The Home Service Expert Podcast - Developing a Family-Oriented Business Culture to Improve Employee Retention

Episode Date: July 5, 2024

Eduard Mirzoian is the CEO of RESTORERZ - Emergency Services, the most trusted and technologically advanced emergency restoration company in Southern California. He has a Bachelor’s degree in Archit...ecture from the University of Nevada - Las Vegas and he previously worked as an Operations Manager at Dry Tech Restoration for more than ten years. In this episode, we talked about the restoration industry, building client relationships, insurance companies…  

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Starting point is 00:00:00 My theory has always been that, you know, I want to take care of my people and then have my people have an opportunity to take care of our customers. But with us, if you're a restoration company and you receive jobs from the insurance company, that's really never going to be the case because you're going to care about the insurance company first. So what we like to say is that we work for the homeowner with the insurance company and not the other way around. But we truly enjoy building relationships with a lot of our partners in Southern California. And I think one of the hardest things that you could do nowadays is build a relationship-based business based off of referrals. When you hear a number like that, 75 to 80% of our business is based on referrals, that means that we constantly need to make not only their clients that they
Starting point is 00:00:53 refer us happy, but also the referral partners that we have happy. Welcome to the Home Service Expert, where each week, Tommy chats with world-class entrepreneurs and experts in various fields, like marketing, sales, hiring, and leadership, to find out what's really behind their success in business. Now, your host, the home service millionaire, Tommy Mello. Before we get started, I wanted to share two important things with you. First, I want you to implement what you learned today. To do that, you'll have to take a lot of notes, but I also want you to fully concentrate on the interview.
Starting point is 00:01:33 So I asked the team to take notes for you. Just text NOTES to 888-526-1299. That's 888-526-1299. And you'll receive a link to download the notes from today's episode. Also, if you haven't got your copy of my newest book, Elevate, please go check it out. I'll share with you how I attracted and developed a winning team that helped me build a $200 million company in 22 states. Just go to elevateandwin.com forward slash podcast to get your copy. Now let's go back into the interview. All right, guys, welcome back to the Home Service Expert. I got my good buddy Edward in town, and I got to tell you guys about his shop and the way he runs his business. Edward
Starting point is 00:02:17 Rizzoli in here. He's an expert in sales, water damage, restoration, and operations management. He's based out of LA. He's the chief executive offer of Restores. And in the past, for about a decade, he was the operations manager at Dry Tech Restoration. He's the CEO of Restores Emergency Services, the most trusted and technologically advanced emergency restoration company in Southern California. When I went out and visited Edward, he's just super organized.
Starting point is 00:02:49 Everything about his shop, everything's got a space. They do the storage there. Obviously, if you've got furniture, you've got to move it out. He stores the furniture. Everything's got a spot. Everything's got an area. I liked him so much that he allowed me to invest into the company, and he's killing it. He just takes care of his people. He takes care of his family. He really treats every single person
Starting point is 00:03:14 he meets like family. Every business that works with him, he treats with respect, and he takes care of them. He will bend over backwards to make his customers successful. He actually has Joe Cressaro come in and coach for the different plumbing companies. He works with guys like Ishmael Valdez and a lot of other successful plumbers. And the coolest thing is he's expanding into Phoenix and Vegas. So if you're a company that does plumbing or just has a lot of referrals for water damage or any type of damage, you need to be reaching out to Edward with Restores. So Edward, I'm glad you made it here today.
Starting point is 00:03:51 Let's just talk a little bit about your entrepreneurial journey of what you're doing and where you're at today. Yeah. Well, first of all, Tommy, thanks for having me in. I mean, as you know, you probably, probably came to the shop, you saw everything. But this year, I guess like starting December, you saw the home service industry kind of took a major shift, right? But what we're using this year in the business is kind of like a 2.0 version of all the systems and workflows and processes that
Starting point is 00:04:25 that uh we're trying to roll out uh the goal is to roll out the 2.0 version and then next year kind of double down on all of our all of our people and everything that we're doing to double our revenue and roll into vegas and phoenix um what was your question about my entre so just talk to me a little bit. So what, why water restoration? How'd you get into the business? Where's the company at today? What are you looking forward to doing in the next five years?
Starting point is 00:04:53 Yeah. So we actually stumbled into the business, what was happening. And we originally started in Las Vegas. So we were flipping houses with my father and I, and we were running into mold-damaged houses, just dirty, sewage-filled houses because of the foreclosures and stuff like that back in the day. So we decided to kind of learn more about what we were doing and become professionals and differentiate between the flipped houses and take a professional stance at it. So during that journey, we came across a good family friend
Starting point is 00:05:28 that actually owns a plumbing company and he was one of the biggest home warranty vendors in Las Vegas at that time. So we just decided to kind of partner up with him at that time and do all of his water damage leads. So the first day that we opened up, my dad actually opened up that business. So the first day he opened up that business, he just had like four whiteboards and they started filling up in one day.
Starting point is 00:05:53 But he knew nothing about property restoration just in general. But we've been in construction and remodeling and stuff like that for a very long time as a family. So as he started getting to know the business and figuring out the ins and outs, he came across some health problems. So he had a sciatic problem, which put him in bed for a very long time. And then at one point, I was doing tech work and stuff like that. I was very young. I'm 29 years old, by the way. So, um, at that time I was in my teens. Right. So he basically gave me the keys one day at home and
Starting point is 00:06:31 he's like, uh, do whatever you want, close it down or let it drown. I don't, I don't care. Cause he was, he was sick. Right. Um, so I, there was one other guy left. He had fired almost everybody cause it was just a shit show there. There was, there's work coming in I, there was one other guy left. He had fired almost everybody cause it was just a shit show there. There was, there's work coming in, but there was no one that could possibly do the work. Right. So I decided to just kind of lock the office door and go to the calls with one of the technicians and me. So we would go to the calls, uh, you know, we would, I would sell the job and then we
Starting point is 00:07:02 would do the job right after. Um, and then slowly, you know, I started creating a system behind the tech stuff, finding the best way to go about doing the work. And then I was able to take that hat off and give it to this guy. And he was a lead tech now. And then I would focus on just selling. So then after I figured out the project manager role, which is the sales role in our business,
Starting point is 00:07:24 I created systems and workflows for that position also. So then I took that hat off and decided to stay in the office and start negotiating with insurance companies to create a system for our accounts receivable. Because in the restoration industry, you could go sell $10 million worth of work. If you can't have that money come in, you're broke, right? And that's the biggest problem in the restoration industry is cash flow for businesses of all sizes. So fast forward, my dad got better and my brother was actually part of the business, but he had decided to go to California for design school. So he's trying to design cars and do all of that. So he came back.
Starting point is 00:08:13 And then at some point, I felt like there was like too many lions in the den, right? Too many people with too many opinions. But everything was set up like workflows, technology, everything. We were running as well as we could be with what we had going on there. So I decided to tell my parents, you know what? I'm going to go back to school. So I said, I'm going to go back to school in California to go to law school. And that was the only way they were going to kind of let me go without getting upset. So I came to California, but I knew in the back of my head, I was going to actually open up a restoration company in California. So it was like 2019, March 13. I packed my stuff in like a little sedan and everything fit in there.
Starting point is 00:08:54 And that's everything that I actually owned in life. And I was like, fuck, you know, like I don't have shit. So I got to California and it was like turned out it was one year before the pandemic. So I fake enrolled into this law school, but I never like went, but I partnered with a plumbing company. I rented out a like four by six room in their little office with no windows, no AC, no nothing. And I just did exactly what I did back at Dry Tech. You know, I started doing the jobs, doing business development, doing the management. And then I was hiring people and paying them a full 80 hours without them working 80 hours. Because I knew in like a month or two or three, like I was going to need those.
Starting point is 00:09:40 Yeah, exactly. So I basically doubled down on myself. Then the freaking pandemic hit. And honestly, that was probably the worst and best thing that could ever happen to me. Because what happened during the pandemic was actually the day the real estate market closed in California, I'd already said bye to those people that I was renting from. So I'd already said bye to them. And I was like stuck in my friend's ADU that I was renting from. So I'd already said bye to them. And I was like stuck in my friend's ADU that I was renting and all of my, like, there's three people relying on me,
Starting point is 00:10:11 the world shutting down. But I was like, I'm just going to look at some offices near me on LoopNet. So I found this office. I went there. It's the last day the real estate market's closing. So I got a killer deal on that space. The guy's like, even know what the hell you're doing, right? I'm like, yeah, sure. So I just took the keys. And then from that point on, like I said, it was the worst and best thing that ever happened because it leveled out the playing field. So what I noticed was everyone was, no one knew what the hell was going on. Even the people that were supposed to know what was going on, didn't know what was going on. So I said to myself, like, what do I know? What do I know how to do? Right. I know how to do restoration. I know how to lead people. I know how to manage. I know how to create systems. And I know what I truly need to do now. So I just kind
Starting point is 00:11:01 of focused on my internal voice instead of everybody else talking bullshit around me. And month after month, year after year, and now we're at three locations in Southern California. And we have a beautiful headquarters and we're in Orange County and we're in Gardena. So we cover LA County, Ventura County, Orange County. And we're trying to grow next year and this year to Las Vegas and Phoenix. So when did you get on a service Titan? What was that?
