Mike Minutes Mastermind 10/11/2024

All right, ladies and gentlemen, welcome to Mike Minutes Mastermind. This one's gonna be an important one, so buckle up. Got a few announcements, let's rock and roll, and then I'll get into questions. I will get into questions, but give me 10, 15 minutes here to go through some announcements really quick on a usual housekeeping situation.

Wow, there's a lot of tabs open. We have a bunch of designs available for Christmas lights in the pro shop. The media team is going to make a post about this later today and have them all in one spot. Like, one post for you, but there's a ton on there. This, for example, is one of the door hangers for Christmas lights. There's one for instant quote door hangers for Christmas lights, if you like that. But then this one is more kind of generic in terms of door hangers. There is also this one here, which is pretty cool, which is actually a gift card that is, they can tear off. And you can put this for your neighbors. So this one, if you go in here.

This is for the neighbors of people that you put up, door hang or put up.

And it has the font of, like, writing. And you can put your name in here, phone number, email, etc. Or website. But this is for neighbors of your existing customers. And the fonts are really good in terms of the.

Pen, so really good stuff. And what's cool is this bottom part. When they detach it, it's serrated.

It's a business card, essentially. So the back side is one size, a gift card, and the other side is a.

Why can't I do the overview sign, and then the other side is the gift card. So it's pretty cool. So like I said, the media team is going to send out a.

A post in the Facebook group later today with all the designs. There's several postcards, several door hangers, several flyers, business cards. There's a whole bunch of stuff for Augusta Lights, and they'll put it in one post for everyone.

All right. The thing I wanted to go over, though, was this. So moving forward at initial franchisee training, there will be a change.

In one of the things that we've taught in the past, and I wanted to make sure that I go over it. Oh, my goodness. Come on, Michael.

There we go. Now he's got to make that smaller. It should show up there. Okay, cool. Okay, so the first three slides are going to look normal. The fourth one is new, and I've. I've really, really taken my time on this for the past year in terms of, like, Do I actually make this call? And I'm very confident now because I did it with my locations and I've tracked so over the past year more than we've had more than a doubling in the amount of locations that are above 800,000 annual revenue. So I've been tracking all of them. And so I'm very, very confident. Even though I was one, I was going to wait till the end of 2024. But like based on the numbers I'm seeing, I just know that this is, I'm confident saying this. And so this is gonna be part of new training for new owners. And I wanted to make sure everyone is on the same page and speaking the same language. So if someone you know doesn't watch Masterminds often, please share this with them because I do think this is important and why.

There it is. Okay, now we're in business. Okay, so this is gonna look normal to everyone. This is the, in the past three stages where we have said, hey, if you grow your business to this revenue, you can optimize it for profit really, really well. And usually when we talk about these stages, these are stages when you are in profit mode, you are not in growth mode. If you are in growth mode, you throw a lot of the stuff out the window. But these are where you can stop growing the business and optimize for profit. And I see them being very consistently good spots to do so. So the first is a solo model, right? You got one or two trucks, you got one employee, you're working with the team full time in the field, doing a lot of the work yourself.

You have one employee, keep overhead and very low and you do the full service task yourself. Unless you're just going very quickly. But if you're, you're going to stay at 200,000 for a year or two, you don't need to be doing having commands to do your full service tasks. Let them answer your phone, let them answer texts, maybe for example, like more instantaneous stuff. But like you can handle the full service tasks. Even if it is in the evening, on the weekend, you can handle it. It's just not very much. One truck is all as needed. A dump trailer may be needed. For project based work. Focus on above 50% close ratio, ideally 70% in route density target at this plateau. And the reason you still want a high close ratio when you are in solo model is you don't want to spend money on marketing. Okay, this size, you're not going to get a ton of leads usually. So. So you want to be Closing most of them so you don't have to do a bunch of marketing because again, we are in profit mode. We are optimizing for profit. We are raising prices when we hit capacity. Right. So I'm not going to go get a second employee. If you are, you are not using this model. You are simply growing to the next stage. So to target this plateau and these are relatively conservative. Again, this is at the plateau. This is not like when I get 200,000 my first year. This is your second year. At the being of being at 200,000, you're optimizing for profit. You stop growing, you stop buying trucks, stop buying equipment, you stop hiring and you just raise prices every time you hit capacity. And I would ideally like to have, I like to say you've got to hit capacity twice and raise prices twice to say you're really at that model. Like you're in profit mode.

