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Chris
Are you afraid that private equity will ruin your trades business? Think again. We'll reveal how top pros like Dustin Van Orman and Ishmael Valdez turn private equity into a powerhouse. Scale into 500 million and beyond. Learn how to spot real opportunities and avoid the scammers in the best practice and coaching groups. Don't miss this insider's guide to winning with private equity in the trade. All right, welcome to another episode of Next Level Pros. Super excited. We have incredible guests in the studio today. It's a unique experience. All four of us have been involved in private equity or one way or the other in the trades. And so super excited. Got Mr. Ishmael Valdez and we got Dustin Van Norman here on the the show. Welcome to show boys.
Dustin Van Ormon
Thank you.
Chris
Excited to have you.
Ishmael Valdez
Thanks, guys.
Chris
Yeah, dude. Thanks for traveling up. It's been a good time. So let's get a quick brief synopsis. If you can give me like just the 62nd version of your story. I know you came from different backgrounds in the trades, if you can go into that.
Ishmael Valdez
My name is Ishmael Valdez. I've been in the trades for about 15 years. Just had a successful exit on a plumbing air conditioning company about four years ago. Grew probably the fastest air conditioning and plumbing business in the nation. It took us six years and four months to exit that business.
Chris
So what are we talking from zero to what? What were you doing in revenue? We did.
Ishmael Valdez
0. 0 to $108 million in revenue in, oh, in four months. All plumbing. We started with a track and then bolted on the plumbing side on it. We're about to get electric over.
Chris
You know, that's probably the closest to competing with us, Daryl. Is that right? Yeah, I mean, zero to 233 in four and a half years. Just got to give you some crap. No, that's sweet, man. In the. In the H Vac. And you said you were in plumbing as well?
Ishmael Valdez
Yes, sir.
Chris
Nice. That's awesome. So all three of the main trades going on with that question.
Daryl
Question for you real quick. When you're growing your business, did you build that to sell or no? What point did you see that as an exit?
Ishmael Valdez
I think in 2020, 2021, the noise started. Right? And when. When I say the noise started, we started hearing, hey, you know, I think San was one of the first private equities that came into our, our industry. And they bought a company out like in North California. And, you know, they were talking about some ridiculous multiples. And then champions went right after that service Champions Right by which is 15 minutes away from me. They were a 27 year old business, you know, was doing about $100 million at the time. And, and then we started hearing more and more and then, then I started getting approached, I'm sure just like you guys, through emails and calls and people showing up to my shop just saying, hey man, you know, you got something valuable here. And at the time I, you know, I thought they were kidding around. I was like, you guys know we're plumbers, right? Like you guys don't like we do plumbing, air conditioning and we're getting into electrical. Do you guys know that they're like. Yeah, we just, you know, we're really interested and at the time I think I had like 400 employees. Right. And that's when they started knocking on the door. And that's when I started educating myself because I was ignorant to, you know, I didn't even know what the term private equity was at the time.
Chris
So yeah, yeah, we actually had a little bit different of an experience. Like when we launched, we fully intended to sell. Yeah. And I mean we had, we had a career going up into that point that was like, you know, the hard knocks. I mean was this your first business that you launched?
Ishmael Valdez
Second business. Second. So home comfort was my first business. We did about 21 male in four years. And then I did next gen after that. Right after that.
Chris
Okay, awesome, awesome. Yeah, ours, ours was a little bit different. We ended up running a process with like to get private equity knocking on the doors. We were in a little bit, obviously different line of the trades with, you know, fully, fully solar and electric, but, but yeah, little, little bit different. Now you on the other hand, come from a little bit different background. You're more focused on the private equity side.
Dustin Van Ormon
Yeah, yeah, yeah.
Chris
So you can give us a little background there.
Dustin Van Ormon
Little background on myself first. Dustin Van Ormon. I live in Utah. If I look at my history, I, I, I say I'm a H VAC technician from way back. But if you go back even further, I'm that kid that stood next to dad while he's sitting in the bathtub at the apartment complex that he owns and, and I'm handing him wrenches while he's fixing the tub. I mean I learned from the time I was 10 years old and I've always loved being in the repair business and taking care of, you know, that, that, that checklist. So as Dove D got into heating and air conditioning back in 2000, I think the trades are amazing. I think there's so Much potential. And then it wasn't that many years ago we were approached by the private equity industry. I mean, they. They saw in our. In the services side of the industry, the potential. I mean, the recession hits and we're strong. People still have to fix their stuff. And so they saw the value in our industry. And at first we were approached and we were cautious. We, in fact, had all of our barriers up because we. I mean, you're selling out, right? Right. This is going to hurt our people, right?
Chris
Yep.
Dustin Van Ormon
And we were nervous. We weren't interested in doing anything with any of them. Ultimately, we started our own group, the NER Group, so we could create what we felt we couldn't find with the others. Now, there's other good groups out there.
Ishmael Valdez
I'll not that many. I'm just gonna be honest with you, D. There's not that many.
Dustin Van Ormon
I'm trying to be nice, try to be humble anyway, but. But we just. We just didn't resonate with the others.
Chris
Right.
Dustin Van Ormon
And it just wasn't the right direction for us. So we formed the Any Hour group back in 2020. One step back, one step further. I started with any hour in 2011. The. I was one of the first H Vac technicians there, jumped in a truck, worked hard. At that time, there was about a dozen of us, total revenue. We were about to.
Chris
What year was that that you started.
Dustin Van Ormon
As a tech with them with any hour? 2011. July 1, 2011, we were about two and a half million in revenue total.
Chris
Just small shop.
Dustin Van Ormon
Just a small shop. Figuring things out. And I'll tell you, the key to success and the growth, because we've seen tremendous growth and success, is that the people you surround yourself with from the very beginning, it's your. You need to be looking for leaders in every person you hire because you're developing leaders. And the more you can find the right people, the more you can progress as a business.
Chris
Absolutely.
Dustin Van Ormon
So I've seen the business go from two and a half into today. Just the Utah location where I started All Organic Growth. Did a little over 110 million last year.
Chris
Amazing.
Dustin Van Ormon
And then as a group, I mean, because we set out to create what we couldn't find, which we wanted to create a real partnership where people could come benefit from resources, tools, experience, a team that scaled a business from small to the top. And so that's what we set out to create, and that's appealing to people. They don't want to sell out. They don't want to just give their business away. They want to create an environment that's strong and successful for all the people in the business. So we've been very successful. Right now we have 30 locations in the United States covering 10 states.
Ishmael Valdez
What's revenue are you guys doing now, D?
Dustin Van Ormon
Right now, approximately 500 million.
Chris
Jesus Christ.
Daryl
So that's awesome.
Dustin Van Ormon
It's been fun.
Chris
500 million among 30. 30 locations, you said that's awesome, Correct. Great. Cool. Very good, man. So the both. Both incredible backgrounds. Both have been growing it, so. Hey, guys, it's Chris. Hey. A lot of you leave comments asking for help. Do me a real quick favor. Shoot me a text at 509-374-7554. That's 5709-374-7554. Shoot me a text. I'll answer and help you with whatever you need. Don't worry, I got you back. Let's go back to the show, baby. It's interesting. It brings up the question, like, why. Why is private equity involved in the trades right now? Because, you know, historically they go in waves with different industries, different businesses. Why is it so appealing right now?
