January 19, 2024 • 24 mins
Venture with us on a financial odyssey where Nik and I crack the code on staying buoyant in the service industry's sea of unpredictability. We're diving headfirst into real-deal strategies that have steadied our own ships through stormy economic climates. From engineering a six-month financial safety net to the ingenious addition of holiday light installations, we share the secrets that allow us to thrive, not just survive. Our candid conversation promises to equip you with tools for building resilience against the headwinds of inflation and the unpredictability of election years, ensuring your business sails smoothly through even the toughest seasons.
The journey doesn't stop at money management; it extends to the core of entrepreneurial grit. Revisit the roots of marketing mojo with us, from the power of the human voice carrying our brand to new heights, to navigating the corporate labyrinths of LLCs and S-corps. Listen in as we unfold the layers of financial foresight needed when personal life throws a wrench in the works, like unexpected injuries, and how community support becomes the life raft in times of need. This episode isn't just a talk; it's a treasure map for service industry captains determined to chart their course to financial security and business success.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome back to the astro craft, grow, influence and
best podcast.
I am your host.
Seth Mills, joining me today,is your co-host.
Speaker 2 (00:08):
Nick Dawson.
Speaker 1 (00:09):
As always, we're going to just jump on into it.
How are you doing today,brother?
Speaker 2 (00:13):
Man doing good, Doing good Well.
So I got nine and three quarterfingers and 10 toes.
We're doing all right, Yep.
Speaker 1 (00:22):
Yeah, yeah.
I don't know how you can be soeasy about it, but you know what
I mean.
It kind of ties into what we'retalking about today, kind of
down turn and having moneystockpiled for when issues arise
or when seasons pass and workslows down.
So I mean, I don't know aboutyou, I'm not very good at the
(00:43):
saving aspect.
I like to spend my money likeit's going out of style.
Speaker 2 (00:49):
Well, man, me too, me too, trust me.
If it wasn't for me having abusiness partner, I wouldn't
have a.
I wouldn't have no money to myname and be working like nonstop
to be filled in that thing backup.
Speaker 1 (01:04):
Oh, yeah, yeah, no, and see, that's what I'm doing.
Um, but I've got a plan, andthat is a six month plan, and I
will be a okay, I will have adecent, hopefully a decent
amount stockpiled, if not justbe, uh, in a good place.
Speaker 2 (01:23):
You know what I mean Well, I mean, we both work in an
industry where there are heavytimes and then there are slow
times and the really moneymaking season and the not so
money making seasons oh, 100%.
So I think having a stockpile,whether it's for so, that way
you could still make sure thatyou've got money so that you can
(01:47):
still pay people, so you canstill operate your company and
pay for what it owes, thenyou're good, um, and then just
kind of restock back.
That's what I did all last year, because by the time November,
december you know, last year waspretty, a pretty slow year for
(02:07):
us Um, just because it wasn't ashectic as the year prior.
But I usually take from atleast March all the way through
August, september, try to makeas much money as I can.
So that way, when it gets toocold, I've got a stockpile of
money that will push me throughthe rest of the year and then
(02:29):
help me in the event that myyear starts maybe a month later.
Yeah, usually spring break iswhenever it all kicks off for us
.
Speaker 1 (02:37):
See, and we follow pretty much the exact same
timeframe.
Thankfully, I've expanded intoChristmas lights, so we do have
that working for us.
Whenever uh October rollsaround Actually, we start
pushing Christmas lights in July.
Uh, we tend to take a vacation,um over July 4th.
(02:57):
When we get back, uh due likeby July 15th, we're kicking off
campaigns for Christmas lights.
Speaker 2 (03:03):
Yeah.
Speaker 1 (03:04):
Um, six months ahead of time, because we have to get
in front of people.
Um, right now we're going to beinstalling, starting installs
October 15th, damn, potentiallyOctober 1st, before Halloween
and Thanksgiving.
Before Halloween, beforeThanksgiving, we're going to be
installing Christmas lights.
They will obviously have somecustomers with some kickback, um
(03:27):
, and if, if there is anykickback, then we'll just
explain that we will leave thempowered off until, or at least
like kind of show them how toturn back on.
You know what I mean.
Speaker 2 (03:43):
Yeah, well, something like that.
Why wouldn't you have somethingthat you could?
Maybe maybe you get somesnowmen and everything in the
front yard but put like aHalloween costume on them.
Let them get through Halloween?
Actually, that'd be a good idea.
Speaker 1 (03:58):
Yeah, I, uh, whatever .
See, last year we installedsome early but I didn't have as
much kickback as I thought Iwould.
So I mean customers just said,hey, like, let's just leave them
off until last week atThanksgiving or November, which
was Thanksgiving, and that'sexactly what we did.
As far as customers who havereads, I got a kind of but as
(04:23):
far as everything goes, our time, our timeline, follows yours
pretty much on the dot.
March 15th is when windowcleaning, pressure washing,
starts picking back up, whichI'm interested to see this year.
How it reacts.
Have the market reacts becausewe're in an election year.
Yours is pretty much steadyjust because it's it's warranty,
(04:47):
mine.
People actually have to wantthe service to be performed and
can afford service.
With it being an election yearin 2024, with inflation and
everything I'm not gonna usevery Safe for home language a
Very fucked up inflation rightright now in a very fucked up
(05:07):
economy, yeah, I, I just I don'tFor see this year being a very
great one for the serviceindustry.
However, there are things youcan do to change that.
You can chase the workdoorknock, for example.
You can go find people who areimpulsive buyers.
Speaker 2 (05:26):
Oh.
