In this week’s episode, we chat with Derrek Hofrichter and we discuss strategies for HVAC companies to avoid the post-summer business slowdown by implementing effective marketing, operations, and pipeline management techniques.

We also discuss the importance of planning in June and July to impact the off-season positively. Key points include the necessity of selling maintenance agreements, proper pricing, and spiffing of techs to ensure a high close rate, understanding and using customer databases for targeted marketing, and correctly dispatching techs based on their skills and customer needs. Throughout the episode we emphasize the importance of being proactive rather than reactive to maintain revenue throughout the year.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

In this week’s episode, we chat with Bryce Lawerence, Founder of Vanguard Partners.

Bryce shares his journey, revealing his background as a professional fighter who transitioned into the trades due to life circumstances. He explains how he got involved in multiple home service businesses in Florida and Texas.

The discussion delves into the unique branding of Bryce's business 'Goat Air,' especially the influence of local culture on their marketing strategies.

Bryce talks about the pivotal moment when he decided to focus on improving the financial and operational efficiencies of small businesses. He explains how Vanguard Partners assists business owners in understanding their financials, including their break-even points, gross profit margins, and overhead costs.

The podcast highlights common misconceptions about business financials and the importance of knowing one's numbers to ensure profitability and scalability. Bryce provides insights into managing cash flow, especially in fluctuating markets.

Towards the end, they discuss strategies for pricing services in a way that builds customer trust, and Bryce elaborates on the challenges of labor costs and overhead expenses that business owners often face.

Key Takeaways:

Understand Your Financials: It's essential for small business owners to understand their gross profit, overhead costs, and break-even points to make informed operational decisions.

Preparation for Succession or Sale: Business owners preparing for succession or sale need to start optimizing their EBITDA early. This includes understanding true overhead costs, ensuring labor costs are in check, and planning for different sale or succession scenarios.

Holistic Approach: Good management in a trade business combines both financial acumen and operational insights. Knowing how to interpret and utilize financial data to make operational decisions is key to long-term success.

Value of Running a Tight Ship: Efficient financial and operational management can significantly increase a business's profitability from the industry average of 6% net profit to potentially up to 35%. This includes knowing key KPIs, controlling labor costs, and carefully managing overhead expenses.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with Bryce Lawrence

Facebook: https://www.facebook.com/bryce.lawrence.56

Instagram: https://www.instagram.com/thebrycelawrence/

Website: https://www.discovervanguard.com/

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

In this week’s episode, we chat with Matt Ballard, CEO at Sunrise Mechanical.

Matt shares his personal journey, starting from his exposure to the air conditioning service business at a young age through his father’s company in Las Vegas. He recounts his experience in various roles, ranging from sweeping warehouses to sales, and eventually operations. Matt highlights his time in the private equity sector and his return to the family business, emphasizing the challenges and lessons learned along the way.

The discussion includes an analysis of the acquisition of Sunrise Mechanical and Sunrise Services, detailing the transition and the strategies implemented for sustainable growth. Multiple aspects are covered, such as operational efficiencies, customer acquisition, and innovative marketing approaches.

The podcast closes with Matt’s thoughts on maintaining a delicate balance between growth and employee well-being, emphasizing the need to sustain high levels of production without overworking the staff.

Key Takeaways:

Customer Acquisition Strategy: by capturing customer information at the time of installation in new homes, the company effectively acquires new customers with minimal costs.

Decoupling Relationships from Owners: The success of Sunrise Mechanical in new construction was attributed to decoupling key relationships from the business owners. This ensured smooth transitions when ownership changed, as the relationships were deeply embedded with various levels of staff rather than just the owners.

Operational Efficiency and Training: The company places a strong emphasis on operational efficiency and rigorous training. This includes establishing stringent processes and ensuring all team members are clear on their roles, contributing to the high performance and profitability of the construction division.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with Connect with Matt Ballard

X: https://x.com/mballard83

Facebook: https://www.facebook.com/mattnkeri

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

In this week’s episode, we have Jessica Weaver, General Manager of Weaver Heating and Air.

