YT YouTube2Text

YouTube2Text → Transcripts → How I Would Build a $10M Service Business (If I Had to Start Over)

How I Would Build a $10M Service Business (If I Had to Start Over) — Transcript

by Alex Hormozi · 6,270 words · 946 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00I'm about to help a complete stranger
0:01build a $7 million per year business.
0:03I'm going to give him a step-by-step
0:05road map on exactly what he needs to do.
0:06And 90 days later, we're going to check
0:08in with him to see what actually
0:09happened. And for all the business
0:10owners watching, I've scaled 10
0:12businesses past 10 million, three past
0:14100 million, and I've realized an
0:16important lesson, which is that
0:17businesses behave in patterns at all
0:18levels. And so, you can take any of the
0:20principles and tactics and apply them to
0:22your specific business and industry. At
0:23its current size, there are far more
0:25similarities than there are differences.
0:27And so, with that being said, let's go
0:28meet Caleb. Ready to rock?
0:30>> I'm ready to rock and roll, brother.
0:31>> All right. Tell me about the business.
0:32>> So, first off, my name is Caleb with a
0:34K. I own Keys Roofing Company,
0:35>> also with a K.
0:36>> Yeah. All right. Alex with an A. Nice to
0:38meet you.
0:38>> So, we are a premium and luxury roofing,
0:42gutter, and downspout contractor in St.
0:43Louis, Missouri.
0:44>> Hey, what's going on, folks? This is
0:45Caleb with [music] the K, the Kingdom
0:46Building Castle Contractor.
0:48>> So, we've been in business for 2 months.
0:49The current revenue, um, we're a little
0:51bit shy of 41,000. Profit is 24,248, so
0:55I'm at about 59%.
0:56>> So, you're doing only 20K a monthish
0:58right now. All right. Correct. The goal
1:00within the next 3 years is going to be 7
1:02to 10 million.
1:03>> Okay. Love that. So, how you get
1:06customers?
1:07>> So, the way that we get customers, um,
1:09two primary acquisition channels
1:10currently is door-knocking. So, I do a
1:12ton of canvasing and then also
1:14referrals, whether that's doing a great
1:16job for the person that I currently meet
1:18or people within my internal network.
1:20>> So, walk me through the money stuff.
1:22>> Yeah. Um, so with the money stuff, I
1:24have two streams of revenue with the
1:26full replacements. My average ticket
1:28year after year is about 18 to 25,000.
1:30>> The greatest thing about being the
1:32solution for the smaller problems is
1:34these jobs, Alex, they typically chunk
1:36up to those jobs. So if I'm coming
1:38through and I replace one down spout for
1:40somebody, run a gutters, what have you,
1:42nobody will else will even show up to
1:44even attack that job, which then
1:46qualifies me to get the next job and all
1:49their future jobs.
1:50>> How many doors do you need to knock to
1:51get a sale?
1:52>> Oh man, I have a high um close rate on
1:55that. So if I knock 20 doors,
1:58>> I'm getting a sale.
1:59>> Yeah.
1:59>> Like it's like that.
2:00>> Yeah. No, it's like that.
2:02>> It's like that.
2:03>> Like that. [laughter]
2:04>> All right. Um
2:06what's stopping you right now?
2:08>> So what's currently stopping me is um
2:10having more salespeople because if I
2:12have two more salespeople, one project
2:14manager, I'm 100% confident 7 to 10
2:16million is very doable.
2:18>> Okay. Um why is this important to you?
2:22I would say this is important to me
2:24because um I have two kids at home. So
2:26Wayan is three. My son August is 10
2:29months old.
2:30>> Oh, congrats.
2:30>> Oftentimes we look to our parents, oh
2:33like you know how to be successful and
2:34they'll give us all these things. And
2:36for me as dad,
2:37>> I need to show my kids what winning
2:39looks like.
2:40>> So that's first and foremost. But also
2:42secondly is I believe the roofing
2:44experience is primarily across the board
2:47terrible for both customers and roofing
2:50salespeople alike. So, the ability to
2:52solve this problem gives salespeople a
2:54great ecosystem to come and sell and
2:56actually be paid for what they do. Yeah.
2:58And then it allows me to have satisfied
3:01customers in the St. Louis area with the
3:03unmatched offer that I do.
3:05>> Um, all right. Hop on to the side and
3:06then we'll uh we'll dive into it.