Ishmael Valdez
I think that, like D said, you know, we've. We're pandemic proof. We're, you know, recession proof. I think they see the, the, the value behind us and that we're probably an irreplaceable trade. I don't care if you're, you know, start making machines that could do it and start making bots that can do it. Nobody's ever going to do it like a human being can actually do it inside the trades. And I think they see the value behind it. You know, they finally see us as, as a, as a platform that can be invested in not just, not just have the SaaS model and not just have, you know, the rest of the other industries. It's. I think they see the value behind us.
Dustin Van Ormon
You mentioned pandemic proof. I mean, you look at what happened. Private equity was interested in our trades before the pandemic hit. But then what happened when they saw how it affected us? I mean, we were an essential service. We didn't shut down. In fact, all of us grew like crazy if we had our stuff together. Right. Of course, they saw how we handled that crisis in the entire world. It was a worldwide crisis, and the trades came through, like, just fantastic. And that's, that's appealing.
Daryl
I think another thing that's going on is the amount of money that's, that's pumping into private equity is massive.
Dustin Van Ormon
Margins are strong.
Daryl
Well, see, was it the Milken Institute that Bryce went to? So he has a conference that my brother went to and he was showing, they were showing him how like the money that's going into the market, the stock market versus private equity, private equity is outpacing the stock market.
Chris
Well it's just become so, so expensive to be a publicly traded company these days. And the amount of return that you can get in private equity versus publicly traded companies is just drastically different. And you know you mentioned and alluded to it but like we are in the AI era and when you're analyzing businesses of what is AI going to replace really the trades is going to be one of the very last type of, of, of any type of industry that's going to be replaced by artificial intelligence and robotics. Right like for a rope, for a robot to show up to somebody's home to analyze the situation and customize an approach like that just seems so far fetched versus versus like can do. You know, just an arm that's replacing and doing a task over and over again in a manufacturing facility. And so you know, you look at these, these software companies that have traditionally taken a lot of money from private equity and those things are being, I mean you got software's being written in three days through artificial intelligence. You just got like, I mean the ability to replicate most businesses is, is just ash like crazy. And so I think that's where the blue collar work really shines through.
Ishmael Valdez
I can't wait till AI really gets developed into the trades because I think just like you said, you're going to have the first software company that's going to be $500 billion written by a couple dudes in a garage. You're also going to have the, you know, the 30, 35, 40, 50% net profit trades operations getting built out right now. Because you know, look, whether people want to see it or not, or whether people want to believe it or not, AI is going to wipe 90% of your in house support. I believe that the next, the next batch of, the next batch of operations that's about to blow up is going to be driven by maybe four to five drivers in the in house support, driving hundreds of millions of dollars. Instead you know, in action we had 160 people in house between CSRs dispatching, production, accounting, just the whole infrastructure to be able to hold that. I believe that AI is going to benefit the trades and take us to the next step to giving us the bigger multiples and, and valuing us at a higher, at a higher rate. So I can't wait for those that to happen.
Daryl
I have A question for you. So you built in California?
Ishmael Valdez
Yes, sir.
Daryl
So you obviously had like some of the toughest regulatory.
Ishmael Valdez
Still.
Daryl
Still do.
Ishmael Valdez
Yep.
Daryl
How. How is that? Like we Washington, we had some big challenges working with, with the governments here. But I'm just curious on California, the.
Ishmael Valdez
Look, California is unique, man. California is just like, it's, it's a different side of the operation. It's a little bit more complex operation than most people, than most people are used to. It's, it's no different from any hour. It's no different from those people. They're all driven by, by, by human beings. We just got to apply, we just got apply different laws to our, to our structure, but, you know. Yeah. Was it difficult? 100 was difficult. Do I love dealing with all the behind California 100? I don't, but I promise you 50 million. $50 Million people in California, you can't beat it. You know what I'm saying? It's, it's one of the, I think it was just named the fourth. The fourth biggest, largest GDP in the, in the world. So you can't ignore those numbers. You can't ignore. Just because there's different compliances there, you can't ignore that market. So.
Chris
And yet somehow the government's still broke.
Ishmael Valdez
I know it's sad.
Daryl
Do you feel like, do you feel.
Chris
Like taxing all your people 13 on the top? Oh my gosh.
Ishmael Valdez
Trust me.
Daryl
Do you feel like that keeps people out of the market because of the bear of entry?
Ishmael Valdez
I think, I think it brings out the best in people too. So it does keep a lot of people out of the market. I've not, you know, Tommy's not in the market. There's a ton of private equities that won't touch California. I think that that's why I got a big payout the way I got a big payout because we were able to do it in such short amount of time and do it compliant. Compliantly was which was one of the toughest things to do. Look, growing a business in California, I'm gonna put it to you guys in a, in a, in a simple, in a simple metaphor. You know, growing a business in California is like playing golf with the wind hitting you. Right?
Chris
You know, it's, it's, it's interesting. These barriers of entry, I think create tons of value, ton of opportunity because, yeah, most guys aren't willing to go through any type of barrier of entry. That's really what made you, made us successful in building a solar company out of Washington state for anybody that's ever looked in the solar industry. Typically it's going to be around where the sunniest places with the highest electric electric rates. I mean, we're talking about Seattle, which is not the sunniest and the lowest cost energy in the United States. And that's where we chose to establish our business. Where literally everybody else was taking the low, low hanging fruit and working up. We took the highest hanging fruit and worked down. And because of it, we established ourselves in a way that was just completely different, having these different regulations. You know, Washington state's just as crazy as California when it comes to regulation. Right. Like electrical regulation, you got to have. You can only have two apprentices per journeyman.
Ishmael Valdez
You know, like, see, that I can't deal with, bro. I can't deal with that. Look, it's hard enough to scale a business. Now, you mean to tell me that each one has to have a license and they got to have. So, like, look, the easy part about California, and I don't mean to cut you off, Chris, the easy are. The easy part about California is under my plumbing license, under my electric, under my H VAC license, I could carry all the people with me. Right? So recruiting and building them were.
Daryl
That's way better than here.
Ishmael Valdez
Exactly.
Chris
Yeah. I mean, we have literally the craziest electrical licensing standard in the US but because of it, it kept everyone else out. Right. And if we could be compliant and learn how to be compliant. Right. Learn how to play within the rules of the game, that ultimately allowed us to dominate.
Daryl
Right.
Chris
Like, and that's, that's really the key to this whole thing is like, what.
Ishmael Valdez
Are the rules exactly?
Chris
Can I create any additional rules? And like, how do I operate within that?
Daryl
I think kids too, if they're going into trades, like states like Washington are great because it is really hard to find those type of people. And they get paid well.
Ishmael Valdez
Yeah, yeah, I'm glad you brought that up, honestly. And we should talk. We should, we should talk about it because one, you know, I don't want to make this a personal podcast order.
Chris
Oh, you're great, man.
