April 5, 2024
Ep 297 - Replay - Million $$$ Start-up Series 2024 - A $1M 1st Year With Daniel Totten
Ever wondered how an electrician can spark a million-dollar launch year? You're in luck because today, we crack open the toolbox with Dan Totten to uncover his electrifying journey of business growth and the strategies that powered his success. From the loop method that keeps customers coming back to the organic marketing tactics that charged up his local reputation, Dan's narrative will ignite your entrepreneurial spirit and amp up your own business blueprints. Take a seat at our roundtable...
Ever wondered how an electrician can spark a million-dollar launch year? You're in luck because today, we crack open the toolbox with Dan Totten to uncover his electrifying journey of business growth and the strategies that powered his success. From the loop method that keeps customers coming back to the organic marketing tactics that charged up his local reputation, Dan's narrative will ignite your entrepreneurial spirit and amp up your own business blueprints.
Take a seat at our roundtable of innovation as we discuss the transformative power of networking and quality craftsmanship. Dan's story highlights the importance of forging strong connections with other business owners and the profound impact of creating a reliable referral ecosystem. We take you through the game-changing approach of using social media and local Facebook groups to supercharge your reach and build a supportive community. Plus, discover how surrounding yourself with go-getters can spark a cycle of improvement in every aspect of your life.
Strap on your hard hat as we venture into the nuts and bolts of strategic delegation and role evolution in a growing business. Learn how stepping away from the workbench to focus on big-picture planning can lead to exponential growth, and why hiring a Customer Service Representative could be your next brilliant move. We illuminate the top three factors that fused together for a successful year, and share insights on how sales strategies and team reward systems can brighten up your business's future. Join us and let Dan Totten help you switch on the high-beam path to a prosperous year in the service industry.
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.servicebyelectricians.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 Electricpreneur's Secrets, the Electrician's Podcast.
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I'm your host, clay Neumeier, almost choked on it that time.
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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, right 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.
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After spending a bit of the first quarter of 2023, kind of took the summer off 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 are 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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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, I'd be happy 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?
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Maybe Dan Taunton's the guy here soon, right?
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Maybe Dan Taunton'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.
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Where customers keep on coming and playing again, the business becomes sustainable and 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.
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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.
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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 boogeymen that so many people don't want to speak about, where they're like, oh well, things get slow and well, you 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 at certain stop points Because profitable for you.
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But you can even plan your business at 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 that's a hot mic.
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Speaking of hot mics, what do you say?
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We introduce Dan.
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I would absolutely love that.
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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, hey how's it going, guys?
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Hey, buddy, dt Electric doing great brother, happy to have you on the show, thanks so much for joining us.
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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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As 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 electrical 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 blowing up quite a bit right off the bat, I was thinking you know, I'm going to 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.
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Awesome, I'm 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 fifties, so, um, he's been an electrician for over 30 years, so that's a big thing.
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You know he's always been commercial, industrial kind of projects and, um, 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, you know it's a rough trade.
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I don't know if you want to get into it, you know, 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, very cool man, I love that yeah.
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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 of 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.
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There's another twist in this in that your background you actually came up in the union, is that right?
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Yeah, absolutely.
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So where 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, 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.
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Right, 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.
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And so to 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 and if you want a commercial guy, you know you're over a hundred dollars an hour really.
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And they're.
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If you want health benefits and everything they're.
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They're making 65 to $70 an hour on average um plus health and benefits, 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 and really looking at those expenses going wow, this rate's climbing 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 saying, well, what does everyone else charge?
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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.
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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 where starting out with that right on day one was a really big boost for me.
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Massive yeah and kudos to you for 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 to talk with us today if you hadn't right?
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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 I would say, um, you know generally, you know I mean 90 that we do.
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You know when we started in that most of our guys have commercial experience, kind of commercial background.
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We do all can do residential, but we did a lot of that.
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So we still have those kinds of bigger projects pop up.
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But generally speaking we're trying to transfer over residential service as much as possible.
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We still 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.
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But it's something we're slowly transferring over for sure awesome man.
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You said something already that I think people are dying for us to ask about.
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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 exceeds.
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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, um, 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 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, 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 a 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 going to 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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Yeah.
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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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Uh, when I was going to start this thing, he was really a little bit hesitant, like, oh, 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, um, you know, through I guess, other business people, they, they've said that you know, I, uh, a lot of close friends of mine are twice my out, a lot of other people which it doesn't necessarily electrical we're really the only electrical.
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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 has 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 we're in, you know, portland City Chat, oregon City Chat, all of our local cities.
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When I first started I said, well, I'm going to just join every single one of these and anytime someone has a question like, hey, who's the best landscaper around?
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Who's the best, this Someone who I truly know gives a great service, does a 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 seems to be really good.
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We've done work with them.
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I'm going to 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, comment in 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 that just last week we did a project at a roofing company's thing and they said you know, from now on we're referring 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 going to say you know what, that's the roof where I'm recommending until 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 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 wouldn't 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.
00:15:48.861 --> 00:15:54.513
That is 100 organic leverage and I love the way you did that.
00:15:54.513 --> 00:15:56.077
I can't say that enough den.
00:15:56.077 --> 00:15:57.945
It's absolute fire.
00:15:57.945 --> 00:16:10.520
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 mic dropped in here, man.
00:16:10.520 --> 00:16:21.818
So congratulations on that intuition to stick with that and to build that tribe, as you mentioned, huge superpower, absolutely, especially in a million dollar launch.
