Young and Profiting with Hala Taha - YAPClassic: Brian Scudamore on Turning Trash into Cash
Episode Date: April 20, 2022Brian Scudamore dropped out of both high school and college. But, at just 19 years old, Brian built a multimillion-dollar business that would come to be known as 1-800-GOT-JUNK?, the company that pion...eered the industry of professional junk removal. Brian then went on to use his success to scale two more home-service brands under his parent company of O2E Brands, WOW 1 DAY PAINTING and Shack Shine. Brian attributes his success to hiring the right people, dreaming big, and being willing to fail. Through franchising his companies, he’s also inspired thousands of entrepreneurs to live their dreams of owning businesses. In this #YAPClassic, Brian and Hala talk about Brian’s perspectives on financing a new company, why companies should all build their business like they plan on franchising, what elements must be considered while branding, and so much more. Topics Include: - Childhood and how he was as a student - Making your own luck and not taking no for an answer - Perspective on getting loans and taking on debt when running a business - Copying businesses and Scaling business - Story of Acquiring Wow One Day Painting - Elements to consider when branding - Story of 1-800-GOT-JUNK? - Brian on firing his team and starting over - The importance of customer focus - “The Painted Picture” - Brian on being a visionary vs an implementer - Building a business like a franchise - Brian’s secret to profiting - And other topics… Brian Scudamore is the founder and CEO of O2E Brands, the parent company of 1-800-GOT-JUNK?, WOW 1 DAY PAINTING, and Shack Shine. Each brand has franchise locations in every major metro in North America and Australia. Brian is the author of the books WTF?! (Willing to Fail): How Failure Can Be Your Key to Success And his second book, BYOB: Build Your Own Business, Be Your Own Boss. He is also a regular contributor to Forbes, writing about small business ownership, franchising, and building corporate culture. His companies have appeared on major media outlets including ABC Nightline, Good Morning America, Dr. Phil, CNN, The Today Show, Oprah, and CNBC. His story has been featured in Fortune Magazine, The New York Times, Huffington Post, and The Wall Street Journal. Sponsored By: Riverside.fm - Visit Riverside.fm and use code YAP to start recording studio quality sound and video and get 15% off a membership plan. WRKOUT - Visit bit.ly/yap_wrkout to book a FREE Session with a world-class trainer and get 30% off your first TWO MONTHS with code YAP 99designs by Vista - 99Designs by Vista - Head to 99designs.com/YAP to learn more and get $30 off your first design contest! Credit Karma Personal Loans - Go to creditkarma.com/loanoffers to find the loan for you Shopify - Go to shopify.com/profiting, for a FREE fourteen-day trial and get full access to Shopify’s entire suite of features Resources Mentioned: YAP Episode: #76: From Trash to Cash with Brian Scudamore https://www.youngandprofiting.com/76-from-trash-to-cash-with-brian-scudamore/ The E Myth by Michael E. Gerber: https://www.amazon.com/Myth-Most-Businesses-Dont-About/dp/0887303625 Brian’s Books: https://www.amazon.com/Brian-Scudamore/e/B07HYJ8FSS?ref=sr_ntt_srch_lnk_1&qid=1650302541&sr=1-1 Brian’s Website: https://www.o2ebrands.com Brian’s Linkedin: https://www.linkedin.com/in/scudamore/ Brian’s Instagram: https://www.instagram.com/brianscudamore/ Brian’s Twitter: https://twitter.com/brianscudamore Brian’s Facebook: https://www.facebook.com/bscudamore/ Connect with Young and Profiting: YAP’s Instagram: https://www.instagram.com/youngandprofiting/ Hala’s LinkedIn: https://www.linkedin.com/in/htaha/ Hala’s Instagram:https://www.instagram.com/yapwithhala/ Hala’s Twitter: https://twitter.com/yapwithhala Clubhouse: https://www.clubhouse.com/@halataha Website: https://www.youngandprofiting.com/ Text Hala: https://youngandprofiting.co/TextHala or text “YAP” to 28046 Learn more about your ad choices. Visit megaphone.fm/adchoices
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Welcome to the show Young & Profitors. I'm your host, Halitaha, and today we've got
a special YAP classic that I'm super excited to share with you all. But before we do that,
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Now back to this YAP classic, it was taken from episode number 76 from August of 2020.
And it features serial entrepreneur and author Brian Scudamore, who is the founder and CEO of 1-800-GOT-Junk.
author Brian Scudamore who is the founder and CEO of 1-800-GOT-Junk. I've taken my favorite parts of this episode and consolidated them into one shorter episode so that you can listen,
learn, and profit faster. And believe me, this episode is pure gold. If you're not familiar with
Brian, he's known for pioneering the professional junk hauling industry with 1-800-GOT-Junk.
He's gone to apply his O2E or ordinary to exceptional formula
to the painting and home detailing industries with wow-wonday painting and Shaqshine to other
huge franchise businesses that he's created. He's also helped to inspire thousands of entrepreneurs
live out their dreams by franchising his companies and offering entrepreneurs a business with
a proven recipe. Brian is the author of WTF willing to fail how failure
can be your key to success.
And his new book, B-Y-O-B, Build Your Own Business,
B-Your Own Boss, was published this year in 2022.
Brian has been featured on the Oprah Winfrey show
and the Ellen's Generous Show amongst other media appearances.
