Next Level Pros - #131: 3 9-Figure Businesses in One Room? How Tommy Mello, Chris Lee, And Daryl Kelly Grew Their Businesses to Hundreds of Millions of Dollars
Episode Date: November 22, 2024Welcome to a new episode of Next Level Pros! In this episode, we're thrilled to have Tommy Mello, the mastermind behind the highly successful garage door service company join Chris Lee, a dynamic lead...er known for his innovative approaches in the fitness industry, and Daryl Kelly, who has made significant strides in the health and wellness sector. Together, they share invaluable experiences and lessons on navigating the challenges of entrepreneurship, building sustainable business models, and the importance of creating a culture of trust within their organizations. Tune in as they unfold the secrets to their success and personal growth, providing you with actionable insights to elevate your professional and personal life. Apply to be on the show: https://forms.gle/hwDijQPFyKCEtHNs8 Highlights: "You're only as good as the team you build around you." "Entrepreneurship is about adjusting the sails when the wind changes direction." "Leadership means being a visionary, not just a manager of the status quo." "Growth is never by mere chance; it is the result of forces working together." Timestamps: 0:00:00 - Introduction: Sales and Visionary Mindset 0:06:09 - Challenges and Success in Business 0:14:49 - Cultural and Personal Growth 0:24:32 - Building a Strong Business Partnership 0:32:22 - Leadership and Team Dynamics 0:41:56 - Paradigm Shifts and Business Growth 0:49:12 - Cultural and Operational Excellence 0:57:24 - Adapting to Change and Overcoming Challenges 1:05:05 - Building a Sustainable Business Model 1:18:43 - The Importance of Health and Self-Care Looking to scale your business? Want to learn directly from the same team that helped me sell my last business for 9 figures? Click this link below to check out how you can work with us. https://nextlevelhomepros.com/grow-home-service-vsl Join my community - Founder Acceleration https://www.founderacceleration.com Apply for our next Mastermind: https://www.thefoundermastermind.com Golf with Chris: https://www.golfwithchris.com Watch my latest Podcast Apple- https://podcasts.apple.com/us/podcast/the-founder-podcast/id1687030281S Spotify- https://open.spotify.com/show/1e0cL2vI1JAtQrojSOA7D2 YouTube - @thefounderspodcast
Transcript
Discussion (0)
That's sales 101 is how to win friends and influence people and get people to buy into your dream
We're us entrepreneurs. We really are good at that. We're really good. Like I'm an optimist
I don't care if the cup is empty. I make it half full and like but people are like dude
That's not even real
Like there's no way that's possible. I'm like there is well, it's funny like I had this picture
It was like four different garages. showed the Google garage the Facebook garage and we had the SoulGen garage and we would
always be like look this is us. Here's something interesting though when I when
I grew up that it was common to say you know be a man of your word yeah I
realized like as a visionary you can't be a man of your word you got to be a
man of your vision right because if you're a man of your word like you've
got to know how to fulfill on what you're saying All right, guys. We're doing a double podcast here Chris Lee and Darrell Kelly are here. We've got the founder podcast
He's the home service expert. Whoo. We actually just rebranded
What is it now next level pros, baby? Next level pros. Let's go. Come on
So I'll just do an intro you guys guys know I've got the garage store business.
Yep.
Things are going really, really well.
I don't care what size you get to, there's new challenges.
Like people are like, man, I love to be where Tommy's at,
but it comes through two decades of failure.
And still, the anxiety and stress,
luckily I can take this, I can take it on the chin.
It doesn't really affect me.
But I really feel like we're just getting started. Like I know people that are at like five million, they're take it on the chin. It doesn't really affect me. But I really
feel like we're just getting
started. Like, I know people that
are like five million, like, that's
it. I hit my cap.
I'm done. I want out.
I'm going to make enough money to
live the life I want.
And depending on your age and what
you want. But I'm
home service guy through and
through. I'm blue collar.
My mom was a realtor.
My dad was a mechanic.
We came from a really, really modest house in Michigan.
Not low, low, low income where we were like,
didn't have clothes to wear to school, but definitely,
definitely not doing great. And I just love helping people, man.
And I'm glad we get to do this podcast.
Well, that's the cool thing. I think we all come from very similar backgrounds, right?
Darryl grew up in a double wide with eight kids.
You know, my dad was a school teacher,
mom was a stay at home mom.
Like all of us really came from like basic essentials, right?
We all had shirts on our backs and you know,
food on the table and good loving family or whatnot,
but we've all built something pretty amazing.
You know, it's interesting what you're talking about.
So like the whole premise of our new show
is with next level pros is that like,
no matter where you're at, there's always the next level, right?
Like you always have the ability to level up and frankly,
like success and happiness come from when you are leveling up, right?
When you're plateauing or leveling down, like no matter how much money,
how much success you've had, like that's stressful.
Another, another truth you spoke was problems, right? I remember thinking I'm not good
at business because I can't get rid of these problems. And then I went to Tony
Robbins business mastery event. And one of the biggest takeaways was you always
have a new set of problems as you grow. New set of opportunities, new set of
problems, and those are always changing once I understood that it changed everything for me. Did your outlook? Yeah
You know, I just played a video to my entire company 800 people and it's called bring the fire
We do it once a month and the video I took 13 minutes made it into three
Giuseppe edited it and it said everyone wants a great life
You want to fall in love you want a great sex life?
You want to have your faith you want to have the best body you want the red seat apart when you walk in the room
But what harder are you willing to accept what struggle are you willing to accept because studies show over and over again?
None of these things come without their obstacles everybody Everybody wants the views, no one wants to take the hike.
Absolutely.
And not a lot of people are cut out for this.
Everybody says, I'm going to quit my nine to five
because I want to be an entrepreneur.
But that comes through, the number one word that comes
to mind is delayed gratification.
People want the possessions, they want to show off
to their friends, they want to keep up with the Joneses.
One of my best things is you will never save money.
If you can't save money at $50,000 a year, good luck at $200,000, $300,000.
Money really does become, when they say money is not the, the love of money is the root of all evil.
But the fact is that people secretly love money.
They love the attention. They love the Ferraris. They love showing off to their friends. In fact, I'm getting in the best shape of my life. I love walking in and people being like, what the hell is going on? But that's the main thing, though, is I feel incredible. Like, literally, like, I feel like I could take on the world. And this thing about faith, fitness, and family. I always had the finance figured out, but I was missing the other three. And I was not only off balance, but I was like really tilted to one side. And now I'm
just trying to fix it. And I'm, the more I work on me, literally the more I work on me, the better I
am for everybody. Yeah, it's pretty crazy how like everything really, you know, trickles over to,
one discipline always trickles over to one discipline always
trickles over the other right like when you especially when you start getting
your fitness in check and your relationships in check right like that
helps you be a better a better you know influencer on the side of the business
right or in your society or whatever maybe and like that's that's really I
mean the culture that we've always been about in creating.
When we were creating Soul Gen, it was always focusing on the whole human
approach.
And if we can actually develop these people more than just their financial
aspect, more than just a paycheck, right?
Like, it'll be better spiritually, help them be better physically or whatnot.
The loyal, the trust that was built within our organization
is absolutely incredible.
So I mean, I think that's probably one of the biggest keys that most business and entrepreneurs
miss, right?
Like they're just about solving financial problems rather than the other aspects.
How did you guys, you know, I'm curious, you guys, you basically said you guys are like
soulmates.
I mean, when you guys started in business,
tell me a little bit about your relationship.
Yeah. Who handles what?
How'd you guys grew together?
So it's interesting.
And we always refer to, well,
I refer to Darryl as my work wife, right?
Like, we have to figure out how to work together
the same way I have to work with my wife,
just no sex, right?
Yep.
And it's been interesting.
We've known each other for a long time.
We first met when I was, I think, 13.
Darrell was 15.
His oldest brother married my oldest sister.
Wow.
Yeah, so that's where the initial introduction.
But we didn't have this immediate connection
of best friends or anything like that.
In fact, we didn't hang out, I think, what, six years later?
Eight years later?
Quite a while later.
Yeah.
So you were 21, you were 23.
Yeah, yeah, so I was 21.
I come home off a two-year mission.
And Darrell was like, hey, dude, come sell with me. And immediately
we got this really good flow as far as balancing out each other, right?
I think that initially for me, what attracted me to Chris was I was super ambitious and
I would talk about things. And then all of a sudden, Chris was talking about things in
a bigger way. And I'm like, wait, I'm going to talk about it even bigger. And it was like
this flow of-
You push each other up.
Yeah.
Yeah, so I mean, for the last almost 20 years,
we've been doing business together in one aspect
or another.
We had two divorces along the way,
which I think any good relationship has
to go through hard times, figure out how to-
You're on your third marriage.
No, I'm kidding.
I'm kidding. I'm kidding.
But yeah, I mean, we broke up from a business standpoint
a couple different times, like didn't talk to each other.
I think the longest point was, what, 18 months or two years?
Yeah, it was about two years.
And I think, and looking back, it was just a maturity thing.
We didn't know how to communicate our differences.
We didn't know how to work through it.
So we just, that's what we did.
Yeah, it's tough stuff.
Having a partner in crime.
Yeah. And I think some of the
struggles is like I'm a big
voice in the room. You know how
it is.
Oh, yeah.
Me and you like
pushing each other.
When I watched him on stage, I'm
like he starts walking out of the
crowd. I'm like, my move.
Got two alphas just and And so Darryl has some alpha in him.
It's just not as crazy as me.
And so I think some of the struggles over the time
is like, I steal a lot of the limelight, right?
I'm the loud one.
I'm the crazy one in the room.
Even though Darryl, like if I'm out of the room,
Darryl is loud and crazy.
It's hard to compete with Atani.
I think what's good is working with people like you,
you guys are very extreme.
And it's like an edge that you get from someone like you guys.
And so for me, I feel like I have a lot of ambition,
a lot of drive, a lot of vision.
But I feel like with Chris, it gives me like that edge, that little bit more craziness
that you just don't get from anyone else. And I think that's what I've been able to
benefit from is like keeping Chris in a position where he's always like a little
crazy in his thoughts and his ideas. Well, the dreams, I'll tell you what,
when I'm talking to my team, they're like,
what's up, dude? Like Like you don't dream like anybody.
I'm dreaming like, forget the solar system, forget our galaxy.
I'm dreaming about like every galaxy.
Like they're like, wait a minute, why aren't you happy?
We just set a record, record day, record week, record month, record quarter.
And I'm like, I am happy.
I really am. And I don't show it right.
