Starting A $1.4 M Home Service In 5 Weeks

TLDR Two entrepreneurs transitioned from running a social media marketing agency to owning home service companies, primarily focusing on leveraging Nextdoor, Yelp, and Google Ads for business promotion. They emphasized organic marketing, building credibility, and engaging with the local community for success. The discussion covered detailed marketing strategies, revenue dynamics, employee management, acquiring and selling pool service routes, and the acquisition of a pest control business with a focus on efficient operations and scaling potential.

Key Insights

Transition to Home Service Companies

The conversation revolved around two individuals who transitioned from running a social media marketing agency to owning home service companies, driven by the realization of minimal profits from marketing services for other companies. The idea originated from difficulty in finding a pool person for their airbnbs, leading them to flipping a pool from green to blue, which made them realize the potential in owning a home service company. Learning pool cleaning involved watching tutorials on YouTube, and with an investment of $25,000 in mainly equipment, they charged around $150 a month for cleaning pools.

Leveraging Nextdoor and Organic Marketing

The conversation mainly focused on leveraging Nextdoor for business promotion and gaining credibility through organic mentions. They emphasized creating posts on Nextdoor and having others recommend the service, while offering Nextdoor-specific discount to attract clients and generate leads for their pool cleaning service. They also highlighted the significance of organic marketing and word-of-mouth within community platforms like Nextdoor, as well as the effectiveness of platforms like Google AdWords, and organic marketing for acquiring customers.

Marketing Strategies for Home Service Companies

The conversation revolved around marketing strategies for home service companies, primarily focusing on platforms like Nextdoor, Yelp, and Google Ads. They discussed cost per click, special offers, and bi-weekly service models. The website's landing page was emphasized, with a focus on minimalistic design and automation for lead follow-up. These marketing strategies were found to be applicable to various home services such as roofing, solar, cleaning, and detailing.

Using GHL (Go High Level) Software for Lead Generation

The conversation covered a detailed process of using the GHL (Go High Level) software to handle lead generation and closing deals, particularly in the pool business industry. The process involves using automated text messages, e-signatures, and credit card transactions, resulting in instant subscriptions and pro-rated charges. The speakers emphasized the potential for making $10,000 a month and the modern approach to business without traditional cold calling or door-knocking methods.

Creating and Selling Pool Service Routes

Two entrepreneurs discussed their unique business model of creating and selling pool service routes, making around 900 grand from six different buyers. The conversation also delved into the scalability of the business, the importance of efficient operations, and the strategy for acquiring and scaling various home services.

Operation of Pool Cleaning Business

The conversation revolves around the operation of a pool cleaning business, discussing topics such as employee management, truck purchasing, app usage, expenses, and revenue generation. The speaker provides a comprehensive overview of the pool cleaning business operations and revenue dynamics, emphasizing the potential for profit and customer lifetime value, as well as insights about scaling the business and upselling ancillary products for additional revenue.

Challenges of Managing Home Service Companies

The conversation focused on the challenges of managing a pool company, particularly in Phoenix, with the need to allow early starts due to extreme temperatures, tracking and trust of employees using company trucks, and the acquisition and management of a pest control company. The conversation also briefly touched on the challenges of finding and retaining employees in the industry.

Hiring and Training Employees for Home Service Businesses

Reese started using Indeed for hiring employees, seeking individuals with no experience but great personality, emphasizing communication and relationship building. For the Pest Control business, they plan to opt for cheaper trucks and implement a longer apprenticeship-style training period. The conversation illustrates the importance of providing a good lifestyle with manageable hours and holidays off for employees, as well as the potential for scaling the Pest Control business with commercial and residential accounts.

Acquisition Deal and Business Expansion

The conversation is about an acquisition deal where the speaker plans to acquire a pest control business with 245 accounts for $100,000. The potential of acquiring businesses in the same industry and insights on customer acquisition and using Facebook ads for marketing were discussed. The conversation also touched on the potential of physical businesses in the current market and acquiring businesses using cash rather than loans.

Marketing Strategies for Home Services

The conversation revolved around various marketing strategies for a pool cleaning business, including email marketing, direct mail, and Facebook ads, as well as advice for starting the business, niches worth exploring, and the role of sales calls and office management. Key points included the importance of reliable staff, communication with customers, and the potential for online social media content as a rational business move.

Questions & Answers

What led to the transition from running a social media marketing agency to owning home service companies?

The realization that they were making minimal profits from marketing services for other companies.

How did they get into the pool cleaning business?

They had difficulty finding a pool person for their airbnbs in Tempe, so they tried flipping a pool from green to blue, which led to the realization that there was potential in owning a home service company.

What marketing strategies were highlighted for acquiring customers?

The effectiveness of Google AdWords, utilizing platforms like Nextdoor and Yelp, as well as organic marketing and word-of-mouth within community platforms like Nextdoor.

What software was discussed for lead generation and closing deals in the pool business industry?

The GHL (Go High Level) software, which involved using automated text messages, e-signatures, and credit card transactions for instant subscriptions and pro-rated charges.

How did the entrepreneurs create and sell pool service routes?

They bundled and sold the routes individually, making around 900 grand from six different buyers over a 19-month period.

What were the key operational aspects discussed for the pool cleaning business?

Employee management, truck purchasing, app usage, expenses, revenue generation, and the potential for profit and customer lifetime value.

What was the focus of the acquisition deal being discussed?

Acquiring a pest control business with 245 accounts for $100,000, learning the business from the seller, and inheriting a technician.

What were the various marketing strategies discussed for a pool cleaning business?

Email marketing, direct mail, Facebook ads, tech stack usage, niche exploration, the role of sales calls and office management, and the importance of reliable staff and customer communication.