Jessica shares her journey into the family business, which began with her father's rule to work outside the family business to gain experience. She discusses her varied career path, including stints at Georgia Power, Shaw Industries, and a brief period as a high school teacher.

Jessica details her eventual decision to join the family business, her initial experiences working directly in the field, and the challenges she faced, including dealing with internal corruption. She emphasizes the importance of hard work, gaining respect, and the significance of building a strong team. Jessica also highlights the role of community involvement in her business strategy and the unique succession plan she and her father have in place. The episode provides valuable insights into family business dynamics, leadership, and effective succession planning.

Key Takeaways:

Learning from Challenges: Encountering and overcoming corruption in the family business taught Jessica the importance of checks and balances within business operations. Her structured, redundancy-filled approach ensures transparency and accountability.

Respect and Team Building: Earning respect through hard work, Jessica initially worked in the field under challenging conditions. This hands-on experience helped her build a reliable and committed team.

Adapting Management Styles: Transitioning from a very hands-on to a more strategic, on-the-business management style, Jessica emphasizes the importance of middle management to maintain operational efficiency.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with Weaver Heating and Air

https://weaverheatingandairinc.com/

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

In this week’s episode, we chat with Dominick Blue, Founder and Chief Executive of Nostra Group.

Dominick discuss his entrepreneurial journey and the evolution of his business model. Dominic shares his background, starting from a small town in North Carolina with early ventures like a lawn mowing business and a paper route, to his time in the Marine Corps, and eventually transitioning into the tech industry. He talks about founding Nostra Group with a focus on acquiring small family-owned businesses in the home services industries.

Dominic dives into his first acquisition in the air duct cleaning industry, Pure Air SD, discussing the factors that made the deal attractive, such as its cash-on-delivery model and a solid management team. He also highlights lessons learned, including the importance of examining asset quality and the challenges of managing customer expectations.

The conversation shifts to Dominic's second acquisition in the HVAC industry with Air ASAP, including the complexities of merging businesses and maintaining growth while managing cash flow. Dominic emphasizes the importance of building relationships with brokers and bankers, which facilitated his acquisition deals.

Dominic also shares his strategy for scaling Nostra Group, which includes organic growth, bolt-on acquisitions, and potential spinoffs. He talks about the challenges of balancing marketing with service capacity and the importance of not growing too quickly. Throughout the podcast, Dominic's dedication to hard work, community leadership, and customer trust shines through.

Tune in to hear Dominic's unique perspective on entrepreneurship, acquisition strategies, and building a successful business from the ground up.

Key Takeaways:

Understanding Your Role: Zero to One vs. One to 100: Dominic emphasizes the importance of recognizing whether you excel at creating new ideas (zero to one) or scaling existing ones (one to 100). Knowing your strengths can help focus your efforts in the right areas.

Build Strong Relationships: Relationships with brokers, bankers, and other professionals can unlock unexpected opportunities. Dominic's networking led to introductions that were crucial in his acquisition journey.

Quality of Revenue and Customers: It's essential to evaluate the quality of revenue and the type of customers a business attracts before acquisition. Poor quality can affect sustainability and growth post-acquisition.

Importance of Diligence: Thorough due diligence, including checking the condition of assets and interviewing customers, can prevent costly oversights. Dominic learned this the hard way with fleet issues post-acquisition.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with Dominick Blue

LinkedIn: https://www.linkedin.com/in/dominickblue/

X: https://x.com/dominick_blue

Facebook: https://www.facebook.com/justindominickblue

Website: https://www.nostragroup.com/

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

In this week’s episode, we chat with Dillon Caraway, Loan Officer at Live Oak Bank.

We talked about Dillon's work as a loan officer and how he helps home service contractors, specifically in the HVAC, plumbing, and electrical industries, reach their business and financial goals.

We also discussed different types of financing, such as acquisition financing, commercial real estate purchases, working capital, debt refinancing, and specific products like the SBA 7(a) program.

Dillon also talks about the importance of good cash flow, succession planning, and the unique lending approach of Live Oak Bank, which focuses on cash flow rather than collateral.