In this episode, I chat with Brian about his thoughts
about scaling and starting businesses, like why he thinks you should not take out a
loan, and why it's smart to organize your business like you plan to franchise it from the onset.
He also talks about the power of goal setting and willing something into existence, which
I'm a huge believer in. So if you're an entrepreneur or looking for some inspiration in terms
of chasing your dreams,
you've got to listen to this episode.
Brian has so much knowledge when it comes to business and scaling.
All right, so here's my conversation with Brian, and I hope you enjoy it.
You have a really interesting come-up story, and I think it's absolutely amazing.
I'd like to start with that first.
From my understanding, you didn't finish high school,
you didn't finish college.
What was your like as a child?
What was your childhood like and how are you as a student?
I was not a great student.
Now, I am a student of life.
I've always loved to learn.
If you interviewed my parents, they would say,
Brian was the most curious kid always asking questions
in fact I kind of drove them nuts and I'm getting paid back by I've got three kids and my youngest
He asked me questions nonstop. So I get it, but that's how we learn that's how I learn
I was never good with books. I was never good in school
kindergarten I wouldn't say I got a degree but a diploma and that and that's the only one I have. I've gone to 14 schools from kindergarten through to college or university. And what I
was like as a student was very ADD, I was the class clown, I dropped out of school because I just
found it challenging and not fun. But again, I want to emphasize, I've always loved to learn.
So my way of learning is conversations,
like this. I will learn tons out of this podcast because you'll ask me great questions that get me
reflecting on my success, my failures, the journey. I love learning. I'm constantly asking people
how they do what they do, what their passions are, and if I look at what motivates me and drives me, is I love being the coach.
I love being the person that inspires possibilities and others, especially if those people like
me were not great in the school system.
Yeah, I love that.
I think so many of my listeners are contemplating, like dropping out of school, and don't know
if traditional schooling is the right thing for them, and it's great to have an example like you and so many other entrepreneurs that can do it without necessarily schooling.
And it's more of like the experience. And like you said, the one-on-one conversations, the mentoring,
which kind of helped you get to where you are today. So I heard that you convinced a college to let you
into school and that you didn't finish high school. And you essentially convinced a college to let you into school and that you didn't finish high school and you essentially convinced a college to admit you without having that high school degree.
It's funny because I really relate to that. I did terrible in my undergrad and I remember I was begging the MBA director of my alma mater to let me into the MBA program.
I ended up getting like a 4.0 and doing great. But like I also did the same thing where I was just like, you know,
just took it into my own hands. Can you talk about making your own luck and if you have any other
examples of how you've made your own luck and didn't take no for an answer? Yeah, so I believe that
people need to work at an opportunity that they see for themselves. If you've got the spark and you
say, okay, here's my opportunity, which at the time was getting into school, was getting into college.
And why I saw that opportunity or wanted that was all my friends were going.
I was the only one who didn't graduate from 12th grade, and I said, you know, I'm one course short from graduating.
I got to figure this out. And you don't often get second chances.
So I wasn't going to go back and complete another year
just to get that one course.
And I didn't want to miss out with my friends.
So I went to the admissions office of the college
and had three different conversations with them,
pretty much begging them to let me in.
I said, listen, I'm smart enough.
I get it.
I miss this one class, but I can do this.
And I wrote them a letter in the end
that they liked and appreciated. And they said, this guy's got ten this. And I wrote them a letter in the end that they liked
it appreciated. And they said, this guy's got tenacity. Let's give him a shot. Now, little
did they know that years later, I would not actually finish that degree as well and drop
out. But I guess they liked me and they liked my perseverance and off I went. Now, ironically,
while I talked my way into university, I had to find a way to pay for it.
My father is a liver transplant surgeon.
He certainly came from very humble beginnings, but at that stage, when I was going to call
a jumpsuit, he could have paid for it, but chose not to.
He said, Brian's got to learn a lesson here.
He has not finished high school.
It's not going to be a good return on investment.
If he really wants to go, he can pay for it.
And so I was in a McDonald's drive-through of all places, saw this beat-up old pickup truck
with plywood side panels built up on the box, and I looked at the truck and said, that's
my ticket to pay for college.
I talked to myself in, I now found the money by creating, or would have the money by creating
this business, which at the time was called the rubbish voice.
It was just me, I had a vision for something bigger and off I went hauling junk and within
a couple of weeks the business paid for itself and by the end of the summer I had enough
money for college.
I love that. Yeah, I know about that story and I know you only paid $700 for your first
truck, which is such a little investment. And so you probably ended up paying that back
like very shortly after. What's your perspective on getting loans and taking on debt when running a business?
Did you purposefully not take on any debt and build it really organically just based on your cash flow?
Or was that just like an accident?
No, it's all the money I had was $1,000 in the bank.
So enough to buy a pickup truck.
I had $1,300 in repairs within a couple of weeks.
So while I did recoup the investment,
I also then had more money flowing out of the bank account
to fix my truck.
But I'm a believer that if you're gonna get out
and start a business, start within your means.
If you've got a hundred grand in the bank,
and you think you can make a business work,
and you don't mind putting your life's savings on the line? Great. Your 401k, whatever you need to do, but don't
overextend yourself. I don't love the concept of people getting out there and
raising money, A, because it's not their money, and B, because you need to
understand the value of really being connected to every penny that you're
spending and spend it frugally
so that you can build out the business in a sustainable way.