Ishmael Valdez
But look at the. One of the big things and the biggest, the biggest problem we have in the industry is the recruitment side of it. Right. We are running operations whether you're any Hour, Next Gen, XLab, whatever, everybody across the industry, we are running and building these infrastructures and operation with a limited amount of people. Yeah, okay. Like, you go to California, it's a show. You know, my technicians go to this company and then they bounce to this company and then they come back to this company and then they come back to us and we're just sharing labor, but we're not fixing the problem. The problem we need to fix in the industry is to actually get an influx of recruitment. Right? And, and it starts at, at the high school level. And you know, that's one of the personal goals that I have in my journey is to be able to impact that section of it. Because if we can, if we can actively impact the educational system where we're all, we're, we're not just pushing them to college, we give them an option to come to the trades and actually make real good money, if we can do that, that's. That, that's what's going to solve the, the, the biggest problem we have in an industry, which is labor.
Chris
Yeah, I mean, we got a, we got a big shift in our educational system that has to take place. I mean, I mean, you think about it, right? Like, AI is banned in schools right now. Like, like, you can't even use Chad GBT to write a paper or do anything because it's cheating. Like, I mean, that's where we're at, where we need to completely shift and like, understand what AI is going to impact, get people more into the trades, understand that like, blue collar work is, is respectable, you can make a good living, all these different things. And so, yeah, it's a, it's a big shift that we have to make. And I agree with you. Like, we got to be d. I.
Ishmael Valdez
Got a question for you because, you know, you know, your story is super unique and your story is, you know, one of a kind to be able to, to be able to come from a, you know, turning wrenches to running one of the biggest private equity shows in the nation. What do you think we have to do as influencers?
Chris
Right?
Ishmael Valdez
As, you know, as being the voice of the industry. And I hate calling myself an influencer. It pisses me off, honestly. And I don't even know if we're supposed to cuss on these. And I apologize, we'll bleep it out for you.
Chris
But, but we're a clean show.
Ishmael Valdez
But, you know, okay, I'll, I'll make sure we clean. But look, what do you think? Do you. Is, you know, we should be focused on as, you know, the lead drivers inside the industry, which, you know, obviously you, you're huge in the industry and do your. You guys are all huge in the industry. What do you think we should all focus on to being able to solve the biggest problem, which is the labor Shortage?
Dustin Van Ormon
Yeah, good question. We need to open our doors. We need to show people the. I mean, the trades are fun. Do people realize this is fun or do they think they need to go to college? That's the reality is society is trained people to believe that college is where you need to go and you need to get that education. But the reality is not all of us want to go to school and sit in a classroom and learn what they want us to learn. We want to get out and experience life.
Ishmael Valdez
Yeah.
Dustin Van Ormon
We want to go experience a career of our choice. And in the trades, you can have a choice of what you do with your life direction. But I think people aren't. They don't understand even what's available yet. And so helping them see that. What's the old. The old perception of a plumber? I mean, they're this.
Ishmael Valdez
Yeah, they have this too hard.
Dustin Van Ormon
Right. I can tell you, in our business, in our. I'm going to take our drains program where I think most companies and ours used to be this way, where you come into a drains team, you know, they're putting a snake down a sewer line and cleaning it out so water can flow again. It used to be really dirty. Really. I mean, just. It was frowned upon. People used to come in and out of those departments. We've created an environment where if you have the right culture, if you have the right training, if you have the right opportunity, if you show people how to turn those leads into a really successful career, even though there might be a dirty aspect to it, it's respectable, it's honorable, it's got direction, and we can educate people to understand that there's a real career, a real direction in any of the trades.
Ishmael Valdez
And there's massive wealth.
Dustin Van Ormon
Oh, my goodness, massive wealth.
Ishmael Valdez
There's massive wealth to be done in the trades. And that's the one thing that I think we're missing. And we're not being loud enough. You know. You know who the loudest people are right now? You know who the loudest people are right now? The AI and the tech companies. That's why everybody wants to work for him. Who wants to work for Facebook? Who wants to work for Google? Who wants to work for Amazon? Who wants to work for these new AI companies? Everybody wants to work for them. We need to be a way. We got to get louder. We got to get louder. Hey, you can make 2, 300, $400,000 as a plumber, as an electrician, as an H vac, as a solar rep. You can make that much money your first, second Third year here. Right. That's what we need to do. As as. That's the responsibility. We agree have as. As the face of the industry. To be louder, the loudest one is who attracts the labor. Right. What do you think?
Daryl
Yeah, I know I had kids over. My daughter had some friends over and I asked all of them, what are you doing for college? And then I asked him, do you guys know about trades and do you know how good it is? And yeah, just trying to like influence them because I didn't know until I had a business that trades was such a good opportunity.
Chris
Yeah, I mean, the, the reality is we're up against a big thing, right? I mean, the college system is a very lucrative industry or whatnot. But yeah, we can definitely speak up the way we do our recruiting, our training, those type of things. What are you guys doing right now over at any hour for recruiting and training people to, to get them up to speed?
Dustin Van Ormon
You bet. We have people coming through our doors every single day. If you go talk to my recruiting team, they'll have thousands of applications per month coming in the door. You have to be actively looking for the right people, bringing them in, showing them what's available, creating an opportunity, and then you got to be open minded. I mean, you bring people in the door and I think so many contractors out there are just looking for the most experience. You need to find people for who they are and help them develop that experience. If you're hiring for character and if you're bringing people into the trades, giving them an education and helping them start that career path, that's why we have a shortage is because we've created it. We've only gone for the. Like you said, they're bouncing from shop to shop to shop. So these experienced guys are the first one they grab. Right. If we bring in young people that are ambitious, that are interested in learning how to work with their hands and have a career in the trades and then train them, they're grateful for that training. They're going to stay with us, we're going to have loyalty, we're going to have hard working people. And like you said, in a matter of just a few years, we've helped them develop a career path where they can make an incredible income and provide for their families.
Ishmael Valdez
So I was just talking to Ara about this. I had lunch with him last week and we were talking about this, the labor shortage, and you know, I'm telling him, hey, your biggest problem at Service Titan is not AI. Your biggest problem is not acquiring new clients. Your biggest Problem from you know, a million miles off view is that you're going to get capped off with the amount of technicians you have in the industry because you know, it's a paid per technician service. So we need to fix this as a whole. Right. So how do we talk to our, how do we talk to the 20, 25 year olds that don't know what to do? How do we talk to the 18 year olds that don't know what to do? That's the problem we need to solve.
Chris
Yeah, I mean and it's got to be a cultural shift because I mean these kids, they're coming out of high school, addicted to their phones, don't know how to use their hands, never have done any type of like labor or sweated in their life. Right. So like that, I mean you got to address this situation early. It's not at 18 or 19, it's actually 12, 13, 14, like figuring out ways that we can insert ourselves in like shift in society and get there where it's like the people love working again.
Ishmael Valdez
Amen.
Dustin Van Ormon
Amen.
Chris
So you know, it's, it's interesting. There's, there's a, there's a labor shortage, but then there's also like a lot of guys in the space that just have trouble scaling. Right. Like all of us have scaled drastic amounts. Like what, what would you say like are the key aspects in growing a business from zero to 106 million in six and a half years?
Ishmael Valdez
I think the biggest problem one of these contractors having, you know, I've mentored, you know, thousands of these guys and I've had one on ones with them. And you know, through my nouve thermostat we were able to, we're, we're building a training platform where, where we're talking to these five, five two, three, four five million dollar contractors. And the one thing I've, that they're not a sales driven organization.