Starting point is 00:11:34 How did that go? So I think this story is pretty similar to your story. When I met Tom Howard for the first time, I think it was on vertical track. We're sitting on a bus and I'm like Tom could I ask you some questions blah blah blah he's like yeah sure you know how Tom is so um he asked me something similar he's like are you on service Titan I'm not I'm like finally I'm on service Titan but when I was still in Vegas so about like six years ago I tried getting on service Titan and service Titan said oh we don't do restoration companies. I'm like, hey, you guys are Armenian.
Starting point is 00:12:10 I'm Armenian. I wrote him like this huge email. I'm like, you guys are missing out here. Like this, this could really help businesses. And I think this is exactly what I'm looking for. Right. And they still replied back. Like I sent the email to Tom and I think he saved it.
Starting point is 00:12:25 It's like a huge email. They replied back, no, we're not going to, we still don't want to do it. Sorry. So I was like, I really need to see what this service Titan hype is about. But I understood service Titan wasn't going to solve all my problems, but I was going to integrate it with a field specific software that was going to give me the ultimate stack to make sure that all my problems, but I was going to integrate it with like a field specific software that was going to give me like the ultimate stack to make sure that all my bases are covered. So I decided to get like a fake plumbing company situation set up where we were going to start plumbing or whatever so that I could pitch it to Service Titan and get on Service Titan, but use it for restoration.
Starting point is 00:13:12 So that's what I ended up doing just to test my theory of if ServiceTitan will work for Resto. And it ended up working beautifully. So it's been about actually three years that we've been on ServiceTitan. And we're kind of combining it with HubSpot and Circle, which is a field service software for the restoration industry. And a few other things to really make an automated experience for the office and our customer. What do you think? So explain to me really quickly. So insurance versus plumbing leads versus someone just searching on Google, what usually happens?
Starting point is 00:13:48 So a pipe bursts. Explain to me exactly in the audience, like how, what are the different lead sources? How do you bill it? What do you like? What don't you like about the industry? Yeah, Yeah. So in regards to the restoration industry, like our business is heavily reliant on relationships and referrals, right? So about like 75, 80% of our business comes from plumbing companies referring us, insurance agents referring
Starting point is 00:14:18 us, brokerages, property management companies, which we try to stay away from, but there are a select few that we like working with. But really anyone and any company or individual that could possibly refer us. So the main difference between our business model and most restoration companies is that most restoration companies are vendors for insurance companies. So what that means is like you're a slave to the compliances and the tasks and the things that the insurance company wants you to do. So with that being said, like their customer is truly the insurance carrier. It's never the homeowner that was referred to them because if they do everything that's right for the homeowner, they're going to upset the carrier. So I've never really enjoyed that. And about 90%, 95% of restoration companies operate in that way.
Starting point is 00:15:20 So my theory has always been that I want to take care of my people and then have my people have an opportunity to take care of our customers. But with us, if you're a restoration company and you receive jobs from the insurance company, that's really never going to be the case because you're going to care about the insurance company first. So what we like to say is that we work for the homeowner with the insurance company and not the other way around. But we truly enjoy building relationships with a lot of our partners in Southern California. And I think one of the hardest things that you could do nowadays is build a relationship-based business based off of referrals. You know, when you hear a number
Starting point is 00:16:05 like that, 75 to 80% of our business is based on referrals. That means that we constantly need to make not only their clients that they refer us happy, but also the referral partners that we have happy. So, you know, we're constantly going're, we're constantly going above and beyond. And I think that's like a huge cultural thing that I'm happy about. What is it? So you're giving them a finer fee. Yeah. Yeah. So we, uh, we, we give them a, uh, consulting fee, right? So, uh, a lot of times what happens is, uh, it's very competitive, first of all, in LA. But we do have a consulting fee and we have promotions that go on every single month for all different counties and everywhere that we go to. But besides the consulting fee, which a lot of restoration companies do give in LA, we are really competitive with that. But besides that,
Starting point is 00:17:06 we try to build value into the relationship. So you got Uncle Joe and his team coming out to some of the partners that we have, the plumbing companies and stuff like that, and giving them the one hour crash course on sales, customer service, and how to really be a true champion. Then we feed our plumbing partners. So we're constantly bringing them lunch, breakfast, we've taken them out to dinners. We're throwing together networking events in our areas and stuff like that. So where really our goal is for our partners to also reduce liabilities in their business,
Starting point is 00:17:44 because there are a lot of liabilities with asbestos and lead and stuff like that. When you're a plumbing company and you're just trying to get in there and cut walls and fix a leak. We've saved a lot of our partners a lot of money from a lot of liabilities. And then our second goal is for them to increase their profits. So if we could help your bottom line at the end of the day and reduce the liabilities and create a safer environment for your company and your people to work in, that's our goal. Because when our partners win, we receive more leads.
Starting point is 00:18:15 That's our mentality. What's the hardest part when you're reaching out to a referral client? Who are you dealing with? I know there's different decision makers and some of these guys, the problem is I think some of the technicians are getting the cash and sometimes the owner wants the cash. And how do you, what are some of the issues? Yeah. Our goal is always to build a, our goal is to be very, first of all, very transparent. I know, you know, just like how you said, a lot of plumbing, independent plumbers like to deviate from the vendor of choice that the plumbing company has already set up.
Starting point is 00:18:50 But that's because most most restoration companies in Southern California suck. Right. Yeah. And with that being said, like our goal is always to get approval from the plumbing company and have the management and the leadership buy in. But we also understand, you know, the, the, uh, we also understand one of the most important parts of this is the plumber that actually goes out to the property. So we usually leave the split up to management, but we always give our best recommendation. And then we also have a course that we do during our lunch and learns where we're able to educate the plumber on how to approach getting us getting restores to the client, right?
Starting point is 00:19:32 Getting our foot in the door. Because at the end of the day, there's a lot of things that are just outside of the referral fee that have to do with the relationship. And one of them is like making sure the home is safe. So in California, I don't know about Phoenix, but in California, at least there's a lot of asbestos and lead. And then there's a lot of times where, you know, a lot of these houses have old dinghy roofs. And then we just went through a rain season and there's mold everywhere. So, you know, one thing that I
Starting point is 00:20:05 believe in is if you're a true professional and if you're a true plumber and you truly care about your client, you walk in a fix, you walk in a fix a leak right here. But if you see that there's mold there, you know, it's up to you to educate your client and let them know like, hey, I'm here for this. People get sick, people die. Oh, people die oh yeah yeah yeah we've had very serious we've had so many situations where you know we've had to do jobs for free for people because of the you know the stories and situations that my project managers come across there was an individual that was actually like in a coma for three months because they had somehow from from from i don't know where swallowed mold like they had mold
Starting point is 00:20:46 developing in their system so they were hallucinating constantly randomly at night and having seizures and stuff like that so you know they did their insurance didn't cover it because they look at that as like customer negligence yeah right so you know we felt really bad and the individual was older. So we decided to do a free mold job for them and make their house mold free. Oh, geez. That's serious stuff. You know, one of the things I remember you telling me was,
Starting point is 00:21:15 at first you guys used to take on the whole project. Yeah. And the guys I've talked to, it's a whole different thing to be a contractor and rebuild it and just remove the mold and get the place dried up yeah when did you guys make that because i think it's really good to be a specialist talk to me about how that really improved the business and have you focus instead of being a jack-of-all-trades you got to be a master of just handling that one thing. Yeah. I mean, that was, you know, back in Vegas when we had dry tech restoration, that was, you know, most restoration companies want to do, want to do it
Starting point is 00:21:51 all. You call it a full service restoration company. Um, but what I noticed was if I truly wanted to enjoy what I was doing and I wanted my team to feel like they were actually making a difference and not just dealing with people whining and crying all day. I had to figure out what we were really good at and which part of the workflow and customer journey through the claims process we wanted to be a part of. So initially when you're having a problem, you're at an all time an all-time low, right? Emergencies aren't scheduled. You know, people aren't expecting it. It's not a remodel where you're looking forward
Starting point is 00:22:30 to something. So like you come home and, you know, now you got shit everywhere in your house and you, we come, we come across your, across your desk and now we're in front of you. And now our goal is to, you know, provide you with options, solve the problem in the most efficient way, and create really still a customer experience and journey through these shitty times. So when we meet you, you're at your all-time low. And then by the time we cut clean, dry, sanitize your house,
Starting point is 00:22:59 if we need to pack out your stuff and storage so we could return it back when your house is fully restored, by the time we're done with that process, now we've brought you back to at least normal, if not better, right? We have white glove service. We're holding your hand every single day. We got many departments involved in making sure that you're getting the handwritten thank you cards. We're taking out your trash. We're doing all the things that I've learned from other industries and verticals in the home service industry.
