The Home Service Expert Podcast - How Automation Can 10x Business Efficiency And Slash Costs
Episode Date: June 30, 2023Uzair Ahmed is a Solutions Consultant at Cottonwood Automation, a home-service business process automation and outsourcing firm mainly for plumbing and HVAC systems. After graduating with a degree in ...Chemical Engineering from the University of Alberta, he started his career in a hybrid sales and technical role at Baker Hughes. Now, he works with business clients to reduce their costs by up to 60% through automating workflows and building an offshore team. In this episode, we talked about automation, employee appreciation, hiring and training strategies…
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Yeah, the person you're describing needs to get help.
They need to lower their ego and they have to get help to get them out of that rut.
And I've talked to people about that.
And it's hard for them to comprehend.
It's like a mental hurdle that they have to go through, which is like, listen, I am doing
this wrong.
It doesn't have to be this way.
And once you get past that and to the other end, for me, I did that for the first few
years.
I spent the last three years having like a midlife crisis.
What am I even doing? Because my business was growing and running so well without me doing
anything. I felt useless if anything, you know? And that's because I had all my systems, my
automations, my offshore team, everyone doing their work. And that was a, I don't know, the
mindset changed for me because that's what I want. I wanted to get out of the day to day as fast as I
could. 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. So I asked the team to take N-O-T-E-S 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. Welcome back to the Home Service Expert. Today's going to be really cool because
the biggest question I get is what are you doing with technology, Tommy?
What's going on with ChatGPT? How are you integrating software, are you using webhooks, what are you doing as far
as outsourcing, what's the newest things you're working on when it comes to phones, when it comes
to booking appointments. And today's going to be really fun because I've got Azhar Ahmed, and he's
an expert in automation, operations, technology, and entrepreneurship. He's based out of Edmonton,
Alberta, Canada, and he's a solutions consultant at Conwood Automation. He's based out of Edmonton, Alberta, Canada, and he's a solutions consultant
at Cottonwood Automation. He's also the president of Instamec. Uzhar is a solutions consultant at
Cottonwood Automation, a home service business process automation and outsourcing firm,
mainly for plumbing and HVAC, but I'm sure that's going to change after this.
After graduating a degree in chemical engineering from the University of Alberta, he started a career in a hybrid sales
and technical role at Baker Hughes. Now he works with clients to reduce their costs by up to 60%
by automating workflows and building them to an offshore team. This is like, my brother-in-law
was just in town. He's a CIO at GE. He's got 700 people that
report up to him in India. I'm working with a company right now, actually through Service Titan
in, what the heck's the name? Where was Service Titan made? Armenia. And then I'm working on a
bunch of stuff in Nicaragua. So I'm excited to have you on today.
Glad to be here.
And you said you listened to the podcast five, six years ago, huh?
I feel like I was one of the OG listeners and the OG guys who bought the book. Because I realized that with my business, I wasn't running an auto repair business. So with Instamek, we have mobile
mechanics that go to people's houses and fix their car on site. And there's a host of challenges with
that business, which forced me to become the entrepreneur that I am today.
But when it clicked in my head that I'm actually running a home service
business, a plumbing company, an HVAC company,
and I discovered your podcast and your book, that honestly,
I've almost tripled my business since then. And I kid you not.
I was at a plateau where I grew really quickly at the start,
but I couldn't figure out how to grow next. And then since I read the book, I bought in so many
different changes to it. And it really helped me a lot with my business. I love it. You know,
I have a guy that just started from Armenia that speaks English. And, you know, the great thing
about Nicaragua is they're on central time. The great thing about Armenia is they can work on their day, which is our night, and have reports ready for the morning the next day because real-time reports matter.
I hate lagging indicators that I can't change, so I want real-time data.
But let's talk a little bit about yourself, and you talked a little bit about mobile mechanics.
But what are you doing in HVAC and plumbing?
Give me some examples of automations that you just – because, you, up to 60 percent reduced reduction of costs. That's crazy.
Yeah. So I'm going to talk about some of the autom okay? So when we would go on a job site,
a mechanic would tell us what's wrong with the car.
We would have someone go in the back end
and he would call up the head office
and they would say,
this is what's wrong with the car, I need this part.
So someone in the back end would go through
the parts websites, the labor guides, and give a quote
and then tell the mechanic,
hey, this is how much it's gonna cost.
And that process would take like 10 to 15,
if it was 20 minutes, right? Depending on how busy it's going to cost. And that process would take like 10 to 15,
if not 20 minutes, right? Depending on how busy and backed up they were.
So what we did was we built a automation where instead of having that back and forth conversation,
our mechanic would be able to search at the part right on his app that we build a custom CRM. So around his app, he could search at the part for the vehicle, and then he could select the nearest
part store and click one click order in the part and everything would be taken care of in the back end.
The POs, the job invoicing, everything.
And the next thing I'm trying to work on, too, is an integration with Uber, where when he picks the part and he sells a job right on site, he can ask the part to be delivered right away.
Interesting.
So how does this apply towards
plumbing and HVAC? What are you doing in that realm? I mean, I know there's custom parts,
but usually you're not going to have an Uber pick up a five-ton unit. You're not going to have them.
How does this apply to home service? The mechanic, listen, my dad's a mechanic.
He owns transmission shops. He ran Amco Transmissions. I get that. And I'm 100%.
That's badass.
Yeah.
So with home services, I think the biggest struggle that I'm having with dealing with
HVAC and parts suppliers, most of the ones that I've dealt with don't have a strong online
presence.
You literally have to email someone at the office and be like, hey, can I get this part
here?
Can I get an update for this number over here?
One of my clients that I'm helping out is building out a full inventory database.
So the problem with that, they don't have service Titan.
I've tried to get them on service Titan,
but they're happy paying $60 a month for their CRM
and they don't want to spend the cost of a service Titan CRM.
So I'm using Airtable.
Right.
