Mike Minutes Mastermind 06/05/2023

Well, destination. I hope you're doing well. Going to get things kicked off. I've been making the videos for the behind the scenes kind of thing every single evening. So again, those will be available at the end of June.

Just make sure I get this into here.

Coming into this month, you will have another vote for, for Francis Advisory Council and I'll have more details coming out. That's later. It'll be just like last year in terms of.

If you want to be putting, putting your name in. I'll have a form for that and then a week later we will vote on the people that put their names for. So that is coming.

At the end of this month.

All right, let me post this in Facebook.

That's a role.

So I was able to hire someone to do door hangers full time and knocking on doors. And then I think I found my good, a good general manager. He's going to be moving here next week. So we'll see how that goes. But let's go ahead and jump in on.

This question. All right, perfect.

All right, first question coming from Nick from Marysville. Great response to my profit sharing question. Thank you. Also curious, technically we have a lot more profits from last quarter because of some, some down payments for jobs that haven't, haven't happened yet. Would you go to the effort to separate the down payments from actual profits to make it to the most accurate or just leave it? Currently half of last quarter's profit is down payments.

It's up to you. I would just stay consistent. Right. If you're going to do accrual, don't change it to cash when it is benefiting you, like just stick to one because it'll eventually balance out. Cash is usually the easiest to explain to the team. It's also what is easy to show, is easiest to show in the bank.

If someone ever questioned me, I'm like, yeah, look at the bank statements. Here you go. If I really had to, I've never had to do that, but I would be willing to. But you can only do that if you're using consistently one form of accounting. So if you're going to do cash accounting, stick to it. If you're going to do accrual and which would in this case mean that all that money that you're talking about is not, has not been realized, that's fine, but you're just pushing, you're pushing the profit sharing down, right? Because eventually at the next quarter, for example, you're going to realize all that revenue. So it just, just stay, stay consistent. Is All I would say so you don't lose the trust of the guys. Kim from Michigan, I would like to see a short of you, Chuck and Lee saying it doesn't matter what truck I should get. It doesn't matter what matters. What mower I should. Should I. It doesn't matter. Oh, I see what you're saying. I. Look, look, it does matter to some extent, right? Like down here in this market we have 48 inch mowers right at my mo locations versus up in Bellingham. The vast majority of our properties, if we had one, we would not use it. And also like the. The brand you use is important because you're dealer, right? So it's definitely important. I just think people overthink it and make a bigger deal than it is and spend time thinking about it when they should be focused on other stuff. See attached video for P2P Questions from Vlad from Winter Garden. All right, let's see what we got here. I don't know if you guys can be able to hear this, but let's go and play it.

Hey, Mike. So I'm running payroll for this pay period that ended yesterday. And I'm having a couple questions. So.

Okay, I'm not sure if you guys can hear this. I won't summarize it.

I have the base pay and overtime. I have P4P and then I have payroll bonus that includes the manual adjustments. I went ahead and exported the data here and threw it into Google Drive. And this is what I got. My question to you is, I can see here where P4P is the 1407. 1407. Then we have 938 for base pay, which is down here, 938. My question is where is this number and the export? Because I have 469. And the only thing that's kind of close to that is 341 for manual adjustments. But I don't see where that would be in a column or if it's combined because I have 341. But there's nothing else in this row for this employee to add up to what is under the payroll.

Okay, so I. So basically, in case you couldn't hear it, but was asking about the payroll export, which you can do from the export data button. He exported the data. Let me just run some math real quick to make sure I'm about to say is correct.

Plus.

Yeah, okay. So what we have done is we've made sure that the payroll bonus is exactly what you're going to be sending out on QuickBooks or Gusto as the bonus. So that way, if that number is zero, you just are going to run base pay plus overtime. So we stopped doing like P for P versus base pay plus overtime. Because, for example, if I just gave you these two numbers here, you would have to do the math of what the bonus is going to be. Right. Like this part here. So.

To answer your question about the Excel document, that part, because I have.

469 and the only thing that's kind of.

Yeah, it could be that on this Excel document, we didn't even include payroll bonus because it's really not a thing. Really, what a thing is you really have base pay plus overtime and you have P repeat. Those are really the only two numbers you're tracking. With P Repeat it is that payroll bonus number is used to be able to know what to put inside of QuickBooks or Gusto or your. Or your payroll processor. So it is likely that we're not even putting it inside this Excel document because it's not actually being calculated on a daily basis. It is simply when you run a report to tell you what to put on the paycheck in terms of your payment processor or payroll processor for.

