Episode Transcript
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Corey Berrier (00:02):
welcome to the
successful life podcast.
I'm your host, Corey Berrier,and I'm here with my man, Tom
Howard.
What's up, brother?
Hey, how's it going?
Good, man, good to see you.
So, toTom, I'm excited abouthaving this conversation with
you, and really most people I'msure know who you are, but if
you just want to give a quickbio of who you are in the part
(00:23):
you play at ServiceTitan andsome of the companies that you
run, that'd be awesome.
Tom Howard (00:27):
Yeah, I own air
conditioning and plumbing shops
mostly in California, nevada andArizona and one well one in
Australia, and I was an earlyuser of ServiceTitan and
ServiceTitan asked me to go workthere in like 2019.
I started january 2020 and Ijust advise them on things that
(00:52):
we should build and things weshouldn't.
Try to represent thecontractors best I can on what
contractors would want at serverside perfect.
Corey Berrier (01:01):
so you just
written a book called Fetching
Millions, right?
And from what I understand andI apologize, I have not had a
chance we booked this so quickly.
I have not had a chance to readit, but from what I understand,
it's a step-by-step guide onbasically closing deals
effectively.
Is that right?
Tom Howard (01:22):
Yeah, so it's not
really a step-by-step guide.
It's a step-by-step on what wedid on this particular one and
we've closed a lot of them.
I've got another.
I've got a website calledhowarddealscom.
If you go on there, I got anacquisition guide that has like
a bunch of things.
It's free, you just put youremail in and it'll email you the
whole thing and a bunch ofvideos.
(01:42):
Talk like Ken Goodrich aboutthings that he did in
acquisitions and he's really theguy that taught me most of what
I know about doing smallacquisitions in this industry.
I don't typically I'm not a PEguy that goes around buying $100
million and $200 million shopsand go around buying small
things and put them together andtrying to make a strong company
out of it.
So if you're looking for thatstep-by-step guide, that
(02:04):
acquisition guide is there.
But this book is more about onedeal that really the stars
aligned for us.
We did really well.
We went in and we bought a fewcompanies, put them together
that were losing money, turnthem into making money, and then
sold it 16 months later and webought it for basically nothing
(02:27):
and we sold it for a lot.
It was definitely EBITDA wassix million dollars in EBITDA by
the time we finished on thetrailing 12 months and I can't
say because of an NDA, and so Ihad to take it out of the book.
The company that bought us andforced on a DA but it was
(02:48):
websites will tell you thatmultiples were anywhere between
eight and 12 X at the time.
So that's public information,and we were six million EBITDA.
Corey Berrier (02:59):
So you can do the
math on what we sold for Bunch
of money.
That's awesome, dude.
So the biggest thing I thinkthe first place I want to go
today is one of the things thatstuck out when I did a summary
of the book is you talk aboutego in the book a lot and how
ego really doesn't have a placein the sales process, and I 100%
(03:21):
agree with you.
100%, and I 100% agree with you, a hundred percent In fact.
Ego, in my opinion, will kill adeal faster than it will create
a relationship for sure.
So talk to me a little bitabout that.
What made you write about ego?
Tom Howard (03:41):
It's in all things,
it's everything.
It's not only in a sale, in ahome.
But when you're trying to runyour business or you're trying
to acquire a business, let's sayyou're not even acquiring a
business and we've talked, youknow, mentioned a few things
about acquiring.
But let's just say you'retrying to run your business and
you're the owner and you've gota GM or you've got a service
(04:02):
manager that has an idea and youthink that idea is stupid and
you just want to shut it down.
That's hamstringing yourbusiness A lot of times.
You want to take credit foryour business, you want to be
right, all that stuff.
I tell people you got twooptions you can be right or you
can be rich.
You get to pick one, but notboth.
And the reality is that atFetchatech we had an issue where
(04:28):
you know I put it in the book Isaid that team made that
company.
That wasn't like I went inthere and fixed the sales
process and fix this and fixthat.
I had a team that they all gotequity in the business and they
all came in and brought theirparts and they just made things
happen.
I had a team that they all gotequity in the business and they
all came in and brought theirparts and they just made things
happen.
(04:48):
And one of those people was thegeneral manager, who was Dennis
Thompson.
And when I got there thatparticular company Jerry Finney
was owning it and DennisThompson was the GM and Jerry
wanted me to basically get apart of that business to help it
grow.
And I love Dennis.
(05:12):
I looked at it.
I was like man, dennis is agreat GM and but I noticed that
the company's losing money andit's not doing well and I
noticed that a lot of his ideasjust weren't getting implemented
.
I thought maybe Dennis justisn't getting implementing, but
it seems like he is.
It seems like the way he'sdoing it.
He's implementing stuff andit's not sticking.
Like why wouldn't it stick?
And I went in there and foundout that whenever he would
implement something, if Jerry,who used to own it, all the
(05:37):
employees knew him and theywould just call Jerry and
complain to Jerry and Jerrywould say, well, you don't need
to do that, you don't need to dothis, and so then they would
just undermine the GM and thennothing would get done.
And when I finally figured thatout, I called Jerry and told him
the situation and said, youcan't be talking to these people
(06:01):
, like, don't even take theircall.
If they have, like, a safetyconcern or they want to
whistleblow on something andthey think we're doing something
illegal or whatever else, theyhave my phone number, they can
call me, but that's it.
If the GM asks you to dosomething and you don't like the
new CSR process or you don'tlike the new tech process, you
don't like the new dispatchroutine tough, because I think
in a lot of these businesses youhave to put your ego aside and
(06:22):
you have to put the GM in chargeThen the other issue is I can
guarantee you a lot of thesebusinesses, you have to put your
ego aside and you have to putthe GM in charge.
Then the other issue is I canguarantee you, a lot of your
listeners are thinking, well,yeah, but what if he's going to
run into the ground?
Okay, well, I don't let a GMjust do whatever they want.
I tell them hey, you've gotthese boundaries, which is you
can't do anything illegal, youcan't do anything unethical and
(06:45):
and you can't do anything thatinfringes on people's safety,
right.
So, and then, outside of that,you have a target hit.
Here's the gross margin budget,here's the revenue budget.
Here's numbers you have to hit.
