Day in the Life of CEO [Multiple Businesses, 25 Years Old] - Mike Andes

For full service.

Where's the fires? I'm the firefighter. Good morning, everybody. We are headed back from command center in Ferndale, back to Blaine for an anytime fitness meeting. Today we are trying to get launched on a supplement program. In the past, we focused on training and gym memberships, but we've never launched supplements. So we're going to be talking with trainers about what they want to offer, where we could put that in the club, how we could pitch that and sell more supplement programs to the members, especially training members. So working on that. The meeting I just. I just finished at command center. Brady's gonna show it to you here in just a second. Is us just trying to figure out as we've grown so much, how we get structure in place. And right now it's just a matter. We're fighting fires and trying to stay up ahead of things. And, you know, service autopilot was down a couple times in the past couple weeks, so it put us behind. So we've been a lot of just like, chasing around trying to get things done, whereas now we need to, like, step back. Okay, who's gonna be managers, where, how are we gonna break things apart? How are we gonna silo the teams and make it more structured? So that's what we were talking about. And today, just a lot of just random operational stuff. A lot of times when I'm in the car here, I try to just catch up on email and so, yeah, just a whole bunch of running around today.

And next year I'm not gonna have any time in my day if I'm taking their home calls.

All the estimates and questions, questions and.

Just marketing this and that. Like, it's all day. Right. Which is fine right now, but, like, we gotta think about just one year from now. Yeah, yeah. So basically, kind of, this is what I was thinking the other day. Kind of like, how do we start structuring things? Because there's gonna be more people and we need to, like, figure out how it's gonna roll. Like, if the phone rings and they're running behind full service when need to be able to jump in. So obviously that's base. Obviously they can make a lot more, but it's something for them to work towards. And then someone that is in this category just doing estimates is like just learning. And they're not being pushed. It's just training. They're not being pushed to full service. But this is, like where we're driving for. And this is the only way I can make, in my mind, make a logic of paying them what we're paying them because, like, financially we can't afford it. That's just the bottom line. But we need them to make this happen. We can't just keep hiring these people and think that's gonna happen. Basis, right? Where she shows up for four or six hours a day, trains them, and then they're doing like, the more basic stuff.

So the bottom line is training is huge.

Right. The thing is, like, this is the goal. We. The only reason I came up with this in my mind is because, like, we can't be paying people 25, $30 an hour to be on the phones. Like, we'll go bankrupt very quickly. We are most profitable when someone's running on P4P and their base is as low as possible. That's how we make it work. Right.

The part they don't know is scenarios in our industry. I know it seems crazy, but we really need to have them trained to do everything that we do. So we are just focusing on, like, for me, these people will be time.

Consuming unless there's a hole. These folks literally are the person in the middle of the room. I don't care if we, like, make a circle and like, hey, you stand there and when you have a problem, you know, and it will be all.

Day with that many people. So I have a question about this though, because I also help with the stuff.

Software.

I'm trying to.

I'm also so to speed testing. That would mean that I'm not doing that. We saw this coming a mile away. This was an article that was posted on our site for our premium situation. Let's go a little bit further into the article right here. We had.

Kind of.

We have quite a bit to cover today. And marriage life.

Sign your life away.

Yeah.

Good luck.

Old time.

So supplements. So you dug through stuff. Cool. We need to get them into Square, which is the register that we use here to basically check out on. So are we going through like, anytime fitness supplements? They don't have like a specific program. They just have a whole bunch of suppliers that we're able to choose from based on who we want, what we want to stock.

We have a lot of flexibility. Like, we're allowed to do whatever we want, basically. They don't really have a program for it. Well, so.

Yeah, I don't. I don't really, really become like a.

Rep for any companies and stuff like that. Like the whole direct sale. I'd rather just become more, you know, we're a retailer. Yeah, right. That's why I didn't bring it up to you. Yeah. Like, my biggest thing is, like, us buying $3,000 worth of inventory, and then they're just sitting there, three packages. Like, hey, you have someone who is trying to lose weight, someone who is trying to gain muscle, right? And then it's a price per month, really. You can bake in. Okay. If there's 30 capsules of this and there's 50 of this, like, you can kind of break it down. Like, hey, it's like four or five bucks a day. Here you go. Right, so it needs to be where? On all the iPads we have on square. So that way if Tanya's not here, you can sell on the square thing. Especially, like, after the evil. It's literally a walk of, like, you're explaining everything and usually, like, when I it already. Right. Hey, so make sure you get. Make sure you get the bc double A. Yeah, Right. So it'd be better for. And so from your professional opinion that just gave them an evil scan and talked about their health, they're gonna buy from you especially. We're not gonna jack up the prices either. I'm not really into that. Like, why don't we sell something?

