From Zero to $1.5M in Year 1: HVAC’s Next Gen with Zach Jones & Dalton Hadley

About this Episode

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📢ALERT!📢 New Podcast in the House!

Join me in unleashing Zach Jones & Dalton Hadley’s journey of making almost $2M in just 1 year. In this video, we’ll explore the strategies and steps they took to grow their business successfully. 

Join us now and learn…

0:43 – Introduction

1:34 – How Zach Jones & Dalton Hadley started

2:28 – Services they offer

3:46 – Reason behind the $50,000,000 target

5:06 – 10x is easier than 2x

5:44 – Surging growth they experience

8:08 – Experiencing Google suspension

9:58 – Advise to those business owners to fast-track their business

11:33 – Difference between 6-figure and 7-figure contractor

13:49 – Maximizing opportunity

15:08 – First few hires they made early in the business

20:53 – How to attract more team members?

22:52 – How to create great video content?

25:50 – Things and work productivity that need to incentivize

31:51 – How to build a successful partnership?

38:35 – Advise to those who want to build a partnership

41:40 – Red flag in partnership

44:42 – Mentors that help Zack and Dalton in building the business

51:28 – Simple action YOU should do

53:28 – Closing

 

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👉 Full episode can be found here: https://poliannaseo.net/from-zero-to-one-point-five-million-in-year-1-hvacs-next-gen-with-zach-jones-and-dalton-hadley/

👉 Join our FB Group: https://www.facebook.com/groups/hvacfinancialfreedom/

📢 Connect with their social media platforms:

FB: https://www.facebook.com/airsupportheatingandcooling

IG: https://www.instagram.com/airsupportky/

https://www.instagram.com/joneseli14/

https://www.instagram.com/dalton_hadley/

LinkedIn:

https://www.linkedin.com/in/zach-jones-221a2788/

https://www.linkedin.com/in/dalton-hadley/

https://www.linkedin.com/company/airsupportky/

Youtube: https://www.youtube.com/@airsupportky

TikTok: https://www.tiktok.com/@airsupportky 

Website: https://airsupportaz.com/ 

 

#BusinessGrowth #Entrepreneurship #SmallBusiness #Startup #BusinessDevelopment #SuccessStrategies #ScalingUp #GrowYourBusiness #BusinessExpansion #EntrepreneurialMindset #GrowthHacking #BusinessSuccess

Sponsored by: Polianna.net

Audio Transcript

Welcome to the H VAC Financial Freedom podcast, a show to help you create more revenue, profit and freedom in your life. Now, your host, John Victoria. All right. Hello and welcome everyone to the HVAC Financial Freedom Podcast. My name is John Victoria, your host. And today I am very excited for our two guests that we are bringing on today. Um These guys have been on the fast track to building a very um successful HV AC company in Kentucky and I'm so impressed because uh from one of our conversations, the oldest person in their company is one of the owners at 30 years old.

And so, you know, I think that there is a, a new change coming in the industry and I'm very excited to hear all they have to share and also how they got on the fast track to growing such a uh a big company. And so the two guys, the two gentlemen in question will be Zach and Dalton of air support, Kentucky and super excited to have him on board. So let me bring him on. Welcome gentlemen. How are you guys? How's it going move? Awesome. Yes, I was super excited.

Um So I guess just to kick it off, like um I mean, you guys grew so quickly over the first few years. So could you talk just like, where are you guys at right now? In terms of revenue, how's the size of the team and like, what's the service area you guys are focusing on? Yeah, so right now our revenue where we're tracking to be, so we actually really opened doors um in October um 22. So has even been a complete year yet. We're on track to hit 1.5 to 2 mil uh our first complete year.

Uh If you go year to year, of course, on our fiscal year and we're next year after that, we're in target and hit about three. Our goal is uh uh 50 million in five years. And so I can kind of explain more on that, but we have really big ambitions and we, we came right up the gate kind of swinging hard hidden hard as far as the other part of your question, the service there. Um Pretty much cover anywhere from Heat Town Global to Lexington. Um I currently live in the Fayette County market, Dalton Jeffersonville, east end of Louisville area.

Um but we're still kind of in a I I guess our, our stages growth, 90% of our work is still the east end of Louisville. Um Pretty much anything we do in Lexington and is by word of mouth, we don't spend money work here. Uh Obviously all of our marketing dollars, we got a mo um I know we p throughout the, the 113 million market five years. Um Obviously there's no, uh I, I know that's kind of a, a very specific number, but once we hit the 50 there's really no, uh there's no brake pedal.

Um, on that, obviously, we understand that be able to do 50 million will pretty much unheard of, but we're gonna be able one. Obviously, our, we our market hopefully in the next few years. Uh It all goes well, but growth has been kind of a uh I guess a rapid thing for us. So it's kind of like, you know, we really didn't start in any growth until we did really February March uh before it was kind of a scramble. Uh So it's all been pretty fun since. Awesome.

So I, I guess it's uh two questions I wanted to double click into. So first, you know, why, why 50 like, like why not 40 why not 60? Like why specifically 50? Like what's, what's the story behind that number? I don't know that there really is one. It's kind of a uh and you know, now that now that we look at it, I, I think 50 is just such a big number that you hear from, you know, we both came from very big companies, came from big outfits. Uh 50 was just kind of that magical number.

Uh, but I think a lot of that is kind of geared towards the market you're in. I think, you know, 50 is kind of an UN mark market number in the global market. I would say there's probably only two contractors might be three that even crabs that in that area. Um, but now that we look at it, I mean, I, it's, people might think we're crazy but it's very achievable over five years. I think the other thing to add on that too is we don't plan on just uh HV AC. So we do plan on going multi trade and that is gonna be the one of the ways that we, that goal.

It's awesome. So mul multi trade and um, and also you see companies in your market who are somewhat scratching up against it. So it's like, wow, this is, this is an actual possibility and um I also love that it, it is such a big goal. There's, um there's a great book. It's uh called 453 X is Easier Than Two X. And the, the premise behind it is that by having such a big goal, it simplifies the number of paths to get there. And so it's actually counterintuitively easier to set a bigger goal than to set a smaller goal.

