HVACR BUSINESS MAY 2024

By Ryan Kalmbach

By Ruth King

CORROSION GRENADE

EDITOR’S CHOICE Management Resource Shelf

If you want to influence someone – and don’t we all – before your next pitch, read “Yes!: 60 Secrets from the Science of Persuasion.” This book is a superb starting point for preparing your case when you have an overriding need to persuade someone.

Yes!: 60 Secrets from the Science of Persuasion

Noah Goldstein, Steve J. Martin and Robert B. Cialdini

This is a timeless book on how to influence someone. While you might not use the term “sale,” in the end, it amounts to the same effort, whether it’s a financial transaction or swaying someone to your opinion. The book offers numerous real-world examples that stimulate your thinking about how to influence someone. Some maintain that persuasion is an art. This book supports its advice with more than 60 years of scientific research on persuasion.

https://www.amazon.com/Yes-60-Secrets-Science-Persuasion/ dp/1781257426

The First-Time Manager

Jim McCormick

If you’re in charge for the first time, grab this book. It’s a big jump when you first become a manager, and everyone wants to calm the butterflies when you realize that now you’re in charge. Don’t let the new role overwhelm you. The First-Time Manager offers insights into essential managerial skills like leading a meeting, hiring employees and overcoming resistance.

https://www.amazon.com/ First-Time-Manager-Jim-McCormick/dp/0814439691

The Bezos Letters: 14 Principles to Grow Your Business Like Amazon

Steve Anderson with Karen Anderson

Amazon is the fastest company to reach $100 billion in valuation. Anderson reviewed, distilled and analyzed Jeff Bezos’ letters to shareholders for more than 20 years. He arrived at 14 fundamental growth principles that helped to unlock the lessons, mindset and steps that Bezos took to create a giant company. Now you’ll know the Bezos approach to business, too.

https://www.amazon.com/ The-Bezos-Letters-audiobook/dp/B07W5T8CMJ/

Freakonomics Radio

Stephen J. Dubner

Freakonomics co-author Stephen J. Dubner uncovers the hidden side of everything. Why is it safer to fly in an airplane than drive a car? How do we decide whom to marry? Why is the media so full of bad news? This former New York Times writer is an insightful interviewer who also covers business topics. A recent podcast covered “Why Are There So Many Bad Bosses?” I love these freaks.

https://freakonomics.com/podcasts

This Week in Startups

Jason Calacanis

The podcast’s host, Jason Calacanis, covers startups, tech, markets, media, and all the hottest topics in business and technology. He also interviews the world’s greatest founders, operators, investors, and innovators. Calacanis authored a book titled “Angel: How to Invest in Technology Startups—Timeless Advice from an Angel Investor Who Turned $100,000 into $100,000,000”on angel investing. In 2018, Calacanis invested in Calm, a meditation app that is valued at $1 billion.

https://thisweekinstartups.com

Entrepreneurs on Fire

John Lee Dumas

Host John Lee Dumas talks shop with exceptional entrepreneurs, including business leaders like Seth Godin, Tim Ferriss, and Gary Vaynerchuk. The actionable ideas they give make this award-winning entrepreneur podcast one of the best in the business category. Dumas is the author of The Common Path to Uncommon Success, which outlines a roadmap to financial freedom. The Entrepreneurs on Fire podcast has a similar theme, with insights and tips that help you follow in the footsteps of successful entrepreneurs.

https://www.eofire.com/podcast/

THE HVACR MANAGEMENT MAGAZINE

TERRY Tanker

Publisher ttanker@hvacrbusiness.com

TOM Perić

Editor in Chief tperic@hvacrbusiness.com

MEGAN LaSalla Art Director mlasalla@hvacrbusiness.com

BRUCE Sprague Circulation Manager bs200264@sbcglobal.net

BARBARA Kerr VP Operations bkerr@hvacrbusiness.com

ADVERTISING

STAFF

TERRY Tanker

Publisher Tel 440-731-8600 ttanker@hvacrbusiness.com

HVACR Business, founded January 1981, is a monthly national trade magazine serving contractors, mechanical engineers, manufacturers, manufacturer representatives, wholesalers, distributors, trade associations, and others in the heating, ventilating, air conditioning and refrigeration (HVACR) industry primarily in the U.S.

The editorial focus and mission of HVACR Business is to provide business owners and managers with the very best business management concepts available. Critical topics covered include leadership, management, strategy, finance, sales, marketing, training, education, staffing, operations, human resources, legal issues, customer service and more. We are dedicated to helping contractors master these key management skills and provide them with the resources necessary to build strong, profitable companies. Every effort is made to provide accurate information, however, the publisher assumes no responsibility for accuracy of submitted advertising and editorial information.

Copyright©2024 by JFT Properties LLC.

No part of this publication may be reproduced or retransmitted in any form or by any means, including, but not limited to, electronic, mechanical, photocopying, recording or any information storage retrieval system, without the prior written permission of the publisher. Unauthorized copying may subject violators to criminal penalties as well as liabilities for substantial monetary damages up to $100,000 per infringement, costs and attorneys’ fees.

This publication should not be utilized as a substitute for professional advice in specific situations. If legal, medical, accounting, financial, consulting, coaching or other professional advice is required, the services of the appropriate professional should be sought. Neither the authors nor the publisher may be held liable in any way for any interpretation or use of the information in this publication.

The authors will make recommendations for solutions for you to explore. Any recommendation is always based on the authors’ research and experience. The information contained herein is accurate to the best of the publisher’s and authors’ knowledge; however, the publisher and authors can accept no responsibility for the accuracy or completeness of such information or for loss or damage caused by any use thereof. Subscription Rates: Free and controlled circulation to qualified subscribers. Non-qualified persons may subscribe at the following rates: U.S. and possessions:

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HVACR Business (ISSN 2153-2877) Copyright ©2024 is published monthly by JFT Properties LLC,31674 Center Ridge Road, Suite 104, North Ridgeville, OH 44039, Phone: 440-731-8600. Periodicals postage is paid at North Ridgeville, OH and additional mailing offices. (USPS 025-431)

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BY TOM PERIĆ

EDITOR’S NOTEBOOK

Resist the Impulse

Afriend of mine was a highly successful bond salesman on Wall Street, so much so that he retired in his mid-40s.

We often talked about why some people are successful, and I always returned to that simple, but not simplistic, question: How did you do it?

That simple listening skill is so hard for many of us to master. Too often we’re not listening, we’re waiting for our turn to speak, as if we are the only one with something important to share.

Allan’s background is the same as many who survive their first few years on Wall Street. He described himself as welleducated, understood his area of the market, enjoyed people, and liked to sell. And he was unafraid to ask for the order, which puts him in the class of a closer.

“So, you really had the package then, all the elements of a topflight salesperson,” I said. He said, “Well, maybe you’re right, but I always had one ace in the hole that helped me to succeed more than anything else. I listened.”

“It’s as simple as that,” I blurted out as he smiled, acknowledging my look of surprise.

