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Why a Second Business Is the WORST Way to Fix Your Off-Season

⏱️ 43:28 🎤 Mike Andes, Haley
AUDIO EPISODE
Why a Second Business Is the WORST Way to Fix Your Off-Season
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Chapters

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  • 0:00
    Seasonal Business Challenge
    The host introduces a $3 million permanent lighting business struggling with extreme seasonality, with most revenue in the last three months of the year.
  • 0:12
    Cost of Acquiring Customers
    The guest explains that customer acquisition costs are incredibly low during the busy season but skyrocket in the off-season, making profitability challenging for three-quarters of the year.
  • 0:25
    Strategic Pricing & Offers
    The host suggests increasing the price of premium bulbs and offering significant discounts for off-season installations to shift demand.
  • 0:33
    Improving Lead Conversion
    A major bottleneck is identified in the office's lead booking rate, with only 15-20% of incoming leads converted into appointments.
  • 0:39
    National Expansion Strategy
    The guest's ambition to expand nationally is discussed, with the host advising against it until the core business's seasonal and operational issues are resolved.
  • 0:44
    Focus on Current Business
    The host emphasizes solving current operational problems and increasing the booking rate as the primary focus before considering scaling or new ventures.
  • 0:49
    Recurring Revenue & App
    The guest introduces ideas for recurring revenue through subscriptions and an app, but the host steers them back to core issues.

Speakers

M
Mike Andes
Host
H
Haley
Runs the company

Key Takeaways

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Prioritize increasing the booking rate of inbound leads: A 3x improvement in booking rate from 15% to 45% can triple lead volume, making it an easier and more impactful lever than starting a new business.

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Leverage existing high-demand periods: Maximize advertising spend during the peak season when CAC is lowest ($10-$80) and create compelling offers to encourage bookings for the off-season.

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Rethink pricing strategy for premium offerings: Increase the markup on popular premium products (e.g., premium bulbs) significantly (e.g., from 15% to 30%) to create a larger perceived discount when offering them as an incentive for off-season bookings.

✦

Utilize unsold quotes effectively: Re-engage the 70% of customers who received a quote but didn't convert by offering exclusive discounts for off-season installation, capitalizing on demonstrated interest.

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Avoid new business ventures until current issues are resolved: Starting a second business, like pressure washing, adds significant operational complexity without addressing fundamental problems like seasonality and low lead conversion in the primary business.

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Focus on improving existing operations and demand smoothing: Instead of scaling by increasing labor for peak demand, aim to smooth out the demand curve throughout the year through strategic pricing, offers, and follow-ups to maintain a stable workforce.

✦

Build a strong foundation for future growth: Solving current problems (booking rate, seasonality, offer packaging) at one location creates valuable intellectual property and a robust model that is genuinely scalable, whether through corporate expansion, licensing, or franchising.

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