Your AI powered learning assistant

$2.4M/Year Business You Could Start Tomorrow! ($174 Startup)

Start

00:00:00

A unique business model transforms dog waste into a lucrative venture, generating $200,000 monthly with minimal effort. The service has gained rapid popularity, attracting 350 customers in just three months. Starting costs are remarkably low at around $174, and acquiring only two clients weekly can lead to over $100,000 annual income within the first year. This scalable business is straightforward to expand by hiring employees and gaining new clients.

Business built on dog poop

00:00:49

Swoop Scoop specializes in dog waste removal, offering a straightforward service that involves picking up dog poop. Customers subscribe based on the number of dogs they have and how frequently they want the service. The process is simple: Swoop Scoop arrives, scoops the waste, and moves on to their next appointment.

Cost of service

00:01:15

For pet services, pricing is determined by the number of dogs and service frequency. Customers can obtain an instant quote through a website tool or by calling directly. For weekly visits for three dogs, the cost would be approximately $110 per month.

Tools of the trade

00:01:44

Starting a pooper scooping business requires minimal investment, around $175 for essential tools. The key equipment includes a Corona Garden Rake and an ergonomic lobby dustpan, which helps prevent wrist strain by flipping the handles backward. After each job, disinfecting with a one-gallon garden sprayer is crucial to maintain hygiene. With just these few items organized in a bucket, anyone can launch this unique venture.

Job completion time

00:03:17

Cleaning a large yard typically takes between seven to eight minutes. This timeframe applies even if the yard is bigger than usual, ensuring efficiency in service delivery. After collecting waste, it’s quickly disposed of and ready for the next job.

Full-service inclusions

00:03:42

Full-service pet waste removal includes a 60-minute notification text, yard scanning in a zigzag pattern to ensure no waste is missed, and thorough cleanup. After collecting the waste, gates are secured with photos sent to customers for confirmation of service completion. Equipment and shoes are disinfected using kennel-grade products to prevent spreading illnesses between dogs. The average time spent on each job is around 10-12 minutes.

Revenue and profit margins

00:04:49

The business currently generates around $200,000 monthly during peak season, with a noticeable slowdown in summer. Profit margins aim for over 30%, achieved without direct involvement from the owner; operations run independently. With approximately 20 employees now and an increase to about 30 during spring rush, daily tasks are effectively managed by the team.

Coming up with the idea

00:05:35

The business idea originated when a pregnant wife hired a pooper scooper due to time constraints. Observing the poor service quality, including lack of systems and communication issues, they identified an opportunity for improvement. With a background in digital marketing and operational expertise from his partner Levi, they aimed to enhance the local service experience significantly.

A simple (but often overlooked) detail

00:06:23

Taking a photo of the closed and latched gate before leaving is crucial for service verification. This practice ensures customers are informed that their service was completed and reassures them that their dog won't escape accidentally. Customer feedback highlights this detail, with many reviews specifically mentioning the importance of receiving the gate photo as part of their experience.

Final touches

00:06:55

Final touches can significantly enhance your presentation. To maintain hygiene, it's crucial to avoid spreading germs between yards. Begin by disinfecting tools like the rake and bucket with a friendly spray that is safe for grass, ensuring all surfaces are covered thoroughly.

Monthly overhead

00:07:23

Monthly overhead for a growing business shifts significantly from being a solo operation to managing various expenses. Key costs include office space, labor (30-35% of revenue), vehicle maintenance, and software subscriptions. For peak season with $200,000 in revenue, expect around $140,000 in expenses due to increased marketing efforts and staffing levels. Maintaining cleanliness is also crucial during operations to prevent contamination.

Securing recurring clients

00:08:20

Achieving rapid growth in a service-based business hinges on effective marketing strategies. Initially, door-to-door efforts yielded limited results, but the introduction of paid Google and Facebook ads transformed customer acquisition. A simple yet impactful ad featuring a bag of dog poop generated leads at an astonishingly low cost, demonstrating the power of targeted advertising. As competition has increased over time, adapting to changes in platforms like Meta is crucial; utilizing relatable imagery and clear hooks can significantly enhance engagement with potential clients.

Overcoming operational challenges

00:09:46

Rapid growth posed significant operational challenges, as one person could manage only 150 yards while the company surged from zero to 350 in a few months. The urgent need for hiring additional staff and acquiring more trucks became apparent to meet customer demand. Despite lacking experience, the overwhelming influx of over 100 new customers each month necessitated immediate action to scale operations effectively. This pressure led to decisive measures aimed at expanding service capabilities quickly.

Commercial vs Residential

00:10:42

The commercial side of the business, while only 5-10% of overall operations, has significant potential due to the increasing number of dog owners in apartments. Property managers often face complaints about tenants not cleaning up after their dogs, creating a demand for services that address this issue. Transitioning from residential to commercial requires a shift from B2C to B2B strategies, necessitating networking with property managers and adapting quoting methods.

