Why This Hiring Pipeline Needs to Grow 12x

0:00Corey, what's up, man? You're on Hermosi Hotline. >> Hey, man. What's going on? >> I'm I'm cruising and cruising cruising and bruising. >> Hell yeah, that's what I'm talking about. >> All right, talk to me. What's the What's the business? What do you sell? How much you make? All that good stuff. >> Yeah, so we're in HVAC cleaning business. Okay. We're doing currently on track right now for this year for 1.8.

0:25>> All right, 1.8 top line, got it. What's What's bottom line? >> Bottom line right now is roughly 450 to 500. >> Nice, solid, good. Okay. Um what is You must have been consuming my stuff for a while. Okay. >> [laughter] >> Good amount of time. [clears throat] Good operation. >> No, I love it. Okay, so what's What's What's the thing that's holding you back? Is it not enough technicians or is it not enough leads?

0:53>> Uh it's Now Now it's it's still leads a little bit. We're always looking for more cuz we're we're currently always hiring. >> All right. >> So, we are now putting on a technician probably one every three to four months. >> Okay, got it. So, what's the constraint of the business right now? What's holding you back from doing twice as much? >> Right. So, right now is definitely leads. So, we just per our Cash Cow event that we had with you, the one thing that we really dissected was our third-party marketing.

1:26>> Corey, I didn't realize that this was This was that Corey. All right, rock and roll Corey. Yeah, yeah, I remember everything. I didn't know. I just had I had Corey, that's all I had. And Corey HVAC. No, no. But you're in duct cleaning, which is a little unique. All right. All right. All right, I remember. >> Yeah, that's right. >> Okay, so All right, so what's Yeah, so what's holding you back? >> Yeah, so right now we just got rid of our old marketing company, so we went with a new third party now. They're great. A lot of good track record. It's kind of a higher echelon of what um, know, is in our market.

1:58>> Okay. >> Um, so we actually have our CMO that worked with them previously in her past company. She took them from 2 million a month to uh, I'm sorry, 2 million a year to 2 million a month. Uh, so now we reunited them. Uh, so they are super excited to all work together again. >> Great. >> Um, but yeah, I mean, super right now is we're trying to just lock in on leads again. Uh, we are redoing the website. We're redoing a lot of our our ads and kind of reconfiguring >> things?

2:25>> Yeah. >> And just like we talked about in our cash cow is uh, you know, I mean, I'll spend unlimited ad spend as long as it makes sense and makes money, right? >> Yeah. So what's holding you back? Or this stuff just needs to pan out? >> on leads. Yeah, so we're working on leads right now and then finding the real constraint is finding enough technicians that um, that to fit our uh, our feed and what we do. So a big part of what we do is education. >> Yeah.

2:51>> Um, and all of our all of our employees right now, there's none of them that have a you know, HVAC, you know, background at all. Um, so it's been really interesting to kind of train people up from the ground zero, which has also been great. >> Yeah, but you get way better margins than learning it your way. So there's advantages, yeah. >> Right. Right, exactly. >> Okay, so do you need more leads or do you need more technicians?

3:16>> Uh, definitely more leads first. So technicians we're good right now. Uh, definitely more leads. >> Well, if you're already redesigning all your funnels and your offers and you're about to turn on a bunch of ads, I don't know if like my the first thing I want to do is just say like let's stop all that. Like I think you you need to do that, right? And so I think you need to let the dust settle from that change. Like one of the one of the big things that Leila says a lot, which I really appreciate is um, you never want to solve the same problem twice. And so it's like sometimes it's like if we have a 3-month solution to a problem, if we're 1 month in and the problem isn't solved, it makes sense though cuz we're still working on it. It's a 3-month solution. It's like it's going to take us 90 days. And so sometimes we want to solve the same thing like multiple ways when really the first thing was the right thing. It's just going to take 90 days.

3:54>> Right, exactly. >> So, if these guys were able to scale the other business, you know, from 2 million a year to 2 million a month, it sounds like they already have, you know, whatever their playbook is on the lead side. So, I'm going to just assume, just for the sake of our conversation, cuz it's going to get too granular that I can do over the phone without seeing what I like what I'd be looking at. >> Mhm. >> Um like super tactical headlines and moving, you know, all that kind of stuff. Um transitioning over to the supply side, cuz assuming that works, you're going to be quickly supply constrained, right?

4:20>> Right. >> Okay. So, what is your lead gen funnel for the for the uh technicians? >> So, right now, um we are currently going on Facebook groups and stuff of that nature. And we're also kind of we're almost recruiting and like reaching out to other companies. Uh so, when we see uh posts or things from other technicians or when my technicians are out in the field and they see other companies, uh those those guys are coming out to us of like, "Hey, I've never heard of you." You know, "I've never heard of you guys. What do you guys do?" And they see what we're doing and they want to be involved. So, uh they're just not happy where they are and they're looking for us. Uh but we have to be careful with that, too.

5:00>> Yeah. Well, all right. So, we have we have a couple like you need to like you're going to you need to go from, you know, one you What did you say? One every three or four months is what you said? >> Yeah. >> Right. So, if you're going to if you're going to 12x, you're going to have to go one every three or four months to like almost I mean, it's 12 times that. So, if you did one a month, it would still be only, you know, three times that. So, it's going to be closer to one a week.

