Mike Andes

Think of your career in 10-year swings. And if you think of that way in your 20s, you have five, six solid swings left in you. And if you actually committed yourself for 10 years, and let's just say it didn't work out, I happen to believe you would have learned so much more and gone so much deeper in that industry, your second swing would be that much more precise.

Think of your career in 10-year swings. And if you think of that way in your 20s, you have five, six solid swings left in you. And if you actually committed yourself for 10 years, and let's just say it didn't work out, I happen to believe you would have learned so much more and gone so much deeper in that industry, your second swing would be that much more precise.

Yeah, ultimately, you talk a lot about the importance of the people. Without the one or two key people that I had at that time, the business would have gone under. And so realizing that I had to build a business that I could not be there for a week, two weeks, I could indefinitely not be there and it's still run, was really what was right for the business, but also right for the team.

Yeah, ultimately, you talk a lot about the importance of the people. Without the one or two key people that I had at that time, the business would have gone under. And so realizing that I had to build a business that I could not be there for a week, two weeks, I could indefinitely not be there and it's still run, was really what was right for the business, but also right for the team.

Because I think for someone that wants to be a good steward of whether they're religious or not, what God has given you or what you are responsible for, it is a matter of build the business in a way that if you did get hit by a bus, or in my case, almost died, that the team doesn't have to worry about their job. Is that really being a good steward of what you have?

Because I think for someone that wants to be a good steward of whether they're religious or not, what God has given you or what you are responsible for, it is a matter of build the business in a way that if you did get hit by a bus, or in my case, almost died, that the team doesn't have to worry about their job. Is that really being a good steward of what you have?

We're looking for meaning and purpose. And that's why we started our business many times. But if the only purpose for you going to work is to simply turn the lights on and punch in timestamps and make sure your crew shows up on time, the business will likely not scale. And so the reason we build systems and procedures is for it to A, run without you, and B, to scale the thing.

We're looking for meaning and purpose. And that's why we started our business many times. But if the only purpose for you going to work is to simply turn the lights on and punch in timestamps and make sure your crew shows up on time, the business will likely not scale. And so the reason we build systems and procedures is for it to A, run without you, and B, to scale the thing.

And so if you have the desire to either have the business not run your life, and you're able to actually run your life inside of the business, or you're trying to scale the thing, it is in your best interest and the best interest of your team and of the business to be able to have these sort of SOPs and standards.

And so if you have the desire to either have the business not run your life, and you're able to actually run your life inside of the business, or you're trying to scale the thing, it is in your best interest and the best interest of your team and of the business to be able to have these sort of SOPs and standards.

And it becomes where once the business can run without you, then you can step away from it. And we get locked up in manager mode of like, okay, you do that and you do this and you do this. And okay, you make sure the truck is done. And we're constantly managing. But really, if you're going to, to your point, build a house, it's the architect that steps away from the house. They're not managing.

And it becomes where once the business can run without you, then you can step away from it. And we get locked up in manager mode of like, okay, you do that and you do this and you do this. And okay, you make sure the truck is done. And we're constantly managing. But really, if you're going to, to your point, build a house, it's the architect that steps away from the house. They're not managing.

They're not managing the laborers. They step away from the house to architect. And so if you're actually going to have a massive infrastructure and a massive skyscraper, you need architects. You don't need as many laborers as the people actually thinking about how do we build this structure. And that can only be done once the systems are in place that allows the business to run without you.

They're not managing the laborers. They step away from the house to architect. And so if you're actually going to have a massive infrastructure and a massive skyscraper, you need architects. You don't need as many laborers as the people actually thinking about how do we build this structure. And that can only be done once the systems are in place that allows the business to run without you.

To your point, like technology is a huge leg up on this.

To your point, like technology is a huge leg up on this.

And so I truly believe like the past, like if you look at the 2010s, a great home service business many times, the distinguishing factor is do you have a great looking website and do you answer your phone? If you did that, you are ahead of like 95%, 98% of home service business owners. And so I believe in the 2020s, the determining factor will be technology and software.

And so I truly believe like the past, like if you look at the 2010s, a great home service business many times, the distinguishing factor is do you have a great looking website and do you answer your phone? If you did that, you are ahead of like 95%, 98% of home service business owners. And so I believe in the 2020s, the determining factor will be technology and software.

And I think in 2030s is where robotics and AI will actually impact our industry the most. Because so much of our work is manual. And I believe that the software and parts of AI on the admin side will be really important in the next five years as we head to 2030. But as we go into 2030s, it will be the robotics companies that will start to take over this very fragmented market.

