AI transcript
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0:01:38 How a middle schooler started a business that eventually made 70 grand in profit in one
0:01:43 year and then ultimately had a six-figure exit at just 21 years old.
0:01:49 What’s up?
0:01:50 What’s up, Nick Lover here.
0:01:51 Welcome to the SideHustle Show, part of the entrepreneur podcast and network.
0:01:54 Yes, the business podcast you can actually apply.
0:01:56 We’re not talking software today.
0:01:58 We’re not talking viral apps.
0:02:00 We’re not talking venture capital.
0:02:01 We’re talking lawn mowing.
0:02:03 Yes, simple, local, low overhead, strong margins, incredible story for you today.
0:02:07 I know it’ll inspire a lot of people to go out there and take action from mudlabscourses.com
0:02:14 and formerly of Yard Boys, Jack Fleming.
0:02:16 Welcome to the SideHustle Show.
0:02:18 Thanks, Nick.
0:02:19 Thanks so much for having me and I’m really excited to talk, share my experience and a
0:02:22 lot of the funny and sad and crazy stories along the way.
0:02:26 You guys have been a cool journey so far and I know you’re just getting started in the
0:02:29 world of business.
0:02:30 Let’s stick around.
0:02:31 You’re going to learn how Jack got his first customers, grew the business, so it wasn’t
0:02:34 relying on him cutting all the grass and ultimately sold it for a six-figure sum.
0:02:38 Talk about giving yourself a great financial foundation at a young age.
0:02:42 That’s a real magic strategy of working for a cash flow plus equity in the business.
0:02:47 Now, you might not be interested in lawn care and I get it.
0:02:49 That’s cool, but you can still apply some of Jack’s broader strategies to whatever niche
0:02:53 you choose.
0:02:54 That’s why I put together this week’s Listener Only bonus.
0:02:57 It’s my big list of 101 service business ideas to get those creative juices flowing.
0:03:02 You can go download that for free at the show notes for this episode.
0:03:05 Just follow the link in the episode description and you’ll get right over there.
0:03:09 Jack, my understanding is you’re 13 years old.
0:03:12 You get the idea.
0:03:13 I got to make some extra money.
0:03:14 I’m going to go cut grass.
0:03:15 Tell me about your first customer, your first job here.
0:03:17 My very first client, it was a rental property.
0:03:20 The client hadn’t mowed it in about six weeks.
0:03:22 I was young and dumb and super naive and I said, “We could do it for 30 bucks and we’ll
0:03:28 probably get it done in 45 minutes.”
0:03:31 Eight hours later, I think I made $278 per hour average and I didn’t subtract expenses
0:03:38 because I didn’t want to lose money on my first job.
0:03:40 I probably broke even my very first job last Saturday and I was like, “Wow, what did I actually
0:03:46 get myself into?”
0:03:47 That was the moment I was like, “Wow, this might be a little bit more challenging than
0:03:50 I actually thought it would.”
0:03:51 Yeah.
0:03:52 Well, good on you for getting out there and getting a yes.
0:03:53 I don’t know how many doors you had to knock on before somebody said yes to you, but somebody
0:03:58 did.
0:03:59 Somebody hired you and you learned a valuable lesson, underbid the work required, but what
0:04:03 happens after that?
0:04:04 One of my best friends found out the night before I was just going to go knock on doors
0:04:08 in my neighborhood and see if I could basically get some clients, get some lawn mowing projects.
0:04:12 He was like, “Jack, let me come with you.”
0:04:14 I was like, “Sure.
0:04:15 Two’s better than one.”
0:04:16 Yeah.
0:04:17 Safety in numbers.
0:04:18 Yeah.
0:04:19 Exactly.
0:04:20 We were these little cute 13-year-old kids.
0:04:21 I was like, “I need to…”
0:04:22 I don’t know.
0:04:23 If there’s two of us, I’ll feel more confident and a little bit less scared when I go and
0:04:25 knock on all these strangers’ doors.
0:04:27 I jumped on Canva, I remember, and I printed out a one-page homemade granola-looking little
0:04:34 flyer that had my name, had my phone number, our email, and then our services, a lawn mowing
0:04:39 between like $20 and $30, pet waste cleanup, I think I charged $3 for as an add-on service.
0:04:45 We basically printed out a bunch.
0:04:48 I think over the next week, week and a half, we knocked on about a thousand or more houses.
0:04:53 Wow.
0:04:54 Yeah.
0:04:55 We just made a little cute pitch.
0:04:56 I’d knock on the door and I would say, “Hi, my name’s Jack.
0:04:58 I live in the neighborhood.”
0:04:59 I’d get quiet.
0:05:00 Then Nathan would go, “My name’s Nathan.”
0:05:03 Then I would say, “We’re like, I want to know if you wanted any yard care services
0:05:06 today.”
0:05:07 Then I learned, because I heard on a podcast, you’re supposed to stay quiet at that point
0:05:10 and just really listen, and typically when you’re 13, they’re really nice.
0:05:15 They’re like, “Oh, no, we’re good.”
0:05:17 I’m like, “Oh, well, what about when you’re out of town?”
0:05:19 They’re like, “Oh, I didn’t think of that.”
0:05:21 I’m like, “Yeah, well, we could just do it up until you’re out of town.”
0:05:24 It was just kind of, we got this sales pitch nailed down as we went along and just kind
0:05:29 of grew it all organically through that process.
0:05:31 Yeah.
0:05:32 Really refined that.
0:05:33 What pitch is going to work after hitting a thousand houses?
0:05:35 Yeah.
0:05:36 Exactly.
0:05:37 That’s kind of crazy.
0:05:38 My question with Lawn Mower and really a lot of these home care services, if that home
0:05:42 owner has been there for any length of time, they have a system in place.
0:05:45 They’re either doing it for themselves or they have a service.
0:05:49 It seems hard to break into that unless it’s a huge pain point for them.
0:05:55 We have a very tiny little lawn.
0:05:56 It’s like, “Well, this takes five minutes for me to go do.”
0:05:58 That’s kind of the question.
0:05:59 What market share are you disrupting mostly?
0:06:02 Was it people doing it themselves?
0:06:03 Were you displacing other service providers in the area?
0:06:06 The industry turnover rates super, super high in all service industries.
0:06:10 With us, it’s basically, if you show up on time, you leave ish on time, you charge the
0:06:15 amount of price to the client that you actually said you would, and you don’t show up high
0:06:18 or drunk, you’re about better than 90% of the other services.
0:06:22 Hopefully, they didn’t have to worry about that with 13-year-olds.
0:06:26 But it was the pricing, it was the timing.
0:06:28 For us, our entry was, we started just with a handful of clients in my neighborhood,
0:06:34 and then it was over a nine-season period that we were getting to the point where we
0:06:38 had worked for about 80%, 85% of all the houses in my subdivision, which was a couple hundred
0:06:43 houses at that time.
0:06:44 It was cool because I’d been there for so long, I knew that Mrs. Smith was 93 years
0:06:49 old and had four cats and their names were X, Y, and Z, and then this person just moved
0:06:54 in.
0:06:55 We had all the real estate agents knew who we were because we do work for them.
0:06:58 It kind of just became like we were just the kids in the neighborhood that you would call
0:07:02 whenever you needed an outdoor service done.
0:07:04 But originally, our entry was pretty much, there’s a lot of turnover, so it was like
0:07:08 if a client moved in to the neighborhood that needed a new service or they had issues with
0:07:13 their old service and they were looking around, word of mouth was our biggest marketing factor
0:07:17 because we had an excellent reputation as we still do, and that’s what we really relied
0:07:21 on over time.
0:07:22 Yeah, that makes sense where you show up, when you say you’re going to show up, do what
0:07:26 you say you’re going to do, and be around, be a part of the community.
0:07:29 People feel confident making that recommendation to say, “Oh yeah, I’ve got somebody that
0:07:33 I know and trust and like, and they’ll help take care of you too,” so I can definitely
0:07:37 see how that fuels it over time.
0:07:39 But in the early days, a lot of grass roots, a lot of knocking on doors, and a lot of
0:07:43 rejection I imagine as well.
0:07:45 We had so many rejections that in the moment are super disheartening when you’re 13 years
0:07:49 old and then you look back and it’s kind of funny and it’s a hilarious story to tell.
0:07:53 I remember, I think it was the second house we ever knocked on.
0:07:57 We knocked on this house, this lady came to the door and I knew her son because we were
0:08:00 in the swim team together, and I remember saying, “Hey, is this something you’re interested
0:08:04 in having in your lawnmode?”
0:08:05 I remember her looking at me and going, “Well, if I was going to have anyone do it, I’d have
0:08:09 my son do it,” and so my son needs to work just as much as you, and I remember being
0:08:13 kind of off-put by that because I was like, as a little 13-year-old, I kind of had my
0:08:18 feelings hurt, and I remember now it’s funny because it’s like, you realize that they’re
0:08:22 not necessarily rejecting you.
0:08:24 It’s just that it’s not the right person or not the right service, and through all those
0:08:27 little rejections, you kind of just go, “Oh, it is what it is.
0:08:30 I guess it wasn’t right.”
0:08:31 You just move on, you do more houses, and then you get more clients.
0:08:34 It’s just kind of a natural organic progression.
0:08:35 Yeah.
0:08:36 You develop a thick skin right away.
0:08:38 We had people throw every excuse at me when I was knocking on doors, like, “I don’t believe
0:08:42 in Cole Collie,” and my brother was with me.
0:08:45 He’s like, “It’s not like it’s Jesus,” but a lot of fun stuff came out of that.
0:08:50 You end up signing up a bunch of clients doing this over the course of nine seasons, and I
0:08:54 think that’s what’s interesting here is a lot of common teenage, like, how do I make
0:09:00 money during the summer?
0:09:01 Like, okay, I’ll go cut grass, but to take that from just a summer little side project,
0:09:06 maybe I have a half dozen yards if I’m lucky, to make something that’s really scalable and
0:09:12 thinking about it from the entrepreneurial standpoint of like, how do I get crews in
0:09:15 place to go out and do this?
0:09:17 I imagine doing it yourself, starting out like most service providers, but you talk
0:09:22 about, I guess, delivering the work and the startup costs, like, maybe you borrowed Mama
0:09:26 Dad’s mower and then went from there, but what went into it in terms of the startup costs?
0:09:31 When I started, I was 13, and I actually borrowed my neighbor’s lawn mower that didn’t have
0:09:35 a gas cap.
0:09:36 I had this little maybe 20-year-old lawn mower that I just pushed from house to house, and
0:09:41 then my friend had a weed wacker and a battery-powered blower.
0:09:45 Our sort of costs were zero when we first got started.
0:09:48 Over those nine summers where it progressed to, it was completely different.
0:09:52 Like, our working cash flow by the end was close to $30,000, $40,000 just to keep track
0:09:57 of all the projects we had, all the payroll, all the equipment rentals, material costs.
0:10:02 We had a full-time office manager and staff to manage all incoming leads, estimates, financial.
0:10:07 Wow.
0:10:08 Yeah, and so I would say it was kind of like out of the nine seasons I did it, every three
0:10:11 years the business totally changed.
0:10:13 So the first three years, it was just me and my buddy, and with my parents lawn mower.
0:10:18 Well, honestly, that was just for the first couple of months of that season, but after
0:10:21 it was just some used, cheap equipment that we had.
0:10:25 The next three years, it was starting to be like, “Okay, what is actually tracking your
0:10:28 numbers look like?
0:10:29 Am I actually making money at this project or not?
0:10:32 What’s we’re breaking into social media marketing?
0:10:34 We’re breaking into some more technical construction landscape services like irrigation or maybe
0:10:40 light plant design, and then the last three years was a full-on, all those large landscaping
0:10:45 crew companies you see around where we have full-time office, we have social media marketing,
0:10:49 paid advertising, trained crews, we pull permits.
0:10:54 Our last project we did was for $60,000 and it was a full front and backyard scrape, redo,
0:10:59 new driveways, concrete lighting.
0:11:01 I think their planting budget was $15,000.
0:11:04 People spend way too much money on their yards.
0:11:05 So it’s kind of every three years that’s kind of that transition where the business kind
0:11:10 of, the operations need to change, but it’s kind of like constantly reinventing it as
0:11:13 it went.
0:11:14 Yeah, trying to rebuild that airplane while it’s in flight, and that’s really cool to
0:11:19 see the evolution of that and some huge projects.
0:11:22 Like we’re not talking about going door-to-door pushing a broken lawn mower anymore.
0:11:26 We’re talking about major, major landscaping projects.
0:11:29 Right, exactly.
0:11:30 Yeah.
0:11:31 And that’s where that last three years kind of came in as we, right at 2020, it was actually
0:11:34 a really good year.
0:11:35 That was the year that we transitioned from primarily landscape maintenance.
0:11:40 So like mowing lawns, cleaning yards, replacing mulch into like a landscape construction and
0:11:45 design firm, which that transition came about for two reasons.
0:11:48 I was actually going off to college at that point and I couldn’t mow lawns when I was
0:11:52 out of state.
0:11:53 And then the other reason is the margins were just higher from a construction perspective
0:11:57 and it was easier to land high ticket clients and then work with them over a long period
0:12:00 of time.
0:12:01 Part of me wants to ask, why college?
0:12:03 If you already got this thing that’s a six-figure business as a teenager, like do you really
0:12:07 need to go off and spend all this money on tuition?
0:12:09 I’ve already got this thing.
0:12:11 I could plow that investment into here and hopefully grow it.
0:12:13 You asked that question once.
0:12:14 I ask it to myself like every single day over the last four years, especially when I’m in
0:12:19 my finance class and they’re asking about certain things that I’ve already, definitely
0:12:24 they cover it from a different perspective.
0:12:25 But I’ve real life experience that I think a lot of my other fellow students don’t have.
0:12:29 Yeah.
0:12:30 It’s not just theory.
0:12:31 I guess something to apply this to.
0:12:32 Yeah.
0:12:33 No, like especially like even I remember in school, like we’re uncovering like the importance
0:12:36 of cash flow.
0:12:37 I remember most of the students were zoned out.
0:12:39 I remember thinking to myself, oh yeah, like two months ago when my school called me and
0:12:42 asked for a $20,000 check and I had already made $20,000 that season.
0:12:45 But I started $40,000 of other projects and you can make it on paper, but you still have
0:12:50 to have cash flow.
