Episode Transcript
[00:00:00] Speaker A: Welcome to Create wealth through Franchising.
[00:00:03] Speaker B: I'm your host, Kim Daly.
[00:00:06] Speaker A: Whether you're a CEO, a military vet, a real estate investor, or simply in career transition and ready to take ownership of your future, with each episode, you're going to learn valuable insights and hear inspiring stories from within the franchise industry.
On that note, my guest stories are their own. And as a franchise consultant, I do not make personal brand endorsements or earnings claims, but I do educate, motivate, and inspire dreams.
Now onto the show.
[00:00:44] Speaker B: Welcome back to Create Wealth Through Franchising podcast and Kim Daily tv. In my studio today, all the way from Orlando, Florida, Matt Reardon of Mesquite Keto Hunters. Matt, welcome to the studio of Kim Daly, tv.
[00:01:00] Speaker C: Hey, Kim, it's good to be here.
[00:01:02] Speaker B: It's good to have you here. Now, we could cut to the chase and be like Orlando and mosquitoes. Okay, we know why this guy bought the franchise and we're gonna get to that. But before we get there, Matt, let's take the followers all the way back to what was happening in your life when you decided, I need to do something different. And I think I want to own a franchise.
[00:01:23] Speaker C: I.
Yeah, so I was on the corporate hamster wheel for a number of years. I'm a lawyer by training, so don't hold that against me. I like to say I'm a recovering lawyer, but I practiced corporate law for about 20 years with some brands that probably everybody would recognize. NASCAR, SeaWorld, Push Car Booth. So I was in a really cool.
[00:01:42] Speaker B: Space, super sexy job.
[00:01:44] Speaker C: It was, you know, I traveled all over the world at the end of my career. At Zero and Busch Gardens, I was in charge of development. So I was doing international development and just, you know, kind of got tired of the corporate rat race. I mean, it's a great job, great brands, a lot of fun stuff that I did and stepped off that hamster wheel, so to speak, into helping our family run a business that my mom started about 40 years ago now, did that for a number of years, and we just got an opportunity to exit that business. It was not a franchise business, but we exited and I took another role in an organization doing leadership development, leadership training, really enjoyed it, but also miss kind of having my hands on the steering wheel of my thing, if you will. As I was, you know, looking for an exit there, kind of coming to the end of the time that I knew I was going to be there was kind of a short term assignment. I started kicking tires on a bunch of different franchise concepts, mainly because I had run our Family business.
It was a 40 year old brand and we did really well, but we created everything. And so I started kicking tires on a few different franchises. I call it the cheat code of the franchise. Which, hey, we're going to tell you it still takes hard work. There's still good days and bad days, but we're going to kind of help you get a little bit ahead so you don't have to create all the systems, process and everything else and then you go to work on your business. And that's when I started kicking tires and ultimately landed on what is now pest hunters. Right. So at that time it was mosquito hunters, but pest hunters, mosquito hunters and then humbug holiday lighting as my franchise selection.
[00:03:18] Speaker B: Because it's so obvious how you go from being a corporate attorney to running a mosquito spraying and pest control franchise. So fill in the gaps there so we get why franchising wins. And I love that. Right. A lot of times people who've started businesses or work for that in that entrepreneurial environment are the easiest people to convince of the true value proposition of a franchise. Because if you've ever started a business from scratch, you know how hard it is. There's so many things to do and everything you want to do you have to stop and create.
But here in the franchise, you pay the franchise fee and you're given those tools you're automatically moving from to profitability from day one. Right. So it's just an easier whip. So I totally get that and I 100% agree with that. That's the value proposition. That's the reason to be a franchisepreneur over an entrepreneur. But help us fill in the gap between corporate attorney with big sexy brands and investing in a franchise for pest control.
[00:04:17] Speaker C: You know, for me, I just had some criteria that I made for myself. I went through a process and just literally as not sexy as it sounds, made a list of some things that I was looking for.
I looked at all kinds of different franchises from coffee shops to food service to childcare. I mean, I looked at a bunch of them and where I really landed for me was what does the initial investment look like? What's the capital that I'm going to need to have to get this thing rolling.
