6 days, 5 Businesses, in TEXAS

Anything that she does technically is considered. If she did something crazy would be considered a violation of the law. So you're okay until that happens. The thing is, you can. Someone can.

Cross the law and by the time you get back to them, the business is destroyed. Well, the challenging part is now with the current relationship, you making steps to locking things down is taken as a. Is a. An act of retaliation.

So.

But like, okay, let's take a step back for a second. So you have a key employee that's threatening to do something. You fired them. And the leverage they have against you is the fact that they have passwords and access to things that could potentially damage the business right now. Is there any.

And. And. And why, like, in what legal world does that even make sense? Because she can't.

Our car got booted, guys.

We paid. I promise.

So all these are reserved. This one was not. And so we went over there and paid for it, but we still got booted. And the car over there got booted too. That one. Turns out that parking meter is for the street.

You know, I'm short. I feel like this shouldn't be down at the ground level. And we're supposed to go scan the QR code, which is on the other side of the parking lot. Makes sense. Just doesn't make no sense.

Right?

$130 later, we have to add that.

To the turnaround budget.

Yeah, we thought we were getting away with $2.15.

We were like, man, it's so cheap.

There we go.

We have a emergency alert, Amber alert on our phones.

Amber alert? Isn't that for missing children? This is a flood warning.

This. I don't know what it's called. Amber alert, emergency alert, weather alert, National Weather Service. A flash flood warning is in effect for this area. 1 o' clock AM this is a dangerous and life threatening situation. It's not to be funny. Do not attempt to travel unless you are fleeing an area subject to flooding or under an evacuation order. Zack would hate to be on the second floor. It's like supposedly there's. It might be a tornado on the south side of Austin.

We are on the south side.

That's right.

Perfect weather to be.

Whoa, the wind is really picking up. Oh, my word. I've never seen a tornado. I want to see the tornado. I want to see the twister right through the. Right through our parking lot. Great.

We'll see how tomorrow morning.

Just as long as it doesn't hit our car. Well, you can hit all the other cars. Oh, we got lightning, folks. We got Lightning.

Turnaround numero uno. Today's home roots, lawn care, landscaping. This is the smallest turnaround on the show of this show, by the way. No, turnaround shows are exhausting. And then they're like, oh, you know what, let's do it. Five of them. Four turnarounds and another video in one week. So this is the longest show, longest week we've ever had in terms of turnarounds we've never had. I don't think we've ever done four. And plus another video I got looks like a pawn of a hamster in your wheel.

His overhead dramatically, like a lot by getting a bunch of debt. Then he went out during the. The winter and had to get a $50,000 line of working. Working, which basically what they do is they're going to take usually 10 to 15% of every transaction going forward. So you're basically robbing Peter to pay Paul like you're robbing your summer and fall, profitable season to get through the winter. Have you left projects coming in? Yeah. So like we got really heavy on the project side that naturally kind of scaled by itself. And then the recurring revenue has kind of just been there. Yeah. In terms of construction side, what's kind of your wheelhouse like? I know you mentioned the pickleball court. That seems like that was a one off. Yeah. Out of the norm. But what's sort of like the bread and butter? Is it like probably like the 20 or $30,000 refresh? Okay. Yeah.

All right.

And then from your perspective, when someone calls in for. For a recurring job, are you selling them from here or do we send TC out and DBS? Depends.

Okay.

Okay. So that 50 grand is gone. Currently, cash on hand is still around three. Three grand. Yeah. Sorry about that.

So it's rare for a home service business. Do you want to do that whole casual thing again? Yeah, we can go. We're casual. Yeah, I know. We. For the intro at least, we want to do the kind of. The two takes of it. How are you feeling? Okay. I get your thing. Yeah. It's rare for a home service business to have an actual physical office space that you can bring customers into and do sales presentations. And usually it's not necessary if you're doing smaller items. Today we're in Texas visiting TC from Home Roots Landscape.

TC made over 500,000 in revenue last year, but right now has tens of thousands of dollars in credit card debt and has no cash in the bank. Is that too much?

It's a long sentence. Can I really write that? Is it home Roots or tc.

It'd be too repetitive because you've just got done saying visiting TC from home. Roots landscape.

Okay, so tc. Yeah, yeah.