Chris
Amen.
Ishmael Valdez
The reason why you and I and any are and, and every, every, every one of these contractors are successful is because we built a culture based on sales. We built a culture based on, on, on, on solving problems for the consumer. We built a culture on driving forward. And that's where the most of these, most of these technicians that you know, decided to be CESOs or most of these installers that decided to be CEOs.
Chris
Right?
Ishmael Valdez
Or most of these office personnel that decided to be CEOs lack the fundamentals of a sales process. The sales process is one of the most, you know, unique and most pure form of growing the Business.
Chris
Hey guys, it's Chris. If you're finding value in what you're hearing, go ahead and like, and subscribe. That way people just like you can find this content for free here on YouTube. Now let's dive back in the show. So Dustin, like when you're, you're a small shop, you're doing couple million a year, just struggling, you don't have these sales processes, you don't have any really good operations in place, like where do you go, where do you go for help or something like that.
Dustin Van Ormon
I think that's a challenge that so many business owners are facing. If I go back and think about what my experience was like in the beginning, it was the Wild West. I mean I, I would go to my first call in the morning, I'd present options for repair. If they didn't want to repair, I'd present options for replacement. If they wanted to replace it, I'd go buy my own equipment, I'd come back, I'd do my entire install myself. I'd call dispatch and say I done, then go do another one. Dispatch would line my calls up for the day and at 5 o' clock they'd say, here's your next four calls. Let me know how it goes tomorrow. I mean, we did whatever it took and it was the Wild west and that meant we had to get involved from the minute we woke up till the jobs were done. That was usually 10, 11 o' clock at night because that's what it took.
Chris
Yeah, yeah.
Dustin Van Ormon
Now if I'm talking about the challenges these businesses are facing and they need to figure out how to overcome. People will come into our shop quite often, anyone's invited and they'll ask us, well, what's the silver bullet, you know, that helped you scale your business? So many shops have a hard time scaling past that 2, 3, 4, 5 million dollar range because they don't know how to build a team.
Chris
Right.
Dustin Van Ormon
And so they're wearing every single hat themselves and they don't know how to take one off and hand it to somebody talented. Yeah, that's, that's where they're lacking, is building the right.
Ishmael Valdez
Can I follow with that? I'll follow up with that. The, I, I believe that the, the, the two to three million dollar guys that are stuck in the, in the, in the, in the position that they're stuck in is because they can't find themselves. They, they don't know what position they should be seated on. Sometimes you don't know that, hey, maybe you should be running the install department or Maybe you should be running the office or maybe you should be running the text. Like part of a, part of a, being a, a high level CEO is identifying yourself in the operation and running with it. Right. And, and at the two million dollar shop, most of these guys, yes, they're doing everything themselves. What I would, what I would tell every operator out there that, that is stuck between 1 and 2 million dollars is hire a sales person, hire a senior technician, hire a sales representative. Sales is a. Sales is a gift. Sales is a gift. Being able to have an emotional connection with a consumer in a short amount of, in a short amount of time, persuade them to purchase something from your company is a skill and a skill that most, most operators lack. And there's nothing wrong with it, but you got to know your skill. I knew my skill when I stepped in that door. I knew that I knew how to market and I knew how to recruit. And I stuck with that all the way to 108. You never saw me go inside that house. You never saw me trying to install it. You never saw me. I identified my skill, what would benefit the operation and I ran with it. And then I started building piece by piece of like, okay, cool. What happens after the phone rings? Okay, first of all, we need somebody to answer the phone. Second of all, we need somebody to run those calls. So what? Let's start building that process one by one. But finding the seat is finding your seat as a CEO and knowing that you got to build the team is how you're going to be able to scale your business.
Chris
You know, it's interesting. I think a lot of times technician ran businesses, they, they look down upon sales.
Ishmael Valdez
Yes, sir.
Chris
Right? Like, they're like, oh, sales is dirty.
Ishmael Valdez
Yep.
Chris
You know, I can't just have only sales guys. I got to have guys that understand the ins and the outs of exactly how this is done. To be in management, to be out talking with the customer, to be any of these things, right? And so like it was, it was always interesting to guys when, when they found out, like, dude, I've never, I've never installed a solar panel in my life. Right? Like I know how a solar panel is installed. I've watched it be installed. I've, I've never have a drill. I own, I own a drill, right? Like, but like, like, like you don't, you don't have, like, if you are a technician running a business, understand, you don't need to be a technician running a business, right? Like, like running a business is a completely different skill than going and Servicing a customer.
Daryl
I think the irrelevant conversation which you can see in like a sales department and a technician department is like, which one's more important?
Chris
Right?
Daryl
They're both, they're both important. Yeah, but yet you, you see them all the time. Technicians, like, well, if we don't do our job, then the sales guys don't matter. And then sales guys are like, well, if we don't do our job, then technicians don't have any, we get all the re. Yeah, it's like, but, but if you, if you go into your business as a technician, right. It can be easily, you can, you can stick to that position where it's like my work is my marketing or something like that. You just limit yourself.
Dustin Van Ormon
So I completely agree with what you're saying. You need to attract top talent that can sell in your business. Trouble is, at 2 million in revenue, how do you attract the top talent in sales? Because they want to have a career path. Yeah, I want to hear it.
Ishmael Valdez
Ready. The way you attract high level sales guys is by being able to provide a higher pay scale and in, in a simpler pay scale. Whether you guys see it or not, and I'm sure you guys see it, the sales drivers, the sales people, the sales ticket, the sales personnel, they're all incentivized by commission. Okay? I knew a good salesman when he walked in my door, as soon as he talked commission, as soon as he talked, well, can I get a, a salary? Can I get, or a low hourly or can I do this or can I do, I'm like, if you don't walk in the door and tell me, hey, how is, what is the biggest commission I can get on this ticket? You're not a sales driver.
Chris
So I'm going to conflict a little bit here. So I am a sales guy and so I, I, I can appreciate a good commission structure. I think, I think that is, I think frankly the way that you take a 2 million dollar shop to a 50 million dollar shop, to 100 million dollar shop.
Daryl
Yes.
Chris
You have to attract the right talent. It's all vision driven. Right. Like for me as a sales guy, yes, I got to be able to make a lot of money. But if I do not see a vision of growth, a vision of opportunity, like in fact, if a guy does come in and the first thing he's talking about pay, I'm kicking him out. Like I want somebody to be bought into the culture, the vision, the direction of the business to see where they're going to fit into going and growing this thing and then let's have a compensation structure. But I do agree you gotta, you gotta compensate. I think most guys, most guys on, on a baseline level just have no idea how to compensate guys.
Ishmael Valdez
I, I disagree that at the $2 million level you have that kind of. Because otherwise everybody, there would be a hundred million dollar companies. At the two million dollar level, there's no vision. And that's why they're all stuck in the right.
