So yesterday it was probably over $200 to get to $2.8 trillion.
• 1:46:30
  Just for the record, $195.
• 1:46:32
  Okay.
• 1:46:33
  $195.
• 1:46:34
  What's the market?
• 1:46:34
  Can you see the market cap on there?
• 1:46:36
  Yeah, market cap right now is $2.53 trillion.
• 1:46:40
  $2.5.
• 1:46:41
  Yeah, I just want to highlight.
• 1:46:43
  I just want to highlight that you could have been 30% up on your money if you just want to hold a few more days.
• 1:46:48
  Yeah, thanks for that.
• 1:46:51
  Trust me, I already think about it.
• 1:46:53
  It's like...
• 1:46:55
  I already think about it.
• 1:46:55
  I don't need to think about it.
• 1:46:57
  Okay, so currently $2.53 trillion market cap, and the stock price is $195.
• 1:47:05
  It hit an all-time high of $130.
• 1:47:09
  Well, $135 was the entry price.
• 1:47:12
  Sorry, I apologize.
• 1:47:13
  Hit a top of $230.
• 1:47:14
  That was its peak.
• 1:47:15
  Okay.
• 1:47:16
  That's crazy.
• 1:47:17
  That was like it's over three trillion dollars.
• 1:47:20
  But for today, it's one hundred ninety five dollars.
• 1:47:23
  Are you doing some sort of discounted cash flow or whatever?
• 1:47:25
  No, no, no, no.
• 1:47:28
  So if this happens, if we get to Mars.
• 1:47:31
  Exactly.
• 1:47:32
  Yeah.
• 1:47:32
  No, I was I'm doing very simple math.
• 1:47:35
  I got my number.
• 1:47:36
  OK, I got my number.
• 1:47:38
  Go ahead.
• 1:47:38
  Ninety seven dollars.
• 1:47:40
  Ooh.
• 1:47:41
  So just basically a half.
• 1:47:42
  Yeah.
• 1:47:43
  And my logic is that the market cap will be closer to the market cap.
• 1:47:47
  But dang, they're going to bring in Tesla.
• 1:47:49
  Dang, that complicates it.
• 1:47:51
  Ooh.
• 1:47:51
  Yeah, you're tough.
• 1:47:52
  Okay, let's assume they do bring in Tesla, which is right now 1.4, 1.5 trillion.
• 1:47:57
  1.3 trillion.
• 1:47:58
  Really?
• 1:47:59
  Yeah.
• 1:47:59
  Ooh, that complicates this.
• 1:48:00
  That's harder math.
• 1:48:03
  Man, now they're making it difficult on us.
• 1:48:05
  You can't just tell them.
• 1:48:05
  It is.
• 1:48:06
  See, I thought 50% discount.
• 1:48:07
  That's what I'm thinking.
• 1:48:09
  Yeah, I was thinking it was going to get valued closer to Tesla, which would still be an extreme valuation because the revenue is 20% of Tesla's revenue.
• 1:48:20
  Yeah.
• 1:48:21
  And Tesla is a really exciting story, too, because that's the robot story.
• 1:48:24
  Robots.
• 1:48:24
  Yeah.
• 1:48:25
  So I think the robot story is like way better than the space story.
• 1:48:30
  Oh, my goodness.
• 1:48:31
  In the near term.
• 1:48:32
  The prospectus for the IPO was so hilarious.
• 1:48:36
  Like you could have literally ripped that out of a cartoon book and been like, here.
• 1:48:40
  And then you're like, oh, Elon said this.
• 1:48:42
  Definitely going to happen.
• 1:48:43
  I was listening to a podcast I like quite a bit.
• 1:48:46
  It's called Compound and Friends, and it's a financial show.
• 1:48:49
  And they were saying on the show – I think this is where I got my 3% float from.
• 1:48:53
  They were saying, man, they were given some example of something Elon just said.
• 1:48:56
  They're like, if somebody had said this 20 years ago, they'd be in prison.
• 1:48:59
  This would be a violation of securities law.
• 1:49:02
  Yeah.
• 1:49:02
  And he can just do whatever he wants to do.
• 1:49:04
  He's just such a promoter.
• 1:49:06
  Anyway, yeah, I was kind of thinking that the valuation would still be really crazy extreme, but it would come down to a market cap closer to the $1 trillion number, which would still be way more highly valued than Tesla.
• 1:49:22
  Yeah.
• 1:49:23
  But when you bring Tesla in, I don't know.
• 1:49:25
  I forget something along the lines of 13 times more shares will be available in one year compared to now.
• 1:49:31
  So just the amount of supply of the shares on the market.
• 1:49:35
  Yeah, we'll change everything.
• 1:49:36
  I think it's going to be half.
• 1:49:38
  I guess we're right around close.
• 1:49:40
  That stinks.
• 1:49:40
  I should have just made up like, we're going to be 400.
• 1:49:44
  We're going to $7 trillion market cap in a year.
• 1:49:48
  You know what the problem is?
• 1:49:50
  I wouldn't want to be a short seller on this thing, even though I feel like 95% confident this thing is going down when the lockup comes out.
• 1:49:58
  I'd still be scared to be a short seller on it because you have no idea what insanity is going to happen.
• 1:50:03
  Yeah, man.
• 1:50:04
  Is that because of Elon or is it because of the technology you think it's going to get there?
• 1:50:07
  Because of Elon.
• 1:50:09
  Not because of – I think the – I wouldn't bet against the guy.
• 1:50:12
  It's just that I think Starlink's a really good business from everything I've heard.
• 1:50:16
  I mean great business.
• 1:50:17
  I think he'll figure out the AI thing.
• 1:50:20
  I do.
• 1:50:20
  I think I wouldn't bet against him on that.
• 1:50:22
  He gets cursor at these.
• 1:50:24
  Yeah.
• 1:50:24
  I wouldn't know.
• 1:50:25
  Oh, I wouldn't bet against him at all on those two things.
• 1:50:28
  It's just that the, and I wouldn't bet against him on space.
• 1:50:30
  It's just that that is a very long story out into the future.
• 1:50:35
  And so, um,
• 1:50:37
  I didn't feel so bad about saying, hey, in eight to 12 years, when we go public, we're going to be focusing on robotic mowers.
• 1:50:43
  I was like, I feel like somehow I might be undershooting.
• 1:50:46
  You know, maybe we're going to be mowing it from outer space.
• 1:50:49
  We're going to be dropping helicopters or something.
• 1:50:51
  A data center is going to be running it from outer space.
• 1:50:54
  That's right.
• 1:50:55
  Command center is going to go to space so we don't pay taxes in Washington state.
• 1:50:58
  There you go.
• 1:50:59
  I do think what this teaches you is you need to bring in some kind of a space AI element into your... That's right.
• 1:51:06
  That was the actual real truth of what you wanted to tell me.
• 1:51:09
  Yes, that's what you need to do.
• 1:51:11
  Oh, man.
• 1:51:12
  So it's fascinating.
• 1:51:13
  It's amazing stuff.
• 1:51:14
  I don't know how you...
• 1:51:15
  There you have it, folks.
• 1:51:16
  Go out there, pump the stock.
• 1:51:18
  Put all your money in it.
• 1:51:20
  All your money into it.
• 1:51:21
  Let's go.
• 1:51:22
  Awesome.
• 1:51:22
  Thank you all.
• 1:51:23
  Appreciate it.
• 1:51:24
  See you later.