Franchise Friday - Episode 201 with Lukas Krause and Kyle Gjersee of Sky Run Vacation Rentals

In this episode of The Franchise Friday Podcast Melissa Pang Talks with Lukas and Kyle of SkyRun Vacation Rentals.

Franchise Friday, where you can watch or listen as we explore franchising, entrepreneurship, and small business ownership speaking with the franchise industry thought leaders and subject matter experts that shape the Future Of Franchising. #FranchiseFriday - For more about our podcast visit our website: https://futureoffranchising.com/ Produced by Franchise Source Brands International and The Entrepreneur's Source.

For more about our podcast visit our website:
https://futureoffranchising.com/

More about Lukas and Kyle with SkyRun Vacation Rentals:
https://www.skyrun.com/

About SkyRun:

In 2004, Barry Cox and Steve Falk created SkyRun Vacation Rentals, a single-location property management company in Keystone, Colorado. Barry had a tech and business consulting background, whereas Steve's background was in legal and market development. They both shared a vision and values while offering complementary skills to one another. As they would later discover, this was a recipe for success.

Before they knew it, it was 2007, the company was growing, and the industry was booming. This was an era Barry likes to refer to as the ‘powder days.’ In the mountains, powder days are the days when you get a foot plus of light, fluffy new snow when the fun and ease of being on the mountain is magnified one-hundred times, and everyone calls in sick to work.

Throughout that era, Barry and Steve acquired knowledge from three years of professional property management and networking with their peers at conferences and decided that SkyRun's future belonged to multi-location property managers. So, Barry and Steve decided to license their brand, process, and systems and enable local entrepreneurs to serve vacation guests and property owners the way the industry has for decades. Locally. As Robert Frost would say, Barry and Steve's decision “has made all the difference.”

Currently, SkyRun is a rapidly growing multi-location organization with over 900 properties in over 25 locations. We have created the sweet spot in vacation rental management by combining the advantages of local ownership and management with the efficiencies, power, and support of a national brand. We also never forget that guests don’t just want to stay like a local; they want to play like a local, and SkyRun ensures that happens.

About The Entrepreneur's Source Future of Franchising

Driven to help franchisors recruit top performers.

From day one, it’s been our mission to help individuals explore self-sufficiency as an alternative career. We help them define their Income, Lifestyle, Wealth, and Equity goals and provide education on the possibilities to best achieve these goals. We don’t sell franchises – we help people achieve their dreams of self-sufficiency through business ownership. The approach is different, the experience is different. And it works.

10,000+ Seekers Monthly
Thanks to $2 million per year invested in digital advertising

95% of TES clients
discover opportunities they would never have considered

9x Increase in Conversions
Our Career Ownership Coaching™ method prepares candidates to act on opportunities

$1+ Billion
Collectively invested by TES cl

Franchise Friday, where you can watch or listen as we explore franchising, entrepreneurship, and small business ownership, speaking with the franchise industry thought leaders and subject matter experts that shape the Future Of Franchising. #FranchiseFriday – For more about our podcast, visit our website: https://futureoffranchising.com/ Produced by Franchise Source Brands International and The Entrepreneur’s Source.

