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Why I Love Home Services

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Hey entrepreneurs,

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Welcome to the Better Business Brief, where I share takeaways from:

• running a business I’m building to sell for millions
• my consulting with business owners building to sell for millions
• tips and tricks you can use to do the same

I’ve been working with a few home services companies lately because I really believe in the space. Home services are things like carpet cleaning, plumbing, electrical contracting, HVAC, pest control, and as the name suggests, any service that is done within the home. This space is booming right now, and I want to share a little bit about why I think this space is great for entrepreneurs at any level.

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There’s tons of reasons why I was attracted to Home Service businesses. Here’s a few of the biggest reasons:

Nothing is actually recession PROOF, but there are some businesses that aren’t heavily affected by them. You never know exactly what’s going to happen with the economy though, so betting on a business like home services that are always going to be needed makes me feel less risky about a potential recession shaking things up too much.

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Plenty of people need home services all the time and literally search online for who can perform them for them. You can either be in the business of capturing demand that already exists, or you can be in the business of creating demand for your service. Make no mistake, there are pros AND cons of both. But personally, I would rather be in the game of capturing demand that already exists if possible, simply because it’s usually easier. When you have to create demand where it didn’t exist, you are in a constant uphill battle of getting people aware of the problem before you can even sell to them.
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One thing I’ve observed about a lot of home services companies is that because they are already getting into someone’s home when they get called out, they often offer a lot of other services besides just their main one. I’ll give you a scenario about why this works: One of my clients that is in the cleaning space was out in the field the other day and got called by someone that had a snake in their air conditioning system that needed to be removed. This was more of a pest control issue, but my client was able to quickly add on this additional service at a cost because he was already in the area, and regularly adding little things like this as they make sense and being equipped to do so compounds over time into a LOT of extra profit. This benefit also brings me to something else…

Because of how well home services stack, as I mentioned before, there is a huge play to be made in the space. I’m always thinking in Mergers & Acquisitions terms when I look at an industry, so one of the reasons I was attracted to this one is that because of the stackability of services, there is a massive play to be made. If you’ve ever seen trucks driving around that offer multiple main home services, like HVAC, plumbing, AND electrical, it’s pretty likely that they started out as a few different companies and merged into one through a series of acquisitions. This is because 3 customer bases are better than 1, and each can sell their services to the customer bases of the other. For someone that is a hungry entrepreneur, this is a massive opportunity to create huge value in the market. There are plenty of efficiencies that can be created simply by consolidating companies like this together.

While Home Services is a great space to look into as an entrepreneur, there is one major thing plaguing the space right now - a labor shortage. There are not enough skilled tradesmen coming into the labor force to staff all of the demand for home services right now, and so a lot of companies in the space struggle to grow beyond the owner themselves. This creates a need to be exceptionally great with people and know how to hire, maintain, and retain, and to create an effective culture. I made a video recently about how I was able to help a client of mine build out a team, so check it out here if you want to learn about the things that go into effective hiring, onboarding, and team maintenance:

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There’s a lot more than this to learn, but these are the key things I’ve found to consider in the space. I hope this has been helpful for you in your journey. If reading this sparked ideas about a play you think you can make in the space, I’d love to talk about it: Grab some time here and we can talk about how I might be able to help.

Be great. Keeping growing and aspiring. And as always: I hope you got something from this.

If you did, share it with a friend who may too, as this is the best way for me to grow it and make this better.

They can even sign up here :)

Happy value-building to all of you!

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See you next time for Better Business Brief,

-Brody