The Home Service Expert Podcast - From Humble Beginnings to Business Success with Ismael Valdez

Episode Date: June 16, 2025

In this conversation, Ismael Valdez discusses the significance of profitability, the impact of private equity on the industry, and the necessity of preparation for business growth. The discussion also... touches on leadership, company culture, and the legacy that entrepreneurs leave for future generations. He emphasizes the importance of leading by example in parenting, the necessity of delegation in business, and the value of cultivating a high-performance team. He also touches on the challenges of navigating business growth, the drive for success, and the role of AI in enhancing customer service. Don’t forget to register for Tommy’s event, Freedom 2025! This is the event where Tommy’s billion-dollar network will break down exactly how to accelerate your business and dominate your market in 2025. For more details visit freedomevent.com   00:00 The Journey to Success   03:01 Building a Winning Team   05:58 The Role of Competition in Business   08:54 Learning from Industry Leaders   12:05 The Importance of Profitability   15:01 Navigating Private Equity   17:49 The Impact of Private Equity on the Industry   20:58 Preparing for Business Growth   23:53 Leadership and Company Culture   26:57 Legacy and Future Generations   32:29 Parenting with Purpose   34:08 The Importance of Delegation   36:28 Cultivating a High-Performance Team   39:06 Learning from Mistakes   41:13 Navigating Business Growth   44:47 The Drive for Success   45:25 Market Expansion Strategies   48:20 The Role of AI in Home Services   52:23 Innovations in HVAC Technology  

Transcript
Discussion (0)
Starting point is 00:00:00 I think my rule of thumb is you got to be between 20 to 25 million dollars. You got to have a structured management system inside the operation that's producing profit in order for you to even think about adding a second trade or adding a second third location. It's hard man. 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
Starting point is 00:00:26 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. So I asked the team to take notes for you. Just text notes N-O-T-E-S to 888-526-1299.
Starting point is 00:00:54 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 the $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 to the home service expert today. I got a great friend of mine, Ishmael Valdez, who just really, really smart guy. I would never bet against him. In fact, he called me up and he said,
Starting point is 00:01:31 hey, I'm doing this thermostat stuff. And he asked, you know, we're like it with a group of a lot of guys, Chad, Peter, Miner, and Gainer, Christiano, Hoffman, the list goes on and on. And I was like, dude, I'm in I'm in and then he said all right wire me the money and they showed up the next day and Because I'll never bet against you. I mean you're a lion. Thank you. Thank you. You This smells the founder and CEO of next-gen air conditioning, you know, he's he's traded that but he's still got a lot of money in it He's building an empire called Nuve. It's not only a thermostat, but he's doing a lot of stuff going forward with it. He's forward developing the crap out of it. It's an amazing, amazing thing he's building and he's helping out a
Starting point is 00:02:12 lot of home service companies. So why don't we just start with, I know your story, but it's an up and coming story of how you started the business. You used to work in, well, first of all, you came into this country with nothing. Yep, yep. Tell us a little bit about that and then just starting as a sitting in a warehouse selling parts. Did I think we should start right there on Tommy? Look, I was born in Mexico.
Starting point is 00:02:35 And my family's from Michoacan, Mexico. We were born over there, raised over there. I got here when I was six years old. We got smuggled in here at a very young age. My my dad was, you know was a really, really hard worker, just like most of our parents are. And my journey started at Howard Industry, man. My journey started at Howard Industry.
Starting point is 00:02:54 I was there for seven years, which people that don't know what Howard Industry is, it's like a Ferguson's AC Pro. It's a supply house for AC contractors where most of these mom and pop shops would go in there and pick up their material, their equipment, and then they would go out there and install it and make profit off it, hopefully. So I was there for seven years, seven years, Tommy. I built a ton of relationships there. I think that's what gave
Starting point is 00:03:18 me a kickstart into the industry and kind of what got me to accelerate these growths on these companies. My first project was HomeComfortUSA. I know many people think that NextGen was my first project. My first project was HomeComfortUSA. We had 162 employees. We did a little bit over $21 million in revenue in four years. That took me four years to do.
Starting point is 00:03:40 Out of the 161 employees, I think I recruited 150 of them for that operation. You know, a couple years after that, after we were already at 21 mil, Ken, which was the old CEO, not Ken Goodrich, Ken Astar was the CEO. We parted ways just, you know, he had some financial issues and then I started NextGen, man, and you guys know my Nextion story. We had a successful exit in 2022, May 5th of 2022, Tommy, May 5th of 2022. And I- It's crazy. It's been three years. And I don't know if you remember, but on the group message that we have, I sent out, I got my license in 2016 February. So my journey at Nextion was six years and four months when we went
Starting point is 00:04:28 from the day we started to when we sold it for a ton of money. So yeah, you, you're definitely a student and I don't think people understand that. I mean, who have been your best mentors? Dude, I don't, I don't think I have mentors, bro. I think I have more of a more of like competitive brothers. Yeah, no, it's a better explanation. Like most I have mentors, bro. I think I have more of like competitive brothers. Yeah, no, it's a better explanation. Most people have mentors. A lot of people have mentors. I don't think I've ever had a mentor that has sat down with me
Starting point is 00:04:54 and has poured in time with me. Tom Howard. Tom Howard was a competitive mentor, too, competitive partner on it. He came in, obviously, in 2019 when things were going south. And obviously, he helped me a ton but I think what what's driven me to the the heights that I'm in and all the projects that I'm involved with and all the companies that we're trying to try trying to grow is I am super competitive
Starting point is 00:05:17 to a to a level where like I look for brothers and I look for for friends and I look for for companions that are gonna be just as competitive and I think that's why me and you get along so much because you are one freaking comp- people, look let me tell you something. There's one thing people don't know about Tommy because he hides it super good because obviously he's super polished and he's not always been that way. But Tommy is hands down one of the most competitive people in the freaking industry. There is no doubt about it He's not a loudmouth like I am I promise you he's not but dude you drive me nuts man Like I'm trying to keep up with your energy. I'm trying to keep up with obviously like the business side. Yeah, no, it's good, man
Starting point is 00:05:58 That's what we do. We were on a bus right after Pantheon. I feel like this is five years ago Yep, and we were going back and forth you ever gonna sell and you're like, why wouldn't youon. I feel like this is five years ago. And we were going back and forth. You ever going to sell and you're like, why wouldn't you sell? And I'm like, I'm not selling. Then all of a sudden COVID happened. And dude, the multiple went bam, bam, bam, bam. And Tom Howard came out and he's like, dude, I don't know if this is going to stay like this. He's like, this doesn't make sense. Guys are getting 15, 17, 19, 20. And at the time, look, Keegan was one of the best home service companies that went out to best home services. I think he got eight or nine. So I'm thinking in my mind at the time when I was talking to you, maybe we get 10, 12, why? And then it just
Starting point is 00:06:35 goes boom, boom, boom. And like, pigs get slaughtered, hogs get slaughtered, pigs get fat or something like that. So it was like, and it was the best decision I ever made. But you were like, first you're like, I'm never gonna sell, then you're like, I wanna do a deal. Me and you went back and forth and we both, I mean, mine was in 2022 as well. Yep, yep, I remember. And you know, I got, I'm always in the right place
Starting point is 00:06:56 at the right time, and that's probably because I put myself in the right rooms, but you know, you came in one day and I was like, dude, you were like, it looked like a muscle shirt, but it was just that normal shirt. And you're like one day, and I was like dude you were like it looked like a muscle shirt But it was just that normal shirt And you're like yeah, dude get your fat ass in shape, and I was like because I am competitive You are and I go and people don't know that I am son. I was like All right, dude. I went all in and I just started working on
Starting point is 00:07:20 Good job, and I feel so much better, and you're like dude. You're like like, you're better than this. You could do this. And really it sparked a lot for a lot of people. And, um, and I just know like, man, he's busy as hell. He's running around with four daughters and he's still doing it. So you're a great dad and you make the time and, um, you know, you, you were there every day looking at every Yelp review in meetings all the time. Same thing you're doing a new way. Yeah, if I had to give you three things it's competition competitive marketing and Recruiting yeah, and I'd also had one thing is ripping off and duplicating like you are really good at just
Starting point is 00:07:58 You pay attention and you're like I like that and you just own it that's the one thing that business owners need to do a little bit more Tommy is that the smaller mom and pop shops, there is so many freaking things that are accessible to them now between social media, between chat GPT and Gronk and all these AI platforms that can literally spit out a payment plan for you now. There's so many things that these guys could be doing and look, like you said,
Starting point is 00:08:25 I'm not here to reinvent the wheel. I'm not by any means, I'm not smarter than any of those of those contractors out there. I do. If I hear something, if I see something when I was doing shop tours like you, right, we mean you are probably the kings of shop tours. Yeah, I've gone to every year. Early early days showed up in your little hoverboard hoverboard. And I got one. I've gone to every shop. I've been to your early, early days. You showed up in your little hoverboard. And then I got one because I was like, dude, I got a bigger one. Yeah. And I was obsessed with it. Then I'm like, I got to get my steps.