Transcript

Unknown: 0:14

Hey everybody, this is Melissa Pang with the entrepreneur source. And I am here with Lucas and Kyle with Sky run. So really excited to have you guys here. First and foremost, I would like to just give you guys the opportunity to give a little background a little intro on, on how you got here. So I'll start with you, Lucas and then go to Kyle. Okay, yeah, well, I've been with Skyline here for about 11 months taking the helm, taking over for our own, or one of our owners, co founders, who built an amazing technology in the vacation rental space. And we are a group that is you know, as you know, a very hot segment, and just primed for a lot of growth in our space. It's a very fragmented industry. And it's just a great opportunity and a nice kind of business with reoccurring and predictable revenue models as you grow. I've been in the real estate space for the last, you know, 12 plus years building one of the largest single family property management companies in the country, previously, and Kyle and I know each other from our earlier days in the franchise space in the food side with Quiznos in the early 2000s. So been around franchisee for almost about 20 years. And Kyle who will hand off to hear a little bit about his backgrounds got me beat on that a little more time in franchising than me. Thank you, Lucas. Lucas and I have known each other for going on 20 years. And we connected about, what, four months ago, I believe. And as we started to transition from a license concept to a franchise concept, and we saw the opportunity to really scale it. And you guys were one of the first people that on the list that we wanted to connect with. So, you know, it's been pretty exciting so far, and we've just barely scratched the surface. So it's good to be here. Love it. I'm really glad to be talking with you. And yeah, this was really exciting one because I want to say you guys joined with the entrepreneur source about three months ago. And the February timeframe. So yeah, very quick. Yeah, so it happened. And now here we are. And it's Yeah, three, four months later, and you guys find your first brand, or your first franchisee through T because I'm sorry, your first licensee through T S, your first licensee through te S, which is really exciting. So I want to start there and kind of chat about that. So can you tell me a little bit about just the experience working with the client, where he came from? And how, how you worked with him and the coach Steve, through this kind of time period? Like how would you take lead off? I mean, as you ran point and manage, you know, most of the interactions and was more of a supportive hands was one of our first leads and came to us through you guys. And it was kind of set the groundwork for kind of what we're doing now. Right, we learned a lot kind of through that process. And Hans was, what was what was his background? Lucas? So ran a family business executive or a family business really great profile of what we're looking for. I mean, like you said, not only a first lead, but really prime candidate, we're looking for individuals who are trying to replace significant income because of what the potential these businesses are. But continue. Yes. So and he lived in Wisconsin, and owned a condo in Siesta Key, I believe. And so Sarasota, and that whole territory became kind of something he was very, very interested in. What I would say about hands is his due diligence was excellent. He asked the right questions. He, you know, did his due diligence, talk to licensees did his own pro forma, he was that kind of person that didn't take this lightly at all. And, you know, I think I think Lucas would agree as Hans started training already, that he's going to be a high performer for us. Yeah. Well said, I mean, you know, we've been through this right for, you know, 20 years, 30 years for you, Kyle, but he fits the great profile, not only of the kind of candidate we want to ambitious, but someone who really, you know, was engaged in the process for due diligence and really under tried to understand us because, you know, the way you look at it, and most of you know, this, it's, it really is such an important marriage, not only of what, you know, the business offers, but you know, getting like, you know, like minded individuals who have kind of similar ambitions and we want folks who are going to really build Significant businesses and have those aspirations. And it just was such a great fit, but his thoroughness was top notch. And so we really appreciate it. That's because we're happy to roll that out. And these are, these are big decisions. I mean, you know, TSA is such a great job of help prepping to come here. But this is a life change for individuals. And so love when you see that not only when it works out, but someone who does take that seriously and understand the significance of that kind of decision to make a transition. I love this story. And there are a few things like just a few points that you guys mentioned, one, Kyle, you said he was living in kind of these, like Northern State had a home or some kind of connection to Florida, and was able to we talk about income, lifestyle, wealth equity all day long. And so he was able to connect his lifestyle and kind of that piece of it with skyrun, which I think is awesome. And then also, you know, you're saying he was really, really thorough, he was really excited to go through, what was it about Skyrim that like, not everyone is going to eat it there. I feel like there's a reason for being thorough, like there was something about it that excited him something about it, that was like, Wow, I love this. And I'm going to do my due diligence, because I want to get kind of keep this moving and get where I want to go. So I guess two questions. One is, what was it about Skyrim? That really excited him? And was there a certain point that you saw something kind of click or like he made a connection was like, Nope, this is, this is really what I want to do. You know what one thing I'll step in there real quick is, you know, he definitely didn't want to keep living in Wisconsin. And you know, his vision was, I want to, I want to go live, you know, in Siesta Key at my condo, that was kind of an in sky ride. And with the great opportunity, just it all lined really, really well, you know, not to say that we're going to have all kinds of prospects that go, I live here, and I'm moving here, and I'm going to do sky run. You know, that's kind of rare. I would, I would say, but I think it fit kind of what