Mike Minutes Mastermind 06.24.22

Good morning, destination. Hope you're all doing super well. Happy Friday. We'll go ahead and jump into a few questions that came in first update, though I don't really have too many updates, but let me go ahead and share my screen. I have changed on the dashboard. If you go to the dashboard now under Academy, go to franchise updates. I've changed it now to where the Mastermind playlist is here. So if you ever miss a mic minute, instead of having to scroll through the Facebook page, you can just go here and go to the playlist and literally see in sequence from yesterday's video all the way down to the very first one. Whoops. All the way down the very first one in March. Every single mic minutes, Mastermind. So please do not share that playlist with anyone outside of Augusta Nation. Just keep an internal and this will, this will give you access to it all. So you can click here and then just literally go through every video you ever wanted. You can also watch on YouTube here. I think I'll show this. Yeah, and it'll actually open up. It'll open up the full YouTube playlist right here. So we basically just made a playlist with all the mike master mike minutes, masterminds. So that should be helpful if you have missed one or if you want to go back and you want to kind of binge watch them. They're all in sequence in a playlist now. There's like dozens of hours worth of mic minutes. So if you want to listen to them all, go for it.

That's all I've got for announcements. Let's go ahead and jump into questions.

I didn't read all, actually. No, I think I saw at least two of these this morning. Okay, first one up. Yeah, I saw this one. Kevin from South Haven looking at some properties to call home for Augusta. South Haven, Mississippi. Instead of renting, looking and listening to the market, it seems better to squeeze the cash and wait till the recession market drops. What kind of time frame are we looking at? Fall, early next year or where is the best place to park some cash Till then? It's just we are growing, we are outgrowing our storage facility. And in fact, the manager made us move some stuff today. Plants, bags and mulch, bags of soil, pallets, etc. And we can't move operations to the one acre land property we have, as it is already called on, as it was already called out and inspected by a city. Make sure we are not running day to day operations there. Oh, that's brutal.

Yeah. So I would say again it's very hard to time anything. How I am planning, how's I'll say it, how I am planning my personal finances and things like that and investments is that the depth of this recession is going to be from this. Somewhere between this fall and next spring. I think that's gonna be the trough. Because what's going to happen over the next six months is that interest rates have got to come up a lot. I also feel like that by the end, like within a year, I think that the war in Ukraine is going to be kind of somewhat diminished and there's going to be. Fuel prices will come back down. So I feel like in a year we're going to be kind of coming out of it. I don't think it's gonna be a long five years. Some people are calling for like this depression thing. I don't think that's happening.

So I think it's gonna be a pretty short kind of six to eight month lull that we have in real estate prices and asset price. We've already seen the stock market. We're starting to see in other assets, like in the credit markets, like defaults on car loans and credit card debt. Then we'll see in real estate. So real estate's the slowest one. So I'm expecting, like the way I am personally planning for, and could be completely wrong, is for that kind of a 10 to 15% reduction in prices somewhere between this fall and next spring. That's what I'm planning for, which works out really well for us if we're trying. If you're trying to buy land or start purchasing something during.

That time, because it's the winter, so you can move across to a different, different facility.

So if you see a great deal right now, I'd be kind of lowballing them because there's no one putting offers on blank land right now because interest rates being at 6% right now, by the time they actually lock in their rates, it could be 7 or 8%. And no one's wanting to buy anything. Like I looked at the, the.