3:07>> Awesome. [music]
3:11>> Okay. So, um, the big thing that you
3:14right now have to deal with is like
3:15there's one of you and there you don't
3:16have that many like it's a small
3:19business, right? Right? And I'm not
3:20saying that as a slide. I'm saying just
3:21factually, right? Um and so you're going
3:23to be resourcing strength both time and
3:25money. And so I want to focus all
3:28efforts on the highest return stuff that
3:29you can do right now. Um what's very
3:31good about your business right now,
3:33honestly, is you because at any given
3:36point, you can knock 20 doors and you
3:37get a deal.
3:38>> Yep.
3:38>> Right. And so that reliability of being
3:40able to just basically go get money um
3:43is something that a lot of entrepreneurs
3:44don't know how to do. And that gives you
3:46a lot of what I'll call like cats have
3:47nine lives. like entrepreneurs uh need
3:49as many lives as they can and knowing
3:51how to go get money is one of the ways
3:52to do that. So, I think it's super good.
3:54Um there's a couple key decisions that I
3:55wanted to like walk through because one
3:57of the considerations I had was like,
3:58okay, was there a world where we could
4:00get repair average tickets up more
4:02meaningfully? Yeah.
4:03>> And so, say 7K is gross profit on the
4:06replacements. Sure. Does that sound
4:07fair?
4:08>> Yeah.
4:08>> Okay. So, if we have 7K replacements,
4:12right?
4:16Um, what is the gross profit on a
4:18repair? Oh,
4:20>> I'm at like 64%.
4:23>> And that average ticket is 1,500.
4:25>> Yep.
4:26>> So, $1,100 um gross profit on repairs.
4:29So, I'll tell you where I was originally
4:30thinking was basically, is there a world
4:33where, let's say we get this gross
4:34profit up to $2,000. Is there a world
4:36where you think you could sell three
4:37times as many repairs as you could
4:39replacements?
4:39>> 100,000%.
4:40>> Right? So, this is what got more
4:41interesting to me was like I love when
4:43there it's like when when there's
4:44something that's been cast aside by
4:45other people, right? Like no one wants
4:46to do this particular thing, but then
4:48you orient a business in such a way that
4:49you can actually make really good gross
4:51profits on it. Part of me was running
4:52out the idea of like what if we just did
4:54repairs and you did an absolute like you
4:55just became you systemized the living
4:58out of it, right? So, what is the
4:59aggregate amount of all repairs? What
5:03would that ticket look like? So, if you
5:05did everything minus replacement,
5:07>> these should really be selling for like
5:082500 to 5K. The reason that this is
5:10interesting to me is that like if we can
5:11get this thing to two, three, you know,
5:144K.
5:15>> Sure.
5:16>> This becomes an incredibly interesting
5:17business.
5:18>> Yeah.
5:18>> Just from the sheer volume that you
5:20could do and the reliability of revenue
5:21cuz the obvious one is cool. We do
5:22repairs and then we try and upsell the
5:24upsell the roofs. Like that's fine. Um
5:26but I just like that you have this angle
5:28a lot. Hey, it's Alex from the future. I
5:30just thought it might be really
5:31interesting to see what actually happens
5:32to Caleb when he implements this stuff.
5:34And so we're going to show you how much
5:35his revenue increased by at the end. How
5:38has the business changed since switching
5:39from uh chasing full roof replacements
5:42to repair volume? And it's interesting
5:44because I was doing like 15 to 20
5:47services per month, but with the new
5:49model, I do about 60 to 80 per month
5:52right now. And so it's more than
5:55quadrupled in terms of uh services sold,
5:59built, and collected on. So I would say
6:01that it's it's been working. Our roof
6:03repair techs, they do about 3 to five
6:05jobs per day. Um, I have one currently.
6:07Once the second one comes on, I mean,
6:09we're doubling up even on that.
6:11>> Well, I would say that was pretty good.
6:13That uh that was a good one of those one
6:15of those good ideas out of nothing to
6:18add. Let's just run this out and like
6:22run out a version of the future. Okay.
6:25So, let's just say that we try and get
6:27really really sexy with our repair sales
6:29motion.
6:30>> Sure.
6:30>> All right. So, all the repairs we try
6:33and get our foot in the door quite
6:34literally, right? Mhm.
