Owned and Operated - Episode #195: From Zero to $10 Million Cold Calling
Podcast Information:
- Title: Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
- Hosts: John Wilson and Jack Carr
- Episode: #195 The From Zero to 10 Million Cold Calling
- Release Date: May 9, 2025
Introduction
In Episode #195 of "Owned and Operated," hosts John Wilson and Jack Carr delve into the relentless world of cold calling, showcasing how persistence and strategic approaches can transform home service businesses. The episode features a candid conversation with Elias Yousef, a young entrepreneur who recently acquired his first plumbing business in Denver, Colorado. Elias shares his journey from initial struggles to achieving significant growth through cold calling and innovative acquisition strategies.
Background of Elias Yousef
Elias Yousef introduces himself as a 24-year-old entrepreneur with a background in sales and real estate. His journey into business acquisition began at 21 when he decided to leave his job selling appliances in Phoenix, Arizona, driven by a passion for entrepreneurship and inspired by Warren Buffett's biographies.
Notable Quote:
"When I was 21, I was selling appliances... I wanted to pounce on it." [00:36]
Elias's first acquisition was an assisted living facility in Phoenix, which he eventually sold due to a lack of passion for the healthcare sector. This experience taught him the importance of finding the right industry fit and the challenges of business acquisitions.
The Power of Cold Calling in Acquisitions
Elias emphasizes cold calling as the cornerstone of his acquisition strategy. He made over 2,000 calls, demonstrating unparalleled tenacity in reaching out to potential sellers.
Notable Quotes:
"If there's one thing that moves the needle for me the most, it's cold calling." [00:20]
"You have to do what's necessary. You have to just do what's necessary." [11:32]
Jack complements Elias's approach, highlighting that cold calling is a significant indicator of success due to the high rejection rates most people abandon early.
Connecting with Industry Leaders
Elias recounts his journey to connect with seasoned operators, leading him to Jim Probst of George Brazil, a prominent name in Phoenix with a 40,000-square-foot office and over 250 employees. Under Jim's mentorship, Elias learned critical business operations and the realities of running a home service company.
Notable Quote:
"Jim has taught me everything that I know about this business." [08:19]
Elias also tapped into John Wilson and Jack Carr's network, connecting with Nathan Lindley from Texas, further enhancing his credibility and operational expertise.
Challenges in Cold Calling and Acquisitions
Elias discusses the grueling nature of cold calling, where the majority of calls result in rejection. He outlines the conversion rates, explaining that out of hundreds of calls, only a small fraction leads to viable deals.
Notable Quote:
"For every hundred conversations, maybe 90 or 95 will say no." [17:43]
He distinguishes between "suspects" and "prospects," emphasizing the importance of identifying highly motivated sellers willing to sell their businesses despite poor financial performance.
Case Study: Acquisition of Hot Water Now
Elias details his first major acquisition of Hot Water Now, a water heater-focused company in Colorado. Initially perceiving the business as financially unstable, Elias negotiated a creative deal structure to mitigate risk.
Key Points:
- Deal Structure: Elias entered a management services agreement, gaining operational control without immediate ownership. This allowed him to manage and improve the business while retaining the option to purchase it based on future performance.
- Operational Turnaround: By eliminating unnecessary expenses, restructuring payroll, and incentivizing employees, Elias turned the business around within a month, moving it into profitability.
Notable Quotes:
"I have a lot of pressure on me for my team, but that's what I enjoy." [34:15]
"This is somebody that's motivated... it's attractive monetarily once you get in and you actually operate the business." [21:07]
Jack praises Elias's innovative deal-making, noting the absence of personal financial risk, which is a common pitfall for many entrepreneurs.
Lessons Learned and Strategic Insights
Elias shares valuable insights into the fragmented nature of the home services industry, where many small contractors struggle with business management despite technical expertise.
Key Lessons:
- Importance of Systems: Successful scaling relies on implementing robust systems rather than relying solely on the owner's efforts.
- Team Building: Surrounding oneself with experienced operators is crucial for sustainable growth.
- Volume and Persistence: Achieving success in acquisitions demands high call volumes and unwavering persistence.
Notable Quotes:
"Who's on the bus is infinitely more important than where the bus is going." [15:58]
"It takes a lot of volume." [17:24]
Future Plans and Ambitions
Looking ahead, Elias aims to scale his business portfolio to $10 million by the end of the year and ambitiously sets sights on $27 million the following year. He plans to continue acquisitions while also exploring organic growth through execution and expanding into new markets.
Notable Quotes:
"The goal is to get to $10 million by the end of the year and then $27 million by the next year." [33:29]
"There's a million ways to do it. One of the things I've been thinking about is maybe we grow to a certain scale where we get to 20, 30 million and then break into a new market." [37:45]
Elias underscores the necessity of balancing acquisitions with organic growth and maintaining operational efficiency to sustain profitability at larger scales.
Advice for Aspiring Entrepreneurs
Elias offers actionable advice for those looking to enter the business acquisition space:
- Find Mentors: Seek guidance from experienced operators who have achieved the success you aspire to.
- Be Persistent: Embrace rejection as part of the process and maintain a high volume of outreach.
- Build a Strong Team: Surround yourself with knowledgeable partners to enhance credibility and operational capacity.
- Focus on Execution: Prioritize executing the basics of business operations to drive growth and profitability.
Notable Quote:
"If your goal in life is to be the best chef you could ever find, go find a Michelin star chef and train and learn from them." [34:58]
Conclusion
Episode #195 of "Owned and Operated" provides a compelling narrative of Elias Yousef's journey from a novice cold caller to a successful business acquirer in the home services industry. His experiences highlight the critical role of persistence, strategic networking, and innovative deal structuring in achieving entrepreneurial success. Elias's story serves as an inspiring blueprint for aspiring entrepreneurs aiming to scale their businesses through acquisitions.
Connect with Elias Yousef:
- LinkedIn: Elias Yousef
- Parent Company: Frost and Flow (active in the Colorado market)
Additional Resources:
- Visit www.ownedandoperated.com for more information.
- Follow John Wilson and Jack Carr on LinkedIn and other social platforms to stay updated with the latest episodes and business insights.
Thank you for listening to "Owned and Operated." Leave us a five-star review on your favorite podcast platform and share your thoughts with us at email@owned&operated.com.