Mike AndesFounder, Augusta Lawn Care and Homeworks · Founder of Homeworks and Augusta Lawn Care

How to GET OUT of Daily Operations 🙅🏻‍♂️

4 Sept 2024 · 1 min

Watch on YouTube

0:41

Mike Andes explains a numbered checklist for home-service entrepreneurs who want businesses that operate without the owners daily involvement. Key prescriptions: eliminate off-seasons, lower fixed expenses/overhead, keep direct labor <50% of revenue and admin <20%, implement hiring and training systems so tasks arent owner-dependent, use profit-sharing and open-book management so staff think like owners, and hire money-motivated managers (the "3M") to protect margins.

Questions this video answers

Less than 50%.

Less than 20%.

Having off seasons (i.e., no off seasons).

Chapters

If you want to own a business that runs without you in daily operations, here's the things you've got to do as a home service entrepreneur. Number one, you can't have off seasons. Number two, you've got to reduce fixed expenses and your overhead. Number three, you got to make sure that your direct labor as a percentage of your revenue is less than 50% and that the percentage of revenue spent on your admin is less than 20%. Number five, you got to make sure you have hiring and training systems so you're not the only person that can do that and bring on new team members. Number six, I've got to make sure I have profit sharing and open book management so the team has the numbers, the information and the competency of an owner. Number seven is I'm gonna have money motivated managers. That's the 3M making sure that there's someone to guard the bottom line all the time when I'm not there.