Notes Section

In today’s interview we interview the CEO & Co founder of the Sir Grout Franchise, Tom Lindberg.

SIR GROUT  offers its owners multiple revenue streams – it’s like having five franchises for the price of one! We are the first home services franchise to offer grout and tile restoration, stone restoration, sandless wood floor restoration, bathroom remodeling and slip resistance applications to the consumer and commercial markets

He will show you how you can own a grout, tile and restoration business that will schedule jobs for you. This truly is a business in a box

Learn More at : http://bit.ly/boomersgrout

Schedule A Free Consultation

We are only available Monday - Friday from 10am - 4pm

Transcript

0:00
this is boomer income ideas dot-com and
0:04
your host Dan Farnsworth if you’re like
0:07
me believe that with the millennial
0:09
generation finally moving out of their
0:10
current homes and forming their own
0:12
households that the home-improvement
0:14
segment is about to explode and you’d
0:18
like to take advantage of that you’re
0:19
going to want to stay tuned to show that
0:21
we’re going to talk with Tom rundberg
0:24
CEO of your grout franchise llt and
0:28
you’ve got a niche market that we’re
0:29
going to check out
0:35
[Music]
0:52
[Music]
1:05
hey top thanks for joining me today
1:15
great game great to be with you one when
1:19
i came across the sure grout and before
1:23
I really looked into your your company
1:26
I i was thinking to myself out of
1:28
someone make a business out of grout and
1:30
then I found out that you were much more
1:32
than that so we’re going to talk a lot
1:34
about that but before we do that can we
1:36
talk a little bit about your journey and
1:38
how you got to be the CEO of surgery of
1:42
franchise LLC
1:44
sure sure BNI i started out with a
1:49
consumer products background we sold
1:54
Prestone II antifreeze glad bags the
1:59
consumer products so I start off in
2:01
sales and made my way from sales into
2:05
headquarters into the marketing
2:07
department that became director of
2:09
marketing globally for our brands so I
2:14
my background is consumer products the
2:18
last large company work with was
2:21
honeywell I was vice-president all of
2:23
our international operations around the
2:24
world and then I got headhunted way to
2:28
become CEO of the company called inner
2:30
dynamics I so people were confused when
2:35
i started talking about the hard surface
2:38
industry but I was compelled to leave my
2:42
corporate career because my moral
2:45
compass began to flicker and basically
2:48
did not want to participate in that
2:50
world anymore i donít I i was
2:53
successful i did well but I was not
2:57
emotionally fulfilled and 54 I can have
3:04
a corporate career if i wanted one but I
3:05
i don’t really enjoy ya when I think
3:08
that the i think is very important to
3:10
point out because that’s exactly what my
3:12
shows all about it’s it’s the baby
3:15
boomers me you
3:16
other people just like us who had
3:18
careers and in corporate one time and
3:21
for whatever reason were no longer in
3:23
that world whether we chose to not be in
3:26
that world or it was chosen for us right
3:29
right
3:30
finding that second career finding that
3:32
new meaning in life is really what’s
3:34
important right now yeah and it sounds
3:36
to me like you really found that and
3:38
figure out we sure did
3:42
lo and behold there’s tile and grout to
3:45
everywhere both residential II and
3:48
commercially it always goes bad dirty
3:52
mop water soaks into what we described a
3:54
dry sponge people don’t attract the
3:58
dirty wastewater when they clean the
4:00
floors of course all of our showers are
4:02
glassed-in they turn the terrariums they
4:04
start to look bad so once with so i sort
4:07
of stumbled into this this industry and
4:10
recognize that the the size of it and
4:13
recognize that people were really
4:14
frustrated that they could not clean it
4:17
themselves and that’s because the ground
4:19
is stained like I tell people it’s like
4:23
a mustard stain on your shirt right you
4:24
can’t you can fade it out a little bit
4:26
but you can never remove it right all
4:28
right
4:28
and again when I when I first looked
4:30
into this I was kind of skeptical but
4:32
then when I realized that you really are
4:34
in a specific niche in the home
4:37
improvement space that she wasn’t going
4:40
to blast off
4:41
I mean I was right as the millennial
4:43
generation are starting to acquire their
4:45
homes and their always requiring older
4:48
homes that they’re going to fix up and
4:50
and people like you and me are acquiring
4:53
income properties and things along those
4:55
lines to fix up and run out
4:57
I mean that’s right i believe that this
4:58
industry is just a you know on the
5:01
launch pad to explode so let’s talk a
5:03
little bit about specifics about what
5:05
sir grout actually does what use is a
5:08
hard surface refinishing company that’s
5:12
right that’s right we we come into
5:14
primarily homes were primarily
5:17
residential I’ll we look at the kitchens
5:20
hallways bathrooms showers anywhere
5:24
where there’s tiling drought or natural
5:27
stone for that matter
5:28
and typically all those surfaces are
