6 Businesses, 30+ Employees, 25 Years Old - My REAL Financial Statements

Hey everyone, it's Mike Andes and you're listening to the Business Boot Camp podcast. Today I'm going to be sharing with you how much my six different businesses and probably about seven or eight different revenue streams, but actually six businesses, what they generated in revenue and in profit last month. Before we get into today's show though, a big thank you sponsor, which is Gusto. If you haven't already, go to gusto.combootcamp. if you're like me and you run businesses, you have employees and you got to pay them and you want to be transparent with what you pay them and, and a great way to do that is use a platform like Gusto where they can see their compensation, how much money is being taken away for taxes and Medicare and all the rest of the stuff that comes out of their paycheck. Be open, transparent with that so they can see it all the time from the app. And also it's just a great service for being able to do automatic transfer to your employees for their paycheck. So check it out Today, go to gusto.combootcamp if I'm a little bit hoarse today, forgive me, I just finished three days of training for our franchisees and here at Augusta Lawn Care. And then literally tomorrow I am going to be going out on a 14, no, 12 day trip with Josh to be traveling all around the country and meeting up with the franchisees. Really looking forward to that, but a little bit hard on the throat, so forgive me for that. So if you haven't watched last month's revenue reports, I shared with you exactly what the revenues and profits were for my five or six different businesses. Some of them, you can't really say they're business. I don't know, like, is real estate a business? I don't know, like my stock portfolio, is that business? No, not really. It's just a revenue stream. And same thing with like the books, like Amazon. I get little bits of money from those places. So anyways. But you know, about six businesses that are actually legit have employees. I want to talk about those. What they made in revenue, what they made in profit. And if you haven't listened to the last revenue report, please do cause a good balance with today's because you'll see how some months you do really good, some months you don't. You know, on your profit and loss statement, looks like you did bad or vice versa. You know, last month it looks like we lost money on some things and then this month it made looks like we made a whole bunch of money like, but it all balances itself out. And again, the profit and loss statement tells a story. To look at just one month profit and loss statement does not give you a good indicator of really the overall health of the businesses. I always think of a balance sheet as sort of the really quick, kind of like almost taking someone's temperature. Like it's really quick, easy way. Are you healthy? Like, are you doing well right now? Maybe your heart rate, like it's a quick, easy, quick, you know, triage of how good the business is doing. From a cash perspective, that's the balance sheet, the profit and loss statement or the income statements, they really tell a story. It's kind of like looking at the medical records of someone instead of just a snapshot in time on their balance sheet, the income statement really tells a story. And so I hope that by sharing these that you can kind of see the story and you can see the ups, the downs, the goods, the bad. And I'll continue to share these maybe not every month, but as much as I possibly can get time to do this and to hopefully inspire you and to encourage you if you aren't doing well, to see that businesses lose money sometimes and that you have hard months sometimes and unexpected things come up sometimes. But then there's other months like this month where you have a really, really good month and you count your blessings and you, you know, count your lucky stars when you have a good month and you save up for a rainy day, when you know there's gonna be a bad month, or there's gonna be unexpected expenses or you're going to be able to take opportunity of something that comes up for a really, really good deal. So let's go ahead and jump right into it. If you haven't watched last month, make sure you do that. Cause I talk a little bit more why I'm sharing these numbers. But definitely not to brag or gloat or make people feel bad. That's not the reason. This is not like an overnight success. If you think that you're going to do this in a matter of a few months, you should go fly a kite. This is a long, lot of time, effort, energy being poured into these businesses over years. It's only been recently that I shared these numbers. And so make sure you are aware that this is not like, just start your business tomorrow and start making a bunch of money. That's not how this works. And so it's a lot of time, a lot of energy, a lot of passion, a lot of tears that go into building businesses. That are sustainable, that run profit margins like you're gonna see today. Alright, so let's jump right into it. So Augusta Lawn Care Corporation, that is the entity that runs the Bellingham location, where I spend maybe.

