← Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
Owned and Operated - A Plumbing, Electrical, and HVAC Business Growth Podcast
If I Had to Start a Home Service Business From $0, Here’s Exactly What I'd Do
00:12:30
Loading summary
Transcript1 lines
- [00:00]
A
You're launching your own business from $0. Most people waste months on the wrong stuff. Hey, I'm gonna spend a month on my name and my logo and my mission statement. Well, who cares? As you're launching, you don't need to be the plumber. We're here to drive revenue. This is a simple game, but that doesn't mean that it's easy. This is success or failure. My name is John Wilson, and I'm the CEO of a $40 million home service company in Ohio. And today we're going to be diving into. If I had to restart the $0 in 2026, how would I do it? How do I think about it? And how would we build a meaningful business? Most people that I know starting home service businesses today are approaching it fundamentally wrong. It reminds me a lot of the book E Myth Revisited, where this individual loved baking cakes, so they decided to launch a bakery. One day, they found out that running a bakery is very different than baking cakes. You have to know how to invoice, how to price, how to purchase and hire and grow and manage accounting and marketing. And there's more than just baking the cake. And most people in home service, I. I see, make the same mistake. I'm good at plumbing. I'm good at H Vac. Why must be good at running a business. Most people waste months on the wrong stuff. They spend months trying to figure out the name and the logo and the colors when none of that actually matters. The purpose of a business is to drive revenue. You have to get a customer and you have to convert that customer into money. You have to sell them something. And the longer people wait to sort of make that leap, the more likely it is that they are going to fail. I've seen a ton of young entrepreneurs early on in their journey, spend three to four to six months designing this perfect website and the perfect office, and then they finally open and crickets. People have a if they will build it, they will come mentality, and that is always wrong. First, we need to pick the right game. Where is this business going to be and what is this business going to do? And that is a really important distinction. Inside Home Service. There's a funny conversation happening on our podcast right now where some of the fastest growing businesses are actually the more rural. So the plumbing company that's in a small town might be growing faster than the plumbing company in a giant town because there's less competition in that geography. So what we're looking for as we do our research is a couple different things. One who am I competing against? If you're in plumbing, H VAC and electric, you're competing against some of the most sophisticated operators out there with billion dollar budgets because they're private equity. If you're in painting, you're not. So think about the game you're playing and who your opponents are, because those are the people that you're going to be competing against when you go to hire talent, when you go to market for new customers, and as you're trying to grow your business, they are who is going to stop you. You want to look for something that has a lot of demand, weak competition, and is generally underserved. So that used to be plumbing, H Vac. There was a lot of competition. It was what's called fragmented. A competitive advantage could just be picking up the phone for the first time. There's a lot of demand because it's essential this stuff doesn't go away. There's demand for this service, people want it, people need it. And underserved is geographically. How many H Vac companies are in your city, how many plumbing companies are in your city, how many asphalt companies or how many concrete leveling companies or any other service, fencing, painting, roofing, damage, mitigation. There's so many ways to solve this. How many are you competing against? A few years ago we were building our excavation business and what was really funny to us is that there was no competition for excavation and the cost for a lead in plumbing was $85 a lead, but the cost for lead for excavation and excavating a drain specifically still kind of plumbing was $7. Because there was no sophisticated competition. We were competing against people that were not professionalized, so they couldn't pick up the phone. They didn't even need leads or want leads or didn't know how to do it. And it made for a very easy few years of just collecting market share. Some examples of some highly competitive services are H vac, plumbing, electrical. Some examples of some less competitive service would be drain cleaning, turf, septic, concrete, concrete leveling, power washing or duct cleaning. They're kind of adjacent to those very competitive ones. There's still an ever present need. It's underserved and there's probably weak competition. If there is competition, they're not very sophisticated. So you can come in and win. The way to think about this is that the right market and the right service makes this 10 times easier. If you are competing against unsophisticated competition and you are out delivering, you will win 10 out of 10 times. Step two is getting the right operator. Now, the right operator is not equipment, it's not tools, it's not the oven for the bakery. The right operator is the person on the team who's going to help you build this business or the person in the trenches that's going to do the work. If we're building the bakery and I'm not a baker, I need to go hire a baker. If I'm building a plumbing company and I'm not a plumber, I need to go hire a plumber. Someone has to be focused on the business, and someone has to be focused on the tactical trade that you are performing every day. Someone has to figure out the marketing, the sales, the accounting, the hiring, and the HR structures that form a business. The important thing to hit here is as you're launching, you don't need to be the plumber. Early on, when I bought the business 10 years ago, I was determined that the business should be able to run without me. I was kind of obsessed with this idea that if I became too important to the business, the business would never grow. I read e myth Revisited and I really absorbed that idea that I couldn't be the baker, I couldn't be the H vac tech. I had to let the business grow without me being the mechanical expert that held it back. Hundreds of employees later, tens of millions of dollars later, none of that would have happened if I was the mechanical expert. That had to touch every job that we got into. I had to learn how to hire people that were more talented at me