1 0:00:14,233 --> 0:00:17,195 Mark Haney: And now from the Marquee Media Studio
2 0:00:17,376 --> 0:00:18,777 Mark Haney: inside Mark Tank.
3 0:00:19,360 --> 0:00:20,082 Mark Haney: It's the Mark.
4 0:00:20,383 --> 0:00:21,687 Colton Paulhus: Haney Show.
5 0:00:22,840 --> 0:00:25,766 Mark Haney: Colton Paulus is in the house and we have a
6 0:00:25,806 --> 0:00:28,552 Mark Haney: brand new camera, so we are gonna look good.
7 0:00:29,000 --> 0:00:30,405 Mark Haney: If you are listening to this, it's the same
8 0:00:30,465 --> 0:00:33,944 Mark Haney: old audio, but if you are watching this on
9 0:00:33,984 --> 0:00:37,010 Mark Haney: YouTube, see if you can notice between the
10 0:00:37,171 --> 0:00:38,433 Mark Haney: old cameras and the new.
11 0:00:39,000 --> 0:00:43,209 Mark Haney: We have this three camera setup and one of
12 0:00:43,229 --> 0:00:45,882 Mark Haney: the cameras is brand new Scott, my man,
13 0:00:45,923 --> 0:00:47,909 Mark Haney: tells me it is better than the rest.
14 0:00:48,040 --> 0:00:50,428 Mark Haney: So, anyway, enough about me and my camera
15 0:00:50,468 --> 0:00:50,749 Mark Haney: setup.
16 0:00:50,840 --> 0:00:53,327 Mark Haney: This is about Colton Paulus and Anchored
17 0:00:53,387 --> 0:00:54,250 Mark Haney: Tiny Homes.
18 0:00:54,760 --> 0:00:56,744 Mark Haney: This is like one of the fastest growing
19 0:00:56,804 --> 0:01:00,351 Mark Haney: companies in the region and the product is
20 0:01:00,391 --> 0:01:01,333 Mark Haney: really interesting.
21 0:01:01,780 --> 0:01:05,427 Mark Haney: The story of Colton and him recruiting his
22 0:01:05,468 --> 0:01:07,572 Mark Haney: family in to build this business Super
23 0:01:07,612 --> 0:01:07,933 Mark Haney: interesting.
24 0:01:08,480 --> 0:01:10,250 Mark Haney: So we are gonna dive into all of that and
25 0:01:10,327 --> 0:01:12,483 Mark Haney: hopefully learn a little bit about how you
26 0:01:12,624 --> 0:01:14,229 Mark Haney: scale a company like you guys are doing.
27 0:01:14,400 --> 0:01:15,522 Mark Haney: It's really really incredible.
28 0:01:15,783 --> 0:01:16,945 Mark Haney: Welcome to the show, colton Yep.
29 0:01:17,086 --> 0:01:17,967 Colton Paulhus: Thanks for having me on.
30 0:01:17,988 --> 0:01:18,829 Colton Paulhus: I look forward to it.
31 0:01:19,110 --> 0:01:22,564 Mark Haney: Yeah, you and I have been kind of tracking
32 0:01:22,664 --> 0:01:24,730 Mark Haney: you from a distance.
33 0:01:25,680 --> 0:01:27,164 Mark Haney: We have known each other a number of years
34 0:01:27,345 --> 0:01:29,410 Mark Haney: and you have had some good ideas in the
35 0:01:29,451 --> 0:01:31,267 Mark Haney: past and kind of got them off the ground
36 0:01:31,327 --> 0:01:33,277 Mark Haney: and then you kind of maybe switched to
37 0:01:33,297 --> 0:01:37,088 Mark Haney: another idea or two and always impressed me
38 0:01:37,148 --> 0:01:38,131 Mark Haney: with your ambition.
39 0:01:38,760 --> 0:01:40,847 Mark Haney: But now the results are beginning to speak
40 0:01:40,887 --> 0:01:41,630 Mark Haney: for themselves.
41 0:01:41,760 --> 0:01:42,944 Mark Haney: So maybe just give me a little of the
42 0:01:42,984 --> 0:01:43,566 Mark Haney: background.
43 0:01:43,767 --> 0:01:44,128 Colton Paulhus: That's right.
44 0:01:44,900 --> 0:01:47,007 Mark Haney: Maybe just give us your origin story, if
45 0:01:47,027 --> 0:01:47,368 Mark Haney: you will.
46 0:01:47,648 --> 0:01:50,005 Colton Paulhus: Yeah, I was a sports growing up so I was a
47 0:01:50,045 --> 0:01:52,604 Colton Paulhus: college athlete, went to Colorado State,
48 0:01:52,684 --> 0:01:53,888 Colton Paulhus: played Division one football.
49 0:01:54,360 --> 0:01:56,867 Colton Paulhus: When I got out of college my first job was
50 0:01:56,927 --> 0:02:00,205 Colton Paulhus: actually selling insurance, so didn't
51 0:02:00,285 --> 0:02:01,529 Colton Paulhus: really know a ton about business.
52 0:02:01,580 --> 0:02:02,923 Colton Paulhus: I didn't really have the like door to door
53 0:02:02,984 --> 0:02:05,851 Colton Paulhus: knocking story selling things door to door.
54 0:02:06,580 --> 0:02:07,665 Colton Paulhus: I was focused on sports.
55 0:02:07,820 --> 0:02:09,087 Colton Paulhus: But then when I got out of college I came
56 0:02:09,127 --> 0:02:11,378 Colton Paulhus: home and got a sales job selling for
57 0:02:11,419 --> 0:02:13,566 Colton Paulhus: farmers insurance working for a guy by the
58 0:02:13,606 --> 0:02:14,910 Colton Paulhus: name of Bob Nielsen locally.
59 0:02:15,994 --> 0:02:17,679 Colton Paulhus: Actually fell in love with the sales
60 0:02:17,739 --> 0:02:17,920 Colton Paulhus: process.
61 0:02:18,280 --> 0:02:19,863 Colton Paulhus: I was like I could call someone sell
62 0:02:19,903 --> 0:02:20,844 Colton Paulhus: something, get a commission.
63 0:02:20,904 --> 0:02:22,427 Colton Paulhus: Call someone sell something, get a
64 0:02:22,467 --> 0:02:22,707 Colton Paulhus: commission.
65 0:02:22,727 --> 0:02:23,729 Mark Haney: A lot of people don't like that.
66 0:02:23,749 --> 0:02:24,750 Mark Haney: That's right I loved it.
67 0:02:24,810 --> 0:02:25,171 Colton Paulhus: I loved it.
68 0:02:25,191 --> 0:02:26,433 Colton Paulhus: It was like a, it was like a drug to me.
69 0:02:28,200 --> 0:02:29,813 Colton Paulhus: So I got really addicted to the sales
70 0:02:29,854 --> 0:02:31,542 Colton Paulhus: process, but you know, I wasn't really
71 0:02:31,763 --> 0:02:34,930 Colton Paulhus: living a quality of life that was that was
72 0:02:35,010 --> 0:02:36,033 Colton Paulhus: on par with my goals.
73 0:02:36,100 --> 0:02:38,044 Colton Paulhus: So I was drinking quite a bit, partying
74 0:02:38,104 --> 0:02:40,950 Colton Paulhus: really not living a life that I'm living
75 0:02:40,990 --> 0:02:43,482 Colton Paulhus: now, right, so anyway, so I got.
76 0:02:43,522 --> 0:02:44,946 Colton Paulhus: I ended up one night when I was working for
77 0:02:45,006 --> 0:02:45,808 Colton Paulhus: farmers insurance.
78 0:02:47,120 --> 0:02:48,646 Colton Paulhus: I ended up getting into some trouble.
79 0:02:49,160 --> 0:02:51,405 Colton Paulhus: So then what I did is I actually pivoted
80 0:02:51,546 --> 0:02:53,931 Colton Paulhus: from selling insurance to launching a
81 0:02:54,011 --> 0:02:55,884 Colton Paulhus: mobile app by the name of athletes
82 0:02:55,964 --> 0:02:56,466 Colton Paulhus: entourage.
83 0:02:57,480 --> 0:02:58,744 Colton Paulhus: So that was the second kind of business
84 0:02:58,764 --> 0:02:59,426 Colton Paulhus: that I started.
85 0:03:00,700 --> 0:03:02,205 Colton Paulhus: Athletes entourage was a mobile platform
86 0:03:02,266 --> 0:03:05,316 Colton Paulhus: connecting athletes to, you know,
87 0:03:05,376 --> 0:03:06,821 Colton Paulhus: professional athletes that wanted
88 0:03:06,862 --> 0:03:08,366 Colton Paulhus: mentorship and coaching and all that
89 0:03:08,386 --> 0:03:10,584 Colton Paulhus: different stuff, and then that never really
90 0:03:10,624 --> 0:03:11,086 Colton Paulhus: took off.
91 0:03:11,200 --> 0:03:13,345 Colton Paulhus: So I pivoted to more fit incorporated,
92 0:03:13,385 --> 0:03:14,848 Colton Paulhus: which was the same thing but fitness
93 0:03:14,928 --> 0:03:18,044 Colton Paulhus: influencers, and that had a little bit of
94 0:03:18,084 --> 0:03:18,526 Colton Paulhus: success.
95 0:03:18,660 --> 0:03:20,248 Colton Paulhus: I think I had maybe a hundred subscribers
96 0:03:20,288 --> 0:03:22,760 Colton Paulhus: at a time hundred and eighty five but never
97 0:03:22,820 --> 0:03:24,125 Colton Paulhus: really did what I wanted it to do.
98 0:03:24,840 --> 0:03:26,667 Colton Paulhus: And then I pivoted again to a company by
99 0:03:26,687 --> 0:03:28,735 Colton Paulhus: the name of Fresh Water Bottles, which was
100 0:03:28,795 --> 0:03:30,424 Colton Paulhus: a stainless steel water bottle company that
101 0:03:30,444 --> 0:03:32,128 Colton Paulhus: had a cause associated with it.
102 0:03:33,400 --> 0:03:35,007 Colton Paulhus: And then the fifth business that I started
103 0:03:35,108 --> 0:03:37,578 Colton Paulhus: was DMC media, which was just a local
104 0:03:37,619 --> 0:03:38,402 Colton Paulhus: marketing company.
105 0:03:39,040 --> 0:03:40,366 Colton Paulhus: All of these different businesses had a
106 0:03:40,467 --> 0:03:42,838 Colton Paulhus: little bit of success but never really had
107 0:03:42,878 --> 0:03:43,923 Colton Paulhus: the success that I wanted.
108 0:03:44,960 --> 0:03:47,668 Colton Paulhus: So then after DMC media, I ended up getting
109 0:03:47,688 --> 0:03:48,471 Colton Paulhus: married to my wife.
110 0:03:48,600 --> 0:03:49,845 Colton Paulhus: We were kind of building it together at the
111 0:03:49,885 --> 0:03:50,186 Colton Paulhus: time.
112 0:03:50,600 --> 0:03:53,326 Colton Paulhus: I think I had 15 clients, local businesses,
113 0:03:53,827 --> 0:03:55,250 Colton Paulhus: that we were supporting on a marketing
114 0:03:55,290 --> 0:03:55,511 Colton Paulhus: level.
115 0:03:56,760 --> 0:04:01,151 Colton Paulhus: And then what happened is I we stopped that
116 0:04:01,191 --> 0:04:01,512 Colton Paulhus: business.
117 0:04:01,580 --> 0:04:03,023 Colton Paulhus: I tried to get my insurance license one
118 0:04:03,043 --> 0:04:06,371 Colton Paulhus: more time and I actually got denied because
119 0:04:06,411 --> 0:04:07,052 Colton Paulhus: of my past.
