Hammer & Grind : Built For Contractors
ExplorePodcast overview and latest content
EpisodesBrowse the full episode archive

Podcast

  • Explore
  • Episodes

Recent Episodes

  • EP286: How Contractors Can Calculate True Labor Costs and Boost Profits
  • EP285: How to Stop Costly Estimating Mistakes for Contractors
  • EP284: Bad Pricing, Scope Creep, and More: 7 Profit Leaks Hurting Contractors
  • EP283: Stop Making Short-Term Decisions That Kill Your Construction Business
  • EP282: Creating a Mission-Driven Workforce: Contractor Advice for Employee Engagement

Links

  • Apple Podcasts
  • Overcast

About

Hammer & Grind : Built For Contractors

Hammer & Grind : Built For Contractors

Powered byPodRewind
    Hammer & Grind : Built For Contractors
    Episode•March 10, 2025•55 min

    EP209: Design, Build, and Thrive: Lessons from Nikita Petrov on Running a Successful Construction Company

    The idea of competition is frequently highlighted as a key motivator for success in today's fast-paced business world. On the other hand, Nikita Petrov's experience provides strong evidence for a different viewpoint: trust creates value rather than competition. In fields where reputations and personal ties play a large role in influencing customer choices, this principle becomes even more important. In this episode, Brad and Nikita talk about: The significance of company culture Lessons learned from the 2008 recession The seven pillars of an amazing culture The role of transparency and communication Strategies for small businesses to improve culture The importance of curiosity and positivity in leadership Mentioned: Facebook: http://www.facebook.com/clsnikita/ Instagram: http://www.instagram.com/nikitaypetrov/ LinkedIn: https://www.linkedin.com/in/nikita-petrov-b09976168/ TikTok: http://www.tiktok.com/@clsnikitae Link to Resources: Grab Brad's tell-all book: The Contractor Profit Blueprint https://thecontractorprofitblueprint.com You've been invited to check out Job Tread! https://www.hammerandgrind.com/jobtread Help us get the word out to other contractors by leaving us a review or sharing our podcast! Hosted on Acast. See acast.com/privacy for more information.

    Apple PodcastsOvercast

    Transcript

    0:03

    If you don't know how much money you're making or how much money you're losing or your overhead, don't spend a penny on ads. That's what you should focus on, understanding your numbers before you do any of that.

    0:14

    Hey, it's Brad here. And before we get into the show, I want to tell you about the show sponsor. Now, I personally use this company in my own business. And so I was thrilled whenever they reached out and said they wanted to sponsor the show. Today's sponsor is JobTread. JobTread is an all-in-one construction management software. JobTread streamlines processes for builders and contractors from estimating and scheduling to job costing and invoicing. With JobTread, you can create precise estimates quickly. improving the chance of winning jobs. And their dynamic scheduling allows you to keep projects on track with Gantt charts and scheduling tools. JobTread also allows you to collaborate with teams, vendors, and clients in one location. No more missed information. Who said, she said. It's all in one location. And their API integration tools connect with your favorite software like QuickBooks Online, Hammer CRM, or any other API. friendly apps. JobTread is perfect for builders and contractors of all sizes. Whether you're a solo contractor or run a large team, JobTread scales to fit your needs and works great for remodelers. home builders, deck builders, pool builders, and general contractors. Try JobTread today and learn how it can help streamline, manage, and grow your construction business. Visit JobTread. com or click the link in the show notes for more details. Now let's get to the show. Hey, welcome back to the show. I have another special guest with me today, Nikita Petrov. Welcome to the show.

    1:54

    Thanks, Brad. I appreciate you having me on, man.

    1:57

    Absolutely. We'll get into some more details, but just give us kind of an overview, a 30,000-foot view of what it is that you do. And, yeah, let's just start there.

    2:07

    Absolutely, man. So my name is Nikita. I'm in Charlotte, North Carolina. I have a construction business called Outdoor Influence Design Build. We specialize in outdoor living, high-end Cherokee. We're a design-managed company. We do a little south of $3 million a year. And I also have a marketing agency called Contractor Lead Solutions.

    2:26

    Awesome. Now let's get into your background a little bit because I know that you are not born in the U.S. Is that right?

    2:33

    That is correct. Absolutely, man. So my kids will be first, Jim, but I came in 2011. My family was very blessed to get a green card. I'm from Kazakhstan, Asia. Everybody just usually says this word Borat from. Yes, it is. So that's one good thing about it. But we came here and, you know, this is completely different world from where I come from. I mean, everything from the culture, the opportunities. So that's kind of where my hardworking mindset comes from because I've seen my parents work for it so, so hard to give us this opportunity. And, you know, we came here and I was young. I didn't really, it took me a second to adjust to the culture, the language. I only spoke Russian back then, but with time learned everything. And for example, you know, where I come from, college wasn't really a thing. we had three universities in the town where I came from, which was the capital. And it was either go medical, engineering, or construction. And that was it. Here, everything's completely different system-wise. And I started cutting grass back in the end of my middle school days, just working for somebody, just part-time on weekends. And slowly... With them, learned all the landscaping and barely, barely any hardscaping, just like flagstone patios. And I started my own business when I was about 21.

    4:02

    What year was that?

    4:04

    So I was actually, I lived up in Boston. for a year, reffing hockey, like D1, D3 hockey and very minor pros. And whenever COVID hit, I decided to move back home to Charlotte, North Carolina because the rent up there was just so expensive. And the only thing I knew back then was how to cut grass. So I slowly started advertising for landscaping services. And looking back at it, it was big time shiny object syndrome. I was like, I want bigger jobs, bigger projects. And that's where I started to step up into hardscaping patios, walls, and then eventually got into pools later on.

    4:43

    Awesome. So you started your business in, was it 2020?

