Founder's Story - From Law School to Garbage Trucks: How Alfonso Guerreri Built a $Millions Waste Empire | Ep 213 with Alfonso Guerreri Founder of RICI

Episode Date: May 5, 2025

Alfonso Guerreri, A Harvard-educated lawyer turned hands-on entrepreneur, founded RICI Contracting in 2022 and has since grown it into a full-service powerhouse. Today, RICI delivers construction, as...phalt paving, snow & property maintenance, waste management, and facility services across Ontario. Alfonso shares how he parlayed legal training into strategic vision, weathered early food-truck misfires, and now innovates a once-old-school industry with sustainability, operational excellence, and client-first focus.Key Discussion Points:Law Meets Hard Hats: How a top-tier legal education taught Alfonso discipline, risk assessment, and negotiation skills he now applies to multimillion-dollar contracting bids.Early Failures to Firm Foundations: The food-truck chapter that taught him to test market fit, manage debt serviceability, and pivot swiftly into construction.Building RICI’s Service Portfolio: The step-by-step playbook for adding roll-off trucks, portable toilets, paving rigs, and snow-plow fleets—each driven by recurring revenue needs.Ideally Niche Clients: Why focusing on property managers, REITs, and pension-fund portfolios ensures monthly billing reliability and repeat business.Innovation & Sustainability: How Alfonso is modernizing a legacy sector through advanced equipment, AI-powered fleet surveillance, and eco-minded operational upgrades.Scaling with Discipline: His criteria for debt-financed expansion, in-house versus subcontractor work, and turning low-risk jobs into entry points for higher-ticket contracts.Key Takeaways:Strategic Pivoting: Embrace early failures as fast-feedback loops that uncover scalable opportunities.Debt Serviceability Test: Only invest in capital assets when your recurring cash-flows can safely cover the payments.Client Lifetime Value: Lock in high-margin, recurring services for the same ideal customers rather than chasing one-off gigs.Operational Excellence: Leverage technology, standardize processes, and build sustainability into every service offering.Closing Thoughts: Alfonso Guerreri’s journey from articling desks to asphalt crews illustrates that true entrepreneurial grit lies in mastering finance-savvy expansion and relentless client focus. Tune in to discover how RICI Contracting is redefining Canadian facility services—one strategically financed roll-off bin at a time.Our Sponsors:* Check out Indeed: https://indeed.com/FOUNDERSSTORY* Check out Northwest Registered Agent and use my code FOUNDERS for a great deal: https://northwestregisteredagent.com* Check out Plus500: https://plus500.com* Check out Rosetta Stone and use my code TODAY for a great deal: https://www.rosettastone.comAdvertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

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Starting point is 00:00:00 Welcome aboard the Turkish Airlines podcast channel. Are you ready for a new adventure? Mayor of our passengers, this is your captain speaking. Welcome aboard the inaugural episode of the Widen Your World podcast, part of the Turkish Airlines series. Bettering your business takes working with the best. Hey everyone, welcome back to Founder's Story. Today we have Alfonso Guerrero, founder and president of RICI Group. And Alfonso, you've had an amazing experience going from law school, which I think I wish I went to law school. I feel
Starting point is 00:00:58 like every business owner could probably do better as a business owner if we went to law school. And I'd love to hear your thoughts on that soon but scaling and growing your company now you know a rapidly growing Canadian firm you have different industries and different companies within. So let's just start off with how why did you choose this specific industry or the the first industry you were in and why at the time period that you did. Yeah, 100%. It's quite a wild ride. So I did law school in the UK. I studied at the University of Harvard here. After I went to law school, I worked at a firm in Toronto. I worked on their art team and going through the legal licensing process and I didn't love it. I kind of wanted
Starting point is 00:01:42 to do something that I could get my hands dirty and enjoy being on a team and working in an industry that I kind of loved. And I kind of learned while working at the law firm that I didn't really love doing that. And I kind of wanted to do something more hands-on. I didn't want to do something that was an office job or work in the legal industry. I just didn't love it anymore. I fell out of love with it. So after working at the law firm, I decided to open, I went into the food business. So I opened a small food truck. And after a little while, we figured out that that industry wasn't kind of the best for growth. And there wasn't much opportunity to kind of scale that into a massive company, which always was our end goal. And you know, we wanted to utilize that legal education. So I kind of sat back. We ended up closing up the company. And I worked at my family's business.