at nearly every discipline, including the trade itself, plumbing. I had to hire better plumbers. I had to hire better electricians. I had to hire better people in accounting and marketing and leaders as we continued to grow. But you have to start as early as you can with this obsession that you are business. You are not the plumber. Now, some days you might have to. Some days you might have to go out in the field and help to progress things. Sometimes you're the CEO and sometimes you're the chief janitor. That's just the nature of building a small business over a long period of time. This obsession that this business will outgrow you individually is an important piece of the puzzle. The point I'm driving home here is the service that your business performs is maybe only 1/7 of of the actual business of what you're doing. We have accounting, hr, marketing, call center, sales, warehouse, and finally the trade itself. There's a lot going on when you're building a business, and someone has to focus on the business of the business and someone has to focus on the trade and make sure that you are equipped to bring that person on as soon as possible and hire for your weaknesses. As the business grew, something that really helped us to understand what's our real business. There's an old story of Ray Kroc, which was the founder of the McDonald's franchise and he said, hey, we're not actually in the burger business. We are in the real estate business. And that was an important part of how McDonald's functioned. As someone that owns a home service business, it's easy to think that you're in the lawn care business or the roofing business or whatever it is, but. But the real reality is that you are actually in the marketing and sales business. You are there to marketing machine that can drive an ever increasing amount of leads to your sales team and then you are there to sell those leads as the real business that you're in. Same as Ray Kroc wasn't in the hamburger business, but the real estate business. Step three is get customers. We go back to the beginning. This is where people always kind of forget that this part actually has to happen. Hey, I'm going to spend a month on my name and my logo and my mission statement, well, who cares? Someone has to pay for your thing, someone has to need your thing. And then someone has to be willing to pay you to solve it. And you have to focus on that from day one. There's a lot of different philosophies. Some of it's how you're being funded, some of it's not for the sake of this video. I'm assuming that you are self funding this project. You're launching your own business from $0 and we have to drive revenue as soon as humanly possible. Now there's a lot of different ways to do this, starting with no dollars and then we'll hit some more dollars. No dollars. Canvassing doesn't take much money. I was launching a power Washington landscaping, tree trimming, whatever it is. Canvassing would be a hell of a thing to start. You can get out there every day. You can knock on doors. For every hundred doors you'll knock, you'll probably get five customers. It's a 5% hit rate and it took no money. You don't need perfect branding, you just need jobs. And that's something to really push into your core. Because that's what makes canvassing and cold calling and networking and reaching out to referrals the easiest and scrappiest thing to do. Because if, if we just Focus on what are we here to do? Well, we're here to drive revenue. And revenue creates investment. Investment does not create revenue. So as we're thinking about launching this business, we have to go drive revenue. So that way we can in the future invest into our branding, our website, our mission statement, our logo. All the other things can come downstream of revenue. One of the most important parts of getting customers, especially early, is you need something that you can control. You need to find a channel that you can scale. Now this is hard when you don't have money. But even when you do have money, it can be complicated too. Is it an influencer partnership? Is it meta ads? Is it Google? It can be complicated to find a channel that scales for you. And that's a part of why I like canvassing so much for that early business is because you have the full amount of control over that channel. You can choose to knock on 100 doors, you can choose to knock on 200 or you can choose to knock on 10 or none, but you have full control over the scalability of that channel. Whereas if you're starting to test money, or if you're starting to test paid ads like meta, you have a lot less control over whether they're going to work or not. And when you're on a shoestring budget, you probably can't afford for it to not work. If you're interested in seeing how a home service marketing business scales their marketing as they grow from 1:5 to $10 million, check out the video right here where we do that breakdown. Now, once you drive leads consistently and you have a channel that works, you pretty much have a business. Because no business in the world operates without leads. You need the lead in order to create the sale. And this is section four, which is what I would ignore early on. Subtitled, you don't need to look big, you just need to get paid. You don't need fancy branding, you don't need wrap trucks, you don't need a fancy website, you don't need to over hire and you definitely don't need too many services. You need to get a customer and then you need to get a sale. And that is as simple as businesses. And honestly, at $40 million with 200 some employees, it is still the same shit every day. We have to get in and get those leads. We now need 250 leads a day and we have to go out and we have to sell as many many of those 250 leads as we can and turn it into revenue. It is a never ending problem and as you scale your business it will be the problem that is always present. Always need more leads, you always need more sales. This is never something you're going to be able to take your eye off of, but especially when you're small, this is success or failure. Getting the lead is whether or not you're in business in a week. So focus on the things that matter, not your mission statement when you have no customers. Closing out this is a simple game, but that doesn't mean that it's easy. Launching a business is insanely hard. This business has taken everything I've had and more for the past decade of my life. It is not easy, but it is kind of simple. So if I was starting from zero today, I would be looking for the right market, I would be looking for the right service and I would be focusing on that lead as hard as I can. Thanks for checking us out and make sure you like and sub if you like what you heard, subscribe.