The Brutal Truth Behind this Landscaping Business...
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- Опубликовано: 8 фев 2025
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We’re all talking about the pricing, the owners workload etc… but I think the next biggest issue is a serious leadership / culture issue. There are clues throughout: lack of uniforms, lack of career progression (there’s no manager / foreman role to get promoted to), employees taking note that the owner is paying off his house & new truck while biz struggles, fighting amongst workers. I feel for the owner because a culture issue is the toughest problem to overcome.
I've been enjoying your other content for sure but also missing turnarounds the past few weeks. Looking forward to watching this one now! EDIT: Interestingly enough, this gentleman and his business was featured on Brian's Lawn Maintenance a year and a half ago for a shop tour video. Lots of talk about all the equipment and how much revenue is being made, but a good example of the fact that it is much easier to look like the business is firing on all cylinders than actually have that be the case.
Love seeing my favorite RUclipsrs interact with each other! Very excited to watch your first run with the new compactor!
@@thunderusnight I have to wake up early tomorrow to finish the voiceover! :D
"it is much easier to look like the business is firing on all cylinders than actually have that be the case" this is such a common problem with business owners. they care way too much about the image of having a successful business than actually having a successful business. whether its for the approval of others or for the false sense of self gratification.
You have to take those shop tours with a grain of salt. I’ve seen so many where it’s this person has a bunch of accounts but then you see that they have brand new equipment that cost a lot more then the revenue that they are generating. It’s cool to have a bunch of accounts and a bunch of cool equipment but if you’re leveraged to the gills, how is that impressive?
Underrated comment for sure perfectly sums up the situation
I really hope we get to hear back from him at somepoint and find out what happened. Hopefully he was able to show everyone what was going on and get it figured out! Great work Mike and don't let this discourage you from the countless other turnarounds you have done that have helped so many business owners. 1 "Bad Ending" doesn't take away from all the good ones!
🙏🏼🙏🏼
Massive value in the episode. Current and aspiring business owners, pay attention. Big gold nuggets here…..especially relating to debt.
I’m floored at the courage this guy has. To be able to admit there is an issue, ask for help and admit that he doesn’t have it all figured out is a very hard thing to do.
Good for you Alex and I’m rooting for you from down in kc!
Proverbs 16:9 is a verse I lean on big time when things just aren’t going right.
💯
Looked that up of course. 🤗 Amen.
✝️ 🏃 🛐
Hi Mike. I want to encourage you. Good job in the help you are trying to provide for other people. I hope that Alex will reach out, and the state of his company improves. After watching EVERY single turnaround episode, this was the toughest for even me to sit through. I cannot imagen the feeling you felt when Alex's employees acted the way they did. You've probably seen this many times, but kudos to you. DON'T give up!!
This is an absolute masterpiece.
Tons of value here.
This man has a ton of stress, but he is gonna crush it as long as he can take Mike Andes advice and implement.
You can't run a company on "God will provide".
4th times a charm
Can't wait to catch up on Mike's videos, being 17 in this business it definitely helps to learn from others mistakes and what not to do
I really appreciate your team making these videos and the business being open to being recorded.
A lot can be taking out of them cause it’s just not someone talking but by sharing real experiences and applying potential situations to improve is extremely helpful and encouraging.
Thank you.
Glad it is helpful! thanks for watching!
It's great to see an under-the-hood part 2, if you will, on this from our first interview/shop tour with Alex. A candid look showed a lot of excitement and equipment, but also a LOT of work that had to be done on the back end to stabilize the business. Grugan has his heart in the right place, I'm hoping he can get the financials to where they need to be as well. Great video both Mike and Alex.
It shocks me how Bryan’s lawn maintenance did an interview with this guy with Christmas lights. It shows how it might business might look pretty & shiny from the outside but can look awful from the inside. I do like the honesty of trying to avoid debt if possible & if you can’t avoid it, use it wisely! Amen.
Our tours are related to equipment and shop setups, my friend. I can't get into the weeds with everyone's financials, I just don't have the bandwidth for that. It's cool seeing Mike do an under-the-hood look at the business's financials, though. Both have a place on RUclips, for sure.
That just goes to show you that not everything that shines is a treasure. Unfortunately this is what social media has created.