Speaker 1 (05:26):
I could sell a thousand dollars tomorrow.
As a matter of fact, I might gosell a thousand dollars of work
tomorrow Just to prove a pointand film it on tiktok and post
it on tiktok also, if you allwant to see, it's the Astro 150
on tiktok.
Y'all can go see if that videois posted, because I Mean today
is a Wednesday, tomorrow'sThursday, thursday, the thing.
(05:51):
It's like what, the 18thtomorrow or something like that,
right, yeah, and so If y'allwant to go see it, I'll post it
there on like the 19th of Friday, the same date that this
podcast goes live, but uh, yeah,so there's things that you can
do, but I'm interested to seehow the market goes as far as
(06:14):
money and like saving money.
Dude, like I was saying, Ispend money like it's going out
of style.
Speaker 2 (06:20):
No, absolutely.
I mean, I have zero reserve.
Speaker 1 (06:23):
I actually have like a few hundred, but That'll get
you so far, exactly.
Speaker 2 (06:29):
And yeah, I'm curious to see what this year brings to
, because the amount of poolsthat didn't get built last year
and the amount of pools thatprobably won't get built this
year, yep, dude, all my 2020pools, they're out of warranty.
So all of them are out ofwarranty, unless they want some
non warranty service.
So I'll be curious to see howbusy this because I wasn't as
(06:50):
busy as 2022 and I'm curious tosee if it picks up or if it
stays the way that it is thisyear or not.
But if that's the case, thenI'm gonna have to pick up work.
I'm gonna have to go hunt thatwork, yep, and actually Get a
little bit more on top of itthan the warranty side.
Speaker 1 (07:07):
So you just got to make sure to keep that hustle in
mind, keep that, keep that mojojojo, oh yeah, cuz I mean both
of us had to start with a lot ofhustle, so we just got to go
back to our roots because I mean, dude, whenever I first started
, I was out knocking, I was outchasing work, posting everywhere
.
As a matter of fact, I startedposting today.
I'm not afraid to go back towhere I started.
(07:27):
Oh hell no there.
Last year I ran zero dollars inads.
I was a strictly word of mouthand I did just shy of six
figures, yeah, with pressurewashing, a window cleaning alone
.
So but as far as saving I thisyear, that's, that's one of my
big goals.
Business wise is I just I needto put money aside.
(07:51):
I need to start paying myself aset salary, whether I go to an
escort or I stay just an LLC.
There's tax benefits to go intoan escort.
However, there are also tax ornot tax, but there's not very
good benefits.
There are cons to going to anescort, seeing as you can't take
(08:12):
just owner draws out of thecompany.
You can, but it's taxed a lotmore than if you were just an
LLC.
I, everything I make, is mymoney.
With just being an LLC.
I get taxed more but I have alittle bit more freedom with my
money right, but if you don'thave a set for you, you know go
(08:32):
well, shit.
Speaker 2 (08:33):
Why not go spend an extra $200 on these air pods?
You?
Speaker 1 (08:36):
can still set it through that.
You can still set it and stillbe an LLC.
I could have mine auto draft Xamount, say $1,800 a month, and
put it into my personal accountthat that's my spending money.
I could definitely do that.
However, you're right, becauseif you have a company card, it
(08:58):
makes it a hell of a lot easier.
Speaker 2 (09:01):
Well, and it depends on who your tax person is gonna
be.
If you do it through a taxperson or if you do it yourself,
you go and buy something, oryou do take that owner draw that
I found out about.
They go, hey, what was this for?
And you're like I think I wentto fajita jacks.
Well, with who?
(09:21):
Well, with my buddy Seth.
Was it work related?
Yes, okay, why did it cost thismuch?
Usually on a business.
So, like they start asking youquestions, not that it's any of
their damn business, but they'retrying to be as truthful
because they don't want to getin trouble either.
Was this a partner?
Oh, between my partner and thetax lady that she was talking to
(09:41):
?
Yeah, okay, where was this drawfrom?
What was that for?
And if you don't know, youdon't know.
And then they got a, they got tofile it as something see, but
that's not exactly true.
Speaker 1 (09:57):
I are.
That's not true.
Are you an escort or are you anLLC?
I'm an LLC.
That's not true then.
If you're an escort, that'strue.
If you're an LLC, everythingthat's in your business account
is your money.
You don't have to come up with.
If you're trying to take adeduction, sure.
However, if you're just saying,yes, that's a deduction for
(10:19):
food, if you and your partnerswrite out the deductions with
the amounts, they shouldn't,they, they shouldn't and they
won't, the tax person won't getin trouble.
If the IRS audits you, you'llget in trouble, yeah, but the
tax person won't get in trouble.
I've never had my tax personasked me what's this charge for
and why?
No, if it's labeled undercategory food or business dinner
(10:41):
, cool, got it.
We're writing it.
Is that?
So I don't know.
It might be my business partnerthen probably I was gonna say
but yeah, no, 100%.
I completely get that.
As far as man this, this slowdown and work from 2022 or 2021,
(11:08):
when I started my company tonow, my cells have gone up, but
the amount of houses visitedhave gone down Because I and the
only reason my cells have goneup is because I started adding
services.
Speaker 2 (11:22):
Mm-hmm.
Speaker 1 (11:23):
If I was just strictly doing pressure washing,
I would have broke maybe 40,000dollars last year.
You think that, then oh, 100%window cleaning accounting.
Speaker 2 (11:34):
I say that bad.
I kind of space for a second.
I didn't even hear what yousaid 40% of my my.