Starting point is 00:23:32 And we've just created an amazing journey. So once that whole process is done, you're now, I think, at the peak of the insurance claims experience you're going to have. Because at that end, at that part, the insurance company steps in, right? So now they want to come to your house and do their measurements and send their vendors and calculate how much they owe you for different types of building materials to rebuild your house and restore it back. So from that point on, it's a straight downhill in the customer experience. And sure, some people say, I'm leaving money on the table, but I've proven that concept that I'm not leaving money on the table. And we actually have amazing margins. We have amazing
Starting point is 00:24:23 culture because people truly are not listening to people whining to them and how the claims process sucks and the insurance company is shorting us. And my pink doesn't match on the wall. So we decided to be the heroes and not the guy in company that everything gets blamed on at the end because the insurance company ends up brainwashing the client. And we don't want to be part of the reconstruction process because truly that's another business inside a business, to be completely honest. Yeah. So do you guys have a say in who gets the work to do the restoration side, the rebuild side of it? Yeah, we do.
Starting point is 00:25:06 We have a, and, you know, that's always open as we're growing. There's not one single company that can handle it all. So, and then we're very, very careful on who we associate our name with. So for anybody listening, if you do reconstruction or you're going to contract or anything like that, you know, always give us a call. We in any in any county, Ventura County, Orange County, L.A. County, even San Bernardino County, where we're open to referrals to give out referrals. California. I've stayed out of California for a reason. I think it's a tough place to operate. I think it's not a question of if you're going to get sued, it's when you get sued. There's nobody I've talked to, Tom Howard, Megan Lykes.
Starting point is 00:25:49 I know some of the best operators in the country that are in California. But it's just a matter of time. There's more litigators in Southern California than the rest of the country combined because if they sue you and the employee wins a dollar, you pay their lawyer fees. And it could be crazy. And I don't want to go down a rabbit hole here too much, but what would you do to protect yourself? Yeah, that's a crazy thing is I've been there, done that.
Starting point is 00:26:19 And what I mean by that is I've been sued already, and I was like super young in my career and journey in California. I was like right when the pandemic started. So I was like the pandemic and then a bunch of other issues and then a huge lawsuit that I was set up for turns out at the end like someone came in and it was a lawyer that was looking at the business. Kind of like the people that come and slip in your business and the lawyer wins. Yeah. So it was like something very similar to that.
Starting point is 00:26:53 But when it all unraveled, it turned out to be a setup. So one, it was like very scary and it gave me PTSD. But you learn from your mistakes. I didn't think that I made a mistake, but you become very cautious. What do I do to protect myself from situations like that? Pray? No, it's hard. It's very hard in California.
Starting point is 00:27:19 Like you said, if you're a great operator and you're a great businessman, you got to be, you know, super focused and super clean and transparent to be able to grow in California because you got that pressure of the public and all other, you know, liabilities that you could come across. But OSHA, EPA and lawyers and this and that. So that's that's a tough one. If you could do it over again, would you have chosen California? Minus the family, take the family, take the relationships out of it. Crazy thing is my family moved from Vegas to California to be with me. So I'm the one that dragged them there. Would I do it all over again? Yeah. I mean't I don't think I regret anything I think the opportunity exists the opportunity that exists in California I don't think can be duplicated really anywhere else supersedes the some of the yeah but you got you you definitely got to be
Starting point is 00:28:16 careful you got to be a superstar I think to grow and you know that kind of state and that kind of city especially LA because and you just don't know what you don't know is around the corner right feels like there's a lot of opportunities for people to come after you when you start making a name for yourself oh yeah especially in california oh yeah yeah the bigger the company here's the problem is you know we're in 20 states and when you go into california even if you got a separate llc you got these layers of protection, they can come after the mothership. And so is it used for the squeeze from almost everybody I've heard? Now, it's interesting because in HVAC, you know,
Starting point is 00:28:54 they're doing this man-made weather where they're, I don't know how they're doing it, but you've heard about it. The cloud seeding. The cloud seeding. Yeah. And, you know, Ishmael's calling me, and a lot of people are like, holy shit, the season's just shortened up, and it's working. Oh, yeah.
Starting point is 00:29:07 Like, there was a drought. Now it's raining all the time. Now the water's filled up everywhere. Like, so it's working. Yeah. But now it's shortening the season for HVAC, guys. It's kind of crazy because I was sitting there talking to Adam Coffey, and he's like, told me about a, bought a $300 million deal for a movie theater.
Starting point is 00:29:26 COVID hit, deal got torn up, guy went bankrupt. But this kind of stuff, like cloud seeding, you just never know what's going to come in and change your business. Literally before I flew here, it was raining in Burbank.
Starting point is 00:29:43 It's still raining in California. Yeah, no, this last year has been ridiculous in weather. I mean, it's a good thing for us. I don't know about HVAC. Well, yeah, think about that. The rain, that's cloud seeding, is helping your business dramatically. Yeah, yeah, yeah, definitely. Wow, that's interesting.
Starting point is 00:30:00 I never thought about the other effect of that in restoration. Yeah. So you've been through quite a journey here. How do you, you know, I want to talk a little bit about leadership because, you know, I went to your Christmas party. And these people would die for you. You'd die for them. I mean, it's such a family-oriented company. I think your mom does your books.
Starting point is 00:30:20 And, you know, dad's involved, brother's involved, the whole family's involved, your wife's involved. It just seems like how did you build that? What were some of the steps you took? Because I think a lot of people say we have a family-oriented business, but yours feels different. Yeah, I think one of the most important things that kind of set that off is just my family in general, like how we are together. We have a very, you know, we're, we're very tight knit, but at the same time, we understand business,
Starting point is 00:30:52 right? So we understand like when we could be a family and when we should be, you know, operators and professional and businessmen. So I think just having that understanding and, you know, when it clicks in family, it clicks, usually it doesn't understanding and, you know, when it clicks in family, it clicks, usually it doesn't, but you know, in our, in our family, it does and it works. And that got kind of passed on to every other person that came into the business because, you know, when, when these people get, and when I say these people are our team, when they feel that, hey, his mom's here, his brother's here, dad's here, wife's here, stuff like that. And they get close to your family. Once you have a friend in the business, it's really hard not to love the business.
Starting point is 00:31:37 But once that friend becomes family, you're there for life right and whatever I do for my immediate family I do for my business family my work family and everybody feels that and they enjoy it and really there are some times where I'm like guys you get you guys need to go home you know what I mean like where I gotta go home I got a family too you guys got a family like we gotta go home we got work-life balance guys and those are the things that really make me happy though, because, you know, everybody asks like, and I'm sure in your business too, like, how'd you do it? Or like, how'd you get here? And the answer is always, you know, it's always easier when you have a really good team and people that care.
Starting point is 00:32:27 Yeah, at the end of the day, it's about caring. The people in our business truly care about what the hell is going on in the business. You get what you put out. If you put out the care, it comes back full circle. 100%. What's the best top techniques you use to recruit good people? Surprisingly, I haven't had a recruitment problem or people problems because I think the best technique is when you take care of your people and if they're good people and you want to keep them around, they always end up referring better people or as good people as they are.
Starting point is 00:33:01 And I think I've used that throughout even COVID. Right now, though, you know, since we're trying to hire more C-suite and trying to hire higher and bigger executives, the number one thing that I'm still figuring out is like, you know, as I had like three interviews with some higher level executive people this week, and you still need to go back to the basics like they could do all of those uh charts and kpis and this and that but i've always figured that if they don't fit our culture then it's a no-go from the because it always ends up in a bad way like that's the number one thing you need to be able to be cool with them you need to be able to be able to sit at a dinner table and talk to them like you want to you want to be able to be cool with them you need to be able to be able to sit at a dinner table and
Starting point is 00:33:45 talk to them you want to you want to be able to hang out with them right yeah and and if honestly i keep it simple i want to be like as transparent as humane as possible with these people so um i don't think there's a secret a lot of the thing A lot of the things that we do in our business, like how you're saying that's made us successful, is making sure the culture is there and the family atmosphere, the relationships are the most important thing to us. I know that you hired a high-level marketing person recently. Yeah. That's a big deal. One of the things that Levi always taught me is know your financials and keep marketing as close to you as possible as the leader, as the founder, as the CEO. That's a big, big, it's always been so hard for me because I'm like, I mean, marketing is the only thing that reports right up to me. It skips everybody else. So tell me a little bit about that.
Starting point is 00:34:48 Yeah. And I think I'm exactly the same way. And, you know, I truly believe in what, you know, you just said Al says, because like financials, my mom was the CPA of the state of Nevada. So she really helps me out there when, you know, on spending, budgeting, stuff like that. So, so that's one of the things that i like to keep close to me too and fully understand the second thing like how you said is marketing i truly love marketing because that's that's what the business is about that's what the that's what the public is going to understand about our business that's how we showcase our values and culture and everything that's happening inside
Starting point is 00:35:25 the business. But we're trying to take it to the next level now. You know, I've been screwed so many times with pay-per-click companies and agencies and this and that. And, you know, I feel like we're at a point where a lot of, a lot of shit's coming up and it's floating now and people are seeing what's going on. And, uh also happy that I made those mistakes and I spent that money and had those experiences because now I know truly what to look for and what I need for the business. But yeah, we hired an in-house pay-per-click guy. He's a genius.