And I think in 2030s is where robotics and AI will actually impact our industry the most. Because so much of our work is manual. And I believe that the software and parts of AI on the admin side will be really important in the next five years as we head to 2030. But as we go into 2030s, it will be the robotics companies that will start to take over this very fragmented market.

This is why venture capital and private equity are just salivating at home services because it's super fragmented.

This is why venture capital and private equity are just salivating at home services because it's super fragmented.

And if you look in history, like technology, whether you're talking 200 years ago with like steam engines.

And if you look in history, like technology, whether you're talking 200 years ago with like steam engines.

Yeah, I still remember way back in the day listening to your podcast when I was just my first location before we franchised, did the software, anything like that. And I remember very specifically one time. I think I might have shared this with you when you went on my podcast.

Yeah, I still remember way back in the day listening to your podcast when I was just my first location before we franchised, did the software, anything like that. And I remember very specifically one time. I think I might have shared this with you when you went on my podcast.

And even more recently when it comes to business, you look at in 2005, 2006, 2007, the cab industry. No one had more than 1% of the market. Now 76% of the U.S. market is by two companies, Uber and Lyft. And so this is what technology does. Well, what happens? It's a big disruptor. The iPhone came in 2007. And in 2014, these companies started to just grow and scale and grow.

And even more recently when it comes to business, you look at in 2005, 2006, 2007, the cab industry. No one had more than 1% of the market. Now 76% of the U.S. market is by two companies, Uber and Lyft. And so this is what technology does. Well, what happens? It's a big disruptor. The iPhone came in 2007. And in 2014, these companies started to just grow and scale and grow.

And capital came in once the technology was ready for it. And so that's what I think will happen to home services. Because in landscaping, for example, there's 600,000 landscapers in the United States. And so the biggest company is public. It's Brightview. They do primarily commercial, almost 100% commercial. And they control less than 2% of the market.

And capital came in once the technology was ready for it. And so that's what I think will happen to home services. Because in landscaping, for example, there's 600,000 landscapers in the United States. And so the biggest company is public. It's Brightview. They do primarily commercial, almost 100% commercial. And they control less than 2% of the market.

And so I truly believe consolidation will happen once technology and capital meet. And so even when it comes to franchising, I'm not really in it for the software side or the franchising side. I think it will take the capital and it will take the distribution with software to be able to actually take the market share. And it's exactly the same thing you're doing.

And so I truly believe consolidation will happen once technology and capital meet. And so even when it comes to franchising, I'm not really in it for the software side or the franchising side. I think it will take the capital and it will take the distribution with software to be able to actually take the market share. And it's exactly the same thing you're doing.

and that was I was at a camp and the only thing I wanted to do though was go like listen to your podcast I just found it and I was just binging on it and so I appreciate everything you've done for younger guys like myself in the industry how old are you these days 29 29 yeah well that's awesome because

and that was I was at a camp and the only thing I wanted to do though was go like listen to your podcast I just found it and I was just binging on it and so I appreciate everything you've done for younger guys like myself in the industry how old are you these days 29 29 yeah well that's awesome because

So, yeah, paid performance was basically a matter of when I first started, I did it as a necessity. We were basically break-even at best, you know, seven-figure company, but nonetheless break-even at best. And it came as a result of one of my employees coming and asking for a raise because, of course, I did not have a system around how do you actually give raises to somebody.

So, yeah, paid performance was basically a matter of when I first started, I did it as a necessity. We were basically break-even at best, you know, seven-figure company, but nonetheless break-even at best. And it came as a result of one of my employees coming and asking for a raise because, of course, I did not have a system around how do you actually give raises to somebody.

It was just simply a matter of, like, when I needed more people to stick around, I'd probably give out raises to keep people around. He asked for a raise, he probably deserved it, he was making less than other people inside the business, and I just walked away from that conversation knowing I did not have the money, could not give him the raise, and said, we're doing this.

It was just simply a matter of, like, when I needed more people to stick around, I'd probably give out raises to keep people around. He asked for a raise, he probably deserved it, he was making less than other people inside the business, and I just walked away from that conversation knowing I did not have the money, could not give him the raise, and said, we're doing this.

Because it's something that I think everyone wants to do. It makes total sense, logically, but then you have 10 different reasons why it won't work for you. Everyone has that. And so in landscape, it's like, well, if you go too fast, if they go too fast and they start making mistakes, then now you're incentivizing them to start making mistakes. And so, okay, well, then let's fix that.

Because it's something that I think everyone wants to do. It makes total sense, logically, but then you have 10 different reasons why it won't work for you. Everyone has that. And so in landscape, it's like, well, if you go too fast, if they go too fast and they start making mistakes, then now you're incentivizing them to start making mistakes. And so, okay, well, then let's fix that.