Chris
Because there's no, because there's no vision. And then, and that's, that's my point is like, for a guy to get out of, he's got to change his vision. Most of these guys are just in survival vision mode. It's just like I'm just trying to get to the next payroll pay, you know, do the next thing. And like, if I can just stay here and make my 200 grand a year or 300 grand a year, then I'm, then I'm going to be fine. Versus a guy that's at 2 million, he's like, yo, in five years we're getting to 100 million. And this is the plan, this is the roadmap to be able to get it. They're going to be able to attract the top talent. So like one is like shifting the limiting beliefs that you have around your business, thinking bigger, being able to attract in the right talent. I mean, that's essentially what made Soulja and what Soulja was like, we're sitting in a garage recruiting guys, right? Like, third guy walking in, I'm like, yo, we're building this thing to 100 million in the next five years. This is the roadmap. This is how we're doing. They're like, well, I'm sitting in your freaking garage. I know you're sitting in the garage. This is how we're doing it. We're investing in the right things.
Ishmael Valdez
That's a true operator right there. That is a true operator right there.
Dustin Van Ormon
So, Ishmael, you're talking about the compensation side of things. And I agree with both. I'm glad this, this conversation is happening. But here's the thing. Without saying it, you're demonstrating your vision. You're a charismatic, energetic person that is proud to be able to offer people a great income, right? You're, you're demonstrating your vision along with sharing with them their opportunity for compensation. I meet so many business owners that have been 2 million for the last 10 years. They can't paint a vision. So they have to change something and able to create an environment where people want to be because high performers they're not going to go to that shop because they don't see the direction. So people need to see a path, they need to have a voice and they need to be compensated well.
Chris
Amen. Look, look at us coming together.
Daryl
So, so on Instagram, I see the, the, all these posts about like buying retired businesses where people are retiring and just talking about what you guys talking about. Those businesses struggle because they don't have sales, right?
Ishmael Valdez
Yep.
Daryl
So if you're a very sales driven person, it'd be a good opportunity for you to go find a business that wants to like retire. Business owner wants to retire.
Ishmael Valdez
There's a ton of them out there too.
Daryl
Yeah. Go in there with a sales focus, not a technician focus and build that business.
Chris
So 2025, what's the opportunity right now in the H Vac world?
Ishmael Valdez
The trades, the plumbing, dude, roofing's coming right, right behind us too, man. You know, there's a different level sophistication that the, that the trades has been going through. Obviously the solar people have been leading the pack for, you know, years and years and years. And the H Vac guys were following you guys right behind it. Whether it was a CRM or whether it was a sales driven trade. The cells and the cells, I mean, the solar industry has led us to where we're at right now.
Chris
So, you know, it's, it's interesting. Obviously there's a lot of like best practice groups out there. Right. Like, I think one of the biggest shifts in my career was once I started getting in the room with the right people, learning, learning the secrets of, of things that I wasn't doing and others were doing. Right. And there's, there's been a lot of like best practice groups that have been well established in the trades for a long time. What, what should you be looking for in like being able to scale up, educate up, learn these things? Because like, obviously there's podcasts you can go to, there's YouTube, there's different things like where, where are you turning for the right direction these days?
Dustin Van Ormon
The first thought that comes to mind. And before I answer your question, I want to point out something I've observed so often. Business owners will see a spark of talent in somebody in their business, a technician or somebody in the office, whatever. And so they see this spark of talent and they think, oh well this, this makes sense, let's make this person a manager. So they put them in a management position, but then they never spend the time to develop that person. And so it's, I mean, you may have heard this before, but have you ever, you've heard people come to you and say, hey, so and so just decided to give notice. We just made this person a service manager, for example. Right. So and so just decided to give notice they're leaving the business and man, I'm so glad they're leaving because they're the hardest one to handle. Right. What they don't realize is oft times those hard technicians to handle are your highest producers. I'm one of them. I'm probably not the easiest guy to manage in the world. You're probably not either. Just being honest. And so your high performers are walking out the door because we haven't developed our leaders to know how to communicate properly and how to inspire and how to understand what that person's needs are.
Chris
Right?
Daryl
Yeah.
Dustin Van Ormon
And so having coaching and training and opportunity available in programs like what you guys have created here with, you know, the next level pros, team businesses need to have direction. They need to understand what the next step in scaling is. They need to have a coach to help them stay accountable. They need to have leadership development. They need to have weekly one on ones. There's so many things that need to be happening. You can't just hire somebody with a spark of talent and expect them to figure it out because they might be able to become a manager, but are they going to become a leader without you supporting them?
Chris
You know, it's interesting, you look at like anything that operates at a high level, whether, whether it's a professional sports team, whether it's with Tony Robbins, whatever, Right. They all have certain things in common and yet so many of us try to like cut corners and bypass that. Right. Like every, like Michael Jordan, right? He had, he had his coach, his trainers, his developers. Right. Like to be able to operate at a high level, you have to be in these groups, you have to be around the right minds, you got to have accountability and everything else. Yet so many of us, we just want to be like, oh, that's not for me. Like I had my coach in high school playing football, but I don't need him now. Like, I'm a big boy. I'm smart, I've got, I can figure this out on my own. I've got access to all the same information they do.
Daryl
The biggest, the biggest people culprits to this are the people who like had a job, started a business and now they're making a little bit more than they used to make. They're like, I got it figured out. And they're the ones I'm like, dude, you do not have it figured out. There's so much opportunity you're just leaving on the table. But what I was going to say about what you just said, as far as recruiting your top talent into management is one of the biggest mistakes that a lot of businesses make because a lot of times they actually are decreasing their pay.
Ishmael Valdez
They heard it.
Daryl
They're not management material and they're happier as a leader in the, in the tech, in either cells or, or technicians.
Chris
Yeah, top producer doesn't mean you're a top manager, right?
Daryl
Not always. It can be, but it's not a.
Ishmael Valdez
And it hurts the business too, because you're taking a revenue producing person and putting them in a managerial position and most of us forget that, that we need that revenue. And especially at the, at the, at the pivotal moment where we're at 2, 3, 4, $5 million, you need those drivers, you need to keep them where they're, where they're, where they're, you know, producing the most for the company.
Daryl
But I like what you're saying. I think we should be training all of our people to be leaders.
Ishmael Valdez
Amen.
Daryl
Because then you, you see the, the ones that rise, rise up.
Ishmael Valdez
So I got a question for you guys. So bringing, coming into this industry, right, in the plumbing, air conditioning, electrical industry and, and, and coming in as a mentoring group, there's, there's a lot of scammers out there, right? And I've called them out. I promise you. I called them out. Dustin. You've seen me. I'm not afraid to call people out because.
Dustin Van Ormon
Can you do it?
Ishmael Valdez
Because. And the reason why I'm not afraid to call it out is because I am so protective of the trades. I'm so protective of the contractors. I'm so protective of them getting taken advantage of because I'm one of them. And I've been in their shoes where it's like, man, how the hell am I going to hit payroll this month, man? And, and, and they're, you know, they're looking for that silver bullet or the coach. So how do you, as a contractor and, you know, how do you, you, how do you distinguish who's a good coach and who's a bad coach or who's a good training platform and who's a, an outdated platform?