An hour a week spending on that in terms of my time and energy, maybe a little more if you include drive time because it's about 15, 20 minutes from where I live. And so maybe a couple hours a week of my energy is spent on that location. It's managed by great people, great culture and staff that are working there that I love a lot and that really support the vision of what we're trying to do at Augusta Lawn Care. And so last month, September 2020, their revenues were $173,182 and their profits were 34,388. Now if you watch last month's report on that one, you notice that that's significantly less profit. The reason for that is because there was three pay periods inside of the month. So there was three times we had to pay out. And every time we pay out, it's like $30,000. I'm going to do a very in detailed video of just the Augusta Lawn Care, that one location's profit and loss statement. So stay tuned for that. But I can tell you that it's a little bit lower than usual because of that third pay period as well as we did profit sharing for the crew out in the field. And so we do a profit sharing program there. We do it for those out in the field as well as the management staff. And we do it on different months because just to balance out the income statement so we don't have massive dips. And we're gonna be talking a lot about that at Landscape Summit in January. If you wanna come for that landscapebusinesscourse.com conference, sign up for that. Hear all about how we do the profit sharing program and how I balance it out with the field staff as well as the management in terms of keeping our months a little more stable. But for September, the reason that dipped in terms of profitability numbers and profit percentage is simply due to the fact that we had three, three pay periods. I know that September was actually one of our best months we've ever had in terms of profitability. But because of that third pay period, it really made the percentage drop. But really, I know that that was one of our best months we've ever had in terms of profitability and efficiencies and everything. It just happened that like our, you know, we paid people on the 1st the 15th and the 30th. And that happened like once or twice a year. So that was kind of unlucky on this P and L. But again, it's telling a story. And again, I also made a video, really in depth, of all the expenses for that location. All right, next business was Anytime Fitness. So if you don't know, I own a gym and I bought this Anytime Fitness Club. It was doing well already when I purchased it. It wasn't like I built this from scratch. I purchased it for $500,000 from the previous owner and it was great. The biggest thing that I learned from Anytime Fitness was how to run a franchise, what to expect from the franchisor and franchisees, their pain points are and what they're complaining about. I learned that communication is one of the biggest things that franchisees get frustrated by with franchisors. Not knowing what they're doing, not knowing where their money is going, not knowing what the future holds for the franchise and the future plans of the franchise. And so I learned a lot of those things from Anytime Fitness, which is one of the best franchises in the world. Ranked by Entrepreneur magazine in 2014. They were ranked number one. And so I purchased them a few years ago and, and I've made the club better. But it was already doing well. It was already cash flow positive from day one and just a great club now. COVID 19 came along in 2020 and really did a number on us, that's for sure. We had to close down for over three months. Zero revenue during that time. And we tried to pivot to like online and kind of like virtual training. It was okay, but we didn't really make a lot of money. However, we've come back to the club with a renewed focus on training and training at premium prices. So personal trainers. So we hired one full time personal trainer and now we got actually a third one that just starting on part time and so really doubling down on that in order to recoup the revenues that we've lost from COVID 19. Cause our membership is down by about 25, 30%, but we've almost doubled our training revenue. So the revenues right now are a little bit down from a year ago, but not a whole lot because we have really focused more on training. However, hiring the trainers has increased the, the amount of wages that we are having to pay out. So the revenue for last month at the Blaine Anytime Fitness club location was $42,000 on the dollar. That's what I'm talking about. $42,000 exactly. For September and our profits for the Anytime Fitness was, let's see here, $14,470. So $14,000, $470 was the profit. Now keep in mind, you know this from last month that the Anytime Fitness location, when I purchased it, I got an SBA loan on it. Now the SBA went ahead and paid for six months of our loan because of COVID 19. And so we are still not paying on that loan. It's usually about $5,400 a month. So we don't have to pay anything on that right now. So that money would otherwise be going to the SBA and going towards our loan I should say is actually we don't have to pay it. So that's why that number is actually a little bit inflated because we are not paying on our loan right now. Now you might be saying why did you take, you know, mortgage forbearance when the whole COVID 19 happened and everyone else is losing money and here you're making money and yet you're getting sba, the government's money? Basically. Let me be very clear, they did not give us a choice on this. They did not ask us if we wanted any mortgage forbearance. They gave us a letter because an SBA loan said all of your payments