$25,000 BONUS for Mowing Lawns? This is How...

Roll, grow, grow, grow, grow, suck cash. He's gonna get a $25,000 bonus check by year three.

It'll be so dialed in, it'll be way more profitable.

Raise prices, some will drop. This is all we care about. We're about to buy a lot of stuff. That's how you take care of the people. Kick it in gear, mama. We gotta run.

60% of businesses will fail in their first three years. I'm Mike Andes and I'm on a mission to fix this on this season.

Of business boot Camp. This could be a great day today. You know how I know? Saying your affirmations, reflecting on something you're grateful for and being able to see your goals every morning in the mirror. My 10 year goal, but every morning when I brush my teeth, I get to look in the mirror and look at those goals and see what we are striving for each and every day.

Kick it in gear, mama. We gotta run.

And we are on the road to go to Alex's house for the team meeting. Both Elizabeth and Alex are going to be getting pay raises today. So we're going to be taking Mike's advice with business boot camp and we're going to be adjusting their base pay from $20.50 to $23. I think next year we're going to do probably 6, 700.

I think if we flip the profit mode on hard and we and we stop growing.

And would your goal for next year for the first location mostly be raise prices, bring close ratio down, increase profits, or you still think you can grow that one alongside starting the second one.

We're really leaning towards your advice of like just completely flipping the switch, turning it to pure profit mode, literally staying at 6,5000, 700,000 and just really, really getting that bottom line and then really allowing that thing to run by itself. So we can't do above 800,000 because once you pass 800,000, then you need two managers. Alex is not going to be able to manage as a general manager. Eight, it's really going to be like 10.

Which we don't want to do. So what we're trying to do is stop growing. This needs to stop growing. That's my stop growing symbol.

What I would typically say is next year we'd be raising prices, we'd expect a decrease in close ratio and then we would be more profitable and that would slow the growth down.

So this needs to stop growing and it really needs to go to profit mode. Like, okay, if it goes to 700, that's fine, but then it needs to stay there. And the way that it stays there is you continue to raise prices. If we start getting up to 7:50, we're on pace. Okay? Raise the prices, some will drop. Raise the prices. All we care about is the bottom line now. The bottom line. Income minus expenses equals profit. This is all we care about. We want to stay around that 600, 650, 700. Because we want to drive this up. If we go up to seven or eight and we have to buy another truck, well, now that's. That's decreasing this. Does that kind of make sense? So this really is in profit mode. So I want to make sure that we're taking care of Alex, and I want to make sure that we're taking care of Elizabeth very well. Because.

I feel as though that both of them have already surpassed year one. Now I need to run the numbers on this. We have a remote office manager. Like, she's phenomenal. Uh, so that's kind of who takes a lot of, like, like answering the phones and emails. Like, she does all of that stuff and billing. And then obviously Alex is going to be, you know, potentially like, hiring and doing the sales for that location. I want to make sure that, because we are shifting the profit mode, that I can pay them really well and really take care of them because they're. They're our core. And, like, I just want to make sure that we can really take care of them. But I also want to sleep well at night and not be stressed out about, like, payroll and stuff like that.

Do you already do P4P for your guys out in the field? We do. Oh, you do? Okay, good. That's what I thought. Yeah. So for a manager or for an office person, P4P in and of itself isn't gonna work simply because it's too hard for them to track everything that they're doing. And especially for his role, where you're like, interviewing people, then you're doing marketing, then doing estimates, you're juggling a whole bunch of stuff. Like, there's just no way you're gonna be able to get accurately be able to predict, like, production. So if you look at, like, the three different parts of a business, you typically have sales, then you have your production, and then you have your admin. So he's really focused on sales admin, but production only thing that P2P works well for. Right. So guys out in the field producing the work. What I would recommend is if the goal of this location is profit, incentivize them based upon profit. And so if Your goal in that, in having that location is just, I want this to be profitable. Then just give them profit sharing. What I would recommend doing is doing some sort of graduated over the course of three years. Say, for example, the first year you're going to get 7% of profit. The next year you're going to get 8% of profit. The third year you're going to get 10% of profit. And that'd be each of them. Right. I'm just giving those examples. You could run the math of what you're comfortable with and run them based on, on this year's kind of profit numbers. And see, okay, is an extra ten grand going to be incentive enough for them to say, because what you don't want is that number to be like so minimal. It just doesn't mean anything.

I want to be generous, Right. So like, the reason why I think this will work is number one, they're all stars. But number two is we are going to this, we work straight. Growing, growing, grow, grow, grow, grow, grow. What it's like to suck cash. Well, now that we're this, we can afford to pay, right. Two, three dollars more, right. With some profit sharing that actually makes a good, decent bonus check. Right. So in this scenario, if we do 700k next year, so they're gonna get a $4,600 bonus check every quarter.

That's how you take care of the people.

