Mike Andes discusses why home-services businesses struggle to keep full-time employees year-round. Seasonality makes it impossible for many to sustain payroll, and when labor isn't the problem, the real constraint is leads. Andes burned $100,000 in off-season profits trying to keep people employed.
25 years.
$100,000.
I cannot afford to hire a full time person. How many people in here literally have people who work for them full time year round that you can hire them and give them benefits and all that stuff? Anybody. That's not the way this business works. I've been here for 25 years, so I know.
Yes. This is why home services industries stink. There's only four different constraints in business. If labor is not the constraint, it is likely the fact that leads is the constraint.
Oh it is, absolutely.
And so then that's my whole point.
My question is, if it gets slow, what do you do with these full time employees? And then Eric went around the room and said, you got a full time employee, you got a full time employee.
You got a full time employee. Okay, so the statement that no one.
Here has a full time. I didn't say no one here but I asked get a full time employee. Is he disorienting friends today? Yeah. Tomorrow, Monday, Tuesday, all, all, every day. You got a Fed schedule seven days a week, 365 days a year.
Months.
That was my whole point was that like there's, there's.
I got you, I got you.
I actually your camp. I got toys with kids. I do whatever I've been to backwards.
I used to burn $100,000 in the off season of all my profits for the first nine months of the year. Just got burnt one quarter every single year.
I'm just frustrated.
Oh yeah. I was going to tell the story this after evening. It almost killed me.
It was really.
I was dying. So please give me till this evening.
Yeah.
And then if you could please me a favor, do a Q and a at 5:36 o'. Cl. Talk with me right here on stage once I talk about this because of frustration. I'm super mad about the whole home service industry. I travel around the country literally this week talking about three companies all of which are struggling, can't make money and have these problems. I get freaked out, mad about this stuff. I use software and I get these boots and they're talking from me because I care about home service business owners. They're having this problem.
