Jan. 12, 2024
Ep 239 - Million $$$ Start-up Series 2024 - A $1M 1st Year With Daniel Totten
Imagine flicking a switch and illuminating the path to a thriving electrical business without the shadow of a slow season—Dan Totten has done just that, and he’s here to share how the loop method charged up his million-dollar launch. Joseph and I, Clay, sit down with Dan in a high-energy exchange that's all about celebrating wins and transforming your business from a flickering bulb to a beacon of success. Prepare to electrify your entrepreneurial journey as we dissect Dan's first-year achievements and the transformative strategies that could overhaul your own electrical enterprise.
Wave goodbye to costly advertising and hello to a surge in organic growth and referrals that'll have your phone ringing off the hook. Get ready to amp up your service quality, community engagement, and strategic networking, as our discussion reveals the magnetic pull of a company culture built on trust and top-notch customer experiences. Dan peels back the insulation on the wiring of his business to show how creating strong, authentic connections within your community is the secret circuit to a constant stream of new clients—all without spending a cent on ads.
As the grand finale of our Electricpreneurs Secrets series, we're cranking up the voltage on scaling operations and mastering premium electrical services. Dan energizes us with insights on delegation, planning, and the power of team appreciation to boost morale and customer satisfaction. Strap in and connect with us for this episode, where you'll learn to construct a repeatable and sustainable business model that keeps the power flowing and the profits growing. With Dan's dynamic guidance, your electrical business can light up the industry landscape like never before.
Join us LIVE 5 days a week on the Facebook Community page:
https://www.facebook.com/groups/electricpreneursecrets
And see us and our stories and wins at:
https://www.serviceloopelectrical.com
00:02 - Million Dollar Launch and Loop Method
11:05 - High Call Volume and Referral Strategies
14:46 - Scaling and Building a Successful Business
25:42 - Achieving Success in Electrical Contracting
29:52 - Continuous Training and Team Appreciation Benefits
37:38 - Sales and Premium Electrical Service Mastery
WEBVTT
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Hello, hello, hello, and welcome back to yet another episode of Electricpreneurs Secrets, the Electricians podcast.
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I'm your host, clay Neumeier almost choked on at that time with me, as always, my esteemed co-host, joseph Lucani, and we are the Electricpreneurs Just a couple of master electricians with business addictions, here and ready to serve on yet another one of our daily freemium coach calls.
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You can read here on your favorite podcast channel or joining us live in the Facebook group.
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And this is episode 239 in our million dollar launch series how that loop method, as we've been talking about, is going to free us on this journey.
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And today, actually to your surprise, potentially, we've actually got a special guest, another one of our clients who's just rejoined us recently Dan Totten.
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He rejoined us in the last quarter of 2023 after spending a bit of the first quarter of 2023, kind of took the summer off.
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We didn't think he was doing much, but he's been doing a ton and he himself managed this million dollar launch first year.
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So who better to have in this perfect timing for the loop method, joseph?
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How are you doing today, my brother?
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I'm doing amazing.
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It's one of those days where really you can't ask for better when it comes down to serving at the highest level, and I'm just grateful to be doing with you every single day and plus being able to talk about Dan.
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I mean, the guy's a solid individual.
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I always enjoy seeing him in class.
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He's nothing but a pleasure to work with, so I think it's very fitting we bring him in today.
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How about you today?
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How you?
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holding up Doing fantastic man.
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Client interviews are my favorite.
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I love getting someone else in on the engagement and the conversation and really I mean I say client interview but it's more like a team this community we've built.
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And.
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I just want to take a moment to introduce this loop method again on the podcast, because it's something we're going to focus on for an episode or two here in how we would launch this business in like some of the ways Dan has.
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So the loop method and the curiosity around that can we just speak to that for one moment, joe?
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Yeah, we have to.
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Let's dive into it.
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So, in all the trainings we've been doing the sales process, development and training that Joseph's brought right from his $1.3 million van days to now training others to do the same and even better, here soon, right, and that's what I'm taught, and it's the guy.
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This loop method, that's the seven pieces that we've extracted from this process and put it ahead to figure out what we offer and that, coupled with the organic marketing, has created this effect, joe, where customers keep on coming and playing again.
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The business becomes sustainable in shoulder slow season can become something that we embrace and we look forward to, as we get to serve our customers again at the highest level, man, and nothing's made me more excited than launching this loop method with you, brother.
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It's truly been a pleasure as well, and you know, it's a personal win in my opinion when we get to talk about removing the slow season, because it's one of those big bad bogeymen that so many people don't want to speak about or they're like oh well, things get slow and well, we just do commercial, oh, we'll do new construction.
