SPEAKER_05 0:23

Good afternoon. Hi, Pierre. Hey, Brett, hi, Ewe. Great to see you guys. Happy Thursday. Hi. I know I was just telling Ryan that we have a few people that are this will be their first time on Z call this week. So I appreciate you guys joining today. It's nice to see some new faces on and look forward to having you on the call. This week we have Ryan Tompkinson with us today. And in in the background behind the tree, we have his business partner, David Clear as well. But Ryan's going to be leading the show today. And he's going to give you guys a little background on himself. Tell you when he got started, where did he come from before Citywide? Just a little bit of background. And then you know the drill. Brett, I know you've been on the call before. Josh, Pierre, Yui, what will happen after Ryan finishes up? We will just allow you guys to come off mute, ask your questions, jump right in with anything that you want to get to know today. Okay. All right, Roy, go ahead.

SPEAKER_06 1:25

All right. Well, hey, everybody. Um, welcome and thanks for having me, um, Savannah and the team. And uh, yeah, a little bit about myself. I uh I'll give you a little background. I'm from Michigan originally, uh, from south of Detroit, kind of like the like the uh journey song, but um a little farther south of Detroit. We call it downriver almost actually. Um and uh went to school up in northern Michigan. Actually went to school to be a golf pro, um, like a teaching pro. I like to always clarify that. And uh decided after I got out of that, I wanted to go into uh sales. And uh I've been doing sales and marketing ever since that time. I started off with an automotive uh supplier, an aftermarket supplier. I did that for about six years in a sales and marketing role in an aftermarket and OEM uh type of position. Uh then I worked for Johnson Johnston for about eight years selling medical devices and surgery. And then I did a short stint at a company called Marathon Petroleum. Uh a lot of us are familiar, depending on what part of the country you're in. You're familiar with Marathon and what they do. And I was there for about uh a little over a year. And then for 11 years, I was at a company called Fresh Products. Fresh Products is a uh odor control company uh based in Toledo, Ohio. And we sold into the um, we sold around the world, but we sold into the industrial market. So it was think of um fragrances and odor abatement for um commercial type buildings. So we sold into uh distribution, which sold to customers like Citywide, which is actually how I learned about Citywide and uh what their model looked like and et cetera, because they were uh kind of a customer of a customer. Uh I was in a I was VP of sales and marketing there at my at the end of my stint at Fresh Products. So we got to know who Citywide was. And um again, liked liked what I, you know, until I started jumping out some Z calls like this and talking to some people. Uh, I really liked the model. It's what intrigued me, and uh it's kind of what's led me here today. We opened uh Michigan in uh it'll be March 1st, it'll be one year that we've been open in Michigan. Um I'm a little bit unique in the fact that I joined uh David Klinger, my business partner. He uh is the owner of Northwest Ohio, and he's been three and a half years, David? Yeah, three and a half years in uh in Northwest Ohio with Citywide and having a lot of success. Drew um did a great job growing the business. And uh for me to join him uh when we opened up um our location in Michigan um is has been is very helpful. So um, yeah, that's kind of where we're at. Um we can dive into questions whenever we like. Anything else back on my timeline or uh history, Savannah, that I should add to there.

SPEAKER_05 4:03

No, that's super helpful. I appreciate it. I think one thing I'd love to dive into a little bit before questions is tell us a little bit about your day-to-day in year one. Obviously, um you've experienced you were one year nearly in, um, and it it's been a whirlwind of a year. But if you could kind of give us a picture of what have been your day-to-day tasks in year one, what have you focused the most on?

SPEAKER_06 4:31

Yeah, so like I mentioned earlier, I'm a little bit unique in the fact that partnering with David, we were uh we were able to move some synergies of what we were doing in Northwest Ohio and bring them into Michigan uh because they do border each other. Um so as far as some of the people go, um and some of the things like that, like when we get into the IC recruiter, a lot of the things you'd be scrambling on in the beginning, I had the luxury of not having um to do that. Um plus I did hire an FSM who had a um a history with Citywide in another location out east. And um bringing her on, she had seven years of seven years of uh experience with Citywide as a uh FSM. So I brought her on as a director of operations, um was you know just a game changer, really. So I think my experience uh in the beginning is probably a little different than most because um the day to day is trying to sell new customers for one, trying to keep new customers that we uh that we did bring over from um when we bought the when we brought into the territory, there were some existing customers that were here that were being serviced from other citywides. So developing those customers, uh building the team, um, and then just some developing some processes. But as you know, it's like trying to find an office, setting up a business, um, getting your taxes and everything else straight. If if someone on here hasn't been in business before, like I hadn't been, it was all new to me. I remember when David said, Yeah, we need to get an EIN number, and I was like, Well, what's that? So, you know, it was uh a big learning curve for me, but um it's it's really about sales and retaining the business you have and then hiring the right people is just a lot of the day-to-day work right now. And then I think one thing a little different for me, like I mentioned, is that uh because of because of David and having a little bit of the team already in place, we're working more on processes and processes that we're putting in place in Northwest Ohio and Michigan. So that that takes up a lot of the day.