Yeah.

So.

What I'm thinking is shelves in that back hallway. The locking up is tough, but theoretically, like, we could use this. I could nix this. Like, no one sits in this. So we could literally just make shelves in the corner. Shelves from here down. It really is a perfect space, Mike. Not a lot of people sit around.

Okay, well, why don't we just plan on nixing this thing? And then we can get, like, 1, 2, 3, 4 shelves here and literally we could do, you know, probably two in here, too. What if we just have something like one of those glass sliding lock doors or something? Yeah, that's what I'm thinking. They're going to keep buying the same stuff every month. Right. And the only way it changes if their goals change from, like, weight loss to muscle building. Right. But even, like, one on ones. One on one clients, like, they're already paying so much. Like, pay an extra 30, 40 bucks a month, get good quality supplements and see better results, you know, so. And I know there's members that would be love, that would love to just order from their gym, that they come every single day making that extra trip to Bellamy. I've talked to a few. Okay, so. And then try to sell first. And if it works, we'll add other supplement products or, you know, ancillary things that are going to be more niche. The thing is that I already talk about vitamins and pairing vitamins with other vitamins for maximum, depending what the demographics are.

Non GMO healthy products, organic.

It's going to be easy. I'll support whatever you all want. And then in terms of like, I think the biggest thing is the cases. Like they need to be nice, the glass and everything. But on the flip side, I just don't want to spend tens of thousands of dollars on trying to make it look decent. Yeah, there's no point.

So I know you kind of had a couple questions on here. Let me just pull this up.

So, yeah, fire away.

You personally and your ability to manage all of the things you're doing. So obviously you have Augusta Anytime Fitness, you got reset. Sure, there's other things I'm forgetting, but obviously lawn care and landscape business course might have butchered that name, but so you're managing all these things. Obviously you're managing your personal fitness. I'm assuming you have some sort of relationship with your family and friends.

So I don't know.

But I'm just wondering if how you.

Yeah.

What are, how do you manage all your personal. Personal stuff going on?

Yeah, like, you know, honestly, like the big thing in my opinion is just not judging yourself. Like a lot of times people can't juggle more stuff is because they judge themselves. Like, oh, I wasn't with my family. Oh, I'm such a bad person. I didn't spend up time working today. Like, I'm such a bad person. Gary Vee would have worked 20 more hours. Like, like that sort of mindset is very toxic. And I think the most important thing when you're trying to juggle so many things is to remain focused. Like, look, I am doing this today and I'm going to work, I'm going to be over balanced. I'm going to be like over, you know, compensating and working 16, 18 hours a day. But then I'm okay with tomorrow I have to be with my family for 15 hours. Right. And I'm okay with that, like jumping around and going all in on something. And I know like from a macro level, in the first five years I've been overcompensating on business. Right. In 10, 15, 20 years, that might not be the case. Right. I might transition more, I'll compensate more with family, things like that. So in terms of balancing all those things, same thing with the businesses, right. There's gonna be times where like there's a fire and I spent all day working on one business and then there's the next day. It's like, or a week where all I'm doing is focusing on Augusta. So it really comes down to, in my opinion, is not judging yourself on, like, oh, I gotta be doing this. I should have been doing this. Like, look, I'm gonna do my best I can, and I'm not gonna beat myself up over the fact that I should get more sleep, or, I didn't do this right. I didn't work out yesterday. I'm just gonna do the best I can and then not judge myself on that.

I absolutely realize that for most of us, we need to raise our base pay on P4P, and if that means $20 an hour, so be it. I genuinely believe that this is. I've said it in the winter, and it's happening. That is, this is the hardest year for us ever when it comes to hiring. And so we need to capitalize on our growth opportunities. I don't want people, if at all possible, be turning off their marketing, to be turning away leads, to be canceling jobs. We want to take advantage of the spring rush. And to do so right now, we're going to have to charge. We're going to have to pay 2, 3 more dollars per hour. And over the course of a month, that's going to come. You know, if you pay someone $2, let's say $3 more per hour, that's going to come out to 400 and, like, 450 bucks per month extra for an employee working for you. However, that one employee could potentially be making you 10, 12, $14,000 in revenue. And if you're 20% profitable on that, now you're talking about $3,000 profit in exchange for 45, $450 in extra wages. So I still believe you should raise your base pay. And over time, you can raise the cost to the customer. But we need to capitalize on this. Growth is what we've been waiting for. And I would just say do not allow the labor market to be the thing that we point back at and say, that's why we didn't grow. So if we need to raise base pay, just go for it. We can always come back and make sure we raise our prices, the customer, to calibrate for that increase in our costs.

All right, last.