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But using our method, we're able to remove the slow season to where not only is it now continuously profitable for you, but you can even plan your business as certain stop points, because now that you know your pricing, now that you know your offer, now that you know all these other factors that go into it, you can take control and meet the day rather than have the day meet you.
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That's a hot mic.
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Speaking of hot mics, what do you say we introduce Dan?
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I would absolutely love that no better time than the present.
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Here we go, dan.
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Are you with us?
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Come on, dan, there he is.
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Hey, how's it going guys?
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Hey, it's.
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Deletric Doing great brother, happy to have you on the show.
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Thanks so much for joining us, man, how are you doing today?
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Hey, we're doing good.
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You know we're off to I guess it's almost towards the end of the week, but it's been a great week so far.
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Everyone's doing well so it's great.
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Nice man.
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I think we mentioned in the back here before the show it's kind of perfect timing to bring you in and fitting because we've been doing this million dollar launch series and how we would start over today and it seems you've done much of what we would aim to do in having your own million dollar first year.
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So A like huge congratulations.
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B I can't wait to dive into this with you, man, right off the bat.
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Could you see this coming for yourself, let's say, end of 2022, when you were starting, or what were your feelings then?
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You know, to be honest, when I started this and I was thinking, you know, when I start this electoral company I'll probably be just by myself.
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You know, who knows, maybe in a year or two down the road I'll get some help, but we'll just kind of see how it goes.
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You know that kind of thing.
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And then once I realized my phone was blown up quite a bit right off the bat, I was thinking you know, I'm gonna have to figure out a way to manage all this because it was just really, really hectic.
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So I'm glad I reached out when I did, because I think I would have been in a really big mess right now if I didn't.
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I know I definitely wouldn't be nearly as close as I am right now.
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I've got a lot of goals for this coming year, but as far as the first year, I think we're right on track.
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So it's good, awesome.
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I'm gonna be happy for you, man.
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It was electrical in your blood, or why'd you get into this?
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Why'd you get into the electrical business in the first place?
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You know my dad's been an electrician since he was 18.
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He's now in his 50s, so he's been an electrician for over 30 years.
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So that's a big thing.
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You know, he's always been commercial, industrial kind of projects.
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And you know, going up through high school I wasn't exactly sure what I wanted to do, but I knew I didn't want to go to college.
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And he said, oh, you know, electrical it's.
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You know it's a rough trade.
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I don't know if you want to get into it, you know.
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But I always went on, you know, a couple side jobs here or there at the neighbor's house or wherever, and I was like you know, this is something I really like.
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So I pretty much got into the apprenticeship at 18 as quick as I could and then went through it and got my car.
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Basically, so very cool man, I love that.
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If I can touch on something, I just feel like it's so cool that you got an exposure early in the trade, because for so many of us you know whether it was you don't have a family member that's handy or you don't have a mentor.
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It could have been a lot harder for you to get exposure to it, and nothing's worse than jumping into a trade you don't love.
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But the fact that you had that ability being like you know I can take on a project on the side I can see that I like it.
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Oh, I do like it, and I really feel like that passion for the trade is one of the reasons why you're so successful at what you do, because every time you and I have a conversation, it's really I can hear the passion and I can hear the commitment to the highest level and I really think that's something I respect about you.
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I appreciate that.
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You're welcome brother, there's another twist in this in that your background you actually came up in the union.
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Is that right?
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Yeah, absolutely.
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So what we're at right here it's kind of a split, but basically he was through the union.
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When I came into it I said you know, that's what I want to get into and from a business standpoint, that could definitely change a lot of things.
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There's a lot of minimums as far as, like, pay scales and different things like that, which, in our specific area, is generally quite a bit higher than if you were non-union.
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So it definitely changes a lot of different things as far as health benefits and pay Right.
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Yeah, and your area again, if you wouldn't mind telling people.
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Oregon area.
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So the nearest city to us would be that's a big city would be Portland.
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We're probably our shop is based, you know, about 40 minutes from there, but that's a pretty big area where we do a lot of work.
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Nice and sort of hire someone a residential service electrician, like what does that pay scale look like for a year of that employee?
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You know, as far as from a residential standpoint, our technicians right now are more commercial residential mix.
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But as far as from a residential standpoint, an average hour including health benefits, you know they're around $65 per hour for a real basic one.
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And if you want a commercial guy, you know you're over $100 an hour really.
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And they're.
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If you want health benefits and everything, they're making $65 to $70 an hour on average, plus health and benefits.