And literally, Luke, my CEO, talked to me yesterday. He's like, I am happy. I really am. And I don't show it right. And literally,
Luke, my COO talked to me yesterday, he's like, a lot of people take you. They don't know you like
I know you. And you just bug in. And you say, what's going on here? And I said, you're right.
I should say, download me on this. Catch me up. And I always take the technician's side. Because
literally, I'm a technician at heart. Seven years in the field before I owned the company but I was also the tech and I'm like my dreams are not that crazy and I told
the guys I was talking to yesterday I said for some reason most of my dreams come true.
It's like I manifest in my reverse engineering and it's hard to work with people like us.
It's very very very hard because they're like... We rub people raw and wrong, you know.
Oh yeah, and you know, we're very rare.
And it's bad, it could be very, very toxic.
And it's important that we recognize this
because coming from a place of gratitude is hard sometimes
because this is, I'm always driving forward
because I'm like, who cares if we fall?
Get back up. And everyone's like, it's not time, we're not ready. I'm like, I'm always driving forward because I'm like, who cares if we fall? Get back up.
And everyone's like, it's not time, we're not ready.
I'm like, I don't care.
But here's what I've learned recently.
What if I sat with each one of my direct reports
and went through and made it their idea
and actually got their buy-in?
And when we sit in a room together, they say,
yeah, we've talked about this, it's go time.
Rather than just saying, hey, I got an idea. Let's go. They're
like, you get a lot of ideas. So I got to be careful to pull one off and put one in.
I think that's, Darrell's been my strategic advantage. I mean, it doesn't appear, you've
never had like a right hand guy, right? Like a business.
Me and Adam were like, we were, we called it the TNA show, Tommy and Adam. He had equity.
He did very, very well. He's got millions, tens of millions of dollars.
It's just this Cameron Harrell notion of double-double,
of certain people can help you double-double.
Adam was able to do whatever he wants to do,
but it became, he became a gatekeeper.
And I'll say, I love the guy.
We're still best of friends.
But he's no longer involved.
He's no longer involved.
Right.
So for Darrell, Darrell's always kind of been my filter,
right?
Like, because, as you pointed out,
you know, it's very easy for a guy that
has our type of personality to just be like,
got this great idea.
Let's run, right?
And so I go to Darryl, I'm like, dude, got this great idea.
And right, he understands that only like 1 in 20
we should actually go and implement.
I think what's also funny is just the kind of damage
control.
Chris comes in with a ton of energy,
and it throws people off.
And sometimes people can misinterpret things so quickly.
And so I feel like a lot of times I'm like, no, no, no, no.
Or the other part of it is I'll put in a place a new policy.
And because Chris is such a loud voice,
everyone thinks Chris is the one behind everything.
And so he always gets the blame.
Oh, yeah, dude.
I don't know if you've ever experienced this,
but in our organization, if something doesn't go right,
it's my fault.
Yeah.
It's a great position for me to be in.
I'm never wrong.
That doesn't happen with me because I've kind of
shielded myself as saying, listen, guys,
I'm not going to do the firing.
I'm not going to put together.
I stay away from things, but I always say I live on Mars.
And I'm looking at the volcanoes, the earthquakes,
the hurricanes.
And I zoom in, but I zoom back out pretty quick.
I'm not afraid to top grade.
In fact, I had a meeting with my COO three weeks ago,
took him to my house, and I said,
listen, man, I'm gonna be quite frank,
you're the bottleneck in this business right now.
You got 10 direct reports, I wanna whiteboard with you.
I said, how many people are you micromanaging?
I said, then we need to top grade those.
And I said, I'm not trying to be, I said, you might be better as a chief revenue officer. And I wasn't a
threat. I said, you're in it to win it, right? I said, your best talent is creating revenue.
You're the best sales guy on the team. You understand the best way to communicate these
things to the techs. And he said, dude, he like said, I'm gonna go to work and I will have a plan within two
weeks.
And he shifted all kinds of things.
Yeah.
And he did the work.
And luckily, I have people like that on my team I can be really honest with.
Right.
Because I can't do that with everybody.
They'd be broken.
Yeah.
And it's so hard.
But I'm like, listen, man, I'm to be like, I don't have time to worry about
your feelings. I'm not trying to fire you. I'm not you're a part of my team. You're not
going anywhere. And I think people that really know me understand where I'm coming from.
It's not this place of like, I'm better, you're better. Or it's like, what can we do together
to win? And you know, we're a team. We're not a family. Because guess what? I could
get fired. The coach. I'm absolutely company, the coach could get fired if we know, we're a team. We're not a family. Because guess what? I could get fired. The coach, I'm under a P.E. company.
The coach could get fired if we lose. We lose enough games. We lose enough seasons. He gone.
And that's how it works. And we're all, and I don't feel that way. It would be very, very hard to get rid of me.
I worked three weeks on my contract to make sure that's almost impossible. Like, I'd have to really do something stupid. Right. I gotta keep my act together a little bit.
Oh, for sure. For sure. Yeah, man. It's, you know, the over the last 20 years been a pretty
crazy experience growing. We've done everything. I know you've been in the garage door space,
what, 14 years?
17.
17. So it's kind of been your thing for a very long time, right?
Like the one thing saying no to pretty much everything
along the way.
I said yes to too many things, but I
realized that's an ADHD thing.
And I think all of us have that entrepreneurial.
And we say, man, that guy's flipping houses.
I could do that.
And then you take away from the one thing
paying you the most.
Because there's times that you say,
we have the power to do anything we put our minds to. But what if we stayed focused on the one thing pain you the most? Yeah. Because there's times that you say, we have the power to do anything we put our minds to.
Absolutely.
But what if we stayed focused on the one thing?
Yeah.
You know, it's interesting.
And I think there's so many different paths to success.
Not one person, right?
Like, I can't line my path to success
and say, like, this is the reason why for you or me
or whatnot.
And so, like, you 17 years for us, it was like,
we said yes to so many different things,
so many different industries, so many different ideas
for so many years, until it was like, all right,
let's take everything that we've learned,
concentrate it into one, and just go.
Right?
And it's amazing to your point, right,
when you can say no to everything and yes to just one thing
and just go deep and wide, it's incredible what you can accomplish in a very short period
of time.
The question I have for you, what were some of the paradigm shifts that like transformed
you from where you started to who you are today in your business?
The number one thing is it's very rare you meet an entrepreneur that actually learns
from their mistakes and doesn't make the same mistake twice.
I was able to reflect and be like, that was dumb.
And so many people, like the biggest thing by far is I've kind of put my arms in the
air 150 times over again and said, I need help.
And I have this ability to go find the best of the best and I pay up.
I don't discount.
I buy like I want to be bought from.
So I've got, right now I've got seven consultants I work with.
And some of them are speaking coaches.
I got the trainer.
You know, I just say, like I was on this podcast
about two weeks ago in Vegas and the guy says,
I feel like you're in a time machine.
And I said, the time machine is going to find people
that are better at one thing. Like the best of the best. They're known for this one thing.
And I literally reflect and say, I'm not very good at this. And I don't want to be well
rounded, but I want to be the best in marketing, culture, sales, and very like leadership.
And I want to hire everything else. But I hire people smarter than me.
Absolutely. That's the fear is like, what if, what if
I hire this guy
and he takes my whole team and he starts to, I don't have that gene in me. Like, I'm not
worried if I train them. What if they leave? What if they stay? So I think the number one
thing that's changed dramatically is I started becoming an avid reader. I started a podcast
seven years ago. I started asking for help, success leads clues. I asked service site,
who has the best conversion rate in HVAC? I fly my ass out there and visit them. I said, who
has the best booking rate? Flew out to Memphis, Tennessee two months ago, visited them.
Who are you asking these questions to?
I'll go to Service Titan because they're my CRM and they've got the data. They'll make
an introduction if the person allows us, like they got to say, sure, you can share my data
and tell them I'm the best. And then, you know, they take my phone calls usually. If I want to find out who's the best at SEO,
I'll search Roofing Repair Phoenix or HVAC Repair Phoenix. And then I'll see who's ranking
organically. Number one, I'll do a couple of things, AH refs. I'll say, how the hell did they
do this? I'll knock on their door. I'll buy them all lunch. I'll say, can I talk to your VP of marketing? And they'll say, yes, because I
say, I'm not going to compete with you. I want to help you guys. We could be referral
partners. And I come from a place of what's in it for them. That's my superpower is like,
I have I'm relentless. I don't care if you say no to me. I think that's a yes, eventually.
I think that's such a key to anybody that's listening
to this show right now, like the relentless pursuit
of education improvement, right?
Like not settling with where you're at
and just always looking for that next edge,
that next ability to level up.
Who knows more than me, right?
Like I think the thing that I suffered from most
in my first business that failed
was thinking I knew everything and not going
to other people for help.
That's where I struggled in my 20s.
I just thought I knew everything.
I was pretty intelligent, high IQ, successful in everything
that I had done up until that point.
And it was like, because of it, when things were hard,
I didn't go to anybody else.
I just tried dealing with it, right?
Instead of like going to a Tommy or a Darrell and being like,
dude, help me.
Like, I don't know what to do in this type of situation,
or how do I get through this?
How do I improve?
Whatever it may be.
I think that's probably one of the most key things to anybody
that's been successful.
So was your transition into like finding coaches,
was there an experience or was there like a?
2017 second podcast I've done, the Home Service Expert,
I meet this guy named Al Levy.
He's like, hey, I live in Scottsdale, you're in Tempe.
He goes, would you want to meet for lunch?
I said, absolutely.
I sit down with him, he had to be 65 at the time.
And he just comedier the whole conversation,
but luckily I brought a notebook
and I'm writing everything down he's saying.
And he goes, hey, young buck.
He's like, you're the first guy I've ever met with
to actually take notes.
He's like, would you mind if I came and looked at your shop?
And I said, I'd love for you to.
And dude, he tore me a new asshole.
He goes, let me see your manuals. He goes, I could have stole your whole warehouse with
your own forklift and there was no cameras, nobody in there. The garage was wide open.
He goes, there's calendars on every wall. There's Google calendar.
And at this point, you guys are doing how much?
17 million.
17 million, which is a respectable business, but ain't anything.
I wasn't keeping much of it. That was revenues for vanity, profits for sanity. And he says, I'll work for you.
I'll work with you, but it's not gonna be cheap.
I'll consult you.
He goes, but when I get done with you,
this business is gonna be very vanilla.
There's gonna be systems processes.
There's gonna be manuals.
There's gonna be an org chart and a depth chart.
I'm gonna teach you the eight steps of delegation.
