What Interest Rates HIKE Mean for Business! (Mike Andes LIVE SHOW)

Ladies and gentlemen, boys and girls, it's time. Another live show today we're gonna be talking about is it an opportunity or should we be worried about going into a recession? I've been talking about this for the past nine to 10 months, actually, since last October, so almost a year. I've been talking about what was gonna happen in the stock market, the real estate market, you know, as interest rates would rise. And what I want to talk about today specifically, though, is how it's going to affect your business. Okay? Now, if you are calling in, I am going to be taking phone calls as well as Q and A. So if you would like to call into the live show, just call the number below 361-733-3333. Call that number. And as always, the queue fills up and then we got to cancel at the end. So if you want to call, call in early, because that's the only way I can guarantee I'm going to be able to take your call and get you in for your questions. So as there are questions coming in and people are joining, I want to talk a little bit about today. Obviously, the Fed came out, they're raising interest rates by 0.75%. And it's expected that it's going to continue for the next several months, continuing to rise to raise interest rates. What does that mean for your business, like? Well, that doesn't really matter. It's like affecting mortgages and things like that. Well, first and.

Foremost to home improvement businesses, when people feel like they have a lot of money in their house and that their house is going up in value, they're much more inclined to spend money on home improvement. They're much more inclined to maintain, repair and improve that property. So it is in the best interest of every home improvement contractor that the real estate market does well and that people have money to spend. And so as we see interest rates go up and we see housing as it's become extremely expensive, both because of asset prices went up during 2020, 2021, and then now in 2022, not only are asset prices extremely high in terms of housing, but now interest rates are very high. So it's making it harder and harder to buy more real estate. It's harder and harder, more expensive. Their monthly mortgages are extremely high. And so at the bottom, the bottom line is we have to start thinking about how can we prepare our businesses for a time when we have high interest rates and people don't have as much money in their pocket and they don't have the value of their house going up every single month. And they can't just take equity out and keep spending money. This is why I've been talking so much for years about having recurring work. Because people are more likely in a recession to maintain their property versus improve and add to and construct new. And so I think it's important that every single contractor, home improvement, whether you are in cleaning, fencing, lawn care, landscaping, that you figure out a way to create recurring revenue where you maintain these properties. How else can you make sure that you are protected against this recession that is bound to happen now it's like super obvious. I was talking about it this a year ago at the peak, go back a year, October at the very peak. I'm talking like, look, this is going to happen. And.

You know, sure enough, here we are, everyone's going to talk about it. It's going to keep happening over the next few months into 2023. It's going to get worse and worse and worse. We're going to see inflation come down and in my opinion, we're going to actually see when the, when the stock market, when the big companies start coming out with massive layoffs and when they come out with bad earnings, the stock market's going to continue to fall as it did today. It already has like by 40, 50% in a lot of stocks, massive real estate. Now it's coming down in some markets, already down massively. And when this starts affecting unemployment rates, just see things switch. It's going to be very, very interesting to see what happens in 2023 as this recession starts to take place. So what can you do in your business? Number one, make sure you have recurring work. Number two is have customers that are insulated from this type of economy. These are customers that are less price sensitive, they're okay with price increases as well as they hired you because of your value and not because of your price. All right, these are the customers that have two houses. These are the customers that have million dollar houses. These are the customers that are not going to cancel when you need to raise prices by $5 to, to account for the cost of inflation and rising wages and fuel. These are the customers you want to have. And so whether you are currently looking to get into business or you are trying to grow your business, I look at this as a massive opportunity. This is going to completely clean the clock of this industry. I've been talking about this for many years and I thought 2020 was going to be the year when this happened, when all of the B players get wiped out in the industry. And it wasn't in 2020 because the government stepped in with so much capital that people actually started starting businesses more because there's such an influx of capital as people got laid off or, or got fired from their job. They got a ton of cash to go start a business on the side and guess what? They did. They started home improvement businesses. Though all the B players are gonna get wiped out over the next 12 to 24 months. I am, I am. I've been talking about this since the very first conference, Landscape Summit, by the way. Everyone just sign up for Landscape Summit, go to mikeandys.com summit. We have one coming up here in January. It's gonna be a phenomenal event. And I was talking about what would be four or five years ago when we had our first one and said look, we all need to prepare ourselves for the next recession. And we are living, we are going into that moment right now. And this one's not going to be fast. This is not going to be a two, three week recession like we had in 2020. Whereas like a quick scare, this is going to be a 6 to 12 to 18 month downturn that is going to completely clean the clock of this industry. And this is, I've said, I've said this before. This winter is gonna be a record year for amount of landscaping companies, home improvement businesses going out of business and selling their company. And I'm putting my money where my mouth is because I think it's an opportunity and there's gonna be a real need. And so literally we're creating lawn care. Businessforsale.com should be up next month. And because I think there's gonna be, there's gonna be so many people trying to get out of this business because of wages inflation and fuel inflation. So all of that to say. We have a caller on the line. We have, I think it's from Kansas, area code 913. Welcome to the show. Thanks for coming on. Welcome to the Mike Andy show. You're on. Go ahead.