120 0:04:07,420 --> 0:04:09,088 Colton Paulhus: So you know, there was a DUI, there was
121 0:04:09,108 --> 0:04:11,037 Colton Paulhus: things, I got expelled from a university so
122 0:04:11,058 --> 0:04:13,266 Colton Paulhus: the insurance committee actually denied my
123 0:04:13,346 --> 0:04:13,707 Colton Paulhus: license.
124 0:04:14,520 --> 0:04:15,565 Colton Paulhus: So I was doing really well.
125 0:04:15,620 --> 0:04:17,389 Colton Paulhus: I was selling for like six weeks because I
126 0:04:17,650 --> 0:04:19,359 Colton Paulhus: got approved tentatively and then they
127 0:04:19,379 --> 0:04:20,584 Colton Paulhus: looked at my file and denied it.
128 0:04:21,320 --> 0:04:23,106 Colton Paulhus: So I was kind of that emotion.
129 0:04:23,126 --> 0:04:24,109 Mark Haney: You like heartbreak.
130 0:04:24,280 --> 0:04:25,907 Mark Haney: You're like I put so much into this.
131 0:04:25,980 --> 0:04:27,226 Colton Paulhus: Yeah, there was a ton of time.
132 0:04:27,280 --> 0:04:29,401 Colton Paulhus: I actually failed the test twice, right, so
133 0:04:29,702 --> 0:04:30,807 Colton Paulhus: I put a ton of time into it.
134 0:04:30,920 --> 0:04:31,945 Colton Paulhus: I was recently married.
135 0:04:32,400 --> 0:04:33,445 Colton Paulhus: My wife was pregnant.
136 0:04:33,620 --> 0:04:35,866 Colton Paulhus: We were having our daughter at the time,
137 0:04:35,966 --> 0:04:36,889 Colton Paulhus: four months from now.
138 0:04:37,029 --> 0:04:37,871 Colton Paulhus: So I was panicked.
139 0:04:38,120 --> 0:04:39,426 Colton Paulhus: I'm like I got to provide for my family.
140 0:04:39,640 --> 0:04:41,301 Colton Paulhus: What am I going to do so anyway?
141 0:04:41,341 --> 0:04:43,409 Colton Paulhus: So I started researching different things.
142 0:04:43,500 --> 0:04:45,025 Colton Paulhus: I had always looked at different businesses
143 0:04:45,065 --> 0:04:47,161 Colton Paulhus: and wanted to start companies, but what
144 0:04:47,181 --> 0:04:48,588 Colton Paulhus: happened is I actually got an ad on
145 0:04:48,669 --> 0:04:50,880 Colton Paulhus: Facebook from a competitor, a tiny home
146 0:04:50,960 --> 0:04:53,629 Colton Paulhus: competitor and I kind of got gripped by it.
147 0:04:53,880 --> 0:04:55,524 Colton Paulhus: So I ended up researching what is a tiny
148 0:04:55,564 --> 0:04:55,725 Colton Paulhus: home?
149 0:04:55,745 --> 0:04:56,547 Colton Paulhus: How do you build them?
150 0:04:56,627 --> 0:04:57,329 Colton Paulhus: What does it look like?
151 0:04:57,409 --> 0:04:58,191 Colton Paulhus: All these different things?
152 0:04:58,840 --> 0:05:00,344 Colton Paulhus: And then I went to my dad and I said, hey,
153 0:05:00,364 --> 0:05:01,847 Colton Paulhus: do you think we could build tiny homes?
154 0:05:02,810 --> 0:05:05,025 Colton Paulhus: He said, yes, I threw up an ad on Facebook
155 0:05:05,440 --> 0:05:07,647 Colton Paulhus: and within three days we had 300 people
156 0:05:07,687 --> 0:05:08,088 Colton Paulhus: reach out.
157 0:05:08,920 --> 0:05:10,885 Colton Paulhus: So I kind of had that aha moment like OK,
158 0:05:10,906 --> 0:05:12,309 Colton Paulhus: this might, there might be a market here.
159 0:05:13,120 --> 0:05:14,346 Colton Paulhus: And then really, the rest was history.
160 0:05:14,520 --> 0:05:16,245 Colton Paulhus: We ended up meeting with four people at
161 0:05:16,265 --> 0:05:19,141 Colton Paulhus: like a Starbucks Pete's coffee I ended up
162 0:05:19,201 --> 0:05:21,849 Colton Paulhus: selling to people at this coffee shop over
163 0:05:21,869 --> 0:05:23,483 Colton Paulhus: the course of two weeks I think our first
164 0:05:23,523 --> 0:05:24,968 Colton Paulhus: contract was like 80,000.
165 0:05:25,160 --> 0:05:26,484 Colton Paulhus: The second one was 95.
166 0:05:28,120 --> 0:05:29,326 Colton Paulhus: And then really, the rest was history.
167 0:05:29,460 --> 0:05:33,010 Colton Paulhus: We started going all in January of 2020.
168 0:05:33,600 --> 0:05:35,289 Colton Paulhus: We landed a finance partner and then we
169 0:05:35,309 --> 0:05:36,877 Colton Paulhus: started selling five to seven of these a
170 0:05:36,937 --> 0:05:38,548 Colton Paulhus: month over the next 12 months, so walk.
171 0:05:40,561 --> 0:05:42,746 Mark Haney: Let me make sure I understand the time
172 0:05:42,826 --> 0:05:45,111 Mark Haney: frame, because this all happened in a
173 0:05:45,211 --> 0:05:47,586 Mark Haney: relatively short amount of time.
174 0:05:47,800 --> 0:05:49,747 Mark Haney: So the first five attempts.
175 0:05:50,301 --> 0:05:51,246 Colton Paulhus: That's what we'll call it.
176 0:05:51,660 --> 0:05:52,909 Mark Haney: That's over what span of time?
177 0:05:53,332 --> 0:05:54,420 Mark Haney: That was five years.
178 0:05:54,761 --> 0:05:56,204 Colton Paulhus: That was about five to six years.
179 0:05:56,224 --> 0:05:57,407 Colton Paulhus: Yeah, that's how I was thinking.
180 0:05:57,648 --> 0:05:57,909 Mark Haney: Happened.
181 0:05:57,949 --> 0:06:00,304 Mark Haney: Pretty well, you're, you were quick to
182 0:06:00,324 --> 0:06:00,967 Mark Haney: pivot or whatever.
183 0:06:01,000 --> 0:06:04,647 Mark Haney: How fast they say and that's really cool
184 0:06:04,667 --> 0:06:07,873 Mark Haney: that you were able to, I guess not meet
185 0:06:07,913 --> 0:06:09,884 Mark Haney: your expectations and make a new decision
186 0:06:09,924 --> 0:06:10,546 Mark Haney: really quick.
187 0:06:11,840 --> 0:06:13,406 Mark Haney: Did people ever accuse you of being like
188 0:06:13,467 --> 0:06:14,892 Mark Haney: flighty or indecisive?
189 0:06:14,933 --> 0:06:16,680 Colton Paulhus: All the time, Dude, what are you into now?
190 0:06:17,041 --> 0:06:17,261 Colton Paulhus: I mean.
191 0:06:17,462 --> 0:06:19,628 Mark Haney: I'm going to admit I even thought that at
192 0:06:19,808 --> 0:06:20,209 Mark Haney: one point.
193 0:06:20,230 --> 0:06:22,102 Mark Haney: I'm like I thought you were doing insurance.
194 0:06:22,123 --> 0:06:22,965 Mark Haney: What happened to the?
195 0:06:23,085 --> 0:06:24,248 Colton Paulhus: That's right yeah.
196 0:06:24,448 --> 0:06:27,123 Mark Haney: And I'm like, hmm, okay, I always thought
197 0:06:27,163 --> 0:06:29,270 Mark Haney: you were ambitious and so tracking.
198 0:06:29,962 --> 0:06:31,321 Mark Haney: But now you're onto something I've seen you
199 0:06:31,341 --> 0:06:33,246 Mark Haney: in the business journal getting recognized
200 0:06:33,627 --> 0:06:37,264 Mark Haney: for the high growth, and so maybe tell me
201 0:06:37,304 --> 0:06:40,050 Mark Haney: what the company looks like today, and then
202 0:06:40,070 --> 0:06:42,423 Mark Haney: we'll kind of back into some of the lessons
203 0:06:42,483 --> 0:06:43,246 Mark Haney: learned along the way.
204 0:06:43,326 --> 0:06:43,667 Colton Paulhus: That's right.
205 0:06:44,400 --> 0:06:46,567 Colton Paulhus: So the company now we have 72 employees.
206 0:06:47,720 --> 0:06:49,766 Colton Paulhus: We'll eclipse 100 million in system wide
207 0:06:49,786 --> 0:06:53,246 Colton Paulhus: sales this year, and so it's grown like
208 0:06:53,266 --> 0:06:53,627 Colton Paulhus: crazy.
209 0:06:53,680 --> 0:06:54,745 Colton Paulhus: And this has been four years.
210 0:06:54,800 --> 0:06:56,264 Colton Paulhus: So we went from zero to 100 million in
211 0:06:56,284 --> 0:06:59,441 Colton Paulhus: sales in less than four years and, like you
212 0:06:59,461 --> 0:07:01,287 Colton Paulhus: said, I started a ton of different things
213 0:07:02,640 --> 0:07:04,521 Colton Paulhus: and I still have a thousand ideas a week I
214 0:07:04,541 --> 0:07:05,475 Colton Paulhus: have to hone myself in.
215 0:07:05,516 --> 0:07:07,124 Colton Paulhus: Sometimes I'm like, hey, no, let's focus.
216 0:07:07,485 --> 0:07:08,909 Colton Paulhus: This is what's clicking, this is what's
217 0:07:08,949 --> 0:07:09,330 Colton Paulhus: working.
218 0:07:10,323 --> 0:07:11,127 Colton Paulhus: But yeah, it's been fun.
219 0:07:11,240 --> 0:07:12,986 Colton Paulhus: We've scaled it fast, built a great team.
220 0:07:14,280 --> 0:07:15,543 Colton Paulhus: I think one of the things I've learned
221 0:07:15,684 --> 0:07:18,070 Colton Paulhus: recently that I didn't do the first three
222 0:07:18,130 --> 0:07:21,904 Colton Paulhus: years is hire very skilled people, and I
223 0:07:21,944 --> 0:07:23,534 Colton Paulhus: feel like I waited too long because I'm
224 0:07:23,555 --> 0:07:25,186 Colton Paulhus: like, oh, that salary is high, you know,
225 0:07:25,206 --> 0:07:26,030 Colton Paulhus: can we afford that?
226 0:07:26,445 --> 0:07:28,172 Colton Paulhus: But I think now I'm realizing actually
227 0:07:28,265 --> 0:07:30,873 Colton Paulhus: pre-hiring those skilled people makes you
228 0:07:30,933 --> 0:07:31,735 Colton Paulhus: so much more money.
229 0:07:32,186 --> 0:07:36,016 Mark Haney: Yeah, you held off on it because, hey,
230 0:07:36,177 --> 0:07:38,125 Mark Haney: you're an early stage company, that's right.
231 0:07:38,205 --> 0:07:40,251 Mark Haney: You're not in a position to go hire the
232 0:07:40,291 --> 0:07:41,876 Mark Haney: best and the brightest, necessarily.
233 0:07:41,985 --> 0:07:44,805 Mark Haney: So you sort of cut back in those areas and
234 0:07:44,825 --> 0:07:46,930 Mark Haney: you're saying that was a mistake.
235 0:07:47,011 --> 0:07:48,053 Mark Haney: That was a mistake, did it cost you?
236 0:07:48,314 --> 0:07:49,316 Colton Paulhus: It cost us yeah.