And he goes, you're the best firefighter I've ever met.
He goes, the fires are going to be out,
and you're going to have a process.
He went out with five of my technicians.
He said, every one of your technicians,
different sales process, different way of doing springs,
different ways of doing rollers.
They drove differently.
There was everything's different.
He goes, one guy's got a long ass beard.
One guy's got tattoos on his face.
Is there policies?
And I'm like, well, not really. And just get get it done and he's like, what's the dress code?
What happens if your truck breaks down? What happens if a CSR doesn't show up?
Do you have a depth chart that the that the dispatcher could step in and so we worked for years together and
That's his book the seven power contractor
He's he's 71 now and he's the best if I didn't meet Al Levy and respect him,
he walks in one day and I said,
hey, have you read this book?
And he goes, Tommy, just stop right now.
He goes, I'm not gonna tell you to stop learning.
But until you implement my practices,
he goes, I will fire you as a client.
He goes, you turn your cell phone off
when we're in the room together.
You focus on what I'm telling you
and you implement these things or we're in the room together. You focus on what I'm telling you and you implement these things
or we're not gonna work together.
Love it.
And I said, you know, all right, Al,
I used to start talking to him, he'd be like,
stop, let me finish.
And I'm like, and we said it,
we built manual after manual.
And when things went wrong, he said,
it's not in the manual, put it in the manual.
And he goes, you're not reading the manual every week, go back to that. Two years into it, he showed me a picture of my truck.
He took a picture, he put it in black and white. He goes, what pops out to you that you're a
garage door company? You got Angie's List, Yelp, the BBB. He goes, you got eight things you do,
rollers, cables, bearings, crash doors, bottom rubber. He goes, this is really bad. He goes, your brand sucks.
He goes, your stickers don't look like your billboards. Literally, your signatures are
all different when anybody emails me. He goes, every single thing, your Val Pak looks nothing
like your Clipper. There's no coordination at all. I said, so what do you want me to
do? We're $40 million. He goes, I want you to rebrand.
He goes, you called Dan Antonelli with Kick Charge.
And I called Dan Antonelli.
He's like, it's going to be 40 grand.
And I'm like, 40?
I'm like, I'm already successful.
And Dan goes, I'm telling you right now, let me just build you a brand.
I said, can my face be on the side of the truck?
Because it already was.
And there's a whole reason, a story behind that.
And he's like, these colors suck.
The whole schematic sucks.
And Dan built a new brand.
We jumped.
We became the most.
We attracted affluent clients.
My guys still tell me the stories when they showed up
in that van with the right.
Oh, by the way, all my shirts were different colors.
They were just golf shirts with a logo. Al Levy said it's gonna be all black from now on. These don't fade.
Al Levy did this. And I owe him a lot, man. I owe him a lot. And dude, everything changed. The
conversion rate went up. We started becoming a brand. People started higher average tickets.
They knew we were the best. They said, I know you guys aren't the cheapest, but you'll be here the same day and you'll cover your warranty. Everything changed. And Al did not know the financial world. So he called Alan Rohr. And they taught us a lot about finance, but I didn't have the right CFO. That was the other game changer. Getting the right CFO. Boom, bottom line, bottom line, bottom line, bottom line. Now we're at 25% of the bottom line because of that side. And by the way, I'm not the best
at balance sheets. I got a master's degree in business.
What were you before? Like how much of a change was there?
What? Like margins.
Like margins.
Oh, we lived a long time because I always blamed that we're growing, we're growing,
we're growing. I'm reinvesting in the company. I literally told everybody, yeah, who cares about the bottom line? We're growing, we're putting it back in. That's
what I hear a lot of people say. Like a software company. Yeah, we're putting it back in. We're
putting it back in. And Al goes, one day I called Al and I said, I got a home equity line to make
payroll. And he saw me writing checks from my home equity line back to make payroll.
writing it and he saw me writing checks from my home equity line back to make payroll.
What year is this? This is you know this is 2018-2019. Crazy. And I would never trim the fat. I'd say we're gonna need these guys and he says Tommy
he goes I'm pretty worried and Adam comes to me he goes I'm pretty worried and
comes to me he goes, I'm pretty worried. And it was, I didn't realize people were stealing a lot of the parts. I didn't realize that we were totaling trucks left and right. I
didn't realize any of these things. There was no, my insurance, I was double paying
on leases. Nobody, nobody told me. And they were keeping the money. I mean, literally,
I had guys stealing, doing side jobs left and right. The business was not, it was just, there was a shadow that
I couldn't see.
You had a great revenue driving engine and the backside was just dirty.
Just a mess. A mess. Dirty.
And we fixed it. We started printing money. Keegan actually came into town and he looks,
and I got all my financials at every market. And he starts highlighting stuff. And he looks and I got all my financials of every market and he starts highlighting stuff and he looks at me and he goes, Tommy, you need to close four markets today.
And I go, dude, this is just bad management.
Like I could turn it around and he goes, Tommy, look at me.
You need to close these markets, do a relocation package.
I'm going to show you how to do it.
They need to close today.
You are bleeding so bad. All your profits are you would be at 19.8% if you close these four markets.
I closed them that day. I mean, you talk about what could go wrong Murphy's law. Like I've had
it hit me on the face a thousand times. But you know, here's the deal. I'm glad it all happened
because I'll never make those mistakes again ever. Like the lessons were not only hard,
they were almost impossible. Right. But I never wanted to quit. I never said, dude,
I don't want to go to work today. Like I'm done. I was a fighter. And I mean, a lot of
people, you guys know this story. You're three feet from gold. You're one step away, one
decision away, one higher away from just making it through. But some people give up.
Yeah.
Dude, I think you're a great example of, so I think in business, and a lot of guys are
refused to do this, you either got to, one, have incredible partners, or two, you got
to hire incredible consultants, right? Like that is the only way to break through and
get to the next level because everybody that's just trying to do it on their own, right? Like that is the only way to break through and get to the next level,
because everybody that's just trying to do it on their own, right, based on their own IQ and
everything else, right, they're going to make a lot of mistakes. They're going to have a-
It's going to take decades.
Yeah, it's going to take decades.
And you'll get there, but you're going to be like in a nursing home.
Yeah.
If you get there, right? Like if you're able to survive that long and continue to, you know-
So let me ask you, Chris, obviously I know your story,
but what was that paradigm shift?
What was the transition or how did you level up?
Yeah, I mean, for us, for me, it was hiring the right people
and partnering with the right people.
Having Darrell at my side was huge because he helped keep my ideas sane, right?
Like in, and I was able to bring all the good stuff,
but at the same time spending a million bucks
on my personal education, getting the right coaches
and the consultants, going and spending four and a half years
working for other people, right?
You're gonna be talking with Todd later today.
Todd is one of my, the greatest mentors.
The funny thing is, is I didn't, I didn't even
spend a ton of one-on-one time with Todd, like
hardly any, but most of it was being in the room,
seeing his strategy, seeing how he interacted
with his leadership.
Right.
And, and there's a few different ways that you
can invest in these types of mentors.
One, you can go and work for them.
That's what I did with Todd.
And I also watched from afar, kind of
seeing what he was doing when I wasn't working for him.
So that was a huge turning point in my career
was studying Todd Peterson and the way
that this guy does business.
I loved everything about it.
I think what you saw in Todd is, dude, this guy's a visionary,
and this is how visionaries operate.
And so you started to realize I needed to operate.
Exactly.
And it aligned with my personality.
Me and Todd have very similar type personalities.
We both big dreamers and everything else.
And I saw how he was utilizing his team to be able to go and execute.
An orchestrator.
Or a orchestrator.
He didn't jump in and do the work, which is so easy to do.
High leverage of management team and everything else.
Right.
All of us that are super successful, at one point,
we have to give up control.
Because we love the micromanagement
at some point in our career.
Because we're like, I can do this,
and I can do everything.
And so that was probably one
of the biggest turning points in building SolGen
was when I finally decided, you know,
I'm gonna surround myself with incredible people,
give up control.
And then I find myself saying,
I want you guys to go build me a plan,
give me three options.
I want you to give me the SWOT analysis on each of them.
And maybe I'll put a little curve ball in there.
And I'd like to see this and this.
I like plan two, but let's bring plan three,
this piece to plan two.
Absolutely.
You do the work.
You guys make plenty of money.
You got an equity incentive program, which is profit units.
It doesn't need to be me anymore.
I want to walk in a room and be like,
there's no fricking way I can keep up with Chris and Darrell.
These guys are just so much better at this one thing that there are people in this company that
I'm like, I don't stand a chance. So why even like, but I got to tell them and I got to,
you know what prompting is when you like go to chat GBT? You got to ask the right questions.
You got to make sure you're doing the right things. You got, and they'll help us find
the answers. And I don't think there's I just think
a lot of people are like you hire people that just aren't at your level because you're afraid
or maybe you can't afford them. When I learned about an equity incentive program.
Oh, game changer.
Dude, I could attract anybody for the roles I want.
I mean, that's exactly how we built Solgen, right? Like we had guys that had sold businesses
for millions of dollars come and work for us for like a minimum salary
to have some equity upside.
Right?
Dude, you said prompting.
I've actually never thought of that as a concept before.
But like, if you think of all relationships,
like the quality of your relationship with people
is based off your prompting.
The questions you ask.
Yeah.
And it's just like Chad GBT, if you ask a bad question,
you get a bad answer.
Yeah, it's true.
It's a skill.
I mean, people are going to school right now, kids.
The whole classes, the whole education is called prompting.
That's the newest thing in education.
There's a guy, Send Out Cards, he's out of Utah.
He was the first big speaking I did.
He wrote a book called
Prompting. And it's so true. I got a question for both of you guys, and I want you guys
to go back and forth. Yeah, yeah. Because you guys might take each other's answers,
so I'm going to do it this way. So you look at SolGen. Yep. And I want you each to go
back and forth, three each, of the biggest pieces, and a lot of it's hiring and, you know, the marketing
strategy. But what was, let's start with the successes, and it could be you learn from a
mistake, but what were the things that really drove growth, culture, revenue, and if you had
to do three each and go back and forth? Well, you know, it's, I mean, there's a lot of things,
but one was the strategy of generating leads online, right?
Like that was something that prior to us doing it,
there really wasn't any,
there was people only in the SEO game, right?
Google, pay per click type stuff,
but nobody was doing the education side of the marketing,
which was Facebook, Instagram, YouTube, that type of lead.
That's where you guys figured it out on the social side of the education.
Yes, exactly.
And what would you say was your biggest channel on a YouTube, Facebook or Insta?