I didn't really want a ton of employees. I didn't really want a retail location, you know, a storefront that you had to open up on a regular basis. For me, I wanted what I consider to be an emerging brand where I felt like there was a super established franchise. I don't know them all but I just say they're kind of set in their ways. I like to come up with all kinds of different ideas and change things around a little bit. So I was really, for me, looking for a brand that was willing to engage me as an owner in conversations about, hey, this isn't working for me. What about X? What about changing this? What about doing something a little different?
And pest control, mosquito control, holiday lights was not on the list. Right. It was more a criteria of here's what I want life to kind of look like for me, for my family. What's the flexibility look like? Do I need a huge staff to start out with? Can I start small and build? And that's really how I got to the, you know, mosquito, pest control and then the holiday lighting site.
[00:05:45] Speaker B: Did you work with a consultant, Matt?
[00:05:47] Speaker C: I did. I, I went on a journey with a consultant. I talked to some folks individually, I talked to a few others, but did work through with a consultant who brought some opportunities to me. And once in a while I would say, hey, I saw this opportunity as well, we would work through it. But yeah, I thought it was helpful for me. Cause I had never bought a franchise before.
So you're doing the analysis, asking the questions of the consultant that you can't really ask to the franchise. I mean, you can, but they won't answer it. Right. They're not allowed.
So having that secondary voice to talk to, understanding my personality, understanding how I like to operate, was really helpful in making that ultimate selection.
[00:06:29] Speaker B: You landed on this brand because it had a relatively low investment. It allowed you to build the scale as you go, had that reoccurring revenue with a small team of employees. Those were some of the key characteristics you were looking for.
[00:06:44] Speaker C: Yep, absolutely. Yeah. I like the service based model too, I will say, because our franchise model every three to four week, you know, service based model, that we're going to serve people at their homes. Yeah. So that was a big part of it as well. The reoccurring revenue side.
[00:06:57] Speaker B: Okay, perfect. And what I really love that you said was pointing out that there are franchisors out there that when you're joining them, like in that emerging phase, are more open to future feedback from franchisees than when you're investing in the billion dollar established brands. Right. By then every eye is dotted and every T is crossed and they're like, hey, Matt, you know, we respect that you have an opinion, but we've been doing this a long time and we're good. We don't need your input and not to say anything like that about it because there are some type of investors who that level of I dotting and T crossing is what guarantees them they can be successful. And that works for one personality, but it doesn't work for everybody. And therein lies why. As a candidate or someone who's just thinking about exploring a franchise, it's really hard to go out there on your own and just start talking to franchisors because you have no understanding of the caliber of the franchisor, you have no understanding of their experience in franchise development and support, you have no understanding of the culture. And are they open? Are or aren't they open? If you're the kind of person who wants to be in on that kind of getting feedback. And some franchisors even form franchise advisory councils or FACs where they have a small group of usually the top performing people who've earned right through their actions, the right to get together and provide feedback to the franchisor. And some franchisors don't because some franchisors again already have it so proven and established they don't need the feedback. And so there's an investment out there for every kind of investor. And that's why Kim Daly has a business to help you find the franchisors that align not just to the characteristics, the reoccurring revenue, the low investment, the all those characteristics, but the culture and the people and the level of support that's going to give you the confidence that you need in order to say yes to this dream to own a business. So thank you for bringing that up, Matt. That was really good. Okay, so how long have you been an owner?
[00:09:11] Speaker C: About a year now because I'm just redoing my licenses with some of the things we're doing. So just about a year.
[00:09:16] Speaker B: Okay, so you have your first year under your belt. How did that go?
[00:09:20] Speaker C: Honestly, a little bit of a roller coaster. I'd be, you know, very transparent with owners that like, just because you sign up with the franchise doesn't mean everything's going to roll smoothly. You got the cheat code, right? I got the processing systems and all that. But what really got me over the edge to pick mosquito hunters, pest hunters. And then humbug was actually the humbug lighting side of it. So our business, as you would expect, Florida's not quite as seasonal, but the general business is pest control. Mosquito control, more of a seasonal business. And that was one thing I didn't really want. I wanted a year round operation. So when happiness and the brands presented Me with the humbug holiday lighting side of it and why they were doing that. I went, okay, now we've got something to talk about. For me, because I wanted a year round operation. I didn't want to lay guys off when mosquitoes stopped biting. They don't ever stop biting in Orlando. But you know, people stopped thinking about it in November, December, January.