Difference in profit margins

00:11:30

Profit margins are generally maintained around 30%, but can be increased with commercial work. The business currently serves about 2,000 clients and employs between 19 to 20 staff members. Each employee typically manages approximately 150 clients weekly or monthly, depending on the service frequency. Operations cover Spokane, Spokane Valley, and extend into North Idaho.

Systems and processes

00:13:38

A streamlined client onboarding system allows customers to easily obtain quotes and sign up for services directly on the website without needing direct interaction. The preferred communication methods are email, text, and phone calls, with SMS proving most effective for recapturing clients who received a quote but did not initially sign up. This approach significantly enhances customer engagement compared to traditional methods like emails or labor-intensive phone calls.

Refilling doggie bag stations

00:14:40

Refilling doggie bag stations involves checking the supply levels and replacing bags as needed. In this instance, one section was found empty while others were adequately stocked. The process is straightforward: open the station, insert new bags into the designated slot, and close it up. Despite its simplicity, physical effort can still be involved in maintaining these stations.

Persuading clients

00:15:01

Clients are often eager to pay for pet waste removal services, viewing it as a valuable convenience rather than a luxury. Surprisingly, even low-income areas show high demand for this service, with many willing to spend $26 weekly to avoid the unpleasant task of cleaning up after their pets. The sales process is largely about follow-up communication; interested leads typically convert without much persuasion needed. Many potential clients discover the existence of such services and appreciate that they can eliminate dog poop responsibilities for around $100 monthly.

Fan blitz

00:15:55

Picking up after dogs is easier with larger breeds, as it simplifies the cleanup process. A humorous incident involved Levi wearing white pants while handling dog waste, highlighting rookie mistakes in pet care. Dog owners should prioritize cleaning up after their pets and consider hiring services like Swoop for convenience. Financial wisdom emphasizes saving rather than spending recklessly; success in entrepreneurship can be achieved by anyone with the right mindset. The speaker owns a large Mastiff Pit Bull and enjoys indulging in pizza to unwind after work.

Advertising tips for newbies

00:16:58

To attract customers without spending on ads, leverage social media by posting consistently in local Facebook groups related to buying and selling. Aim for two to three posts per week across multiple groups for maximum visibility. Establish a free Google Business Profile to enhance your online presence; this helps potential clients find you easily through search results and maps. Additionally, offer friends and family a no-strings-attached trial of your services—this not only provides valuable feedback but can also lead to reviews that boost your profile's credibility.

Handling stressful moments

00:18:11

Operating a business can be straightforward, especially when customer acquisition is easy. However, unexpected challenges arise that test resilience; for instance, losing four trucks in three weeks or multiple employees calling out sick creates immediate stress. The key lies in the ability to adapt and maintain service quality despite these setbacks.

Workload

00:18:45

Building a successful business requires strategic time investment and the right team. Initially, less than 10 hours per week was dedicated to reaching an eight-figure revenue mark, focusing on setting up systems and hiring skilled employees. The ability to take extended breaks from work hinges on having a reliable team and effective systems in place. A strong partnership also plays a crucial role in managing responsibilities during absences.

Shattering perceptions

00:19:23

Many people perceive dog waste management as an unglamorous job with limited options. Initially, the speaker had low expectations about starting a business focused on picking up dog poop due to societal judgments. Over time, they realized that overcoming these limiting beliefs was essential for success and growth in their entrepreneurial journey.

Overcoming limiting beliefs

00:19:52

To overcome limiting beliefs as an entrepreneur, it's essential to take action and test ideas in the real world. Initial skepticism from others is common; many may laugh at new ventures until they see success. The journey often reveals that what seemed impossible can become a reality through perseverance and effort. Learning from stories of other entrepreneurs who ventured into undeveloped industries demonstrates that achieving success is possible despite doubts.

Biggest mistakes

00:20:22

The biggest mistake made in the business was misjudging industry seasonality, believing summer would be peak time when it’s actually winter and early spring that drive demand. This error led to significant overspending, costing tens of thousands as customer traffic dwindled during warmer months. To avoid this mistake in the future, analyzing Google search volumes could provide insights into seasonal trends for better marketing planning.

Standing out from competition

00:22:02

Key differentiators include a strong brand, effective systems, and excellent customer service. A strategic focus on building route density is prioritized over rapid expansion with multiple locations. This approach aims to cultivate a loyal customer base at fewer sites rather than spreading resources thin across many locations.

Headquarters

00:22:38

The headquarters serves as the central hub for operations, featuring a call center staffed with an office manager and two customer service representatives. It also includes a private office designated for sensitive matters such as hiring or firing employees.