It’s never that simple, he said, but it was the one personality trait that I still believe made the most difference in my career.

He admitted he wasn’t always a good listener. He’d interrupt his customers because he couldn’t wait to tell them about a great program he was offering. He wasn’t trying to be rude; it was his natural, exuberant self that cut to the front of the behavioral line.

After one sales call that he didn’t close, a senior manager who accompanied him shared an observation. “You talk too much,” the manager said.

Allan said it was the perfect teachable moment. After that, when he was on a sales call, doing interviews and even on the phone, he taught himself to listen and to clearly understand what the other person was communicating. He found this made his responses better, whether in the form of a question or a statement of fact. That simple listening skill is so hard for many of us to master. Too often we’re not listening, we’re waiting for our turn to speak, as if we are the only one with something important to share.

His observations about selling and listening are dead on. Some people have the impulse to just keep talking or selling. “Just fight the impulse and literally take a silent breath,” he told me.

Body language matters a great deal when you’re communicating in person, Allan said. And, it can betray you if you’re not “really” listening. When you’re talking to someone,

if you’re not engaged, it’s really obvious. Could anything be ruder than to look at your phone during a conversation? This happens all too often when you’re comfortable with the person you’re in front of. How often do you do this with a customer, an employee, your wife or husband? Imagine if you did that during your first meeting – there wouldn’t be a second. Distracted listening shows how little you care about the person in front of you and how little you care about their issues, and how little you respect their time.

Allan had clearly decided that becoming a better listener, something that everyone can do, turned him into a more successful salesperson.

After talking to Allan, I can’t help but wonder how many business and personal relationships have never flourished because of poor listening. After all, the basis of human interaction is how we communicate. If we’re not listening properly, we often end up sending a myriad of mixed signals. From a business perspective, how many sales have we lost because we stopped listening to the customer? How much friction could owners and managers have reduced if they had taken a deep breath, thought carefully, and made an attentive decision before uttering a snap decision?

Allan’s observations served as a valuable reminder to me that we can all improve our listening game. You would be hard-pressed to read a book on communications or leadership that doesn’t mention enhancing your listening skills.

Given my conversation with Allan, I couldn’t resist offering a few salient tips that could help all of us become better listeners. These include:

1. Give the person talking your full attention (put that phone away).

2. Approach each statement you disagree on with an open mind. Don’t make shoot-from-the-hip judgments.

3. Practice patience. It’s a virtue shared by every good listener.

4. Avoid interrupting. Let the speaker finish what they want to say.

5. When you’re done saying what you want to say, stop. Follow these tips, and you might be pleasantly surprised by what you can learn from people. That, in turn, could help make you a more interesting conversationalist and more influential. u

Resist the impulse to talk. Just listen.

HOW TO WORK WITH AN EXECUTIVE RECRUITER

BY STEFFAN BUSCH

So, you need a new person on your leadership team but don’t have time to find that person yourself. What do you do?

You may have an in-house recruiter, but that person’s primary responsibility is finding and hiring technicians, call center representatives, and office staff. Finding a leadership-level employee takes a lot of time, which your in-house recruiter may not have.

A

recruiter who understands the home services model and understands a service manager’s role and responsibilities in this industry is key.

But how does a relationship with an executive recruiter work?

Great question. Here are some key points to consider when enlisting the expertise of an executive recruiter.

1. Pricing

Executive recruiters charge varying fees. The fee is typically a percentage of the placed candidate’s first year of compensation, and it usually comes with a guarantee to protect you if the candidate turns over within the first three

This is where an executive recruiter can be a tremendous asset – they can find that leadership-level employee for you. This is what I do; I’m an executive recruiter for Nexstar Network. Many of the company leaders I support recognize that there’s great value and a strong ROI for them when they use this kind of specialty recruiting service. In recent years, I’ve helped place dozens of leaders at contractor business locations of all sizes – the need is there, no matter if you’ve got five trucks or 50 at your company.

to six months. This is typically outlined in a contract that the recruiter will send you. Make sure you understand the pricing and payment terms before signing the contract.

2. Industry experience

Does the executive recruiter have prior experience recruiting people in our industry? If not, there could be a learning curve. The process could take longer, as there may be a few “false starts” regarding the candidates the recruiter is sending and recommending to you.

When selecting an executive recruiter, it’s essential to choose a professional

with specific industry experience, as that recruiter most likely has contacts with right-fit people across the country that they can rely on for connections, applicants and referrals. A recruiter who understands the home services model and understands a service manager’s role and responsibilities in this industry is key. For example, you might need to ensure that the candidates are familiar with the home service model and not experienced working for large, multifamily companies, new construction or commercial services.

3. Consistent communication

Once you’ve engaged the executive recruiter, clear, consistent, and timely communication is vital. The recruiter’s job is to find a qualified candidate with the character, competence, and

chemistry needed to perform the job at a high level and in a timely manner. As the hiring manager, be transparent and communicative with the recruiter so they can zero in on the suitable candidates for your job and save everyone time. Was the candidate a fit? Why or why not? Let the recruiter know. Give the recruiter timely feedback as soon as possible after the interview so the recruiter can communicate the feedback to the candidate and all parties can move on. I can speak to this from experience. The hiring managers I’ve worked with who have been prompt in their feedback and communication have consistently been more successful at finding highly qualified candidates.

Look to the executive recruiter as an adviser; they have a lot of experience handling the hiring process, from A to Z.

manager the time he or she would have holding these same conversations with the candidate.

likelihood of producing excellent results for your business. u

4. Managing the process

The executive recruiter can also assist you by helping to manage the hiring process. Besides sourcing and screening candidates for you to review, they can manage the interview process by scheduling interviews, facilitating interviews, advising on compensation packages that might include relocation, and assisting with the formal offer.

Look to the executive recruiter as an adviser; they have a lot of experience handling the hiring process, from A to Z. Typically, the recruiter has built a relationship of trust with the candidate. From the initial contact to the interview, keeping in contact with the candidate during the hiring process allows the recruiter to understand the candidate’s needs. This helps the recruiter to properly communicate those needs with the hiring manager. It also saves the hiring

Network, where he helps support the world’s best tradespeople on their quest to become the world’s

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EQUIPMENT FINANCING:

OVERCOMING THE BARRIER OF COST

BY DAVID DOMBROWSKI

Picture this scenario: You’re standing in line at the bank when a woman comes behind you. She starts a conversation and mentions she is on her way to the airport to get away from things. She says her husband is leaving her, and she is unhappy. Then she says, “See that red car out there? It’s a new Maserati MC20, and he paid $275,000 for it. It’s his pride and joy. However, I’m going to teach him a lesson. I’ll sell it to you right now for $15,000 cash to pay for my trip. That’ll teach him not to mess with me.” You are flabbergasted! It is the car of your dreams, but you only have $7,000 cash in the bank. You suddenly realize that you must pass on the deal of a lifetime since you don’t have the money

It doesn’t matter how good the final price is if the customer has no chance of coming up with the money.

to take advantage of this incredible offer.

