The Sweaty Startup: How to Start a Local Service Business (Greatest Hits)

Summary

Summary of "The Sweaty Startup: How to Start a Local Service Business (Greatest Hits)"

The Side Hustle Show episode titled "The Sweaty Startup: How to Start a Local Service Business (Greatest Hits)" features an insightful conversation between host Nick Loper and guest Nick Huber. Released on January 13, 2025, this episode delves into the practical steps and strategies for launching a successful local service-based side hustle. Drawing from Nick Huber's experience as the co-founder of Storage Squad and host of the Sweaty Startup podcast, the discussion offers actionable advice tailored for aspiring entrepreneurs seeking low-risk, high-reward ventures within their communities.

Introduction to the Sweaty Startup Idea Framework

Nick Loper sets the stage by addressing a common challenge among side hustlers: finding a viable business idea. He introduces Nick Huber, co-founder of Storage Squad—a company that has grown to over $3 million in sales since 2011—and host of the Sweaty Startup podcast. Huber's expertise lies in creating and scaling local service businesses by focusing on proven ideas and superior execution rather than seeking entirely new concepts.

“Opportunity is missed by most people because it's dressed in overalls and looks like work.” (00:26)

Generating Service Business Ideas

The conversation begins with Huber emphasizing the importance of identifying service needs within one's own environment. He observes that modern homeowners and businesses increasingly prefer outsourcing tasks like cleaning, yard work, and maintenance to reclaim their time and focus on core activities.

“A lot of the next generation of homeowners are not that way. So what they're doing is they're reclaiming their time.” (04:25)

Huber advises entrepreneurs to brainstorm around personal needs and community gaps. By analyzing services that are in demand but underserved—such as window washing or deck staining—entrepreneurs can uncover profitable niches. He suggests creating a list of 10 potential business ideas, ranging from low to moderate complexity, to explore feasible opportunities.

Evaluating Market and Competition

Once a list of potential ideas is established, Nick Huber outlines a strategic approach to evaluate each option:

1. Lead Time Analysis: Assess how quickly existing businesses can respond to customer inquiries. A long lead time indicates high demand and insufficient supply.

   “Lead time is number one. How long is it going to take you to come out and give me a quote...” (10:33)

2. Digital Presence: Examine competitors' online visibility. Many traditional service businesses lack modern digital marketing, presenting an opportunity to leverage technology for a competitive edge.

3. Pricing Strategy: Analyze competitors' pricing to determine potential margins. High prices may signal a willingness to pay for better service, allowing new entrants to position themselves as premium providers.

Huber highlights the scarcity of innovative, entrepreneurial approaches within local service markets dominated by outdated business practices.

“A lot of them are running their businesses like it's 1985... They are easy to study and it's easy to find out if you can carve out a piece of the pie.” (05:59)

Scoring First Customers

With a narrowed list of viable business ideas, the next step involves acquiring initial customers through effective marketing strategies. Huber advocates for guerrilla marketing tactics tailored to the local context. Examples include:

• Sidewalk Chalk Advertising: Writing compelling messages in high-traffic areas to attract attention.

  “I was making probably hundreds of dollars per hour writing chalk on the ground because it was so effective as a Billboard.” (28:57)

• Google My Business Optimization: Enhancing online presence to improve search engine rankings and attract organic leads.

• Networking for Referrals: Building relationships with complementary businesses, such as real estate agents or carpenters, to gain customer referrals.

Additionally, Huber underscores the importance of targeting high-end clientele willing to pay a premium for professional and speedy services, thereby ensuring healthier profit margins and business sustainability.

“You have to shift your mindset of saying, okay, I'm going to convert 30% of my bids and I only want a certain type of customer.” (20:26)

Pricing and Scaling Strategies

A critical takeaway from the episode is the significance of pricing appropriately. Huber advises against the common pitfall of underselling to secure every possible job. Instead, entrepreneurs should prioritize quality over quantity by targeting customers who value professionalism and prompt service. This strategy not only enhances profitability but also reduces stress by avoiding constant price wars.

“Get comfortable charging a higher price and not get emotional about losing bids. These are things that I just don't do.” (22:32)

When it comes to scaling, Huber shares his own experiences with Storage Squad, highlighting the necessity of simplifying job roles and implementing standardized operating procedures (SOPs). By doing so, businesses can streamline operations, making it easier to train and retain employees without seeking "unicorn" hires.

“We simplified the job so that it was simpler to teach and simpler to learn... We could hire just normal, average people that could do it really, really well.” (43:26)

Leveraging Technology and Tools

Throughout the discussion, both Nick Loper and Nick Huber emphasize the importance of utilizing modern tools and software to enhance business efficiency. Tools like Jobber, FreshBooks, and Gusto are recommended for managing operations, payroll, and customer relations seamlessly, allowing entrepreneurs to focus on growth rather than administrative tasks.

“But I have a list of all these tools that I love to implement in the early days on the website. Sweatystartup.com EssentialTools...” (33:11)

Overcoming Common Challenges

Huber addresses common hurdles faced by service-based side hustlers, particularly in hiring and employee management. He recounts Storage Squad's struggles with finding reliable employees and how they overcame these challenges by:

1. Simplifying Roles: Reducing complexity in job responsibilities to make training easier.
2. Increasing Margins: Raising prices to afford better compensation for employees.
3. Active Recruiting: Engaging in proactive and creative recruitment methods, such as handing out business cards and conducting open interviews.

“They have trouble delivering the service and meeting the demand based on how many employees or how their systems are designed.” (10:33)

Marketing Innovations

Furthering the discussion on marketing, Huber introduces innovative methods to attract customers without relying solely on digital advertising. Examples include:

• Guerrilla Cleaning Advertisements: Demonstrating services in public spaces to showcase effectiveness.

  “I would literally use my power wand to clean some areas... very creative.” (34:02)

• Strategic Partnerships: Collaborating with local businesses to cross-promote services, such as real estate agents recommending power washing for homes before sale.