SPEAKER_05 6:28

Okay, great. Thank you.

SPEAKER_11 6:30

All right, y'all, what kind of questions do you have for Ryan?

SPEAKER_09 6:40

Okay, I I'll start.

SPEAKER_02 6:42

Were you asking somebody in particular, Savannah? I didn't catch the question.

SPEAKER_11 6:45

No, go ahead, Brett. That's perfect.

SPEAKER_02 6:47

Anybody, okay. Yeah, um so so one year in, and thank you for telling us about all the setup stuff we'll have to go through. Um let's see what so where where are you in terms of of staffing, like who's on the team and you know how many people and what roles do you have them organized into?

SPEAKER_06 7:06

Yeah, yeah. So um on the team, we do have an IC recruiter, um, which is um all the roles are important, obviously, but it's that's a critical role. Uh we have an FSM, and I'll I'll I guess I was gonna tell you we'll be done in volume, but I guess that doesn't really matter because the team would roughly still be about this anyway. So IC recruiter, an FSM, um, and then Michelle that I mentioned is a director of operations. So she's kind of like a part-time FSM for us as she does director role. Um, we have a CBS rep as well, and a sales exec. Yep. And then some of the synergies that I was talking about with Ohio is uh we can get into the details of this, but we uh accounting person because we do use the um support center as well, they're fantastic, but we also have our own um accounting person to help kind of tie it all together. Um, and then we have a CBS director too, which kind of helps on the CBS side with uh projects. And then we also recently hired um a young man out of uh Miami of Ohio who just graduated. He's our project manager slash marketing person. So that's kind of where we're at. Most of those are landing in the um like on the Michigan payroll, but a couple of them, you know, we we split among Ohio and Michigan. Okay.

SPEAKER_02 8:20

So that sounds like so it's eight people, including yourself. Yeah, approximately. Yeah, yep. Thank you. You uh you uh alluded to uh volume uh a minute ago. I'd it'd be interesting to hear how you how you did in your first year. Well, you're not quite at one year, but you're pretty close. 362 days.

SPEAKER_06 8:42

Well, I could probably pull up the number pretty quickly, but I could tell you March through end of December, we did what 1.1 million, David, in revenue, right? Michigan, yeah. Total revenue, 1.1 million in uh revenue. And then if you look at so if we want to do a full view, January, February, probably about 1.3, 1.4 million for the whole 12 months.

SPEAKER_02 9:03

That's what your that's what your year almost one year is gonna be. 1.4 okay. 12 month revenue, yeah. And that's kind of starting with zero, but it sounds like you had some accounts that were had been served by other um uh other citywide franchises in the area.

SPEAKER_06 9:19

Yeah, that made up of about six six or seven different accounts, which came to about 14, I think it was about 14 grand a month of recurring JS business that we were kind of able to adopt. And then of course we lost, I shouldn't say of course, this thing's happened. We lost a couple of those right off the bat and went down to like nine or ten thousand dollars a month recurring business. But um, yeah, we did start with that.

SPEAKER_02 9:42

How about national accounts? Uh what percentage of your total would be national accounts?

SPEAKER_06 9:50

I'd say what uh if we take XPO, we got XPO 30? Well no, you take the OS. I'd say maybe 20 percent. Okay. Yeah. So that's a nice, a nice chunk. Yeah, because we did do a decent amount of um of OS business, um, OS slash CBS type business that helped drive that 1.3 million, if you will.

SPEAKER_05 10:14

So um I'm so sorry to cut you off. I just want to make sure you guys are all aware. As for people that are new to the call, we do we say a lot of acronyms. Yeah, I'm gonna be able to do that. So just making sure that yeah, sorry. So FSM, if you didn't catch me in the chat earlier, is our facility solutions manager. Um that's gonna be your account manager. Your sellers obviously sold those accounts, your account manager is retaining that business, but they're also sellers as well. They're selling other services, they're selling additional services. So on all parts of your staffing, you're having salespeople even on the operation side. So when Ryan's referring to other service, or I'm sorry, OS, he is referring to those other services. So sorry, Ryan, I didn't mean to cut you off, but I wanted to make sure they were hearing what you were saying. So go ahead and remember I remember the doing.

SPEAKER_02 11:08

If you're on that topic, Savannah. So one more BLA three letter acronym. Um, what's a CBS? What Savannah?

SPEAKER_05 11:18

Complete building solutions. So, Ryan, if you can expand on maybe what you encompass in that. Um, but uh yes, sorry for all of that. I should I should put up a chart as we got it now, yes.

SPEAKER_06 11:33

Yeah. Um uh CBS would be uh like we do have a rep specific for CBS. Um and uh we've had some success there. Some of those are national accounts that we've gotten business from, others not. Um, but that's I mean, everything from gosh, building a retainer wall at a waste treatment facility to a new roof at a retirement facility. Um, you know, some of the big things that add up, but it could be as something as simple as a FSM slash account manager that Savannah just mentioned, going out there and selling the carpet jobs and the and the window cleaning, those would all fall under that OS type of business. So um no great call on the acronyms there. It's a it's a that's a good call out. But um yeah, it's uh I say about half of our business right now in Michigan is been about is been between CBS, other services, and janitorial.