It's a yellow slip system. If they make a mistake, they have to go back and fix it. Also, it can come out of their bonus if they do damage cases. If they lose the customer, it can also come out of their bonus. Okay, well, what happens if they've got to sharpen the blades or they've got to change the oil? Okay, well, then we're going to have non-billable time. Okay, let's bake that in.

It's a yellow slip system. If they make a mistake, they have to go back and fix it. Also, it can come out of their bonus if they do damage cases. If they lose the customer, it can also come out of their bonus. Okay, well, what happens if they've got to sharpen the blades or they've got to change the oil? Okay, well, then we're going to have non-billable time. Okay, let's bake that in.

Okay, what happens if there's one person that's really, really skilled on the crew and the other people are less skilled? How are we going to handle that? So there's all these little variables that people have as to why they can't switch to P4P. And many times that's what keeps them from going that direction, and they just switch back to hourly because it's honestly lazy.

Okay, what happens if there's one person that's really, really skilled on the crew and the other people are less skilled? How are we going to handle that? So there's all these little variables that people have as to why they can't switch to P4P. And many times that's what keeps them from going that direction, and they just switch back to hourly because it's honestly lazy.

Right, but I would go back to, I still think it's lazy because the reason you don't have the data is not because there's software not to do it, not because you're incapable of doing it. It's because you don't want to do the work to go get the data or build the systems to collect the data, or you don't want to spend the extra two minutes a day to track the data or create a report.

Right, but I would go back to, I still think it's lazy because the reason you don't have the data is not because there's software not to do it, not because you're incapable of doing it. It's because you don't want to do the work to go get the data or build the systems to collect the data, or you don't want to spend the extra two minutes a day to track the data or create a report.

And so, yes, it is easy to say how long did you clock in for today, multiply that by an hour late, and give someone a paycheck. And because of that, we keep doing it the lazy way. And then we wonder why we don't get any better results from our team. And if they're not compensated like an owner, pay for performance, and they don't have the information of an owner, i.e.

And so, yes, it is easy to say how long did you clock in for today, multiply that by an hour late, and give someone a paycheck. And because of that, we keep doing it the lazy way. And then we wonder why we don't get any better results from our team. And if they're not compensated like an owner, pay for performance, and they don't have the information of an owner, i.e.

open book management, how in the world do we expect them to work like an owner? Because that's what they lack, is information and compensation. And so that's the part I get fired up about. Because, for example, we have the P4P software to track this sort of thing to help them save the time and track this stuff. And so I can see that less than 15% of people that sign up will actually implement it.

open book management, how in the world do we expect them to work like an owner? Because that's what they lack, is information and compensation. And so that's the part I get fired up about. Because, for example, we have the P4P software to track this sort of thing to help them save the time and track this stuff. And so I can see that less than 15% of people that sign up will actually implement it.

And you give them all the tools and everything, but there's always that one thing. Well, we do some jobs by the hour, and so we can't really do pay-for-performance. Or we do some jobs where it's like by the square foot. Or we can't necessarily adopt pay-for-performance because these multiple – or we do commercial. 20%, 30% of our work is commercial. We can't really mix that in.

And you give them all the tools and everything, but there's always that one thing. Well, we do some jobs by the hour, and so we can't really do pay-for-performance. Or we do some jobs where it's like by the square foot. Or we can't necessarily adopt pay-for-performance because these multiple – or we do commercial. 20%, 30% of our work is commercial. We can't really mix that in.

So there's always a reason why you can't do it, but is it just laziness? Because that's what I find many times is they're just creating a system to make it work.

So there's always a reason why you can't do it, but is it just laziness? Because that's what I find many times is they're just creating a system to make it work.

Yep. So I was 18 when I started. I dropped out of medical school because I went to college when I was 13. That's when I started. So I dropped out of medical school at 18 and started Augusta Lawn Care then. And then five years later is when we franchised.

Yep. So I was 18 when I started. I dropped out of medical school because I went to college when I was 13. That's when I started. So I dropped out of medical school at 18 and started Augusta Lawn Care then. And then five years later is when we franchised.

But I would argue that you'd probably be the type of person to go on YouTube and figure out if you knew your business depended on it.

But I would argue that you'd probably be the type of person to go on YouTube and figure out if you knew your business depended on it.

Yep, going on our sixth year now.

Yep, going on our sixth year now.

What do you think? It's the instant gratification part. As soon as the first level of that success happens, it's usually when people take chips off the table. And so people aren't willing to hold their breath for the five or ten years. And so I really encourage – think of your career in ten-year swings. And if you think of that way in your 20s, you have five, six solid swings left in you.

