Food Stamps to $750K/Month With This...

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- Imagine building 12 multimillion dollar businesses. Now, imagine running eight of them simultaneously. How did you do it, man? - Good people and great systems. But you know, honestly it wasn't always easy. I've lost my house, put my daughter's birth on a Nordstrom credit card. We were on food stamps for a period of time. Half my employees quit on me. The model is seven employees in one location doing 1.2 million a year. And we've had painters that will refer us six figures a year worth of work. Mindset is a big part of being a successful entrepreneur. And there's lots of times on a regular basis where I wanted to quit. Everyone sees the wine, no one sees the crushing of the grapes. - Mm-hmm. - You know, and I've got my grapes crushed. So, lots of trial and error though. - I would love to hear more about that incredible story, Brandon, but before we get into the details, I think our audience and myself would love to hear more about what's been going on in your business since the last episode on "UpFlip." Tell us where we're at, 'cause last time you and I met, it was in Vancouver, Washington. It was raining, your crew was working behind us. It was awesome. But now we're in a completely different environment, different location. Tell us about that and the significance and so on. - So we set up our national headquarters here in Orlando, Florida. - Nice. - Because that's where my business partner is for Wise Coatings franchises. - Mm-hmm. - So we bring in all the franchisees to this location. We train them, we get them all set up, let them know, you know, they go through Business Accelerator Week, and then they kind of go back and start their own business. - Gotcha. So if I wanted to open something on the West Coast, I'd still be showing up to Orlando at some point. - [Paul] Yeah. Gotcha. - Yes. - [Brandon] How have you grown? How has the business changed since our last first episode with "UpFlip?" - It's been amazing, Paul. We were at eight locations when we filmed last time. We're at 20 locations now. - Wow. - We've more than doubled. And that got us a Entrepreneur Top 100 Emerging Franchises award. - Okay. - Which was really, really cool. And our team has grown a lot. So we've added on coaches, we've added on graphic designers, onboarding specialists, sales trainers. And we've also expanded out this location to be able to kind of show them a little more, you know, day-to-day operations. - Alright, dude. Well show us your office here at Orlando. - Okay. - We wanna see, see what's going on there. - Let's go. - Alright, sounds good. - Brandon, take us to the young kid, Brandon. Just want to understand who were you as a kid, who had the biggest amount of influence on you, on who you are today? - Wow. So I'd say probably the most influential person was my dad. So my dad had a home service business my entire life. So he was the guy on the tools, and he had between zero and one employee for all that time period. So he did about like $8,000 a month in his business for 33 years, basically. So it was interesting because I kinda had a first-hand look at my dad running this business as an owner operator. In essence, he had a job. In 2012, he actually was diagnosed with heart disease. - Oh wow. - And the business was faced with shuttin' down. So he had a bus factor of one. You know, he had no retirement, no savings kind of set up. And so I had to kind of step in, and make sure that I was able to take care of him and my mom in 2012. 'Cause they had no other plan B. - Yeah. - So that was very transformative for me to kind of witness that as a kid. - Guys, Brandon here has built a business, and created six figures a month in just four months. So if you want a blueprint for starting fast, scaling fast, don't go anywhere. Take us back to 18. You got your first business license then. - Okay. - What were some of your first entrepreneurial opportunities that you got into? - Well, the first business that I did was following my father's footsteps, was a window cleaning company. So went out and started a Shiny Night Window Service, - Different name, different business. Okay. - Different name, different business. Then I had a construction company called, Cutting Edge Interiors. And that's really where I had the biggest problems. So the time when I completely tanked that company was during that phase. I had no idea what I was doing. I didn't know how to run a business. I was the owner operator. And it was this cycle of going out, selling the jobs, coming back and doing the jobs, selling the jobs, coming back and doing the jobs. And then eventually just got to a point where I had no concept on marketing whatsoever, because I hadn't learned that skillset yet. And so that was, that was a very humbling moment. And I had a lot of other random entrepreneurial little ventures of small failed businesses. And then finally when I got rid of everything and just focused purely on All Clean, was when the time of the business actually started kind of taking off. So it really wasn't until until 2012 when I really started to kind of understand more how to scale a business from then on. - With what you know now, for our 18 year olds watching around that age, what would you do different, if you could go back with your knowledge today? - Oh man, I would've gone into coaching. Warren Buffet says the best investment you can make is in yourself. So, anything that I've learned over the years, the most powerful things I've learned have been through mentors, coaches, other people. And failures are really good learning lessons and examples as well. As long as you learn from them, and implement, you know, okay, I'm not gonna repeat the same mistake next time. - Yeah. - And I'm going to level up my marketing skills. Marketing, to me is one of the most important skill sets that universally translates to any business that you own or run. - Let's go check out your warehouse. - Okay. - Alright, cool. Let's do it. (deep bass beat) - You've had some business flops here and there. It's natural, right? - Yeah. - For the evolution of an entrepreneur. - For sure. - How did those setbacks help you get to, I would say a more positive tipping point trajectory? - I'd say every failure that I've had, I've learned positive lessons from. Every single one. So, you know, in the case of my construction business, learned the power of marketing, learned the power of hiring, you know, getting out of the field. When I had half my employees quit on me. You know, learn the power of, you know, setting the vision a little bit more, and investing into my employee's dreams and their goals. So, you know, if you're failing, and you just give up and you quit, you know, you get no net positive from it. But every failure that happens in a business can be used to improve. So, you know, I like the expression of when you point at someone else, you have three fingers pointing back at you. - Yeah. - At the end of the day, it ultimately falls on you for every failure that happens. So just being very, very accountable, and having that extreme ownership over anything that happens in your life, and in your business, is the way to be able to be successful, in my opinion. - Cool. Awesome. Guys, Brandon here swears by a life changing business framework that you don't wanna miss. So if you want an inside scoop, keep an eye out for it in the episode. Alright. So you offered your dad like three grand to take over the business, essentially. Why did you think you could do it? Where was the confidence from? Or give us the details. This sounds interesting. - Yeah. I bought it from him for $3,000 a month. - Oh, I see. Okay. - For life. - Life? - So the business was doing about eight grand a month at the time. You know, he was the owner operator. There was no employees in the business. And at that point in time, you know, I didn't know how to evaluate a business or what that would look like. He did have, you know, some customers that were