A lot of times people will like pause there for like one price increase and like oh, now I'm going to grow again. Well, you never really were in profit mode. Profit mode is you keep bumping up against capacity, you keep raising prices. Okay, so the $500,000 working GM model, okay, this is another one. Second stage works really well. Three to four employees with three to four trucks. Sales focus two days per week. Again, you could be the working GM if you're the owner operator, that's fine. We're going to call it the working GM model because that's the role that you're playing as the owner or a general manager. You're going to focus on simple services. Mowing and property claims only focus on high rate of recurring work and OTP for mowing. The reason you're going to focus mostly on property claims, mowing simple services because the working GM means you have to be in the field working. And it's very difficult to do that when you have projects that are big going on. A lot more project management required salary GM but is a revenue producing team member that works three to four days per week. Okay, again, target at this plateau usually making 50, 60 grand owner salary. Or you could say this is also what the general manager would get with about 15% owner distributions which would be $75,000 if I completely out of the day to day operations. I never talked to this general manager and they're renting everything. I'd be happy to make $75,000 or 15% owner's distribution on this size of location.

Next one full time GM. So now at this stage you have 5 to 7 trucks 6 to 10 employees. The general manager is full time, not in the field managing crews doing estimates. Ideally I stay under a million, otherwise a full time estimator. Second non revenue producing team member is needed. I try to focus on operational efficiencies and profit maximization. Under 50% close ratio and consistently raising prices. Focus on cutting out complicated and complex services. All right, so this is 800,000. This is where in the past we said 800,000 plus. And I'm very confident now based upon the data that like there is a fourth stage and I want to talk about it. And so at this stage the full time GM, the GM is not working in the field. Literally 100% of the time is just sales and managing the crew. Maybe during off season they spend a little bit of time out in the field working like doing winter services for example. But like their job is mostly management. Once you get above six employees you really need to have a full time manager. And that's what the stage is at. So now the fourth stage is this I believe based upon everything that I've been collecting from all our locations and my, my person I tested this year is like I generally believe between 800,000 and 1.5. There's a bit of a wilderness there in terms of profit. And the reason for that is because you need multiple people now in overhead positions. So usually need at least 2 most time 3 skilled overhead positions for operations. So typically like your GM then sales, an estimator and then an admin person. This is typically when I would say you should just go build your own office, which is totally fine. But that's why there's this big jump from 800,000 to 1.5 where I see as very profitable business models you almost have to double the business in terms of revenue from 800,000 to 1.5 in my opinion to able to make this profitable because you need an ops person, general manager, salesperson, full time, just handling the leads and then you usually need someone in the office because at this point now you're going to need a larger facility and it's going to be economically advantageous to have a full time admin person in house.

Estimator role, does sales only for busy season, off season, maybe they're in the field. Focus on efficient use of overhead positions. Due to overhead labor you probably are going to build your own office and admin staff. And I don't recommend this. This is my new thing. I do not recommend this. If your goal is absentee ownership. There are too many moving parts in terms of Management for me to see this work well and for it to be able to be a position that can be handed off easily.