I'm building a process where they have you know a master inventory sheet and they have
individual inventories per van and then a transaction so what i'm doing that's a bit
unique is they're using slack i tell all my clients to get on slack and with slack
automations in there so what they're going to do is after every job they're going to click
backslash job and then they're going to have is after every job, they're going to click backslash job,
and then they're going to have a post-job checklist. So in that post-job checklist,
they're going to put all the stuff that they used, and then it gets pushed to the database at the end.
And now we have our transactions. And then on top of that, every week they do a inventory check on
each other's vans, and they just do everything through Slack, pushes it in the back to our
databases. And then we can tell by the end of the month, like, what was the parts used?
What was the expected number of parts to be used?
What's missing?
And how much did we spend?
And then you can do all the calculations that way.
Yeah, inventory management is, there's literally, I've not met a company, there's two problems.
They always have call center issues.
And secondly, they've always got inventory problems.
Yeah, call center issues is a big one.
Well, call center. I just realized it last week that it was taking a while to transfer calls for companies that we've partnered with.
And then you say this stupid thing, this call may be monitored for quality assurance purposes.
Well, I got rid of that because we're doing that over the phone now, but I wanted to connect to a human being because if I call a company and they got that recording and I just
got a broken garbage disposal, it's like, I don't want to deal with corporate America. I just want
a guy that's local to come out and fix it. Yeah. I think that was a big thing that I was pushing
for at the start. I never wanted to have a pre-recording. It's just, you call a local number
and even when people have like, you know, It's just, you call a local number.
And even when people have like, you know, those tracking numbers, they put a one triple eight number. I was never about that. You have to have a local number. When you call it's ring, ring,
ring. Hello. Thanks for calling a one. How can I help you today? Or how can I make your day better?
You know, there are certain States that say you got to both parties need to know and we have to record.
So I say I literally wrote the script last week and said, hey, my boss might listen to this call because I kick butt for you.
So just make you aware. But listen, my name's Tommy. You reached a one garage for a service here to make your day great because that's so personable.
And then it's like, wow, this person, the owner owner cares. It does everything I want by saying stuff like that. We're just deploying
that right now. But there's a million things that I think you could get so much more automations.
Like right now we use Intact and we've got ServiceTite, but you got to make them talk to
one another perfectly. And there's all kinds of things that software does.
Service Titan, they love me when they hate me
because I'm always pushing Anmol, the CTO,
that we need more stuff when he's like,
well, you guys are the only guys asking us for more.
Most people don't even know what we have.
100%.
No, I've always, even with this AI stuff,
people have come up to me and they're like,
how do I integrate AI with my chatbots? And how can I
get a way that AI picks up the phone calls? And I always say, please do not use automation and AI
for customer facing roles. You are not in that business. I'll give you an example of where it
pays off. So Google or local service ads actually monitor how quick you respond. And the only way
they alert you is through your email.
So if they could start that conversation off and it could alert you via text and via like an alert system,
then they automatically know you're responding quickly.
And people don't know that their algorithm works off of messaging as well.
Most people have that turned off.
So there's certain advantages.
And plus, right now, not only chat GPT, but you can program through Amazon's learning system of AI. I mean, literally,
my guy that does the podcast said, listen, if someone wants a consultation with you,
right now we're feeding every one of your podcasts and every one of your videos. Right
now this is happening with guys like Zuckerberg. If you want to meet with Mark Zuckerberg in like
six months months you can
have a consultation with him for a few hundred bucks and he'll answer it based on all of his
public knowledge they'll talk like you they'll walk yeah i'm a little concerned with it personally
but my guys are like listen if somebody wants a consultation with you it'll literally sound like
you it'll be your decisions it'll talk everything. It'll talk about the latest thoughts you have. It's freaking crazy when you could actually teach it to respond based on thousands
and thousands of chats that have gone well, that have not gone well. So I think I'm not there yet.
And I don't want to be in the AI business, but I want to make sure I've got every leg up
for our company. Yeah. Now I've got a personal trainer client as well. And that's exactly what we're working on.
I'm just like, listen, just write down everything.
And that's also what I tell people as well, too,
especially when it comes to training and onboarding.
If you're a business owner or a manager,
you want to write down everything about your business.
And an effective, like an automation for that is
you can use your voice recording system on your iPhone.
And at the end of the day, just like talk about your day, talk about the challenges, talk about new learnings and talk about all that stuff.
And then use an integration which will transcribe that and then use chat GPT to get the learnings from it, add it to a knowledge base.
And then you'll have this knowledge base that's going to grow into something huge over time.
And then you create a chatbot that helps with onboarding, right? So when you have new employees that come in
and they have questions and your guys are busy working on, you know, whatever they're working
on and they don't have time for stupid questions, which is a cultural thing, but it's reality,
right? But the chatbot can answer everything you want it to answer.
So if I like buy companies and they wonder, how does PTO work for managers?
As long as we had that in the knowledge base, it would answer those questions. You just feed it to
it. Exactly. And it can take unstructured data as well. So you don't have to have like a database
where everything is relational. It can be completely unstructured. And it's just, it's
extremely exciting and powerful times right now.
You know, we were talking about this the other night about, you know,
autonomous cars and the fact that I'll say something right now, and then an ad will pop up on Facebook or a video pop up on Instagram or TikTok's listening. And TikTok could, you know,
they're listening because they know where I travel. They know everything I do.
And the future world, if I was going to attack a country, first of all, they're already doing it in politics.
But there's so many great things and there's so many scary things like disruptors.
But tell me a little bit about workflow automation. If I'm just a small garage door or HVAC company, I got 10 employees.
What should I be thinking about as far as workflow automations?
That's a decent sized business. But at the end of the day, you have to worry about
what are all the repetitive tasks that you're doing every day? Invoicing, job costing,
accounts with steel, making sure you're getting paid, even looking at dashboards,
onboarding, training, quality control, even optimizing schedules, right?