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So it can be quite a bit.
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No kidding, no kidding.
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So with that in mind, I remember doing sort of your pricing exercise for the first time and really looking at those expenses, going, wow, this rates climb in quick.
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Did you ever have any nerves around that?
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And the affordability for the people in your area for your services.
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You know, when I first started, I kind of was looking at the company as far as everyone else's pricing, and that was kind of my biggest downfall, I think, is I was thinking, well, what is everyone else charged?
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What do we charge in order to make a profit?
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And from a starting point, that was the really biggest part for me.
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It's like, hey, we need to charge this much.
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I don't know how we can physically do that.
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And then it started focusing on what everyone else charges, what we need to charge, and that was kind of the biggest thing we're starting out with.
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That right on day one was a really big boost for me.
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Massive yeah and kudos to you for embracing it and doing the hard thing, which is to go out and try Incredible piece, like so many people get stuck right there.
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I'm so glad you didn't, because you might not even be here to talk with us today if you hadn't.
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Yeah absolutely so.
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What is the primary focus of your guys's work now?
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What do you guys find yourself working on most?
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Residential service.
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I would say you know generally you know I mean 90% that we do and when we started in that most of our guys have commercial experience, kind of commercial background we all can do residential, but we did a lot of that.
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So we still have those kind of bigger projects pop up.
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But generally speaking we're trying to transfer over residential services as much as possible.
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We still have to do stuff on commercial-ish jobs that are from a maintenance standpoint.
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We'll go back there and it's a really similar process Apartment complexes and stuff like that which we've got good luck with but it's something where we're slowly transferring over for sure.
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Awesome, and you said something already that I think people are dying for us to ask about why is your demand so high?
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Do you think, like did you market a certain way?
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Is there something going on in Oregon, something in the water for DT Electric or what's going on, brother?
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Yeah, what's interesting is when I first started, a lot of mutual friends of mine have their own construction companies.
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As far as like landscaping, painting companies, any friend of mine that I went that I've connected with that I've had the best results is like, hey look, anyone that has their own business already is a friend of mine.
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Anyone that you know tries to exceed.
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It's one of those things where it's like you know, if you hang out in the sewer you're going to get hit with a turd.
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So my thing is like I like hanging out with good quality people that like to do work, whether they're older, younger, you know, I just like being around successful people to find success myself.
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So that's something where I've tried to do.
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So if everyone else has a company that they're trying to grow, generally speaking, you're going to get a lot of you know help through that alone.
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And then one big thing I did is it's like, okay, well, if I have all these people that I know that own companies, well, if I recommend them, then in terms, they're going to recommend me.
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So, as far as our phones, since day one our call volume has been way more than we could ever handle.
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Right now we're starting to get to the point where it's like, okay, you know, we're catching up, we're getting multiple install teams set up and now we're starting to catch up with that workload a little bit.
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So I've never paid for any advertising.
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I mean we wrapped our vans and got matching shirts and stuff, but I've never paid for advertising, never put a sign in the ground, never, never tried anything farther, just because our call volume is so high.
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And even even to this day you know the CSR that answers all the phones there'll be times where she's on the phone call for four or five minutes and she's like man.
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By the time I got off that phone I had three voicemails and I'm calling it back as quick as I can.
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So our call volume it's not always like that, but start of the morning or into the afternoon, especially on a Monday or Friday, is huge.
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So you know you said something in the very beginning and I didn't want to break your flow because I really love what you're saying.
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But there's a study that says if the five people you're closest with you end up developing their similar traits and something I really love that you're doing is that you said I'm gonna focus regardless of their age.
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If they're running their own business and they've got a desire to work, I want to ally with them, and I think that's really, really important, because there's a lot of people who start businesses for the wrong reasons and, as a result, they're in these situations where they try to rush or they're trying to just get to the bottom line.
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But it seems like you're doing the opposite, where you're focusing on people who want to work and want quality and by referring them, they're referring you and you're creating this reciprocal relationship that just seems to get better and better over time, as well as your habits being improved through those connections.
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So I see it as like this continuous loop that's improving.
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I just want to say, if no one else noticed it, I see it.
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I think that's really awesome.
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I want to say it the way Dan said it hang out in the sewer, get hit with turds.
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Is that something your dad kicked down by chance?
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No, I, you know, I'm not really sure he was.
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When I was going to start this thing he was really a little bit hesitant, like, are you sure you want to do that?
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It's like, well, hey, if nothing works out, then I'll just go back to work.
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I mean, there's not really anything to lose here.
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He was a little hesitant at first.
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Now I think he's really happy and everything like that.