What do you think? It's the instant gratification part. As soon as the first level of that success happens, it's usually when people take chips off the table. And so people aren't willing to hold their breath for the five or ten years. And so I really encourage – think of your career in ten-year swings. And if you think of that way in your 20s, you have five, six solid swings left in you.

And if you actually committed yourself for 10 years, and let's just say it didn't work out, I happen to believe you would have learned so much more and gone so much deeper in that industry, your second swing would be that much more precise.

And if you actually committed yourself for 10 years, and let's just say it didn't work out, I happen to believe you would have learned so much more and gone so much deeper in that industry, your second swing would be that much more precise.

And if you think of it that way, in years two, three, and four, when you have no evidence of success and things aren't working out and you aren't making money, you'll stick with it. And then when you're in years six, seven, and eight, when you start to see success and have money, you'll stack it aside.

And if you think of it that way, in years two, three, and four, when you have no evidence of success and things aren't working out and you aren't making money, you'll stick with it. And then when you're in years six, seven, and eight, when you start to see success and have money, you'll stack it aside.

Because every time I see the Mercedes or the boat or whatever that someone's purchased, I know that 30% to 40% of every dollar they made before they made that purchase went to the government.

Because every time I see the Mercedes or the boat or whatever that someone's purchased, I know that 30% to 40% of every dollar they made before they made that purchase went to the government.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

Thank you. Thank you. Thank you. Thank you. Thank you. Thank you.

Yeah, like I would say if you're doing it just for the money, usually it's actually not the best and fastest route to money. Usually if you have a good model and you don't have a huge amount of startup capital that is required to start in the service industry, it's actually just faster to cash in terms of just corporate expansion. You have more control.

Yeah, like I would say if you're doing it just for the money, usually it's actually not the best and fastest route to money. Usually if you have a good model and you don't have a huge amount of startup capital that is required to start in the service industry, it's actually just faster to cash in terms of just corporate expansion. You have more control.

You don't have to worry about the aspect of training new franchisees and that whole aspect of liability and insurance and the legalities of it. Also, for anyone that's tempted by it, I would also caution, look at the stats of the number of franchises that actually succeed. There was over 400 that were started last year in the United States.

You don't have to worry about the aspect of training new franchisees and that whole aspect of liability and insurance and the legalities of it. Also, for anyone that's tempted by it, I would also caution, look at the stats of the number of franchises that actually succeed. There was over 400 that were started last year in the United States.

Thank you. Thank you. Thank you.

Thank you. Thank you. Thank you.

And statistically speaking, less than six of them will get to 100 locations. And the vast majority of franchises will not be profitable until they pass 100 locations. And anyone that says otherwise usually is stripping a lot of profits in terms of royalties away from the franchisees and not supporting them at the level that's required for them to be successful.

And statistically speaking, less than six of them will get to 100 locations. And the vast majority of franchises will not be profitable until they pass 100 locations. And anyone that says otherwise usually is stripping a lot of profits in terms of royalties away from the franchisees and not supporting them at the level that's required for them to be successful.

Thank you. Or are you collecting more of it and you're a profitable business? And so that's the number one thing. Cash is top of mind. Make more money. It's so simple, but it is ultimately the fix for so many aspects. The gentleman I was with, him and his wife are fantastic people. They're working seven days a week.

Thank you. Or are you collecting more of it and you're a profitable business? And so that's the number one thing. Cash is top of mind. Make more money. It's so simple, but it is ultimately the fix for so many aspects. The gentleman I was with, him and his wife are fantastic people. They're working seven days a week.

So it's just one of those industries that's very difficult. The reason I got into it is because I wanted to get as much expansion and just the, our goal is to change the level of professionals in the industry. And as you know, we talk behind a microphone or make videos, people just don't listen. Even if it makes perfect sense and we have all the data.

So it's just one of those industries that's very difficult. The reason I got into it is because I wanted to get as much expansion and just the, our goal is to change the level of professionals in the industry. And as you know, we talk behind a microphone or make videos, people just don't listen. Even if it makes perfect sense and we have all the data.

And every single day he wakes up at 4 o'clock with dinging of his phone hoping that some people aren't going to not be showing up to work that day. The fix is make more money, like $45 an hour. You're never going to be able to scale this. You're never going to be able to afford a general manager or an operations manager to take those calls for you.

And every single day he wakes up at 4 o'clock with dinging of his phone hoping that some people aren't going to not be showing up to work that day. The fix is make more money, like $45 an hour. You're never going to be able to scale this. You're never going to be able to afford a general manager or an operations manager to take those calls for you.