Um So I absolutely love that. Um And, and I guess the other thing I wanted to, to double click into was, um, you said there's something around February March. Like what, what happened around that time? Was it just, was it a seasonal thing? Was it something like, you know, the magic internally within the company? Like we finally figured out like, what, what happened that caused that, that surge in growth that you were talking about? Yeah. So I got a start on that first and I'll zack if you want to add anything to it.

So we, uh, started, we were just completely word of mouth at first. So we start with a very, very low amount of money from side jobs actually. So we weren't, we're not funded by anyone. We're not backed by anyone. It was just, uh, we both had jobs at other companies. We're kind of doing some side work on the side to kind of build up a little bit of a nest egg wasn't much, it was like less than 20 grand, something like that. So it's not, not a lot of money.

So we started extremely lean. So all the, all the um, original calls that we ran were all self generate. So either through Facebook, uh Facebook groups are really lucrative for us. Um Just uh word of mouth in general people we know and those kind of relationships act really good at networking. And then what we really had to do a lot of was some door knocking, Zach and I got humbled up pretty quickly, uh when bills are due and we gotta find a way to make money. So we, we went to a bunch of communities, we door knocked, the door slammed in our face the whole nine yards of it.

And really, that's what kind of motivated us. Ok? We gotta keep, keep going, keep pushing. If we can get through this, we can generate some revenue this way. We can just definitely do it once a mark and we waste a ton of mo uh money on marketing out the gate. I don't even wanna say how much uh I heard through we're on our third or fourth website now. Uh And you know, we're still not even a year, year in business, a ton ton of money out of the gate on marketing kind of firing on all cylinders.

And we kind of figured out what, what we can do. And now we're at a point where it's a little bit more fun too. And then of course, it is a seasonal business. So April was kind of when we first got our, our hot streak. So anyone in the trade is gonna get a phone call then. Um But we really dabbled in our marketing is kind of the, the biggest thing that made that big jump. Awesome. And then, uh Zach, same perspective on that was that, was that the same ingredients that you were seeing on your end?

Um You know, the biggest thing that, that we are don't bring two very different uh aspects of the earth. They don't get very, very, very strong that the, how else I know enough to be dangerous but not a strong effect. So, it's, it's kind of humbling to see because at the end of the day, you could be the best tech in the world. You can be the uh best network in the world if you can't mark it. Uh, probably, uh I thought was funny. It's, it's a simple equation.

Um So I, I think the biggest, you know, we went through like a little, a little series out the gate, uh where our Google got actually had to have a T wall to get our gate back. So Google is a necessary evil, right? So, um it's, uh so that, that kind of held us up a little bit. Uh And, you know, it's, I don't know, marketing is like the weather channel, you know, 50% of them are accurate, 50% are shooting fish in a barrel. So it's, uh it's, it's trying to understand and it, I don't know, it's, I think we haven't navigated.

That's a whole different glass. I don't really know. Um We know it's working now, obviously contract everything. Um You know, we're, we're literally on every single piece of work separate from it. So obviously that's a, it's, it's not that I guess the mentality kind of like garp anybody can do it, but who's good at it or just have that room it's been a lot of money to learn. Yeah. Which we spend a lot of money. You'll learn quick. You're bleeding. Yeah. Right. You're bleeding. Like I gotta, I gotta figure this out.

Love that. Um, and, and I guess just, uh, I, I'd love to also dig in as well because you guys came so fast out of the gate. And, um, also at, at your ages as well. I, I've spoken to so many owners who have been in the game for 10, 20 years and, you know, they're, they're having a tough time cracking that, that seven figure mark and, and I'm, I'm always just curious, like the psychology and like the backgrounds of the people that are able to break through quickly.

Um, and those that, it seems like there's, there's something that's, that's not like catching. And so could you speak to that? Maybe, especially for the younger guys who are listening, maybe they're, you know, want to start up their company or maybe they've started and they, you know, they're looking to get inspired. Like what, like, what would you say to them, like to achieve like the fast, uh, run rate or the growth that you guys have seen in less than a year. I mean, it's in my perspective, it's all grind.

And also so, I mean, you know, we know a lot of people, um, network very, very well. Um, but, you know, we realized the quicker we get it done now is the quicker we're coming out of the truck. Uh enjoy the actual aspects of life. I like business shares. I don't like the the financial business share, you know, like Dalton was saying, we started our business with $30,000. Uh and then, you know, the other, the other piece of it where we're very, very important, no debt market. So the ability to, to, to grow um is, is awesome because, you know, we, we almost eight months without a paycheck, um where we literally just, just added fuel to the business and it wasn't fun, but we understood that, you know, there's a bigger picture and I think the industry, a lot of people see where they mess up is get these really busy summers.

These people go out and they buy all these nice toys and run behind on the courts house Bill and they're focused less on the business idea and focus more on the fact I make it 25 a week, learn sh in the park. Um You gotta bank that money. You don't know what the economy is gonna do. Obviously right now, the economy very sha regardless of your political views, it's, it's, it's just reality, try to face all and if you don't bank for the slower seasons, your stock and grow or you ultimately may not have a business loan. Awesome.

How was you, Dalton. Yeah, I'll explain on that a little bit too. I know you were messaging, kind of like what's the difference between like a, a six figure or seven figure contractor? And I think a lot of it has to do with kind of the perspective on the industry when I first started charter registers and I'll kind of talk, talk a little bit of the technician side, kind of more on the business side of it too. But having that perspective from a technician to your guys in Zach and I are really good at maximizing when we're in the house.

So it doesn't take very many leads. We ran in one month. We've spent, I think $6000 on paper, click, ran four leads and made $303,000 in row. So it doesn't take a whole lot for us to convert. And that's where a lot of contractors miss out on. They're already through these leads and leads are extremely expensive as we know, unless you've been in the game 15, 20 years and you have a whole kind of word of mouth, you know, uh, you've been in the town for a while. Good old boy system kind of thing.