5:32
maintained in incorrectly but most
5:34
people use vinegar bleach and ammonia
5:36
they don’t attract the dirty wastewater
5:38
and all that soaks into all those
5:40
materials and eventually it just starts
5:43
looking sour and people are very
5:46
frustrated because no matter what they
5:47
do to it they can’t you know we claim
5:50
that they can make it look nice again so
5:53
our value proposition is quite simple we
5:55
can make it look brand new or better the
5:58
new and that’s without any construction
6:01
and that’s without any remodeling so we
6:03
have a set of techniques and processes
6:06
that can we knew your tile and grout and
6:09
stone to brand new so that’s that’s what
6:14
we do when it just it just blossomed
6:16
know all of this is being done through
6:21
your franchising network is that correct
6:23
that’s correct we have 37 locations here
6:27
in the US
6:28
excuse me 36 locations here in the US
6:30
and one in singapore armed were in 17
6:34
states we just opened up
6:36
nashville tennessee this week so tell me
6:40
a little bit about the the profile of a
6:42
typical franchisee is he is he you know
6:45
one guy pickup truck and a dog or does
6:48
he have a team of people is he mostly
6:50
going out and building on jobs and then
6:53
bringing technicians in or he actually
6:56
in there doing the work himself who he
7:00
has a team all of our owners most of our
7:03
owners are out in the field just going
7:07
on sales calls and then they had a team
7:10
of technicians and i have one band two
7:12
bands 3-band sidebands but know the
7:15
owner of the company is primarily
7:17
responsible for making the sales calls
7:19
and he has technicians in the field and
7:23
we have quite a quite a mix we have some
7:26
folks that came out of retirement that
7:30
our server franchise owners we have a
7:34
couple bit of come on college at the
7:36
first career and everything in between
7:40
on myself and a handful were were once
7:43
that came out of the corporate world and
7:44
decided to have this is the second
7:47
business because it is a home-based
7:48
business as well so it attracts you know
7:53
quite a few people that you have a
7:55
fairly new franchisee I guess his name
7:58
is chris McDermott that hasn’t been with
8:00
you that long but he the thing that I
8:02
kind of picked up on it looks like us I
8:05
mean he looks like kind of a baby boomer
8:06
that’s you know yeah that’s getting into
8:09
this as there’s a new chapter of his
8:11
life and I’m like century is new
8:14
tell us a little about what he needed to
8:16
have in place to become a franchisee
8:19
what he can expect you know where he’s
8:22
at right now and has passed how long has
8:24
he been with you
8:25
he’s been with us for a few years now
8:28
Tom he’s in south south jersey arm he’s
8:32
had a couple different careers and he
8:35
reached out to us he saw that we were
8:37
unique and novel i love the fact that it
8:40
was also home based and he loved the
8:43
fact that we would be driving leads to
8:46
him so things that were compelling to
8:50
him he heard about our training we have
8:55
very intensive training myself and my
8:58
partner remain your coach and mentor to
9:01
make sure you’re successful so he really
9:03
enjoyed the you know the support that he
9:05
was going to get it continues to get to
9:07
this day and he was just compelled he
9:13
saw in his own marketplace of the
9:16
frustration that people had over he
9:17
looked at his own home and pencil
9:19
similar to you
9:21
relatively new franchise has actually
9:31
been with us for a year and a half since
9:34
we’ll ask you a few questions like this
9:38
period of time
9:39
Shan know how we’re doing and we really
9:43
want to know your feet that training God
9:47
for that you got going to make sure
9:51
you’re getting with a well-defined off
9:54
for sure
9:56
yeah all i actually was doing due
9:59
diligence on but the former competitors
10:03
my area
10:04
Michelle learning more about the
10:07
industry and well look through all the
10:09
other folks business throughout just
10:15
above beyond from a training perspective
10:18
professionalism hire models was later
10:22
with Chris what kind of capitalization
10:27
that he really realistically need in
10:30
place to hit him from zero to a point
10:33
where he was actually making an echo
10:35
yeah arm while are all of our franchise
10:38
cost come in at less than a hundred
10:40
thousand probably 75,000 on average all
10:44
in for the franchise and include your
10:46
vehicle your equipment in all your
10:49
supplies most of our franchises are our
10:53
past breakeven you know within the first
10:56
year and that’s generally that’s not a
10:58
problem my which they are our median
11:01
revenue franchise about 350,000 these
11:06
days i’m working on item 19 or and RFD
11:08
right now our biggest location in
11:12
Chicago did a million to last year
11:14
ok so there’s quite a quite a range it’s
11:17
all up to the individual hard they want
11:19
to work or are they you know they don’t
11:22
want to work on Christmas sermon he’s a
11:24
hard driver is doing well
11:26
we’re really proud of him and he’s got a
11:29
good team got a good team underneath the
11:32