Chris
You know, it's a great question. I think, you know, one of the things that I've always looked at is like, has somebody ran the roadmap that I want to run, right? Like whenever I can get in the room with somebody that has been in my shoes, done the work, gone through the same struggles. Like that's somebody I want to learn from. Right. And, and so, and does it for the right reasons. I think. You know, a lot of the scammers out there, there's guys that are, that are figureheads in the space but that aren't involved in their program whatsoever. Right. Like they're, they're a good marketing piece. But then you get in the door and you never hear from substance. Yeah. You know, you never hear from them again. There's no substance to the program or anything like that. And so it's interesting like the program that we teach, we teach you what, what we call the eight pillars for growth. It's under our God mode structure and, and essentially these are pillars that we have bu Being in the shoes of the technicians, being in the shoes of the business owner. And we've done it through successes and failures and, and being paying for coaching ourselves. Right. Like, like I always say, like one, be extremely afraid of a guy that wants to be your coach that doesn't pay to be coached. Right. Like that, that isn't constantly learning, isn't constantly developing. Like one, one thing that I've dedicated in my career, I've spent over 1.3 million just on my personal education. Being in the right room, going to a three year Harvard program for owners and presidents of companies like doing, doing the work, like that's what. But more importantly like I've been there when it's tough to make payroll. I've been there when you're just scrapping together and getting your next sale to be able to figure out how to cash flow this or you know, put off a vendor for a little while so you can make the payment, you know, and so like when, when you really understand that, right. Like that that's the room you want to be in. And so, so you know, we're, we're coming into the trade space. Yeah. We have, we have background in the trades. Right. Solar is a, is an electrical trade. It's. But what we bring to the trades is, is a more like astute and like targeted sales development, leadership structure vision where many, many guys in the trades just really struggle with there.
Ishmael Valdez
What would you add? What would if everyday contractors that are 2 to 4 million dollars. Right. And they're looking for a coach, they're looking for a training platform if you're one of them. What are the three questions that every, every contractor should be asking to the, that you know, whoever they're interviewing to be their coach What. What would you be the top questions that they should be asking or looking for to bring out red flags or green flags?
Daryl
It's really tough because sometimes when you're in that spot, you don't know what you're looking for. Right. And so I think it's. It's looking for track records or people that have worked with them.
Ishmael Valdez
Amen.
Daryl
And then kind of like Chris was saying is. Is what. What's their track record? It's interesting. The people that we see, like, tons of change in their business and success, they're implementing some of the most simple things, some basic things. And so, like, that's the thing is it's. It's really tough to. When you're in that shoe, when you're grinding all, all the time, like, it's really hard to see these simple things that need to be adjusted. And so it's one of those things where you just got to do it. Like, the worst case scenario is you pick the wrong person and then you pick the right person next. Right. Making a decision, I think is more important because I think a lot of people just don't make the decision because they're worried about getting burnt. I mean, who hasn't been burnt?
Ishmael Valdez
Everybody.
Daryl
Right. But it's like the quicker you get burnt, the quicker you can make the right decision or find the person and.
Chris
Learn from it, you know? You know, it's interesting, like in, in the coaching space sometimes. Yeah. To Daryl's point is like, just by spending the money, you're committing to taking some action. Most guys just aren't taking any action. They're reacting. Right. Like, they're not being proactive in designing their business or whatnot. So, like, just by giving that, that pledge or that vote of like, hey, I am going to start working on my business. That's step one. Obviously, you want those dollars to go to the best program. Right. You want to be in the right room, you want to be with the right guys. And so. And that just comes down to, yeah, who's got the best track record, who's got the best testimonials, who actually knows what they're talking about. But, like, you could literally pay for something, get a tiny little piece of advice, and it could be drastic and changing. Changing your.
Ishmael Valdez
I agree with that.
Dustin Van Ormon
You know, if we're talking about these groups and how you can find a coach and surround yourself with people to help you successful, the first step is to just make the decision to do something. I mean, how many of these people are trying to recreate the machine it doesn't have to be recreated. There's plenty of us already doing it successfully. And I tell you what, we're happy to share. I mean I have hundreds of businesses come to our shop every single year and I walk them around personally and show them what we're doing in our business. Right. Anyone's invited.
Daryl
I need to go along with that. A truly successful person always wants to share.
Dustin Van Ormon
That's right.
Daryl
Like they're the most open people.
Dustin Van Ormon
That's right. And, and then the other thing too is you're observing what these larger businesses are doing. Well, you tell me one of them that's not in a group of form, one form or another where they have coaching and training opportunity. They're all in something I think greatness.
Ishmael Valdez
I think that was one of the, one of the most eye opening things when you, when I was growing Nexion and, and we were trying to get it to a size, the most eye openening thing to me, you know, I thought people were going to be standoffish of me or they weren't going to want to share their little secrets or whatever. And you know, I'm the type of guy that ask a million questions and I, my, my question is always why? Right. But I like that, that's a, that's a good thing about the industry. The, the, the future of this industry. Where I see it, dude, back 20 years ago nobody really talked to each other.
Daryl
Yeah.
Ishmael Valdez
Like Leland didn't see, you know, didn't talk to Kevin and Kevin didn't talk to Ken Goodridge and wasn't a thing. Cell phones weren't a thing. All that. So like back in the day it was harder for us to share information. Now that we have all these ways of communication is, it's, it's, it's eye openening. How many people are willing to help each other in the trades And I don't know if this, if this pertains to, you know, other industries, but I can guarantee you one thing. The trades are super welcoming. We welcome people that are, that are good, good hardworking people and you know, we welcome to, to, to take on a project with us.
Daryl
I think, I think that brings up a good point is like reach out, start talking to people. Yeah. Because people wanna, people wanna see success surround themselves with people that are successful.
Chris
Yeah. Yeah. I think one of the, the reasons why we've had so much success with the trades with different businesses right now in 2025 is like we don't, we don't suffer from a lack of information problem. Right. We Got tons of info, right free. Now YouTube, literally you can go to like some of these Ivy League schools for free. You just don't get the certification. Like it's the amount of information out there is available. What really sets us apart and where we've been able to find a lot of success is the level of accountability that we hold because we do one on one coaching with our guys. Like actually look over their numbers. Like that's where guys need their freaking feet held to the fire to make sure that they're implementing the real information. Because knowing information is one thing. We all know how to get skinny, we all know how to look good and everything else. But that doesn't keep us from eating the cookies, right? And so like we need somebody that keeps us from eating the cookies and that makes us show up at the shop accountable to certain KPIs, right? Like that is absolutely imperative in 2025. On top of that, what we found is that works incredible is in person workshops, right? Because what happens is we get stuck in that day to day as a, as a technical operator, right? Where we're head down doing the thing. We're down here on ground level. We have to get to 30,000 foot. And what I found the best cadence is, is once a quarter you remove yourself from the business. You go spend time with other entrepreneurs that are working on the same exact thing and you actually work on the business from 30,000ft. And that's where we found just a ton of success with these workshops is these guys are forced to be in the room, right? They paid the money, they're forced to be in the room. They remove themselves from their, from their location. They come in, we work with them, we spend a couple days working on the things that actually drive growth. Like I think more than anything, whether you're part of our group or anything else, like Those are the two things you need in 2025. Accountability and forced to take action and create. And so that's, that's where I'm finding, finding value.
Dustin Van Ormon
I agree.
Ishmael Valdez
What are you most excited about this new venture you got there? Because obviously look, my, you know, my Tom Howard, which is one of the most impactful people in, in our industry and probably one of the biggest guys, has one of the purest minds in our industry brought it up to me and he said, hey, you know what the next problem for, for you is going to be. And I'm sure you guys are going to bump into like what's going to drive you to wake up the next morning after you, you Know like after I saw the money from Next Gen, like I still showed up to work and I took on this new thermostat project to, to be able to keep my mind busy. But what, what drives you to get up every, every morning and, and take on the, the responsibility of mentoring these contracts?