have been are going to be get paid until the end of the year. So there was no choice on that. I just got a letter and I'm not going to argue with the government giving me money. And so at that point that is going to help us a lot be able to get this money because when we start having to pay our mortgage again, we hopefully by then we'll be able to have a high enough revenue where we're back to where we were last year and we're spending quite a bit more money right now on marketing. So even though we spent like we'd saved like 5,400 in our monthly mortgage on their SBA 10 year SBA loan, we probably spent three or four thousand dollars in marketing that we would have otherwise not had to. And we're doing that to kind of keep the training alive and really growing the training side of the business where I feel the margins are going to be and the future of gyms need to focus on to stay sustainable in the future because focusing just on 247 hour memberships is not the way of the future. It's just not going to be, you know, it's not sustainable. I really feel like it's going to be getting people to pay $100 a week or More is going to be where the training, getting a personal trainer, having a nutritionist, having the. We have body scanners and heart rate monitors and all the rest of it use technology quite a bit for the personal training side of things. And that's what we've been focusing on to keep that business doing well even after Covid. And so even though Covid really killed us for three months, we're back almost to where we were a year ago and really have just been pivoting everything. The way we treat the business and the way we. The focus of the business. And no longer membership, it is training. Cause our membership has gone down 25, 30%. But our training has really been making up for that. So very happy about that. And the team over there has been doing a great job at selling and just learning new systems for selling, training and very proud of them for that. All right, the next business that I have, I kind of lump up several different things into one. And it has to do with like landscape business, course business, bootcamp podcast, all the books, the podcast, the conference, all of that lumped together. I lump it all together. Now this month is gonna seem like it's really high in terms of revenues and profits because we started opening up the ticket sales for the conference in January. And so what happens is we get the revenue now, but you're gonna see like in December and January, two months there where we have to pay for the hotel, pay for the venue, and we'll be deeply in the red negative for those months, or at least zero. So the reason for that is cause we collect the money for the tickets now, but then in December and January, we have to pay a bunch of money to the hotel for the conference halls. And we get food for everybody. I think we get like four or five meals. And so that has to all get paid for prior. And so we will get read in the. We will get read in the future. This is basically like money that we getting. We're getting now from the ticket sale. So definitely sign up because we're going to need it in December and January. We break even, usually lose money on the conference. Actually, let's be really honest, we lose money in the conference, but we think it's really important to be able to help landscapers as well as it does definitely attract people to the Augusta brand as franchisees. All right, so that is for the conference and all that stuff. Put together, the revenues for September were 19,564. That includes the. Let's see here. Includes everything that we get from landscapebusinesscourse.com it includes everything from teachable, where I have my courses and where you can schedule a 45 minute Zoom call with me for consulting. That includes what else includes, includes the book sales, it includes the audible sales, it includes the conference tickets. Basically everything that's kind of around my media group. And so that's what that revenue for September was 19,564. The profit on that was 13,406. So again, usually we're not that profitable in that category. Cause that money goes back into creating more content and the studio here and creating more content, books, all the things, stuff we done here. That's what that money usually goes towards. However, again we're collecting payment for the conference tickets that will end up. We will have to pay out. All right, so the now let's move along to the Augusta Franchise llc. So this is the franchise where we have Augusta lawn care franchisees. We now have 26 locations. I'm very, very happy about that. My realistic goal for 2020 was to have 20 franchisees. And we're at 26 right now. So very, very happy with that. The franchisees are doing great. And you know, obviously there's always that are struggling, they go through personal struggles. And that really weighs on me because it's tough when I see their business struggling because I know what they're struggling with. Would it be personal or family issues and things like that. And then Covid did a number on them too. But no one's like, you know, went out of business or anything like that. It's just that there are a couple that are struggling but overall doing really, really good. And I'm just so happy with them. And it's just been great, been growing and the systems have been being more and more refined. We just finished training this weekend and afterwards I was telling our management team just like felt like we've, I'm finally, we're hitting a stride on training in terms of trying to pack all that information to three days and making it where it's actually digestible for them. And so we're getting better