0:12:51 Like that concept, it was so real to me.
0:12:52 I remember being like, okay, this is probably an area where I’ve learned that it’s a little
0:12:56 bit different for me.
0:12:57 So, I graduated high school in 2019 and I was really stuck because I had a friend that
0:13:04 I had made and met who was about three years older than me.
0:13:07 His name is RJ at Greenworks Landscaping, one of the best character guys I know.
0:13:13 And I remember he spoke with me and said, “Jack, I’m three years ahead of you.
0:13:16 I make a couple hundred thousand dollars a year.
0:13:19 I work six months out of the year and I own my own company and this can be you in two
0:13:23 to three years.”
0:13:24 Right.
0:13:25 He’s laid out the path.
0:13:26 Yeah.
0:13:27 And the best part is he’s such a great guy.
0:13:28 He goes, “And I will show you how to do this.
0:13:30 I’m 18 years old and I’m going, oh my goodness, my dad doesn’t even make a couple hundred
0:13:33 thousand dollars a year.”
0:13:35 And for me, I had to really sit down and think, is this more of an opportunity to bring me
0:13:41 into my next area of life or is this an area where I really want to focus on growing?
0:13:46 And so, for me, I recognize one of my biggest goals was to go to college and to graduate
0:13:51 debt free with my degree rather than looking at this business as my end all be all.
0:13:56 I want to have the largest landscape construction firm in all of Denver, Colorado, which is
0:13:59 where I was located at the time.
0:14:01 Mine was it was an opportunity and a way to get to my bigger goal, which was going in
0:14:05 and actually teaching others how to better run their businesses and actually better operate
0:14:10 their companies.
0:14:11 And so, for me, I saw that through college.
0:14:13 I saw that through getting a degree debt free and I saw my landscaping business as a way
0:14:17 to practice what I want to eventually teach and also pay for that opportunity debt free.
0:14:21 Yeah.
0:14:22 That’s fair.
0:14:23 It’s like, well, I already got something that’s working here and my buddy has laid
0:14:27 out the path.
0:14:28 So, that’s funny.
0:14:29 A friend of my brother is like who we ski with all the time, like similar, like landscaping
0:14:32 business works hard all summer long, but skis almost every single day in the winter
0:14:37 because it’s like, well, I’m not cutting a lot of grass because nothing’s growing
0:14:41 right now.
0:14:42 Exactly.
0:14:43 It’s covered in snow.
0:14:44 More with Jack in just a moment, including how his clients reacted when it was no longer
0:14:46 just him showing up to do the work and the specific profit margins he was targeting right
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0:17:06 I want to talk about the transition from kind of like the scrappy middle school hustlers
0:17:11 going door-to-door to now hiring other people to do the work and if Mrs. Smith and her four
0:17:18 cats, what’s her reaction when somebody else shows up and it’s not Jack showing up to cut
0:17:23 the grass anymore?
0:17:24 Like that first level of going from solo service provider to more of an agency type of business.
0:17:29 Mrs. Smith was very disappointed when she eventually sent an email or saw me because
0:17:33 I would fill in all the time as well when I first was transitioning.
0:17:36 She would say, “I hired you guys because I saw you on the first day and I don’t know
0:17:40 where you went and I explained where I was at, how many hours, there’s only so many
0:17:43 hours in a day and I want to make sure I was doing a good job managing everything.”
0:17:48 Mrs. Smith was very understanding but at that transition it was really difficult, especially
0:17:53 I always worked with one or two other people so it wasn’t just me by myself all the time.
0:17:58 I always would hire friends.
0:18:00 I played soccer in high school so I had three-quarters of my soccer team employed by me was the coach
0:18:05 hated because-
0:18:06 How cool is that?
0:18:07 That’s fantastic.
0:18:08 That’s really cool.
0:18:09 My coach hated it because they’d come to practice dead tired because they walked 15-20 miles
0:18:13 that day and they’re supposed to run around a track out in the heat and they’re already
0:18:17 toast but so for me the transition was I already had recently ever since the beginning broken
0:18:22 into the fact like well if you’re charging the client about let’s say for round numbers
0:18:26 $50 an hour for a project and you only have to pay $20, at that time it was $20 an hour
0:18:32 to one of your employees, well you’re netting the difference $30 an hour difference and
0:18:36 if you can do that with two three people at a time you might be picking up that $60, $80
0:18:41 an hour going directly to you.
0:18:44 For me it was an opportunity well I never had an issue landing the work my issue is always
0:18:48 finding the workers that transition period what started with just my friends but then
0:18:52 it also went to I did LinkedIn posts I did indeed we did a lot of hiring off of like
0:18:59 zip recruiter next door I’ve done so many interviews at Starbucks basically it’s other
0:19:03 high school college kids that come and sit down and you walk this narrow balance of looking
0:19:08 as professional as possible but then also letting them know like at least in the early
0:19:11 days when I was 16 17 years old right right the high school business and I remember all
0:19:17 the time it wasn’t an official role but in my head I was thinking well the more mature
0:19:21 they are the better they’re going to be so I try to only hire people that were older
0:19:23 and wiser than me and so most of our crew was three four five years older than me for
0:19:29 most of the time so I was like one of our crew managers Ethan he joined back in 20 I
0:19:34 want to say 18 I should know that but he just graduated from CU Boulder physics student
0:19:40 remarkably smart just so intelligent he worked with me for years and years and I think he’s
0:19:44 about four or five years older than me which was really helpful because it grows that
0:19:48 level of confidence with crews and employees and clients but it always definitely tricky
0:19:52 when you’re 16 years old hiring a 21 year old yeah and you try to manage somebody older
0:19:59 than you yeah it’s a weird place to be yeah it’s definitely odd after a little bit you
0:20:03 realize you’re all kind of in the same boat and it’s not the end of the world is that
0:20:06 where you like to be in terms of the pricing and margins like a 60% gross margin on labor
0:20:11 you’ve mentioned okay I’m gonna charge the client 50 bucks an hour is all estimate like
0:20:15 how long is this job gonna take but I’m gonna pay 20 to the worker and is that typical for
0:20:21 pricing this type of service it depends so I didn’t know this going in but what I learned
0:20:25 over time is landscape maintenance the margins are a little bit tighter and landscape construction
0:20:30 you’re gonna have a little bit larger margins so on the construction side which is where
0:20:34 we did all of our really detailed number tracking to make sure we’re actually being profitable
0:20:38 on every single job we aim for 40% margin so let’s say if you have a product you bring
0:20:43 in for $10,000 we expect that it be it depends from project to project but around we’ll say
0:20:49 maybe $4,000 of material another $2,000 of labor and then you’ll have about $4,000 left
0:20:54 over in gross profit then from there you still have to subtract overhead and for us typically
0:21:01 it’s around a 20% somewhere between 20 and 30% net profit margin we run on the landscape
0:21:08 construction side overhead in this case would be fuel office staff exactly software stuff
0:21:13 marketing expenses yeah so all like insurance is a big one for construction companies just
0:21:18 because we have a lot of guys out in the field doing nothing dangerous but they work around
0:21:22 heavy machinery equipment training and then other trucks trailers someone drives over
0:21:27 something that pops a tire and it’s $400 and that has to come out of somewhere so okay
0:21:32 no that makes sense that’s helpful to know too and I guess that’s somewhat intuitive
0:21:37 where I’m gonna trade a little bit of margin on the maintenance side in exchange for recurring
0:21:42 week like it’s more predictable like okay every week we’re gonna go and cut this lawn
0:21:46 it’s gonna be part of our regular route and so it becomes simpler and probably more competitive
0:21:51 on that side too like other people try to come in and take that business from you the maintenance
0:21:56 was fun because it’s predictable I started to grow in Colorado the first second week
0:22:00 of April ran through the last week of October you know once a week you charge between $25
0:22:04 and $35 back then now inflation has caused everything to go more expensive but it’s
0:22:08 really predictable whereas the project side you can have a bunch of really great leads
0:22:13 come in for 20 30 $50,000 projects and then it takes three six months to actually finalize
0:22:19 all the details with the client there’s more risk but there’s a lot more reward the more
0:22:23 practice I got at landing those clients that was where the main deciding factor is the
0:22:28 fact I wasn’t there at the beginning and end of the seasons from maintenance so I kind
0:22:33 of didn’t have a choice I had to switch over but it also turned out to be one of the best
0:22:36 decisions we ended up making as well.
0:22:38 Gotcha on the tools and technology you go back to the overhead thing what kind of tools
0:22:44 are you using to manage all the different crews like where they need to be at what time
0:22:48 to hold all this together and try to do it remotely like you said early season late
0:22:51 season.
0:22:52 Every three years it totally changed the first year is real simple we had it was the end
0:22:56 of the third year so we got all set up on Google suite so Google Suites one of the most
0:23:01 underpriced technology packages there are out there it’s so great for starting any sort
0:23:06 of side hustle business and it allowed us to all have our individual emails all share
0:23:10 the same Google calendar and basically just have a place to put all of our documents in
0:23:13 one place so everyone could take a look at things as they needed to.
0:23:17 So for us we just ran our schedule off of Google so we’d open up the notes on a specific
0:23:22 day and we would just scroll down to the notes and we would see that there’s 23 lawns in
0:23:26 there and we would just go in order and the office manager that we had essentially would
0:23:32 just make sure to put them in the right order which was the most efficient route for that
0:23:35 day.
0:23:36 All right so we got Google Suites super powerful tool to help keep everything in one place
0:23:40 anything else on the tools and tech front.
0:23:42 We also use QuickBooks for a while we also looked at entering into working with like
0:23:45 Jobber and some other like CRM as well as scheduling projects.
0:23:50 Those were all really helpful because before it was honestly just me running everything
0:23:54 off a whiteboard in my bedroom and when we had a team in an office and two different
0:23:59 crews three different crews and subcontractors they all can’t see that whiteboard so from
0:24:04 there that’s where we really started leaning heavily into the softwares which for us saved
0:24:08 us so much on cost made us so much more efficient actually created a good opportunity for us
0:24:12 to grow.
0:24:13 Now at what point was the call volume such that you needed an admin staff to help answer
0:24:19 calls and get things scheduled?
0:24:21 Honestly it was probably close to the fifth year when we were doing about north of a hundred
0:24:26 thousand in revenue.
0:24:28 I think I hired it a year late and that was when we were doing about three hundred thousand
0:24:33 in gross revenue.
0:24:34 For us one of the worst days of my life was it was about ten days after quarantine starts
0:24:39 this is the first week of April of 2020.
0:24:42 We had one person post some next door saying oh we gave yard boys a call they were super
0:24:47 helpful if anyone needs anything you should give them a call.
0:24:50 That one post I had probably thirty clients that we had worked for before respond to the
0:24:54 bottom of it saying oh they’re great they’re awesome everyone give them a call.
0:24:58 Everyone in the world was on next door in that time and I think I got forty calls in
0:25:02 twenty four hours and I realized how much I was over my head.
0:25:08 I hired so I have a younger sister named Evelyn I hired Evelyn who was thirteen years old
0:25:13 and I said Evelyn when this phone rings you need a call you need an answer you need to
0:25:18 ask for their email and then I’m going to get your own personal email and then you’re
0:25:21 going to schedule an estimate to follow up with them and we’ll figure out how to best
0:25:25 train you along the way but right now I can’t answer forty calls run two crews and figure
0:25:31 out all these new clients all along the way.
0:25:33 So that was where it was basically like as the plane was flying I kind of like you said
0:25:37 earlier we were building all the processes and services as we went.
0:25:40 Was this through Google voice or is this through job or like how you manage the phone system
0:25:46 or just like your personal cell phone.
0:25:48 So I had a personal cell phone which was one of the worst decisions of my side hustle
0:25:52 idea in that moment we went to two phone numbers so we had a strictly in office number and
0:25:57 then I got my own personal phone number back which was one of the most it took out so much
0:26:01 stress for my life because it gave another kind of barrier for clients being able to
0:26:05 reach me.
0:26:06 So we got the social media and that’s great to have like customer testimonials and have
0:26:11 that kind of go live right at the start of the season basically anything else you mentioned
0:26:16 some paid traffic but what else worked on social and the marketing front to get some
0:26:21 new business in the door after the cold calling days.
0:26:23 Honestly it was word of mouth that was came for us we had a lot of also old fashioned
0:26:28 branding so all of our trucks all of our employees had an employee shirts they all look professional
0:26:32 when they drove by we had yard signs with these little stick on card holder.
0:26:38 So when you’re taking your dog for a walk in the neighborhood you would see this professional
0:26:42 crew working and go oh we need that same thing done in our house to grab a card and keep
0:26:46 walking.
0:26:47 Eventually the last two years got into like more of a paid social media marketing campaign
0:26:52 we worked with a couple other contractors in the area who were north of they’re around
0:26:56 a couple million if not like five or 10 million in gross revenue and that’s what they said
0:27:00 they had noticed the greatest change and so we started breaking into that but even near
0:27:05 the end that wasn’t our bread and butter our bread and butter was next door organic lead
0:27:09 generation and then honestly just paying my office manager to sit there and monitor
0:27:14 at the whole day.
0:27:15 If any new inquiries came in of someone saying hey does anyone have a good recommendation
0:27:19 to redo our backyard and put in a patio we were the first one to comment and then because
0:27:24 we had such a high reputation and quality of work typically we’d have two to four other
0:27:28 clients we had worked for in the area also comment below us and say oh we worked with
0:27:33 yard boys and Jack they’re phenomenal give them a try and the best part is that stuff
0:27:38 stayed on there forever so I still get calls to my personal number right now and that’s
0:27:43 why my voicemail personally now it says if you’re trying to call yard boys give this
0:27:46 number a call just because we have such like a long standing relationship on next door
0:27:51 with all those people.
0:27:52 Okay I like the yard signs with the little stick on card holders as kind of cool as people
0:27:57 and then just like the word of mouth reputation as you know it takes years to build and moments
0:28:01 to ruin if something does go wrong so like you know any horror stories of not being able
0:28:06 to fulfill the work or anything like that.