So my, my two locations fall are gonna go for this. So the Bellingham shop historically has been like two years ago we were 1.5, 1.6, 1.7. I did, we did those for like several years there. At every single one of those stages, we had Liz and I, then we had Liz and Lee, then we had Lee and Marcus, and then we had Marcus and Garrett. And then when we went to one, went down to one general manager and try to cut out the salesperson, like it's too much for one. One person like Marcus did it for like half a year because he's an absolute all star, but he was working 60 to 80 hours a week. Like he was insane. That's not sustainable. And more importantly, the reason I know it's unsustainable is because when he handed off to someone who was not able to work those hours, the location fell apart. And so then when that location is handed to someone else this year, for example, where they're going to do maybe around that million marker, I still see the same cracks. And that is the general manager is massively overworked. We have to spend significant amounts of money on advertising to keep capacity or keep revenue high enough to meet capacity. Because if you have, you know, 10 trucks, 12 trucks, and you're only doing 800,000 to a million, like you're not using the full capacity. And this is a post I made last, last, last weekend is like one way to get profitable very quickly is to get to capacity. Now there's two ways to do that. One is you advertise and sell more jobs in order to hit capacity. So if you're like, well, I can do 400 budget hours and right now I only have 300 budget hours worth of work. Well, you've got to go market and advertise and get enough leads so you can fill that 100 hour gap so that you can get to as close to capacity as possible, because that's where we know you can be most profitable. The other way to do that is what we're going to do with the Bellingham shop. FYI, going forward, we are going to cut our capacity. I'm going to sell trucks, I'm going to hire less people in order to get back to capacity. The reason is I have consistently seen that the marketing, advertising and extra labor required to increase my work to my capacity, I will make more money if I just sell a couple trucks, bring my Capacity down, let go of some of my employees so that the number of leads that I'm getting books my crew out further. And I do not have to market. So I don't want to spend four or five thousand dollars a month in marketing. Like I don't want to have to spend that much money to fill in 100, 200 budget hours a week of projects. I don't want to do that. So once a location is optimized, I'm going to simply. This is what the Bellingham shop is doing. We're literally selling several trucks. We're going to make it probably six to seven trucks. We're going to have, you know, six to eight crew members and that that's what we're going to move to. So they did it last week, they already cut it. And immediately now we're booked out six weeks. We were booked out a week just a few weeks ago. And so marketing is turned off. We don't, we're not going to spend four or five thousand dollars a month on marketing anymore. And so I truly believe once you've grown, and we had to grow this year to kind of get all the recurring customers back that they lost last year. But we've done that. We don't need to keep growing. And if we grow anymore, there's going to have to be required another full time salesperson at that location. Have to be like, Corey hasn't been able to take a vacation for months because he's managing 10, 12, 15 crew members. In the spring he had 20 people. And so there's just no way that has a sustainable position that could be, can be handled without the owner being there to step in whenever something go wrong happens. And I haven't been there for months now and I can see this is very, very clear that like in order for this to work, this is, this is the move. And what I really, really like, I like this getting to second stage. So 500,000 as fast as possible. That doesn't change. I believe everyone should get there as quickly as possible in order to be able to.

Get some scale that is have a few trucks, have a few employees, have some redundancy or one employee leaving doesn't wipe out the business. You need to have a little bit more sustainability there. Even if 450, 4, 50, 500,000, I think you can make money there. And then I really think that once you've grown to that stage, you just flip it into profitability mode. And over the course of three years you raise prices until you're making seven fifty to eight hundred thousand without any more trucks and any more employees. Like how is that possible? Okay, let's just say I'm going to use 65 or $70 per hour and I'm going to ramp my location up. I'm going to get it to 4,5000,500,000. I'm going to stop growing, I'm going to stop buying more trucks and I stop buying more equipment. And I'm going to raise prices over the course of three years from 65 or $70 an hour to $100 per hour. And you can only do that because you're bumping up against capacity. And the reason you're bumping up against capacity because you don't need a ton of work in order to be able to do that. You've already filled a lot of it with recurring. And the models I see in Augusta have 60, 70, 80% of their revenue or more coming from recurring work. These are the one have been able to just max profit, the profit mode, keep raising prices, pick capacity, raise prices, capacity, raise prices. And they're extremely profitable. And, and when I see locations that are above 800,000 kind of in like 900,000 million, 1.2, 1.3, I have yet to see any location is super profitable and the owner is not involved. And so like my Bellingham shop, not super profitable this year. It's in that middle zone of 800,000 to 1.5. It was very profitable at 1.5, 1.6, 1.7. Those were the years when I was making between 250 and $300,000 in distributions.