Starting point is 00:08:53 Go everywhere on that thing. Yeah. So dude, that's the one thing I learned when I was doing these shop tours. I would come to your facility. I would come to Leland. I went to all these facilities and all I would do, and this is a huge, a huge, a huge pointer for you guys Okay When you guys go to these shops tour facilities Stop taking a million notes and trying to like implement everything today today today or get all excited and go back to the shop
Starting point is 00:09:15 And be like, okay, where do I start? Everybody in the industry had everybody every shop does one thing really really really good Right like the one thing I could tell you about Tommy's facility they're training from the time they get somebody from the streets to the time they put a level for technician or whatever whatever levels you got Tommy they could grab somebody from the streets making 20 bucks an hour their first year at a one they're gonna make a hundred thousand dollars eighty to a hundred thousand dollars all day long all they have to do is have the hard work ethic yes or Okay, after that they put them on this journey to getting them to making two three four hundred thousand dollars
Starting point is 00:09:51 That to me is the one key strength that you have obviously the second string that I see in your in your operations Your your call center, but back to the thing about the contractors guys when you guys are going out there and doing your your Shop tours and you guys are reaching out to me wondering who you should visit, go to each facility and just enjoy the freaking moment, man. Enjoy the moment that you're spending with Tommy. Enjoy the moment that you're spending with, if you get to go to Aaron Gaynors and Chad Petermans and all these guys, enjoy the moment and take one thing. One thing. Yeah, well, the implementation most people fail at. and I'll tell you this I've started bringing my team with me
Starting point is 00:10:28 We went to Morris Jenkins. We went to any hour that and I told these guys I said by the way before we go in there you guys gonna get super excited I said you realize we're more profitable than all these like literally at the bottom line And I said so let's not change everything Let's decide one of the things we were really impressed by Morris Jenkins is seven days a week till midnight. And the way they got their parts delivered. One of the things that we were super impressed by any hour
Starting point is 00:10:53 is their uniforms and the way they work together. And we took certain things, but they had so much stuff. And I go, guys, do you know what we do really great? Like, let's just be clear on what we do very great. But there's, and then a lot of small companies come in and then they look at this and it's a good dream to have Yeah, but they got to know how to walk before they run and crawl before they walk 100% And so, you know my biggest I say my biggest thing I've done is
Starting point is 00:11:18 I probably look at 10 software as a month and we are the early adopters of the guys the founders I know that actually I could get behind just like you knew they wasn't going to be a great product without a guy running with pushing it and like get sitting through the pain of the weekends and the nights and showing up every day and dealing with the clients. Now you've got this whole new way best practices where if you're a part of the network, you're going to coach them. You're going to get the top entrepreneurs in the home service industry to coach. I just was on a coaching or whatever you call it.
Starting point is 00:11:48 By that mentoring call, by the way, and I don't mean to interrupt you, Tommy, but that mentoring call that you got that you did for our Nubian networks people, blown away. Everybody from that call was was DMing and texting and emailing Elva. Hey, can I get Tommy's information? Hey, thank you for that. Thank you for that. So I appreciate that. That was great. I enjoyed doing that stuff just because Ken Haynes, Ken Goodrich, Leland, Keegan, I could go on and on they open their doors for me you open your doors look Peterman opened his doors there's not a company
Starting point is 00:12:18 around that if I didn't ask this is before I was anybody this is when I first got on a service Titan Tom Howard with his backpack. We're both there. Darius Slivers became a good friend. And I'm like, how many people open their doors for me? And so people are like, well, how do you make money doing this?
Starting point is 00:12:32 I'm like, dude, this is called paying it forward. People did it for me. I would knock, they would answer. And if anybody knocks, I try to help out everybody. It's just what I've learned is it's the 80-20.
Starting point is 00:12:43 20% of them you want to work with because they're actually doing the work. They're putting their head down. They actually take you seriously. And you know, we started Home Service Freedia because I started vertical track and all of a sudden it's filled with plumbers and HVAC and roofers. This is a garage door only. So we started HSF and you know, all we teach people how to do is like book the phone calls protect your Yelp do these simple things get a good brand and Most of them they once they learn they start printing money. Yep. They don't even know how to budget You know you and I I see our weak points HR
Starting point is 00:13:17 Not not the hiring part, but financing what you know like dude I've never read pivot tables, and I wasn't good at reading the financials and making sure we were I was such a visionary I'm like, I don't care if we make profit grow grow grow and then I learned profits important exactly it is and that's later in life That like I've learned because I'm like growth growth growth growth. We could get profit later and worked out for us But usually it doesn't usually people so I got a question for you on that Should people scale their business the top line as fast as they could and then work on the bottom line? Or should you be profitable year over year as a small person, as a small contractor,
Starting point is 00:13:52 and grow 10%, 20%, 30%, whatever the status quo is? I got a rule of thumb. And it depends on how much money you have in the bank. But my rule of thumb is if you're not growing 10% focus on, if you're not profitable at 10%. Now listen, A1 is doing 25%. But if you're not growing 10% focus on, if you're not profitable at 10%. Now listen, A1 is doing 25%. But if you're in a growth mode, when you work out, this is my best analogy,
Starting point is 00:14:11 are you working out to get lean? Are you working out to gain muscle? When you're making out, you want revenue when you're getting muscle. And the best people that work out, and the off season, they're putting on muscle. So I think the deal should be, you need revenue, but you need profit.
Starting point is 00:14:25 Profit is what saves you when you get sued or saves you a car accident or saves you from a slow season. And everybody, they spend everything they got. And then the CPA calls and says, you owe a million dollars. You're like, how's that possible? I don't have any money.