Lucas said. It's kind of like his, his lifestyle. And, you know, he he was looking for some something different, but aligned with what he wanted to do long term, the next step of his life. Yeah, I think you said it. Well. I mean, there was the element of wanting to be you know, in Florida and the opportunity there. But Hans also has really ambitious and what he wants to do, and not only replacing a large income, has a very clear target of what he wants to do and build his business up to. And as we talked about, you know, our business is, you know, has kind of almost unlimited potential and different in most markets. And so, you know, as he went through the validation process, I think, that really hit home of what this could be potentially in a great return on his investment, not only from a pure dollars, but from time, as he was exploring a few other options. It became, you know, really the way he shared it with us, you know, the most compelling not only from what we're offering in the industry in the space, but even the economics. That was awesome. And again, just like hearing these stories, too, because we always talk about client experience. So sounds like Hans, or Hans had a great experience with you guys being able to get kind of those pieces of information that he was looking for in order to meet his goals and things like that. And then also, I'm going to switch it over to the coach piece of it. And Steve, and so how did that how was your experience there as well? And how did that kind of how did that play a role as well into Hance moving forward and really getting excited about this and eventually moving to where he you know, signed and became a licensee? Have you? Yeah, I probably dealt with Steve more than Lucas did. So. You know, one of the things about the coaches that in Steve really kind of hit this home is finding a good fit for people. Because when he got to know hands at a certain level, obviously skywriting became something that he felt was a good fit. And Steve's super responsive anytime I needed anything, you know, we communicate really well, you know, I, I never have a lack of communication through coaches ever, ever. So you know, and that's helpful. So, you know, and just trying to figure out how it fits and things like that. I thought Steve did a great job. Number one matching hands with the right brands. Because I know what one of the other ones but supporting him along the way. I think Hans would say that Steve was a great ally of his so you know, very responsive, you know, obviously, it was a great fit. So Steve knew something along the way that enhance may be a good fit for for skyline. Great, and were there any, like highlights or anything that kind of stuck out to you during the time that Hans was looking at Skyrunner that you were working with? With Steve, I mentioned that Hans really did his due diligence Is there anything else where you're like, wow, you know, there was like a challenge or an obstacle that was overcome, or just something that stuck out to you for whatever reason. And I'm not saying that's totally Yeah, some, you know, sometimes things go on behind the scenes. Right. So, you know, I, I liken it to, you know, I know, Steve was working with him in regards to maybe how his due diligence should be executed. Which because Han seemed to be very, and I think that was a lot of haunts, too, but very focused on specific things about the business. And then every time we got on a phone call with him, I'm pretty sure he talked to Steve about something, you know, I mean, because he just continued to progress. And, yeah, love to say it was all Lucas and I, but I would tell you, it wasn't just Lucas and I, yeah, yeah. You know, from my vantage point, I think one thing that, you know, kind of the team do such a great job is that we have our process and what we go through, but we do want to tailor to the individuals, everyone's going through this discovery journey a little differently. You know, and we talked about Hans being thorough, so there were added elements to just make sure that there was comfort from both sides, we were, I think, very comfortable, just at the level of depth that he wanted to get into that this is someone who's really serious and gonna, you know, bring professionalism. But you know, you know, we had multiple different calls where it was myself and other members of the team during the discovery process to tailor it. And so we always kind of liked to see it as an almost an accordion of a process and kind of adapting and necessary of what is right for the individual, because it is truly, we look at it as we want to get to a result of is this or is this the right fit for us. And that is not only the candy, but also, you know, us as of licensor or not. And we're willing to invest the time, because in this people side is such an important part of the equation. And as Kyle mentioned, Steve, I just did instrumental role in just fitting into that, and really helping as we went through that journey. And you mentioned a lot of key things there. And especially the part about process, and then you tailor it, so you're not, you know, throwing the process out or changing it or creating a new one for every single candidate who comes through, you have the steps, there's structure there, but I really like that, like the accordion, so it's like some draw it out a little bit. Some you're just like, Alright, here we go. And, and they kind of move forward and move through at their own pace when it comes to skyrun. But also, I think, just in general, you mentioned, Lucas, that this is a really big life decision. When you look at working with candidates, can you speak a little bit more about what's really important to you from like, when you're working with candidates, what's really important to you? And then also, on the other side? What do you do to really like, what do you see that's really important for the candidate, if that makes sense? Like what's valuable to you? What's valuable to the candidate as they're going through the discovery journey? Because I think sometimes it gets lost? It does. It's a great question. And I think it's layered on and so many elements, I mean, there, I think there's a such an important of the working relationship, and really getting to know how you know, how this will work out, because you can define as much as you want, and a license agreement, a franchise, or whatever it is. But this is a 510 year relationship. And this is person making a life change, how they're going to view things. And so having core values