recurring work. And so the big thing was, was that he had no retirement, no savings set aside. So that would be enough to be able to supplement his social security to where he could actually retire, which is what, you know, we wanted to do. And, you know, you take care of your parents. That's just period. - Yes. It's just what, what you have to do. - No questions asked. - So when I did that, you know, I had no idea if I was gonna be able to afford that kind of a payment. And I found out pretty early on, that that was very difficult to keep up that payment, because the business doing 8,000 a month, and then 3000 of that was kind of set aside over here. So it kind of was kind of forced to be, you know, to grow the business in order to make sure that I could also take care of my family, you know, with my young daughter and my wife. - Okay. And your dad's out of the business a while for now? - Oh, yeah. - Yeah. - Yeah, he retired in 2012. And you know, when I sold the business later on, I gave him a six figure gift. - Nice. - So that they're set up for the rest of their life. That's awesome. - They don't have to worry about that part of it. - Yeah. - Alright, you guys. You've heard it from Brandon himself. This guy has cracked the code to business automation so well, that he's had spare time while running a $6 million a year company. Now what did he do with his spare time? Well, he built a business, and another, and today, he's got 12, yes, 12 businesses. And that is not even it. Today, he runs eight of them without any day-to-day involvement. Now if you're thinking, "Man, I want in on this, well you're in luck." We've partnered with Brandon to share his secret sauce for starting and scaling businesses. And the cost to you guys, our amazing viewers is, are you ready? Hang onto your seat, 'cause it's gonna be jaw dropping. It is a whopping $0. Yep. That is right. But you gotta get in on it before it's too late. The link is in the description below. (lively music) Dude, I keep thinking about the buffalo. I don't know why, but it always stands out, the idea that they run to trouble and hardships, and all the pressure, rather than running away from it. - Mm-hmm. - But I know I'm getting ahead of myself. If you can tell us a little about the core values, but really just hone in on whatever you want to. But for me it's the buffalo. I gotta tell ya. - Well, core values, a lot of people, they'll have them just like on a piece of paper that they did an exercise one time, and now it just sits on like their shelf. But we talk about these every single team meeting. So when we're all gathered around, and we're talking about this, we'll have them call out, you know, "Hey, what team member ran towards problems in the last week?" You know, who do you want to brag on that's been leveling up personally or professionally? So how did someone, you know, implement the heart of a servant and serve a customer? You know, what's an example of someone doing efficiency? So all of our team members are bragging on each other under the core values. Which spells base by the way, which all starts with a strong base foundation. You know, the buffalo is one of my favorite core values, because, you know, differences between buffalos and cows, buffalo's run towards the storm, cows run away from the storm. And we don't wanna be cows. - I was gonna say, do you want to be a cow, or do you wanna be a buffalo? - No one wants to be a cow. - It's your choice. - Yeah. (Brandon laughs) - You're obviously in the boat of day-to-day grind, the pressures, the long hours. You know, were, not as much now. - Yeah. - But still, running a business, being an entrepreneur, there's a lot going on. - Yeah. - Right? And in a way, these challenges are blessings in disguise. So what else can you elaborate on that? The world of things, right? - I'd say that, you know, for me, I'm always trying to run towards uncomfortability. So comfort to me breeds complacency. You know, when you're, when you're comfortable, you start to be a little more complacent. And these are people that are like comfortable with always using the Yellow Pages for advertising for years. And then they become complacent 'cause they rely on that, and then suddenly Yellow Pages isn't used anymore. Right? Or people are advertising on MySpace. You know, just different types of things. So for me, what I like to remember is to get somewhere you've never been, means doing things you've never done. So what I'm kind of surrounded with that feeling of like, "Oh boy, I really hope this works out." I kind of know that I'm going the right direction because you know, there's that uncomfortability component with it. - Right. - Failures come with the territory. - [Paul] Yep. - You know. You cannot be successful without failures. - Mm-hmm. - So, you know, how many flops do you have to have before you become successful? - Yeah. - So, chase the flops. - Yeah. - Chase the failures. - Chase the failures. Eat them souls. - Yeah. - What else you got, Brandon? I won't, I won't forget these. Alright, well guys, we're gonna go to the actual job site here in Orlando, give you guys an inside look on how it takes place here, and continue on this wonderful conversation. - Sounds good. - Let's do it. - Alright. (lively music) - Yeah. Brandon, tell us where we are. - We are out at our job site. So this is out here in Orlando, Florida. We're just a little bit north of Orlando in Sanford. - Okay. - And working on a two and a half car garage. So coming in, getting everything done, lay it down. Customer just came out to check on it. They're feeling happy. Just getting ready to, we're letting this set up, then we're gonna scrape it, and then we're gonna top coat. This one here. - Nice. I remember when I first met you, we had the same setup, but it was like downpouring outside. - [Brandon] Yep. (Brandon laughs) - Well, let's jump back into the interview. - Sure. - I've got some incredible questions for you. And the first one is, you've gone through quite a bit of failures. Not quite a bit, but a lot. - (Brandon sighs) Yes. - But I think that's- - You like talking about my failures. - Well, yeah, but that's the beauty of it, because you're, you're a story of success, otherwise we probably wouldn't be talking to you, right? - I agree. Yeah. - Yeah, but all of that was through the thick and thin, the failures of one and the other, and the other. - That's true. - But, you know, what can you speak on that to our audience, and say, "This is the process." Right? 'Cause it may seem like it's easy, you get started on something, and then all of a sudden it's success. But that's not the case most of the time, right? - Yeah. One of my best friends, Josh, he says, you know, everyone sees the wine, no one sees the crushing of the grapes. - Mm-hmm. - You know. And I've got my grapes crushed on some of these businesses. - For sure. - Metaphorically, and well, anyways. (both men laugh) they've been, they've been crushed. So, you know, having to deal with that side of the equation, and understanding that failure is a part of the process, you know, to me, an entrepreneur can be very much like a roller coaster. - Yeah. - You know, high ups, low lows. And for me, with failures, with successes, I've tried to kind of iron out some of those peaks and valleys to where when things are going great, I don't celebrate too much and be like, "Yeah, we just unlocked the cheat code. We're gonna, we figured it all out." And when it's the lowest lows, I don't allow myself to get so depressed. - Tighten up that belt and keep moving. - Tighten up the belt, and just kinda, yeah, keep plugging forward. - Cool. - So, you know, mindset is a big part of being a successful entrepreneur is just staying the course, and you know, if it was easy, everyone would do it. - Yeah. - And there's lots of times, on a regular basis where I wanted to quit, but at the end of the day you don't. - Yep. Well said. Guys, keep watching, 'cause Brandon's gonna share some incredible lists of awesome books that are absolutely a