The reports, the quarterly reports for Lennar Homes, they just reported the other day in KB Homes and the home builders, the biggest home builders in America. And they are basically saying, like, hey, we are slashing prices. We are having to cut down prices in order to sell these homes. We see we're seeing a massive reduction in demand of new homes. So when you start seeing that, you're going to start seeing eventually in six to eight months in the actual market, because that's Production side, like building houses. So my personal belief is that this fall, next spring is going to be a good opportunity to buy something on the soft. That being said, as you go into a soft period, savvy investors that own land are like, okay, I see what's on the horizon. I just get rid of this land. And they. You might be able potentially wheel and deal a really good deal in your market. Like South Haven, where you're built, there's still a lot of building projects and there's a lot of expansion still. You might need to wait a little bit longer. Every single different. Every single market is so different right now in terms of the speed at which things happen. I saw yesterday in Las Vegas a really, really interesting video about a car repossessions, car repos and how they tracked car repossessions versus the real estate and stock market. And just like how they all interact together. And when car loans, car loans defaulting and car repossessions go up, it's almost always an indicator of like future in the real estate because people will first foreclose or they will first repo their car before they repo their house. Right. And you know, get a foreclosure. So they're seeing a massive spike in repossessions of cars. And I feel like that's because people bought in the bubble of 2020, 20, 21, when you know, there's no cars and everyone else was paying like absorbent amounts of money on the these dealerships and now they can't pay those loans and they're underwater on the value of those assets. So, yeah, really, really interesting times. But that's kind of what I'm planning for. Personally, I can't say what you should do, but that's what I'm planning for, which really stinks because we're literally going into building this massive headquarters thing, which has been a pain in the butt. SBA with this whole interest thing. They are doing the weirdest stuff with their loans. They are basically trying to lock everyone out as long as possible before they secure their rates because they're wanting to. They know interest rates are going up. So they're just like stalling on everything. It's so annoying right now for us. So anyways, is there a training video or info we can use to get our max metrics, scorecard, etc. Being new to this, I'm unsure if I'm getting my numbers correct or if I'm even getting them from the right place. I could use some direction. Yeah. So definitely on a coaching Call with Lee, he can actually show you specifically in your account where he's getting all the numbers. That being said, if you're in Zooper, they are working on the front facing dashboard, like right when you log in, it's going to have all the information in your scorecard, like percentage of revenue that is recurring, how many number of recurring customers. It's going to be like all right there and you're not going to dig very much. But regardless, if you're on service all part or Zooper right now on your coaching call with Lee, he can literally walk you through step by step on what he's looking at to get those numbers. Keep in mind, if you're looking at QuickBooks, that number is going to be a cash accrual. Cash accounting versus what we use is inside of your software and that's accrual accounting whatever is actually being earned in that month. In terms of the max metrics, I remember works for a pest control company. For the past few years we've been talking about merging together. What do you think about me hiring him under Augusta or just subbing him the work? Your opinions? I would recommend subbing so that way you don't have to have liability in terms of insurance. Over the past few weeks that I've been doing a whole bunch of insurance work and trying to get better, better rates for my locations, I have realized just how much reducing services saves price. It turns out the reason I save $600 a month is because we cut out snow plowing.

While at the same time our payroll went up, which is typically the biggest indicator of your insurance cost. For general liability, we cut out snow plowing, which massively wiped out our insurance bill. So I would not recommend adding something like pest control where it's going to double your insurance premiums and then you're just hiring somebody else. I would recommend subbing it so you have a little bit of liability exposure, but it's not going to double your rates insurance. So it just depends on the volume. Like if you're doing 5, 10, 15% of your revenues coming from pest control, definitely sub it out. If 50% of your revenue is coming from pest control, you might want to take that in house and hire the person. But anything, in my opinion under 20% of revenue should either be cut out completely or subbed out. If you're talking 5, 10, 15% of revenue, I just don't want it. I'd rather have two or three big chunks of revenue, like 20, 30% at least. And they have a couple different categories like mowing, you know, 50% property clamps 40% other projects 10% that's great. That's the type of thing I would rather have than.5% pressure Washington 6% fertilization 8% gutter clean out 12% mowing 15% property cleanups 18% of hardscaping 13% sod installs like I'd rather just keep it as bigger chunks as possible. When it comes to liability insurance, that's typically going to be weighed as well. And so simplification is not only good for profits and for systems, it's also good for your liability insurance. So I do, really do. I don't mention yesterday. I recommend everyone go on the next insurance. Go to our. Go to the deal section on here. I'll show you.

Boom. No, I don't want that one. Go away. Let me show you really quick. It is on the.

Here it is share. I would recommend that everyone go to the deal section right.

Here. Boom.

Deals.

Preferred vendors and go to the very bottom and there's a link here for next insurance. And go here. Boom. So you can see I've already been working on a couple other ones, so feel free to use this. I'd recommend everyone triple check your general liability. If you're really small, you're probably only paying $100 $200 a month, so you might only save 20, 30 bucks, but you're larger. I'm paying thousands of dollars a month in general liability. So like if I can, if I can get that cut, man. Let's go one location. Save $600 just by cutting out some snow plowing and simplifying services a bit over the past year. Good stuff. So take 10, 15 minutes. You can fill out a quote there. It literally takes 10 to 15 minutes, does not hit your credit and it's really, really helpful and super easy to use your certificate of insurance. So I would recommend them for sure. All right everyone, have a great rest of your day. Have a great weekend.