Daryl
Factors. So it's a good question. And I think, I mean my real answer is like my, my kids, you know, I, I travel a lot. I, you know, I'm, I'm with my kids and I travel a lot. I have four girls.
Ishmael Valdez
Congrats.
Daryl
Four girls.
Ishmael Valdez
Yeah, man, congratulations.
Daryl
But I think like the decisions I'm making like echo into their lives. And so like for me it's like I've got kids, My youngest is 7, and I want to live a life that's inspiring them to be their best. And so for me it's like, what am I doing that does that? Same with my wife. Right. The people closest to me. And then, and then it goes from there and my friends and business partners.
Ishmael Valdez
And so that's on the personal level. What about the professional level though? What's going to drive you? Like, obviously, yeah, all of us are family men and we're, you know, we're, we're God fearing men.
Dustin Van Ormon
Yeah.
Ishmael Valdez
But what, what's going to drive you on the professional side to be able to wake up. And that question goes for you too.
Daryl
I would say, I would say. I, I grew up on the farm.
Ishmael Valdez
Farm.
Daryl
And it was like, there was just like no option on the farm. I just, it was work hard, go to bed, wake up, work hard. It was just the same thing. And then once I started doing door to door sales, I started thinking, man, there's opportunity. I can create opportunity from nothing. And then it was, you know, me and Chris had, have done several businesses that just didn't work out. And I know the grind and I know how hard it is. And so for me, I love helping people skip those steps that are not necessary. Like the grind, like just struggling is, is not as necessary as we sometimes want it to be. And so just helping people jump past those steps and like actually have success. Like, I love it. I loved it. I loved our business. I loved when we had people coming in, making a career in their sales, you know, making a sales career, technicians that would come in and, and get their license and then their lead, lead techs making great money. Like, I love people's, I see people, you know, improving their lives and, and, and just having success that they didn't think possible.
Ishmael Valdez
What about you, Chris?
Chris
Yeah, I mean, dude, for me, I'm, I'm a visionary. And the thing that always drives me is, is a mission. And so I think about this consistently and constantly. Right? And you know, I've always known that money isn't the driver, money is a derivative. It's points on the scoreboard and whatnot. And so, you know, in building businesses, the thing I love is the things that put point that's on the scoreboard. The dribbling, the shooting, the, the, you know, the passing, the catching. And, and so like, for me, it's, it's what really drives and gives me that satisfaction. You know, I tried retirement for six weeks and it was, it was terrible. Right, right. And you know, society has lied to each one of us as far as like, that there is an accomplishment that will get you completely fulfilled. There won't. Right. Like we literally, the name, the reason we named our, our company Next Level is that happiness is found in trajectory, in the trends that we're going and going to the next level. And as long as you're leveling up, like, that's where true happiness comes from. And so our mission at Next Level is designing lives that impact the world. Right? And like, what I've, what I've always thought about is like, okay, how can I really leave my fingerprint on humanity and really change the world? You know, I can go and try to be the President of the United States, I can go and be a governor, I can go and be a church leader, I can go and do all these different things. But at the end of the day, I think as entrepreneurs, we have a greater, we have a greater level of impact across the world than anything else. And the reason is because initially when employees and customers come to us, they think it's all about a transaction, all about money, right? Paycheck, those type of things. But when we teach them that, hey, look, I can help you level up your whole life, your physical, your economic, your association, your spirituality. Now you have real impact on a business, on. And it's a ripple effect that impacts communities, that impacts. And so for me, when I was thinking about those six weeks of like, dude, I gotta have purpose, I gotta have something else, like, it was like, okay, how can I have the greatest impact? And ultimately it was working with entrepreneurs and helping them design lives that impact the world. And so which really drives our five year mission of Impact125, which is to bring an additional 125 billion in annualized revenue through our community. And that's our, that's our five Year. That's our five year roadmap that we're pushing and we're grinding towards. It's literally all community driven because we know that if our community creates 125 billion in revenue, we know we're going to be running at 20 to 25% margins. And because we've taught these people how to change lives, that dollar amount is going to drastically change the world. And so like when you, when you ask like what drives me, dude, that's it man. That gets me excited, gets me pumped, get me out of bed in the morning, every single day, gets me hyped.
Daryl
Let me, I would love to hear what you, what drives you, man.
Ishmael Valdez
You know, obviously from the obvious my four girls do. But dude, I, I think I get driven by the problem man. I, I like when, when somebody, when somebody presents a problem or, or, or something that needs to be fixed. I, I like, I get so intertwined on just like I live and breathe it. Like you know, I saw an opportunity at this thermostat when I saw, when I saw what I could create with it. And to me being able to prove out the model behind it and building it and structuring it and taking it world, like to me taking on a massive, massive problem is what drives me every day.
Daryl
How do you, how do you limit though, because there's tons of problems. How do you limit your focus so that you can really accomplish the end goal?
Ishmael Valdez
So I look at the operation as a whole and I look at the operation where the problem is at, right? And, and this is for the trades, obviously. I'm not an expert on anything else. I love the trades. I, you know, I'm gonna live and die on the trades. But I look at the operation as a whole, right? We have marketing, we have, we have personnel, we have cells, we have like, we have everything, right? And, and to me it's fixing that one problem that still needs fixing, right? Like marketing. We're always spending marketing money in the trade trades trying to acquire new clients. Why? Because we're not retaining them fast enough. We're always marketing you like an action. We were spending $1.4 million a month in marketing between billboards and TV and radio and Google and all that, right? And just acquiring new clients instead of like what happened to the450,000 people we just serviced in the last four or five years? Yeah, like why can't we go, why can't we retain that? And when I saw that, that through the thermostat that I'm building, I Looked at the alarm company and they had, they had, they have the highest retention in the industry. They're writing at 94.8 retention. That is why they don't spend. 1.1% of marketing is spent on the alarm company@adt.com. right. They spend 1.1% of the revenue on marketing because they're the, that panel has their logo, has their information. You're always going to go back to them, them. Right. And that, to me, when I saw that, that gap in the, in the, in the operation, that's what lit up the fire again.
Chris
So I love it. Dustin, what's driving you?
Dustin Van Ormon
I mean, all those things you guys have said and, and then just one more thing that comes to mind. There's people counting on us.
Ishmael Valdez
Amen.
Dustin Van Ormon
I have an accountability to my family.
Daryl
Yeah.
Dustin Van Ormon
To my co workers, to my friends, to the people in my business. And I hope whoever's listening to this realizes how many people, how many lives are affected by just your group. I mean, if you figure the average employee's got a family of four, any hour services, any hour group as a whole, we have over 2,000 employees times four. So we have close to 10,000 mouths to feed, people that are counting on us every single day to show up to work and not just show up and break even. We have to be profitable and we have to grow. If we're not growing, we're moving backwards. And so for me, it's, it's just a drive to. The accountability that's on my shoulders to perform for the people that expect us to develop a business that's profitable and grows.
Chris
Yeah, right.