0:28:08 In all of my time doing my company I got one bad review it directly corresponded to that
0:28:14 week period where I got so many calls right during COVID and I usually didn’t have the
0:28:19 volume control set up it was an elderly lady who I had answered the phone and said I’ll
0:28:26 get back to you in a couple days and I had misplaced her number lost to completely on
0:28:30 my phone call back and then she posts on next door and says yeah I called yard boys but
0:28:37 they haven’t responded and they totally lied to me and I was like oh I can’t find your
0:28:42 number that’s not my goal I just I just completely lost it and so I message right away I’m like
0:28:47 I’m so sorry we’ll get that fixed I call her up I say I’m so sorry so we actually she
0:28:51 won I think a long million at the time we didn’t offer that at that time but I said
0:28:55 I’ve got three hours on a Saturday I don’t have any other work to do I’ll come by and
0:28:59 personally do it I didn’t actually do any work anymore but I was like oh well she seemed
0:29:02 like she was in her 60s 70s I was like I’m more than happy to stop by this what it is
0:29:06 I was like would you mind deleting that just because that was totally my bad or reputations
0:29:10 everything and she goes oh of course not a problem I mowed her lawn for free didn’t charge
0:29:14 her I watered her trees when she was there she asked me and then about two months later
0:29:18 I checked and it was still up and so I called her I said hey is it okay if I get that taken
0:29:23 down I just like really want to make sure we keep a reputation good and she goes I’m
0:29:27 sorry I’m having a bad day my dog dies and hangs up on me and so that repute that thing
0:29:32 is still on next door so I never got it taken down but that’s the only one at the time that
0:29:37 we had before I so our reputation was everything all of our Google reviews were five stars Yelp
0:29:42 was five stars next door is as good as it could be okay yeah I was gonna ask about what role
0:29:48 the Google Maps listing of the Google local business or Yelp played in this it sounds
0:29:52 like yes we did create profiles on there even though starting out like almost subdivision
0:29:57 specific like starting out super super local but going a little bit broader and setting
0:30:01 up those profiles that’s correct yeah so there’s so many competing there’s Yelp there’s home
0:30:05 advisor there’s one called Angie’s List I think it just got rebranded I can’t remember
0:30:09 what it changed into but oh there’s also thumbtack there’s probably about 10 to 15 places where
0:30:16 you can get reviewed on and so for us we had to pick about five that we really focused on
0:30:21 growing and for us that was next door Yelp Facebook Instagram the very last year and
0:30:29 Google reviews okay and because with those kind of four to five we had them tied into
0:30:34 our website so it automatically showed on our website the best reviews popping up there
0:30:39 so that was kind of where we got all of our workers word of mouth organic which is honestly
0:30:43 the best marketing you can do then just standard old-fashioned business cards out in the driveway
0:30:49 next to a lawn sign like what’s cool about the service industry is it’s still a good
0:30:54 10 15 20 years behind everything else if you just kind of implement some technology but
0:31:01 still tie in with those fundamental old-timey marketing things back in the 1950s or earlier
0:31:06 old-fashioned clean branding you’re going to be miles ahead of most of the other people
0:31:10 in the industry yeah that’s one reason I like businesses like this it’s like a lot of the
0:31:15 existing competition they don’t have a website you see like fax us for a quote type of stuff
0:31:20 like no no just make it easy for me to do business I’m used to Amazon Prime like I just
0:31:24 click the button that shows up at my house like easy right like make this easy and Johnny
0:31:29 Robinson from squeegee God on Twitter like doing his window cleaning business is like
0:31:33 so much of the branding and reputation is online it’s the digital presence it’s the
0:31:38 how you answer the phone it’s like you show up if you’re uniform you show up when you
0:31:42 say you’re going to do you charge what you say you’re going to charge like make it easy
0:31:45 make it seamless so that’s one reason I like it the other reason I like these types of
0:31:48 businesses is just growing demand like just people like I don’t want to bother with this
0:31:53 anymore like people hiring out the service and a diminishing labor pool of people who
0:31:57 want to go into blue collar type services so I think it’s a great place to play and
0:32:01 one that you’ve done really well with did you do anything specific to solicit those
0:32:05 Google reviews Facebook reviews Yelp reviews as you’re wrapping up a job yeah of course
0:32:09 so with all of us like how it is we want our reviews being accurate representation of who
0:32:14 we are and the nice part was we always had really happy really awesome clients and that
0:32:21 was just because we went above and beyond kind of the service because with landscaping
0:32:25 construction we are not a product business we are a service business and so does that
0:32:29 mean if at the end of the job they say hey Jack we love to talk to you about the project
0:32:34 you want to sit up in the front porch and just look at the yard I will sit there for two hours
0:32:37 and generally enjoy my time talking with a client that we just did a big scale project
0:32:41 for and so through conversations like that if I can tell that they were really happy
0:32:45 with kind of service provided and how it worked I’ll say one thing that’s really important
0:32:49 to us is getting these reviews and it’s something the best thing that we could do would you
0:32:53 be comfortable filling out a review we won’t tell you what to say we’ll just send you a
0:32:57 couple examples what other people have done and for us it was 95% of the time they would
0:33:01 say oh of course we’d love to in those reviews since they’re all organic they would highlight
0:33:05 different factors that I might not even thought to mention but they’re like oh they got back
0:33:08 to us on time oh Jack took his shoes off before he went in the house like those little details
0:33:12 that kind of set you apart because you are a service based company okay yeah that’s kind
0:33:16 of cool and then it allows you to branch out to hopefully other nearby cities or suburbs
0:33:22 that might be looking and can find you in maps where it’s like oh that was outside of our
0:33:27 cold calling radius but they still found us exactly at least with us it was our reputation
0:33:32 is everything and that’s kind of a misnomer I think a lot of people kind of look at service
0:33:38 industries of whether it’s plumber electrician landscape construction company as like a lower
0:33:43 paid lower wage job and it definitely is for some but it’s funny most of the time from
0:33:49 what I’ve been hearing through my experiences starting out even as like I was 16 17 in high
0:33:55 school I was making about $500 $600 a day in profit four years ago and that was me waking
0:34:01 up yeah it’s insane money yeah and it’s not rocket science it’s just cutting grass and
0:34:08 I would listen to a bunch of business podcast whether it’s from Wall Street Journal or Guy
0:34:12 Ross and I was learning about business somebody cared about making money making $500 a day
0:34:17 getting a really bad farmer’s tan but at 17 years old that’s all really pretty straightforward
0:34:22 so it’s funny that like there’s a huge opportunity here and people just they just don’t really
0:34:26 know which is kind of what the cool part was is it’s like it’s overlooked because it’s
0:34:31 so obvious yeah there’s a lot of people toiling away looking for that elusive passive income
0:34:36 stream where you might be better off in the near term especially just going out and solving
0:34:41 somebody’s problem yeah no that’s a good way to put it more with Jack in just a moment
0:34:45 including dealing with imposter syndrome bidding on some of these bigger projects and setting
0:34:49 up the business for a six-figure exit right after this I never thought I’d say this but
0:34:54 another spreadsheet of mine has bit the dust it was my net worth and investment tracking
0:34:59 spreadsheet where I would dutifully log into a dozen different accounts every month to
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0:37:23 that’s Squarespace dot com slash side hustle toward the end of this thing what was like
0:37:29 a day in the life logistics for you was this bidding jobs was this trying to play puppet
0:37:33 master on the different crews you got to go here you got to go here what was your role
0:37:38 at the end of this thing I think probably about midway through or to the end of my business
0:37:42 I realized that when you run a business you make your money when you don’t spend your
0:37:47 time running the business but you spend your time fixing it and making the business run
0:37:52 better and that was a hard transition for me because I’m used to overshort a crew I’m
0:37:59 1718 19 years old I can go move some rocks for eight hours yeah yeah I’ll just go do it
0:38:03 right yeah right and so for me one year I set a hard line of this year jack doesn’t do
0:38:09 any work and it’s not because I’m lazy it’s just because if I move rocks for 12 hours
0:38:13 I probably already had 15 hours of other stuff I need to do and that’s going to be late now
0:38:18 and so a day in the life for me those last couple years is I woke up before all of our
0:38:23 crews woke up so we started a project at 7 30 in the morning I woke up at 6 45 7 right
0:38:28 then went downstairs open up my laptop my phone responded some emails respond some client
0:38:33 questions followed up on estimates then typically by 8 8 30 I went to the job site talked with
0:38:39 the manager walked around really having that hands on making sure that everything was done
0:38:44 up to my standards because as the owner like you’re going to catch things that a client
0:38:49 would catch that just the people doing the work they’re there the whole day they’re
0:38:52 just going to miss yeah this was like mind-blowingly frustrating for me when I was running painting
0:38:56 crews in college yes it’s like yeah you can see from your truck on the sidewalk like before
0:39:01 you can get out of the car did no one notice that the masking didn’t come off that upper
0:39:04 window or what it’s just like I don’t know like the attention to detail just like was
0:39:09 really frustrating it’s like come on guys like if you don’t have time to do it right
0:39:12 when do you have time to do it over like all the guys worked with were really great but
0:39:16 occasionally we hired some people that I had to let go and I do remember and just as one
0:39:22 funny story I remember going to a job one day and telling the guys okay you can go ahead
0:39:27 and start planting those plants because he was sitting on a shovel not moving it yeah
0:39:31 and he goes okay sounds good and he like brings a couple plants over and they’re all in those
0:39:34 plastic Home Depot but we didn’t have them from Home Depot but those standard plastic
0:39:38 buckets that are disposable and remember he looks at the plant and he looks at me and
0:39:43 he goes do I take the plastic off before I plant it or do I plant it with the pot and
0:39:47 I remember being like like okay it’s a good thing I’m here just double check sir because
0:39:51 that’s when you go and you plant all these different plants in the buckets you’re supposed
0:39:54 to take off or just little things where we had one time the guys were so tired as the
0:39:59 end of the day we had two different shades of mulch and they had mixed them and put them
0:40:03 all throughout the yard so we had like a red and a brown mulch mixed together which to
0:40:08 me it’s extremely obvious when you look but they’ve been there all day so they were just
0:40:12 moving they’re trying to get out of there and so when my day in the life it was wake
0:40:16 up emails real quick double check to make sure everything’s going in the right direction
0:40:20 no plastic pots were in the holes and then run some deliveries also on the phone with
0:40:26 suppliers, clients confirming questions or answering things while I’m doing deliveries
0:40:30 and then from about 11 to 2 in the afternoon I went to the same Starbucks every single
0:40:36 day sat on my computer and then just worked on whatever as the business owner whether
0:40:41 it’s payroll fixing a glitch on the website running our next email ad campaigns answering
0:40:47 questions from the office that’s kind of how the day in the life was near the end.
0:40:50 And that’s helpful to hear like still a little bit of hands on like I got to show my face
0:40:54 and like be the leader for these crews and hopefully plug any holes before it sinks the
0:40:59 ship and but also being this business owner and like having a higher level view of things
0:41:05 whereas the business going did you ever run into like the imposter syndrome of biting off
0:41:11 more than you could chew or bidding a five-figure job for the first time or a $25,000 job for
0:41:17 the first time and you’re like can we really get this done?
0:41:21 Do we really know how to deliver?
0:41:22 Yeah, I think that’s a place I perpetually live in is imposter syndrome.
0:41:26 It’s funny even when I was getting ready to do this interview I was like oh my gosh what
0:41:30 if I forget all the stories I did for the last nine years and what if I just don’t have
0:41:35 anything to talk about when you ask me questions and then of course my next thought was well
0:41:39 that’s okay I’m sure you’ll remember as you go along but so I think for me it was big
0:41:44 too because I went to college out of state I was still running things from an operational
0:41:48 side from my dorm but I was in class full time I was studying I played on intramurals
0:41:55 I went to class and did homework and went to the library and at the cafeteria and then
0:42:00 in spring break I would jump on a plane while my friends went to Florida do whatever they’re
0:42:04 going to do I would jump on a plane I would do 25 estimates back to back to back put on
0:42:10 my car heart work boots and ride around my truck and estimate out a couple hundred thousand
0:42:15 dollars of projects and then go right back to college and then go back to being a college
0:42:20 kid again and so for me it’s always been an area where I don’t think I’ve ever felt qualified
0:42:26 and still weird to say like if I told a client oh that’ll be 25,000 dollars like in my head
0:42:30 I’m like oh my gosh what if they know I’m just like 18 years old or 19 and they’re like
0:42:35 no that totally makes sense sounds good and we’ll do it and they’re so happy and then
0:42:39 I get in my truck and I close my eyes and I go all right you’re doing it you’re doing
0:42:43 good just keep on going so that’s a place where I feel like I’ve never fully gotten
0:42:46 out of but it’s a place where I’m trying to continue growing.