Conclusion and Key Takeaways

The episode concludes with Nick Huber offering his top advice for budding side hustlers:

“Look up from your computer screen... think about how that company makes money, think about what opportunities are right there in your town.” (44:38)

Key takeaways include:

1. Start Local: Focus on addressing immediate, tangible needs within your community.
2. Simplify and Standardize: Develop clear processes and simplify job roles to facilitate training and scalability.
3. Price Strategically: Target customers who value quality and are willing to pay for it, ensuring better margins and business sustainability.
4. Leverage Technology: Utilize modern tools to streamline operations and enhance efficiency.
5. Employ Guerrilla Marketing: Implement creative, low-cost marketing strategies tailored to your local environment.
6. Build a Supportive Community: Engage with entrepreneurial communities, such as Huber’s Reddit group, to share ideas and overcome challenges collaboratively.

Overall, this episode provides a comprehensive roadmap for launching and scaling a local service business, grounded in practical experience and strategic insights. By emphasizing execution over ideation and advocating for efficient, customer-focused operations, Nick Huber equips listeners with the tools needed to transform their side hustles into profitable ventures.

Transcript

[Host]

You probably already know that Airbnb can help you earn some extra cash when you're not using your home. Maybe you're traveling for work, you're taking an extended vacation, or you're just snowboarding someplace warmer. But here's where it gets interesting. You don't have to do all the work yourself. You can tap into Airbnb's co host network. This is a team of local pros who handle the nitty gritty so you can focus on what matters most. Think of it like outsourcing for your side Hustle. These professional co hosts help with everything from creating a killer listing that stands out to guest communication and even on the ground support. You provide the space, they handle the details, and you get paid. Personally, I'm a fan of income streams that don't require constant oversight. When I'm traveling for work, I'm at a conference or a mastermind, or if I'm on vacation, I'm trying to be present with my family. Here's a way to add an extra income stream without having to be glued to my phone the whole time. When you're ready to get started, see how much your space could be worth and get connected with an awesome co [e-mail] host. Here's an oldie but a goodie from the archives from the side Hustle Show Greatest Hits collection.

[Nick Loper]

Do you know how much cash flows.

[Host]

Through your hometown on a monthly basis?

[Nick Loper]

Here's a guide to diverting some of that money your way. What's up?

[Nick Huber]

What's up?

[Nick Loper]

Nick Loper here.

[Host]

Welcome to the Side Hustle show because.

[Nick Loper]

Opportunity is missed by most people because it's dressed in overalls and looks like work hat. Tip to Thomas Edison for that one. It's a good quote though, and an appropriate one for today's show. I'm excited to welcome Nick Huber to the program. Nick, what's up man?

[Nick Huber]

Nick, thanks for having me.

[Nick Loper]

You bet.

[Nick Huber]

I'm a big fan of everything you do, so I'm glad to be here.

[Nick Loper]

Well, thank you for tuning in. Nick is the co founder of Storage Squad, which answers the question students have of what do I do with my stuff over the summer? Well, you give it to Storage Squad. They pick it up, they store it, they deliver it back to you when you need it again. It's a company that's grown to over $3 million in sales since starting as a little part time project back in 2011. Nick is also the host of the Sweaty startup [e-mail] I think that's my favorite podcast name that I've come across lately. And I invited him here to help us walk through his sweaty startup idea framework. That is, how can you start a low risk, low overhead, local service based business? How can you set it up for success? And how can you let that be the vehicle that drives you away from a lifetime of cubicle slavery? Stick around in this one to hear Nick's thoughts on generating service business ideas. You can start today. How to go about evaluating the market and competition and scoring your first customers. That's why I think this is pretty exciting. It doesn't take many customers to begin to make a meaningful income here. All right, Nick, let's get into this and generate some service business ideas. This is the biggest pain point that I hear from side Hustle show listeners over and over again. I just need an idea. Well, if I have that magical idea, I know I can go get started. And so you're advocating for a different type of idea. Something that has already been done, it's already been proven, and it just needs somebody to go out there and execute on it better. So let's dive into this stuff. Where do you suggest people start when they're looking for. For that first side Hustle idea? First business idea.

[Nick Huber]

Yeah. Yeah, absolutely. So the reason why I am so excited about this is I bought a house about a year and a half ago and I didn't realize how hard it was to find people who are willing to service your home. Whether it's cleaning the carpet, washing the windows, power washing the driveways. The hundreds of businesses that people are outsourcing and outsourcing more and more. I mean, I think about my grandfather and my dad and how they were good with their hands and they knew how to do everything and they fixed their own stuff and they did their own things in their home. I don't know about you, Nick, but I am not that way. I think a lot of the next generation of homeowners are not that way. So what they're doing is they're reclaiming their time. They want to spend more time with family. They want to spend less time tinkering in the garage. So they are literally outsourcing everything that has to do with home ownership. Same with businesses. Businesses are focusing on what they do best. Outsourcing a lot of other things. So I think a lot of brilliant, bright entrepreneurs are kind of missing these business ideas that are right and in our backyards or in our small towns or in our big cities that we can get out and touch and feel and do ourselves. So that's kind of the trend that I'm seeing out there.

[Nick Loper]

No, absolutely. I can see that trend just as myself personally compared with generations past and my father and what he was able to do. That is an interesting idea. And so you're saying, plus combine that with more people getting higher level education instead of going to the trades, there's a shortage of this type of skilled worker. And so as a listener of the show, you should come in and fill that gap. Or you could come in and fill that gap as a potential entrepreneurial venture.

[Nick Huber]

Yeah, a big part of this is competition. I mean, when I'm looking at E commerce or freelancing or Amazon, FBA and these businesses that are amazing because they're location independent, you can work online, you can work from anywhere, there's not a whole lot of barriers to entry. I look at the amount of people flooding those markets and the people that are not necessarily geographically limited. Right. You're competing with people from all over the world. In some other areas, you know, Pakistan, places where this kind of work is taught in schools a lot, people are more affordable, dollar per hour to do this kind of work. So I look at the competition. When I look at the competition in these home service businesses, I don't think a lot of these people consider themselves entrepreneurial. I don't think a lot of them are very innovative. A lot of them are running their businesses like it's 1985, with a fax machine, not a whole lot of email even. They're doing business like it's 1985. And I think a smart young entrepreneur with today's technology can really carve out a very interesting piece of the pie on these businesses that are already in our cities. They're already operating, they're already profitable. And more importantly, as we'll talk about here in a second, they're easy to study and it's easy to find out if you can carve out a piece of the pie.