Finally, the episode highlights some of the complexities and common pitfalls in the loan approval and closing processes. Dillon emphasizes the importance of clean financial books and proper planning for business owners looking to buy or sell a business.

Key Takeaways:

Challenges in Today's Market: Finding and retaining talent is a significant challenge. Buying a business involves more than revenue and profits; employee retention is key.

Challenges with Traditional Banks: Traditional banks may not always understand the specific needs and risks associated with home service businesses, making specialized lenders like Live Oak Bank a valuable partner.

Importance of Clean Financial Records: Having clean and accurate financial records can simplify the financing process and make a business more attractive to potential buyers.

Navigating Business Acquisitions: The example of a $600k business acquisition financed through an SBA 7(a) loan illustrates how existing business assets can be leveraged to fund growth without upfront cash.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with Dillion Caraway

LinkedIn: https://www.linkedin.com/in/dilloncaraway/

Website: https://www.liveoakbank.com/

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

In this week’s episode, we chat with John Cerasuolo, CEO of The Leap Partners.

John shares his experience in conducting roll-ups and the strategy behind LEAP Partners, emphasizing the company's approach to integrating small businesses while preserving their local brands, owners, and employees.

The conversation touches upon the importance of internal call centers over outsourcing, and how LEAP Partners focuses on improving leadership and operations at the branch level. John also highlights the typical financial metrics they look for when acquiring businesses and discusses the strategies for value creation post-acquisition.

Finally, John shares how potential sellers can reach out to LEAP Partners and explains the company's lead generation strategy, principally involving direct mailing and word-of-mouth referrals.

Key Takeaways:

The Roll-up strategy: Combining several small companies to form a larger entity can significantly increase its value and efficiency

Focus on customer experience: Ensuring that customer-facing staff are well-trained and satisfied in their roles can significantly impact the business's success.

Profit margins: Healthy profit margins are vital, but sometimes low margins can be addressed through better pricing strategies and operational improvements.

The importance of culture: Businesses do not have to be perfect, but they need a strong culture centered around taking care of employees and customers

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with John Cerasuolo

LinkedIn: https://www.linkedin.com/in/johncerasuolo

Website: https://www.theleappartners.com

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.

Today we chat with Craig Wendel, Managing Director of Align Business Advisory Services.

In this episode, we explore various aspects of mergers and acquisitions within the home services industry, focusing on HVAC, plumbing, electrical, and exterior businesses. Greg shares invaluable insights into business valuations, transaction structures, and the current market landscape that you don’t want to miss.

Finally, Greg shares with our listeners anecdotes about some of the best and worst transactions he's been involved in and offers advice for business owners looking to sell. He highlights the need for proper documentation, maintaining business performance, and the importance of understanding the true value of equity.

Key Takeaways:

Market Fragmentation: Greg emphasized that the trades industry is highly fragmented, creating opportunities for larger firms to acquire smaller, family-owned businesses.

Key Factors in Successful Transactions: High-performing businesses with leadership in place and streamlined operations tend to fetch higher multiples in M&A transactions.

Region Focus: There's a heavy investor focus on Sunbelt states, including Florida, Texas, and Arizona, due to their volatile weather patterns and market conditions.

Challenges in M&A: Even the best deals can face issues like missing documents and fluctuating business performance, which can delay or complicate transactions.

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Additional Resources

➡️ Schedule a FREE Marketing Assessment today: https://lokalhq.com/marketing-assessment/

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👉 Connect with Craig Wendel

LinkedIn: https://www.linkedin.com/in/craig-wendel-9a58482a

Website: https://alignba.com

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The Boost, a podcast for home service contractors.

Join CMO of Lokal, Zach Wilson, as he explores leaders & innovators in home services, their personal journeys, thoughts and experiences with growth, marketing, and succession.

Lokal digital marketing works exclusively with contractors specializing in HVAC, roofing, plumbing, and garage door companies to conquer their local turf and grow exponentially.

All Aboard the Longship! Powered by Vikings™.

For marketing tips, follow Zach Wilson on Instagram, TikTok, or Facebook.