There's so many small tasks that you have to do, which are effectively low leverage work
that a robot could do. Yeah. It's interesting because I don't like some of the stuff,
service-tied and over smart dispatching, but it doesn't really load in what I think about.
So we've done all kinds of testing, A-B testing.
What are the factors?
And we ran all this analysis on what makes a great job.
Is it credit score?
Is it male or female?
Is it zip code?
Is it the number of doors?
Is it how much they paid off?
Because all this data is available.
Regression testing, basically. is it the number of doors is it how much they paid off because all this data is available regression testing basically and you know is there a way to load all this data into
against like another database that takes all these things in square feet of house because
square feet matters for air conditioning because if it's a certain size you know it's got three or
four units is there something that you could take with AI and mix the data sets and actually take
really strong assumptions?
Yeah, I think there's a whole field behind that called data engineering and data analysis,
right?
So even with something like Power BI, I've done this in the past as well, where I put
in all this information.
I'm like, make sense of it.
Tell me, like, what am I missing? Because I think that is the basis of machine learning is because the other
thing is that you can use like a regression analysis and what is the relationship between
X and Y. But if you have lots of data, you don't know what the relationship could be.
AI and machine learning does really help with that. The question is, like, can you get the
data in a cleaned up way or not?
And I think it's going to take some time, but I think we should be working on this today. I'm always thinking about who's the best virtual product specialist to take the turnover? Who's
the best guy to send this job? Who's the best dispatcher to rearrange the schedule? But what
if I didn't need a dispatcher? What if the AI automatically text messaged the client
and they rearranged the job based on our dispatch board?
And because we've got capacity planning, capacity planning is the hardest thing to figure out in home service.
We need more jobs. We need to reschedule this. We need to move this. This is a priority one.
This one's going to be more money. Do you think that we're going to a spot where AI will be able to handle this and when?
I think the hardest part is going to be the consumer accepting the schedule change. That's where we struggle the most.
Two things really with this change of schedule. Does the customer get back to you in time
to be okay with that change? And number two, especially dealing with parts. So the other
technician has those parts. Yeah. So a lot of the times you got to know what parts are on the truck
and if it's a two-plate. But for me, if I got a text message saying from a plumber, hey, I've got Mrs. Gray.
She's 83 years old.
She's stuck with a broken water pipe.
If I give you a free Deco Hardware kit, would you be okay to reschedule for the morning so we could take care of this wonderful woman?
I would be like, sure.
And then give me the schedule engine link to pick my best time
and then i put in a rule that you could never rearrange a customer twice and the machine learned
this stuff i mean i like this conversation because it's putting me outside of the box
and i think eventually ai if it's exponentially growing and learning it's kind of scary too
because they had to turn off facebook's AI because it started to write its own language.
You know what though? Some things don't actually need to have an AI behind it because
with offshoring and building a remote team, which is something that we did with our business,
the cost of talent is a lot less, right? So you can have real humans looking at this stuff
and it still could be a better
option than using ai for it yeah that's interesting i still think human beings do a better job to this
day i still think like the worst thing in the world is calling like your gas company and they
say press one through five and then they try to say did you try unplugging and it's like yes i've
tried this easy shit it's so annoying and i never sound like that there's
so many companies that went overseas with their call center and then two years later they brought
them back just because it was a failure and then you try to build this knowledge base they just
want to call get it fixed they don't want to go through and have to find their own answer they go
to youtube you know talking to a human being is important. Yeah. Speaking of people that have gone overseas with a call center and come back, I've heard
those stories a lot.
And this is my theory.
I think it's when you try to expand that market too much and try to go for low-cost labor
as a cost-saving thing versus finding high-quality talent that's not that much cheaper, but a
little bit cheaper, and using the ability to find high-quality talent there too.
Like for our business, my general manager is based out of Columbia. He manages the entire thing.
He's responsible for P&L. He gets bonuses based on everything. And this is high quality talent
that I'd be paying six figures for locally, but I've got him for what's a lot of money to him
in Columbia, but nothing here. And that's the kind of like quality of
people that we're looking for. Well, I think as we've had globalization going on and people are
learning, you know, it's crazy. You go to Asia, like Japan, they know four languages. The kids
come out of high school and they speak fluent. I think there's a real opportunity now. It used to
be so bad. And now I talked to someone in another country and i was like man
you sound better than i do yeah better on the phone and you meet you sound excited and honestly
yeah so we had no choice with our business the way the economics work we had to go offshore to
run the business and we had to have all this but there's very talented people you're not going to
get them for there's people that
think you know when i get an offshore guy when i pay them six hundred dollars a month
but if you pay two three thousand dollars a month you get extremely talented people
and here's a secret it's only two to three thousand dollars a month there's no they're
1099 so there's no sexual harassment there's no pizza there's no health care there's not all
these hidden costs there's no fika there's no health care. There's not all these hidden costs.
There's no FICA.
There's no Medicare.
One of the things I got to tell people in advance is a lot of people will call me after
this podcast comes out and they're going to say, hey, listen, I heard you're doing some
offshore stuff.
How do I do that?
And I'm going to tell them, you don't even answer your phones on weekends.
You don't even train your guys yet.
You don't even have wrapped vehicles.
And there's got to be an order of operation.
Where does your time go?
What can we solve first?
But you got to get down to the basics.
People, they ask me, they're like, how do I sell service agreements?
I'm like, well, why do you care about that right now?
You don't sell the job at hand.
Your conversion rate isn't what it should be.
Why would you want to add all these things to the mix?
There's a priority of assignments,
and you should use the Eisenhower matrix, which says this needs to be done today.
Now, what you're talking about, the craziest thing in the world is not hiring a personal
or an executive assistant, which you could get a great one that understands everything you're
trying to do to book your appointments, to go through your email, to even look at payroll
errors, to whatever you have on your schedule. I don't understand people that are still doing
things that booking flights like and the problem is they don't know how to delegate.
