Q&A With Tommy - Elevating Your Workforce in 2025
The Home Service Expert Podcast
Deep Dive
What percentage of revenue does Tommy Mello recommend allocating to marketing for aggressive growth?
Tommy Mello recommends allocating up to 30% or 35% of revenue to marketing when aggressively growing or greenfielding a market to take market share.
What is Tommy Mello's approach to evaluating and improving team performance?
Tommy Mello suggests creating an org chart, rating each team member on a scale of 1 to 10, and focusing on top-grading those who are not a 9 or above. Leaders should also ensure they are performing at a 10 out of 10.
What is Tommy Mello's strategy for budgeting and vendor negotiations?
Tommy Mello advises setting aggressive but achievable budgets, negotiating with vendors for discounts by prepaying marketing expenses, and using tools like gas cards to track expenses and prevent theft.
What are the key KPIs Tommy Mello focuses on for field managers?
Key KPIs for field managers include gross profit, cancellation rates, on-time job starts, review collection rates, and minimizing callbacks. These metrics help ensure operational efficiency and customer satisfaction.
What is Tommy Mello's advice for scaling a home service business part-time while maintaining a full-time job?
Tommy Mello acknowledges the difficulty of scaling a home service business part-time while working full-time. He suggests focusing on leveraging time, money, and people but notes that it’s challenging to manage both effectively.
What are Tommy Mello's top priorities for first-year business owners?
Tommy Mello’s top priorities for first-year business owners include hiring a part-time executive assistant, focusing on generating reviews, and hustling to build the business through networking, yard signs, and community engagement.
What software does Tommy Mello recommend for scalable bookkeeping in an HVAC business?
Tommy Mello recommends Intact for scalable bookkeeping in an HVAC business, stating it is far superior to QuickBooks for growing companies.
What is Tommy Mello's approach to hiring branch managers?
Tommy Mello prefers promoting from within when possible but is open to external hires if they are the best fit. He emphasizes selecting the best candidate based on their ability to execute, regardless of whether they are internal or external.
What is Tommy Mello's perspective on expanding into commercial services?
Tommy Mello believes in hyper-focusing on residential services rather than expanding into commercial, as it requires different systems, vendors, and operational strategies. He prioritizes scaling residential services in untapped markets.
What are Tommy Mello's top book recommendations for roofing companies?
Tommy Mello recommends 'Go for No,' 'What Should We Do?' by Joe Crisara, 'The Seven Power Contractor' by Jim Al Levy, 'Branded Not Blanded' by Dan Antonelli, 'Who Not How,' 'E-Myth Revisited,' 'Think and Grow Rich,' and 'How to Win Friends and Influence People' for roofing companies.
- Rate each team member 1-10 to identify areas for improvement.
- Set aggressive but attainable budgets based on bonus structures.
- Negotiate with vendors for discounts by prepaying.
- Implement strategies to improve time management and organization.
Shownotes Transcript