JUNE TURNAROUND BTS + Seminar

Bright and early. Let's do this. You ready, Michael?

Yeah. Taking out the trash.

Everyone and their mother decided to fly Alaska today.

So we decided to fly the day after the US went into war with Iran.

So let's see if any of our flights get cancelled or if we get both.

Anyways.

Oh, bathroom.

I devour infrequent that we have a lady as the owner. And this is also very rare that you have a lawn care landscape company where the lady is 54, something like that. And then her assistant or like the other person working there is 60, but it's 500,000 in revenue last year. But they're really struggling. She's just living in her office, has no money. Her number two 60 year old lady hurt herself so she can't work. They went to like 15 people in the spring rush. They couldn't get anyone to stay. So yeah, we'll see. I'm having a feeling this is like a leadership problem which always makes good for good, makes for good content, but we'll see. So I'm sure there was a level of that like she had to get over just to have a smoke. But also it shows me that like there's a level of desperation and she's like, yeah, I need something to change here. The nice thing about us coming whenever someone applies, they have at least said, hey, I need help. So it gives us a weight in of like, okay, there's a possibility for this change to occur. I'll show them the struggle with my.

Body because my shoulders.

So really your main focus is how do I get a couple more people that can take more off your plate. So you're not going to be doing the work itself, right?

I'm 57 and, and I am like a workhorse. And people have told me that I'm just hoping that I can do it because mary can do 10 steps that will take me 10 times as long.

Here's what's cool. You don't need to know how to do it, but I do.

Because if Mary dies, I have to do that to get leads and do all that.

No, because you trust Mary that once she figures it out, she will teach you how to do it. Get scared about this, you guys, I get it.

But then I'm left like I'm so stupid, I don't know what to do.

But see, you're not stupid. You build a business that does 500,000 revenues.

It's not $500,000 a year at all.

But, but 400 and something. 479. And also you have Dynamic IT for 30 years. There's very few businesses that have been in business.

That's embarrassing because a lot of people who have been in business for that long have multi million dollar landscaping companies and I.

It's a man I'm fine with Janet.

I'm just telling you didn't do hardscaping you my thoughts. So they're Mary is 64. 60, something like that. 60, Janet 57. They've been doing the business for like 30 some odd years and just have a hard time adapting to the new world of like technology websites, hiring younger people.

Mike had to show her what WhatsApp was.

Yeah. And how to send a video. It's mind blowing. So it was good. She's obviously been in business for a long time so a lot of respect for that and I think they can change. But we'll see. Step one, I would gain £100 just dies. Honestly I don't really have any predictions. I'm going to this one. Pretty empty but they got quite a bit of debt. $70,000 of credit card debt, $250,000 of equipment debt, $6,000 in the bank. Yeah, I think this will be a good one. This is gonna be a good one. I think this will be a lot of numbers though. I don't know. They know their numbers really well. We'll find out. I think it might be a leadership problem, you know but there's no money in the bank. It's a problem.

Yeah.

So as from your old perspective, where's the current pain like in the business? Like obviously you've grown a bunch this year. We had some unexpected stuff with the county thing. Like there's a lot of stuff going on but like what do you all currently see as the constraint before we just jump in? I would say the. Before the money could be the people. We had a lot of personal issues. The money just added on top of that about two years ago we lost about a half million dollar account and that set us back. It's very difficult to recover from. They had like told the basic we're stuck. Well we had had the. The account for what it eight years prior to that. So it's kind of like the foundation of the whole business. Yeah. Operations. Right. And by you taking on his sales role he also now has more responsibility on the operation side of getting the work done. Like I just think of sales of getting the work, doing the work, greasing the gears for the work to get done. Admin, phone calls, email, payroll, etc. Right. It's very clear as to okay, these are the 50 things I do in a bake. If you're like, well, I don't know who should do what Cake Re. Is this getting the work? Is it selling, doing the work? Or is this recent eight years?

Just got done with coaching and in all honesty, that was one of the best we've ever done.

What?

Yes, I think so. It was so good. It was so concise. They did seem a little hesitant at first.

Yeah.

Do you think they're gonna.

I think they'll do it honestly. Cuz Alexis called them out and was like, I don't think they're gonna do it in timeline. Just a clarity of roles. Sales, operations, admin. Right now they're all this crossing across different functions and roles in the business. So it'd be good for the team.

Not as drama filled as we expected. Because honestly, in the application video, he made sound more like they were in dire straits.

Well, no, it sounded like more like there was drama between him and his brother.

Yeah, exactly.

They are in dire straits financially. Yeah. Like they have more credit card debt than they have money. Money in the bank. And the money in the bank gets down to a few thousand dollars after payroll. So it's still really bad.

Yeah.

But from a drama perspective. Yeah, there's not a lot of drama.