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But it's something where you know, through, I guess, other business people, they, they've said that you know I A lot of close friends, a minor twice my age, and they've got, you know, pretty successful companies.
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So that's something that I like to do.
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What I found is is kind of funny is by doing this training, being with you guys on a weekly basis, a lot of times I've been able to help out a lot of other people.
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It's it doesn't necessarily electrical we're really the only electrical but you know, someone's got a landscape company, someone's got does excavation, contracting, general things.
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There's a lot of tips and tricks that you can pass along that they're like, wow, how did you come up with that?
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That's, that's insane.
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You're like, oh, I've just got this thing I do on a weekly basis.
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You know we're just for electricians, but you know, I'll pass that down to them.
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Well, that sounds like some kind of magic.
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So Wow, man.
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Okay, so before we wrap up where these leads are coming from like, can I ask specifically, where do most of your leads come from?
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Do you think, then, is it all that internal network that you had, or is it grown beyond that since then?
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Yeah, you know, facebook is a really big one where we've got a lot of local groups.
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We're in, you know, portland City Chat, oregon City Chat, all of our local cities.
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If I just when I first started I said, well, I'm gonna just join every single one of these and anytime someone said has a question like, hey, who's the best landscape around, who's the best?
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This?
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You know someone who I truly know is a great, you know it gives a great service, does a you know, premium level service that I personally know a lot of people I don't know in there.
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I don't know a good chiropractor, but I know the one down the road.
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It seems to be really good.
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We've done work with them.
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I'm gonna recommend them.
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So if every time someone says I need a local something, if I have either me, the CSR, someone else I know commenting there they're doing better, they see, oh, that guy's referring me, I should refer them back.
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You know we do a project it.
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Just last week we did a project at a roofing companies thing and they said you know, from now on we're referring to you.
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So anytime I see a roof I don't know a good roof, or I had a great experience with them personally, I'm gonna say you know what that's the roof for I'm recommending, and tell until I hear otherwise they're not doing great.
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What I found is that we just built this huge tribe of you know groups in the whole area.
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So people will call me that are 45 minutes to an hour away and they'll say I've heard you're the best electrician in the city over here.
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And I'm thinking, well, I don't ever work over there, but I'm glad you know I don't.
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I don't necessarily say, well, yeah, I don't, I don't agree with you, but yeah, I'm an hour away.
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I would consider myself local by any means, you know, but I'm happy to go out there and help you, you know.
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Everyone needs to pause this, rewind a minute, minute or two there and listen to that again and again and again.
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The marketing companies are never going to tell you that.
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Why?
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Because they don't make money off of it.
00:15:48.833 --> 00:15:54.535
That is 100% organic leverage, and I love the way you did that.
00:15:54.535 --> 00:15:55.778
I can't say that enough.
00:15:55.778 --> 00:16:10.360
Then it's absolute fire and even in the bigger, better practice groups at the higher levels, where people see so much money Exiting to get enough leads, no one's talking about those fundamentals that you just absolutely might dropped in here, men.
00:16:10.360 --> 00:16:16.552
So congratulations on that intuition to stick with that and to build that tribe, as you mentioned.
00:16:16.552 --> 00:16:21.817
Huge superpower, absolutely, especially in a million dollar launch.
00:16:21.817 --> 00:16:26.412
I mean you were able to do that yourself and minimal effort and create massive gains.
00:16:26.412 --> 00:16:29.626
Thanks, yep, it's huge men.
00:16:29.626 --> 00:16:33.759
Okay, so at this, at this point, you're no longer just a one-man show.
00:16:33.759 --> 00:16:34.923
You've got a team around you.
00:16:34.923 --> 00:16:35.384
Is that right?
00:16:35.384 --> 00:16:36.610
How big is your team today?
00:16:37.221 --> 00:16:41.509
Yes, we've got an office staff with one gal in there doing that.
00:16:41.509 --> 00:16:43.433
We've got two installed teams.
00:16:43.433 --> 00:16:46.013
So we've got two journeymen, one of furnace.
00:16:46.013 --> 00:16:47.240
He's kind of bouncing back and forth.
00:16:47.240 --> 00:16:48.840
You could best use in that day a lot of times.
00:16:48.840 --> 00:16:51.206
We'll have all three of them on one side if it's a bigger one.
00:16:51.206 --> 00:16:59.943
And then we have one service technician that does Mostly the day-to-day demand calls and then I'm still doing sales calls at this time but he's starting to take over those.
00:16:59.943 --> 00:17:02.409
We've got other people that are training to kind of push up that role.