0:42:49 And it didn’t start there I think that’s probably the important like you started doing the work
0:42:53 for 275 an hour like you know level up over the course of I’m like I see these big highway
0:42:59 construction crews and they’re working on building like this light rail across the I-90
0:43:04 bridge and it’s like I’m just curious like or was like four generations ago was this
0:43:09 like a little handyman service and they like slowly started bidding bigger and bigger jobs
0:43:13 I kind of ask myself that question like I see these people tackling these projects that
0:43:18 are probably multi-million dollar bids it’s like where’d they start like I’m always curious
0:43:23 the origin story for that so thanks for sharing them the imposter syndrome never really goes
0:43:27 away and it’s just every time like okay let’s learn as we go let’s deliver this and do right
0:43:32 by the clients I want to transition into a portion of getting out of this business or
0:43:37 exiting this business I think to have an exit a six-figure exit under your belt at this
0:43:43 age is something that a lot of entrepreneurs will never see I think the stats are you know
0:43:48 most businesses end up getting shut down rather than sold so I think it’s a really cool plan
0:43:53 to say you know I don’t know if this is what I want to be doing forever and to have said
0:43:56 it up in such a way that somebody else could take it over my transition kind of was two
0:44:01 different phases so in 2020 I started college for the first time I moved from Colorado to
0:44:07 Virginia and we subcontracted out about a hundred weekly clients that we had and as
0:44:12 well as fall cleanup services so all in all is probably about three to four days work
0:44:17 of full-time crew work we found another reputable contractor we had an agreement written up
0:44:23 of my lawyer and he signed we agreed I think it was probably the end of that year after
0:44:28 we’d fulfilled that agreement I went back through and ran the numbers and it dawned
0:44:32 to me that basically I had broken even for subcontracting out for those three or four
0:44:36 months and so my head I go okay well is breaking even a necessary evil like it gives me the
0:44:42 increased income over the summer but then it’s a hassle in the spring and fall to manage
0:44:46 is there an opportunity to essentially sell off these clients and then that way I can
0:44:50 just solely focus on the landscaping side which was higher margin which we had already
0:44:55 done about $200,000 in that previous season for the first time we got in okay me I reached
0:45:01 out to the guy that we had subcontracted to and said hey we’d love to offer you to purchase
0:45:06 these clients is that something you’d be interested in then that was the summer 2021 we signed
0:45:10 a deal for $55,000 which was the purchase of all our client book residential maintenance
0:45:17 client book so any services that were basically with the lawnmowering or an aeration client
0:45:23 spring or fall cleanup things of that nature 55,000 was like six months or so of the net
0:45:29 profit from running that and in the lawn maintenance industry that’s pretty uncommon because none
0:45:36 of them were under contract which is where most the value comes in typically but for
0:45:40 us it made sense because we were trying to transition out and they already had a really
0:45:44 great working relationship with that new service and clients had I think this is what blew
0:45:50 me away the new service had a retention rate I think of close to 90 or 95% which is completely
0:45:56 unheard of I told him I said I’m gonna be honest there’s no guarantee I think if you
0:46:01 do it right you’ll probably keep 70 maybe 80% and he goes okay that makes sense and
0:46:06 in the back of my head I was like you never even really know and I think we checked back
0:46:10 from the following year and he had close to 95% retention and I was like wow that’s spoke
0:46:15 directly to his quality because we actually had trained him to how we ran it and then
0:46:19 also that ease of transition between the two okay so for the buyer in this case they’re
0:46:23 looking at okay these recurring maintenance clients are not under contract but they have
0:46:27 this ongoing need currently yard boys is solving this problem we can step in and buy that book
0:46:32 of business and hopefully retain those clients this is in lieu of any marketing expense to
0:46:37 go out and get this volume of business ourselves like we could shortcut that by just buying
0:46:40 up this volume of work exactly and that’s where the value came in is it’s not that these
0:46:45 are so precious and valuable it’s just that the time it would take to grow it that was
0:46:48 a deal for them if they’re able to retain it and even from the numbers it turned out
0:46:53 to be a major success for them as well as for us cool alright and then that was part
0:46:57 one what was the second part the following year is 2022 my junior year of college and
0:47:01 I was like alright I do know for sure I’m not gonna be going back in and doing landscaping
0:47:05 after I graduate let me shop around and see if there’s a buyer for the rest of this company
0:47:10 essentially and so which is more challenging because it’s one off projects right yeah it’s
0:47:15 one off projects it’s employees but there’s so much turnover and employees and this one
0:47:21 was even way more tricky a couple years ago in high school I had applied in one first place
0:47:26 in the local Colorado competition for the top youth owned business in that state so I called
0:47:30 up one of my former mentors there and said hey I think I was 21 years old then I sound
0:47:37 21 years old I’m trying to sell business and I’ve never done this before do you have anyone
0:47:41 that I could just talk to that like I mean I already checked with my mom and my dad and
0:47:46 got their opinion but like is there someone that like I can just talk to one of the ladies
0:47:50 I knew there has been majorly helpful over these years said let me give you contact this
0:47:55 guy’s worked on he works for a private equity firm and I’m sure he’d love to talk with you
0:48:01 and so I met with him he had a free opportunity at 645 in the morning downtown so I woke up
0:48:07 and ran downtown got breakfast with him and it was so helpful he basically he said don’t
0:48:14 overcomplicate it you check a couple websites to see what the current market rate is for
0:48:18 those things see how your company compares and then create an offer that basically looks
0:48:23 similar to what you’re seeing open in the market and I remember walking away and going
0:48:28 that’s not that hard for his standard stuff it’s months and months and months of CFA
0:48:32 yeah do diligence and everything yeah of course but I just appreciated that you like
0:48:36 even took the time to talk to a 21 year old kid that had a landscape construction company
0:48:40 so went home ran a bunch of numbers looked at our financials compared to what was kind
0:48:45 of out there then reached out actually to the person that had bought our landscape maintenance
0:48:50 clients and said hey essentially do would you be interested in purchasing the rest of this
0:48:56 business and then transitioning the name as well over with him he said for sure he wanted
0:49:01 to get some more time to continue the maintenance side I want to get some more time to finish
0:49:04 running this through college we set up agreement basically that it was a year year and a half
0:49:08 training program where he got to basically I had a shadow for 16 18 months and allowed
0:49:15 me to really show him what it looked like on a daily basis so that transition concluded
0:49:20 in July of 2023 and from there he took over and started running the business without me
0:49:24 now I still in theory you think you’re done and you can pop the confetti since then I’ve
0:49:30 learned a bunch what it actually looks like to do a proper transition and even since we
0:49:35 have transitioned we’ve definitely have experienced some troubles just because when it goes from
0:49:39 you’re literally running everything to someone that you worked with for even a year two years
0:49:43 three years taking over there’s a lot of stuff that can come up with that so that’s kind of
0:49:48 how that transition worked is it was an opportunity for me because I can move on past up and then
0:49:54 also he could enter new industry that he didn’t necessarily have enough experience and to enter
0:49:58 on his own okay so it wasn’t putting it up for sale on any online business brokerage
0:50:04 like a biz buy sell or anything it was like look already have a relationship with this
0:50:08 potential buyer and just kind of like floating that idea you already bought our maintenance
0:50:12 business what do you think about the other side too exactly yeah and with our long maintenance
0:50:16 clients when we first that first transition period we did shop around with some other
0:50:21 local areas and this just the impression we got in from the research I did it was just
0:50:27 the issue of when you transition from one company to another and there’s no contracts
0:50:31 involved the dollar that they would be willing to spend would be lower than this other person
0:50:36 since they already had the relationship and so that was just we did with the first time
0:50:40 around and then the second time I was like all right there’s a lot being said that you
0:50:43 already in your network you already have relationships with people and you know how they work and
0:50:47 you know how they run their business and we already had seen success and how he transitioned
0:50:50 before and that’s why I decided to go with him again for that second term it’s an interesting
0:50:55 one because it’s like for one off projects that you’re buying basically the team and
0:50:59 their expertise but like you said a lot of employee turnover or there can be it’s like
0:51:03 almost you’re buying the online reputation and the goodwill that you have built like
0:51:09 the marketing engine almost like to even though these are one off projects like I’m reasonably
0:51:13 confident that more lead flow is going to be coming through on the basis of this foundation
0:51:18 that you built.
0:51:19 Yeah and the other thing that I would add as well too is it wasn’t as simple as oh yeah
0:51:23 we’ll sell you our website for a couple hundred grand or whatever that wasn’t it it was we’ll
0:51:27 transition midseason so July’s peak everything and it will come with whatever contracts we
0:51:32 already have under contract as well with since we did the year previous there’s no guarantee
0:51:36 so when we actually ended up did transitioning we transitioned over contracts and then basically
0:51:42 worked on training up his guys as well too so and then it’s also and this is kind of
0:51:47 going into kind of my next endeavors is a lot of the stuff I learned along the way it
0:51:52 took me a total of nine summers to basically make the wrong choice or you started when you
0:51:57 were practically a baby you know yeah I was a little baby yeah but like you make the wrong
0:52:02 choice and then you do something wrong you fix that and then you know what the right
0:52:07 thing is and so the real value came in that training along the way is don’t do this don’t
0:52:11 do this this is how we do it and there’s always opportunity for more growth but this is what
0:52:17 we found that works this is how you run your employees your operations your whatever it
0:52:22 is that you’re actually working with yeah absolutely so that leads us nicely into well
0:52:27 what’s next for you what’s got you excited these days sounds like you kind of winding
0:52:30 down the transition phase and now off to the next project I walk in graduation in May so
0:52:36 I’m super not even graduated yet well congrats on that yeah no thank you I’m all finished
0:52:41 what I really learned in high school is yes I made a really good amount of money I paid
0:52:46 for my college debt free I was able to I’ve been to Europe twice I paid for I went to
0:52:52 New Zealand for an internship in real estate development consulting like I’ve had a lot
0:52:56 of great opportunities and it’s paid for a lot of opportunities for me to grow into
0:53:00 however the real growth was in learning what it looks like to actually be an entrepreneur
0:53:07 and like learn how to talk to clients and how to know what it is to actually figure
0:53:14 out if you’re profitable or how to sell services and I learned all that in high school for
0:53:19 what I’m working on now is basically I’m building an online course that’s going to be launching
0:53:22 June 1st where it’s really designed for other high school students to really start businesses
0:53:28 that they want to start and from my perspective like my parents all the time were asked how
0:53:34 did your son learn that and for me it was because of the practice and like the failure
0:53:38 in you it was doing the thing trial and error yeah exactly yeah and for me I just wanted
0:53:43 to be able to basically create a course where you’re able to follow it takes kind of guesswork
0:53:48 and that scared like oh like do I get clients do I buy a lawnmower do I go on social media
0:53:54 like whatever it is like I want to be able to create an opportunity for because a bunch
0:53:59 of my friends in high school the only difference between me and my friends in high school is
0:54:02 I knocked on doors before I fully realized how difficult it’s going to be like there’s
0:54:08 nothing real special about my story it was just the fact that like I did it before I
0:54:11 really thought it through so I wanted to create a course that allows students to know what
0:54:16 that next step is what it actually looks like and to take a lot of the guesswork and the
0:54:19 nerves out of what it looks like and then also give parents a way to allow their kids
0:54:23 in high school to maybe whether it’s mature grow up when we learn what it actually looks
0:54:27 like how business works how to manage money how to talk to people whatever it is that they’re
0:54:31 really looking want to actually grow and I guess the my generation would be called like
0:54:35 adulting how to adult in a better way so yeah you know instead of looking for a job go build
0:54:40 yourself your own job build your own income streams and I love this call to well I didn’t
0:54:45 really give myself a chance to overanalyze and overthink it I just started knocking on
0:54:49 doors and sooner or later people said yes and then I had to figure out the next table
0:54:53 how am I going to deliver this work and then enough people said yes that I needed to hire
0:54:57 help to go deliver this work and then I hired my sister to answer the phones and exactly
0:55:01 like such a cool story. So this is mudlabscourses.com you can find Jack’s upcoming course offerings
0:55:08 over there we’ll be sure to link that up in the show notes as well again mud labs courses
0:55:13 super inspiring story really appreciate you stopping by and sharing the goods on how you
0:55:17 built and eventually sold this thing. Let’s wrap this up with your number one tip for
0:55:23 side hustle nation. Wherever you’re at you probably have enough information to get started
0:55:28 and you know what you need to do to start you’re probably not starting just because
0:55:32 you’re nervous to. I think there’s a lot of for me even like when I was going to start
0:55:37 this new like building the course I was like oh like do I need to do some more interviews
0:55:41 or do some more podcast interviews or really understand my business more. No I have an
0:55:45 understanding of what knowledge I’ve grown in and so I just need to take that next step
0:55:51 and offer that and not get stuck and overthink or get nervous I just need to go for it and
0:55:56 so for me I think there’s a lot of beauty and just kind of stepping out before you really
0:56:00 know exactly what your next step is but you know what the first thing you need to do is
0:56:04 so for me I would say that’s going to be my number one take away and that I really built
0:56:09 my business around is I didn’t let myself overthink things because I’m a natural overthinker
0:56:13 I just landed a project for twenty thirty thousand and went oh my goodness I need to
0:56:18 figure out how to do this one part of the project that I’ve never learned before and
0:56:22 I need to what does it look like for me to get there that was how I just I set a deadline
0:56:26 and then I had to fulfill it by that time and I was impressed with how things were able
0:56:32 to work out and I’m definitely totally believe that that’s an opportunity for everyone else
0:56:35 as well too. Yeah this is the entrepreneurial skill set it’s figuring it out every step
0:56:40 of the way is up against the ceiling of your skills and ability and it’s your job to figure
0:56:45 it out where do we go from here so I like this call you probably have enough information
0:56:49 to get started you don’t need to know steps two through ten to get started you just got
0:56:53 to do the first thing so I like that one a couple takeaways before we wrap up one is
0:56:57 this mention of yours to be the business owner and not the business doer and trying to get
0:57:01 out of that as soon as possible to kind of wear that CEO hat and if that’s where you
0:57:06 want to scale the thing have you love cutting grass like hey that’s fantastic we had somebody
0:57:11 like if you love teaching video game classes to keep doing the thing right you don’t want
0:57:14 to get rid of a job you love in the name of growth and scale but if that is where you
0:57:19 want to go then you got to be the CEO you got to be the business owner. Second thing
0:57:22 was reputation is everything and to have that foresight as a teenager and to show up on
0:57:29 time and be respectful and especially with people’s property like they got a lot of equity
0:57:34 and money tied up in these things like it’s not that anything isn’t reversible but like
0:57:38 there’s potential damage just screw something up and so you have to be a reputable and respectful
0:57:42 person there because all the branding that can happen in person can also happen online
0:57:46 with the example of people flaming you out on next doors you don’t want that to happen.
0:57:50 Again, your listener only bonus for this episode is my list of 101 service business ideas
0:57:56 that you might be able to apply some of Jack’s tactics to to grow a side hustle of your own.
0:58:01 You can download that for free at the show notes for this episode or just follow the
0:58:04 link in the episode description of your podcast app. We’ve got a whole host of blue collar
0:58:10 service business examples we’ve covered the pooper scooper business the window cleaning
0:58:14 business mobile car detailing there are lots of examples kind of in this ballpark if that
0:58:19 is up your alley so we’re trying to link up a few of those other examples in the show notes
0:58:23 as well but big thanks to Jack for sharing his insight. Thanks to our sponsors for helping
0:58:28 make this content free for everyone. You can hit up side hustle nation dot com slash deals
0:58:33 for all the latest offers from our sponsors in one place. Thanks for supporting the advertisers
0:58:37 that support the show. That’s it for me. Thank you so much for tuning in. If you find
0:58:42 any value in the show the greatest compliment is to share it with a friend so fire off that text
0:58:47 message. Hey, check out the story of this guy who started this teenage business and grew it to six
0:58:52 figures paid for his college really inspiring stuff. I hope you help spread the word in that way
0:58:57 until next time let’s go out there and make something happen and I’ll catch you in the next
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0:01:38 How a middle schooler started a business that eventually made 70 grand in profit in one
0:01:43 year and then ultimately had a six-figure exit at just 21 years old.