[Nick Loper]

Yeah, this was something when we were shopping for a home cleaning service as an example of something that we've begun to outsource ourselves. And it was just like you're describing like every website, if they even had a website, was from 20 years ago. It was all this like, contact us for a quote and we'll get back to you in five business days. And the service we ended up going with is called Handy. And it was just like an app. I didn't have to talk to anybody. It was like 40 bucks off your first cleaning or something. I was like, this Price seems reasonable. I don't know. Like nobody else, I didn't want to bother calling them for a quote. So I don't know if they're overcharging me. I'm sure they've got some technological overhead and development this app, so there probably is some margin in there, but all they are is a matchmaker. They hook me up with like local cleaners who I otherwise wouldn't have been in touch with, and they just kind of play this middleman. So the developers of Handy aren't the ones coming out scrubbing the toilet. Like, they're just kind of playing matchmaker in a ways similar to what Chris Schwab was doing with ThinkMaids on the podcast maybe a year and a half ago. So what kind of questions aside from maybe do I have a tech advantage or do I have a customer support advantage? And that was Chris's whole thing was like I went on Yelp. Nobody was complaining about the cleaning. They're complaining that I couldn't get a hold of anybody. It took a while to get a quote. I didn't know when the people were coming. But what other questions can people ask if they're evaluating different service business ideas?

[Nick Huber]

Yeah. So number one for me is I avoid things that people are passionate about. That's the number one question. Is anybody passionate about doing this? Because if there's a lot of people who are passionate about it, then there's probably a lot of high. There's a high level of participation and. And the odds of success are probably a little bit lower.

[Nick Loper]

This would be like starting teaching yoga or something.

[Nick Huber]

Exactly right. The things that are fun, the things that people are kind of hobby oriented, restaurants brewing beer, things that are fun. And those are the things that if other people are kind of having fun doing that, they're maybe not going to make wise business decisions. They're going to undervalue their time. Those aren't the kind of people that I want to compete with. If I'm starting a business, which goes.

[Nick Loper]

Counter to most advice of like, well, pick something you're passionate about.

[Nick Huber]

I know, I know. I'm passionate about building something. I'm passionate about entrepreneurship and I'm passionate about taking steps forward every single day. And I want to do what I want to do in my free time right away from work. And the goal here for me is have a five year plan so that I don't have to work a whole lot and I can do what I'm passionate about and not be stressed out about earning money doing those things.

[Nick Loper]

All right, what else?

[Nick Huber]

So I look at a rising demand. Like I said, people are outsourcing more. The pie is getting bigger every single day. Twenty years ago, 5% of people paid someone to come mow their lawn, and today 40% of people do. I'm guessing 10 years from now, that number will be well over 50%. So there's more and more and more customers coming on the market every single day that are using these, these local services. And the big one is competition. We already touched on it a little bit. But if you're looking at who you're competing with and what kind of models they're using, it's pretty easy to choose a local service business based on how they do business than try to compete with the tech entrepreneurs, the online entrepreneurs, who are not necessarily location independent and really, really good at what they do.

[Nick Loper]

Okay, that's interesting. So not necessarily going out to conquest somebody else's customer, not necessarily trying to steal market share, but just, hey, there's a rising tide of people outsourcing their lawn, mowing, their home cleaning. We talked to a woman a few weeks ago who was doing pet waste removal. And what else is cool about that is the house is going to keep getting dirty, the grass is going to keep growing, the dog is going to keep pooping in the backyard. Right. Like you're setting yourself up for a recurring stream of revenue as long as you can keep doing this work or contracting people to do this work with you.

[Nick Huber]

Absolutely. So in my mind, every business has either an employee problem or a customer problem. Most businesses, they have customer problems, right? They can't find enough customers to get the revenue to build the business to be profitable. A lot of these industries, and we'll look at how to actually analyze and figure out where the problem is. They don't necessarily have customer problems. There's enough customers, they have employee problems. And I learned this when I bought my house and, and I needed to get some things done. I would call in a steam cleaner for, for the house. When we moved in, I wanted somebody to build out my closet. I was looking for somebody to put shelves in my garage. I was looking for somebody to put pest control around my house, mow my lawn. And I would call 10 companies, and seven wouldn't answer the phone. Three were not taking new clients. The other four took a really long time to come out and even look at my home. It wasn't like, okay, you know, I'm eager to get this business. I need this business. They all have employee problems. They don't have customer problems. Does that make sense? So they have trouble delivering the service and meeting the demand based on how many employees or how their systems are designed. They don't necessarily have a marketing employee problem because the demand in some of these areas is so strong.

[Nick Loper]

And if you are mystery shopping these companies, you're calling these companies up, I imagine if they're saying, hey, it's going to be two to four weeks before we can get out to you, that's a good sign in your case because you're like, okay, maybe there's clearly more demand than there is supply here.

[Nick Huber]

Absolutely. Lead time is number one. So when I'm analyzing opportunities, I like to make a list of 10 businesses that I could potentially offer with my current skill set, with what I already equipment that I have. You know, it's 10 different businesses that I could start in a low risk way. And the first thing that I'm looking at when I start to poke around is lead time. How long is it going to take you to come out and give me a quote or build my closet or do whatever it is that I need to have done? How long is that going to take? And you'll be really surprised when you get on the phone with some of these companies and they're like, oh, yeah, we're booked out four weeks basically all the time. And when we're really busy in May, June, July, it's more like six or seven weeks. Six or seven weeks for us to come out and do this. And that is not a joke. I just called around a bunch of companies to put a little sidewalk down to my lower entrance to my basement because I want to put it on Airbnb. And I called about 10 companies. Most of them answered the phone, most of them were professional, but only two have come out and actually talked to me. And I made all those calls about three weeks ago, and only one has already gotten me a quote. So 10% of the companies that I called have actually come out and delivered a quote. And it's been over two weeks since I made those calls.