A bonus. So it's likely that we're not exporting that because it's not being calculated every single day. Like the payroll bonus is simply a function of the report being ran in a given period. And okay, that's your pay period. Great. Here's what you need to actually put on the paycheck for payment processing. So I hope that made sense in terms of my response if it did not. Vlad, please submit another question. I hope I'm understanding you enough and I hope that was helpful. If it's not, please do another one. And I don't know if everyone was able to hear that or not either, so.

All right.

Vlad from Winter Garden. How do you live off of three or four hours of sleep? That is not what I do all the time. I need seven to eight hours to feel where I rested. I wish I can function at the same level with fewer hours of sleep like you do. I know sleep is important. How can I train my body to. To function a high level with less sleep? Okay, so you shouldn't try to do that. It's not smart. Everyone should be sleeping. What they need to feel 100% throughout the day.

There, yes, there are times where I will sleep very, very little. But I am very aware that, like, I am not functioning at my full capacity. I forget things. I get irritated very quickly. If I have any Caffeine, I start getting shaky. It's not good, it's not healthy if no one should do it. And especially if you have like family that you're dealing with like in like relationships, my goodness, you like, you'll bite people's head off if you do it too long. So.

It'S very, very short term. It's not smart, you should not do it. It's literally like it's not good. So if I do it for two nights in a row I can usually get away with it. When I start going beyond that it starts to get where I start getting cold sores and things like that. But I typically need six hours is like what is. I feel really good at six hours. If I can do that every night, I'm good to go. But yes, there are times where I'll push through for two, three, four nights, maybe at two or three hours a night. But I am not a high functioning human being. I can't work out as hard.

I'm very irritable, I get frustrated with people very quickly and so yeah, I would not recommend it to anybody. And the pursuit of trying to do more work with less sleep is also I would feel is not smart either. You need to know, I think know yourself and know what your boundaries are. Like I know I can get away with one night and like be pretty, pretty good. And so if there's a, the other night there was a bunch of bugs in copilot when we pushed out something. So yeah, I just stayed up till 4am working with the devs and.

Yeah it's just, it's, you know, you have to do it. But if I did that two or three nights and that's why like I made that video yesterday like saying like hey, I've got to figure something else out because I know if I did that even three nights out of the week that you know, I'd probably kill do that or something like that. So it would be good.

But.

Nick from Mary's and even, even with caffeine like too like you gotta be careful because I know I could if I drink caffeine at like say after three or four o' clock in the afternoon, I could pull an all nighter. So like when I've been doing small bits of caffeine and I got some caffeine tablets that are 50 milligrams which is like half a cup of coffee, I make sure I try to have it before 2pm every day because if I don't I, I can pull an all nighter with relative Ease.

But you, your body doesn't want. Like your body takes the hits and it wears and tears, man, it does. So like when people talk about pulling their hair out, I pull my hair out like when, when I'm not getting that kind of sleep and like my hair starts to fall out and you start getting cold sores and all that stuff. So you don't. I would not try to optimize for that. I would focus on being efficient with the hours that you are awake and then being deliberate about when you are or not sleeping as much as you should because you have a specific goal or objective potentially you might be pushing for, but it is not a long term strategy. Sleep deprivation is never a long term strategy. It can be used in the short term to push through certain things, but would not recommend it. Oh, whoa. There's a lot of questions about this today. Mercy Nick from Marysville. I saw you with the Celsius, one of your recent videos. I thought you were experimenting with caffeine. Those are really good, but also hardcore 200 milligrams. How is the experimentation been working out for you? The whole year of 2020 when I crushed P4P was because I had two big energy drinks a day, which is 600 milligrams, one in the morning and one at noon. Dude, this is hilarious. It was my first form of investing because I knew it cost me 150amonth for two of those a day and I could make an average of 600 or a thousand dollars extra fee for fee a month with the boost in efficiency. So I had a 250%, 650 return on investment on my energy drink investment. Oh dude, that is so funny. Anyone who has guys on PVP should show them this math and get the gears turning. Oh man, that's so funny. Yeah, how the experimentation, like I cannot drink it later in the evening. If I drink it at 4 o', clock, I just step all night. So you obviously be careful with it. And then I don't like the 200 milligrams. It's a lot. But it's accessible, it's easy to get. I like the taste of it. And so I do have the 50 milligram tablets though. So that way if it's more like. More like, hey, I just need a bit of a. Because like, honestly if you eat a big meal at like lunchtime, you will feel tired right after just because your body like trying to process all the glucose and your blood sugar goes out, out of whack. If you had like a big meal so like having a bit of caffeine to push you through that part. I kind of like it. But there's a really, really good podcast about sleep on. If you just look it up on YouTube or podcast Diary of a CEO and a guy came on there like two weeks ago and talk about sleep. Very, very good. Highly recommend. It talks all about, like, caffeine, decaffeination, coffee, like, very balanced view. I thought.