Starting point is 00:14:38 Like this is just normal taxes. We use GAAP accounting, you owe money. I used to get these phone calls and be like, man. And then I learned these private equity guys figured out a way to do both. They could get revenue and profit. But I would say, look, when you're smaller, you're learning revenue is important. I mean, you want growth, but profits would pay the bills, man. I mean, profit. And a lot of people aren't looking at the numbers when they're not profitable. You start cutting certain things. The guys that are not getting reviews, that are getting warranty calls, that aren't showing up for training.
Starting point is 00:15:09 A lot of people that I know, they're so afraid to top grade. And that's probably one of your strong points too. You're able to, you know, keep the good people and let go of the bad people that create the bad culture. They don't leave. They won't leave because they've got equity in the business and they see there's something in the outcome for them. And that's that's something I learned too. You bring up you bring up private equity Tommy. Another question I've gotten. I know a lot of our listeners and I know you're invested in and I'm invested in it too. Is private equity
Starting point is 00:15:38 good or bad for the industry Tommy? This is my best answer is the money will flow into anything making money. There's a lot of baby boomers out there. They need to make money. There's a lot of pension funds. They go into real estate. They go into dental offices. They go into emergency rooms. They will invest in, they'll invest in a candy shop. So to say private equity is a fancy way for investors. Yep, and to say but they're very good at what they do They've created a really good platform where they take 2% of operating and 20% of the net and they raise capital and it's like look You make more money in private equity than you do in the stock market even the S&P 500 But it's locked up for five years But the fact is people are like private equity is bad private equities bad the investors are always going to get into every industry
Starting point is 00:16:25 They just thought blue collar guys were stupid. Yep. They were like, there's no like they they figured out we were lucky and then We made it through 2009 10 we made it through COVID and they realized there's really good operators in these industries And that's why they're here and everybody hates it because there's good bad of the ugly. Yep, and I would say this I Know it was good for you. You got a Rolls Royce. I know it was good for me. And I know this. I know they're more sophisticated.
Starting point is 00:16:52 They taught me about how raising capital. They taught me about you shouldn't have a 6% ARR. Or not ARR, 6% accounts receivable AR. And now it's 0.3%. They looked at my stuff because they're financial wizards, but they can't do what me and you could do. They go in and screw up a lot of companies Yes, they don't they don't got the EQ. They don't have relations with the people They try to cut their way to the top, but that's not every company
Starting point is 00:17:11 That's not a lot of them let you take the guys out a lot of them stay invest in what you want Just be healthy Just don't go too fast to growth because we need to make sure we've got a plan and we're not big planners We're like, let's go all in so So they taught me to slow down a little bit. I seen all these comments online of like, oh, private equity came in my region and they ruined our region. And now they're spiking up PPC
Starting point is 00:17:33 and they're investing in all this marketing and all this. And then I'm like sitting there like, guys, you guys should be proud. You guys should be happy that private equity is in your space. You guys should be happy that they're in your region. Why? Well, what was your exit strategy? You have no way of exiting at all.
Starting point is 00:17:49 Exactly. And not to mention, when A1 goes into a market, what everybody's kind of realized is, man, everything's easier. Like they're at the top of the market. They've really trained the customer about a premium company. And so they get branded correctly. They answer their phones on weekends. They show up and they're like, we're still cheaper than A1. And so all of a sudden they double their company when A1 goes in. And so, you know, they should be excited, man. There's no reason for anybody to talk bad about private equity. Look, like Tommy said, there's good and bad private equities out there. And, you know, some of them are
Starting point is 00:18:22 sharks that are just here for money. some of them actually care about the operators inside the operations and in the systems but listen stop worrying about him stop worrying about him if there's private equity in your sector I promise you that's a good thing why because they're priced out properly they're marketing properly so you guys should be using that to make sure that you guys are are leading that way you know what I'm saying? You learn a lot. You can learn a lot and all of a sudden,
Starting point is 00:18:47 you become ultra profitable. Here's one thing I've learned. Losers focus on winners. Amen. And winners focus on winning. Yes, sir. And so many losers I know, all they do is get into a room and they complain
Starting point is 00:19:01 and then they bitch and then they say the prices and the tariffs. I'm like, you know what I say? Good good. I'm like cuz this is gonna get rid of so much competition Yes Nobody's gonna be able to keep up because they they were complaining that they couldn't hire guys and now they're complaining They can't get leads then they're complaining about now peas here. Then they're complaining They've always it's the same people that always have an issue every time any that happens Anybody walks into my office that works for me.'m like good like what do you mean good? They're like did you realize they just doubled our prices good they doubled everybody's prices who cares you know
Starting point is 00:19:31 How much harder it's gonna be for them than us we're trained for this We're trained for battle time you and you build enough value to be able to charge for that so look it's talking about losers There's a ton of losers in the industry Tommy well the deal is I Have this philosophy whoever doesn't make it in the real world Tommy. Well, the deal is, I have this philosophy. Whoever doesn't make it in the real world teaches. You know why we started HSF? Because I'm still in the battlegrounds, man. I'm still in here fighting.
Starting point is 00:19:52 I know what's happening. I know what macro-microeconomics are going on. And look, there's a lot of people. There's some funky deals going on. And it's almost, it's like, you can, but they're really good sales guys. They can sell a dream. And there's a lot of them out there in a lot of industries.
Starting point is 00:20:07 Trust me, you don't think it's in roofing. You don't think it's in pest control. They're everywhere. They exist in every industry. It's just, you know, certain people, they fall in love with the dream, they go on the private plane, whatever this looks like,
Starting point is 00:20:21 and they sign their life away. And unlike you, I'm not a big fan of like, look, I'm not buying closed doors like you are. You talk to these guys more than I do. I don't know who's been ripped off or not. Like I don't get into that because I'm too focused, but they come to you for, in confidence. And for me, I'll listen to their story,
Starting point is 00:20:37 but I'm not the one that went through their Q of E. I'm not the one, I've been through a lot of owners that tried to sell that were lying about ad backs, did a lot of shady stuff too. So just as many crooks are out there trying to teach guys to take advantage, there through a lot of owners that try to sell that were lying about ad backs that did a lot of shady stuff too. So just as many crooks are out there trying to teach guys to take advantage. There's a lot of owners lie about their numbers. They make stuff up. I've been through deals where their financials weren't even close to what they were reporting. So I think there's bad actors in everything. So what would you do? What would you put yourself as a contractor? Right? Everybody wants the
Starting point is 00:21:03 five to $10 million contractors because they know they're a couple of tweaks away to getting them to 20 25 mil and that's where you know you could get a good profitable flip right. So you're a five ten million dollar contractor. What are you doing in these guys keep approaching you and obviously whether you're in a good or bad spot and you're looking for help. What are the top three questions that you're asking these gurus in the industry Tommy without you know calling any names or bashing on them. What are the top three questions that you're asking these gurus in the industry Tommy without you know calling any names or bashing on them. What are the top three things that you're out that you're that you're asking to be able to make sure hey this is the right mentor for me or this is the right leader for me or yeah I'm interested in you right. So number one is there's a way
Starting point is 00:21:38 to prep if you're ever looking to make something and a lot of people don't do this and they lose out on a lot of value. Number one is getting audited financials. Number two is doing your own quality of earnings that you're prepared. Number three is having service tight. And I got to tell you when somebody's not a housekeeper or a jobber that's okay. And I get it but you're gonna get devalued because you don't look like an affluent business person. I mean you just don't. Everybody gets you, every platform will get you in the home service industry on service tight. You got to be on the right payroll software.