Outside of that, it's on you,because what happens is, if you
don't get out of their way atthat point and let them be them
one, they're not going to feellike they own the budget,
(07:05):
because at some point they'regoing to say, oh well, you told
me I couldn't do this.
You took away my.
I want to do this and youwouldn't let me.
So look at this, look thebudget.
We didn't hit the budget.
But if I get out of the way andlet you do whatever you're
going to do and we don't hitbudget, there's one person whose
fault it is and I can go backto them and say, look, you had
clear guidelines, you kneweverything.
(07:27):
You could make any decision youwanted to, and there were some
decisions I didn't agree with,but I let you do them anyway and
it fails, it's on you.
Or hey, you made decisions Ididn't agree with and you
succeeded.
Good for you.
Either way, your bonus is paidbased on whether or not you hit
budget, and if you don't havebudget, that's on you.
(07:50):
I don't if you give him a bonusbased on whether or not he or
she hits budget and then you goin and start messing with things
and your ego gets in the wayand you want to prove that
you're right and everything else.
Now he's not even incentivizedby the incentive because he's
like it doesn't matter anyway.
I'm not in control of whathappens in this company.
The owner is, and that's it.
(08:10):
So ego.
If you're buying a company,selling an air conditioner,
doing whatever or just runningyour existing company, you've
got to put your ego aside andlet the team do what they're
going to do and succeed.
I run, I don't run them.
I own probably eight differentcompanies right now and then I
(08:33):
work full-time at Service Titanas an executive.
I can't do that if I don't havepeople that can run it.
And people come to me andthey're like, oh my gosh, you
must just figure out how to hiregreat people.
I'm hiring from the same pool,you are.
What's the difference betweenhow I can have eight companies
running and you can't?
The difference is I guide them,direct them and get the hell
out of the way and let them getthe credit for the work that
(08:56):
they do, and they're happy to doit at that point.
But I'm going to coach them.
I'm going to say, hey, this iswhat I would do.
That's what I would do.
And they don't want to followit?
Fine, and I'm going to coachthem.
I'm going to say, hey, this iswhat I would do, that's what I
would do.
And they don't want to followit?
Fine, but it's their budget.
Corey Berrier (09:09):
And if they don't
hit it then we might need to
make a change.
So that's it, tom.
It's not an uncommon thing inour industry to hear the owner
and I get it.
It's their baby.
I understand that theirheartstrings are tied to it, but
often I've seen in my time inthe trades which only been about
five years now the owner doeshamstring the team by
(09:35):
interjecting themselves, notallowing the team to do their
job and trying to control everysingle thing.
That goes on.
It's only one dude like.
It's one guy trying to controlall these pieces and wondering
why it's falling apart, butcan't get out of his own way
yeah, it's a constant thing andit just is what it is.
Tom Howard (10:04):
And a lot of times
that owner I get this too.
I hear a lot of owners say well, that guy doesn't think like an
owner, he doesn't think like Ido, he doesn't put in the effort
I do, blah, blah.
As soon as he starts actinglike an owner, I'll start
treating him like one.
And I usually ask them aquestion, because I used to
consult for companies, right andsay, okay, well, this general
(10:26):
manager that you're mad that hedoesn't think like an owner.
Let me ask you something.
This is what I said Do you want, or the service manager, or the
plumbing manager, or thedispatch manager, whatever
Dispatcher man?
They're not showing up andthey're not putting in the extra
time.
They're the dispatch managerand they need to think like an
owner.
And then they'll get there andblah blah.
(10:47):
I'll say, okay, does yourdispatch manager?
Do they get a bonus based oneach month, based on whether or
not the company makes a profitor their department makes a
profit or the department hitstheir numbers?
And that's the thing I don'tlike putting the dispatch
manager giving them incentivebased on whether or not the
(11:08):
company makes a profit.
I like it if the dispatchmanager, let's say the call
center manager, I like to seehow many calls they actually
booked, because that's the thingthey can control.
I try to bonus them all basedon what they can control.
I bonus the plumbing managerbased on the gross margin of the
plumbing department, causethat's what he or she can
control.
Anyway, I said, do you get extrapay based on how their
performances are?
Like, well, no, like an ownerdoes.
(11:30):
Cause an owner, if the companymakes a profit, the owner gets
extra money.
Right, like, yeah, I'm like,but your dispatch manager, your
plumbing manager, they don'tknow.
They see your financials everymonth, see the profits.
No, okay, well, an owner wouldright.
They said, yeah, okay, have yougiven them any training on
(11:53):
those financials, on, like, whatrevenue is, gross cost of sale,
gross margin, overhead, netprofit, anything?
No, okay, well, an owner shouldhave that information, right,
yeah, okay.
So you don't give them theincentive that an owner has, you
don't give them the knowledgethat an owner has, you don't
give them the financials that anowner has.
And then you wonder why they'renot thinking like an owner.
Do you blame them?
(12:15):
You're paying them for theirtime.
When you pay people for theirtime, you get performance, or
sorry.
If you pay people for theirtime, you get performance, or
sorry, you get.
If you pay people for theirtime, you get their time.
They come in, they freaking,punch a clock and they leave.
If you pay people forperformance, you get performance
every time.
(12:36):
And so it's like dude, givethem incentives based on their
performance, give them thebudget, give them everything,
but I can't give them myfinancials.
They'll think I'm making like $2million a year and I'm like bro
, they think you're making 10right now.
Give them the financials.
It'll shock them, right?
They literally think if yousell an air conditioner for 15
(12:59):
grand, that you're pocketinglike 13,000 of it.
Yeah, like every time.
Yeah, like every time.
Yeah, they have no idea thatyou lost money last month.
They have no idea that you'rebarely squeaking by.
Who cares?
My whole company.
If the warehouse guy wants tosee the P&L from last month,
we'll show it to him and we givethem understanding of like.
(13:20):
This is just five things Revenue, cost of sale, gross margin,
overhead, net profit.
Just if you can understandthose five things, you're good.
Revenue, cost of sale, grossmargin, overhead, net profit and
or EBITDA, whatever you want tocall it profit, but anyway,
give them an understanding ofthat.
Then show them I don't care,all the whole company, that's
(13:40):
not anything.
Everyone's afraid.
Like well, what if they show mycompetitors who cares?
I work for Service Titan rightnow.
It's a publicly traded company.
Look at CR Financials the wholefreaking world every three
months.
