Podcast Title: Digital Social Hour
Episode: CEO Reveals: Why Smart Leaders Are Often The Problem | Tommy Mello DSH #893
Host: Sean Kelly
Guest: Tommy Mello
Release Date: November 16, 2024
Introduction
In episode #893 of Digital Social Hour, host Sean Kelly sits down with Tommy Mello, a successful CEO who helms a thriving garage door business. The conversation delves deep into the intricacies of leadership, business growth, personal branding, and the often-overlooked challenges that smart leaders face. Throughout the episode, Tommy shares invaluable insights drawn from his two-decade-long entrepreneurial journey, emphasizing the importance of continuous learning, strategic hiring, and maintaining a healthy work-life balance.
Leadership and Hiring Strategies
Tommy Mello underscores the critical role of hiring the right people in fostering business growth. He emphasizes the necessity of surrounding oneself with individuals who can push boundaries and introduce fresh perspectives.
"If you're micromanaging somebody at one of your direct reports, that means you're the smartest one in the room. That's a problem." [04:05]
He advocates for leaders to act as facilitators rather than the sole decision-makers, encouraging their teams to bring innovative solutions and take ownership. Tommy highlights the importance of investing in oneself to attract top-tier talent, especially at the C-suite and VP levels. By doing so, leaders ensure that their teams drive growth rather than hinder it.
"You should be investing in yourself and find the best you." [04:03]
Business Growth and Expansion
Tommy shares his strategic approach to scaling his business, which primarily revolves around acquisitions and organic growth. With over 700 employees and imminent acquisitions projected to bring in approximately $270 million this year, his company exemplifies robust expansion.
"The bigger the business gets, the easier it runs. I don't have to worry about guys showing up sober. Everything is marketing." [06:02]
He discusses the challenges of maintaining uniformity across multiple markets and how he overcomes them by deploying his top performers to prove the efficacy of standardized processes.
"We've got one call center. Any one of our techs could go to any market... We've taken the top 10% of our guys, sent them to every market to prove that it's possible." [01:49]
Tommy also touches upon the potential for diversification within the home service industry, hinting at ventures into hot water heaters, water purification, and more.
Personal Branding and Employee Management
A significant portion of the conversation revolves around the importance of personal branding. Tommy credits his personal brand as a cornerstone of his business success, allowing him to attract not just customers but also top-tier employees.
"The personal brand has been what built the real estate." [18:16]
He contrasts his approach with that of other coaches like Grant Cardone and Brandon Dawson, emphasizing genuine value creation over mere sales tactics.
"I believe do great things for people and, you know, they'll... it'll come back full circle." [17:56]
Tommy is passionate about fostering a company culture that prioritizes employee well-being and growth. He implements scorecards and KPIs to track performance, ensuring transparency and continuous improvement.
"A scorecard lets them know how they're doing. You could study the best and then you could share it with everybody because no one loses if everybody else does their job better." [07:36]
He also shares his philosophy on managing talent, noting that not all high-performing sales individuals are suited for management roles.
"Not everybody in sales is meant for management. I learned that the hard way about 10 years ago." [07:43]
Financial Management and Investment
Tommy provides a candid look into his financial strategies, highlighting the shift from revenue-centric to profit-focused metrics.
"I learned revenues for vanity profits for sanity. So we're at 25% to the bottom line. That's what I'm prouder about." [01:30]
He discusses the significance of compound interest and disciplined financial management, advocating for businesses and individuals to prioritize saving and wise investments over frivolous expenditures.
"Einstein said the largest thing in the universe is compound interest. When you could actually start saving and using it, putting it in wise investments and starting a good business, it starts returning larger and larger amounts." [24:45]
Tommy also touches on the challenges within the solar industry, particularly the high dealer fees and the impact of fluctuating interest rates.
"It's a tough Dichotomy, because you want to be loyal to those that were there early, but at the same time, you want to grow fast." [04:20]
Spirituality and Personal Values
Tommy intertwines his business philosophy with his spiritual beliefs, attributing much of his resilience and success to his faith.
"I believe in Jesus. He’s my Lord and Savior." [31:33]
He recounts a profound personal experience where a prayer was seemingly answered, reinforcing his belief in a higher power guiding his journey.
"I made a deal with Jesus when my dad was dying in Covid... And the Lord Jesus did." [32:22]
Tommy emphasizes the importance of humility and integrity, striving to be a positive influence in the lives of his employees and community.
"I want to see them own houses with clean credit and go on their dream vacations. And I want them to dream bigger." [30:09]
Overcoming Challenges
Throughout the episode, Tommy reflects on the hurdles he's faced, both professionally and personally. From navigating business debts and partnerships to overcoming personal struggles with alcohol, he showcases a journey marked by perseverance and continuous learning.
"We made payroll. Or how the police were involved so many times because of drugs or alcohol or car accidents..." [20:16]
He shares the pivotal moments that transformed his business trajectory, such as adopting the right software, finding the right mentor, and implementing effective standard operating procedures.
"It was a combination. It was like a magic potion of things... And next thing you know, we're a decent size today." [26:03]
Tommy also addresses societal issues, expressing his views on government assistance programs and the importance of self-reliance.
"I do believe this is the best country there's ever been. And I've got a guy like me, no money, growing up from Michigan could come in and do this good." [21:15]
Conclusion
In this insightful episode of Digital Social Hour, Tommy Mello offers a comprehensive look into the mind of a CEO who not only drives substantial business growth but also prioritizes personal development and employee well-being. His emphasis on continuous learning, strategic hiring, disciplined financial management, and unwavering faith paints a picture of a leader dedicated to creating a legacy of success and positive impact. Listeners are left with valuable lessons on balancing ambition with humility, the power of personal branding, and the importance of investing in both oneself and one’s team.
Tommy concludes by inviting listeners to connect with him through his website and book, encouraging aspiring entrepreneurs to learn from his experiences and apply his strategies to their own ventures.
"If you go to tommymello.com and it has... I'm an open book, man." [47:02]
Notable Quotes:
- "If you're micromanaging somebody at one of your direct reports, that means you're the smartest one in the room. That's a problem." [04:05]
- "I learned revenues for vanity profits for sanity. So we're at 25% to the bottom line. That's what I'm prouder about." [01:30]
- "I believe in Jesus. He’s my Lord and Savior." [31:33]
- "Einstein said the largest thing in the universe is compound interest." [24:45]
- "If you can't save money at $50,000 a year, you're not going to save money at $200,000 a year." [14:15]
For more insights and resources, visit Tommy Mello’s official website at tommymello.com and explore his book, Elevate: Build a Business for Everybody Wins.