Facebook was always about 40 to 50% of our business.
Like when we were running a $2.2 million budget a month, right?
Like half of that was going to matter Facebook. Yeah. Yeah. Just, just Facebook, not including
Instagram. And so, you know, like that, that was our really cutting edge because we initially
we did what we called web to home, where we generate the lead online, go and sell it in
the home. And then eventually we scaled it out through a virtual sales floor.
And we did that pre-COVID, right?
And so like the fact, like we had a lot of lucky moments
in building SolGen, which, you know,
it was just us taking enough risk and different things.
And one of those was we launched our sales floor,
our virtual sales floor, November 2019.
And so by the time, five months later, when COVID hit,
we had a 25-man sales floor.
And we were prepped and ready to be able to just go and scale
through where everybody else was panicking.
Anybody that was in the door-to-door world
or the count over the table type sale, they're like,
what do we do?
People won't let us in their homes, right?
Like especially in some of the more liberal states.
Oh, really?
Really tough.
Washington, Oregon, like these are places.
That's where you live.
Oh yeah.
These are places that literally people are quadruple masking, right?
Like they want 10 foot social distancing.
Like it was just crazy.
You can't even go into a coffee shop.
Right, right.
foot social distancing. It was just crazy. You can't even go into a coffee shop. Right. Right. And so having that set up was one of the biggest things. And then from day one,
You can't give Darrell everything. You guys got to alternate.
Go ahead. I would say I think a big piece too is we always were thinking ahead. We always had a
vision. We're always sharing the vision. So anybody who came into our business wasn't there for that opportunity. They're always there for
what was coming.
Something greater. Yeah.
And I think that was what built our culture. I think that's what brought in the right partners.
I think that's what also gave us buy-in from employees because there was so much craziness.
I mean, when we were in the garage and we had what, 50? 53 employees. 53 employees. Operating out of my garage.
You had to buy in to what we were doing because it was just smashed in there.
And obviously we were building a building at the time. And so people understood what was going on,
but chasing that dream was always, everyone was bought into that. And if they weren't, they didn't last long.
Yeah, so I mean, culture was extremely on purpose
by design up front from day one, right?
The way that we were creating trust,
the way we were creating transparency, the vision,
the core values, all the things, right, from day one.
And many of the things that I learned from Todd Peterson,
right, and being a part of like everybody in the Vivint industry this home
security automation that everyone always called it the orange Kool-Aid right if
you're drinking the orange Kool-Aid it's because Todd was the master orchestrator
of culture and so we went and took his blueprint and just we applied it and
just thought big and crazy and you know cool thing was the first couple of years
when we were operating out of my garage,
like the vision was so crazy
and people walk into a garage,
people think, people are just like, dude, this is nuts.
Like, why would I believe you?
Like we're sitting in a garage.
It's a hard sell. That's a hard sell. But that,
that actually made it even better, right? Because it was so extreme, right?
People either had to like jump on board completely with the vision or be like,
there was no in between. It wasn't like, Oh,
I've got a comfy office space to be able to operate.
And if I'm committing to coming and sweating in 85 degrees in a garage,
the only reason is because I believe in what this idiot keeps preaching every single day.
You're like, you've heard of Steve Jobs, right? Heard of Steve Jobs' solar. He started in
a garage.
Well, it's funny. I had this picture. It was like four different garages. It showed the
Google garage, the Facebook garage. And we had the Solgen garage, and we would always
be like, look, this is us. This is what we're building. And so like people would buy into it and just get excited
about it, even though like from all outside perspective, there's no reason they should
have bought it.
Yeah. Well, that's the ability. Listen, that's sales 101 is how to win friends and influence
people. Get people to buy into your
dream. We're us entrepreneurs. We really are good at that. We're really good. Like I'm
an optimist. I don't care if the cup is empty. I make it half full. And like, but people
are like, dude, that's not even real. Like there's no way that's possible.
You're not going to another galaxy.
So here's something interesting though. When I, when I grew up, it was common to say,
you know, be a man of your word. Yeah. But I realized like as a visionary, you can't be a man
of your word. You got to be a man of your vision, right? Because if you're a man of your word, like,
you've got to know how to fulfill on what you're saying. And as a visionary, you don't. You're just
like, we're going into this darkness. And at the end of it, I'll tell you what's there. You do have
to have an idea, right? You have to have a roadmap of like, this darkness. And at the end of it, I'll tell you what's there. You do have to have an idea, right?
You have to have a roadmap of like,
this is how it's going to be possible,
but you don't have every single detail.
Correct.
Well, you know, I work with Dan Martell,
buy back your time.
And he goes, one thing I've realized about you
is your word is your bond.
You shake somebody's hand.
But what if I told you what I want you to practice?
It's not breaking your word, but undoing your word. If you told the neighbors five years ago you were going to mow their lawn
every week, he goes, find him a replacement, pay them some of the money back and get out of that.
Yeah. He goes, sometimes what I feel like, Tommy, is that your idea of yourself is like,
my word is my bond. If I shake your hand, it's paved in gold.
What made sense for Tommy two years ago, you need to renegotiate these things and do it
fast and not feel like you're letting people down. He goes, I just did it last week. He
goes, I promised this guy I would speak at his event. He goes, dude, the event's 300
people. I got to travel. He's like, I had to renegotiate it. I got a great sub. He's
like, I told him straight up, then guys, if you ever
want to come visit, I'll make it up to you. You come out to Kelowna, you say, charge a lot for this.
But he goes, practice that become good at that, because that's going to be your biggest weakness.
It's not that you're a liar. It's not that you're not morally correct, but you need to work on that
because that's a great statement that you said is like, you're right. Sometimes we need to pivot and I'm not trying to let people down. That's the worst feeling in the
world. But at the end of the day, like, L always told me, I'll leave it. He's like,
you just got to be able to still have, especially with family, like you still got to be able
to have Thanksgiving together. And like, people are not like, if you've got a good reasoning
behind it, they're not like in tears. You say,
listen, this is why. And there are hard conversations, there's a great book called
Fierce Conversations, and it's hard to have these conversations. And I don't like to have them with
everybody. The close five is people, I feel bad for my mom, my sister, my dad, because they've had
the fierce, I've been fierce with them. So what is another reason that you think- So let me actually jump in and add to this.
Giuseppe.
Giuseppe, we need a little water.
Water service, yes. And me.
So, no, you're good. So I think one of the big turning points is when we got really clear on
KPIs and the reporting, right? Like that is one, I think, fundamental to any business.
But two, it was so like so we went in, in 20, in 2020 or 2019, we did 32 million. 2020,
we did 34 million. It wasn't great growth. But what during that year, we set foundation
from a management perspective, like the management
team that we put in place, the reporting, the KPIs, right?
Like we set this foundation in 2020 that was absolutely phenomenal.
And in between 2020 and 2021, we went from 34 to 89 million, right?
We tripled our revenue and much of that and then the next year
from 89 to 233 million and much of that is because we were reporting real-time
at like to this day like I still have some equity in that business. I get a
text message every time a deal is generated on there and it's like this
full report like this is how is the lead was generated. This is, this is where we're pacing. And so we created this way of competition
and recognition and accountability, right? That just drove the business to go and
level up continuously. And so then we would, we would set these goals or these
projections and every single hour we'd be able to measure,
are we on pace, off pace?
And that's where I think things really became crazy.
It was just with this level of accountability.
And I think part of that foundation was we always
protected the margin.
Because I don't know how many businesses they are, they start growing and they realize
they have no money. So they're not scalable.
Well, especially in solar, I see that all the time.
Their model isn't scalable, right? They build it for today, not for tomorrow.
Right. And so I think being able to scale with margin
allowed us to continue to grow. We had 300% growth year over year, two years in a row.
If we didn't have the margins we had, there'd be no way.
And you know, solar is a tough business, man, to keep going.
Yeah, well, I was just going to say, and it was really important for us to make sure our
employees understood that because they'd be up competing with people that were charging
a lot less.
Giving it away.
Half the price, right? We would be priced at 60 grand and the competitor would be at 30 for the same system.
Right. And to be able to help these guys see why that was that was necessary.
Right. Like why allowing us to be able to not cut corners, focus on the customer
experience, be in business long term, have a healthy profit margin that's going to be
able to go and scale growth. Right.
And so those are levels of like our culture and transparency where just people knew what our margins were and everything else. And they were fine because they were bought into the long term in the vision.
I've got this open book policy. Everybody knows exactly what to do. Day week month down to the lowest level. I mean low level, but just I'd say
lowest level, I don't mean low level, but just I'd say, you know, the front line. And people are like, why would you share that? People are going to know how much money you
make. I'm like, yeah, we make great money. I'm like, this is a business. My clients want
us to make great money. They want us to be around in 10 years. My vendors want us to
make great money. And we take care of our clients. We take care of our vendors and we
take care of our people. You know, there's, we give equity down to
the installer technician level. Love.
And I said this, I'm like, guys, I want you to be millionaires. I want you to be bought
in. But what's in it for me? I want you to think what's in it for when you're a leader,
you should say what's in it for me from the co-worker standpoint, the people that work
for you. Yep.
And this this idea is if they're winning. So when we sit down, I want to know, Chris,
what are your goals? What are your dreams? What do you want out of life? Like you want
to buy a house, you want to take your kids on this big trip each year. You reverse engineer
those goals. And I'll say, Chris, if we just increase your conversion rate and you worked
with this guy for one week, sounds like a step back. You would hit your goal. You buy
your house in 2025 instead of 2027. Like, doesn't that, don't you want
that? And sometimes you look at their face and they're like, that's not really my dream.
Like, literally, that's what my wife wants to do. And you say, you really got to peel
the onion back and figure out what their dreams are. Instead of a performance improvement
plan, how can you get them to buy in? If they don't buy in, you know, I always say, listen,
I'm going to give you the opportunity to go work for my competitor.
Yeah, I love it. I love it.
I love it.
So what you're, you're bringing up like some solid points that we definitely implement
in our culture.
Like one, there is no loyalty in business, only trust, right?
Like a lot of business owners fail on the side of they try building this loyalty and
what is loyalty?
It's like, you just work hard for me
because you're part of the family.
It's not, where trust is like, you're going to bring value
and I'm going to make sure that you receive value, right?
Like I'm going to provide opportunity, a roadmap.
You're going to have long-term buy-in, right?
And the second that that's violated,
I expect you to go work for the competitor
versus a loyalty type of relationship.
It's more of like a slave and a master, right?
And it's like, you just do this because I said so, not because there's benefit, not
because there's anything else, right?