What does it do for them?
Nothing.
It absolutely benefits themNothing.
You hiding your financials assmall minded, stupid, freaking,
(14:00):
like that's.
Like that's the mentality of afreaking person that stands on
the side of the street sellinglemonade.
That's the level of businessperson you are when you're
afraid to show your freakingfinancials.
I made $6 today.
I don't want anyone to know.
Like, shut up, show yourfinancials, you freaking moron,
and quit pretending like it'ssome kind of thing that like oh,
my competitors can hold this,they'll know stuff.
(14:22):
Who cares if, honestly, if theFetch-A-Tech book, I, my
competitors, get ahold of this,they'll know stuff.
Who cares if, honestly, if theFetch a Tech book, I want to
publish all the financials forthe whole thing, but because of
NDAs and things, I can't.
So when Lee sells, I'm notgoing to sign an NDA on it, I'm
going to publish everything.
I don't care.
Everyone sees it Like itdoesn't matter at all.
Be realistic and show themwhat's going on and say this is
(14:44):
where we're at in our companyand that's it, like it doesn't
matter.
Corey Berrier (14:49):
So it ties back
to where we started, which is
ego.
Whether it's ego that I don'twant you to know that we lost
money, or ego that we're makingtoo much money, or ego that,
whatever it is, but it reallyties back to some form of ego
that's ego as well, because whenpeople are afraid, a lot of
times they're afraid to showtheir financials, because
(15:09):
they're afraid to show that theyreally don't make any money
that's right.
100, yeah, I agree, so all right.
So service titan has a ton ofautomations these days, so would
you say that the automationsare making people lazier or
better?
Tom Howard (15:30):
It just depends.
It depends on who you are.
If you're a lazy person, it'llmake you lazier.
If you're a hard driving person, it'll make you better.
So it's yeah, I I got.
I know multiple friends right.
I know friends that are likereally hard driving, really
ambitious, everything else.
If I gave them a milliondollars they'd turn into two
(15:53):
million.
I have friends and family thatare not hard driving, not
ambitious, and just lazy.
And if I gave them a milliondollars, they'd turn it to zero
in a heartbeat, just being morelazy.
And if I gave them a milliondollars, they'd turn it to zero
in a heartbeat, just being morelazy, like that's just money.
Money makes you more of whateveryou are, and I think technology
can make you more of whateveryou are as well.
(16:14):
So anyway, I think I look atthese service line automations
and that kind of stuff, likesome people, there's nothing
wrong with it Sometimes theyjust want to automate so that
they can just relax more and gosit on a beach.
If I look at Mello Tommy Mello,you give him an automation or
(16:36):
something like that, he's goingto use it to 10x his business
and work harder.
It's just there's justdifferent kinds of people in
this world, and it just dependson who you are.
Corey Berrier (16:43):
Are you seeing
that more folks are coming
around to AI and using moreautomations?
I know that AI has been aroundfor a few years now and there's
a bunch of different ways thatyou can use AI and I just wonder
, like, because technologicallyour industry is fairly behind
(17:04):
the times, or it was behind thetimes with a lot of different
industries, so are you seeingmore people coming around to
this and using it more, and whatare you seeing them using it
for?
Tom Howard (17:17):
Yeah, so with AI, we
talk about this a lot at
Service Titan and what's goingon.
If you come to Pantheon thisyear, it's in September.
I don't know when this podcastis going to air, but they'll be
releasing a lot of stuff that isAI-enabled and has it built in.
The truth is that AI as far asthat term, ai is not going to be
(17:41):
a thing in probably a few years, because the truth is AI is
going to be integrated intoeverything we do and it's not
going to be called Service Titan, ai or whatever.
It's just going to be calledService Titan and AI has to be
built into all of it.
Everything, all yourprogramming, every app you have
(18:03):
on your phone, in the next fiveyears is probably going to have
some piece of AI integrated.
Right now it's early stages ofsoftware, trying to get AI
products built and make themwork.
And the speed development of AIis lightning fast and Vahe made
(18:26):
a good point last year while hewas on stage.
He said at Pantheon he said thespeed of development that you
see today is the slowest it everwill be, because it will always
get faster from here on out.
And it's crazy to watch now andit's crazy to watch.
(19:09):
It's hard right now for someproducts to be.
We use lace ai for some callcenter tracking stuff and at
first we only had it for likesome overflow calls when our
csrs couldn't handle the volume,and that was cool.
But we got it dialed in more,and dialed in more, and dialed
in more until it took severalmonths.
We got to the point where wecould just leave it on all day
and take everything Morning,night, daytime, whatever and we
(19:34):
were supposed to hire like 10CSRs for the summer to get to
volume and we just didn't haveto hire them.
We saw the CSRs we were, butthen we could use our AI agent
to book them and at the time ourbooking agent was named Ashley
and we got two five-star reviewson Google citing how great
(19:56):
Ashley was on the phone.
And it's hilarious becauseAshley's not even human and it
took us a while to get there.
And what's happening is it'sgoing to continue to get better
and easier and easier toimplement.
You're not going to have tospend months and months dialing
it in, like we had to, at least,and so AI is going to become
it's just going to become partof life and All right.
Corey Berrier (20:18):
So you're in
California, right, and you say
that, or you're in multipleStates, but let's just use
california as an example.
So do you think that let's andlet's talk about that the call
center ai?
There's several products outthere.
I'm a, I'm pro ai call centersbecause I believe that I do
believe it's the future.
(20:39):
So do you think it's regional?
Here's what I'm asking.
So the zoom drain that I workat is in a very rural like it's
in a very rural area, and sosomewhere like california, I
would imagine this wouldprobably be a little bit easier
(21:00):
to implement.
So what do you?
What have you seen?
Or have you seen anythingacross the country where this is
done better in certain places,or is it done about the same?
Tom Howard (21:12):
No, it's the same
and it's.
I hear a lot of stuff like inrural areas it's not that big of
a thing and they're freaked outbecause, oh, it won't sound
like my people, they won't knowmy area, blah, blah.
No, AI is getting smarter andsmarter, Just so you know our
call booking rate, the same toAI.
(21:37):
The only reason we're not onServiceTitan's contact center
pro yet is because we signed acontract with same to AI.
But we'll be on contact centerpro, which has all the booking
function, everything else rightin service titan, right in your
call center.