[Host]

More with Nick in just a moment, including more ways to come up with service business ideas. And how do we evaluate which ones to actually move forward with right after this? Creating really great retail experiences is tough, especially if you've got multiple stores, teams of staff, fulfillment centers, separate workflows. It's a lot to deal with, but with Shopify Point of Sale, you can do it all without complexity. Shopify's Point of Sale system is a unified command center for your retail business, both online and in store. One thing that's really cool about Shopify POS is you can keep customers coming back with personalized experiences and collect that all important first party data to give you your marketing teams a competitive edge even if that marketing team is just you. Now how about some data to back that up? Businesses on Shopify POS see real results including a 22% better total cost of ownership and benefits equivalent to an 8.9% uplift in sales. Want more? Check out shopify.com sidehustle that's all lowercase and learn how to create the best retail experiences without complexity. Again, that'[e-mail] side hustle did you know there's a disease running rampant among side hustlers and new entrepreneurs? It's called Superhero Syndrome. Symptoms include a feeling like you gotta do everything yourself, thinking you're the only one who can do it right, and struggling to let go of certain tasks. Does that sound familiar to anyone? But the good news is there is a cure. Our sponsor Indeed can help you find the best candidates for the roles you need to fill and and find them fast. Stop struggling to get your job post seen on other job sites. Indeed's Sponsored Jobs help you stand out and hire fast. With Sponsored Jobs, your post jumps to the top of the page for your relevant candidates so you can reach the people you want faster than ever. Sponsored Jobs posted directly on indeed. Get 45% more applications. Don't let superhero syndrome hold you back. That's why for my next hire, I'm using Indeed. There's no need to wait any longer. Speed up your hiring right now with Indeed side Hustle show listeners get a $75 sponsored credit to get your jobs more visibility at indeed.comsidehustleshow just go to indeed.comsidehustlesHow right now and support our show by saying you heard about Indeed on this podcast. Indeed.com Sidehustleshow terms and conditions apply. Hiring Indeed is all you need.

[Nick Loper]

Interesting. So you're kind of starting from the point of like, what would I need done in my own house? Any other kind of starting points to seed this initial list? Building exercise?

[Nick Huber]

Yeah, I mean, I have a list on my website, Sweaty Startup of literally about 200 different services. It's the long tail of these service businesses. You don't necessarily have to limit yourself to house painting or pest control. You can get very, very, very specific. Like if you learn how to build. One random example is a steam shower. I was, I was interested in converting a steam shower in one of my bathrooms because I think it's really a healthy thing to do. I was kind of into it, so I looked on Google and there is one company in the state of Georgia that does this. One company that installs steam showers. They wanted a $300 non refundable deposit to even come out and look at that job.

[Nick Loper]

Because they can, they can't.

[Nick Huber]

Yeah, they just can't solve the employee problem to service more customers. They have constraints in those regards. So you can get very creative. Like think of anything that you could possibly need done. Like building out custom closets is one that I love. That you can order kits online and with a screwdriver and a laser level, you can install really, really good closets in people's houses. You got deck staining, window cleaning, gutter cleaning, mobile bartending. You can think about just your network and what kind of lends itself to what you could possibly do. I like to make a list of 10 businesses and get more specialized as you go, right? Like make five. Make a list of five businesses that are really low cost, really low skilled, really low barriers to entry. And then think about, okay, if I did a little bit of investing and most times just time. I love how you say, Nick, you know your life is what you do from 5 to 9 is the important time. Right. What can you spend instead of watching tv? The average American watches five hours a day of tv. What can you do to kind of get into something that has a little bit more barriers to entry? Maybe a little bit of equipment, maybe some skills that you need to learn. I like making a list of 10 businesses and put them on a piece of paper. That's where I start.

[Nick Loper]

Yeah, there's a listener of the show who has a parking lot striping business, who he's sent me some details on this and it's like, yeah, there's a little bit of equipment, there's a little bit of skill and I guess probably practice in learning how to do this the right way so you don't mess up the parking lot. But it's so niche and so specialized that like, hey, anytime there's a new parking lot going in in town, he's the guy that gets the call.

[Nick Huber]

I have a friend actually who does deep cleaning of restaurants. So he will go in at night with equipment. It's a very sweaty job. Goes in at night. In about five hours he will deep clean and degrease a commercial kitchen and restaurant floor and he will net profit at the end of the night, about $1,000 in four hours time.

[Nick Loper]

Wow.

[Nick Huber]

He's the Only one in town who does it. He has all the contracts. And he was just a guy with a cargo van, drove around, not necessarily that skilled. He was just willing to do this one little niche thing. Now within about a three city radius, he's the first guy on Google because there's only about two or three companies that do it. Has more business than he could ever hope for. He's raised his prices every year by 30%. He just keeps having a full schedule. It's pretty awesome. Yeah.

[Nick Loper]

So we talked about a kind of like low skill, low barrier to entry stuff. Installing custom closets, installing steam showers. That stuff sounds a little bit more stressful to me as like, okay, well I've never done that before. I've definitely never gotten paid to do that before. So where do you draw the line between, okay, yeah, I can figure that out versus like, I might have some serious liability on my hand or I might need some special certifications or licenses, something like that?

[Nick Huber]

Yeah, well, a lot of times you can actually work part. I mean, the thing about all these companies, Nick, is that they're all really hurting for employees. You could go get paid to learn how to install steam showers by calling that company and saying, I really want a side job on the evenings and weekends. They would easily hire you for $20 an hour to come work for them and do that stuff. So it's like going to school while getting paid to do it. So that's one option that I love. The second option is YouTube. I mean, it's amazing what you can learn on YouTube. I ended up installing my closet myself after I didn't want to pay the $3,500 for the basic package from California Closets or Inspired Closets. It took me about 20 hours total. I built the closet of my dreams, had a ton of fun, and it's not as hard as you would think. So that's my advice. There's.

[Nick Loper]

Okay, so you've got this list. 5 to 10 business ideas with varying degrees of complexity. What happens next in your kind of startup evaluation process?