Just do it because I cut your paycheck, right?
And that is the worst management ever.
And the thing I always tell people, I said, look, if you're building this loyalty type of relationship,
you have a slave and a master,
and what happens when a slave wants to leave?
They leave in the middle of the night.
You're not gonna get the opportunity
to retain these type of people
because they're just gonna leave your culture
versus a trust culture.
Trust culture, the guy's gonna come and say,
hey, look, I got this opportunity,
it's being presented to me down the street,
but I know you've always had my best interest.
What do you think? Should I should I take it?
Should I like and that's the the type of culture we always tried to foster where any because we never lost our top players
because they knew that if there was a better opportunity for someone else, we expected them to go and take it.
Right. And we encourage them to go and take it.
we expected them to go and take it, right? And we encouraged them to go and take it.
And so our job as business owners was always leveling up
and making sure that we can provide enough opportunity
that is going to give these guys roadmaps
to be with us long-term.
So I appreciate your view on your employees,
but I guarantee it didn't start that way.
Yeah.
So like, how did that transition happen?
Or how did you?
COVID.
COVID was a big one.
When, I didn't know that, we heard about this coronavirus
and everybody's like, corona.
We didn't know.
And then people started dying.
It's all over the news.
And it was a really hard day because we
started having clients in.
I didn't know if it was going to kill off half the population.
I just knew no matter what, this company was gonna survive.
This guy Tyler walks into my office and he goes,
hey man, you don't look so good.
He's like, everything's gonna be okay.
He's like, you know my wife makes really good money,
she makes more than I do.
He goes, I don't expect anything in return,
you don't have to pay me back.
But why don't you cut my pay in half?
Wow. This is a technician. And I just kinda looked looked down. I said we don't need to do that
I said we're still fine and
the next
There was a line and one of the gals walks in in the call center and says hey, why don't you take all my PTO?
I don't need it. Just if anybody's sick and
People just started coming into my office and just not complaining, just offering me this.
And I really reflected and I said,
I love these people, but I gotta become a better leader.
I need to work on me.
Because if they're willing to do that for us,
I need to do way more.
I need to have a dream so big
that everybody else's dream could fit inside
and we could accomplish that.
And there's this book called The Compound Effect
by Darren Hardy.
And he wrote down 100 things he wanted in The Perfect Wife.
He literally wrote down the greatest mother
and every single feature.
And he reads this list, and he's going through it,
and he goes,
I could never pull a chick like this.
So he wrote down 100 things he would need to become to be worthy of such a great partner.
And so I needed to write down 30 things that I would need.
I didn't do 100, but I wrote down a great communicator, like, very, like I wrote down
all these things that I needed to become to be worthy of such great people on my team.
And you know, I always thought I tried.
But that was a rude awakening of like,
whoa, dude, like these people are actually not only bought in,
but they got your back no matter what.
Like, they're going to go to war with you.
And it's a great feeling, man.
And I'll tell you, like, we made it through that.
We got the PPP money, went straight into marketing,
and that just exploded us.
And, you know, we've all got these stories of like the business was doing good,
but it went to like excellent.
And now I feel like we're making history.
And I'm just not done yet. I'm like.
Well, and the crazy thing is the amount of time that that happened.
We're only talking three, four years. Yeah. Right.
Like, and I think that's important for any listener
that's trying to build their business or whatnot, scale it up.
It's like if you just apply these correct principles and do it repeatedly, it doesn't take
long, right? And there's a lot of us, Tommy included, that have struggled for years to get
to that point. But once it clicked, once it worked, you know, I mean, the level of scale,
the compound effect becomes real. It's true. And I'll tell you guys, this is a little hint for the listeners,
is then I'll go back to Al Levy.
And I've had a lot of consultants.
There's a lot of great people I've had in my life.
Al said, what I'm going to show you how to do
is no longer be a slave to your workers.
He goes, I don't want you to recruit anybody
because you pay more anymore.
You don't need to find people with bad habits. He goes, we're going to show you how to make
homegrown badasses. And he goes, you're going to find great personalities and you're going
to teach them the skills. Before, I would just say, I'm just going to pay you more.
I'll pay you a higher percentage, higher hourly, whatever it was. Those people are willing
to go for the next $10 more. And so we built homegrown, loyal, bad asses that make a lot of money.
And all I did was listen, and I said, you, I said, Chris, you don't believe in these rollers,
do you? You think there's some better out there? And he goes, yeah, the double Z bearing,
lifetime self-lubricating. I go, where do we buy them from? Let's bring them in.
This guy started selling rollers on every single job
because he believed.
So then I created this policy.
If you find a better product that I can get at mass scale,
we'll bring that product in.
And we have options.
We don't give ultimatums.
We give choices.
And when they actually had a say,
when you listen to,
I'm sure Henry Ford listened to the assembly line
to make it way better.
When you start listening and saying, instead of saying, no, no, no, we're working
on it. We're behind a desk. You guys are in the field. We know better. No, we don't. No,
we don't. Listen to the people fighting the boots on the ground. They're the guys sweating
in 140 degrees. They're the guys going out zero degrees in Minnesota. So sometimes my
management hates it. Yeah. And I don't like to call management
my coaches. My coaches hate it because they're like, why do you always listen to them? And
I'm like, they're not complaining. They're coming up with solutions if we just listen.
You know, you brought up an incredible principle that we talk about. Don't price yourself to
impress others, right? And that goes for what you pay and what you charge, right?
Because it's the exact equivalent.
What you charge, if you're trying to be the cheapest,
all you're doing is trying to buy them by discounting, right,
to get the next customer,
and they will go for the next person
that's that much cheaper.
You made it about price.
You made it about price. And the same thing goes for employees, right?
Like as you said, like when you make it all about compensation from a financial,
they'll go for the next 10 bucks or whatever else.
And it's like that is one thing that so many people get wrong,
pricing their product correctly and paying their people correctly and realizing
that you compensate
way more than just in a monetary way. You can compensate them in culture and opportunity.
So much.
Like so much value.
Money is irrelevant. There's been study after study after about $74,000. It's not irrelevant,
but it's not as big. If you could meet your financial needs, a basic car, put clothes on your kid's backs, eat good.
There's so many more important things, especially in this new generation, is they want to be part of something.
They want to be involved. They want to get trained. They want to know what's going on.
It's not like the baby boomers that were just like, I'll go to work.
One of the things you brought up, and I think this was also contributed to our success, was the homegrown sales people.
And technicians.
And technicians.
And I think, Chris, you should talk about this,
because we decided we didn't want industry
people in our business.
We wanted to create them.
Yeah, I mean, that was probably one of the biggest moves
from a strategic standpoint that we did.
Well, one, that we owned our own business,
we were never going to fulfill for anybody else.
If you wanted to come, there were sales organizations
all the time come in and say, hey,
will you just do our installs?
And that was a big like.
All the time.
And we got approached six, seven times a week
by sales organizations.
That was a big no.
The other one, as Darrell's talking about,
is we do not hire industry people.
We don't.
Because industry people are trained up incorrectly, right?
There's a lot of terrible business owners,
a lot of bad cultures, like everything else.
And these people become entitled.
100%.
They're coming in and saying, well, I did this, this,
and this at this organization, so you owe me
this based on my resume.
Like, screw you.
I don't owe you jack. and so fair autocracy versus tenure
Yeah, what you've done in the past you need to prove yourself every day just like I do just like every person here
And so the the cool thing is we never not one of our salespeople had any experience selling solar
Zero right and so we train them like some of them had other experience right they sold cars
They sold this or that or the other.
But it was like, man, if you were trained up in the door to door entitled
industry, you know, Utah based group, like we didn't want any any part of you.
And so then we were taking these just raw, hungry kids that had great
personalities that were making 14 bucks an hour doing something.
How are they? I mean, most of them in their low 20s.
Yeah.
But you've got to understand, though, Tri-Cities is a small town.
Right.
So it's like there's no sales force.
There's not a big sales force out there to pull from.
We had to create.
Yeah, we created these people.
Like literally, we're taking people from the local coffee shop
that are playing barista while they're going to college.
Did you find a honey hole?
I know some people say enterprise discount tier.
Was there like this,
man, if we get, it could have been a server from a certain type of restaurant.
It could have been a,
you know, for us, it was all about like personality assessment, disk assessment, right?
Like, we could go find high D, high I's, right?
Like, the dominant personality,
as Tony Robbins says,
he doesn't hire any salespeople without a D type
of personality.
That dominant personality was always a winner for us.
And so we'd bring these guys in.
And regardless of what their background is,
it didn't matter if they had a D personality,
we could shape them into a salesperson.
And we would put them through incredible boot camps, right? Like there's
guys that, so to this day that now work for other organizations because we're no longer part of things
that are like, man, that boot camp was the foundation to all of my success, right? Like we
put them through a two-week just rigorous training stuff that we had learned knocking door to door
for many years, become masters
of the sale.
They influence Robert Cianini.
Yeah.
I got a question.
Yeah.
I had a guy call me yesterday when he was asking me about Service Titan, very, very
successful roofer.
And he said, he said, I think Tommy, next year, I think by the end of the year, I'm going to do a
deal.
And he said, I'm not going to do PE because I've heard the horror stories.
I think I'm going to do strategic.
And I go, you only hear horror stories, but you don't hear all the great stories.
There's a partnership fit.
I got lucky.
And by the way, my PE company, not everything they've done work perfectly, you know, but as the
founder, you got to take some of the heat, you got to buy it, you got to realize these
are financial engineers, if they could do what you could do, they go do it.
They don't make as much money as we make as founders or in the business.
So I take a lot of heat for myself to say, I'm going to listen to them.
They make a lot of valid points.
But what is your take?
I know there's some things you wish worked out differently,
probably both of you.
And I know I don't know how much you're at liberty
to talk about this.
Oh, we can talk.
But what is your take on just selling your business,
rolling equity, and what would you have done differently,
and how would you have acted different?
What are some of the things you would have changed?
Absolutely. So I think every entrepreneur
should go into experience at least once, right?
Like going through the experience is a fantastic thing,
right, going-
I lost a little bit of hair.
Yeah, yeah, yeah, yeah.
I mean, fantastic is a interesting way to term it.
It's tough, right?
It's grueling, very long, intensive.
It's worse than a prostate exam. Yes, yes. I mean, rubber glove to the extreme.
And but to have gone through it, you learn so much and you can bring so much to any other
entrepreneur like this is how what you could do, what you expect. This is how I would have
done it differently. Right.
Right. Like we would have got the way we expect. This is how I would have done it differently. Right.
