Mike Stone - Growing a $1B+ Painting Company - Ep.217
Apr 2, 2024
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Mike Stone, CEO of CertaPro Painters, talks about the $60B painting industry, their goal to become a $1B+ company, and the fragmented nature of the market. They discuss evolving to hit growth goals, building a unique playbook in home services, and the challenges of competition scaling.
CertaPro Painters aims to be $1B+ company with $2.5B revenue by 2032 in the fragmented $60B industry.
Safety emphasis can lead to discounts on insurance premiums, highlighting the importance of strong safety cultures.
Franchise model enables rapid scalability for CertaPro, with the focus on peer accountability and continuous improvement for franchise owners.
Deep dives
Overview of CertaPro Painters and Growth Goals
CertaPro Painters, the largest painting company in North America, aims to reach a billion-dollar company in the near future and a $2.5 billion revenue company by 2032. Operating within the $60 billion painting industry, marked by modest growth and high fragmentation, CertaPro's distinctive playbook in home services sets it apart from national competitors. CEO Mike Stone discusses the industry's fragmentation, growth drivers, strategies needed to achieve their ambitious goals, and how CertaPro differentiates itself.
Importance of Safety and Innovation for Insurance Discounts
In discussions about reducing insurance rates, a key factor highlighted is safety. Insurance companies value businesses with strong safety cultures and low claim records, offering discounts of up to 10% or more on premiums. Emphasizing safety processes, procedures, and innovation, like telematics for auto insurance, can lead to significant savings and favorable pricing from insurers.
Certapro's Market Position and Growth Strategy
Among painting contractors, CertaPro stands out for its size, owning less than 2% of the market but significantly surpassing competitors in revenue. With a franchise model enabling rapid scalability and limited overhead, CertaPro's expansion into new territories quickly establishes it as a dominant painting contractor. The company's growth strategy involves leveraging franchise owners' abilities, maintaining exclusivity, and continuous innovation to capture more market share.
Challenges and Solutions in Franchisee Growth
As CertaPro grows, franchise owners face challenges like complacency and stagnation in business growth. To overcome these hurdles, clear communication, peer accountability, and a focus on continuous improvement are vital. Facilitated meetings, peer-to-peer learning, and structured goal-sharing sessions help franchise owners identify and tackle growth obstacles, ensuring sustained momentum and success.
Marketing Strategies and Lead Generation for CertaPro
CertaPro implements a targeted marketing approach, focusing heavily on engaging past customers through consistent communication, providing exclusive offers, and promoting seasonal services. Emphasizing lead generation strategies like direct mailers, SEO, and pay-per-click advertising, franchise owners prioritize high-return marketing channels while adapting to seasonal demands. By enhancing customer engagement and aligning marketing efforts with market trends, CertaPro strives to maximize lead generation and maintain business growth.
Innovative Practices and Continuous Improvement in Business Development
To propel business growth and navigate industry challenges, CertaPro fosters a culture of innovation, continuous learning, and peer collaboration. Franchise owners leverage the company's proprietary growth path, involving structured mentorship, financial goal-sharing, and gap alignment discussions. By embracing evolving marketing trends, peer feedback, and strategic investments in business expansion, CertaPro aims to inspire franchise owners to embrace new growth pathways and capitalize on market opportunities.
My guest today is Mike Stone, CEO of CertaPro Painters, the largest painting company in North America structured as a franchise with 370 owners across 500 territories and over $700m in revenue. Their goal is to become a $1B company shortly and a $2.5B revenue company by 2032. The painting industry is a $60B industry growing modestly and is highly fragmented, making this an interesting industry to explore given the lack of similarly-sized national competitors.
Mike and I talk about why the industry is so fragmented, the tailwinds behind the industry, what needs to evolve and grow to hit their growth goals, and how CertaPro builds a differentiated playbook within home services.
Learn more about Alex and Think Like an Owner at https://tlaopodcast.com/
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