237 0:07:49,397 --> 0:07:49,617 Mark Haney: And what?
238 0:07:49,946 --> 0:07:50,449 Colton Paulhus: Opportunity.
239 0:07:51,125 --> 0:07:53,894 Colton Paulhus: Opportunity, operational excellence,
240 0:07:54,465 --> 0:07:56,566 Colton Paulhus: because I'm more visionary right and then.
241 0:07:56,787 --> 0:07:59,266 Colton Paulhus: So we've really needed an integrator, or
242 0:07:59,346 --> 0:08:00,410 Colton Paulhus: multiple integrators.
243 0:08:01,065 --> 0:08:02,590 Colton Paulhus: There's a book Traction that I really like.
244 0:08:04,086 --> 0:08:06,988 Colton Paulhus: So I think we just waited too long to hire
245 0:08:07,048 --> 0:08:09,402 Colton Paulhus: skilled people in each category design,
246 0:08:09,463 --> 0:08:11,306 Colton Paulhus: permitting and construction and we just
247 0:08:11,347 --> 0:08:12,872 Colton Paulhus: wanted to do everything ourselves for a
248 0:08:12,912 --> 0:08:13,173 Colton Paulhus: while.
249 0:08:13,965 --> 0:08:16,071 Colton Paulhus: But now we've pivoted and we've done that
250 0:08:16,092 --> 0:08:17,416 Colton Paulhus: the right way, so it's been helpful.
251 0:08:17,605 --> 0:08:20,131 Mark Haney: Well, I remember I knew your mom and dad a
252 0:08:20,292 --> 0:08:25,153 Mark Haney: little bit and your dad built sheds.
253 0:08:25,293 --> 0:08:27,625 Mark Haney: At one point, if I remember correctly, he
254 0:08:27,645 --> 0:08:30,695 Mark Haney: had a successful business that built sheds,
255 0:08:30,805 --> 0:08:31,889 Mark Haney: and then, obviously, we went into the
256 0:08:31,909 --> 0:08:35,812 Mark Haney: financial crisis and then this surfaced
257 0:08:35,952 --> 0:08:37,717 Mark Haney: after the financial crisis.
258 0:08:37,845 --> 0:08:40,249 Mark Haney: That's right, you're the youngest son,
259 0:08:40,329 --> 0:08:40,530 Mark Haney: right?
260 0:08:40,865 --> 0:08:41,850 Colton Paulhus: No, I'm the oldest.
261 0:08:42,205 --> 0:08:43,790 Colton Paulhus: My brother is 29.
262 0:08:43,830 --> 0:08:44,392 Colton Paulhus: I'm 32.
263 0:08:44,593 --> 0:08:48,034 Mark Haney: Ok, so you come home and you guys get it
264 0:08:48,074 --> 0:08:51,494 Mark Haney: rocked and kind of put the shed business on
265 0:08:51,594 --> 0:08:54,373 Mark Haney: steroids with you're building tiny homes.
266 0:08:54,405 --> 0:08:56,730 Mark Haney: That's right, and maybe I'll stop for a
267 0:08:56,790 --> 0:08:59,491 Mark Haney: second and have you describe for our
268 0:08:59,571 --> 0:09:03,153 Mark Haney: audience what is an anchored tiny home.
269 0:09:03,193 --> 0:09:04,670 Mark Haney: Look like, what does it feel like?
270 0:09:05,608 --> 0:09:06,472 Mark Haney: What's the value there?
271 0:09:06,745 --> 0:09:08,089 Colton Paulhus: Yeah, so a tiny home.
272 0:09:08,130 --> 0:09:10,005 Colton Paulhus: We started the business with tiny homes on
273 0:09:10,046 --> 0:09:12,666 Colton Paulhus: wheels, so we were manufacturing, we had a
274 0:09:12,727 --> 0:09:13,410 Colton Paulhus: warehouse.
275 0:09:13,625 --> 0:09:15,572 Colton Paulhus: We had a 25,000 square foot warehouse at
276 0:09:15,672 --> 0:09:16,073 Colton Paulhus: one point.
277 0:09:16,605 --> 0:09:19,194 Colton Paulhus: But in 2020, California came out with a law
278 0:09:19,645 --> 0:09:22,514 Colton Paulhus: that said any residential lot can build
279 0:09:22,674 --> 0:09:24,631 Colton Paulhus: ADUs so accessory dwelling units.
280 0:09:26,028 --> 0:09:28,676 Colton Paulhus: So we pivoted again and saw the opportunity.
281 0:09:28,725 --> 0:09:30,349 Colton Paulhus: We started getting customers asking us
282 0:09:30,470 --> 0:09:33,117 Colton Paulhus: weekly do you build ADUs, do you build ADUs?
283 0:09:33,265 --> 0:09:34,931 Colton Paulhus: And finally I'm like, yeah, we build them.
284 0:09:36,025 --> 0:09:38,029 Colton Paulhus: And then we ended up just saying we kind of
285 0:09:38,814 --> 0:09:40,505 Colton Paulhus: created some models and went into that.
286 0:09:40,585 --> 0:09:42,030 Colton Paulhus: So we're actually not doing tiny homes on
287 0:09:42,070 --> 0:09:42,652 Colton Paulhus: wheels anymore.
288 0:09:43,245 --> 0:09:46,346 Colton Paulhus: So an ADU is an accessory dwelling unit, so
289 0:09:46,386 --> 0:09:47,711 Colton Paulhus: think of it as a backyard home.
290 0:09:48,665 --> 0:09:50,531 Mark Haney: So that's where you might put.
291 0:09:51,194 --> 0:09:54,133 Mark Haney: You've got a limited sized lot potentially,
292 0:09:55,265 --> 0:09:58,274 Mark Haney: and I think the ADU laws excuse me,
293 0:09:58,294 --> 0:10:01,553 Mark Haney: regulations require you to, or allow you to,
294 0:10:01,633 --> 0:10:03,332 Mark Haney: build something up to a certain number of
295 0:10:03,373 --> 0:10:03,837 Mark Haney: square feet.
296 0:10:03,857 --> 0:10:04,905 Colton Paulhus: Yeah, 1,200 square feet.
297 0:10:04,925 --> 0:10:06,831 Mark Haney: OK, so these are homes that are under 1,200
298 0:10:06,871 --> 0:10:07,513 Mark Haney: square feet.
299 0:10:08,045 --> 0:10:09,992 Mark Haney: They fit in, let's call it, your backyard
300 0:10:10,032 --> 0:10:12,648 Mark Haney: or somewhere on your property, and there's
301 0:10:12,688 --> 0:10:17,271 Mark Haney: a regulation that basically allows us, as
302 0:10:17,772 --> 0:10:20,498 Mark Haney: landowners or homeowners, to do that,
303 0:10:20,585 --> 0:10:25,236 Mark Haney: regardless of where our property is located
304 0:10:25,276 --> 0:10:25,817 Mark Haney: or anything like that.
305 0:10:26,325 --> 0:10:28,092 Mark Haney: There's not really the set of restrictions
306 0:10:28,145 --> 0:10:30,353 Mark Haney: you might have had in the past.
307 0:10:30,665 --> 0:10:33,240 Mark Haney: Now it's like no, you can put at least one
308 0:10:33,301 --> 0:10:34,005 Mark Haney: of these on your house.
309 0:10:34,085 --> 0:10:34,246 Colton Paulhus: Yeah.
310 0:10:34,266 --> 0:10:37,264 Colton Paulhus: So the state came in and took the control
311 0:10:37,345 --> 0:10:38,811 Colton Paulhus: out of the city's and county's hands.
312 0:10:39,385 --> 0:10:41,732 Colton Paulhus: So the state said no, every residential lot
313 0:10:41,912 --> 0:10:42,795 Colton Paulhus: has to allow.
314 0:10:43,345 --> 0:10:45,151 Colton Paulhus: Every city and county has to approve ADUs
315 0:10:46,346 --> 0:10:47,210 Colton Paulhus: on a residential lot.
316 0:10:47,325 --> 0:10:48,791 Colton Paulhus: Just because of the housing crisis that
317 0:10:48,811 --> 0:10:50,790 Colton Paulhus: we're in, we're not going to catch up with
318 0:10:50,830 --> 0:10:51,773 Colton Paulhus: single family homes.
319 0:10:52,125 --> 0:10:53,410 Colton Paulhus: They had to think of a different, new
320 0:10:53,490 --> 0:10:53,992 Colton Paulhus: alternative.
321 0:10:54,032 --> 0:10:54,694 Mark Haney: What a concept.
322 0:10:55,487 --> 0:10:57,513 Mark Haney: You can use your own land to build a place
323 0:10:58,766 --> 0:11:01,153 Mark Haney: and the state of California has allowed us
324 0:11:01,214 --> 0:11:01,555 Mark Haney: to do that.
325 0:11:01,805 --> 0:11:02,328 Mark Haney: That's cool.
326 0:11:03,145 --> 0:11:06,266 Mark Haney: It's interesting how people get cities in
327 0:11:06,306 --> 0:11:07,270 Mark Haney: different municipalities.
328 0:11:07,465 --> 0:11:09,351 Mark Haney: They put all these building restrictions
329 0:11:09,411 --> 0:11:10,094 Mark Haney: and codes on us.
330 0:11:10,926 --> 0:11:15,395 Mark Haney: And to have something that takes some of
331 0:11:15,415 --> 0:11:16,838 Mark Haney: those barriers away.
332 0:11:17,465 --> 0:11:21,274 Mark Haney: That's freeing and it has to be really
333 0:11:21,354 --> 0:11:23,411 Mark Haney: something that allows people to maybe have
334 0:11:23,431 --> 0:11:25,908 Mark Haney: their mother-in-law stay at their play or
335 0:11:26,049 --> 0:11:27,986 Mark Haney: have that have to be in the same house with
336 0:11:28,006 --> 0:11:28,086 Mark Haney: you.
337 0:11:28,106 --> 0:11:30,008 Mark Haney: Build your own little house or maybe even a
338 0:11:30,048 --> 0:11:30,630 Mark Haney: little rental.
339 0:11:31,307 --> 0:11:32,171 Mark Haney: I mean, what's the best?
340 0:11:32,446 --> 0:11:33,990 Mark Haney: So our breakdown is.
341 0:11:34,070 --> 0:11:37,791 Colton Paulhus: 70% is family, so aging parents, grandmas
342 0:11:37,831 --> 0:11:39,891 Colton Paulhus: getting old kids coming home from college,
343 0:11:40,425 --> 0:11:42,030 Colton Paulhus: and they just can't afford a $600,000,
344 0:11:42,050 --> 0:11:43,214 Colton Paulhus: $700,000 house.
345 0:11:44,207 --> 0:11:45,873 Colton Paulhus: So the family might own a piece of property
346 0:11:45,965 --> 0:11:47,912 Colton Paulhus: and they want to build a 800 to 1,200
347 0:11:47,952 --> 0:11:48,474 Colton Paulhus: square foot house.
348 0:11:48,725 --> 0:11:50,972 Colton Paulhus: I mean, we even sell 2,300 square foot ADUs.
349 0:11:51,945 --> 0:11:57,477 Colton Paulhus: So 70% is for family, 25% investor and then
350 0:11:57,517 --> 0:11:59,771 Colton Paulhus: 5% just a wealthier client that just wants
351 0:12:00,252 --> 0:12:01,607 Colton Paulhus: some more room on their property.
352 0:12:02,925 --> 0:12:04,270 Colton Paulhus: But when you think of investor, it's
353 0:12:04,310 --> 0:12:06,772 Colton Paulhus: actually not people with 40, 50, 60 rentals.
354 0:12:07,245 --> 0:12:08,666 Colton Paulhus: A lot of times it's someone that just wants
355 0:12:08,686 --> 0:12:09,931 Colton Paulhus: to supplement their mortgage.