6:35>> We get our repairs and then they go to
6:38um have their onboarding call with
6:40Amanda. Right. Prior to the onboarding
6:42call, I would love to have them watch a
6:44VSSL that talks about the other the
6:46benefits of what you guys do. It's a
6:47long-term investment. Blah blah blah
6:49blah. Right. Um, and then Amanda then
6:52tries to close them on a menu close of,
6:55okay, uh, you got this thing, but you
6:58probably don't need this. You probably
6:59don't need this, but what you really
7:00going to probably want to take care of
7:01is this and this, which, you know, my my
7:03partner didn't have enough time to to
7:04talk about, but given what we now know
7:06about it because we did a little bit
7:07more work than just talking to you. Um,
7:10we're all going to be there. We're going
7:11to have the dumpsters out. We're already
7:13going to have the tarps open. It's like
7:14you might like the the hood's going to
7:15get popped, right? So, you might as well
7:17just have us fix everything while we're
7:18here. Getting the first sale is the hard
7:20part. Getting the approximate sale is
7:22significantly easier.
7:23>> Way easier. Right.
7:24>> Can I ask you a question about this? So,
7:25with the VSSL, so I have a a high
7:27quality YouTube channel. Is a VSSL kind
7:29of the same as a YouTube or is that
7:30different?
7:31>> It's it's has a more specific purpose.
7:32As you scale the sales team, you might
7:34want this video to be more targeted in
7:35terms of like more s.
7:37>> Okay.
7:37>> Right. And so the the VSSL structure
7:40looks more like this, which is you have
7:42your intro
7:43and then you're going to have your
7:44promise of like, hey, in this video I'm
7:46going to explain X, Y, and Z, which is
7:47the promise that they want. you're gonna
7:48have an amazing roof and blah blah blah
7:49and it's gonna help you avoid
7:51>> this pain that you probably dealt with
7:52in the past x y and z. Um, and so you
7:55might not believe me because you just
7:56met me and so let me just give you some
7:57proof of Angie and Daniel and so and so
7:59that are all around this area have
8:01houses as big or bigger than yours so
8:03you can feel like I work with people of
8:04your caliber.
8:05>> Um, and so in this video I'll show you
8:06the plan of how we actually do that. And
8:08so then we have old way new way
8:10>> which is the way that the current
8:12industry looks is this. and our special
8:14K right uh process is X Y and Z and
8:18that's why it's very different than the
8:20you know the old way of doing things and
8:21then we say okay now clients typically
8:24have a couple questions around this
8:25stuff and so we have objection number
8:26one through whatever n uh objections
8:29that they have and with each of those
8:31you just break the beliefs you're like
8:32uh they think this here's why that's
8:35wrong or they didn't know this this is
8:38what's right and here's proof
8:41and so you know Angela a similar
8:43question. She owns whatever house down
8:45the street and um she thought this it
8:48actually works like this instead. Um and
8:50so here's proof, right? So each one of
8:52those is basically that's just a belief
8:53breaking mechanism over and over again.
8:55And so that way your sales guy when he
8:57comes back after, you know, walking the
8:58house and this is like a 7-minute video,
9:00whatever.
9:00>> Um you be like, "Oh, video give you a
9:02little bit more context." It completely
9:04edifies them, edifies the company, gives
9:06a shitload of social proof and stats.
9:07Yep. And so like I would also bring in
9:09something like uh you know uh houses
9:11that have some sort of roofing plan um
9:13resell at a higher value. Like I would
9:15>> put those pieces into it. So it's like
9:16you're actually not really paying for
9:18this. Uh you're going to pay for it
9:20either way. It's just you get to enjoy
9:21the house without all the issues the
9:23whole time, but it ends up reflecting
9:24your home value.
9:25>> I see.
9:25>> So you might as well just like the worst
9:27thing you can do is fix all these things
9:29the day that you sell the house and you
9:31could have just had a nice roof this
9:32whole time and sold it for the same
9:34value, but instead you're just fixing
9:34your house for the next guy.
9:36>> Makes sense. Okay. That's how I would
9:37sell it. Sure.
9:38>> Right. Um, and so this is before you
9:40actually close, but then you before you
9:43talk to Amanda,
9:44>> right?
9:46>> They should still watch another one. So
9:47they watch one when you're on camp like
9:49on property
9:50>> and then cuz [clears throat] this is
9:51about the first sale.
9:52>> Understood.
9:53>> The VSSL that they're going to talk to
9:54you from Amanda. So this is VSSLs in
9:55general. But the VSSL that they're going
9:57to see when they talk to Amanda is about
9:58the other stuff.
10:00>> Got it.
10:00>> So it's just it's just framing the
10:02conversation. So this is probably more a
10:04little bit more about us and working
10:05with us in general. This is going to be
10:07more about other things that people
10:08don't know about like their roots.