Hello, my name is aaron. I'm a 13 year old. So I'm going to do snow removal and I was wondering when the best time is to market for that.

Yeah, Typically like regardless of what service you're talking about, you want to be marketing when people start thinking about it. Right. So if you're in Kansas, you guys probably start getting snow in November sometimes or is it more December?

It's more December.

Yeah. So like probably throughout November you want to be talking about with existing customers and then marketing for that Service usually three to four weeks before the peak like season. So whether it be mowing, you're going to be looking three to four weeks before that season when it comes to snow plowing. Same, exact same things.

Cool. Thanks for. Thanks for coming on. You have a good one.

Thank you. Bye bye. All right, cool. First caller down. If you guys would have a question you would like to call in. The number is 361-733-3333. Go ahead and give that a call. As we get callers coming in on the queue, let's go ahead and see a question. Does the command center help with taxes? We actually just are rolling this out now. This will be the first winter when we do have a CPA in house to be able to help do all of the taxes for our franchisees. I show my employees, other companies with new trucks, mowers, trailers, et cetera, and tell them I am worried for these companies when business slows down in the coming years. Not to say that every business that has good equipment or nice trucks are going to go out of business. I don't necessarily believe that because like, for example, if I wasn't trying to franchise the business and grow and really try to increase impact, I would take the location that we've made, you know, has a couple hundred thousand dollars in cash flow that can put in my pocket, and I would probably invest in nicer trucks and just make it a better business, more streamlined, better equipment, et cetera. And so there's definitely, when someone's been in business for 10, 15, 20 years, that's a real possibility that they're just investing back in the business and spending money back on their equipment, even though they know there's not as good great of a return for that money. But they're doing it just to shelter the tap from taxes. But what I get worried about is when there's new players entering the market, those are the people that I'd be pointing at and being like, I'm sorry, but if you're just getting started and you have a brand new F350 dually for your mowing service and you have three of them and you have one employee, you're not going to be able to make it through. And times get skinny. And when recession comes, I don't care how you set your business up, it's going to impact you. And the people that are gonna win in the next decade are the ones that can get through that skinny time. Because all the market share gets, as it contracts, it wipes out all the competition and Then as you go into a boom cycle which usually lasts 10 to 15 years, that's when people win the ones that were able to get through the bust cycle. So see here question.

Is it online this happen? Nope, it's in person. John McGuire, good to hear from you, Mike. Again, we had a good year this year. Mo crew was simple and profitable and landscape was smooth and profitable. A lot of our systems are in place and working. With the recession on the horizon, do you grow next year and add another mo crew or stay lean and profitable? We are going to make a nice profit this year and are scratching our heads on what to do with the money. Completely depends on your goals. If you are trying to grow, I really think next spring is gonna be an awesome time to do that because I truly believe there's gonna be a bloodbath this winter of people going out of business, people retiring, people sell companies, people letting all their customers go. We're already seeing it this year. So many of our franchisees having people in their market that are just walking away from jobs and we're getting calls. Our landscaper didn't call us back. And those are the best clients because they realize the value of having someone who picks up the phone and someone who actually shows up to do the, to do the work. And they, they are not as price sensitive because they realize that the person they just hired last this past spring for $20 a cut doesn't show up and doesn't even tell them they're not going to show up. So they're usually less price sensitive. They realize that a good value and a company that has everything together and good communication costs more and they're willing to pay it once they've lost a contractor and felt that pain. Hello. I just started my longer business and it is slow as it is. This does not sound too good. Okay, so you're saying it's slow right now. If you just started your business in the middle of season, don't expect there to be a ton of demand for your product. In our services, home improvement is spring rush. You got three to four months where you're going to find most of your customers. And then your goal is to be able to service them throughout the rest of the year, upsell them throughout the rest of the year. But the bulk of your new customers are going to come during the spring rush. You're going to have a little bit of a bump usually during the fall rush as the season kind of cools off. And so if you're in lawn care landscaping, it's Leaf cleanup, it's property cleanups, it's getting ready for snow if you're in those type of markets. But your go time in this industry, industry and most home improvement industries is going to be spring rush. So the game is how do you save up money and keep dry powder set aside for the spring rush to be able to spend money on marketing then and making sure that your website is actually ranking well on Google by the time the spring rush comes and people are searching for it on Google.