356 0:12:10,365 --> 0:12:12,031 Colton Paulhus: So they might have a $3,000 mortgage
357 0:12:12,071 --> 0:12:14,109 Colton Paulhus: payment and they build an ADU and they can
358 0:12:14,149 --> 0:12:17,791 Colton Paulhus: cash flow $800 to $1,000 a month and all of
359 0:12:17,831 --> 0:12:19,266 Colton Paulhus: a sudden their mortgage payment goes down
360 0:12:19,307 --> 0:12:20,672 Colton Paulhus: or they have that free cash flow.
361 0:12:21,065 --> 0:12:24,185 Mark Haney: OK, so they are renting them to somebody to
362 0:12:24,226 --> 0:12:25,471 Mark Haney: help their cash flow.
363 0:12:25,805 --> 0:12:25,865 Colton Paulhus: OK.
364 0:12:27,065 --> 0:12:28,590 Mark Haney: So the only time I've been in a tiny, I
365 0:12:28,630 --> 0:12:30,075 Mark Haney: haven't been in your guys as tiny homes.
366 0:12:30,667 --> 0:12:32,974 Mark Haney: I was at a trade show like a little land
367 0:12:33,014 --> 0:12:35,273 Mark Haney: home and garden show back when I was
368 0:12:35,334 --> 0:12:37,545 Mark Haney: helping my concrete company sell concrete.
369 0:12:37,927 --> 0:12:39,171 Mark Haney: I would go to the home and garden shows all
370 0:12:39,191 --> 0:12:40,850 Mark Haney: the time and I remember walking into these
371 0:12:40,870 --> 0:12:43,751 Mark Haney: tiny homes and thinking this is really cool,
372 0:12:45,114 --> 0:12:45,776 Mark Haney: but they're tiny.
373 0:12:46,325 --> 0:12:48,170 Mark Haney: So you're saying they started about 2,300
374 0:12:48,632 --> 0:12:52,511 Mark Haney: square feet and that's I mean, that's 10 by
375 0:12:52,551 --> 0:12:54,356 Mark Haney: 20 or whatever 20 by 15.
376 0:12:55,105 --> 0:12:55,366 Mark Haney: That's right.
377 0:12:57,445 --> 0:12:58,088 Mark Haney: What can you get?
378 0:12:58,885 --> 0:13:00,471 Mark Haney: Can you even get a bathroom and a kitchen
379 0:13:00,491 --> 0:13:00,832 Mark Haney: and all that?
380 0:13:01,807 --> 0:13:02,068 Colton Paulhus: Yeah.
381 0:13:02,088 --> 0:13:04,228 Colton Paulhus: So our smallest model, that we tells 240
382 0:13:04,268 --> 0:13:06,987 Colton Paulhus: square feet, is a 12 by 20, and it's just a
383 0:13:07,047 --> 0:13:08,807 Colton Paulhus: small kitchen and a bathroom and it's a
384 0:13:08,847 --> 0:13:09,229 Colton Paulhus: studio.
385 0:13:10,048 --> 0:13:11,542 Mark Haney: OK, so you have a hide-a-bed where you have
386 0:13:11,562 --> 0:13:13,431 Mark Haney: one of those beds that tuck into the wall.
387 0:13:13,471 --> 0:13:14,013 Colton Paulhus: Yeah, okay.
388 0:13:15,008 --> 0:13:17,330 Mark Haney: Interesting, so, and then they go up to
389 0:13:17,350 --> 0:13:19,155 Mark Haney: 1200 square feet.
390 0:13:19,485 --> 0:13:21,291 Colton Paulhus: Most people are right around the five to
391 0:13:21,331 --> 0:13:24,148 Colton Paulhus: 800 square foot range, so one bed to two
392 0:13:24,188 --> 0:13:26,515 Colton Paulhus: bed unit is most of what our consumer is.
393 0:13:27,106 --> 0:13:28,472 Mark Haney: And are there walls?
394 0:13:28,625 --> 0:13:30,147 Mark Haney: I mean, are you, like you know, in the
395 0:13:30,187 --> 0:13:31,352 Mark Haney: small ones would I typically.
396 0:13:31,385 --> 0:13:31,686 Mark Haney: Would it be?
397 0:13:31,707 --> 0:13:32,651 Mark Haney: You say one to two bed?
398 0:13:32,725 --> 0:13:33,951 Mark Haney: Is that one to two bedrooms?
399 0:13:34,105 --> 0:13:36,199 Mark Haney: Or is that, you know, just a couple beds,
400 0:13:36,239 --> 0:13:37,104 Mark Haney: couple twin beds in one?
401 0:13:37,124 --> 0:13:38,229 Colton Paulhus: room, no one to two bedrooms.
402 0:13:38,309 --> 0:13:40,502 Colton Paulhus: Yeah, oh, okay, there's a wall separating
403 0:13:40,522 --> 0:13:40,603 Colton Paulhus: them.
404 0:13:40,765 --> 0:13:43,374 Colton Paulhus: So the way they lay it out, we get creative
405 0:13:43,465 --> 0:13:44,227 Colton Paulhus: and all kinds of stuff.
406 0:13:44,268 --> 0:13:47,226 Colton Paulhus: Maybe a 10 by 10, 10 by 12 bedroom, but
407 0:13:47,266 --> 0:13:48,270 Colton Paulhus: yeah, people put beds in them.
408 0:13:48,430 --> 0:13:49,093 Mark Haney: That's awesome.
409 0:13:49,385 --> 0:13:51,794 Mark Haney: And then they share the yard, potentially
410 0:13:51,905 --> 0:13:54,933 Mark Haney: for his common area to play or run around
411 0:13:54,993 --> 0:13:55,294 Mark Haney: or whatever.
412 0:13:55,775 --> 0:13:56,356 Mark Haney: That's really cool.
413 0:13:56,805 --> 0:14:01,827 Mark Haney: So what you mentioned maybe or maybe this
414 0:14:01,887 --> 0:14:04,287 Mark Haney: is my impression of what you said is that
415 0:14:04,327 --> 0:14:06,855 Mark Haney: we don't have enough housing in California,
416 0:14:07,005 --> 0:14:08,651 Mark Haney: or I guess across the country, across the
417 0:14:08,671 --> 0:14:09,033 Mark Haney: country, yeah.
418 0:14:09,445 --> 0:14:13,596 Mark Haney: So this helps solve that by just making it
419 0:14:13,676 --> 0:14:15,611 Mark Haney: more affordable, just to slap up a quick
420 0:14:15,631 --> 0:14:18,070 Mark Haney: home or put a really affordable home
421 0:14:18,090 --> 0:14:19,012 Mark Haney: together, correct?
422 0:14:19,212 --> 0:14:20,154 Colton Paulhus: Yeah, yeah.
423 0:14:20,174 --> 0:14:21,558 Colton Paulhus: So I mean it does two things right.
424 0:14:22,206 --> 0:14:25,034 Colton Paulhus: So it cuts the red tape from restricting
425 0:14:25,074 --> 0:14:27,250 Colton Paulhus: people right From building what they want
426 0:14:27,330 --> 0:14:27,953 Colton Paulhus: on their property.
427 0:14:28,426 --> 0:14:30,889 Colton Paulhus: And then the second thing is is it really
428 0:14:31,089 --> 0:14:33,567 Colton Paulhus: enables that entry level buyer to have
429 0:14:33,607 --> 0:14:34,210 Colton Paulhus: somewhere to live?
430 0:14:34,605 --> 0:14:37,110 Colton Paulhus: So you know, these big home home developers
431 0:14:37,170 --> 0:14:39,685 Colton Paulhus: are building anywhere from 1800 to 3,500
432 0:14:39,745 --> 0:14:41,873 Colton Paulhus: square foot homes, but that cuts out to
433 0:14:41,913 --> 0:14:43,912 Colton Paulhus: people that are making 60, 70, 80 grand a
434 0:14:43,952 --> 0:14:45,350 Colton Paulhus: year and they can't buy a house.
435 0:14:45,605 --> 0:14:46,630 Mark Haney: So how do you buy any?
436 0:14:46,785 --> 0:14:47,629 Mark Haney: How do you buy one of these ADUs?
437 0:14:49,008 --> 0:14:49,771 Mark Haney: So what's the purchase?
438 0:14:50,245 --> 0:14:51,209 Colton Paulhus: You can't buy them.
439 0:14:51,289 --> 0:14:53,226 Colton Paulhus: But maybe it's a family compound and
440 0:14:53,246 --> 0:14:55,113 Colton Paulhus: they're kind of putting money into one pot
441 0:14:55,165 --> 0:14:56,771 Colton Paulhus: where they can share some of the benefits.
442 0:14:57,205 --> 0:14:59,733 Colton Paulhus: So like, let's say, the mom is moving on to
443 0:14:59,753 --> 0:15:01,770 Colton Paulhus: the property, she sold a house in the Bay
444 0:15:01,850 --> 0:15:05,146 Colton Paulhus: Area, maybe had 160,000 in equity, and then
445 0:15:05,166 --> 0:15:07,934 Colton Paulhus: she puts that 160 into the kids property,
446 0:15:08,496 --> 0:15:08,696 Colton Paulhus: right?
447 0:15:08,785 --> 0:15:10,010 Colton Paulhus: So then they're kind of both benefiting,
448 0:15:10,030 --> 0:15:11,347 Colton Paulhus: right, I love that we're.
449 0:15:11,387 --> 0:15:12,733 Mark Haney: as you know I think you might know this
450 0:15:12,825 --> 0:15:15,173 Mark Haney: we're building a family compound right now
451 0:15:16,146 --> 0:15:17,953 Mark Haney: and we haven't done any tiny homes yet.
452 0:15:18,105 --> 0:15:21,195 Mark Haney: But when you said have your mom move out
453 0:15:21,235 --> 0:15:23,613 Mark Haney: there, that kind of that put me off a
454 0:15:23,653 --> 0:15:23,914 Mark Haney: little bit.
455 0:15:24,065 --> 0:15:26,465 Mark Haney: I want my mom passed away a while ago, but
456 0:15:26,546 --> 0:15:27,810 Mark Haney: I don't know I'm not sure I want my
457 0:15:27,870 --> 0:15:29,073 Mark Haney: mother-in-law.
458 0:15:29,114 --> 0:15:29,876 Colton Paulhus: Not a lot of people.
459 0:15:30,006 --> 0:15:30,793 Colton Paulhus: They live out there.
460 0:15:31,225 --> 0:15:34,606 Mark Haney: So it's like ah you know, hopefully my wife
461 0:15:34,686 --> 0:15:37,206 Mark Haney: is not listening to this podcast getting
462 0:15:37,246 --> 0:15:37,929 Mark Haney: any ideas.
463 0:15:38,665 --> 0:15:40,011 Mark Haney: I don't think I want a tiny home.
464 0:15:40,265 --> 0:15:41,210 Mark Haney: I wouldn't mind having a tiny home.
465 0:15:41,325 --> 0:15:42,907 Colton Paulhus: I think that'd be cool, but maybe for my
466 0:15:42,947 --> 0:15:43,931 Colton Paulhus: grandkids when they get older.
467 0:15:44,725 --> 0:15:45,932 Colton Paulhus: I don't know what my mother-in-law out
468 0:15:45,952 --> 0:15:47,969 Colton Paulhus: there Hopefully she's not listening.
469 0:15:49,005 --> 0:15:49,326 Mark Haney: Okay.
470 0:15:49,386 --> 0:15:53,047 Mark Haney: So the yeah, you really are addressing the
471 0:15:53,087 --> 0:15:55,806 Mark Haney: housing crisis that we have Interest rates
472 0:15:55,847 --> 0:16:00,431 Mark Haney: have come up Is that it's tough, tougher
473 0:16:00,451 --> 0:16:02,176 Mark Haney: and tougher to buy a home.