And so I only found that when I competed with them, they would listen. So when we talk about pay for performance and P4P, or we talk about estimate videos, we talk about knowing numbers, et cetera, it was like, hey, that's a nice influencer or consultant or someone who puts on an event. But once we start competing with people, we can actually see who's joining the software.

And so I only found that when I competed with them, they would listen. So when we talk about pay for performance and P4P, or we talk about estimate videos, we talk about knowing numbers, et cetera, it was like, hey, that's a nice influencer or consultant or someone who puts on an event. But once we start competing with people, we can actually see who's joining the software.

Yeah, like working 80-hour weeks.

Yeah, like working 80-hour weeks.

It makes no sense. So many bad business models are hidden by an entrepreneur that is working 80 hours a week.

It makes no sense. So many bad business models are hidden by an entrepreneur that is working 80 hours a week.

You doubled your profit.

You doubled your profit.

It's tough because I don't like to go in there like the Gordon Ramsay and yell at people.

It's tough because I don't like to go in there like the Gordon Ramsay and yell at people.

Although it's like... So how I approach it, honestly... A bar rescue. Yeah. Well, Jon Taffer's coming to our event here in a couple weeks. I'm looking forward to that.

Although it's like... So how I approach it, honestly... A bar rescue. Yeah. Well, Jon Taffer's coming to our event here in a couple weeks. I'm looking forward to that.

That's not my... My usual genre of dealing with it. But my thought is I get mad at the problem for them because I know what it's like to be in that situation. And I remember the pain that I went through, and I hate to see someone in their 60s going through that pain because they have not dealt with the problems of the business.

That's not my... My usual genre of dealing with it. But my thought is I get mad at the problem for them because I know what it's like to be in that situation. And I remember the pain that I went through, and I hate to see someone in their 60s going through that pain because they have not dealt with the problems of the business.

And they still are clouded with the mindset that I can't charge more, and everyone else is more expensive. I'm like, wait, wait, wait. What's your close ratio? Almost 100% of my jobs get accepted. I don't care about the cost of what you charge versus your competitor or if a customer says it's too expensive. If you're closing 100% of your jobs, you are too cheap.

And they still are clouded with the mindset that I can't charge more, and everyone else is more expensive. I'm like, wait, wait, wait. What's your close ratio? Almost 100% of my jobs get accepted. I don't care about the cost of what you charge versus your competitor or if a customer says it's too expensive. If you're closing 100% of your jobs, you are too cheap.

We can see the impact that we answer our phone 24-7. And so that puts pressure on them to do the same thing. And to your point, with landscaping in general, we have a bad rap. We are the guys who show up, maybe we show up, and if we do, it's in cut-off shirt and beat-up truck. Can we change that level of professionalism?

We can see the impact that we answer our phone 24-7. And so that puts pressure on them to do the same thing. And to your point, with landscaping in general, we have a bad rap. We are the guys who show up, maybe we show up, and if we do, it's in cut-off shirt and beat-up truck. Can we change that level of professionalism?

The market is yelling at you to raise your prices.

The market is yelling at you to raise your prices.

Let's go.

Let's go.

Yeah. I think the problem, too, with home services is when we hit that capacity, instead of booking out three months, we just go buy more trucks and equipment instead of raising our prices and just extend it out further. Yeah. And that's the fallacy of being stuck in growth mode for so long. And then people are like, well, it's an unprofitable industry.

Yeah. I think the problem, too, with home services is when we hit that capacity, instead of booking out three months, we just go buy more trucks and equipment instead of raising our prices and just extend it out further. Yeah. And that's the fallacy of being stuck in growth mode for so long. And then people are like, well, it's an unprofitable industry.

Well, yeah, you got stuck in growth mode for 10 years. You just kept buying more trucks and equipment instead of raising your prices when you hit capacity. Yeah. And I think I'd rather have a 49% margin business than running a 10% margin business but being five times larger.

Well, yeah, you got stuck in growth mode for 10 years. You just kept buying more trucks and equipment instead of raising your prices when you hit capacity. Yeah. And I think I'd rather have a 49% margin business than running a 10% margin business but being five times larger.

Yeah, in software they have the 40% rule, which is a good benchmark.

Yeah, in software they have the 40% rule, which is a good benchmark.

Yeah, it's like, look, you have 40%, but if you're grew by 20%, then you should have a 20% profit margin. And if you grew nothing last year, you should have a 40% profit margin. And so it's kind of like a healthy rule of thumb.

Yeah, it's like, look, you have 40%, but if you're grew by 20%, then you should have a 20% profit margin. And if you grew nothing last year, you should have a 40% profit margin. And so it's kind of like a healthy rule of thumb.

