Hello home service operators, |
In plain English: 2026 is not the "copy the 2018 playbook" era anymore. Consolidation is changing the game, competition is heavier, and multiples will compress in the most crowded trades. |
So you win by being more strategic upfront and more operationally tight once you're running. |
And that's what we're talking about today. But first… |
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Start Running Your Business by the Numbers |
If you're doing $4M–$12M in HVAC, plumbing, or electrical, you've probably felt this: |
Revenue is up. The team is bigger. But cash always feels tighter than it should. |
Payroll, materials, and timing start creating stress, and you end up making big decisions (hiring, pricing, equipment, marketing) without real financial visibility. |
That's where CFO Made Easy comes in. |
Tyler Martin provides fractional CFO support built for home service businesses focused on: |
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And you work directly with Tyler, not a junior team. He's also scaled and sold a $25M service business, so the advice is operator-tested, not theory. |
Want proof? |
One of his clients was stuck in a cash crunch from slow-paying commercial work and outdated pricing. After tightening job mix and pricing, they increased bottom-line profit 11% over two years while stabilizing cash flow. |
It could be the edge you need in 2026. |
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Pick Better, Build Simpler, Market Harder |
If you're building a home service business in 2026, you don't get to "just pick a trade" and grind your way to success. |
The market is more competitive than it was even 3–5 years ago (even 2025). Consolidation has pulled the best operators into big groups. Marketing channels are less predictable. And the easy "copy + paste" growth tactics from the late 2010s don't work the same way anymore. |
So if you want to win, you need to approach this like an investor and an operator, not like a technician. |
Step 1: Start With Research, Not A Trade |
The #1 mistake new operators make is starting with what they know, not what the market needs. |
You don't win because you picked HVAC. You win because you picked a market where the demand is high and the competition is weak. |
What "Good Research" Actually Looks Like |
You're looking for a pocket where the work already exists and nobody is serving it well. |
Use this checklist: |
Demand exists: people actively need the service year-round Competition is low: few strong operators, weak marketing, low review volume Market has money: home values/income levels support your ticket size Hiring is possible: enough trade labor in the region to staff the business Growth runway exists: nearby expansion markets you can move into later
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Actionable Research Playbook |
Use this 3-part method before you ever buy or start: |
1. Google Maps Reality Check |
Search your market like a customer would: |
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Then look for: |
Companies with low reviews ranking in the top 3 Gaps where only 1–2 companies dominate Weak businesses sitting on page one (bad photos, poor branding, inconsistent posts)
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2. Review Velocity Test |
The fastest way to see how strong competitors are: |
Top competitors getting 30+ reviews/month = you're going to war Top competitors getting 5–10 reviews/month = opportunity Top competitors getting 0–3 reviews/month = jackpot
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3. "Underserved Need" Identification |
Ask: what is expensive, urgent, inconvenient, and ignored? |
Examples that often show opportunity: |
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Step 2: Don't Chase The Hot Industry. Chase The Underpriced One. |
Consolidation changes the economics. |
When an industry is early-stage and fragmented, you have time: |
Less sophisticated competition More inefficiency to exploit Better acquisition targets Higher upside
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When an industry is late-stage and consolidated: |
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Practical Guidance: What To Avoid vs. What To Target |
Avoid (or move fast): |
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Target: |
Services that are not yet fully consolidated "Boring" niches with clear buyer demand later Categories where you can win with smart marketing + repeatable execution
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Step 3: Pick A "Boring" Service With A Clean Path To Scale |
Pick one boring service and dominate it. |
You're not building a complicated company with 14 service lines. |
You're building a repeatable machine. |
What A "Perfect" Service Looks Like |
You want something that hits most of these: |
High urgency (customer wants it solved now) High margin Simple dispatch + execution Limited SKUs (you can standardize) Easy to teach + train Clear bolt-on value to a bigger platform later
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Examples |
Drain cleaning/jetting |
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Leak detection |
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Duct cleaning |
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Water filtration |
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Septic / wells |
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Step 4: Scale Through Locations, Not Service Expansion |
This part is a massive mindset shift. |
Most operators scale by adding more services: |
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The better model (in many cases) is: |
Pick one service Standardize it Open additional branches Repeat
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A Simple Multi-Location Blueprint |
Start with one branch and build a "2–5 million unit": |
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Then copy it. |
If you can't explain your operating model in 30 seconds, it's too complex to scale. |
Step 5: Build A Business That Doesn't Need A-Players To Survive |
This is where most service companies break. |
They scale with 1–2 monsters who produce half the revenue, and then: |
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Instead, build a company that thrives with strong systems. |
The "System > Hero" Checklist |
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If the business requires a superstar to work, it's not a business. It's a job with a logo. |
Step 6: 2026 Winners Speak EBITDA, Not Revenue |
This is the part that separates serious operators from amateurs. |
In slower markets and weird demand cycles, revenue can lie. |
EBITDA tells the truth. |
What To Do This Year (Actionable EBITDA Focus) |
Cut dead spend aggressively Eliminate "nice-to-have" software Renegotiate vendor contracts Get labor efficiency tight Fix dispatch leakage (drive time, idle time, bad routing) Raise pricing on your bottom 20% jobs
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Rule: if you're not profitable, growth is just accelerating failure. |
Step 7: Get Scrappier In Marketing (Because Channels Are Shifting) |
Marketing today is not just SEO + LSA + PPC. |
It's attention. |
Customer attention is moving: |
TikTok Short-form video Neighborhood groups Direct outreach Door-to-door
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Scrappy Marketing Moves That Still Work |
Canvassing in ideal neighborhoods B2B referral partnerships (property managers, plumbers, HVAC companies) Content that educates consumers (especially for visual issues like mold) Local Facebook + Nextdoor presence Aggressive review generation by technician
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The best operators are willing to do what everyone else avoids because it's uncomfortable. |
That's why it works. |
Your Next Move |
If you want to win in 2026, don't start with "what trade should I pick?" |
Start with: |
What market is underserved What niche is still fragmented What offer can be standardized What model can scale cleanly What business is sellable later
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Then build the simplest machine possible, market aggressively, and run it like a real business. |
That's how you avoid hard mode. |
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Scale in 2026 |
Big Reputation helps home service owners turn their Google Business Profile into a legit lead machine without adding more work to their plate. |
More visibility, more trust, more calls. All from the asset you already own, your Google Business Profile. AI won't replace your team, but it can replace the busywork (like this) that keeps your profile from ranking. |
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…and that's how you find your edge when starting, buying, and/or growing a home service business in 2026. |
How do you feel about today's newsletter? |
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👊 John |
Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own. |
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