of how they view, you know, really view business, the world and how they fit into that family dynamic. And really, that's what we try to build, you know, any brand I've ever been with that that's when it's different, because you're not always going to see everything eye to eye. And so it is talking through that really understand what drives and motivates and so it's almost those soft, squishy elements that is kind of that overarching piece, then you're digging into really is this an individual who is going to have be successful, there's a skill set, but there's amazing people that may check box one, you know, the soft, squishy values, right? Everything. They may have the skill set, but are they in a position in life? And are they going to be able to dedicate the time and energy that fit with the brand and so it's almost like three legs of the stool is kind of how we view it and checking all those boxes. Because this is such a long term, you know, relationship and investment. You want to get it right and there's no guarantees, but if you if you get if you have all three of those elements, more likely than not you're going to have a situation that's just going to be a big one. Yeah, and you know, to tag onto that when you talk about process so we have a pretty stringent process that's very flexible. So you In Hans's example, he was all about the numbers, right? So we spent a lot of time kind of working the numbers and understanding how the business scales and think that's where his comfort level came from. But he didn't come to discovery day, which is interesting. So he didn't feel he needed to. And I think, right, because we augmented the process with a lot of the, I'd say, the discovery elements probably earlier in the process, that reshard Yeah, so, but again, it's adapting to where we're at. And, you know, some folks with you know, given the travel, you know, COVID is created to, you know, a little different approach sometimes to that process. Yeah, and, you know, we also do, you know, like, some people, you can tell where their heads that hands is very numbers driven, right, we've got another Prospect that's very operations driven. So discovery day became very important to that person, you know, what I mean, or we may fold into a marketing presentation, maybe they want to know about marketing. So we'll have our Head of Marketing come in and do a presentation along the way. So, you know, it's having a great solid process, but also being flexible enough to address the needs of the prospect is incredibly important. I love hearing it, because, you know, we talk about it a lot, you know, process versus experience for coaches, for franchisors on both sides, you notice in this space, but and to kind of tie it back, you know, where it's like an investment of time, especially when you're both going into this long term, I think a lot of times, just, you know, going into this looking at bringing in people into the system, is looking at a lot of people look at the short term, they like like the short game, you know, let's just get them in, let's sell the territory, let's award the franchise, or, you know, the, the license, let's sell the territory, and, and then we'll, we'll figure it out from there. But I love what you guys are saying, because I don't know how many people are actually saying this. And again, you can speak more to this, but really no take the time, and it's going to be worth it in the long run. I don't know anything on that, like investment it is. And so Kyle's already heard this because we say it often in our meetings, that we don't take this lightly. I mean, Kyle and I both been around the block and seen, you know, organizations that whether we've been on board advisory or part of them, in one way or another that maybe did you know, to this trip that short path and direct and maybe you know, it's just, it's such a short sighted way of viewing it, it ended up paying for it in the long run, no one wins and ends up in a bad position. Um, you know, as you know, my position, I'm actually very active in this, because it to me, it models the right investment, you vote with your time and your wallet. And so I've left large organizations with several 100 employees, and I try to be as part of a part of the interview process much of the interview process is I can be. And so that's just with hiring employees, because the people is our is what the business is all about, you're gonna have the best laid strategy, but if you can't have the best people that you know that to execute it, you're going to fail. And so it's the same thing, when we talk about bringing on new location owners, and making that investment time. And you know, to use hands as an example, you know, it's kind of driving the process, but maybe what did I hit was part of what, five to seven different, you know, meetings with them in that process. Because it was the right thing for where we're doing in really making sure that we're all comfortable. And, you know, Hans is looking at, where are we going strategically, and that was an important piece that we spent that time someone's looking at the highest level. And so, you know, you know, people ask, I, if I can model the right way and be there at time, no one else really can have the excuse of like, I'm too busy, this is not important. And so it is kind of leading by example, that people part of it is just as critical. And so you know, if you do that, and there's no guarantees, but if you invest the time, more likely than not, you're gonna have greater successes. And you know, it's not necessarily about an Lukas and I have been, it's not about the quantity, it's about the quality, you know what I mean? So, if you really think about, I was explaining this to some franchisor the other day is you look at franchisees as an asset of your company, and the great ones will continue to build their wealth and grow the brand and although I would rather have less, you know, more of those than less of folks that you short sighted, you know what I mean? They probably weren't a great fit. They were an okay fit in the life cycle of Skyrim. We can't have a case that's just not that'll never be okay. But especially now, you know, as we're really starting to push development in scale the brand hands it's incredibly important for him to be success. Well, in his mind, but same with us, he's got to be successful on our end too. So, you know, finding that right person and spending a lot of time with him, just to make sure, you know, you're never going to be 100% there, but you get as close