0:01:49 What’s up?
0:01:50 What’s up, Nick Lover here.
0:01:51 Welcome to the SideHustle Show, part of the entrepreneur podcast and network.
0:01:54 Yes, the business podcast you can actually apply.
0:01:56 We’re not talking software today.
0:01:58 We’re not talking viral apps.
0:02:00 We’re not talking venture capital.
0:02:01 We’re talking lawn mowing.
0:02:03 Yes, simple, local, low overhead, strong margins, incredible story for you today.
0:02:07 I know it’ll inspire a lot of people to go out there and take action from mudlabscourses.com
0:02:14 and formerly of Yard Boys, Jack Fleming.
0:02:16 Welcome to the SideHustle Show.
0:02:18 Thanks, Nick.
0:02:19 Thanks so much for having me and I’m really excited to talk, share my experience and a
0:02:22 lot of the funny and sad and crazy stories along the way.
0:02:26 You guys have been a cool journey so far and I know you’re just getting started in the
0:02:29 world of business.
0:02:30 Let’s stick around.
0:02:31 You’re going to learn how Jack got his first customers, grew the business, so it wasn’t
0:02:34 relying on him cutting all the grass and ultimately sold it for a six-figure sum.
0:02:38 Talk about giving yourself a great financial foundation at a young age.
0:02:42 That’s a real magic strategy of working for a cash flow plus equity in the business.
0:02:47 Now, you might not be interested in lawn care and I get it.
0:02:49 That’s cool, but you can still apply some of Jack’s broader strategies to whatever niche
0:02:53 you choose.
0:02:54 That’s why I put together this week’s Listener Only bonus.
0:02:57 It’s my big list of 101 service business ideas to get those creative juices flowing.
0:03:02 You can go download that for free at the show notes for this episode.
0:03:05 Just follow the link in the episode description and you’ll get right over there.
0:03:09 Jack, my understanding is you’re 13 years old.
0:03:12 You get the idea.
0:03:13 I got to make some extra money.
0:03:14 I’m going to go cut grass.
0:03:15 Tell me about your first customer, your first job here.
0:03:17 My very first client, it was a rental property.
0:03:20 The client hadn’t mowed it in about six weeks.
0:03:22 I was young and dumb and super naive and I said, “We could do it for 30 bucks and we’ll
0:03:28 probably get it done in 45 minutes.”
0:03:31 Eight hours later, I think I made $278 per hour average and I didn’t subtract expenses
0:03:38 because I didn’t want to lose money on my first job.
0:03:40 I probably broke even my very first job last Saturday and I was like, “Wow, what did I actually
0:03:46 get myself into?”
0:03:47 That was the moment I was like, “Wow, this might be a little bit more challenging than
0:03:50 I actually thought it would.”
0:03:51 Yeah.
0:03:52 Well, good on you for getting out there and getting a yes.
0:03:53 I don’t know how many doors you had to knock on before somebody said yes to you, but somebody
0:03:58 did.
0:03:59 Somebody hired you and you learned a valuable lesson, underbid the work required, but what
0:04:03 happens after that?
0:04:04 One of my best friends found out the night before I was just going to go knock on doors
0:04:08 in my neighborhood and see if I could basically get some clients, get some lawn mowing projects.
0:04:12 He was like, “Jack, let me come with you.”
0:04:14 I was like, “Sure.
0:04:15 Two’s better than one.”
0:04:16 Yeah.
0:04:17 Safety in numbers.
0:04:18 Yeah.
0:04:19 Exactly.
0:04:20 We were these little cute 13-year-old kids.
0:04:21 I was like, “I need to…”
0:04:22 I don’t know.
0:04:23 If there’s two of us, I’ll feel more confident and a little bit less scared when I go and
0:04:25 knock on all these strangers’ doors.
0:04:27 I jumped on Canva, I remember, and I printed out a one-page homemade granola-looking little
0:04:34 flyer that had my name, had my phone number, our email, and then our services, a lawn mowing
0:04:39 between like $20 and $30, pet waste cleanup, I think I charged $3 for as an add-on service.
0:04:45 We basically printed out a bunch.
0:04:48 I think over the next week, week and a half, we knocked on about a thousand or more houses.
0:04:53 Wow.
0:04:54 Yeah.
0:04:55 We just made a little cute pitch.
0:04:56 I’d knock on the door and I would say, “Hi, my name’s Jack.
0:04:58 I live in the neighborhood.”
0:04:59 I’d get quiet.
0:05:00 Then Nathan would go, “My name’s Nathan.”
0:05:03 Then I would say, “We’re like, I want to know if you wanted any yard care services
0:05:06 today.”
0:05:07 Then I learned, because I heard on a podcast, you’re supposed to stay quiet at that point
0:05:10 and just really listen, and typically when you’re 13, they’re really nice.
0:05:15 They’re like, “Oh, no, we’re good.”
0:05:17 I’m like, “Oh, well, what about when you’re out of town?”
0:05:19 They’re like, “Oh, I didn’t think of that.”
0:05:21 I’m like, “Yeah, well, we could just do it up until you’re out of town.”
0:05:24 It was just kind of, we got this sales pitch nailed down as we went along and just kind
0:05:29 of grew it all organically through that process.
0:05:31 Yeah.
0:05:32 Really refined that.
0:05:33 What pitch is going to work after hitting a thousand houses?
0:05:35 Yeah.
0:05:36 Exactly.
0:05:37 That’s kind of crazy.
0:05:38 My question with Lawn Mower and really a lot of these home care services, if that home
0:05:42 owner has been there for any length of time, they have a system in place.
0:05:45 They’re either doing it for themselves or they have a service.
0:05:49 It seems hard to break into that unless it’s a huge pain point for them.
0:05:55 We have a very tiny little lawn.
0:05:56 It’s like, “Well, this takes five minutes for me to go do.”
0:05:58 That’s kind of the question.
0:05:59 What market share are you disrupting mostly?
0:06:02 Was it people doing it themselves?
0:06:03 Were you displacing other service providers in the area?
0:06:06 The industry turnover rates super, super high in all service industries.
0:06:10 With us, it’s basically, if you show up on time, you leave ish on time, you charge the
0:06:15 amount of price to the client that you actually said you would, and you don’t show up high
0:06:18 or drunk, you’re about better than 90% of the other services.
0:06:22 Hopefully, they didn’t have to worry about that with 13-year-olds.
0:06:26 But it was the pricing, it was the timing.
0:06:28 For us, our entry was, we started just with a handful of clients in my neighborhood,
0:06:34 and then it was over a nine-season period that we were getting to the point where we
0:06:38 had worked for about 80%, 85% of all the houses in my subdivision, which was a couple hundred
0:06:43 houses at that time.
0:06:44 It was cool because I’d been there for so long, I knew that Mrs. Smith was 93 years
0:06:49 old and had four cats and their names were X, Y, and Z, and then this person just moved
0:06:54 in.
0:06:55 We had all the real estate agents knew who we were because we do work for them.
0:06:58 It kind of just became like we were just the kids in the neighborhood that you would call
0:07:02 whenever you needed an outdoor service done.
0:07:04 But originally, our entry was pretty much, there’s a lot of turnover, so it was like
0:07:08 if a client moved in to the neighborhood that needed a new service or they had issues with
0:07:13 their old service and they were looking around, word of mouth was our biggest marketing factor
0:07:17 because we had an excellent reputation as we still do, and that’s what we really relied
0:07:21 on over time.
0:07:22 Yeah, that makes sense where you show up, when you say you’re going to show up, do what
0:07:26 you say you’re going to do, and be around, be a part of the community.
0:07:29 People feel confident making that recommendation to say, “Oh yeah, I’ve got somebody that
0:07:33 I know and trust and like, and they’ll help take care of you too,” so I can definitely
0:07:37 see how that fuels it over time.
0:07:39 But in the early days, a lot of grass roots, a lot of knocking on doors, and a lot of
0:07:43 rejection I imagine as well.
0:07:45 We had so many rejections that in the moment are super disheartening when you’re 13 years
0:07:49 old and then you look back and it’s kind of funny and it’s a hilarious story to tell.
0:07:53 I remember, I think it was the second house we ever knocked on.
0:07:57 We knocked on this house, this lady came to the door and I knew her son because we were
0:08:00 in the swim team together, and I remember saying, “Hey, is this something you’re interested
0:08:04 in having in your lawnmode?”
0:08:05 I remember her looking at me and going, “Well, if I was going to have anyone do it, I’d have
0:08:09 my son do it,” and so my son needs to work just as much as you, and I remember being
0:08:13 kind of off-put by that because I was like, as a little 13-year-old, I kind of had my
0:08:18 feelings hurt, and I remember now it’s funny because it’s like, you realize that they’re
0:08:22 not necessarily rejecting you.
0:08:24 It’s just that it’s not the right person or not the right service, and through all those
0:08:27 little rejections, you kind of just go, “Oh, it is what it is.
0:08:30 I guess it wasn’t right.”
0:08:31 You just move on, you do more houses, and then you get more clients.
0:08:34 It’s just kind of a natural organic progression.
0:08:35 Yeah.
0:08:36 You develop a thick skin right away.
0:08:38 We had people throw every excuse at me when I was knocking on doors, like, “I don’t believe
0:08:42 in Cole Collie,” and my brother was with me.
0:08:45 He’s like, “It’s not like it’s Jesus,” but a lot of fun stuff came out of that.
0:08:50 You end up signing up a bunch of clients doing this over the course of nine seasons, and I
0:08:54 think that’s what’s interesting here is a lot of common teenage, like, how do I make
0:09:00 money during the summer?
0:09:01 Like, okay, I’ll go cut grass, but to take that from just a summer little side project,
0:09:06 maybe I have a half dozen yards if I’m lucky, to make something that’s really scalable and
0:09:12 thinking about it from the entrepreneurial standpoint of like, how do I get crews in
0:09:15 place to go out and do this?
0:09:17 I imagine doing it yourself, starting out like most service providers, but you talk
0:09:22 about, I guess, delivering the work and the startup costs, like, maybe you borrowed Mama
0:09:26 Dad’s mower and then went from there, but what went into it in terms of the startup costs?
0:09:31 When I started, I was 13, and I actually borrowed my neighbor’s lawn mower that didn’t have
0:09:35 a gas cap.
0:09:36 I had this little maybe 20-year-old lawn mower that I just pushed from house to house, and
0:09:41 then my friend had a weed wacker and a battery-powered blower.
0:09:45 Our sort of costs were zero when we first got started.
0:09:48 Over those nine summers where it progressed to, it was completely different.
0:09:52 Like, our working cash flow by the end was close to $30,000, $40,000 just to keep track
0:09:57 of all the projects we had, all the payroll, all the equipment rentals, material costs.
0:10:02 We had a full-time office manager and staff to manage all incoming leads, estimates, financial.
0:10:07 Wow.
0:10:08 Yeah, and so I would say it was kind of like out of the nine seasons I did it, every three
0:10:11 years the business totally changed.
0:10:13 So the first three years, it was just me and my buddy, and with my parents lawn mower.
0:10:18 Well, honestly, that was just for the first couple of months of that season, but after
0:10:21 it was just some used, cheap equipment that we had.
0:10:25 The next three years, it was starting to be like, “Okay, what is actually tracking your
0:10:28 numbers look like?
0:10:29 Am I actually making money at this project or not?
0:10:32 What’s we’re breaking into social media marketing?
0:10:34 We’re breaking into some more technical construction landscape services like irrigation or maybe
0:10:40 light plant design, and then the last three years was a full-on, all those large landscaping
0:10:45 crew companies you see around where we have full-time office, we have social media marketing,
0:10:49 paid advertising, trained crews, we pull permits.
0:10:54 Our last project we did was for $60,000 and it was a full front and backyard scrape, redo,
0:10:59 new driveways, concrete lighting.
0:11:01 I think their planting budget was $15,000.
0:11:04 People spend way too much money on their yards.
0:11:05 So it’s kind of every three years that’s kind of that transition where the business kind
0:11:10 of, the operations need to change, but it’s kind of like constantly reinventing it as
0:11:13 it went.
0:11:14 Yeah, trying to rebuild that airplane while it’s in flight, and that’s really cool to
0:11:19 see the evolution of that and some huge projects.
0:11:22 Like we’re not talking about going door-to-door pushing a broken lawn mower anymore.
0:11:26 We’re talking about major, major landscaping projects.
0:11:29 Right, exactly.
0:11:30 Yeah.
0:11:31 And that’s where that last three years kind of came in as we, right at 2020, it was actually
0:11:34 a really good year.
0:11:35 That was the year that we transitioned from primarily landscape maintenance.
0:11:40 So like mowing lawns, cleaning yards, replacing mulch into like a landscape construction and
0:11:45 design firm, which that transition came about for two reasons.
0:11:48 I was actually going off to college at that point and I couldn’t mow lawns when I was
0:11:52 out of state.
0:11:53 And then the other reason is the margins were just higher from a construction perspective
0:11:57 and it was easier to land high ticket clients and then work with them over a long period
0:12:00 of time.
0:12:01 Part of me wants to ask, why college?
0:12:03 If you already got this thing that’s a six-figure business as a teenager, like do you really
0:12:07 need to go off and spend all this money on tuition?
0:12:09 I’ve already got this thing.
0:12:11 I could plow that investment into here and hopefully grow it.
0:12:13 You asked that question once.
0:12:14 I ask it to myself like every single day over the last four years, especially when I’m in
0:12:19 my finance class and they’re asking about certain things that I’ve already, definitely
0:12:24 they cover it from a different perspective.
0:12:25 But I’ve real life experience that I think a lot of my other fellow students don’t have.
0:12:29 Yeah.
0:12:30 It’s not just theory.
0:12:31 I guess something to apply this to.
0:12:32 Yeah.
0:12:33 No, like especially like even I remember in school, like we’re uncovering like the importance
0:12:36 of cash flow.
0:12:37 I remember most of the students were zoned out.
0:12:39 I remember thinking to myself, oh yeah, like two months ago when my school called me and
0:12:42 asked for a $20,000 check and I had already made $20,000 that season.
0:12:45 But I started $40,000 of other projects and you can make it on paper, but you still have
0:12:50 to have cash flow.
0:12:51 Like that concept, it was so real to me.
0:12:52 I remember being like, okay, this is probably an area where I’ve learned that it’s a little
0:12:56 bit different for me.