474 0:16:02,605 --> 0:16:05,986 Mark Haney: It's forcing us to want to, I guess, stay
475 0:16:06,066 --> 0:16:08,093 Mark Haney: in our homes longer, because if you've got
476 0:16:08,133 --> 0:16:10,010 Mark Haney: a home with, say, a three or 4% interest
477 0:16:10,071 --> 0:16:12,410 Mark Haney: rate, you're not really.
478 0:16:12,731 --> 0:16:14,606 Mark Haney: I mean, the market isn't set up so that you
479 0:16:14,627 --> 0:16:16,333 Mark Haney: can trade up really easily.
480 0:16:17,107 --> 0:16:18,091 Mark Haney: You trade up and you've got to.
481 0:16:18,565 --> 0:16:20,472 Mark Haney: You may have gone to an 8% interest rate
482 0:16:20,512 --> 0:16:20,773 Mark Haney: loan.
483 0:16:20,805 --> 0:16:22,230 Mark Haney: It's like, well, my God, I can't even go
484 0:16:22,270 --> 0:16:22,752 Mark Haney: sideways.
485 0:16:22,792 --> 0:16:23,153 Colton Paulhus: That's right.
486 0:16:24,147 --> 0:16:25,612 Mark Haney: So people you know, but you want to
487 0:16:25,672 --> 0:16:27,990 Mark Haney: continue to improve your lifestyle and make
488 0:16:28,031 --> 0:16:30,546 Mark Haney: changes, move to a tiny home so the
489 0:16:30,606 --> 0:16:32,192 Mark Haney: interest rates hurt or helped you.
490 0:16:32,965 --> 0:16:33,910 Colton Paulhus: I'd say it's neutral.
491 0:16:34,526 --> 0:16:38,777 Colton Paulhus: So it's hurt us in the more affluent buyer.
492 0:16:38,965 --> 0:16:40,591 Colton Paulhus: So someone that maybe owns more rental
493 0:16:40,652 --> 0:16:42,971 Colton Paulhus: properties wants to, you know, do a HELOC
494 0:16:43,011 --> 0:16:45,048 Colton Paulhus: and then add a rental unit so that it's
495 0:16:45,089 --> 0:16:45,490 Colton Paulhus: hurt us.
496 0:16:45,985 --> 0:16:48,171 Colton Paulhus: But when it comes to the parents and the
497 0:16:48,693 --> 0:16:50,888 Colton Paulhus: housing for family, it hasn't hurt us
498 0:16:51,210 --> 0:16:52,728 Colton Paulhus: because we're still the most affordable
499 0:16:52,849 --> 0:16:53,090 Colton Paulhus: option.
500 0:16:53,265 --> 0:16:54,992 Colton Paulhus: So when it comes to an apartment complex
501 0:16:55,445 --> 0:16:58,514 Colton Paulhus: that's 2000 to 3000 a month, versus a care
502 0:16:58,554 --> 0:17:01,913 Colton Paulhus: facility, versus financing an ADU on a
503 0:17:01,973 --> 0:17:04,512 Colton Paulhus: HELOC, it still is the most affordable
504 0:17:04,632 --> 0:17:04,833 Colton Paulhus: option.
505 0:17:04,925 --> 0:17:07,693 Colton Paulhus: You can finance a $200,000 ADU for 1800
506 0:17:07,713 --> 0:17:08,235 Colton Paulhus: bucks a month.
507 0:17:08,605 --> 0:17:08,806 Mark Haney: Okay.
508 0:17:08,826 --> 0:17:10,913 Mark Haney: So HELOC, home Equity Line of Credit.
509 0:17:11,345 --> 0:17:12,950 Mark Haney: So that's where you've got your first on
510 0:17:12,970 --> 0:17:16,210 Mark Haney: the house already and you decide you want
511 0:17:16,230 --> 0:17:17,534 Mark Haney: to put up a tiny home.
512 0:17:18,005 --> 0:17:20,653 Mark Haney: You go to a traditional bank and get a home
513 0:17:20,694 --> 0:17:24,972 Mark Haney: equity line of credit and then you know,
514 0:17:24,992 --> 0:17:27,567 Mark Haney: say you get a $150,000 line of credit, you
515 0:17:27,647 --> 0:17:30,088 Mark Haney: put some of it into this, into this tiny
516 0:17:30,149 --> 0:17:32,109 Mark Haney: home, and then you're not.
517 0:17:32,611 --> 0:17:34,448 Mark Haney: Typically you got a, is that interest only?
518 0:17:34,489 --> 0:17:34,991 Mark Haney: Or you got to pay.
519 0:17:35,031 --> 0:17:37,646 Mark Haney: Those are those termed out or how there's a
520 0:17:37,687 --> 0:17:38,631 Mark Haney: few different options.
521 0:17:38,725 --> 0:17:40,893 Colton Paulhus: There's variable rates, there's fixed rates.
522 0:17:41,545 --> 0:17:43,169 Colton Paulhus: Most of the time it's spread out over 20,
523 0:17:43,189 --> 0:17:43,791 Colton Paulhus: 25 years.
524 0:17:43,811 --> 0:17:44,934 Colton Paulhus: Oh okay, yeah, yeah.
525 0:17:44,954 --> 0:17:45,475 Mark Haney: Okay, that's cool.
526 0:17:46,405 --> 0:17:47,670 Mark Haney: And do you guys get involved when you sell
527 0:17:47,711 --> 0:17:49,732 Mark Haney: it typically directly to the consumer,
528 0:17:49,852 --> 0:17:50,053 Mark Haney: right?
529 0:17:50,145 --> 0:17:52,312 Mark Haney: So it's somebody who owns their own home
530 0:17:52,332 --> 0:17:52,934 Mark Haney: that's buying it.
531 0:17:53,165 --> 0:17:55,191 Mark Haney: There's no middleman in there, correct,
532 0:17:55,272 --> 0:17:55,532 Mark Haney: okay?
533 0:17:56,605 --> 0:17:58,591 Mark Haney: And do you help coordinate the financing
534 0:17:58,651 --> 0:17:58,992 Mark Haney: piece?
535 0:17:59,033 --> 0:17:59,835 Colton Paulhus: and all that kind of stuff.
536 0:18:00,005 --> 0:18:01,411 Colton Paulhus: We're truly a white glove service.
537 0:18:01,485 --> 0:18:04,274 Colton Paulhus: So we handle everything from finance to
538 0:18:04,314 --> 0:18:06,231 Colton Paulhus: design, to permitting to construction.
539 0:18:06,425 --> 0:18:08,012 Colton Paulhus: So we brought on a director of finance
540 0:18:08,125 --> 0:18:09,591 Colton Paulhus: that's a licensed mortgage officer.
541 0:18:09,985 --> 0:18:11,731 Colton Paulhus: We don't do the loans, we just play
542 0:18:11,792 --> 0:18:13,429 Colton Paulhus: quarterback and kind of figure out where it
543 0:18:13,469 --> 0:18:13,951 Colton Paulhus: needs to go.
544 0:18:15,328 --> 0:18:17,465 Mark Haney: So yeah, so in terms of that process, maybe
545 0:18:17,485 --> 0:18:20,334 Mark Haney: walk me through that process, because I'm
546 0:18:20,375 --> 0:18:22,653 Mark Haney: kind of not the loan process necessarily,
547 0:18:22,805 --> 0:18:24,351 Mark Haney: but how you quarterback that.
548 0:18:25,345 --> 0:18:26,428 Mark Haney: We hear about you.
549 0:18:27,030 --> 0:18:31,011 Mark Haney: We say, hey, you know I'm interested, you
550 0:18:31,292 --> 0:18:32,968 Mark Haney: do a site visit, how does it?
551 0:18:33,008 --> 0:18:33,229 Colton Paulhus: start.
552 0:18:33,545 --> 0:18:35,733 Colton Paulhus: Yeah, so we have an ADU expert that we call
553 0:18:35,774 --> 0:18:37,765 Colton Paulhus: him, that will come out to your site we
554 0:18:37,806 --> 0:18:38,869 Colton Paulhus: have 18 now.
555 0:18:39,271 --> 0:18:40,971 Colton Paulhus: They'll visit your site, measure for
556 0:18:41,072 --> 0:18:42,566 Colton Paulhus: utilities, kind of ask you what you're
557 0:18:42,586 --> 0:18:43,209 Colton Paulhus: looking for.
558 0:18:43,650 --> 0:18:44,413 Colton Paulhus: What's it for?
559 0:18:44,625 --> 0:18:46,272 Colton Paulhus: Do you want a one bed, a two bedroom?
560 0:18:46,666 --> 0:18:48,366 Colton Paulhus: We'll stake out their lot, you know, kind
561 0:18:48,386 --> 0:18:49,946 Colton Paulhus: of figure out what they can build, first
562 0:18:49,986 --> 0:18:51,826 Colton Paulhus: and foremost, with the setbacks, with
563 0:18:52,006 --> 0:18:54,426 Colton Paulhus: easements, with trees, power lines, all
564 0:18:54,466 --> 0:18:55,230 Colton Paulhus: those different things.
565 0:18:55,625 --> 0:18:57,232 Colton Paulhus: Once we figure out what they can build,
566 0:18:57,786 --> 0:18:59,352 Colton Paulhus: then we'll draft up a proposal.
567 0:18:59,665 --> 0:19:01,352 Colton Paulhus: And some people make us draft up five, six,
568 0:19:01,392 --> 0:19:03,110 Colton Paulhus: seven because they're not sure exactly what
569 0:19:03,151 --> 0:19:03,532 Colton Paulhus: they want.
570 0:19:04,447 --> 0:19:05,807 Colton Paulhus: And we're willing to do that because we're
571 0:19:05,827 --> 0:19:08,956 Colton Paulhus: a custom builder, and so we'll kind of walk
572 0:19:08,976 --> 0:19:09,945 Colton Paulhus: them through that whole process.
573 0:19:10,065 --> 0:19:11,972 Colton Paulhus: If they're interested, we'll ask them if
574 0:19:11,992 --> 0:19:12,834 Colton Paulhus: they have financing.
575 0:19:13,206 --> 0:19:15,227 Colton Paulhus: If they say no, not lined up yet, I do have
576 0:19:15,267 --> 0:19:17,308 Colton Paulhus: a local credit union, and then we'll say
577 0:19:17,328 --> 0:19:19,249 Colton Paulhus: okay, let's connect with our internal team
578 0:19:19,369 --> 0:19:21,447 Colton Paulhus: and at least we'll help, kind of guide you
579 0:19:21,467 --> 0:19:22,551 Colton Paulhus: through this process Got you?
580 0:19:22,651 --> 0:19:23,474 Mark Haney: What about the permitting?
581 0:19:24,367 --> 0:19:25,692 Mark Haney: So I'm, as I mentioned, I'm building that
582 0:19:25,732 --> 0:19:28,692 Mark Haney: family compound and I dealt with permitting
583 0:19:28,793 --> 0:19:31,772 Mark Haney: issues and crossing property lines because
584 0:19:31,812 --> 0:19:33,808 Mark Haney: it's like 74 acres and building multiple
585 0:19:33,828 --> 0:19:37,977 Mark Haney: houses and stuff, and so what are the
586 0:19:37,997 --> 0:19:40,067 Mark Haney: biggest hiccups that happen throughout that
587 0:19:41,050 --> 0:19:42,395 Mark Haney: new construction process?
588 0:19:42,807 --> 0:19:43,730 Mark Haney: Because it's a ground up?
589 0:19:43,991 --> 0:19:44,292 Colton Paulhus: house.