So for me, I got off to a little bit of a slow start. I was a test case. We called it a mid season rollout with mosquito hunters and pest hunters and it didn't go as quite as well as we wanted it to by all accounts. But then the humbug holiday lighting business kicked in in September, October, November, December, and we crushed it. I mean, so for every stub your toe on mosquito pest control, we did really great in humbug holiday lighting. Totally different than mosquito pest control. My team loved it and what it allowed us to do is we shift gears, we focus on our humbug holiday lighting did really well and it got us ready for, you know, it's April now for the season that's kicking off right now with mosquito hunters and we're starting to see that traction. All the seeds that we planted for the mosquito and the pest control last year are starting to sprout and bloom here in this one with the marketing, with everything that we did. But humbug was fantastic. And that's exactly the reason why I picked this franchise. Because if it did get off to a slow start, one or the other, I had the other business to lean on. And so I love the three in one model that the happiness brands has presented to us in this kind of bundle of pest centers, mosquito hunters and humbug.
[00:11:32] Speaker B: Yeah, it's really good that diversified streams of revenue and just to speak to that a little bit. So when you do invest in that reoccurring model, like when I'm in a consultation with a candidate and I often will ask, you know, do you like the idea of coming to my home and selling me a one time project or reoccurring revenue? And I would say 99% of the people I want reoccurring, right? Because everybody loves that subscription model. But I'm always quick to point out, okay, but think about it, nobody really likes reoccurring revenue in years one, two and maybe even three. Everybody wants that business from years three and on, right? But you've got to be able to grind it out, right? And so that first year under your belt with reoccurring revenue, it's a slow start.
Now you've got maybe 80 or hopefully 90% reoccurring and then you're going to add to that. So the second year gets better. But so that's why oftentimes when I'm building a model for a candidate and they're interested in reoccurring, I say, well, for the sake of exploring, let's cast a wider net and let's also capture some one time projects because it will be fun for you to see, like both businesses can build you $1 million top line, but the one time project could get you there a lot faster. And maybe at the end of the day that just feels a little bit better to your nervous system when you really stop to think about what's most important in the short term, not just the long term. Right. But everybody's going to make it different, you know, right or wrong. There is no right or wrong. It's up to the investor. And that's again, part of using a consultant is to help challenge your thinking so that you can think about all of these factors and not just like pigeonhole yourself in because that's the way it has to be and not think about the consequences of what that could mean in years one, two and three. Oftentimes when people come to me, they want to be able to leave their job as quickly as possible. So they're sort of looking for this bridge that helps them hold onto the job. But build a business and reoccurring revenue is not the fastest way out of corporate America. So that's often the conversation that I'm massaging with people so that they can then go, oh, so if I really want to get out of my job quickly, it might be better for me to first invest in something with a one time product and then come back to Kim daily in a couple of years and add in another business where I have reoccurring revenue. Yes, exactly. So what Matt is so eloquently said is that the one time product of the holiday lighting, which also has a reoccurring aspect to it because people are probably going to use you year over year, but it's a higher ticket. And so that's why it feels a little more instant and it feels a little better to the bottom line. And that money makes us happy. So I love that it not only rounds out your year and your revenue, but it actually help lift that revenue in the first or second year of building that reoccurring revenue.
[00:14:24] Speaker C: Yeah. And I would add what it has done for us is the success in the holiday lighting Business at the end of last year, beginning of this year has actually given us some fuel for the fire for the reoccurring business. Right. So I'm not having to put, you know, a ton of cash back into the business, into the reoccurring revenue.
[00:14:42] Speaker B: Exactly.