    4:48

    2020, yes. It was officially incorporated. Paperwork is November,2020. Okay. I

    4:55

    got you. And then we went through COVID and all that right tomorrow. So gotcha. Okay. Or no, wait a minute. You said 2020. So that was the end of COVID, wasn't it?

    5:04

    Yeah. So COVID happened in March and I came in and it was very much booming market, which of course I didn't know. I didn't have the experience, but I realized opportunity-wise this was kind of something I needed to capitalize on, whether it was low interest rates or demand for everything. And that's when we started to really... push things into bigger jobs.

    5:27

    So when you started your business, did you start out just doing like basic landscaping or was it just lawn care? What did you actually start doing?

    5:34

    So I had a 2011 Toyota Camry and a five by eight landscape trailer. And I got a few lawn care clients and I would rent a mower for like two days and do two days of lawn care. And the rest of the week I would do landscaping projects. And my first big break happened. I will never forget it. I sold the job for like $2,400, which I thought was the highest amount of money in the world. I thought I was on top of it, man. I was living life. And it was to clear this hill in the backyard property of a homeowner. And, you know, I needed to rent a skid steer and et cetera. So, you know, after a few days, the job's scheduled. We pull up to the job site, and it's me and a family member of mine. And the family member looks at me. He's like, where's the driver? And I was like, I'm the driver. And I've never driven a skid steer the whole night before. I was watching YouTube videos on how to control it. And the videos I was watching were joystick ISO controls. The skid steer came, it had the foot pedals. So I had to completely kind of scratch everything. And on top of it, the first time it rained the night before, which I didn't really think anything of it. So we went downhill and I was stuck down there for like an hour and a half after. But yeah, we managed to get it done, of course, but that was like the first time that really opened my eyes to like, hey, maybe there is something here other than like $60 lawns.

    6:59

    So did you start focusing more on landscaping after that?

    7:03

    Yeah, it came. I, you know, even back then, for example, right now, Instagram and Facebook, the aspect of social media, you see all these fancy jobs and crazy stuff. I wasn't following the big guys in regards to doing these like half a million dollar backyards, but I was just following some landscape guys. And I was like, okay, they can do these jobs that are like five,10,000. I totally can too. And I started targeting with that. Back then I didn't know anything about ads. I knew a little bit about Facebook and Instagram, wasn't taking it seriously. So I really approached more of a, like next door and Yelp and stuff like that. And like Thumbtack, you know, the worst apps there are for leads.

    7:46

    Yeah. Actually, people don't realize this when Thumbtack first started and they were pretty much trying to establish themselves, it was worth it because you would get a lead for like 50 cents, you know, and it would, it'd be a real good lead. But once they started bringing on, you know, private equity firms and trying to actually grow it, then it just got stupid. But yeah. Okay. So, so you started doing that. You started selling a little bit bigger jobs, more landscaping, probably a lot of flat work type stuff, or was it all like green, you know, shrubs and stuff like that. Like, what did you get into the hardscapes yet?

    8:20

    Or I didn't get into the hardscapes for a bit. So it probably took about maybe. six months of landscaping, like mulch and landscaping. And, you know, it adds up. There are jobs that are 5K,10K. But then I got an opportunity just to homeowner. They were like, hey, do you do hardscaping? I was like, yeah, yeah, totally. I do this every day, years in the industry. And I've never done a patio. I've never done a retaining wall. And they had this. this really garbage patio which was just like one by one low style pavers just kind of dropped not leveled nothing and then a railroad tie two-tier wall so i came out there and i'll this was another interesting story so i came out there and after that i took some measurements elevations i called a few kind of industry acquaintances that i knew and i asked them for help i was just like hey i have an opportunity to bid this can you please help me out and they did And so I submitted a bid, which was, let's say, $30,000. It was right around $30,000. Maybe like a week later, a woman, super nice lady, super nice lady with her husband, they would like to review the quote. I go out there. I tell them everything in detail, all good. Two days later, she calls me. She's like, Nikita. So I had two other people come out. One of them gave me a bid for $10,000. And immediately, it was so cheap. I just wasn't confident in it. I told them, no, thank you. The second bid was for $20,000 from the Russian guy, this Russian guy who didn't speak any English. I didn't feel that it was safe to have him near my kids. So we're going to go with you and get this done. And that's how I got my first landscape job from zero to 30,000. Hardscape job, excuse me.

    10:09

    Now, if you're listening to this right now, I want you to, there's so much gold in what you just said that it may have just flew over people's head. You had the customer telling you that there were two other contractors. One was at 10, one was at 20, and you were at 30. So literally $20,000 more than the cheapest bid out there. And they hired you because they trusted you to get the job done correctly, even though you were the highest. bitter. So just to like all the people out there saying, well, there's too much competition and everybody undercut you and under bid you and all that. Like that's nonsense. We have evidence right here. Nikita just showed it to us.

    10:44

    It is ridiculous, man. I see, you know, a lot of young people now reach out to me because they see the projects that we post and they're like, man, you know, I'm struggling with this. I'm struggling with that. And if you. In my opinion, if you surround yourself and you have that mindset constantly of the scarcity or a lot of competition or whatever, that's just what's going to happen. And even back then, we tried to kind of carve our own little niche market. Like, we weren't going to be the cheapest, but we will do the best job by far. And I can confidently tell you once that probably four weeks process of getting out on that job, submitting the bid and getting the actual job done. I've learned more about paper patios and retaining walls than anybody out there.

    11:31

    One thing I love about immigrants who come here and start construction companies is that you guys aren't afraid to go big. You know what I mean? Like, and you'll figure it out. Like you'll take off something way bigger than what you know how to do, but you'll figure it out and you'll make sure you deliver at the end of the day. And so I've just noticed that I have some clients that are, immigrants. And I think because of the perspective, you know, of where you come from and then the opportunity you have here, it just, it's a different dynamic.