They don't understand. They're so bad at explaining things are like you're never going to do it right.
Well, they don't understand. They're the bad teacher. They're the ones that can't delegate, right? They're the ones that don't take the time to
explain things. Each and every person, when you do a task, all you should do is hire somebody
that writes SOPs. Record how you do it. Really go slow and talk about what you're doing and
explain things as you go. You could hire a VA. You could hire someone on Upwork or Fiverr or a
million other places, a professional that does Six Sigma, or they do things like lean manufacturing, like the Toyota way.
And they'll build all this stuff to you.
And they'll train other people.
Yeah.
Because how much time gets wasted in an entrepreneur's day where you go, man, I was busy all freaking
day.
I worked 12 hours today.
I'm still on the phone, but I didn't get anything done.
Yeah.
And you know what?
That's the most painful realization that I came through because when I was building my business, I felt
like I was working so hard and I was exhausted every day because I was in the business, building
it up, handling phone calls, dealing with fires and all that stuff. Right. And once I figured out
a way to stop doing that and I had my teams and systems in place, it was shocking how much free time I had.
And I realized how little time I spent actually working on the business,
working on high leverage activities.
And I'm still at that point where I'm like, wow, I've done nothing today.
But it's shocking to me.
I should only be focused on high leverage activities.
Well, your network is your net worth.
So I'm never going to get away from podcasting and meeting people and speaking at events and hearing new
ideas. I think what people do is they put their head down. And by the time they've implemented
what they learned six months ago, they still need to make time to write down ideas, put them on a
list, whether that's a Trello board or a Monday board or an Asana board. Or there's so many base camp.
There's so many different places that and then prioritize it.
But you don't need to do that.
Hire somebody that's great.
Tell them your ideas and say, I'll help you hit the finish line on this one.
Let me take it from here.
And you've got a laundry list of things, you know, you need to get done.
But the big things get pushed to the back because they're the most difficult ones that
will make the most impact.
100%.
Yeah.
There's a CEO friend of mine, and he said, as a CEO, a business owner,
you only have four things that you need to be doing. Number one, setting the vision and make
sure everyone knows about it. Number two, making sure you have the right people and processes in
place and you're recruiting. Number three, strategic partnerships. And number four,
making sure there's money in the bank
yeah those are all pretty important i put number four as number one
they were not they were not in order there's like those four things equally weighted that you need
to be working on that's the only thing that you should be worried about as the owner of the
business yeah and i do think that hire for your weaknesses first thing you should delegate is the things you hate the most.
If you hate payroll, then delegate that.
If you hate dealing with the call center, hire that.
If you really, really enjoy doing something in your business and it brings you great happiness, then keep doing it.
But you need to identify your weaknesses and find out what you hate the most first.
And then you hire that person.
I've got so many people that are
better than me almost everything in this company but that's what i also love about automation too
right automation is getting rid of the things that you hate we don't want to be doing but instead of
dealing with a human being that gets sick that has feelings that has emotions that you know is a human
being you have code that does the work for you. And, you know,
sometimes a code does break, but generally it makes less mistakes and it works nights and
weekends. It's just always doing stuff. So you can focus on higher leverage activities, right?
Yeah. And, you know, at the end of the day, I've seen stuff like I would never want to talk to AI
two years ago because it would say, how could I help you? Sorry, I didn't understand that.
Sorry, I didn't understand that. Please repeat that again. Please say something different.
Would you like to talk to an operator? But now I think you can actually handle a lot more.
So those pre-notions of what it used to be is like, you got to get... That's why I love the
opportunity. Right now, 2,000 baby boomers a day are retiring. 12% of them have businesses.
And they don't want anything to do
with the technology changing. They don't want to go through this. They're just like, look,
I was happy the way it was 10 years ago, 15 years ago, the yellow book. And that's why there's such
an opportunity. This is the golden years, the next five years, more opportunities as you're
seeing the largest generation that we've had in the United States start to retire.
Yeah.
And then taking these principles, these all work for any home service company, really.
I mean, it goes from answering the phones,
dispatching properly, parts on the truck,
making sure you got a truck that's running correctly,
the right trained technician.
I think, you know what's going to be obsolete
is developers, eventually,
because AI is going to develop whichever you want.
They're already started writing code.
I'm saying that I have more time that I'll be fixing garage doors than I think there will be advanced developers out there. You know, I thought the exact same thing. And I'm not
so sure because the way I always thought about developers where they were like, it's like Harry
Potter, right? They're a bunch of wizards, but their wands are their computers. And some of them
are way better than others.
But now they just have a brand new superpower, which is AI.
How can you leverage it?
Like, I'm looking at these AI agents, which are, it's AI that can actually do work for
you and book that flight for you and find the cheapest flight for you and actually go
through all the steps of booking it.
But the process of using it right now is a bit cumbersome.
You have to use a terminal. You have to. It's not an easy process to really understand,
right? But if you understand computers really well, you understand software, you have all these different models which you can connect together, which an average person might not be able to.
Now, having said that, you could use AI to teach you how to do it. And that's where prompting is
going to become so, so important.
And that's going to be the real skill.
How do you talk to the AI to get it to do what you want?
And that's where I actually invested a lot of my money just to learn everything that
I can about prompting.
And then for listeners of this podcast, I can share the documents that I have, where
I've just paid for all the stuff out there and understood like, what is the best way to use chat GPT?
Because if you don't use it properly, it can honestly get quite frustrating.
And then, you know, how do we get those documents?
We send me an email. It was there at cottonwoodautomation.com and I'll send it
to you. And, um,
that's, um, UZAIR at CottonwoodAutomation.com.
Yep.
And let me ask you this.
So you want to automate things in your business.
What is, like for me, it's the step one is whiteboarding and basically just go into a
think tank and come up with like an idea board.