When people look at any of our franchises, I know you mentioned my parent company I started
called O2E Brands.
O2E stands for Ordinary to Exceptional.
We took first the Junkermobile business, a very ordinary space, and made it a very exceptional,
professionally run business through service
and through finding the right people.
We're doing that in window washing with Shaq Shine.
We're doing it in the painting space with
Wawwandae Paining.
When franchise partners come to us and say,
hey, Brian, I want the proven recipe.
I don't want to reinvent how to grow a business.
I want to learn from you, your team, your franchise partners.
But I don't have a lot of money. We like that. We know people need enough money to invest in a
franchise fee and to grow their business, but we want people that come that go listen. I've got
about $25,000 in cash. We can figure out how to help them get the rest, but they're young,
they're hungry, they're ready to grow something. That's more important than having a whole stack of cash.
Yeah, I totally agree.
It's so important to know how to be resourceful to, like you said, appreciate every single penny,
know where it's going, be frugal.
I definitely agree.
I was looking at your LinkedIn this morning.
And by the way, Kudos to you for, I know I had technological problems in my office yesterday
and we couldn't make
this work and we had to rebook to today.
So my fault.
But you did and ask you anything on LinkedIn.
And I thought, you know, great way to go, hey, you've got a free block.
What are you going to do to work it to growthics?
And I noticed that you're LinkedIn, you know, for six months, you were at 200,000, I think,
in followers.
And now you're at 200,000, I think, in followers. And now you're at 53,000.
Clearly, you understand the value of hard work
to build something.
And it takes time.
And it takes dedication and commitment.
And it's the same thing whether you're growing a following
or whether you're growing a business and spending money,
you've got to do it organically, because then you
can appreciate the value of how hard it is
to get every dollar or every follower.
So just wanting me to shout out. Oh, thank you so much, fine. That's so sweet. I really appreciate that. And coming from you, like I can't even,
you know, thank you so much. It's so nice. I want to talk about how you have sort of like
copied other businesses and how you decide if a business is ready to scale. So you were in
that McDonald's. You saw a gritty pickup truck with like a sign on it
for junk removal.
Then you had the big idea, you know, I'm gonna scale this,
I'm gonna get a bigger truck, I'm gonna do it better,
I'm gonna do better grill and marketing,
and I'm gonna scale this and it worked, you know,
you're in every metropolitan city in the US right now,
you're obviously huge.
And I think you did something similar with one day painting
where you saw somebody who did it right and you're like, I can help you make obviously huge. And I think you did something similar with one day painting where you saw somebody who did it right
and you're like, I can help you make the scale.
So can you give us a story of how you copy it again?
Maybe copy is not the right word,
but how you kind of took someone's business idea
and helped them scale or saw the potential in a business
that could scale.
And what do you look for in a business
that could potentially scale?
Tell us the story about one day painting because I think it's really interesting.
Yeah, lots of great questions there. So what I did is I think I've got an ability to see
opportunity and to look at things differently. So when I saw Mark's hauling that truck in the
McDonald's drive through, it was, hey, there's an idea to pay for college. And yes, I went out and
copied the model and I bought a truck and started hauling junk exactly like Mark did. But when I got a tune to an opportunity, the bigger
ideas you said was, how can I be the FedExa junk removal? Clean, shiny trucks, friendly
uniform drivers, on-time service, up front rates, taking the industry to a level that had
never been seen. And that bar to me was exceptional. So again, my company ordinary to exceptional O2E
brands. I said, I'm going to make this exceptional. And we're going to scale a business where we have
people come in who are investors, who are owners and partners, franchise owners who will build
the model out in their city. Paul Guy, who was the first franchise owner, built a million dollar
business in his first full calendar year. Today, he's got about $60 million worth of revenue across his franchise territories.
I then said, what is the opportunity in a new space?
If I was in 1-800-GUNK for 22 years at this point when I started to look for another
opportunity, and it was serendipitous.
It just hit me, but I needed to get my house painted.
I didn't want the disruption of someone comes in your house and it takes two weeks and they practically move in and
become part of the family and all that sort of stuff. And so I got some estimates. I had three different people that I found through Facebook friends who said,
here's companies I would recommend. The first two came in and
I would recommend. The first two came in and smelled a cigarette smoke, showed up late, didn't give me confidence that they were going to do the job well or quickly. But the third person
impressed me. Jim comes into my front door, he's uniformed, he's got the shiny van outside,
his company was called One Day Painting. And he said, listen, Brian, prices same as everyone else.
I've done this for 22 years. My quality is the same or better than everyone else.
But what got me excited, the kicker,
was that he said, when we agree on painting day,
I will give you back your home freshly painted
and transformed at the end of the day.
And I said, how is that even possible?
How do you paint a home in a day?
It's not possible.
But I signed up and I said, great, let's do this.
I liked Jim and
Sure enough into the painting day 6.30 p.m. I come home moldings trim
The walls one wall needed three coats because of the dark color that was there. He impainted my entire house and
I was I was so wow that I said I got to get in on this. I can help you grow
I acquired the company and we renamed it wow one day painting
Because that's the feeling I felt and I could see other customers across North America feeling that same thing
And so what I guess what was different about what we would do things is this system this model of
People think you can't paint a home in a day that you're compromising quality. You're rushing
Absolutely not everyone knows you can paint one room with one person in a day.