Any sneak peeks on future projects or current things you or the team are working on?

No.

Thank you. Do you how do you handle service taxes in Washington state? I'm not exactly sure what you mean by service taxes, but going back to this question real quick, I think this is a good one in terms of, you know, what should we be doing if you're wanting to grow the business going into a recession, I really think about being patient, setting side of cat, setting aside a cat setting cash aside for the opportunity next spring rush or when demand's going to be high, you're going to have competition low because so many people are going to go out of business this winter. Like, just mark my words, you're going to see Sony's lawn care businesses for sale from now until February of 2023. Just watch it. It's going to be insane because people have grown over the past two years. They got started during COVID they got their, their, you know, they got their unemployment, they got a stimulus check, they got an extra five or ten grand in their bank. So they went and started a business and it was good for a year, for two years, and then they're gonna fold up. So I'm seeing across the board, it's gonna happen in every single home improvement industry. Because the home improvement industries are so easy to get started. The barrier to entry is so low that that's the first business that people get started on. Because you can get started with a lawn care business for like a few thousand dollars. Just throw a weed whacker and a blower and a mower in your back of your truck when they start to disappear. There's opportunity. Here's the bigger opportunity. And I've waited 13 minutes into this episode, this podcast, this video to share this. Here's the bigger opportunity, not the one guy solo operations that are going out of business that are going to be the opportunity. The opportunity is in the companies that had 20, 30, 50, 100 employees and are scaling back massively because they can't find employees to work for them. I don't know if you guys caught it, but I was interviewing Jonathan Patosnik from City Turf, who, who's a partner in City Turf. And they used to use 10 million plus dollars in revenue down in Texas doing mowing and all the rest of it. And they have cut back substantially. You notice what he said? He said when they didn't have the laborers, they literally turned down and turned away and canceled thousands of customers. So think about the impact that you can have and the amount you can grow during that time when you can't find laborers, when you can't find workers, when people are going out of business because they can't stay up with inflation in terms of their pricing. When that happens, the opportunity is massive. When people are. Our bigger companies are starting to downsize, and I'm seeing this across the board. And they'll, they'll always have a good reason for it. It's not like, you know, they're doing a bad job. It's like what they'll usually do is consolidate services, but a lot of times they'll do is they'll choose the services they want to do that are higher margin and they'll cut everything else out. Well, guess what? Everything they just cut out now is customers that just got cut from a company. And you're able to get those customers that are least price sensitive. The customer just got cut from another service or they didn't, they stopped showing up. Is the least price sensitive because they realize the value of having someone who just answers the phone, communicates and actually does what they're going says, does what they said they're going to do. So.

Mike, all of my customers are too cheap. And I can't, I can't. Can't UPS upsell anything? I think this is, this comes down to value, right? Like really, what is the value proposition of your upsell? Is it just a matter of you wanting more money or is it a matter of like knocking the door and being okay? Mr. Jones, I noticed that your bushes are touching your siding. Mr. Jones, I noticed that your gutters are really overflowing or they're going to get filled up because the maple trees overneath the gut over the gutters while I clear those out. So come fall when the rains come, it's all cleared out. You got to think in terms of what is value for the customer. You, you just asking them for the sale without any sort of context is the least personable way of doing it. Staying in touch with them over and over throughout the year is also important. You can't just like show up when you need work and be like, hey, I'm trying to upsell you something. Like, you gotta be in touch with them throughout the whole year and constantly upselling them the services that are pertinent to that season. If there's no reason to do lawn mowing and pitching that up sale during winter, there's no reason to be doing leaf cleanup and pitching that service during spring. So you got to make sure that whatever you are trying to upsell is pertinent to them in terms of season and that actually they have the need. So the more customized you can make this, the better. The first thing you want to do is all your recurring customers that you have. Every single time you're on their property, you want to be asking yourself, what can I upsell them? Not what do I want to upsell them. What do they need? That could actually point out and be like, you need this service because of X, Y and Z. The more personalized you can make an upsell, the higher percentage of those customers are going to accept.