[Nick Huber]

Yep. Open up your computer, go on Google and search each business. So gutter cleanings on your list. You're going to search gutter cleanings and wherever you're from, like Bay Area wherever, Athens, Georgia. And you're going to call the first three companies and you're going to make a little Excel spreadsheet and you're going to kind of play a customer. You're going to pretend to be a customer. You're going to have an address that you need them to come quote service for or you're just going to pick their brain and you're going to kind of weigh them on three things. Number one is speed. Like I said, quote velocity. How fast can you come out? How fast can you provide a service? Because you know that if they're booked out four weeks, a they're losing a lot of business and B, they are very, very, very busy. The next thing you're going to look at is accessibility and digital marketing. Do they have a website? Most of them. You'd be very surprised that you'll see one with a Google listing with no website, no real systems, no digital marketing, no advertising. Last one I like to look at is pricing. For example, the landscape company that did get me the quote wanted $23,000 to put a sidewalk around that I'd calculated how many yards of concrete, how much wood I needed to do it. It was about fifteen hundred dollars in material. That is example of where they've just continued to raise their prices because they know they're the only ones in town that are getting out and giving people quotes and they're getting a lot of jobs. So speed, accessibility and pricing, that's the things that you really look at, you can analyze. And I do this all on the phone by playing a customer. So I'll call the top three businesses of all 10 on my list. So I'm making 30 phone calls and I'm keeping a little spreadsheet of okay. And I'm just. If all three answer the phone, if all three are not that busy, if all three are very eager to get your business, if all three are running Google AdWords, if all three have pretty low pricing, I cross that off my list. But if they're slow, if they're not interested in my business, if they're not running ads, if they're very expensive, I circle it. So after that exercise, I usually have a list of about three businesses left that there's some meat on the bone here. There might be an opportunity for me to carve out a piece of the pie.

[Nick Loper]

Do you find even in these low skill businesses there is apparent margin out there, there is more apparent demand than there is supply, like for window washing or gutter cleaning or something like that. It's like okay, with a ladder and a squeegee, I could get this done. Do you find even with stuff like low barrier to entry, like the pet waste removal or is it just like, hey, that's a, it's a race to the bottom, it's commoditized, there's there's nothing left here.

[Nick Huber]

That's an excellent question. And that is the number one complaint that you hear from all the smart entrepreneurs who want an online scale business. They all say why would I do that? Why would I compete against Craigslist? Or why would I race to the bottom? Why would I go in these low margin, non scalable businesses? And in my opinion they have the wrong mindset. Okay, you don't need to get every single customer. That's number one. You need to shift your mindset of saying, okay, I, I'm going to convert 30% of my bids and I only want a certain type of customer. I think a lot of business owners, early on they say, okay, I'm going to get, they kind of get emotional about converting leads to jobs and they want to get every customer and they want to win every bid and they'll discount and they'll drop their prices and they'll do what they have to do to win every customer. Whereas if you're doing this the right way, you understand that, okay, I'm only going to convert 1/3, 25% of all these leads that come in. But I'm going to go after the customers that need two things. They want professionalism and they want speed. They want somebody who's super professional and they want somebody who can do this stuff quickly. And price is not as important to them. There's a lot of customers like that out there. I'm one of those customers. If I'm calling around to lawn care companies, I want somebody who's professional, who shows up in a collared shirt, who I don't have to worry about being unprofessional around my family or you know, driving a beat up pickup truck with holes in the side panels. You know what I mean? You want the customers that are willing to pay the higher price. And I'm telling you Nick, there are a lot of them out there. So even in these low skilled, low barrier to entry businesses you can target high end clientele who are willing to pay more for better service and you can build a scalable company even in these service businesses where people will say that's not a scalable business. Why would I ever target that?

[Nick Loper]

Right. Well, everything is scalable with the right systems in place. But you bring up an important point about pricing. This was my biggest mistake when I was painting houses in college. Was pricing too low because I was afraid I wasn't getting enough work to keep my crews busy. So I'd discount, discount, discount and I probably would have been better off accepting fewer jobs, like hitting a lower hit rate on the bids that I did do, but just targeting a better customer or I mean, the customers were fine. It was just me probably discounting unnecessarily.

[Nick Huber]

Absolutely. And it's the only real way that you can build a stress free scalable business in the first place. Because if you don't pack in that extra margin and if you don't have those that extra money, you're going to constantly be stressed out. You're not going to be able to pay your employees enough. We'll get to employees in a second. Because this is the biggest struggle that you hear every business owner say, I can't find good employees. So we'll talk about that in just a minute. But the way that you scale a business and the way that you build a business with a healthy foundation is get comfortable charging a higher price and not get emotional about losing bids. Losing bids sucks. It sucks to hear a customer say, I'm going to go with a different company because they're cheaper. You have to have that switch in your mind that says, that's not a customer that I wanted anyway. So that's fine with me.

[Nick Loper]

Yeah, there was this. We were kind of at our year end retreat for this painting company and one of the top performers in the business gets up and he tells this story about how he'd been out to this woman's house three or four times and you know, they'd been back and forth and she's got all these quotes. And she comes back to him and says, hey, I got this quote for $1,400 or something. And he's like, ma'am, I'm going to be 100% honest with you. You don't want a 1400 dollars paint job. And he closed the bid. And it was like, wow, that was a way to turn that around in Aria. And I actually used that when I was doing proofreading on freelance book editing. And I was like, yeah, you could find cheaper editors out there, but it's your book. Like, this is your baby. Do you really want to go with them? You know, you got to put your best foot forward. So.

[Nick Huber]

Absolutely. And so many of these people are really, really bad at sales as well. Nick. I've had some of them come out to my house. They don't know how to shake my hand, they don't know how to talk to me. They don't know how to present ideas and framing. The sales interaction of, look, I don't necessarily need your business. I'm going to be extremely polite to you, extremely nice to you. But listen, this is only going to work if our circles overlapped. I'm busy, you're busy. I know that you want really good service. I deliver that. If you want to pay our price, that's great. But I don't discount. These are things that I just don't do. So if you set those guidelines as a foundation for your business, you'll be in really, really good shape when it comes time to grow. Another thing about these non scalable businesses, before we move on from that, people kind of think whatever business I'm going to start right now is the business that I'm going to be doing five years from now or ten years from now. And that is, that is just not the case. Business is so much about momentum and maybe casting a wide net and offering several different services and specializing and then specializing. And then as you get skills, you specialize even more. And as you get skills, you specialize even more. And before you know it, five or six or seven years later, you're doing something totally different. You're doing something higher margin, you've kind of weeded out the opportunities, as these opportunities have come to you and your business is bigger, better, and you're doing more and more exciting things. All the wealthiest people that I know, all the richest, the people who have the most free time, the happiest people that I know, they all started really, really, really small businesses that weren't necessarily scalable and then they grew them. One guy kind of built his own house and subcontracted it out. Then his neighbor asked if he could build his house. And you fast forward 20 years and he's building $20 million assisted livings and nursing homes for giant hospital operators. And he's worth close to a billion dollars. Right? And that's the story of so many wealthy entrepreneurs. And that is the opposite of what our media and what kind of the entrepreneur culture online and on Shark Tank and in Silicon Valley kind of paints. Nobody paints those pictures, right? Nobody, nobody shows the stories of the very, very wealthy people in our individual cities and towns that don't have a sexy story. That's something else to keep in mind when, when we're looking at the nitty gritty, non exciting businesses to start.