10:10>> Mhm.
10:10>> So it's you get the difference.
10:13>> I'm thinking about that.
10:13>> Got it. Yep.
10:15>> Now I think that in terms of scale, you
10:19should go all in door to door.
10:21>> Okay.
10:21>> It's what you're good at.
10:23>> Like I don't think we need to be cute
10:24about this.
10:24>> Sure.
10:25>> Um and just get really violent with it.
10:27>> Nice. I'm down for that.
10:28>> Yeah. I just It's like I have full focus
10:29on this. If you just every 20 doors and
10:31maybe it's every 40 for your guys or
10:32every 50 for them, whatever.
10:35like
10:36it's like I want to go make money. It's
10:38like great. So, you know, your
10:39commissions I don't know what would a
10:40commission on this be.
10:41>> So, we do 10% on repairs.
10:43>> So, let's say the average uh repair we
10:45can get that to like 4K revenue,
10:48>> right? So, 4K revenue, they're going to
10:50get 400 bucks.
10:51>> Yep.
10:51>> Right. Divided by uh 50 doors. So, it's
10:54like, want to go make 10 bucks? Knock
10:56that door. Want to make another 10
10:56bucks? Knock that door. Want to make
10:57another 10 bucks? Knock that door. It's
10:59just like it just makes it really
11:00straightforward for them. So, it's like
11:01how much money do you want to make? Just
11:02knock that many doors.
11:03>> That's the piece,
11:03>> right? Yep. Um, and I think you building
11:05out this DDD army is like the clear
11:08straight shot.
11:09>> When I came back from scale or fail, my
11:11biggest thing was like, how do I go all
11:13in on door knockocking and just
11:15basically do more of what's working and
11:18just sell more jobs, get more services
11:20completed. Uh, that dedication has
11:23resulted in us doing literally more than
11:26four times the sales velocity that we
11:28were doing. And quite honestly, I feel
11:31that I'm a few deletions in terms of my
11:33own like habits that I got to kick or
11:35like delegations I got to put out there
11:37of selling 20 to 40 more services per
11:40month.
11:42>> Awesome. I mean, at the end of the day,
11:43it always comes down to the team. So,
11:44kudos that he was being a good leader
11:46and pushing credit down because that's
11:48what you got to do.
11:49>> Okay. So, what are you doing on the back
11:51end when you deliver the house?
11:52>> So, like full job's finished is what
11:54you're saying.
11:54>> Mhm.
11:55>> So, we have like a cleanup process, too.
11:58So, like I make sure that the house is
12:00better looking than how we left it.
12:02>> And then the first thing that we're
12:03going to do is ask them for a Google
12:05review. I also come from a background of
12:07like financial advising and mortgage.
12:09So, I want to make sure LTV is high. And
12:11the way that you do that is you actually
12:12stay in good contact with your clients.
12:14I get a lot of business just by I call
12:16these people every six months to a year.
12:18>> I have detailed notes. Hey, how's your
12:19kids doing?
12:20>> Let me give you a cool little thing.
12:21>> What you got?
12:22>> Okay. [laughter]
12:23So you're going to do your like you're
12:26going to get your review and you're
12:27going to get your reel. So what I do is
12:28give an incentive.
12:30>> So I want to say, hey, so what most
12:31people do is they sign up for our, you
12:33know, diamond
12:35roofing call whatever you want. VIP.
12:38>> Mhm.
12:39>> And it's $15 to $20 a month.
12:43>> Just paid annually.
12:44>> So it's 180 to 240. Depends on the
12:45market, right? You can go a little
12:46higher if you want to.
12:48And uh we put uh $2 for every $1 that
12:52you put on this into future repairs.
12:54Typically people need to get their roof
12:56checked once a year. Um and so we'll
12:58come out
13:00>> for that to check on everything, make
13:02sure it's up to date, and we'll take it
13:03out of the repair that we have to do.
13:04>> Okay. Okay. So you're you're more
13:06talking about like a the maintenance
13:07program, like something like that. Okay.
13:09Yeah, I like that.
13:10>> Yeah. And then if you want to, and this
13:12is like where we can we can get a little
13:14bit niftier. It's like you can make this
13:16$500 a year.
13:18>> Um, but if you just leave us a review,
13:19we'll knock it down to 200.
13:22>> Okay.
13:24>> And now we have a little a little
13:25carrot. Yeah.