at like what we need to have set up for them before they even come for training, what they need to watch before coming to training to get actually the best, you know, learn the most during the three days that they're here for training. So we're looking forward to that. I think we're going to get to probably 40 franchisees within the next few months over the winter is when we grow the most. And so many of the franchisees are doing so well, and it just speaks for itself. So really, really looking forward to the future of Augusta franchise. So last month's revenues were 42,798 and the profits for the franchise were 8,787. And if you remember, if you listen to last month, you actually remember we recorded a loss on the franchise. So the franchise is not profitable consistently. It goes, you know, some like this month we were above because we had some initial franchise fees that we were, we collected on. However, there's months where we lose because we're investing very heavily into software. And basically every dollar that I get into the franchise and every dollar I can, I'm putting towards the franchise in terms of building better software. So we actually just started in September version three of our P4P system. So P4P system.com is available when you get landscapebusinesscourse.com that's the version one. Version two we've completed back in August and we already are starting to work on version three. That is going to be super killer, awesome. Can't wait for it. And we're going to have that launched by January when we have the conference for our franchisees. So conference is separate from Augusta. So Augusta Lawn Care franchisees, we come together as a seminar before the conference and then we have the actual landscape summit for everyone else. So really looking forward to that conference. Can't say that enough. But the franchise is doing well. We're growing in terms of number of people. We've added some on new partners. We were able to get a Vistaprint to create a separate portal for us for printing so they can save 25 to 30, no, 30 to 40% off on all their orders as well as free shipping on everything over 50 bucks. And they don't have to actually design their. We create the designs for them in terms of door hangers and flyers and postcards. But now with this new portal, they're able to, instead of having to go into Photoshop and edit their phone number, add their URL in. This is able to they just click on what they want at the discounted prices through the portal that we're given. It's all branded with Augusta. And then they're able to just use a text field and add their phone number, add their URL and add their name, things like that, and then just order right from there. So it's great. It's cheaper. So big savings, especially for the new franchisees. They get a bunch of postcards and door hangers and every door direct mail. So a lot cheaper for Them and it's just super fast and easy. We can upload our designs from corporate into there and then just really seamlessly. Same thing with shirts. Next week they're coming out with a whole bunch of apparel for us in terms of embroidery. Hats, shirts, sweaters, men and women's like a whole bunch of stuff. So really looking forward to that. That's been a big development that we've invested in this past month as well. But really with Augusta franchise, every dollar in profit is going to be rolled back into software right now, building out the system. So for example, we're moving the operations manager at our corporately owned location, the Augusta Bellingham. We're moving her into Liz. You've met her before here in the podcast. We're moving her over into being able to support the franchisees because it's now getting enough revenue and profit to be able to support that. So the more profit we can make at the franchise, the more I'm able to move money towards supporting the franchisees and just building that. And most importantly, I just feel like if we support the franchisees and they do really well, the sales part will be fine. We don't advertise for it. It's just people that hear about it and enjoying the franchise. And so that's the goal. It's like as we get more profit, we're able to build more software, support the franchisees with more staff in terms of on call people here at corporate. So really looking forward to that transition to be able to move Liz into the role of supporting the franchisees. Because now I think we can afford it. We're a little bit pulling the trigger a little bit early. I understand that. And we'll probably have some negative profit months during the winter because of it, but that's totally fine. I think we'll be okay. All right, next business is Augusta Mount Vernon. So this is the secondary Augusta location that we started this year in March of 2020. Yeah, March 2020, something like that. Yeah. Mid March 2020, right when we, the state was going into lockdown, right when that started, we launched Augusta Mount Vernon. I have a manager down there. I have not been to this location this entire past quarter, probably for four or five months. Honestly. He does an amazing job. And last month in revenue, they did $24,290 and they profited $9,510. So really, really happy with that. That was the first full quarter. July, August and September were all very profitable months. And we were able to give the first quarter quarterly distribution of profit sharing. For the manager down there. Really, really excited about that. He's doing an amazing job, Tim, down there in Mount Vernon. And it's really proving that the Augusta model works not just for a big business like the Bellingham location that did 173,000 revenue. It also works on a small scale. And that.