Speaker 1 (11:40):
If I would have said what I said is if I would have
stayed just pressure washing, Iprobably only would have done
40,000 last year.
I got you.
Pressure washing accounted for,I believe, only 30% of revenue
over the last years, like two,three years.
Once I started adding windowcleaning, that started
(12:02):
accounting for about 40% of myrevenue and now that I'm doing
Christmas lights, that accountsfor the other 30 which the
Christmas lights jumped from thefirst year to the second year.
It jumped from being about 15%of my work to 30.
So I'm interested to see howmuch work it brings me this year
.
Fit jumps up much, much more.
It'll probably be anywherebetween 40 and 50% of my
(12:26):
business revenue this year.
There you go.
Speaker 2 (12:28):
With the downturns.
Speaker 1 (12:28):
We can't hire employees because we don't have.
We're not making enough money.
That's another issue.
I don't know how you feel aboutthe downturn, but that's how I
feel no, I got you.
Speaker 2 (12:49):
I mean, like right now I'm gonna have to come out
of pocket to have somebody comehelp with work, whether it's you
or if it's another warrantystation or if it's whatever
Because it's gonna be a paintrying to get all this work done
because I still got to havemoney coming in.
Oh yeah, and if I don't havemoney coming in, then I'm not
making money, nobody's makingmoney and it's just stagnant.
(13:12):
Yeah, so Thankfully I havemoney set aside to where I can
do that and hire somebody tobring me in more money, but I'm
also not making the same amountas if it was just me, absolutely
so, and Trying to.
It's easy to change that cluecenter.
It's not easy to change out thefan and the igniter and all the
(13:36):
other stuff.
Speaker 1 (13:37):
But as long as you're there, you can point, I can
point and I can go.
Yeah, you need this wrench, youneed this nut driver, you need
even with your one good hand,you can, but you can grab the
wrenches.
Hey here, use this, use this.
I can?
Speaker 2 (13:50):
I can do that and I could probably work with just my
left hand.
Absolutely problem is is whenit comes to lights or certain
other things, I kind of needmore than one hand, yeah, so
that's that's where the struggleis gonna come from.
Oh yeah, but yeah, I think I'mmainly grateful to have that
(14:10):
money set aside for stuff likethat, or if I can even get my
partner out in the field, whichI'll see how well that goes.
She's talked about it, but I'mlike I don't think she's going
to are we talked about the samepartner, my mother, uh-huh yes.
Speaker 1 (14:25):
You're gonna get your .
Your mother is going to go intothe field.
Speaker 2 (14:28):
She, she's talked about it Interesting man it's.
Here's the thing.
It's in her best interest forthe company to run the same way.
Yeah, as I wanted to runabsolutely it's, that's our,
that's, that's my Two-year-oldchild and say her it's.
(14:50):
If she she's like okay, you'redown, as there's stuff that I
can do, even if you just told mehow to do it, absolutely Okay,
well then I'll work with you andwe'll get work done and we'll
do it the way that we need to.
So and even if I have one handand she's got two, I can still
go back and forth Careful shemight listen to this podcast.
Speaker 1 (15:11):
That's, that was my next question.
That was my next question.
Is she gonna be listening tothis podcast, which is perfectly
fine?
Speaker 2 (15:17):
I don't care, I encourage it.
I would say all the same stuffto her too.
Speaker 1 (15:22):
I was just gonna ask because I know that this would
be a question that you you wouldhave for me in that case.
Speaker 2 (15:31):
Do you want her to work in the field with you?
I think, more than anything, itwould be good for her to see
what I do on a daily basis andwhat other things mean.
So I talked to her throughoutthe day.
Would be no different if shewas riding around with me so I
could see where there might be alittle bit of struggle.
But at the same time it helpsme out because it shows her what
(15:52):
I do on a day-to-day basis,because I see what she does on a
day-to-day basis for me.
I don't want no part of it.
Yeah, 100%.
I could probably finagle my waythrough and make it happen, but
she knows too much to where.
Yeah it's, it's all a system atthis point yeah so for her to at
least see and, if not, justchange an actuator.
(16:15):
Or yeah, help me put a newboard in, because I can still
use my thumbs to program a boardor I can install screen logics.
Main thing is gonna be workingon motors and Lights, just
because of the amount of waterthat's involved, I mean you know
, I mean, I have offered.
(16:36):
No, I know wait for the board ofdirectors to.
Yeah, I'll keep you in the loopon that.
One of them is out of town, soInteresting but, yeah, I'll get.
I'll give you more info on that.
Speaker 1 (16:47):
No worries, brother, I know that this is a quick
episode just because of all ofthe things we've got going on
and it's not gonna hit that hitquite to that 23 minute mark
that I like to try to stayaround.
Speaker 2 (16:58):
But Well, I mean, where do you have dad?
What, how, how long do youthink, or how much money do you
think you should have set asideas a small business owner To
keep going, whether you get hurt, whether your hospitalized,
whether whatever, to make surethat trucks, insurance,
everything are paid for?
Speaker 1 (17:19):
as a small business owner, I think you should have
six months Expenses plus 20%.
So if you have a thousanddollars a month going out, you
need to at least save 1200 bucksa month and I this is just a
random like an example At leasthave 1200 dollars a month for
six months saved.
So what is that?
(17:40):
That's a?
It's 7,200 or 7,400, somethinglike that.
What's 200 times six.
I'm only good with it 7,200.
Speaker 2 (17:50):
I'm only good with this if it's got a dollar sign
in front of it anymore, yeah.