[Nick Loper]

No, it's 100% true. We've seen it from probably hundreds of guests at this point that look, choosing what's next doesn't mean choosing what's forever. The best opportunities aren't visible until you're already in motion. It's going to become a little bit of a chorus here, but I've definitely found that to be true.

[Nick Huber]

Yeah, I started my business when I was running up spiral staircases with boxes, buying a $1,500 van on Craigslist and my friends were laughing at me and my parents were thought I was crazy When I was going to take my college degree and do that full time. You fast forward seven short years and we're operating $10 million plus self storage portfolios and we're on the verge of doing some really, really cool things. So just another encouragement that entrepreneurship is about kind of momentum and it's building on what you've previously done and it's learning along the way. So anything you can do to just get started, I think is the hardest first step.

[Nick Loper]

All right, I'm with you there. Okay, so I've got my list of 10 ideas. I've been mystery shopping the top three competitors that I could find in each of these spaces, evaluating for speed. You know, what's their online presence look like, how easy are they to do business with, and do I have an estimate of their pricing power or what kind of margins you think they're able to hold. I imagine from there now it's kind of a narrowing down process. What does that look like for you?

[Nick Huber]

Yeah, when you're down to your last three, you call 10 companies, you kind of study them a little bit more and then you don't overthink it, you jump in and you do it. And you go to domains.google.com and you find an available domain. I like to have synonyms.com on the other page and kind of just really brainstorming different ideas, seeing what's available. I buy it. I send a Google my business location to my house. I put a Google voice phone number on there. I operate my business with a G suite, the suite of Google tools that you can get for just a couple bucks a month, where you can do everything you can get out of the box, little customer management software. I know we're really ripping through some stuff here, but what I'm saying is it's just time to get out and serve some customers. So what I always do is I put together a basic website on WordPress, get an email address, get a phone number, and it's time to go find some customers. I usually print out several thousand mark, get some marketing materials made on Fiverr or some something similar, get several thousand of them printed, put them on a backpack, go to a neighborhood where I think there's houses that need what I'M offering or there's businesses that need what I'm offering. And I get these flyers and I spread them out and I go see my customers. People laugh all the time when I talk about sidewalk chalk. But Nick, that is how I built my business because I knew where my customers walked. I was servicing students. I knew that they were freshmen. I knew where they walked to class, I knew where they lived. So I decided to get some boxes of sidewalk chalk and I would go on the path where they were walking to class. I knew they were walking to class at 10am every day. So I get out there at 6am and I would write student storage, Best prices in the country, Storage squad dot com. I've written that phrase over a thousand times in my life and I'm telling you, the ROI on that time spent is I was making probably hundreds of dollars per hour writing chalk on the ground because it was so effective as a Billboard that probably 40% of our customers in these early days said that that is how they heard about my business. So I love the guerrilla marketing.

[Nick Loper]

Wow, that's awesome. Just getting right in front of their feet, as it were. Did you ever get in trouble with like the campuses or anything for blanketing the city and campus with your ad messages?

[Nick Huber]

We ended up hiring some students to do this and they thought it was a good idea to go under the overhangs and write sidewalk chalk advertisements on the buildings which that upset the school and I had to get a power washer and go out and clean it off. But for the most part, no, they didn't mind. I mean, the student groups were allowed to advertise their acapella groups or basketball recruiting for Club Ball on the sidewalk. So we did a lot of the same stuff and when we were turned away, it wasn't the end of the world. So yeah, that was a big part of our early marketing campaign.

[Host]

More marketing ideas with Nick right after this. All right, it's sponsor time now. I could read you a script about.

[Nick Loper]

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[Host]

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[Nick Loper]

You don't hear that every day.

[Host]

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[Nick Huber]

And we are at a beautiful day and age where this technology is available. You look 10, 15 years ago you had to spend hundreds of thousands of dollars to get these tools. Now you can use FreshBooks, Gusto and some others right out of the box that just make you extremely professional efficient and you don't have to spend your time pushing paper around. So that's another amazing advantage that a scrappy startup entrepreneur has with these service businesses. So I love it.

[Nick Loper]

Yeah, so true. I mean you gave the example on the BiggerPockets business podcast of going into the storage space as a real estate investment and looking at these other companies that have an on site manager sitting in the office all day. It's like, well, 99% of the time they're not doing anything.

[Nick Huber]

That's exactly our competitive advantage. Right now we're running our Self storage facilities remotely and building a big successful portfolio doing that just because a lot of the businesses, even in this big data real estate world, they're not necessarily using the latest technology. I'd say only 5 or 10% of these service businesses use things like FreshBooks, Gusto, Jobber, some other out of the box software that can just make your life so easy so that you can spend time marketing and making money and not running payroll and sending invoices and things like that. It's a beautiful thing.

[Nick Loper]

It's funny you mentioned Jobber. Jobber is a really interesting software tool that I came across recently. Like perfect for this type of local service business. Let your customers know when you're coming and you're kind of like an all in one system. You know, when you have a crew out and about in the town.

[Nick Huber]

Yeah. And I have a list of all these tools that I love to implement in the early days on the website. Sweatystartup.com EssentialTools all right, there's a dash between essential and tools. But there's just so many great little things that you can kind of bolt onto each other to get so efficient so that you can get out market and find some customers. It's a great time to be alive.