Starting point is 00:36:00 We're building out something very detailed and things that you know that you would you you would truly want that for your business but the reason why you didn't get it is because you yourself didn't know uh you know when you were being taken advantage of what you actually needed and how things need to be they just slapped on a dollar amount monthly and then they said here's one one or two or three campaigns. Hopefully it works. And you see a little bit of movement, and you're like, oh, my God, this is the best agency ever. And then they're on autopilot three months.
Starting point is 00:36:35 Autopilot. So tell me, so how are the results? We actually, what we're doing is building out, we're building out a campaign for every single city. Yep. And we're setting a budget for every single city. So the amount of campaigns we have, and this is a different technique. I'm not a professional marketer, and I don't claim to be,
Starting point is 00:37:02 but the amount of detail that's going into this is ridiculous. We're just starting out. So with the in-house pay-per-click stuff. So it's been about two weeks. And honestly, like the results are night and day. And now it's like verified that we were getting screwed over all this time. So you're seeing the phone calls. Oh, yeah.
Starting point is 00:37:27 The money's coming in. Just two weeks. Yeah, and I think it comes down to the way Google wants things done is in an organized fashion. Right. So if you're able to set up a solid foundation and set up, you have a room and you have a bunch of in it but you're able to set up buckets and organize them nicely right so that you could say okay this goes in this bucket this goes in that bucket and really set up your foundation in a very organized way then you're gonna you're also able to when when you start want to spend more money you're able
Starting point is 00:38:02 to either create more buckets or you know where you want to put that money. And when I say buckets, we're talking about certain cities and campaigns and ad groups and stuff like that that go into there. But I think it's doing the hard work in the beginning and then seeing exactly what's working and what's not and spending their money correctly. And instead of just like, you know, we even cut our CPA.
Starting point is 00:38:30 Yeah, cost per acquisition. CPA down by 50% from the last agency. 50%. And that's not the end goal. We're going to go even deeper. So, I've always said, and it's true at a1 we we drive 25 000 leads a month the pbc is usually the most expensive because it's the one thing that you could throttle on and out yeah right it's the one thing you say i need more leads within a drop of a bucket you can get
Starting point is 00:39:01 more leads yeah you can't just do anything else with that type of precision as quick so a drop of a bucket, you can get more leads. You can't just do anything else with that type of precision. It's quick. So a lot of people rely on that. That's why when we were talking, I said we've got to make sure we're getting lots of great reviews. Got to optimize the Google My Business page. It's got to get the LSA dialed in. And we've got to make sure that there's other avenues. But if you guys could get what do you think what's acceptable
Starting point is 00:39:27 tolerance to pay for a lead that's a good lead i mean it's gonna it's gonna differ on the in the area yeah i mean our well are you talking about when it comes to digital digital marketing yeah so what would you say what would you say for pay-per-click? What would be... So our CPA right now is at $145. Is that cost per liter or cost per acquisition? Cost per acquisition.
Starting point is 00:39:55 So you're actually booking the call. Yeah. And you're doing the work. Yeah. Oh, that's good. Which is... It's pretty darn good. Really good.
Starting point is 00:40:03 I mean, considering the average ticket, it's pretty high. Yeah, and we're not going after the things that just generate volume, like mold and stuff like that, because mold's not necessarily, like I said, covered by insurance companies and stuff. So especially with California, house prices rising, cost of living rising, inflation.
Starting point is 00:40:25 Most people don't have money to just throw out 30, 40, $50,000, $100,000 to restore their homes. So we want to get in front of people that, you know, have a problem, need a solution, provide them with options and or have intent behind their search. Right. And that's one of the most important things for us. And this last two weeks, we've been doing well, I would say.
Starting point is 00:40:54 You know, there's an interesting book that I talk a lot about, They Ask, You Answer by Marcus Sheridan. And he just explains how much money he made on the organic side of things about answering people's questions and sending a buyer's guide. And just one of the biggest focuses we have for A1 is we're the highest domain authority in the home service industry. So I'm going, I don't want to compete on pay-per-click, LSA, and GMB anymore. I want to be more of that discovery search. Yeah. Like a lot of people do research before they buy. Yeah. I want to be the number one discovery search yeah like a lot of people do research
Starting point is 00:41:25 before they buy yeah i want to be the number one on all those q a drop downs i want to own that yeah i talked to a lady yesterday so i got this company called fox terra that's doing my landscaping at the pv house and i got referred to them by like five people yeah and i'm talking to the guy that owns the company he's like i'm taking this property on myself he's like we're gonna make a statement and i'm like hell yeah he's a big company too and i'm talking to him and brie's on the phone with me she goes oh my god she goes i'm on pinterest and every single one of these are foxtera and i go dude you got to tell me who does your pinterest he's, the girl's awesome.
Starting point is 00:42:05 She lives in Miami. She's from Milwaukee. So I talked to her yesterday, and I'm like, you're hired. She's like, well, I haven't given you a price. I'm like, I know what your price is. You're going to do my stuff. She's like, well, I drive 22,000 people a month to Fox Terra through Pinterest. And it's so funny because, like, you were at Vertical Track.
Starting point is 00:42:28 Here we are today. I think a lot of people, they stay in this closed bubble. And the clue was right there. Like, I just took advantage of it. And this is what happens with guys like me and you. Like, you talk to Tom Howard. You talk to me. Like, we just go ask for help.
Starting point is 00:42:41 You push service type. And no, like, we just don't accept no for an answer and we figure out a way yeah the problem is with you i think and i've dealt with this too is you're a one-man army you've got a lot on your shoulders if you didn't show up for a couple months i mean don't get me wrong you got a great team but you're the smart i say that you're the most knowledgeable of the subject matter they know you don't want to disrespect your co-workers yeah but you're the guy that kind of knows how it all runs and how it all comes together so how do you deal with because I think a lot of people
Starting point is 00:43:13 listening are probably like man I'm the guy that kind of knows too so what what are like number one I think what you're learning is I gotta build a c-suite yeah I got to have pros. And I'm going to have to spend a little bit, so take two steps back and take 10 steps forward. So what are you going through right now? Yeah, I think that's something that I've always known. But just I think last year is when I truly realized, and then I heard you say it too. I was like, you know what that that is
Starting point is 00:43:46 true i've always liked the pressure i've always liked you thrive under pressure leading and that's you know to be honest i'm a procrastinator right right so like but but when you turn up the pressure i'll get so many things done in last second at a such a high quality like that's just how i operate but so right now i'm trying to i'm trying to think a little bit differently and uh i've never been afraid to ask for help that's not a that's not a problem that i've ever had and i've never uh had like a listening problem so that's so those aren't and i've never had an ego problem so it's none of it's none of those because usually when people want to lead and do everything, they have one of those problems.
Starting point is 00:44:29 But I've never had any of those problems. I think I just had to be in the situation that I've been in these last four years. But now I don't. And I have people in place that gives me some time to alleviate some pressure so that I can start thinking in a different way. Being a visionary. Exactly. To set up and go on the search for good and better people to add to the team
Starting point is 00:44:58 to take us to the 2.0 version that we're trying to build. And I think by the end of this year, that's definitely going to be a thing. Everything's going to be documented and we're going to have, you know, different opinions that I definitely want to listen to and my team wants to listen to. And there's going to be a lot of people that actually get promoted too, because these people have been with me from day one and they're also there for a reason and they're able to think in a different way and adapt. And there are people that are able to adapt. As long as they're growing. As long as they're also there for a reason and they're able to think in a different way and adapt and they're people that are able to adapt.
Starting point is 00:45:27 As long as they're growing. As long as they're growing. You know, nothing in my life, and just remember this word, that there's no tenure. It's earned. And that means you're a... Leadership is a whole different role.
Starting point is 00:45:41 The ability to build a team around you. Yeah. And I don't want to let somebody, hey, you've worked your ass off. You're you're here now. No, you're going to continue to accelerate your personal growth because a lot of people, it's not anointed. It's literally earned. And you're going to have to, Al always says like, this is what you've earned. Now you got to keep it. Hey guys, I hope you're really enjoying this podcast. I wanted to let you know if you're thinking about joining us in September at the Freedom Event, I've got some good news and some bad news for you. First, I'll start with the bad news. The super early bird tickets are gone.