Tens of thousands of dollars in credit card debt and no cash in the bank.

Yeah, Just right. You know, semi struck aren't just enough. We need to have a train somewhere between Austin and here. He's just that reliable. I. Joe's coming. I don't even check the GPS in the truck. I'm like, he'll be there. He'll probably beat me.

So how many for these locations now? What for recurring? What do you have for the scoop seat? Yeah, so we're at, I don't know, individual. We're around roughly 20 scoop customers can do deodorizers and sanitizers for the pet waste alcohol and our weed control.

Good morning people.

A little sleepy. We got like six and a half hours of sleep last night, if that.

Where did you get six hours of sleep?

You got went to bed at like 11:30. 11. And woke up at 5:30. We're still in Austin, Texas. This is our last turnaround here and then we're gonna drive up to College Station.

Brianna was getting steps in her sleep last night.

Oh my goodness. Like apparently around 4:30, I was running in my sleep.

Literally running. I thought she was fighting like having nightmares. I woke her up. Whoa. The lighting's really good on that.

It's actually not bad.

It's like pitch blackout. Yeah.

Apparently I was running but I wasn't wearing my watch so the steps didn't count. Yesterday we saw TC Bliss and his business.

It's crazy.

It's crazy.

He's very optimistic though.

He was honestly, like, given his circumstances, such an optimistic guy. Very likable, very, very nice guy.

But yeah, given the circumstance, I feel like any other person would have just been like kind of stressed out of their mind. But he seemed like he had it together.

Zero cash, 25,000 plus in credit card debt.

Loan on a Bobcat and truck, $50,000 of a jobber loan, and they take 20% of every dollar until it's paid off. So he couldn't really go into recurring revenue because all of that was being ran through jobber and stripe. And so because he like, I couldn't help tell him to increase that because they take 20% off the top, which is all his profit. So we had to really go in like, yeah, you got a big project. So it was like one of the first turnarounds where we really talked about sales process of big projects, like 50,000.

Plus dollar jobs and then after that we met up with Ryan Payne, which I think I got a couple clips of. Just did more of like a shop tour because he owns like five Augusta locations. So like an interview style, which will be on the HSM channel. Home Service Millionaire eventually. So that was sick. And now we are visiting a friend.

This one's tough because he doesn't really have any pain points as much as like he feels stalled out. He's been the same place for six years. He can't figure out how to like delegate things to his employees, which are actually his family. And yeah, he had to fire his brother a month ago and then bring him back. So there's some tea. There's some tea.

There is some tea.

So we got.

He touched on it over there a little bit.

Oh, really?

Yeah, in front of his brother. But it was very much like he can kind of look back on it and almost not laugh about it, but kind of like elbow his brother in the ribs a little without it being, you know, too bad. Anyways, that's the update.

I mean, I don't maybe eventually as I got older and I remember definitely.

So I started letting my dad out again.

So that's basically a day. Right? Is that kind of what you're using right now? Yeah. But also kind of based on what the day is. Right. I feel like that's less than the belief in regards to any kind of aware of. Right. Having that. You're going to have to create a checklist, prioritization and success metrics for that person. They should walk into the job knowing what to do in what order and what priority to do it and what means they are doing a good job. What's the success? Yeah.

Post coaching thoughts?

I tired?

No.

Really good dude. Basically in that limbo spot like 500,000 where you need an admin person or someone else to take stuff off your plate, but you can't really afford it. So just like figuring out how to navigate that firm so you can take the business to the next level. Good dude, though. I like him a lot.

Do you think he can solve.

Oh, yeah.

Before six weeks is over?

Yeah, you know, four or five weeks, I think so. The challenging part is like creating a checklist, prioritization and success metrics for an admin person can be daunting because like there's so many little things that you do in a day. But I think he'll do it.

He seemed fired up after.

Yeah, yeah. And. And I also like this is one part where education actually helps, like having a bachelor's in science degree helps me know that he can prioritize. He knows how to create, like, checklists and, like, do that stuff. So I could. I can kind of glance over those things, knowing that he will figure that part out. You pour a whole bunch of new customers in that funnel, and all of a sudden, like, oh, my word. I need someone to answer the phone. Oh, my goodness. Like, I can't get to all these estimates. Oh, my goodness. Like, I'm getting all these irrigation leads. Maybe I can't do the irrigation myself. And so you identify the constraints many times by testing it. So even in software, we will put 10 times the amount of traffic on the site. Come on. You're failing at this. The lead part of the 404 brain words.