And so, and I would, I would still say I was showing up there once to twice a week. Now I'm not there. I, I, I, I want to be more absentee. The 800,000 model will work well. It's a full time general manager that is managing the crew that is going to be able to keep raising prices and not always be in this like.

Fire fest of like just trying to get more leads all the time. And so I'm a big fan of this. This is what I'm going to be teaching to new owners, especially if they're starting from zero, is get to 450 to 500,000 and just raise prices. We, the reason I'm saying this is because I think we have fell into the trap that we could always keep growing more revenue. I don't see that being more profitable. I just don't. I have no evidence to think that you growing to the point where you need multiple general managers you need admin, you need salespeople. I don't see those locations making any more profit than locations inside of Augusta nation that are 650 to 800,000 revenue. They have three to four trucks, maybe five, same number of employees and they're just dialed in. The pricing is high. They don't, they don't really care if they close jobs because they're booked out far and they're at capacity all the time. And so this is definitely something I'm going to be talking a lot about because I don't see any big locations without the owner being there being super profitable. And I saw it firsthand at my location when I stepped back 100%. It's like, okay, I can't step in now. Like the location is large, it needs to come back to 800,000. And I know at that size it can be 20 to 25% profitable and take easily the distributions more than what it's currently making. And I know that because that's what the Bellingham, my second location has done. They were doing around 500,000 over the past two years, have optimized, May probably 650, maybe 700,000 this year and then probably a couple years was optimized for 800,000. And that extra hundred thousand that they'll make over the next couple of years is going to be profit because they're just going to keep raising prices when they hit capacity.

So I'm a big fan of this. This is going to be what I'm training going forward. I've looked at enough of the data and then after seeing it, my locations firsthand in just such dramatic fashion over the past couple years of how hard it is to replace general managers at 1.6, 1.7, 1.8, as well as when I am not there at all, what a general manager can handle without me having to step in. I'm very confident that that 600 to 800,000 world is a good spot for a general manager. It's easier to get a general manager from out the field, have them as a working GM and then move them in a full time GM position as they optimize for profit.

I just see the best locations in terms of profit. Like if I just look at the bottom line numbers and I look at all the best locations inside of Augusta Nation and then I look at the revenue, they're all in that range, including my location. My location that was, did less revenue, made way more profit for me in distributions than the larger one. And so I'm, I'm, I'M very bullish on this. I think a lot of us need to have a cap. We need have a finish line instead of a. The problem is we always fall into this trap of like, well, I'll stay in profit mode and then I'll go back into growth mode. And then I'll say in profit mode, I'll go back and like, why? Like, I don't believe going past this 800,000 level warrants more profitability. And if you, and if you have any inclination to sell and have plenty of profits to have as a valuation or have a general manager run it without you being there, I think that level is much more equipped at 600,000, 800,000. And once you hit there, you stop marketing. Like, you don't need the ads. Like, we went from spending almost $5,000 a month at the Bellingham shop last month to turning it off to zero as soon as you said, okay, we're just gonna like, sell some of the trucks, cut the employee staff down to 6 to 8, and we're going to stay there. Now they're booked out six weeks. The marketing spend alone, if you take the $5,000 a month, let's just say you're 15% profitable or 20% profitable on $5,000, you need to generate at least an additional 30 or so thousand dollars in revenue just to break even on spending the ad spend. Let alone the fact that Once you add $30,000 of revenue, your command center builds more. Because now you, all these leads calling, you have a whole bunch of new customers. So like, more yellow slips, more callbacks, and you have your, your general manager doing more sales related activity and overhead stuff instead of doing more work. And then they start to feel like they're in this treadmill and they get burnt out. So anyways, that was my realization after running a lot of numbers, looking at all the locations across Augusta and realizing we need to have a finish line. And in my opinion, unless you're going to be the owner operator, $100,000 is the finish line. I just believe that.

