Owned and Operated - Episode #208: The Mindset Taking This Plumbing Company to the Top

Host: John Wilson
Guest: Dalton Hatch, DH Plumbing, San Antonio
Release Date: June 10, 2025

Introduction

In Episode #208 of the Owned and Operated podcast, host John Wilson welcomes Dalton Hatch from DH Plumbing in San Antonio. This episode delves deep into Dalton’s personal and professional journey, exploring the mindset shifts and strategies that have propelled his plumbing business to new heights.

Guest Background and Early Struggles

Dalton Hatch opens up about his tumultuous early years, sharing a poignant moment when he was on the brink of financial collapse:

Dalton Hatch [00:00]: "One in the morning, I'm standing in my shop and I'm like, so crying. Like, I got four, five mouths to feed. I got no, I'm down to like my last 500 bucks. I got a mortgage. Like, all the pressure, right."

Dalton reflects on his initial challenges, including personal struggles with addiction and a strained marriage. He emphasizes how these hardships nearly led him to mock his faith but ultimately redirected his path:

Dalton Hatch [03:20]: "Man, it ain't me. Like, like, I told you, I'm Christian. It's God. Like, God saved my life a year ago. And, dude, we've been, like, so blessed..."

Turning Point: Embracing Faith and Business Growth

Dalton credits his turnaround to embracing his Christian faith and his focus on genuine customer care over aggressive sales tactics:

Dalton Hatch [05:39]: "Giving my company to God. He's the owner, I'm just the guy that asks him what to do. And he has been leading us down a wild path of success and growth."

He contrasts his approach with typical sales-driven methods, advocating for honesty and integrity in client interactions:

Dalton Hatch [05:39]: "We don't put sales as the most important thing. Like, we just take really good care of people... I'm not going to go to your house for a toilet flapper without putting a sewer camera down your clean out. Be like, you need a new sewer line. That's sleazy stuff."

Business Operations and Team Structure

Dalton provides an overview of DH Plumbing’s operations, highlighting a lean yet efficient team focused primarily on residential services:

• Team Members:
  • Dalton Hatch – Owner and Superintendent
  • Walter – Journeyman
  • Matt – Tradesman
  • Andrea – Office Manager and Admin
  • Stacy – Customer Service Representative (CSR)

Dalton Hatch [16:38]: "We're doing mostly residential service... We don't do new construction or remodels because those jobs can be hard to make money on due to return trips."

Dalton discusses the importance of a strong support system within the company, including effective communication and leadership:

Dalton Hatch [59:50]: "Communication is huge. We have a company group chat where my guys communicate throughout the day, offering help and coordinating tasks."

Growth Challenges and Mindset

A significant portion of the conversation revolves around the challenges of scaling a business while maintaining a healthy work-life balance and company culture. Dalton shares his anxiety about rapid growth and the critical decision to hire additional staff:

Dalton Hatch [78:44]: "I need to find a guy that can capitalize on those leads because the two guys I have can close 90 to 100% of their leads."

He emphasizes the need for intentionality in business decisions, particularly regarding financial management and marketing investments:

Dalton Hatch [38:11]: "Be intentional with your money, be intentional with your time... intentionality is huge."

Dalton also touches on the psychological aspects of business ownership, including stress management and coping with vulnerability:

Dalton Hatch [80:01]: "Dealing with overwhelming emotion, no matter what the emotion is, is, in my opinion, the hardest part of a business."

Marketing Strategies and Financial Management

Dalton outlines DH Plumbing’s marketing strategies, focusing on a mix of PPC, SEO, local billboards, yard signs, and community involvement:

Dalton Hatch [66:34]: "We invest in PPC, SEO, local billboards, and yard signs. Recently, we've also started leveraging TikTok for social media marketing."

He discusses the importance of accurate financial reporting and budgeting, highlighting his journey to achieve reliable P&L statements:

Dalton Hatch [48:15]: "We finally have an accurate P&L, which has been incredibly comforting and has allowed us to make informed decisions about growth and investments."

Dalton also shares insights on lead generation and conversion rates, emphasizing the necessity of driving quality leads to support business expansion:

Dalton Hatch [50:35]: "Our booking rate is between 67-78%, which is solid. Knowing our numbers helps us make confident growth decisions."

Advice for Aspiring Home Service Entrepreneurs

Dalton offers valuable advice for those looking to start or grow their home service businesses:

1. Be Intentional:

   "Be intentional with your money, time, and marketing. Study your business as diligently as you would study something else you're passionate about."

2. Focus on Customer Care:

   "Take really good care of your customers. Provide honest assessments and avoid sleazy sales tactics."

3. Learn from Others:

   "Follow and learn from experienced entrepreneurs in your industry. Implement proven strategies to avoid common pitfalls."

4. Maintain a Strong Company Culture:

   "Facilitate a positive culture by knowing your team members, providing regular feedback, and fostering an environment of accountability."

5. Avoid Comparing Yourself to Larger Competitors:

   "Don’t compare yourself to bigger companies. Focus on what works for your specific market and stay true to your business values."

6. Invest in Accurate Financial Management:

   "Ensure your financials are accurate and up-to-date. This transparency allows for better-informed business decisions."

Dalton also stresses the importance of avoiding unnecessary expenses and focusing on what truly drives business growth, such as effective marketing and investing in quality leads.

Conclusion and Key Takeaways

Dalton Hatch’s journey with DH Plumbing is a testament to the power of mindset, intentionality, and genuine customer care in building a successful home service business. His transition from personal struggles to business success underscores the importance of faith, resilience, and a customer-centric approach. Key takeaways from this episode include:

• Mindset is Paramount: Embracing challenges and maintaining a positive outlook can significantly impact business success.
• Intentional Growth: Strategic planning and intentional decision-making are crucial for sustainable growth.
• Customer Care Over Aggressive Sales: Prioritizing honest and genuine customer interactions fosters long-term loyalty and business reputation.
• Accurate Financial Management: Reliable financial data is essential for making informed growth decisions.
• Strong Company Culture: Building and maintaining a positive team culture enhances employee satisfaction and productivity.

Dalton’s insights provide a roadmap for other entrepreneurs in the home service industry, emphasizing that success is not just about aggressive growth but about building a resilient, customer-focused, and well-managed business.

Notable Quotes:

• Dalton Hatch [05:39]: "Giving my company to God. He's the owner, I'm just the guy that asks him what to do."
• Dalton Hatch [38:11]: "Be intentional with your money, be intentional with your time... intentionality is huge."
• Dalton Hatch [80:01]: "Dealing with overwhelming emotion, no matter what the emotion is, is, in my opinion, the hardest part of a business."
• Dalton Hatch [50:35]: "Our booking rate is between 67-78%, which is solid. Knowing our numbers helps us make confident growth decisions."

For more insights and actionable advice on growing your plumbing, electrical, or HVAC business, visit www.ownedandoperated.com.