Speaker 1 (17:56):
I mean it does have a 72, you're at so $7,200 is what
I would recommend having savedup in an account somewhere,
because if you're out ofbusiness for more than six
months, if you're injured formore than six months or still
recovering Just keep in mind soa rotator cuff surgery, the most
painful surgery in the UnitedStates three months recovery
(18:18):
time with physical therapy Witha knee replacement, two to three
months ankle you break yourankle.
Four to five months, maybe twoto three to get you walking.
So if you're out of business,the whole point I'm going here
(18:40):
with this is, if you're out ofbusiness for more than six
months, the chances of youmaking a full recovery for one
are very, very slim.
And two, you honestly may needto start looking for another job
.
Because if you're out ofbusiness for six months in a
service industry, a serviceheavy industry you're going to
(19:00):
lose clients.
They're going to go to otherservice providers.
You're going to have to startpractically from scratch again,
unless you can figure out how tosell the company to one of your
competitors while you stillhave.
If you think you're going to beout for six months, I think you
should sell your company to acompetitor for a decent amount
of money.
Obviously, don't let them screwyou and, honestly, you have no
(19:23):
intent.
You're not required to tellthem why you're selling.
But if you're in that positionunless obviously it's obvious
why you're I mean you're limpingaround with one leg then yeah,
they're going to know.
But I think that that would bemy advice, and a lot of people
will disagree with us, butthat's how I feel on the subject
(19:46):
.
Speaker 2 (19:46):
Well, and I think, probably taking account for all
your expenses, if you're goingto do you've got going on where
you own or draw and you takecertain amounts of money, you've
got to make sure to supply whatyou need, not just for the
business, but personal.
Speaker 1 (20:02):
Oh, absolutely yeah, and that's why I said expenses,
I didn't just say business.
If you're doing an expense, sayyou have $1,000, I just used
$1,000.
No, no, no, I know.
Speaker 2 (20:14):
To make that.
I'm just.
I wanted to re-clarify thatthat's what you meant.
Speaker 1 (20:17):
Yeah, 100%.
Speaker 2 (20:18):
That might pay for the trucks and the entrances and
everything, but it's not goingto pay for your food.
Speaker 1 (20:24):
It's not going to pay for your groceries, your gas
your whatever.
Light bill yeah.
Speaker 2 (20:30):
I think you should keep everything in mind, because
10 years doing this is thefirst time I've been cornered by
dogs.
I've had other, but I've neverbeen bit.
Yeah, I've never had somethingto the extent of this where it's
at least going to put me outfor three weeks.
Oh, 100%.
It's not a month.
I've never had that happen, sothankfully I've just got money
set aside to make it happen, butif I didn't, I'll do that?
Speaker 1 (20:53):
Oh yeah, it'd be bad.
I for one can attest to that.
Yeah, so I mean, I don't knowwhat.
Did you say a specific numberwhenever you were talking
earlier?
Did you say a specific numberthat you believe that business
owners should save up?
Speaker 2 (21:14):
I don't really have a specific number.
Mine was kind of along thelines of you is, even if you
start get you three months of itExpenses and a savings or
whatever, or worst case scenarioI hate saying this but Even if
you don't believe in creditcards, have a business credit
(21:34):
card with a rather largebusiness credit.
Speaker 1 (21:36):
Yeah, because the business credit.
Here's a little tip foreverybody business credit cards
do not report to they.
They initially when you applyfor.
When they hit your personalcredit, yeah, they do not report
the balances.
So if you have X amount ofbalance on a personal Credit
then those report to yourpersonal credit.
Say, you have a $10,000 creditline on your business credit and
(22:00):
you max it out, it doesn'treport to your personal credit
unless you are delinquent on inthat payment, miss the payment,
just flat-out, stop payingwhatever.
Then it hits but it won't showthe balances.
Speaker 2 (22:13):
Yeah, plus, in the event of an emergency or
something like this, you can putthis on your company and You're
not now having to file for aloan.
Or if you are doing anythinglegal, you're not waiting on
money.
You've got a credit limit.
You've got a set amount ofmoney that you can work through.
Yeah, get you three months.
Have a good business creditcard good to have one, any ways
(22:35):
to build your business credit.
But work your way up to sixmonths.
For me, my expenses are gonnabe different than yours.
Oh yeah different than mine.
Mine are gonna be differentthan the next pool guy or the
next yeah, because I have about3000 a month in expense.
So for you, you talk about thatfor six months, for six months.
Yeah, that's $18,000 to decideso you've got to have that
(22:57):
amount of money, but does thatalso cover you?
Yeah, yeah that's three thousandwould cover business and
personal so keep you $18,000 inthere and, worst-case scenario,
just keep throwing the sameamount of money in there, yep,
and at the end of the year giveyourself a nice little bonus,
but keep 18k in there.
Speaker 1 (23:13):
Yep say you have 45 in there at the end of the year
and I mean but 45 minus 18 islike 20 something 23, something
like that give yourself aboutyou know, it's a nice bonus or
Keep a little extra in there.
Speaker 2 (23:28):
Maybe now you're new, maybe your new tags 25.
Yep, and keep it at 25 and youpay yourself.
Whatever it may be.
Just you have to expect theunexpected.
I didn't expect it and Now Ican't say I'm suffering because
there's people like yourselfthat are willing to help and
make sure things stay afloat.
Speaker 1 (23:46):
But you are suffering mentally and physically.
Speaker 2 (23:49):
Yeah, between everything else, this is at
least more of a piece of minethere, but you got to have
something to keep yourself safe100%, Absolutely well.
Speaker 1 (24:04):
I do appreciate you sharing this and and coming on
here again.