What's up, guys? We are in the Kansas City airport right now and our flight got delayed by like 40 minutes. So it's like teeth trying to fly into Great Falls, Montana, apparently. But anyways, we are still on track to be on time. We'll just be. It'll be a close call. I just got a coffee. You don't want to know how much it was because food and airports are insane. I got a fruit cup for $11 the other day.

I regret it.

Michael is working on his book things. Turnaround was great. Hopefully we can make it to the next one. I'm thinking up a plan B right now just in case. We're making it. We successfully made it despite the delay. We're in beautiful Montana. The weather here, chef's kiss. How many hotels do you go to where you walk in and see that? Crazy.

Given the name of the business, I feel like cleaning out gutters is something you can do. I also think that during January, February and March, this place might be covered in snow. I see the revenue from month to month jumps up and down massively. And so it'd be nice to get some sort of base of recurring revenue if we can. But it's going to take a while to build up to you know, he's already doing seven figures in revenue, so it's quite a bit of building. October, November, December, really heavily market. Get, like, just juice the leads as possible, as much as possible, and then book them into January, February, March.

That was the fastest coaching, I think, that has ever gone down on a turnaround.

I think so.

It was like an hour and 15 minutes. It was great. It was, like, seamless because he was picking up on everything that you were saying.

He also, I think, read the book. So he knew cure to offseason. Yeah. Off season, that's all. The only problem they really had was during January, February, March, they lose so much money. The other nine months, they make good money. But, like, it takes till July to make above zero. So you guys solve that. Oh, let's go, let's go.

We got the mascot using the municipal.

Oh, I got a little selfie. Oh, Bri, can you take a photo?

Yeah.

Arm's not long enough.

Amazing.

We should also do this thumbnail shot against something solid so we can just green screen the back out. Yeah, you like this guy? You got to see the gutter. All right, three, two, one. Today we're in Montana visiting David from Paramount Gutter.

Last year, he did 940,000 in revenue.

Last year, he did $940,000 in revenue.

But right now has more credit card debt than cash in the bank.

The real problem is that he loses money all winter and leads drop off a cliff.

This is the business turnaround show.

This is the business turnaround show. Our goal is to give David a strategy turnaround the business in the next six weeks.

I'm the founder of this Long care.

We have over 180. What did I say? Oh, okay. Let's do one quick photo here. Not mad about it. The worst is when you're in public and everyone's looking at you and you're just like, what's that? It's the first point. Hips. Let's go. All right, what are we talking about? Seasonitis. Rap break.

Yes.

Seasonitis is the disease that many homes serve service business owners have. I made up the name. But really what it is is that for one quarter of the year, we have seasonality, where leads drop off a cliff, revenue drops off a cliff, and it kills many home service businesses.

We finished the Montana turnaround early this morning, so we're killing 10 to the coffee shop right now. We don't have to fly out until two hours. We don't even get to the airport until two hours from now. So it's a pretty Cool coffee shop. I tried a matcha with almond milk and sugar free white chocolate. Don't do that. It's gross. After being delayed for about an hour and 15 minutes, we made it to San Diego and it is 11:22 this time.

It's one something our time.

Well, one something in the time zones we got used to. Finally now we're back in our time zone. I'm so ready to sleep.

It's crazy. As we went through Seattle like we went through home.

Our layover is in Seattle and I'm like this is such a t teas. We're home basically one more. We're down to the last one and we don't have to get up until 8:30 tomorrow. So it's going to be our latest.

Start time thankfully 10:30 our other time. I, I, I predict we will both be up by 4:30 probably. Okay.

Didn't have a car big enough so we're working what we got.

What time is it? 12:11. Cool.

Du it's 12:11.

Yeah. We're going to be back here today.

Yeah. The guy at the counter was like, you're returning this car today at 5pm and I was like, yep. San Diego, baby.

Yeah. All right. And then your brother like what's the kind of the rule your brother, you, your mom, what's kind of casino. Yeah. And then would your mom, would you try to buy her out so she can retire? What's your goal? For her? Pretty much. Yeah. Or for her to keep working in the business. I mean she's still pretty young so. Okay. So she would probably stay in operations. Stay in operations. And then to be fair, if you do do 1099, I don't really see, I don't really know what she would be doing besides quality checks. But you know, in the future we hopefully invest in some other. Yeah. And if you were, if your goal is acquisition, he will probably have good experience in your apartment. Yeah. So perfect. Big problem. Including those, we have no pricing structure. So we've got to figure out a system for pricing. It can't be a shot in the dark. Go for it. Today we're in California visiting David with instant cleans.

Last year he did $700,000 in revenue cleaning short term rental properties.

Last year if we just sat down for half a day, we'd be able to create a matrix by which based upon certain variables we know the pricing with certainty. And if you have that pricing matrix, if you have a system for pricing, that's a system that can be passed off to someone else down the road. And if he doesn't create a pricing system, he'll never be able to sell his business and pass this on to another buyer.

Great thing about building this though.