So, what does this have to do with air conditioning?

We all tend to focus on getting the best deal for the customer, but it doesn’t matter how good the final price is if the customer has no chance of coming up with the money. Lending Tree maintains that 49% of Americans can’t cover a $1,000 emergency expense with available cash. But the problem is that we have all been taught to use the Good-Better-Best

method for sales where for $12,000 you can get a 14 SEER2 system but for only $15,000 you get a 2-stage compressor. We might as well say it is $100,000 because not everyone has that kind of money available. So why do we start our conversations in this manner?

As HVAC professionals, it’s our responsibility to ensure customers have a positive experience with our services. We should also help them find ways to afford our services.

We must explain to them that this is the third largest purchase they will typically make in their lifetime; a house is first (which they finance), a car is second (also financed) and an HVAC system is third (which logically they should finance).

So, what options should you offer for your customers besides cash?

Of course, you must offer a credit card payment option. Do not worry about the fees – work with the lender to negotiate the best rate you can for your team. The increase in business will more than cover this added cost. Some people may wish to use a credit card if they have other benefits tied to it such as mileage or cash back rewards. This works well if people have money to pay off the card since current interest rates are well above 20%.

Technology continues to change, so look into options such as Apple Pay Venmo and PayPal, especially for service. If you are unfamiliar with these options, find a member of your team who is a Gen Z to explain it.

The majority of add-on replacement sales will be long-term financing. Never selffinance a customer – you are not a bank. You should have at least three options to offer your customers depending on their needs. They are roughly as follows:

A LEVEL CREDIT

– FICA rating of 750 and up. These companies offer the best rates but are selective in their approval process. Often manufacturers and utility companies have tie ins with special arrangements for these types of companies. They often have special promotions (24 months same as cash). These companies use specific analytics in making their decisions and are able to generate approvals quickly. However, there is often minimal human interaction, and data drives the decision. These are typically an unsecured loan.

B LEVEL CREDIT

– FICA rating of 675 to 750 (a rough guideline).

Many of the A level companies will have this fallback option but at a much higher interest rate. They often will present this option if the customer does not qualify for their best rate. In this category are “second look companies.” They use the traditional method of a loan officer looking at all aspects of the loan. They will talk with the applicant and discuss their potential to pay. These loans may be secured and may require a UCC-1 form. Interest rates will be higher than A level.

C LEVEL CREDIT AND LOWER

– There are companies that will accept very high-risk customers.

These are secured loans and part of their contract discusses repossession. The implied interest is high. They need documentation and an interview with the customer. However, they are able to provide financing for customers who have no other options. As a side note, my personal experience has been that the people needing these loans are not typically low-income people but higher

For many, this is a culture change to view everything in terms of monthly payments.

income people who are overextended or “house poor.” They cannot qualify for credit, but they can afford high monthly payments since they have solid income levels.

In all cases, develop a relationship with all of your banking and financial contacts.

When talking to the customer

This requires training and role playing with your sales team. They need to think like the auto industry where everything is discussed in terms of monthly payments because some customers can’t pay up front.

In a typical sales conversation, you want to stay away from total price and concentrate on monthly price. Here’s an example: Sitting at the kitchen table. “Mr./Mrs. customer, when I first arrived and we were discussing needs for your home, I asked you what your monthly budget would be, and you wished to keep it under $200 a month. We have been discussing three options, and they all will heat and cool your home (this is very abbreviated by the way). The deluxe system would be $213 a month, which is just over your desired budget. The gold star system comes in at $235 and diamond at $267.”

“However, I have something for you to consider that makes these options even more affordable. We discussed electricity rates earlier and you mentioned that you pay about $300 a month for electricity. As a rule of thumb, approximately 50% of that goes toward heating and cooling your home, or about $150 a month.

Depending on the system you opt for, modern equipment offers significant advantages over repairing old equipment because of technological improvements, particularly in energy efficiency. You could realize savings of anywhere from 40% to 50%, which is at least $60 a month that you don’t pay to your utility company and can reinvest the savings into your home. That drops your monthly new out-of- pocket cost to $153 ($213 minus $60), which is well below your budget. In fact, the diamond is now only $207 (or less) when you reinvest your utility payment savings.”

For many, this is a culture change to view everything in terms of monthly payments. However, customers make decisions often based on financing availability and monthly payments. Do not be left behind. By suggesting a measured and reasonable approach to pay for any new unit, you can often remove the issue of overall cost from the sales process. u

David Dombrowski began his career not in the HVAC business but with the international transportation division of GE, controlling operations in seven states and South America. He was one of the first members of the consulting team with Ron Smith as he started Service America. He has worked for the past 32 years for the 1997 contractor of the year and is a Master license holder for a large HVAC/plumbing company in Raleigh, NC.

COMPANY CULTURE STARTS AT THE TOP

If you want your company’s culture to improve, you’ll have to start with yourself.

BY TAYLOR HILL & CARTER HARKINS

Culture has become such a buzzword that the word itself is almost meaningless — but the power and influence that culture has within your company is indisputable. Culture determines what’s expected and what’s unacceptable in terms of how you and your employees interact with each other, conduct business, and treat customers.

It’s also what attracts or repels potential employees and what largely decides the loyalty of your existing employees. Whether you want to admit it or not, company culture starts at the top. If you’re looking to improve your company’s culture, you’ll have to start with yourself.

Ask yourself:

• Do I think of and treat my employees as liabilities or assets?

Culture determines what’s expected and what’s unacceptable in terms of how you and your employees interact with each other, conduct business, and treat customers.

• Do I care about and invest in my employees?

• Do I rely on my employees’ fear of me to keep them in line?

• Do I promote and practice honesty, transparency, respect, and empathy?

• Do I put customers and employees first or sales and profits first?

• How do I handle conflict and difficult customers?

• What sort of expectations have I set for my company?

• Do I have one set of standards for myself and another for my employees?

• What do I allow in my business and how do I conduct myself when no one’s watching?

The answers to these questions will largely define the type of culture you have in your company. Is your culture a culture of value, inclusivity, respect, honesty, onus, integrity and teamwork or is it an us (owners/managers) versus them (employees/customers) culture that’s fueled by fear, cutthroat competition, or apathy? The first is attractive to employees, potential employees, and customers while the latter will make you, your team, and your customers miserable.

What You Bring

The skills gap is a popular topic of discussion and most people blame the hiring problem that plagues blue collar industries on a lack of interest in technical schools and training. While there is some truth to that, it’s not the whole story.

Today’s workforce wants leaders who intentionally cultivate inclusive, transparent, people-first cultures and provide opportunities to make a difference. No one’s looking for a job that makes them feel unimportant, inadequate, or like a cog in a machine — but that’s the kind of attitude and culture that many blue-collar leaders present to the next generation of workers.

So why are we so surprised that it’s harder than ever to find and keep good workers?