And the thing is— And that's why they got valued at $5, $6 billion. Well, yeah.

And the thing is— And that's why they got valued at $5, $6 billion. Well, yeah.

I think if you're really young, sometimes it's easy to default to like the age thing. I think being young is, it's like, so when I went to college when I was 13 and everyone always asked like, was that weird? Was that strange? Et cetera. Ultimately, because like the way my parents raised me and the way we never mentioned, it was never a thing. We never talked about me being young.

I think if you're really young, sometimes it's easy to default to like the age thing. I think being young is, it's like, so when I went to college when I was 13 and everyone always asked like, was that weird? Was that strange? Et cetera. Ultimately, because like the way my parents raised me and the way we never mentioned, it was never a thing. We never talked about me being young.

And I think the only way to do that is change the expectation of the customer. And the only way to change the level of what the customer's expecting is much faster expansion. That's why we went franchising model. But I would just say for most people, it took me three years to make as much revenue

And I think the only way to do that is change the expectation of the customer. And the only way to change the level of what the customer's expecting is much faster expansion. That's why we went franchising model. But I would just say for most people, it took me three years to make as much revenue

In hindsight, a kid going through puberty in like college and university seems really strange. And so I do think it's like, who do you surround yourself with and what are they telling you? Because if they tell you it's weird that you're young and that it's strange that you're hiring people that are older than you, then you will believe that.

In hindsight, a kid going through puberty in like college and university seems really strange. And so I do think it's like, who do you surround yourself with and what are they telling you? Because if they tell you it's weird that you're young and that it's strange that you're hiring people that are older than you, then you will believe that.

But like, I was very privileged to have parents that like, we never talked about it. It was like, I'm just going to school. I took the bus and I went to school. I couldn't drive, so I took the bus. Um, and I think the same thing is true. If you're in a circle of friends or even in your family, you might have to break away from them.

But like, I was very privileged to have parents that like, we never talked about it. It was like, I'm just going to school. I took the bus and I went to school. I couldn't drive, so I took the bus. Um, and I think the same thing is true. If you're in a circle of friends or even in your family, you might have to break away from them.

And like I've said, sometimes, sometimes your goals will outgrow your friends. And in the event that you're a young entrepreneur needing to hire and interact with people that are older than you, you might have to break away from your friend group and your age group in order to chase the goals you have.

And like I've said, sometimes, sometimes your goals will outgrow your friends. And in the event that you're a young entrepreneur needing to hire and interact with people that are older than you, you might have to break away from your friend group and your age group in order to chase the goals you have.

Can I say something on that? I really respected you a lot more, although I've always had a lot of high regard for you, when I saw the Dan Martell vlog and the way that you interact with him and that of a student instead of that of a teacher. And it, to me, proved the fact that what you teach, you actually do yourself.

Can I say something on that? I really respected you a lot more, although I've always had a lot of high regard for you, when I saw the Dan Martell vlog and the way that you interact with him and that of a student instead of that of a teacher. And it, to me, proved the fact that what you teach, you actually do yourself.

And that is when you went into learner mode and student mode, and there's certain aspects you have potentially even surpassed him in, to be honest, in terms of like dollars amount, certain industries, et cetera. However, you were able to slip into learner mode, student mode. And that I really respect. I have.

And that is when you went into learner mode and student mode, and there's certain aspects you have potentially even surpassed him in, to be honest, in terms of like dollars amount, certain industries, et cetera. However, you were able to slip into learner mode, student mode. And that I really respect. I have.

in the franchise system for me personally, then it took me three years to get just what my revenue from my first location was making. And so if you're in a sprint to make more money, franchising is many times, it's a completely different business than usually what you're actually doing, the service.

in the franchise system for me personally, then it took me three years to get just what my revenue from my first location was making. And so if you're in a sprint to make more money, franchising is many times, it's a completely different business than usually what you're actually doing, the service.

Yeah, like one that I actually really like is Made in America from Sam Walton.

Yeah, like one that I actually really like is Made in America from Sam Walton.

It's just the general ethos of the way that he even looked for new properties. He'd fly in his plane around and just look for traffic patterns, where to put a Walmart. I think that's the coolest thing ever. I like the stories. I just enjoy that more than just the theory sometimes.

It's just the general ethos of the way that he even looked for new properties. He'd fly in his plane around and just look for traffic patterns, where to put a Walmart. I think that's the coolest thing ever. I like the stories. I just enjoy that more than just the theory sometimes.

Just go on YouTube, Mike Andes. You'll find stuff there.

Just go on YouTube, Mike Andes. You'll find stuff there.

Yeah. Watch the turnaround shows. They're fun.