Hello, I am in school during the day. During those times I am super busy, but during the summer I am not. Do you think I should get more clients during the spring rush? It's really depending on if you're able to find someone else to help you out when you're in school in terms of doing the work for you. So you want to fill yourself with capacity when you are in school. So it might be say 15 or 20 customers and then just keep raising your prices, cutting out the bottom ones, raising your prices and new ones. Come on. So you can just optimize the amount of profit that you're making. And then I would try, if you're going to expand, try to go from like 20 to 50 really quickly so you can hire someone and they could be working out in the field while you're at school. That's a big step. But it's only possible if you raise your prices enough to account for that big jump in overhead. So that's why I would say maybe take one one summer, raise your prices, cut off all the. Really raise your prices substantially. So you might get 10 new customers, but you cut your bottom five to 10 customers because you raised your prices. Then the following season you're going to go from 20 customers to 50 by using that margin to market. And then you're going to take those 50 customers and be able to go hire someone that is able to do the work while you're still in school. And then that season you would really grow and expand. I can't even get my customers go weekly, let alone pay for spring or fall cleanups, aerations. This is definitely a limiting belief. I'll just be honest with you because it's a limiting belief. Slash, it could be that your customers, you're attracting the wrong customers for your mowing service. Right. So again, back to the customers that are most recession proof. They're the ones that constantly accept up sales. For example, the Bellingham shop the other day sent out what we call one click estimate email. We have it at Augusta Nation. We create these, these emails that they click one button and it sets them up for an estimate. And so sometimes these estimates are done over the phone or they can be done manually or done by the office. Sometimes they're in person. Like property cleanups, for example. So recently last week the Bellingham shop sent one out. They had like 10,000 people in the database, emails and contacts. And I want to say it was over a hundred because I know yesterday they sent out to one zip code and they got 50 in one day. So there's well over 100. I know I'm safe saying there was well over 100 estimates that came from that upsell for fall cleanups and so and property cleanups. This isn't even leaf cleanups yet. We want, what we're trying to do is get a cleanup on their property and then go into lease season and then be able to get them again on multiple cleanups. So again it's, it's time sensitive as well as we've stayed in touch with them throughout the entire year with these emails. So they know that hey, schedule is filling up. You always create scarcity in those emails. Schedules filling up. Make sure you get your X, Y and Z. Whatever that service that you're upselling is on the schedule. So you got to create the scarcity. You've got to have the right timing. You don't send an email on a day when it's raining. If you're trying to pitch some sort of project based job that requires good weather. Same thing when it goes to fall cleanups. Don't send it on a day when it's like beautiful and there's no wind. Send it on a day when it's rainy, extremely windy, and they're like, oh my goodness, the leaves are everywhere. I don't want to go have to rate these up. That's when you send. So when pain is high, demand increases and when demand increases, supply needs to step in. And that's where we come into play.

I'm charging too cheap and I don't know how to raise my prices. There's a whole bunch of videos I've made about raising your prices. Feel free to check those out. Do you use any Google AdWords or Facebook ads? And if so, do you have any recommendations on how to do it or any recommendations for a company that does it? I have some tutorials@landscapebusinesscourse.com but this morning's public video, everyone here should watch. Okay, I know it's a boring video. It's 15 minutes long. I know it won't get a lot of views. That video will get a top of like 3 to 5,000 views. It's not gonna get a lot. Okay? But that video is made for the people who ask this question every single time. Where should I spend my money? What's the best place to spend my money? Watch this morning's video. It'll walk you through exactly how to calculate each marketing platform, how much to spend on those platforms, and which one's gonna be the best performing in your market. You can compare HomeAdvisor, Google, Facebook, every do, mail, every sort of marketing platform you could think of is. You can, you can analyze those and compare them, contrast them using the video from this morning. I highly recommend that video. It has the picture of a guy mowing with a Google and a Facebook logo on it. Please, I beg of you, watch that video. Next caller coming in is from six one two. Thanks for calling in. You're on the show.