You're paying a lot of money for these leads and we found that out. So one of the most important thing is maximizing the leads. Uh, the pro I miss a lot of guys come, come from a very genuine place like, hey, I don't want to rip people off. I don't wanna overcharge. I don't wanna do this, but it turns out being especially in our trade, if you're not doing a full system inspection of the house, you're not in the house for at least an hour on the service call, minimum system inspection.

Closer to two hours. If you're not doing the due diligence, you're actually doing the cup for a disservice. There's a lot of, a lot of people don't understand if I got to return to that customer more than once in the same six months even, I'd miss up. There's something I probably did wrong or when my text is wrong. So when you're in the house really going through and checking because the reality of it is, uh, this is on the H BC School podcast and uh, it was Jim Berg and Ryan Orr.

They were talking about a little bit, uh, nine out of 10 systems have uh an existing issue. If you include duck leakage that goes up to 10 out of 10 systems. So the technicians leaving them that way or they are they fixing those issues because your clients paid, you know, calling you because they have a problem. You're leaving with a $99 service fee capacitor, you're not fixing all their issues. Maybe they don't want to spend the money on a lot of them have no idea what's wrong. They don't know if 30% of their error is leaking into their, their ad.

They don't know that their filtration system isn't working, getting mold inside the cabinet. So all the technicians just don't have a good federal process. And I think that's really what ends up separating the, the six figure contractors that are just kind of paying themselves versus the guys who are really growing as they, they understand that there's a whole process that needs to be done inside of the house. That's where Zach and I, we, I feel like we do really well as we maximize on our opportunities because again, they're expensive, but that's kind of kind of the biggest difference that I see.

Got you. Yeah, just making the most out of what you got because it's, it's like, you know, there's, there's more, it seems like in all, all markets, there's more players that are coming in, whether that's private equity or whether there's these bigger players with these huge marketing budgets. And um and just making the, how do you make the most out of what you already got? It's not always about new, new, new, it's about, ok, how do we take care of what we currently have, whether that's the opportunity in front of us or even some of our past customers?

Um And then to what you said, Zach, I, I love the, it's like this idea of sacrifice of, you know, short term versus long term gratification, right? It's like, do I, do I want the paychecks now, do you, do I want the pretty toys, you know, do I wanna be able to flex, you know, h I paid for it like this, that sort of deal. Like I got all these things or do I want to put those funds back to the business to, to grow? And, and maybe, um I, I know one thing that you guys mentioned before, I mean, a previous call was, you know, bring on the right, right team as well.

And so being able to pay them. So, could you speak to that as well? Because it's not just you two guys, like there's, there's more people on your team. Could you talk about maybe like the first few hires that you made? And um, and I guess like how you, how you brought them on into the company? Yeah, so we, uh we work with the guys. So, um is that how many years you've been in the trade for uh college though? Well, well, so, uh that is uh 11 years, 403 years.

Yeah, he's got 11 years and I sure high school, I'm 23. So, uh six years for me and so for us, we both work at other companies and one of the most important things we found is obviously building those relationships while you're at other companies because you learn, you learn and meet a whole lot of really good techs and you know, who are the not, not so great techs. So just knowing the people and kind of having in your circle all the guys that we work with currently who are employed by us, they, we've worked with them before.

So we've got to get a really good grasp on their level of quality, their ethics and just their overall performance. So that's the really big part there. Um Obviously, we wanna hire guys who are clean cut. Uh We really believe in the image side of the industry. We're not gonna hire someone who's £400 overweight. Uh It is what it is, it affects their performance in a home. You're not gonna be trustworthy if your, if your beard's all grown out manly, if you need to be a clean cut sharp image and that's kind of the, the audience that we sell to our ideal client, they expect it.

So we hire people who are in line with that people who work out. So everyone on our team goes to the gym, you know, 3 to 5 days a week. Uh That's another thing. So just kind of find that people who are already self driven and they just kind of being that, that lending hand out that next levels where we, we've seen some success there. How much is that anything else that you felt, um, was missing? So it seems like guys you've worked with in the past similar work ethic, um, you know, going to the gym together, it, it shares like, hey, you know, physical fitness, that excellence and body was a key thing.

I would prefer guys that haven't been in the industry 40 years and I know this might trample and what 99% of contractors say it's not that I have a job with those people. But we want guys that, you know, we're air support. We're not, we're not our competitors. We want jobs on our way. Everybody does differently. We have a certain standard and it's a lot easier to teach a new dog. Triggs is an old dog and it's not that, that the, the way they may do it may, may be awesome, but it's a lot better to be able to grow guys into, you know, Peterman brothers.

They, they do this, this aspect really well, you know, they turn guys around with 60 leagues more just so obviously, Chad's gotta figure it out. Um, we kinda had that same philosophy on a, we, we, we prefer God's been carried a year, year and a half that we can mold because, I mean, at the end of the day HBO C is not rocket science. It's not, you're not, you're not performing brain surgery. So that's, that's kind of really the only thing I got to add as far as the pay Bayside is pretty much you get what you get.

Um, I won't dive into the specific numbers on how we pay the guys. Uh, but the more they perform, the more they make. Um, and if you've ever sat down with our guys, they're, they're more than uh uh I'll be very transparent. Both of our gals will make one of one will clear six figures, a healthy six figures and the other one can touch, um which is almost unheard of. Um And you know, they're not, we don't, we don't kill them. No, we, we literally gotta beg them early to work on the weekends.

So it's uh guys are treated well. But, you know, I think a lot of people don't understand when you get into this side of business with blue collar guys. Money is great. Uh, but it's not corporate, you know, 90% of blue collar guys aren't care about money. They wanna go home, they wanna see the wives and see the kids and crack a beer, get on their side by sides or whatever their hobbies may be. But for the most part, you know, it's, it's culture, you know, guys, you know, that's, that's where Dalton really shines in this industry.