The reality is this: the way you perceive

your company, your employees, the work you all do, and the people you serve impacts and influences the perception your employees, potential employees, and your customers have.

If you don’t take pride in your company, the value you bring and the services you provide, how can you expect your employees and customers to? How can you expect your employees to go the extra mile, to put their hearts into the job, and to care about the satisfaction of your customers and the success of the company?

How can you expect your customers to pay you what you’re worth, to treat you and the work you do with respect, and to choose you over a competitor who will do the work for less? You can’t!

Culture is top down and requires you, as the business owner or manager, to sow the seeds and pull the weeds. It may seem like a lot of work, but if you give a big push at the beginning and take the time to write down and communicate your company culture, it will serve as a constant guide that allows you to step

back and focus on other things.

Like a well-planned garden, a well thought out and intentional company culture will produce higher yields in terms of quality employees, quality customers, and quality service, and will require less effort on your part in the long run.

It will lay the expectations for what you do and how you do it, so you don’t have to micromanage or be there to assist with every decision or challenge. If it’s not written down and communicated, on the other hand, it can easily be shaped and shifted by each team member’s personal culture and core values, which may not align with those you want for your company.

The point is: whether you take the time to determine and establish a written company culture or you don’t, you have

one — and your culture is your standard.

Intentionally Create a Culture

Culture can and should be intentional. To really encourage buy-in and make your culture stick, you’ll want to get everyone involved in the process of determining what your company’s culture should be.

Take some time to ask your employees what values and standards they have and hold. Find out what’s important to them in a company culture and make sure everyone is in agreement as to what type of culture you’re all working to cultivate and protect.

Once you’ve established what that is, make sure everyone agrees to hold themselves and their decisions and behaviors up to the standard the culture creates. And perhaps most importantly:

don’t just demand consistency, cooperation, and integrity from your team — demand it from yourself as well.

The process isn’t easy and you may even lose some employees who aren’t a good fit for the culture you’re creating, but in the long run, it’s so worth it.

Leadership is the No. 1 contributor to company culture and culture is what drives company performance. So, be a better leader, create a better culture, lead a better business, and enjoy a better community. It all starts with culture — it all starts with you. u

Taylor Hill and Carter Harkins are the co-hosts of the Blue Collar Proud (BCP) Show a podcast that’s all about having and living the blue collar dream and co-authors of the book Blue Collar Proud: 10 Principles for Building a Kickass Business You Love. Visit bcpshow.com/contact for additional information.

UNIQUE SELLING POINTS FOR ATTRACTING TOP HVAC TALENT

It’s hard to find good people!

BY RYAN KALMBACH

We have been talking for years about the coming generational shortage of skilled labor in the trades. Experts say a shortage of 400,000 HVAC workers will last into the next decade.

You probably feel that recruiting people is one of your top business issues. You post ads on job boards, put flyers in supply houses and then hope you find good talent. Hope is a poor strategy, and you often turn up with few or no suitable candidates. The lack of applicants harms your organization beyond just the open position you are trying to fill. In HVAC, without great people, you have nothing to sell.

In response to these challenges, I say, “Good!” The industry status quo creates opportunity for you. Most contractors don’t know how to attract great people,

In HVAC, without great people, you have nothing to sell.

which means that if you are good at finding great talent, it will give you a huge competitive advantage.

This article will share with you unconventional ideas on how to attract great talent.

Productivity

This will probably sound crazy in an article about finding talent, but have you maximized the productivity of your current people? Based on my experience, most HVAC contractors have huge room for productivity improvements. What is your average service ticket? Average install ticket? What is your net profit per hour in both service and install? What is your first call completion rate? Maximize

what you have before you go and hire more people.

Culture

Yep. The “C” word. Culture is not about massages, fitness facilities, and pool tables like Google.

Why would anyone choose to work for you versus another company? Just like when you sell a system in the home, you have to differentiate yourself from your competition. If you look and sound the same as everyone else, the decision will come down to price. Some of the critical components include:

• An inspiring vision for where you are going as a company.

• Clearly articulated values that resonate with the type of great people you want to attract.

• Communicate your “why” as a company. In other words, what is the purpose of your company? People spend a third of their lives at work. They want to work where they:

• Love what they do

• Are with people they enjoy

• Receive appropriate compensation

• Are recognized for making an impact

• Have opportunities for growth and development

• Have time for other passions

How can you create an environment that people love so much that they tell their friends and family?

Hire for attitude, train for skill

Have you ever hired someone with years of experience who turned out to be a problem child? Someone who is a bad cultural fit with a negative attitude will become a cancer on your team. You can’t train attitude. You can’t train someone to fit into YOUR culture. They either have it or they don’t. You CAN train someone with the right attitude in the skills and knowledge needed to be successful in their job. I know this isn’t easy, but neither is finding the courage to fire a high-performing tech who is a jerk.

This is why it is critical to clearly describe your culture and the behaviors that define your company culture.

Perpetual Pipeline

What is your strategy to continuously create new technicians and installers? This is a counterintuitive strategy for attracting “top HVAC talent.” Rather than attract top talent, create your own. The key is to keep a perpetual pipeline of new talent coming into your company and systematize the process, which is essentially an apprenticeship program.

These advisory councils are an excellent way to develop relationships at trade schools.

Follow these steps:

1. How many new and relatively green installers and technicians can you handle at any time?

2. How long, on average, does it take these green folks to get up to speed to where they can “ride on their own”?

3. Institute a process where green people are always coming into the company to fill No.1 above.

Example:

1. You can train up one new tech and one new installer at any given time.

2. For you, it typically takes six months for a service tech and 90 days for an installer to be “up to speed.”

3. Every six months, you will bring in a new service tech, and every three months, a new installer. In a year, you will have two new techs and four new installers.

You probably think this is great for the larger companies that have created their own internal schools to train up new techs and installers. I argue you can do this on

your own. There are two ways you can find or create people who are ready for your apprenticeship program: trade schools or partner with your local distributor.

Trade Schools

There are mixed feelings about the quality of education received at various HVAC Trade Schools. I think this deserves a shift in mindset. Rather than view Vo-Tech graduates as 100% “Truck Ready,” view these graduates as people ready to be an apprentice with you. When you develop relationships with the instructors in these programs, you can get inside knowledge on who the best students are. Most trade schools have advisory councils made up of local business owners who meet several times per year. These advisory councils are an excellent way to develop relationships at trade schools.

Distributor Partner

A great distributor partner will offer training programs to get totally green

folks up to speed on the basics of the industry and help to get them to be “truck ready.” Typically, these programs combine online classes with hands-on learning. Speak to your local distributor partner to explore how they can help you.

Conclusion

While the shortage of skilled labor in the trades presents significant challenges, it also offers opportunities for innovation and differentiation. By focusing on company culture and establishing a perpetual talent pipeline, contractors can position themselves for long-term success in a competitive market. Embracing these strategies addresses immediate staffing needs and lays the foundation for sustained growth and resilience in the face of evolving industry dynamics. u

Ryan Kalmbach is the CEO of Johnstone Orion Distribution with 12 locations and 125 employees in California. He has more than 20 years of experience in operating a family distribution business. The core passion at The Orion Group is to partner with its customers and employees to help them to grow. Contact Ryan at ryan. kalmbach@johnstonesupply.com.