$9,500 in profit is after the manager has been paid and all. Everything like the command center, I think that included. There's gonna be another video on just the profit and loss statement for the Mount Vernon location. But I know they pay like 26 or 20 $700 to Command center, which is where the franchisees get all their calls answered. But they are full service, so they get all their emails answered. They get their schedule done. Their payroll is ran by command center. And so if you have more questions about that, watch the other video where I share the numbers on the Mount Vernon location specifically and actually go through their P and link. But it's great. Like, that is a great little business because it proves the fact that, hey, you have a manager and employee and still producing 40% or so in profit on average on each month over the course of the quarter. And so, yeah, I'm gonna talk more about the profit sharing program that we use for managers that run the entire location at landscape Summit and how you can kind of make those satellite locations not have to be there, have a manager that actually cares, and you're able to pay them good money. And still the company does very well in terms of profit. So I spend probably.

An hour and a half a month on that location in terms of my time. And so just very, very happy with the outcome of that location as well. In terms of real estate, again, I don't know if you call this a business, but anyways, it's kind of my investment strategy, personally. And again, if you haven't watched a lot of my videos, I had really didn't have a lot of real estate until this year when I went all in on stocks during the crash in March, April and May, and have been able to make some good money on that and then roll that into real estate. So I've now purchased 10 units. Let me think, 10 units total. And in September, I was able to close on six more. So six of those 10. So now I'm closed. I actually own eight as I'm recording this. In about a week and a half, I will have owned. I'll have the full 10 because we're closing on the two more units, and they're all duplexes. And so really looking forward to growing the real estate portfolio. And it's kind of like where I can make my personal kind of nest egg. I don't keep any of the money personally from the businesses. It all goes back into the businesses to keep them growing and expanding and supporting the franchisees more. And so my kind of way of creating my own personal kind of backup wealth and providing for myself is having the real estate. You know, right now I could probably live on about 1,500 to $1,800 a month. Me personally, I don't consume a lot and that'd be high. Honestly I could do less most of the time. But to be conservative, probably 15, 800amonth I could live on. I know that down the road if I have a family or something like that, I'm going to need real estate or something that can pay me passively to pay for my bills since I do put the money back into the businesses and it's going back to the franchise. So right now with the eight units currently we closed in the middle of September, so I only got prorated some of the rents. But it's pretty cool because the first month of your mortgage you don't have to pay the mortgage, right? So I signed a 30 year mortgage. The first month you don't have to pay any mortgage. So the profits margins are really high on this because I basically I only had to pay mortgage on two of the units. So the revenues from September is a little bit off because again I got, I closed in the middle of September. You get prorated for the rest of the month, month for rents. So I did $10,900 in rents and in total gross revenues, I guess you would say. And then $8,978 in profit. But again that's because I didn't have to pay any of the mortgage on the six units that we just closed in a couple months. You have a better picture of the real estate because I'm closing two more on two more units in a couple weeks. And then we're raising all the rents in January. And right now even we had one unit get abandoned because like we moved into these places and I bought, when I bought these places, they're just like not the greatest of tenants, let's just be honest. And so with eviction moratorium, we can't really get rid of them. So we're trying to fix them up, we're putting money into them. And I know like next month for example, we deeply negative on the cash flow perspective of the real estate. Because we're painting the real estate and we are, you know, tearing out the carpet and doing a whole bunch of renovations as the units come out. So those will be negative for the next few months in terms of cash flow. But, but next year once we can raise the rents, get great tenants in there. Really looking forward to be able to have a nice cash flow as well as just keep investing that money back into real estate. I won't be getting a bigger house or nicer car. Not really interested in those things. But for me personally, as the real estate makes money and I'm investing into stocks, I will use that money and keep getting a deal or two a year. Probably that's kind of my goal in terms of real estate. So in terms of stocks in September, if you follow the stock market, it was a really, really bad month for stocks. Fortunately I had to pull my money out in at the end of September. Alright, sorry. September was a really bad month for stocks. I had to pull my money out at the end of August to pay for the six units that I just closed on. I had to pull the money out for the down payment. The down payment was like 460,000 or something. So I pulled money out of stocks and 480, I forget something like that. Anyways.