SPEAKER_09 12:28

So it's about half and half.

SPEAKER_01 12:35

Hey Ryan, can you talk a little bit more in detail about the sequence of events that you know from the the day of opening, did you focus on getting seven uh you know folks working with you first, or did you fork focus on business development first? If you could talk a little bit more in detail about like what would your day one through thirty look like, you know, before yeah, you know, great question. It seems like a lot, you know, in the in the beginning stage, especially if you're trying to hire eight people or seven people rather.

SPEAKER_06 13:02

It is, and it's uh it's it's very sales oriented. You know, I was talking to David before this call, even it's just like it's um, and um, you know, it Jeff Odo even said it, you know, he always says it's you you gotta be sales oriented. This and that's just it's not just customers, right? That's like you've got to go out and sell yourself to the um the ICs, the cleaners, if you will. You got to go out and sell yourself to new employees that are gonna come work for a new startup type business. Um, you gotta sell yourself to the vendors. It's like it's it's it's a selling business all day long. It's not like opening up a Chick-fil-A and the marketing's done for you and they're just gonna come to the door and start lining up. It's like you're out there selling all the time. So that first 30 days is um outside of just you know getting everything organized, it is making sure you have your ICs, your cleaners, if you will, buttoned up and ready to go, that you're able to pay them appropriately, pay them on time because that's one of the reasons why they're working with us, they're guaranteed to get paid. Um, and then it's it's just out there trying to get new customers. So the uh the ones that we adopted, if you will, when we came in was not enough to by any means to keep things going. That was uh we gotta we gotta make sure that we kept the ICs in place that they had, but was going out and getting new customers immediately. So it was knocking on doors and um opening up doors. Like David always says, the hardest door to open is your car door. Yes, that's so true. Uh got to get out there and uh make sales and uh just get the pipeline, get the pipeline rolling. That's the first 30 days. But the uh keeping the ICs in your court and happy and making sure you got great ones in place, um, and at the same time not using the same ones and expanding it and you you know utilizing them across the board as best you can. Um, all first 30, 60, 90 days, what you're really trying to do because you can't, you don't want to lose any of that new business that you just retained, that you just got gotcha.

SPEAKER_01 14:52

And as far as like, you know, looking for new clients, like is there any particular sort of build-in size or or or type of client industry that you focused on, you know, prioritize before others, or like you just sort of looked at a five mil five mile radius for all you know the the commercial business in your area and just sort of knocked on all the doors? Like what any sort of prioritization there?

SPEAKER_06 15:15

No, and that's and that's what I love. You know, that's the part of it that I love from my background is how where are you gonna hunt, how are you gonna hunt, what's working, what's not. Um the reality is it's um we can say we want this perfect office building and it's a class A office building and it's it's gonna be X amount every month. But in the beginning, um, or you can also say that our minimums are gonna be $800 a month, but in the beginning, you're taking on you're taking on jobs and some customers that you probably wouldn't take on a couple of years down the road uh just to get that revenue stream going, just to get um yourself ready, get your ICs up and running. Um, so I'd love to say that yeah, we were only focused on these buildings, but really um we had our BD, we had our business development specialists, because we use the support center for that out there, we call smiling and dialing every day. And if they set up an appointment and it was a six, seven hundred dollar uh a month opportunity, we were most likely taking it and not thinking twice about it. Um and now we're getting a little bit more prescriptive on how we're doing that, but um it's taken it's taken a year for us to get to that point, really.

SPEAKER_01 16:20

And sorry, last question in terms of uh the the IC ICs, ICUs, ICs, how did you find the best candidates? Because obviously it sounds you know, a lot of these cleaners can be high turnover from what I understand. How did you you know find the best ones? I mean, you've only been operating for a year, so I don't know, maybe this is not the right question, but so far, like being able to retain that that quality of talent that um you know that has stayed for you, you know, for the last 12 months.