13:26>> For them. But at the end of the day, you
13:27don't we just we don't even care about
13:29the money. We care about the fact that
13:30we're going to have appointment see that
13:31we're going to go out to see the person.
13:32Yeah.
13:32>> And then
13:34>> Yeah.
13:34>> sell more stuff.
13:35>> Let's do that.
13:36>> Yeah.
13:36>> Good idea, dude.
13:37>> Yeah. I actually do this for a living.
13:39Um,
13:40>> so we have launched it and I've put a
13:43few offers out there on it. I'll be the
13:45first to tell you that I need to find a
13:47better way like in my sales motion on
13:50how to get that through and an offer
13:52that really makes sense. Uh, there's
13:54been some commercial maintenance that
13:55we've done that we've done a fantastic
13:58job on, but in terms of like throwing
14:00that on residential, I'm still finding
14:01my way.
14:02>> I'll have to ask that. I'll have to ask
14:04Cale about that when I see him. Um to
14:06figure out where where he's putting it
14:08because it's probably a timing thing. Um
14:09and I'll have to see how he's actually
14:10like scripting the words around it. Um
14:13because if you can tack that on the end,
14:15it takes the business from being onetime
14:16business to recurring business, which is
14:18obviously significantly more valuable
14:20and dramatically increases LTV. So, it's
14:21one of those like it's kind of it's
14:23sometimes just tweaking a couple things.
14:25Um and then all of a sudden it's like
14:26boom, it clicks and then you're getting
14:2780% or buying it. So,
14:31because you're starting out, the It's
14:33funny because the the bigger the
14:34business, the more tailored the um
14:37advice has to be because there's just
14:39more moving pieces and considerations.
14:41>> The earlier like at at the hypothetical
14:43stream at the beginning, the first step
14:44of starting a business is always the
14:45same, which is that you will need to
14:47start an LLC of some kind so that you
14:48can accept money.
14:49>> Yeah. Yeah.
14:50>> Right. So, it's like if every if you're
14:51at zero, the steps are identical. And if
14:54you're at a zillion, the steps are
14:55entirely unique. You're a few steps from
14:57zero, eight weeks. Right. Yeah.
14:58>> Um, and so, uh, the process here is
15:01really, really straightforward. We need
15:02to add tweak this front end VSSL, add a
15:05backend VSSL. Amanda needs to follow a
15:08script in terms of like, um, I like the
15:09menu close. So, the menu the the the the
15:12menu the menu process works like this.
15:14Step one is that Amanda's going to
15:15unsell
15:17what they don't need.
15:18>> Mhm.
15:19>> So, she gains trust.
15:20>> She's like, "Hey, looks like you're this
15:22is fine. Looks like this is it. You
15:23probably have a couple years on this.
15:24Don't worry about that. Don't worry
15:24about that." And then they're like, "Oh,
15:25wow. She's not going to try and upsell
15:27me a bunch of shit." You're like,
15:27"Yeah."
15:29The second thing um is we're going to
15:33we're going to prescribe what we do
15:35think they need. So, you don't need
15:38this. You don't need this. You don't
15:39need this. You don't need this. But what
15:41I am saying is you're probably going to
15:42need this and this and this.
15:43>> Mhm.
15:44>> Now,
15:48would you prefer A or B?
15:52>> Gotcha.
15:52>> Would you rather have a male or female
15:54person doing the install? Would you
15:55rather start on Monday or Tuesday? Would
15:56you rather like
15:57>> Yeah,
15:57>> it doesn't matter. Like would you rather
15:58the neon nails or the the white nails?
16:00>> Coffee or water?
16:00>> It's a fake. Yeah, it's a fake choice,
16:01but it just makes the clothes a lot
16:03easier.
16:03>> Mhm.
16:03>> And then four, [panting]
16:09>> card on file.
16:10>> Mhm.
16:11>> Great. You just put that on the card
16:12that we already the payment method we
16:13have on file. Awesome. That's the
16:14script.
16:15>> Yeah.
16:17>> So, welcome. We're excited to really
16:18have you. I looked at some of the
16:19images. Um, it looks great. Look, you
16:21know, your gutters look great. The blah
16:22blah blah looks great. You know,
16:23beautiful home that you got here. So, I
16:25don't think you're going to need this
16:25and this and this. You are going to
16:27probably need to take care of this. And
16:29so, would you rather this or this?
16:30Great. You want to take care of that
16:31with a card file? I mean, we already
16:32have the hood popped up. That work for
16:34you. Great.