Ishmael Valdez
You hit it right in the head. The honesty. You're probably one of the most underrated operators in an industry, man. And, and like, all the time that we get to spend together, I'm always learning something from you. I'm always, you know, trying to see, like, where I can hit you from a different angle, see where I could, you know, grab some substance for you. But you are, your mind is, is in the right place, man.
Dustin Van Ormon
I appreciate that.
Chris
I love it. I love it. Where, where can the listeners go to follow you or find out a little bit more about what you're doing?
Ishmael Valdez
Look, I have a free, free social media group that is called Nuvent Networks Group, where I mentor about 7, 000 contractors already. I grew it four years ago. I did it just to take my mind off, you know, NextGen and all the different things I was doing. So I, I kind of did it as a side gig just to be able to take my mind off, you know, what I currently had and it's grown to 7, 000 contractors. We're, you know, so social media, Facebook, on Instagram, it's Ishmael Valdez, CEO. But yeah, most, most likely you're going to see me with Chris and the next level guys here helping more contractors out for sure.
Chris
I love it. Love it. How about you, Dustin?
Dustin Van Ormon
Lots of different ways. My cell phone's on anyhourgroup.com you can track me down there. I'm happy to give it to you here if you'd like. Go ahead. Media cell phones, 801-787-3546. You're all invited to come to any hour. Services in Utah, tours regularly. Just let me know you're interested. Let me know how many people we're going to hang out at Topgolf, hit some balls, have some food. There's nothing better than getting to know people over some chicken wings. Then we're going to do a shop tour. We're going to see what's there.
Chris
Ishmael, Dustin. Appreciate you guys both coming into the studio. It's been a great one. Until next time.
Podcast Summary: Next Level Pros – Episode #148: Can the Trades Take You Farther Than a Degree
Release Date: May 23, 2025
Introduction
In Episode #148 of Next Level Pros, host Chris Lee delves into the evolving landscape of the trades industry, exploring whether a career in the trades can outpace traditional degree paths. Joining him are industry leaders Dustin Van Ormon and Ishmael Valdez, both of whom have successfully navigated the complexities of scaling trades businesses with the aid of private equity. The conversation centers around leveraging private equity, overcoming industry challenges, embracing technological advancements, and the pivotal role of sales and leadership in driving business growth.
Guests’ Background and Business Growth
Ishmael Valdez brings over 15 years of experience in the trades, having successfully exited a plumbing and HVAC company that grew to $108 million in revenue within just four months and achieved a remarkable $225 million in four and a half years. His journey highlights rapid scaling and strategic exits in the trades sector.
Dustin Van Ormon shares his roots as an HVAC technician from Utah, growing his business from a modest $2.5 million in revenue in 2011 to leading the NER Group with over $500 million in revenue across 30 locations in 10 states. Dustin emphasizes the importance of building a team of leaders and fostering a culture that supports sustainable growth.
Notable Quote:
Ishmael Valdez [02:01]: "I started educating myself because I was ignorant to, you know, I didn't even know what the term private equity was at the time."
The Role of Private Equity in Trades
The discussion underscores the increasing interest of private equity (PE) in the trades industry, driven by the sector's resilience and essential nature. Both guests explain how PE firms recognize the stable demand and growth potential in trades, propelling businesses to new heights.
Notable Quote:
Dustin Van Ormon [04:56]: "The trades are amazing. There’s so much potential. They saw the value in our industry."
Challenges in Scaling Trades Businesses
Scaling a trades business from millions to hundreds of millions in revenue presents unique challenges. Key hurdles include building robust sales processes, developing effective leadership, and managing operational complexities, especially in highly regulated markets like California.
Notable Quote:
Ishmael Valdez [15:01]: "I’d hire a sales person, hire a senior technician, hire a sales representative. Sales is a gift."
Impact of AI on the Trades Industry
Chris Lee and guests explore the potential impact of Artificial Intelligence (AI) on the trades. Unlike repetitive manufacturing tasks, trades require human adaptability and problem-solving, making them less susceptible to automation. AI is seen as a tool to enhance efficiency, reduce in-house support costs, and drive higher valuation multiples.
Notable Quote:
Ishmael Valdez [10:22]: "AI is going to benefit the trades and take us to the next step to giving us the bigger multiples and valuing us at a higher rate."
Recruitment and Labor Shortage in Trades
The labor shortage in the trades is a pressing issue, exacerbated by high barriers to entry and a cultural tilt towards college education. Both guests emphasize the need to attract young talent by showcasing the financial and career opportunities within the trades. Initiatives to engage high school students and shift societal perceptions are highlighted as critical strategies.
Notable Quote:
Dustin Van Ormon [17:24]: "People want to experience a career of their choice. In the trades, you can have a choice of what you do with your life direction."
Best Practices for Scaling
Effective scaling relies on identifying and harnessing the right skills within the team. Ishmael Valdez discusses the importance of recognizing one's strengths and delegating responsibilities accordingly. Building scalable processes, investing in leadership development, and maintaining a sales-driven culture are pivotal for sustained growth.
Notable Quote:
Ishmael Valdez [23:38]: "The sales process is one of the most unique and most pure form of growing the Business."
Importance of Sales and Leadership
A recurring theme is the indispensable role of sales in driving business growth. The guests argue that trades businesses often prioritize technical expertise over sales acumen, leading to stagnation. By fostering a sales-oriented culture and hiring skilled salespeople, businesses can overcome revenue plateaus and achieve exponential growth.
Notable Quote:
Ishmael Valdez [24:03]: "Most of these technicians that you know have become CEOs because we built a culture based on sales."
Coaching and Training
Investing in coaching and training is essential for developing leadership within trades businesses. The conversation highlights how structured mentorship, accountability, and continuous education can transform high-performing individuals into effective leaders, thereby enhancing overall business performance.
Notable Quote:
Dustin Van Ormon [35:44]: "Coaching and training and opportunity available in programs like what you guys have created... leaders need to have direction."
Identifying and Avoiding Scammers in the Industry
With the rise of educational and coaching programs, discernment is crucial to avoid scams. Chris Lee advises contractors to seek coaches who have a proven track record and are actively involved in their programs. Authentic coaches will have real-world experience and a commitment to continuous learning and improvement.
Notable Quote:
Chris Lee [38:17]: "Be extremely afraid of a guy that wants to be your coach that doesn't pay to be coached."
Personal Motivations of Guests
The personal drives behind successful entrepreneurs are explored, revealing that beyond financial success, a desire to create lasting impact, support family, and solve industry problems fuel their daily endeavors.
Notable Quotes:
Chris Lee [49:10]: "Our mission at Next Level is designing lives that impact the world."
Dustin Van Ormon [54:12]: "People counting on us. I have an accountability to my family."
Conclusion
Episode #148 of Next Level Pros offers invaluable insights into the trades industry's potential to surpass traditional degree paths in terms of success and growth. Through the experiences of Ishmael Valdez and Dustin Van Ormon, listeners learn the significance of embracing private equity, fostering a sales-driven culture, investing in leadership, and addressing the labor shortage with innovative recruitment strategies. The conversation underscores that with the right mindset, processes, and support systems, the trades hold immense promise for those seeking to elevate their professional and financial standing.
Connect with the Guests
Stay tuned to Next Level Pros for more inspiring stories and actionable insights from top entrepreneurs around the world.