Podcast Summary

Podcast: To The Point - Home Services Podcast

Host: RYNO Strategic Solutions
Episode: Why Some Home Service Businesses Stall at $5M While Others Hit $50M
Date: September 2, 2025
Co-hosts: Chris (A) & Chad Peterman (B), with recurring guest banter and insights.

Episode Overview

In this insightful solo episode, Chris and Chad Peterman (of Peterman Brothers) dig into a notorious bottleneck in the home services industry: why so many companies find themselves hitting a wall at the $3M–$5M revenue mark, while competitors rocket to $20M, $30M, and beyond. The duo—tapping Chad’s real-world expertise—explore what really holds businesses back, exposing the operational, leadership, and marketing mistakes that create this ceiling, and provide detailed, actionable strategies for breaking through it.

The episode is packed with practical wisdom for owners of HVAC, plumbing, electrical, roofing, and related trades, with a candid focus on trust, leadership evolution, building teams, and leveraging marketing data—all delivered in the no-nonsense, straight-to-the-point style that defines the show.

Key Discussion Points and Insights

1. The $5M Stall: Mindset & Leadership Transitions

Timestamp: 04:42–12:00

• Why companies stall: Many home service businesses cap out at $3M–$5M not because of market limitations, but due to leadership reluctance to evolve from operator to CEO.
• Operator vs. CEO: Owners often remain too deep “in the weeds,” running calls or handling tasks better delegated, which strangles growth.
• First role to let go: Chad’s turning point was stepping away from sales he wasn’t great at (“I was a terrible salesperson… the first thing that grew our business was I stopped doing that” — Chad, 07:35). This unlocked time to work on, not just in, the business.
• Trusting others: Owners with “technician baggage” struggle to hand off control. Chad stresses honest self-reflection: “Oftentimes… you lack trust in others. That's a look in the mirror problem.” (09:33).

2. Signs You’re Still Acting as an Operator

Timestamp: 12:03–16:44

• Telltales: If you’re still running service calls, dispatching, or answering the phone daily at $5M+, you haven’t transitioned. “Someone else should be running the calls. You cannot do that and run the business at the same time.” (13:54)
• Vision matters: Many owners don’t actually have a clear growth target or compelling vision for what the next level looks like—and accordingly, their organizations stagnate.

3. Leading by Example—Self-Development is Key

Timestamp: 17:43–20:39

• Pace-setting: Leaders must set the cultural tone and growth pace. “If I'm not growing, then who am I as a leader for others to look at me?” (18:00)
• Continuous learning: Chad credits his willingness to learn and reach out to others for his growth trajectory: “How do I learn as much as humanly possible about this business?” (19:37).

4. Building Out a Real Leadership Team

Timestamp: 20:58–25:56

• Know your “zone of genius:” Identify what you are best at, and hire leaders to fill your gaps—finance, operations, sales, or otherwise. “What are the things you’re not really good at? That’s who you hire first.” (22:52)
• Right people, right roles: Leadership must evolve in fit with the company’s size; sometimes friends/family must be moved aside, which can be tough but is critical for scale.

5. Accountability Without Micromanagement

Timestamp: 25:56–31:28

• Systems and scoreboards: Use data visibility and metric tracking (booking rate, conversion, average ticket) to foster self-accountability. “Just email me our booking rate daily... what I saw… it got progressively better.” (27:09)
• Empowering teams: Let leaders create and own their plans. “They know they get support to hit the goals… they’re kind of managing themselves.” (29:24)

6. The Non-Negotiable System: Call Answering

Timestamp: 31:28–37:07

• Top priority: Systematize call handling/booking first—missed or mishandled calls are the most common failure point for sub-$5M businesses.
• Real-world woes: Chris recounts a $10M contractor missing dozens of business-hours calls due to misplaced trust in an AI answering service (34:13–36:39). “Let’s not focus on anything else right now other than changing that.”

7. Metrics That Matter

Timestamp: 37:07–39:29

• Booking Rate
• Conversion Rate
• Average Ticket
  “Coach up your techs, coach up your CSRs, and you’re going to win… If your conversion rate’s 30%, you’re okay telling 7 out of 10 customers you don’t have a solution?” (37:50–38:26)

8. Proactive Process: Shoulder-Season Planning

Timestamp: 39:29–43:26

• Seasonal downturns: Don’t rely on luck; use membership lists and targeted service calls to maintain revenue during slow periods.
• Allocation rule: 33% of shoulder season calls should be “opportunity calls” (older, out-of-warranty systems with replacement potential).
• Coordination required: Dispatch and marketing need to align, focusing especially on aged systems during slow months.