    11:59

    No, absolutely. It's just, it's two different worlds. And a lot of people, especially that are born inside the United States, they really don't understand the opportunity they have to achieve these, you know, goals. And just like the basic concept of democracy that's existing in here, like where I come from, you either know somebody and that's, that's your only way to go up. Other than that, you're going to be stuck at a dead end job no matter what you do. So that's why my family made the hard decision. They moved here. They didn't know anybody, not a single soul here. And my dad, he was working as a, he had two jobs. And one of them was like with an American company and he was making good money, great money. He moved here. He started truck driving, never saw his family, but that was his first way of like making money. And my mom, that's another perfect example, she actually worked as a, like a stocker, stocking shelves at Walmart at a night shift. And she did that while she got into a local community college. She took some basic classes because we had to pay the bills no matter what, you know? So she took some basic classes. She applied for the dental hygiene program and then did that. And now she's a dental hygienist. My father works at a big bank as a business analyst. And it's just a perfect example of Kind of like a story that you hear all the time that immigrants come here with nothing, they work hard for it, and they get it.

    13:20

    Yeah. Yeah. I mean, it's just a, again, I think it's just that perspective of coming from something that you don't have into tons of opportunity versus being born here with just unlimited opportunity around you and not taking advantage of it. So it's just an observation that I had. So let's shift to like present day with your company. What are you guys, like how many guys are you running? Like, give me an idea of your business now.

    13:44

    Absolutely. So present day, we're a design managed firm and we only have, including myself, formally on paper, two employees in the company. It's me and then my fiance, she's the designer. I'm the builder guy. Like I learned Spanish, so I'm trilingual and just do, you know, opportunity to connect with subcontractors much easier. And I can tell her how to build anything. She handles the design side because I know nothing about the design. I don't understand how to bring these materials, styles, flow, and everything together. And she is just amazing in that. So we control everything. I'm a, I like to say, very high-paying project manager also. And what we do, I would say an average project that we do is about $250,000. And we specialize in doing outdoor living. Majority of our projects,90% have a pool as the centerpiece of the backyard. And then we do everything around it. So whether it's the patio, the landscaping, fire pit, kitchen structure, fence, irrigation, sod, we do all of that. I got my general contractor's license for exactly that purpose. And that's kind of where we are now. And we only do maybe at once, we do three to four projects. I do not want to be doing more than that. I just want to be there every single day that the guys are on and just control everything. I have a little bit of OCD with that, but it's worked out well.

    15:11

    So essentially you sub everything out then, all your labor?

    15:14

    Correct. So we do self-contract everything out. And I actually, initially when I got into pools about two years ago, we had 20 employees. And my idea was I worked as a subcontractor doing pavers, paver patios, excuse me, around big franchise pool companies there in the area. Because my goal was, hey, I'm going to do this and I can learn how they do it. So with time, I saw the process. I saw how they do it. I got the context. But I thought I was smarter than everybody else. So what I did was. hey, these guys subcontract everything out. That's just how big franchises are. They just have a project manager who handles it. I thought, hey, let me be smart. I'm going to in-house the labor. And it worked out for a bit, but whenever you looked at the overhead that was necessary to start another crew, the brand new truck for 70K, brand new machine for 70K, another 30K in tools, and then the hard part was finding reliable employees. We did that for a little while and my stress levels were so high. We decided, Hey, let's pivot to the design, like manage model instead of design build.

    16:29

    When did you make that pivot?

    16:31

    About two years ago, we decided to do that.

    16:34

    Okay. So do you have, I know people listening to this and have questions. Do you have like dedicated subs that pretty much just work for you or they have other jobs that they do and you just use them as needed?

    16:46

    They do other jobs and we just use them as needed. The few subcontractors that... So for example, for each part of a pool, there's like the excavation, steel, shock creep, plaster, and so on and so forth. I usually have about three companies of each. They're a very similar price range, almost the same, honestly. And I usually message them and just see their availability on things. Whoever is able to get there quicker. And that's how I approach it.

    17:16

    Makes sense. And then obviously some of them have more capability than others. So if they need, you know, if it's a big job and they need lots of equipment, this guy may be better suited than the smaller guy or whatever. So you have that ability to kind of place them in there. Another question I know it's going to come up. Have you had a pushback from clients who don't want to have subs? Like they want all employees. Can you talk about that a little bit?

    17:40

    Every single contractor that's ever, like I've talked to about pools, about my business, ask for advice. They always have that question because their fear, they want to pivot to that model, but they fear that. And at first, even I was afraid of it. So I would give the guys like all brand new shirts in the morning. So they're all like outdoor influence decked out and et cetera. But very quickly, I realized nobody cares. Absolutely no one has ever cared about it because what I kind of. What my solution came to is that the only thing they care about is that the job done on budget, on time, and you're communicating with them. As long as you're communicating with them about everything that's going on, they couldn't care less. And that's what really opened my eyes to this business because I've had the same fear. I thought, oh my God, they're going to say, Jose is out here. Who's Jose with? Or somebody has another company truck sticker. But that's just not the reality of it.

    18:40

    Well, and especially when you get into bigger projects, like, you know, most people are going to realize, like, you're not going to be able to specialize in everything. And so it makes sense you're going to have some subs out there, even like for like when I did remodels, I didn't do the plumbing. You know, we didn't do the electrical. We did some of the other stuff, painting, drywall, tile, framing, things like that. But we didn't do the mechanical stuff. So, yeah, I mean, I think that's just to be expected. It's such an interesting dynamic. because I talk with a lot of contractors and this is, you know, a fear of this is like, well, what if they ask me if I have employees, you know, do you have employees or do you have subs? Like, I don't think that conversation maybe came up one or two times in over 11 years. You know what I mean? Like it's not a 75% of the people are going to ask that question. It's like 2% of the people are going to ask you that question.