Right, like we would have got,
the way we would have pegged our deal
would have been at like the trailing 12
at the time of close.
You know, we would have.
We'd have got a lot more money.
We would have got a lot more money out of the deal.
You know, but if I were to do it again,
I'm not sure I would go the PE route
just because I've already checked that box.
I think I've shifted checked that box. I think
I've shifted into the more of like hold phase, right? Just long-term, nice size chunk of equity
in different businesses that I'm a board member of and can influence but don't have these,
you know, PE, you know, you've been very lucky. Like, and we thought we were lucky, you know, you've been very lucky. And we thought we were lucky at first,
but it became increasingly difficult to work with
and everything else.
But yeah, if I had to do it over again,
we would have negotiated a little bit better of a deal.
I think we could have gotten more money.
But at the same time, looking back,
Like you have rolled more or less.
And did you go through a formal process where
you sat down with a bunch of different-
Yeah, yeah. We went through a formal process. I would have probably rolled a little bit
less knowing what I know about the private equity group.
Yeah.
And so that's interesting.
I think to echo some of the sentiment, one of the things you've got to realize is
like you do lose control when you have a partner like a PE. I mean, they come in with a completely
different set of motives. And so like the idea that things are going to operate, continue
how they are, I mean, they will until they need to change things.
They will. I'll tell you guys a little, the hard truth is until the performance goes down.
Like, I think most PE groups are like,
they got a five to seven year stint.
And they're like, if it's not broken, don't fix it.
But I'll tell you this, I know a lot of guys,
you get 10 million, 20 million, $15 million.
The guys that get those checks, they're not,
they're building a house, they're driving a Lambo, they're million. The guys that get those checks, they're not, they're
building a house, they're driving a Lambo, they're taking their, they've done the work,
they need to, their families need to enjoy it. So they're not all there. And so I think
that if you go to a meeting, especially in the first year, and you're not prepared, and
you don't have the answers, and you're late, and you're not, and there's like, you see
some performance gaps, they're like, that's a double as short for PE is like
We're gonna give this person all this money. Are they as motivated still?
So I think there's their side too for sure and I'm not saying like look
I've realized I just flipped the page and I said go back to work and people are like you're the same, dude
I'm like I know because quite frankly, I don. I won't say I'm an imposter, but
it's not that I'm not worth the money,
but it's like I never wanted it to change me.
I know people that have changed.
I like, oh, the filet mignon.
And I'm like, and I order filet mignon.
But the point is, and I always ordered it.
But the point is, like, I'll never let money change me.
And I've seen money change people and I've seen it. But the point is, like, I'll never let money change me. And
I've seen money change people, and I've seen it destroy people. I've seen people afraid
to hang out with certain people because now they, these friends come back into your life,
this family comes back into your life because they know you hit it. And it literally ruins
people. They don't know how to deal with it. And I'm like, you know, I like Mr. Wonderful
says if you come to me about an investment or any money, I give you
a one-time gift. It's not a lot of money. And I make you sign paperwork saying you're
never allowed to come to me again.
Yes.
Ever.
I love his tape.
And the deal is, is like, dude, I don't feel any anxiety or stress from family. They're
welcome to come to my house. They see it's a marvelous house. It's a beautiful house.
I bought my house. I lived in a small apartment.
Actually, the technicians stay there.
Mine's 1,000 square feet, three bedroom, tiny kitchen.
Every one of my buddies, very, very successful,
they came and stayed there.
They're like, what the hell?
I'm like, dude, it's close to work.
I own houses.
And the thing was I bought a big house
because there's one thing you can't buy
and that's experiences.
This allowed me to have my dad's 70th birthday, you know, Bree's niece's third birthday, my
mom's 70th birthday. This allowed me to be around my closest people, play big Buckhunter
and Golden Tee when I want, do fun stuff and have pool parties. So I looked at it as I'm
buying a way to spend time. And you can't buy time, but you can make the most out of it.
Absolutely.
You can leverage time, though.
Buy people's time.
You can buy a lot of time.
You know, I realized from Buy Back Your Time with Dan Martell, he goes, he goes, Tommy,
let's just go over what you got in Goldman Sachs.
And I told him, and he goes, what do you think your worth is right now with the 50% you rolled? And we just we kind of analyze what I make
per hour and he goes how much time do you spend driving? And we went through did this
kind of a map of the time and he goes do you do your landscaping? I'm like no, I don't
I did that for too long and I'm allergic to grass. And we go through everything I do
and he goes how much you like cooking? Doesie love to cook? Is that like her thing? And I'm like, not really. So he's like, it's
not that you deserve it or not. It's not that you're not humble. But he's like, I just you
bought back 15 hours. And you're thinking in dollars instead of percentages. He's like,
I've done the math on your interest. He's like, you don't touch anything. He's like,
you're buying time. And he's like, tell me about your EA. And he's like, you don't touch anything. He's like, you're buying time. And he's like, tell me about your EA.
And he's like, is she capable of sitting in on meetings
and preparing the hour long meeting
to get you back 45 minutes to make it a 15 minute meeting.
And he's like, show me your priorities.
What are you gonna do next year?
Like the great big things with your family and like,
then he repositioned and prompted it differently.
He repositioned the way I look through my lens
and all of a sudden I look through his lens
and I said, this is the right thing to do
because before I was like, this is douchey, dude, driver.
And like, he's got this trainer, right?
This guy's jacked, like really jacked.
And he tells his trainer, he goes,
why don't you take your shirt off
and post on like social media
and like show yourself working out, it's inspiring. And he goes, dude don't you take your shirt off and post on like social media and like show yourself working out it's inspiring and he goes dude that's so stupid he's like I hate those
guys and he's like well who's that pitcher right there he goes you know who that is it's Arnold
Schwarzenegger and he goes what pitcher is that he's got one of the years he won Mr. Olympia he
goes why do you have that pitcher he goes dude it's motivating as hell look at him he goes you don't
think that you'd motivate other people and now the guy posts online and he actually helps people improve their life.
It was just the scene through this different lens. And that's what Dan's helped me to do
because I had this exact lens perfect for the business. I didn't have it at home. I
didn't know. I said, I don't chef. Like that's I don't need a chef. Then I found myself ordering Uber Eats every night,
not eating healthy. Now it's hard not to eat healthy because if I don't like something,
I might make something different, you know? And it sounds, it does sound a little douchey,
but it's not. It really isn't. It's just a way. And by the way, I invited a lot of people
over and it's not like selfish, I don't think it's it's no I think more for my people dude
I think I think you're one of the most generous loving non douchey people for
Where you could be douchey right like you're in a position where you could clearly be douchey, right?
Yeah, you ride off into the sunset with the money and be like screw you team. Thanks for the you know
Yeah, it's been a fun life. I got found a great leader
I'll see you guys later.
And a lot of times this happens.
Right, yeah.
Yeah, man, I think transitioning in business,
like everybody has different experiences.
There's so many different PE groups,
strategics or whatnot.
And to each his own, I think the hardest thing,
I don't know if you experienced this, is just like allowing
somebody else into the baby that you've created.
Yeah.
Yeah. You know, I think that that was probably the hardest thing for me and that I
did not realize would affect me as emotionally as it did.
Right. Like this is the baby that literally was birthed out of my garage.
Right. Like this is the thing that I have built strategically on purpose by design.
And now there's other people coming in calling shots that I don't agree with. built strategically on purpose by design.
And now there's other people coming in, calling shots that I don't agree with, right?
And that's probably the most difficult thing
about letting go.
Well, here's the thing.
These guys don't know how to market like I market.
Marketing's probably the fundamental thing
that I've done very well.
And I told them from the get-go,
we were very clear, I'm in control of marketing. I will make the phone ring off the hook. And by
the way, marketing is recruiting as well. So you let me handle this. You guys can put your
financial engineers, your FP&A team, tell me where we're losing money. Tell me about a
const receivable. Tell me all the analysis you guys do. I'm good with that. There's certain things.
And I quite frankly, I go to war.
I go to war with some of these guys.
And they say, if you feel that strongly
and you're that passionate about it,
we know what's gonna work.
And you know what they always remind me?
They go, we didn't bet on A1.
We don't care about A1.
They do care.
They said, we bet on you.
They remind me all the time.
This is your baby.
We bet on the best of the best.
But what does that do to me?
It puts all the onus on me.
It makes every decision I think about that harder.
It says, is this gonna grow the company and the profit?
Is this gonna take care of the people?
I asked Aura, the founder of Service Titan,
this is a really interesting question.
I said, you've got a lot of investors, dude.
You also have the trades that you're loyal to.
You got a fiduciary responsibility right here. You got a moral and ethical obligation over here. How do you do that? And he said,
well, take for example, you, Tommy, he goes, we didn't allow anything HAC plumbing or electrical
in because I had investors back then. He goes, I spent a hundred grand sending the success
managers out there because I bought into you. And of course the investors that go, why are
you spending a hundred grand on a garage store company but you told me
you're gonna take over the industry and you did everything you said you were
gonna do you've brought in 500 companies to service Titan you got another guy
like Ishmael horrible not using the software right bashing us all over the
internet we spent six figures on him to get him fixed. We got another 500
accounts from him. So I go and I fix things, and I take chances, and I make them a good
return. I'm not always right, but I do the right thing for the contractor, and it's the
right thing to do. And I was like, dude, I didn't even prepare you for that question.
It was the best answer I could have ever imagined. And so after I left there at Service Titan,
I started thinking a lot about my one-star reviews. Because now I used to say, let's
get 17 more. Of course, you're going to get bad reviews. Now I'm like, what can we do
to make that a learning opportunity to turn that person into a raving fan? Because Aura's
every story he said, all my haters that got on a Service Titan complaint became raving
fans when we fixed it. We were committed to excellence. Those were the hardest people. Those were the high Ds. Those were
the assholes that we're going to buy in. And you know, the fact is, I'm on a podcast right
now. I was on a podcast earlier today. That is like my counselor. That's my therapist.
As I get to ask questions and I get, I got a lot of like I love trailing tail trailing 12 at the time of clothes
That's a good one because you lose a few months sometimes. Yes. Well, dude, it was crazy
I mean we were told we were gonna be able to close in 30 to 40 days and it took 120 days and that additional
Bit of it an extra million bucks. No, you better bro, not even like it was an extra 10 million of Of EBITDA? And trailing 12.
That's fricking nuts.
So on a multiple basis, guys, you know what's interesting is I got a buddy of mine.
I won't go into detail, but he calls him COVID babies.
I've been doing this 17 years, but we really started to really take off.
