#34: Tommy Mello

66 snips

Oct 30, 2023

Tommy Mello, owner of A1 Garage Door Service and host of the Home Service Expert podcast, shares insights on building wealth with recession-resistant, blue-collar service businesses. He discusses the importance of arbitrage, the success of home service businesses during pandemics and recessions, and the only 4 Key Performance Indicators he cares about. Tommy also shares his hiring strategies, his health regime, and the deal he made with Jesus during a difficult time. Learn about rebuilding wealth, using sales skills, and their favorite books, people, and quotes that have impacted their lives.

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ANECDOTE

Exit Built Wealth For Team

Tommy sold part of A1 to Cortech, rolling 47% and creating an equity incentive pool that paid employees about $25M.
The sale process was exhaustive, stressful, and involved deep audits, but it enabled massive wealth sharing.

ADVICE

Pay For CFO Expertise Early

Hire a CFO or a fractional CFO early; their expertise saves taxes, renegotiates contracts, and improves cash flow.
Treat CFOs as growth multipliers, not just cost centers, because they protect and unlock EBITDA.

ADVICE

Don't Cut Marketing In A Downturn

In downturns, stop cutting marketing first and instead tighten operations: lean out staff, top-grade, and optimize booking and conversion.
Raise price by increasing perceived value and attentiveness rather than just trimming costs.

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Tommy Mello is the owner and operator of A1 Garage Door Service, one of the most successful home service businesses in the country. He also hosts the Home Service Expert podcast, was named a Top Entrepreneur Under 35, and owns and invests in several other businesses ranging from Christmas lights to mobile apps.

In this episode, Tommy breaks down how you can build wealth with recession-resistant, blue-collar service businesses – and how to have fun doing it. You'll learn how he went from $50,000 in debt to a massive exit and "life-changing" money, all while helping his team members achieve their own dreams and undergoing a personal evolution in his leadership, health, and faith.

Tommy also shares:

- Why arbitrage is the one business skill to rule them all
- Why home service businesses thrive despite pandemics, recessions, and the advent of AI
- Vanity metrics and the only 4 Key Performance Indicators (KPI's) he cares about
- Why you should "always be recruiting," and why he doesn't worry about giving away secrets to his competition
- The #1 mistake he sees people make when starting service businesses
- How to hire A-players and motivate them with equity and other performance incentives
- His religious faith and the "deal" he made with Jesus when his father was on the brink of death
- His health regime: Testosterone Replacement Therapy (TRT), supplements, and massage
- The health benefits he's experienced since abstaining from alcohol
- Exactly what he'd do if he had to start over with no money

Tommy's Charitable Cause:

The Johns Hopkins Center for Health Security, an "independent, nonprofit organization that works to protect people's health from epidemics and pandemics and ensures that communities are resilient to major challenges." *

*All ad revenue from this episode is donated directly to the charity of the guest's choice

Connect with Tommy:
- Instagram
- TikTok
- Home Service Expert Facebook Group
- Home Service Expert Podcast
- Freedom Event Conference Nov 1-3 in Orlando
- Tommy's book, "Home Service Millionaire"