Making It with Jon Davids: "My College Side Hustle Now Makes $700M/year" | Brian Scudamore, 1-800-GOT-JUNK

Host: John Davids
Guest: Brian Scudamore, Founder of 1-800-GOT-JUNK, Dragon on Dragon's Den (Canada’s Shark Tank), Author of WTF. Willing to How Failure Can Be Your Key to Success
Release Date: March 28, 2025

Introduction

In this compelling episode of "Making It with Jon Davids," host John Davids sits down with Brian Scudamore, the visionary entrepreneur behind the wildly successful 1-800-GOT-JUNK. Brian shares his remarkable journey from a college side hustle to building a $700 million-a-year empire. Throughout the conversation, listeners gain invaluable insights into perseverance, strategic growth, and the power of franchising.

Early Beginnings: From McDonald's Drive-Thru to Entrepreneurial Spark

Brian opens up about his humble beginnings in Vancouver 35 years ago. While sitting in a McDonald's drive-thru, he noticed a beat-up pickup truck loaded with junk and envisioned a business opportunity. Without completing high school, Brian decided to take action:

[01:37] Brian Scudamore: "I bought a truck for 700 bucks, drove down alleys and laneways. I had a business that paid for itself in two weeks, then paid for university, but then ironically inspired me to drop out of college because I was learning more running a business than studying books."

Brian’s entrepreneurial spirit was evident from a young age, inspired by his grandparents' army surplus store and various summer jobs. His first significant venture involved running a dorm room store selling snacks, showcasing his innate business acumen.

Building 1-800-GOT-JUNK: Vision and Rapid Action

John highlights Brian's rapid transition from idea to execution, questioning the speed at which Brian acted upon his initial inspiration.

[05:10] Brian Scudamore: "Starting something quickly, before anyone has a realization it's a bad idea... If you can start a business with low cash so that if, God forbid, you lose everything, you're not really losing that much, you can start again."

Brian emphasizes the importance of momentum and taking swift action to overcome doubts and external skepticism. This approach allowed him to establish 1-800-GOT-JUNK swiftly, despite initial modest earnings.

Overcoming Challenges: Cash Flow and Creative Problem-Solving

Scaling a business comes with its set of hurdles. Brian recounts a critical moment when his company owed $36,000 to AT&T and faced disconnection:

[31:27] Brian Scudamore: "We negotiated 36 payments of $1,000 each. So 36 post-dated checks for 36 months, no interest. They gave me a no-interest loan at AT&T."

This anecdote underscores Brian’s ability to creatively navigate financial crises, ensuring the continuity of his business operations.

The Power of Franchising: Scaling with Vision and Culture

A significant portion of the discussion delves into franchising—a cornerstone of 1-800-GOT-JUNK’s expansion strategy. Brian explains how franchising allowed rapid growth while maintaining brand consistency:

[16:21] Brian Scudamore: "Ray Kroc chose franchising because he wanted people to have skin in the game. I wanted to do the same with 1-800-GOT-JUNK... We had a rigorous interview process to screen people out."

Franchising not only fueled expansion but also cultivated a community of like-minded entrepreneurs dedicated to the brand’s vision. This model proved instrumental in transforming a regional business into a national powerhouse.

Leadership and Team Dynamics: Building a Strong Culture

Brian candidly discusses a pivotal moment five years into the business when he had to fire his entire team of 11 employees:

[21:53] Brian Scudamore: "I said, something's wrong. I'm surrounded by people that don't see this as more than just a job... I rebuilt the business by deciding I was never going to compromise on people anymore."

This bold decision highlights the importance of having the right team and fostering a positive company culture. Brian’s focus on people-first leadership became a fundamental principle for his subsequent ventures.

Insights from Dragon's Den: Investing and Evaluating Entrepreneurs

As a Dragon on Dragon's Den, Brian shares his observations on evaluating new entrepreneurs:

[24:22] Brian Scudamore: "What surprised me was how much passion is out there around Canadian entrepreneurship... Everyone had a great story, everyone's all in."

He emphasizes the significance of entrepreneur readiness, including leadership capability, team strength, and effective use of investment. Brian advises budding entrepreneurs to ensure they are prepared for the demands of scaling before seeking external funding.

Expanding the Empire: New Ventures and Strategic Acquisitions

Beyond 1-800-GOT-JUNK, Brian discusses his expansion into other franchises like Wow! One Day Painting and Shack Shine. These ventures complement the original business by offering specialized home services:

[44:33] Brian Scudamore: "Wow! One Day Painting transforms homes in a day with high-quality service, and Shack Shine specializes in window cleaning and power washing."

These acquisitions reflect Brian’s strategic approach to market fragmentation and the pursuit of recurring revenue models. His goal is to build a comprehensive home services holding company, leveraging proven systems and exceptional customer service.

Key Takeaways: Persistence, Innovation, and Building Your Own Luck

Brian’s journey is a testament to the power of persistence and innovative thinking. He consistently turns challenges into opportunities, demonstrating that success is often a result of relentless effort and strategic problem-solving.

[44:03] Brian Scudamore: "It's all about people. I need to find the right people, and I need to treat them right."

The episode concludes with Brian advocating for staying the course, building momentum, and leveraging the right team to achieve long-term success.

Conclusion

Brian Scudamore’s story, as shared on "Making It with Jon Davids," offers a rich blueprint for entrepreneurs aiming to scale their businesses. From starting with a single truck to franchising a nationwide brand, Brian illustrates the importance of vision, swift action, resilient leadership, and the strategic use of franchising. His insights into team dynamics and entrepreneurial readiness provide valuable lessons for anyone looking to make their mark in the business world.

Notable Quotes:

• Brian Scudamore [01:37]: "I bought a truck for 700 bucks, drove down alleys and laneways. I had a business that paid for itself in two weeks, then paid for university, but then ironically inspired me to drop out of college because I was learning more running a business than studying books."

• Brian Scudamore [05:10]: "Starting something quickly, before anyone has a realization it's a bad idea... If you can start a business with low cash so that if, God forbid, you lose everything, you're not really losing that much, you can start again."

• Brian Scudamore [16:21]: "Ray Kroc chose franchising because he wanted people to have skin in the game. I wanted to do the same with 1-800-GOT-JUNK... We had a rigorous interview process to screen people out."

• Brian Scudamore [21:53]: "I said, something's wrong. I'm surrounded by people that don't see this as more than just a job... I rebuilt the business by deciding I was never going to compromise on people anymore."

• Brian Scudamore [24:22]: "What surprised me was how much passion is out there around Canadian entrepreneurship... Everyone had a great story, everyone's all in."

• Brian Scudamore [44:03]: "It's all about people. I need to find the right people, and I need to treat them right."

Listen to the full episode on Apple Podcasts, Spotify, or your preferred podcast platform for an in-depth exploration of Brian Scudamore’s entrepreneurial journey and the strategies behind his monumental success.