Ask yourself what a private equity firm would notice about your business that you don’t. That’s not a hypothetical. It’s exactly why they’ve flooded into home services: fragmented markets, recurring revenue through memberships, and demand that never dries up because homes always break. See what they see, and you build a better company either way, sell it or keep it.
@officialchadpetermanTranscript
Private equity hasn't entered the home services space because it's trendy. They've entered because most owners are leaving money on the table. Let's face it, private equity sees opportunity where others don't. What do they see? They see a very fragmented market where you can enter in a number of different ways. You enter into the market, you create better systems and processes, which leads to better conversion, higher tickets, and you can grow a business. What they also see is recurring revenue through our membership programs and maintenance programs and different things like that. They also see that it isn't going anywhere. They keep building houses every single day. People are going to need home services to fix the things that break in their home. Everyone has to go home at the end of the day. Again, what are you not seeing in your business that they're seeing as extremely valuable? Lean on those things, improve those things, and ultimately you're going to create a better business and a more valuable one regardless of if you sell or you don't.
Download Transcript
Related Videos
Here’s the fastest way to know if you’re making money or just staying busy: know your three numbers. 50% gross profit. 35% overhead. 15% profit. If you can’t say where you stand on each right now, that’s the first problem to fix.
If I could only track five numbers in my HVAC sales department, it would be: revenue per lead, close rate, average install revenue, discount rate, and revenue to budget. Most owners track none of them daily and then wonder why the month got away from them. Measure every day and the numbers stop surprising you.
If your tech left for $2 more an hour, money wasn't the problem. The problem is there was nothing else keeping them. Techs spend most days working on their own. If the money's right, it's the one-on-ones, the organizational support, the daily encouragement that keeps them here. A small raise can't outbid a place people actually want to work and feel supported.
This is where we build technicians from scratch. Zero experience walks in, and electricians, plumbers, and HVAC pros walk out. Everything in this lab is functional. They can tear it apart, we can plant faults, and they can fail safely here instead of in a customer’s home.