Yeah. Watch the turnaround shows. They're fun.

Well, there is a way to do that. You can go to mikegannies.com, but usually not the best way to do it. Okay. It's just I don't have a lot of bat time yet.

Well, there is a way to do that. You can go to mikegannies.com, but usually not the best way to do it. Okay. It's just I don't have a lot of bat time yet.

I just want to acknowledge you for all the work that you've done on yourself in the last three years. Thank you. The man I met three years ago when you came to Ferndale or Bellingham at that event center is different than I see today.

I just want to acknowledge you for all the work that you've done on yourself in the last three years. Thank you. The man I met three years ago when you came to Ferndale or Bellingham at that event center is different than I see today.

Just under 160. So you got 160.

Just under 160. So you got 160.

It's the classic 20-80. 80-20, well, yeah, the Pareto. You have 20% of the owners that are probably making 80% of the profits. And so what we've really focused on in the past year is how do we make it dummy-proof? And I don't mean that in the way that people that use the systems are dummies, but rather how do we take all the variables of their success away?

It's the classic 20-80. 80-20, well, yeah, the Pareto. You have 20% of the owners that are probably making 80% of the profits. And so what we've really focused on in the past year is how do we make it dummy-proof? And I don't mean that in the way that people that use the systems are dummies, but rather how do we take all the variables of their success away?

Because what you're doing is you're like, what is the 20% doing? And then can we make that and force it for everyone else? So would that be okay? Answering your phone is important. Well, we're going to answer your phones for you. We're going to run your payroll for you. We're going to run pay for performance for you.

Because what you're doing is you're like, what is the 20% doing? And then can we make that and force it for everyone else? So would that be okay? Answering your phone is important. Well, we're going to answer your phones for you. We're going to run your payroll for you. We're going to run pay for performance for you.

And then a matter of like what most recently we've really been going after is like we know from getting someone just from zero to 500,000 is the biggest hurdle. If we do that, we have exactly zero people have ever quit the franchise. So getting them to that level is like the activation point that we have to focus on. And so the number one thing from zero to 500,000 is like sell, sell, baby, sell.

And then a matter of like what most recently we've really been going after is like we know from getting someone just from zero to 500,000 is the biggest hurdle. If we do that, we have exactly zero people have ever quit the franchise. So getting them to that level is like the activation point that we have to focus on. And so the number one thing from zero to 500,000 is like sell, sell, baby, sell.

Right. And so what we've done in the past is more or less, here's the guide for your Facebook ads. Here's the guide for your Google ads. Here's the templates that you use. And we have it all there. But it's more like done for you. It's not as much done for you. What they want is like, we want to pay you and we want you to give us customers.

Right. And so what we've done in the past is more or less, here's the guide for your Facebook ads. Here's the guide for your Google ads. Here's the templates that you use. And we have it all there. But it's more like done for you. It's not as much done for you. What they want is like, we want to pay you and we want you to give us customers.

And so really, like the thing we're focusing on the next couple of years is like, how do we actually can I actually tell you like, hey, when you start, you're going to get 200 customers within the first 60 days. And here's how much is going to cost.

And so really, like the thing we're focusing on the next couple of years is like, how do we actually can I actually tell you like, hey, when you start, you're going to get 200 customers within the first 60 days. And here's how much is going to cost.

And we have to like we take on the shoulder the burden of actually figuring out the customer acquisition costs, your cost per click and your cost per lead, because that's the part that most people come into this business and they don't know. And so even though we have the tutorials, I can track and see still half of them don't put up their Google, their Google tracking code.

And we have to like we take on the shoulder the burden of actually figuring out the customer acquisition costs, your cost per click and your cost per lead, because that's the part that most people come into this business and they don't know. And so even though we have the tutorials, I can track and see still half of them don't put up their Google, their Google tracking code.

Still half of them don't do their Facebook pixel, even though I show them how to do it. And so we're really trying to, franchising is a matter of like you're giving up some control for the constraints that hopefully is leading to success.

Still half of them don't do their Facebook pixel, even though I show them how to do it. And so we're really trying to, franchising is a matter of like you're giving up some control for the constraints that hopefully is leading to success.

I would 100% agree. The corporate expansion route is easier because I don't have to worry about all the other parties involved in the decision. So when I make a decision for the franchise at a level, I'm not thinking about what's best for my locations because I own, personally, locations in the systems. I have to think about 160 other people and their opinions and get their buy-in.

I would 100% agree. The corporate expansion route is easier because I don't have to worry about all the other parties involved in the decision. So when I make a decision for the franchise at a level, I'm not thinking about what's best for my locations because I own, personally, locations in the systems. I have to think about 160 other people and their opinions and get their buy-in.