Dalton doesn't ask his guys to do anything that he would not, you know, might be the worst. Girl. Don't be the first guy there. It's, it's a local effect of a, not a guy pushing policies down to grow without, with you. I think that's where we shine because I pretty, pretty much, I would say 3043% of our market knows property. And, you know, it's this whole idea of you're gonna follow these rules A to Z whether you like it or not, if you have a problem with it and throw them about private equities.

Spoor, sorry, private equity. You off the podcast. It's just reality. That's true. It's, and it's, um, and it's, I, I love what you said. It's, it's leading from the front. Uh, it's, um, you know, if I'm gonna ask you to do something, then I'm also willing to do that. And I, I feel that builds a lot of confidence in a team rather than this. You know, I'm sitting in my mighty chair and everyone do, as I say, because I'm paying you and that might have worked out of corporate, you know, 10, 2030 years ago.

But I feel as well like the new generation of the workforce is, is very different. Um And it sounds like those are also the, the guys who you're attracting as well in that, in the twenties, you know, twenties range is what, what it sounds like um in terms of um attracting, you know, uh you know, the, the newer workforce, are there other things? So you talked about work life balance, you know, pay is important but maybe not a primary contributor. Um You know, having, you know, great, you know, leaders who are willing to lead from the front.

Is there anything else that if you were advising someone who wanted to attract more team members who were, you know, in that age range? Like what else? What else, what other things could be good to, you know, bring them on board to, to the company. Yeah, one of the things that we're doing, um that's more so on the service, it looks like it's, it's just marketing. Uh but it's more so for attracting good talent is we're doing a lot of social media posts and uh what that really helps us with.

So we do a lot of educational videos so it is perfect with clients. But a lot of it's for attracting guys who are in our area um to us because either you're gonna vibe with the, the content and materials that we're putting out or you're not. And if you're not vibing with it, you don't like we're putting out because we're putting out here here are our standards, standards, exceed most of the industry standards. This is the way we do our jobs. This is why we do our jobs.

This way. If we get guys who are butt and heads on that or I do it 15 years this way, you don't need to do it like that. You're a typical guy. We don't want that guy. We want someone who's like, OK, I love this. You guys take a lot of pride in your work. It's attracts pride, prideful guys, guys who are really careful because the reality is if you're a service, secondary industry, the last thing you wanna do is work for a company that's got really, really terrible low quality installs.

If you don't get paid on those, those are non opportunity calls, you're just making your, your hourly year base pay. So you want to come to a place that really emphasizes the importance of high quality installs, low number of callbacks and that's what we wanna track. But with that, all the social media that we're posting, we uh location tag everything. So it's more likely to pop up on your feed with a Tik Tok Instagram, Facebook, youtube. So we're on all the platforms and we've been getting a lot of this attention.

Yeah, we've been getting some viral posts here and there, but a lot of it's been guys in the, in the supply house, you know, talk, hey, I, I watched your video or hey, I've seen your video and that's what we're kind of after with that is the whole culture building there. Awesome. Like no big deal. We went viral like once or twice, you know, no biggie. That's awesome. And um like what would like, what would a typical video look like? So could you give me like an example?

Like, oh this is, this is what we would create in like this. This was a, this was a great piece. Yeah. So typically it'll just be us out on a job. Um Let's say we're installing a media filter. We'll explain this is why we're installing the media filter. This way these are the benefits of it. This is how it helps the client and this is how it makes it better to install. So it's kind of a quick, we try to keep all the videos under 27 seconds kind of from the algorithms of everything.

Um It's just a quick little explanation. We'll talk about me flowing nitrogen in another video. Just kind of best practice is, here's what we do, here's why and it kind of gives us a professional edge over our competition in our market because there's not a single competitor doing that right now. You know, if they do, we're far ahead of them with, with how much content they put out. But the other side too is of course attracting like the talent. It's awesome. And I, I um I've seen a lot of um accounts, Instagram accounts and most of them are the mar the marketing is, is a different, is different focus.

Like most of it is like, hey, here's my special, here's my promo Happy Labor Day and it's very like corporate, it's like an image. There's, you don't feel the life of the company, but it sounds like you just have a completely different angle. Like it's, it's, it's, it's like almost your, it's a different, like target market you're trying to serve. It's not, it's sort of the customer, maybe the customer will enjoy that, but it's, it's more for other people who, who are seeing, which is a very unique angle.

It sounds um that's awesome. And any thoughts on that zack from your perspective? I mean, not really hit it right on the head. I mean, you know, a lot of it is, you know, it's just unorthodox. Right. You know, from the day I've been in the industry to now everything I do is an orthodox compare to what everybody else does. And I think why, you know, you, it's just different, you know, and pe people like different, um, you know, and it, it's, there's a level of trust that comes with that difference too, obviously is, you know, from, from a hiring standpoint.

If you can boast your work online, you run the risk of getting berated, literally. That's that the ice is where I can put it. Uh And there's a level of trust that comes with that. Um So I'm confident in what I do. Uh My stuff looks good, I'm happy with it. I know it's done, right. I'll post it all over. So maybe wherever the case may be. Um If you know, you don't do good work, you know, you're running behind bad work, you're not doing that. Uh So, II I think you get the psychological aspects of that still, it's, it's just a level of trust and, you know, people want to be a part because it, it makes everybody else's life easier.

Awesome, cool. And um and I, I guess on that, uh you, you mentioned about performance pay and I remember from our previous conversation, how important that was as well. Like, it's not just, hey, it's a flat pay and then from there we're good. Could you maybe, you know, talk a little bit more about how you don't have to get specific numbers but just like how, like, what are some of those things that are being incentivized to make sure that, you know, the quality is to the standard that you guys are looking for.

Like, how, how is that entire, I guess incentive system set up? Yeah, exactly. Um, essentially in our market, there's two ways people are getting paid right now. You're either hourly plus spiff or commission or you're a, uh, complete crew pay. Yeah. In the install world there's, they're doing a lot of crew pay now. Uh, that's kind of where I think the industry is heading, which is a, a percentage of the job total. So let's say a job sells for $225,211 or crew pay 245 230% $240 is split between the lead in store.