    19:28

    Exactly. I couldn't agree with you more. And you know, originally when I went into it, honestly, my goal was to build custom homes. I wanted to build homes for myself, for homeowners, but as my own business. And I thought about it like one day randomly. I was like, you know, I don't think any of these builders have any in-house traits, which is true. They really don't. That's how they have the project manager. who handles all of it. And when you look at an outdoor living project, it's the same way. This is practically a small house, especially with the way pricing has gone up. I mean, we're talking an average project being quarter million dollars. And they just want to see the job done properly, on time, on budget. They do not have any questions about who's actually doing it.

    20:14

    Yeah. And a lot of these people, if you're doing projects of that scale, I mean, these are wealthy people that... are probably business owners, top executives, people that are familiar also with like hiring vendors and subbing things out like that. They're, you know, they're familiar with that. So it's just interesting. I know a lot of people say that. Okay. Let's talk about how you kind of built your brand up a little bit. How did you initially, I know we talked about the thumb stacks and all those, but how did you start acquiring a lot of your customers as you started growing your business?

    20:43

    So whenever we transition into specifically pools, for example, which is what we do now and for the last two and a half, maybe three years close, we've been doing pools as like the focal point of everything. We started looking at Facebook ads, Instagram ads, and social media just in general. Organic, it was hard to justify doing SEO from perspective that SEO obviously takes time, but... We just went from lawn care to hardscaping to pools. And I still had that idea of homes. So it was like, I don't want to invest six months of my time, a good amount of money with an agency or whatever it is, and then have to pivot hard. And Facebook ads, I can tell, honestly, right now, I could run ads as a home builder and I'll get leads for home builds. I can be whoever it is on social media like that. We worked with an agency originally. And I learned very quickly that the barrier to entry for the agency space was the floor. I mean, I would get spammed. I'm talking probably 10 to 15 messages, like kind of all over, whether it's like Instagram, Facebook from just cold DMs. hey, do you do hardscaping? Hey, do you do pool building? And of course, me being a young business owner, of course, yeah, yeah, I do. How can I help? And they're like, well, we can help you get more leads. Like, oh my God, please stop. And we worked with a few different agencies and we found one that did it decently, but the communication was horrible. And I learned quickly that they were a very big agency. They did a solid job, but the way it worked is the ad would be great for, let's say, two weeks. that performance would kind of slide down for two weeks because they aren't updating anything. They're not optimizing anything. And then I reach out to them, but the reach out and change of things would take another like three to four weeks. So that's what really pissed me off. And that's when I kind of decided to take things into my own hands and test with that. And social media, like organically speaking, posting on Instagram and Facebook for me personally was an absolute goldmine. I distinctly remember. I had, at the time on my business page, I had maybe 1,800 followers. And I would just post every day stories of me at a project, short-term videos, the basic stuff. And we got a DM, hey, I'd like to get a pool. Can you guys come out and give me a quote? We got a project from that, which was $165,000. And then she recommended us to two of her friends, which was another $200K in revenue. So right there, $360K organically. from Instagram, from just for free. It's crazy. The social media aspect and the power there is just absolutely insane.

    23:33

    So how long would you say you were posting on social media organic stuff before that call for that pool came in? You remember kind of a timeline?

    23:41

    Yeah, I posted every single day for about four months maybe. And personally, that's... Totally worth it. Like in my opinion, totally worth it. Because a lot of contractors, that's the biggest excuse that we see all the time in our industry. I really don't have time. I really don't have time. I'm very busy. I can't post anything. Dude, take out your phone at a job site for 10 seconds. And all you do is you just record exactly what you're looking at, point your finger maybe three times, and explain what's going on. It's not rocket science. Come on.

    24:14

    Yeah. I have this. conversation almost daily. The problem is it's not, you don't get instant results, right? Like you have to go into it knowing that this could be a three to six months of, of consistent work before you get your first lead from it, you know, but like you, you got, it was $165,000 project. I think it's worth, you know, posting every day for four months, in my opinion.

    24:39

    Absolutely. I couldn't agree more. And I understand, you know, a lot of contractors in just the overall contracting industry are kind of older generation. So they may not be inclined like best with social media. And then, of course, there is so many different platforms. And it's like, do I focus on one? Do I do all of them? So that's a big question always.

    25:00

    Yeah. I mean, you can always repurpose stuff. You can, you know, there's all kinds of AI things that can do stuff automatically. I mean, there's ways to automate it and make it easier, but at the end of the day, you still have to make the content. Or if you have the ability, hire some, you know, high school kid or college kid to come and record. Like it doesn't have to be rocket science. I think it's this idea is like, it has to be perfect. You know, one of the things in my coaching group, whenever people are like starting to record, I'm like, Hey, post it. You know, if you're going live or recording video, post it in our group, our private group, and we'll give you feedback that way. You're not out there just making a fool out of yourself. But I mean, it's like three weeks to get somebody to post one video.

    25:40

    I completely agree with you, man. And I get it. It's like awkward, I guess, talking to a camera, like whether it's in a room or out there. And then like you say something, you're like, I can redo it and do it better. 20 takes later you're like i should have done the first one so i get it but like you said there's so many tools out there to just whether it's scheduling the posts out and repurposing it like everybody thinks you need one for youtube one for tick tock one for facebook dude just record one video and post in all of them it's all different audiences Yeah.

    26:10

    What do you think we do with this podcast? I mean, it just, you know, long form, chop it up, put it on YouTube and video format on Spotify, audio short clips for Tik TOK and Instagram. I mean, it doesn't, you don't have to create, you know, this original content every single time you record a video, but okay. So you started doing that. You started getting the, you got the one pool. This is also an important thing I want you to talk about. And I've mentioned this before, but like, When you're getting into the higher echelon of clientele, it can be difficult to kind of penetrate that, right? But once you actually penetrate that, then it's like they refer everyone. Like you said, that lady referred to other guests. So can you just talk about your experience with that kind of process? Hey, just a quick timeout from the show. If you're a frustrated contractor who's dealing with low profit margins, stuck working on the tools every day, or doing free estimates for people who are never going to hire you in the first place, I invite you to my private contractor community, The Profit Club, where contractors just like you are adding two to three times more profit each year without producing any more jobs and finally getting completely off the tools to never do another free estimate again. So if you're ready to increase your profits, stop doing free estimates and get off the tools, then all you have to do is click the link in the show notes to learn more about the profit club. and see how I can easily two to three times the cash in your pocket, give you a proven sales process that will convert more jobs with ease and get you off the tools once and for all. And the best part is you can do all of this without having to produce more jobs than you currently are. Click the link to learn more. Now let's get back to the show.