If it's a big room, maybe you need two people.
If you've got 10 rooms, then you need 10 people.
It's a numbers game.
Nobody's bumping into each other.
It's just a coordinated effort
that gets this job done without disruption
and people walk out saying, wow.
And so when we look for franchise partners
to then take our system and model and grow it.
We're not looking for people to be painters. We're looking for people that see the opportunity
like our early day franchise partners with 1-800-Gutjunk who say, I want to build and grow a team.
I want to build an empire in my city and I want to build some wealth and freedom for myself.
So basically, like you really like his system, you really like his attitude and you thought,
like, this is a person that can grow a business
That's really cool. Well, I loved his idea of doing it differently
So you look at
Businesses that come in that say we're gonna transform a space
One-world familiar with Netflix. You didn't need to go to the video store anymore and go get that tape and bring it home and return it and have late fees
They said listen, we're gonna stream movies and look what they've become today.
It's taking a model and saying, how do you reinvent an age-old space like painting? I mean,
even during the pandemic that we're in today, people will forever need painting. No matter what's
going on, we're trying to find innovative new ways to get in there.
Virtual estimates.
We're doing estimates where someone walks around with their iPhone on FaceTime or Zoom showing
us their home and we're able to give them an estimate.
We're finding unique ways to deal with old problems and how to solve them, which is a big
challenge and it's something I enjoy being a part of.
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I want to touch on a point that you briefly mentioned.
So 1-800-junk used to be called rubbish boys.
Your painting company also had a different name in the beginning.
So what do you think about when you're naming your brands?
What are the important elements to consider?
Yeah, so I think it's naming the brands and what they look like.
So let me start with Shat Shine as an example, and then I'm going to tell you a 1-800-Junk
story if I can.
So Shat Shine, similar type of situation as well
when they're painting.
How did I find the business?
I was looking to get my gutters cleaned out.
I found a company.
It was difficult to find someone, but a friend introduced me
to someone that was building this business called Shaqshine.
I loved the business, saw the opportunity to also scale
and grow it.
And I like the name, the tongue-in-cheek sort of chat shine.
Your home isn't really a shack,
especially some of the ones that we watch, Windows, for.
But I didn't like the look and feel
of the design of the logo.
And so I said to Dave, who started the business,
I said, if we were to partner together
or require your business, I'd want to redesign
the look and feel of your entire brand.
Are you open to that?
He said, yeah, I think I'd be open to it. I don't know if he really was. We then went off and
hired a designer before buying the company. Noil Fox comes in and completely redesigned and
revamped the brand. I presented it today. Dave's like, man, we are doing a deal. He bought into how we repositioned the look and feel of his brand.
So words and visuals are everything.
How we represent ourselves to the world is incredibly important,
and it needs to be consistent.
So again, the importance of branding,
and I'll tell you a quick one, I kind of got junk story.
We went from the rubbish boys to,
I want to expand out of Vancouver where I started the
business. I was born in the United States. I wanted to expand into the United States and I thought
the word rubbish was more of a British Canadian term. We had to come up with something different.
And so our phone number at the time was 738 junk. And I said, what could we use in the United States
as an 800 number? And we played on this old ad campaign called the Got Milk campaign that was in the 90s.
We said, ah, one 800 got junk.
And I got so lit up and excited about this idea.
I immediately called the phone number and it wasn't available.
And so I'm just like, ah, I got to figure out how to get that phone number.
So I started making phone call after phone call to AT&T,
the phone company, trying to find out who owns the number.
I was persistent as could be.
Well, not just making phone calls,
I hired a designer to design the logo exactly
as we have wanted under God's junk today,
as part of solidifying the vision
that I'm going to get this phone number.
I'm going to figure this out.
So at the end of the day, the person that owned the phone number
was the Department of Transportation in Idaho. Government owned my number. Oh my gosh, I'm never going to
get this. And so I took a route where I tried to sort of solve things and I went to the
phone room. I called up and I asked for their phone room. And sure enough, government
has someone running their phones. And Michael in the phone room after three calls finally
said, you can have the number. It's important. I don't know why you want it, but take it.
And I called him a couple of days later after all the forums were signed with AT&T to thank
him.
He was no longer with the company.
I have no idea what happened, but I had my number.
I got it for free and it was sheer determination that paved the way for the starting of the
one in Thunder Gut Shunk brand that we built today.
That's amazing.
I love that story.
And it's just another example of how you took things in your own hands and you made your
own look.
You wanted it.
You went out and got it.
You made the phone calls.
A lot of people probably thought you were crazy.
Like you're never going to be able to do this.
You're never going to get it.
But you just used your charm and you're grit and did it.
So it's so many great lessons to learn from that.
Yeah, if you really want something bad enough and you can see the picture in your mind
of pure possibility of what it could look like, you figured out and you stick with the
program, most people would have given up after a couple of phone calls trying to get the
number.
Yeah.
I didn't give up till I got it, which was 60 phone calls.
Wow.
That's amazing. It's such an easy to remember name.
Everybody knows 1-800-GOT-Junk.
It's like 1-800-Contacts.
It's up there with 1-800-FLOORS.
Sure.
Huge.
So congrats.
Let's go back to 1997.
So you were still the rubbish boys at this time.
And you hit $1 million in revenue.
And at that point, you were actually, you were doing well.