Bagging 5-star reviews

00:22:57

The key to achieving over 500 five-star Google reviews lies in addressing a common pain point: the dislike of picking up dog poop. A well-structured system enhances customer service, including taking gate photos and maintaining clear communication with clients. Offering online options and having a dedicated call center staffed by real people further strengthens this approach. Consistency in service delivery ensures customers are consistently impressed, leading to positive feedback.

Monthly ad spend

00:23:42

The business experiences seasonal fluctuations in demand, particularly during winter and the subsequent spring thaw, referred to as 'peak poop pain season.' During this peak period, advertising spend can exceed $30,000 monthly as 70-80% of annual clients are acquired. The primary platforms for advertising include Facebook and Google, with truck wraps also contributing significantly. In summer months, customer acquisition costs rise due to decreased demand; people prefer outdoor activities over service needs.

Service route overview

00:24:41

The service route overview displays the operational details for Spokane, where approximately 1,500 customers are serviced weekly. The screen shows various colors indicating different statuses of the routes and clients. The focus is on ensuring that everything appears organized and functioning correctly.

Importance of uniforms

00:25:12

Uniforms are crucial for establishing a professional image and ensuring customers recognize employees as part of the company, rather than random individuals. When it comes to hiring talent, particularly at entry-level positions like pooper scoopers, offering competitive wages above local companies is key. Additionally, providing comprehensive benefits such as health and dental insurance enhances employee attraction and retention. The job can be demanding due to varying weather conditions and high workload; therefore, conducting ride-alongs during the hiring process helps candidates understand what they will face on the job.

Truck wrap

00:26:39

Truck wraps are currently priced around $3,500 in Spokane, reflecting a steady increase from the initial cost of about $2,600. The business owner initially doubted the venture's viability due to low demand but aimed for modest earnings. However, within a few years, revenue soared past $2 million annually through dog waste removal services. The potential for future growth is significant as scaling operations and acquiring clients has proven straightforward.

Doing things differently

00:27:31

Regrets often stem from not fully committing to opportunities. Initially, the business was treated as a side hustle rather than a primary focus, leading to missed potential. With hindsight, investing more time and resources could have accelerated growth significantly. Many individuals face uncertainty about leaving their 9-to-5 jobs for side hustles; however, starting small can still yield substantial income over time.

Reaping hard-earned rewards

00:28:36

Financial success opens up a world of opportunities beyond material possessions. It allows for greater risks in business, enabling faster growth and expansion. Additionally, it enhances quality time with family and provides children with more chances to thrive. Ultimately, the key benefit is having options that enrich life experiences.

Business startup myth

00:29:16

Many entrepreneurs mistakenly believe that everything must be perfect before launching a business. In reality, the key to success is taking action and starting to generate revenue as soon as possible. Waiting for ideal conditions often leads to inaction due to overthinking or 'paralysis by analysis.' By simply getting started, even if it’s messy and mistakes are made, individuals can quickly begin earning significant income within months.

A key metric (in any biz!)

00:29:51

Customer lifetime value (CLV) is a crucial metric that indicates the total revenue expected from a customer throughout their relationship with your business. For subscription models, CLV can be calculated by dividing the average monthly payment by the churn rate—the percentage of customers who leave each month. For example, if you charge $100 per month and have a 5% churn rate, your CLV would be $2,000. This means businesses can strategically invest in acquiring customers; spending around 10% of this value on acquisition typically yields favorable returns.

Onboarding and training

00:30:55

Training team members has evolved significantly, moving from a quick five-minute introduction to a comprehensive system. Now, there is an online training platform that includes employee handbooks and detailed protocols for tasks like yard cleaning. New hires undergo a week-long hands-on training with experienced technicians before working independently. Each location has dedicated managers overseeing lead technicians who supervise smaller teams of scoopers.

Learning the ins and outs

00:32:06

Understanding the nuances of running a business in this niche involves leveraging available resources. Initially, guidance came from Erica Crouppen, a prominent YouTuber who provided valuable insights into the industry. Additionally, utilizing specialized software like Sweep & Go allowed for reverse engineering of business operations even before acquiring clients. This approach highlighted essential practices such as taking gate photos to enhance service delivery.

Cheap (but effective) marketing secrets

00:33:25

SMS and email marketing are powerful, cost-effective strategies for engaging potential customers. By collecting information from website visitors who don’t complete sign-ups, businesses can implement remarketing campaigns to convert leads into clients. Monthly promotions via SMS and email keep the audience engaged with fresh offers tailored to seasonal events. For beginners looking for a low-cost approach, offering free trials of services allows them to showcase value while gathering feedback and encouraging positive online reviews.

Scaling the business

00:34:16

The decision to scale the business came from overwhelming demand, leading to rapid growth. Initially, expansion wasn't planned but became necessary as they consistently doubled in size each year. After two or three years of operation and observing a slight dip in growth rate, it was determined that opening a second location would be beneficial.