But I'll tell you this, as I'm sitting there with Aro, who's got 12,000 companies, he goes, you're one of the only unicorns right now. And this, this is a recession. He goes,
we're in a recession. He said, goodness for a half percent cut yesterday, baby. Yeah,
that helps. Let's go. But the fact is, people are like, who do you want to win the election?
I'm like, of course I have a side I'm taking,
but I'm like, I don't care, I'm gonna win either way.
I'm like, I don't care because if it turns into
a buyer's market or a seller's market, I'm winning.
If it turns into a buyer's market,
I'm gonna buy real estate cheap,
I'm gonna buy companies for cheap,
and if it turns into a seller's market,
I'm gonna have more clients than I know what to do with.
Either way, I'm not going to let Ukraine or Israel or anything else, only what I can control.
I can't control the traffic. So what's in my control? And people say, you know,
you got to understand Christmas is coming up. And it was a hot, the summer didn't hit right for HVAC.
Everyone's got a reason. And they say, you don't understand my industry. You don't know my market. It's not like that here. These people are offering it for cheap. I'm like,
and you're competing on price. You can compete on three things. Be the cheapest, be the best
warranty with the best parts and time. Same day. We're going to be out there when you
need us most.
And so many people pick, I'm going to be price. I'm going to be, and Alex from Ozzy, you know him well, you know
better than I do. He talks about this as like most of the people that are competing on price
are broke. They're making barely a living. And literally you're copying the company that's
been doing this for 30 years that doesn't have a business that they could sell their
phone number, not their business. And these businesses come to try to sell to me. And
I'm like, I look at their financials and I go, well, you pay yourself 180 grand to replace you is going to be 100. So you found 80 grand
and your business makes 100 grand on top of that 180. I could only give you a million
dollars for this business. They're like, are you crazy? I got 40,000 customers. They don't
believe it. They don't understand. And I'm like, no one wants to pay you for your goodwill
and your bullshit. Like, look, we need we need hard EBITDA, baby. We do. We need some
cash. So I take out the way PE works is we take out loans. Right. That makes the numbers
way better. Yep. And it's got to be able to pass what's called a quality of earnings.
And you get some addbacks in there. And some of those are questionable. You could add back your daughter's pay. You could add back the car you're driving. Some of them
though are like ridiculous. And then you say, you know, there's all these questions. Are
you going to roll equity? How's this going to work? But other than that, there's really
no questions. It's like black and white. And everybody wants to live in this color area.
Well, you know, and here's the worst thing. They say, imagine what you're going to do with this. You've got a higher price,
you've got a higher conversion rate. And I'm like, so you want me to pay you for what I'm
going to do it. It's like you want me to pay you. So I'm going to buy your house that's
in horrible shape and I got to fix it up. I got to repaint it, redo the roof. You want
me to pay you for what the ARV is going to be?
That's the crazy thing in real estate all the time. If you go buy an apartment complex,
guys, try selling on a pro forma of what it could be.
Like, if you raise the rents and you change all these things,
it's worth this much.
You're like, well, why don't you do it?
And they really think they're like,
but this is, you gotta understand,
this is their life, this is their largest asset,
and other people go like this. They
go, I'm not going to spend $30,000 on a brand. I'm getting my brand, right? You're betting
the farm on this. You don't get the brand right. You know, if I said you're going to
sell in six months, what would you do? They say, well, I definitely cut these two guys
and I top grade this and I do this. Why don't you do that? Like, you know what you need
to do with Uncle Joe that's been milking for the last five years. Why don't you do that? Like you know what you need to do with Uncle Joe that's been milking for the
last five years. Why don't you start thinking I'm going to be selling in three months even if you're
not? Do the right things. Take the hard choices. You'll meet this big dude, tad it up, like drives
a Harley. He's afraid to fire. He's a manly man but he won't do make the hard decisions. What if
you manned up or womaned up and made these hard hard decisions today
and realized I need to get this and this and there's nothing going to stop me. No excuses.
Even with getting in shape, I got a guy, you don't know what happened to my shoulder, I can't lift.
Dude, you don't even walk. I watched you drink a 12-pack last night. You are making excuses thinking
in a 12-step process I'd never been through. what's the first what's the first thing you do?
Admitting you've got a problem exactly and most people are going oh this this you don't understand this one of the things so firing is hard
I remember when I we first had to fire people like I hated it because I feel like I was I'm not good at it to this
Day well, I feel like I was doing something wrong to these people. I was put him in a bad situation and
Then the the paradigm shift was like I'm not firing them for me
I'm firing them for everyone else who's there working for me, right?
And so that that helped a little bit helped a lot actually
But then on top of that is like there is a right fit for every single person on this earth somewhere, right?
They have a value that they can bring to society
somewhere, right? They have a value that they can bring to society. And if they're not bringing it to us, by not getting rid of them, you are costing them their real opportunity and like gift in life,
right? Like if they are an artist stuck doing an accounting job for you, right? Like you were
screwing them by not setting them free. I think that's a big, big paradox.
One of the traps though, and we had to learn this
when we had to cut some people was if you're overpaying someone, they're the hardest people to cut because you're basically putting them in a bad situation because they'll never be able to
replace the pay because you overpaid them. The people that you're paying them what they're worth,
you should never worry about laying them off or firing them because they'll go get a job for the same or more. That's a
great, here's the deal, this is where everybody gets confused. A lot of my
coaches, a lot of different people they go, do you realize how much this guy's
making? And they go, he should be running more jobs than two a day. And I go, he
spent 10 years to master the craft to be the best. Tom Brady doesn't have to play
every scrimmage, he just needs to play in the Super Bowl. And I said, he's earned the right to make 400 grand.
You know why? Because he's earned the right. And guess what? He makes more than me without equity,
but he makes more than me. Any sales job, it's called performance pay. And when you're the best
and you're very good at it, you don't put a limit. You know how many owners I meet that they're like,
my guy makes more than me?
I'm like, did you really reverse engineer
and pull out a pivot table and say,
if your guy's making 500 grand, that means I'm making a million.
Right.
And if you make, I tell my guys all the time,
I hope you make $10 million next year.
Yeah.
But owners are like, well, he's not working his heart.
He's not doing this.
You built the pay structure.
What do you mean?
And it's crazy the people that want to go in and change those pay structures because
these guys are making too much when they're actually performing and producing.
Especially management.
Oh, it's crazy. So they're like, I'm like, then you, here's the keys. You could go have
that job. You could have any, you want to be an installer, they're making a lot of money, you go take that job. Oh, but you don't get to be in an
air-conditioned office. Oh, you got to pick up a night shift. Oh, you got to work weekends.
Oh, you have to pick up on Christmas because that guy picked up on Christmas. And guess what,
that guy wasn't going to make Pinnacle, but he worked one month straight because he wanted it
that bad and earned equity. I think we miss how hard these guys don't have it easy and when you're the best of the best, why would you get, anyone in my management, right, they
could have that job. They could say, listen, I'm going to go into this and it's not a demotion.
That's the hardest part about a sales guy is like, I want to get into management. And
sometimes they can be great. You're going to make less money. You're going to make less
money, but there's an opportunity to have ownership and it's gonna take a few steps back, but you could probably take 10
steps forward. But it's like, so you're devaluing what I'm worth. No, it's a whole different role
and it's more about leadership and communication and these different things. And it's very, very
hard because they feel trapped. They'll never get out of the garage. And that's why we created
the product specialist that could work from home to help close over the phone. So that's that's why we created the product specialist that can work from home, right to help close over the phone. So that's there's there's now there's a different
branch that you can go different ways. And that's what people love about they get to
work themselves out of the garage. Yeah, as they get older, it's understandable. Last
thing guys, let's let's get this going here. I'm going to ask you guys each a question
to close us out.
But if someone wants to get a hold of you, Chris, how do they do that?
Follow me on Instagram. It's probably the best at Chris Lee QB quarterback. Where are
you at? Are you mainly on Facebook, Instagram? What's the best spot?
Well, TommyMello.com is all my social. I'm more, I'm an old man. I'm more on Facebook and you know, somewhat
LinkedIn but, but, uh, it's fun. It's funny. Us like 40 year olds, the guys in the forties,
right? Like we're, we're still on Facebook. Yeah. We made that transition from Snapchat
from my space to Facebook. So it's like hard for us to make another transition, right?
You know, it's pretty funny. My family. What about you, Darrell?
Uh, Instagram, Darrell C. Kelly. You find me there I always give Darryl a hard time
I'm like bro get on social well by the way Darryl is D A R Y L L 1 L 1 L so we
screwed this up yeah YL D A R Y L and then it's C Kelly Kelly okay follow
these guys reach out to these guys.
Any books that like out of like, you know, the greats, there's a million books, but is
there one book that maybe no one's heard of that you guys are like?
I mean, one that many people have heard of, but I always go back to is Atomic Habits by
James Clive.
I mean, dude, every time I read that book, it gets my mind right. And I'm reminded of, right, like habit chains and everything else.
I'm like, ah, I got to get back in it.
And I always sharpen right back up.
Dude, it's, I throw that thing in audible for one year and I'm, or for one hour.
And I'm dialed.
I'm ready.
I'm ready to take on the world and just be the most disciplined human being in the world.
So let me, let me read you something.
What are you thinking of that.
Daryl.
Yep.
So, I'm your constant companion.
I am your greatest helper or your heaviest burden.
I will push you onward or drag you down to failure.
I'm completely at your command.
Half of the things you might as well turn over to me and I'll do them quickly and correctly.
I'm easily managed, but you must be firm with me. Show me exactly how
you want something done and after a few lessons I'll do it automatically. I'm the
servant of great people and the Alice of all the failures as well. Those who are
great I have made great. Those who are failures I have made failures. I'm not a
machine though I work with the precision of a machine plus the intelligence of a
person.
You may run me for profit or run me for ruin it makes no difference to me. Train me, take
me, be firm with me and I will place the world at your feet. Be easy with me and I will destroy
you. Who am I? I am habit. I get goose bumps.
That's so good. Where's that from?
It's just a poem. It's called I am habit and I read this to all my graduates every
single month.
I love it. And like, and I read this to all my graduates every single month. I love it.
And like, dude.
Send it to me.
I changed, I will.
And I changed everything by just learning.
Like dude, habits are everything.
And it's so important.
Like I floss twice a day, I got a time for it.
I still throw things out of whack so time doesn't fly by.
And I kind of get out of rhythm.
But it's, I could go right back in, which is is rare because you know what happens when you get off your rhythm.
Yeah.