Starting point is 00:22:06 Like there's certain things you just have to do. So prep first. Secondly, is when all these different P companies approached me, I went and flew out to see who they worked with, what their success story. And I looked at their financials. They open up the doors to me. Tell me all about your success stories. What's the good, bad and the ugly.
Starting point is 00:22:22 And you better tell me some bad and ugly. Cause if you don't have ugly what they're lying Coors and and that but the track record like when I work with a vendor I want to talk to ten people you've worked with and I want to I want to hear from a couple people that you either stop work with her they fired you and That's the fact is I flew out to so many businesses that worked with core tech and they told me they're very hands-on They're gonna tell you no, they're me they're very hands-on. They're going to tell you no. They're going to expect you to be super humble. And I said fine, I could be all that. And they taught me a lot. And they were really worried. They said, dude, I'll be honest
Starting point is 00:22:53 with you. They told me this. They said 10 companies have called us and asked me what it was like to work with Tommy Mello. Everybody wanted to see if they could tame the beast. And they're like, but you just sit there, you listen, you ask great questions, and you do exactly. And they don't tell me what to do. They just say, Have you ever thought about it this way? Or why is this AR? Or what can we do about this? Or have you ever thought about renegotiating with this guy because your cost of goods is out of control? And that's what they do. That's what a great partner does. But they said, we didn't buy one, we bought you. And they did buy it. They did buy Luke. They bought, trust me, they brought Travis Radcliffe. They bought our team. But the deal is, if I stop showing up,
Starting point is 00:23:31 if I start taking vacations and just disappear, these guys are loyal to me too. So the founder leaves. We know what that is. It's not a good situation. We know what that leads into, right? Anything that's complex that I can't go explain to my significant other That's like well. I get an earn out here. They're gonna add this back. They're gonna do this That's always makes me fishy like first of all it should be a very very easy easy earn out
Starting point is 00:23:54 Yeah, and it should be I getting a lot of cash up front yep And it should be what's my upside of what what upside have you done this with before? Like where have you done this before? Is this your first rodeo? And a lot of people are taking other people's credit. You know, whether you worked for Ken Goodrich or whether you worked, a lot of people work for a lot of people. And you know, Ken's there's so many guys I know that have worked for Ken and Ken's a beast. Ken is probably one of the most respectable operators out there. And there's a lot of scumbags out there talking about,
Starting point is 00:24:25 or trying to take credit for what he did. It's no different from one of your guys saying, oh, I built A1, or one of my guys saying, oh, because of me, next shouldn't happen. And I've heard stories like that about me. I've heard stories like that about you, about Ken Goodridge. Look, at the end of the day, guys, the CEO, the operator, the guy with the vision is the most important
Starting point is 00:24:45 part of the piece, whether people want to see it or not. So I hate these scumbags out there that are always like, well, I built ghetto and I build next gen and I built this. It's like, no, we didn't look. I don't even say that. I've never heard you say because of me, a once. I've never heard you're only as strong as your team and you're as strong as your weakest link. In fact, I needed to step back and say look at I am fireable now that I work for private I mean, I mean those are the facts and I just say guys, you know, I'm the driver for sure But my biggest goal there's a great book by What's it called built built not built to sell that's John warlow
Starting point is 00:25:19 There's a great book called built to last by Jim Collins and And this idea should be, if I were to leave the company, it would do better because I put all the right people in place. Now, if somebody comes in and starts firing everybody and gets rid of all my installers and does all the crazy stuff that cuts the marketing, that's not good. But what I'd ask them to do, if you're gonna let me go,
Starting point is 00:25:39 can you give me six months as a consultant to make sure we're leaving this in great hands? Because this is, my face is on the side of the truck. I want this thing to live on because there's a lot of families. If there's 900 employees that are taking care of three people, there's 3,600 people were taken care of. So can you please like if I did something bad, let's God forbid I got in a really bad car accident and something bad happened and you can't operate it. We need you to be out because it's too bad publicity. I would ask, could I work from a distance just to make sure that these families are taken care of?
Starting point is 00:26:06 I got a good question for you. And Aaron Gaynor put this on a group chat, which is with what you're saying. Something bad happens to you. God forbid nothing happens to Tommy. Obviously, we all appreciate what you do in the industry, Tommy, but God forbid something happens to you and the new CEO is walking in.
Starting point is 00:26:22 What do you tell that CEO about your company, about, hey, this is what you need to focus on? What's that five, 10 minute conversation? I mean, it's a very quick conversation of, look, there's a lot of people that I trust in this business. The most one is Luke and my CFO, Adrian. And I go, they understand how I run stuff, but what's going to happen is you're going to change the culture to your culture because now you're running the show. And all I'd ask is, listen, these guys know how to run without me. So give them a lot of latitude. Let them do what they do best.
Starting point is 00:26:53 Where I do my best, where you're going to have to fill in for, is there certain vendors that I've got 10-year-plus relationships, and I give them everything to make the decisions, but I hold them accountable. And I'd say, listen, here's what you need to do. A great leader, you need to rally the troops. You need to get them excited. You need to see what's in it for them.
Starting point is 00:27:08 You need to make sure their families are taken care of. You need to make sure if they want weekends, they're going on the trips they want to. They're buying their first house. Because if you start to extract money from this company, they will be gone in a New York second. In fact, there's – and I don't say this with any pride. There's at least 40 people a month that reach out to me to say, if you were ever to step down, I'm going, if you decided to be a garbage man,
Starting point is 00:27:30 we're going with you to do garbage. And I'm like, yeah, but I want you. I don't want you to be loyal to me necessarily. I want you to be loyal to this company. Unfortunately, Tommy, that is one responsibility that carries with you for being a great leader. Same thing with me. You know, I stepped down as CEO of Nextion a couple years ago, and there was people
Starting point is 00:27:48 that told me the same thing. Hey, Shumai, if you ever leave or if you ever step down or whatever the case is, like, I don't think I could be here. And, you know, unfortunately, I had to step down. I had, you know, I had other visions in mind, like my project NUVA that I couldn't turn on. Yeah, well, you know, when I went to your shop, first of all, you were feeding everybody.
Starting point is 00:28:06 You had a truck there every day I was there. People were winning Raptors. You'd go give out, you had every guy walking in, you were throwing cash too. Somebody had a hard time, you were figuring out a way to make it work. And one of the things that I think that, look, this is not because you're Spanish speaking, but I will say everybody gets sued in California. What they figured out was Ishmael came from where we came from. He takes care of us.
Starting point is 00:28:32 And if one guy screws it up for us, and they sue because of a mistake, a clerical error on a payroll, then all of us go down. And I think they kind of self-governed each other. And that's why you didn't, you know, I'm sure you got sued in California a couple of times, but nothing that took down the ship. Nothing, man, nothing. And I'm super proud of that because that culture that I built there was,
Starting point is 00:28:51 people saw me serving them every day, day in, day out. I would show up to the shop at 5, 6 a.m. Every day for, you know, six and a half years, seven years, I would show up. And the reason why we didn't get any lawsuits, the reason why we weren't in any legal troubles, the we weren't any legal troubles the reason why is because? People would see me there and you know five six in the morning. I'm packing up the installer's truck. I'm grabbing you know the Yetis You're taking care of them of course and you paid more and and also like you understood like look
Starting point is 00:29:21 we're gonna get this but I Feel like they didn't feel like you were just chasing the dollar. Although listen, everybody wants to make money for their families and you want to set up your daughters. Of course. But there's an idea of like, dude, if I sit on the top of the mountain alone with a magna bottle of champagne, like that was pretty lonely.