I mean, a $1 million business is not too shabby,
but you were misaligned with your team.
And you ended up firing nine out of 10 employees
from my understanding.
Why did that happen?
Why do you think that things kind of got to that level
where you felt like you needed to get
right of your whole team?
How did you decide to do that?
And what did you do to build your company
back up after that?
Yeah, it was one of the darkest days
of my junk removal career, if you will.
It was five years into the business.
It was 1994, we were a half a million in revenue.
And the way I like to explain it
is everyone can relate to the one bad apple
spoils the whole bunch saying.
And I probably had, I had a team of 11,
and I had nine bad apples.
I didn't know what else to do.
I'd lost hope in my business.
I wasn't having fun any longer.
I wasn't enjoying the people I worked with.
Now, I was the only one to blame.
I'm the one that hired them.
So I sat them down at a morning meeting, all 11 people,
and I started with two words. I said, I'm sorry. I'm sorry that I've let you that hired them. So I sat them down in the morning meeting all 11 people and I started with two words
I said I'm sorry
I'm sorry that I've let you down failed you haven't given you the love and support that you needed to be successful
Maybe I didn't even bring the right people into my organization
But the only way I knew to solve things was to start again wipe the slate clean and get rid of my entire team
They didn't love it, but I did it with a heart. I treated them fairly.
I was transparent and honest,
and I took it as a big learning moment for me.
So as the leader, the lesson for me
over the next six months as I was rebuilding the business
was it's all about people, finding the right people
and treating them right.
Now, you mentioned my book WTF willing to fail.
This was a WTF moment if I've ever seen one.
It's sucked trying to rebuild the business, trying to hire people again, but it gave me
a fresh start and opportunity to find nothing but happy, smiley, optimistic people.
Our hiring practice today, the number one thing we look for, happy people.
The second I get onto your podcast yesterday, when we said hello, I mean, you're smiley, you're energetic, it's awesome, right? Those are the people I want
in my world as my friends and connections and so on. And so I went out on a path of chasing down
happy, optimistic people. We hire an attitude, we train on skill, and we build something bigger and
better together. So while it was a dark dark day a dark six months of rebuilding.
I'm sure glad I didn't have to take the thousands of employees we have now make that kind of change and really taught me something.
Yeah, I love it. I heard you say something on another podcast that you're slow to higher quick to fire.
And I love that I think that's so smart, like taking your time, making sure you actually know
someone, making sure that you enjoy spending their time, that you like their energy because energy is
contagious, right? Absolutely. And when I say slow to higher, quick to fire, it's not like up,
someone's made a mistake, boom, you're out of here, you're fired, you know, it is very much,
we still take our time to do any sort of changes right and make sure we've given
someone a chance to correct, but we also don't waste our time.
There's nothing worse than in a manager or a leader's life bringing someone into the
company.
When you know it's not going to work, cut them loose, free them up to another opportunity,
help them find another opportunity.
Let someone go recently, it just wasn't the right fit, but I did believe
they'd be the right fit somewhere. And I was helping coach that person through a new opportunity.
They're good people. Let's help them. But it's not always meant to be and make sure you make that
decision sooner rather than later. Yeah. Talk to us about the importance of customer focus.
Because I think that one of the reasons why you actually let these people go is because you felt like they weren't customer-centric. You felt like
they were misaligned with your value proposition to your clients, which is like, you know,
go above and beyond, make them super happy, give them, you know, great service. Tell us
about the importance of that to you and all of your businesses and how you implement that.
Well, I think as someone who's a consumer myself,
I enjoy when people treat me in a friendly, happy manner.
I enjoy when people do what they say they will do,
which is rare in this world of business.
There's so many experiences we have
where a promise was made and it wasn't delivered.
So some of my favorite companies, FedEx,
anytime I've ever had to career something anywhere
in the world, I mean, it just,
it does show up on time.
And it's amazing.
They're slogan in the early days was the world on time
and they deliver on that promise.
Starbucks, the drinks are done right.
People are friendly.
If they make a mistake,
they give you a free drink voucher for next time.
They just do the little things to treat you in a way
that you walk in and you've given them the customized drink of choice that nobody else on the planet
drinks.
Just you've got that recipe, but somehow they remember it the next time you come in and
they treat you by name.
I think what a business does the little things right that helps like the examples I've
given of those brands growing and dominating the world.
So the thing that motivates me the most in the world besides my family is building
businesses with amazing people that want to be a part of something, that want to join
our movement of building great businesses, but they have to understand that platform of
exceptional customer service.
That's the bar.
When someone reaches out to me as a CEO and says, hey, there was a mistake, something went wrong.
The first thing we do is we own it.
We take responsibility for that mistake,
and then we say, how do we learn?
So this doesn't happen again.
Humans make mistakes, it happens.
But it's how you care about the customer.
And if you can truly care, that's how things grow and scale.
And the last thing I'll say is a philosophy we have,
which has been something we're proud of,
and I think something that's been very impactful
in our growth.
People often say the customer's always right.
They, that the customer's the most important.
I disagree.
I think the people, your employees, are the most important.
So on a hierarchy, I believe, take care of your people.
They will then take care of the customer.
And if you take care of the customer,
they will then take care of the brand and if you take care of the customer, they will then take
care of the brand, both growth of
profits and revenue.