And I would be thrilled if someone proved me wrong, like, and say, hey, I, I'm not there. It runs at 1.5 to $2 million. I'm sorry, 1.2, 1.3 million. I'm not there. One person can run it and it's easy to replace that person. I just haven't seen it. And so I think that we need to have finish lines in order to know what is the goal, what is the target, and what am I, when am I stopping? Because I feel like right now it's always just a grow. We should grow, grow, grow. It's like, no, we shouldn't, we shouldn't actually, we should actually not do that. So anyways, some of my thoughts is the new fourth model that we will be teaching at training and for new locations. I will be preaching the gospel of grow to 500,000 as fast as possible and then stop getting trucks and equipment, stop getting employees and optimize for profit. And I believe over the course of three years, you can get from 500,000 to 7:50. It's a 50% increase in price. Like that's crazy. That's literally going from 65, 65 an hour in growth mode to over the course of three years getting that to a hundred dollars per hour, you will literally go from 500,000 to 750 and you'll be extremely profitable.

So. All right, that was my stump speech for the day. Hope that was helpful. Happy to answer any questions. All right, let's jump in. Joel from Lafayette.

With the mowing season winding down, do you think a door hanger to advertise mowing for next year would be would work? I'm thinking about a special door hanger geared towards convincing people to switch companies like mobile phone providers do now that their annual mowing contract may be over or any problems associated with the current company are still top of mind. Like switch to us next year and lock in this year's prices or switching net a free aeration. Or maybe it could be added to the on the end of the winter service store here to mimic the one click email text like decline winter services, but sign me up for moe next spring. Yeah, so I actually think this is when selling winter services is going to be the move.

Because most of the time customers don't think about solving a problem until they have pain. And so if you're trying to sell mowing services and the mowing service are declining in their demand, I don't think you're going to get as much of a response as selling them winter services and knowing that when they finish winter services, you move them right into mowing. So I would really focus on that. Now. Is that winter service customer already going to have a provider? Potentially, yes. But you get in front of them, you pitch this new thing, better pricing. They're like, I'm sick and tired of paying $300 a month on my flat monthly billing to this company that has shown up once a month and I have sticks all over my property. I'd rather have these guys I pay them 75 bucks a visit. Let's go like so I would probably just play into their current pain and their current pain is probably going to be the fact that there's branches down and their their current service hasn't shown up for like three or four weeks.

I'm watching one. Oh this Kyle Tarvin. I'm watching one of the Mike minutes masterminds from 2000. Oh mercy 2022 when you went over P Ls for your four corporate locations. I'd really love to see more regular pls from the corporate locations. I know it's tough because you are profit sharing performance data of GMs but it's always helpful interesting to see how changes made in the business create profit or take it away. Yeah. So I will probably share towards like I want to share this year and I want to share next year because what I just talked about is going to be demonstrated really really clearly. And I have one location that is in profit mode and is there and then this year we have to be in growth mode for the Bellingham shop for the time in ages because of what happened last year. And so you can just see like the profit margins like on the 600,000, 800,000 business is fantastic and I literally have never been to the shop so I like that size. And in terms of sharing those I might probably do at the end of this year and then end of next year. And I think you'll be able to see really really clearly what happens when we when we take the location from you know, above a million to right at the 800,000 level. Like they already raised their prices from on projects to $100 an hour on because they're booked out so far. So it's like do less work at a higher price and make more money. Good idea.

Mr. Anonymous, what was your revenue and profit each year? The first five years in business? Also what year did you start taking a salary from the business? Starting to get really discouraged about fighting to break even every year and not taking any salary. So this is a result usually of of state trying to stay in growth mode. But you definitely have a coaching goal. But I typically see this being the the stuck in growth mode situation. However my, my first five years. Let me try to remember. Okay, so my very first year when I was part time at Augusta it was 30,000. Then I went full time it was 200,000, then it was 470 and then it was. This is where it gets a little hairy. Sorry, I think it was 790 or 871 of those two and then we broke a million.

And so in those first five years and growing to that size, I didn't take any money of the business like, like a probably, you know, probably 10 grand to like cover stuff that I would charge my personal stuff but like basically took nothing out.