16:34>> Nice. Yeah.
16:36>> Super smooth.
16:36>> Yes. And we're good about this, too. So,
16:38we could definitely do that.
16:39>> Buttery.
16:40>> Nice.
16:40>> And so, that's a script for Amanda to
16:42follow.
16:42>> Cold. Love to see it.
16:44>> How is the menu upsell going in terms of
16:47like prescribing people a solution? Uh,
16:49taking something off the table. This has
16:51been one of the most the most effective
16:53strategies that I've injected into my
16:56business because I get to give my raw
16:58authentic opinion to people and it
17:01automatically builds that trust because
17:04not every product is for every person.
17:06So I have to look at the variety of
17:08solutions that I have and say this one
17:10is made specifically for you Janet for
17:13this reason. Um people like that
17:15>> the menu epsile absolutely slays. It is
17:18my favorite of the If you had to ask me
17:20what is my favorite chapter in the money
17:22models book, it is the menu upsell. It's
17:23in the upsell section. If you have any
17:25kind of transactional sale that's like
17:27you're not doing a super complex thing,
17:28but it's like you can do it in one
17:29conversation. It absolutely slays. Like
17:32it is it is I have I spent so long
17:34honing that process. If you have the
17:37opportunity to use it, it's in the book.
17:38My book's online for free. If you want
17:39the hard copy, you can grab it. But like
17:41it crushes. We This is the process
17:44because all we're doing is we're going
17:45to increase average ticket with this via
17:47menu uh sale process. The two VSLs, one
17:50for you and then one for her.
17:52>> We're gonna get more reoccurring
17:53business on the back end with our little
17:55membership that we're going to credit
17:56towards any repairs.
17:57>> Mhm.
17:57>> You're going to need to do it either
17:58way. So, you might as well just not even
18:00feel it.
18:01>> Sure.
18:02>> And then we shove scale door to door.
18:04>> Got it. I had a speed incentive in play,
18:07too.
18:07>> It's all margin.
18:08>> Yeah. Oh, for sure. So, the way I think
18:10about like the reason that I'm such a
18:11big proponent of speed, right, is let's
18:13say that you've got
18:17So, you got house A, B, C. We'll put a
18:20little put some roofs on for for keys,
18:21right?
18:22>> Yeah.
18:22>> So, we've got house ABC. If like we have
18:26to do this amount of work and this
18:27amount of work is going to take the same
18:28amount of resources, but if C wants to
18:29pay us an extra th,000 and A is still
18:32very much within the window of like an
18:33acceptable time period to get the repair
18:34done.
18:35>> Mhm.
18:35>> We might as well just make it C B A or
18:38CA B, whatever.
18:40>> But literally just reshifting the order
18:42of the work by allowing people to spend
18:43more to go first
18:45>> just makes more money.
18:46>> Correct.
18:47>> And so when you do the end of your
18:48repair thing, it's like, hey, you know,
18:50we always try to be really fast, but for
18:52a lot of our clients, you know, time is
18:53money. um we have a 20% um priority
18:57>> sure
18:58>> boost. So if you want us to get this
18:59done um for sure by the end of the week
19:01and if we don't we don't even charge it.
19:04Uh we basically put you at the front of
19:05the line and then you don't have to
19:06worry about it.
19:07>> Okay, I'm with that. Yeah, that's good.
19:10Cuz if I mix that, I have like a
19:11prepayment incentive.
19:12>> So yeah, and I mean speed's all margin
19:14and in this business margin matters a
19:16lot.
19:16>> Ton.
19:16>> So I would say you can tack that on to
19:18the initial here.
19:19>> Yeah. But if we can get the average
19:21ticket up to that 2, three, 4K because
19:24of this motion.
19:25>> And then you add your speed piece in,
19:27all of a sudden you guys can start doing
19:28two, three, four repairs a day. It's
19:30like doing a full
19:31>> roof replacement a day.
19:32>> That's what I'm saying. Like that's why
19:34I love the repairs because I'm not
19:35competing with anybody on these guys
19:37think they're too good for it.
19:38>> Yeah. I just like it. I love I if I can
19:41I love high volume businesses
19:43>> just because there's more stability. the
19:45the reps get way more like the sales
19:47reps get way more reps um in because the
19:49sales cycle is much shorter. There's way
19:51less um administrative uh headache with
19:53the insurance and the payment that's
19:55delayed. There's there's basically no
19:56cash flow constraints with the business
19:58and you can just
19:59>> and then you just add more of these and
20:01that literally becomes the machine.