Starting point is 00:46:18 This means that the $800 off the Elite and VIP tickets are not available anymore, and the general admission price has gone up a little bit too. The good news is you can still get $400 off the Elite or VIP tickets or a 10% discount on your general admission ticket. Plus, we're still giving away a few special bonuses. But this is only going to be available until August 5th. So listen, if Freedom 23 was amazing, this year we're going to be taking this event, and I mean taking it to the next level. Jocko Willick, the Navy SEAL who wrote the book Extreme Ownership, has already confirmed as one of our keynote speakers, and there's still a lot more to come. So go to freedomevent.com
Starting point is 00:46:57 and get your tickets today. We will not disappoint. This is going to be an event of the lifetime. That's freedom event.com. Take a pen or put it in your phone. Freedom event.com. Just make sure you do it before prices go up on August 5th. Now let's get back to today's episode. Like I love the teachers that say, I'm giving you an A for your first test. It's up to you to blow your A. I've given you guys your first test as an A.
Starting point is 00:47:27 Now you just got to keep it. And I think there's a lot of people that don't step up to that challenge. And you got to be willing to be the asshole. And that's going to be tough for you. I don't think so because I've actually been that guy from the gate. The reason why I say that I truly believe in exactly what you're saying. And I also believe time doesn't mean shit. Whether it's a little bit of time or a lot of time. Mediocre.
Starting point is 00:47:50 Well, so. Meritocracy is what I was thinking. Yeah. So merit. Yeah. So what I believe is if you're putting in the work and you're able to adapt and you're able to grow and you're willing to learn and you're hungry for knowledge. I don't care if you've been in the company for one month, right? We don't pay based off of the amount of time you've spent with us
Starting point is 00:48:09 or around us or the company. We pay based off of performance. So there's been a lot of people that I've interviewed and I already knew like in a month or two, this guy is going to be at a completely different place, but he didn't, right? Or she didn't. But I'm not like a firm believer.
Starting point is 00:48:26 I don't believe in it at all in regards to like, hey, you've been with the company for five years, and it's time for a raise or a different position. And I'm super vocal about that, and my people know. But in regards to the C-suite, it's a different mentality. It's going to be a different journey, and I'm truly enjoying it. It is going to be fun when you can look at stuff, and you're going to be like, hey, give me this role, FP&A.
Starting point is 00:48:58 That role, I think, for you is going to blow your mind, financial planning and analysis. When you meet this person, if you get the right one, you'll be like, explain to me what's going on here. And they'll just go into all the trends. They'll break it all out. And we've got three full-time FP&A people. That's how.
Starting point is 00:49:19 And every time we get these reports to where they're automated, we're like, dig into this. Look at this. Like right now we just figured out right now Service Titan will send a confirmation text 48 hours in advance. Out of the 40%
Starting point is 00:49:34 that are confirming it out of the calendar, 7% of those are canceling. Which means somebody got here quicker. You know, going through the reasons. That's a pretty big win. Because if the other 60%, you'd be probably 15% to 17% of cancellation rate. Wow.
Starting point is 00:49:53 That's kind of alarming. And a lot of that has to do with capacity planning, which most companies. Hardest part about home service is capacity planning. Do I need guys? Do I need leads? Do I need both? What's going on with this? You know, what are the hours?
Starting point is 00:50:03 Why is Monday more busy? You're looking at all these things. What do we do with Memorial Day? What do we do with this? What do we do with that? And so capacity planning is difficult, but when you can look into an issue and say, there's a pile of money sitting here, we'll figure it out. I love finding those things. It's kind of heartbreaking to most people like, dude, you're not going to believe this. We're losing 7%. I'm like, go hell yeah i go so you mean when we solve this we're gonna get you know hopefully five percent of that back yeah people are like why are you excited whenever we find a problem like why do you like get excited i'm like because we just found a
Starting point is 00:50:36 pot of gold yeah yeah i'm like there was no problems we'd be kind of capped out let's keep finding issues yeah and my mentality has always been good job yeah thank you for finding this because i don't want to be that guy that's like devastated with somebody oh my gosh how can we let this happen how come nobody knew about it yeah like or the or the other guy that's like oh no there's no problem and my business is perfect and this and that right oh there's a lot of people and then they end up probably firing the high level person or whatever because they're just bringing up shit. And now there's chaos in their business. All the time.
Starting point is 00:51:08 And they go. But one day, Adam, this is years ago. I kept telling him and we weren't ready for this yet. He goes, there's home warranty companies aren't working out. I go, that's bullshit, dude. I ran those calls for eight years. My average ticket on a home warranty call was home warranty 200. The client paid 500. And he's like, yeah, but Tommy, here's the report. He hands it to me. He goes, that's 40% of our problems is 3% of our revenue. And I'm like, all all right turn it off no more home warranties at the time yeah so when
Starting point is 00:51:48 you come to me with empirical evidence and proof and or like you've done the work it's very easy for me to me to make a decision but when you say i feel or i think yeah or this might be what's going on it's like no i don't believe you so people have learned to deal with facts with me yeah and they bring me the data and then i make the decision it's the best way to go about it well they're getting the right cfo i mean you've got your mom helping but i never had a strong person behind me that and now now that we're in 40 markets i compare markets and go what the heck is going on here why is our cost of goods of goods up here? Why is there a parts up? Well, we ordered from here instead because they could get the doors faster. Well, we're paying 80% more. You've got to run that through us, but we can find that stuff so easily now.
Starting point is 00:52:37 I have a question for you. Yeah. Which level of business did you enjoy most? Or do you enjoy most? I got to tell you, let me go through the phases. At first, I was the worker. And if I didn't have to run eight calls a day, I think I would have enjoyed it more. I just hated letting people down. And I couldn't give people the customer service I wanted to fix the door 100% complete.
Starting point is 00:53:02 So if you would have gave me four calls a day, steady, that would have been a little more enjoyable although I love making friends yeah I loved hey hugging Grandmas and them offering me dinner and just building relationships and talking to the guy that owns the Harley plant Phoenix and yeah like all the different situations are you know back when I was younger than you they'd say you should date my daughter so that was fun but it was really stressful because i was a one-man army it was really cool when i met at my mom and stepdad moved out that was drama but it was super cool because i trusted them the one thing that i don't think people understand is
Starting point is 00:53:36 the trust i think the most important thing i don't care what your experience is how much knowledge you have how great you are if i don't trust you that's no go yeah so i needed somebody i could trust and mom and bill worked their ass off when i met adam he's a different breed i told him you're going to be the bad cop i'm going to be i'm never going to fire anybody again you're going to fire everybody and he was a good bad cop and he accepted that challenge he was my integrator yeah and then you know i met al le. He taught me structure. Then I got kickcharged, and that taught me to get the brand right. But my one really good thing is I've been obsessed with marketing and learning new things. I'd say right now, you know, because we took some chips off the table and because we're working at this whole new level, I'm learning how money works, how they raise capital from limited partners. I went and spoke in New York to 130 of the LPs.
Starting point is 00:54:29 And I got to tell you, now I would say everybody's kind of really sensitive about selling their business. And from now on, everything will be built to sell, and I will sell. And I want a five-year target for everything I touch. And I really enjoyed Dan Miller because Dan Miller came in and he had to move a lot of chips around. He moved a queen and a bishop on the chess table. And he said, this person needs to go. And we're missing HR. We're missing VP of corporate development. He kind of put that structure in. The biggest thing is we found the right cfo and then we got leanne which was the financial planning analysis and then you got these
Starting point is 00:55:12 pe guys that are the brains saying we think you can do better on purchasing well there's another six million to be for that and this doesn't look good because we've had 100 companies in our portfolio, and this is unacceptable. Go talk to this company. And so I'm really enjoying this because it feels like, I mean, I've always made great money, but now it feels like we've got ATM machines in every single room, like money printers.
Starting point is 00:55:41 And it's like I used to think about, man, what if we got to like a million bucks a month of profit and we're going to do over five million bucks of profit this month that's great and then i'm like wait a minute i'm learning all these things i'm like i think i can get to 15 million by this time next year of profit a month when you when you but your brain starts to morph yeah and now what i like is i don't even though i don't have the same fight or flight I used to, I'm working because I want to. You know, before it used to be,
Starting point is 00:56:11 it used to be reactive versus proactive, and now I've become proactive. I just got a driver. Is the pressure the same? Well, they are good at putting pressure on me. They say, like Doug told me the other day, we didn't buy A1. We bought Tommy Mello.
Starting point is 00:56:28 And, you know, and I call him at least every other day, if not every day, and I say, hey, this is what's going on, this and this. And he'll be like, Tommy, here's what to do. I'll be like, are we allowed to fire somebody if they're bad performance? Because our HR team is telling us we need to get five performance improvement plans. He's like, fire them today. And then I'm like, if our guy gets in an accident or somebody hits him, do they got to go get a drug test?
Starting point is 00:56:53 He's like, hell no. So I kind of use them as my moral compass of what needs to happen. Because I'm like, they didn't do anything wrong. Why are we getting rid of a good guy that took a gummy the night before? You know what I mean? Who cares? So, but I'm learning so much. And now with this new skill set, it doesn't matter about the money anymore.
Starting point is 00:57:11 It's who I had to become. In these last few years, I've grown the most. So you take away all the money. It's who I had to become as a man, as a leader, as an entrepreneur. And so I could go in and I feel like I could re... I'm not going to say rebuild it, but what I would say is I've got the metaphorical scars and bruises.