Starting point is 00:02:29 I worked in construction. I worked for a roofing company. And during my time there, I was doing some part-time construction work. I launched RICI. We were doing small general contracting projects and interior, residential, exterior stuff, small projects. I decided to go full time with RICI in November of 2020, 22, 23.
Starting point is 00:02:57 So while I was running RICI, we started servicing larger clients, working in general contracting, using sub trades. As I kind of scaled to bigger projects and kind of more difficult projects that we didn't want our subs to do, we started hiring our own team and we built our operation. We built our back office, we set up an office and did all the things required to kind of scale the growth into what it is today. So we started with general contracting when we inevitably ended up doing exterior work. We started to get into a lot of property maintenance, snow plowing, exterior landscaping, hardscape being inner lock, asphalt, concrete, stuff like that on a very small scale.
Starting point is 00:03:32 We were running all rental equipment. We didn't have it. We had one pickup truck. We had all, you know, a small crew of guys. I was working in the field at the time. As that scaled into bigger and bigger projects, we were spending more and more money on hauling and moving material, moving equipment, renting equipment. It wasn't working. It wasn't possible for us to really make money because we were spending thousands, tens of thousands of dollars
Starting point is 00:03:54 a week on waste hauling and equipment rentals. We were really fortunate to work with a lot of really good haulers. They kind of helped us build up our business and worked with us, but inevitably we got to a point where we needed our own truck multiple times a day. So we were kind of back and forth with the idea, do we buy a dump truck? Do we go buy another truck? So we ended up buying a large roll-off truck, a hook lift truck, where we were able to buy some bins and add another revenue stream to our business. That was in 2024.
Starting point is 00:04:23 And we started servicing other clients. We were doing roll-off bins, servicing our own sites. A lot of our sites, our demo sites, our construction sites, a lot of garbage, a lot of material. So one thing that allowed us to operate more profitably and be able to have the opportunity to have the funds readily available to scale was a huge challenge to us. And to be able to invest in ourselves while somewhat decreasing our cost, because it's still very expensive to run equipment, we were able to run more efficiently and have our sites finishing at quicker deadlines, not depending on other trades, depending on our kind of internal team.
Starting point is 00:04:58 And we've really, really made the push to bring everything in-house. We now specialize in servicing property managers in the Greater Toronto Area and across Ontario. We work at shopping centers, we work for multi-family residential buildings, industrial plazas, commercial plazas, offices, the whole yard. And the main kind of proponents of our business are niched into servicing those property managers. We offer four line items to our business. We have waste management and recycling, so that's our roll-off truck, our front-end truck, which is the truck that hooks the bins up. We do rear load work. We have a portable toilet division with a small vac tank. We also offer ash ball paving, interior general construction still, and other services in the construction field that are
Starting point is 00:05:40 specialized niches towards our clients in addition to our property maintenance and snow care. So you mentioned how you had the first failure was the food truck and then that then led into the other things. I've had like five or six failed businesses and ideas myself. As we know, business is a higher risk. So knowing that you didn't really enjoy law and then you went to a business that then failed and then you were then thinking about what do I do next? When you looked at the risk of then working for somebody versus then creating another company, did you have any doubt that, okay, maybe I should go back to maybe working in law
Starting point is 00:06:22 or getting a corporate job versus starting another company. Yeah. The trickiest part is everybody around you tells you to do the same thing. You have a law background. You can go work in the corporate field. Like why you kind of hustling it out through business. And the hardest part about closing the food business was we weren't even doing bad. It just there was no opportunity to scale. So that's kind of where we decided like, let's just try again one more time.