must read. - Yeah, sweet. - Alright, blitz time with Brandon. - Blitz. - Thanks, guys for submitting your questions. First one is from ericnewcomer3031. "Has any Wise Coatings franchise failed, and not measured up to your standard?" - Ah, okay. - "Or, not measured up to your standard?" - Yeah, we have had, we've had a location not measure up to our standard. We also had one that we had to close down. And that one just was not set up properly. The owner and the business had a couple other businesses, and just wasn't able to devote the resources to making it successful. - One of your first ones? - One of our very first ones we had. Yes, we closed that one. - Gotcha. Hey, we win or we learn sometimes. - That's right, we learn. - From calebmcneil185. "How does, how do you handle losing situations?" - I'd say mostly it's running towards problems. It's one of the reasons why buffalo's are our core value. - [Paul] Yeah. - You just gotta run towards. - Sure, you guys. - The longer you wait for the issue to resolve itself, the worse the problem becomes. So just run towards it. - I love it. AlejandroReyes-nv6xo. "Did he implements the same strategy to all businesses, or the approach was different based on the business niche? - Approach has definitely been different. Largely, there's the same kinds of departments that we kind of talked about. - Yeah. - But like, for instance, my software company, it's a totally different type of approach. Your customer acquisition channels are different. There's definitely some nuances to it, but the majority of it is actually very, very similar. Especially in home services. Like 90% of it's the same. - Okay. Mad125100. "That's way too many employees for $500,000 a month. The question is, are they profitable? They must have excellent profit margins." - See why it's Mad. I see that, why the username's Mad there. - What do you say to that? - I'd say that's not, that's not totally true. We have new locations that are just starting to open up. So that aggregate 500K a month is in a whole bunch of different types of locations. So the model is, seven employees in one location, doing 1.2 million a year. - Mm-hmm. - So that's, that's kind of like the model. - I like that. - So you have four, four technicians each, doing about three, three thousand dollars a month per truck. So that's two trucks. - Okay. - Yeah. - Sweet. From redmesa2975, runs a, eight businesses with no date day-to-day interactions. She says, or he, "Every successful businessman I know has some day-to-day interactions so they can, they can watch over things. The quote unquote hands-off approach is how your people screw you. You don't know until it's too late." What do you say to that? (indistinct) You have to inspect what you expect. So in every one of my businesses we have a dashboard, and KPI instrumentation that we have built out. So, I'm able to look at any one of my companies, any point in time to see what the cost per lead, what our gross margins are, our net profit margins, and have really good close on it. I also have third party bookkeepers that reconcile all the books to make sure that there's no bad actors in the company. - Yep. - And then I have a CEO, or a GM that runs every one of these businesses. And typically they have an equity earn-out target. So they're highly incentivized. So anything that would be screwing over the business would be screwing them over as well. - That's a good plant to be. This is probably somebody from outside of us is asking. Danishferguson7679, "How do you run a business like this in a third world country?" - Oh man. - (indistinct) - Yeah, it's- - Sorry. - I'm not sure, as the U.S. is definitely land of opportunity that's here. The biggest thing that I would say, is if you are gonna start any kind of a business, all the same fundamental things are exactly the same. Depending on... - No matter where you are. - There may be more challenges, more regulatory issues to kind of go for, but find something that needs value, and find a way to be able to provide that value to those customers that need it. - So the last question is from flvflv4712. I was going to not get through that. "How do you get the actual knowledge, Brandon to operate a specific business? Window cleaning, lawn care, vending machines?" Like, they're going back to your experience. - Yeah. Well like I said, 80% of the businesses all kind of ran the exact same. - Mm-hmm. - So fundamentally, if you know how to do the marketing, how to do the sales, and you think of each part of a business in a certain framework, it's very easy kind of grow and scale that, you know, which is part of the thing that we do on even the course that was created with "UpFlip," was kind of figure out the framework components. And each one of those components is what you kind of do to kind of dial in a business in a specific niche. And then go out to other vendors that typically sell into those industries. And oftentimes, a lot of those vendors will have training programs for like specifically how to do that thing. So in our case with Wise Coatings, we went to a manufacturer that sold the products, and they provided us all of our initial training on how to do the actual services. - Yep. (lively music) I wanna go back briefly to your teenage period. - Okay. Sure. - You know, working with dad at 13, clocking in, working full time, what did you learn about specifically customer service back in that day? - You know, my dad was so amazing. He cared so deeply about all of our customers, and he cared so deeply about the quality of service that we gave to our customers. You know, and consistency is a big part that I've learned over the years matters most to customers. So anytime I build a business, I try to think about how can I put the systems in place, to where no matter who goes out there, it happens the exact same time as if it was the same person that was going out there. So that was a big part of our customer service design when we kind of laid out Wise Coatings, and all the steps and systems for that business. - Consistency. - Yeah. - Every business has a turning point, right? Whether good or bad. I'm curious about the business in 2012, the cleaning business you had. - Yeah. - What was the game changer for that business? Talk about the evolution of starting it, scaling it, and- - Yeah. So about one year into the business was when I got off the tools. - Gotcha. - So I hired my production employees that were going to take over all the actual cleaning work in the business, and that empowered me to actually go and work on the business instead of working in it. So for me, the reason why that was game changing is, you know, I kind of compare a business to an iceberg. You got the 20% above the surface, and 80% beneath the surface. So that 20 percent's the cleaning part, you know, how to actually do it, and the services that you offer. The 80% is everything else. So being able to hire someone full-time to take care of that part of it, allowed me to start working on, you know, all the other stuff in the business, the marketing systems, the hiring, you know, the resources that we needed to kind of keep that business running on autopilot. - Gotcha. Was it a financial moment a year into it when you're like, "Okay, now I can hire someone." Like what helped you make that step? - It was terrifying. - I bet. - I will preface it with that. You know? 