Podcast Summary: Wealth Hacks and Motivation for Entrepreneurs with Tom Howard
Podcast: The Home Service Expert
Host: Tommy Mello, $200M Founder
Guest: Tom Howard, VP of Customer Experience at ServiceTitan, Owner of Lee's Air
Date: October 20, 2025
Episode Overview
In this episode, Tommy Mello sits down with Tom Howard, a highly respected figure in the home service industry known for his operational prowess, M&A accomplishments, and people-focused leadership. Together, they dive deep into strategies for thriving amid industry disruption, wealth-building mindsets, turning around underperforming businesses, and leadership lessons for ambitious entrepreneurs. This episode is rich with practical insights, candid stories, and tactical advice pertinent to founders and operators alike.
Key Discussion Points & Insights
1. The Current Landscape: Disruption and Competition in Home Services
- Uncertainty is prevalent: Tom highlights how 2025-2026 is marked by technology shifts, especially AI, bringing both anxiety and opportunity.
"People are concerned about whether or not they're hopping on the right AI product... Are their competitors going to outrun them?" (02:35, Tom)
- Private Equity’s impact: Private equity (PE) is increasing competition, sometimes willing to operate on slim or zero profit for long-term positioning.
"There’s certain private equity companies willing to go to 0% profit... willing to undercut." (03:02, Tommy)
- Where small operators compete: Tom urges smaller companies to double down on grassroots, hyper-local branding and community presence—areas PE struggles to replicate.
"Fight with what you have now. You don’t need that director that wants to make all that money... Invest in yourself a lot." (07:19, Tom)
2. Wealth Creation, Market Cycles, and Compensation Trends
- Rising wealth expectations: Today, people in the trades and management expect rapid wealth and high pay, leading some companies to over-hire or overpay, causing high turnover.
- Advice for scaling: Get efficient, profitable, and strong at each stage ($5M, $10M, etc.) before adding layers of management. Invest profits to fuel the next step and avoid burnout or overextending.
"Don’t pretend like you’re going to grow to $10 million and then figure out how to start making a profit... You should be trying." (07:19, Tom)
- On rewarding staff: Performance pay plans can empower entry-level team members to earn six figures while remaining profitable.
"My lowest paid field installer last year... made $120,000 in Fresno. You should be...paying top dollar for people and get the best talent." (09:40, Tom)
3. Handling Setbacks, Goal Alignment, and Partnership Dynamics
- Weathering adversity: Tom explains how an unusually cold summer impacted results and triggered tension with his business partners over timing for a company sale.
"We had the coldest summer on record... We killed it in August... but underperformed in May, June, July." (12:09, Tom)
- Navigating partnership friction: Alignment on goals, timelines, and expectations is crucial—otherwise, you risk being seen as selfish in pursuit of your own agenda.
"Not everyone has the same mentality, not everyone has the same goals." (13:06, Tom)
4. Hiring, Key People, and Letting Go
- On critical hires: At different growth stages, different roles are pivotal. Tom recounts letting a star GM, Tyson, join ServiceTitan for his benefit—even at company cost.
"I realized Tyson had a better opportunity at ServiceTitan... I could never look at his wife and kids and think I stood in the way..." (15:35, Tom)
- Trusting your systems: No one person should be irreplaceable; organizations must invest in processes over personalities.
"You gotta trust in your own business acumen, and you can’t operate out of fear." (17:00, Tom)
5. Business Turnarounds: Howard’s Systematic Approach
The "Funnel" Method for Any Service Business:
- Leads → Booked Jobs (call booking rate) → Close Rate in Field (conversion) → Average Ticket → Profitability (P&L)
"I look at the funnel, I don’t care if it’s roofing, electrical, plumbing, pest control, birthday cake sales..." (21:22, Tom)
How He Turns Around Loss-Making Businesses:
- Identify and fix weaknesses at each "funnel" stage before worrying about the P&L
- Remove emotion and focus on data-driven analysis of key metrics (e.g., booking rate, average ticket)
"If my call booking rate is 85-90%... Sally’s doing her job. Move on to where it’s failing." (22:10, Tom)
- Optimize speed to lead, especially for digital/web-generated leads
"If you call someone back within five minutes instead of five hours, you’re 3,000 times more likely to book it." (26:50, Tom)
6. The Power of Branding & Partnerships
- Investing in branding: Tom made his branding partner, Dan Antonelli of KickCharge, an equity stakeholder in FetchAttack, which more than 10x’d his return.