Same day I had a higher callbooking rate than about half of
our csrs.
So and they're answering thecall in the day, at the night,
(21:59):
whatever, doesn't matter.
And so when I've got anoffshore call center as well,
that I'm like I have to look atit and think, okay, we're
keeping them there and that kindof thing for now and especially
because they can handle all theweird use cases.
But right now AI can probablybook 90% of our calls, if we
wanted it to, and they can bookthe entire call.
Then server side and dispatchpro can take over and dispatch
(22:22):
the call and send the guy to thejob site.
So it's literally a completelyautomated booking and everything
and dispatching and you justbypass most of the office.
It's just what it is.
Corey Berrier (22:41):
It's what it is,
yeah, is what it is.
Now what it is, yeah, and Ithink it.
I think it's.
Look, it's no different thanyou call it.
You lose your luggage at theairport.
You got to go through some sortof ai system that's nowhere
near, probably, as smart as whatyou're talking about and
certainly not as intuitive.
So I think it's justtransitioning people from that
(23:02):
human experience and I thinkwhat at least my experience has
been, you're going to get betteranswers.
They're going to be faster,they're going to be more concise
, because you can train the AIto answer literally any question
that you throw at it, justabout.
Tom Howard (23:19):
Just so you know,
this morning well, not this
morning I will tell you thisthis so when I first got into
call booking, we were testing itand we had the agent on the
phone and it was me and aplumber sitting next to me that
spoke Spanish and from adifferent company actually.
And we said, hey, what can wedo?
(23:40):
Now?
They told us that thediagnostic was going to be $99
to get the tech out to the house, to be $99 to get the tech out
to the house.
That was the fee for thecompany.
It was a fake demo, right, butit was trained to negotiate down
to $74 and could not go below$74.
And we said, okay, so we make aphone call to the bot and we
(24:07):
said, hey, our air conditioneris broken, it's not cooling,
whatever.
Can you send someone out?
And says oh yeah, we have a $99diagnostic fee and this is what
we do.
Blah, blah, blah and try tobuild value.
And we said, well, 99 bucks,are you kidding me?
And the guy next to me says areyou going to throw in a Rolex
with that?
For, crying out loud, she saidno, sir, we don't, we don't
(24:27):
available right now.
Blah, blah, blah, really tryingto sell me on it and we were
throwing out like Rolex andweird things and all this stuff
at it that we could and we keptnegotiating down and it finally
got down to $74, right, and wecouldn't obviously get it below
74 bucks and we kept saying, ohmy gosh, like what if could you
(24:49):
come out?
What if we booked out, likethree days out, so you guys have
more time, and whatever, couldyou give me an even cheaper
price or all these things?
And it had no problem speakingto me as a human and it even
totally sounded normal.
Well then, the plumber next tome spoke spanish.
He starts speaking to it andtrying to negotiate in Spanish.
Same call right Immediately,the AI agent switches over to
(25:10):
Spanish and starts negotiating.
And I'm like, and we startedtalking and I started realizing.
At that point I asked thefounder of Same Day AI.
I said, hey, how many languagesdoes this do?
He said it's just Spanish andEnglish right now, but he said
we can load any language in thefuture.
And I started realizing, whenare you going to have a CSR in
(25:37):
the future that speaks 50languages off the top of their
head fluently?
You're not.
The speed and the cost andeverything else is unbelievable,
and if you start thinking abouthow big of a deal this is and
where this is going, you caneither get on the bandwagon now
or you can.
You know you're going to belooking like the person in the
90s that said, yeah, we're justgoing to wait until this
internet fad is over.
(25:58):
And I can't believe people usethis email.
You have to type a name andthen at, and then this weird
stuff Like who's going to useemail, like it's just ridiculous
.
To think about that now and tothink that we're not going to be
using AI voice agents in thefuture is hilarious, like it's
nothing.
Now the question is when do youimplement it in your company?
When is the technology farenough along to make sense?
(26:19):
Well, I'm telling you.
Month by month it goes by.
Ai is developing so fast thatevery six months is like an
eternity.
It's like a lifetime, right?
I watched a demo on a productfor server side this morning
that has AI built in and, asmuch as I'm forward thinking, I
was blown away.
It's being released at Pantheon.
(26:40):
I was literally.
I literally grabbed my chestwhen I saw it.
I couldn't believe and thethings that they were doing and
how they were talking to it,what it was saying and how it
was responding and I was thrownall kinds of questions at it and
I can't go into what it is, butI'm like holy cow and there's
like four or five things thatare releasing at Pantheon that
will just are shocking.
(27:00):
Some of the stuff is just likeblow your mind, awesome, that
you think is 20 years out, butit's really like happening right
now and being released.
And I literally asked theperson.
I said can you do this at leasttoday?
And they said yeah, and sothey're implementing it and then
they'll release it at Pantheon.
Ai is definitely right now.
The little bots that you'reseeing being built and that kind
(27:23):
of stuff is cute, but likebeing built into real products
and being totally interwoven ineverything you do is like
happening right now.
Corey Berrier (27:33):
Yeah, yeah, I'll
tell you one of the things that
I've used it most recently for,and I've done a bunch of
different things with it.
So do you know what I say?
Ai agent.
Do you know what I mean by that?
Yeah, all right.
So there's a company and it'scalled Replit.
(27:54):
I don't know if you've everheard of it, but essentially, I
can go in and tell Replit I wantto build a sales training for
my technicians and I want tocover these certain things, and
then I want to put in.
I just drop in all the servicesthat we offer and I ask it to
give it to me.
In layman's terms, and as I'mdoing all this, it just goes and
(28:17):
it just builds the entire siteand it's got drop-down boxes.
It's got layman's terms.
It's ridiculous, and I can dothat in about a half an hour.
Tom Howard (28:27):
Yeah, just so you
know, when I released my book,
it went to number one in fivecategories on Amazon number one
bestseller in five categories,including entrepreneurship and
service industry, which are bothvery hard to become number one
in Within a week and a half,because that happened a week and
a half later.
There are two books that areused Tom Howard's methods from
(28:50):
fetching millions for blah blahand it's a workbook.
Yeah, and somebody I don't knowwho it was they obviously are
infringing on my copyright andeverything else.
They took my book, dumped itinto ai.