Man that’s crazy. I really am considering doing one of these submissions. I appreciate you showing this one. I should have submitted one we are not to far away from where you were. I always appreciate your content and the fact you posted this with the way it ended.
358 veiws and only 4 comments before me. COME ON PEOPLE! We need to show this some more love!
Hahaha I appreciate the love! 😃
@MikeAndes with all of the knowledge you have that helps so many of us, it's OUR pleasure Mike. Hopefully one day when I get my pressure washing business started I can bring you out to see what you helped me build with your videos. We appreciate you more than you know.
Another great video showing the realities of running a business. thanks again for the great content Mike! You guys are crushing it with this content!
Hey funny story he downsized the company and let me go unfortunately. I was the sleeveless guy.
Did he fire you just for down size or give another reason?
Aye whattup Chris
I was there for 4 years and was told to lower my pay below the people that just started. I held my tongue in this video.
@@aaronandvicky7652he told me to take a 3 dollar an hour cut or leave
@aaronandvicky7652 he said he needed to start saving money but wouldn't cut the guy making 5 more than me any lol. I mean i won't lie i did quit at the beginning of the year because of him skipping paydays, but then they asked for me back until then. All in all he was doomed from the start and I hate that all my hard work went to this. Sorry for the late response, I wasn't sure if I wanted to speak out on that. 😅
I appreciate the candor at the end. I hope he's able to get the business(es) back on track.
🙏🏼🙏🏼
I think this company is the first turnaround I've seen that's actually a lost cause. This was a frustrating one to watch. 1.6 million dollars in revenue is not a flex in this scenario. I believe that anyone can do that with 12 people working and so much money invested in equipment. Alex did not seem to understand the gravity of the situation his business is in. Again, I hate to say it but I would be extremely impressed if this company was able to make a comeback.
I’m sorry Mike you couldn’t go all way to finish the turnaround but it was still interesting how much chaos was going on probably one of my most favorite episodes from how real everything is
This was a good watch, definitely had me hooked and sitting in my car for an extra 20 minutes watching. Keep up the good work!
Super value videos! about to relocate out of state and having to start over. These videos are great reminders how to start and how to start WELL. thanks for the videos Mike!
Thanks for watching! 💛🙏🏼
Debt destroys so many businesses
A lack of sales destroys businesses.
@@glyntaylorwilliams yeah but he's been doing 1.5 million. I mean that's like a lot. I mean how much more sales can you do?
@@glyntaylorwilliams both can be true but the problem with your statement is that sales doesnt solve the problem. in fact it is what causes the problem. why? because the prospect of potential growth is what is used to justify taking on more overhead but when that growth doesnt come you are left in a worse position than if you wait for that growth first. for example, you dont go and take out a loan on an excavator on the assumption that you will be able to use it enough to justify the cost. you rent an excavator as needed until you can consistently supply work where an excavator is needed.
so yes, a lack of sales is stagnation and stagnation is decline but in the case of taking on more debt than you can afford the problem does not lay with simply not selling enough. the problem with too much debt can be true no matter how much sales are up.
Amen!!!!!@@glyntaylorwilliams
Taxes destroys businesses....accept if you are a illegal.
This one definitely hits hard. It's always sad when people have to be let go. The culture of a company has got to be the most important system to have in place. Everyone needs to get along and know their place when they walk on the job. The same can be said for the owner/manager, they have their role to play and jobs to do as well. I just started my pest control business last year and it's growing a little bit every day. Struggling to do it all and keep getting leads mostly because of cash flow. Not able to afford paid adds yet, so I need to get out and do more canvasing. Still so excited every day to do what I do. I want it to grow and provide jobs to my community. I really enjoy these videos, and they are educational for anyone in the service industry business. Even though you didn't get the video result you wanted mike, it's still a great lesson and very valuable to viewers. I have recently become a fan and play a lot of your videos in the background while I work on the computer. I can honestly say your videos and free information has already helped me grow my business, so thank you!
i’ve seen some of your shorts before but this is the first full video of yours i’ve seen. incredible content mike.
I appreciate that! Thanks for watching
I'm working at a $44 million a year company. Our CEO did a pivot and hired 20 more sales guys. We lost money the first few months paying payroll for those guys but now we are really taking off.