[00:14:43] Speaker C: I love that model. You hit the nail on the head there. Reoccurring revenue is not 100% right out of the gate. It's a slow build, it's a good build, but it's a slow build. And then this other product that we have with home holiday lights was that people love Christmas lights and we love them here in Florida too. So we do a lot of houses, a lot of things, but it helped us build for our other brand that we have. For me, the three in one model that was presented here with the brands that we acquired in the Orlando area was very successful and is working for us.
[00:15:13] Speaker A: Hey, Daily Coach fans, if you're loving this episode, please do me a quick favor and leave me a five star rating and a short review. Your feedback fuels my growth and rankings and shows others that this podcast podcast is valuable. Now back to the show.
[00:15:32] Speaker B: As humans, we love like quick gratification.
So building a business, you know, really is a long term, you know, gratifying model. But it's good to have the option for revenue where you get both. You have the long term delayed gratification, but you have some instant gratification up front. That again, it helps to calm your nervous system and keep you in that abundant mindset state, state which is so critical to the long term success of your business. Because the minute that you as the owner start to internalize any feelings of lack, right then you are going to be operating from lack. And then when you operate from lack, you create more reasons to have lack. So that's me being a little bit of the mindset business coach here. But that's by the law of attraction how it works. So this is a really great conversation, not just to explain Matt's story, but for me to offer some little bit of coaching in here as well. Okay, so you've got one year under your belt. So talk to us a little bit about your plans. Did you buy more than one territory? Are you all dialed in on one? And how many trucks are you running now? What are your plans for expansion?
[00:16:38] Speaker C: Yeah, so when I went in, I, I actually bought two territories where my office sits. It was like right on the edge of a territory. And I just said, you know what, I'm going to get two territories. I don't have to worry about it then. Then my plan is that we're actually starting very close. I mean, if you split my territory dead in the middle, the two territories, that's kind of where my office is. And we're starting kind of right there and then building outward from there. So ours, home service business, right. So we're trying to get into people's neighborhoods and houses and all that kind of stuff. But instead of going really, really wide in Orlando with my territory, what I did is I started very small and I just started, you know, pushing numbers for me. I want X number of households that we service in mosquito and pest control. Once we go there, then we'll just expand the ring. I've built it in such a way that we're really, right now we're running one truck with mosquito hunters, pest hunters. I have one technician, I have a salesperson and an office staff that helps me as well.
That's the plan. Right now I know where my number is that if I get to, you know, call it 150 to 200 customers, that's what I'm going to start looking at. Expanding in, buying an additional truck or figuring out how to work out a one truck with two techs that are kind of going from, you know, just work schedules and all that good stuff. That's the plan right now. You know, the happy desk guys know me well enough and gals know me well enough to know that like Orlando's kind of four or five territories, depending on how you look at it. I've looked at them all and I'm like, hey, I'm coming after that one. But not until I get to a place where I'm profitable in the current territories that I have. That's the current plan right now. We'll get there this year. We have a weekly meeting. We got big rocks that we clear we have. I mean, my corporate background kind of jumped in, you know, very quickly with KPIs managing the business.
I had a CEO at one of my companies before that basically said, look, if you can't manage your business on one eight and a half by 11 piece of paper, you're too complicated.
So that's kind of where I landed. Our team sitting right here on my desk every week we have one 8 by 11 piece of paper that everybody from top to bottom goes through with me. And we say, how many leads came in, how many new customers came in, how many cancellations did we have? Those are our biggest KPIs. And then we have a marketing plan that we set at the Beginning of the year that we go through every Monday and say we said we were going to do X number of knocking doors. Did we do it or did we not? And then what are we doing this week? Do we need to adjust? And then it's kind of ready, set, go, and we're off for the week. So that's how we hold ourselves accountable. Our big rocks right now are 100 customers. Right. So work toward that 100 customer goal. We keep that in front of us right now. And then reviews on Google and a couple other things like that that are helping us get exposure out in the market.
[00:19:23] Speaker B: So good. I love the intentionality and everything you just said. So good. Matt, would you define yourself as an executive owner who works on the business, or are you an executive owner who's on it and in it?