No as always, is love havingyou over here, love having you
on this podcast, and I hope yourhand gets better.
Speaker 2 (24:19):
We'll find out soon enough.
Speaker 1 (24:21):
Oh yeah, well, Thank you guys for tuning in to the
Astrocraft grow, influence,invest podcast.
I'm your host, seth Mills, andjoining me today was your
co-host Nick Dawson.
We hope you have a fantasticweekend and we will see you guys
next Friday.
Peace you.
Welcome back to the astro craft, grow, influence and
best podcast.
I am your host.
Seth Mills, joining me today,is your co-host.
Speaker 2 (00:08):
Nick Dawson.
Speaker 1 (00:09):
As always, we're going to just jump on into it.
How are you doing today,brother?
Speaker 2 (00:13):
Man doing good, Doing good Well.
So I got nine and three quarterfingers and 10 toes.
We're doing all right, Yep.
Speaker 1 (00:22):
Yeah, yeah.
I don't know how you can be soeasy about it, but you know what
I mean.
It kind of ties into what we'retalking about today, kind of
down turn and having moneystockpiled for when issues arise
or when seasons pass and workslows down.
So I mean, I don't know aboutyou, I'm not very good at the
(00:43):
saving aspect.
I like to spend my money likeit's going out of style.
Speaker 2 (00:49):
Well, man, me too, me too, trust me.
If it wasn't for me having abusiness partner, I wouldn't
have a.
I wouldn't have no money to myname and be working like nonstop
to be filled in that thing backup.
Speaker 1 (01:04):
Oh, yeah, yeah, no, and see, that's what I'm doing.
Um, but I've got a plan, andthat is a six month plan, and I
will be a okay, I will have adecent, hopefully a decent
amount stockpiled, if not justbe, uh, in a good place.
Speaker 2 (01:23):
You know what I mean Well, I mean, we both work in an
industry where there are heavytimes and then there are slow
times and the really moneymaking season and the not so
money making seasons oh, 100%.
So I think having a stockpile,whether it's for so, that way
you could still make sure thatyou've got money so that you can
(01:47):
still pay people, so you canstill operate your company and
pay for what it owes, thenyou're good, um, and then just
kind of restock back.
That's what I did all last year, because by the time November,
december you know, last year waspretty, a pretty slow year for
(02:07):
us Um, just because it wasn't ashectic as the year prior.
But I usually take from atleast March all the way through
August, september, try to makeas much money as I can.
So that way, when it gets toocold, I've got a stockpile of
money that will push me throughthe rest of the year and then
(02:29):
help me in the event that myyear starts maybe a month later.
Yeah, usually spring break iswhenever it all kicks off for us
.
Speaker 1 (02:37):
See, and we follow pretty much the exact same
timeframe.
Thankfully, I've expanded intoChristmas lights, so we do have
that working for us.
Whenever uh October rollsaround Actually, we start
pushing Christmas lights in July.
Uh, we tend to take a vacation,um over July 4th.
(02:57):
When we get back, uh due likeby July 15th, we're kicking off
campaigns for Christmas lights.
Speaker 2 (03:03):
Yeah.
Speaker 1 (03:04):
Um, six months ahead of time, because we have to get
in front of people.
Um, right now we're going to beinstalling, starting installs
October 15th, damn, potentiallyOctober 1st, before Halloween
and Thanksgiving.
Before Halloween, beforeThanksgiving, we're going to be
installing Christmas lights.
They will obviously have somecustomers with some kickback, um
(03:27):
, and if, if there is anykickback, then we'll just
explain that we will leave thempowered off until, or at least
like kind of show them how toturn back on.
You know what I mean.
Speaker 2 (03:43):
Yeah, well, something like that.
Why wouldn't you have somethingthat you could?
Maybe maybe you get somesnowmen and everything in the
front yard but put like aHalloween costume on them.
Let them get through Halloween?
Actually, that'd be a good idea.
Speaker 1 (03:58):
Yeah, I, uh, whatever .
See, last year we installedsome early but I didn't have as
much kickback as I thought Iwould.
So I mean customers just said,hey, like, let's just leave them
off until last week atThanksgiving or November, which
was Thanksgiving, and that'sexactly what we did.
As far as customers who havereads, I got a kind of but as
(04:23):
far as everything goes, our time, our timeline, follows yours
pretty much on the dot.
March 15th is when windowcleaning, pressure washing,
starts picking back up, whichI'm interested to see this year.
How it reacts.
Have the market reacts becausewe're in an election year.
Yours is pretty much steadyjust because it's it's warranty,
(04:47):
mine.
People actually have to wantthe service to be performed and
can afford service.
With it being an election yearin 2024, with inflation and
everything I'm not gonna usevery Safe for home language a
Very fucked up inflation rightright now in a very fucked up
(05:07):
economy, yeah, I, I just I don'tFor see this year being a very
great one for the serviceindustry.
However, there are things youcan do to change that.
You can chase the workdoorknock, for example.
You can go find people who areimpulsive buyers.
Speaker 2 (05:26):
Oh.
Speaker 1 (05:26):
I could sell a thousand dollars tomorrow.
As a matter of fact, I might gosell a thousand dollars of work
tomorrow Just to prove a pointand film it on tiktok and post
it on tiktok also, if you allwant to see, it's the Astro 150
on tiktok.
Y'all can go see if that videois posted, because I Mean today
is a Wednesday, tomorrow'sThursday, thursday, the thing.