Man, I'm not religious but I'm praying for this man. I'm really rooting for him to turn things around.
♥️♥️♥️
@@MikeAndesi am sure the camera man ran their mouths and the crew picked up on what was going on. The camera crew should say nothing. Until boss man and you decided to have a meeting. I'm sure you addressed this with the film crew.
32 an hour mowing are you freaking kidding me I make 3 times that mowing. I'm doing 28-30k a month with just 2 of us. You have to find your profitable specialty and stick with it you do not need to chase low profit crap. If mowing doesn't work for you don't do it. For us it's become the only service we want to offer.
Sounds like us, same numbers
i was thinking the same thing im 70 a man hour
About 10k with a part timer right now. I get most of it done solo. Dude isn’t charging enough
Depends on location. I made good money, but ran out of demand to expand into. I got out of it, took an indoor job with a pay cut and have no regrets. The steady paycheck and air-conditioning is great. Considering unexpected expenses with the business, I'm making about the same. There's always something, and usually the fault of an idiot employee.
$32 an hour is crazy, I run a half a million $ bussiness, but our hourly rate is $120, we have slow growth, but we’re very profitable.
Is it a small business, lawn care company? I’d not we are taking apples and oranges.
$120/$150 an hr is what I charge for my skid 😮 dayum that’s awesome
Love these videos. Great job to the team ! Keep em coming
Thanks for watching! Will do!
This guy has a good heart. Many lessons for me here too. Thanks for the video. Mike
Right on
Being a Bivocational pastor has nothing to do with this comment. You are just bragging.
Wow Mike, great video even if it didn’t end well. Definitely been learning a lot. I’m down here in south Florida.
Thanks for the content. I really enjoy this series.
🙏🏼🙏🏼 thanks for watching!
He should have reached capacity before hiring people. By doing so, he would have raised prices much sooner
Some people are just “playing business”. Like an 8-year old wearing a stethoscope and telling people they’re a doctor.
They think being a business owner means they are OK loading up on debt.
First my man needs fitness and a uniform
That's stress bro
Uniform…😂
@@gibsonslawnservice7261 he needs to stop stress eating. It's not stress by itself.
@@tennesseesawmillguy1590 a uniform beats a shirt that looks like a mumu gown and shorts with slip on shoes and no socks. Dude looks like he woke up and went out to grab a beer.
Mike, this is good content keep it up.
This guy is so stressed out, that it made me stressed from looking at him.. walk away and live life. It isnt worth it. You missing out on life that has no reset button
I'd love to see an episode where you and Caleb Hammer drill through the operations and the finances.
This is a very simple fix. He needs to charge more per hour. We do more in revenue but with less guys and we almost charge double what he does per hour because we charge overhead in our prices.
He needs to figure out what his daily overhead is and divide by man hour and add that to his labor hour then add 20-40% margin to it
Did you miss the part where they said he lost clients when he raised prices? Just because you’re lucky enough to get it right, doesn’t mean someone else will mix those ingredients and get the same dish
@@mackeejack6731he lost one commercial client but overall said he did not lose many clients after raising prices a lot. At 16:55 Mike said they had only a 1% churn after raising prices 40%. He was charging $32/hour in an area where employees are starting at $20/hr. That’s insanity. Even after raising the prices to $50/hr like he did that is still incredibly low. There’s no way $50/hr is the best he can get.
@@mackeejack6731loosing clients is fine and he’ll be more profitable with the clients that stay
@@mackeejack6731 he needs to lose clients lol. A client that you lose money on shouldn't even be a client. Paying $20-25 an hour and charging $32 you're losing a LOT of money. Charging $54 you're probably losing money or barely breakeven
I CAME HERE FOR A HAPPY ENDING MIKE! WHERE IS IT!? 😂
I'm devastated!
I hope it worked out for them.
Wow, it blows my mind that he didn't respond to Mike. This went south fast! He's stretched way too thin and I didn't feel like he was really taking in what Mike was saying.
Mike is in a uniform and this guy isn't
Doesn’t look like this guy has mowed a lawn in a long time lol
That doesn’t mean anything my guy.