Um, some kind of split. That's how a lot of the companies are starting to do it or they're, they're still hourly and they're still doing overtime, they're doing bonuses, stuff like, so we're doing on the percentage side. The biggest problem that I've seen with this, I work with a company. Um, that was like, that is, the install quality was awful because you're incentivizing these guys to get off the job as quick as possible because they're making more money on the hour. So how the way you combat that, uh, this, I kind of rip this off, Tommy Mellow from a one garage doors.

Uh, they, they have categorized ways that they pay. So ours is a sliding scale percentage. I won't get into what the exact numbers look like on that. But they're based on five KP. I si, I think you, if you have too many uh it gets kind of overwhelming. But on our install five, there's five core kpis that we, we base that off of and you have to be within range on every single one of them or you, you get dipped down. So it's a sliding scale commission percentage and all of this motivates our techs.

Uh So through pay structure, those KPIS would motivate them to market for us to help advertise, get our name out there, motivate them to do a higher quality craftsmanship job, get good reviews. So all this is part of the pay structure. And then on our service side, we have a kind of a, a blend between the services could a little bit more seasonal, a little bit more of a high and low dip. Um On our service end of it, we do a base plus commission and same thing on there.

It's, it's completely based on those same KPIS. So, incentivizing that through pay is what we figured out makes the difference because the problem is, if you stick to just hourly, you're not really motivating them to be efficient at their job, you're not really uh motivating them to do more work, be more productive. And then if you do the just percentage way with no type of structure behind that, you're incentivizing to do a quick, low quality job. So we found the hybrid, I think we found the hybrid between that.

Obviously, we'll, we'll figure out the pains as we grow with that. Uh Tommy Mellow, he, he talks about a lot on his podcast and that's kind of where, where that whole thing came from. I really liked it. And if I'm a guy in the field, I'm thinking about how do I want to pay? What would motivate me? And that's, that's exactly how we came up. It's awesome. Yeah. And it's, it really creates a win, win, right? You know, it's for, for the customer, it's great for the installer.

It's great, but also for the company, it's great because it's, it's maintained at the proper standard. Um That's, that's beautiful. That's absolutely beautiful. And then, um Zach, any other thoughts on the incentive based structure? I mean, you know, I would say pay structure kind of plays along with g back, right? So it's, it's making, get rid of the, you know, the, the big joke on the boss all the time and you're on the, on the jobs all the time and don't call that. Uh But I was the first guy to, to blurt out.

I'm not your dad. You know, we're, we try to run our company like we're not like we're not owners like we're employees. Uh And I think that's the, the biggest thing when you get into the pay side too is, you know, you, you incentivize these guys to go the extra mile. The ultimate end of the day is a business owner. It may sound greedy, but your goal is you want you guys to go the extra mile for you because you know, if you got a late in store on a Friday night, you wanna keep spirits high.

I mean, we're fortunate our guys that it'd be midnight, we're still on a job. People are laughing, you know. Um And that's I I think a lot of that is created from that base structure and uh at least it's, it's like you said, it just comes out of incentives. I think, I think all he just recapped and cover it pretty well. Cool. So it's, it sounds like the, the combo of, you know, the incentives and pay structure plus how you hired in the beginning. You know, there's the marketing as well as leading from the front.

That's like almost a good mix of what created the culture. Is there anything else you thought that was missing? That was like, oh, this is, this is something that's key that we do that really helps build culture in the company, I think you mentioned gym earlier. So I don't know. Maybe you guys gonna hit the gym and alys some iron together or anything else that you guys do? Yeah, we, we're not gonna have, I really do. I got a Dunkin Donuts addiction but I, I don't know.

I mean, it's, I, you know, I don't, in the past, I think when you in there with the, in the trenches with your guys, uh we have a relationship with these guys that's got a lot of respect in the industry. Uh So I, I think there's, you know, if your guys are happy at your company, bringing on talent is a uh I don't, there, in my opinion, there's no shortage in the industry. All that's b si think it's, you know, talent follows talent. So if you have really good talent, they come in a pack and burn that bridge, especially in a small town in Kentucky is not, not, not huge by me.

We're not San Antonio, we're not Los Angeles. Uh You burn your bridge where it gets real. We know a few companies that could explain that very well. Uh The talent falls talent. I mean, people, people know who does good work. You know, like don said, service techs do not want to r behind that installs because they're taking the brunt of it from the customer, not getting paid on it and do it. Said they gotta fix it, you know, the whole philosophy if you pay installers and before you make them packs and installers, that stuff will, will come to that speech at all of that.

Love that. Um, cool. And I guess, uh, from here I'd love to shift the conversation to your partnership. Right? So, um, I guess like how you guys, I mean, it sounds like you guys worked together in the past. Um, II, I think my questions would be around like building a successful partnerships because I, I've seen, I've heard, you know, many folks who had a partnership and because this or that we didn't talk about this or that or personality conflicts, it can be a challenge on an ongoing basis.

And so, um, you know, for someone who is thinking about getting or building a partnership because you guys have strengths that like, uh inversely you don't have. And so it sounds like you're a nice pair together. And so when it comes to partnerships, any, any advice that you'd give to someone who's, who's looking to get into it, I think a lot of it's just you gotta know your business partner. Um You know, and at the end of the day, I don't care if anybody says no matter how close, how, how good friends you are, you're gonna butt heads, you're gonna disagree on that.

That's just life. But I, I think the biggest piece of advice I can recommend, I can tell you right now, probably workout to get along here. Very stubborn. I'm very set in my ways, incredibly patient. Um But if you don't, at, at the end of the day, partnership, in my opinion, is focused on one thing and that's a goal. Uh If you don't have the same goals, you don't have the same, you know, 1003 year goal, 2100 year goal, 210 year goal, it doesn't matter how, how long or how well you get along initially that there will be no value in that partnership.