    27:55

    Personally, the biggest hurdle for me was to even kind of realize that it is possible. Because when I first started getting into pools, I was like, there's no way someone's going to pay like over $100,000 for their backyard. I thought that was crazy because I didn't, my family didn't have that kind of money. I didn't have that kind of money. I mean, dude, where I come from, I didn't even know pools existed. I remember distinctly when I was a kid, I was like nine years old. We went to the best hotel. It was like a skyscraper in the middle of our city in the capital. And there was a pool you could get like an entry fee, like 20 bucks a day. That was my first experience with a pool. I come here, pools are everywhere all of a sudden. But so that was the case. And I just didn't know that it was possible. And I remember distinctly like quoting out my first pool job. And I still like really didn't know what I was doing too much. But the homeowner was very cool in regards to everything. Like they, I'm guessing, wanted to believe into a young guy of some sort. And when they signed the contract, I was like, no way. Like this is absolutely crazy. And I quickly realized that the level of clientele was very, very different. And from perspective that, let's say, I heard more complaints on like $5,000 landscape jobs than these jobs. A lot of people, even like as we got higher in the price ticket, like we've had, you know, half a million dollar projects and the homeowner is not even questioning the price. They're like, oh, like I'll send you a check. You want to check? You want wire? Whatever. While I have that $10,000 landscape job that's trying to haggle it down to 9K.

    29:42

    Yeah, yeah. There's a joke in the coaching space where it's like, you know, two clients, one's a $500 client, the other one's a $50,000 client. And the $500 client's like, hey, this is my last $500. You better deliver. You better save my business. You better, you know, if you don't do it, I'm going to rake you across the coals. And the $50,000 client's like, hey, I just wired you the money. When do we start?

    30:04

    That's how it is. That's the reality. And I feel like it applies to all these industries also. And like practically. With getting those higher-up clients and higher-end clientele, I realized that the word of mouth is very interesting how it works. And it got spread very quickly. Like we did one neighborhood where we did four pools all in one neighborhood because they liked me so much. And my angle was the turnkey aspect. Locally, there's maybe... I'd say 20 companies. Charlotte is a very big city. There's probably 20 companies that do pools, but Turnkey, like all outdoor living project is probably maybe five or six. So that's our big angle to apply for that because those people, if you're investing, you know, a quarter million to your backyard, you're making a lot of money. And you don't have time to be a general contractor for your project. You don't want to spend the headache on you need a pool guy, a hardscape guy, a landscape guy, so on and so forth. It is so much easier that they just find one company and they work with us. And that's where we kind of approach from that angle because we saw a lot of issues with that before.

    31:14

    Yeah, I mean, it makes sense. It makes sense. That people group or the wealthy class, they kind of gatekeep their community, right? And so, you know, if you get in with like a doctor at a local hospital, well, I mean, he's friends with all the other doctors and surgeons and stuff in the hospital. So like, you know, he, he gets a new backyard. He has a party cause he wants to show it off. Right. They all come over. This is awesome. This is amazing. Who did the work? You know, Nikita did all I gotta, you know, I gotta give him a call. And so like. What I'm trying to get across here is like, if you can penetrate this, you know, these, this upper echelon of, of communities and people groups, once you're in there, like you're just in there, like it, I don't want to say it becomes easier, but it is easier to, to get more jobs at that level. I think the hurdle is like trying to get from like a $10,000 job, you know, into 150 plus thousand dollar job. Like that's the biggest hurdle. But once you're up there and you got in the right group, I think it's. becomes much easier. I mean, what's your experience with that?

    32:20

    What you just made me think of very, very much about, so whenever we were doing landscape jobs, of course, you go out to the quote and you look at it, you maybe write up some piece of paper, but there's no design involved. When we started doing pools, we had to do some sort of design because you have to show, you know, hey, this is what it's going to look like. And what we were under impression of is that in our area, all the franchises, they do it for free. And I thought, dude, I could never charge for a design. Oh, my God. And we were losing some jobs. And I get it. Like, you're getting multiple quotes. I would, too. So we're losing jobs and we're wasting a lot of time with these quotes. And I was like, you know what? I'm done with this. And probably last, not, not. not the winter heading into 25, but the winter heading into 24, we decided, hey, we're going to change this. We're going to implement the fees. And we charge for a full backyard design, give or take 2K. And the amount of ease that was just so baffling in my mind that I saw, like the homeowner would inquire and I tell him on the phone, hey, we charge $2,000. And there were a handful of no's, but the yeses were so easy. I was just, what? Like, you're actually going to pay for this? This is crazy at first. Of course, like a lot of work goes into it. We should send them the design examples, how the plans look like, and so on and so forth. But again, that like quality of client was unreal. I mean, they were so understanding, so helpful, so working with us. It was just very eye-opening to the things that are possible, honestly, in my opinion.

    34:00

    I talk about this all the time, like charging for consultations, charging for estimates and designs. I mean, this is something I beat the dead horse many, many times. And people don't understand this. Whenever someone's paying you to come out and do an estimate design, whatever, consultation, they're paying you to go out there, you actually want to do a better job for them because they're paying you, right? And so they get a better experience. because you're, you know, you're getting paid for it versus if you're doing it free and you got four jobs, you know, four jobs to look at that day, it's like in and out, in and out, down to the next one, down to the next one. Did you, have you noticed that at all with whenever you started charging for the designs? I mean, did you notice like spending more time, more effort working with the clients?