(05:51):
It's like what, the 18thtomorrow or something like that,
right, yeah, and so If y'allwant to go see it, I'll post it
there on like the 19th of Friday, the same date that this
podcast goes live, but uh, yeah,so there's things that you can
do, but I'm interested to seehow the market goes as far as
(06:14):
money and like saving money.
Dude, like I was saying, Ispend money like it's going out
of style.
Speaker 2 (06:20):
No, absolutely.
I mean, I have zero reserve.
Speaker 1 (06:23):
I actually have like a few hundred, but That'll get
you so far, exactly.
Speaker 2 (06:29):
And yeah, I'm curious to see what this year brings to
, because the amount of poolsthat didn't get built last year
and the amount of pools thatprobably won't get built this
year, yep, dude, all my 2020pools, they're out of warranty.
So all of them are out ofwarranty, unless they want some
non warranty service.
So I'll be curious to see howbusy this because I wasn't as
(06:50):
busy as 2022 and I'm curious tosee if it picks up or if it
stays the way that it is thisyear or not.
But if that's the case, thenI'm gonna have to pick up work.
I'm gonna have to go hunt thatwork, yep, and actually Get a
little bit more on top of itthan the warranty side.
Speaker 1 (07:07):
So you just got to make sure to keep that hustle in
mind, keep that, keep that mojojojo, oh yeah, cuz I mean both
of us had to start with a lot ofhustle, so we just got to go
back to our roots because I mean, dude, whenever I first started
, I was out knocking, I was outchasing work, posting everywhere
.
As a matter of fact, I startedposting today.
I'm not afraid to go back towhere I started.
(07:27):
Oh hell no there.
Last year I ran zero dollars inads.
I was a strictly word of mouthand I did just shy of six
figures, yeah, with pressurewashing, a window cleaning alone
.
So but as far as saving I thisyear, that's, that's one of my
big goals.
Business wise is I just I needto put money aside.
(07:51):
I need to start paying myself aset salary, whether I go to an
escort or I stay just an LLC.
There's tax benefits to go intoan escort.
However, there are also tax ornot tax, but there's not very
good benefits.
There are cons to going to anescort, seeing as you can't take
(08:12):
just owner draws out of thecompany.
You can, but it's taxed a lotmore than if you were just an
LLC.
I, everything I make, is mymoney.
With just being an LLC.
I get taxed more but I have alittle bit more freedom with my
money right, but if you don'thave a set for you, you know go
(08:32):
well, shit.
Speaker 2 (08:33):
Why not go spend an extra $200 on these air pods?
You?
Speaker 1 (08:36):
can still set it through that.
You can still set it and stillbe an LLC.
I could have mine auto draft Xamount, say $1,800 a month, and
put it into my personal accountthat that's my spending money.
I could definitely do that.
However, you're right, becauseif you have a company card, it
(08:58):
makes it a hell of a lot easier.
Speaker 2 (09:01):
Well, and it depends on who your tax person is gonna
be.
If you do it through a taxperson or if you do it yourself,
you go and buy something, oryou do take that owner draw that
I found out about.
They go, hey, what was this for?
And you're like I think I wentto fajita jacks.
Well, with who?
(09:21):
Well, with my buddy Seth.
Was it work related?
Yes, okay, why did it cost thismuch?
Usually on a business.
So, like they start asking youquestions, not that it's any of
their damn business, but they'retrying to be as truthful
because they don't want to getin trouble either.
Was this a partner?
Oh, between my partner and thetax lady that she was talking to
(09:41):
?
Yeah, okay, where was this drawfrom?
What was that for?
And if you don't know, youdon't know.
And then they got a, they got tofile it as something see, but
that's not exactly true.
Speaker 1 (09:57):
I are.
That's not true.
Are you an escort or are you anLLC?
I'm an LLC.
That's not true then.
If you're an escort, that'strue.
If you're an LLC, everythingthat's in your business account
is your money.
You don't have to come up with.
If you're trying to take adeduction, sure.
However, if you're just saying,yes, that's a deduction for
(10:19):
food, if you and your partnerswrite out the deductions with
the amounts, they shouldn't,they, they shouldn't and they
won't, the tax person won't getin trouble.
If the IRS audits you, you'llget in trouble, yeah, but the
tax person won't get in trouble.
I've never had my tax personasked me what's this charge for
and why?
No, if it's labeled undercategory food or business dinner
(10:41):
, cool, got it.
We're writing it.
Is that?
So I don't know.
It might be my business partnerthen probably I was gonna say
but yeah, no, 100%.
I completely get that.
As far as man this, this slowdown and work from 2022 or 2021,
(11:08):
when I started my company tonow, my cells have gone up, but
the amount of houses visitedhave gone down Because I and the
only reason my cells have goneup is because I started adding
services.
Speaker 2 (11:22):
Mm-hmm.
Speaker 1 (11:23):
If I was just strictly doing pressure washing,
I would have broke maybe 40,000dollars last year.
You think that, then oh, 100%window cleaning accounting.
Speaker 2 (11:34):
I say that bad.
I kind of space for a second.
I didn't even hear what yousaid 40% of my my.
Speaker 1 (11:40):
If I would have said what I said is if I would have
stayed just pressure washing, Iprobably only would have done
40,000 last year.
I got you.
Pressure washing accounted for,I believe, only 30% of revenue
over the last years, like two,three years.
Once I started adding windowcleaning, that started
(12:02):
accounting for about 40% of myrevenue and now that I'm doing
Christmas lights, that accountsfor the other 30 which the
Christmas lights jumped from thefirst year to the second year.
It jumped from being about 15%of my work to 30.