Starting point is 00:29:39 That was the end of my career. That was pretty lonely, man. It's pretty. Did you ever think that this was going to happen to us Tommy? You know, me and you are probably, and I mean this in the most humble, respectful way, me and you are probably some of the most influential voices in the industry. Did you ever think like, man one day this is going to happen? Hey guys, hope you're loving today's episode. Let me ask you something tough, but important. What would you do if your phone stopped ringing tomorrow?
Starting point is 00:30:04 tough but important. What would you do if your phone stopped ringing tomorrow? Most owners would panic, but I've got a few proven strategies to make sure that never happens. On June 23rd, I'm hosting a live webinar where I'll walk you through exactly how my top performers turn one job into 20 new leads before they even leave the driveway. My right-hand man, Jim Leslie, and I will show you how to build a business that keeps growing even when prices go up and the competition gets tougher. Join our Facebook group, The Home Service Expert, and watch for the announcement. Alright, back to the episode. You know, when I was a kid, I used to listen to my mom and dad argue about bills.
Starting point is 00:30:41 And I just decided I needed to remove money from, this will never happen to my family. They'll never get a divorce. My dad cheated on my mom, he drank a lot, but he was the best dad ever. And I was golfing with my dad two days ago, and I said, man, I'm like, I'm glad I didn't, my dad's a mechanic, he ran transmission shops, he did a great job, he took care of me.
Starting point is 00:31:00 But I'm like, I found a niche, I made a lot of mistakes, I'm an overnight success of two decades, but I didn't know. I didn't know what multiples are arbitrage was. I didn't understand none of that. I wanted this. I was pre dental. I went to school. I took anatomy, physiology, biochemistry, organic, like you name it. I took advanced calculus. I mean, can you imagine me as an orthodontist? I would be like, dude, so like, I don't know, but I think, you know, I'm pretty spiritual. And I think God has a plan. And I think he hasn't even begun to
Starting point is 00:31:29 use me yet for what I'm meant to do. I'm not a dad yet. I'm not. I was put on this earth to be a father. For sure. You so I can't wait to see that version of you, by the way. My best things haven't, you know, God forbid, if I do something bad happen, which, you know, tomorrow's not promised us something's something I've learned. I do believe my legacy is going to be my family. But you know, I can't be sure because, you know, all I could do is marry Bree and start having babies. But you know, I want to grow up in a great, the hard part is when you have this much money.
Starting point is 00:32:04 And I say this with the most humble. I want my kids, I want them to fight. I want them to go through, not exactly what I went through. Definitely not what you had to go through. I mean, but at the same time, I don't want them to be like, dude, yeah, come to this 50,000 square foot house and they're friends and they're driving first class on private. Like I want to figure out how to instill. Yeah, that's just such a hard thing., I want to figure out how to instill.
Starting point is 00:32:27 Yeah, that's just such a hard thing. And I don't know, how do you manage that? I'm in that midst right now where my daughters know they have a good life in it. And I can tell they have that little attitude of like, hey, you know, but then I also look, my number one thing with my daughters, and I'll give you this as a humble friend to you, Tommy, is I am a mirror of what I want my daughters to I'll give you this as a humble friend to you Tommy, is I am a mirror
Starting point is 00:32:45 of what I want my daughters to see every day. So if you ever see me around my daughters, bro, I am serving them. I am picking up napkins. I am picking up plates for them. I'm grabbing the thing. I'm grabbing clothes for them. I was at a... I finally took them out to San Diego to this new resort in San Diego, which had a bunch
Starting point is 00:33:04 of water slides and everything. And there was four couples in back of us in a cabana. And it was my daughters and myself were, you know, they were just chilling. And the guy comes up to me after like five, six hours of looking at me and he said, Hey, man, you haven't sat down for more than one minute. You've been grabbing towels, grabbing food, you know, putting sun lotion. Are you going to sit down and enjoy your vacation? I'm like, nah, man, not when you have four daughters.
Starting point is 00:33:29 I want them to see how they should be treated every single day for their life. And that's the way I parent my girls. No, well, it's going to be hard for anybody to date them because you're going to be a tough critic. You know, if you have you know If I have a boy, it's you treat a woman, right? That's what my dad Tommy I mean look he made mistakes in his life, but I you know what? I'll do what he does. We all do and I don't hold him. I don't know what it battles
Starting point is 00:33:55 He was going through a lot of demons everybody has that so I just figured dude I only cared about money just cuz I saw my family apart and then I started seeing fitness and faith and family and future self and the finance kind of what is the only thing you could really delegate? You can't delegate your fitness, you can't delegate your faith, you can't delegate family, you can't delegate learning, you can't delegate fun. You could delegate finance, believe it or not. You can get great people on your team. And you build a machine. And look, I can go out people on your team. And you build a machine. And look, I can go out of town. I'm taking my dad on a golf trip next week. Good for you, man.
Starting point is 00:34:30 And it's with all my cousins. I'll be gone for a week. And then I got to go to Milwaukee for a management meeting. Do you think that I'll log into service tight and everything's gonna fall apart? No. Do you think I could be gone for three months and they won't skip a beat? They won't skip a beat. Our whole team goes to Mexico for a week. All of my C-Suite, my managers.
Starting point is 00:34:50 And you guys still produce. My top 40 technicians in the company and installers leave for a week. You know what's funny? Is all the other guys think they're getting the best jobs now and we hit the same exact numbers. They're like, now that they're gone, we're getting the good jobs, which is a fallacy. Of. They're like now that they're gone we're getting the good jobs which is a fallacy.