[Nick Loper]

All right, we're going to link that up in the show. Notes Sidehustlenation.com Sweaty for Nick's list of essential tools. But let's go into. One of my favorite parts of the painting business was the pressure washing beforehand. It's just like, I mean there's entire like pressure washing porn videos just because it's like it's such a satisfying thing to do. So let's say I want to start this pressure washing business here locally. Would you go with the sidewalk chalk route like in a high end neighborhood and say like I can make this driveway look new again. Like how would you go about it?

[Nick Huber]

Yeah, first of all, I would go around and do some guerrilla cleaning advertisements. Like I would literally use my power wand to clean some areas. There's actually some pictures on my website of some people under an overpass on the interstate. There was a really dirty triangle of concrete right there that you kind of see and drive by. And they wrote on their power washing, don't let your driveway get this dirty. And they put a phone number on there. I thought that was extremely creative. But this is, this is a business where if you're in a neighborhood and you're power washing your friend or some early customers, give a card, have a business cards and just hand them out. To everybody that you see and say, I'm in your neighborhood, I'm doing like, look at what I'm doing here. And you'll be extremely surprised at how far that goes. So just not being afraid to walk up and shake hands and talk to somebody puts you at an amazing advantage. In the day and age where most companies are just nudging their digital marketing department saying, spend more money on Google AdWords, nobody's getting out and doing these guerrilla marketing tactics.

[Nick Loper]

I love the idea of carving it out with the pressure washer, the water equivalent of the sidewalk chalk.

[Nick Huber]

Yeah. Another big one is Google My Business. I think so many people find service businesses on the Google Maps function and you can send a postcard to any address, pull up, get a Google listing of your of your own, and if you have some of your early customers, even if it's you, power wash your neighbor's house for free, have them take a picture of your work and put a pretty good review on Google My Business. And if you get those two things, a photo and a decently worded review on your Google My Business location, it'll just supercharge your SEO so that you start getting some organic online leads fairly quickly. I mean, I'm sure you've done a ton of studying with SEO. You've had some specialists on your podcast. It's really, really competitive to do these affiliate sites and things like that and target these keywords. But it's not that competitive when you're competing against these 1985 businesses in your small town or big city. Even to kind of rank and get found by a lot of people who need these services.

[Nick Loper]

No, it took like one weekend of concerted effort for my wife to get on the first page for her photography business. And I don't know if she still is. This was several years ago and they've generated some different sources of leads, but it was like for a local service based business, your competition typically isn't that savvy. So it doesn't take, it doesn't take much. Now one, you bring up Google My Business. This is a sticking point for a lot of people especially. Doing business as a side is like sticking their home address on the Internet as their place of business. I understand there's some workarounds with choosing a geographic area that you serve, but curious what your take is on that.

[Nick Huber]

Yeah, I mean, when I was in college, I didn't have a whole lot to lose, so I dropped a pin right on my dorm. And then my next year, my house, I dropped a pin on that one as well. So yeah, you can use the service area function. You can also get a P.O. box. You can also rent a mailbox, walk up and talk to a business owner and say, you mind if I put my computer in this corner and work here once a week and drop a Google my business location on your business. And most of the time they'll just say, of course that's fine. You know, it's pretty easy sell to have have almost no negative impact and get that kind of advantage. So I think if you're scrappy and you can get creative, there are definitely some ways to get that Google my business listing up.

[Nick Loper]

In the pet waste removal example, the woman, she had a banner that she hung up at the dog park, which I think she said it cost her a couple hundred bucks for the year to advertise with her banner there. She would bring donuts into the veterinary offices and say, hey, I brought these donuts. Can I leave my business cards here as well? To get in front of her target customers where they were already hanging out, where they were already doing business. That's kind of how she did her marketing. In addition to that, blanketed a bunch of local Facebook groups saying, hey, you know, pet waste removal starting at X dollars per week or something like that. Anything else on the marketing front, maybe this pressure washing example or anything else that comes to mind?

[Nick Huber]

Just one that comes to mind right now is the lawn care companies. The lawn care companies don't want to pick up the poop, but they also don't want to run over it. So I'm sure if you got in with a couple lawn care companies, they would happily tell all their clients to also be your clients. Many, many of these businesses, like say you're a deck staining, you just want to be a deck stainer and all you need is a paintbrush and a can of stain to do this right. The people who build the decks, they don't want to come back six weeks later after the wood has dried to stain the decks. So you could easily talk to the carpenters who are building the decks and get them to refer you business. I love finding people who refer you business because nobody else is doing that. Nobody's calling the plumbers and saying, hey, I put tile in showers. You plumb showers, like, let's work together. People ask you all the time for referrals. I actually asked my plumber who he would recommend to tile my shower. He said, I don't know anybody. And I said, I can't believe somebody who tiles showers hasn't called you yet and introduced themselves. So sometimes just, just making that little extra effort to network and call the right people and offer your services to the right people is just another huge advantage when it comes to guerrilla marketing.

[Nick Loper]

Yeah. On the pressure washing front, maybe that's like the real estate agents for people who are listing their houses like, hey, look, we can make your house look 10 years younger if we cleaned out this driveway or something like that.

[Nick Huber]

Yep. I would go straight to the real estate agent, the top agent in town, and say, I want to power wash your entire driveway for free right now and I want to show you how good of my work is and then give her, her or him your card after the service and boom, she's going to say, wow. Every house she lists, she's going to recommend that you come and get the driveway looking brand new because it adds whatever the data is on 1 or 2% of the home value when your house looks really, really clean when you're trying to sell it. So yeah, real estate agents recommend a ton of these services and a lot of times they don't have anybody ever soliciting them for referrals. So that's a really, really powerful way to drive business.

[Nick Loper]

Well, I love this stuff. I could geek out on this for a long time. Nick, really appreciate you joining me. Reaching out the Sweaty Startup podcast, definitely. Check it out. It's [e-mail] what's next for you? What's got you excited this year?