[00:19:38] Speaker C: You have to split the brands because I like one more than the other. No, I am not chucking the truck. I know how to do it. I've done the training. I can't do it. I'm definitely an executive owner that works on the business. I'm not in the business, especially in pest control. My team is really great. We will do stuff on the back end, but I'm not out there actually doing the pest control. That was one of the criteria that I had, is I want to work on the business, but not in the business necessarily. I can, but I don't need to. As it relates to holiday lights, it's so much fun, right? So I hung Christmas lights this year, and I had a blast.
No offense to what we're doing right now, but as a corporate, you know, guy, I'm like, I was just tired of zoom calls, and I'm tired of sitting at this desk and, you know, the guys had come back and we're spreading holiday cheer. They would have so much fun. So I got out there and slung Gatorade to my guys and talked to the customers. I did a lot of selling out there. So if the truck was there, we were putting up lights in a neighborhood. All the neighbors are like, you know, what's going on? And I'm like, hey, happy to talk to you about this. So I got out there and did a good bit of it. It was a lot of fun. But I would say that primarily I'm working on the business as opposed to in the business. I've got a really good team and a really good network here in Orlando. So when we need folks to help us, they're ready, willing, and able to do it. Yeah, like, this is just me. I Was actually with the CEO of Mosquito Hunters last night. They were here in Orlando for something. And I was talking to the executive team a little bit, and I just lost one of my technicians. And I was, like, devastated, like, oh, this is. It's business, right? This is what happens. He was awesome. He was with me from the very beginning. And I said, man, I just took my own medicine, but I believe in investing in people. And so this young man, I just invested in him as a person, and I said, hey, buddy, this is what you need to do. He had some issues with his family and things like that. I said, man, you need to fix that, right? Don't worry about me. You need to fix that. And ultimately, he reconciled and moved back to where his family was. And I'm like, I love it for you. I hate it for me. But that's all good, right? And so long, answer to a short question.
For me, I really enjoy investing in people, seeing them fulfill the best intentionality they can to be who God created them to be. And so if this whole thing was because my guy reconciled with his family, I will find another tech. You know, God will bring somebody else in our path, and we'll help them through it. I love teaching my team the business, right? So I've done a lot of business before, so I will sit with them and go, hey, here's why we did what we did. I gave them a discount because of X.
I didn't give this one a discount because of why when we did the pricing. This is what you guys need to understand the bottom line. Here's how much I pay you, here's how much the product cost. Here's what our margin is, but we got to put gas in the van and blah, blah, blah, blah, blah. I'm not as good as you, but I try to do a little bit of coaching with my team so that as we grow, they grow. And I'd love for my team to be franchise owners down the road and hope they take just a little bit from the investment that I'm making into them.
[00:22:39] Speaker B: Oh, man, it's so good. The people who are successful. It's like you just hear it. Are you listeners hearing this? Right? Like he's breathing into his people. I'm smiling from ear to ear how the corporate attorney is out hanging Christmas lights and saying, it is so much fun and spreading good cheer and probably getting more clients because it's the owner of the business demonstrating that he's not too big and high and mighty to, like, hang some Christmas lights and go talk to some customers in the neighborhood, like, you know, it's not like you're going to be doing that forever. You know, you're probably going to get too big at some point and you won't be able to do that because there'll be other things for you to work on, to work on your business. But when you're young and nimble and you just love what you do, it makes it so much fun. I mean, good for you. I definitely have to ask this as we wrap this up. So when you told your family and friends that you were leaving corporate law to go run a franchise, but a pest control and holiday franchise, did they send you to the shrink?
[00:23:41] Speaker C: I got a lot of, huh? Like what? You know, for me, I just said, look, you could probably tell to my personality, I like to talk to people, I like to be around. And I said, look, this may not be my long term thing. And I was very honest with them. I said, look, I'm trying to create legacy wealth for my family. I like having my hands on the steering wheel and being involved in a business.