I pulled a lot of my money out of stocks in end of August, which was absolute luck. Let's just be honest. I wasn't trying to time the market or anything. That was lucky because the stock market did really poorly in September. So I pulled out probably, you know, I did think the market was pretty frothy. So I pulled out more than I needed in terms of, for the real estate. But at the end of the day I pull about 80% of my stocks out and cash them out at the end of August. Paid for the real estate stuff. Well, September, it started dropping. Those first three weeks of September were pretty brutal in the stock market. So I started putting money back into the stock market and I doubled my, you know, my stake in the, in the market is. And I know that we're still coming into volatility. So I didn't go like all in with the election and everything that's coming up. I did not pour money back into the market like I did in March, April, May. I don't see that kind of correction right now. But definitely we got a good 15 to 20% correction on some of the big tech stocks like Google, Facebook, Amazon. The ones that I really felt they were overvalued. But when they came back down, I was like these Valuations are good. I went in on those. And so I'm back in pretty substantially in the stock market. And I will need to pull some more money out when I close on these next two deals in a couple weeks. But the goal here is like using the stock market, if there's good deals on the market, putting money in. Big, big question. So, for example, in September, I basically broke even in September on the stock market. The reason is because that last week of September, because I trickled money in the middle of September when it was really, really low. And the last week I was able to recover everything I lost in the first couple of weeks. So very, very fortunate again for doing that. The bottom line is when the market's going down, that's when you're buying, when it's going up, that's when I'm actually nervous. Like, I get more excited on a red day when there's just the whole market is down. That means that the business didn't do anything wrong. The fundamentals of that company aren't, you know, there's no issue with them. It's just the whole market went down. And so that's when I buy in. And then when it's getting frothy and everyone's like, oh, this is the best thing ever. We're making so much money in the stock market. That's what I'm selling. That's how I get rid of. I'm kind of getting nervous here. Get rid of this. And so that's kind of my investment portfolio mindset and what the companies that I've invested in right now for the stock market are all companies I believe in for the long term. I'm not speculating. I don't have any recovery stocks. When I say recovery, I mean like retail, the cruise lines, airlines, don't have any of those right now. I'm strictly focused on companies I believe in for the long term and buying them when they on the dip, when I feel like there's a good value in them. So I hope that inspires you. Hopefully that encouraged you to either start your business, grow your business, or get at the point where it has systems in place where you can continue to expand, grow, you know, dabble in real estate, have investments, be able to do profit sharing. It's one of the most rewarding things ever. I can't wait to talk about it at landscape summit in 2021. Thank you so much, everyone, for supporting the channel. And you're really definitely part of this. Those have become franchisees, listeners, people who have joined the course, you know, supported me in so many different ways. The links are below for if you want to join the course or other things like that. Lawn CareWebDesign.com is also part of what contributes to this and so I really appreciate everyone that supports the channel. Thanks so much and have a great day.

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