Oh, hey, what's up, Mike?

How's it going?

Good, man. I'm trying to watch you through my, my phone and the separate phone, so I heard the beat. But hey, I got a question for you. I've heard you say in video once or twice that you think that this winter will be like a bloodbath for lawn care companies. Do you think that means that people are going out of the business this winter or people will finish this winter, like their snow removal season and then like, go out of business starting in the spring, if that makes sense.

Yeah, great question. So my hypothesis on this is that in markets where there's not snow, we're going to see a mass exodus at the end of this year. They're going to finish out their calendar year, run their tax return, and they're done. Right? They're going to cancel their December 31st. They're going to cancel their LLC if they have snow. I think that's why we're going to see a bunch in February and March also cancel. Because before they have to start their blades up again for mowing. They're going to cancel then as well. So I think that a lot of people are going to sell and I think a lot of it is the chuck in a truck. They're going to sell out because the cast of, of fuel has completely ate into their margins. And then like I said, the big companies that are consolidating, cutting out services and just restricting the amount of employees they have because they can't find laborers. And so I think it's gonna be kind of two tiered there, there though. And so that's why I think it'll start in November and kind of end in March when there's gonna be so many people going up for sale or going out of business.

Gotcha. And you think that's labor related and the margin compression?

Yep, 100%. On the, on the solo operator level, it's going to be margin compression. And as you go into a recession, they've had the lower prices. Like they have the bottom tier of customers because they're more price sensitive and they're usually cheaper. And so those are going to be the most affected. So they're going to have the hardest time reactivating those customers come next spring when everyone is in recession mode. And then secondarily they're going to have. They've already had a tough year this year compared to last when everyone had money. And so they're already like negative about the industry right now. Like can't sell anybody, no one wants to buy, can't make any money in this industry. And then they're going to come into next spring and just be completely obliterated because no one will even buy their services because they currently have the lowest margin customers and the price sensitive customers. And then the big guys, you're 100% right. It's a labor. They can't find enough employees. And if you can't find enough employees and you have 50 employees, you know what you do? You cut back to 30 and you take the services that are most the highest margin and just cut everything else out.

Yeah, no, that, that totally makes sense. Just one more question. What do you think the biggest thing this interest rate hike is going to affect? I know obviously higher interest rates means it makes borrowing money more expensive. What do you think that means for the long landscape community?

Yeah. Well, the biggest thing is that your equity, the equity in the homes of customers is going to go down. So they're going to become much less inclined to spend money on additions because adding a deck, spending $15,000 on your deck might add 12 to $15,000 of value to your house if you're lucky. Usually it's less than. And so additions to a home typically don't have a whole lot of value add. And no one's going to be doing those when the value of their property is falling. Let alone if people who bought in 2021 are now upside down on their mortgage. That's going to put everyone through a loophole. And I don't necessarily think they're going to sell because they can't go buy something for with a lower interest rate than when they got last year. But there is a mental flip switch that flips inside of a customer's mind when they owe $500,000 on something that's now worth 350. And so that is going to be the big thing that customers will stop spending on additions, they'll stop spending money on those type of project based jobs. And furthermore, they are going to be more price sensitive. They're going to look for a second option. They're going to look for a third price quote. And, and then that, that just comes down to who's answering the phone first, who's getting the estimate out to them the fastest. Because these customers are begrudgingly going to be looking for a second and third quote. They know they need to, they know the price, you know costs are high, they know that we're in a recession. Everyone's now entering that time taught to squeeze the pen and pinch pennies. So they'll go, go, they'll go get a second and third quote begrudgingly, but they'll rationalize the fact that they chose you because you answered your phone, you got out to them quickly and they'll say, oh, like they were professionals. So I just went and hired them. And they'll do that just so they can check off the box of I got other quotes but they didn't get back to me. And they'll go with the first person that got the quote to them.

Yeah, and you're talking is that for landscaping and mowing as well?

