As a new owner starting out in the roofing industry, you need to find a roofing mentor. Unfortunately, that can be very difficult.
And with so many alleged “gurus” out there claiming to be able to turn businesses from financial sinkholes into cash cows in just a few short months, you very easily could find yourself paying thousands of dollars to a person who doesn’t actually know how to run a roofing business.
For Roofing Insights founder Dmitry Lipinskiy, he benefitted early on his career from meeting Rodney Webb, a roofing industry stalwart who has helped countless men become millionaires.
Yet, for every Rodney Webb out there, there are equally as many malevolent individuals who will do whatever they can to pry you away from your hard-earned cash without offering anything in return.
Thankfully, Lipinskiy has devised a system for spotting fake gurus.
Here then are the five telltale signs that the person sliding into your DMs is a hack.
1. Net profit is more important than gross volume
What many “gurus” will showcase to their potential clients is the gross dollar amount either their current or past business generated.
While these numbers may be in the millions, they aren’t true indicators of a company’s success.
That’s because while doing $20 million in revenue is impressive, if the company is run poorly, that dollar amount may not prevent them from filing for bankruptcy in a few short years.
“When I look at the guys who do huge numbers, I also look at their lifestyles and their business history,”
“A lot of them don’t do well over the long run.”
Don’t be fooled by the fancy cars or the extravagant beach house some gurus profess to have.
In some cases, these luxuries are mere props designed to cater to your fantasies, and not an accurate representation of the guru’s past performance in business.
“Your sales don’t have to be the biggest. What’s really important is net profit. You need to understand that $100 million companies with 3% net profit make the same profit as a $30 million company with a 10% net profit.”
2. Cancel “dick measuring” contests
Pardon the explicit language, but there are too many clowns in the industry who are hellbent on exhibiting overwrought braggadocio instead of displaying their business acumen.
This type of behavior is best seen on the internet.
“Every time I argue with someone online, the first thing they say is `but my company is bigger than yours,’”
Dollar amounts don’t always translate to success.
3. Learn how to be happy at any size
As the owner of a $5 million company, Lipinskiy will be the first to tell you that you can achieve massive success in the roofing industry without expanding your company’s reach beyond your local market.
While companies like Apple Roofing have become nationwide juggernauts by opening offices in different states, their business model does not have to be matched in order to experience joy and fulfillment.
According to Lipinskiy, Apple Roofing may even be the exception to the rule.
“I see a lot of companies who will have a $20 million or $30 million year, but then they’re filing for bankruptcy and not paying their suppliers or sales guys, and they always are involved in disputes over money,”
4. Show your tax returns or shut up
It’s as simple as this:
Don’t boast about your numbers if you aren’t willing to show the world how you do business.
Again, it’s possible that a $50 million company is not profitable, especially if the company is poorly managed.
“What really matters is how much you kept for yourself, so if you do $15 million per year, that should be $1.5 million in profit, in your pocket,”
He adds that many gurus who actively advertise their sales numbers are missing the point when it comes to running a successful business.
“I see too many gurus do unhealthy things to their business. They never make real money, they collapse their business, and the problem is they eventually go back because they’re used to selling, having money, and having a certain lifestyle. Then, when things go bad, they have to make more money, but they burn out. So then they try to teach others, but unfortunately they can’t teach anything good because their processes aren’t healthy.”
5. Stop being a magician
Lastly, if what a guru is offering seems too good to be true, it likely is.
Gurus benefit from the short attention spans people have on the internet by flashing big numbers that don’t have to be substantiated with evidence or an explanation of their business model.
But this strategy does not impress legitimate business savants like Lipinskiy.
“They [gurus] hide the important information from you and put their numbers on a pedestal,”
Of course, many new business owners are curious about what it takes to run a profitable business, and that’s one reason why Lipinskiy started hosting classes around the country.
During these events, Lipinskiy opens up his playbook and reveals the strategies behind his success.
This is why, in addition to the Roofing Process Conference, these classes have become so popular.
Check out where the next class is being held and reserve your spot today!