I'm Selling My Lawn Care Business! (ACTUAL Financial Reports)

Hey everyone, it's Mike Andes and you're listening to the Business Boot Camp podcast. Today I'm going to be sharing all the different businesses that I have, investments that I have, where the money's going, what happened in February of 2021. Before we get into the show though, a big thank you they sponsor, which is Gusto. If you haven't already, go to gusto.combootcamp try out their software completely free for 90 days. You can have an app for your employees to clock in and out as well as see their benefits and their pay periods every single time, what the deductions are from tax standpoint and all the rest of it. So check it out. Today, go to gusto.combootcamp alright, so today I'm going to be sharing all the financials, the gross revenue, as well as the profits from all my businesses for the month of February 2021. Now, if you haven't watched past episodes where I share my monthly statements, please do so again. The reason I'm doing this is twofold. Number one, educational and number two, so that way in five, 10 years, someone can actually watch the progression of the businesses and learn from that, be inspired by that, and hopefully them through the times when they feel like they want to give up. And there's definitely months, as you're going to see even going forward from now. There's months that are bad, there's months we lose a lot of money. There's months that are financially difficult. But we know what we're doing, we know why we're doing it, we know we're trying to get better and that's what we stay focused on. So today we're going to be going through February 2021. Again, I've done this every month for the past like six or seven months. So you can get a really good story of the different businesses and where we're going with this. So first and foremost, kind of the big announcement happened this past month is we started Reset Mind and Body that hasn't generated any cash flow, hasn't made any profit or loss. We haven't really put any money into it necessarily yet. We're doing a lot of planning. We got the drawings from the architect, go back a couple weeks, Just type in Reset Mind and Body, Mike Andes. And you can see kind of a layout where we're at, where we're building, and that's going to be a few months project. So it won't actually generate revenue probably until June of 2021. The next business is Augusta Lawn Care Corporation. That is the local Bellingham location. And it's our last month of really the harsh winter here, February. And that's when we slow down a little bit. We lay off about half of our team and it's very, very good if we're just profitable at all, like if we can just make profit throughout December, January and February, we're in a really good spot. And so they did that this past month at the local shop. They did $70,649 in revenue and they profited $6,704. So just under 10% in profit for the month, which is low. But we'll have months, we'll have 30 plus percent profit in the middle of June, July when we're doing 200,000 plus in revenue. So really, really happy that they did that and really happy that throughout all the winter months we will be able to be profitable at a landscaping company where in our market there's no mowing. It's definitely a slow season, we don't have a lot of snow. And so it's just a matter of trying to get by. And if we're profitable, I'm very, very happy with that. So kudos and shout out to the team at the local shop for working so hard. Blaine Anytime Fitness we again, we've been able to recover from COVID We're back to kind of pre Covid levels in terms of revenue. Our membership has gone down about 30% but our training has tripled in terms of what we're bringing in. So that's really the focus. We've actually increased prices. We've switched from a monthly billing system to a bi weekly billing system. So that way we can get, instead of getting 12 billing cycles for the whole year. So monthly we're able to get 26 billing cycles because we're going bi weekly. So even though we didn't technically raise the prices and we really just added two more billing cycles which increased the value per member by about 12%. So technically we kind of raised the prices and that's going to help make up for the 30% down decrease in membership. But again, we're really trying to focus on that, the training and the personal training side of things. So for revenues in February 2021, $40,228. The profits on that were 16,353. And I was just notified that we're going to have several months more forgiveness on our SBA loan from the Small Business Administration. So again, this is not something I applied for. This is not like the PPP loan. This is not the Eidl. This is literally the bank, the sba saying, hey, don't pay for the next. I forget how many months. I think six more months of no more having to pay our SBA loans. That's like $5,000 a month. That's gonna really help us. It's gonna really help our bottom line. I'm gonna pump a lot of money, a lot of that savings into marketing for our training and really try to develop the training element for the club. So it's very, very strong financially. So really happy with the club this past month as well. And traditionally, January is a really strong month for us from a membership standpoint. We sell like 80 memberships. Usually we