'Cause when I let my employee go down the road for the first time, I was like the helicopter parent. - [Paul] Gotcha. - You know? - [Paul] Oh, that's me. - So the vehicle, you know, the first job I like snuckily followed behind them, and I was like looking at behind the bushes, and making sure they were using all the tools right, and part of the reason for that, the reason why it's so terrifying is yeah, you gotta let go of control. - Yeah. - Financially, I laid out a budget to just kind of verify and see, okay, if I pay them 40 hours a week, this is like my minimum sales threshold that I need to hit. And once I kind of saw it on paper, financially that it would work out okay, and kind of what that minimum thresholds were, then that was kinda like the, "Okay, I can do this." - Gotcha. - Yeah. - Talk to us about what happened next in the CEO role. I mean, from cleaning to now, working on the 80% on the business. - Yeah. What was that like? - So for me, basically, if you kind of take a look at all the different facets of the business, you have marketing, admin, production, and sales. So when I was able to delegate that part of the business off, you still have to make the phone ring on the marketing side, schedule the jobs, you know, do all the backend payroll, backend office stuff. And you still have to do all the sales side of things. So kind of my first responsibility was to make sure that leads still came in. I was going out and selling all the jobs at that point. So I still was wearing quite a few hats, and owned a few different departments still, but I could at least offload that production side. Next was hiring a sales person to make sure that all the sales were all taken care of. That pretty much just leaves you with marketing, to kind of, you know, systemize and automate. So as a CEO, you're kind of the executive trying to systemize these four departments that every home service business has to kind of systemize and put people and systems in place to be able to be absentee. So that was kind of my, my sole focus was instead of having a "to-do list," have a "stop doing list." So I'd write down all little things that I, you know, was doing on the day-to-day, and then just like, "Okay, what can I check off next?" - Right. - And finally work my way kind of out of a job. - I really like that. Do you guys have a "stop to do list?" (Brandon laughs) If so, comment below. You've mentioned earlier that you've made every mistake in the book per se. - Yeah. - Right? And it's good, 'cause it's a learning opportunity. - Yeah. - What two, three things that you can highlight as far as those learning opportunities that have shaped you, helped you be a better CEO, run the 80% of the companies, what do you want to highlight? - The biggest mistakes I made were around getting good people onto our teams, and then leading them in an effective way to understand what the vision of the company was, and to make sure that we were thinking about their dreams, their goals, their hopes. And originally, I was very self-centered with regards to what my dreams, my aspirations, my goals for the businesses are, you know, what was in it for me that I didn't think too much about my team members. I mean, I didn't, I didn't intentionally care enough about it to actually make those dreams become a reality. You know? And one of my big epiphanies that I had there, was that, you know, I had an employee that came to me and said, "You know, Brandon, I know exactly how much money you make." - 'Cause you're an open book? - Or because it's on the schedule. - Yeah. - Right? - Okay. - So it's like, you know, 1600 bucks, you know, $2,000 a day worth of work that's getting done. I'm getting paid this much, therefore you're taking, you know, $1,700 a day home. - Mm-hmm. - And they didn't know all the backend stuff that happens on the business side of things. So one of the things we did, is we just started teaching people how to read a profit-loss sheet. We actually sit down with all of our employees, showed them an example, profit-loss, and teach them line item by line item, all the things that were involved in there, and how they could actually have controls on some of the levers in that business. You know, "Hey, if you do all the door hangers every single time you do one of the jobs, we can lower our marketing costs." - [Paul] Right. - And then that could provide more budget for pay for techs. So those types of conversations are things that kind of help under, you know, have the teams understand the goals, and the visions of the companies, and get them to start thinking a little bit more like a business owner. - Man, I can see how huge of an impact that makes. And I appreciate the transparency by the way. You know? 'Cause you've started in a place where you weren't good at something. - [Brandon] Right. - You made some horrible mistakes. People walked away. - Yeah. - But we learned from that. And who you are today isn't who you were a couple years ago. - Yeah. - And it's amazing that what you're connecting, like even a simple thing as P&L, teaching your employees with P&L, will then help your bottom line. I'm assuming their bonuses go up in some way. - Yes. - Or form, right? - Yes. - So, if they learn that, everybody wins. - Yeah. It's better than just having, everyone gets paid dollar per hour, because the only way they can make more, is to work more hours- - As opposed to- - Which is not good for the business. You know, getting over-time and all that other stuff isn't... So being able to connect them with the performance, and even incentivizing them on the performance side of things directly tied to the profitability of the company, those things make a huge difference. - Tell us about your first hiring process for the cleaning business. How did that go? Where did you find a candidate? What did you learn? - Sure. Well, first was family and friends. (Brandon chuckles) - That's easy. - Yeah. - You would think, I guess. - Yeah. And there's, you know, there's pros and cons of that. Pros are, it's usually easy to find someone that's interested in coming and working with you, and coming, you know, it's easy to sell the vision to someone that already kind of trusts you a little bit. - Mm-hmm. - And, but the cons are, is that sometimes they may expect more, kind of getting into it at the ground level with you, than you are able to give them. So, first employee that I kind of brought onto the team very quickly, wasn't very long into it where he wanted to have, you know, benefits, and stock options, and equity options and things. And, you know, it really took me aback. Dude, I'm like, boy, I did kind of sell kind of some of the vision of where we would go, and what opportunity would look like, but he was just ready for it a lot sooner than the business was ready, to be able to get some of those things. So that didn't work out. - Mm-hmm. - Eventually, once I kind of turned over a lot of my friends and family members, I started to learn a lot more about how to actually go out and hire people properly, and how to use job boards, and, you know, use funnels, build those types of application processes, to where you have a a constant steady pipeline of people who are ready to apply. - You grew your cleaning business to $450,000 a month. Help us understand the trajectory of that growth. - Well, it happens kinda more like this, you know, where it slowed itself a little bit more. When I got off the truck, is when it really started kind of stepping up. And we also did a couple acquisitions. So we bought a couple- - I See. - local competitors in the area too. So the last couple years between some strategic acquisitions and partnerships, that's really where we skyrocketed a lot more quickly. So the last year that I was operating that business, we were adding a truck almost every single month. So it basically doubled and tripled every single year from the time that I started it in 2012. - Alright. Let's talk about why you left the cleaning business in the first place when that time came. Why did it seem like the right choice? - Well, a couple reasons. Number one, I was getting a lot of traction with the coaching side of the business. So while I was kind of doing that last year of All Clean, I was doing more and more coaching, and was looking to get more into that side of it. And so kind of leading up to that point, it just felt like the right transition to kind of go and switch up, and do something new and do something different. So the timing just kind of worked out. And I was actually speaking at an event, teaching how to attract and retain viciously loyal and productive employees. And in the audience, were two gentlemen who actually