"We did it with $0 in and sold for well over 50 million... To do that with $0 and sell for that is awesome." (36:30, Tom)
- Why branding matters: Homeowners want a brand they trust and relate to—not something the owner simply thinks is cool.
"It’s gotta be something homeowners identify with... Mrs. Jones... is happy to have over." (37:23, Tom)
7. Technology, AI & the Manufacturer Threat
- Long-term industry prediction: Tom foresees manufacturers eventually winning, possibly by selling direct-to-consumer as technology simplifies installs or automation takes over.
"If Tesla figures out...how to change out an air conditioner...then they win, period...robots are going to do it." (29:35, Tom)
- AI and robotics advance: Tasks like roofing, solar, and landscaping are vulnerable to automation due to high labor and risk costs.
"AI is going to replace all these things... It’s just a matter of time." (34:08, Tom)
8. Motivation, Scorecards & Managing Human Behavior
- Incentive structures: Scorecards boost performance but can cause unintended behavior if not aligned with broader business goals.
"You’ve built a system that has two different goal sets... The issue is that you’ll have people in your company that want different things." (44:25, Tom)
- Using Maslow’s Hierarchy of Needs: Tailor recognition, pay, and advancement to individuals’ life stage and motivation type.
- Encouraged open communication: Tommy brings his top team together often to solve structural issues collectively.
"The only way I know how to do is ask questions and say, what's working." (48:50, Tommy)
9. Implementation Tips for Complex Software (ServiceTitan)
- Dedicate an internal project owner: Don’t underestimate the time and thought needed to implement enterprise software.
"Have someone focused on it in your office... responsible for making sure ServiceTitan goes live on time." (40:00, Tom)
- Start with basics before layering on advanced features: Prioritize operational continuity.
"Take the call, book the job, run the call, collect the money and put it into your accounting software... then build on top." (41:10, Tom)
Notable Quotes & Memorable Moments
-
“All of the people in your company are relying on you to be the best leader you can possibly be because they're working for you. They picked you just as much as you picked them and you owe it to them.”
— Tom Howard (00:00, 07:19) -
“Don’t pretend like you’re going to grow to $10 million and then figure out how to start making a profit as you get bigger. It’s gonna be hard.”
— Tom Howard (07:19) -
“I realized... Tyson had a better opportunity at ServiceTitan than what I could offer him... I could never look at his wife and kids and think I stood in the way...”
— Tom Howard (15:35) -
“If you call someone back within five minutes instead of five hours, you’re 3,000 times more likely to book it.”
— Tom Howard (26:50) -
“You don’t succeed by going and doing the easy things. If people succeeded by doing the easy things, guess what? Everyone will be successful.”
— Tom Howard (50:14)
Timestamped Breakdown of Major Segments
| Timestamp | Topic/Takeaway | |---------------|-------------------------------------------------------------| | 02:35 | Industry uncertainty & technological disruption | | 03:02 | Private equity strategies in home service | | 06:15 | Wealth expectations and compensation inflation | | 07:19 | Scaling advice: get efficient and invest in yourself | | 12:09 | Handling weather-induced downturns & partner tensions | | 15:35 | Letting go of star employees for their growth | | 19:51 | Systematic turnaround approach: the “Funnel” model | | 26:50 | Speed-to-lead: why instant callback matters | | 29:35 | Industry disruption: manufacturers, B2C, AI, and automation | | 36:30 | Equity partnerships to amplify branding results | | 41:10 | Best practices for enterprise software adoption | | 44:25 | Aligning incentives (Maslow’s hierarchy within companies) | | 50:14 | Final thoughts: Growth through the hard and uncomfortable | | 50:54 | How to reach Tom Howard |
Final Thoughts & Takeaways
- Invest in yourself relentlessly—read, learn, and master new skills continuously.
- Build grassroots presence and strong branding to insulate from large-scale competitors.
- Incentivize and develop team members to empower performance and loyalty.
- Prepare for and adapt to technological disruption—especially automation and AI.
- Systematize your business processes; use data to drive all decisions.
- Be generous with top talent, embrace necessary leadership turnover, and think long-term.
"You’re never going to be successful doing what everyone else does." (50:40, Tom)
Contact Information
Tom Howard:
- Instagram: @RealTomHoward
- Email: thoward@servicetitan.com
For more actionable insights, text “NOTES” to 888-526-1299 for detailed episode notes, or revisit this summary anytime.