Kevin O'Leary | Why the Busiest Home Service Owners Get the Least Done
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What is the main topic discussed in this episode?
You mentioned you worked for Steve Jobs and he was an asshole. 100%. He also taught me about the concept of signal to noise ratio, which I've really adopted. You need to get three things done every day, whatever they are. And that's the signal. You've got to block out 70% of the noise. Now, because you're blocking out noise, you're perceived as an asshole. We would have contentious meetings in the old headquarters. Brutal. Some of my staff would be crying when it was over. People don't have to like you. They have to respect you because you can achieve things. If you try and make everybody like you, you will fail.
Today's a very special day. We got the Freedom event out there. Today's guest hardly needs an introduction. Known as Millions is Mr. Wonderful from Shark Tank. World-class investor, entrepreneur, business leader who built and sold the learning company in one of the largest tech deals of all time. He went on to launch O'Leary Funds and O'Leary Ventures, and today manages a diverse portfolio that spans everything from fintech to crypto to consumer brands. Best-selling author, global speaker, and a straight shooter on personal finance leadership and entrepreneurship. Kevin's not here just to talk about money, but also discipline, decision-making, and how to build wealth that lasts. Kevin, I'm really excited that you're here, brother.
I appreciate it. Why did you decide to do this, is my first question.
I love working with entrepreneurs and what that room was full of was entrepreneurs, people that really understand that entrepreneurship is not a destination, it's a journey and we're all in it together and we're sharing our thoughts together. I really enjoyed that session because there's a lot of energy in that room. But that's what it's about. When you start a business in America, only a third of the population can pull it off. I mean, it's not for everybody. And I'm not telling people to do it. But if you are going to do it, you want to talk to other entrepreneurs. You want to share ideas.
Who is Kevin O'Leary and why did he speak at the Freedom event?
You want to help entrepreneurs not make the same mistakes that I made. So I kind of go through that journey saying, here's what worked. Here's what didn't. Here's what I've learned recently. Here's what I've applied. Here's how it's worked. I want to share. You want to give back. This is the way I look at it.
What do you think about the home service industry?
It's probably the One of the best times ever to be in it, not only technology advancing it, it's never going away. It's never going to be replaced by AI or any of this disruption stuff. It's the core of most people's net worth is where they live, and they care about it. It's a spectacular industry. I mean, it reminds me, there's two industries that I admire so much that are going to be around forever. Climate control storage, which I came up in. It's directly linked to the stuff you buy for your home because after a while you store it. I mean, it's kind of like everything that goes on in maintaining a home or a business is a perpetual business. Good times, bad times, recessions, whatever. It's always a required service.
You know, we run at my company 25,000 jobs a month. And you know what's crazy? What happened through COVID is we were deemed essential. And I've been through 2008, as you know. And the multiples went from 10 to 12 to 14 to 18 to 20x. Isn't that crazy? 20x. And it's hard to do the math, really, of 20x multiples on EBIT. And then I learned about annual reoccurring revenue. And you can get a multiple of that. And it's fun stuff.
What do you look for when you make an investment? I look exactly for that. How do I get my money back, first of all? Secondly, how stable is the reoccurring revenue? How risky is that recurring revenue? What would make it stop? I mean, I'll pay way more for a safe investment that has recurring subscription or whatever it is, to keep continuing every month. That's what you're describing, and that's why it's valuable. And it turns out the whole market feels that way. And so these multiples have increased for a reason.
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Chapters
6 chapters
1
What is the main topic discussed in this episode?
0:00β1:49
2
Who is Kevin O'Leary and why did he speak at the Freedom event?
1:49β6:31
3
Why does Kevin believe home services is one of the best industries to invest in?
6:31β12:02
4
How does Kevin evaluate recurring revenue and what makes it valuable for investors?
12:02β22:08
5
How is AI and ad tech changing marketing attribution and Kevinβs Wonder Ads strategy?
22:08β50:33
6
What four KPIs does Tommy track to build a home service company's budget?
50:33β51:24
Speakers
2 identifiedMore from The Home Service Expert Podcast
The First KPI Every Home Service Owner Should Track (Not Revenue) |
You Hit $5M, Then $10M. Why It Never Feels Like Enough (& What Actually Does)
The One Thing Nobody Can Take From Your Home Service Business | Jason Feifer
The Man Who Took Tesla From $2B To $20B Shares The Exact Formula | Jon McNeill
Doing Whatever You Want, Is Keeping Your Business Small (Here's Why) | Mark C Winters
Own 15% Of Your Market Before You Even Think About A New One | Aaron & Zac