But can you run down some steps of what you would do
when you're going to go into automate a process?
So yeah, the first thing I do is I whiteboard it.
I whiteboard the process that they have right now
that they're doing manually or not doing manually.
And I try to find out where like the bottlenecks are,
where the bottlenecks,
where the repetitive tasks that are occurring.
And then I figure out, okay, so we've got the problem here. We know where the bottlenecks? Where are the repetitive tasks that are occurring? And then I figure out, okay, so we've got the problem here.
We know where the bottlenecks are.
What software can we use to automate this?
I'm completely software agnostic.
I can use anything that's out there,
even make my own Python custom scripts.
It doesn't really matter.
Or even use browser automation if there's no API, right?
Then I like to break down the different automation tasks
and be like, hey, what's the highest leverage one? What one task can we remove and
save the most hours from? And then I go down the list that way or make more money from like,
for example, automated customer follow-ups. You got to have that. Make it one step further,
make it based on how they interacted with your brand or your company. How much money did they
spend? Are they an existing customer or a new customer?
And you can put them into different subcategories.
So that's kind of what I do for automation.
Love it.
Love it.
And how many companies are you working with right now?
Right now, I'm working with five.
Okay.
And so you've got a mobile mechanic that goes out and fixes things.
Is that right?
Yeah. And how many markets are you operating in? We operate in Western Canada in 22 different cities. And what's holding you
back from expanding that? I'm just curious. Okay. So that's a great question that my business
partner and I have thought about. So there's a bunch of tailwinds, I mean, headwinds for our business where I'm not
very bullish on. Number one is electric cars. They don't need as much maintenance. They just
don't, right? There's going to be more infrequent repairs. They're going to be higher value,
but they're going to be more infrequent. Number two is HVAC and plumbing and home services.
They have the crown jewel, which they have big jobs.
You get a new furnace or a new heat pump, you can make a lot of money on one job, right?
We don't have any of that. I have to hire skilled labor, put them in conditions they don't need to be in, and making $300 at a job at a time.
So it's a difficult to scale business with headwinds that are coming in the future.
And with all our automations and everything, we decided it's a difficult to scale business with headwinds that are coming in the future. And with all our automations and everything, we decided like it's a good business right now.
It makes us a good living.
But we asked ourselves, do you want to take the steps to make it an even bigger business?
Why or why not?
And right now we're leaning on like we like it the way that it is.
So with autonomous cars coming, being electric, do you think in the future you're
going to even need to own a car? I mean, if they could give me the closest car to me, they could
bring me to where I want to be. And at that point, why would you need a garage? Why not make that
livable space? The cars could drive themselves to a garage because garages have efficiency.
The one thing that the mobile mechanic does not have is efficiency. We're a quarter as efficient
as a typical garage.
So when you go to a garage, you have like 20 cars at once, and then you go crack it.
I know what you're saying.
I was just saying, for my business, the garage.
You're saying the mobile mechanic.
The way I see a mobile mechanic working for you is saying, I'm going to go work out a deal with Intel or Honeywell.
They're both in Phoenix.
And I will do all the oil changes.
We come to you. We will also check everything up and we will change all your filters, blah, blah,
blah, blah, blah. And that way you're at one spot doing a bunch of work and you know everything
they need. You know, they need synthetic oil. You know, this guy needs this. This guy wants this.
This guy wants this. These people need break jobs. And I would just stick to like six or seven
categories. I know there's not a lot of money in oil changes, but if it's convenient,
I'd pay double, especially if I was making a good living, because how much is your time worth?
Set an appointment, go there, wait for my car to be. Most of these people are making six figures.
How much does it cost to waste three hours out of your day? So I would look at it more of how do I
go to a place with a bunch of work and work out a price and a communication system that I'm doing all their work once a month.
Yeah, no, we have fleets like that and office spaces.
So, you know, when people back in the day used to go to an office building, they're all the same place, right?
So we had like office days.
We would come by.
They know we were coming by every Tuesday and they would fill out a form and take care of their car that day.
Leave their keys at the front desk. And it super easy no i like that i think that that
sounds like it has a lot of legs you know you volunteer for a lot of organizations you've
served as a former vp of toast masters international and the child uh a wish foundation i believe um
what does that do i mean obviously it's important to you to
volunteer but uh you know i don't think enough business owners get involved in the community
and volunteer and find a cause let's talk about that for a minute i think that the make a wish
foundation is incredible to be and so i mean a big brother big sister you spend time with children
that they might not have anyone in their life that is inspirational
to them.
And as business owners, we want to encourage more entrepreneurship.
We want to show them what life can be like as a community leader.
And you do that when you're spending one-on-one time with them on a weekly basis.
And it's giving back in a way that I like.
You spend an hour really making them feel special.
Listen to them. You're there just for them. And I feel that way that I like. You spend an hour like really making them feel special. Listen to them.
You're there just for them.
And you know,
I feel that way with cell phones.
I feel like a lot of people
are distracted on their phones
all the time now, right?
But in this time,
you're giving a child
like pure one-on-one attention.
And they need that.
They're not getting that.
In this world of distractions
and turn off your cell phone
and listen to what they're going through.
Adolescence is a tough time.
Yeah. But Toastmasters,
I did that because I think public speaking is an incredibly important skill to
have. And even though I love talking in public and never felt like,
you know, shy, it was a skill that I just want to continuously work on.
And that's why I signed up for that.
You know, I did a Toastmasters.
I did a couple of them and the only thing I didn't like is if I know my subject matter, like my master's degree, I could go talk about it.
They asked me what I do for a living, what's important to me.
I could kill it.
When you say talk to me about I want you to include a vegetable and Easter.
It's like more improv to me.
I'm like, that's more creative.
That's not going to make me a better public speaker.