SPEAKER_06 16:47

Yeah, uh speaking from my experience in Ohio and Michigan now, I could say that um you're always gonna have your select go-tos, right? Ones that just work immediately. They it just kind of everything gels well and they they understand the model. And um, but I think the key is we never we're never done recruiting. We do this thing, uh, we have an app that we all uh not an app, I'm sorry, we have a text thread that we all use that we take pictures all day long, and we call it IC the IC thread. We're taking you could be at a a Speedway gas station and take a picture of a truck that does cleaning, and we just constantly, constantly, constantly recruiting. Um, we have a list of right now, we have a list of um um we have 13 JS janitorial cleaning companies sitting on deck waiting for us to use. We're using roughly 19 of a separate bunch, if you will. We're using 19 different IC type companies right now, but we have 13 on deck because half of those 13 might not, you know, be that great. So it's it's a constant churn. And it's uh and that's why that role and the ICD recruiting, it's really the lifeblood of the business. It's it's so important and it's something I kind of overlooked coming into this. Um, also, one of the things that I really didn't really understand too well, I'll be honest, I when I was in your seats sitting back thinking, why is the company gonna come and work for us and we're gonna add in another layer of of you know expense? Why are customers gonna come and do that? Why is NIC gonna want to come and work with us when they can just go get the business directly? But the reality is it's uh with citywide, you have the national account business that they wouldn't be able to get into. You have uh a guarantee that we're gonna pay them on the 10th of the month every month. Um, if there's an issue, we have our FSMs slash account managers in the field that are gonna um take the heat for that, or our night managers that are gonna take the heat for that and then you know uh communicate that down to the uh to the ICs. Um and then the reality is a lot of these companies, if you look at a small or medium-sized um independent contractor, they're not the best business people. They might be really great at cleaning or cutting grass or doing some of these things, but they're not great business people. And one of the examples I always love to give, David's heard this 20 times. So um it's uh my last company. We got a bill in the mail for $45,000 from the guy cutting our grass. And the owner handed it to me and says, Can you please dishandle this? And I called the guy and I'm like, You just sent us a bill for $45,000. I'm like, why? He's like, Oh, I haven't sent you guys a bill in three years. I'm like, Well, well, why? He's like, Well, we're just not good at we're not good at doing the books. I'm like, Well, we're not good at paying $45,000 bills that we weren't expecting, so we'll give you half. He's like, Okay, that sounds great. So it's just like something as simple as that. They're just not great. Some of them aren't great at doing the books, and that's what we bring. We bring that level of um professionalism to it and gets them in the doors that they couldn't and help them grow their business. David's got some great examples in Ohio of people that have started, started out, they had nothing. They maybe left a factory job of some sort, they had a beat-up truck, and now they're driving a brand new F 250, and they've got 30 employees, and a lot of it is from working with citywide. So it really is the the ripple effect which you'll hear about is real, um, changing lives and and helping grow other companies. It's it really exists and it's um it's it's a good feeling.

SPEAKER_01 20:09

Awesome. Thank you.

SPEAKER_00 20:13

Ryan, thanks for the time. Um, I'd like to ask about like the longer term vision. It sounds like you guys are, you know, have two territories or are beginning to have some shared services across the two territories. Um, what's a longer-term plan? Are you trying to roll up a bunch of different territories? We'd love to hear that.

SPEAKER_06 20:28

Um, we would uh like to expand. Um, we just know there's so much opportunity um within the two right now. I mean, we haven't even scratched the surface in Michigan yet. And even in even in uh Northwest Ohio, what we have less than five percent of the business. I mean, there's so much opportunity to go out there and get. Um, we'd love to maybe expand into Michigan um and do some things there. But even if we don't get that opportunity, it's gonna be it's it's gonna be fine because we have so much opportunity just sitting outside of our doors that we got to go and get.

SPEAKER_03 21:01

I just wanted to kind of make a quick point. Um, one of the things that I think is key about our model and our system and um and how Ryan came on into uh the the brand as well is you have to have it too. If you're an owner that decides you want to expand, you have to be in a high-performing market. Um you have to be in the market for at least two to three years, and you also have to have a 20% operating partner in that neighboring market that lives there, meets all of the candidate qualifications. If we were willing to open that up and not make all of those a requirement, we would probably be sold out by Monday. Um, but it's really important that we have the right owners in the right markets and are willing to wait for those great operators in those markets. So ultimately, when you think about each territory and a lot of brands to get to the kind of revenue benchmarks that you see in citywide, yes, you have to have six, seven, eight, ten locations. Locations. They are not having an top quartile with an average 23 million unit volume. So that's kind of the differences. And I think that a lot of people, that's a misconception of understanding that you can kind of get to those generational wealth requirements with one market if you're running it properly. And Ryan, maybe you can speak to that kind of like what your guys' goals are from a revenue perspective over the next three to five years.

SPEAKER_06 22:26

Yeah. Well, that ends up how we're going to attack it, right? We um it'd be great if there was like one key way that we find that we get business. Uh, but we get new customers by the uh business development, inside sales, making phone calls, sending emails, and the influence type campaigns, which they do. Um same thing, word of mouth, uh, LinkedIn, social media, uh Blitzes. We do blitzes in our market where we'll go out and three or four of us will go out in a day and we'll just hit 40, 50 places, and then we'll we'll follow that up with um our business development person calling those places and sending emails. And so what we find is that um it takes what four or five touches, we think, sometimes more before you get a customer. And then you can even do the you can do a building survey. And we always like to say they're saying no for now, but that doesn't mean they're not gonna call us in three or four months. So um the sales cycle can be a little bit longer. It's all situational and it just depends. But um, so many different ways to go out there and get the business. But one thing we have realized is that the um the inside sales, the beat the business development specialist type role, literally sending out emails and calling people um definitely gets us appointments. So we're focused on that and really building up that team. Um and kind of where we see ourselves over the next couple of years. Um, I don't know, Dave, what would you say? Would you say five years, three years, and five years for Michigan and Ohio totals?