as you can, the only way the business works, if they're not successful, there is no business. And so it's, it's a really simple concept. But it's amazing how many people miss that. That piece. Agree, 100%? No, I love all of this. And I'm also looking at it from you know, like, you guys have this mindset of, we're going to invest the time, we're going to look for the right fit. And that isn't just right fit on paper, that's, you know, this three legged stool, there's so many components here, we're willing to, you know, adapt and change a little bit on our side to really, you know, meet the client meet the candidate, where he or she is at. And I think because you guys have that mindset, that's going to come out in your conversations with the candidates, so that you're also attracting the candidates who are in that same who appreciate that and understand that and can feel that. And so, I think we've kind of done, you know, talked about this a bit, I would say this is a little bit of like a study for any like emerging franchise, or anyone who really just wanted like a really quick overview on how to work with franchise candidates in the right way. But, you know, if you if I was an emerging franchise, or a brand or brand been around for a while, but looking to grow, what would you tell me is like, the one thing that I should focus on, as I'm starting to grow, and that's kind of a big thing, but from each of you like one different thing where you're like, you know, what, focus on this, this is important, and you'll do it the right way, like, Don't worry, how would you wanna go first? Okay, well, I have one thing, right, that's more pilots, I have two things, and we touched on the first one is, you know, I, I do know that you know, as an emerging brand. Getting franchisees is like, incredibly important. And you talk to a lot of emerging brands out there, and they say, I wish I would have known what I know, now back then. And I selected some people that probably weren't great fit for the brand. So you having the ability to find the right people, especially in the beginning to help you kind of scale it is is huge, right. And then the other thing is, it all comes down to systems and processes. You know what I mean? I don't, I don't, I don't care if you have one franchisee, or 100 franchisees, you need to have your systems and processes nailed down, you know, whether it's development or operations or whatever. Because, you know, truth be told, great prospects are looking at a bunch of different brands, they're just not looking at you. So and they pick it accordingly, based on kind of, you know, their cultural fit with the brand, but also, more importantly, they, I want to learn from you, and I want to follow your processes to be successful. So if you don't have a solid ops manual, or you don't know how to open locations, or the list goes on, and on and on, people are going to choose other brands that have that figured out. Those are my two things. Yeah, I'll just build off because I think you said it. Well. I mean, it is having that long lens, I think everyone's looking for that instant gratification. And it's just, it creates a virtuous cycle by getting the right people in and cultivating those strong relationships, setting people up for success. Investing in it is just, it's the foundation of it all. If you don't have successful operate, you're not gonna be able to sell to new folks, because then your existing aren't happy. And so I've been you know, to, you know, like, grew from emerging brands to large brands to turn around. And it's just getting that foundation, right. Everything else kind of falls into place. If you have a solid model, you take either take care of your people set them up for success. Everything else kind of falls into place. There's just like anything, there's no real shortcuts if you do the right things and have good habits. More likely than not good things end up happening. You know what? The truth is no, I think the tagline should be there are no real shortcuts. I'm gonna put it on a t shirt. Yeah. Like t shirt or something because that T shirt. I'll wear it at Savannah for the conference. You know, I'll just that's all aware. All right. All right, doing it. We're ready. No. All right. So just to wrap it up. Like I'll say, I just liked it. You. You really put it into these. It's pretty like simple. There are no shortcuts, but it's simple. Like you take care of your people. You set up the support, invest time, energy, He effort into your business into your people. And, and the right people are going to show up, you know, like, if you build it, they will come type of thing, again, kind of hokey, but that's true. No, and, and also doing it for the right reasons, you know, like, are you building this to? Are you building your business and your brand, so that other people can benefit, of course, there's, it's, it's a win win when done right. But also, are you looking to help people change their life and be able to have that, you know, income and lifestyle, wealth and equity that we talked about, that they've been looking for, and wanting to help them succeed. And I think coming again, you know, we're talking about, you know, kind of being like little up in the up in the clouds, but it's true, like, when you have that as your, I think you're talking about core values, when you have that as your mission, then you're gonna attract really great people who align with that. So just, I think identifying what that is, as well from the start is just going to help your, it's going to guide the entire journey for you and for the candidate to do does. And then since we're playing in this space, we'll do it. I mean, if you look at our strategic plan, there's kind of an overarching element that guides at all to make dreams possible. That drives what we do at Sr. And there's, there's three elements that it's, you know, it's putting our location owners in a position to make their aspirations, you know, a reality for our employees, putting them in a position to have the career that they want and develop the skills to create those opportunities and then build skyrun into the business it deserves to be. And so those are kind of the guiding before we get in kind of the strategic pillars underneath it, but that is the overarching element. That's awesome. All right. Well, thank you guys so much. skyrun. Lucas, and Kyle, thank you so much for having a conversation with me today. And we'll be chatting congrats on your newest location. Oh, thank you. We're excited. Thanks, Melissa. All right.