People could say, oh, we were best friends for 215 years. That's all great. But if, you know, like if I was 50% in on, on the investing side as far as, you know, let's, let's hold off on some of the marketing. This would never work. Uh, you know, we, we're both, there's one thing at the end of the day, no matter what we disagree on, fight on both have no loss. Uh, it's 100 MPH full throttle and without AAA set goal between the two, it, it, it just doesn't work.

Yeah, a land goals and all time. But yeah, yeah. What I've added that too is, you know, like ex exactly. So the goal, mutual interest, I think holds any, any partnership together so much more than any type of written contract could in the world. So, having that we both have the exact same goals. We both know where we wanna be the end goal in mind is extremely important. And then the other part too is I, I think when you find a partnership, you almost want them to be an opposite part.

You don't want a lot of people are, they're close to circle or people who just like. And that maybe a technician in the field is what we see. A lot of technician in the field finds another really good tech, they're really confident, they know nothing on, on the interpersonal side, the communication side. So that's where Zach and I kind of bring really good dynamics to the industry. Uh And as a partnership, Zach's, he's a networking genius. I mean, he can talk to anyone, find anyone, get any contact and he's been exponentially valuable.

Uh You know, if you look on paper on the technical side, he's not your strongest technical guy in the world, but you wouldn't, you would be fool if not the partner of this guy. Um because you don't really realize the strength of having that large circle network and I'm not that guy, but I am really good at the technical side. I can run guys, I can manage careers, I can manage jobs really well. So having kind of that Yin and Yang together helps and we're both willing to learn each other's aspects too.

So Zach is 10 times the condition than he ever was before and I'm 10 times the network or however it was before. So having that given poll the guys, you know, having guys wanna work and help each other. Zach's given me tons of tons of ways to improve on my network communication side. And when I first met, met Zach Zach actually interviewed me at the company I was working at and I was, I was uh £20 lighter. I wouldn't look you in the eye. I, I was stuttered half my words.

So all that stuff makes a really big difference. And then last thing I would say that really helps our, our partnership is our commitment. So if you got a family and you have kids, you have a lot of, I'd call it baggage, I'd call it commitments. The reality is, is things that pull you away from the business. If you have a lot of that, that makes it a lot more stressful, harder because at the end of the day right now, Zach and I were both single guys.

We're young. We don't have any kids. We don't have any baggage. We don't have any commitments. So that allows us to kind of put all of our energy towards the business where if one partner has a family, one doesn't, you're not gonna understand that, that aspect of them. Um So of course we've, we've, we've talked about it too, uh, with the partnership. Hey, if you, uh you get married, you get a girl that prenup sound it, it's in our home. So I wish you, I wish you man, free enough.

But having that stuff like talked about ahead of time because, you know, it's gonna be something, you know, obviously, we don't wanna be 60 hours a week, every single week. The rest of our life in business is not the end goal, but we do wanna go full throttle at it for at least the next five or so years. So obviously, as we start to kind of get some of those payments added on, we're not gonna be single guys the rest of our lives and open up, uh Zach's wild card.

He's I not mad but, but as this commitment goes on, it's important to have that, that communication about it. This is where we wanna be, these are our goals and this is how things can change and having all that kind of talked about up front piled on to the mutual interest, the common goals. That's kind of what makes our partnership great. We, we do butt heads in some areas and we don't always agree on everything. But at the end of the day, we both want the best company, we want to make the most amount of money we wanna be the most successful and the best of, and we both have those exact same goals.

So sometimes it kind of takes a little bit back and forth to show each other. Hey, this is why I'm figuring this. Um, but just having a lot together is really what makes it a nice fluid partnership. It's awesome. And uh as you guys were speaking, I was just watching both of your faces like, as you're speaking al and how, how Zach reacting and then the reverse. And I, I could tell there's that synergy, there's that bond there and just like I love that. Um And there's three traits I also wanted to point out you guys did mention II I think you guys have a, both of you have great self awareness to be able to acknowledge like, hey, here's my strengths and here's my weaknesses and here's where the gaps need to be filled.

I think on top of that, there's a humility that comes with that like, hey, I don't, I don't know everything and um you know, a lot of folks, they, they don't want us like, they don't want to be stupid or I don't know this or that, but you guys have that humility. And then third is, is that transparency of like, hey, this is what's going on and this is, this is like how things are going right now. Um I, I think those are three traits that both of you have that, that really helps out the relationship a lot.

It's, it's like building any relationship, those are three key things to, to any relationship. So love seeing that. Um OK. And then um well, any pitfalls you'd say like now that you're in the relationship, do you advising someone is there anything that you'd say? Wow, that's a complete red flag. You should not go forward on that partnership. Like, how do you advise someone who's thinking about it? Um, and there's like, don't do that. That's bad. Don't do that. I, so, uh, I, I could, uh, I could go all night, all this time.

Uh, I mean, as a point, Tyler Partnership doesn't make sense. Right. So, I think some people dive too deep into the partnership. You know, a lot of, I, I'd say a lot of businesses are built on partnership where one person bring basically a crap load of money to the table and the other person is basically slave. And, uh, and those are usually the partnerships that fail. Um, because there's a point in time where, you know, at the end of the day, a business is, is, is the only goal of business like business.

And if your number is value you a numbers cruncher and bring the, the money to the table, your one focus is put the money back in my pocket. As quick as we pay it, let's grow it. And that's just not reality. You know, and I, I think the other issue that I see a lot of people don't sure is we partner with people. They go, oh, and everything seems good on paper. But, you know, at the end of the day it's not who you are, who thinks are good too, or it uh, how do you resolve those problems?

It can't resolve together. You know, that's, that's one thing about me do is we do not see out, out and a lot of stuff we, but its probably three or four times a week. Uh, but we bring it up right away. It's, it's resolved right of way. No, they probably not gonna like conversation of the, out of the reality is that there's no awkward silence or any of that. And I think there's a lot of, you know, what's, what's, what's funny about my relationship with Dalton is I'm the first guy that I'll never speak highly into his face.

