The Boardroom Buzz: Grow, Sell, or Exit

In this week's episode of The Boardroom, hosts Patrick Baldwin and Nick Bartolo are joined by Drew Fenn, President of Fenn Termite & Pest Control in Southern California with a focus on commercial and residential customers. They delve into the critical role of discipline and focus in growing a business. Drew emphasizes the necessity of deeply understanding your business and adhering to your core competencies without getting sidetracked by external influences. Maintaining a sharp focus on profitability and operational efficiency, while staying true to what you do best, sets the foundation for lasting success. How can companies preserve this level of discipline and focus while expanding to new regions?  Drew shares his strategies for nurturing long-term customer relationships, particularly with commercial customers. By maintaining contract flexibility and consistently delivering high-quality service, Fenn Termite & Pest Control built strong trust and loyalty with their clients. Drew emphasizes the importance of clear operational procedures and well-trained staff to navigate uncertain economic periods while effectively and efficiently meeting diverse customer needs. Embracing these challenges transforms short-term engagements into lasting partnerships. What steps can businesses take to ensure their teams are equipped to maintain high service standards and adapt to changing customer needs? Audio mixing and editing by www.verbell.ltd.

Jason Walton, U.S. Senate Candidate in Utah and co-founder and CEO of Moxie Pest Control, joins Patrick Baldwin and Nick Bartolo for an enlightening episode of The Boardroom Buzz. Jason begins by discussing how mentors influenced his success such as Brent Bingham, Jimmy Hale, and the Rollins family. He also stresses that principled living and keeping commitments are key to personal and professional success. Through these experiences, Jason learned that success is about more than financial gain. What personal principles or commitments have guided you to your own definition of success? Walton highlights the importance of truly appreciating the success that comes from hard work. To know the value of success, it must be hard-earned. Reflecting on an encounter with a young Lance Armstrong, Jason comes to know the impact and importance of setting high aspirations and working diligently towards them. His steadfast perseverance and dedication thereby paved the path to substantial achievements in his professional political career. How can reflecting on our encounters with peers and role models inspire us to set higher aspirations in our own pursuits? Audio mixing and editing by www.verbell.ltd.

Mike Houston, the seasoned owner of Sureguard Termite and Pest Services, joins Nick Bartolo and Patrick Baldwin in the Boardroom to share his extensive experience in the pest control industry. Mike's humble beginnings in the industry accelerated into a successful business he exited. Mike took a break from pest control but has built again. He prioritizes maintaining strong customer service and building relationships as foundational to his business strategies, including acquisitions. How might you approach acquisitions on the buy side vs. the sell side? In the interview, Mike Houston detailed his approach to growing his business through multiple strategies. He stressed the importance of not just analyzing acquisitions by looking at the financials but also ensuring a good fit with the existing business model. Mike also highlighted the significance of clear communication and mutual benefits in making acquisitions successful. What strategies does Mike consider essential when evaluating a potential business for acquisition? Audio mixing and editing by www.verbell.ltd.

You can watch Paul’s presentation in its entirety on POTOMAC TV here: https://youtu.be/OiY68KAOIC8?si=UK-Tcq2GA7b1Ec4v In an insightful speech at the AZPPO Great Western Pest Control Conference in March 2024, Paul Giannamore, the industry’s foremost authority on business valuation, shared valuable strategies for growing, managing, and valuing pest control businesses. He emphasized staying focused on core pest control services for better performance and higher valuations. Paul stressed prioritizing cash flow over revenue and building a strong base of recurring revenue to attract private equity firms. Are you focusing on your core services and ensuring a strong cash flow? Paul discussed adapting to market changes, noting a shift from strategic acquirers like Orkin and Terminix to private equity firms that prioritize cash flow stability. He recommended targeting smaller, denser markets for higher gross margins and implementing strategic pricing to keep up with inflation. Do you focus on market density and adjust your pricing strategies to improve margins? Paul underscored the importance of recurring revenue for high gross margins and strong business valuations. He advised managing direct costs to maintain high gross margins and adopting strategic customer acquisition approaches, including direct mail. Paul also recommended bundling services and delivering consistent customer service to retain customers. Are you maximizing recurring revenue and maintaining high gross margins while providing excellent customer service? Audio mixing and editing by www.verbell.ltd.