Starting point is 00:06:47 Kind of get plagued as like not the failure, but you know, you have two goals and like, you don't like both of them. Maybe, you know, you're the problem. And it's tough to kind of, you know, your family and friends and people around you tell you, just go back into law, go finish your licensing and go practice. But it's double ended, right? Well, it's impressive that you realize that you're going to stop and change. Many times what I see, people will continue in the business
Starting point is 00:07:14 and they just keep going because they don't want to give it up and they don't want to start something new, which I think could be a huge detriment. What was that turning point that happened that you said, okay, we need to shift out of this and shift into something else? Yeah, because I always had an interest in construction, it got to a point in the food business where we felt that, okay, we need to invest a million dollars, let's say to kind of get this thing to the next level. But with the revenue we were getting, we would
Starting point is 00:07:41 have had to take on massive debt more than what we would have been comfortable taking on. And the turning point was we're unsure if we could service this debt if we decided to do this scale. You know, it's very expensive, right? So that's why we kind of inevitably decided to shift away from that business and move to something that we felt more comfort in and a possibility to scale and grow with kind of less daily and operation, small operation or challenges. So wouldn't and that's I mean, debt could be like the greatest thing ever or it could be the worst thing ever. Right. So when you when you look at the new company, because I know you it sounds like you have heavy inventory or large inventory costs in terms of equipment.
Starting point is 00:08:23 inventory costs in terms of equipment. So how do you look at debt or purchasing of equipment or inventory now that your company has really scaled? Yeah, and it's millions of dollars. It's so tricky kind of saying, I'm going to stay being this guy in a pickup truck servicing interlock and making a good living. You know, your family's making money and it's it's hard to say, like, let's take that step and ultimately comes down to debt serviceability. When we feel comfortable carrying more debt and we feel like we have, we're very fortunate to have recurring cashflow from our maintenance business to service that debt. So we felt comfortable taking the risks on buying equipment and investing the capital into ourselves. Right. And the only reason why we felt comfortable doing that in versus in the food business, which, you know, we're long out of, um, it's, it's a hundred percent down to dead service ability. And I don't even think risk to a point.
Starting point is 00:09:11 I think, uh, the ability to service that with what you currently have without depending on that equipment, because yeah, I think it's, you know, very wise to think that you can do very well and that you can get a lot of work. But if you're not sure what you have, you don't have 10, you haven't worn any tenders, you haven't worn any clients, you don't have the equipment yet. You have to be comfortable servicing that debt with the revenue that you had and that you know you're going to consistently have. And that was our understanding of when we were ready to take the next step
Starting point is 00:09:35 and buy the next piece of equipment. I like your, your strategy around adding in additional revenue streams and creating, for example example like you said you had to spend money on something you might as well bring that in-house and create a new revenue stream from that. So how do you look at now in terms of when when is it right to add in a new revenue stream? When is it right to add in a new business versus when is it right to hire vendors? Yeah, it's totally case dependent, right? Some of our stuff, still to this day, we use sub trades every day and it just doesn't make
Starting point is 00:10:11 sense for us because most of the times it comes down to what our clients need. So because we only service property managers, we're not going to invest in things that they don't need and that we don't think that we could upsell to the same client. That's ultimately our end goal is getting the most revenue out of the same clientele right without over leveraging your risk and not offering way too many things that are way out of the sort of our service needs and never be at the end of our day. We kind of offer two services. We offer construction and we offer a waste management, um, to the same type of
Starting point is 00:10:40 clientele. That is interesting that you've really honed in and you figured out who your, who your ideal client is almost essentially who the avatar is or however you want to say it. Um, I would imagine a lot of people struggle with this and that's why they're, they're trying to sell, you know, something to everyone, which we know is, is either impossible or very costly. How did you hone in and figure out that this is your most ideal client?