I say make a step-by-stepworkbook out of this and
published it a week and a halflater, published on Amazon live.
Like I don't, it might've beena week, it's something less than
(29:14):
a week and a half, I don't knowwhat it is, but that fast,
right now they have AI thatbasically I can take my entire
CSR manual and all my trainingmanuals at least and dump it
into there and it will makevideos, training videos for
everything in minutes based onwhat's in the manual.
(29:34):
And I'm just.
This is just cute little thingsto start Like.
The way you use Amazon Alexa orGoogle Gemini or whatever in the
future is going to bemind-blowing in what you can do,
and the thing is it's like eventhe service industry, in my
(29:55):
opinion.
I've talked to Vahe beforeabout it and he said Tom, I did,
I drove it.
I got a Tesla 10 years ago andit could pretty much drive
itself on the highway.
At the time he said if you toldme that 10 years from now we'd
still be driving our own cars, Iwould have told you that you're
an idiot he's like.
(30:16):
So the truth is, the technologyhas been there for a long time.
It's taking a while toimplement, and the same thing is
going to happen with ourcompanies.
The technology is there or it'sgetting there right now.
Very quickly, in the next sixmonths, it's going to be
mind-blowing.
Whether or not you implement itis what matters, and that's
(30:37):
going to determine who wins overthe next 10 years.
Do you think it's 10?
Oh, way less.
With AI stuff it's less, but Ican guarantee you people that
aren't implementing anythingwith AI and want to resist it,
in 10 years they will definitelybe out of business.
There's no way.
Corey Berrier (30:54):
It's probably a
lot less than that.
Tom Howard (30:55):
They're definitely
declining in revenue over the
next few years.
Corey Berrier (31:00):
Unequivocally,
without a doubt.
In fact, and I feel bad I say Ifeel bad so many people are
just not trusting, for variousreasons, and a lot of them are
very good reasons the guys thatare not implementing this, they
are going to be out of business,and that really sucks, because
(31:23):
I'm sure there's a lot of greatcompanies out there that would
thrive if they just would opentheir mind a little bit to some
of these things.
Maybe not even all of them, butsome of them, because the
bigger guys that are jumpingonto this maybe not even the
bigger guys they're going tosurpass these smaller guys by
(31:43):
leaps and bounds and it's nuts,absolutely nuts.
So what would you say to theguy maybe listening to this that
just doesn't know where tostart?
What would you tell him tostart?
Tom Howard (31:58):
Well, first thing is
that, especially for the small
guys, this revolution that'shappening right now.
We've had some big revolutionsin history.
The Industrial Revolution was ahuge one.
The AI revolution is going tobe massive, but this is not
about the big guy having theadvantage.
(32:21):
In fact, it's quite theopposite.
During the IndustrialRevolution, you had to invest a
lot of money to build thesefactories and everything else
and whatever.
Ai is the opposite.
It's giving these massive toolsto the guy sitting on his
laptop with an internetconnection in his basement.
You can literally.
The big companies are the onesthat have to worry right now and
(32:43):
have to work harder, and theyhave to implement AI fast
because right now, if they don't, the little guys.
We have website builders.
Now in AI, they can build yourentire website and everything
else in 10 seconds, which usedto take months to build.
Yeah, that's right.
The guy that used to have$50,000 to spend on a website
had a huge advantage over theguy that was trying to like
(33:05):
build his thing on Squarespaceon a weekend at his house.
It just doesn't look that goodand the SEO is not optimized and
everything else.
Now they're on even playingfield.
It doesn't matter if you have50 grand because you can build
something over here.
Now Dan and Tonelli would geton here and say, well, yeah,
we'd like graphic design to bebetter in this and that, sure,
(33:26):
but you've got.
You can go a long way with AI,with working out of your off
your laptop and just makingthings happen.
Like I said, I got two guysthat made two books based off of
mine in a week and a half.
I don't know how long it wouldtake me to make those books and
get them published if I wasn'tusing AI.
And now I'm thinking, gosh, I'mbehind the times.
I should have made workbooksfor my book and I could have at
least validated them and makesure they're real.
(33:47):
Anyway, so I want people toknow this is your opportunity to
move forward.
Go out there, take some classes.
You can buy them online forlike a hundred bucks.
Watch what's available, watchwhat happens, talk to people
(34:08):
that are doing it and getexcited about it.
Get into it.
The first time I made a what doyou call it?
A graphic using AI and chat GPT, I was blown away.
And now that's ages old and nowit's like a nothing thing.
And I used to.
I thought, oh my gosh, I usedto have to pay a graphic
designer thousands and thousandsof dollars to get this, and it
(34:29):
was just a simple thing that Iwanted to put on a slide a
service item presentation, and Iwould have had to call our
graphic design team to dosomething and say we don't have
enough time for your stupiddinky slide, for your one slide
presentation.
And so I just punched it intoChatGPT and bam, it pops out
this amazing.
I was heading up the AustraliaService Titan initiative and it
it's service Titan, it'sAustralia, it's contractors.
(34:51):
So I just told it to have likea kangaroo, dressed up like a
Titan holding a wrench, and itdid and it looks amazing.
It looked like a real kangarooin Australia, all decked out
with like service Titan gear andthe helmet and everything, and
just like I was like this isamazing.
It took 10 seconds and maybe acouple minutes for for AI to
(35:11):
process it and then I put itinto the slide and I'm like you
realize what that would havetaken and now we do so many
things that are far beyond that.
It's only six months.
Like I said, in AI developmentis huge.
So just take the time, investthe resource, invest some time
and a little bit of money I'mtalking like $100, $200 in like
a class and to figure out whatyou got going on and then use it
(35:31):
and go start building.
Corey Berrier (35:33):
Yeah, and I'll
tell you, one of the things that
I found is don't overthink it,like don't overcomplicate the
process of learning about justsomething as simple as ChatGPT.
If you don't know, you can justask it what it is you don't
know and it'll give you theanswers, and then you can load
those answers in and you justkeep iterating.
(35:55):
And I've heard a lot of peoplesay that AI is making us dumber.
I agree with that to a degree,but what I've found is that it
gives me a look into things thatI have no idea about in a
millisecond.
Like I'm not a plumber, I'm nota HVAC technician, but guess
(36:19):
what?
I can answer any question thatyou ask me.