When you say, um, you know, like if you say if you say um you know like that means you haven't prepared
for your speech and you don't have a story to tell and you're not focused on what you know the best
and you're not prepared and if you're going to work on improv speaking i think toastmasters is
great but for me i'd like to talk about subjects that i know that i'm a specialist at. And I feel like I do the best with that.
Yeah.
Well, actually, after Toastmasters, I started taking improv classes.
Table topics was my favorite part.
And table topics you don't know is that they give you a minute and a half to talk about
something that's completely given to you right there on the spot.
I hated it.
And then I started doing improv.
But improv was just like an extreme version of it right
you not only had to make stuff up you also had to be funny and play a character so I did that
for a while and I noticed that everything went up for me really fast but I couldn't get a wit
rid of the nervousness that I felt before every class I had three old people and a blind person
in the first Toastmasters and I was nervous but I'll get in front of 500 people if I'm talking about home service and I think twice.
So it's just interesting because I'm like, it's the weirdest feeling, but somebody wants
to get ahold of you.
Is the best way to do that the email?
Well, yeah, you can go email me at Uzair at CottonwoodAutomation.com or visit my website
CottonwoodAutomation.com and then you website, cottonwoodautomation.com, and then you
can click connect with me and schedule a call. I think a lot of people should at least email you,
get those forms and schedule a call if they've got something, whether they're looking to outsource or
automate a sequence. I think that's going to do amazing things. Is there three books that really
stood out to you in the last five years for business that really made an impact?
Well, your book, first of all, I was like, I'm not even kidding. So with your book, I realized
I'm like, you know, I should be paying my technicians the most. They're the killers of
my business. They're the revenue generators. So I was like, I'm going to cut costs everywhere
mercilessly. And especially on outsourcing everything and automating everything and
making sure I hired the best technicians, pay them the most, get them incentivized right, and give them all the tools they need to win.
And that's been my mindset completely.
The other point about that, just I think it's important that the audience understands that you want a guy that is pretty respectable looking because you want grandma to be able to trust him. You want
them to have a clean background check, a clean drug test, and a good driver's DMV record. You
want them to be technically advanced. You want them to be good at sales. You need to be technologically
savvy. You need to show up with a smile and you need to smell good and you need to have good breath.
And you need to be pretty articulate. You need to be a good conversation to be able to
tell a story i do believe that one a player in the home service industry could run circles around
three b players and one a will run 10 circles around three c players so they get the nail on
the head and people just like they're just a technician well they're harder to come by and
everything i just said is hard to come by it's not. And so if you can make it so they not only get a lot of money, but they feel valued and
they get to own a home and they get to participate and their ideas are valued.
What happens is you attract the best and it's so much easier to make lots of money in your
company.
And you don't have all the problems of a guy didn't show up or he's hung over or he's
taking the truck out tonight driving
and using gas the problems that a bad person that just you don't want to pay a lot to creates
without getting the right incentive program far outweighs paying somebody more and having no
headaches of business that runs when you're not there and i think book or not that's just real
life knowledge that you drop that i think is so important. Yeah.
And it always baffles me when people are like, I can't find good techs.
And I say, how much are you paying these guys?
And they're saying they're paying like, I don't know, 30 bucks an hour, a very low rate.
And I'm like, why don't you pay them more?
But like, I'm only charging 90 bucks an hour or something small like that.
Now I'm like, listen, first thing you got to do is increase your hourly rate, increase
your prices
so you can hire the best technicians
and keep them happy, keep them motivated
and just build a good company, right?
Well, no.
Number one, there's no turnover
with great techs that you pay, right?
Number two, it's so much more expensive
to rehire, retrain, put the ad out there,
wait for them to come.
The opportunity cost is significant.
Number two, that I would tell you is most guys are
afraid to have to train a guy from scratch and i think that's one of our biggest assets today
when garage service is you take a guy that smiles all the time he's happy he looks you in the eye
he's got the right tone he's just really sympathetic to your situation then we could train them the
skills now i know mechanics you can't just take a guy that's a busboy and training the skills but a lot of businesses you can and they're just so afraid to train they're so afraid what if i
train them and they leave because it's an investment into someone and i get it for like
you need a license to do the work like a master plumber but for most home service businesses you
should be hiring the people and training them on attitude. Yeah, because what if they don't leave and you don't train them?
That's going to kill your brand.
Absolutely.
The other book that I liked a lot is Millionaire Fastlane by Andrea DeMarco.
That book was the reason why I got into business in the first place.
I was just a typical engineer working my nine to five, being all happy with that.
And I read this book and the concept of scalability really hit with me because when you work for someone else and you want to make more
money, you have to ask for more money or work more hours, right? And you're going to be limited by
how much you can work and you're going to be limited by how much they're willing to pay you.
But when you have a business and you want to make more money, you have so many more levers,
sell new products, increase your prices, increase your locations. There's so much more levers. Sell new products. Increase your prices. Increase your locations.
You know, there's so much more you can do.
Scale up.
Hire more staff.
Spend more money on marketing.
Invest in yourself.
So that concept of business was really nailed into me with that book.
So those two books.
You know, I want to pull something up real quick because I take a lot of notes on different social medias.
And I took this little ad out uh or this listen to this listen to this after a decade who's the last person to get paid
when you own a business right because you only get paid if what if there's profit well that's
fucking risky because as an employee that isn't the case did you know get paid if what? If there's profit. Well, that's fucking risky. Because as an employee, that isn't the case. Did you know that even if a business files bankruptcy, they can't write off their debt to their employees? They have to pay them. So I guess that's risk, which is why it makes me laugh when people get angry at business owners. Like, I don't see you signing up to fucking go take that risk.