Starting point is 00:11:04 Yeah, a hundred percent. I learned very quickly from my father who ran a waste management business for 25 years that got acquired by waste management many, many years ago. He picked a clientele and he serviced them the best way possible. And he offered multiple services kind of solider, what we do on a way bigger and different scale. But when we felt that we were getting paid every month, and not that it's difficult to get paid from general contractors or from private owners, or REITs and pension funds, they're not going to not pay you if you complete the services that you give to them, which is the biggest risk in our industry is not getting paid by the client. Because we carry so much of the front side load on the transaction between the two, right? They
Starting point is 00:11:44 give us the PO to do the work. We buy all the equipment, we buy all the material, we do all the hauling and everything kind of gets brought to the site, you know, before you even see money, all right? So you need to make sure that that client is going to pay you. And for us, we felt that not that there's any issue with contractors and we work with still with contractors, but they're not our core clientele. We felt that working with REITs and Pensioners not only do they have access to the best buildings, the most budgets, they're spending the money on these additional means that kind of single owners don't really care to, not that they don't care, but if the funding is not needed to be spent,
Starting point is 00:12:17 private owners aren't going to spend it. So, you know, with capital budgets and maintenance budgets from property managers, it's important to kind of focus in on that niche because we know that they're gonna be spending the money and they're investing in their buildings. Whereas private owners and small managers and contractors and being a sub, it's different, right? You're not working for the wealthiest of the wealthy, or you're working for private owners.
Starting point is 00:12:39 And their money means a lot more to them than, not that it doesn't mean to the property, but you know what I mean, on the grand scale of the transaction, right? Yes, I totally there's this like meme or saying it's like, you know, if the client who spends 500, 5,000 or 50,000, I'll take the client who spends 50,000 and they will many times complain less about something than a $500 client. Their money means different when they spend money. I'm curious about sales.
Starting point is 00:13:09 When it comes to sales, and you're obviously selling larger ticket services, what do you find, whether it's you, your sales leadership, or your sales team, is there some process or something that you found has really worked in terms of selling these larger B2B deals? It starts on servicing the client very well on services that you make zero money on. And not that we don't get revenue, but very low revenue items.
Starting point is 00:13:39 There's a big process of being approved with these asset management firms, I'll call them, property managers, REITs, petroplans, whatever, just to be eligible to work for them. There's high barriers to entry. You need a big insurance policy. You need, you know, back office. You need to have the abilities to kind of work on this scale of working for these big companies. So just to get that set up and just to kind of work with them doing anything is a fantastic opportunity. It's how we start. Most of our clients started with snow and small interlock maintenance and landscaping and clean outs of units and stuff that not nobody wants to do, but it's not the glamour stuff and
Starting point is 00:14:15 it's not great, but it allows us to service the client phenomenally, give them a phenomenal report, you know, do all the things that we would be doing on these big large scale projects that we inevitably grew to. But it started with a small transaction. And that's, I'm sure how most of the people in our industry grow rates. It's tricky to convince somebody to give you a half a million dollar parking lot, a job, but there's not that much risk for the property manager to pay you $700 to go clean out a unit. Like if you don't do it right, they'll just call somebody else. But by doing that right, that goes into something else and goes into a back to base demo that goes into building out a unit that goes into doing a patio slab. Like there's all kinds of things that it grows through. Right. And then hopefully you get the opportunity
Starting point is 00:14:56 to one day bid on bigger stuff. But our sales process. Yeah. Go ahead. Sorry. Sorry. I think we have a bit of a gap in time here. No, no, that was great. I remember my first company was a very, very small commercial cleanup company. Very, very small. And we got a phone number and we got a call from Kohl's department stores to come and clean because it was the same phone number as the previous cleaning company. Total fluke. And we had no idea what the heck to do. So we just looked in the phone book at that time and called other cleaning people and outsource made like no money on the deal.