SPEAKER_07 23:56

Yeah, I mean, our target growth is is it is a stretch goal, and I don't I know this is being recorded, but you know, that's gonna threw it over to you. We have we have high growth standards, and you know, we're trying to grow, and you know, we want to grow a million and a half, two million dollars per year per location, and you know, with the right team, it takes time. And you know, we just got done doing the EOS, the operating system for uh Northwest Ohio uh just a few months ago, and we're getting ready to implement that here in Michigan as well. But you know, with these models, that when you set them up, you know, when you have the right people on the seat, you'll you will have some turnover, 100%. But when you get the right people on the seat and you have your pillars, like we say, we have our janitorial pillar, we have our operations pillar, we now have our CBS pillar, and then we have our accounting pillar. When you get the right people on those pillars and this starts jiving together, the growth is just amazing. And we're we're seeing it right now.

SPEAKER_05 24:50

You guys don't realize how how lucky you are today, but you're getting David Klinger and Ryan Tompkinson today. The two a two two for one special. So this is a once-in-a-lifetime chance.

SPEAKER_07 25:04

In our in our temporary Parrysburg office today, that tree's not realistic. Look, look, I get water. It's it's a growth mindset, and if you have that going into it, this will be one of the hardest jobs you're ever gonna have. And it's not even a job, it's a career, and it's it's a it's a passion. And one thing that we talk about too is me and him, we bring different aspects that jive together in these two businesses, and and having a partner now that is just you know, it's amazing. And when we're when we're growing and putting the right places in there, it's just it jives.

SPEAKER_06 25:36

You have the right people in the right spots and uh the right processes in place. It's all it's all key for us to get to the growth we gotta have.

SPEAKER_07 25:42

And Ryan mentioned something earlier, and just I'll chime in on it too, is the growth doesn't come, you're always selling, right? You've got to be selling to your team, you've got to be selling to your ICs, you've got to be selling to your customers. You know, you have to have that drive where, you know, now we have over 200 vendor partners between Northwest Ohio and Southeast Michigan, right? The number of lives that we're impacting on a monthly basis has eclipsed a thousand people between our territories. You know, that's the ripple effect that we talk about as the amount of jobs and the careers that we're expanding just outside of our local office, right?

SPEAKER_06 26:19

And it's and the business is so scalable, which is what I loved about it. You can the the amount of uh revenue you can bring in by not having to have you know hundreds of employees is uh really what I what I loved about it. I mean, uh we got our CBS guy just called us. He loves to call us and say, What have you sold today? This is that's his first line. And when he says that, I love it because that means he's about to tell us what he just sold. And it could be like, oh, I just sold a uh a $15,000, oh, they had a slight emergency in their backup system in their sewer, and we sold a $15,000 job, or oh, we just sold a hundred and fifty thousand dollar roof. It's like it's unbelievable how scalable this business is. So, you know, I don't think we've ever answered the question. Would you say three, five years? I'd say what in three years put them together.

SPEAKER_07 27:06

Okay, so let's say, you know, this year for Michigan, if we could eclipse, you know, two to three million would be huge in our second year, right?

SPEAKER_06 27:14

Yeah, and you take Ohio's gonna be what 10 to 11.

SPEAKER_07 27:19

I wasn't gonna say 12, yeah.

SPEAKER_06 27:21

All right, so year two for Michigan, year four for Ohio, we're looking at roughly 20. Yeah, 20 million.

SPEAKER_05 27:33

That's incredible.

SPEAKER_06 27:34

Um no, no, 15 million, 15, 15 million, yeah.

SPEAKER_07 27:37

Please, please take that out of the recorder.

SPEAKER_06 27:41

No one's able to see that this year. Yeah. But it's still scalable, and I hate to put a number on it because uh I probably will sandbag it a little bit, and it's uh probably gonna be, you know, even I never thought we'd I never thought we'd really do a million in Michigan from because we got off to a kind of a slow start um with the economy and everything the way it was when we when we first launched, but um yeah, it's it's clicking along.

SPEAKER_09 28:09

I have a question if I if I may.

SPEAKER_02 28:11

Um so it sounds like uh your so your revenue goal what four or five years out is 15 million. Did I get that right?

SPEAKER_06 28:20

Uh I think uh no, I think we'll be we'll be north of that in five years. Um I think in the two locations. Between the two locations. Yeah, yeah, yeah. Yeah, I'm sorry, I'm talking two locations. Yeah. Yeah, I think Michigan this next year we're looking at probably two and a half, uh two and a half to two and a half to three million, probably, that we'll do in year two.

SPEAKER_02 28:39

What about 2030? All your territories. Is that like a 20 million dollar goal?

SPEAKER_06 28:48

You know what? It it's possible.

SPEAKER_02 28:50

Yeah, it is.