0:12:57 So, I graduated high school in 2019 and I was really stuck because I had a friend that
0:13:04 I had made and met who was about three years older than me.
0:13:07 His name is RJ at Greenworks Landscaping, one of the best character guys I know.
0:13:13 And I remember he spoke with me and said, “Jack, I’m three years ahead of you.
0:13:16 I make a couple hundred thousand dollars a year.
0:13:19 I work six months out of the year and I own my own company and this can be you in two
0:13:23 to three years.”
0:13:24 Right.
0:13:25 He’s laid out the path.
0:13:26 Yeah.
0:13:27 And the best part is he’s such a great guy.
0:13:28 He goes, “And I will show you how to do this.
0:13:30 I’m 18 years old and I’m going, oh my goodness, my dad doesn’t even make a couple hundred
0:13:33 thousand dollars a year.”
0:13:35 And for me, I had to really sit down and think, is this more of an opportunity to bring me
0:13:41 into my next area of life or is this an area where I really want to focus on growing?
0:13:46 And so, for me, I recognize one of my biggest goals was to go to college and to graduate
0:13:51 debt free with my degree rather than looking at this business as my end all be all.
0:13:56 I want to have the largest landscape construction firm in all of Denver, Colorado, which is
0:13:59 where I was located at the time.
0:14:01 Mine was it was an opportunity and a way to get to my bigger goal, which was going in
0:14:05 and actually teaching others how to better run their businesses and actually better operate
0:14:10 their companies.
0:14:11 And so, for me, I saw that through college.
0:14:13 I saw that through getting a degree debt free and I saw my landscaping business as a way
0:14:17 to practice what I want to eventually teach and also pay for that opportunity debt free.
0:14:21 Yeah.
0:14:22 That’s fair.
0:14:23 It’s like, well, I already got something that’s working here and my buddy has laid
0:14:27 out the path.
0:14:28 So, that’s funny.
0:14:29 A friend of my brother is like who we ski with all the time, like similar, like landscaping
0:14:32 business works hard all summer long, but skis almost every single day in the winter
0:14:37 because it’s like, well, I’m not cutting a lot of grass because nothing’s growing
0:14:41 right now.
0:14:42 Exactly.
0:14:43 It’s covered in snow.
0:14:44 More with Jack in just a moment, including how his clients reacted when it was no longer
0:14:46 just him showing up to do the work and the specific profit margins he was targeting right
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0:17:06 I want to talk about the transition from kind of like the scrappy middle school hustlers
0:17:11 going door-to-door to now hiring other people to do the work and if Mrs. Smith and her four
0:17:18 cats, what’s her reaction when somebody else shows up and it’s not Jack showing up to cut
0:17:23 the grass anymore?
0:17:24 Like that first level of going from solo service provider to more of an agency type of business.
0:17:29 Mrs. Smith was very disappointed when she eventually sent an email or saw me because
0:17:33 I would fill in all the time as well when I first was transitioning.
0:17:36 She would say, “I hired you guys because I saw you on the first day and I don’t know
0:17:40 where you went and I explained where I was at, how many hours, there’s only so many
0:17:43 hours in a day and I want to make sure I was doing a good job managing everything.”
0:17:48 Mrs. Smith was very understanding but at that transition it was really difficult, especially
0:17:53 I always worked with one or two other people so it wasn’t just me by myself all the time.
0:17:58 I always would hire friends.
0:18:00 I played soccer in high school so I had three-quarters of my soccer team employed by me was the coach
0:18:05 hated because-
0:18:06 How cool is that?
0:18:07 That’s fantastic.
0:18:08 That’s really cool.
0:18:09 My coach hated it because they’d come to practice dead tired because they walked 15-20 miles
0:18:13 that day and they’re supposed to run around a track out in the heat and they’re already
0:18:17 toast but so for me the transition was I already had recently ever since the beginning broken
0:18:22 into the fact like well if you’re charging the client about let’s say for round numbers
0:18:26 $50 an hour for a project and you only have to pay $20, at that time it was $20 an hour
0:18:32 to one of your employees, well you’re netting the difference $30 an hour difference and
0:18:36 if you can do that with two three people at a time you might be picking up that $60, $80
0:18:41 an hour going directly to you.
0:18:44 For me it was an opportunity well I never had an issue landing the work my issue is always
0:18:48 finding the workers that transition period what started with just my friends but then
0:18:52 it also went to I did LinkedIn posts I did indeed we did a lot of hiring off of like
0:18:59 zip recruiter next door I’ve done so many interviews at Starbucks basically it’s other
0:19:03 high school college kids that come and sit down and you walk this narrow balance of looking
0:19:08 as professional as possible but then also letting them know like at least in the early
0:19:11 days when I was 16 17 years old right right the high school business and I remember all
0:19:17 the time it wasn’t an official role but in my head I was thinking well the more mature
0:19:21 they are the better they’re going to be so I try to only hire people that were older
0:19:23 and wiser than me and so most of our crew was three four five years older than me for
0:19:29 most of the time so I was like one of our crew managers Ethan he joined back in 20 I
0:19:34 want to say 18 I should know that but he just graduated from CU Boulder physics student
0:19:40 remarkably smart just so intelligent he worked with me for years and years and I think he’s
0:19:44 about four or five years older than me which was really helpful because it grows that
0:19:48 level of confidence with crews and employees and clients but it always definitely tricky
0:19:52 when you’re 16 years old hiring a 21 year old yeah and you try to manage somebody older
0:19:59 than you yeah it’s a weird place to be yeah it’s definitely odd after a little bit you
0:20:03 realize you’re all kind of in the same boat and it’s not the end of the world is that
0:20:06 where you like to be in terms of the pricing and margins like a 60% gross margin on labor
0:20:11 you’ve mentioned okay I’m gonna charge the client 50 bucks an hour is all estimate like
0:20:15 how long is this job gonna take but I’m gonna pay 20 to the worker and is that typical for
0:20:21 pricing this type of service it depends so I didn’t know this going in but what I learned
0:20:25 over time is landscape maintenance the margins are a little bit tighter and landscape construction
0:20:30 you’re gonna have a little bit larger margins so on the construction side which is where
0:20:34 we did all of our really detailed number tracking to make sure we’re actually being profitable
0:20:38 on every single job we aim for 40% margin so let’s say if you have a product you bring
0:20:43 in for $10,000 we expect that it be it depends from project to project but around we’ll say
0:20:49 maybe $4,000 of material another $2,000 of labor and then you’ll have about $4,000 left
0:20:54 over in gross profit then from there you still have to subtract overhead and for us typically
0:21:01 it’s around a 20% somewhere between 20 and 30% net profit margin we run on the landscape
0:21:08 construction side overhead in this case would be fuel office staff exactly software stuff
0:21:13 marketing expenses yeah so all like insurance is a big one for construction companies just
0:21:18 because we have a lot of guys out in the field doing nothing dangerous but they work around
0:21:22 heavy machinery equipment training and then other trucks trailers someone drives over
0:21:27 something that pops a tire and it’s $400 and that has to come out of somewhere so okay
0:21:32 no that makes sense that’s helpful to know too and I guess that’s somewhat intuitive
0:21:37 where I’m gonna trade a little bit of margin on the maintenance side in exchange for recurring
0:21:42 week like it’s more predictable like okay every week we’re gonna go and cut this lawn
0:21:46 it’s gonna be part of our regular route and so it becomes simpler and probably more competitive
0:21:51 on that side too like other people try to come in and take that business from you the maintenance
0:21:56 was fun because it’s predictable I started to grow in Colorado the first second week
0:22:00 of April ran through the last week of October you know once a week you charge between $25
0:22:04 and $35 back then now inflation has caused everything to go more expensive but it’s
0:22:08 really predictable whereas the project side you can have a bunch of really great leads
0:22:13 come in for 20 30 $50,000 projects and then it takes three six months to actually finalize
0:22:19 all the details with the client there’s more risk but there’s a lot more reward the more
0:22:23 practice I got at landing those clients that was where the main deciding factor is the
0:22:28 fact I wasn’t there at the beginning and end of the seasons from maintenance so I kind
0:22:33 of didn’t have a choice I had to switch over but it also turned out to be one of the best
0:22:36 decisions we ended up making as well.
0:22:38 Gotcha on the tools and technology you go back to the overhead thing what kind of tools
0:22:44 are you using to manage all the different crews like where they need to be at what time
0:22:48 to hold all this together and try to do it remotely like you said early season late
0:22:51 season.
0:22:52 Every three years it totally changed the first year is real simple we had it was the end
0:22:56 of the third year so we got all set up on Google suite so Google Suites one of the most
0:23:01 underpriced technology packages there are out there it’s so great for starting any sort
0:23:06 of side hustle business and it allowed us to all have our individual emails all share
0:23:10 the same Google calendar and basically just have a place to put all of our documents in
0:23:13 one place so everyone could take a look at things as they needed to.
0:23:17 So for us we just ran our schedule off of Google so we’d open up the notes on a specific
0:23:22 day and we would just scroll down to the notes and we would see that there’s 23 lawns in
0:23:26 there and we would just go in order and the office manager that we had essentially would
0:23:32 just make sure to put them in the right order which was the most efficient route for that
0:23:35 day.
0:23:36 All right so we got Google Suites super powerful tool to help keep everything in one place
0:23:40 anything else on the tools and tech front.
0:23:42 We also use QuickBooks for a while we also looked at entering into working with like
0:23:45 Jobber and some other like CRM as well as scheduling projects.
0:23:50 Those were all really helpful because before it was honestly just me running everything
0:23:54 off a whiteboard in my bedroom and when we had a team in an office and two different
0:23:59 crews three different crews and subcontractors they all can’t see that whiteboard so from
0:24:04 there that’s where we really started leaning heavily into the softwares which for us saved
0:24:08 us so much on cost made us so much more efficient actually created a good opportunity for us
0:24:12 to grow.
0:24:13 Now at what point was the call volume such that you needed an admin staff to help answer
0:24:19 calls and get things scheduled?
0:24:21 Honestly it was probably close to the fifth year when we were doing about north of a hundred
0:24:26 thousand in revenue.
0:24:28 I think I hired it a year late and that was when we were doing about three hundred thousand
0:24:33 in gross revenue.
0:24:34 For us one of the worst days of my life was it was about ten days after quarantine starts
0:24:39 this is the first week of April of 2020.
0:24:42 We had one person post some next door saying oh we gave yard boys a call they were super
0:24:47 helpful if anyone needs anything you should give them a call.
0:24:50 That one post I had probably thirty clients that we had worked for before respond to the
0:24:54 bottom of it saying oh they’re great they’re awesome everyone give them a call.
0:24:58 Everyone in the world was on next door in that time and I think I got forty calls in
0:25:02 twenty four hours and I realized how much I was over my head.
0:25:08 I hired so I have a younger sister named Evelyn I hired Evelyn who was thirteen years old
0:25:13 and I said Evelyn when this phone rings you need a call you need an answer you need to
0:25:18 ask for their email and then I’m going to get your own personal email and then you’re
0:25:21 going to schedule an estimate to follow up with them and we’ll figure out how to best
0:25:25 train you along the way but right now I can’t answer forty calls run two crews and figure
0:25:31 out all these new clients all along the way.
0:25:33 So that was where it was basically like as the plane was flying I kind of like you said
0:25:37 earlier we were building all the processes and services as we went.
0:25:40 Was this through Google voice or is this through job or like how you manage the phone system
0:25:46 or just like your personal cell phone.
0:25:48 So I had a personal cell phone which was one of the worst decisions of my side hustle
0:25:52 idea in that moment we went to two phone numbers so we had a strictly in office number and
0:25:57 then I got my own personal phone number back which was one of the most it took out so much
0:26:01 stress for my life because it gave another kind of barrier for clients being able to
0:26:05 reach me.
0:26:06 So we got the social media and that’s great to have like customer testimonials and have
0:26:11 that kind of go live right at the start of the season basically anything else you mentioned
0:26:16 some paid traffic but what else worked on social and the marketing front to get some
0:26:21 new business in the door after the cold calling days.
0:26:23 Honestly it was word of mouth that was came for us we had a lot of also old fashioned
0:26:28 branding so all of our trucks all of our employees had an employee shirts they all look professional
0:26:32 when they drove by we had yard signs with these little stick on card holder.
0:26:38 So when you’re taking your dog for a walk in the neighborhood you would see this professional
0:26:42 crew working and go oh we need that same thing done in our house to grab a card and keep
0:26:46 walking.
0:26:47 Eventually the last two years got into like more of a paid social media marketing campaign
0:26:52 we worked with a couple other contractors in the area who were north of they’re around
0:26:56 a couple million if not like five or 10 million in gross revenue and that’s what they said
0:27:00 they had noticed the greatest change and so we started breaking into that but even near
0:27:05 the end that wasn’t our bread and butter our bread and butter was next door organic lead
0:27:09 generation and then honestly just paying my office manager to sit there and monitor
0:27:14 at the whole day.
0:27:15 If any new inquiries came in of someone saying hey does anyone have a good recommendation
0:27:19 to redo our backyard and put in a patio we were the first one to comment and then because
0:27:24 we had such a high reputation and quality of work typically we’d have two to four other
0:27:28 clients we had worked for in the area also comment below us and say oh we worked with
0:27:33 yard boys and Jack they’re phenomenal give them a try and the best part is that stuff
0:27:38 stayed on there forever so I still get calls to my personal number right now and that’s
0:27:43 why my voicemail personally now it says if you’re trying to call yard boys give this
0:27:46 number a call just because we have such like a long standing relationship on next door
0:27:51 with all those people.
0:27:52 Okay I like the yard signs with the little stick on card holders as kind of cool as people
0:27:57 and then just like the word of mouth reputation as you know it takes years to build and moments
0:28:01 to ruin if something does go wrong so like you know any horror stories of not being able
0:28:06 to fulfill the work or anything like that.