Starting point is 00:57:31 So I'm going to be like, oh, I remember when I did that in 2014. Not going to do that again. And this experience trumps everything. So now is the time. I loved a lot of it, but there are times I really sat back and said, man, I'm not having fun anymore. I'm just going to let things kind of go, and I'm going to go out and learn more.
Starting point is 00:57:49 I'm going to travel, go see shops. I just take my head out of the business, let them do what they do. And those years we kind of just kind of very not a lot of growth. When I'm all in, and now I'm all in, and I'm reaching out for the answers. Like Brian Bailey, you know brian and you know eric vining is i kind of built a team over here that i can lean on them for things that a1 doesn't know and we'll get the answers so it's just interesting because money is a good kpi profitability is a great one to be focused on yeah but some people are like you know you're so greedy why do you
Starting point is 00:58:22 want to make all that money i'm like like, well, if every person, if the average person makes $100,000 in my company, we're actually doing a lot for, like, big businesses do a lot for the community. Oh, yeah. And the way you train them and clean up their credit and to buy things that are nice that they want. I tell everybody now, I don't want you to buy a house. I want you to buy 10 houses. I don't want you to go to Disney World.
Starting point is 00:58:46 I want you to go to Disney World, first class, cut all the lines, and rent the penthouse. Like, do more, want more, get more. Yeah, 100%. The early days were fun figuring it all out and feeling like there were also days where I was taking my personal checkbook out. I remember I would write the check and I'd hand it to Barry because we didn't have enough money in the bank for payroll. And those days were not fun. Those days I do not miss. But I mean that's what built this.
Starting point is 00:59:17 It did. And I'm glad it happened. Patience and not falling down and get back up. I always stay on stage. I'm the biggest failure in the room. Yeah. But people got to understand, like, this took two decades.
Starting point is 00:59:33 I'm not like, Dad didn't wake up and I'm like, ooh, look at me. It all happened. It's like, if everybody knew when a guy died in Denver,
Starting point is 00:59:40 4th of July, he texted me, I'm going to be your top guy. He was working for me for a year three beautiful daughters fireworks went off fell down bumped his head died went straight into a coma died Keegan came into town in 2019 and he looks at all my markets I got every single balance sheet an income statement put out and he starts circling and he looks at me and he goes tommy
Starting point is 01:00:11 you got to close four markets today and i go no no just bad leadership give me like all i need is a little bit of time he goes tommy you're drowning he goes you need to close these today and he goes offer a relocation package for your guys and no more. Cancel all your marketing in these markets. That was a piece of humble pie. Like, that was a taste. Like, I had to close Dallas, Houston, Atlanta, and Tampa in one day. So, like, I mean, and I've got warehouse leases. I've got forklifts at every location. I mean, you talk about, like, dude, I've been through the ringer.
Starting point is 01:00:48 And everybody's like, man, I wish I was like Tommy. I lived in an apartment that I owned 1,000 square foot for four years. I drive the oldest truck. I had a 2012 Nissan Titan with a salvage title. I'm like, I'm not going to get a new truck until every single one of my technicians and installers own a new truck. So I think leaders eat last. And this mentality of servant leadership, and I've made my mistakes. Listen, I'm a work in progress.
Starting point is 01:01:11 I haven't arrived yet. Any day that I tell you I got it all figured out will be the day that I should probably retire because I don't, I never will. But this idea of getting 1% better every week, every month, every year, and just continuing to progress. I'm the best I've ever been, but the worst I'll ever be. Great quote.
Starting point is 01:01:32 So what about you? What has been your, I mean, you're still early. You just had so much success so quickly. Still early. You know, I constantly think about sometimes, you know, how when things are good, you got to expect the worst, right? When things are bad, you got to expect that, you know, things are going to get better. So with that, you know, I, I take things very lightly. I'm not too reactive.
Starting point is 01:01:57 I try to plan and, uh, you know, predict and expect things, right. Uh, especially with how the insurance industry is going, like in California and stuff like that. Is it bad? You know, I feel like it was just a huge marketing technique, a huge, huge way. They put out a, I think they put out a plan. They're like, hey, State Farm is going to pull out of California. This insurance carrier is going to pull out of California. And you know what that did? That made homeowners not want to file claims more. So what does that mean? The insurance company model is they're going to collect your money, promise you that they're going to be there for you when shit hits the fan. And then when you do file a claim, they're going
Starting point is 01:02:38 to delay, deny, deny and defend on the claim. Right. And try to pay you the least amount of money as possible. So what they did is like, hey, our claims are getting ridiculous in California. How do we reduce? How do we lower it? Well, we can't go out there and flat out say, don't file claims. Like, why the hell do you have insurance for, right? So we're just going to pull out and we're going to say, we're not writing for California anymore. What do the insurance agents and the brokerages start saying? Don't file claims. Your premium is going to go up. You're going to lose your policy. Then, you know, there's inflation and policies, premiums and stuff
Starting point is 01:03:16 like that go up. Obviously not like Florida where it's ridiculous there, But it becomes like a movement kind of where it's like homeowners are a little bit more cautious in filing claims. But when you think about it at a large scale, State Farm, even if they reduced their claims by 2%, that's a fucking gigantic number. 3%, 5%, those are ridiculous numbers%. Those are, those are ridiculous numbers. The insurance companies make so much money. Yeah. So, you know, as I'm talking in the, talking to some brokers, some agents and stuff like that, like State Farm and all of these carriers are going to come back at the end of the day. But when they do reenter, you know, I feel like their strategy and their plan is going to be fully executed they're going to have higher premiums and they're going to have
Starting point is 01:04:10 less claims because especially in la especially in california dude it it rains and you see just cars flooded out underneath a bridge you know like all sorts of sorts of cars. So it's a claim-heavy state and city. Yeah, no, you know what's interesting is, you know, Warren Buffett used to work way before it was called GEICO. He worked for the insurance company. Yeah. And what he figured out was there's what's called a float. You know what a float is?
Starting point is 01:04:41 No. The float is when they take your money and then they don't pay out for a long time okay the insurance carrier will take the money yeah and they'll hold on to it for a lot of time well he said what are we doing with this money they don't have that money it's invested they invested the money though the float is where this is why payroll companies make so much money because they'll collect your money on Monday and pay it out on Friday. That's a five-day float. Crazy.
Starting point is 01:05:10 And they make so much money on that float. It's just – especially with money trading and it's safe. He figured out the most safest bets you could make that just made a lot of money on that money. It's other people's money. Yeah. And you've got this money five days every week so you can make money think about that if there's two days you don't have the money you're making money 300 days out of the year on that money and right now goldman sachs is paying
Starting point is 01:05:33 5.5 percent in the savings account alone yeah so that it's like checking and savings it's crazy i i'm actually loving what i'm learning hanging hanging out with the people, the lawyers I'm talking to, the accounts I'm talking to, the tax advisors I'm talking to. It's like never again am I using my own money because Goldman Sachs gave me this huge money line that I can write off all the interest. It's pretty freaking sweet because it's a low interest. Then I write off. It's a low interest, like 4%. Then I can write off that interest as. It's pretty freaking sweet because it's a low interest. Then I write off. It's a low interest, like 4%. Then I can write off that interest as long as it's an investment. Yeah.
Starting point is 01:06:10 It's just cool what happens when I'm learning these things. Because like I told you, I started working with Dan Martell. Buy back your time. Somewhere here on the shelf right there. And he's like, Tommy, he's like, wait two minutes. He's like, lety he's like wait two minutes he's like just just let's just talk here for two minutes and he's like watch what ends up on my desk in two minutes and then there was this green this his assistant slides this green uh like blended drink like vegetable drink yeah and he's like i just bought a house i've never seen he goes tommy when you learn to buy back your time in this new way so i can't wait to talk to him
Starting point is 01:06:54 next because now i got the driver the chef the freaking second mate made and i'm not bragging about that stuff because now i'm getting an extra hour a day of work and focus time it's like so and now i'm getting really healthy because my chef i'm like low carb uh 210 grams of protein a day of work and focus time it's like so and now i'm getting really healthy because my chef from my low carb uh 210 grams of protein a day blah blah blah and here's the funny thing what i've heard is a lot of my buddies have said i'll give away all my cars i'll move that back to a normal house you're never going to take away my chef that's how crazy it is because you can eat healthy it's delicious i mean he makes these brownies that he made me and brie this was before we really started dieting like big time but he's
Starting point is 01:07:30 like it's healthy for you and it was it was good and so i i'm just learning a lot right now and i'm learning like when i meet somebody i'm like this is how they kept their wealth this is the things they've done and you get to focus so much more on the things that matter and that's what i love is like i paid down a lot of money but he's got me back tenfold and i'm the first one to buy like i want to be bought from you know what i mean and so many people like even this house remodel i'm like i want you to be in the interior designer and she makes 20 on all the furniture what i'm like this lady's making so you to be the interior designer. And she makes 20% on all the furniture. What?
