John Wilson - Growing the Family Plumbing Business - Ep. 47
Jan 19, 2021
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John Wilson, owner of Wilson Plumbing, shares his journey in growing the family business, hiring and training plumbers, and scaling a home services business. They discuss the nuances of operating in the plumbing industry, the benefits of flat rate pricing, and the debate between real estate and small business for wealth building. They also explore imposter syndrome, monetizing content, and the importance of sharing insights from industry operators.
Focus on strengths and building a portfolio of companies.
Benefits of flat rate pricing in the plumbing business.
Importance of effective leadership and coaching for technicians transitioning to managerial roles.
Deep dives
Transitioning to a Holding Company
The host, Alex Bridgeman, speaks with John Wilson, the owner of Wilson Plumbing, a third-generation family business. Wilson discusses his transition into a holding company role and his desire to build a portfolio of companies. He shares insights on hiring and training new plumbers, the challenges of scaling a home services business, and the importance of focusing on strengths rather than trying to do everything.
The Importance of Flat Rate Pricing
Wilson explains the benefits of using flat rate pricing in his plumbing business. He compares it to time and material pricing, highlighting the misaligned incentives of the latter and the advantages of being able to charge what the services are worth. Flat rate pricing allows for better compensation of technicians, attracting top performers and providing higher wages. It also improves the customer experience by providing transparency and consistent pricing.
Challenges of Technicians Transitioning to Managers
Wilson shares his perspective on technicians transitioning to managerial roles. While technicians may have the desire to become managers, they often lack the necessary skills and experience to excel in that position. Wilson emphasizes the importance of effective leadership and coaching, skills that technicians may not possess. He recommends hiring experienced managers from outside the company or providing comprehensive training to ensure successful transitions.
Lessons Learned from Real Estate Investments
Wilson reflects on his experience with real estate investments and shares his changed perspective on the industry. While he previously believed in the value of real estate as a wealth-building tool, he now sees the challenges and limitations, especially for those starting at the bottom. He suggests that small businesses offer greater potential for growth and return on investment, as they allow for more control, profit reinvestment, and the opportunity to scale.
Building a Portfolio of Companies
Wilson discusses his plans for building a portfolio of companies. He highlights the importance of developing systems and aligning with professionals who can help locate potential acquisitions. He also emphasizes the need for a strong leadership team and effective operators for managing acquired businesses. Wilson shares his excitement for the future and the opportunities to continue growing his portfolio.
My guest on this episode is John Wilson. John purchased his 3rd generation family business, Wilson Plumbing, which was started by his grandfather and has grown it from 4-5 plumbers to 20 and still growing strong. I’ve had guests with just one company and those with a half dozen companies or more. John’s in the middle and we spend some time talking about his evolution into a holding company role and desire to build a portfolio of companies.
We also talk about building his plumbing business, hiring and training new plumbers including how to walk up to a customer’s house, why plumbers often don’t make good managers, and how to scale a home services business. I learned a ton about the nuances of operating in this episode and I hope you take away a few great lessons from John’s experience so far.
I’m also the founder of The Operator’s Handbook, a print publication where small company operators share their insights and ideas for building more effective and profitable companies. Articles focus on process improvement, sales, hiring and training, managing culture, and all responsibilities within operating a small company. If you run a small business and are looking for new ways to grow and improve, subscribe today and join your peers in the endless pursuit of better at theoperatorshandbook.com.
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