It's worth millions of dollars, yeah, because he worked his ass off for the last 20 years. I didn't see you taking that risk. Same dudes ever. Well, it's funny because a lot of people, you got a mindset that I believe in, but a lot of people
say, I want to start a business. Well, are you good at payroll? Are you good at recruiting? Are
you good at taking risks? Are you willing to put your house on the line? Because there's a lot of
entrepreneurs, but there's a lot of entrepreneurs that can make a great living, have security,
put their work jacket up at home, not take the risk. You know, we take a lot of risk and most businesses fail. That's, that's period. So I just, I agree with business, but I think
there's a lot of business owners out there. It's something like 95% of them have three or less
employees. And those odds aren't good that you're going to make it because everybody went into
business and I'm going to own a big business. No one said, I hope my business is me and two
other people. You know, I could challenge that. I big business. No one said, I hope my business is me and two other people.
You know, I could challenge that.
I don't think it's either or.
You don't have to have a big business too, because being a solopreneur is also a fantastic
business because you get the benefits of no boss or multiple bosses.
So you don't have to rely on one person and the benefits of no employees.
And you're really, really de-risked in yourself because when employees try to find a job,
it is, I think, equally hard to find a job
as is to find consulting gigs
and finding multiple employers, right?
They're going to help you with,
you can help with a specific skillset.
Or another thing too is get a job
with good working hours
and then work on your business on the side.
There can be in between things like that, right?
Well, here's the problem.
Is I ran a business with a couple of employees
and I burned relationships that were 24 seven.
And I literally, if I didn't read books, podcasts
and educate myself throughout the process
and go to networking,
like a lot of people go, I own my own business.
And I'm like, but they don't take vacations.
Their marriage is on the fritz. They're not a good parent. So when you own a business,
you're responsible for everything. If inventory gets stolen, if somebody gets in a car crash,
you are responsible. You better say, ensure you better stamp the license codes. You better make
sure you're doing SEO. You better make sure you're checking your GMB. You better make sure you're
getting great reviews. You better make sure that you're, all I would say is a business should function without you
after five years. Then is that really a business or is it a job? Because people are making a hundred
grand working 80 hours a week, literally not taking any vacations. And if that sounds like
somebody that you know, or somebody out there, all I would say is unless you can get down to 30 hours
and make a few hundred grand what's the
advantages if you don't have light at the end of the tunnel but you take all the risk you work all
the time you're working all the jobs you deal with every customer complaint you can make great money
and maybe it's just you're on easy street you're good at what you do you are a specialist of what
you do and you charge such a great premium. You're an artist.
Yeah.
Then I'd say go for it because you can't replace an artist.
They're special.
You know what I mean?
Yeah.
The person you're describing needs to get help. They need to lower their ego and they have to get help to get them out of that rut.
And I've talked to people about that.
And it's hard for them to comprehend.
It's like a mental hurdle that they have to go through, which is like, listen, I am doing this wrong.
It doesn't have to be this way. And once you get past that and you see the other end, for me,
I did that for the first few years. And I spent the last three years having like a midlife crisis.
Like what am I even doing? Because my business was growing and running so well without me doing
anything. I felt useless if anything, you know? And that's because I had all my systems, my automations, my offshore team,
everyone doing their work.
And that was a, I don't know,
the mindset changed for me
because that's what I want.
I wanted to get out of the day-to-day
as fast as I could.
Some people love the firefighting.
Some people feel like without me,
I solved the problem.
I solved 10 issues today,
but Olivia taught me that
the business is supposed to be vanilla.
There's not supposed to be a lot of issues whenever i get vanilla i start to grow extremely fast and
then new challenges present themselves then we got to re-delegate re-prioritize things
and that's why i kind of pause and gross i've got peaks and valleys yeah we're going real fast
valleys are when we're just trying to keep up with what we just built yeah that's exactly it right the plateau but then on top of that too having a job and having a side
business is probably the safest place to be because you can get fired overnight like you're describing
like if you don't keep everything up in your business you lose your business but if you don't
work hard at your job and your boss thinks you're lazy or for any or your boss looked at you the
wrong way they can take your livelihood away in a minute and what do you get two weeks severance well let me ask you
this if someone came to me and they said i'm thinking about starting a business i said what
further like i want to make extra money and i said hey listen i'll tell you what if you go to a b9
meeting and you start recruiting two guys a month i'll give you an extra 70 grand a year that's more
than a side business probably your first year and if you want more i'll give you more extra 70 grand a year. That's more than a side business, probably your first year. And if you want more, I'll give you more. If you figure out a way to do this, this, and this,
because I need people inside. You know, Jeff Bethel said, we've got so many entrepreneurs
that work for us to invent new ideas. Like Jeff Bethel didn't come up with Prime. It was one of
his engineers that came up with the Prime concept. And a lot of them that they came up with failed.
And that's the thing that I could use people that want to be the entrepreneurial
mindset and i'll come up with a million things for them to do but a lot of these guys are like
if i could just make an extra 500 bucks a month but yet they're spending 20 hours and if they put
that 20 hours towards and trust me now if you've got equity programs and you're giving out things
for people that are figuring out stuff, you know, I think we're both right. And I'm not arguing with
you. I thought you brought up a great point there, finding people that want to do entrepreneurship,
but they want to make more money on the side. So, hey, help me grow my business. I'll pay you more.
But the risk is still there. You could wake up one day and be like, I don't like your attitude.
I don't like the way you look tonight and fire that person. You could, you know, you got to get
to know who's the leadership staff and if that's what they got. And if that's who they are, if
you're working with the wrong owner, the wrong entrepreneur, the wrong management team, yes.
But I can tell you that we, most companies that are more than 20 employees, the attitude is not,
that's like saying you could go to the military, but you get kicked out any day. Well, yeah, but you gotta, you know, when
you become a large company, it's hard to fire people just because you feel like it, especially
in certain markets. Facebook, Google, Amazon, big companies, talented people, hard to get into.
They just show it that job security is not a real thing.