Starting point is 00:15:35 And eventually we closed the business, but it was a very interesting learning experience. So when you look back and you, you, you meet somebody who says, uh, Alfonso, I'm also a law student. I'm a college student. And I'm realizing I don't think I even want to do what I'm going to school for. What kind of advice would you give to them if they say I want to be an entrepreneur as well? well like I got a degree in something that I still use every day. You know we do our own analysis and we like to hopefully write our own deals one day. It's hard because you do something for so many years you get this education you spend so much money on it. It's hard to think that you're not going to practice that thing but I think inevitably you just have to do it. One of the best things I've ever done for my personal growth was picking up a new language whether you're traveling leveling up your career,
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Starting point is 00:20:08 slash founders. Makes you happy and that you think, obviously it's bad to think make money, but I never believe the end goal is to do the thing that's going to make you the most successful in whatever capacity that that is, whether it's your personal success or wealth or it's tricky, but it's inevitably a decision that has to be made by yourself and you can't let people sway you one way or another
Starting point is 00:20:28 Hey If you can be happy and make a lot of money and be successful and be satisfied That seems like a you know win-win right there. So as as you've grown and skilled What do you find whether it's work or life? What makes you the most happy? As a diva, that's a loaded question. I wasn't expecting that. It's hard. It's happy is kind of a tricky question, right? Because I never believe we want to be happy
Starting point is 00:20:52 at the stage that we're at in our growth and our capacity, but inevitably we're always aiming for higher goals. And it's hard to be comfortable in the kind of shoes that you're currently in. And you always see yourself at a way bigger scale servicing way bigger clients on a way bigger region of mass. But I'm very happy with what we're doing and we're very happy with the stage that we're currently at and we hope to continue going in the same trajectory. Maybe I should use the word content than happy. But yes, that's all right. So if you had a crystal
Starting point is 00:21:19 ball and you said in five years, this is where I want to be, where would you want to be in five years? Yeah, a hundred percent. We want to continue servicing our same for the clients, service them in the same way that we are on a bigger scale. We hope to never, we go this to a national kind of program to service our clients who are national vendors across Canada. And it never be, hopefully end up moving itself and into bigger and better projects.
Starting point is 00:21:42 A lot of people are talking about the quote unquote boring business. It seems like this is like what people want to get into. They want to get into like home service or certain types of industries that are not going to be disrupted by technology. How do you see this playing out with the fact that obviously AI, we already know is already disrupting or about to disrupt you know many things but I don't know about how how how will this industry be disrupted if it will at all.
Starting point is 00:22:11 Almost we're almost in the sad way to kind of say this the ones that are hoping to rush that transition into bringing your technology and analyzing AI and using it to service our clients better. Our goal is to bring as much technology and which is why we invest in the most modern and advanced equipment. You know, our pavers are built with kind of the max capacity that they could have
Starting point is 00:22:32 to be eligible to service our clients in the way that they are. We maximize our reporting, we have all AI cameras built into all of our trucks to help us with surveillance and not only just safety, but we have the ability, especially on our snow routes and our construction services route, to actually go into our trucks. And we have an AI camera built in the truck that not only maps productivity and safety, but we have a live feed to be able to see our frontline workers without having to kind of be there every second.
Starting point is 00:23:00 So even if we have four jobs, five jobs going across the city, across two different companies, we have the opportunity to see that live through this technology and through AI. I don't think it's a thing that's going to hit our front. It could one day, I'm sure it will. But I think the boring business was definitely the model. It's very different than our first business, which was not a boring business. You know, everybody wants to be in the food business. It's fun and exciting. And that's what we kind of boiled it down to was what are we going to do in a business service space that's going to allow us to maximize revenue and have the opportunity to grow. It's not from a fun business, unfortunately. It's dirty, it's rough, it's kind of gross business, right? Garbage and poo is not fun to move around. Paving is not fun.
Starting point is 00:23:45 Like working, it's not, it's fun in its own way, but it's a very tough thing from people at the outside to say, well, why would you want to do this? You work in a nice office in the city, you drive a nice car. Why would you want to go backwards? And it's not backwards. It's back to service and it's having the ability to scale a business that we know and that we understand it in the best way possible. Reminds me of that show, Dirty Jobsirty Jobs. I really liked watching that show. It was very interesting. But Alfonso, it seems like you were ahead of the game. You foresaw this industry, this business. I mean, everyone who I know that does food is pretty miserable. It's very small margins and they work 24 seven
Starting point is 00:24:27 and you know the next restaurant comes in and they're completely gone. So it seems like you're a much more stable industry that you have a lot of previous experience and knowledge. But if you want to get in touch with you, they're super inspired and they want to know more information or maybe they want to, you know, they, they need your services. How can they do so? Absolutely. You can visit us on our website, ricicon.com, or you can add me on LinkedIn, shoot me a message, and we'd be happy to chat with anybody interested, especially even legal students that are looking for some guidance. Amazing. There you go. You're going to help a lot of legal students get into a service industry outside of law. Very interesting. But Alfonso Guerrero, this has been great. Thank you so much for joining us today on Founder's Story.
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