I don't care what it is.
Well here's the thing.
Tom Howard (36:25):
Cars make us fatter,
Fair enough.
I don't have to walk to thestore.
I don't have to walk to allthese places.
I get in a car.
I can be lazy and I'm going togo to the grocery store and pick
up some milk and drive home.
You go to some remote villagein Africa where they got to walk
freaking 20 miles to the wellto pick up some water and bring
(36:45):
it back.
I can tell you that plumbingmakes you fatter.
I can tell you that plumbingmakes you fatter.
I can tell you the car makesyou fatter and all that stuff.
But if I had a trade with thatperson that has to go fetch the
water from the well every day,I'll take the car and the
plumbing every day, Every day.
What technology does is it makeslife easier for us.
That's right.
(37:06):
And we sit here complainingabout technology while and we
complain about it while we're onour phone, posting it on
Facebook and Instagram and thatkind of stuff, and it's
hilarious to me.
And so we could talk about howAI makes us dumber.
But guess what?
I promise you that in the nextcouple of years, you will not
(37:26):
want to live without AI.
There's no freaking chance,because it's going to get better
in technology.
That's the point.
Of technology is to make lifeeasier for people and more
efficient.
So it's going to happen.
Corey Berrier (37:40):
I totally agree
with you.
So one of the things I alwayslike to I enjoy asking people.
We've all been throughstruggles.
I enjoy asking people.
We've all been throughstruggles Mine's been with
alcohol and other substances andwell, really those two things
primarily.
And I don't know if that's apart of your story and I'm not
(38:00):
really asking if it is, but Iwould like to know.
There's been a time when youwere struggling.
There's been a time when maybeyou didn't know if you were
going to make payroll, as asimple example.
Or maybe there was a time whenyou thought the doors were going
to close and it was the 11thhour and you just really didn't
(38:23):
know what to do.
Can you walk me through one ofthose times and tell me a little
bit about that?
Tom Howard (38:28):
I'll put up about my
life a little bit.
I'll just tell you right now.
So when it comes to drugs andalcohol, I've had one alcoholic
beverage in my life and it wason accident.
It was actually while I was inAustralia with some Australian
contractors.
I didn't know that sparklingcider in Australia actually has
alcohol in it and I was like man, this stuff tastes like crap.
(38:49):
It was actually one of thecontractors, brad Hall from Ken
Hall.
He said well, it has alcohol init.
I thought you didn't drink.
I said yeah, and so I've beenfortunate not to have that.
I have no desire to drink.
I've never really had a desire,I've never gotten into it and
I've never had a desire to doany drugs that weren't
(39:10):
prescribed to me by a doctor,and luckily I don't.
I've taken pain pills before,but they don't do anything for
me except reduce pain a littlebit.
So I don't know.
I can't get excited about thateither.
Boring life really, and thereality was I wasn't even
religious most of my life.
So I don't run into thosestruggles and I think you can
avoid a lot of struggles in lifewith just avoiding peer
(39:33):
pressure and other kind of stuffand not doing things just
because other people want you todo it.
But there's some struggles inlife and you mentioned some of
them that I don't care how goodyou are, you're not, you can't
avoid them.
No one took a sip of cancer andgot addicted to it.
Right, that's right.
There's some struggles that webring on ourselves, but a lot of
(39:56):
them that just you're justgoing to have them.
And outside of bodily ailmentslike cancer, whatever, dementia
or all these things that you canget that are no fault of your
own, in business we have a lotof struggles.
(40:17):
That part of becoming a solidbusiness owner is getting
through those struggles.
I remember a a time where I wastalking to the head of my church
(40:38):
in the area and each year I hadwe tried, we were finally
getting wealthier and had some alittle money, and I didn't want
my kids to be spoiled, rotten.
So we limited the amount ofpresents we get our kids for
Christmas and said, okay, thisis it.
It was three things thatthey're allowed to get for
Christmas.
We're not going to go.
When I was young, my parentswould they'd like mortgage their
(41:02):
house to try to just makeChristmas have like a bazillion
presents under the tree, and Ireally agree with that.
So we'd go and we'd say, hey,we want to make it really good
for another family.
We try to pick one family peryear and the bishop tells us the
family name.
And well, I took a name to himand said, hey, this is the
(41:24):
family that I was going to helpDo you know of, do you think
it's a good idea to help them,or do you think someone else in
the ward would in the area,would like to, would need it
more?
And he told me.
He said, tom, you're more thanwelcome to help that family and
that family is struggling.
I said, yeah, and he said, buthe said your struggles made you
(41:51):
who you are and the strugglesthey're going through right now
are going to be for theirbenefit.
So if you want to take awaytheir struggle, it's going to
hurt them.
I have other families that aregoing through struggles right
now that are not going to helpthem and they really need it.
So if it were me, I would go tothese other families that
(42:16):
really they're just destituteand there's nothing.
They just had a massivehardship happen.
It was no fault of their ownand they really just, they just
need help.
And I said, okay, I'll do thatIf you think it's a good idea,
cause he knows the situationthese people, cause they're
coming to him asking for moneyand whatever else.
And so I did and I thought tomyself.
He said, he told me.
He said your struggles made youwho you are and my struggles
(42:37):
made me who I am, and I wouldn'twant to take those struggles
from that family, because heknew the specific situation of
that family that I was talkingabout.
And I think in business, I lookat myself now and there's a lot
of problems that I'm havingright now Lawsuits that are
coming up, employees threateningto do things, employees that
(42:59):
did illegal things that wecaught and had to terminate them
over stuff.
That is just things that wouldcrush me when I was $3 million
in revenue or when I was $1.6million in revenue when I got
the company.
Now we're 100 and that companywill probably do about 150
million in revenue this year.
And if I hadn't gone throughall those struggles when I was
(43:23):
smaller, one at a time, thestruggles that I'm having now
would crush me.
And so I have to look back andthink my gosh, the times I was
afraid that I wouldn't makepayroll, the times, whatever the
times where you know peoplewere threatening me with
lawsuits, whatever.
I literally to this day have notlost a wage and hour lawsuit,
which is huge in California.
I'm probably going to have tosettle one here pretty soon, but
(43:47):
that'll be the first time Ihave to settle one.
But I've got things coming atme right now stacking on my
shoulders.
