The Boardroom Buzz: Grow, Sell, or Exit

Looking to crack the code of success in the wildlife and pest control sectors? Fat Pat and Seth drop some wisdom on why simplicity is the name of the game for top-performing companies. By starting with a single service and gradually adding on more, these businesses maximize profitability and route density. Do you think your company could benefit from simplifying its offerings, or are you tempted to throw everything at the wall and see what sticks? Let's talk recurring revenue. Seth spills the beans on how some savvy companies are ditching annual warranties in favor of monthly subscriptions. Even wildlife companies can implement subscription-based models. Staying laser-focused on building a business, rather than getting distracted by naysayers, is crucial to long-term success—it's all about keeping that cash flow steady and predictable. But here's the million-dollar question: Is your business ready to make the switch to a subscription-based model? What's keeping you from changing your billing structure? When it comes to expanding your operations, Fat Pat and Seth shed light on their "rule of ten": Don't split your company into different departments until you've got a solid team of ten technicians. Efficiency is key when the business is guided by a clear understanding of where the company is heading but it begs the question: How close is your company to hitting that magic number, and what can you do if you're just under Seth and Patrick's rule of ten? Audio Mixing and Editing by www.verbell.ltd 

Uncle Paul is preparing his upcoming presentation at Energy by Pest Daily, happening this weekend in Tampa, Florida. But first, he's answering listener questions by uncovering the secret sauce of setting that initial price point. How does anchoring impact negotiations? How can you take control by making the first offer?  Private equity firms are ditching pest control for the untamed world of wildlife businesses—it's all about the lower acquisition prices. Paul goes in-depth into this potential new frontier for private equity investments. Are you ready to jump into the wildlife platform trend, or are you sticking to the safer waters of traditional investments? A recent Potomac client revamps their company's governance with the game-changing impact of an unbiased board. Now, the question is: would you be willing to surrender to a self-appointed board of directors? Audio Mixing and Editing by www.verbell.ltd

Have you ever felt dwarfed by a competitor's size, wondering, "What am I doing wrong?" Uncle Paul goes solo with a few listener questions in hand, and reminds us that size isn't everything; it's about playing the hand you're dealt. What unique strengths can you leverage in your business? Take it from the expert—ditch the grand goals and focus on small, daily changes. How can your business benefit from implementing small changes? Can skipping the business equivalent of a fast-food binge lead to significant improvements Don't accept the first offer when selling your business. In fact, hear how it ends up with a losing hand. How can the discomfort of asking for more during negotiations potentially lead to a better outcome? Audio Mixing and Editing by www.verbell.ltd

Fat Pat and Uncle Paul kick off the new year at WorkWave's 2024 Beyond Service User Conference and unpack the highlights of Paul's appearance at their panel discussion. "Strategy in 2024" takes center stage. Spoiler alert: it's all about goals and objectives—it just keeps all the wheels turning. But so does showing your commitment to your people. How does sending team members of all levels to user conferences show you're invested? PestPac vs FieldRoutes. Paul and Patrick lay down the lowdown on the types of companies that invest in these platforms. Why do some companies lean towards one or the other? This won't be the last time Paul and Patrick hit the road together this year. Let's see if The Mex earns his invite. Audio Mixing and Editing by www.verbell.ltd

How much time is needed to train a technician to work independently? What strategies encourage technicians to expand their (non-upselling) sales skills, and is it advisable? Fat Pat and Seth delve into these listener questions and more this week. From scaling up clients to promoting from within, they dive into a few different topics. If you were to create one standard operating procedure (SOP) now, what would it be and why? More importantly, is your focus better directed elsewhere? Just like most other answers on The Buzz, it's not necessarily a one-size-fits-all answer. Audio Mixing and Editing by www.verbell.ltd

As CEO, which tasks can and should be outsourced? Better yet, what about replacing yourself? One listener asks if his involvement affects how much the business’s value. Some buyers might like the owner being less hands-on and having a strong team already in charge. What factors influence how the buyers see the level of owner involvement? Are you really the best person for the job? From risk to flexibility to finances, what’s the return on replacing yourself as CEO? Audio Mixing and Editing by www.verbell.ltd

While Uncle Paul is away, Fat Pat and BroSeth tackle subscription billing and collection exceptions. How long should companies should stick to service once a customer gets behind? Customer communication is a tricky wicket. Who gets price hikes and how do you communicate them? While Seth is fielding all the questions this week, let’s get his take on artificial intelligence. But this isn’t an A.I. convo you’ve heard before. Audio Mixing and Editing by www.verbell.ltd

You asked, we answered. More listener questions are on tap for this week’s Buzz. Starting with rate cuts. A rate cut is rumored. How would it impact M&A? Uncle Paul breaks down the signal along with the relationship between rate cuts, debt, and the overall economic environment. Reliability’s best friend, recurring revenue, plays a critical role in a business’s market value. But some things are not worth their risk, especially when considering the timing. What should an owner NOT do when an exit is on the horizon? When is it wise to engage in door-to-door sales, and how should owners balance short-term risks with potential long-term benefits? Before the two head out for travel for the week, Fat Pat sneaks in his own valuation question. Stay tuned to see if Fat Pat survives a day with The Mex in America’s armpit. Audio Mixing and Editing by www.verbell.ltd

Marcus Sheridan, keynote speaker on sales, marketing, and building trust, and author of They Ask You Answer, joins Paul and Patrick in the boardroom in an episode on becoming an industry expert through a customer-centric approach. He emphasizes the need to stand out, be more human, and engage better with customers and addresses concerns about costs. Can businesses truly become the voice of trust by discussing what others in their space might shy away from? Sheridan advocates for the strategic use of digital platforms, suggesting the creation of a 'Learning Center' on websites. This not only positions a company as an industry expert but also aids customers in making informed decisions. Can businesses attract more trust and traffic by openly discussing topics that their competitors avoid? What is the significance of personalization and human interaction in a digital-first business environment? Marcus Sheridan shares his approach of asking unique questions in sales meetings to build connections and highlights the potential of content marketing and inbound sales for entrepreneurial organizations. Can addressing customer questions, leveraging digital platforms, and being more human can generate increased traffic, leads, and sales? Can businesses truly thrive by adopting a strategic approach to content marketing, inbound sales, and customer engagement? Audio Mixing and Editing by www.verbell.ltd

Companies can leverage subordinated debt to access capital without relinquishing ownership. Who has done this in the industry and for what purposes? Fat Pat and Uncle Paul chat through the impact of subordinated debt on financial stability along with its role within the broader capital structure. Are you staring down an opportunity where sub debt makes sense? How do you value a business? Consider the complexity in rising valuations and the unique liquidation potential within the pest control industry. Think about other industries that could benefit from this approach and what the decision-making considerations are for these business owners. Valuing a business for an internal partner buyout differs significantly from valuing it for sale to an external party. What is considered valuable particularly in internal partner buyouts versus sales to external parties? This discrepancy presents a challenge, especially with valuation dynamics. Stay tuned for more details on an upcoming event, and go ahead and pre-register by emailing thebuzz@potomaccompany.com. Audio Mixing and Editing by www.verbell.ltd