Any service, like honestly, like even when it comes down to construction, I deal with handyman all the time with my like my real estate and stuff. Like whoever just gets me the bid first literally gets the job 90% of the time. And so even if I have to haggle them or bring them down a price a little bit or cut something out of the job, like they almost always get the job. And the reason is because I don't want to go to Other bids. And so that type of customer, the one who's less price sensitive like myself, is going to be the ones that people will do well on if they've been marketing to them having a good brand. And actually, the best way to get through a recession is over the past year or two, you've been raising prices to basically weed out all the people that are going to leave you anyways during a recession. And so that's who's going to be most impacted.

Awesome, man. Hey, I appreciate your time, Mike.

You got brother. Take care. All right, next caller is coming out of area code 215. It says Pennsylvania, I think. Welcome to the show. Thanks for coming on.

Hi. I watch your stuff all the time. Thank you so much.

My pleasure.

So my first question, it's not actually like about long line, but why do you put so much content out? Like, you spend a lot of time. I just like, what drives you to put so much stuff out for us?

Yeah, good question. I never had this one. So I think first and foremost it is a business decision. Anyone putting content on YouTube has business interest, right? So obviously I know that doing these live shows, like for example, I'm doing this one because I had a canceled call. So I was like, hey, I can fit this in. So I know that having a live call, for example, creates a lot more trust with the audience because if I'm everything's scripted and everything's recorded, they're not going to trust me as much. So I know doing a live show is really important. And creating content people like, when people come to become franchisees at Augusta Longcan, they already know everything about me. They know everyone who works for me. They know command center. They know everything, how it works because of the content. So it creates. We don't do like marketing and sales when it comes to the franchise. Same thing with all my products. Like, I'll mention them, but it's not like we have funnels or ads that we run against. It's just like people that know that the content is good, they understand that what I'm going to be talking about is going to be valuable and they buy into the product. So first and foremost, business decision. Secondly though, is I got started in lawn care and it allowed me to do what I've done so far in my career and I want to give other young guys the opportunity to do that. So all of my framework and decisions when it comes to the public content is, is this speaking to my 15, 16, 17, 18 and 19 year old self? Because I started August at 18 but before that I was weighing out should I go to medical school or should I go scale up the lawn care business side of things. And so I'm constantly thinking like, what did I not have back then, right? So literally landscapebusinesscourse.com was started because I typed in landscape business course into Google and I couldn't find anything that was helpful from real landscapers. Besides, outside of like schools where I already was, had been let down by that. I already didn't want that. So I think my biggest thing is first and foremost a business decision. Secondly, I want to help the guy that I was when I was eight, nine years ago and getting them started. And I think there's an absolute need in the home improvement industry to professionalize it, make it more profitable, treat the employees correctly. And there's just been no innovation when it comes to culture in this industry because all of that brain power has gone towards technology. And so everyone at Google and Facebook talks about culture and things like open book management and profit sharing and pay for performance and all of that stuff is very common in that world because all the brain powered money has gone that direction. I feel like there's a massive hole in opportunity in the home improvement industry and, and my goal is to professionalize it and make it where people can make good living. They can hire people and pay them $30 plus an hour. And they can do that because they have such a solid brand and a great professional image that customers are willing to pay for. And so that's why I look forward to recessions, is because I think it's gonna, it's gonna screen out the people that haven't been listening to the type of content I create and the people who have been, are gonna, are gonna really win and succeed.

Oh, that's awesome.

So one other question I have. So I'm 17 and my company I started two years ago and now we're up to like about 80 lawns per week.

Cool.

You know how like minors set up at the point where I'm gonna have to pay taxes and so I'm trying to do everything more legit. How do you like up a business account as a minor? Like do you know of any kids or how they deal with that?

Yeah. Are your parents willing to co sign for you?

Yeah.

Yeah. So like, you know they're gonna have to sign for it. I would probably make them a majority stake ownership to create an LLC. Now when do you turn 18?

Okay. Like 10 months.

Okay. It's still a while away. So I would do, I would do your LLC with them on there so that way it's really easy you can do online like really there's no issues and then same thing at like the bank and everything you can start the in the business's name and then that way when you turn 18 all you'll need to do is go into your your state site typically Secretary of State and change the ownership stake for to you and then your business license change you to the principal right so if you do those two things you basically on the back end can change all the equity back to you and then don't you don't change anything with the business lice or the the banking or anything like that because it's all in the business's name ins like keep all that stuff so you can set it up this year but then next year all you'll do is on the back end change the equity over back to you and take them off of it and there's no extra cost in that you'll just have to do a new business license which is usually.