Well, what happens with them is they've got stocks, they've got the public they're reporting to. So no matter what, you might have to downsize. Look, if we hit World War III,
you know, job securities, listen, the owner is the last person to get paid. If there's money
in the bank when the monthly bills are paid, if there's no money, guess what? You're taking out
a loan. So I see a lot of
people going into a business, you should know that you've got a great probability that it's
going to fail and you're going to come out with more debt than when you started with.
You might borrow 10 grand from your mother-in-law. You might borrow 10 grand from your best friend.
Now you've got debt. I just think business owner has unlimited potential, but it's also got the
highest probability of loss. And going in saying you're a
risk taker is the first step taking calculated risks when you're going into business yeah but
honestly like i don't want to also downplay the support structure that i have my parents have
been extremely supportive of all my entrepreneurship goals my spouse everyone is just like they just
like keep doing this entrepreneurship thing forever so i wish I could say that I had like a really, a story of, you know, when you hear stories,
people that had like a real struggle and they had no choice and they started their business,
even sort of like your story. I can't say that. I feel like I had a really supportive environment.
I think that's also the norm when it comes to business owners too. They have to have support.
We like the stories of the person that had overcome all
the odds. But I think if you look at it, like you did a proper study, you would find that most
entrepreneurs probably had a very strong support system. I agree with that. I mean, some people
build out of this for, you know, cause they're desperate, but some people do it because they
have to, they have no other choice. They've got kids and they got to make it work. And it's
figuring out your why. I think people have to have a strong why, why they're doing it. Because if you're getting into business just for money,
it's the wrong reason. You've got to have a bigger why, because if you hate Mondays,
you're going to walk it. You're not going to be a happy person. You're going to hate your life.
You're going to hate everybody around you. It's hard to be a good person when you hate what you
do. So you're going to do it. It's something that you're passionate about, that you enjoy,
and that you get self-fulfillment out of because that way you have an abundant mindset.
But a lot of people go into work and they're like, F this, it's freaking Monday.
Now I got to go deal with all these nincompoops that are never going to be as smart as me because you never have the money to hire people smarter than you or you feel inferior to them if you do.
And a lot of people know what I'm talking about.
Interesting.
Yeah.
My friend told me, he's like, you want to be a small business owner?
Just don't do it for the money.
Do it for the lifestyle.
And I think that was it because that's what I think I have with this.
The money's not bad, but the lifestyle is the best part.
I'll tell you what, we were at a Thursday morning meeting and there's a brotherhood
here of people that pull you up.
And it feels good to be in a community of people striving to be the best version of themselves every day. And I think people need that. That's why I didn't do
as good at internet school. I like to be in a classroom. I like to make friends. I like to
socialize. I like that new ideas. I like to talk to the teacher in person and you lose a lot of
those things. It could be a lonely, lonely world. Victor Rancor, I talked to him. He went to work
for a different company because he got a
much higher percentage. Then he realized I lost all the infrastructure, all my friends. I didn't
know what I was making because there was no transparency. There was no systems in place.
And he said he hated it. And so once again, we're both right. You know, I love debate and we're not
debating, but I love because I could argue either way. It sounds like you could too. I think it's just identifying what you want out of life. Do you want true friends? Most people say
they stay at a company because they built the best friend outside of work. And that's why they
won't leave because they love what they do. And they love it. They get to hang out with their
friends and socialize and go fishing and spend time inside and outside of work. And I got to say
working with friends is amazing.
Yeah, that's exactly what I did in my business when I first started.
I hired my friends.
So every day going to work was a blast.
But since then, I've learned that that's not the best way of running a business.
So now I don't really have friends that...
They can ruin relationships.
Yeah.
But here's the thing, though.
You brought up a great point i actually wanted to get a job just so i could have friends again like at work and have
that camaraderie ship that you miss out on as a business owner because you can't be friends with
your employees it doesn't work but if anyone's listening to this they have like a group of
entrepreneurs that get together please reach out to me i'm looking for someone like that
there you go.
The hard part is I'm in Edmonton, Canada, right? It's not as easy here.
So I got to wrap up here. I got another call, but I love this podcast. I want to give you an opportunity. We know how to reach out to you. Got to read the Millionaire Fastlane.
Got to email you to get those notes. Anything else we haven't talked about that you wanted to share with the audience?
I think we hit the nail on the head on a lot of things.
I think that for a lot of business owners, they just have to see, like, go the mental hurdle to see how offshoring and how automation can make a huge difference to their business.
And I think that people think that the simple things can be automated, like who I got to, you know, it sends the CRM sends a code to my customer follows up with them. But the world of automation can get really, really deep. And it can be really, really interesting to for example, I saw you talked about your podcast to running different ads based on the weather and humidity. The rabbit hole goes pretty deep. So if you're ever thinking about my CRM does all this for me,
like it's worth exploring
and digging deeper on it.
It can make a big difference
to your business.
After this podcast,
I've got a lot of notes, literally.
Later on, I'm going to make
a bunch of emails
because I want to discover
what else I could automate.
So I've got this.
What I figured out I'm going to do
is I'm going to take each and every employee.. So I've got to this, what I figured out I'm going to do is I'm going
to take each and every employee. And if they've got more of a monotonous, repetitory job, do an
hour, record an hour of what they do and tell them if they come up with a solution, I'll still
have a place for them. They're still going to have a great job here. I'm not going to cancel people.
But what I'd like to do is make their life easier because if they build a way to scale their
position, it allows me to give them rewards and pay them a lot more.
So I'm going to work on a lot of these things.
And I really love this podcast.
And we've got to get together next time you're in Phoenix.
Make sure you call me.
A hundred percent.
It was great finally meeting you.
Yeah.
Thank you so much.
It really means a lot to me.
So have a great day, my friend.
I'll email you right now
because I want those notes anyway
and I'll get your cell phone.
Okay, sounds good.
All right.
Thanks.
See you later.
Bye.
Hey there, thanks for tuning into the podcast today.
Before I let you go,
I want to let everybody know
that Elevate is out and ready to buy.
I can share with you
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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.
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