    34:47

    Absolutely. And it was whenever we weren't charging for designs, it was a lot of, we will send a PDF file and then we just kind of wait. Then in transition to whenever we started charging, hey, we'll send them a PDF file. We'll schedule a Zoom call to go over everything. We'll go out and paint it out. We'll schedule another Zoom call to go over any changes. The quote will be a lot more detailed. We'll go do a design sample consultation, stuff like that. But the funny part was that whenever we started doing designs, of course, we were absolutely garbage in them. I'm not going to lie because it was brand new to us and we didn't know what to do or how to do it. But over time, I knew that we were good. I just didn't know how good. And I just simply remember a homeowner sent us a different design that they got. And they were like, I hate this so much. Please don't do anything like this. And it was so, so bad and just so horrible. And it kind of clicked like, oh, my God. So these full franchises, they don't pay. anything to their salesmen other than the commission. So like if they sell the pool, it's great. If they don't, who cares? But because of that, the churn was so crazy, you were bringing in new guys all the time who had absolutely no experience. So that became our big kind of sales point. Hey, we have an in-house designer with years of experience. I mean, my fiance Hannah she's so amazing at this stuff like I mean we could walk outside or drive through a neighborhood somewhere she'll be like this is this plant this is this plant this is this plant this is this material she knows everything a to z and I honestly credit everything in our business to her because she is the hidden kind of key to everything especially on the large projects let's say Homer calls us out the backyard's blank they don't understand how to bring the vision to life. Honestly, I can't either. I can't lie there. And whenever she does it and she kind of finds their pain point, like so perfectly exactly what they envisioned, they're just like, Oh my God, I love everything. Like here's a blank check. Just put in a number. Yeah.

    36:55

    Yeah. Well, uh, give you a piece of advice, happy wife, you know, happy life. Uh, you don't want to. lose that resource.

    37:05

    Absolutely. I mean, she, a lot of people are just, she's not on the social media on the face of the business as much as I am. So a lot of people think like, oh, Nikita this, Nikita that. And then after usually the first kind of design meeting, it's very obvious that it's all Hannah. I just speak Spanish. I tell people I speak Spanish and that's the only thing keeping me involved in this so far.

    37:28

    Hey, whatever works. I mean, whatever works, whatever you got to do. All right. Let's talk a little bit more about the leads then. I know because with your services, you have contractor lead solutions. First of all, what specifically do you do for contractors? And then two, what is the number one thing? I shouldn't say number one, what's the best type of advertising you found to work for your clients?

    37:52

    For what we do is we do Facebook ads and SEO services. Facebook ads is something we started a much longer than SEO. SEO is a newer feature that we added, but Facebook ads have been bread and butter. And we only work with specifically hardscapers and pool builders because that's what I do. So my kind of big, Helping part is that I work with a lot of people. Let's say they just they're just now getting into pools. They have so many questions. Just call me like I've been in pools. I know how to do things. Just call me. I will help you. And that's the big thing that I found was very rough whenever I was young and working with other marketing agencies. You were calling these kids or. You were calling these individuals who didn't know anything about your industry. They kind of knew ads, yes, but if they don't know anything about your industry, they don't know the sales process and how it works from the design, the meeting, the payments, and so on and so forth. And I found that Facebook ads personally, in my opinion, work the best. And again, from what I was mentioning earlier, the biggest thing is that I can... You know, Brad, if I wanted to, I could make ads for you tomorrow and you'd be the number one builder in all of Omaha. I don't think you're in Omaha. You'd be the number one builder in all of Omaha, Nebraska, and we can run ads for you. And you'll get leads for home building. Versus organic, it takes a lot of time to build that up. And we found, especially controlling the lead flow, especially in the slower seasons, like let's say in the winter, hey, we can angle to specific service for example in the colder up north you obviously can't do a lot of landscaping in the winter because it's snowing hey we'll run ads for snow we'll run ads for indoor work we'll run ads for pool projects that are selling in the spring to get your schedule booked out ahead of time. And we can really appeal to that because, you know, as a contractor, you have a lot of variations in leads. If you're just letting it fly, you don't have any plan. So we want to make sure it's stagnant and predictable for you and your business.

    40:11

    I think that's the most important thing that people don't understand with like paying for ads. Even if you do your own ads, I don't care if you hire an agency or do it yourself. Like with organic only, there's no control. you have zero control of how many leads you're getting. Even if you call people and ask for referrals, you still have zero control of like how many referrals you're going to get. Right. And so with any type of paid advertising, you now have control of the faucet. So, you know, if you know what, obviously there's a little bit of figuring out to do, you got to get the right targeting audiences, all that stuff. But just from a, from a paid perspective of it. You can control the faucet. So like you said, maybe in the wintertime when it slows down, you turn up the faucet to get more leads, right? You augment and even maybe you are getting plenty of organic leads. But again, you can't predict those. And so, you know, you can you can level out this lead flow, if you will, by simply using paid advertising to kind of turn it up or down whenever you need to.