SPEAKER_06 28:53

If you're able to um set up the business enough to where what's always missing in these conversations is that it's it's the operations is so important too, right? You you gotta retain. And um, we talk about selling, and I talked about selling earlier, how you gotta see you know, you're selling to your ICs, you're selling to your employees, it's constant selling. But on the back end, um, Pierre mentioned it earlier, he was talking about some of the challenges with ICs. You you gotta keep you got to keep business. We just lost a large account um in Ohio, and we don't really still have a great answer as to why it happened, you know, and that's that's rare because usually you see it coming, but this one we just haven't been able to get an answer out of it. And it's just it's a little unexpected, and those are the things you just gotta account for. Um, so you get some big wins and you get some big losses, but it more wins than losses is what we're trying to do. But you got the operations side and keeping that business is uh is critical. The night manager role is to keep the the the uh the account manager role out there, seeing customers constantly.

SPEAKER_02 29:50

Yeah. So on $20 million of revenue, what's the what's the bottom line goal? What's the total owner cash flow goal?

SPEAKER_09 30:01

So you're talking like EBITDA?

SPEAKER_02 30:04

Um Yeah, if you'll define exactly what you mean by EBITDA or total cash flow to owner either one.

SPEAKER_06 30:12

EBITDA's the best way to look at profit, in my opinion. You got you know earnings before interest, taxes, depreciation, ameritization. Um I think most most locations are running between nine to twelve percent.

SPEAKER_02 30:27

So that's your goal. And that's that's where it part of that nine to twelve percent is also how you and an and another owner pay your salary too.

SPEAKER_06 30:38

That's it. That's just yeah, depending on how you want to set it up and how much money you're coming in with and what you're willing to um you know not pay yourself with in the beginning. But yeah, that that should still be the goal after you pay yourself a reasonable amount. Okay, a couple years down the road. Yeah, yeah, that EBITDA take 10%. It should be 10%. That's one of the questions I asked too coming into this. Because you hear about the margins, you know, it's like, oh, you're out there making 30, 40, 50 margins on certain jobs, but it it all comes down to Ibita being about roughly 10 percent.

SPEAKER_02 31:08

Yeah, well, okay. Yeah, because you gotta you gotta account for a sa a market salary for owners.

SPEAKER_06 31:16

So yeah, well, yeah, yeah, among other things, right.

SPEAKER_02 31:20

Yeah, okay, thank you.

SPEAKER_07 31:24

Just to touch into that too, though, and and you're gonna want, I mean, that's where it's it really comes down to how much do you want to grow, right? And really invest back into the business, you know. And I'll be one of the first to say that, you know, and for the longest time, we still continue to invest heavily into this business. I mean, into our team. You know, we're in the process of buying another uh building to expand. I mean, and it's just it it it the growth doesn't come by chance, it comes by the way you perform and the way you reinvest. And I I can't stress that enough. I mean, you got to continue to keep putting money back into this thing. I'll never forget one of the Z calls I listened to, uh Jacksonville is talking about once this look once this locomotive gets the wheels going, it takes what more fuel, right? But you got to get that train humming down the tracks, and it just once you get going, I mean, it starts clipping. And then and that we're we're proving that in northwest Ohio, and we're on that same trajectory now for Michigan. Yeah, and what you said you go ahead.

SPEAKER_06 32:22

Go ahead, Brett.

SPEAKER_02 32:23

I was gonna say you said you said earlier you you think maybe you've got five percent of the market, uh, so there's lots of headroom to grow, which is great. So, what's your market share goal then? I'd be lying to you. That's where the grass, that's where the growth will come come from, right? It's just increase the market share.

SPEAKER_06 32:40

Yeah, you know, it's even hard sometimes. Uh this goes back to an earlier question of like what's your perfect customer. You know, it's um you know, it it'd be really tough to say uh what that market share is. Um, I I don't know. I'd be lying to you if I really I think I know what it is more in the dollar amount, but as far as what it's gonna be, there's so many opportunities. It's like every every business is a customer. It's it's you could get a customer, you could be you could do CBS work at a McDonald's. It could be it could be anything, you know. That's what's great about it. And that's what's so scalable about the business, is that it could it just surprises you where you one day you're in a uh uh kidney dialysis clinic, and the next day you're at a garbage dump. And you know, it's it's just like it's it's so scalable for that reason. And that's just on the operation, that's just on the CBS OS side. You know, there's tons of janitorial out there too. And don't forget, you also have uh the opportunity to sell supplies into businesses. Uh, we're launching a customer next week. Um, we're putting in two uh maintenance people, it's gonna be roughly twenty thousand dollars a month that we're gonna be charging this customer for um for two maintenance people. So I didn't even think about that when I started this. You know, I thought it was, you know, I kind of had the blinders on. I was thinking, oh, we'll do some could we'll do some commercial uh uh construction work and we'll do some janitorial work. Uh you got day porters, you got supplies that you can sell, you've got there's just so many different avenues and different things that you can take advantage of to build up the business.

SPEAKER_09 34:09

Yeah.

SPEAKER_06 34:14

Love the questions, Pierre. You got them on?

SPEAKER_01 34:17

Um yeah, so how do you guys look at competition and who would you say your top three competitors in the you know in your area? Um and could you talk a little bit more about the opex? Because you mentioned the nine to twelve percent EBITDA. So like what what uh what what what's your I mean I would assume it's labor is the heaviest opex, but you know, below that, what are the next two to three highest you know opex items to to you know to break to get down to that EBITDA margin?