one thing that really caught my
11:33
attention as you’ve got a business
11:35
scheduling call center i right where
11:39
most companies tell their franchisees
11:41
while you’re going to buy a business and
11:44
we’re going to show you how to run it
11:45
and then you’re gonna go bring their
11:46
lead yourself you actually do
11:48
advertising drive leads to a call center
11:51
of these it’s call centers schedule the
11:54
franchise appointments for them tell me
11:56
a little bit about that
11:58
so uh one of our primary goals is what i
12:01
described his first time resolution when
12:04
a customer calls we want he or she to
12:08
get a live person and we want them to be
12:11
spoken to be built the phone picked up
12:14
before the third ring so to your point
12:16
we we actually don’t allow any of our
12:19
franchises to take their own phone calls
12:21
we have our own call center we want to
12:23
answer them live
12:25
last year we had over 30,000 phone calls
12:27
and we answered ninety-six percent of
12:29
them before the third ring so we don’t
12:31
want to miss any opportunities are
12:33
franchises are out in the field so we
12:38
collect all the warm leads for them
12:40
where we document them and we put them
12:43
on our on our software so they just log
12:46
in each morning and there’s your
12:48
schedule
12:49
yeah i think that’s that’s outstanding
12:53
there are very very few companies that
12:55
take it to that level now when these
12:58
franchises go out and make these calls
13:00
and their bidding on these jobs you can
13:03
uh what kind of close ratio can they
13:05
expect average close rate is fifty
13:08
percent uh are our highest is
13:11
seventy-three percent so so again the
13:16
issue that people have it’s everywhere
13:19
its ubiquitous and usually when we go on
13:22
a sales call Dan the customer has
13:25
already tried everything they’ve tried
13:28
all the household cleaning chemicals
13:29
they’ve already going to home depot or
13:31
lowes and tried you know other a ways to
13:34
try to clean and spruce up the ground
13:36
ball unsuccessful so our leads are true
13:40
he very motivated we just need to answer
13:43
the call life when you show up on time
13:45
we have a very prescriptive a
13:48
presentation that we give which includes
13:51
samples
13:52
uh-ho see before-and-after photos so
13:55
these are these are warm mom clients
13:59
that are are really anxious to get this
14:01
done tonight i might add we grew our
14:04
fastest through the recession we started
14:07
this business in 2007 no I at my point
14:11
is people have not pushed off wanting to
14:15
look and feel clean
14:16
yeah well I got some properties down
14:19
here in Florida that the I need you to
14:22
have a franchisee down here because he
14:24
and everything down here the tile floor
14:26
and that’s right you have an income
14:28
property and you’re showing it because
14:30
you the old tenants moved out and you’re
14:32
trying to clean it up and get ready for
14:34
for showing you want to look as new and
14:37
fresh as possible and we write when you
14:40
have that dirty grouts seems they’re
14:44
walking into the living room it just put
14:46
up bail over the entire experience where
14:49
that when you walk in and and it’s it’s
14:51
gleaming it looks like its brand-new
14:53
tile you have a huge impact yellow I can
14:58
I i mean i can see all kinds of uses
15:01
that I would use of years the other one
15:03
that really caught my attention was this
15:05
a restyle your tile thing that you can
15:08
just came out he’s got a little bit
15:10
about that
15:11
yeah um we can take a shower for example
15:16
that maybe it’s an old shower maybe 60
15:19
seventies 4 inch tile for example and we
15:23
can actually tile right over your
15:25
existing tile
15:26
yeah it’s a very thin tile it’s about
15:28
the with the two dimes and we can’t i’ll
15:31
read over your tile without any
15:33
remodeling we don’t have to knock your
15:34
existing shower down we can actually
15:36
just I’ll right over the topical I think
15:38
it’s amazing I mean any of us that have
15:40
gone through that experience whether
15:43
we’ve done it with our own houses or
15:45
we’ve done it with
15:46
the our income properties or whatever
15:48
when the idea that you can you can go in
15:51
and and put basically a a clean veneer
15:54
over the existing circles without having
15:56
to demo that is just right standing what
15:59
kind of savings can you expect with that
16:02
all armed it can be as much as half as a
16:08
remodel on but more importantly to our
16:10
customers they tell us they love the
16:12
fact that we can get it done in a day
16:14
yeah most of most of the remodels take
16:16
you know 45 days and you have all the
16:19
master and dust and inconvenience
16:21
associated with it so the reality of it
16:23
with our customers most of the time it’s
16:25
not price related its convenience
16:28
yeah I’m for style as well general guy
16:31
and chicago i think his name is dan I
16:33
can’t recalls last night
16:35
yes then lunch that ok anything to be
16:37
doing pretty well I think he has four
16:38
territories around here
16:40
he has four territories he had to and
16:43
then the beginning of last year he
16:45