GET TIME BACK ON YOUR SIDE

with Clarity, Technology & Processes

BY JASON NOEL

For most home service company owners, time management often takes a back seat to employee wants and customer needs.

But if you don’t get a handle on how to manage and delegate your time—or lack thereof—it can quickly begin to hurt your employees’ abilities to perform their jobs. And that could lead to a diminished positive experience for customers and a loss of revenue.

Time management is one of the most important business processes that home service leaders should master if they expect to optimize customer expectations and improve the quality of their work.

Time management is one of the most important business processes that home service leaders should master.

Keeping on task also improves employee satisfaction by reducing unexpected downtimes.

Here are some practical time management strategies to help you get time back on your side.

Clarity and Direction

One of the most essential steps in learning how to take back your time is to provide yourself and your employees

with clarity of thought and purposeful direction.

We’ve all heard the saying that it’s better to work on your business than in your business. This is especially true of home service owners who started as technicians.

It’s easy to slip back into old job roles if you spent your formative years wrenching pipes or installing HVAC units. But once

you become an owner, you must learn how to delegate.

At first, it may be easier to know what you’re passionate about and, more importantly, what you’re not passionate about and delegate your less pleasing tasks to others. As your business grows and you add employees, you also need to hire people who have a different skill set than you and who are more passionate about various tasks.

While it may be difficult to let things go, if you’ve made suitable hires, you know that these people have talents that complement your own and that they can get the job done as well, or even better, than you can.

This also means you must be clear about the roles necessary to round out your leadership team. This includes clearly communicating your expectations and developing a process for determining accountability.

Surrounding yourself with the right team is crucial when you start delegating tasks. You need to trust that your team knows what you expect of them, and you need to allow them the responsibility to do their jobs.

The right team is tantamount to ensuring their roles align with your business goals.

Process Documentation

Whether you’re a new business owner who started on the truck or an entrepreneur who came into the home service industry from another industry, you more than likely built a business plan when you first started your company.

Documenting your processes and procedures should not have ended there. Standardizing your company’s procedures and workflows ensures consistency, reduces errors and oversight, preserves knowledge and helps you improve your efficiency.

Without documented procedures, you will spend most of your time “firefighting” issues that flare up rather than working proactively. And, while you need to be adaptable and flexible to handle issues that arise from doing business, if you have formal processes, it helps you and your employees stay on task.

When properly documenting and defining processes, roles and tasks, your team knows what you expect of them and how to proceed.

Time Management Apps

If you’re constantly juggling deadlines, deliverables and dedicated resources, it may be time to consider implementing software or applications that can help you better manage your time.

In today’s fast-paced world, where half your team is out of the office working remotely or at customer sites, home service business leaders should embrace one of the many time management applications on the market.

One of the most significant time wasters can be long meetings that accomplish nothing.

From Trello to Asana to Monday.com, a variety of apps can help you manage your time more wisely. Turn your smartphone or laptop into the ultimate scheduling tool for you and your team.

And if you need to manage your appointments, you can always use Calendly, Doodle or even Microsoft Outlook to help plan your day.

Taking time to understand your schedule should be an entry in your appointment book, too. Take a few minutes Sunday night to plan your week and a few moments the night before to plan your day. This helps you prioritize your tasks and gives you time to remove nonessential activities and set a time limit to complete necessary duties.

It takes some time to manage your time, but maintaining daily rituals allows you to reflect on your priorities and adjust your appointments to optimize what you get out of your day.

Avoid Time Wasters

During the course of our work lives, most of us have gotten caught up in loops that seem to drain time like sands through

staff and those in the field can save you time. A quick chat to set up a meeting or ask a question can reduce impromptu meetings that waste time.

Your time as a business owner is precious and needs managing so you can work on your business. No perfect formula works for every leader, but managing your time so that it aligns with your schedule, workflow and end goals shouldn’t be left to chance.

Take time to make time so you can focus on making your customers happy and expanding your business. u

an hourglass. We start tackling these issues, look up and realize the day has flown by, and you’ve not accomplished anything else.

While you might need to address the issue, a failure to keep your tasks on track can result in inefficiencies that adversely affect your bottom line.

One of the most significant time wasters can be long meetings that accomplish nothing. It’s essential to meet with your team so you can communicate with them, but when discussions about granular topics drone on and on, you lose efficiency.

The best way to avoid this is to create and stick to an agenda. If an issue arises during the meeting that you should address, don’t attempt to solve it in a meeting that is meant for other topics. These “parking lot” items need their separate meeting and should only involve the necessary employees. Don’t waste everyone else’s time trying to fix a spur-ofthe-moment issue.

Using intra-office tools to help the office team communicate with your office

As a director of advisement for CEO Warrior, Jason Noel excels at implementing sales and turnover processes, optimizing employee motivation, and executing successful business plans. He leads day-to-day business operations, managing more than 150 employees and possessing an extensive general management background. Previously, Noel worked as the general manager of American Residential Services and One Hour Heating, Benjamin Franklin Plumbing and Mister Sparky and the director of plumbing operations at Mister Quik Home Services.

WHY EDUCATION IS IMPORTANT

Don’t let your training and education program fall through the cracks.

BY JAMIE KITCHEN

When I first became involved in training, I assumed training was just a given and that a person would undertake training of some sort to improve themselves on a regular basis.

After all, this was what I had been taught and been exposed to as I went through my career.

The reality was a little different. I found that we often want and plan to support training only to have it fall through the cracks as more pressing issues pull our attention and resources elsewhere.

Training is not something that can just be done on a whim and hope that all will magically be better.

So, if training is not done and our businesses run regardless, is it even

CONNECTIONS ARE POWERFUL

Never, ever underestimate them. In the home services industry, we connect with our customers to add value and offer comfort; we connect with our teams to strengthen and grow; and we connect with our peers to level up. Nexstar Network is built on connections. In 1992 Nexstar founders – like-minded contractors – forged relationships focused on success through education and sharing. They changed our industry for better. This small group has evolved into a network of more than 1,000 of the most successful home service companies in North America and beyond.

Member-owned, we are committed to our valued members, those working to tirelessly to support the rising tide of the trades. Their greatness sets them apart and we celebrate their commitment to their businesses, their communities, and our industry. If you are interested in learning how Nexstar can supercharge your professional and personal growth, we’d love to talk.

Call us today at 888-240-7827, or schedule an introductory call at nexstarnetwork.com/contact, and learn more about our mission to turn the world’s best tradespeople into the world’s best businesspeople.

Brian Williams, Founder and Visionary Ashton Service Group Nexstar Member since 2011

they leave for another employer?” I think people have this backwards.

