Summary of "Building a Business That Thrives Without You" with Mike Andes

The Home Service Expert Podcast, hosted by Tommy Mello, features an insightful discussion with Mike Andes, a renowned entrepreneur in the landscaping and home services industry. Released on March 28, 2025, this episode delves deep into essential business strategies, franchising challenges, systematization, pay-for-performance models, leadership, growth tactics, discipline, and the unique hurdles faced by young entrepreneurs. The conversation offers valuable lessons for home service entrepreneurs aiming to scale their businesses sustainably.

Introduction and Background

The episode commences with Mike Andes reflecting on career planning and long-term commitment:

Mike Andes [00:00]: "Think of your career in 10 year swings... if you actually committed yourself for 10 years... you would have learned so much more and gone so much deeper in that industry."

Tommy Mello introduces Mike, highlighting his success with Augusta Lawn Care and Anytime Fitness, alongside his own podcast, the Home Service Millionaire Podcast. Mike shares his entrepreneurial journey, starting Augusta Lawn Care at 18 after leaving medical school and franchising the business within five years.

Franchising in Home Services

Mike provides a candid perspective on franchising:

Mike Andes [03:34]: "If you're doing it just for the money, usually it's actually not the best and fastest route to money."

He emphasizes that franchising requires more than financial motivation—system robustness and extensive training are crucial. Mike warns that out of over 400 new franchises started annually in the U.S., fewer than six achieve 100 locations, highlighting the industry's high failure rate.

Tommy concurs, noting the complexity of franchising:

Tommy Mello [05:54]: "You're no longer in the landscaping business. You're in the turnkey business."

Mike discusses his strategy to make franchises "dummy proof" by standardizing successful practices from the top 20% franchisees to ensure consistent performance across all locations. This approach aims to alleviate the challenges of training and maintaining quality control in a rapidly expanding system.

Building Systems and Process

A turning point in Mike’s career was a personal accident that exposed the vulnerabilities of a personality-dependent business:

Mike Andes [13:53]: "I realized that the business was personality dependent and not system centric."

While recovering in the hospital, Mike recognized the necessity of implementing robust systems. This realization led him to create a landscape business course and produce instructional videos, focusing on systematization to ensure the business could operate independently of his presence.

Tommy shares his experiences with systematization, illustrating how standardized procedures enhance efficiency and scalability:

Tommy Mello [17:40]: "We service 20,000 homes a month because we built these processes... there's a process for everything."

Pay for Performance (P4P)

The conversation shifts to compensation models, with Mike discussing the complexities of implementing Pay for Performance:

Mike Andes [29:04]: "There’s always a reason why you can’t do it. But is it just laziness?"

Tommy offers practical advice on introducing P4P, suggesting starting with a single key employee to pilot the system before broader implementation:

Tommy Mello [30:53]: "Start out with one guy, the most important person... Once he's making more money, but you know you're making more money..."

Mike emphasizes aligning compensation with business ownership principles, advocating for open-book management to foster a sense of ownership and accountability among employees.

Discipline and Leadership

Tommy and Mike explore the importance of discipline in personal and professional growth. Tommy emphasizes that discipline surpasses motivation in sustaining long-term success:

Tommy Mello [39:31]: "Discipline is discipline with consistency... how do you apply discipline in your life?"

Mike relates discipline to delayed gratification, stressing the need to prioritize long-term goals over immediate pleasures:

Mike Andes [40:12]: "It’s like, what do you value more, the temporary pleasure or your goals?"

They discuss strategies to cultivate discipline, such as setting specific, measurable, attainable, realistic, and time-bound (SMART) goals and creating systems that support disciplined behavior.

Growth and Profitability

Balancing growth with profitability is highlighted as a critical challenge. Mike advocates for maintaining healthy profit margins even during expansion:

Mike Andes [51:40]: "I'd rather have a 49% margin business than running a 10% margin business, but being five times larger."

Tommy advises entrepreneurs to establish a minimum profit margin during growth phases to ensure business sustainability and enhance enterprise value:

Tommy Mello [52:00]: "If you're into growth, don't ever fall below 10% profit. Don't ever fall if you fall below 10%."

They discuss the importance of strategic pricing, efficient operations, and avoiding the pitfalls of perpetual growth without adequate profitability.

Challenges as a Young Entrepreneur

Mike shares his experiences navigating the biases associated with youth in entrepreneurship:

Mike Andes [53:53]: "If you're really young, sometimes it's easy to default to the age thing."

He underscores the significance of surrounding oneself with supportive influences and the necessity of sometimes breaking away from limiting social circles to achieve entrepreneurial goals.

Tommy adds that humility and a continuous learning mindset are vital for overcoming these challenges:

Tommy Mello [55:16]: "I have a lot of consultants... I need mentoring all the time."

Mike praises Tommy’s dedication to personal growth and mentorship, reinforcing the value of learning from others regardless of one’s own success.

Book Recommendations and Final Insights

Mike recommends "Made in America" by Sam Walton for its practical business ethos and strategic thinking:

Mike Andes [56:41]: "Like, he’d fly in his plane around and just look for traffic patterns of where to put a Walmart."

Tommy and Mike conclude by emphasizing the continuous pursuit of knowledge, mentorship, and the application of disciplined strategies to build and sustain a successful business.

Mike commends Tommy’s personal and professional growth over the years:

Mike Andes [57:37]: "The man I met three years ago... is different than I see today."

Tommy emphasizes the importance of maintaining a learner’s mindset and the benefits of surrounding oneself with knowledgeable mentors.

Conclusion

This episode of The Home Service Expert Podcast offers a comprehensive exploration of what it takes to build a resilient and scalable home service business. Through Mike Andes’s experiences and insights, listeners gain valuable knowledge on franchising wisely, implementing robust systems, fostering disciplined leadership, balancing growth with profitability, and overcoming the unique challenges of young entrepreneurship. The conversation underscores the importance of strategic planning, continuous learning, and disciplined execution in achieving long-term business success.

Notable Quotes:

• Mike Andes [00:00]: "Think of your career in 10 year swings... you would have learned so much more and gone so much deeper in that industry."
• Mike Andes [03:34]: "If you're doing it just for the money, usually it's actually not the best and fastest route to money."
• Mike Andes [13:53]: "I realized that the business was personality dependent and not system centric."
• Mike Andes [29:04]: "There’s always a reason why you can’t do it. But is it just laziness?"
• Tommy Mello [39:31]: "Discipline is discipline with consistency... how do you apply discipline in your life?"
• Mike Andes [40:12]: "It’s like, what do you value more, the temporary pleasure or your goals?"
• Mike Andes [51:40]: "I'd rather have a 49% margin business than running a 10% margin business, but being five times larger."
• Mike Andes [53:53]: "If you're really young, sometimes it's easy to default to the age thing."
• Mike Andes [56:41]: "Like, he’d fly in his plane around and just look for traffic patterns of where to put a Walmart."

These quotes encapsulate the core themes discussed, offering listeners memorable insights to reflect upon and implement in their own businesses.