Even though I might have all the data and know 100% this is the right way, the way I have to roll that out is completely different. And so I think it comes down to like what is the goal of franchising? And if it's simply the money, I don't believe it's the right path.

Even though I might have all the data and know 100% this is the right way, the way I have to roll that out is completely different. And so I think it comes down to like what is the goal of franchising? And if it's simply the money, I don't believe it's the right path.

It's much more a matter of I don't believe I could have the level of like 150 locations, 160 locations now that we've done in five years if I was doing all my own capital. So the advantage from a franchisor's perspective is I can access the capital of other people and they actually pay to be in that system.

It's much more a matter of I don't believe I could have the level of like 150 locations, 160 locations now that we've done in five years if I was doing all my own capital. So the advantage from a franchisor's perspective is I can access the capital of other people and they actually pay to be in that system.

Just a flat monthly fee.

Just a flat monthly fee.

No, correct. So it really is incentivizing the scale up because it's a flat monthly fee of $1,200. And so anything in addition to that is simply what we charge per minute at our command center for all those back-end admin tasks. But those are all completely optional.

No, correct. So it really is incentivizing the scale up because it's a flat monthly fee of $1,200. And so anything in addition to that is simply what we charge per minute at our command center for all those back-end admin tasks. But those are all completely optional.

You use 6% and then like a 2% marketing fund.

You use 6% and then like a 2% marketing fund.

Did he come in recently after the KKR?

Did he come in recently after the KKR?

Okay, cool.

Okay, cool.

Yeah, so it was about three years in to starting Augusta Lawn Care. I was the classic working 80, 90 hours a week situation. Didn't have systems and procedures. I got underneath the dump truck and was turning on the PTO of an old dump truck as a manual line had broken from inside the cab. PTO is a power takeoff, makes the thing spin, dumps the bed. My hoodie got caught in that.

Yeah, so it was about three years in to starting Augusta Lawn Care. I was the classic working 80, 90 hours a week situation. Didn't have systems and procedures. I got underneath the dump truck and was turning on the PTO of an old dump truck as a manual line had broken from inside the cab. PTO is a power takeoff, makes the thing spin, dumps the bed. My hoodie got caught in that.

And so basically I was in the hospital for two weeks recovering from that and realized my business had no systems. And fortunate enough, I didn't have a family, I didn't have kids, I didn't have dependents, but if I would have, I would have gone bankrupt. And so I realized that the business was personality dependent and not system centric.

And so basically I was in the hospital for two weeks recovering from that and realized my business had no systems. And fortunate enough, I didn't have a family, I didn't have kids, I didn't have dependents, but if I would have, I would have gone bankrupt. And so I realized that the business was personality dependent and not system centric.

And I was on the hospital bed with my phone, FaceTiming my crew to walk through the next project. And so from that time, two weeks later I started Landscape Business Course and just started making videos online about like, hey, here's what I'm doing. This is what worked and this is what didn't work.

And I was on the hospital bed with my phone, FaceTiming my crew to walk through the next project. And so from that time, two weeks later I started Landscape Business Course and just started making videos online about like, hey, here's what I'm doing. This is what worked and this is what didn't work.

And so, that's really why, to me, even when it comes to franchising, yes, the money is not the fastest way when it comes to franchising, but being able to see these owners that don't have systems in their business get the systems and then turn things around is like, that's all I care about. And so, to your point, there's landscapers that do $90,000 projects.

And so, that's really why, to me, even when it comes to franchising, yes, the money is not the fastest way when it comes to franchising, but being able to see these owners that don't have systems in their business get the systems and then turn things around is like, that's all I care about. And so, to your point, there's landscapers that do $90,000 projects.

Yeah.

Yeah.

But sometimes I'm labeled as the guy who just tells you to do the simple services. When in reality, it's just I want you to be able to build a business that has systems and procedures. And for the vast majority of people, it's easy to create systems for simple and standard services instead of complex and custom services.

But sometimes I'm labeled as the guy who just tells you to do the simple services. When in reality, it's just I want you to be able to build a business that has systems and procedures. And for the vast majority of people, it's easy to create systems for simple and standard services instead of complex and custom services.

And so I'm speaking more to the masses when I speak about systematization and build a business. Build to sell is a great book. I think about build to leave. John Warlow, yeah. Build to leave that thing and let it run without you. And many times the systems built to do that is through simplification and standardization.

And so I'm speaking more to the masses when I speak about systematization and build a business. Build to sell is a great book. I think about build to leave. John Warlow, yeah. Build to leave that thing and let it run without you. And many times the systems built to do that is through simplification and standardization.