According to the latest numbers from the University of Michigan, consumer sentiment rose for the first time in five months. While it only edged out 1.4 index points over July, it’s the first positive sign that economic optimism could spread in the second half of the year.
As consumer confidence fluctuates and spending tightens, certain segments of the broader home service industry continue to thrive, revealing a resilience that defies broader economic trends.
The fact is, for most people, their home is their largest investment and most important asset. In an effort to protect this investment, USA Today reports the average United States household spends almost $6,000 per year on home maintenance and services. That is a strong indication that these types of businesses will continue to thrive during any economic cycle.
So what are some examples of home service businesses that are bringing in millions for the people behind them? Let’s take a look.
Green Mango Pest Control
In 2011, Cameron Bawden and his business partner started Green Mango Pest Control with one truck. Last year, they brought in more than $24 million in revenue and now have more than 165 employees.
The company is known for its matte black trucks with custom wheels and the Green Mango logo down the side. For them, branding is everything, and it has paid off big time. They invest in the best, from equipment to company apparel and chemicals, which helps them grow through referrals from happy customers.
Their customers pay monthly, helping them grow year over year and add more subscribers. It’s not just them — big private equity firms line up to get a shot at buying Green Mango due to this attractive revenue stream.
As long as Cameron continues to build a great brand that attracts and retains new customers, his business will hold its value at about four times revenue, or, in this case, about $100 million.
Air Nerds HVAC
Heating, ventilation, and air conditioning (HVAC) services are another great avenue for aspiring entrepreneurs to start a profitable home service business. James Martin, a third-generation HVAC nerd, founded the company and has grown it to serve a large portion of Central Virginia.
His unique branding and playful touch complement his wealth of knowledge and work ethic, allowing him to deliver first-class service to his customers.
Air Nerds is another example of a business with major upsides as it grows its customer base. Not only does it provide high-ticket items such as new HVAC systems, but it also offers ongoing repair and maintenance to provide a relatively consistent stream of income as we continue to face certain economic headwinds.
Lone Star Trash Company
Next on the list is Lone Star Trash Company, which Spencer Scott started in a matter of weeks. Spencer worked a 9-to-5 job in information technology but sensed people in his neighborhood were increasingly frustrated with neighborhood trash collection services.
The waste management company servicing his neighborhood wasn’t getting it done, so he joined a couple of Facebook groups and NextDoor to get a better sense of the demand for an alternative trash collection business.
In his post, Scott said he noticed the trash company was making a mess and not on schedule. He then suggested he would start his own trash business if 100 people in the neighborhood signed up with him.
10 days later, Spencer signed 150 people up for a three-month commitment, paid up front at $99 per household. So, before he did anything else, he raised $15,000 for a truck and to build the rest of the business.
It is important to mention that waste management businesses are valuable to outside investors for their monthly recurring revenue. Lone Star charges $33 monthly per household to get people signed up and receive an auto-payment each month for their services. The other huge benefit? Trash collection is once per week.
In short, Spencer was off and running all because he saw a problem in his local market and offered to help the people he cared about in his community solve that problem. Lone Star Trash continues to grow, and Spencer continues to reinvest in the business, adding trucks and personnel as he goes.
Just Better Home Services
Bryan Martz started Just Better Home Services in 2010 as the go-to for Central Virginia residents who need reliable and efficient home repairs. The company does everything from HVAC service, repair, and installation to plumbing and electrical work. The brand has opened more than 10 locations around Central Virginia.
With such great coverage and the ability to offer a one-stop shop to homeowners in need, it’s no wonder JBHS has experienced such success in the ever-growing home service industry.
The Common Thread
The home service industry demonstrates remarkable resilience even as consumer spending slows. Essential services, evolving consumer preferences, and technological advancements contribute to the continued profitability of businesses in this sector.
Companies like Green Mango and Air Nerds exemplify the success achievable through specialization, innovation, and a commitment to meeting market needs. As the economic landscape shifts, home service businesses’ adaptability and indispensable nature ensure their ongoing relevance and success.