@@oiboy626 Yes it does to customers
@@MountainManservices customers are not his issue. It’s his pricing and spending.
Agreed it's not his main problem@@oiboy626
Mike, you have been nothing blessing in our community, please never look back and regret anything you are doing, blessings 🙌
Much appreciated! 🙏🏼🙏🏼
Mike you are truely a special person!! godspeed
$50 for mowing?
That area pricing dismal.
1985 prices
wow im about half way through and this business in trouble. If Mikes able to turn this around he is indeed the GOAT! The Alex Hormozi of Lawn Care
Just an odd one to say the least lol, I was so confident he was gonna fix everything and then the employees got weird and he ghosted us 😅
His wife will leave and take all his assets if he doesn't get his priorities right
Yep another man will be raising the kids hes fighting to support. Sad but true
They do that regardless. It's just his turn with her
Stay small, less overhead. You can make $300,000 a year with you and another guy mowing. What more do you need? Pay yourself $150,000 and take the winters off to go to Florida 😉
Get injured lose everything
@@dillonmennie8694 should be a country contractors song. You literally have a guy running his business like the government. Debt kills the business success drives ego so people need to keep the squeaky trucks a lil longer lol self employed always seem to exempt themselves from insurance so they fall they fail it happens too much
Or just mow 11 months a year in Florida 😂
i work with a company that has this exact problem and for whatever reason despite the solution being so clear and obvious it goes ignored because it means acknowledging your own failures which is just not an option for a lot of people. money management is the foundation of a business and yet for some reason for many it doesnt get the attention it needs to create a sustainable business. it is just a lot of short sightedness and not being able to see clearly what the future holds. you need to set strict rules for yourself to guarantee you cant fall in to this position.
Very educational to watch. I always lean more on what Mike says than the drama going on.
Unfortunately there is a big problem here with the company culture and not sure if he can fix it. Time to start communicating clearly and directly with employees from here on out.
I love these videos Mike keep them coming! Very helpful information too that I can apply to my business
🙏🏼🙏🏼 thanks for watching! Will do ✅
I totally can relate to this guy. I have the same problems, cash flow is allways a problem, plus the money never comes when you need it
Mike these videos are so good I'll be thinking I'm the only one in the world who have these issues until I see your videos
32 hr or even 50 is crazy low. Try 90 to 100. The ratio of billable to clock hours is not 1 to 1 ratio
Good video mike thanks
Glad you enjoyed it
Wow Transparency goes a long way!
Ouch, hope it ended well
showing up to a clients house with his belly looking pregnant is not a good look to charge high prices. geez
4 kids what is this guy thinking
nice video mike
tax write offs makes you money up front off of debt. but that runs out and you are still in debt. thats why they so few contractors now a day. they failed during covid and couldnt flip their debts, and dont have fake credit to start back up.
These are awesome
The guy seemed to struggle taking advice, admitting faults, or acknowledging others’ accomplishments. He doesn’t seem to have the KSA to move from manager to architect. When he said he felt like “disappearing”, was I the only one who didn’t think he meant going on vacation? Hopefully I got the wrong first impression.
Nothing is his fault. He has an excuse for why everything that happens is not his fault.
He's been listening to T too much.
You talkin bout tigran😂
As a business owner myself this is my advise!
You need a Master Tech preferably out of the Automotive field that can handle the Operational Side. You want to utilize this prospect with Respect and Dignity. However make sure he is good with his hands and knows how to teach. It's important that he brings more than ten times value to your business. I am a former Master Auto Tech and got out of the Business because the Stealer ships 😊🤞were Steeling our flat Rate time. Believe me there are a lot of these guys out there and want a fulfilling career. My suggestion is you spend the money on that! Get your business running smoothly! In doing so everything will flow into place! ❤!
I almost passed out when I heard 32. A hours the just to 50 get to 100 and you will maybe lose a couple clients but you will lose that headache that client gave you anyways
Not how they are supposed to end but shows reality of situation and range of employees. Seems like they got some of the right pieces in place but attitudes need a fix and open books would help them see what’s really going on not just seeing money flying, I work full time and mow 24 lawns a week for my business +spring and fall cleanups. I get the numbers 20-30%+ profit and need to pay full year on equipment being seasonal business but some employees just assume profits are high. If everyone tried it they might understand better and appreciate the owner more and try and take as much off his back to help make profits higher ensuring a raise
I think there is just way too much friction at once in the same point of the rope, and it can get scary. You can also tell how some employees were quick to throw out dirty towels at the first glance of stress, I believe that there was probably already a bit of a messed up culture internally which caused premature friction.