Starting point is 01:08:07 I'm like, this lady's making a fortune. So you bought the house. Then now you bought the house. Next door. Next door. And now it's. It's in the midst of a remodel that I'm trying to buy. How long is it going to take? Until the end of this next December.
Starting point is 01:08:19 So 18 months. But it's going to be more of a compound. But the reason I bought the house is not because, hey, look at look at this house yeah it's my dad comes over all the time my mom comes over brie's family's coming into town this weekend like my cousins the golf trips like the memories that that house will bring will far exceed any monetary thing i could ever have in my life and i think you get that too yeah yeah it's it's all about it's all about experiences right it's all about experiences exceed any monetary thing I could ever have in my life. And I think you get that too. Yeah. Yeah. It's all about, it's all about experiences,
Starting point is 01:08:47 right? It's all about experiences with the right people. That's one thing is what I want to be known in my life is that if I shake your hand, it's like, I just never want to do something shady. Like there's an opportunity right now of something I can get involved in. And I got a buddy that does something similar. And the fact that I even know that he does it makes me not want to do it.
Starting point is 01:09:07 It's not like there's not enough room for the both of us, but it's just like, now I just, I never want to be able to look at myself and not say that I just, yeah, there's money there. But I said, the one thing I want people to know is like,
Starting point is 01:09:19 I don't take those. I just, I'm a man of my word, you know? And I think that's something to be said yeah i feel like at the the end of the day money isn't what drives any really any individual that has a big heart and you know has built something big because you can't build anything to this scale without being a good person and being a genuine person because it would take so much effort for you to fake things
Starting point is 01:09:46 and be fake around people compared to just truly being a good person you don't even have to do much you just need to walk in a room and say you know hey here i am myself and it just you don't need to fake it yeah people feel like it's all about energy right it is the vibrations the energy you know there's a lot of people in the home service space that there's whispering going on in every room about them and i just hope when there's whispers being said about me it's like what's he doing now like i wonder what he's up to it's not like oh that dude he's always trying to do something he's off to his next thing trying to get like a get rich quick hustle yeah it's like he's all in whatever he does and he always shows up and at the end of the day i don't care what a
Starting point is 01:10:31 lot of the people think but the people that i know and care about i want them to say nice things because i say nice things you ever get in a room with people and i think women do this a lot i think it's just there's like a gene in their body that just get women that just they're like oh yeah he never wants to get up or like it's like and I hope Breeze told me she was in these situations quite a bit and she becomes a fest like you ever see the girl in bed with her eyes open like I wonder what he's thinking about yeah it's like he's thinking about like those memes yeah yeah but but it's like true it's like i get with my buddies and we're like we don't even talk about what we don't like we don't but there are people in the home service space that it gets together and it's just a constant
Starting point is 01:11:15 fest yeah you know those people yeah i i've heard of those people i haven't uh tried to stay away from anyone that i don't like i'm not a people i'm not a people person not really an extrovert i to be honest when i even interview people or when i'm like talking to people i straight up tell them like i hate people the only people that i like are my is my family my work family and some friends yeah outside of that time is way too valuable to be spent around people that you do not enjoy like you know those forced relationships yeah it's the most to me it's the most disgusting thing ever so well that what yeah what joe polish says it's got to be elf easy lucrative and fun yeah because if it's not, there's not enough time on this planet.
Starting point is 01:12:05 You know why dogs are so cool and so fun? I read something about this. They've got their lifespan is one-eighth, one-seventh, one-eighth of ours. So they've got to make the most living it up. They're smelling shit. They're out there chasing birds. They're smiling. They're running.
Starting point is 01:12:23 They're licking. They're loving. You remember that old Disney movie, All Dogs Go to Heaven? Yeah, yeah, yeah. they're out there chasing birds they're smiling they're running they're licking their love like you remember that old uh disney movie all dogs go to heaven yeah yeah like i i believe i do believe there's some bad dogs but there's this lady i met at joe paul's thing and she got raped when she was eight years old by four guys orally like crazy bad story her name's marilyn murray and she went on in life to become this uber successful the first art gallery of scottsdale but she was taking eight painkillers a day to numb the pain she had kids but she wasn't all aware then her friend came to her said you need help we're gonna get you a psychologist went there for three days and i'm staying for six
Starting point is 01:13:01 months what she ended up doing in her life was she went to these prisons all male rapists and she told the security guys to leave and by the end they'd all she's so of course what did we all ask how could you be around these people at the time there's four things that i've noticed with every single person that ends up like this something happened in their childhood and here's the four things how close was the person that did this to you yeah and not all it's not always physical but how if it was physical how physical like was it like like bad like blood yeah number three is how often did it happen and And the fourth one was what was your age? Because the younger, the more... And some of these people
Starting point is 01:13:50 have never even been hugged by a woman. And so she'd hold them and she'd say, I view them for who they were when they were just these little innocent little kids. And I know this is really off topic, but I'm like, man, they were never loved. And it doesn't make it okay for what
Starting point is 01:14:07 they did but usually it's a cycle usually it's it's kind of like it happens cause and effect and so now when i look at people i i just kind of wonder like something happened to them and i had a story i was just talking to a buddy of mine and he i was telling him the story and he opened up to me about what happened to him when he was a kid he goes no one ever told i have never told anybody this well this is embarrassing and it was his uh his mom's husband did some stupid stuff and it was like man you just never know just remember that and everybody listening you just never know what somebody's been through and me and my sister went to this place this weekend last weekend with uh in tucson called merivale and we talked to a psychologist and my sister just has a whole different she's six years older different
Starting point is 01:14:56 interpretation of what i had when i was a kid and he goes so i had a one-on-one with him he goes so what about you and i go man my life was hunky-dory compared to most people like sure mom worked three jobs dad wasn't around every he's still around but not as much i go everything happened for a purpose there were times i felt alone but like hindsight everything happened for a reason i i'm not holding on to any baggage i could probably do i you know some type of drug or shroom out or you could probably pull some stuff out but i'm like overall i've forgiven everything and i never had that bad bad stuff happen i mean the dog died and the shit hit my grandma passed away but overall life we all go through some type of
Starting point is 01:15:37 agony and some trauma it's how we deal with it and do we release it and as he was talking he was explaining to us how to kind of release it and how to say, so this is going to sound really weird, but I want you to think of your favorite color, just a color. And I want you to – Giuseppe's loving this shit because he's all spiritual. I want you to think of this, and I want you to breathe that color. If you close your eyes, you breathe it in. Let it enter through your body
Starting point is 01:16:05 let it water flow in let it heal and just let the color pour in and like different colors mean different things and i'm like this is so foo-foo crap but when i did it i was like wow and he's telling me story after story they got all this clinical evidence like how people like released it they quit drinking they they all their pain went away. And it's just nuts because a lot of the stuff, a lot of the pain, unless you just got hurt doing something, is actually, it's stress and anxiety. And it's something that happened in your past that you haven't let go of. Yeah. There's this also, there's a saying, everybody stood around the table, everybody in the world,
Starting point is 01:16:45 it was a huge table, everybody stood around the circle table. And you took all of your problems, and you put it on a card. And then everybody at the same time, put it down on the table, guaranteed you'd pick yours back up. Because every like, you never know, you know know what people are going through and what problems they have in their life. But I've also figured out that you're the only person that can solve your problems. 100%. You can't control anybody else. A lot of people go into relationships thinking they're going to change people. And I just know one thing.
Starting point is 01:17:19 When I look at this and I say this with the utmost honesty, I've never been better. I've never been better. I've never been happier. I mean, there's more options. I've just, I've got more energy. I'm more optimistic. I've never been closer to Jesus Christ. Everything's going well. And like you said, I think it's got room to grow, but I'm not waiting for the, I'm not waiting.
Starting point is 01:17:43 Listen, people are going to die. Unfortunately. Yeah. I hope my parents die before me because no one should have to bury their own kids. And, you know, I don't want them to ever die. Don't take that the wrong way. Yeah. But I would never, I want kids in my future. And, you know, I don't have kids, so it's hard for me to imagine if you lost.
Starting point is 01:18:07 Yeah. Can you imagine? I have a one-year-old now, and I think that would... I can't imagine. I don't want to imagine. It's just a sick feeling. That's crazy.
Starting point is 01:18:20 I'm going to be... I don't know. I really... I think I was put on this, in this planet to be a dad. So we've got to make that happen here before I get too old. I think all, I think all men are put on this planet to become a dad. But, you know, just becoming a dad isn't a, isn't a huge accomplishment. No, no, no. You got to, you got to, like, like just like just like business right the crazy
Starting point is 01:18:46 thing is you know how i know you're you'll be a great dad or a great father is because you're a great leader and you're a great businessman because when you when you have a son or when you have a child or whatever right the same concepts and business and leading your team and stuff like that apply. If you could apply it in that way, apply to having a family. At the end of the day, it's all of the same things, right? Good communication, transparency, loyalty, genuine love, right? And when you go through that, you'll see what I'm talking about. The main thing for me, and this is something that I think a lot of people that know me worry about, is you love business so much.