only sold like 30 or 40 this month in January because of COVID and all of the restrictions, and people still kind of hesitant to come in the club. But February was a stronger month than normal because the restrictions are starting to get better, people are getting vaccinated, et cetera. They feel comfortable coming to the gym. So I feel very confident that in about six months we should get back to about 10% less membership than pre Covid levels. But the training is just going to be so much stronger. We've just done so much better job over the past six months of increasing prices, increasing our training and sales program. So it's been really good. All right, the next part is kind of like the online business side of things in terms of. This includes the book sales. This includes lawn care, web design. This includes landscapebusinesscourse.com it includes the sponsorship from the podcast, all of that stuff all combined, like, all the online kind of space. Total revenues for February were $24,912. Total profit was 11,692. So, again, we've been very consistently being able to be profitable in this department. And this is the reason why we're making kind of a bigger investment now into the media side of things. I kind of hinted at it last time as something I was thinking about, but definitely over the next few weeks, we're going to be hiring more for the media side of things to be able to really get involved in things like Instagram, TikTok and platforms I'm not even on right now and go after a younger audience, but I wanna capture them before they actually start their lawn care business, before they actually start their small company and they actually develop some skills in business. So I'm going to be going after that. I don't expect it to be a whole lot of roi, because that market for like TikTok Instagram is a younger demographic. However, I can, you know, really, just like I said, give them the information they need now. So when they do actually start their lawn care business, they're more successful and obviously there's gonna be brand residual overflow into Augusta and we'll get more franchisees and things like that. So really appreciate everyone on this line item. Every time you see this line item, the online space, this is all of you and your support. So lawn carewebdesign.com, we do now about 25 or 30 landscape websites. So if you need your website built, go there. We charge 399. There's no contract, it's just a monthly. And if you want to cancel, there is no questions. We don't like make you fill out a form for cancellation. We just stop if you don't feel like we're worth it. There's companies that do what we do with SEO and they charge 1000 plus a month just for the SEO standpoint. But we do all your design, all the rest of it. It's 399. I would highly recommend this. This is what I really would love to be able to give to landscapers because we put a lot of money and time and effort into building your site, but you still only pay the 3 9. There's no upfront big chunk. There's not like 5,000 up front. It's just month to month, no contract. So those of you who have supported that landscapebusinesscourse.com, the MBA for Entrepreneurs course on teachable, which is in the link below, all of that is you all supporting me and I really, really appreciate and that's what going to afford us to be able to get more media attention and be able to produce more content that's free for the community as well as for people that maybe can't afford the course, can't afford these other products that I sell. But, but we're able to create the free content for them to get to the point where they're able to afford those things and they have more cash flow in their business. So thank you so much for all of you supporting me on that front. All right, so Augusta Franchise LLC, total revenues for February 2021 were $32,677 and we had a loss of $23,803. Again, for all of you that have watched every single month, you'll see this one go up and down a lot. The reason for that is because a big chunk of our revenues still come from initial fees from our franchisees. When I sell a franchise, we still. We give a whole year of deferred payments for a franchise when they start, so that way they can invest in their business, spend in marketing, get established, learn the systems. We lose money every single month that first year, and so that's why we're losing. And honestly, we're only a year and a half into franchising. 90% of all of our franchisees haven't hit $1,200 a month. And that's where we go after a year. So that's gonna be picking up right now. Like I said, there's a loss. I understand that. We expect it. Over the course of this year, we'll basically break even. So there's gonna be months. Like in January, we're up, we were positive, $25,000. This month, we're down $23,000. So it's very much up and down. It's very much of a startup. And for every dollar right now, we make it command center, which is where we, you know, take all the calls, send the estimates, do a lot of office work, payroll for our franchisees. For every dollar earned there, it costs us a dollar and fifty cents right now. And so the only way for us to be able to make money there and make it efficient is through scaling. And we understand that. We know that we do not make money on command center when we charge our franchisees