    41:17

    Absolutely, man. But we see a lot of in our industry, a lot of people have a similar path like me. They start doing lawn care, they transition to landscaping, to the hardscaping, and then maybe pools. But the one, two, three is, I see this almost every day. And a lot of people, let's say they work on their SEO for landscaping. That's great. You're getting organic SEO leads. That's awesome. But they're calling you for landscaping. If you want to do the hardscaping, your two options are, hey, you can spend another six months that's great but you might miss that let's say warm season and you might not be able to do that and then that's why we do facebook ads because tomorrow you'll have leads not tomorrow within a week you'll have leads for those hardscaping services that you're advertising. And in no way, shape or form, am I saying, hey, no matter what, prioritize Facebook over SEO. I highly recommend always to everybody, you still want to have an awesome website, you still want to work on your SEO, but the two need to be complementing each other in a proper way. Yeah,

    42:20

    absolutely. I mean, I couldn't agree more with you on that. That's, I mean, I get the, I get the conversation all the time. I'll post a TikTok or something about, you know, doing this to get leads and somebody never will be like, I've been in business for 30 years and I've never advertised one time and this and that. And I'm like, that's great. Awesome that you've done that. But for the guy who just started last week, he's, he's not going to get organic leads coming in, you know, on a regular basis. Cause you start with one customer, you know, The way the organic truly works, like referral, I'm talking about referrals, is you have to do more jobs. And then those people recommend more people and then you do more jobs and then you just, you know, you're slowly building your clientele base. I read one time it was like, this may be old data before, you know, social media and stuff, but it was like, it took an average like five to six years for a business to have like market penetration. through simply like referrals, right? To where you've done enough work and you've been in business long enough and people are starting to know who you are that after about five or six years, you'll start getting organic referrals on a regular basis. And that was true for my business. It was right around the five-year mark. It just seemed like somebody flipped the switch and then organic leads just started coming in.

    43:39

    I couldn't agree with you more. And like right now, for example, we are experiencing a lot of that for our physical business. We're getting tons of organic leads from those referrals, but it has taken some time. And for some people it works, that's great. But for me, if I am trying to grow my business right now and I'm not really looking at that like five-year mark. I'm looking to do ads now and I'm looking to get those leads now. And a lot of people, you know, I get so many calls that people are asking, hey, how do I do this? Can you review all my ads? You can totally do the ads on your own. I mean, I have posted hundreds of videos of educational content for business owners to learn how to do it. But at the end of the day, as a business owner, you are the CFO, COO, you're the salesman, you're the project manager, and now their hat. going to be adding to your business there is not something that's worth it. It's just not how it is. Like I'm sure a lot of business owners, they have their schedules packed. They don't have any more time. They're trying to prioritize family, let's say. Adding more hours and learning this concept of Facebook ads or SEO or whatever it is, is just not something that you should be doing. You should be really prioritizing things a little differently.

    44:56

    Well, and just like sales, just like marketing, like all of those different hats that you wear, I mean, unless you had a prior life or career in that specific industry or that niche, you're not going to be good at it. So I mean, like you're, you know, you have a barrier to entry. You have a learning curve of, you know, I've built my own websites. Some were absolutely terrible. Some of them were pretty decent, but. the time that i spent learning how to build websites if i would have actually focused more on you know hiring the right people growth of the business stuff like that it would have saved me a lot of heartache and frustration and you know a lot of weekends that i spent you know on the keyboard designing the website i could have just hired a professional um to pay that i think the i think the biggest thing that hurts blue collar guys here guys and gals Because we're used to building and creating, right? It's like a challenge of, oh, I can figure out Facebook ads. If I can build a house, I can do Facebook ads. If I can do landscaping, I can do Facebook ads. And realistically, you probably could. But why would you want to spend four months of your time trying to figure it out to be mediocre at it when you can just hire a professional who knows exactly how to do it and get results immediately. And that's one less thing you have to worry about in your business.

    46:22

    And another big thing, like you said, learning curve is huge. Technology is constantly evolving. Like there's so many changes happening 24 seven versus let's say like heart skipping industry, new materials. Yes. And the style is evolving, but so much slower. technology whether it's like ai or ads and everything like that facebook algorithm that's changing 24 7. for example a great example i talked to a buddy of mine not too long ago and he's been in business for i'm talking 25 years he was telling me how whenever facebook initially came out the way he did ads was there were no Facebook ads back then. He would add friends that were local realtors and local kind of business owners and he would post his work on Facebook that way and it worked for like 10 years amazingly. I'm pretty sure Facebook is gonna like block you. or limit your friend amount that you can add within a day if you try doing something like that. So that's just an absolute technique. Same thing with Thumbtack that you mentioned. Initially, it was a goldmine. The leads were good. The leads were cheap. You could milk that cow for a long time. Now it's a completely different story on how it works.

    47:35

    Yeah, absolutely. Yeah, I mean, things change. So even if you do figure out how to do Facebook ads, I've been... I've been dealing with trying to get Facebook access token to work with the CRM for like three days now. And I'm about to pull my hair out, you know, cause it's like follow these 18,000 steps and check this. And I'm like, all right, I can spend two hours trying to figure this out on my own, or I could just figure it, find somebody to do it for me. You know what I mean? So like. There's so many little technical things. If you don't have the right switch turned on or the right audience or the right thing, and you could just spend thousands of dollars and waste all your money because you forgot to do this one little thing.

    48:15

    Exactly. And like you just said, your time, like how much is your time worth? For example, if you're like a brand new business owner, you have no money to spend. I will never, you know, I have so many people that reach out to me and they're like, I really don't have the money, but I can maybe like take a deposit from the next job and pay you. well i don't i don't want that please do not ever do that or like a hey i have absolutely no no money i have no work lined up these are my last five thousand dollars i'd like to spend them with you i am this is not a hail mary Like, please do not ever do this. And if you think this is a good idea, that's horrible. So clearly at that point, their time is, their money is worth much more than their time. They can spend that time and maybe learn some sort of concepts online, post more organic content, post on social media, versus, for example, when you work up in the business and go to your situation, you're at a certain level where spending 10 hours on figuring this one thing is just not worth your time. It is so much better. and so much more valuable to be used somewhere else. And a lot of people don't really understand how that works.

    49:19

    Yeah. I mean, it's just, there's only two currencies. There's time and money, right? And so you have to pick which one. And ultimately as a business owner, you want to get to where you have very little time and, but you know, you're going to have to spend some money to, you know, to, to get to where you want to go. Obviously when you, when you get what I call like critical mass in terms of marketing, You can back off the marketing a little bit because now you have reached, you have penetrated, people do know who you are, you're getting tons of organic leads. Then you can start backing off maybe some of that ad spend a little bit. But I mean, if I was starting a new business and I had unlimited budget, like unlimited money to start it, I'm dumping a crap ton of money in ads right off the bat because that's the fastest way to get in front of people.