590 0:19:44,526 --> 0:19:46,340 Mark Haney: Yeah, so you mentioned it when we were
591 0:19:46,360 --> 0:19:49,393 Mark Haney: talking earlier, but PG&E SMUD, I wasn't
592 0:19:49,413 --> 0:19:52,113 Mark Haney: gonna say it PG&E's got me right now, man,
593 0:19:52,425 --> 0:19:54,712 Mark Haney: they've got me by the short hairs.
594 0:19:55,625 --> 0:19:57,672 Colton Paulhus: They're understaffed right now and they're
595 0:19:57,692 --> 0:19:58,334 Colton Paulhus: just slow.
596 0:19:58,746 --> 0:19:59,989 Colton Paulhus: They take a while to get back to us.
597 0:20:00,045 --> 0:20:01,852 Colton Paulhus: So we're implementing things where we
598 0:20:01,933 --> 0:20:04,467 Colton Paulhus: submit even before we have the permit, just
599 0:20:04,487 --> 0:20:05,695 Colton Paulhus: so we're getting way ahead of it.
600 0:20:05,835 --> 0:20:08,244 Mark Haney: I was wondering if you were having PG&E
601 0:20:08,826 --> 0:20:10,793 Mark Haney: issues or so and you say you deal with.
602 0:20:11,094 --> 0:20:12,119 Mark Haney: Well, you don't just build them in the
603 0:20:12,139 --> 0:20:12,882 Mark Haney: Sacramento area.
604 0:20:13,015 --> 0:20:14,400 Colton Paulhus: So it's smud PG&E.
605 0:20:14,982 --> 0:20:15,223 Mark Haney: I guess.
606 0:20:15,715 --> 0:20:18,604 Mark Haney: So what's the geographic footprint of the
607 0:20:18,664 --> 0:20:19,005 Mark Haney: company?
608 0:20:19,395 --> 0:20:21,542 Colton Paulhus: So we're all the way, kind of in the North
609 0:20:21,602 --> 0:20:23,336 Colton Paulhus: Bay all the way down, so we'll serve us
610 0:20:23,376 --> 0:20:26,763 Colton Paulhus: like the East Bay area, san Jose, silicon
611 0:20:26,803 --> 0:20:28,727 Colton Paulhus: Valley, all the way down to Sacramento.
612 0:20:28,847 --> 0:20:31,659 Mark Haney: Okay, so that geographic area that gets you
613 0:20:31,679 --> 0:20:32,802 Mark Haney: up to 100 million, that's right.
614 0:20:32,902 --> 0:20:34,405 Mark Haney: Okay, that's really cool.
615 0:20:35,535 --> 0:20:36,982 Mark Haney: You mentioned, I think, as we were walking
616 0:20:37,022 --> 0:20:39,593 Mark Haney: around earlier, that some of this is
617 0:20:39,674 --> 0:20:41,781 Mark Haney: turning into a franchise model.
618 0:20:42,995 --> 0:20:45,261 Mark Haney: Maybe walk me through how you came across,
619 0:20:45,321 --> 0:20:47,647 Mark Haney: how you decided to go that route, you know,
620 0:20:47,775 --> 0:20:50,202 Mark Haney: instead of just doing all these employees
621 0:20:50,222 --> 0:20:51,004 Mark Haney: and build them all yourself.
622 0:20:51,124 --> 0:20:53,922 Colton Paulhus: Yeah, so there was actually a customer that
623 0:20:53,982 --> 0:20:54,404 Colton Paulhus: reached out.
624 0:20:54,495 --> 0:20:55,940 Colton Paulhus: I was the original sales rep for the
625 0:20:55,980 --> 0:20:56,382 Colton Paulhus: company.
626 0:20:57,115 --> 0:20:58,500 Colton Paulhus: So I ended up meeting with this client,
627 0:20:58,580 --> 0:20:59,844 Colton Paulhus: talking to him about ADUs.
628 0:20:59,955 --> 0:21:01,620 Colton Paulhus: He wanted to build like 15 on different
629 0:21:01,660 --> 0:21:04,517 Colton Paulhus: rental properties and he was just like
630 0:21:04,577 --> 0:21:05,782 Colton Paulhus: enthralled with our business.
631 0:21:06,355 --> 0:21:07,599 Colton Paulhus: And then he told me he's like, hey, I've
632 0:21:07,619 --> 0:21:09,665 Colton Paulhus: been in the franchise business for 25 years.
633 0:21:09,936 --> 0:21:11,335 Colton Paulhus: That's what I've done.
634 0:21:11,395 --> 0:21:12,258 Colton Paulhus: And then so, anyway, so I started
635 0:21:12,319 --> 0:21:13,583 Colton Paulhus: researching day after day.
636 0:21:13,715 --> 0:21:15,282 Colton Paulhus: I'm like this might be a good opportunity
637 0:21:15,322 --> 0:21:17,914 Colton Paulhus: for us to grow and not need necessarily
638 0:21:17,954 --> 0:21:19,741 Colton Paulhus: maybe venture capital or private equity
639 0:21:19,841 --> 0:21:20,384 Colton Paulhus: right away.
640 0:21:20,636 --> 0:21:22,382 Colton Paulhus: I'm not saying that's off the table forever,
641 0:21:23,275 --> 0:21:25,624 Colton Paulhus: but so I just started researching after he
642 0:21:25,664 --> 0:21:27,210 Colton Paulhus: told me about it and walked me through,
643 0:21:27,231 --> 0:21:29,560 Colton Paulhus: ended up reaching out to kind of a
644 0:21:29,761 --> 0:21:31,829 Colton Paulhus: franchise brand builder that helps you with
645 0:21:31,869 --> 0:21:34,759 Colton Paulhus: your FDD, with your, you know, getting
646 0:21:34,799 --> 0:21:36,544 Colton Paulhus: legal, all that different kind of stuff.
647 0:21:37,235 --> 0:21:39,124 Colton Paulhus: And this was in 2021.
648 0:21:39,275 --> 0:21:40,960 Mark Haney: You weren't even considering franchising
649 0:21:41,020 --> 0:21:42,464 Mark Haney: until this guy started talking about it.
650 0:21:42,504 --> 0:21:43,795 Colton Paulhus: Wasn't, weren't even considering it, we
651 0:21:43,815 --> 0:21:45,259 Colton Paulhus: were just going to grow corporate and just
652 0:21:45,680 --> 0:21:46,743 Colton Paulhus: launch new markets.
653 0:21:48,255 --> 0:21:49,497 Colton Paulhus: And then he brought it up and I'm like man,
654 0:21:49,518 --> 0:21:51,381 Colton Paulhus: that's a really cool, interesting idea.
655 0:21:51,862 --> 0:21:52,944 Mark Haney: Yeah, it makes sense.
656 0:21:53,004 --> 0:21:54,587 Mark Haney: I had a guy on my show I may have even told
657 0:21:54,607 --> 0:21:57,340 Mark Haney: you about this we talked a while back is
658 0:21:57,721 --> 0:21:58,464 Mark Haney: Paul Porter.
659 0:21:59,255 --> 0:22:02,241 Mark Haney: He has Premier pools and they have a local.
660 0:22:03,203 --> 0:22:05,768 Mark Haney: There's a local Premier pools here, but
661 0:22:05,828 --> 0:22:08,981 Mark Haney: then he spun off and created a franchise
662 0:22:09,001 --> 0:22:11,726 Mark Haney: pool service and they grew like crazy.
663 0:22:11,787 --> 0:22:12,107 Colton Paulhus: Oh yes.
664 0:22:12,995 --> 0:22:14,461 Mark Haney: And it's like, if you can create that
665 0:22:14,582 --> 0:22:15,907 Mark Haney: system, you can.
666 0:22:15,927 --> 0:22:18,036 Mark Haney: I mean, because people, I get this all the
667 0:22:18,076 --> 0:22:18,317 Mark Haney: time.
668 0:22:18,377 --> 0:22:20,403 Mark Haney: Mark, hey, I got this service company, how
669 0:22:20,423 --> 0:22:21,185 Mark Haney: do I scale it?
670 0:22:21,355 --> 0:22:22,801 Mark Haney: Or I got a construction company, how do I
671 0:22:22,841 --> 0:22:23,323 Mark Haney: scale it?
672 0:22:23,535 --> 0:22:27,163 Mark Haney: And it's a lot of times it's very, very
673 0:22:27,303 --> 0:22:29,067 Mark Haney: difficult to scale some of these kind of
674 0:22:29,167 --> 0:22:30,978 Mark Haney: businesses, but basically you're creating
675 0:22:31,078 --> 0:22:31,740 Mark Haney: entrepreneurs.
676 0:22:31,801 --> 0:22:32,242 Mark Haney: That's right, Right.
677 0:22:33,895 --> 0:22:35,978 Mark Haney: So somebody who knows how to build a house
678 0:22:36,379 --> 0:22:39,965 Mark Haney: or do construction, they can basically take
679 0:22:40,085 --> 0:22:41,327 Mark Haney: your brand.
680 0:22:41,448 --> 0:22:42,149 Colton Paulhus: Is that what happens?
681 0:22:42,169 --> 0:22:43,998 Mark Haney: Yeah, they take your brand, your system,
682 0:22:44,038 --> 0:22:47,125 Mark Haney: your formula and apply it in their market
683 0:22:47,145 --> 0:22:49,781 Mark Haney: Totally, and you grew that way.
684 0:22:50,155 --> 0:22:51,318 Mark Haney: All you need to do is find these
685 0:22:51,379 --> 0:22:51,920 Mark Haney: entrepreneurs.
686 0:22:51,940 --> 0:22:53,505 Colton Paulhus: That's right, and you're building 41 of
687 0:22:53,525 --> 0:22:53,645 Colton Paulhus: them.
688 0:22:54,075 --> 0:22:54,516 Colton Paulhus: So we've grown.
689 0:22:55,018 --> 0:22:57,044 Colton Paulhus: In the last we launched in April of this
690 0:22:57,144 --> 0:22:59,839 Colton Paulhus: year, we've sold 41 territories so far.
691 0:23:00,160 --> 0:23:01,142 Colton Paulhus: Wow, it's insane.
692 0:23:01,303 --> 0:23:02,184 Colton Paulhus: And they're all in California.
693 0:23:02,666 --> 0:23:03,948 Colton Paulhus: No, these are actually nationwide.
694 0:23:04,015 --> 0:23:06,981 Colton Paulhus: So Austin, Texas, Tampa Bay, Florida,
695 0:23:07,141 --> 0:23:09,225 Colton Paulhus: Orlando, Florida, kind of all over.
696 0:23:09,686 --> 0:23:12,719 Mark Haney: Okay, yeah, so in terms of you are
697 0:23:12,739 --> 0:23:14,647 Mark Haney: describing your geographic footprint, was
698 0:23:14,667 --> 0:23:17,217 Mark Haney: that just for let's call that the company
699 0:23:17,378 --> 0:23:17,618 Mark Haney: owned?
700 0:23:18,321 --> 0:23:18,642 Colton Paulhus: builds.
701 0:23:19,075 --> 0:23:20,640 Mark Haney: And then you franchising the rest of the
702 0:23:20,680 --> 0:23:21,001 Mark Haney: country.
703 0:23:21,142 --> 0:23:23,723 Colton Paulhus: Yeah, so corporate some some people call it
704 0:23:23,743 --> 0:23:26,034 Colton Paulhus: company owned outlets, but it's corporate
705 0:23:26,094 --> 0:23:28,101 Colton Paulhus: and then franchising corporate is the one
706 0:23:28,121 --> 0:23:29,535 Colton Paulhus: that's going to do a hundred million, and
707 0:23:29,555 --> 0:23:32,161 Colton Paulhus: then franchising is so early that it's
708 0:23:32,181 --> 0:23:33,765 Colton Paulhus: probably going to do two, two and a half
709 0:23:34,125 --> 0:23:35,977 Colton Paulhus: top line, and then we have obviously our
710 0:23:35,997 --> 0:23:36,940 Colton Paulhus: royalties, our revenue.