Acquiring the fleet

00:34:51

Initially, the fleet consisted of low-cost vehicles like $2,000 Ford Rangers sourced from farms. To grow the business, significant personal risk was taken with multiple truck loans. Looking back, this approach seemed manageable since each vehicle represented an asset that could be sold if necessary. The recurring revenue stream further reduced perceived risks and improved credibility with banks over time.

Why Seattle?

00:35:42

Seattle stands out as an ideal location due to its proximity, being the closest major city. It ranks among the top 10 most dog-friendly cities, which was a significant factor in choosing it. Additionally, considerations of satellite imagery revealed insights into housing density and average yard sizes that impact profitability.

Partnering for success

00:36:10

Successful business partnerships thrive on complementary skill sets. It's crucial to find a partner who brings different strengths, such as time or financial resources, rather than duplicating what you already offer. The synergy between distinct backgrounds can accelerate growth significantly; for instance, one partner may excel in marketing while the other handles operations effectively. Reflecting on their journey since 2020, the partnership has been instrumental in overcoming challenges and fostering innovation through collaborative idea exchange. However, it's important to acknowledge that sharing profits means needing higher earnings overall but ultimately leads to greater success.

Leadership style

00:37:43

A fair leadership style is essential for fostering a positive work environment. Clear expectations are established through systematic roles, ensuring employees understand their duties and the rewards tied to performance. Attendance bonuses serve as an effective incentive; employees who consistently show up can earn additional financial rewards, reinforcing commitment and effort in the workplace.

Value-based systems

00:38:29

Success in leadership hinges on value-based principles. The focus is on empowering individuals rather than micromanaging them, fostering a culture where resilience and problem-solving are paramount. Three core values guide this approach: 'winners win,' encouraging proactive solutions; humility to prevent arrogance; and the pursuit of swift execution for effective outcomes at all organizational levels.

A standout industry

00:39:18

The pooper scooper industry offers a unique opportunity for generating significant revenue due to its low overhead costs and high potential for recurring income. With minimal initial investment in equipment, typically around $275, the primary expense is labor rather than goods sold. This business model relies heavily on subscription-based services, allowing owners to predict their earnings based on customer retention and service frequency. While one-time services are available at a premium rate, the focus remains on building long-term client relationships.

Road to a $100K…fast!

00:40:05

To reach $100,000 quickly, acquiring about 85 customers is essential. With an average payment of $100 per month from each customer, gaining two new recurring customers weekly can lead to over 100 clients by year-end and nearly $10,000 in monthly revenue. The business has minimal expenses once established; ongoing advertising becomes unnecessary as word-of-mouth takes over with a solid customer base. A significant barrier for many aspiring entrepreneurs is a lack of confidence; the pooper scooper industry exemplifies how accessible starting a business can be.

Running multiple locations

00:41:07

To effectively manage multiple locations without becoming a franchise, each site operates with its own supervisor and team structure. A location manager oversees operations, supported by leads and scoopers who handle day-to-day tasks. Centralized functions like routing, billing, and customer communication are managed at headquarters to streamline processes. This allows local managers to focus solely on service fulfillment through hiring, training, and staff management.

Brand story vs Pricing

00:41:49

A compelling brand story is crucial for companies in the dog waste removal industry, where competition has a low barrier to entry. Customers prioritize reliability and service quality over price; thus, establishing a strong brand identity can differentiate businesses from cheaper competitors. High safety standards and consistent service reinforce customer trust, leading to increased recognition within the market. In fact, branded searches significantly outnumber generic ones during peak seasons, indicating that customers prefer established brands they associate with quality services.

Doomed to fail

00:42:56

Most entrepreneurs fail due to two main reasons: inaction and misplaced focus. Many get caught in 'analysis paralysis,' preventing them from taking necessary steps. Additionally, new business owners often prioritize perfection—like creating an ideal website or logo—over immediate revenue generation. Focusing on sales is crucial for both short-term survival and long-term success.

Staying motivated

00:43:34

Success breeds motivation to push harder rather than ease off. Recognizing the industry's potential fuels a desire for growth, aiming for eight-figure success in the coming years. Personal aspirations also drive this ambition; being a role model for his children and demonstrating that their father can achieve remarkable things is crucial.

Success redefined

00:44:13

Initially, success was defined by financial stability and the ability to pay bills. As the business grew, this definition evolved into a focus on providing value back to society through employees and community impact. The goal shifted from operating one location to expanding regionally, aiming for broader benefits for more people. This ongoing evolution reflects an ever-expanding vision of what true success means.

Outro

00:44:51

Explore the potential of passive income through vending machines, as exemplified by Adam Hill's success. He generates $50,000 monthly while only dedicating two days a week to his business operations. This model highlights how certain businesses can be highly profitable with minimal time investment.