If you’re lucky enough to get a person with the right work attitude and they show some aptitude for the job, you’re mistaken if you do not invest in them.

And, if they leave, why did they decide to forsake you and go to somebody else?

I’d want to find out and correct as soon as possible, as keeping good employees is the number one thing a business should strive for — because, without them, you will never be as successful as you would like.

Flexibility

Getting back to the reasons to train, let’s start with employee flexibility. Since good technicians are worth their weight in gold, increasing their capabilities into other applicable areas allows you to do more with them and pick up opportunities that might otherwise go to somebody else.

If a good opportunity comes along but you only have one or two technicians with the skills to do it, what happens if they are already deep in another job? Pull them out and have somebody else start halfway through?

If others also have the necessary skills, it will be a lot easier to find somebody to take on the new opportunity and do it before your competitors can step in.

If somebody is on vacation, injured or sick, the remaining folks can fill in for them with no back up of work or missed opportunities.

On top of this, you can advertise that your techs are certified and have all the skills necessary to do what is required of them, which is something I think we can all agree is important.

Return on Investment

Touching on loyalty, I have already pointed out that on-the-job training is right up there on the list of desirable offerings from a potential employer. It’s also important to remember the law of supply and demand.

Currently and for the near future, those with the skills are in short supply, which means that demand far outstrips supply.

Getting employees with good work

Getting employees with good work ethics and potential abilities and developing them is probably the best answer to the labor shortage.

ethics and potential abilities and developing them is probably the best answer to this shortage.

The training investment is lower than the alternative, which is to hire a highlyskilled person who has just about every company recruiting them and who you will pay dearly for — only to have them leave in six months to somebody with deeper pockets.

The potential downside is time required for the return on investment. It takes months, if not years, to fully develop the skills required, so these employees will not be jumping in a truck by themselves and troubleshooting large refrigeration systems in a few months unless they already have the required skills to start.

Of course, you won’t be paying them the high wages highly-skilled people receive, either.

Since training is highly desired, if they are getting trained and see the value in it, you will have loyal employees.

Even highly-skilled people are the way they are because they have put in the effort to become that way, and so will regard training offered to them that will enrich their skills as desirable and something of value.

Soft Skills

Reduced warranty costs, call backs and generally unpleasant experiences with customers are some key areas proper

to do by first observing and then doing with the coaching of a supportive and encouraging senior tech.

This will give them the confidence to do it on their own.

Sure, there will be a cost associated with this, but you will save down the road on reduced costs associated with poor work, as well as expand the capabilities of your staff.

Improved brand recognition, reputation and referrals will follow naturally. People can understand the basic concepts of how a system works, and if time is taken to describe how and why something is being done, it will make sense to them and they will trust you far more as a result.

training can help alleviate.

And, by training, I am also referring to the “soft skills” that can help a business gain an advantage in a competitive market.

Soft skills are sometimes dismissed as frivolous, to put it mildly, but every successful HVACR business I can recall has some form of soft skill development program in place.

It should not be a surprise since people’s perception of somebody coming into their home or place of work is first predicated on how they perceive the person (and, by extension, your business).

Their actions — from the minute they step in the door and the first words out of their mouth — will immediately make an impression.

If you want to sell preventive maintenance programs, look no further than the importance of a positive first impression — because, if people perceive value in having your company visit their home, they will see value in having you come back.

Mentoring

Technical training to do the job correctly can consist of mentoring a junior tech by one more senior.

This can be done one day a week where the junior tech takes a break from the work they can do and learns how to do work they currently do not have the skills

If your technicians can’t describe in terms a non-expert would understand of how a system works and what is important to make and keep it working well, then they cannot effectively communicate with people who will make the decision to call you the next time or recommend to a friend to call you when they are looking to buy or service a system.

Of course, training cannot fix everything, and shortcomings from something other than skills will likely require another solution.

Taking time and discussing opportunities for training development with your employees and what you desire from them as a result will help you work together to build the workforce you desire and that will result in the most return. u

Jamie Kitchen is an account manager for Danfoss. He previously was the training manager for Danfoss in North America. Jamie has worked in several positions around the world to develop an expertise on the various considerations each region requires to achieve its air treatment needs — whether through refrigeration, air conditioning, heating or humidification. For additional information, visit danfoss.us.

PROVIDED BY KEVEN PRATHER, CFBS

What Are Your Biggest Financial Concerns?

It goes without saying that you play a crucial role in making the decisions that will determine whether you will achieve your financial dreams. That’s why it makes sense to have great clarity about the specific financial issues and concerns that are most important to you and the people you care about. Only then can you take steps designed to address them.

In our experience—and supported by research—we find that affluent investors tend to share five key concerns about their financial futures. Think about your own financial life as you review the following top concerns. You may have additional issues unique to your specific situation, but chances are that many (and maybe all) of these challenges are on your list.

Concern #1: Preserving wealth

The goal of wealth preservation is to produce the best possible investment returns consistent with your time frame and tolerance for taking investment risks. Preserving wealth throughout one’s lifetime has become the single biggest financial issue facing most of today’s affluent investors. Just ask yourself this question: How sure are you that you have, or will eventually have, the wealth required to meet your needs, reach your various goals and live the life you want?

A vast majority of affluent investors are asking themselves this very question. In one landmark study:

• Nearly 90 percent said they were quite concerned about preserving their wealth.

• Nearly three-quarters of investors—71.5 percent—said they worry about having enough money to last throughout their retirement. What’s more, we find that these issues have consistently been at the top of the list for the majority of affluent investors year in and year out.

Increasingly, affluent investors are looking outward beyond their own families to the world at large.

Concern #2: Enhancing wealth

The affluent also tend to want to enhance their wealth by minimizing the tax impact on their financial picture. Tax mitigation has been a particularly important issue among the affluent in recent years due to a great deal of discussion in Congress about increasing taxes on high earners and those with significant assets.

Obviously, no one can be certain what the future holds regarding the government’s decisions about tax rates and other aspects of the tax code. If you’re ignoring the issue and waiting for 100 percent clarity, you’ll probably be waiting a long time. Tax mitigation must be a key part of any financial plan for you and your family, regardless of the political environment at any given time.

Concern #3: Transferring wealth

Do you have a plan in place for passing your wealth on to family members, either now or down the road? If so, is it up-todate, and does it reflect current laws your family’s current and future needs, goals and level of wealth?

It is easy to ignore this crucial concern because addressing it requires asking yourself uncomfortable questions, such as how you want your assets distributed at death and when your heirs will receive an inheritance. But failing to ensure that your wealth goes exactly where you want it to go can lead to much more significant discomfort later on and have serious ramifications on everything from your ability to help your family members achieve their goals (such as a college education) to the long-term success and sustainability of a family-owned business.

Concern #4: Protecting wealth

Affluent families don’t just want to preserve their wealth against losses in the financial markets. They also seek to protect their assets from being unjustly taken from them by catastrophic loss, potential creditors, litigants, ex-spouses, children’s spouses, and even identity thieves.