5:28>> Mhm. >> To sustain the volume. So, we need to build that machine like soon. And so, we have to think about a more scalable way of acquiring them. And so, I think part of it is do you have the economics around how much a uh an HVAC technician makes you? >> Yes. So, an average technician around us makes somewhere would say 50 and 70. >> They make that much money, that's their pay. Is that what you're saying?

5:54>> Yeah. >> Okay. So, their salary is I'm going to say 60k. Okay, got it. How much gross profit does a technician bring in for you? Or I guess rev like take out cost of like, you know, the materials, right? So, take out material costs. How much does it make and then I'll subtract out their salary? >> About I would just call it say I mean 180 to 200.

6:20>> All right. So, 200k. Mhm. All right. Well, it's already 30% which is already kind of high cuz I was like is there a way that we can Well, what what commission are you giving to uh to bring them in? How much are you willing to spend to acquire? >> No, no, no. How much are you willing to spend to acquire a tech a tech?

6:45>> Uh well, right now we've actually had to outsource for for from different states. So, we're offering like relocation um you know, packages in order to get them here because we live in a lot of retirement communities and stuff like that. So, the people that we're looking for is kind of hard sometimes. So, um I mean, we offer you know, up to $10,000 of relocation um and then like I said, we try to get them rocking and rolling. >> Yeah. So, I think we just have to be a little bit more violent. I think you have the right strategy. I think it's just a volume thing. Like you know, you're reaching out like it's like how many recruiters do we have? How many we ask them for? Can we get them to get us more thing one?

7:24Thing two, like you're going in communities, but how many? How often? Um like do are they on are they on like where's the where's the best pool? Cuz they all hang out somewhere, right? So, where do they hang out? >> That's a good question. I got to I got to I got to deep dive into that. >> Well, you solve that, you make like $50 million. >> They're all typically working. That's That's where it's like especially with us >> they hang out online, dude. Everybody hangs out online. Entrepreneurs are always working. Okay, but they hang out online. So, that like don't like there's a there's somewhere they hang out.

7:57Groups, forums, associations, discords, school communities. Like they're somewhere. >> Got you. >> So, I'd be looking at the trades like trades uh groups in general. I'd look broader cuz you train these guys from scratch anyways, right? >> Right. Right. >> And do you like I mean you train them from scratch because like do you need them to be existing techs? Can you just get anyone to do it?

8:24>> I hire for personality more than anything. >> Well, dude, I mean then why would I mean like you don't need to be looking cross state. I mean Like this this to me sounds like a an ad thing. So, I'd be running like Indeed and like Facebook Marketplace or whatever ads. And then I'd be running them to a group interview. Cuz that'll make it efficient for you. Just group interviews. Just do, you know, one group interview, two group interviews a week. 10 people on. Assume only 30% are going to show.

8:55So, it's like get 30 people booked for each of the times. Um so, it's like 60, you know, 60-ish leads confirming which will probably take you five times that or more. Uh so, 300 leads a week uh coming in off of Indeed ads. Do a much, you know, do a 50-mi radius around your location. >> Okay. >> And I would be group group interviewing. And then off the group interview, we're talking like 1 or 2 minute just them just you catch a vibe pretty quick, right? Um and then you do a one-on-one with them after that. And that will allow you to triage through a shitload of applications.

9:28This is a low-skilled role. >> Exactly. >> This is a low-skilled role. I wouldn't be recruiting from out of state for this. Just low-skilled role. You just need You need to to spending like a ton of money on I mean a ton is relative, right? Like, if you're willing to spend 10,000, which I think is the right right way to think about this, dude, if you spend 10,000 a month, you're going to get way more than one technician on ads. Way more. >> Right. Right. Right. Right. >> Right. So, I don't even think you need to do much like I don't I mean, it's good that you're doing that, but I I think I would just You have to build the recruiting process for this business because if if the the girl and the reuniting with the you know, the agency or whatever they worked together before, they already know how the sales motion and the um and the acquisition works. So, you're going to have to 12x your acquisition of talent. So, this is another machine.

10:12>> Yeah. >> Cool. >> Yeah, absolutely. Yeah, that's that's very helpful. I mean, like I said, it's it's the biggest thing that we're trying to do is is just kind of grow our team and like I said, just making sure that the right people are on our team uh because especially with our industry as a whole, um it's very important that we do the right kind of work. >> No, you're good. And like you want to like you want to If you're catching for attitude, right, which is what you're looking for, like just just cast the net broad.

10:40Talk to as many people as you can. That's all we're doing here. Talk to as many people as you can, you catch a vibe real quick, move on. >> Yeah. Yeah, no, absolutely. It's very helpful. >> All right. Rock and roll, Corey. Appreciate you. >> All right, brother. >> All right, talk to you All right, see you. >> All right, bye. >> If you like this video and you're business owner who wants to break through your current revenue ceiling, I just distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so, you can click here and you can check it out.

11:12Again, absolutely free. And since you're business owner, I appreciate you and enjoy.