And so the most important person
in our entire organization,
it's people finding the right
people and treating them right.
When they get it and they've been
treated right, they will treat the
customer with love and respect.
We'll be right back after a quick
break from our sponsors.
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Hey, ya fam!
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You mentioned it a few times that as you were trying to grow your business, you really envisioned
it as the FedEx of junk removal.
And another thing that I heard you say before is that you really wanted to get on the Oprah
Winfrey show as well.
And so you did a lot of visionary things where you put something out in the universe and
I'm not sure what your practice was if you wrote it down, if you had a vision board,
what it was. But you basically put these things out there
like I do this all the time.
So I want to be the female Tim Ferriss
and I keep saying it out loud
and I keep saying it every day.
Because I wanted to happen, right?
So tell us about how you kind of set big, hairy, audacious goals
and what you do to kind of make sure
that you subconsciously take the actions to make that happen.
Yeah, so I discovered a process.
I didn't create this, others use the same type of process,
but I stumbled into it.
I call it the painted picture,
so that would be my language for this.
1997, eight years into my business,
I was a million in revenue, which was exciting.
I had the right people now in my business,
but I just felt stuck.
I felt like it's junk removal.
I'm a college dropout, I'm a high school dropout.
Can I build this business?
Do I want to?
What's the potential?
So I went away for a retreat, and I wanted to be creative and solve this problem and just
reflect.
So I went to my parents' little cabin.
It was a tiny little beat up place on Bowen Island about an hour from Vancouver. It was a nice sunny summer day, September, and I sat out on their dock, and it was in
a doom loop.
I was depressed and just feeling bad about myself and my business.
I said, what if I can imagine just pure possibility?
Forget all the negativity.
What if I could build something great and amazing what could that look like?
So I took a sheet of paper and I started to write down not what I hoped to build but what I was going to build in five years time by the end of 2003.
So I started with the date December 31st 2003, Brian's painted picture of 1-800-GOT-Junk.
I said we'd be the FedExa-Junk removal because had that bar of, we had ugly, beat-up-old,
dirty trucks.
But what if we could have clean, shiny, well-branded trucks like FedEx?
I said, we'd be on the Oprah Winfrey show.
First of all, I loved her as an entrepreneur and as a leader and an amazing woman, and I
thought, I'd love to meet her.
But, wow, imagine if she helped propel our brand into the universe.
Yeah.
And I imagined all these things of our culture,
how we treated people and the franchise owners
and the millionaires we would build in support in this world.
And so I took that painted picture.
And after I wrote it, I went from pure doom to,
this is unbelievable, I can see this, I can feel it.
And I get goosebumps when I even retell the story.
I took this sheet of paper, my painted picture,
and I brought it to groups of people,
my friends, family, employees, different people,
and I shared the painted picture,
and I said, what do you think?
I was all excited.
And I had two sets of people.
One group said, Chi-Brian, top 30 metros in North America,
getting on Oprah, being the FedEx at Junkermool.
I think you're smoking some hoke dope like this.
This isn't gonna happen. And then I had the other group that
said, wow, this is unbelievable. How can I be a part of it? So I actually had
employees leave because they didn't think that I was grounded in reality and
that we were going to accomplish what we set up to accomplish. But we did. Every
single thing in that painted picture, 96% of it. By the end of 2003, we hit the top 30 metros in North America.
We were the FedExa junker, but nobody was near our size.
And I got on the Oprah Winfrey show and got to give her a big hug and had
four and a half minutes of fame on national television in front of 35 million people.
So my process is dream it.
See it in your mind.
Don't let doubt get in the way.
You say you wanna be the female version of Tim Ferris.
I mean, that's part of it is just talking about it.
And this will happen, you'll find somebody.
Have you met Tim Ferris?
No, I love to, but not yet.
So you're gonna have somebody who goes
and any of the audience that's listening,
if you know Tim Ferris, you gotta introduce this amazing business leader and woman to Tim. So let's make it happen. But part of it's
just throwing it out to the universe. So I believe we help each other as entrepreneurs. So
from a painted picture perspective, if I can ever help anyone that's out there and you want to see
my vision that I've just talked about, go on to LinkedIn, follow me or go to Instagram, wherever you need
to do, and send me a note saying, painted picture.
And someone from my team will send you a copy of our painted picture and an article I wrote
that goes into more depth of how to create one.
But huge fan of vision, every successful leader and person in this world has had a clear
picture, not how to get there, but a clear picture of what there looks like.
Totally, I think it's so important, like you said,
have a clear vision, say it out loud.
I also think it keeps you accountable.
I purposely say I'm gonna be the female version
of Tim Ferriss because I feel like if I say it out loud,
I hold myself accountable to all my listeners,
all my fans, for me to accomplish,
you know, as big as things as he does.
So I love that, I love the way that you do your vision board
with that wall and painting.
That's amazing.
Let's talk about the interplay between being a visionary
and an implementer at your company.
I know that you actually don't do your operations
from my understanding you hire outside COOs
for your brands and presidents.
So why did you decide to do that?
And how did you decide to do that and how did you decide to do that and why
do you do that? Why were every hat in my company up to a million in revenue maybe even up to a
couple of million and then I started to realize there's things I hated to do. There's things I
wasn't good at and as the owner of the company it doesn't mean that you're the best at everything
usually far from it and so I was in my own way.