This means that successful wealth management planning may also need to address wealth protection—controlling risks through business processes, employment agreements and legal forms of ownership.

Concern #5: Donating your wealth

Increasingly, affluent investors are looking outward beyond their own families to the world at large. For these investors, making meaningful gifts to charity in the most impactful way possible is becoming a key issue. Charitable giving comes with unique challenges—from selecting the appropriate means of giving to selecting causes and specific organizations that will have the most significant impact. You should set up any gifting strategy for maximum effectiveness. At the same time, however, you must ensure that your philanthropic objectives are in balance with your other key financial goals, such as retirement and the long-term financial security of your family.

Coordinating your response

Review the list of the top financial concerns. Compare them with your own list. You will probably agree that each one, taken on its own, is daunting enough. But when you face many of these challenges and possibly even all five, as is the case with many affluent investors, it can greatly limit your ability to achieve a secure, comfortable and meaningful life. That’s because none of these five areas of concern stands in isolation from the rest. Wealth protection, for example, is often intertwined with wealth transfer needs. And charitable giving can often support goals in each of the other four areas.

Remember, all the key areas of your financial life are tied together in large and small ways. Plotting out strategies for just one area at the expense of the others is a recipe for suboptimal results. To be most effective, you need to deal with each area systematically while also taking an integrated approach to your overall financial picture at all times. u

Keven P. Prather is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. Call 216-592-7314, send an email to kprather@financialguide. com or visit transitionextadvisors.com.

BY RUTH KING FINANCE

Achieve Your Freedom with Your Financially Fit Business – Protect Your Cash | Part 7

I’ve written about the first four steps: Know how you generate revenue, make sure you have profitable revenue, track your billable hours each month, and review timely, accurate financial statements each month.

Here’s the last step:

STEP 5 - PROTECT YOUR CASH

Cash is the lifeblood of your business. These five procedures help you protect your hard-earned cash.

1. Look at all your online bank accounts daily –operations, payroll, savings accounts and lines of credit.

This should become a habit – just like brushing your teeth.

It takes less than five minutes a day. And it can help you prevent internal AND external theft.

Here’s what happened to one of my clients:

The owner had delegated the responsibility of looking at the bank statements every day to his bookkeeper (he has since wisely taken back that responsibility).

One day, the bookkeeper saw two deposits, each for less than a dollar. These are the type of deposits you receive when opening a new online way to get paid –i.e., like setting up a PayPal account.

The bookkeeper assumed that’s what happened. The owner set up a new account and forgot to tell him.

The next day, the bank called and asked whether they had authorized two $25,000 withdrawals from their operating account!

Cash is the lifeblood of your business.

Obviously, the answer was no.

The bank immediately shut down the account.

Please look at all bank accounts online every day. You could prevent something like this from happening to you.

2. For QuickBooks® users.

a. Watch undeposited funds on your balance sheet. All deposits should be made into your bank operating accounts at the end of each month. This value should be zero or close to zero every month.

b. This value should not be negative. That means you’ve put more money into your bank accounts than you’ve collected for. Find out why it is negative.

3. Watch what you sign.

a. When you sign checks, ensure the backup for those checks is with them. Match the invoices from your vendors and, if appropriate, purchase orders and packing slips with the check amount. Make sure that what you are signing makes sense.

b. Never sign blank checks – you have no idea who they are being issued to.

c. Likewise, don’t write a check or take funds out of your account without telling your bookkeeper. Yes, it is your company. However, if the bookkeeper doesn’t know about the checks, it will be harder to reconcile the bank accounts each month.

d. Don’t use signature stamps. You should sign all checks. If two signatures are required and one is a signature stamp, that violates the separation of duties.

4. Make your home address the address of record for your company bank accounts.

a. Even when you look at your bank accounts online daily, there is still a monthly bank statement. It is often now electronic, and you don’t get a physical statement. However, when your home address is the address of record, you see all communications about your accounts. You see notices

of late loan payments as well as bounced checks.

b. Look at the statements and ensure that what you’ve seen online makes sense. It is a second check protecting your hard-earned cash.

5. Make sure you see the reconciliation reports of all bank and credit card accounts.

a. I wrote about this last month. It is critical that you reconcile your bank statements each month and that you see that the reconciliation report balances.

b. If you see unauthorized purchases from employees’ credit card accounts, take the necessary steps to discipline the employee and receive payment for the unauthorized purchases.

Knowing how you generate revenue, making sure you have profitable billable hours, tracking those billable hours each month, reviewing timely, accurate financial statements each month, and proper cash procedures help you experience freedom with your financially fit business. u

Ruth King has more than 25 years of experience in the HVACR industry and has worked with contractors, distributors and manufacturers to help grow their companies and become more profitable. Contact Ruth at ruthking@hvacchannel.tv or at 770-729-0258.

PRODUCT FOCUS »

COPELAND

Copeland’s Frictionless, oilfree compression technology offers efficient, robust, and reliable performance in air- and water-cooled chiller applications. This new oil-free centrifugal compressor platform is being developed for the 50- to 200-ton capacity range and is optimized for use with the next generation of lowerGWP A2L and A1 refrigerants such as R-1234ze, R-515B and R-513A. This helps address the upcoming GWP limits mandated by the Environmental Protection Agency’s Technology Transitions rule under the authority of the American Innovation and Manufacturing (AIM) Act. www.Copeland.com

HEMCO

Hemco fume hood blowers offer a complete line of belt and direct drive exhaust blowers which are chemical resistant and available in standard and explosion proof models. HEMCO blowers are designed to operate effectively and efficiently to remove hazardous fumes from a fume hood. Blowers are epoxy coated steel, belt or direct drive blowers with adjustable discharge and weather covers from 250 cfm to 2,000 cfm. PVC belt or direct drive blowers range in size from 230 cfm to 1,600 cfm. A wide selection of ventilation accessories including ducting, filters, and components are available.

www.hemcocorp.com

DENIOS

DENIOS -US introduces a complete line of BatterySafe™ cases designed to transport lithium-ion batteries in accord with international regulations. Batteries are surrounded by cushions filled with Pyrobubbles® – an extinguishing agent which provides protection against thermal runaway, and exothermic reactions. Available in various sizes, they are ideal for li-ion batteries for e-bikes, power tools, laptop and mobile batteries, automobile batteries, e-vehicle batteries, and more. Reusable and easy to use, they have an operating temperature range from – 4°F to 176°F, and a storage temperature range from 60°F to 86°F.

www.DENIOS-us.com

NAVAC

NAVAC now offers a comprehensive lineup of high-performance HVAC tools and equipment. These include: Vacuum Pumps: NAVAC offers a selection of vacuum pumps, ranging from 2-12 CFM, which are available in both corded and cordless configurations to meet various application requirements. Recovery Units: NAVAC’s recovery units come in multiple tiers – good, better, and best –providing options that cater to various performance and budget preferences. All units are A2L compatible. www.navacglobal.com