00:16:21.818 --> 00:16:26.412
I mean you were able to do that yourself in minimal effort and create massive gains.
00:16:26.412 --> 00:16:31.197
Thanks, yeah, it's huge man, okay, okay.
00:16:31.197 --> 00:16:33.841
So at this point you're no longer just a one-man show.
00:16:33.841 --> 00:16:34.923
You've got a team around you.
00:16:34.923 --> 00:16:35.403
Is that right?
00:16:35.403 --> 00:16:36.605
How big is your team today?
00:16:49.530 --> 00:16:50.895
kind of bouncing back and forth who could best use in that day.
00:16:50.895 --> 00:16:52.703
A lot of times we'll have all three of them on one side if it's a bigger one.
00:16:52.703 --> 00:16:59.953
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.
00:16:59.953 --> 00:17:02.410
We've got other people that are training to kind of push up that role.
00:17:02.410 --> 00:17:06.454
So three of those staff members have really been hired in the last couple of months.
00:17:06.454 --> 00:17:10.199
Realistically, so we're growing at a fast rate of speed.
00:17:10.199 --> 00:17:23.310
Where it started going Then it was like, okay, we got one and, um, you know, starting this, starting this year really, we had one van.
00:17:23.310 --> 00:17:26.455
Now we've got five vans, um, you know, four brand new ones and pretty much every three to four months I bought another one.
00:17:26.455 --> 00:17:31.484
So, um, 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.
00:17:31.484 --> 00:17:35.211
So it's, uh, it's definitely a rolling ball and it's picking up.
00:17:35.291 --> 00:17:46.050
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.
00:17:46.050 --> 00:17:54.605
But the fact that 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.
00:17:54.605 --> 00:18:05.676
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.
00:18:06.700 --> 00:18:10.153
Thanks, and one interesting thing that I wouldn't have ever really thought.
00:18:10.153 --> 00:18:18.726
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.
00:18:18.726 --> 00:18:28.535
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 for work.
00:18:28.535 --> 00:18:30.057
Okay, I've got some calls today.
00:18:30.057 --> 00:18:32.604
You know the CSR, half the time is my boss.
00:18:32.604 --> 00:18:33.855
Okay, where am I going today?
00:18:33.855 --> 00:18:35.421
What do you want me to do today?
00:18:35.421 --> 00:18:37.458
And I'm going there doing what I need to do.
00:18:37.458 --> 00:18:39.195
The install techs are going in there.
00:18:39.195 --> 00:18:40.611
You know I'll help with the scheduling on.
00:18:40.611 --> 00:18:42.393
You know durations and things like that.
00:18:42.393 --> 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 --> 00:18:51.058
I was scrambled brain.
00:18:51.058 --> 00:18:54.001
Now it's like it's very set, cut and dry.
00:18:54.001 --> 00:18:57.144
It's just it's building and it's it's very easy.
00:18:57.664 --> 00:19:01.647
So it sounds like your mental equity is being preserved there, because you don't have to think of everything.
00:19:01.647 --> 00:19:14.624
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.
00:19:21.289 --> 00:19:23.259
And as we continue to build, it's just getting better and better.
00:19:23.259 --> 00:19:25.789
So I think once we get a little bit more sales in there, okay, now we're going to need a little bit more install.
00:19:25.789 --> 00:19:33.717
The install techs are kind of being trained into those positions a little bit farther as service sales, and then install techs are a lot easier to come by.
00:19:33.717 --> 00:19:35.332
Especially we're at right now in a union company.
00:19:35.332 --> 00:19:43.530
I can make a phone call and say, yeah, can you send me a guy, come in there, put them in the bottom, train them, see if they're going to be a good fit and kind of go from there.
00:19:43.530 --> 00:19:46.213
So it's really really easy to get help where we're at.
00:19:46.213 --> 00:19:49.057
So as far as scalability, it's huge for sure.
00:19:49.998 --> 00:19:50.778
Amazing man.
00:19:50.778 --> 00:19:58.287
My next question was going to be based on the fact that you don't look afraid, not one bit.
00:19:58.287 --> 00:20:03.481
You don't look fearful of this, even though you're scaling, rapidly growing.
00:20:03.481 --> 00:20:05.174
Rather, this is a growth point.
00:20:05.174 --> 00:20:10.373
Difference being growth still has a lot more expense to it, and learning right Scale at some point.
00:20:10.393 --> 00:20:16.038
It's just like, okay, we're going to turn up the rheostat here, right, or turn down rather and flow that current.
00:20:16.038 --> 00:20:20.321
But let me ask you, man, are you having trouble sleeping at night at all?
00:20:20.321 --> 00:20:22.277
But like, why do you seem so calm with this?
00:20:23.171 --> 00:20:26.998
Yeah, there's times, but my thing is I just really like to work.
00:20:26.998 --> 00:20:29.776
So it's not a thing of, like, lack of sleep.
00:20:29.776 --> 00:20:38.683
Like last night it was eight and I was like, oh you know, I was just sitting there not really doing anything productive and I was like, oh, we kind of need this for the job tomorrow I'm going to go get it.
00:20:38.683 --> 00:20:48.923
The technician was going to go from the shop to go get it, but I was thinking, well, if I do that, then that's going to save him a half hour from having to like to work.
00:20:48.923 --> 00:20:52.948
So it's something where, if you know, if there's anything I can do to improve, I'm going to do it.
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