And I realized in about 2008 when I had a COO in the business that wasn't the right fit
any longer and I got that person out of the business after 14 months, my franchise bit
just wasn't the right fit.
My franchise owners started to say, Brian, what are you doing here?
You just got rid of a COO.
You're not the guy to take it to the next level.
We're here because you're a vision,
but you can't execute us out of this situation.
And so I got out there and I said, okay, what am I good at?
I made a list.
What am I great at?
What do I love to do in a business?
On the other side, what are all the things
and bad at that a business still needs?
Or that I don't like to do?
And I went and found someone that was great at these things. And so I hired
Eric Chert, after interviewing 75 COO candidates, I found someone who was the right leader for me.
He's been around eight years. I sure as heck hope he'll be around forever. We took the company from
100 million to over 400 million in revenue together. And it's super exciting when you've got the
right fit. So I think businesses often have a visionary
and an implementer.
I'm not graded execution.
I've done it, but it's not my deal.
I wanna be the idea person.
I wanna look for new brands.
I wanna find great franchise partners
to build something bigger and better together with.
If you focus on what you love to do and what you're best at,
stay in that niche.
That's how you really grow and scale an awesome business.
Yeah, I think it's so hard for people
when they're first starting out with their business.
You don't have a lot of resources,
so you're wearing a lot of hats.
And I think it's really hard to let go,
but I think it's like you said,
it's super important once you start to actually make money
and you can afford to hire experts and outsource them.
You really gotta think about like,
what is your core competency?
Like, what am I really good at?
What can nobody do better than me?
And then what is a time suck?
What makes me feel drained after I do it?
What am I not that great at that somebody else
probably would love to do and would be passionate about?
And kind of make sure that you hire the right people.
That's how you scale like you said.
So I think that's great guidance.
I want to talk about franchising.
I know we don't have that much time left,
but I do want to take your brain.
Tell us about the franchising model.
Why you chose that direction instead of going
just being like a corporation
and what the important elements of a franchising model are.
And also, I've heard you say in the past
that like everybody can implement principles
from franchising in their business
no matter if they're a franchising business or not.
And so I think that's also important for people to kind of get like the main principles
and why it's helpful.
So two things I love about franchising.
So I grew up with McDonald's being everywhere and I had admired Ray Crocs business model.
He took the McDonald's brothers and said here, I can systematize everything with you and we can scale this incredible brand together. What I loved about what Ray
Crock did is he brought owners into his business. He said, listen, you want to build
something, you want to build something in this town or this city, I've got the
proven recipe. And they matched up the proven recipe and the systems with the
people. The ability to have someone who's got skin in the game and watch them grow and develop
beyond their wildest dreams, that's what I love about franchising.
I also love the fact that franchising is about systems.
What's the best practice on how you do everything?
So with 1-8 Thunder God Junk, I read a book called The E-Mith Revisited by Michael Gerber
highly recommended to anyone. I looked at that book and I said, okay, he says,
build your business out like a franchise. Even if you don't anticipate you'll choose that model,
have all the best practices documented. So I said, how do we answer the phone? How do we price jobs?
How do we market the business when things are slow? Everything had a one-page best practice
of here's exactly how we do things. It started, the business started to look, feel, and
act so much like a franchise and the consistency and the branding and the
look and feel and personality of our people. So we then said, okay, let's look at
the franchise model. And Oprah and others got, we got great publicity and that
franchise engine started to roar.
And people started to come to us.
And we said, what we offer is this proven recipe.
Many entrepreneurs want to figure things out from scratch.
That's part of what drove me, as I want to invent things.
A lot of people want to make money and have freedom and lifestyle.
They want to control their own destiny.
They want to prove in recipe.
They don't want to waste time figuring it out.
So again, to your unique ability and do what you love best, taking a recipe and executing
is amazing.
Some people want to bake a cake and they want to prove in recipe and boom off they go.
Some people want to invent different recipes and figure out, you know, what kind of cake
could I invent?
Understand who you are and then figure out what type of business is a franchise, is it
a corporate startup or whatever you might be interested in.
I love your example of how you guys created all these best practice, one sheets based
on all your little processes big and small.
That really inspires me.
I have three new interns, so they have a new assignment to look at all the different
areas of the podcast and our agency and come up with processes because it's so important
to train to new team members and to just like have efficiencies.
And like you said, that's the only way you can really scale.
Very cool stuff.
Awesome.
Thank you.
So, my last question to all of my guests on the show is, what is your secret to profiting
in life?
I think it's a grow where you're planted. all of my guests on the show is, what is your secret to profiting in life?
I think it's a grow where you're planted. I heard that from Vern Harnish, a mentor of mine.
And Vern said, you know, listen,
like you can entrepreneurs get this,
you introduce me as a serial entrepreneur,
which I don't want people to think I'm jumping around
from business to business.
I have three brands, I also have three wonderful kids.
You stay in this situation where you go, these
are all home services. They are all taking ordinary fragmented businesses and making them
exceptional. By sticking to our knitting and staying planted in what we can do best,
that's what I want to own. I think one of my secret formulas has been to not be driven
by money. I like the freedom that money can provide
of a cabin I've got here in Whistler
that I love to ski with my family,
but I'm not a fancy car,
or a fancy boat,
travel the toys type person.
I'm driven by building things with amazing people
and having fun experiences together.