Um, but I do behind his back constantly. He'll tell you that. Um, and it's not, it's, it's just my competitive aspect, my competitive mindset. Um, and I'm that way with all the gods as well. You know, it's kind of like competitive edge that you don't participation, participation, therapy area. It's really good at what you do where you saw it is what it is. You know, how are you gonna get better? And I think that a lot of people can't handle that mindset. Um, it's just different for me.

You could go, I could, like I said, I could fill a notebook or what works and, you know, they, I say my biggest piece and I'll turn it over. Dal would be people get so money hungry. Um, I grew up in money. Do you know, I have very different backgrounds of that. Uh Fuck up very well. But at the end of the day, uh ba ho really holds no value. Uh Sure. It's also one of problems but it's not here to happen because, you know, it doesn't matter if I'm worth $103 million or, or I got f my life who I am at the end of the day.

Still one of the cheapest guys. I tell you as, as cheapest of kids, but keep it all ways. Oh, but you know that, I think people let money change them and at the end of the day it's, we're all gonna end up 6 ft on the ground. But money something goes, you know, people don't d how about you? Any red flags? You know, the ones? Hey, no, no, it, it's a red flag. It's huge. Yeah, absolutely. So, one thing I'd like to add that, uh, I guess it kind of helped and not so much as a red flag but being really transparent about what you personally didn't take home the business because a lot of guys, they're not transparent about that up front.

They will say it's a lower number. So, Zach and I, when we, when we open doors, we didn't take a paycheck for the first eight months. And, uh, we're very transparent about each other's personal finances and maybe too much to the point where we might as well just be married at this point. We know everything about each other, right? But, uh, just having that clear expectation like, hey, this is what, when we're gonna start taking money, this is what we need to start, start, uh, paying ourselves is how we're gonna do it.

And the next step so we never just start paying each other more, something like that without consulting the other. So there's always that communication between each other. Uh, when we were first paying ourselves, we were paying ourselves what would be considered poverty and that'd be a nice way to put it and we pay those old pennies. So, and that was after eight months of absolutely zero paycheck in business. So, having that in mind too, when you start out, when things are rough. What's that like? Are you guys both in financially comfortable spots?

Uh, Zach's got some, some age on me. So he's been able to build up a more personal essay, but we both were financially responsible for entering business to each and with each other. If you have a partnership with someone who lives paycheck to paycheck, that's probably not gonna work out because when times get hard and you need to pay yourselves less or something like that and that partner can't, there's gonna be a lot of friction, a lot of heat there. That's one of the things I'd say is really, really important is being transparent about what someone has to make.

And the other side too is I'd say for most people, a partnership, I think doesn't make too much sense. I think you're better off hiring your weaknesses as opposed to partnering and giving equity of a business towards that. I think Zach and I have just a really good relationship. It works for us. But I think for a lot of people, I could see how it's terrible. We know a lot of guys, uh, locally who have partnered up and they just fall flat on their face because it's not about a contract that's gonna hold a business contract is gonna be about worthless.

You know, if someone wants to give up their effort and just stop working out entirely, you can't stop them doing, you can't force them to work. So having that all really upfront and transparent, knowing who you're going in business with a lot of people like to see all the good sides, all the benefits without really being realistic about who they are, what, what their history is like. Zach and I both have, have a track record of being the highest performers anywhere. We've been so partnering with someone like that who has that consistency.

I think it is really, really important and, and just, I guess just a recap compatibilities, it sounds like financially capable was one lifestyle I place in life with commitments, um fitness and then vision. Hey, guys are match made in heaven. You know, you have anything else to add to that I had the gym rat, gym rat or gym rat. He is. So I can't really can dive into that. I, I got you out of the house. That's about it. That's awesome. Um And I, and I, I guess the transition from here, um, it sounds like you've had some really great mentors and people who poured into you in your life.

Um Also, it sounds like, you know, Tommy Mello's podcast was pretty big for you, Dalton. Um What was some of the, I guess some of the mentors or the information or the groups that you were a part of that really helped to, um you know, keep you in the know and, you know, keep your knowledge sharp because there's, there's so much that's out there, right? And it's gonna be overwhelming. Um But it sounds like you guys have that for you. Like, what, what would you say, like really helps with, um with the knowledge aspect of building the business aside from, of course, the direct experience with the companies, I think that was a huge piece.

Anything else that, that you'd, you'd add on? Yes, I, I'll start on that. Um At least on my end of it, I came from two failed uh parents uh small businesses. So both my parents were entrepreneurs growing up, both their businesses kind of fell flat. They didn't do too well. I got to see a lot of what not to do early on. Um But then kind of once you get in the trade, what I realized really quickly, like I said, I said, I started my first week out of high school and within six month period, I was making just as much as the other guys were been doing 34 to 6 years.

And I realized really quickly, there's, there's a quality level, there's a, there's a shift in, uh, in what you're able to, to do just by applying yourself, putting your head into the books. Um So for, for me, at least from a business side, a lot of podcasts, um just a lot of kind of observing how a business works when you're an employee for a business is a great time to learn underneath someone else's w uh Zach did a really good job at a company we're at together before kind of scaling the HV AC side up extremely quick.

And that's where a lot of his experience comes from too. And, uh I, I think just having that kind of, you almost have a playground when you work for someone else. When you're an employee, you have all the experience that you can get, but none of the inherent risk comes with that. Uh But it's often down the podcast on HB AC podcasts, it's a big, big eye opener on the opportunities that are missed out in the house. Uh Of course, Tommy Mills podcast. Just think that guy is a genius.

He's gonna do amazing things. In the gross store world and then just kind of getting your hands on everything. There's a lot of fluff in our industry, a lot of fluff in the sales space and kind of picking through what works for you and creating your own process because everywhere, you know, a lot of this, we're not the first ones to do heating in their business. Right. So we don't have to completely re invent the wheel with it, but we can definitely make our own wheel work a little bit better for us.

So, for us, it's about picking the best things of every single business. Kind of making it into a funnel. What's gonna work for us long term? How is that? So, kind of learn from other people's mistakes is a, is a big, big part. Too. Awesome. And Zack, how about you? I mean, I would still, you know, kind of look to pay you back, couple of adult and I don't be the first guy I tell you, I'm not really big into the hype stuff. I'm, I'm not a podcast guy.