SPEAKER_06 34:48

Um geez, would you say, David, if you you take obviously you take payroll out of it, what would be the next couple biggest expenses that we're looking at? What was this question, Dan?

SPEAKER_09 34:58

Biggest expenses we're looking at takeout payroll. Payroll. Um I mean, you've got obviously depending on your rent, right?

SPEAKER_07 35:08

Where you where you're gonna have your office space out of.

SPEAKER_06 35:10

Yeah, and then and then you're paying the ICs too. I mean, that's that's the biggest piece for me is uh like I look at one of the advantages of me partnering with David is this. We just we just talked about this a little while ago, him and I is um there's some jobs that we've taken on in Michigan that we wouldn't have been able to take on if it was only me doing it alone, because we had the support of Ohio. So, for example, if you're gonna do a $300,000 bathroom renovation and a few other things that take place, um, that customer might demand 60 days or 90 days, God forbid. Uh, but yet we got to pay our ICs, you know, within the next month or so when it's done. So you might have to go to the IC. Again, it's all selling, right? Now you're gonna go to the ICs and it's gonna be like, yeah, you know, we want you to do this job, but I'm not gonna get paid for 90 days. So will you work with me? And uh, can I pay you in 60 days? And there's been a couple of jobs where I we wouldn't have been able to take them on in Michigan had I been alone. You know, we would have would have the support of Ohio um really helped us there. So you're not you're able to grow the business a little bit. I was able to grow the business a little bit faster because of that. That makes sense.

SPEAKER_07 36:16

Yeah, and a lot of the expenses, and sorry, we're bouncing back and forth here. A lot of the expenses, you know, is the ICs and saying, okay, hey, we've got this project. And you know, this this business, as RT has mentioned, you pay your ICs on the tenth of the month every single month, even if we don't get paid for 60 days, 90 days, or one client we have that's stretching us at 120, we still got to float that. So that's an expense right there that a lot of people don't do not take into consideration. Um, and that's why I say we continue to reinvest and make sure we have an X amount of money in the bank to say, okay, if we do get a $300,000 roof job, we could fund that. But that's willing that we're willing to take to grow the business because it to get to these incremental levels that we want to get to, there's strategic focus on that. Yeah.

SPEAKER_06 36:59

And then and then other factors are you you can agree to 90 days, but then what if they're gonna pay you in 150? Yeah, you know, we're kind of experiencing some of that right now as well. So um also it's like I coming from the business I did, I knew about AR issues, but it means a lot more when it's uh you know hitting your own business.

SPEAKER_11 37:19

So Josh, I think you were trying to jump in. Did you have something that you wanted to ask?

SPEAKER_00 37:25

Yeah, I did. Uh Ron, I don't had a question about uh your currently like new revenue channels. So you mentioned, you know, you have I'm not using the right terms, but you have a SDR smile and dial team. You personally go and do a bunch of outbound work. There's some inbound work that could comes as well, right? What's that split looking like? And what's your ideal split too? Because I know some businesses don't want to be so heavily outbound because it's hard to scale.

SPEAKER_06 37:48

Yeah, so we did just bring on Grant, the um gentleman I mentioned, Viller just came out of Miami, Ohio. Um he's helping us along with the support center, uh, doing a little bit more push on um on social media. We have I'm always big on that. I'm always we go into an account, it's like, how'd you hear about us? You know, I want I want to find that out. I I love that. Um well, some people don't think about that. I I I actually want to know so that we can, you know, what are we doing right? What are we doing wrong? The answer is it's a complete mix across the board. And and it I it drives me crazy the kind of that it is, but it seriously is. It's um I'd lean more on the um the smile and dial because they can just hit so many more people than you know, a salesperson that's gonna go hit 10, 11 places cold calling in one day. Um, so for that reason, I I think as we expand that team, I wouldn't be surprised to see that making up 40 to 50 percent of how we get new leads and how we actually get meetings coming from the people smiling and dialing and sending out emails. But we're also doing a good job of building up our LinkedIn. This uh live business that are on LinkedIn, so we go in and we share the various things that we do, the one point of contact and and um everything that we offer and putting that out there. So the more followers we can get and the more we can share on LinkedIn, uh, we're getting some play on that as well. We also just uh we're doing a Google. We just started this. Uh we're starting March 1, actually. We're doing uh the Google. Uh it's changed from what it used to be years ago, the click and click and pay and click, if you will, but still uh trying to get our name on Google so that we're on the first page when it comes up and someone, you know, because they'll be like, How'd you hear about us? Oh, we I Googled janitorial and you were the second or third one, you know. That's we gotta be on that page. So uh moving up and the uh the SEO world and doing those types of things is uh definitely part of it as well.

SPEAKER_11 39:38

Hi Ryan, thank you so oh no, you go, please.

SPEAKER_04 39:43

Uh thank you so much for your time. This has been super helpful. Um, I had a question around the the sort of franchisee support system and and maybe you know what you what you've tapped into and leveraged and how that's changed over time. Um and so I guess beyond the brand name, um, what have you what have you tapped into?