approached me and was like, "Hey, would you be interested in selling your company?" - Oh, wow. - And they took me out for lunch, and they gave me a really great offer. We weren't actively selling it, it wasn't for sale, but my wife and I were kind of sitting there, and my wife was like, "Yes, let's, let's take it." - I was gonna say, let's get your wife involved or anything like that. That's cool. - Yeah. And at that moment when my company really was struggling, and we had half my employees quit on me, that was, you know, during All Clean, my brother had committed suicide, and it was just a rough time period. My wife and I had some really good heart to hearts, and I promised her that I would build the business up to a point in the next five years I would sell it. You know, so that, because at that point in time, it felt like impossible to escape that situation. But it's kinda like when you fix up your house to sell it, and you finally paint it, and you kind of, you know, fix all the screws on the cabinets, you know, doors. And it's like you step, you step back and you're like, "Man, this place is beautiful." And then you sell it, and you kind of wish you would've kept it. - Yeah. - It was a little bit of that wrestling at the moment when it kind of came down to actually letting it go. I was like, "Ah, why didn't, why didn't I just keep this thing?" But I knew that I was gonna do another one, which is what Wise Coatings ended up being later on. - That's pretty cool. So you've scaled one of the businesses in a period of four months to six figures a month. - Yeah. - Like what's the secret sauce to that? What was the bottleneck also to kind of get through to get to that level? - The biggest bottleneck in growing the business, in my opinion, is the owner. - Hmm. - If the owner's not scaling up properly, replacing themselves in the day-to-day operations, very quickly, the owner becomes overwhelmed with all these tasks. So with Wise Coatings, I hired three people from day one. From day one, made sure that the sales was taken care of, the admin department was taken care of, the production department was taken care of. So removing myself from that bottleneck from day one, enabled that to be able to scale it very quickly. - And why do you think a lot of business owners don't? Is it, obviously, I guess it goes to money. - It's scary. It's scary. - It costs money to hire someone, and you think, "Uh-oh, is this too early, maybe?" - My argument would be is that a good employee never costs you money. They always are an asset that gives you an ROI. - Yeah. - So, like for instance, a salesperson, we pay our salespeople on commission. They're literally incentivized to be able to make more for the company so that they can earn their living. - Mm-hmm. - So in that case, salespeople don't really cost you anything. And so same thing on your other employees that you may hire. But it's fear, because it's like, "Well, if I take on this expense of employees- - It is. Yeah. - Will I have enough work to be able to keep them busy?" If you know the work's guaranteed, it's easier to go out and hire the employees. It's more than just praying and hoping that you're gonna have the work come in. You have to increase your marketing spend at the same ratio that you're hiring employees. It's like, you know, that teeter-tottering in growing a business, right? - Yep. For those who have a successful business and you're running it, what are you doing to find great top talent? Like, tell us about the hiring funnel, for example. - So we've built out a huge funnel for Wise Coatings. So what we do is, you know, like I mentioned in our previous episode, it's all about marketing. You know, what are those hooks that really kind of get someone that's interested in being able to come and work for you? And when you think about how many people are actively hiring at any point in time, the competition's really stiff. So what we do is we actually use ChatGPT to rewrite a whole bunch of different job ads and postings. And we post a whole ton of them on lots of different channels. Facebook, Indeed, job boards. And we kind of track which one gets the best response rates, and we kind of optimize all of our ad spend for those specific job ads and those funnels. Then we funnel them all through a process, and we take them all the way to a screening point. We use a platform called Hire Bus. And Hire Bus will actually screen an employee, and find out behaviorally will they be a good fit for this role. - Just takin' 'em through questionnaires and stuff? Yeah. - It's a one single question that they ask someone, and it literally, once they take that assessment, it gives feedback into whether or not they would be a good fit for that position on a scale of one to 10. - Before you even talk to anyone. - Before you even talk to them. - Yeah. Nice. - And then it moves them to, you know, virtual interviews in-person interviews, ride alongs. And at that point is when we kind of make hiring. But always be hiring. - Yeah. - Never turn your hiring funnels off, so that that way you develop a hit list of people. So if someone turns in their two weeks notice, or just doesn't show up to work, you can pick up the phone, and you can start calling down people that you've been interviewing for the last year. And that's how you can quickly kind of, you know, backfill positions as you need to. - Right. It's a well-built system. - Yes. A hundred percent. - Why epoxy? Out of all home services that you could have chosen from? - Yeah. - Why epoxy? - That's a good question. - That's the story. - That's a good question. I honestly kind of laid out a pros and cons list of a bunch of different home service businesses when I wanted to kind of start this new business from zero, and document the journey of it. But one of the things that kind of led me towards this was, you can do, you know, one truck with two technicians, three grand a day, and those technicians didn't have to have special licensing, or special type of certifications. You could get unskilled labor, and train them on how to do the process. And so the high tickets, good profit margins on that side was definitely attractive to it. It's a very, very satisfying type of a look. - [Paul] Is it? - It's not recurring revenue in the sense that, you know, we put down a floor, that's pretty much it. But the market's so huge, that if you think of any building that someone either works in or lives in, can have coating put down on it. And then indoor spaces, outdoor spaces, patios, pool decks, warehouses, industrial, there's so much work that's out there. It's insane. So the recurring part of it to me, was not a big problem, because marketing can overcome that solution to get those customers coming in, you know, kind of on autopilot and on repeat. So yeah, for those reasons it felt like the right one to do. So to be able to do a million dollars a year in revenue plus with seven employees is kind of a, a really nice little sweet spot of the business. - Yeah. You made it work. - Yeah, it's been good. - Talk about incentivizing team members to stay. We're talking retaining talent, ways to do that, systems to do that. What's it look like your company? - So we like to keep in mind an acronym called "AIR." That's Appreciation, Inspiration, and Recognition. Those things are what some of the, the number one top reasons why people quit companies. If they aren't appreciated, they don't feel inspired, they don't feel recognized for the work that they're doing. They feel like a cog in the machine. You know, they're just a number. They typically don't quit jobs, they also quit bosses. - Mm-hmm. - And so, you know, sitting down and taking a look at what are their hopes and dreams, what are their goals, and tying the business goals specifically to those. So, you know, if we have a team member that their goal is to buy a house, okay, well we're gonna sit down with them, and we're gonna teach them what is required, how much they need to have set aside for their down payment. And then even