As you got to have this skill to get right back in it,
and you got to be disciplined because if you're walking three miles a day and you stop for a month,
or you get sick and you can't jump back in,
it's so easy to listen to that bad voice and say,
well, I love that book. What about yours?
It's interesting you say that. So my recommendation is I'm going
to just throw something out there that probably business
community hasn't.
No.
Could be.
But Becoming Supernatural by Joe Dispenza.
So this is, yeah, so Joe Dispenza, he teaches meditation.
And when I first got involved in his work,
it was kind of woo woo type stuff.
He helps break it down so you can understand it.
But one of the powerful things is understanding
how your body thinks and how your mind thinks.
And what that means is like, there's times where we react,
we create an emotion to a situation,
and it's just purely a memorized reaction
that our body gives
us. A good example would be like you could come home and your wife says
something and your reaction is like triggered, triggered for whatever reason.
Right. And you know what meditation is, is it's removing, it's removing that
programming in your body so that you can actually think and use your mind to
actually be cognizant of your decisions. Yeah. Yeah I love that. It's really that programming in your body so that you can actually think and use your mind to actually
be cognizant of your decisions.
Yeah.
And your yeah, I love that.
It's really fascinating.
It's a very different way to look at what's going on in the world.
I think I need like I'm very nervous to unpack some of these memories that I know are deep
down inside.
And this lady, she pulls out these Kleenexes and they're filled with this trash bag like
the big, you know, just like an office trash and a see-through. And she goes,
when we meditate, when we actually get the help, when we take these things, she
takes out each napkin, she folds it up, puts it there. She goes, this next one,
she folds it up. And she takes all these out and she puts them back in and says,
there's more stuff gonna be here, but we're
free now. We've accepted the past. And that's a tough one for me because I know there's
stuff, I don't know, like, I don't know what's in there. But it's like, you know, the book
Gino Wickman. Oh yeah.
Shine. The newest one. He sold his company. He's on the top of EOS. He's on the top of
his game. He's a great guy. We actually flew him out
and met directly with our management team. He's a genius and I love the guy. And he said,
dude, Byall accounts on the biggest success, a worldwide training for business. I'm a multi,
you know, hundreds of millions. And he goes, I sat there, sold, he goes 12.5% of EOS
now. And he goes, I was literally depressed, like literally like, very depressed. And he goes,
I didn't know what to do. I had all this money. I created something amazing. And so he writes about
this in Shine. And it's true, man. Like people
sell, it's almost like you sold a piece of your heart when you sell your business sometimes.
And that's one thing that I'll never go through. I love my business, but I understand what
it's doing. And I understand that it is a business. It's not a human being. And it helps
a lot of people. And I'll never leave it in a bad spot from good to great, and built to
last by Jim Collins, built to last. It's like, I want to leave this company and thrive without
me. Yes, that's how good of a leader I want to become is that it did better when I was
gone. Because there's no ego. I love it. And that's a different thought. But I'm going
to have you guys give us we talked about and this is the best part is I didn't ask any
questions on this. That's good. It was good discussion.
So we talked about a lot of things in the podcast, talked a little bit about PE,
a lot about just growing a business, talked about our some favorite books, talked about hiring,
probably left some good things out. Probably something that's heavy on the heart,
something that the listeners need to hear. So one big thing to close us out, Darrell.
So I'm looking at myself 10 years ago,
20 years ago, what I would talk, what I would tell myself.
Jeffery B
I like that.
Darrell Bock And I think the one thing that I'm learning
today that I wish I would have understand better then is like we experience this world in our
body. And our body is impacted by food and exercise. Also, you know, many other things, but just like,
don't wait to take care of your health.
Like, make your health part of who you are.
I was in the camp where I just, I was skinny,
even be considered skinny fat.
Like, I just didn't, I just didn't, I wouldn't eat
really much food. I didn't work really much food.
Didn't work out a lot.
Didn't work out a lot.
And so then this year, I feel like I've gone through this big transformation from a lot of different aspects from business, spiritually, financially.
And the physical aspect just wasn't a priority. So you know I've gained 25 pounds this year and I've been eating a lot better. I've been very diligent and what I eat, what I
don't eat and it just seems foolish that we don't take that serious. And I know
you've recently, you just mentioned you've been focusing on that as well.
I'm gonna know Saturday. Dude 10%? Jeez, dang Gina. I mean what to know Saturday. Dude, 10%? Jeez.
Dang, Gina.
I mean, what was it, a year and a half ago?
26.
Really?
Less than a year ago.
That's incredible.
That's incredible.
By the way, he's got a great doctor that I did a call with.
We need to do a group consult with him.
Dr. J.
Yeah, Dr. J.
Part of it, like the four-hour work week, is like, are your supplements right? Is your
sleep right? Is your water right? Is your food right? But it's not that complicated.
It's like anything else. You said once you learned your KPIs, it's pretty simple. You
know your KPIs are your body, your sleep, your algorithm. And all of a sudden, man,
it's really not that hard. It's these little decisions of just, you know what, I don't want cake.
You know what, I'm going to order a chicken. And by the way, order stuff that you enjoy
eating because there's something healthy you enjoy. It's just so easy. Food is poison.
Did you ever see who's in charge of the United States, Canada, or England, like the health
general?
Oh, yeah. They are fat, disgusting lards. I mean, we have a tranny as...
We do.
I mean, how is that the health person?
I'm sorry.
You win for it.
I'm sorry, but man, dude, that's a health issue.
Yeah, I agree.
How about you, brother?
I do.
By the way, I'll just tell you that that's very, very powerful. Like, I got a
phone call that my cousin, very smart gal says, you know, what's wrong with you? You
know, you don't look healthy. You don't love yourself. She made me go take off my shirt
in the mirror. And I was embarrassed. It's something that I looked in the mirror every
day, but I didn't see myself. I had every reason. And then she said, why don't you love
yourself?
And, man, that was a smack in the face.
I think the challenge, too, is we're taught, like, don't be vain, right?
Yeah.
But I think that's taken out of context.
I think being able to be in love with your image is important.
Well, I also think it's just like being out of whack any one direction.
Like the guy that only cares about his physical appearance and that's it.
Like spends six hours in the gym, has a terrible family life,
can't pay for, barely pays gym membership or whatever else.
Right? I think there's that, right?
But, and so what we have been taught on the opposite side
is like, that's bad, so don't just.
And I think on the other side too,
you'll manage stress better.
We go through a lot of stressful things as business owners.
And I mean, stress is just an emotion your body's producing.
It's chemical.
And your body can go through quite a bit,
but you have so much opportunity to control that
in a better way.
And I think it starts with diet and exercise
and being consistent on those two things.
Because I know if I wake up and I work out,
I'm going to eat right, my mind's going to be right.
Like so many other things start to line up for me.
It's the old habit stack, right?
You start with one thing, it domino
effects into everything else.
Stress is the inability of action.
It's not acting.
It's not making decisions.
It's not moving forward.
It's not having the difficult conversations.
I think most of stress and anxiety is dealt with
is you're letting things bottle up instead of just getting it
out.
Rip the bandaid.
Rip the bandaid.
Rip the bandaid.
And I think when you're taking action in the gym and being disciplined at the dinner table,
it's much easier to address these hard things that cause stress, right? Like go have the
hard conversation.
You do that more because you're used to doing hard things. And I do believe like, you know,
making decisions quickly and just living with them quickly. Like so many people live in
this procrastination mode.
Oh yeah.
And they just don't know, like it's not the right time,
but what if we fail?
And they're so worried.
And it's like, who cares?
We fail.
We make a hundred thousand decision, doesn't work.
That's why my PE company, I love them.
They're like, you prove it out in that market,
then you can scale it to five, then you can do it.
They're totally fine with it.
They're fine with it.
They're taking the action, that's awesome.
Love it.
What is your final thought?
You know, for me, I've thought a lot about just the why.
Everybody knows about, yeah, you've
got to have a why that motivates you and everything else.
That's cynic, yeah.
But I think more important than that,
you need to have a why that's unique.
Most of us try to create whys that are somebody else's why.
I need the house, the car, this.
We define success based off of other people's parameters
rather than our own.
And I think really getting detailed,
like for me what's changed my life is when I put detail
to the reason why I want a certain dollar amount.
Like what am I gonna do with those dollars?
Like what does that actually mean for me
if I have a billion dollars in the bank account? Not just to say I have a billion dollars, but like what am I doing
with that billion dollars? Like what type of charity events am I running? What am I
doing in my community? How am I involved in my family's life and everything else because
of these type of things? And doing the things for me, not for it to impress anybody else, right? And for some people living in a cottage,
you know, that's off grid somewhere in Kansas,
maybe it and other people,
it's gonna be a $10 million condo in New York
or whatever it may be.
And like getting to know yourself
and what actually brings you joy and happiness and everything else.
Sorry, that's my diabetes going off over here.
So like just getting to that
and like really understanding yourself
and being driven that way rather than just be like,
oh, Daryl has this, I should probably want that.
Or Tommy's done this.
And I think it's really easy,
especially as a listener to the show,
they see three guys that have accomplished
a lot of really cool things to be like,
oh, I need to go do that, or I want to go do that.
It's like, maybe, like, is that the thing
that drives you, that pushes you, that motivates you,
that's going to give you true fulfillment in life?
And if it is, then get a exact detailed plan
and go and make it happen.
I love that. I meet a lot of people that are like, I want to do what you did in my industry.
I go, why? They're like, because you proved it's possible. I'm like, what would you possibly
do with $100 million? They're like, I don't know. And I'm like, well, what is it like to be
at your daughter's play and not be there?
And they're like, but I am there.
I'm like, no, you're not.
You're thinking about work the whole time.
You think this, you never have a plan on selling,
which means you're gonna spend the next two decades
of Mr. Children's life.
We say we're all there at work,
but very few people have the ability
to be where their feet are.
And I just, I think you both made valid points.
There's 168 hours in a week.
Time's not your problem.
You work for 50, you sleep for 50, you work out for 10, you still got 60 hours left.
So get your time.
And what you say is really,
put down a list of priorities you want your life to look like.
Manifest what it looks like for me at 41.
And say, this is some things that it's not happiness but this is
what really what I want to do because trust me the material things they're cool at first.
Yeah they're fleeting. I see a lot of people get on drugs commit suicide their lives fall apart
money will ruin people quicker than it will help them so just be very careful what you guys want
you guys made great valid points I'm glad you're here it was pleasure being you, Darrell. A lot of fun, man.
As always, appreciate you both.
Thank you, guys.
Thanks, Tommy.
Thanks for listening, guys.