Starting point is 00:35:06 Of course it is. But it's crazy to me because you would think your top 40 producers, your whole management team is gone for a week. We don't lose a thing. Of course and guys look at what he just said. This is I don't want you guys to skip over what he just said because this is the type of competition that you guys are against in the in the garage door industry. This is the type of company Tommy is taking 40 of his top technicians to Cabo, his executives, his managers, everybody for a week paying for everything, housing, food, everything. And they're having a blast. You posted a bunch of videos on, on, on your, on your pinnacle trip that you do every year. And guys, this is exactly what I, what I'm telling you. And
Starting point is 00:35:43 this is exactly what I mean when the way you recruit the top people is doing stuff like Tommy does he pays the best he trains the best he treats them the best like there's I guarantee you if I talk to one of your technicians I just started a month ago Tommy they know exactly the pathway to getting to being a top a top performer and they all got my cell phone number and the other thing is that they got a chance to get equity in the business. And the other thing is I teach these guys to be killers and ask for everything. They ask for everything, which means when I teach them that they're going to ask me
Starting point is 00:36:14 for more. So the top guys that make more money than I do on a salary basis and with commissions and whatnot, they literally, you can't teach them to be lions and then say, they say, what's next for me? What, where could I do more? What, how do I make more money? And I'm like, and I gotta always be coming up with ways and new strategies for them to earn more money. That keeps you on your toes though. That keeps you on your toes. It's like, they always want more. And guess what? I always want more. And would you rather somebody say I'm just trying in the corner, but they're not, they're not trying. Yup. So you teach it. I always say this, look, you can't teach a guy to say, Hey, listen,
Starting point is 00:36:44 I want you to go hard. I want you to ask for everything. But hey, listen, so you teach it. I always say this look you can't teach a guy to say hey listen I want you to go hard I want you to ask for everything but hey listen when you run these home warranty calls don't ask for anything You gotta have specials, you know, so you got to understand exactly You can't teach to be one way to one thing one way to another if it's a little old lady treat her differently You got to go in and don't treat rich people or poor people or white people or Mexican people Everybody's the same give them all the options and let them choose amen and that's one thing that you guys got to learn as contractors is that it's okay for them to make more money than you look at the beginning stages of next-gen air
Starting point is 00:37:14 conditioning when I was growing it dude I wasn't me I was paying myself $2,000 a week just to be able to pay my bills and my rent and my you know I think we had a Mercedes used Mercedes back in the day and some of the sales guys were Pulling in five six seven eight thousand ten thousand dollar checks a week And I'm like God most most contractors old Tommy are not okay with that They're like well how could the sales guy be making more and how could this technician be making and I'm like guys They don't they don't understand their enterprise value. They don't understand what they're trying to build exactly They don't even understand if to not have a plan to sell or at least understand how your business is valued is such a mistake
Starting point is 00:37:48 that I was in for so long. We were in for so long. I didn't know what I. But literally, the lights started turning on, and you hear about this exit, this exit. And then you build it in a certain way that it could be sold if you don't plan on selling. But there's certain guys that are like I'm never gonna sell and I'm like
Starting point is 00:38:06 You know because I do believe that literally people lose their DNA when they sell a lot of people most people do but I'm like You know, you think I'd be sitting on a golf course, of course I want to go golfing but you think I'm gonna disappear into the Bahamas. I will keep there is more opportunity Look, it was Ken Gooder is to call me up. He said dude, I Would do a deal and here's why you are one of the smartest guys I know in home service, but you don't know shit about raising capital You don't understand how to use debt. You don't understand what an LP is and and he's like Dude when you learn that with what you know
Starting point is 00:38:41 Becoming all of this. Yeah, he goes you're half of it Yeah, this other half if it. This other half, if you could just be a sponge, he goes, it's going to be nutty. He goes, do you know how to do a deal? Do you understand ad backs? Do you understand quality of earnings? And at the time I just barely described the surface. Now I'm like, huh. I'm like, let's like, like I was, Quartet, I called them every day and I was like, so you guys are in the Middle East right now raising debt. They're like, yeah, we just got a pension fund and here's how it works. And so I would call them.
Starting point is 00:39:06 I'd invite them to spend the night at my house. And I'd ask that all I would do is they'd be like, they go, dude, it's 11 at night. Like I got to go to bed and I'm like, one more question. One more question. And a lot of people are like, they're just like, they got it all. You know, the dumbest people in the world think they know everything. And the billionaires I know are the, they sit there and they'll talk to a guy. They'll talk to a server for 20 minutes and ask them why they weren't there, what their
Starting point is 00:39:31 goals are, do they have kids? I've noticed that too. And they ask the best questions and they learn. They're always learning. Every time there's been a real issue with this company, it's been me. And it was so easy to point my fingers. I let that happen. I let the guys not drive safely. I knew they weren't driving safely, but they were top producers, and I let them. God forbid something bad happened. You know how many times that happens in every company? You know, it's a top producer. It's bringing in revenue.
Starting point is 00:39:56 And you've done it. I've fired four top producers. But I put up with a lot. A lot of lot. We've put up with a lot. We've had it. Because we were ignorant to it. Well, you let it happen and then the whole tribe gets very disheartened. And then you let that person go and you're like, man, I should have done that six months ago.
Starting point is 00:40:15 Yeah. And there's a fear though, because there was one point in my career where if I lost this one guy, I'm like, I don't know if I'm going to be able to pay the bills. And Adam walks in and he goes, I'm like, I don't know if I'm gonna be able to pay the bills and Adam walks in and he goes I'm firing him And I look at him and I go Okay, and I was so scared because I'm like dude what happens when these marketing bills come in? I got a truck payment. I got this stuff and I was so worried and you'd be shocked dude. He goes he's so Disrespectful to you and me. Yeah, he
Starting point is 00:40:44 Rolls his eyes when he comes in. He misses meetings. And he thinks he knows everything. And the whole place is watching them do that to you. Yep. And I said, you're right. So let's do it. And we didn't skip a beat.
Starting point is 00:40:53 And then that's why I was like, fine. Nobody's untouchable. Nobody. At what point, Tommy, did you go from, or do you still remember when you were struggling to when you were already thriving? Do you still remember that remember when you were, you know, struggling to when you were already, you know, thriving? Do you still remember that point where you were, like you said, struggling to pay the bill, struggling to pay payroll?
Starting point is 00:41:12 I'll tell you one story. You know, me and Keegan have known each other a long time and Keegan goes, would you mind if I came down to your shop and just check checked it out. And this is, it was 2018, 2019, somewhere in there. Yep, same. And I go, yeah, and he's pretty smart guy. Like he's really good at understanding finances. I met him once, by the way, so he, yeah. And he goes, he goes, hey, can I just see every market?
Starting point is 00:41:41 Can you put it out on this conference table? And can you put out, so my CFO goes goes there he grabs the balance sheet of the P&L and Keegan goes out there with a highlighter. It just starts highlighting. He's doing his thing and he looks up at me with disgust and he goes, you need to close these four markets today. And I tell him, I don't care if it was GC, Jesus Christ, I would have not closed those. And he goes, you'rehmael, I don't care if it was GC, Jesus Christ. I would have not closed those. And he goes, you're bleeding and you're going to go under.
Starting point is 00:42:10 And I go Keegan, it's just bad management. I could fly out there. I could do this. I could do this. He goes, Tommy, close these today and offer your guys a reload package today. And I'm like, but, but, but he's like, no. And I was like, so I closed down Atlanta, Dallas, Houston, and Tampa the next day. And I started printing money, like nothing I've
Starting point is 00:42:37 ever seen before. And look, I've had a lot, a lot of people do that for me, though. Al Levy came in, I've had a lot of people. Aura didn't let anybody on service then, outside of HVAC Plano Electrical. We were the first company. And he goes, why would I let a graduate company, and my father does HVAC, like this is what we're focused on. I said, you bet on me, I promise you, I will have more technicians.
Starting point is 00:42:58 And he goes, Tommy, I can't do that. 15 minutes later, he goes, you know what, F it. He goes, I'm gonna send you 10 success managers. This was was 2017 and we didn't have a price book or anything. We had to come up with it and we're working with Matt rule and all these freaking, you know what I mean? You know, Matt and why did that happen? Why did he bet on us? Like a lot of people like it's crazy. But it's just like just like now obviously I believe in Jesus and he's opened up a lot of doors Of course, and I feel like literally I could tell you this I feel like I'm in the early stages like so many people like what are you gonna do?
Starting point is 00:43:34 How much you why do you keep going? Like what do you mean? You're just getting started with the finish line How much money is enough my mom and dad's not about how much is enough? And I said, Mom, I go, do you think Tiger Woods? Mom asked him, when you want four majors, four majors, you got to be done, right? You hit the grand slam. I'm like, this is what I live for. Like I don't get in a room and talk about sports. I don't get in a room and talk about like, we talk about business. How do we freaking, how do we help each other? It's an obsession. It is. And I was with a guy yesterday and he goes, you know who's the most successful people?
