Owned and Operated - Episode #169: Scaling an HVAC Startup to $6M: How Andrew Morrell Went from ZERO to Millions
Release Date: February 13, 2025
In Episode #169 of Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast, hosts John Wilson and Jack Carr delve deep into the remarkable journey of Andrew Morrell, the founder of Mountain West HVAC. This episode offers invaluable insights into scaling a home service business from scratch to a multi-million-dollar enterprise. Below is a comprehensive summary capturing the key discussions, strategies, and lessons shared during the conversation.
1. Andrew Morrell's Entrepreneurial Journey
Early Beginnings and Initial Challenges
Andrew Morrell's path to success was anything but linear. Starting with humble beginnings, Andrew was juggling multiple roles within his then-newly founded HVAC business.
- Handling Multiple Roles:
Andrew Morrell (00:00):
“I was answering phones, I was running service, I was running install. I'm trying to make a place I always wanted to work at.”
Andrew emphasizes the importance of delegating tasks, recognizing early on that managing everything single-handedly was unsustainable for growth.
Business Growth Timeline
Andrew outlines the financial trajectory of Mountain West HVAC, highlighting significant milestones over the years.
- Revenue Growth Overview:
Andrew Morrell (05:40):
“2018, I remember $185,000 in gross profit... 2019, I did have my first employee and stepped up to $685,000.”
From a modest $185,000 gross profit in 2018, the company scaled to $6 million by 2024, showcasing exponential growth fueled by strategic hires and operational improvements.
2. Strategic Marketing and Lead Generation
Utilizing Service Scalers for Marketing Excellence
A pivotal aspect of Andrew’s growth strategy was the partnership with Service Scalers, which provided advanced SEO, PPC, and local marketing capabilities.
- Impact of Service Scalrers:
John Wilson (00:23):
“They've helped us drive best in class SEO, best in class PPC and dominate LSA and GMB marketing.”
This collaboration contributed to a 46% year-over-year growth and set the stage for targeting a 30% growth in the upcoming year.
Exploring Non-Traditional Marketing Avenues
Andrew shares his unconventional approach to marketing, relying heavily on word-of-mouth and guerrilla marketing rather than traditional PPC campaigns.
- Guerrilla Marketing Success:
Andrew Morrell (19:35):
“We have not necessarily spent money on that marketing in the traditional sense... making connections with customers through everyday interactions.”
This strategy not only kept marketing expenses low but also built a loyal customer base through trust and reliability.
3. Lessons from the Workshop: Implementing the Three-Day Call Board
One of the most impactful insights Andrew gained from the workshop was the implementation of the Three-Day Call Board, a system to manage and plan service calls efficiently.
- Three-Day Call Board Implementation:
Andrew Morrell (52:42):
“Making sure that, you know, you have to be planning day out, two days out... implementing a four-hour time window has been phenomenal.”
This system allowed Mountain West HVAC to streamline operations, ensure timely service delivery, and meet customer expectations consistently.
4. Team Building and Leadership Evolution
Strategic Hiring for Sustained Growth
As the business expanded, Andrew recognized the necessity of building a robust team. He strategically hired key roles to delegate responsibilities effectively.
- Hiring Milestones:
Andrew Morrell (31:18):
“December 23rd, hired our office manager... February 24, hired a general manager.”
By adding a project manager and other essential roles, Andrew was able to focus more on strategic planning rather than day-to-day operations.
Delegation and Cultivating Leadership
Transitioning from a hands-on role to a leadership position, Andrew shares how delegation has been crucial to his company’s growth.
- Embracing Leadership Roles:
Andrew Morrell (34:06):
“I'm learning how to allow them to make those changes and delegate those responsibilities myself.”
Adopting a leadership mindset enabled Andrew to nurture his team, foster a positive company culture, and drive the business forward more efficiently.
5. Future Plans and Expansion Goals
Aiming for the $6 Million Mark
Looking ahead, Andrew outlines his ambitious goal to scale Mountain West HVAC to $6 million by refining existing strategies and embracing new opportunities.
- Growth Targets and Strategies:
Andrew Morrell (11:48):
“Our big goal is six. Five seems like a fall in. Seems like there's no way we're not going to hit five.”
Achieving this milestone involves optimizing marketing efforts, enhancing operational efficiency, and expanding service offerings.
Potential Expansion into Electrical and Plumbing
While currently focused on HVAC and electrical services, Andrew contemplates branching into plumbing as a strategic move to diversify and capture a larger market share.
- Considering Plumbing Services:
Andrew Morrell (37:35):
“Plumbing is the trade I know would be a very good bolt on... adding another trade right now just doesn't realistically seem feasible.”
Careful consideration of manpower and expertise required for plumbing services is underway, ensuring any expansion aligns with the company’s capacity and growth plans.
6. Key Takeaways and Best Practices
Effective Use of Technology and Tools
Andrew highlights the importance of leveraging tools like Service Titan for tracking metrics and managing operations efficiently.
- Maximizing Service Titan:
Andrew Morrell (13:15):
“We use Service Titan to what we can. But the tracking, the dashboards are pretty cool.”
Proper utilization of such platforms can provide critical insights into business performance, allowing for data-driven decision-making.
Maintaining Customer-Centric Operations
A cornerstone of Mountain West HVAC’s success is its unwavering commitment to exceptional customer service.
- Customer Service Philosophy:
Andrew Morrell (19:35):
“...make that connection with the customer... treat people right... accountability, customer service.”
By prioritizing customer satisfaction and building trust, the company fosters loyalty and generates consistent referrals, fueling sustained growth.
Continuous Learning and Adaptation
Andrew’s journey underscores the importance of learning from experiences, whether successes or setbacks, and adapting strategies accordingly.
- Adaptation and Learning:
Andrew Morrell (48:38):
“We started with some Angie’s and we actually sold two installs off of Angie... we messed up with Google Ads.”
Acknowledging and learning from failures have been instrumental in refining marketing strategies and operational processes.
Conclusion
In this episode, Andrew Morrell offers a captivating narrative of resilience, strategic planning, and adaptive leadership that transformed Mountain West HVAC from a modest startup into a thriving $6 million business. Through strategic marketing partnerships, effective team building, and a relentless focus on customer satisfaction, Andrew exemplifies the essence of entrepreneurial success in the home service industry.
Listeners walking away from this episode will find practical strategies for scaling their businesses, the importance of delegating and building a solid team, and the value of maintaining a customer-first approach. Andrew’s story serves as both inspiration and a practical guide for aspiring business owners aiming to achieve similar success.
Notable Quotes:
-
Andrew Morrell (00:23):
“They've helped us drive best in class SEO, best in class PPC and dominate LSA and GMB marketing.” -
Andrew Morrell (08:11):
“That's how I learned. Hey, tell me what I'm doing the worst at and then I know where to go fix it.” -
John Wilson (47:34):
“I lead as my authentic self.” -
Andrew Morrell (52:42):
“Implementing a four-hour time window has been phenomenal.”
Connect with Andrew Morrell:
- Facebook: Andrew David
- LinkedIn: Andrew Morrell
For more information, visit www.ownedandoperated.com.