Okay. In any business, even if you're not trying to sell the business next two or three years like David is, it's a really good idea to build the business as if you're going to sell it. I say this built to leave.

We are so close to home. One more flight. I think this will be our seventh one in the past five days. We're ready. His turnaround was great. Coaching was 10 out of 10. Mr. David Rodriguez instant cleans here in San Diego. He said he watches the vlog. So if you're watching this. Hello.

Is his birthday.

It was his birthday today. It was so cool. Cuz he was like this was like the best birthday gift I could get.

Fun.

It was really cool.

Tomorrow a big day. And then Saturday we have another event. So it's going to be busy. Busy.

Saturday you're doing or Mike is doing like business coaching for a church. And this is amazing year for passengers.

I also got to get the 3 hours of content for Saturday.

Then I just have to record it. I have an easy job anyways. Let's get on this flight and go home. Back to my bed.

We have one of these off of our house. Just walk right off the jet bridge and just hop on the plane.

Too much clutter. What Be an eyesore to have a beer.

We are optimizing for. Well how good the house looks. Optimizing how functional Jetbridge teeth. You know, how fun to be like moving around with a joystick thing.

Right.

Our private jet right off the garage. Who needs a garage? No different.

Instead of parking your car you just park your jet.

Yeah. You put the jumpers down to your car when you want to walk outside.

Sam. Good morning vlog. It is 6:56 on this lovely Saturday morning.

Oh, we're doing the vlog.

We're doing the vlog. We got back two days ago and ever since then from the turnaround and have just been catching up on things around the house since then. Then. But today. What flavor are you getting?

Orange. What do you want?

I'll do orange. Do we just have the iced tea lemonade in the back?

Yeah. I'm just going to weigh it.

Guys. Don't get the iced tea lemonade. J o. It's not good.

Not good.

The best flavor is pineapple coconut in my opinion. And the blue one? The blue one's good. You think orange is the best over the blue one. So this morning Mike is doing a little. What would you call it babe? Like just a talk, a little seminar, a very mini conference for people at our church. He rented out the hotel for the day, but we're just gonna use it for a few hours.

A room at the conference.

I'm still tired. Yeah, he rented out their conference room and there's gonna be coffee and bagels and everything like that. Going to talk business.

Cuz we need to make more money.

Just the whole time we need to make more money. That is all we're going to do anyways. You guys will see B roll of that.

But first feel like I'm going to work.

Yeah, you do. You look great.

Don't understand something, just interrupt me like yo don't understand that. I will boil it down, I will make sure you understand it. I don't want to get anyone bored. The first hour and a half can be boring because it's a lot of terms, definitions and frameworks. You do not need a whole bunch of people contacting you to become a lead. You simply have leads in your phone right now. Your entire contacts in your phone is they are all leads. The people that you are on Facebook groups with, they are all leads. Maybe you go to church, we go to school. These people are all leads that are around you. They're different stages of warmth, different stages of whether or not they are qualified to be a customer. But they're all leads. So how I like to think about it, all the things start with funnel. So at the top the vast majority of us are our business will be driven by online it's rep wesplung people come to your website, come to do business with you, find you on Google Maps, if you're a local business, etc. Eventually, eventually someone has a click. Now you can measure this. When it comes to the 400 rule, we say liquidity and leads or spending money usually to go get clicks. They're like the only way for them to give you money is through barter, whatever.

What would be where you would say you tap off that like I don't know, a thousand bucks a month that's hurting you or like 500 bucks a.

Month, that's a personal thing like what you want to give, right? Yeah. And so you know, even things like tithing and operating for business owners difficult because like do I tithe based on revenue, Do I tithe based upon my distributions, Do I tithe based upon my salary? What should I do in terms of the offerings? Like I made a million dollars But I only took home 50,000. Like, so there's a lot of questions around this. So build the business in a way that it has abundance, and then you have the ability to give. And so I'm always trying to focus on, like, I'm just gonna make as much money as possible, and then I do believe that I will use that well, and I'm a big steward of it, and I'll be able to give to church, I'll be able to afford offerings, etc. And so, like, I will address this topic, believers, like, tithes and offerings.

The little seminar thing went so well. It was great. I feel like everyone really benefited from it. There were some good questions asked. But now we are gonna go run Oyster Dome. Except Michael is trying to figure out his AirPods right now because he had AirPod Pros and the little Squishy thing tour. I don't know if y' all have ever had that problem. And we have the new ones, but there's still, like, the base of the silicone stuck on there. So we're trying to fix it. We will follow up a minute after I turn the camera off. He got it.

I did it all by myself. I did it.

And now we have the new heads that you can get on Amazon.

Yeah. Yeah.

Few minutes in to the run up the mountain, and I figured I'd end off this vlog here. So hope you guys had a fantastic week. Hope you're having a fantastic day whenever you're seeing this. Sorry I'm so out of breath, but I will see you guys in the next vlog.

Peace.