I would drop the big landscape jobs. Stick with mowing and Christmas lights. Sell most of the large equipment. Just downsize the business. My business is a chuck n a truck and i have what he wants in checking .
Basically start over.
This owner needs to get a backbone
If he still wanted to have a lawn service he should rethink it. Do like a business i Denmark. They come out a couple of times a year. mow it, arriate and fertilise so it gets up to a golf green. They gives you advices on what to do ect when they leave. So between their visits, its the owners responsibility to cut the grass and follow their advices.
If there was a lesson to be learned from your side, I think you should be clear with business owners about the communication they should be having with their teams prior to visiting to avoid issues like this.
Agreed. We made a video after this for all future turnarounds for their employees to watch before we show up
I worked for this company for like a month right after he bought it in 2019 lmao
lol josh!! I quit 3 years ago for all these reasons.
I really wish we could have seen the turnaround, hope his business is doing better
💯
It won’t!! Ask me how I know.
@@emonster050110 Dont keep me in suspense
Can’t get more then 50$ a acre when your yards look like that 😂
It's sad how far people will go to avoid thinking or doing math.
Put your shoes on right
I scrolled for this! 👞 🤦🏽♂️
I fire people all the time. I’m in an at will state. Just be professional when letting someone go. I’ve had people empty their pockets before for suspicion of drugs. Just don’t curse/insult and explain the situation when terminating
GAS: Gear Acquisition Syndrome
Quick question, you said you have 150 locations and your overall company does $50mil per year which would equate to $333,333.33 per location is that correct? Just curious if I’m doing the math correctly.
Or some locations are more profitable, but as an average is that correct?
This include all locations yes. Including those that started this year from $0
@@MikeAndes wow great job. new subscriber and your videos are very informative. Never thought the landscape/lawn care business could be a franchising business.
That one guy that keeps talking seems so disgruntled.
If the economy slows down, we'll still have these jobs we lose money on!
Great video
this guy did a shop tour on brians lawn Maintenace and was flexing about how much he did with christmas lights. now to find out hes in debt lol
Can I get get a link to the video or the name of it. Thanks!
Alex does a majority of his revenue and profit with the Christmas light division. I didn't film anything with his mowing/hardscaping side. That's why Alex is really looking to slim down to Christmas lights only. Probably not a bad move after seeing this video with Mike!
Don't believe everything you see on social media. People love flexing the good things in their life but not the bad ones. 😂
14:34 i be doing that as a solo guy
He should also be taking deposits for big jobs.
This guy was futured on Brian's lawn maintenance youtube channel
I feel bad for this guy he is drowning in debt. Other scrapers look down on me because I don't have employees or a flashy new truck. I dont know what its like to have dept its one of my biggest fears
When money is cheap you should never be leveraged more than 75% including operating capital… when rates are high, you have to use less leverage, maybe 60% 40% cash…
Shoot put me in touch with this guy I wanna learn how to get on his level of Christmas lights.
Biggest problem being everything for everyone. All that debt find your niche
Seems like bad culture
Honestly if you’re gonna go into hundred’s of thousands of dollars in debt, let it be real estate 🤦🏽♂️. Going into that much debt with something that requires manual labor will not end well
I've been watching a lot of these failed business videos. Most die from too much debt. Keep your day job, then save up and buy your first $100K of equipment, then dive in to your business debt free and only use profits to buy more equipment. Stay away from debt at all costs. People are working hard as heck and the banks are getting rich.
32 a hour wtf? Kids charge more then that
150 mowing accounts. 3 crews? Need more like 350 accounts if residential
This guy was on Brians lawn maintenance videos i believe
if your mad because you werent informed ahead of time about being filmed....... Just decline to the camera man about being filmed. Simple. No need to get mad at your boss. Man....... Some people just make things way worse than what they are