It's just no big deal and Irealized, gosh, there's plenty
of times where I have had to getthrough it and I've always
gotten through it and thingshave come out Okay.
(44:08):
And the stronger you are andthe more you learn and the more
you spend Investing in yourselfand the more education you get,
and all that stuff makes iteasier to manage these struggles
and it's critical.
It's just part of being abusiness owner.
Corey Berrier (44:24):
So well said.
Yeah, so well said.
I don't think anybody'sanswered it quite like that, but
you're 100% correct.
But I don't even know.
I have looked at it in my ownlife and I know that I wouldn't
be where I am today withoutthose struggles and I wouldn't
have the opportunities that Ihave if I hadn't have gone
through things, and it alsoaffords me the ability to help
(44:46):
other people in the same spotthat I was in, and so that's a
really good.
That was a really good answer.
Yeah, that was spot on and Iagree with you wholeheartedly.
So it's interesting because alot of people feel like, well,
who, if they are struggling andmaybe they're listening to this
right now and they feel like,well, I just need a break.
(45:07):
Sometimes you've got to createyour own break.
Sometimes you just got tobuckle down and you just got to
get your shit together.
Tom Howard (45:15):
Yeah, there's
multiple times where I got.
You know I had huge growthrates.
I had a 40% CAGR, which is acompounded annual growth rate.
Those are average for like 10years.
That just so you know.
Like growing 10% a yearconsistently is pretty darn good
.
Yeah, growing 40% a year isastronomical.
(45:36):
What people don't know is thatsometimes I had years where I
grew 87.
Sometimes I had years where Igrew five percent, ten percent
and sometimes it's just I knewthe company was outgrowing me
and I needed time to get my shittogether, yeah, and get things
right first, before I keptgrowing again.
And One of the best books I readon this is called the messy
(46:05):
middle and it's about the guythat made the company called be
hands that sold to what is itcalled?
I think they sold to Adobe.
And he said look, everyonehears that I started my company
and then I sold it for 180million dollars to Adobe.
And he said look, everyonehears that I started my company
and then I sold it for $180million to Adobe.
He said they think that thatwas like a trajectory I started
it, I went up and I sold it.
(46:26):
He said the reality is youdon't know about the messy
middle, I almost went bankruptseveral times.
I almost didn't make payroll, Ihad people threatening to sue
me, I had all this stuff and Iwas just going through hell for
a long time and then we sold for180 million, and so the messy
middle is all about the messymiddle and all the stuff that
(46:47):
goes wrong and the strugglesthat he had.
Corey Berrier (46:50):
So is your, would
it be?
Well, I won't assume, but myguess is that your faith does
have something to do withgetting through some of those
struggles.
I know it is for me.
Tom Howard (47:01):
Yeah, well, here's
the funny thing is like people
talk about faith a lot andthere's, and they get.
I want to write an article.
I haven't done it yet.
I should just write a book andI call using the F word in the
office the proper use of the Fword in the office and the F
(47:23):
word is really faith Cause, likeyou can't say faith or whatever
in an office setting, but thereality is it's ridiculous
because even if you're notreligious, you need faith every
day to make it through the day.
You wouldn't go out to your carand turn the key on unless you
had faith that there's gas inthe tank.
You don't know that someonedidn't siphon the gas out of
your tank last night.
(47:43):
You don't know that, likesomeone didn't come steal your
gas tank out from under it totry to make some money, you
don't know that, like someonedidn't try to steal your
catalytic converter overnightnothing.
You just got to have faith thatthat there's probably some gas
in the tank.
You don't even you have to havefaith that the phone's going to
ring tomorrow.
You have to have faith likefaith is things hoped for which
(48:04):
are not seen, which are true,right.
So like you got to have faithin these things.
Now, my religion and I'm amember of the church Jesus
Christ Latter-day Saints and myreligions talks a lot about how
to grow faith and that kind ofthing.
So do I bring religion into itin my mind?
(48:24):
Yeah, am I preaching myreligion at my company?
No, I try to live it.
I'll cuss sometimes.
I didn't grow up in my religion, so you just heard me say shit
earlier on the thing.
It's an old, old habits diehard.
But the reality is, when I'msitting here thinking about it,
I take that religiousperspective.
One of the things that we talkabout from the religious side is
(48:46):
that faith is it grows.
Like faith, you can't just wakeup in the morning and decide
I'm going to have faith, right.
Like you can't wake up in themorning and say I'm going to
have faith, that my phone'sgoing to ring today, right,
because the reality is you cansay that, but do you actually
believe it and does it causeaction?
And it's hard because peoplesay and I think this is
(49:08):
important to talk about on thispodcast I had to ask what's the
difference between belief andfaith?
And my buddy that was teachingme the gospel at the time and he
said look, let me ask you aquestion.
He said he told me a story.
He said there's a giant canyonand on one side of the canyon
there's this place where youcould dig up some gemstones, and
(49:30):
on the other side of the canyonis the processing facility.
Now the gemstones immediatelystart to degrade and go bad
within 24 hours.
So you got into the processingfacility with like in a couple
hours to make your money.
So you see this guy and he pullsa tightrope across the canyon
and he takes his wheelbarrow andhe goes across the tightrope.
The canyon's a thousand feetdeep and he goes across this
(49:52):
tightrope way up in the air andhe goes every day.
You watch him do it.
He takes his wheelbarrow across, he digs up the gemstones on
one side, then he runs acrossthat tightrope and dumps them
off on the other side of theprocessing facility and makes
his money.
See him do it every single day.
And he said Tom, do you believethat guy can do it?
Do you believe he can go acrossthat tightrope with a
(50:14):
wheelbarrow?
And I was like, yeah, I do.
He said do you have faith thathe can do it?
And I said I don't know.
Yeah, I guess.
He said, good, get in thewheelbarrow.
And I was like, wow, and that'sthe difference between faith
and belief.
And that happens in businessall the time.
People will say they believethat something can happen.
(50:37):
They know about Phil Falaskiwho sold 19.6 million in sales
last year at my company and Ishow them the numbers and
everything else.
It's real, it's not.
He didn't do it over the phone,he actually in person.
If you do the math, he has tomake like three sales a day at a
26,000 hour average ticket, sixdays a week.
The dude did it Cause sometimeshe works seven days a week.
Sometimes he's got four or fivejobs in a day.