    50:06

    That's the best way to scale. I completely agree with you. And we see, for example, there's a lot of businesses that reach out to us that we work with that have multiple sales guys. For stuff like that, for example, dude, unless you have a massive business and somehow you're getting enough sales leads to keep the three busy, you have to be investing into paid advertising resources and Facebook ads being one of them. Especially when you're trying to fill up three pipelines, that is a lot of work that you need. and you have the money at that point, like your business is big enough to afford three sales guys, that's something you should be looking at investing in.

    50:42

    Yeah. Well, we're getting close to the end here, Nikita. I definitely appreciate you coming on here, sharing all that information. I do like to ask one final question, and that is what's a book that you're currently reading or one that you would recommend?

    50:56

    I'm actually big into reading. So this year, my New Year's resolution was to read every day. And my goal this year is to read 35 books. I'm in four so far. Never Finished by David Goggins. I read one. Then I read Building a Story Brand. And then I read The Ride of a Lifetime by the Disney's CEO who just retired. A book I would recommend to people, though, I always recommend the same one, the one that opened my eyes on everything in this world is Rich That Poor Dad. I'm hoping not too many people say that one by Robert Kurosaki. He is just an amazing entrepreneur, talks about everything A to Z in his books, and it's such an easy read. That was the biggest thing for me. I read it when I was about 17 years old, and it was so straightforward. And so just easy to digest and understand. And I recommend it to everybody. He talks about business in there and different ways to like grow your wealth. That's another big thing that contractors don't pay attention to that they need to prioritize because they may have a lot of money coming in. But the biggest question everybody asks is, what's your top line? What's your revenue? Dude, revenue does not matter. Oh my God. What's your net profit? Like, shut up. Nobody cares that you make, if you make a million in revenue, but you're losing a hundred thousand a year, or even if you're breaking even, that's absolutely horrible. You need to be investing the money. You need to be putting it away for your retirement, putting it into assets. And that's what like rich dad, poor dad, why I recommend it. He teaches you those basics from, you know, square one.

    52:40

    Yeah. Yeah. Actually, I've had several people recommend that book on here. So you're not the first one. Rich Dad, Poor Dad's a great one. He's got some other ones out there too. The Cashflow Quadrant. I think it was his. Is that his?

    52:53

    I have a collection of 11 of his books on my shelf as we speak. Cashflow Quadrant is the second one of the series.

    53:00

    Yeah. Yeah. I haven't read all of his books, but I've read those too. There may be a couple of others, but yeah, those are definitely all. And he's got a board game too. um, for kids, which I think is pretty awesome.

    53:15

    Yes. I just did. It's so funny. I just finished it last week. So I was reading all about it, like refreshing my memory reading it. And it just, uh, yeah, it shows how, you know, for he focuses on kids because he wants them to understand early the concepts of it. Similar to, you know, similar to contractors, some contractors dive into the industry before they understand the numbers. oh my god please stop like stop what you're doing right now if you don't know how much money you're making or how much money you're losing or your overhead don't spend a penny on ads that's what you should focus on understanding your numbers before you do any of that

    53:50

    absolutely absolutely well nikita uh spasiba again for being on the uh on the show throwing out a little bit of a little rush in there um yeah Thanks again for being on the show. I really appreciate it.

    54:04

    Absolutely, man. I enjoyed speaking to you, and I hope somebody gets some useful information from this. And, yeah, I love your pod, man. I've listened to – there's a lot of episodes, so I've only listened to probably like 60 in full, but I'll keep grinding and chipping away.

    54:17

    You've got like 140 more to go, man.

    54:20

    Exactly. That's what I'm saying, man. I'm slacking. But thanks, Brad. I appreciate your time, and thank you for everybody listening in.

    54:27

    Absolutely. And we'll put links to your show notes or links in the show notes to both your businesses. People want to reach out and talk to you about. whether it's the design outdoor design build space or your services that you offer for those types of contractors. Yeah. I, again, appreciate you being on the show guys. That's the end of it. You know where to find me on all the socials or just search for the hammer and grind podcast, go to the show notes. I do have one to ask, leave me a review. You know, I was going through this morning. I was sitting in the, in the sauna at the gym and I was going through some reviews and I haven't had a good review in a while. So. Do me a solid. If you've listened to more than like five episodes, I think that's the cost of entry is to like, leave me a review on your favorite platform. So do that for me. I'd appreciate it. And until next time, remember profit is not dirty word.

    EP209: Design, Build, and Thrive: Lessons from Nikita Petrov on Running a Successful Construction Company

    0:00
    0:00

    Related Episodes

    EP274: Niche Marketing for Contractors: Scale Your Business with Smart Strategies | Part 1

    EP274: Niche Marketing for Contractors: Scale Your Business with Smart Strategies | Part 1

    Jun 8, 202654 min
    niche marketingcontractor leadsbroad marketing
    EP266: From Startup to Success: Chris McManus on Growing a Multimillion-Dollar Landscaping Company

    EP266: From Startup to Success: Chris McManus on Growing a Multimillion-Dollar Landscaping Company

    Apr 13, 202649 min
    Chris McManusGC LandscapingWestern North Carolina
    EP265: Why Most Contractors Struggle to Get Leads (It’s Not What You Think)

    EP265: Why Most Contractors Struggle to Get Leads (It’s Not What You Think)

    Apr 6, 202641 min
    visibility problemword-of-mouth referralsbranding
    EP255: Hiring, culture, and leadership: Insights from Nicolas Breedlove with playgroundequipment.com

    EP255: Hiring, culture, and leadership: Insights from Nicolas Breedlove with playgroundequipment.com

    Jan 26, 202640 min
    Nicolas Breedlovecommercial playground equipmentAAA State of Play