20:03>> So I actually have not only rolled that
20:05out but had some of my first takers as
20:07of recently um a commercial client that
20:10had an emergency on their job. Uh
20:12basically threw him a quote out there.
20:14was like, "Hey, we could either do this
20:15next week or I can get to it tomorrow
20:18for x amount more um extra 300 bucks of
20:21like straight margin." Uh they took it,
20:24got the job completely done, they were
20:26super satisfied, and not only was it
20:28like effective, but they wanted to buy
20:29the next job right after it. So, speed
20:32works, baby. If you're ever not sure how
20:35to add margin to a business, especially
20:36if you're supply constraint, meaning you
20:38have more people who want your stuff
20:39than you have the ability to do, add
20:41speed incentives for people to just move
20:42to the front of the line. You do the
20:44same amount of work and you just make
20:45more money. There's a lot of things that
20:47are very exciting right now and it's
20:49also new and whatever.
20:51>> Sure.
20:51>> But like we need to knock more doors
20:54>> and we sell more repairs.
20:55>> Gotcha.
20:55>> How's that sit?
20:56>> That sits really well with me. I mean I
20:58came here for some clear direction and I
21:00feel I have actionable steps on what
21:02needs to have happen. So it's just a
21:03matter of debriefing it with the team
21:04and putting systems in play.
21:06>> Simple.
21:07>> Barry.
21:09>> Cool. Appreciate you.
21:10>> Nice to meet you, bro. I think we have a
21:11little scaling road map. What's that
21:13count right now?
21:14>> Uh four, five once Alejandro, my sales
21:17guy joins.
21:18>> Alejandro.
21:19>> Alejandro.
21:20>> Where we at? So that's going to be 1 to
21:21four to 5 to 9. You're right in this
21:24little little transition here.
21:26>> Mhm.
21:26>> So what we were talking about today was
21:27basically specializing our product.
21:29>> Okay.
21:30>> Right. Um from a marketing perspective,
21:34uh the free stuff, you've like you're
21:35already on your way with this in terms
21:36of making the content. Mhm.
21:38>> Uh so you're you're you're on the right
21:40direction with that.
21:40>> Sure.
21:41>> Uh from a sales perspective, you're
21:43going to probably have to track this
21:44maybe a little bit more than you are
21:45right now cuz right now you're the it's
21:47you.
21:47>> Mhm.
21:48>> Um but as the team scales up, this is
21:50going to probably be the next piece that
21:51you're going to want to have to install.
21:52>> Um and then you do, it sounds like you
21:55have better tracking on the back end
21:57because you have some experience there.
21:59>> Um but in order to get to this next
22:01level over here, that's what we have to
22:03basically check those boxes off. And you
22:04have about half of them. So I think you
22:05are ready to like gas this. So um with
22:09this I want you to think about sales
22:11people as your new customers or your new
22:13avatar.
22:14>> Yeah.
22:14>> And some of the marketing that you're
22:16going to do is to go get these guys so
22:18that all of a sudden you can have four
22:19guys on your team or five guys on your
22:20team and you can probably easily manage
22:21that on your own.
22:22>> Mhm.
22:22>> And then that's what's going to allow
22:24you to unlock this. The thing and that's
22:25again with with volume comes
22:27reliability. And with reliability you
22:28can get you can you can decrease costs
22:31because you can forecast. And
22:32>> so fundamentally what you're what you're
22:33discussing is like I can start
22:34forecasting out that if I know I'm going
22:36to hit this volume then I can cut my
22:37cost basis in half or by 2/3. It's like
22:39okay yeah and that's how business is
22:41done.
22:41>> Yeah.
22:41>> Right. In the beginning it's always
22:42super rocky because everything's really
22:44volatile and it's feast or famine.
22:46>> That's why I like the reliability of
22:47this in the beginning. So we get cash
22:48flow and there's a heartbeat in the
22:49business. Uh and then everyone just kind
22:51of like water starts flowing through the
22:53pipes. Straightforward though.
22:54>> Yeah.
22:55>> Like it.
22:56>> Well I want every entrepreneur to win.
22:58And so I think what's more important or
22:59more interesting is what actually
23:00happened when he executed all the stuff
23:02um that I outlined for him over the next
23:0490 days. And so that's what we're going
23:05to show you. Give me the update. So what
23:06was what was revenue 3 months ago again?
23:08>> So it was a little under 32,000
23:11>> and then um I guess it's been 90 days
23:13since then is so uh what is it now?