9. Biggest Marketing Mistakes at $5M

Timestamp: 43:26–47:40

• Lack of data-focused marketing: Owners frequently hire designers instead of lead-gen/data experts.
• Misallocation of spend: Spraying budgets across too many channels, rather than analyzing ROI per source.
• Gross under-tracking: Not using CRMs/service software to tie actual revenue to lead sources.

10. Smart Marketing Strategies for Small Budgets

Timestamp: 51:47–60:00

• Hyperlocal targeting: Focus digital and grassroots efforts on a core neighborhood/zip code before “scaling wide.”
• Brand-building on a shoestring: Community events, truck wraps, local sponsorships, and OTT (streaming video) ads can deliver outsized returns.
• Free media is gold: Get scrappy (“wheeling and dealing”), seek opportunities for coverage and neighborhood buzz.

“Could they see you with a postcard? Could they see one of your trucks? Probably a better likelihood they’ll see one of your trucks if you’re just concentrated in one area. They’ll think you got a shit ton of trucks and maybe you only got two.” (58:47)

• Media buying caution: Never buy radio/TV without a media buyer’s help (“Don’t ever buy TV or radio without a media buyer. Their cost is built in… they know what they’re doing.” — 58:11)

Notable Quotes & Memorable Moments

• “Oftentimes… you lack trust in others. That's a look in the mirror problem.” (Chad, 09:33)
• “Someone else should be running the calls. You cannot do that and run the business at the same time.” (Chad, 13:54)
• “If I'm not growing, then who am I as a leader for others to look at me?” (Chad, 18:00)
• “Know where your zone of genius is… what are the things you’re not really good at? That’s who you hire first.” (Chad, 22:52)
• "Do they even know how to win? What is their scoreboard?" (Chad, 28:44)
• “If you had a company that's under $5 million and they said they've been stuck there for multiple years, their growth is in their booking.” (Chad, 33:12)
• “Let’s not focus on anything else right now other than changing that (missed calls). Like, let’s not use that anymore…” (Chris, 35:45)
• “Don’t ever buy TV or radio without a media buyer... They know what they’re doing.” (Chad, 58:11)
• “If you’re at $5M, you got a lot of options to visit shops that are at $10M, $20M, whatever you want to be.” (Chris, 61:28)

Key Timestamps for Important Segments

• 04:42 – Introduction to why companies stall at $3M–$5M
• 07:35 – Chad on stepping away from sales, trusting others
• 13:54 – Clear signs you’re still in operator mode
• 18:00 – Importance of CEO’s self-development
• 22:52 – How to identify and fill your leadership gaps
• 25:56 – Creating accountability in leadership without micromanagement
• 31:28 – Call answering as the foundational process to systematize
• 34:13 – Real-life story: how missing calls kills growth
• 37:50 – Metrics that drive the business: booking, conversion, average ticket
• 39:29 – Scripted, proactive processes for shoulder season
• 43:26 – Marketing mistakes and nuances at $5M
• 51:47 – Smart, focused marketing mix for small budgets
• 58:47 – Branding and community focus with limited resources
• 62:15 – Final advice: self-reflection, identify and fill leadership gaps

Recap & Takeaways

• Growth beyond $5M requires a fundamental shift from “doer” to “leader,” with a willingness to trust, delegate, and relentlessly review your core metrics.
• Systematize call handling first—if you can’t consistently answer and book calls, nothing else matters.
• Own your weaknesses: Know your “zone of genius” and hire to fill the gaps.
• Accountability beats micromanagement: Use data and systems that create self-driven teams.
• Marketing wins are bought with data and focus: Hyper-target your area, measure every dollar, use a media buyer, and don’t overlook scrappy community building.

In Chris’s words (61:57):
“You don’t got to do everything, but you got to do something. No zero days.”

For growing home service businesses, this episode is a tactical guide—filled with hands-on, real-world advice for breaking through the $5M stall and planting the seeds for $50M+ success.