Today in the Boardroom, Nick Bartolo and Patrick Baldwin sat down with Phil Rinehart. Phil is a practicing attorney and principal at The Law Offices of Phillip Rinehart. Phil is uniquely suited to provide legal advice as he also has a 20+ career in pest control and is currently the owner and CEO of EcoGen. As an attorney, Phil specializes in litigation, consulting, management, entity formation, liability protection, and growth. Phil shares essential tips on safeguarding your business through the right contracts. He emphasizes the importance of well-structured employment contracts, including critical clauses like non-solicit, confidentiality, and liquidated damages. Phil also discusses the necessity of having solid operating and service agreements to ensure comprehensive protection for your business. Do your contracts include these crucial provisions?  The team highlights the need to inform customers about their right to rescind a contract within three days to avoid significant financial risks. Failing to provide proper notice of this right can lead to serious consequences for a business. Are your terms and conditions updated with this clause?  Phil recommends setting up separate business entities for different aspects of a business to ensure extra protection and flexibility. Creating individual LLCs for partners and securing proper insurance coverage can mitigate potential risks. How are you protecting your business operations with separate entities and insurance?  Learn more about Phil and his work at www.philrinehart.com. Audio Mixing and Editing by www.verbell.ltd.

This podcast discusses the benefits of switching to production commission pay for technicians, innovative hiring practices, and the importance of balancing fair compensation with extra benefits to retain top talent in the pest control industry. It also explores the impact of commission-based pay on company culture and profitability, as well as evolving commission structures in sales.

In this episode, we spoke with Caleb Fabry, owner of Town & Country Pest Solutions in Rochester, New York. Caleb discusses the importance of a strong company culture and employee engagement. By using the Culture Index, he aligns team members with roles that fit their unique attributes while enhancing communication. How can utilizing culture tools help to retain team members, create mission alignment, and beat your financial goals? A significant part of Caleb's marketing strategy involves a dedicated in-house team focused on video content and social media. This approach has helped Town & Country Pest Solutions build a strong online presence and engage effectively with customers. How might investing in professional video content and social media marketing benefit your business? Learning from peer business owners has been crucial for Caleb’s success. Joining leadership groups has provided valuable insights and the confidence to implement new ideas. Caleb has embraced the word "yes" when it comes to new opportunities, even outside his comfort zone. Who is pushing you to reach new heights and implement new strategies?

Brian Lunsford, owner and CEO of Bring the Joy Ventures—the parent company of LunsPro Inspections, Kingfish Pest Control, JoyLights, Fix-it Flamingo, and Jacksonville Real Producers—rejoins The Boardroom Buzz to recount his journey as a business leader. After a successful pest control business sale in Atlanta, Brian and his wife Kristin are building synergistic businesses in Jacksonville with less personal risk. How could a liquidity event give you the capital and confidence to build again on your family’s terms?  Mentorship and personal connections are key in any leadership position. Brian proactively sought out experienced individuals to learn from. At Bring the Joy Ventures, it's about collaboration and the abundance mentality over micro-managing and secrecy. How can you start building a network of mentors and peers to support your growth? Brian highlights the need for work-life balance, stressing that while work is important, it shouldn't overshadow family and personal growth. To Brian, family comes first. He encourages leaders to ensure their employees prioritize this balance too. How can you promote a healthier work-life balance within your team yet still exceed your business goals? Audio Mixing and Editing by www.verbell.ltd.

This week in the Boardroom, Paul, Patrick, and Chase discuss building a high-performance business culture by expecting and monitoring mistakes. Transparency is key. When we expect each other to make mistakes and hold each other accountable, we're building a supportive environment. How can your organization see mistakes as growth opportunities? Trust and accountability must be balanced. Trust doesn’t mean avoiding accountability but creating a safe space for improvement. Highlighting mutual respect and accountability, the co-hosts emphasize that no team member is above the team. How can leaders balance trust and accountability effectively? Measuring performance is crucial for growth. It's important to track metrics like close rates to gauge business success. Chase's rigorous tracking system encourages constant feedback, while Paul notes that trust allows candid feedback. What performance metrics drive improvement in your organization? Audio Mixing and Editing by www.verbell.ltd.

Paul, Patrick, Nick Bartolo, and Chase Hazelwood discuss the pivotal role that trust plays within teams. While trust is a cornerstone of effective teamwork, we can't forget the importance of accountability. Building trust is a gradual process built by recognizing and acknowledging when your team excels. How can your team strike a balance between fostering trust and upholding accountability to ensure consistent and high-quality performance? Staff turnover can be beneficial, contrary to popular belief. It may even be healthy to bring on new talent and ideas, pushing both employees and employers toward excellence. What strategies can you implement to leverage staff turnover as a driving force for growth and innovation within your organization? Continuous process improvement serves an important role in driving businesses toward success. Like Chase, you may even use AI tools for developing Standard Operating Procedures (SOPs) and training materials to boost your progress. How can your business harness the power of focused process improvement and the integration of AI tools to achieve growth at a competitive rate? Audio Mixing and Editing by www.verbell.ltd.