by the minute, when we're on the phone, we do not make a single penny. We lose money every single time we get a call. But we know that in time, as we scale the. That will become a profitable business, a part of the business, and really looking forward to that. Like I said, over the course of 2021, we will be profitable in this business. It just. There's big dips in this one based upon how many franchisees are joining, how busy the spring is, because that basically brings in new calls and estimates for command center, et cetera. But, yeah, really looking forward to the growth at Augusta. Like, again, people are going to look at me like, oh, why are you doing that? It's losing money. Just wait and give me 12 to 24 months. And it's gonna take me three years, at least from the time when I started Augusta franchise to actually be. It's becoming profitable and very consistent. That's why it is treacherous and it's not easy. Everyone thinks starting a franchise like, oh, just print money and everyone works for you and you don't have to have an employee. That's super easy. It's a little more difficult than that. But we did make a loss in February. All right. Mount Vernon, Augusta, Lawn Care. So this is our corporately owned location. It's about 45 minutes south of us. They had one of their best months ever because they're growing very quickly. So they did $23,156 in revenue. And that's just a little bit short of what they made last summer when they are in their peak season. So they're gonna double, probably triple in revenue this year. And what's really cool is I'm very, very happy to announce the fact that our first general manager is actually becoming a franchisee. So. So we have a buyout clause for all of our general managers where they're able to buy out their location after 12 months. They're able to purchase it for a set amount that we decided on. And so I'm very, very happy because this is our very first general manager owned ran location. I haven't been down there in months and months and months. I'm not involved in daily operations. He does an amazing job. And they are gonna do. Last year, they did 155 in revenue. This coming year, they will probably do north of 350, if not 400,000 in revenue. So very much looking forward, very happy. The goal with the general manager program is to allow people to get involved in Augusta Nation, learn the systems, and then they can buy out the existing location and continue doing what they're doing and see the growth and profitability and be very comfortable with the numbers and employees and all the rest of it. Or they can go and start a location elsewhere and get their initial franchise fee completely waived after they work two years. So really, really looking forward to this. I'm gonna make a special video for this one in the middle of April after the transaction is done. Cause we're gonna be selling it the first week of April to the general manager. And I'll break down all the numbers and all the rest of it. But really, really looking forward to that. And he will be able to pay off what he paid for the loan or getting the money to us. He's gonna be able to pay that off within probably 12 to 16 months just from the cash flows from the business. So I'm really looking forward to that. Again, stay tuned for more numbers there. In terms of profit for Mount Vernon, they profited $2,470. And again, they were buying a lot of things. They bought three new employees. They're just going to be growing a lot. And So I expect that location to be well over 35%. Probably 30 to 35%, I should say, in terms of profitability, profit margin for this year, it's just a great setup that they don't have a big office, really cheap space to park everything, because the command center does everything. So right now, like, in February, what happened is we had a very steep increase. The first couple weeks of February, I started selling off the third and fourth week, Sorry, I should say the second and third week. And then the fourth week. The past two weeks in the stock market have been abysmal. So the last week of February, the first week of March have been really, really bad. So I've really bought back in. I wasn't planning on that. I was kind of thinking, like, hey, I'm just gonna keep what I had in before. So I had sold off about 30 to 40% of my stake in the market, had got down to about 300,000 in the market. But over the past two weeks, I have put a lot more back in. This is the reason. So we have Augusta headquarters. We purchase land for. We're in the development phase. We've gotten architect drawings, all the rest of it. It's gonna cost about 1.7 to 1.8 million. And I do not want to carry that debt very long. I think it's something that I feel really good if I can pay off, and I feel like if I can play things right with the investments, I might be able to get that paid using the stocks. So with that in mind, I really went all in on this dip. So I've more than doubled, almost tripled what I have in the market. So it's well over three quarters of a million now. And that is strictly because I am looking at the long term and thinking, okay, if in a year or two, I can get this money to the point where I can pay off that loan for the headquarters, I'd be very, very happy about that. I always want the Augusta franchise to be very, very financially solid