SPEAKER_06 40:05

Well, having uh um having a coach that um that comes along with you to help you get obviously set up but just answers questions along the way, they're almost like a great they're almost a liaison, if you will. So they can help you connect with people inside the support center um in Kansas City. Um that's been invaluable. So having them there, and then they're helping you do your budget and um you know different levels of who should you should be hired. They can even uh speak to different candidates, you know, once in a while and kind of they can't technically interview them, but they can go and give you an opinion on uh how a conversation went, things of that nature, uh kind of what your next move should be. Uh calling other franchises. Uh, David's done a better job at this than I have, honestly, but the connections and the people he has that the daily networking that they're talking, hey, I got this issue, I got that issue, um, the citywide culture, everybody wants everybody to succeed. It's uh there's no competition out there. It's like the more we grow, the better we all are. We all love to see our name and every NBA stadium or whatever it is. We're only going to do that by growing the business together. So um that's been a big piece. But having people that understand the business, uh, when you tap into like the accounting department at the support center, um, you know, imagine doing this, and now you're hiring a CPA firm across town and you're having to explain to them the different nuances that come with this business and all the issues that they could run into. Um, but to have people in-house that understand that immediately and have other people they can go talk to within the same support center, that's that's been invaluable. And that goes for the uh that goes for the the uh BDS department, the business development. That goes for the um accounting. Um just and then like I mentioned earlier, the business coach is invaluable. Those are the three things I I'd point to for sure. And these calls, I remember listening to several of these calls before I even um made the decision uh to go down this road. And they're all a little bit different. Uh they're all a little bit the same, but they're all just enough different that it makes it, it made it all worthwhile. So I suggest listening to old calls and and things of that nature and and just finding out as much as you can.

SPEAKER_05 42:19

I think that's a good point, Ryan. I I you were on these calls not too long ago. I think it was maybe August, September of 2024 that you were in in the shoes on the other side. And it's pretty phenomenal that here you are 16 months later doing it yourself. So congratulations to you and and your success and the amount that you have you and David have ramped up at the market. I'm curious to know. As everybody has asked some great questions, is there anything that you remember asking not too long ago that you think, oh, we we should discuss this, or maybe this is the question you should be asking on these calls? Any advice you would give there?

SPEAKER_06 42:59

Well, I would say that the um to add on to what I just said about the support center and what you get, it's uh the training is off the charts good. Um, it's just, you know, I mentioned earlier I um I sold for Johnson and Johnson. I remember being locked away in a in a hotel in a lab for five weeks as we dissected pigs and learned about it. It's like the training was just unbelievable, right? But I gotta say, the training here at Citywide is um it's it's really detailed and really good. And Jeff Odo's a genius, I think, honestly. I I I've always said that. And his book I know, I know Samana cringed her eyes. I know, but it's like um, you know, the the model works. You follow this model and um it works, you know. It's uh this business has grown and the franchisees have have done as well as they have and citywide in general because of the model and how it works. And um, you follow that and follow the advice and the support of the folks there and the training, it uh it's really good. And yeah, yeah, I love this book.

SPEAKER_07 44:00

Put it on that back.

SPEAKER_06 44:01

Oh, did you? This book's really good, actually written by Jeff Odo. Um, I hadn't I hadn't even read it yet. And I went to um when I went to uh new uh franchise orientation, I think they called it NFO. Uh Michael Carp was there and uh he had just kind of gotten started as well. And he had just read this book and demanded I read it, and he was right. It's uh it's it lays it out everything perfectly. So it's all right there laid out, outlined the way it should be.

SPEAKER_05 44:30

And uh, Ryan's talking about is our foundation for success book. And um, you'll you receive it upon signing, um, but you also get weekly cadence emails regarding all of the chapters in it, and it's just uh kind of Jeff's brain, I would say, in a nutshell, the building of citywide how to make truly just the foundations of of success for the business and kind of the expectation to set with yourself, with your team, how to grow, um, and and all things in between. So I love that you have that right readily handy.

SPEAKER_06 45:06

I gotta give David credit on that one. We uh we actually pulled that out of the backpack.

SPEAKER_05 45:12

Awesome, guys. Well, we have a few minutes left. Is there anything else that you want to discuss? Any questions on your mind before we wrap this up?

SPEAKER_11 45:25

Awesome. Okay, going once, going twice.

SPEAKER_05 45:28

Oh, Pierre, you came off meal. You want to go?

SPEAKER_01 45:30

I just want to say thanks, Ryan. This has been super helpful. Appreciate it.

SPEAKER_06 45:34

Thank you for thank you, Ryan.

SPEAKER_02 45:36

Thank you for having today. Yeah, super valuable thanks today hiding behind the tree over there.

SPEAKER_06 45:43

Our pleasure, guys. Thank you so much.

SPEAKER_05 45:45

Yeah, thank you, Ryan. Thank you, David. See you guys later. Have a great day. See you soon.

SPEAKER_06 45:52

All right, yeah, see you soon. Same travels.

SPEAKER_05 45:55

You too.

SPEAKER_07 45:56

Yep.