Forest, watching your videos while in nc, the employee you're hiring for three weeks, do your door hairs. How are you determining mo prizes for instant quotes? All right, let's answer that first. I have two different prices for him, 39 and 59. So 39 weekly, 59 BI weekly. And then another one that's, I told him like, hey, 59 and 89. So basically like small and large. That's it. To keep it really basic, how are you tracking the door hangers actually being hung? And how are you keeping track of any bonus money that would accumulate? So if he gets a lead, he can fill out the form, fill out the door hanger and send it to command center or the customer can. If he's just leaving the door hangers, he's actually gonna be knocking and talking, knocking on the door and talking to a lot of people. So he'll actually be filling them out and sending the command center. If someone did door hangers for all day long and clocked 12 hours and I didn't get a single call, there's probably a good chance they're not actually putting them up. So I personally am not too concerned about whether or not they're hanging up the door hangers because I'm just looking at the results. I don't care if he's not hanging up half of the day, as long as I get. If I get three or four leads, let's go. So I'm just looking at the math of the results.

If I can pay $20 and per hour and two hours go by, that's $40 to him. And then he gets one lead that's $60 per lead that I sell. So $60 customer acquisition cost. If you can get one paying customer every two hours, that's the only math I'm really tracking. I'm not going to go spot check him on door hangers. I'm not going to micromanage him. I totally can clock in whatever he wants and do whatever he wants. Only thing I'm really going to care about is like, does the math make sense? And if I can get a customer for under a hundred Dollars in the middle of June promoting I will keep doing that. And there's been people in the comments saying like I can't this is impossible. Mostly due to the fact that like in this area everyone figures out they're mowing in February, March. Maybe that's true potentially is we're going to have to probably I think price we really go after more property clamps and not mowing simply because that seems that to me that is the case. So how are you tracking the door hangers actually being hung and how are you keeping track of any bonus money that would accumulate? Yeah, it's pretty easy because everything has to do with the photos to command centers. You can just, you just filter out by those photos and that's how many leads came in and then I can see how many actually got closed. And he gets $10 for either lead, $20 for everyone that actually closes. So.

Yeah, so $20 for accepted jobs, $10 if he just gets the lead. So.

Forest just. Mike, I just wanted to say you're doing a great job. I love you man. What is this?

Oh man. Thank you Forest. I appreciate it.

Dude, I went to onto lawn site this morning which is I haven't been on their ages so I started an account because someone commented on to Lee that someone they're bashing me online. Lawns like dude man, there's some vicious people in there. So I went on there and I actually like there was one guy like kind of bashed me a bunch. So I said I just sent him a link. I said hey hop on a call with me. He didn't do was funny. He didn't believe it was me either. So I wrote this. I literally wrote down his username and I took a picture and sent it to him. It was fun. Oh man. Oh no. I don't think you guys can see my screen. One second here. I think there's one more question.

Kyle Tarvin. Should we be monitoring our net worth for long term performance? If so, how would you value our type of business in our overall net worth calculation?

I don't track my net worth. I don't really care what it is. It's a vanity metric in my mind. There's no point in time when a banker is going to say what's your net worth? And then you're going to give some random number. They will care about net worth in one regard. That is your personal financial statement. And on that personal financial statement you're not going to be able to claim the valuation of a private business. So it really does not matter. You could make a good case for my net worth to be two different things. You can make a very good case that my net worth is less than.

$5 million, easily. You could also make a very good case for why my net worth is $50 million. So it just doesn't matter. No one cares. The only people that care are the people that, like, you potentially might want to, like, look good in front of. But, like, the bank doesn't care. My customers don't care. None of you care. So, like, it doesn't matter.

And so ultimately you got to ask yourself, are you doing it, though, in part because you just want to know where you're at, and that's not a bad thing. Then what I would say is come up with some sort of valuation mechanism for yourself to be able to track that over time, right? So maybe you say, okay, I'm going to take the value of my assets on my tax return and then add in three times my taxable income from the business or, I. E. Profit, but, like, taxable income. So, like, not just what's on paper, but, like, actually what you're paying tax on from the business. And that might be your way of monitoring the valuation. Right. I would just stick with one if that's something you're doing for yourself. But the question I always ask is, why? Why do we need to know our net worth? Like, when is that question ever leading to something productive? Right? And so I've made videos, like, years ago about talking, like, about my net worth. Stupid videos. I regret those. Same thing with the Tiger ones. That's why I took them down.