23:15>> So right now I am at 250,000. So like
23:19yeah it's like 247.
23:21>> Hell yeah.
23:22>> But it's been rolling, bro. Like when I
23:24came on I was sub 20 reviews. So I'm at
23:2662 fivestar reviews, 85 services built,
23:30sold, and collected on whereas I was at
23:3232 over there.
23:34>> Hired the repair tech.
23:36>> It's been a lot of stuff, dude. Like
23:38I've never tried this hard in my entire
23:40freaking life. And I absolutely love
23:42this.
23:43>> Which things did you do that uh made the
23:45biggest impact?
23:46>> So I went all in on door todoor first
23:48off and I had to figure out how to
23:50structure that.
23:51>> Alex, who genuinely helped me the most,
23:53I would say. So, I actually went and got
23:54an ERP system. So, it's like a custom
23:56CRM that is built for us that is
23:58allowing me to like run the jobs the way
24:00that I want.
24:01>> So, now that I have the repair tech, um
24:04I am doing three to five services every
24:06single day.
24:07>> Mhm.
24:08>> Right. My guy um it's it's been wild too
24:11cuz he actually ended up having meniscus
24:13surgery yesterday.
24:14>> Ah,
24:15>> and his brother filled in his role. So
24:18when they both come on at the same time,
24:19I'm going to take that 3 to five
24:21services a day and it's really going to
24:22look like six to eight and I am just
24:24going to win by just absolute violence.
24:27I have decided.
24:28>> I mean that is the uh that is the I
24:30think the the first thing we said was go
24:32all in on door to door as primary growth
24:34engine.
24:35>> Yes, the VSSL. So I'm shooting the VSSL
24:37come next week. Your prescription idea
24:40has been monumental to in terms of I'm
24:43going to talk to people about hey let's
24:44say all the gutter guards. Yeah,
24:46>> there's one option that no, you don't
24:47want this because of XYZ and then I'm
24:49prescribing what they need. So that
24:51consultative aspect to selling is
24:53increasing trust a lot and then people
24:55are just taking every recommendation.
24:56>> The menu upsell, baby.
24:58>> Yeah. So,
24:59>> so tweaked the tweaked the motion, went
25:02all in on door todoor, tweaked the tech
25:04so you could sell more. Um, and yeah,
25:06and you're getting in only the the big
25:09dogs in terms of producers, right?
25:13>> Oh, yeah. It sounds like a pretty
25:15productive 90 days.
25:16>> I've had a monomomaniacal focus on most
25:19everything he's put into that list and
25:21I've ROIed on every single move. Asking
25:24myself too is like, you know, how can I
25:27do more? Like, I've never tried this
25:28hard in my entire life. And you know
25:30that the advice is good when all you
25:33really feel that you need is like, hey,
25:34I just need 90 more days. Like that's
25:38I'm satisfied.
25:39>> Oh god, he's satisfied. That's good.
25:41[laughter]
25:42Um, yeah, it's nice when stuff works
25:44without I mean, what's interesting is
25:46like, think about how if you play a
25:48video game and you've played the game
25:49before, how fast you move through the
25:51levels until you get to a level that you
25:52haven't played [clears throat] before.
25:54Like, that is the advantage of having
25:56some insight from ahead looking back
25:58saying, "Hey, man, just go here, go
25:59here." And what you don't see is like,
26:02well, I stayed stuck here for 3 months
26:03because I didn't know what to do. So,
26:04it's like when you have the right
26:05directions, you can just the only uh
26:08hold back is just pure execution, just
26:10absolute violence. and he said he's got
26:12my monomaniacal focus and what he's
26:13doing and it's showing
26:14>> everything that you told me has worked.
26:16I will say that.
26:17>> Well, I love to hear it and congrats on
26:19going from 30K to 240K [laughter]
26:23uh in 90 days. It's all you, dude.
26:24That's all you. I'm glad we could just
26:26be one small one small step in there.
26:28>> Yeah. All of
26:30>> Appreciate you, brother. All right. And
26:31so that was this episode of Scale or
26:33Fail. Stay tuned for the next one as
26:35they all compete for $100,000 in a year
26:37of working on scaling.

About this transcript

This page contains the full transcript of How I Would Build a $10M Service Business (If I Had to Start Over) by Alex Hormozi, generated from the public captions YouTube serves with the video. The transcript has 6,270 words across 946 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to choose a caption track available on the video.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, caption language selection, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.