decided to buy two more
16:47
no we’re quite proud and most of our
16:50
owners go on to buy a second territory
16:52
they validate the model initially and
16:56
then may sneak around geography outside
16:59
their initial territory and they go on
17:01
to buy second and this attitude to
17:03
basically take the entire city of
17:04
Chicago so what is a territory is that
17:07
is a geographically bound as it up by
17:10
population-based yes our minimum
17:12
territory is equals a hundred and
17:15
seventy-five thousand from single-family
17:18
homes so it didn’t include you know
17:21
apartment buildings but single-family
17:22
homes i would say anywhere from minimums
17:26
175 but some of our territories go up
17:28
too much as 250,000 single-family homes
17:32
ok and of course that thinking in that
17:35
continuous piece of geography is
17:37
commercial as well I wash your your
17:40
franchising videos where you have a
17:42
number of your franchisees who are doing
17:44
testimonials with you and all of them
17:47
obviously speak very highly of you and
17:49
the in the program and all that they
17:51
really like that there that their
17:54
franchise they like being in this in
17:55
this business so there
17:57
well situated
17:59
who was not a good candidate for this
18:01
kind of French rest are we always tell
18:04
people if you’re not willing to follow a
18:08
recipe if you’re not willing to follow a
18:10
set of prophecies you’re so fiercely
18:13
independent but you don’t want to follow
18:15
anything like that that’s not a good fit
18:18
one of the things I i say to people
18:20
often when you buy a franchise you’re in
18:23
business for yourself but not by
18:26
yourself right so you have to be willing
18:28
to be coached you know some people come
18:31
in and say I I’ll figure this out let’s
18:32
do this myself you know I I get it but
18:36
your word that’s what we’re here for
18:38
we’re here to make you successful
18:40
so you don’t make the same mistakes you
18:42
know that of course we did in our early
18:44
dates right so you have to be willing to
18:46
participate you know in our in our
18:48
recipe and if you follow a recipe could
18:51
take the end
18:52
well what about personality styles for
18:54
dealing with the with the customer and
18:57
you know some people are well-suited to
18:59
be that the guy who basically taking
19:03
orders over the internet that is really
19:05
interacting with people at all right and
19:07
write this seems to be very very people
19:10
based you need to be able to go into
19:12
someone told me you need to be able to
19:13
talk to them comfortably about whatever
19:16
is going on with their particular
19:17
situation you need to be able to make a
19:20
presentation to them that is comfortable
19:23
and make sense to them
19:25
yeah I you know there are a lot of
19:27
people you know they don’t like to get
19:29
up and speak in front of large audiences
19:31
there’s that fear most of the people
19:35
that we have are not intimidated having
19:37
a one-on-one conversation but yes you do
19:40
have to feel comfortable walking up and
19:42
ring the doorbell and and meeting a
19:44
complete stranger
19:46
it’s not that typical because man today
19:49
happy to see you
19:50
yeah hey where were you know sir grout
19:53
to the rescue so people are this is not
19:56
a this is not an insurance sales call
19:58
this is not a hard sell
20:01
well I think that as someone who comes
20:03
from the sales background for years
20:06
where I had to go out and generate my
20:09
own leads your call center
20:11
lead generation system is outstanding i
20:13
think it’s one of the biggest assets of
20:16
this business specifically and then so I
20:20
think you’ve got just a winning formula
20:22
I i think as i mentioned at the
20:24
beginning with that home improvement
20:27
space just exploding you’re going to be
20:28
run on top of that so she can have that
20:30
can tell you one more piece of new
20:32
standard that didn’t mention in the
20:34
beginning of the entrepreneur magazine
20:36
comes out every chance februari with the
20:40
the top500 franchises and we were on
20:44
that list again and to your point we
20:47
were now we’re not listed within the top
20:49
25 home improvement franchises up so
20:53
we’re delighted to be you know in that
20:56
in that company
20:57
congratulations i’m going to make sure I
20:59
got that in it that’s the first time I
21:02
want to I want to thank you for joining
21:03
me today I think this was a great
21:05
conversation we’re going to pick up
21:07
putting your information your website
21:09
your phone number and so forth
21:11
ok in our notes so people can contact
21:12
you directly and again I want to thank
21:15
you for joining me today appreciate and
21:17
thank you very much thanks for joining
21:18
us on this episode i hope that you found
21:20
it informative please check out the
21:23
notes section for more links and no
21:25
information and if you like what you
21:27
seen please make sure that you like us
21:30
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21:32
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we’re doing
21:35
thanks again see you next week
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