And the less I became driven by money,
the more the money just started flowing to a point
where you're like, what do we do with all this?
Let's invest, let's grow, let's provide amazing opportunities.
So I think those would be what I'd leave you with is understand what your best at and grow where you're planted.
And then understand what really motivates you. It's not for me the money. It's the watching entrepreneurs live the dream of business ownership.
That's what gets me out of bed in the morning.
Brian is one of those people who I could talk to for hours about entrepreneurship and building
companies.
Brian is actually one of my clients at YAP Media.
I run all of his social media.
So he's a great guy.
I know him personally.
He's just a fantastic entrepreneur. I'm super excited that I'm having him back
on the show next Monday.
We're gonna be talking about his new book,
BYOB, Build Your Own Business, Be Your Own Boss.
And it's super insightful.
So if you love this episode,
you're gonna definitely enjoy next week's interview.
So be on the lookout for that dropping next Monday.
All right, so let's jump into some key takeaways from this YAP classic.
For me, the things that stuck out was some of the branding guidance that we got in this
interview and some of the lessons that we can learn from Brian.
As a CEO of YAP Media, I know that branding makes all the difference.
And when I was yapping with Brian, who's an expert in branding, it really lit me up.
We talked about why Brian rebranded Rubbish Boys
to 1,800 Godjunk and why he gave Shaq Shine a facelift.
So I wanted to point out that you can't be afraid
to rebrand.
Sometimes that makes all the difference.
We get really connected to our ideas,
whether that be a logo or a company name.
But I'm here to tell you that sometimes you've got to be
willing to widen your vision and let go
so that your company can succeed. And that means letting go of any sunk costs that have already
occurred, whether that be time, money, or effort. This is called the sunk cost fallacy.
You're never going to be able to get that time, money, or effort back that you spent on your
brand, right? But you need to make the right decision for you now. And since you're never
going to be able to get that time money or effort back, you don't need to worry about
the old stuff that happened in the past. You just need to make the right decision for
your future right now. And sometimes that means choosing a new brand that resonates
stronger with your audience, choosing a new name that resonates stronger with your audience,
choosing a new logo are colors that might resonate stronger
with your audience.
And so they've got this thing called Kill Your Darlings.
And this is a common phrase that writers and editors use.
And that's a reminder that sometimes we get too close
to something that we can't even see
that it's not working at all.
So as you're starting your company, building your brand,
you gotta always make sure that you ask outsiders for their opinions
I love to do this when I first started a young and profiting podcast
I had a Slack channel a private Slack channel that I invited my fans on I had about
500 fans in there and I called it gap society on Slack and I'd have people vote on episode titles
I'd have people vote on new cover artwork for our podcast
I had people vote on our logo.
And I really got feedback from my target audience to make sure that I designed this podcast
to the format, the topics, guests, even our look and feel as a brand in the way that you
guys actually wanted it.
And so in the beginning stages, I was really keen on getting that feedback from my audience.
And now I just started something very similar.
I started YAP Society on
Slick Text. It's a text community. You guys can actually join that if you text YAP to 28046.
That's YAP to 28046. And that's me bringing my old school YAP Society Slack channel into a
text community and resurrecting the whole thing because I still want feedback from my audience. I'm craving it because it is so important in terms of making sure that I'm able to satisfy
all my listeners and bring to you what you guys actually want from this show.
And so if you don't have an expert like Brian to turn to on your team, ask your mom, ask
your friends, ask anyone who's willing to give you their opinion about your business. And the best tip, like I just said, is pull your followers, your
customers and your existing audience.
A second branding tip that I got from this episode is that if you see
something in a company or a brand that you admire, go ahead and use it.
Businesses all about being a copycat.
That's business in itself.
It's copying other people and then making it your own. That's
like the whole game. There's very rarely anything that is totally unique and original. That's just
not realistic. Brian admired FedEx's clean trucks, uniformed and friendly employees, and then he
copied it with 1-800-Godjunk, and that is the business that he wanted to design and the essence that he wanted to bring. It was all inspired by FedEx. And when I started to yap, I did something similar.
I listened to all the different podcasts I could get my hands on and I noticed what they
were doing. That worked. What didn't work. I noticed people's brandings. What logos I
loved, what logos I didn't love. And that's how I decided to create everything that I created.
I took what I liked from my competitors,
and I injected some of my own personal style. And while I had my own Young and Profiting podcast
format, brand, and business. And the last thing I'll say about this is just find inspiration and
learn what makes other people and companies successful. And you don't have to start from scratch.
You can build off of and improve the businesses that came before you and then remix it to
make it your own.
With that, let's get after it, young your profitors, keep leveling up, keep learning from failure
and keep chasing those dreams.
Thanks for listening.
If you enjoyed this app classic and you like hearing these consolidated, shortened episodes
so you could listen, learn, and profit faster.
Let us know.
Give us some feedback.
You can do so by dropping us a review on your favorite podcast platform like Apple
Podcasts or you can text us text gap to 284046 and then text me your feedback on the
show.
I seriously check those messages all the time and I love to hear your feedback.
You guys can also find me on Instagram or Twitter at Yapp with Hala or LinkedIn.
Just search for my name.
It's Hala Taha.
Thanks for listening to another wonderful episode of Younger Profiting
podcast and kudos to my Younger Profiting team for pulling this off yet again.
You guys are rock stars and this is Hala signing off.
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