(50:57):
The guy is an animal, he is.
I can't copy what he does.
I would ask well, do youbelieve that can happen?
And they'll say yeah, but then,do they have faith?
Do they have faith to go trainthe salespeople to do the things
that he's telling them to do?
Everything else, usually not.
And the reality is, if you canget your people in your company
(51:19):
to have faith in a process,faith in a procedure, faith in
something that if they do whatyou tell them to do, this is
religion aside.
Religion at this point is outof it.
Religion is faith in God andother things and discussions
about faith in God.
We're talking about faith inyou.
You need to get your people tohave faith in you that if they
might believe what you'retelling them is true, but they
(51:41):
might not have faith to do it,they might not be willing to get
in the wheelbarrow and make ithappen.
So you need to go and say, ohmy gosh, how do I get them to
have faith in this?
Because I can teach them asales procedure, but do they
have faith that it's actuallygoing to work?
If they don't have faith,they're not going to do it.
(52:01):
They're going to sit there andlisten to you yak your jaws for
an hour teaching them that thingand giving them their handouts
explaining it and whatever else,and that thing's going to end
up at the back of the truck witha boot print on it in an hour
and they're going to follow it.
All of us business owners havedone it.
I tried to trade in my salesguys forever and ever, but if
you can get them faith, so thenthat's when I went to the
religious side of it.
I was like cause the religion,at least my religion talks a lot
(52:23):
about how faith grows.
And so what they say is guynamed Alma gives this story.
He said faith is like a seed,and the seed that you plant is
hope.
And if you plant the seed in theground, which is just a hope,
you just gotta give them hopethat it's true, right, like at
first they don't even have abelief yet.
(52:44):
They just gotta hope that theycan make a lot of money in their
sales.
They gotta hope that they canclose at that rate.
They gotta hope that thesethings can happen.
And then you gotta have themnourish it.
They have to decide okay, tonourish it, plant it, water it,
everything else.
If the seed is good, it'll growright.
(53:06):
If you nourish it.
If it's a bad seed, you havehope in something like I don't
know, money's going to fall outof the sky.
Probably a bad seed, it's notgoing to grow.
But if you nourish that hopethat you can make those sales,
you say look, I'm going to workwith you today.
I'm going to, I'm going to sendyou out on one call.
Here's what we're going to do.
I'm going to track it.
I'm going to work with you, I'mgoing to watch what you're
doing.
I'm going to make sure you keepnourishing that seed.
And if that happens, it's goingto grow a little bit and they
say, oh my gosh, I got my it,but now I'm starting to have
(53:36):
faith.
And then they nourish it somemore and then they get more
paychecks and whatever.
And things started happening.
Now it's growing like a plantand what he says is he says at
some point it becomes and growslike a tree and at that point
you have perfect knowledge.
You don't even have to havebelief or faith or whatever.
You know for sure that thiswill happen.
(53:57):
He's like at that point youhave perfect knowledge of
everything.
He's like no, you have perfectknowledge of that one thing.
So go plant the seeds otherplaces and nourish them and see
if you can grow your faith.
They do it for religiouspurposes, but I'm sitting here
thinking about it.
When it comes to business, I'mlike huh and I try not to cross
business and religion, but Ican't use the word faith in
business because they freak outand say, oh, he's trying to
(54:19):
preach religion to me.
No, no, no, I'm just trying toget you to believe in yourself.
I'm trying to get you to havefaith in yourself.
I'm trying to get you to havefaith that you can succeed and
make generational wealth foryour family.
I I want you to have freedom.
Everything else, if I get youto believe in that, it's not
about God or Jesus or anythingelse, it's just about you.
If you want to apply that toreligion, and whatever religion
(54:41):
you're in, I don't care.
Fine, go for it.
But while you're at work today,I need you to believe in our
process.
I need you to have faith in ourprocess.
I need you to have faith thatwe're going to succeed.
That's what I need you to have,and so we're going to work on
that.
Corey Berrier (54:59):
Yeah, so to work
on that.
Yeah, so it's complete sense,makes complete sense.
That was fantastic and I can'tremember who said it.
But if you believe you can, ifyou believe you can't and it
holds true with a lot of thingsright now holds true.
And your boy, bill, is thatwhat he said?
You said bill.
I know that name, I just don'tknow.
Is it bill?
Bill Pulaski, is that what yousaid?
Tom Howard (55:15):
Oh, Phil, Pulaski
Phil yeah, he believes.
Corey Berrier (55:19):
There's no
question about it.
The results are there.
Tom Howard (55:22):
He has perfect
knowledge because he's done it.
He's like, yeah, I can do it.
There's never a question aboutwhether or not he can go sell a
job.
He knows he can.
But he planted the seed of hope, he nourished it, he followed
the programs, he tried them, andthat's the thing is like, when
you're trying to build faith,you've got to put yourself out
there and try it and see if itworks.
And then that seed grows andyou have to sort of have faith
(55:44):
in it and then eventually youhave a perfect knowledge in it
and you're like I know for sureI'm going to go out and close
this deal.
This is how it works.
You don't.
Corey Berrier (55:51):
Well it also.
You've got to be willing tofail, because nobody's perfect.
It doesn't work 100% of thetime.
Now, for him it works prettydamn close to 100% of the time.
But for a lot of things in lifeyou just got to try different
things and different mixtures ofthings.
But at least follow the processthat's laid out, that we've
(56:12):
proven.
That works right.
Works right it's, buteverything gets tweaked a little
bit to to your own personal,your own personal preferences.
But at least start out with theframework that works.
Anyhow, I know we're gettingclose on time.
Tom dude, I really appreciatethis.
All right, just a greatconversation.
My friend, where, where canpeople find you and where can
(56:35):
they find your book?
Tom Howard (56:37):
my friend, where can
people find you and where can
they find your book?
The book is on Amazon calledFetching Millions, and that also
, howardealscom, is the websitewhere you can get information on
me and that kind of stuff, andon Instagram you can do a real
Tom Howard on Instagram isprobably the best place where
you'll see like videos of metalking about it.
We try to post a video everycouple of days and my stories
and that kind of stuff.
Corey Berrier (56:58):
Cool, appreciate
you, my friend.
Tom Howard (57:00):
All right, thank you
so much.
You got it, brother.
Bye See ya.