Last thing. So in. In the email is the link for those 30 ways to hire. And then there's also another link with a training video for P4P, version three that Lonnie did. Kind of walking you through different scenarios every couple weeks. We're adding and adjusting things on there, making little improvements. So we'll just constantly be adding update videos. If you ever have questions, help @augusta longer service.com Lonnie can walk you through anything, do a screen recording for you on your P4P if you have any questions on that. But we're refining that system. There's always little things and I appreciate those of you who are running it all the time and are offering suggestions and things. We just have a whole list and we just keep pounding through them week by week. So there was a little glitch that we found Kevin Cohen found on the overtime. We'll fix that. Variable rates from the time card, the percentage being able to change that right from the time card. Little thing like that will always keep adding to and improving the product. So this is the most recent update and Software of version 3 of P4P. And if you run into something like this does not make sense, please let us know. And usually it's pretty, pretty easy explanation or there was a calculation error in a time card or something like that. So please, by all means let us know. But thank you so much everyone. Have a great weekend. It's mercy goodness. I've never seen anyone go 26 an hour. It's. It's blowing my mind. Some questions for me. But from like definitely from a business standpoint, like regardless of. I don't really care if you join Augusta or not. Like you have to switch to residential. Like in that kind of a market where it's that stiff of competition, the only way you differentiate yourself is to create a brand where people are willing to pay a higher premium. And it does mean you're going to have more administrative work because you have more customers and you're not a sub. However, you're doubling your hourly rate, you know, and, and it's not like you need to get different trucks or different equipment or anything like that to switch. It's a matter of branding. Right. And retaining that margin. That's right now being sucked up by the general contractor. Alright, so just wrapping up the day here. I got one more call with a franchisee. Unfortunately he had a concussion and so we're trying to actually work with a couple of his employees to keep. Keep the business running and doing estimates and all the rest of it. So it's unfortunate, but it's part of what we're trying to deal with. So gonna have a call with him and then I'm also gonna do some recording with the MBA course. So we'll go ahead and cut to that. But thanks so much for watching today and we'll see you tomorrow.

Hey everyone, Mike Andes here, landscapebusinesscourse.com today I have a bit of a different video. As you all know, I make this course called MBA for Entrepreneurs, an online course. You can see it in the link.

In the description below.

I wanted to show you one specific concept today and that is talking about liquidity. So what we're going over right now in the course is the four pillars of evaluating the performance of your business based upon your balance sheet and your income statements. So we cover this all in the course, but I want to go over this one specifically because it's one I think is really important. Alright, so liquidity really comes down to whether or not the affirm has the ability to pay off its debt as it comes due to. So really looking at the current ratio and when we talk about current ratio, what we're looking at is the current assets divided by the current liabilities. Now current assets are things that can be turned into cash really quickly. This is going to be inventory working capital as well as accounts receivable money that people owe you that you could quickly turn into cash. That's what a current asset is. It's current, okay? It's not like machines and equipment and real estate and things like that. Current liabilities is really any sort of debt or loans that are payable within the next 12 months. This could also be accounts payable. So if you owe a supplier or you owe on a certain trade credit that you have, that would be current liabilities. Now because using this ratio you come up with a number. So for example, if my current assets are $300,000 and my current liabilities are $100,000, that would mean that my current ratio is 3.0. Now you say, well what does that really mean? Well, every single industry is going to have a specific current ratio that's kind of the norm and what is kind of standard. Your goal obviously is to make sure that it's a higher number because it means you're more liquid, you're able to actually pay off your ass off your liabilities much quicker. You're able to make sure that you're solvent. If that number, if you have more liabilities than assets, potentially you could be insolvent depending on your long term assets and liabilities. So this is one of the things we cover in the MBA for entrepreneurs course. A lot of people ask me what's inside. There's it's definitely more high level concepts like this, but this is just one of the four different ways you need to evaluate your business and I look at income statements. So we always look at income statements and balance sheet as like the triage to your business. When you go to a hospital, you know, they take your blood, they take your heart rate, they take your blood pressure, they take your height and your weight and all the rest of it. That's the triage. That's like the key elements of your business that are really important. Now using the triage is now we're actually digging into the health records. We're like, okay, what's the liquidity of the business using? What's going to be in current assets and current liabilities, which is in your balance sheet? These are all things we talk about in the MBA course. I'd love for you to be able to join the course. Right now it's 40% off and it's going to be 40% off until we finish it. It's going to slowly go up. So check it out right now down in the description, use the link and you get 40% off if you use the presale link down below. So I hope you join. It's definitely more theory, it's a little more thick. You might listen to one or two of these lectures a day. But I think over the course of 2,021, as we double the amount of content that's already there, it's going to be really valuable for all of us.

As small business owners and entrepreneurs.

I look forward to seeing you there.