I don't want to go through the build it from the ground up. I could have done that. There's plenty of other opportunities out there. So I wanted that cheat code with the franchise. And I just said, look, for me, I love to play golf. I can't play golf seven days a week, right? I just need something to do. I'm not going to sit by the pool and do whatever. You know, my family was kind of like, yeah, not surprised, you know, you're going to go do something like this. What it was, you know, I walked through it with them, but I like the ability to, like I said, get my hands on it, get in there. We're providing a really great service to our community. We have a really great team. More than anything, you treat your team well, your customers are going to come along. The best thing that I got from all of our clients, especially in the holiday lighting side, was I'd get notes back or I'd talk to customers and I'd say, you know, how do our guys do, how we do? And they'd say, man, that was the nicest crew of, you know, guys and gals you had out there. They were polite, they were on time, all those things that, like, I mean, I feel like a proud dad, right? Like, work should be fun.
And so I treat my guys and gals super well. And in turn, they treat our customers super well. And that's probably what I like more than anything else. Pest control, whatever Mosquito control, whatever, holiday lights, I don't care. I like the business. We're going to do it well. We're going to do it with excellence. We're going to treat our customers well. But at the end of the day, if we're investing in the people that are working with us and for us, they're going to treat our customers really well, your business is going to grow. And franchising was a nice on ramp for me to be able to step into that path a little quicker than trying to build something from scratch again or going to back to practicing law, which didn't sound any fun.
[00:25:43] Speaker B: What an amazing way to end this story, this interview, so, so well summarized. So Matt, my last question for you then is for those listeners who are out there who are not yet franchisees, who are listening to this because they're waiting, thinking, should I reach out to Kim Daly? Should I start this process? Do I really want to own a business?
What advice do you have for those people right now?
[00:26:07] Speaker C: Well, number one, I'd say call Kim and chat with her because it doesn't cost you anything to get started.
And if you don't take a first step, you're never going to know. So quit kicking the tires. We all see the Facebook ads, we all see the stuff on Instagram like, here's the best franchise. You're not going to know any of that until you start to walk the path. So it doesn't cost you anything but a little time to get started.
For me, do what I did. I mean, I'm not perfect, but it's just simple. Make a list of what you want life to look like. We always talk about 3 year goals, 5 year goals, 10 year goals. If you're in a corporate job right now or you're trying to figure out what your next step is, envision yourself 6 months, 12 months a year from now. What does that look like for you personally? And then walk through it with somebody who has walked a lot of other people through it. That's why I like the franchise consulting model, because they will help you ask the questions that you don't even know to ask. And so as you then walk through it, you're going to get to a point. I mean, I did. You could ask all of our my friends at Happiness, you've done the fdd, you're going to talk to other franchise owners. You're going to get to a point where it's time to jump or not, right? And that's a very scary place to be in. But you're taking that step or making the jump, if you've done the due diligence, you've had a coach like Kim that's alongside you that has walked you through this, you're going to know whether it's right or not. If you don't get started, you're never going to get to that point and you're going to keep going, Well, I could or I should, or I might walk through that door and do the exploration to find out if this thing is right for you. So that's what I'd say in parting Kim, because you're great. You're helping a lot of people get better. And I think that that way, when people are looking at that and they're intentional about what they want and who they're walking the road with, they can make a really good decision that really can change the trajectory of their life in a really positive way.
[00:28:00] Speaker B: It's so good. Winners are just winners. And listen, when you come to Kim daily, we are starting with a goals and dreams worksheet. So it was like Matt knew that that was gonna happen from Kim Daly, but he didn't know. So I love it. I love every single thing you said. It is such a pleasure to meet you today. God bless you as you continue to bless your employees and your customers in Orlando. And, I mean, I would love to follow you and have you back on in five years when you've built an empire.
[00:28:26] Speaker C: That'll be great. It'll be a lot of fun. Kim, thanks so much.
[00:28:29] Speaker B: Oh, thank you so much. Thank you for listening until the end and for those who are out there who may be ready, well, today's your day. Follow the link in the description right now because I can't wait to meet you. And until next time, my name is Kim Daly, and I want to be your daily coach.
[00:28:51] Speaker A: You can find more content just like this on my YouTube channel at KimDaily TV. And if you're inspired to take the next step to explore franchises matched to you, please email me right now at InquireimDaily TV. That's InquireimDaily TV.