DURO DYNE

Duro Dyne’s Dyna-Tite Equipment

Suspension Kits offer a fast, safe, professional strength solution conveniently packaged in precisely the quantities integrators desire. This also allows distributors to stock less SKUs, thus reducing inventory burdens. Building your own kit allows you to choose your end fitting such as loop, threaded stud, toggle, drive pin, wedge, snap hook or eyelet. Choose your cable length including 5, 10, 15, 20, or 25 feet. Choose your lock style including standard CL, Strut Lock, CL90, or KV.

www.durodyne.com

GREENHECK

Greenheck’s Model HLC-MPA modular plenum array utilizes configurable diffuser segments assembled on-site to create a single low-profile diffuser array. This allows engineers to make the most of available ceiling space by eliminating the need to individually duct each diffuser. Available in an assortment of sizes, the diffuser segments can be linked together in virtually any combination to cover the surgical site. Optional integrated lighting solutions are available to optimize illumination over the patient.

www.greenheck.com

TACO

Taco Comfort Solution is a single “plug-and-play” package solution, with booster systems available in a wide variety of pump types, sizes, configurations and materials to suit specific needs. Simplex configurations are ideal for applications up to 125 GPM, duplex are ideal for applications up to 350 GPM, triplex for applications up to 750 GPM, and quadraplex in applications up to 2,000 GPM. Available in simplex, duplex, triplex or quadraplex configurations, each one is fully customizable with the easy-to-use Taco configuration software.

www.TacoComfort.com

UPONOR

Manufactured from premium, lead-free, dezincification-resistant brass, these full-port ball valves feature positive tube stops that ensure installers insert the valve into the pipe far enough without overextension. The valves all feature a blowout-proof stem design to ensure a lifetime of trusted reliability from Uponor. The ASTM F1960 connection method offers a solid, strong seal without the need for glues, torches, or fire watches, providing greater safety and cost savings on job sites. The residential valves are available in sizes from ½” to 1”, featuring a chrome-plated ball and a stop and drain (waste) option.

www.uponor.greenhousedigitalpr.com

with GUY SAKO 20QUESTIONS >>

Editor Tom Perić sat down with Guy Sako, the founder and CEO of Vermilion, OH-based Defense Soap. Sako is a classic entrepreneur who had a simple idea about soap for combat sports, like wrestling, jiu-jitsu and judo and protecting participants from infections. The demand exploded into a business. Guy talks about entrepreneurship, when an idea turns into a business and how to succeed in a niche market.

1. What are three things you have to do every day?

Every morning, I make sure that everything is in line at Defense Soap, then with my wrestling club, and then with my home. I start each day making sure any concerns with these three buckets are addressed.

2. What’s your favorite snack? Snyders of Hanover hard sourdough pretzels.

3. What’s the best advice your father gave you?

My father always told me to live within my means. A good tip that I still practice today.

4. Do you have a secret ambition?

My secret ambition is to be a good person and to make a truly positive impact on every person I encounter.

5. What’s your background?

I’m a former policeman and wrestling coach who started a niche soap company.

6. What business principles guide you in running the company?

I believe in treating people the way I expect to be treated. I believe in only providing the absolute best product I can regardless of the price. And, I only work with high integrity and like-minded people.

7. You didn’t have a business background so what made you think you could succeed in this endeavor?

I never intended to start a business. I was a wrestling coach with a need that was not being fulfilled. I tried to figure out the chemistry that could prevent ringworm and I partnered with someone to help me make it. I was giving the soap away to my team, and when I could no longer give it away on a policeman’s salary, I began selling it at cost. The demand was so high, it didn’t take me long to realize I could start a business.

8. What happened when you realized this idea might work?

When I reduced the infection rate of my team by more than 95% and when the wrestling world was beating a path down to my door looking for my soap, I realized I was sitting on something pretty special.

9. I am a customer, and so are my Jiu-Jitsu training partners. Do you see expanding beyond the combat sports community? HVAC techs get their hands dirty often. Could they use your soap? We actually have grown way outside of the combat sports community. The majority of our business now comes through Amazon. After reading the

reviews, we quickly learned that people of all ages and walks of life suffer skin infections. HVAC techs work with sharp metals and if they are looking for a high-quality natural soap with the added benefit of fighting infection, then we are for them as well.

10. Give us a sense of scale. Was your first order a single bar of soap, and how much more have you cranked up production?

My first order was for 30 bars. I now produce 100,000 bars in a batch ... about 10 batches a year.

11. What was your most important or “lucky” break that moved you past competitors making soap at home? I was simply first to market and refused to be outworked.

12. What aspect of the business do you enjoy the most?

I truly enjoy receiving letters from customers on how our soap has changed their life for the better. We get them often, but they never get old. It gives me a sense of purpose.

13. Is your family involved in the business, and if so, how?

My wife runs our office, and my oldest son is the warehouse and logistics manager. We are very much a family business and hope to always be.

14. How did you become the official soap of several online combat sports services?

We are a niche market. You know how tight this group is. We leverage our relationships; we stick to our mission of preventing skin infections for combat athletes, and we won’t be outworked.

15. What has been your most successful marketing platform?

We have great success with Track and Flo wrestling. The Big 10 Network is huge, but we are also on the

16. What has been your least successful marketing effort?

Working with marketing companies that tell you they can blow up your business but know absolutely nothing about combat sports. Those of us in our niche speak a different language than the rest of the world. Coming from Jiu-Jitsu, I am certain you know what I mean. Outsiders just can’t relate and marketing efforts from those on the outside never do well.

17. Do you have a mentor who helped you along the way?

I have several successful friends that I have relied upon over the years, and I appreciate all the advice they shared with me, but in the end, it comes down to if you are willing to do the work.

18. What’s your pricing strategy?

I grew up very middle class. Way back in the mid70s, $6 meant a lot to my family. My father let me join my local pee-wee wrestling program, which cost $6 for the season. If it cost much more than that, my family probably would not have been able to afford it. Now I sell a bar of soap for $6 to the wrestling community, a community that has given me everything that I have. My promise to them is that I will never sell that original bar for more than $6.

19. When people ask you, “Why do you do this,” what do you say?

We haven’t reached our goal to eliminate skin infections in combat sports. As long as there is a kid sitting on the sidelines, we are going to be committed to this fight. Combat sports develop kids in so many ways that our society needs. We need to keep kids competing and training for our own sake.

20. Given the huge leap you took in starting this business, what advice do you have for our readers?

Behind every million-dollar idea is a million dollars of work. Be prepared to be on the hook 24/7 for your business. Make sure you have a passion for what you are doing because there will be countless times when passion is the only thing fueling the tank. With passion, you will find ways to pay your employees when there is no money in the account. Passion will get you out of bed when you need to develop a new product or chase down new leads. Passion gets you through a 17-hour day when your friends are asking you to join them for a night out ….. I always tell my senior executives, “If you don’t enjoy the journey ... don’t take the trip.”

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