So I'm interested to see howmuch work it brings me this year
.
Fit jumps up much, much more.
It'll probably be anywherebetween 40 and 50% of my
(12:26):
business revenue this year.
There you go.
Speaker 2 (12:28):
With the downturns.
Speaker 1 (12:28):
We can't hire employees because we don't have.
We're not making enough money.
That's another issue.
I don't know how you feel aboutthe downturn, but that's how I
feel no, I got you.
Speaker 2 (12:49):
I mean, like right now I'm gonna have to come out
of pocket to have somebody comehelp with work, whether it's you
or if it's another warrantystation or if it's whatever
Because it's gonna be a paintrying to get all this work done
because I still got to havemoney coming in.
Oh yeah, and if I don't havemoney coming in, then I'm not
making money, nobody's makingmoney and it's just stagnant.
(13:12):
Yeah, so Thankfully I havemoney set aside to where I can
do that and hire somebody tobring me in more money, but I'm
also not making the same amountas if it was just me, absolutely
so, and Trying to.
It's easy to change that cluecenter.
It's not easy to change out thefan and the igniter and all the
(13:36):
other stuff.
Speaker 1 (13:37):
But as long as you're there, you can point, I can
point and I can go.
Yeah, you need this wrench, youneed this nut driver, you need
even with your one good hand,you can, but you can grab the
wrenches.
Hey here, use this, use this.
I can?
Speaker 2 (13:50):
I can do that and I could probably work with just my
left hand.
Absolutely problem is is whenit comes to lights or certain
other things, I kind of needmore than one hand, yeah, so
that's that's where the struggleis gonna come from.
Oh yeah, but yeah, I think I'mmainly grateful to have that
(14:10):
money set aside for stuff likethat, or if I can even get my
partner out in the field, whichI'll see how well that goes.
She's talked about it, but I'mlike I don't think she's going
to are we talked about the samepartner, my mother, uh-huh yes.
Speaker 1 (14:25):
You're gonna get your .
Your mother is going to go intothe field.
Speaker 2 (14:28):
She, she's talked about it Interesting man it's.
Here's the thing.
It's in her best interest forthe company to run the same way.
Yeah, as I wanted to runabsolutely it's, that's our,
that's, that's my Two-year-oldchild and say her it's.
(14:50):
If she she's like okay, you'redown, as there's stuff that I
can do, even if you just told mehow to do it, absolutely Okay,
well then I'll work with you andwe'll get work done and we'll
do it the way that we need to.
So and even if I have one handand she's got two, I can still
go back and forth Careful shemight listen to this podcast.
Speaker 1 (15:11):
That's, that was my next question.
That was my next question.
Is she gonna be listening tothis podcast, which is perfectly
fine?
Speaker 2 (15:17):
I don't care, I encourage it.
I would say all the same stuffto her too.
Speaker 1 (15:22):
I was just gonna ask because I know that this would
be a question that you you wouldhave for me in that case.
Speaker 2 (15:31):
Do you want her to work in the field with you?
I think, more than anything, itwould be good for her to see
what I do on a daily basis andwhat other things mean.
So I talked to her throughoutthe day.
Would be no different if shewas riding around with me so I
could see where there might be alittle bit of struggle.
But at the same time it helpsme out because it shows her what
(15:52):
I do on a day-to-day basis,because I see what she does on a
day-to-day basis for me.
I don't want no part of it.
Yeah, 100%.
I could probably finagle my waythrough and make it happen, but
she knows too much to where.
Yeah it's, it's all a system atthis point yeah so for her to at
least see and, if not, justchange an actuator.
(16:15):
Or yeah, help me put a newboard in, because I can still
use my thumbs to program a boardor I can install screen logics.
Main thing is gonna be workingon motors and Lights, just
because of the amount of waterthat's involved, I mean you know
, I mean, I have offered.
(16:36):
No, I know wait for the board ofdirectors to.
Yeah, I'll keep you in the loopon that.
One of them is out of town, soInteresting but, yeah, I'll get.
I'll give you more info on that.
Speaker 1 (16:47):
No worries, brother, I know that this is a quick
episode just because of all ofthe things we've got going on
and it's not gonna hit that hitquite to that 23 minute mark
that I like to try to stayaround.
Speaker 2 (16:58):
But Well, I mean, where do you have dad?
What, how, how long do youthink, or how much money do you
think you should have set asideas a small business owner To
keep going, whether you get hurt, whether your hospitalized,
whether whatever, to make surethat trucks, insurance,
everything are paid for?
Speaker 1 (17:19):
as a small business owner, I think you should have
six months Expenses plus 20%.
So if you have a thousanddollars a month going out, you
need to at least save 1200 bucksa month and I this is just a
random like an example At leasthave 1200 dollars a month for
six months saved.
So what is that?
(17:40):
That's a?
It's 7,200 or 7,400, somethinglike that.
What's 200 times six.
I'm only good with it 7,200.
Speaker 2 (17:50):
I'm only good with this if it's got a dollar sign
in front of it anymore, yeah.
Speaker 1 (17:56):
I mean it does have a 72, you're at so $7,200 is what
I would recommend having savedup in an account somewhere,
because if you're out ofbusiness for more than six
months, if you're injured formore than six months or still
recovering Just keep in mind soa rotator cuff surgery, the most
painful surgery in the UnitedStates three months recovery
(18:18):
time with physical therapy Witha knee replacement, two to three
months ankle you break yourankle.
Four to five months, maybe twoto three to get you walking.
