The Home Service Expert Podcast Episode: From Humble Beginnings to Business Success with Ismael Valdez
Host: Tommy Mello
Guest: Ismael Valdez, Founder and CEO of Next Gen Air Conditioning and Nuve
Release Date: June 16, 2025

Introduction

In this compelling episode of The Home Service Expert Podcast, host Tommy Mello engages in an in-depth conversation with Ismael Valdez, a powerhouse in the home service industry. Valdez shares his remarkable journey from humble beginnings to building a multi-million-dollar enterprise, offering valuable insights into leadership, scaling strategies, and the integration of innovative technologies like Nuve.

Early Beginnings and Journey

Ismael Valdez opens up about his modest start, immigrating to the United States from Mexico at the age of six. Raised in a hardworking household, Valdez credits his father's relentless work ethic as a foundational influence.

“My journey started at Howard Industry. I was there for seven years... I built a ton there. I think that's what gave me a kickstart into the industry.”
— Ismael Valdez [02:26]

Valdez's first significant venture, Home Comfort USA, rapidly grew to over $21 million in revenue with 162 employees in just four years. This early success set the stage for his next major endeavor, Next Gen Air Conditioning, which culminated in a successful exit in May 2022.

Leadership and Management Philosophy

Valdez emphasizes the importance of structured management systems for scaling a business. He highlights the necessity of maintaining profitability before considering expansion.

“You got to have a structured management system inside the operation that's producing profit in order for you to even think about adding a second trade or adding a second third location. It's hard, man.”
— Ismael Valdez [00:00]

He further discusses his unique approach to mentorship, preferring competitive partnerships over traditional mentor-mentee relationships. This competitive spirit, he argues, drives continuous improvement and success.

“I think what’s driven me... is I am super competitive to a level where, like, I look for brothers and I look for... companions that are going to be just as competitive.”
— Ismael Valdez [04:33]

Dealing with Private Equity

A significant portion of the discussion revolves around the role of private equity in the home service industry. Valdez provides a nuanced perspective, acknowledging both the benefits and potential pitfalls.

“Private equity's bad. The investors are always gonna get into every industry... they just thought blue collar guys were stupid.”
— Ismael Valdez [16:27]

He explains how private equity can bring in much-needed capital and expertise but cautions against partnerships with firms that may not align with the company's long-term vision or operational ethos.

“They can get revenue and profit. But I would say this... private equity's bad.”
— Ismael Valdez [16:27]

Scaling Strategies and Market Expansion

Valdez shares his strategic approach to scaling businesses, emphasizing the importance of owning your market and ensuring profitability before expanding. He recommends a revenue threshold of $20-25 million and a strong management structure as prerequisites for multi-location operations.

“You should be at least $20 million before even thinking about that.”
— Ismael Valdez [47:33]

He also discusses the challenges and strategies involved in entering new markets, advising against overexpansion without solid financial foundations.

“Most contractors think they own the market at 2 million... What are you doing?”
— Ismael Valdez [47:25]

Importance of Profit and Financial Management

Valdez underscores the critical role of profitability in sustaining and growing a business. He shares personal anecdotes about learning the importance of profit margins and sound financial practices.

“Profit is what saves you when you get sued or saves you a car accident or saves you from a slow season.”
— Ismael Valdez [14:21]

He advises contractors to focus on both revenue growth and maintaining healthy profit margins, highlighting the dangers of unchecked growth without financial discipline.

“When you’re smaller, you’re learning. Revenue is important. I mean, you want growth, but profits? What. Pay the bills, man.”
— Ismael Valdez [14:31]

Building a Winning Team and Company Culture

A key theme in the conversation is the significance of cultivating a dedicated and high-performing team. Valdez discusses his methods for recruiting top talent, fostering a positive company culture, and ensuring employee loyalty.

“The CEO, the operator, the guy, the guy with the vision is the most important part of the piece.”
— Tommy Mello [25:00]

Valdez emphasizes the value of equitable treatment, continuous training, and creating an environment where employees feel valued and motivated to excel.

“When you run these home warranty calls, don’t ask for anything. Go in and don’t treat rich people or poor people or white people or Mexican people. Everybody’s the same.”
— Ismael Valdez [37:06]

The Nuve Project and Innovation

Towards the end of the episode, Valdez delves into Nuve, his latest innovation in the HVAC industry. Nuve is described as a cutting-edge thermostat system that goes beyond traditional models by integrating advanced features like real-time monitoring, predictive maintenance, and customer-centric functionalities.

“We were able to start units from all over your cities and states, from your office. We were never able to do that.”
— Ismael Valdez [54:28]

He highlights Nuve's superior features compared to competitors like Nest, emphasizing its potential to revolutionize how contractors interact with customers and manage HVAC systems.

“We're developing this product faster than what most products are going to get developed to. People are already buying Echo Bees, Honeywell's and Google's for $200, $250. Ours is priced around the same, but it has so many features...”
— Ismael Valdez [55:12]

Closing Thoughts and Personal Insights

In the final segments, both Valdez and Mello reflect on the importance of legacy, family, and continuous growth. Valdez shares his aspirations to balance business success with personal fulfillment, emphasizing the role of mentorship and community in achieving long-term goals.

“I want to be great at sales. I want to be a great leader. I want to be a great father... when I run these home warranty calls...”
— Ismael Valdez [44:05]

Mello echoes these sentiments, highlighting the value of accountability groups and supportive networks in driving success.

“The best part about the group that we have... nobody’s looking for anything from you... We’re all just looking to help each other win.”
— Tommy Mello [57:22]

Conclusion

This episode of The Home Service Expert Podcast offers a wealth of knowledge for entrepreneurs in the home service industry. Ismael Valdez's journey from humble beginnings to leading innovative ventures provides actionable insights into effective leadership, strategic scaling, and the integration of technology in traditional service businesses. Listeners are encouraged to apply these lessons to build resilient and profitable enterprises.

Notable Quotes:

• Ismael Valdez [00:00]: “You got to have a structured management system inside the operation that's producing profit in order for you to even think about adding a second trade or adding a second third location. It's hard, man.”

• Tommy Mello [25:00]: “The CEO, the operator, the guy, the guy with the vision is the most important part of the piece.”

• Ismael Valdez [14:21]: “Profit is what saves you when you get sued or saves you a car accident or saves you from a slow season.”

• Ismael Valdez [54:28]: “We're developing this product faster than what most products are going to get developed to. People are already buying Echo Bees, Honeywell's and Google's for $200, $250. Ours is priced around the same, but it has so many features...”

• Tommy Mello [57:22]: “The best part about the group that we have... nobody’s looking for anything from you... We’re all just looking to help each other win.”

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