They're both like All Stars and we can always to do what they need to do. So I, I just feel it's right. We just want to take care of them and make sure that, that they're taken care of financially. We're also going to be giving them a 10% each profit sharing that is going to be, I think, really big, like bonuses each quarter. So I think they're going to really gravitate to that.

You guys are focusing on profit because that's going to be a pretty good bonus check, right. I believe that you guys are both all Stars. And so I feel like you guys are already here in year one. So I'm just going to cross that out and say that we're going into year two. This is the kind of pay structure that we're going to shift to. So the hourly rate will start immediately. So that's kind of like the projections over the next two years for you guys.

Yeah. You guys, thoughts?

Yeah.

Thank you. Absolutely. And thank you guys, honestly, because, like, we wouldn't be able to do what we're doing without you, like us getting removed from those operations. That's why we're really handing a lot of this stuff off to you guys. Like, there's no way that we'd be able to do it without you guys. So we want to make sure we're taking care of.

So I called TJ last night and I offered him the second option, even though he already accepted the first option of pay structure with base pay and then also the bonus structure. So we're giving him a pretty good bonus check, actually a really good bonus check every time he hits certain criteria in the new location. So at $100,000, he's going to get a $10,000 bonus check, 250 or 300,000. I have to look at the sheet. He's going to get a $15,000 bonus check. Once he hits that 500k mark, he's going to get a $25,000 bonus check. He is in production. He's going to be a working GM or a working ops manager, as you want to call it. Like, he can't be straight production. He needs to be handing out flyers. He needs to be marketing. He needs to be focused on customer retention and quality of service. We made it very clear to him that he is going to be getting a base pay and he is going to be getting paid hourly. But the P4P and that performance pay is based on those bonuses to hit those numbers of gross revenue and number of reoccurring clients. That's all we care about. TJ is a different human being. People, like, I'm telling you little background story about tj. All right? TJ applied to our company during the midst of. Of COVID And on his resume there was a little bit of experience with. With lawn care, but, like, his whole resume was that he was in the NFL on the Seattle Seahawks. Like, that was his life. We were able to employ him through Covid. When everything was shut down, they shut down the CFL and the NFL. TJ's work ethic is like literally no one else's. He runs circles around me when I'm out in the field. Like, he is a beast. We're just waiting on February 15th to roll around so that way we can start. Start hitting the ground run.

In the beginning days, I had a real good friend who kind of like, just like helped me out when he didn't have to. He just. He saw me mowing one day, he came over, helped me out. He helped me when. When he didn't have to. So I'm forever grateful of that and I want to always pay that forward as well. So, like, Everything that we do, even our mission all in, to grow, serve, give and be a blessing. Like we want to give back to people.

A lot of the other local landscapers in the area, I really try to befriend them. It's not a scarcity mindset that we have, it's an abundant mindset. It's hey, how can we help each other out, lift each other up to get to where we all want to go. And I think doing that blessing other people, teaching other people, serving other people will inevitably get us to where we want to go. But I think it helps build that purpose and mission. Kind of like what we're doing.

As I've grown wiser, I don't know if you guys saw those that note, but basically what it says is our 10 year goal is to earn $2 million in revenue at the company with a 20% profit margin and then also own a hundred rental unit properties.

Both of those goals are money motivated.

And as I'm starting to.

Develop and grow with my mindset, I'm realizing that money is just a tool. It's not everything.

The goal has started to shift to how many people can we help, how many jobs can we provide for people, how many troops can we help? Sending care packages overseas.

How many leadership positions that we can pay a very, very fair wage with profit sharing. I start to come to realize that it is not about the money. It really is about helping other people, people and doing good in the world and providing jobs and help helping others succeed. Like that is the true core purpose that you know, we, we have.

Our mission is we're all in to grow, serve, give and be a blessing. That is our core mission, company mission, vision and just everything that, that we stand for. We want to be that example to our team that like.

Guys do throughout the year is bigger than yourselves.

There's a lot of depression and anxiety in the world, just a lot of negativity. And what we want to do is just portray love and kindness and you know, for us to have the opportunity to be able to give to those troops that are out there fighting for our freedom, like it just fills us with a really good feeling and we love doing it each year.

All right, so we are on the way to. Where are we going? Walmart. Okay, we're going to Walmart. We're going to stock up on the supplies for the troops. All right. I think we're going to need two carts each because we're about to buy a lot of stuff.

Here's what we got so far.

We just spent $1,385.76 right on the dot. Two full shopping carts full of goodies for the soldier.

Had a whole cart full of overflowing groceries. Been the checkout. I'm scanning all this stuff by myself, and I had a guy come up to me, and he's like, are you sending care packages? And I'm like, yeah, I am. And he reaches in his wallet, and I thought he was gonna give me a business card. He, like, pulled out cash and handed it to me and goes, here, I want to contribute. And I'm like. My eyes started watering. I'm like, are you serious?

Are you sure?

And he's like, absolutely.

Larissa told me not to open it, because she's like, things are gonna fall out.