put together an incentive plan to be able to allow them to earn that deposit on their house, and have it set aside in their paychecks, et cetera. So coaching them on that side of it. We teach people how to improve their credit scores. We put them through Dave Ramsey Financial Peace University. So things that really level them up personally, is a big way to get people to stay, and kind of build up that culture, where they genuinely feel appreciated. Another way is provide growth. You know, show them, "Hey, this is a company on the up, not a company that's like flat forever." It's an opportunity. Yeah. - So, we sell a lot of the vision of, "Hey, you could come in as an employee, and you could go all the way to owning your own franchise." You know, be a business owner. That's very attractive. And then for some of my senior C-level executives, I typically will build out an equity incentive program, where they can earn equity in the company, provided they hit certain benchmarks and certain targets. And so equity is kind of like golden handcuffs in some ways. - Right. - You know, where once they get involved, and they're kind of bought in, they have skin in the game, then they stick around for the long haul to kind of realize that vision that you're looking to kind of set. - What are the best lead generation strategies for a home cleaning service in general? - Home service in general. So it varies by industry a little bit, but I'm a big fan of doing online digital marketing. So Facebook- - I know all about that. Yeah. - Google, you know, pay-per-leads, you know, different types of ad sets that you can get to just kind of drive engagement. So we built Wise Coatings largely off of Facebook ads, but it's interruption marketing, meaning that, you know, when people come into, and see this ad pop up onto them, they're not actively searching. So they're a little bit more, they're not as qualified of a lead, but through the sales process, and kind of the outreach engagement process, you can kind of convert them over. Direct mail has been a good success for us as well. We've also paid for some pay-per-lead types of websites like Angie, HomeAdvisor, Yelp, Nextdoor, some different platforms like that. - Safe to say to try things out. And then if they don't work, switch things out. - A hundred percent. - For somebody who is just starting out Brandon, and it's just limited resources, what are some free waste to start out? - Go knock on doors. It works if you have the right scripts. You know, even coming up to the door, and how you approach it, rather than just like knocking on the door, and just standing there like this, you know, waiting for 'em to open the door. Hello. But instead, when I'm talking to a customer, I'll have even back kind of turned, like I'm busy doing something. So, and then when they answer the door, I kind of take a step back away from the door. So it's a little more dis-arming. - Yeah. - And then my scripts of, "Oh, hey, I know you weren't expecting me right here. We we're just, we were just over next door at Mrs. Smith's house, and giving them an estimate, and I just wanted to stop by and let us know. We might be working outside. We'll be making a bunch of noise. Wanna be a good neighbor and let you know." And like, there's different ways to kind of segue into those conversations without it sounding super salesy. A really good free marketing system too, is also just reaching out to other home service businesses that offer complimentary services. So what we'll do when we open up a market, is we'll print off a list of every company in the area that is complimentary to ours, and we'll just cold call, we'll just introduce ourselves, see if we can get out exchange business cards. And we've had painters that will refer us six figures a year worth of work. - Wow. - Because they don't do this, but we can refer them wall work, and they can refer us floor work. - It's a win-win. - So when building that kind of complimentary service profile, it's a huge way to drive in leads. - Sweet. - How do you define success though in your life? How do you view it? - So first and foremost is time. So, time is the currency that you spend, whether you choose to or not. It happens every day, every minute, every second, you're spending that currency. You can gain money, you can lose it all, you can save it, you can get it back again, but time is, it's finite. - [Paul] Yeah. No one's printing more time. - No. And so a lot of people will trade their time to save money. You know, so they'll say, "Well, you know, I can figure this out on my own. It may take me five years to do it, but I'm saving the cost of having to go out and pay someone else to help me get there." Right? Me, I'm the inverse. I wanna think about how can I invest and use my my resources to buy more time- - As fast as possible. Yeah. - To accelerate time. You know, to collapse time down. - Yeah. That's awesome. - So for me, success is spending time with my family. Like right now, I work from home just about every single day. Most of the times that I travel, I bring my kids with me, or my whole family with me as well. - That's cool. - Okay. - That's awesome. - And so, you know, those types of scenarios for me, is what is most valuable is being able to be home with my family, be present with my kids, and spend as much time with them as humanly possible. The other thing I'll say that I measure success on is how much value I provide to others. - Mm-hmm. - So one of my favorite quote's is- - That's good. - by Zig Ziglar, "You can have everything you want in life if you help enough other people get what it is that they want." So if I take a look and say, "Wow, look at all these people that are getting value," the success happens. So if you focus on others first, and making them successful, that means their businesses have grown enough to enable them to do that, and because their businesses have grown, you know, our fees are covered. - Yeah. - So you focus on helping other people too. - That's cool. Alright. Since our last "UpFlip" video together, how has Wise Coatings revenue grown? Give us an update? - Yeah. We're doing about a little over $750,000 a month right now in revenue. - [Paul] Wow. Across 20 locations? - Yep. Yep. So some of those locations, they're just in process of kind of onboarding. - Amazing. - So, several locations are pre-revenue. We haven't done anything. Given this time in like three months from now, that number's gonna hit over a million. We're pretty confident- - That's solid. - as far as revenue goes, yeah. - But you had that wheel spinning already when we did the first interview. Meaning you had things lined up, you were talking- - Yeah, we had about 140 applicants in the pipeline. - Yeah. Yeah. - And now we have substantially more. - And then you got hit with a "UpFlip" train. (both men laugh) - The "UpFlip" train. - Bam! Here's 1500 more. - Yeah. - Let's find the best one. - It's been amazing. - That's good. - But the coolest part about it, is that we're able to be very, very ultra selective on who we pick. - Yeah. You have to be. - You have to be, because you know, your first 25 to 50 are the most important franchisees you have, because you're gonna be disclosing numbers to all future franchisees that come in. So you really wanna be careful who you partner up with to open up a location, so they have like a good, you know, chance of success. - Yeah. - And then they're coachable, and they'll actually follow the systems. - Yeah. - So there's a lot of, a lot of screening that goes on. - For those that don't know, you've gotten a incredible award recently, right? - Oh yeah. - It's the Top 100- - Yeah. - Franchises. - Oh. This right here? - Oh, it happens to be right here. Yeah, let's check it out. - Is this the one you mean? - Yeah. Tell us about it, because you know, it's not just a plaque, right? This is, this is a symbol of a certain level of achievement. - Yeah. We were super stoked to get this. So we got the Entrepreneur Top New and Emerging Franchise of the Year. - That's awesome, dude. Congrats. - So over 3000 companies, 3000 franchises applied for this, where we got awarded number 93 on the list. Nice. Good for you. - Yeah. And what they do is they take a look at benchmarks, actual financial performance, rate of growth. They look at the success of franchisees that kind of come into the business. So there's a whole bunch of things kinda get weighed into the mix on this. - [Paul] An in depth investigation sort of. - Yes. Yes. And we're one of the top floor coating companies out of all the categories. 