[Nick Huber]

Yeah, I just think that there's that why in the road when you get some customers coming in and you can decide to either keep raising your prices and make a great living or you can decide to hire employees and scale a business, but this is just such a powerful way to accomplish your goals. So I'm just so passionate about these service based businesses. We got the Sweaty Startup Reddit group that we have almost 20,000 entrepreneurs there bouncing ideas off of each other. That's Reddit.com so the sweaty Startup sub, you can link to that in the show notes. But yeah, I'm just really excited to get the word out more.

[Nick Loper]

Was that a group that existed or was that one that you started?

[Nick Huber]

Yeah, we started it from scratch. We basically have a little community of service based entrepreneurs that are running around doing these guerrilla marketing tactics, helping each other solve employee problems and naming their businesses and figure out what idea to go after. It's a pretty cool thing.

[Nick Loper]

That's awesome. What do you think attributed to that growth?

[Nick Huber]

Oh, I don't know. I think the podcast and getting on a couple other shows like BiggerPockets, some people started reaching out. And then I think one thing is the loneliness of being an entrepreneur. I think we all kind of feel it. You have your podcast to kind of meet people, and I have my podcast to meet people now. But before that, I couldn't really relate to a lot of other entrepreneurs who were doing a lot of this stuff. So a community was kind of something that was really in high demand because they. It's not something that you can talk to a lot of your friends about who work nine to five jobs when you're an entrepreneur and running a business. So it's. It's hard to relate to a lot of people. So I think that people kind of latched on to, oh, this is a place I can go where a lot of other entrepreneurs hang out that are just like me. So it's kind of refreshing.

[Nick Loper]

At what point did you stop hauling all the boxes yourself for the storage squad and say, okay, now I need to hire some help to. To make this happen. So I'm thinking with the dog poop pickup or the house cleaning or the window washing, it's like I could reasonably train somebody to do this as well or better than I could. I'm wondering at what point do you step out, or was that from the very beginning?

[Nick Huber]

We went through a couple really, really hard years, Nick, where we were trying to do everything ourselves. I mean, we were up all night in these warehouses. You'll hear about it on the BiggerPockets podcast. And one day we just said, listen, I mean, all we do. My partner and I would sit in a room and just say, we can't find any good employees. We can't find any good employees. If we could only find good employees, we would be able to thrive because we didn't have a customer problem. We had an employee problem. And one day we were just like, listen, we got to take ownership of this. Every single business that ever operates and hires anybody has this same problem. We can't just keep posting our indeed ads online and hope that these unicorns who care about our businesses walk in the door. So we did two things. Number one, we simplified the job so that it was simpler to teach and simpler to learn. And we put a bunch of training videos and processes in place to kind of get the point across of the core competency of the job. We took everything else off the plate. And number two, we raised our prices and had some money to actually hire some decent help. And those two things kind of allowed us to Put the money into finding the employees. I mean, we were pointing at the labor market and we were operating these really expensive cities where it's really hard to find laborers. And we finally said, okay, let's spend some time and money and energy recruiting employees just as we find customers. Like, we're talking about the guerrilla marketing for the power washing and the guerrilla marketing for all this stuff. We got guerrilla marketing tactics in place for finding employees. We were walking around with business cards and Panera and Starbucks handing them out, trying to find people who wanted to come work for us or earn extra money. And we were just constantly rotating and having open interviews once a week. I mean, it's really, really hard to find good employees. But if you can do it, that's when things really open up. And we were able to kind of scale and grow and, and make that shift.

[Nick Loper]

Okay, so there's a couple of things. You simplified the job. The SOPs or standard operating procedures, make life easier for them, set them up for success, and then raise your rates so you have a little more margin to theoretically hire a better caliber person.

[Nick Huber]

That's right, yeah. In the early days, they would have a. We'd walk around the clipboard and they had a list of 25 things they needed to do on the back of that clipboard. It was customer service. Packing the truck, loading the truck, labeling the items, writing the invoices, doing the scheduling. And we said, okay, what can we outsource off of these people's plate so that they can do five things really, really well and not worry about the customer service, not worry about the scheduling? So we had one person do all the schedules for all of our branches. We had one person do all the hiring for all of our branches. We had one person do all the recruiting for all the branches so that everybody had a simpler job in the company. They could do it much better. Most importantly, Nick, we were no longer looking for unicorns who are spectacular at everything to come in and grow our business. We could hire just normal, average people that could do it really, really well because it was so much simpler.

[Nick Loper]

That's a really powerful takeaway. Chris Ducker calls it the superhero syndrome in looking for virtual help. But it goes the same whether you're hiring somebody locally or hiring somebody virtually. It's like, just because you're doing all these things yourself doesn't mean it's reasonable to expect somebody else is able to do all these things and operate at a. At a high level. Nick, really appreciate you joining me. Sweatystartup.com check him out over there. Let's wrap this thing up with your number one tip for side Hustle Nation.

[Nick Huber]

Thanks Nick. My number one tip is going to be to look up from your computer screen. It's so easy to get sucked in to the online sexiness of these other E commerce, you know, fba like online businesses. My piece would be to just look when you're walking around your own town, think about businesses a little bit differently. Think about how that company makes money, think about what opportunities are right there in your town. Look up from your computer screen, get out, shake hands, see people, and I think you'll be a little bit better off just with that mindset.

[Nick Loper]

Sounds good man. Thanks so much and we'll catch up with you soon.

[Nick Huber]

I really appreciate everything, Nick. Thank you.

[Nick Loper]

That is it for me. Thank you so much for tuning in. Until next time, let's go out there and make something happen and I'll catch you in the next edition of the Side Hustle Show.

[Host]

Hustle on now if you want more Nick Huber in your life, we actually did a follow up to this original 2020 recording in 2023. That was episode 578 where we pitted his sweaty startup model against the so called laptop lifestyle, the location freedom promised by certain online business models. So that might be a good one to check out. Next, just scroll down to 578 in your podcast player app. You'll find that one there. Otherwise, I want to invite you to create your own curated side Hustle show playlist of the episodes that are going to be most helpful and impactful for you. All you got to do is go to Hustle show, answer a few short multiple choice questions and it'll recommend eight to 10 targeted episodes based on your answers. You can add those to your device, you can learn what works and you can go forth and make some more money this year. Again, that's at Hustle Show. Thanks again for tuning in.

[Nick Loper]

Cheers.

[D]

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