because it is going to affect the franchisees. Like, I can't run a really tight lean, like, close to zero. Bottom line. I need to have a really solid balance sheet long term for the franchisees to be able to feel safe, secure, and that we can support them more and be able to invest in things that can help them with software and all the rest of it. So that's kind of my goal. I'm all in on the stock market right now. The past couple weeks, it has tanked. Today is March 4th, and it is not easy to put money into the market when everything is tanking and just dropping. And a lot of my high conviction stocks even are down 20, 25%. That's the time to buy. That is not the time to leave the market. Everyone buys in at the top because like oh my goodness, GameStop, it's at 350, I gotta buy in. It's 100x in the past few weeks. That's not the time to buy, that's the time to sell. A time when everyone's afraid, everyone thinks the world is ending, everyone thinks we're going back to a massive depression. That's the time to buy. Alright, so growth stocks in my opinion were getting very out of hand in terms of valuation. Now they've come down 25%. This is your buying opportunity. Everyone that said they were gonna buy back in March when the stock market crashed, guess what, you've down 25%. We're not like a 40% correction like we had in March of 2020, but we have a dip. Buy the dip. Okay? The reason it's dipped is because of the scare with the whole bond yield curve. And now the 10 year, 10 year treasury went over 1.5, it even hit 1.6%. That kind of scares people in the market. But again, you gotta look at the fundamentals of these businesses, the profit margins, the growth of these and realize that they are not going anywhere. Facebook is not going anywhere. So when it dipped down to $250 this morning, yeah, I bought a lot of it because I'm very confident that that company is worth 320. And so things like that, those blue chip companies, when they take a tank like that, I'm going all in AMD stock. Salesforce went down massively this past week after posting an incredible quarter. So those are the kind of companies I'm investing in right now in terms of real estate. Last one for the day's video. We are still waiting under rate. We can't raise rents right now because the moratorium. So even though I purchased 10 units, or I should say I purchased eight units in 2020 during the moratorium, all of them are under market value in terms of rents, which is good. The problem is that because it's such a good deal, no one wants to leave. And, and that's a problem during an eviction moratorium when you can't get rid of people. And so right now we still have again the one bad tenant that we're trying to get rid of. We have a judge that has already made a verdict in Terms of they are wrong. They have to get evicted. They owe us $24,000. They're going to have to probably go bankrupt to pay us that. But at the end of the day, everything's decent. Like, we're not making money in the real estate department, but as soon as we're able to raise rents, get good tenants in there, we. It'll be really, really good. Last thing in the real estate is I did do a cash out refinance on a property I bought four years ago because I had paid off like 60% of it. But it wasn't because the loan I had paid off. It was just because when I bought the place, I bought it for like $90,000. And then I put like $150,000 into fixing it up. And then the equity's gone up a lot. So I just wanted to get my equity out after putting so much into the rehab. And so I took a, a cash out refinance to get them my money out on that just because the low interest rates. And I really lucked out on the timing because I did that in like the middle of February, got that processed and was able to get the rates locked before the past couple weeks when the rates have gone up just a little bit. So I hope that was helpful. I hope it inspires you, I hope it challenges you, I hope it encourages you if you're having a bad month, if you've lost some money, that there's hope, you can learn, you can improve, you can grow. And I really hope that in a few years you can go back and watch all these videos and see the growth and the, you know, the, the really, the growth of the companies, the challenges we face financially. And I hope it helps you in your business. So thank you so much, everyone for your support. You're a big part of this. And the transparency that I bring when it comes to numbers is a big part of that is because you all help this happen. You know, whether it be Augusta Nation and our franchisees, whether it be everyone working locally, whether it be people buying the course, you know, using lawn care, web design, this is what allows all of us to operate and work. This allows us to expand the media side and, you know, improve our audience and our reach to be able to help the landscaping industry. So I really appreciate it and I kind of feel obligated to share these numbers just to have full transparency. So you know what's happening when I give advice, where I'm at financially, where the companies are at financially, how big we are, and you're not just taking nebulous information from some guy on the Internet. So, anyways, thanks so much, everyone. You've been listening to Business Bootcamp podcast. I'm Mike Andes. I'll see you on the next video.