Episode Summary: "How To Outwork, Outbrand & Out-Culture the Competition"

Podcast: To The Point - Home Services Podcast
Host: Chris & Chad
Guest: Steve Holland, Founder of Mr. Holland's Heating Air and Electric
Release Date: March 18, 2025

1. Introduction to Steve Holland

The episode kicks off with an introduction of Steve Holland, the founder of Mr. Holland's Heating Air and Electric. Chris highlights Steve's journey from starting his business in 1990 to successfully exiting in June 2021 with a company valued between $10 to $12 million. The hosts express excitement about Steve’s wealth of experience and insights, setting the stage for an engaging discussion.

2. Steve’s Journey into the Trades

Steve opens up about his challenging upbringing in West Bend, Wisconsin, a small city predominantly focused on farming. Growing up amidst family dysfunction and instability, he shares, "I lived in 15 different homes over a 16-year period" (00:55). Despite these hardships, Steve found his calling in the trades after working at Gail Co., where he built farm equipment. A pivotal moment came when a friend's father encouraged him to pursue a career in the trades, leading Steve to become a helper in HVAC—a decision that would shape his future.

Notable Quote:
"When I quit my job and got into the trades, I had no idea what a condenser from a furnace was. But over time, it turned out to be the best decision I ever made." (06:00)

3. Building and Growing Mr. Holland's Heating Air and Electric

In 1997, Steve took a significant risk by purchasing Earl Empkey’s HVAC business for $10,000—a challenging feat given his financial constraints and a growing family. Despite initial skepticism from his wife, Steve persevered, working tirelessly—seven days a week—for seven years to build the company. By 2021, the business had grown exponentially, achieving a $10-12 million run rate annually.

Steve recounts the early days with vivid anecdotes:
"In my first week, I was outside drilling with a right-angle drill, and it knocked me out cold. Weeks later, I was sweating in a 90-degree attic installing a UNICO system. I questioned my decision, but sticking with the trades paid off." (09:30)

4. The Importance of Employee Engagement and Culture

A significant portion of the conversation centers on the critical role of employee engagement in business success. Steve emphasizes that employees are the most valuable customers a business owns. He states,
"If you take care of your employees, you honor them, respect them, and genuinely engage with their lives, they become advocates for your company. They'll say, 'I love working for Steve; he takes care of us,' which directly influences customer satisfaction and loyalty." (32:47)

Steve reflects on his own practices:
"I made every single mistake in business except missing a payroll or a tax payment. Learning from these mistakes, I prioritized getting to know my employees personally—knowing their spouses' names, hobbies, and being there for them during tough times." (38:02)

5. Branding and Scaling the Business

Steve shares his strategies for scaling the business and the pivotal role of branding. He recounts collaborating with Roy Williams, the "Wizard of Ads," to craft memorable radio advertisements that built strong brand recognition.
"Branding takes time, money, and patience. At nine months in, we almost quit our branding campaigns, but perseverance paid off as our phone started blowing up. Roy advised me to stay patient, and it worked brilliantly." (30:39)

Furthermore, Steve discusses his approach to scaling through strategic acquisitions, targeting small mom-and-pop shops with outdated equipment. This move not only expanded his service offerings but also allowed him to harvest significant value by upgrading and improving existing systems.

Notable Quote:
"You cannot sell your way out of problems. If you have cash flow or margin issues, fix those first before trying to scale your sales." (31:01)

6. Lessons Learned and Advice for Scaling Businesses

When asked what he would do differently if starting over, Steve emphasizes the importance of operational soundness before scaling.
"Ensure your business is operationally sound—proper pricing, healthy margins, and resolving inefficiencies. Scaling a problematic business merely compounds existing issues." (22:14)

Steve also touches on the pitfalls of private equity in the trades industry, warning against approaches that neglect employee well-being:
"Private equity firms often fail to engage authentically with employees. A positive, compassionate culture retains talent far more effectively than merely offering high wages." (35:54)

7. Future Endeavors and Open Invitation

Towards the end of the episode, Chris inquires about Steve’s current ventures. Steve confirms he's open to providing consulting and mentorship to other businesses, highlighting his ongoing commitment to helping others succeed:
"I’ve helped several businesses through Airtime 500. If you need assistance, reach out, and I’ll do my best to help or connect you with someone who can." (51:59)

8. Conclusion

The episode wraps up with mutual appreciation between Steve and the hosts. Chris encourages listeners to connect with Steve for further insights, while Steve emphasizes the importance of genuine employee engagement and strategic branding as cornerstones for outworking, outbranding, and out-culturing the competition.

Final Takeaway:
Building a successful home services business hinges not just on hard work but significantly on fostering a positive, engaged workplace culture and investing in strong, patient branding strategies. Steve Holland’s journey serves as a testament to these principles, offering valuable lessons for entrepreneurs aiming to scale effectively and sustainably.

Notable Quotes with Timestamps:

• "If you take care of your employees, you honor them, respect them, and genuinely engage with their lives, they become advocates for your company." — Steve Holland (32:47)
• "You cannot sell your way out of problems. If you have cash flow or margin issues, fix those first before trying to scale your sales." — Steve Holland (31:01)
• "I made every single mistake in business except missing a payroll or a tax payment. Learning from these mistakes, I prioritized getting to know my employees personally." — Steve Holland (38:02)
• "Branding takes time, money, and patience. At nine months in, we almost quit our branding campaigns, but perseverance paid off." — Steve Holland (30:39)

Connect with Steve Holland:

For listeners interested in consulting or learning more about Steve Holland's strategies, his contact information is available in the show notes. Don't hesitate to reach out and leverage his extensive experience to grow your home services business.

Disclaimer: The transcript provided was partial, and the summary reflects the content available up to timestamp [54:46]. For a comprehensive understanding, listening to the full episode is recommended.