'Cause this is every, you know, category. - Yeah. Yeah. - So, yeah, it was cool. - What does this do for business? Or is this just kind of a good feel moment for you? - It definitely feels good. - Yeah? - You know, people like getting awards, let's be honest. It definitely strokes the ego a little bit, and it gets people excited about it. But for us, I'd say it's really just more of a confirmation that we're... You think it's full of rocks or something there? - I don't know. I mean maybe there's some, you know, golden nuggets in there or something. - Yeah. - But there's definitely golden nuggets in this episode. - Ooh, Baby. Nice. Nice. - So. - Yeah. So it's more of just confirmation that we're doing the right thing. You know, we're focused on the right areas, and it shows that our philosophy of helping our franchisees first, that's the number one way that we can kind of continue to drive growth. - Dude, that's sweet. - Thanks, man. - Awesome. How do you ensure that your franchisees are successful? - So, one of the things we decided to do when we launched the franchise, we wanted to be very different. We wanted to kind of do go above and beyond what normal franchises do. So we set up every single system for them. We set up every single document, template, tool, resource for them to kinda get started. We paid for their, just about their entire tech stack. So all their software programs, we pay for that. We do their Facebook ad marketing, their Google ad marketing, their social media management. We take a lot of that heavy lifting off of their plates. We also have different specialty software programs that we use to ensure that like when they're out on the job site, it's actually recording them and listening to them, and providing some AI based feedback. - So you are dabbling in AI as well? - Yeah. - Tell us more about that. What does that look like? - Yeah, we use a program called Rilla. And what that is, it's an AI powered sales manager, where when the sales rep goes into the customer's house, he hits record on his phone, and AI listens to the entire conversation of both the homeowner and him. - Both parties know that. - Both parties know that. - I would assume. Okay. - And what it does is, it generates an AI summary of how the sales call went, which parts of the script and the sales process he missed, or, you know, glanced over, or which maybe the customer wasn't speaking enough at a certain ratio of like customer speaking versus the sales rep speaking. So it analyzes all that stuff, packages up together, and processes that you've built in Wise Coatings. - [Brandon] Sure. - Do the franchisees get the same amount of systems, same processes in place for them to do the same at some point in the business? Like is that- - Oh, yeah. - Is that the idea to share that with them as well? - A hundred percent. Even more than when I first started. So when I first started it, I didn't have a huge training video library on how to do absolutely everything in the business. Like we had to build that as we built Wise Coatings. So, you know, we have training videos for a technician, day one, when they come into the business, there's a huge video library, an LMS learning management system where they go through, and they learn everything there is to know about that job. Same thing for the sales position, the admin positions, the marketing side of things, how to hire and retain employees, plus the CRM, the technology, the automations, the software, the AI powered visualizer, the AI powered sales coach. A lot of those things it took us, you know a good year and a half, which, you know, we're coming on about two years now. It took us a couple years to kind of get all those systems put in place for franchisees to have it, and we were implementing those kind of slowly over the course of time. - [Paul] Testing and trialing. - Yeah. - Last time we talked to Brandon, I think we've had over what? 1500 people apply to be franchisees. - Yeah, that's crazy. - Since the last video was nuts. And you're probably wondering, "Well do we as "UpFlip" viewers, get some kind of a special deal exclusively just for you guys? And I'll let Brandon speak to that just briefly. - Yeah, "UpFlip," you guys are the only ones that we have this for, but we actually have an exclusive discount just for "UpFlip" viewers, and we've had huge amount of interest since the last video that we had as well. So. - Yeah, just check out the details and the description below for more information. What is your leadership style today? How would you define it? - Definitely a servant leadership. So most of my calls that I have with anyone on my team member is, how can I help you? You know, how can I free up more time on your schedule? How can I give you more work-life balance? What's currently stressing you out? What's keeping you up at night? And the reason why I like to kind of focus on that, is usually those pain points identify something that's broken in the business. Because a lot of my leaders on the team, they should be able to have enough time, and free space to be able to think strategically rather than just being involved in the day-to-day side of things. So most of the times I meet with my CEOs, my GMs, my COOs, my C-level executive teams, and then they of course meet with everyone down beneath their teams. So my thinking is a lot more providing the vision, helping them kind of, you know, figure out stuff, kind of coaching them in certain areas, but for the most part, just figuring out how I can support 'em. - Gotcha. You've had quite a bit of moments in life that were tough moments that could break or make someone. You know, a loss in the family. There's some financial things that you've lived through. I'll let you highlight whatever ones you want, that really shaped who you are today as an entrepreneur, as a husband, as a father, what do you wanna talk about? - Yeah, well, on the financial side of things, you know, losing everything so to speak, was devastating from a standpoint of, with my construction business, we went bankrupt. I mean, nearly went bankrupt. We didn't declare bankruptcy because I refused to, but we were 50 grand in debt after that business closed, I put my daughter's birth on a Nordstrom credit card. We went on food stamps, which is one of the most humbling things that's ever happened to me in my life. You know, you feel like a failure as a dad, as a husband. But oddly enough, like even though all those things kind of happened, we were still happy. My wife, my daughter and I, we still had tons of amazing moments, and precious memories during that time period. And so for me, it really kind of broke the disconnection of that money and things is what brings happiness. And I could lose everything all over again, and I'd still have my family and I'd still be happy. So things have never been a big motivator for me as far as like growing a business. Or I want to buy this really nice car, or I want to like have this yacht, or... That's never been my motivator. And so I think in a lot of ways that's taken a lot of fear away from taking larger risks. You know, I'm okay risking everything. And if I'm gonna lose it all, oh well. So be it. I've already been there and it wasn't terrible. I mean, you know, it was hard, but- - It's a way to live through it. - We were still happy. My brother, losing him was hard. So he was eight years older than me. This was when I owned All Clean. He was working for me at the time, and he took his life. - Oh, man. - And