Somebody podcasts all the time. Like, do you listen to that? Yeah. He's like, I know you don't listen to it. It's just, it's, it's not really me. I, I kind of have my old, my old, my old destiny. I probably the most ever visual you ever come across and it's, uh, you know, I, I don't know, I had a privilege in the company I was at before, um, where I kind of got the keys to the, uh, to the spaceship for the HB ac side got to kind of run with it.

And, uh, you know, we were basically a million or 7 million, like, basically a year of exploded. And that was kind of, you know, I built that but basically you got to play business with somebody else's money. Um, and I learned what didn't work and that's kind of where, you know, that was kind of a place where basically money was no option. It was how much more you need. All right, check. Uh which is great, but you learn what works and what doesn't work. And ultimately, you know, I think a lot of owners get sidetracked by that idea of, you know, grow, grow, grow, grow, grow, but you gotta have pieces at the bottle that can tell you that grow, that very company that we're talking about is uh they're, they're hurt right now because of that very reason because their, their culture is terrible.

They, they let certain they should never be leaders in a company of you're not, you know, ethical problems. Oh, yeah. I mean, that's, that's kind of me. Uh you know, I have a few mentors in the industry actually, Justin Riley, he's been a successful, he's the owner of Rough Frog. All he's like family made pretty much do salt water fishing together. Just a great stand up. Guy, I think the problem with this industry is there's so many faces in the industry and about things but that put on persona of what's that reality?

But we got burned on that a couple of times out the day we learned our lesson. You know, I think, you know, there's, there's a fine line you walk and, uh, you know, but business is business at the end of the day, there's 25 methods for, for 11 resolution. You know, they may all work which one works best for you. Um You know, markets are different and I don't care what anybody says 45 minutes from each other and our marketing night that I the night. Um and if you don't understand market, so you, you're never gonna be.

Um so I think at the end of the day, business, like, like I said before, visit, there's money in anything you do. Uh Business is not hard to do, in my opinion, it's not hard to make money, dedicate to your craft. Be good at it. Understand your people that follow that, you know, at the end of the day, if your employees are happy guys are not like people enjoy what they do. Not about the money. When they come in on Monday morning, it's about, you know, it's, it's, they, they feel like theres bigger picture that taken on a patient love that, yeah, they're actually building, you know, building into a vision that's more than what someone individually can do.

Um, and I think it's a beautiful thing and it's, it's, it seems like, especially for the new generation of workers, that's what we're clamoring for. Um, you know, not to work in a, the same company for 30 40 years. Uh, you just, um, just mindless, mindless, mindless work. Yeah. And I know you guys came out of corporate as well. So you could probably, it's like, uh yeah, so cool. Um So I, the thing I also love to tell people, um is that, you know, our podcast or show, it's not about uh it's not entertainment, it's, it's education and that means that something has to be done as a result of it.

So you're to give like one action item for everyone who's listening. Like, what would you say to that person who's like thinking about making the leap or someone who's trying to scale up their company? Like, what's that one action that they should take out after listening to the podcast? Loud. Simple. Do it. Worst thing happens. You gotta go back and get another job, pull the trigger, ride it out. If you, if you got a hustle and you got ground and you're a competitor, you'll be successful at the end of the day.

Stay away from that bad, bad stuff. Stay away from it. Yeah. And I would just pretty much pig back off of that. It's um, especially if you're younger and you're even considering it, if you fall on your face, you have, you have time, the older you get, the harder and harder that gets. And of course, talk about commitments. If, if I had a few kids and had a wife at home, I would be be OK taking uh eight months without a paycheck. So pulling that trigger immediately.

And as far as an action item, um and don't be afraid to, to create a long checklist of process in your business and make sure you're maximizing every single opportunity. The amount of food that is left on the plate in our industry is it's absurd if your technicians or maybe you are tech right now and you're listening to this, if you're walking away with, I don't know, it depends on the market, of course, the dollar amount, but you're walking away with 304 $100 service tickets. You're doing the customer service at the end of the day and it's not so much about the dollar amount, but it's about, are you looking at more than just the exact part that's wrong on that day?

And uh so creating a process, do that. If you don't have one already, you don't have some type of level of checklist. Anything to go through. I think that's the most important. Yeah. Amazing. Um And any last words as well, I know we're coming up in the hour, it's also Sunday, um that we're recording this and so I appreciate both of you on a E evening on a Sunday. They're doing this any last pieces of advice or any other perspectives you want to share before we uh wrap everything up.

All your instinct. You all right. You know, there's tough times in any part of business or once you get through the tough times navigate, you know, if they are like, I come back to being a competitor, your competitor, you gotta win. I would just add a look in the mirror. How are you showing up to life? Are you showing to your business? The exact same way? Are you taking care of your health? You're not, not good from the inside. You're not gonna be good with your output.

So I think, make sure you're, you're in check there. Any bad habits, anything holding you back, you're out of shape, get your appearance, all that reflects on your output and that's completely in your life, not just in business that there's a quote that goes that wherever you go, there you are. And uh or that another version of it is um the way you do, one thing is the way you do everything so love that. Cool. Well, gentlemen, thank you so much, Zach and Zalta. This is a fun conversation.

Um Again, it's such incredible growth in such a short period of time. And I know that for a lot of the young guys who might be listening to this, they'll be very inspired. And for those who have been in the industry for, let's say, 10, 15 years, maybe this is the kick in the butt that they need in order to really get things into the gear. So, um, with that and thank you everyone for, for tuning into the podcast. Um Yeah, definitely hit up those action items and, um, yeah, with that, we'll close it up and we'll catch you on the next episode.

All right. Take care, take care everyone and we will chat soon. All right, bye everyone. Thank you for joining us for the H VAC Financial Freedom Podcast. Follow us on Stream Yard Apple podcast, Spotify, Amazon music and check out our main website, www dot H vac financial freedom dot com to find out how you can also achieve financial freedom.

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