Because like growing takes that growth sucks cash. It just does. And so it was not until I stopped growing at 1.5 and okay, we're going to make this thing profitable and is to pay for performance is when we started making good profits. So if I would have been needing to take a salary I would have recommended to myself at 470 to stop growing and just take the three or four trucks that we had at the time and just dial the profit mode and raise prices. Because I didn't raise prices. We were charging $60 an hour from the moment I started or sorry I should say my second year of business all the way until like seventh year of business we were charging 60 bucks an hour. I should just stopped at 470 and raised that price to where it's currently at. I probably would have made way more money in years 3, 4 and 5. Mr. Anonymous, is there a benefit to you as a franchisor to own many corporate locations? If yes, do you plan to start, start more again?

Is there a benefit? There's not a huge benefit. The biggest benefit is I'm able to test stuff. And so like even I had meeting with my general managers last night, that was our first time there, had one.

And like we're trying to test stuff for general managers. Like I said, hey, when we get to 500 locations, I think at least 100 of them we ran by general managers. We need to have support for that. We need to have tracks and training for the GMs and we need to prove these things that we're talking about in terms of the 800,000 et cetera. And so that's the main benefit is it's my testing ground for, for ads for a lot of this stuff. So they're doing the winter services track for winter and same thing. We got to test this. We want to get above 50% to stay on winter services. Then we want to sell hard winter services throughout the year, the winter, et cetera. Does the valuation change the franchise? If 10% or 20% of locations are corporate, yeah, you make more revenue as a franchisor if you have corporate locations.

And there's like pros and cons, sometimes you get distracted with your corporate locations because they're operationally heavy. And then you the franchisees kind of.

Suffer from that. So like for example, Anytime Fitness used to have like 100 locations. Corporately they've sold off almost all of them now. And we've seen like a direct impact on like just better support for us because they aren't trying to run 100 locations in addition to run a franchise. But then we, we like to. I like that they have a few so they can test some stuff out before they roll it out to us. Or the margins of owning a location too small compared to being the actual franchise order to spend time on it. Or the margin of owning a located too small. Yeah, like as soon as I own a location I need it to be doing at least 450 to like basically break even. Like to be profitable. I should say like usually break even is around 20 to $23,000 a month. If I am out of the business, there's a general manager. Anything above that we can make sense of that you can multiply. Like that's like 250, 300,000. That's why I've got to get into 450 at least like 500,000 to make any money. If assuming again I'm not the, I'm not involved the operations. So the margins are just not there until you get to 500,000. If I was to do more locations, which I'll eventually probably do down the road, I would open up and immediately scaling them to 500,000 would be like I would massively incentivize growth to 500,000. Let's just call it $40,000 a month in revenue. And then it would be no more stuff like no more growing, like no more ads, no more employees, no more trucks. I want high margins. Everyone making tons of money on paper performance, that's the model I would like. And then just optimize it and optimize and optimize until 7 to 800,000 revenue. And if it got above 800,000 like well I gotta get more trucks. Just raise prices. That's what I would be doing.

If I, if and when I do have other locations. The reason I started before is mostly from tax perspective. So eventually that'll happen down the road probably. But career mindset because people can only work in the field so long plus other team members want room for growth. Oh, sorry, let me flip this. Do you think if we pushed for the 1.5 to 2 million mark you would actually be able to retain long term talent? I believe a lot of GMs really want to be out of the field and Feel like an operator. Yeah. So I really believe at that 7,800,000 level it becomes a full time GM position. Right. So like full time GM is 800,000. And I have seen a lot of the ones that go way way larger than that. They have to start working with other like management positions, admin, etc.

The owners are still involved and so it doesn't really feel like you're a general manager. It doesn't feel like you're running it yourself. And I talked to managers last night and they like we, we don't want, we just want.

Like we, we have better work life balance, we can take vacations.