it was, it was probably one of the most difficult moments of my life kind of, going through that time period, because we were very, very close, and you know, the feelings of guilt, and I wish I could have, and I wish I should have. All that stuff kind of came along there. And so I had to deal with, you know, the grief of losing him, deal with the challenge of losing the team member in my company, and having to backfill that role. And that was actually one of the points where it led up to half of my employees quitting on me, because I just became very, very disengaged. So those types of things that happen in life, you can't control them. You don't know when they're gonna kind of hit ya. So, you know, we've had some of our coaching clients that they've had really terrible moments happen in their, in their personal lives, but they had the teams in place to be able to completely step away, and their business still be able to run. And for them that was a massive blessing, and that value is more than any money, you know, kind of provide them because it allowed them to be with their loved ones during those moments. So big lessons on those sites. - That's cool. - Yeah. - Thanks for being vulnerable with us, Brandon. - Of course. Yeah. - I think it matters a lot. So what is this business framework that you personally live by? - So the framework that I like to follow is called, "M.A.P.S." So four departments every home service business has to systemize to be able to run on its own; marketing, getting all the leads coming in, admin, scheduling, answering the phones, dispatching, the backend payroll, all the backend office side of the business, production, having the vehicles, the equipment, the inventory, the technicians to be able to go out and actually perform the services that you sell. And then sales. So sales is converting all those leads into actual, you know, good paying jobs, high average tickets, closing ratios, all that stuff. So, when you kind of think about growing a business that can run on its own, you have the marketing leads come in, the sales convert them over to jobs, the admin team schedules those jobs, the production crews go out and complete those jobs. You as the owner, as the executive, are kind of putting people to own each one of those departments, as well as systems in each one of those departments so that it can run on its own. So, being very intentional with, you know, these five stages of business that can go all the way from being on the truck to a fully absentee owner, means delegating each one of those departments off to somebody else. - Which sounds simple, I would say, right? But it's important to have that in place, like a plan, M.A.P.S. - That's right. - Three, four acronyms, and that's how you live by. But it's not easy. - Yeah. I'd say the toughest part behind it is just kind of the fear of the unknown. You know, getting that, those big leaps of faith of hiring those people to kind of own those departments, and being very intentional about how you hire people and get them onto your team, I'd say is probably the toughest part about, you know, following the framework. - Tell me about three to five books that are worth reading. - "The E-Myth," Michael Gerber. Yeah, that one's- - The big one. - That one was a big game changing one for me. "How to Win Friends and Influence People" is really good on just like leveling up on your people skills. We have a lot of our managers and partners kind of read that one as well. Alex Hormozi, "$100M Leads," Or "$100M Offers," and "$100M Leads." I'm a big Alex Hormozi fan. - You're a reader. - I am. - What role do books have in your life? Just in a nutshell, just coaches, right? But what else? - You know, there's a quote that I heard that someone said, where "Reading a book is like consuming someone's soul." - Whoa. - So like, you know, imagine someone having a lifetime of all of their experiences, and them trying to condense it down into a format that you can digest in five to eight hours. - Mm-hmm. - And like when you do that, you're literally consuming like their soul. So for me it's like, "Okay, alright, let's go eat some souls." - There you go. - I know that sounds really weird, but- - Lets go eat some souls. (both men laugh) Do you think someone with no experience, not a lot of money can get into the home servicing industry? Where would they start? - Oh yeah. - What would you do? - Absolutely. What you have to do is, so there's two different marketing channels. There's paid marketing channels, and then there's BOG marketing. BOG marketing stands for "Boots on the Ground," getting out there and pounding the pavement, knocking on doors, building relationships. And you don't have to go out and spend a ton of money on branding like we did, you know, at the, from the very beginning. You can start out small, because when you're kind of small in that space, most customers care a little bit more about who the person is, and who the owner is that's coming out. If you're doing a lot of door to door marketing on that side, they just wanna know that they can know, like, and trust you when you're actually providing those services. And then you can go out and you can rent equipment to kind of get things started up. I've seen people start window cleaning businesses with literally a hundred bucks worth of supplies from Home Depot, and then just go out and knock on doors, and start kind of building up some routes, building up some things. Once they get a little more cash though, you wanna make sure you're reinvesting that back into the marketing side. - That's the key. Yeah. - And, you know, reinvesting back those profits into the business. So if you're gonna start out from nothing, you have to understand it's gonna take you a while before you start getting a lot back. Because especially if you wanna scale up big and scale up quickly, you have to run pretty lean as far as what you pay yourself out of the business. - If you could go back to your 18-year-old self- - (Brandon chuckles) Yeah. - What's one piece of advice you would tell yourself? - Oh man, - I know, lots. - Yeah. I think probably one of the biggest things is, go find people smarter than you to tell you what to do, and hire them into your company. It took me years to understand that. And when I first kind of started my business, you know, I took a technician, and then I'd promote them to a sales person, I'd promote them to, you know, a production manager. And they didn't really have that skill set or expertise to be able to handle those areas. And so being able to go find people that can come into your business that are than you in those areas, or better than you, and they can tell you what to do, hands down, has made my other businesses grow that much faster. - That's awesome. Any last words? Pieces of advice, tips, success? - Yeah. Come partner with me. (both men laugh) You want a Wise Coatings location? Let's go. Let's talk about it. - There you go. It's been a pleasure, Brandon. - Cool. Thank you. - Thank you. Appreciate it. - Well, that's a wrap, you guys. I hope you enjoyed this episode. If you're interested in starting businesses, make sure to check out episode 75 with Mike Andies, who shows you how to start a business from scratch, step-by-step. Take a second to like and subscribe,
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Channel: UpFlip
Views: 109,349
Rating: undefined out of 5
Keywords: epoxy flooring, epoxy, epoxy garage floor, garage floor epoxy, epoxy flooring for homes, epoxy floor, garage floor coating, garage floor, epoxy floors, garage flooring, diy epoxy floor, epoxy flooring garage, epoxy flooring black, floor coating, flooring, concrete coating, epoxy garage floor coating, metallic epoxy floors, how to epoxy floors, epoxy floor peeling, epoxy flooring business, epoxy garage floor before and after, best garage floor coating, upflip
Id: LY3TwTyuBmc
Channel Id: undefined
Length: 52min 56sec (3176 seconds)
Published: Tue Apr 30 2024
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