Starting point is 00:44:08 The people that get obsessed, where they can't sleep, where they're just, they're going to go all in. And he goes, there are seasons of life. I don't know if you ever heard of Russell Brunson, but he, Russell Brunson, ClickFunnels, he was sitting right where you are. And he goes, Tommy, the obsession. But he goes, when I go home, I'm a different Russell. I walk in, I breathe in my car,
Starting point is 00:44:25 and I go, new Russell, I'm Russell Dad. But he goes, look, there were places where I had to be obsessed with different things. And I think a lot of people are trying to be so balanced and trying to get to know the things they suck at. I never want to become a good CFO. I'm not saying, I want to become a great marketer and continue to become the best marketer.
Starting point is 00:44:44 I want to be great at sales. I want to be a great leader. You want to become a great marketer and continue to become the best marketer. I want to be great at sales I want to be a great leader. You want to be a great father? Yeah, what those are the things I want to be in the best shape of my life And really what I want to do is when I'm sitting on my deathbed I never want to have to wonder I wish I could have gone harder. I wish I could have tried more I wish I could have like I want to say I went all in on everything I did and if I could do that Then I consider life a big win. Amen. Amen look
Starting point is 00:45:07 I want to get back to the the location thing because that's one thing that we always that we as operators always struggle with Tommy is When at what point do you go to a different market? Do you open up a micro location? Do you open up a second location because most of these guys look I know they're all I've met I've mentored a million guys. Tommy on these. What are you doing? And just send the California loan now. I know you had different locations. We had six operational locations with warehousing and installers, technicians, sales guys in
Starting point is 00:45:36 there. And then we had three micro locations just to be able to lead generate on them. So Paul, and we talked about that. I remember when I told you, like, you got to do that. But Paul Kelly is going to do over 300 million in Phoenix. Yep. Right? You know, here's the coolest thing about being where you live.
Starting point is 00:45:52 You go to church there, your kids grow up there, your best friends live there, you know all your neighbors. If you don't own that market, you think it's going to be easy to go to the next one? But most contractors think they own the market at 2 million, Tommy. Most contractors actually, I've had a contractor say Ishmael I'm already I already dominate where I'm at. I'm in Dallas, Texas and I already dominate I'm like how much revenue are you doing seven million dollars? What like I'm gonna open up one in Houston and one I'm like there is millions of people in Dallas
Starting point is 00:46:20 What about exactly doing over a hundred exactly? So at what point, my question is at what point? He's got to own the market. Like, look, what's the armpit of California? 24 million people. What's the armpit, though? What's the armpit of California? Fresno. Yeah, exactly.
Starting point is 00:46:36 And how much does Tom Howard do? 50 mil probably. 50 mil. So the idea is people always blame their market. They always say this. Yes, let me tell you this. If I was in Sedona, you got Flagstaff, I'd say, look, that's a smaller market. I probably got to hit a major metro if I want to get to like the tens and tens and tens of millions.
Starting point is 00:46:52 But here's what I find. When I went to Tucson, I was taking my best guys from Phoenix and sending them to Tucson. And I was robbing Peter to pay Paul. And I was trying to grow too fast. And this idea of like, you need to make a lot of profit. You need to be at 22% profit before you're gonna go and it needs to be of millions of millions of dollars of profit Of course, and then you move slowly somewhere where you get to with an hour to two How much do you sustain that 20% plus profit before you go into a different market? Do you just you know after how much how much money do you got in the bank? So look at the end of the day. Here's the deal Own your market get the reviews get multiple locations Like you should be at least 20 million dollars before even thinking about that
Starting point is 00:47:33 That's what I said. I think my rule of thumb is you got to be between 20 to 25 million dollars You got to have a structured management system inside the operation That's producing profit in order for you to even think about adding a trade adding a second trade or adding a second third Location it's hard man. It's not easy running multi location shops and then the other thing is like people don't understand the difference in home service and home improvement like discretionary versus indiscretionary money like if you're window washing or painting or doing water systems Versus your pipe breaks, your air conditioner goes out, your garage door is busted. Like when the market really gets bad,
Starting point is 00:48:10 and it eventually always does, which it gets great, those companies, they struggle so bad. And I think people need to realize the reason why we get a premium is because we're demand driven. We're a premium. So we can't have AI answering the phone. Yeah, if you got a landscape company that everybody's calling you weekly to mow your lawn, you can have AI answer that at the dentist's office. But trying to do AI when you're busted and your pipe just broke? Certain people are like, I'm just going to get AI to answer the phone. I'm like, yeah, good.
Starting point is 00:48:36 Tell me how that goes. So tell me about it. Tell me about it because, look, there's been a ton of talk of when CSRs are going to get out of the operation, right? Service times working on their own. I know there's a ton of good companies out there that are that are doing the A.I. the customer service service. Titan. And I will tell you that I think A.I.
Starting point is 00:48:54 needs the assistance of humans and vice versa for the next 18 months to two years. And I think it needs to learn from the humans. And then we're going to learn from the A.I. And it's going to be a symbiotic. You start now, though, do you start? If you're a 10 million dollar shop and you're, you know, you got 10, five CSRs inside the operation. Do you start doing? Well, they will listen to the calls and the disposition, the calls and they'll start scoring your calls and they'll start. They'll start kind of coaching your team. But I would never, I would, the word AI is right now.
Starting point is 00:49:25 But I would never, I would, the word AI is, right now, if we did a quick phone call and you said, thank you for calling A1 Garage Door Service and you said, hey, my garage door is Spring Break, how much would a customer go? Oh, very good. What's your address? And it's still, it's not there yet. It's just not there. And if you start now, people say start nights and weekends, you're still throwing money away.
Starting point is 00:49:40 Having after hours call center first. It's just not there. And video is coming out in a year it's gonna be so much further, so be a little bit patient. Make sure you pick the right companies. I mean, you can look at a guy like Sebastian. That dude is on the road. He's got great team.
Starting point is 00:49:52 Like, he's a go-getter. Like, I get behind people that are go-getters that are like you. Like, I would have never, like, dude, Tom Howard said it was a long shot. He goes, there's one guy on the planet that could work this out. He goes, Ishmael Valdez.
Starting point is 00:50:06 And dude, nobody in the beginning would have bet. I mean, dude, it was a lot. And I got to tell you, you were like investing in like house cleaning and like sushi bars. And then you're like, I'm going to go all in on this. And dude, you've had some like, nobody knows this, but you came to my house and you were almost in tears. Dude, I was freaking frustrated. You had some things, nobody knows this, but you came to my house and you were almost in tears. Dude, I was freaking frustrated. You had some things go wrong, which everybody does.
Starting point is 00:50:28 I was frustrated. You're stronger. I was frustrated. And that business is going to be worth it. I mean, you text me and buy all the time. And you're so competitive. And you're like, who's going to be a billionaire? And I love that.