Be happy. I promise. That's a good throw. A hot dog eater if you dun it.

Oh, yeah. See, Mike knows the. The deal. Like, they're only going after the manual pieces first. They're just hanging on the street like, yo, folks, mother love.

All right, baby. The vlog is going to get excited. Peach of access on the turnaround. Okay, so Tomorrow guy's doing 1.7 million in revenue. He's young guy, but he bailed.

You bailed. Got cold be. And then Mike posted the story like he had one more spot left for Texas.

We need. We need this one thing. I'm done. Touch screen. Boom. You want to continue your dialogue?

So he got cold feet, texted, said he's not going to do anymore. And then Mike posted on the story that there's one more spot left for the turnaround.

A dollar. A dollar on milk, you guys.

And then he came back and was like, is there another spot still left?

I was like, yeah, although we have no numbers.

Oh, my word. I asked for his documents, like, four different times.

Profit and loss and all that. Yeah. So maybe he doesn't have it. He said he would get it to.

Me later, and he never did.

Lies.

I feel he doesn't have a piano. I. I absolutely agree with you. So it's lime blind once again.

I feel like I think I'm gonna get into today is a bunch of equipment that hardly gets used. A bunch of team members. He said he burned through 25 team members, and he has a team of 12 right now this year. So it means, like, probably an average span of, like, two months per person. And when you. That's fine if you're doing simple services, but if you're doing complex services of excavation and pools and massive installs, you can't be having a bunch of new Employees, like, unsafe. It's very difficult to. Is absolute train wreck. And so I feel like that's what we're going to be walking into. And it's kind of like because you're young, you don't have a lot of expenses, you can kind of get away with it. And so I feel like he's skated by using these 0% credit cards, which is so high risk. So high risk. I also feel like we don't have a balance. Well, I know we don't have a balance sheet to look at, but I feel like if we were. If we were looking at it, he wouldn't even include the credit cards because, like, oh, there's zero percent for, like, the first 12 months. And that is one way to grow a business. It's also extremely high risk because right now he has no money in the bank, which we know that's true. And he has zero percent interest on these credit cards. He's bought trucks and equipment on. There is eventually a day of reckoning. What's up, bud? To see you, man.

Good to see you.

This is a great little spot you got here. Yeah. Is this your house? No, it's not. Okay. So I'm still not. My best friend built this shop in his barricade.

So do you have any thoughts right now?

It grew a ton, and it's really only in the past, like, six months.

Basically tripling in size and a whole bunch more employees. There's three employees in December, and now six months later, there's like 12 or 13. So. Very good. Big fan of growth. Let's go. I do think there's some other things that we're not hearing yet. So he's using credit cards to buy trucks and then pay them off in 30 days. But then he also said that he's. He'll take that out as. As long as it's under 6%. I think there's a lot of just, like, reporting and, like, financial.

Indiscipline. You know what else? I'm not saying this to stir up some tea.

Okay.

But I do think maybe because of the character he kind of is or wants to portray, I do think he's trying to fluff it up, make it look better than it is, because Luke told me that just yesterday they got some of the trucks and all the stickers. Yeah. I don't know. They just bought a new truck, too.

We're out here using machetes to hack down the bush along this building.

Well, it's not a bad thing. It's just like we need eye gear and not next to each other.

With bare hands. Next to each other.

Ho. Someone's going to die. Someone's going to die.

Hopefully they have good insurance. Poor drone got hit by a semi.

It got hit by a.

Were you like facing the road and it came up behind you?

It came up behind me, yeah. So the drone is no more.

Rest in peace.

