Episode Summary: "How Scaling with Tech Made Him Millions (60+ Companies Later)" | Michael Byars | EP 67
Podcast Title: The Entrepreneur DNA
Host: Justin Colby, Bleav
Guest: Michael Byars, Acquisition CEO
Release Date: April 14, 2025
Introduction
In Episode 67 of The Entrepreneur DNA, host Justin Colby welcomes Michael Byars, a seasoned entrepreneur renowned for acquiring and scaling over 60 companies, successfully selling 20 of them. The episode delves into Michael’s expertise in leveraging technology to achieve exponential business growth, the philosophies behind effective scaling, and practical insights for entrepreneurs aiming to elevate their ventures.
The Foundation of Scaling with Technology
Understanding the Starting Point
Michael emphasizes the importance of assessing a business’s current state before implementing scaling strategies. He states, “I like boring, profitable stuff that I know I can scale going into with tech” (02:00). This approach involves identifying businesses with outdated technology or inefficient operations that can benefit significantly from technological enhancements.
The Role of Technology in Scaling
Michael shares his philosophy on technology, clarifying common misconceptions. He asserts, “Technology is never going to replace good workers, good employees or good entrepreneurs” (04:30). Instead, technology serves to enhance efficiency by automating mundane tasks, allowing employees to focus on revenue-generating activities.
Notable Quote:
“Technology can improve a lot of things in our day to day life... it never has to leave early, doesn’t need the weekend off.” — Michael Byars (04:11)
Identifying Scalable Verticals
Focus on Service-Based Industries
Michael identifies service-based businesses, such as plumbing, HVAC, roofing, and flooring, as prime candidates for scaling through technology. He highlights that these businesses often excel in their trade but lack the operational efficiency to expand.
Notable Quote:
“A lot of times the service based industry, they're really good at their trade, but they're not really good at running a business or implementing technology.” — Michael Byars (06:51)
Acquisition Strategies
Michael discusses his acquisition strategy, which involves purchasing businesses that are profitable and have the potential for growth through technology integration. He mentions using various financing methods, including owner financing, creative finance deals, and equity partnerships, to facilitate these acquisitions.
Notable Quote:
“It's not always, you know, owner finance, creative finance. Sometimes I'll write a check for it... there's just a ton of different options.” — Michael Byars (07:21)
Implementing Technology for Growth
Operational Efficiency
The core of Michael’s strategy revolves around enhancing operational efficiency. By integrating technology, he can scale businesses without a proportional increase in expenses, particularly labor costs.
Notable Quote:
“I'm taking and 2, 3, 4x these companies that I'm buying with the same amount of employees. I don't have to go hire more employees.” — Michael Byars (16:33)
Technology in Sales and Marketing
Michael elaborates on the application of technology in sales processes. He explains how chatbots and automated appointment setters can handle initial customer interactions, qualify leads, and schedule appointments, thereby freeing up sales teams to focus on closing deals.
Notable Quote:
“If I can answer all those at 2:00 in the morning while they're sitting on their couch... I can set an appointment with a salesperson or an estimator.” — Michael Byars (28:55)
Standard Operating Procedures (SOPs)
A critical aspect of scaling is the establishment of robust SOPs. Michael emphasizes the necessity of having clear procedures to ensure business continuity, especially when key personnel are unavailable.
Notable Quote:
“If little Bobby that's running the place, if he gets hit by a bus in the morning, how are we going to replace him?” — Michael Byars (18:22)
Philosophies on Scaling and Growth
Debunking Myths about Scaling
Michael and Justin discuss common misconceptions about scaling, particularly the notion that scaling equates to reduced workload or more leisure time. They clarify that scaling requires significant effort and continuous involvement from the entrepreneur.
Notable Quote:
“Scaling isn't this idealistic. Like, I'm gonna go sit on the beach at some point when you're Elon Musk. Even him, by the way, is not a good example. That guy works probably harder than all of us combined.” — Justin Colby (21:02)
The Importance of Owner Engagement
Both speakers agree that entrepreneurs must remain actively involved in their businesses to ensure sustained growth. They caution against stepping back too much, which can lead to loss of business culture and operational inefficiencies.
Notable Quote:
“You are the culture creator as the founder of this company, and if you remove yourself out of that culture, what's going to happen?” — Justin Colby (21:25)
Common Pitfalls in Scaling Without Expert Guidance
Overworking Without Leverage
Michael identifies a frequent challenge where entrepreneurs are "stuck in the business," working endless hours without effectively leveraging resources or technology to propel growth.
Notable Quote:
“They’re working 80 hours a week... they can't go any further because there's not any more hours in the day or the week.” — Michael Byars (25:56)
Lack of Technological Integration
Businesses that attempt to scale without integrating appropriate technology often struggle with inefficiencies and cannot sustain growth. Michael highlights the critical role of technology in replacing repetitive tasks and optimizing operations.
Practical Steps for Entrepreneurs to Scale Effectively
Audit and Optimize
Michael advises entrepreneurs to conduct thorough audits of their businesses, focusing on financial health, technological infrastructure, and operational procedures.
Steps Include:
- Financial Transparency: Ensuring all cash flows are visible and accurate.
- Technological Assessment: Identifying areas where technology can replace or enhance existing processes.
- SOP Development: Creating comprehensive standard operating procedures to maintain consistency.
Leveraging Technology
Implementing technology should be strategic, targeting areas that offer the highest return on investment, such as automating administrative tasks, improving customer interactions, and enhancing lead generation.
Notable Quote:
“Technology is never going to go change your air conditioning unit if it quits. So, you know, technology is going to improve our everyday human experience.” — Michael Byars (04:30)
Building a Strong Team
While technology plays a crucial role, having the right team is equally important. Michael emphasizes hiring individuals who excel in areas beyond the entrepreneur’s expertise and who can drive different facets of the business forward.
Notable Quote:
“You got to hire people in those other fields that you either don't like or you don't know as much about.” — Justin Colby (25:07)
Conclusion and Final Thoughts
Justin and Michael conclude the episode by reinforcing the idea that scaling a business is a multifaceted endeavor requiring both technological integration and active entrepreneurial involvement. Michael encourages listeners to reach out via Facebook or his website, acquisitionceo.com, for consulting services aimed at growing and scaling businesses effectively.
Closing Quote:
“Technology is going to allow you to buy back some of your time, which is the goal.” — Michael Byars (20:24)
Timecodes Reference
- 02:00: Michael introduces his approach to scaling businesses with tech.
- 04:11: Michael discusses the impact of technology on daily operations.
- 04:30: Clarification on what technology can and cannot replace.
- 06:51: Identifying scalable verticals in service-based industries.
- 07:21: Discussion on various acquisition financing strategies.
- 16:33: Efficiency gains through technology without increasing workforce.
- 18:22: Importance of SOPs and business continuity.
- 21:02: Debunking myths about scaling leading to reduced workload.
- 21:25: The critical role of the owner in maintaining business culture.
- 25:56: Challenges of overworking without leveraging technology.
- 28:55: Implementing chatbots and automated appointment setters.
- 32:45: Final thoughts on technology's role in freeing up time.
- 20:24: Technology as a means to reclaim entrepreneurial time.
This episode serves as a comprehensive guide for entrepreneurs seeking to scale their businesses through strategic technological integration and efficient operational practices. Michael Byars' insights offer actionable strategies to overcome common scaling challenges, ensuring sustainable growth and profitability.