As you grow up, you just learn, like, that's not a number that's important. It's. It's a horrible flex. And even. Even though those videos were made to get an intention of inspiring people that were getting started, it's a number that is completely fluid dynamic. Changes based on the economy, changes based upon who's valuing the company, based upon whether or not your valuation of your business is from a strategic investor versus someone who's going to roll you up into something else.

So, yeah, like, if you talk to 10 different private equity firms, every single one would have such vast differing opinions on my net worth. It doesn't even matter. Like, it doesn't matter if my bank doesn't matter, if my bank doesn't care. My customers don't care. All of you don't care. In a destination, none of you guys are like, I wonder what my net worth is, whether or not I'm going to Start a second location or when I'm going to continue to grow my business or go in Augusta, like is not a good move because those things are extremely liquid in terms of, and gray areas of mechanism of valuation. And so what I would personally look at in anyone that I am aspiring to learn from or judge their character, like judge where they're at in terms of winning the game of business. I'm just looking for like hard evidence of execution, right? So I'm looking at like people they've employed. I'm looking at direct. I want direct information, right? So like if someone was joining Augusta, I'd be telling like, hey, you don't look at forums, don't look what people say on Facebook or YouTube. Go talk to franchisees and then ideally talk to people that have worked with Mike. That's like the number one thing you should do. And so if I was ever like trying to get. Become like find a mentor, I. The number one thing I'd be trying to do is try to talk to the people who, they who directly report to that person. So let's. I'm trying to become.

A mentor, learn from a CEO. I would go to their C suite and be like, hey, what's it like to work with this person? Is it all. Is he or she everything that they say they are? What are they like when, when behind closed doors, what's their character like? That's. Those people is, is you got to be caring about. And there was, I forget who was talking about it. A few weeks ago I listened to like the value of a relationship when you're looking at.

Learning from somebody. Like there's people that have worked directly with them. There's people that have worked inside the organization that that person has led. Then there's people that are now secondhand and then third hand, which is like they know someone who worked inside the company that was with that person. Right. And so most news is created off a third party, which is like, hey, I'm a news person. My friend works at X Company. Therefore we're going to make a headline based upon what just happened with a layoff. What they're not getting is who was in the room when that decision was made. What was the person actually thinking and saying?

And that's, that's, that's why I think someone like, if you look at, you know what's really interesting to me recently is Mark Zuckerberg. Dude, the guy, the guy's interesting character. The reason is because he, he for all the, the, the things that people like hate him On. He literally has had the same wife since he was in college, has a couple kids. There's like a very low key life. Does like wrestling or whatever it's called that jiu jitsu and something else. Like, oh, he learned how to speak Mandarin in like six months. Like, you know, for everything that, you know, the music go around about him and like the fact that he keeps a level head about himself and can do like normal person things and like not have five wives and you know, all sorts of garbage happening with his kids and everything. Like the guy's doing something right. I'd be very interested to hear from the people that work directly with him about how he operates his life.

Because you can't be in the spit in the like here. I'm talking about lawn site forms. Can you imagine like Wall Street, Wall Street Journal and CNN and Fox News talking about you every single day, about you're literally a robot and a horrible person and like basically, you know, the scum of the earth. Like, that'd be tough regardless of whether or not someone is that. That would be quite. Especially if you can get through all that and then live a half decent, half normal life with like a wife and a family. Like, dude, kudos to you. So that's a very interesting mindset, honestly. And I think in 20 years that'll become more evident. Like, I would love to hear a book from someone like Sheryl Strandberg about Mark. He's an interesting character and I'm not saying he's good or perfect or anything like that. I'm not condoning his character. I'm interested in the people that have enough.

Mental fortitude to go through all of the public shellacking that they get and still live somewhat of a normal life. It's very interesting. It takes a lot of something. Something that I probably don't have, so. All right, everyone, have a great day. That was a very theoretical talk, but it was great. Talk about caffeine. We talked about Nick Reed getting Bang Energy so you can get more P4P. What we should do, we said like PVP sponsored by Bang Energy. Let's go. We should have like, we should try to do a brand deal with Big Energy. It's like all the guys get a 50, 50 cents off every fan. Oh man, we have people lining up to work for us. It'd be great. All right, everyone, have a great day. Take care. We'll see.