So if you're out of business,the whole point I'm going here
(18:40):
with this is, if you're out ofbusiness for more than six
months, the chances of youmaking a full recovery for one
are very, very slim.
And two, you honestly may needto start looking for another job
.
Because if you're out ofbusiness for six months in a
service industry, a serviceheavy industry you're going to
(19:00):
lose clients.
They're going to go to otherservice providers.
You're going to have to startpractically from scratch again,
unless you can figure out how tosell the company to one of your
competitors while you stillhave.
If you think you're going to beout for six months, I think you
should sell your company to acompetitor for a decent amount
of money.
Obviously, don't let them screwyou and, honestly, you have no
(19:23):
intent.
You're not required to tellthem why you're selling.
But if you're in that positionunless obviously it's obvious
why you're I mean you're limpingaround with one leg then yeah,
they're going to know.
But I think that that would bemy advice, and a lot of people
will disagree with us, butthat's how I feel on the subject
(19:46):
.
Speaker 2 (19:46):
Well, and I think, probably taking account for all
your expenses, if you're goingto do you've got going on where
you own or draw and you takecertain amounts of money, you've
got to make sure to supply whatyou need, not just for the
business, but personal.
Speaker 1 (20:02):
Oh, absolutely yeah, and that's why I said expenses,
I didn't just say business.
If you're doing an expense, sayyou have $1,000, I just used
$1,000.
No, no, no, I know.
Speaker 2 (20:14):
To make that.
I'm just.
I wanted to re-clarify thatthat's what you meant.
Speaker 1 (20:17):
Yeah, 100%.
Speaker 2 (20:18):
That might pay for the trucks and the entrances and
everything, but it's not goingto pay for your food.
Speaker 1 (20:24):
It's not going to pay for your groceries, your gas
your whatever.
Light bill yeah.
Speaker 2 (20:30):
I think you should keep everything in mind, because
10 years doing this is thefirst time I've been cornered by
dogs.
I've had other, but I've neverbeen bit.
Yeah, I've never had somethingto the extent of this where it's
at least going to put me outfor three weeks.
Oh, 100%.
It's not a month.
I've never had that happen, sothankfully I've just got money
set aside to make it happen, butif I didn't, I'll do that?
Speaker 1 (20:53):
Oh yeah, it'd be bad.
I for one can attest to that.
Yeah, so I mean, I don't knowwhat.
Did you say a specific numberwhenever you were talking
earlier?
Did you say a specific numberthat you believe that business
owners should save up?
Speaker 2 (21:14):
I don't really have a specific number.
Mine was kind of along thelines of you is, even if you
start get you three months of itExpenses and a savings or
whatever, or worst case scenarioI hate saying this but Even if
you don't believe in creditcards, have a business credit
(21:34):
card with a rather largebusiness credit.
Speaker 1 (21:36):
Yeah, because the business credit.
Here's a little tip foreverybody business credit cards
do not report to they.
They initially when you applyfor.
When they hit your personalcredit, yeah, they do not report
the balances.
So if you have X amount ofbalance on a personal Credit
then those report to yourpersonal credit.
Say, you have a $10,000 creditline on your business credit and
(22:00):
you max it out, it doesn'treport to your personal credit
unless you are delinquent on inthat payment, miss the payment,
just flat-out, stop payingwhatever.
Then it hits but it won't showthe balances.
Speaker 2 (22:13):
Yeah, plus, in the event of an emergency or
something like this, you can putthis on your company and You're
not now having to file for aloan.
Or if you are doing anythinglegal, you're not waiting on
money.
You've got a credit limit.
You've got a set amount ofmoney that you can work through.
Yeah, get you three months.
Have a good business creditcard good to have one, any ways
(22:35):
to build your business credit.
But work your way up to sixmonths.
For me, my expenses are gonnabe different than yours.
Oh yeah different than mine.
Mine are gonna be differentthan the next pool guy or the
next yeah, because I have about3000 a month in expense.
So for you, you talk about thatfor six months, for six months.
Yeah, that's $18,000 to decideso you've got to have that
(22:57):
amount of money, but does thatalso cover you?
Yeah, yeah that's three thousandwould cover business and
personal so keep you $18,000 inthere and, worst-case scenario,
just keep throwing the sameamount of money in there, yep,
and at the end of the year giveyourself a nice little bonus,
but keep 18k in there.
Speaker 1 (23:13):
Yep say you have 45 in there at the end of the year
and I mean but 45 minus 18 islike 20 something 23, something
like that give yourself aboutyou know, it's a nice bonus or
Keep a little extra in there.
Speaker 2 (23:28):
Maybe now you're new, maybe your new tags 25.
Yep, and keep it at 25 and youpay yourself.
Whatever it may be.
Just you have to expect theunexpected.
I didn't expect it and Now Ican't say I'm suffering because
there's people like yourselfthat are willing to help and
make sure things stay afloat.
Speaker 1 (23:46):
But you are suffering mentally and physically.
Speaker 2 (23:49):
Yeah, between everything else, this is at
least more of a piece of minethere, but you got to have
something to keep yourself safe100%, Absolutely well.
Speaker 1 (24:04):
I do appreciate you sharing this and and coming on
here again.
No as always, is love havingyou over here, love having you
on this podcast, and I hope yourhand gets better.
Speaker 2 (24:19):
We'll find out soon enough.
Speaker 1 (24:21):
Oh yeah, well, Thank you guys for tuning in to the
Astrocraft grow, influence,invest podcast.
I'm your host, seth Mills, andjoining me today was your
co-host Nick Dawson.
We hope you have a fantasticweekend and we will see you guys
next Friday.
Peace you.
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