711 0:23:38,235 --> 0:23:39,699 Colton Paulhus: So, yeah, that's that's what we're really
712 0:23:39,739 --> 0:23:41,544 Colton Paulhus: excited about is that part can grow.
713 0:23:41,884 --> 0:23:42,947 Colton Paulhus: It's kind of a blue ocean.
714 0:23:43,075 --> 0:23:44,419 Colton Paulhus: I don't know if you've read that book, but
715 0:23:45,041 --> 0:23:46,926 Colton Paulhus: nobody's really franchising ADUs.
716 0:23:47,316 --> 0:23:48,706 Colton Paulhus: It's so early on that we feel like if we
717 0:23:48,726 --> 0:23:49,855 Colton Paulhus: could scale this super fast, we could scale
718 0:23:49,955 --> 0:23:52,798 Colton Paulhus: this super fast, we can be the dominant
719 0:23:52,818 --> 0:23:53,079 Colton Paulhus: player.
720 0:23:53,119 --> 0:23:53,440 Colton Paulhus: Yeah.
721 0:23:54,235 --> 0:23:55,443 Mark Haney: And with your marketing background, I have
722 0:23:55,484 --> 0:23:56,974 Mark Haney: to imagine obviously it's helped you to
723 0:23:57,014 --> 0:23:57,998 Mark Haney: grow your business.
724 0:23:58,038 --> 0:24:00,866 Mark Haney: But to systematize the marketing because so
725 0:24:00,906 --> 0:24:04,257 Mark Haney: many construction people, marketing is not
726 0:24:04,478 --> 0:24:05,582 Mark Haney: necessarily their forte.
727 0:24:05,715 --> 0:24:07,821 Mark Haney: They may be good at swinging a hammer or
728 0:24:08,242 --> 0:24:09,735 Mark Haney: making sure things come together, they're
729 0:24:09,796 --> 0:24:13,238 Mark Haney: organized a lot of times, but marketing
730 0:24:13,699 --> 0:24:15,215 Mark Haney: business is like oh wow, you get this, so
731 0:24:15,235 --> 0:24:15,977 Mark Haney: you've got to built in.
732 0:24:16,338 --> 0:24:18,003 Mark Haney: You guys do lead generation and stuff like
733 0:24:18,023 --> 0:24:19,026 Mark Haney: that for your franchisees.
734 0:24:19,376 --> 0:24:20,862 Colton Paulhus: Yeah, that's our biggest component.
735 0:24:20,995 --> 0:24:23,944 Colton Paulhus: So we brought on a guy by the name of Clay.
736 0:24:24,555 --> 0:24:27,000 Colton Paulhus: He's our VP of marketing and he he was with
737 0:24:27,080 --> 0:24:28,824 Colton Paulhus: us from day one and he's really helped us
738 0:24:28,864 --> 0:24:29,125 Colton Paulhus: scale.
739 0:24:29,165 --> 0:24:31,357 Colton Paulhus: I mean, he's a genius, he's one of those
740 0:24:31,377 --> 0:24:33,158 Colton Paulhus: just marketing gurus, so we work really
741 0:24:33,198 --> 0:24:33,841 Colton Paulhus: well together.
742 0:24:34,716 --> 0:24:36,823 Colton Paulhus: Yeah, we handle all of the marketing for
743 0:24:36,883 --> 0:24:37,625 Colton Paulhus: our franchisees.
744 0:24:37,835 --> 0:24:40,825 Colton Paulhus: So they'll pay us kind of a flat fee for
745 0:24:40,845 --> 0:24:43,854 Colton Paulhus: the marketing costs and then we'll run all
746 0:24:43,874 --> 0:24:46,081 Colton Paulhus: of their Facebook, instagram, google and
747 0:24:46,122 --> 0:24:48,418 Colton Paulhus: paid media and then we'll actually book the
748 0:24:48,558 --> 0:24:50,223 Colton Paulhus: point, the appointments, on their calendar.
749 0:24:50,744 --> 0:24:53,681 Mark Haney: Okay, so the ADU seems, seems like a blue
750 0:24:53,781 --> 0:24:58,173 Mark Haney: ocean, very, you know, very big market that
751 0:24:58,855 --> 0:24:59,880 Mark Haney: a lot of people are going to see the
752 0:24:59,900 --> 0:25:01,067 Mark Haney: affordability piece on.
753 0:25:01,107 --> 0:25:03,779 Mark Haney: Hey, I can put a nice small home in my, in
754 0:25:03,799 --> 0:25:04,502 Mark Haney: my backyard.
755 0:25:06,016 --> 0:25:08,361 Mark Haney: And because they're newer, they're, it's a,
756 0:25:08,461 --> 0:25:10,285 Mark Haney: it's a, it's a newer, it's a newer concept.
757 0:25:12,017 --> 0:25:13,515 Mark Haney: There's almost unlimited growth.
758 0:25:13,775 --> 0:25:15,559 Mark Haney: I mean, there's just a ton of people that
759 0:25:15,579 --> 0:25:17,965 Mark Haney: are going to discover that this opportunity
760 0:25:18,045 --> 0:25:18,466 Mark Haney: exists.
761 0:25:18,546 --> 0:25:20,397 Mark Haney: That's right, and so you could have the
762 0:25:20,417 --> 0:25:22,362 Mark Haney: entire United States as your market.
763 0:25:22,463 --> 0:25:25,700 Mark Haney: That's right, and it take a long time to
764 0:25:26,081 --> 0:25:27,003 Mark Haney: saturate that market.
765 0:25:27,103 --> 0:25:27,705 Colton Paulhus: Oh, big time.
766 0:25:27,745 --> 0:25:30,346 Colton Paulhus: Yeah, because the thing is is new laws are
767 0:25:30,366 --> 0:25:31,857 Colton Paulhus: being passed nationwide, so, like different
768 0:25:31,877 --> 0:25:33,542 Colton Paulhus: cities and counties are starting to allow
769 0:25:33,643 --> 0:25:35,939 Colton Paulhus: ADUs, so we're still at the very, very
770 0:25:35,999 --> 0:25:37,864 Colton Paulhus: beginning of this being even approved
771 0:25:37,924 --> 0:25:38,526 Colton Paulhus: nationwide.
772 0:25:38,975 --> 0:25:40,640 Colton Paulhus: I think eventually it will be, because it's
773 0:25:40,700 --> 0:25:41,863 Colton Paulhus: happening month over month.
774 0:25:43,455 --> 0:25:45,001 Colton Paulhus: So, yeah, I mean, by the time we get to
775 0:25:45,061 --> 0:25:47,691 Colton Paulhus: scale, a competitor might just be so far
776 0:25:47,751 --> 0:25:49,840 Colton Paulhus: behind that we're the dominant player.
777 0:25:50,475 --> 0:25:52,926 Mark Haney: Do you have you looked into using tiny
778 0:25:52,966 --> 0:25:54,875 Mark Haney: homes to help solve the homeless crisis?
779 0:25:55,176 --> 0:25:56,438 Mark Haney: I mean, there's so many people that are
780 0:25:56,458 --> 0:25:59,964 Mark Haney: throwing ideas against the wall, but it's
781 0:26:00,124 --> 0:26:00,244 Mark Haney: it's.
782 0:26:00,585 --> 0:26:01,166 Mark Haney: It's different.
783 0:26:01,206 --> 0:26:02,187 Mark Haney: It's a difficult issue.
784 0:26:02,468 --> 0:26:03,910 Mark Haney: Yep, have people approached you about?
785 0:26:03,950 --> 0:26:04,812 Colton Paulhus: that they have.
786 0:26:04,992 --> 0:26:06,755 Colton Paulhus: It just has never really worked out because,
787 0:26:06,775 --> 0:26:09,023 Colton Paulhus: because Good idea, you know, our units are
788 0:26:09,043 --> 0:26:12,467 Colton Paulhus: anywhere from 90,000 to 300, 400,000, so we
789 0:26:12,607 --> 0:26:13,430 Colton Paulhus: are affordable.
790 0:26:13,500 --> 0:26:15,407 Colton Paulhus: But we're actually building a custom home,
791 0:26:16,080 --> 0:26:18,688 Colton Paulhus: whereas a lot of these homeless homes are
792 0:26:18,729 --> 0:26:21,721 Colton Paulhus: sheds or kind of cheaper options, and we're
793 0:26:21,741 --> 0:26:23,768 Colton Paulhus: not set up for the manufacturing to be that.
794 0:26:24,180 --> 0:26:25,444 Colton Paulhus: That's not what you guys are interested in
795 0:26:25,505 --> 0:26:25,966 Colton Paulhus: at this stage.
796 0:26:26,026 --> 0:26:26,649 Colton Paulhus: Okay, gotcha.
797 0:26:27,900 --> 0:26:28,121 Mark Haney: Okay.
798 0:26:28,181 --> 0:26:32,101 Mark Haney: So your dad you recruited your dad, you
799 0:26:32,181 --> 0:26:35,223 Mark Haney: recruited your brother Tell me about the
800 0:26:35,263 --> 0:26:36,026 Mark Haney: dynamics of work.
801 0:26:36,280 --> 0:26:38,186 Mark Haney: Like I know your dad, he's nobody to mess
802 0:26:38,246 --> 0:26:39,089 Mark Haney: around with.
803 0:26:39,500 --> 0:26:42,228 Mark Haney: Neither are you but like your dad's, like a
804 0:26:42,308 --> 0:26:43,451 Mark Haney: mountain of a man.
805 0:26:45,800 --> 0:26:49,260 Mark Haney: So, and you're the son, you're the kid, but
806 0:26:49,281 --> 0:26:51,008 Mark Haney: you're running the show right?
807 0:26:51,462 --> 0:26:52,245 Mark Haney: Well, we all are.
808 0:26:53,001 --> 0:26:55,509 Colton Paulhus: I'm more the visionary idea guy.
809 0:26:56,060 --> 0:26:58,722 Colton Paulhus: My brother's a true operations guy, so he
810 0:26:58,782 --> 0:27:01,841 Colton Paulhus: manages from the time the job, sells all
811 0:27:01,861 --> 0:27:04,103 Colton Paulhus: the way through the process and oversees
812 0:27:04,123 --> 0:27:05,046 Colton Paulhus: the team to do that.
813 0:27:06,040 --> 0:27:07,647 Colton Paulhus: And then my dad's the construction guru.
814 0:27:07,820 --> 0:27:09,161 Colton Paulhus: So we wouldn't be where we are on the
815 0:27:09,181 --> 0:27:11,068 Colton Paulhus: construction side of things without him.
816 0:27:11,561 --> 0:27:13,848 Colton Paulhus: And I think what we did early on is we set
817 0:27:13,888 --> 0:27:17,703 Colton Paulhus: the tone to say let's stay in our lanes and
818 0:27:17,964 --> 0:27:19,932 Colton Paulhus: let's stay in between the lines, right?
819 0:27:19,960 --> 0:27:21,601 Colton Paulhus: So I think a lot of family businesses, they
820 0:27:21,641 --> 0:27:22,726 Colton Paulhus: take things personal.
821 0:27:23,000 --> 0:27:24,642 Colton Paulhus: We will scream at each other and we'll have
822 0:27:24,682 --> 0:27:25,666 Colton Paulhus: an argue match right.
823 0:27:26,200 --> 0:27:28,448 Colton Paulhus: But it doesn't leave the office right.