0:28:08 In all of my time doing my company I got one bad review it directly corresponded to that
0:28:14 week period where I got so many calls right during COVID and I usually didn’t have the
0:28:19 volume control set up it was an elderly lady who I had answered the phone and said I’ll
0:28:26 get back to you in a couple days and I had misplaced her number lost to completely on
0:28:30 my phone call back and then she posts on next door and says yeah I called yard boys but
0:28:37 they haven’t responded and they totally lied to me and I was like oh I can’t find your
0:28:42 number that’s not my goal I just I just completely lost it and so I message right away I’m like
0:28:47 I’m so sorry we’ll get that fixed I call her up I say I’m so sorry so we actually she
0:28:51 won I think a long million at the time we didn’t offer that at that time but I said
0:28:55 I’ve got three hours on a Saturday I don’t have any other work to do I’ll come by and
0:28:59 personally do it I didn’t actually do any work anymore but I was like oh well she seemed
0:29:02 like she was in her 60s 70s I was like I’m more than happy to stop by this what it is
0:29:06 I was like would you mind deleting that just because that was totally my bad or reputations
0:29:10 everything and she goes oh of course not a problem I mowed her lawn for free didn’t charge
0:29:14 her I watered her trees when she was there she asked me and then about two months later
0:29:18 I checked and it was still up and so I called her I said hey is it okay if I get that taken
0:29:23 down I just like really want to make sure we keep a reputation good and she goes I’m
0:29:27 sorry I’m having a bad day my dog dies and hangs up on me and so that repute that thing
0:29:32 is still on next door so I never got it taken down but that’s the only one at the time that
0:29:37 we had before I so our reputation was everything all of our Google reviews were five stars Yelp
0:29:42 was five stars next door is as good as it could be okay yeah I was gonna ask about what role
0:29:48 the Google Maps listing of the Google local business or Yelp played in this it sounds
0:29:52 like yes we did create profiles on there even though starting out like almost subdivision
0:29:57 specific like starting out super super local but going a little bit broader and setting
0:30:01 up those profiles that’s correct yeah so there’s so many competing there’s Yelp there’s home
0:30:05 advisor there’s one called Angie’s List I think it just got rebranded I can’t remember
0:30:09 what it changed into but oh there’s also thumbtack there’s probably about 10 to 15 places where
0:30:16 you can get reviewed on and so for us we had to pick about five that we really focused on
0:30:21 growing and for us that was next door Yelp Facebook Instagram the very last year and
0:30:29 Google reviews okay and because with those kind of four to five we had them tied into
0:30:34 our website so it automatically showed on our website the best reviews popping up there
0:30:39 so that was kind of where we got all of our workers word of mouth organic which is honestly
0:30:43 the best marketing you can do then just standard old-fashioned business cards out in the driveway
0:30:49 next to a lawn sign like what’s cool about the service industry is it’s still a good
0:30:54 10 15 20 years behind everything else if you just kind of implement some technology but
0:31:01 still tie in with those fundamental old-timey marketing things back in the 1950s or earlier
0:31:06 old-fashioned clean branding you’re going to be miles ahead of most of the other people
0:31:10 in the industry yeah that’s one reason I like businesses like this it’s like a lot of the
0:31:15 existing competition they don’t have a website you see like fax us for a quote type of stuff
0:31:20 like no no just make it easy for me to do business I’m used to Amazon Prime like I just
0:31:24 click the button that shows up at my house like easy right like make this easy and Johnny
0:31:29 Robinson from squeegee God on Twitter like doing his window cleaning business is like
0:31:33 so much of the branding and reputation is online it’s the digital presence it’s the
0:31:38 how you answer the phone it’s like you show up if you’re uniform you show up when you
0:31:42 say you’re going to do you charge what you say you’re going to charge like make it easy
0:31:45 make it seamless so that’s one reason I like it the other reason I like these types of
0:31:48 businesses is just growing demand like just people like I don’t want to bother with this
0:31:53 anymore like people hiring out the service and a diminishing labor pool of people who
0:31:57 want to go into blue collar type services so I think it’s a great place to play and
0:32:01 one that you’ve done really well with did you do anything specific to solicit those
0:32:05 Google reviews Facebook reviews Yelp reviews as you’re wrapping up a job yeah of course
0:32:09 so with all of us like how it is we want our reviews being accurate representation of who
0:32:14 we are and the nice part was we always had really happy really awesome clients and that
0:32:21 was just because we went above and beyond kind of the service because with landscaping
0:32:25 construction we are not a product business we are a service business and so does that
0:32:29 mean if at the end of the job they say hey Jack we love to talk to you about the project
0:32:34 you want to sit up in the front porch and just look at the yard I will sit there for two hours
0:32:37 and generally enjoy my time talking with a client that we just did a big scale project
0:32:41 for and so through conversations like that if I can tell that they were really happy
0:32:45 with kind of service provided and how it worked I’ll say one thing that’s really important
0:32:49 to us is getting these reviews and it’s something the best thing that we could do would you
0:32:53 be comfortable filling out a review we won’t tell you what to say we’ll just send you a
0:32:57 couple examples what other people have done and for us it was 95% of the time they would
0:33:01 say oh of course we’d love to in those reviews since they’re all organic they would highlight
0:33:05 different factors that I might not even thought to mention but they’re like oh they got back
0:33:08 to us on time oh Jack took his shoes off before he went in the house like those little details
0:33:12 that kind of set you apart because you are a service based company okay yeah that’s kind
0:33:16 of cool and then it allows you to branch out to hopefully other nearby cities or suburbs
0:33:22 that might be looking and can find you in maps where it’s like oh that was outside of our
0:33:27 cold calling radius but they still found us exactly at least with us it was our reputation
0:33:32 is everything and that’s kind of a misnomer I think a lot of people kind of look at service
0:33:38 industries of whether it’s plumber electrician landscape construction company as like a lower
0:33:43 paid lower wage job and it definitely is for some but it’s funny most of the time from
0:33:49 what I’ve been hearing through my experiences starting out even as like I was 16 17 in high
0:33:55 school I was making about $500 $600 a day in profit four years ago and that was me waking
0:34:01 up yeah it’s insane money yeah and it’s not rocket science it’s just cutting grass and
0:34:08 I would listen to a bunch of business podcast whether it’s from Wall Street Journal or Guy
0:34:12 Ross and I was learning about business somebody cared about making money making $500 a day
0:34:17 getting a really bad farmer’s tan but at 17 years old that’s all really pretty straightforward
0:34:22 so it’s funny that like there’s a huge opportunity here and people just they just don’t really
0:34:26 know which is kind of what the cool part was is it’s like it’s overlooked because it’s
0:34:31 so obvious yeah there’s a lot of people toiling away looking for that elusive passive income
0:34:36 stream where you might be better off in the near term especially just going out and solving
0:34:41 somebody’s problem yeah no that’s a good way to put it more with Jack in just a moment
0:34:45 including dealing with imposter syndrome bidding on some of these bigger projects and setting
0:34:49 up the business for a six-figure exit right after this I never thought I’d say this but
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0:37:23 that’s Squarespace dot com slash side hustle toward the end of this thing what was like
0:37:29 a day in the life logistics for you was this bidding jobs was this trying to play puppet
0:37:33 master on the different crews you got to go here you got to go here what was your role
0:37:38 at the end of this thing I think probably about midway through or to the end of my business
0:37:42 I realized that when you run a business you make your money when you don’t spend your
0:37:47 time running the business but you spend your time fixing it and making the business run
0:37:52 better and that was a hard transition for me because I’m used to overshort a crew I’m
0:37:59 1718 19 years old I can go move some rocks for eight hours yeah yeah I’ll just go do it
0:38:03 right yeah right and so for me one year I set a hard line of this year jack doesn’t do
0:38:09 any work and it’s not because I’m lazy it’s just because if I move rocks for 12 hours
0:38:13 I probably already had 15 hours of other stuff I need to do and that’s going to be late now
0:38:18 and so a day in the life for me those last couple years is I woke up before all of our
0:38:23 crews woke up so we started a project at 7 30 in the morning I woke up at 6 45 7 right
0:38:28 then went downstairs open up my laptop my phone responded some emails respond some client
0:38:33 questions followed up on estimates then typically by 8 8 30 I went to the job site talked with
0:38:39 the manager walked around really having that hands on making sure that everything was done
0:38:44 up to my standards because as the owner like you’re going to catch things that a client
0:38:49 would catch that just the people doing the work they’re there the whole day they’re
0:38:52 just going to miss yeah this was like mind-blowingly frustrating for me when I was running painting
0:38:56 crews in college yes it’s like yeah you can see from your truck on the sidewalk like before
0:39:01 you can get out of the car did no one notice that the masking didn’t come off that upper
0:39:04 window or what it’s just like I don’t know like the attention to detail just like was
0:39:09 really frustrating it’s like come on guys like if you don’t have time to do it right
0:39:12 when do you have time to do it over like all the guys worked with were really great but
0:39:16 occasionally we hired some people that I had to let go and I do remember and just as one
0:39:22 funny story I remember going to a job one day and telling the guys okay you can go ahead
0:39:27 and start planting those plants because he was sitting on a shovel not moving it yeah
0:39:31 and he goes okay sounds good and he like brings a couple plants over and they’re all in those
0:39:34 plastic Home Depot but we didn’t have them from Home Depot but those standard plastic
0:39:38 buckets that are disposable and remember he looks at the plant and he looks at me and
0:39:43 he goes do I take the plastic off before I plant it or do I plant it with the pot and
0:39:47 I remember being like like okay it’s a good thing I’m here just double check sir because
0:39:51 that’s when you go and you plant all these different plants in the buckets you’re supposed
0:39:54 to take off or just little things where we had one time the guys were so tired as the
0:39:59 end of the day we had two different shades of mulch and they had mixed them and put them
0:40:03 all throughout the yard so we had like a red and a brown mulch mixed together which to
0:40:08 me it’s extremely obvious when you look but they’ve been there all day so they were just
0:40:12 moving they’re trying to get out of there and so when my day in the life it was wake
0:40:16 up emails real quick double check to make sure everything’s going in the right direction
0:40:20 no plastic pots were in the holes and then run some deliveries also on the phone with
0:40:26 suppliers, clients confirming questions or answering things while I’m doing deliveries
0:40:30 and then from about 11 to 2 in the afternoon I went to the same Starbucks every single
0:40:36 day sat on my computer and then just worked on whatever as the business owner whether
0:40:41 it’s payroll fixing a glitch on the website running our next email ad campaigns answering
0:40:47 questions from the office that’s kind of how the day in the life was near the end.
0:40:50 And that’s helpful to hear like still a little bit of hands on like I got to show my face
0:40:54 and like be the leader for these crews and hopefully plug any holes before it sinks the
0:40:59 ship and but also being this business owner and like having a higher level view of things
0:41:05 whereas the business going did you ever run into like the imposter syndrome of biting off
0:41:11 more than you could chew or bidding a five-figure job for the first time or a $25,000 job for
0:41:17 the first time and you’re like can we really get this done?
0:41:21 Do we really know how to deliver?
0:41:22 Yeah, I think that’s a place I perpetually live in is imposter syndrome.
0:41:26 It’s funny even when I was getting ready to do this interview I was like oh my gosh what
0:41:30 if I forget all the stories I did for the last nine years and what if I just don’t have
0:41:35 anything to talk about when you ask me questions and then of course my next thought was well
0:41:39 that’s okay I’m sure you’ll remember as you go along but so I think for me it was big
0:41:44 too because I went to college out of state I was still running things from an operational
0:41:48 side from my dorm but I was in class full time I was studying I played on intramurals
0:41:55 I went to class and did homework and went to the library and at the cafeteria and then
0:42:00 in spring break I would jump on a plane while my friends went to Florida do whatever they’re
0:42:04 going to do I would jump on a plane I would do 25 estimates back to back to back put on
0:42:10 my car heart work boots and ride around my truck and estimate out a couple hundred thousand
0:42:15 dollars of projects and then go right back to college and then go back to being a college
0:42:20 kid again and so for me it’s always been an area where I don’t think I’ve ever felt qualified
0:42:26 and still weird to say like if I told a client oh that’ll be 25,000 dollars like in my head
0:42:30 I’m like oh my gosh what if they know I’m just like 18 years old or 19 and they’re like
0:42:35 no that totally makes sense sounds good and we’ll do it and they’re so happy and then
0:42:39 I get in my truck and I close my eyes and I go all right you’re doing it you’re doing
0:42:43 good just keep on going so that’s a place where I feel like I’ve never fully gotten
0:42:46 out of but it’s a place where I’m trying to continue growing.