Starting point is 00:50:39 But here's the deal. I always say, look, what do I, what do I do to help me like the people around me the most? And you know, for me, money's just this tool that when we go to Idaho, you got a place out there. When we do stuff like I'm building a pretty big place. Right now I got six guys staying with me. You know what I mean? Like you stay with me. You're more than welcome. You left a car at my house for a month. Yep. But like the idea is I'm not doing this to say look at my house. I'm doing this to say this is a sanctuary of fun and relationships that we could build together. I mean, I lived in a thousand square foot apartment for four
Starting point is 00:51:17 years. Tom Howard used to go sleep on the couch in Whiteboard with me till 11 at night and I'd be back out there at 5 in the morning and I wasn't embarrassed I had other houses. It's not that my possessions don't They're not who I am. But yes, I like nice things I want to be able to get to a place faster and in comfort Like it was selfish of me not to have a driver at a certain point course It gave me 12 12 hours a week. I told you about a driver about a chameleon I'm telling me about this stuff. You got in the great shape like you doing certain things definitely have pushed me
Starting point is 00:51:48 I mean you've been a positive influence and it's a lot I will say Yano's Ring like Gaynor and I became really close like that group. We've got is Hoffman's a genius like there's nobody I Wouldn't say there's anybody in there that I'm not like that like I'm not happy and I gotta say you I didn't know Hoffman's a genius, like there's nobody, I wouldn't say there's anybody in there that I'm not happy, and I gotta say you, I didn't know Hoffman, I didn't know Peterman very well, I knew Gaynor, and just all of a sudden, I know you do other groups too, but all of a sudden you threw that together,
Starting point is 00:52:14 and the cool thing about it is we give each other everything. Screenshots of what our revenue is, what our top guys are. If I ever wanna talk to somebody's top guy, they'll fly him out here. Yep, we ask for advice on the group. We hold each other accountable. So that's one of the cool things that we built on.
Starting point is 00:52:29 And these are friends for life, man. And the deal is, the problem is we're such big builders. We're so like, we're always in the midst of something. And plus there's kids coming in, like you guys got kids. But we are like, I got this grand idea that we're going to do some cool stuff. You've done some cool investments with some of these guys are ready. Yep. Real quick, I gotta run here brother but talk to me about new way a little bit because literally
Starting point is 00:52:52 like look, I don't care if anybody uses new way I got behind it because I think it's damn good and I think it's it's the leading tech. And I know you're not the guy back there doing the software and like making all the innovations you got ideas because you understand what it's like to be a business owner. That's 200 million. So you built new way in a way you got sick of paying all these companies for marketing and you want to own the customer. So I think there's still a lot of skeptics out there. Yeah, look, Newver was a product, a project that was brought to me, you know, three years ago.
Starting point is 00:53:22 And I've been pouring my heart into it because I saw a huge, huge gap in our industry, Tommy, where customers have the same behavior every time they need an air conditioning, just like the way they have the same behavior every time they need a garage door, right? They go to the garage door, they press the button, it sounds weird or it doesn't open, and what do they do? They grab their phone, they go on Google.
Starting point is 00:53:42 So stickers work, but they never really worked for HVAC. The thermostat to be locked out, to be able to check the unit before the heat. My business isn't seasonal like yours. It's like the smartest fricking thing in the world. And now you sent a text message the other day and it was like, you're telling them the health of everything, the air quality, like the crazy stuff, the innovations you guys are making, and like, I think you're better than Nest, I think you're better for the contractor. I think that this potentially is a multi, multi, multi-billion dollar company. It is.
Starting point is 00:54:16 And look, some of the innovation that we're working on in there, we brought a Carfax report for the AC units that we're actually going to be monitoring, you know, repairs, we're going to be monitoring investments into maintenance, we're going to be monitoring usage to the hour to the minute. I said Happy Mother's Day the other day at the thermostat. Like, dude, that's super cool. My dad's got one at his house. And it just looks so good.
Starting point is 00:54:36 It's like so much, it's got the little glow, you could change the colors on it. Like anybody that doesn't at least try one out, I just think it's foolish, like for what it does. And the ROI is gonna prove itself out to be like, like 300% of what they were making. And we just hired our first messaging engineer. We just hired our first AI engineer. Like we are developing this product faster than what most products are gonna get developed to.
Starting point is 00:54:58 People are already buying Echo Bees, Honeywells, and Googles for 200, $250. Ours is priced around the same price, but it has so many features like the messaging, like starting the unit for the first time. We were able to start units from all over the cities and states from your office. We were never able to do that. We're able to monitor. We're able to see if anything's wrong with the unit before it happens. So imagine you're calling your customer time, hey, we're on our way to fix your unit. And they're like, what do you mean? Oh, we've noticed that we've been monitoring it and we know that
Starting point is 00:55:29 something's going to we need to replace something in it. So we're going to go out there and we're going to make sure that your units are running efficiently. Or the air quality sensors or whatever. You know, the age like, dude, you built something for the contractor, which is so much better. And I just feel like when people really realize what you have, there's not a company around, you know, because I'll tell you this, you're rougher on the edges. You tell people like it is some people don't like that. Yep.
Starting point is 00:55:52 But they don't understand the product and they don't understand the value of the long term. There's a lot of people that either go all in with you or they're like, oh, I smell and the same thing with me. I mean, yesterday, somebody made a post about me. They're like, I'm so sick of seeing this guy. There was 80 people that said like good things about me. So he took it down But I'm like look I always try to stay in between because look I don't want anybody to try to take down my company because
Starting point is 00:56:13 Too many employees will get hurt So I try to really guard myself of what I'm gonna say you're a lot more outgoing you're like come on bring it Yep, you're like I'll take on any fight. You'll go against everybody I'm just a little more sensitive just because I want to be very sensitive to the people that I work with. Dude, I'm more anything that we can do to protect our contractors. You already know how I feel about them, right? Yeah, you're really doing a good job of that, dude.
Starting point is 00:56:35 And what we're going to do, me and you, we're going to do, like you've already got like a best practices group that you, like if you're part of Nuve, they get coached every single week by the top players in the industry. That's priceless. It is priceless. Yep. So if somebody wants to get ahold of you Ishmael, how do they do it? Look, go on nuveathome.com if you want to learn about our
Starting point is 00:56:55 product, our products, you know, over 400 contractors have already joined us in the short seven month journey, we got over 10,000 units already active 15,000 units deployed in our first seven months. We're the fastest growing company out there right now. If you guys go on Nuve at Home, you guys can learn about the product. If you guys wanna know about the mentoring, nuveathome.com, my social media, Ishmael Valdez,
Starting point is 00:57:17 CEO on Facebook and Instagram. More than happy to help you guys with anything, man. Yeah, look, I mean, Ishmael, I think he'll get you a unit if you want one. If you're serious and you're moving it. All my HVAC contractors, I will ship you a unit brand, send it out to you the same day and you'll have your logo, have full functionality on it so you can try it. Call us back when you want to place your first order.
Starting point is 00:57:39 Yeah dude, I just think he's helped so many people. Last thing ish, we talked about a lot of stuff. I'll let you close us out. Look, man, I'm super, the one thing that I'm still grateful for is having friends like you, Tommy, having friends like Travis, and all these guys that were still- The best, the best. Dude-
Starting point is 00:57:56 Such good people, man. They're such, they're the biggest hearts in the world. Dude, the best part about the group that we have, Tommy, is that nobody's looking for anything from you, nobody's looking for anything from me or from each other we're all just looking to help each other win and that's the best part about the group so I'll leave it off with you guys should be you guys should be looking for that same group that that motivates you to get up that that holds you accountable for all your goals and that that actually makes you a better person both physically
Starting point is 00:58:24 mentally and spiritually. So thank you for having me. Thanks, man. I appreciate you flying out, dude. You're a busy guy. Let's go, baby. Hey there. Thanks for tuning into the podcast today.
Starting point is 00:58:33 Before I let you go, I want to let everybody know that Elevate is out and ready to buy. I can share with you how I attracted a winning team of over 700 employees in over 20 states. 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 wanna learn the secrets that help me transfer my team from stealing the toilet paper
Starting point is 00:58:56 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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