Starting point is 01:19:32 But I think the first time I see my little boy or my little girl and look them in the eyes is when you kind of put this on the... You know, I said with Cristiano's group, anyway, one of the godfathers of home service was there. And they're like, what are your biggest regrets? And Leland Smith and Ken Goodrich and all these guys are going through Paul Kelly, their regrets, their regrets. And this individual goes up and he goes, no regrets. He goes, yeah, I could have make it to some of the ballgames but now all of my grandchildren have a full scholarship in
Starting point is 01:20:11 a house waiting for them yeah I couldn't have made it to everything but we could have not done this I lived in a small house I could have been there every day but we wouldn't have food on the table. Like you can't have both. You could have balance. But what I learned from Andy Elliott is when you're at home, be at home. When you're at work, be at work. Go all in on everything, but don't worry about work when you're at home and don't worry about your family when you're at work. And I think that that's harder to do.
Starting point is 01:20:41 But the question is I love work so much, but I think I could love family just as much as I love work. And I'm working hard now, and I've worked hard because I've listened to my mom and dad argue about bills. I stood on the toilet with my ear, and I'm just like, it tore their relationship to shred it. And that'll never happen. And I said, that's never going to happen. So I dedicated my life to making sure I was financially stable enough to have kids. Otherwise, I could have had kids several times. I mean, there were some girls that I was deeply in love with.
Starting point is 01:21:11 But it was just I decided I'm not where I need to be. And now I'm where I need to be. Yeah, and I think there's a huge difference between good and great. So you got the money part checked off. The finances checked off but the craziest thing is like honestly i don't have a money problem but the best time that i spend with my family is literally like i bought my kid a tube air tube thing and throws the it's like a suction thing so he throws the ball in there and just goes flying everywhere like laying on the
Starting point is 01:21:44 floor and he's like laying on the floor and he's like on top of me and we're just playing and it's just literally time like i bought a bike with a trailer behind it it's an electric bike and we just go riding it in the community like it doesn't matter how tired i am when i come home from work i immediately just get a refresh like a hundred percent energy found energy and it's i wouldn't i wouldn't change it for anything and i love just get a refresh, like 100% energy. This newfound energy. And I wouldn't change it for anything. And I love being competitive. I love business.
Starting point is 01:22:13 But I think that's what differentiates good and great fathers is when you're able to do exactly what you just said. When you're at home, do home things. When you're at work, do work things. And that's why when I go back to my childhood, I'm like, my dad came to America from Armenia with a thousand bucks in his pocket when he was like 21 years old. He didn't speak English. He didn't do. And this was only 30 years ago. And he still still he did everything and more for us in regards to financially education being strict my dad was the strictest person i know in my life but at the same time he still showed up to all my hockey games on my soccer games so i'm like what the fuck this guy's
Starting point is 01:22:59 a superhero right so then you realize you're like holy shit he did both worlds right so that that kind of set that uh set a super high standard for me too and i and uh you know now you truly appreciate it you do you realize it you know i will say this my favorite part of the day is going home and i only have two dogs but you know dogs are like they like, they're not even close to kids, but everybody says they're like your kids until you have a kid. And so I come and I give them both hugs. They're two different, they're like not even close. They're just two different personalities, but it's so much fun. And we play fetch and I take them on a walk and they got their unique little personalities.
Starting point is 01:23:40 And then I remember, so the house manager started and he's like, you're not going to have the dog sleep with you. And I like yeah I am I'm like that's for sure and like they each get out of the covers and one sleeps on my head and it's it but I'm sleeping great but I people that see me around the dogs are like dude you're gonna be such a good dad yeah but let's do this let's look I I love what you're. I think Restores is an amazing company. First and foremost, guys, if you're a plumber in Southern California, Arizona, or Las Vegas, and what I love is Edward will pour his heart and soul into you. He'll hire the people you need.
Starting point is 01:24:24 He'll worry about your profit. You should call Edward. You should get a hold of him or you should email him. Edward, how do we get a hold of you? So you could get a hold of me at my email, which is eduardemmismaryatrestorers.com. That's R-E-S-T-O-R-E-R-Z.com. Or honestly, just shoot me a text, 702-513-5557.
Starting point is 01:24:48 Treat every relationship. If I'm going to have a relationship with you, it's not going to be a half-assed relationship. And I'm going to do everything in my power to make sure that, one, you're happy. And in return, I know I will 100% be happy because it's what I feed off of every day. Keeping great people around you, brother.
Starting point is 01:25:07 And what do you think? Do you have a timeline on Phoenix and Vegas? We're trying to get Vegas rolling by the end of the year. Okay. So I think Vegas is a for sure. Love to get Phoenix in by the end of the year too, but I think that's a stretch. Yeah. Yeah, I mean, I think you could probably be Q2 in Phoenix. get phoenix and by the end of the year too but i think that's a stretch yeah yeah i mean i think
Starting point is 01:25:27 you could probably be q2 in phoenix next year yeah um and listen is there one impactful book other than the e-myth in the bible that have uh changed your life yeah there's a few, but I really, really, really, really love The Ultimate Sales Machine. Chet Holmes, yep. But there was a book that you told me about that was really good too, The Blue Ocean Strategy. Yeah, yeah, yeah. That was a good book. That was a good book. Yeah.
Starting point is 01:26:02 And finally, I'll just have you close us out. Any final thoughts? No final thoughts. If you had to inspire somebody, business is a marathon. It's not a track meet. It's a lot of work. What are some inspiring words that somebody should leave this podcast thinking? Because all of us are going through a lot.
Starting point is 01:26:22 We're 5% of the population. No one knows what we go through. The good days aren't as good. The hard days are really hard. Payroll's tough. Leadership's tough. Showing up is tough. Stuff always happens out of the blue, but there's light at the end of the tunnel, I promise. Yeah. Some inspiring words is this. First of all, you know what you need to do at the end of the day, right? It's not rocket science. What we do on a daily basis is not rocket science.
Starting point is 01:26:51 First of all, I need to get healthy. But before, like I'm physically unhealthy and out of shape right now. And this is the most unhealthiest I've ever been. But I'm really strong up here. And I've built that. And I've had to sacrifice like my time that I could spend to build the mental clarity and strong, you know, I'm constantly motivated, like there is not a second of the day that I'm not motivated. But one thing that I could honestly say is like, stop listening to other people and learn and seasons, right? Because a
Starting point is 01:27:24 lot of people just get caught up in this like podcast book, podcast book, learning, learning, and then they don't integrate or apply any of that into their business. So one thing I had to learn was how to actually learn, right? So what I do is like I go on like a month or two learning spree and then I just shut all of that shit off. I don't listen to any podcasts. I don't listen to any books and I'm just like doing doing doing then when I've applied all of those things boom I'm full force like I'm even listening to things in the shower yeah after them everything anywhere any information that I could get so that's that's num the number one thing like always be learning
Starting point is 01:28:01 but always know when to stop to implement. And a lot of people don't know how to do that. Second thing is trust yourself. You've got to be confident in yourself. That internal voice that you have, it's probably right. So just start doing the things that you know you need to do and stop listening to people because most people are fucking losers. I'm sorry, but most people that have their their own opinion are gonna say something about something you just gotta look at them like do they have what you what you want do they have the family do they have the money do
Starting point is 01:28:35 they have what do they have why should you respect enough to listen to them yeah and stop listening to people because most people don't know what they're doing. And the third thing is build relationships, right? Because relationships is what got me here. Relationships is what has gotten me to honesty everywhere. Like relationships is what keeps my family strong. Relationships is what keeps my revenue up. Honestly, relationships is what keeps me happy. So I think at the end of the day, like I said this at our Christmas party, also is like from now on all I care about is relationships. And if I can't serve you and you can't serve me, Joe Polish, you said something, you said what type of relationships?
Starting point is 01:29:20 Health. Easy, lucrative, and fun. Easy, lucrative, and fun. And if I can't have those types of relationships, then honestly I'm not going to spend my time, energy, or money on you. That's it. I love it. You know, the Bible, it literally says if you ignore your conscience, God will take it away from you.
Starting point is 01:29:40 Because what do we do when we know we shouldn't be doing something, but the bad guy wins that little voice becomes quieter and quieter and quieter to where there's no more voice. And that's when things get really bad when you're doing things and you know, you used to know you shouldn't be doing them, but now it's a norm. Yeah. But,
Starting point is 01:29:59 uh, Edward, this was fun, my friend. I appreciate you doing this brother. Thank you. Hey there. Thanks for tuning into the podcast. Edward, this was fun, my friend. I appreciate you doing this, brother. Thank you. The insights in this book are powerful and can be applied to any business or organization. It's a real game changer for anyone looking to build and develop a high-performing team like over here at A1 Garage Door Service. So if you want to learn the secrets that helped me transfer my team from stealing the toilet
Starting point is 01:30:33 paper to a group of 700 plus employees rowing in the same direction, head over to elevateandwin.com forward slash podcast and grab a copy of the book. Thanks again for listening and we'll catch up with you next time on the podcast.

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