0:42:49 And it didn’t start there I think that’s probably the important like you started doing the work
0:42:53 for 275 an hour like you know level up over the course of I’m like I see these big highway
0:42:59 construction crews and they’re working on building like this light rail across the I-90
0:43:04 bridge and it’s like I’m just curious like or was like four generations ago was this
0:43:09 like a little handyman service and they like slowly started bidding bigger and bigger jobs
0:43:13 I kind of ask myself that question like I see these people tackling these projects that
0:43:18 are probably multi-million dollar bids it’s like where’d they start like I’m always curious
0:43:23 the origin story for that so thanks for sharing them the imposter syndrome never really goes
0:43:27 away and it’s just every time like okay let’s learn as we go let’s deliver this and do right
0:43:32 by the clients I want to transition into a portion of getting out of this business or
0:43:37 exiting this business I think to have an exit a six-figure exit under your belt at this
0:43:43 age is something that a lot of entrepreneurs will never see I think the stats are you know
0:43:48 most businesses end up getting shut down rather than sold so I think it’s a really cool plan
0:43:53 to say you know I don’t know if this is what I want to be doing forever and to have said
0:43:56 it up in such a way that somebody else could take it over my transition kind of was two
0:44:01 different phases so in 2020 I started college for the first time I moved from Colorado to
0:44:07 Virginia and we subcontracted out about a hundred weekly clients that we had and as
0:44:12 well as fall cleanup services so all in all is probably about three to four days work
0:44:17 of full-time crew work we found another reputable contractor we had an agreement written up
0:44:23 of my lawyer and he signed we agreed I think it was probably the end of that year after
0:44:28 we’d fulfilled that agreement I went back through and ran the numbers and it dawned
0:44:32 to me that basically I had broken even for subcontracting out for those three or four
0:44:36 months and so my head I go okay well is breaking even a necessary evil like it gives me the
0:44:42 increased income over the summer but then it’s a hassle in the spring and fall to manage
0:44:46 is there an opportunity to essentially sell off these clients and then that way I can
0:44:50 just solely focus on the landscaping side which was higher margin which we had already
0:44:55 done about $200,000 in that previous season for the first time we got in okay me I reached
0:45:01 out to the guy that we had subcontracted to and said hey we’d love to offer you to purchase
0:45:06 these clients is that something you’d be interested in then that was the summer 2021 we signed
0:45:10 a deal for $55,000 which was the purchase of all our client book residential maintenance
0:45:17 client book so any services that were basically with the lawnmowering or an aeration client
0:45:23 spring or fall cleanup things of that nature 55,000 was like six months or so of the net
0:45:29 profit from running that and in the lawn maintenance industry that’s pretty uncommon because none
0:45:36 of them were under contract which is where most the value comes in typically but for
0:45:40 us it made sense because we were trying to transition out and they already had a really
0:45:44 great working relationship with that new service and clients had I think this is what blew
0:45:50 me away the new service had a retention rate I think of close to 90 or 95% which is completely
0:45:56 unheard of I told him I said I’m gonna be honest there’s no guarantee I think if you
0:46:01 do it right you’ll probably keep 70 maybe 80% and he goes okay that makes sense and
0:46:06 in the back of my head I was like you never even really know and I think we checked back
0:46:10 from the following year and he had close to 95% retention and I was like wow that’s spoke
0:46:15 directly to his quality because we actually had trained him to how we ran it and then
0:46:19 also that ease of transition between the two okay so for the buyer in this case they’re
0:46:23 looking at okay these recurring maintenance clients are not under contract but they have
0:46:27 this ongoing need currently yard boys is solving this problem we can step in and buy that book
0:46:32 of business and hopefully retain those clients this is in lieu of any marketing expense to
0:46:37 go out and get this volume of business ourselves like we could shortcut that by just buying
0:46:40 up this volume of work exactly and that’s where the value came in is it’s not that these
0:46:45 are so precious and valuable it’s just that the time it would take to grow it that was
0:46:48 a deal for them if they’re able to retain it and even from the numbers it turned out
0:46:53 to be a major success for them as well as for us cool alright and then that was part
0:46:57 one what was the second part the following year is 2022 my junior year of college and
0:47:01 I was like alright I do know for sure I’m not gonna be going back in and doing landscaping
0:47:05 after I graduate let me shop around and see if there’s a buyer for the rest of this company
0:47:10 essentially and so which is more challenging because it’s one off projects right yeah it’s
0:47:15 one off projects it’s employees but there’s so much turnover and employees and this one
0:47:21 was even way more tricky a couple years ago in high school I had applied in one first place
0:47:26 in the local Colorado competition for the top youth owned business in that state so I called
0:47:30 up one of my former mentors there and said hey I think I was 21 years old then I sound
0:47:37 21 years old I’m trying to sell business and I’ve never done this before do you have anyone
0:47:41 that I could just talk to that like I mean I already checked with my mom and my dad and
0:47:46 got their opinion but like is there someone that like I can just talk to one of the ladies
0:47:50 I knew there has been majorly helpful over these years said let me give you contact this
0:47:55 guy’s worked on he works for a private equity firm and I’m sure he’d love to talk with you
0:48:01 and so I met with him he had a free opportunity at 645 in the morning downtown so I woke up
0:48:07 and ran downtown got breakfast with him and it was so helpful he basically he said don’t
0:48:14 overcomplicate it you check a couple websites to see what the current market rate is for
0:48:18 those things see how your company compares and then create an offer that basically looks
0:48:23 similar to what you’re seeing open in the market and I remember walking away and going
0:48:28 that’s not that hard for his standard stuff it’s months and months and months of CFA
0:48:32 yeah do diligence and everything yeah of course but I just appreciated that you like
0:48:36 even took the time to talk to a 21 year old kid that had a landscape construction company
0:48:40 so went home ran a bunch of numbers looked at our financials compared to what was kind
0:48:45 of out there then reached out actually to the person that had bought our landscape maintenance
0:48:50 clients and said hey essentially do would you be interested in purchasing the rest of this
0:48:56 business and then transitioning the name as well over with him he said for sure he wanted
0:49:01 to get some more time to continue the maintenance side I want to get some more time to finish
0:49:04 running this through college we set up agreement basically that it was a year year and a half
0:49:08 training program where he got to basically I had a shadow for 16 18 months and allowed
0:49:15 me to really show him what it looked like on a daily basis so that transition concluded
0:49:20 in July of 2023 and from there he took over and started running the business without me
0:49:24 now I still in theory you think you’re done and you can pop the confetti since then I’ve
0:49:30 learned a bunch what it actually looks like to do a proper transition and even since we
0:49:35 have transitioned we’ve definitely have experienced some troubles just because when it goes from
0:49:39 you’re literally running everything to someone that you worked with for even a year two years
0:49:43 three years taking over there’s a lot of stuff that can come up with that so that’s kind of
0:49:48 how that transition worked is it was an opportunity for me because I can move on past up and then
0:49:54 also he could enter new industry that he didn’t necessarily have enough experience and to enter
0:49:58 on his own okay so it wasn’t putting it up for sale on any online business brokerage
0:50:04 like a biz buy sell or anything it was like look already have a relationship with this
0:50:08 potential buyer and just kind of like floating that idea you already bought our maintenance
0:50:12 business what do you think about the other side too exactly yeah and with our long maintenance
0:50:16 clients when we first that first transition period we did shop around with some other
0:50:21 local areas and this just the impression we got in from the research I did it was just
0:50:27 the issue of when you transition from one company to another and there’s no contracts
0:50:31 involved the dollar that they would be willing to spend would be lower than this other person
0:50:36 since they already had the relationship and so that was just we did with the first time
0:50:40 around and then the second time I was like all right there’s a lot being said that you
0:50:43 already in your network you already have relationships with people and you know how they work and
0:50:47 you know how they run their business and we already had seen success and how he transitioned
0:50:50 before and that’s why I decided to go with him again for that second term it’s an interesting
0:50:55 one because it’s like for one off projects that you’re buying basically the team and
0:50:59 their expertise but like you said a lot of employee turnover or there can be it’s like
0:51:03 almost you’re buying the online reputation and the goodwill that you have built like
0:51:09 the marketing engine almost like to even though these are one off projects like I’m reasonably
0:51:13 confident that more lead flow is going to be coming through on the basis of this foundation
0:51:18 that you built.
0:51:19 Yeah and the other thing that I would add as well too is it wasn’t as simple as oh yeah
0:51:23 we’ll sell you our website for a couple hundred grand or whatever that wasn’t it it was we’ll
0:51:27 transition midseason so July’s peak everything and it will come with whatever contracts we
0:51:32 already have under contract as well with since we did the year previous there’s no guarantee
0:51:36 so when we actually ended up did transitioning we transitioned over contracts and then basically
0:51:42 worked on training up his guys as well too so and then it’s also and this is kind of
0:51:47 going into kind of my next endeavors is a lot of the stuff I learned along the way it
0:51:52 took me a total of nine summers to basically make the wrong choice or you started when you
0:51:57 were practically a baby you know yeah I was a little baby yeah but like you make the wrong
0:52:02 choice and then you do something wrong you fix that and then you know what the right
0:52:07 thing is and so the real value came in that training along the way is don’t do this don’t
0:52:11 do this this is how we do it and there’s always opportunity for more growth but this is what
0:52:17 we found that works this is how you run your employees your operations your whatever it
0:52:22 is that you’re actually working with yeah absolutely so that leads us nicely into well
0:52:27 what’s next for you what’s got you excited these days sounds like you kind of winding
0:52:30 down the transition phase and now off to the next project I walk in graduation in May so
0:52:36 I’m super not even graduated yet well congrats on that yeah no thank you I’m all finished
0:52:41 what I really learned in high school is yes I made a really good amount of money I paid
0:52:46 for my college debt free I was able to I’ve been to Europe twice I paid for I went to
0:52:52 New Zealand for an internship in real estate development consulting like I’ve had a lot
0:52:56 of great opportunities and it’s paid for a lot of opportunities for me to grow into
0:53:00 however the real growth was in learning what it looks like to actually be an entrepreneur
0:53:07 and like learn how to talk to clients and how to know what it is to actually figure
0:53:14 out if you’re profitable or how to sell services and I learned all that in high school for
0:53:19 what I’m working on now is basically I’m building an online course that’s going to be launching
0:53:22 June 1st where it’s really designed for other high school students to really start businesses
0:53:28 that they want to start and from my perspective like my parents all the time were asked how
0:53:34 did your son learn that and for me it was because of the practice and like the failure
0:53:38 in you it was doing the thing trial and error yeah exactly yeah and for me I just wanted
0:53:43 to be able to basically create a course where you’re able to follow it takes kind of guesswork
0:53:48 and that scared like oh like do I get clients do I buy a lawnmower do I go on social media
0:53:54 like whatever it is like I want to be able to create an opportunity for because a bunch
0:53:59 of my friends in high school the only difference between me and my friends in high school is
0:54:02 I knocked on doors before I fully realized how difficult it’s going to be like there’s
0:54:08 nothing real special about my story it was just the fact that like I did it before I
0:54:11 really thought it through so I wanted to create a course that allows students to know what
0:54:16 that next step is what it actually looks like and to take a lot of the guesswork and the
0:54:19 nerves out of what it looks like and then also give parents a way to allow their kids
0:54:23 in high school to maybe whether it’s mature grow up when we learn what it actually looks
0:54:27 like how business works how to manage money how to talk to people whatever it is that they’re
0:54:31 really looking want to actually grow and I guess the my generation would be called like
0:54:35 adulting how to adult in a better way so yeah you know instead of looking for a job go build
0:54:40 yourself your own job build your own income streams and I love this call to well I didn’t
0:54:45 really give myself a chance to overanalyze and overthink it I just started knocking on
0:54:49 doors and sooner or later people said yes and then I had to figure out the next table
0:54:53 how am I going to deliver this work and then enough people said yes that I needed to hire
0:54:57 help to go deliver this work and then I hired my sister to answer the phones and exactly
0:55:01 like such a cool story. So this is mudlabscourses.com you can find Jack’s upcoming course offerings
0:55:08 over there we’ll be sure to link that up in the show notes as well again mud labs courses
0:55:13 super inspiring story really appreciate you stopping by and sharing the goods on how you
0:55:17 built and eventually sold this thing. Let’s wrap this up with your number one tip for
0:55:23 side hustle nation. Wherever you’re at you probably have enough information to get started
0:55:28 and you know what you need to do to start you’re probably not starting just because
0:55:32 you’re nervous to. I think there’s a lot of for me even like when I was going to start
0:55:37 this new like building the course I was like oh like do I need to do some more interviews
0:55:41 or do some more podcast interviews or really understand my business more. No I have an
0:55:45 understanding of what knowledge I’ve grown in and so I just need to take that next step
0:55:51 and offer that and not get stuck and overthink or get nervous I just need to go for it and
0:55:56 so for me I think there’s a lot of beauty and just kind of stepping out before you really
0:56:00 know exactly what your next step is but you know what the first thing you need to do is
0:56:04 so for me I would say that’s going to be my number one take away and that I really built
0:56:09 my business around is I didn’t let myself overthink things because I’m a natural overthinker
0:56:13 I just landed a project for twenty thirty thousand and went oh my goodness I need to
0:56:18 figure out how to do this one part of the project that I’ve never learned before and
0:56:22 I need to what does it look like for me to get there that was how I just I set a deadline
0:56:26 and then I had to fulfill it by that time and I was impressed with how things were able
0:56:32 to work out and I’m definitely totally believe that that’s an opportunity for everyone else
0:56:35 as well too. Yeah this is the entrepreneurial skill set it’s figuring it out every step
0:56:40 of the way is up against the ceiling of your skills and ability and it’s your job to figure
0:56:45 it out where do we go from here so I like this call you probably have enough information
0:56:49 to get started you don’t need to know steps two through ten to get started you just got
0:56:53 to do the first thing so I like that one a couple takeaways before we wrap up one is
0:56:57 this mention of yours to be the business owner and not the business doer and trying to get
0:57:01 out of that as soon as possible to kind of wear that CEO hat and if that’s where you
0:57:06 want to scale the thing have you love cutting grass like hey that’s fantastic we had somebody
0:57:11 like if you love teaching video game classes to keep doing the thing right you don’t want
0:57:14 to get rid of a job you love in the name of growth and scale but if that is where you
0:57:19 want to go then you got to be the CEO you got to be the business owner. Second thing
0:57:22 was reputation is everything and to have that foresight as a teenager and to show up on
0:57:29 time and be respectful and especially with people’s property like they got a lot of equity
0:57:34 and money tied up in these things like it’s not that anything isn’t reversible but like
0:57:38 there’s potential damage just screw something up and so you have to be a reputable and respectful
0:57:42 person there because all the branding that can happen in person can also happen online
0:57:46 with the example of people flaming you out on next doors you don’t want that to happen.
0:57:50 Again, your listener only bonus for this episode is my list of 101 service business ideas
0:57:56 that you might be able to apply some of Jack’s tactics to to grow a side hustle of your own.
0:58:01 You can download that for free at the show notes for this episode or just follow the
0:58:04 link in the episode description of your podcast app. We’ve got a whole host of blue collar
0:58:10 service business examples we’ve covered the pooper scooper business the window cleaning
0:58:14 business mobile car detailing there are lots of examples kind of in this ballpark if that
0:58:19 is up your alley so we’re trying to link up a few of those other examples in the show notes
0:58:23 as well but big thanks to Jack for sharing his insight. Thanks to our sponsors for helping
0:58:28 make this content free for everyone. You can hit up side hustle nation dot com slash deals
0:58:33 for all the latest offers from our sponsors in one place. Thanks for supporting the advertisers
0:58:37 that support the show. That’s it for me. Thank you so much for tuning in. If you find
0:58:42 any value in the show the greatest compliment is to share it with a friend so fire off that text
0:58:47 message. Hey, check out the story of this guy who started this teenage business and grew it to six
0:58:52 figures paid for his college really inspiring stuff. I hope you help spread the word in that way
0:58:57 until next time let’s go out there and make something happen and I’ll catch you in the next
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$70k in profit at age 19?
Not bad for a summer business. Jack Fleming started his lawn care journey with just one lawn mower, knocking on his neighbors’ doors.
He grew Yard Boyz to generate tens of thousands in profit, allowing him to pay for college debt-free, before selling the business for a six-figure sum.
In this inspiring episode, we cover:
- marketing a local service
- collecting reviews and protecting your reputation
- hiring and scaling
- setting the business up for a 6-figure exit
Full show notes:
How to Start a Lawn Care Business: $70k in Profit at 19
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