00:17:02.409 --> 00:17:06.449
So three of those staff members have really been hired in the last couple months.
00:17:06.608 --> 00:17:10.204
Realistically, so we're we're growing at a fast rate of speed.
00:17:10.204 --> 00:17:13.580
Where it started going then it was like, okay, we got one.
00:17:13.580 --> 00:17:17.431
And you know, starting this, starting this year really, we had one van.
00:17:17.431 --> 00:17:24.971
Now we've got five vans, you know, for brand new ones, and pretty much every three to four months I bought another one.
00:17:24.971 --> 00:17:31.482
So we're just, we're really cruising right now and the people are starting to come faster, the jobs are coming faster, they're getting bigger.
00:17:31.482 --> 00:17:35.198
So it's it's definitely a role in volume, it's picking up.
00:17:35.298 --> 00:17:45.920
So I Love the fact that your momentum is building, but also the fact that you're not riding on your laurels Like it's one thing to say, oh, we made it, we're good and now we can top off.
00:17:45.920 --> 00:17:54.593
But the fact you're like every three to five months I'm buying another van, shows that you're trying to scale and that it's meeting the demand that's currently there.
00:17:54.593 --> 00:18:05.663
Because if your phone's constantly ringing off the hook, if your teams are being entrained, if your sales process is being improved, then up is the only way to go at this point, and I love the fact that you have a forward view, that you're doing that.
00:18:05.683 --> 00:18:10.172
You Thanks and one interesting thing that I wouldn't have ever really thought.
00:18:10.172 --> 00:18:18.224
But I feel like everything as far as organization and how hectic it is is less than it was when it was me and one other person.
00:18:18.224 --> 00:18:28.538
So the biggest thing is now I feel like, as we grow and we're getting people in line a little bit better, it's less stress, less going on, it's just more showing up to work.
00:18:28.538 --> 00:18:30.040
Okay, I've got some calls today.
00:18:30.040 --> 00:18:32.608
You know the CSR, half the time, is my boss.
00:18:32.608 --> 00:18:33.871
Okay, where am I going today?
00:18:33.871 --> 00:18:35.453
What do you want me to do today?
00:18:35.453 --> 00:18:37.517
And I'm going there doing what I need to do.
00:18:37.517 --> 00:18:39.220
The install techs are going in there.
00:18:39.220 --> 00:18:42.388
You know I'll help with the scheduling on durations and things like that.
00:18:42.388 --> 00:18:50.038
But generally speaking, as far as the way the company is building now, you know, a year ago it was really really hectic.
00:18:50.038 --> 00:18:51.000
I was scramble brain.
00:18:51.000 --> 00:18:53.990
Now it's like it's very set, cut and dry.
00:18:53.990 --> 00:18:57.117
It's just it's building and it's very easy.
00:18:57.665 --> 00:19:01.653
So it sounds like your mental equity is being preserved there, because you don't have to think of everything.
00:19:01.653 --> 00:19:14.617
So it's almost like imagining a fistful of sand you have to hold the entire thing, which naturally things are going to slip through your fingers, but now you've got multiple hands holding it together, less falls through the cracks and it's less all on you.
00:19:15.986 --> 00:19:20.311
And as we continue to build, you know it's just getting better and better.
00:19:20.311 --> 00:19:25.480
So I think once we get a little bit more sales in there, you know, okay, now we're going to need a little bit more install.
00:19:25.480 --> 00:19:30.886
You know the install texts are kind of being trained into those positions a little bit farther service sales.
00:19:30.886 --> 00:19:33.730
And then, you know, install texts are a lot easier to come by.
00:19:33.730 --> 00:19:35.352
Especially we're at right now in a union company.
00:19:35.352 --> 00:19:43.500
I can make a phone call and say, yeah, can you send me a guy, come in there, put him in the bottom, train them, see if they're going to be a good fit and kind of go from there.
00:19:43.500 --> 00:19:46.210
So it's really really easy to get help where we're at.
00:19:46.210 --> 00:19:49.037
So as far as scalability it's, it's huge for sure.
00:19:50.006 --> 00:19:50.766
Amazing man.
00:19:50.766 --> 00:19:58.314
My next question was going to be based on the fact that you don't look afraid, not one bit.
00:19:58.314 --> 00:20:03.479
You don't look fearful of this, even though you're scaling, rapidly growing.
00:20:03.479 --> 00:20:16.055
Rather, this is a growth point, difference being, growth still has a lot more expense to it, and learning right scale at some point is just like Okay, we're going to turn up the real stat here, right, or turn down, rather and flow that current.
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