Whereas like it's just more difficult if a general manager without an owner is running a larger location. I've just kind of seen that across the board. That's why I'm saying that career mindset because people can only work in the field so long plus other team members want room for growth. I do believe that that general manager position becomes full time around that 7, 800,000 level. Like my one general manager they will do like again like 650. He's occasionally in the field so there's like a big project. He'll hop on the project. If he, if there's a couple jobs in the day that the crew can get to, he'll knock him out. But you can't do those couple things once you start growing too much further. And that location has been in profit mode. So they only have five employees, four or five employees.

And that general manager just made a five figure profit sharing check and they've been profitable every quarter. So they like that. Once you reach 800k, does it make sense to break a territory in half? Our territories have lots of people and can easily hold a large location. Would it make Sense to have two small areas with two GMs?

Debatable. I would only do this if you were being flooded with leads. The reason I say this Connor, is because if you're actually at capacity at 800000 and you just are being bombarded with leads, you could just raise your prices to the point where like say for example, you're a hundred thousand, a hundred dollars an hour, you're like man, the market just won't take anymore. If you're at capacity and you're still getting leads and you're getting pushed to grow, you're, you're, you're going to make more money in my opinion going from $100 an hour to 110 than if you start a second location. Because that second location, you have now a second overhead position, your general manager. You have a second shop space. You have all this other stuff being added. Once you split the location, you could take that location being super profitable. And all of a sudden, because you split the leads in half, you don't have. You're not at capacity. You actually need to start marketing to generate to keep it back at 800,000. So I'm not against this. I think there's definitely like, I genuinely thought about this at Bellingham Shop. It's like, man, if we just take 1.5, split it in half, and we do like a north and a south, maybe that would work. And then I was like, oh, I have to get another office space. Like, why not just take this one, let it hit capacity and then raise prices because like extra $10 of. Of increase in price from $100 an hour to $110 is like so profitable. At 800,000, that's literally gonna make you an extra $80,000 in profit. If you're $800,000 and you raise prices by 10%, you're literally gonna make $80,000 profit. And I don't see that second location making that right off the rip. What ends up happening. You split your lead quite at capacity because they just got their lead source split in half potentially. Right. So I have, you know, it be case dependent and I'm not opposed to that, but I really like general manager to have their own space. When I see them start sharing, it can get a little like, they don't have the ownership. I've noticed, but I'm not opposed to it. I think it could definitely work under certain circumstances or certain general managers. It'd definitely be something that was like, hey, let's divide this that way. Like, we still have, you know, a core of six to eight people that they can each manage. They feel more in control. They don't feel like they're losing their marbles. Like, I see far less people, to answer your question, Connor, I see far less general managers quitting because they're like, I want the next level of my career. I see a lot more being burnt out, being worn out, tired of like not making any profit sharing. I see a lot more of that happening. So better outs than for. Than for P4P and more profits. Yeah, like, you definitely be more dense in terms of routes. I would say, like, if you're already within a five mile radius, going down a 2.5.5, if you already have tons, like 800,000 revenue, you're pretty dense already. So you're not driving super far anyways, besides, like, five attempts to get to a route, for example. But yes, you're right. They would definitely be good. I think I would probably do Connor. If you're like, hey, I don't want to start, like, a cult territory or I'm confined by space, like, I'm locked in kind of thing, and you're like, I would I do this if I was confined in space and I want to do some career development? I would. Like, one of my guys is going to lose them unless they became a general manager. And I couldn't, like, just do one next door or, like, I didn't want to. That's when I would probably. Okay, let's go. Think about splitting this. I would have to have a lot of confidence that if I split the $800,000 location, that's going to be very, very profitable, by the way. It's going to be very profitable. I'd be very confident that those two locations could go from 400,000 to about 600,000 very quickly. I need a lot of confidence there because I genuinely believe if you split the location that's doing 800,000 into 2, 400,000, you will make the same amount of profit until both those two locations are at 600,000. Like, that would be my guess. And so then you could probably have a year or two of lower profits just to get to that level. So it'd just be something to think about. I think in every situation, it can eventually make sense.

I like to hear you talk when you're learning. It's encouraging. Cool. All right, everyone, have a fantastic Friday, awesome weekend, and we'll see you on Monday. Take care.