The battery survived, the SD card survived. So all the footage is there. But yeah, the Ford drone is no longer functioning. Yeah, I was looking through his Instagram and like two or three weeks ago on his home, on his business page, he was at the courthouse getting a ticket for being overloaded and not having a cdl. I don't know because I was looking at that truck that they were using this morning. It was massively overloaded. It's a double action axle dually. So that's a. You need a CDL to have that double axle dually trailer. With a dually truck that's 1, 2, 3, 4, 8, 14 tires. You need a CDL. OSHA would not approve. I think it's just in part like when you grow that fast, you're young, you really don't know what you don't know. And I think that he has a huge amount of charisma and salesmanship to be able to grow on that angle. And now it's a matter of like, hey, great, I'm super excited that you are so good at selling, super charismatic and passionate and have great personality. Now it's like let's create systems and procedures and infrastructures of the business. Doesn't isn't in jeopardy because of the chaos that is created when you have.

What'S it called, Machetes, Literally swinging at people's ankles. We have chainsaws without any eye protection, ear protection. Like.

I don't know.

It'S just this size. Like to your point. It's like one big job going bad or not paying us on time. We're just in a really bad spot. And I kind of, kind of liken it to driving a semi truck down the street fully loaded without any. Anything on the dash and you don't know what, where, how fast am I going? How much do I weigh? Are my brakes okay? What's the temperature gauge like? I don't see any in that. Like right now, like how much is in the actual checking account.

Just fluctuates. It's going to go out on June 1st. I owe ten grand to the skids tier. I'm trying to pay that off asap. So interest on the hurdles and then like what. What do we change for? Right. So liquidity. Right now I see it as we are hitting zero at some point throughout each month when we have to pay off the credit cards, we essentially hit zero. Someone that is struggling as a business owner that has to lose their business and then ends up being miserable for part of their life, you can help them and you are helping me from refraining from having that happen. And that's just incredible. So thank you so much for taking the time to do this. I just love that. Thank you for being vulnerable. I know it's hard to get like us to publicize the lower moments in the journey, but the thing is there's a hundreds of thousands of other people that are in the same thing. They just do not have. They have too much pride for me to come out. And so our goal is to highlight these. So yes, you can improve your business, but also that other people that have too much pride to not have me come out can just use the exact same recipe and hopefully fix their own business, you know? Yeah, it went good. Better than I thought, honestly, in terms of coaching, I thought he would kind of clam up on us a little bit.

I did too.

But he didn't. He was very humble and honest and I gave him a very difficult six week plan.

But if you can do it, the business will look amazing in three months.

But it's a tough one. It's really hard. Like it's. It's a lot of things that I would, I would usually do two, two of those for a six week plan. And I gave him six things to do.

What do you think the comments will say?

Oh, they're not gonna like him though. But, but this is the thing. He will redeem himself. If in six weeks he did all those things.

All of that, like you can go fly a kite if in six weeks all those things were done. Because his business is gonna be phenomenal. And by the way, you're not 20 years old with the seven figure business, so go flag.

Yeah, right. And he just turned 20 recently. It's crazy.

Shout out to him.

We're on our way to the last.

We have no brand for every lead. So right now, like almost every single lead that's coming in is to lsa, to our knowledge. I would love. And we can't do it now because we really need every lead. I would love for one day for us to turn off the ads of LSA. I have a sense that you would still get 60 to 70% of your leads.

That was Ty and Seth, Ecoworks Plumbing. What are your thoughts?

I don't know if they're gonna do it.

Yeah, I don't either.

I just feel like they. They have a lot of their plate. There's a lot of emotional baggage with the divorce and I don't know if actually. But I. I would be love. I would love to be proved wrong. Cuz it's an easy fix, honestly, in my opinion.

Okay, folks, we are home. We have the grand total of what the May turnaround trip cost. So I will say here's a little asterisk. This is a slightly cheaper than our usual turnaround trips just because we were able to do it all in one state and we didn't have flights in between. Unlike next month. Here is the May turnaround financial breakdown for travel. That total was. So that would be flights and the car and like luggage. What else was accounting for in that? And gas.

Yep.

Okay, that total is $8,222.48 for food and accommodations. Accommodations being hotels. That total is $5,103 and 2 cents. Brianna and the editing studio here, there was a slight miscalculation for the food portion of it because we missed a few transactions. So the correct grand total is actually $5,337.02. And then production wages teams pay. That is $13,160 for a grand total of $26,485.50 for the May turnaround. So that's actually not bad compared to normal. Okay, that's all. Thanks for watching.

I'm feeling sick.