824 0:27:28,780 --> 0:27:30,422 Colton Paulhus: So like we're like, hey, we still wanna
825 0:27:30,462 --> 0:27:31,947 Colton Paulhus: watch football on the weekends together and
826 0:27:31,987 --> 0:27:33,642 Colton Paulhus: hang out, we're not gonna take this
827 0:27:34,003 --> 0:27:36,711 Colton Paulhus: emotional moment in the business outside.
828 0:27:37,220 --> 0:27:39,167 Mark Haney: So that's an interesting thing.
829 0:27:39,848 --> 0:27:42,412 Mark Haney: There's a family business association here
830 0:27:43,334 --> 0:27:43,935 Mark Haney: in the Sacramento.
831 0:27:43,960 --> 0:27:44,609 Mark Haney: There's a couple of them.
832 0:27:44,670 --> 0:27:46,062 Mark Haney: I'm a member of them, even though ours
833 0:27:46,122 --> 0:27:48,570 Mark Haney: isn't quite a typical family business.
834 0:27:48,640 --> 0:27:52,051 Mark Haney: But there's a lot of those kind of issues
835 0:27:52,221 --> 0:27:54,600 Mark Haney: that I guess that we all contemplate.
836 0:27:54,861 --> 0:27:56,966 Mark Haney: I grew up in a family business and there
837 0:27:57,006 --> 0:27:58,920 Mark Haney: was obviously there screaming and yelling
838 0:27:59,000 --> 0:28:01,749 Mark Haney: and brothers and sisters and mom and dad.
839 0:28:02,340 --> 0:28:04,187 Mark Haney: My dad was on the volatile side compared to
840 0:28:04,207 --> 0:28:05,744 Mark Haney: the average and my mom wasn't gonna take
841 0:28:05,784 --> 0:28:08,285 Mark Haney: any crap off of anybody so you know, I grew
842 0:28:08,405 --> 0:28:09,369 Mark Haney: up in one of those families.
843 0:28:09,721 --> 0:28:11,408 Mark Haney: Sounds like there's some similarities,
844 0:28:11,520 --> 0:28:14,625 Mark Haney: that's right, but I'm wondering like?
845 0:28:14,786 --> 0:28:15,669 Mark Haney: What is there?
846 0:28:15,880 --> 0:28:18,288 Mark Haney: Is there like a rule that look, anything
847 0:28:18,308 --> 0:28:21,628 Mark Haney: goes, but it's all about the unity of the
848 0:28:21,668 --> 0:28:22,050 Mark Haney: family?
849 0:28:22,782 --> 0:28:25,489 Mark Haney: In terms of like that's?
850 0:28:25,549 --> 0:28:25,870 Colton Paulhus: first.
851 0:28:26,010 --> 0:28:26,331 Colton Paulhus: That's right.
852 0:28:26,984 --> 0:28:27,820 Colton Paulhus: That's by far first right.
853 0:28:27,920 --> 0:28:30,850 Colton Paulhus: It's faith, family and then business right.
854 0:28:31,000 --> 0:28:33,728 Colton Paulhus: And it's like we have huge dreams and we
855 0:28:33,768 --> 0:28:35,071 Colton Paulhus: have big goals but at the end of the day,
856 0:28:35,240 --> 0:28:36,525 Colton Paulhus: if we all hate each other at the end of the
857 0:28:36,626 --> 0:28:38,285 Colton Paulhus: day, why is it even worth it?
858 0:28:38,345 --> 0:28:39,048 Colton Paulhus: It's not worth it.
859 0:28:39,180 --> 0:28:41,501 Colton Paulhus: So we made a decision early on that we were
860 0:28:41,602 --> 0:28:43,763 Colton Paulhus: never gonna take offense and we were never
861 0:28:43,803 --> 0:28:46,204 Colton Paulhus: gonna take what happens inside the business
862 0:28:46,364 --> 0:28:47,147 Colton Paulhus: outside the business.
863 0:28:47,500 --> 0:28:47,761 Mark Haney: Okay.
864 0:28:47,841 --> 0:28:51,662 Mark Haney: So that's interesting because we, you know,
865 0:28:51,682 --> 0:28:55,222 Mark Haney: I remember growing up as a kid when my dad
866 0:28:55,242 --> 0:28:58,067 Mark Haney: had a TV shop and my parents would talk.
867 0:28:58,300 --> 0:28:59,806 Mark Haney: There's two things we talked about at the
868 0:28:59,846 --> 0:29:02,466 Mark Haney: dinner table, and it was the business and
869 0:29:02,547 --> 0:29:03,863 Mark Haney: football right, because we all played
870 0:29:03,903 --> 0:29:06,522 Mark Haney: football and here my sister didn't, but all
871 0:29:06,542 --> 0:29:08,041 Mark Haney: the boys we had played football and that
872 0:29:08,081 --> 0:29:09,447 Mark Haney: was the only thing that got my dad talking
873 0:29:09,480 --> 0:29:12,722 Mark Haney: If we're talking business winning or if
874 0:29:12,762 --> 0:29:14,266 Mark Haney: we're talking about football, which is, and
875 0:29:14,306 --> 0:29:14,627 Mark Haney: winning.
876 0:29:15,921 --> 0:29:18,401 Mark Haney: So I hear other people saying and I don't
877 0:29:18,441 --> 0:29:21,200 Mark Haney: know what your philosophy is on this to
878 0:29:21,241 --> 0:29:23,868 Mark Haney: compartmentalize, like, leave that at the
879 0:29:24,068 --> 0:29:27,105 Mark Haney: office and don't talk about it around
880 0:29:27,285 --> 0:29:31,287 Mark Haney: family dinner on Sundays, or is it okay to
881 0:29:31,348 --> 0:29:33,586 Mark Haney: come because you guys are really into this
882 0:29:33,980 --> 0:29:37,741 Mark Haney: where your wife and maybe even your mom and
883 0:29:38,484 --> 0:29:39,166 Mark Haney: is your brother married?
884 0:29:39,206 --> 0:29:39,909 Mark Haney: He just got married.
885 0:29:40,080 --> 0:29:41,946 Mark Haney: He just married, so sometimes the spouses
886 0:29:42,086 --> 0:29:45,305 Mark Haney: feel left out, as some of those deep
887 0:29:45,385 --> 0:29:47,050 Mark Haney: conversations at the dinner table.
888 0:29:47,380 --> 0:29:49,415 Mark Haney: Do you make a conscious effort to sort of
889 0:29:49,435 --> 0:29:50,180 Mark Haney: compartmentalize it?
890 0:29:50,240 --> 0:29:53,162 Mark Haney: Hey, don't bring, you know, building tiny
891 0:29:53,223 --> 0:29:55,269 Mark Haney: homes to the family dinners.
892 0:29:55,721 --> 0:29:56,866 Mark Haney: We do the best we can.
893 0:29:57,867 --> 0:29:59,259 Colton Paulhus: So like there is a rule, my wife would be
894 0:29:59,279 --> 0:30:00,919 Colton Paulhus: like, hey, okay, not tonight, not tonight.
895 0:30:02,784 --> 0:30:05,489 Colton Paulhus: But it's about 80, 20, so 80% of the time
896 0:30:05,529 --> 0:30:07,654 Colton Paulhus: we try not to, it will come up.
897 0:30:07,760 --> 0:30:09,086 Colton Paulhus: I mean, we're literally building this thing
898 0:30:09,106 --> 0:30:09,507 Colton Paulhus: together.
899 0:30:09,620 --> 0:30:10,928 Mark Haney: There's many things that happen.
900 0:30:10,940 --> 0:30:12,526 Mark Haney: There's so many growing a company,
901 0:30:13,000 --> 0:30:14,426 Mark Haney: especially an early stage company.
902 0:30:14,446 --> 0:30:15,581 Mark Haney: When you're growing like this, I mean
903 0:30:15,601 --> 0:30:17,988 Mark Haney: there's decisions that you just didn't
904 0:30:18,028 --> 0:30:20,025 Mark Haney: expect yesterday that you gotta make today.
905 0:30:20,085 --> 0:30:20,707 Mark Haney: That's right, yeah.
906 0:30:21,000 --> 0:30:22,547 Colton Paulhus: Or even at night sometimes we're at dinner
907 0:30:22,600 --> 0:30:24,086 Colton Paulhus: and it's like I just got this email.
908 0:30:24,126 --> 0:30:24,588 Colton Paulhus: What do I do?
909 0:30:26,065 --> 0:30:27,570 Colton Paulhus: So, yeah, but we've done a good job.
910 0:30:27,660 --> 0:30:29,407 Colton Paulhus: We try to keep it as separate as we can,
911 0:30:29,600 --> 0:30:30,865 Colton Paulhus: but you can't fully do it.
912 0:30:30,925 --> 0:30:31,829 Mark Haney: What do you guys fight about?
913 0:30:31,960 --> 0:30:33,627 Mark Haney: Just curious, and how does that go down?
914 0:30:33,900 --> 0:30:34,021 Mark Haney: Does?
915 0:30:34,061 --> 0:30:35,967 Mark Haney: Your dad play position power because he's a
916 0:30:36,027 --> 0:30:36,328 Mark Haney: father?
917 0:30:36,861 --> 0:30:39,402 Colton Paulhus: No, he actually doesn't surprisingly, but
918 0:30:40,424 --> 0:30:43,051 Colton Paulhus: just about ideas and speed of growth.
919 0:30:43,280 --> 0:30:45,267 Colton Paulhus: I'm kind of like a push-to-envelope guy.
920 0:30:46,362 --> 0:30:48,003 Colton Paulhus: So you know, and they're like, hey, let's
921 0:30:48,143 --> 0:30:49,829 Colton Paulhus: take this step first and let's do this.
922 0:30:49,900 --> 0:30:51,888 Colton Paulhus: And I'm like, hey, let's push the envelope,
923 0:30:51,940 --> 0:30:53,146 Colton Paulhus: we can build the biggest company.
924 0:30:53,500 --> 0:30:54,846 Colton Paulhus: So maybe like speed of growth.
925 0:30:54,860 --> 0:30:56,006 Mark Haney: So you're what gives everybody confidence.
926 0:30:56,040 --> 0:30:59,129 Mark Haney: You're the one that says, yes, we can,
927 0:30:59,289 --> 0:30:59,610 Mark Haney: that's right.
928 0:31:00,080 --> 0:31:02,218 Mark Haney: Who's the one that says, well, wait a
929 0:31:02,258 --> 0:31:02,440 Mark Haney: minute.
930 0:31:02,521 --> 0:31:04,201 Mark Haney: You know, hold your horses, gentlemen, my
931 0:31:04,241 --> 0:31:05,005 Mark Haney: dad and brother.
932 0:31:05,401 --> 0:31:07,261 Colton Paulhus: Oh, they're both a little bit like that, so
933 0:31:07,281 --> 0:31:08,124 Colton Paulhus: sometimes I'll get out-voted, right?
934 0:31:09,300 --> 0:31:10,585 Colton Paulhus: You need that balance, right?
935 0:31:10,826 --> 0:31:11,649 Colton Paulhus: Yeah, that's cool.
936 0:31:11,700 --> 0:31:12,564 Mark Haney: So it works out really well.
937 0:31:12,980 --> 0:31:15,327 Mark Haney: Okay, so in terms of like, did you guys
938 0:31:15,367 --> 0:31:15,889 Mark Haney: decide?
939 0:31:17,041 --> 0:31:19,661 Mark Haney: So you guys are obviously the next gen, but
940 0:31:19,701 --> 0:31:21,667 Mark Haney: you guys are you equal partners?
941 0:31:21,727 --> 0:31:22,490 Colton Paulhus: How did that go down?
942 0:31:22,620 --> 0:31:22,841 Colton Paulhus: We're all.
943 0:31:22,881 --> 0:31:23,765 Colton Paulhus: A third, a third, a third.
944 0:31:24,005 --> 0:31:24,507 Mark Haney: Oh nice.
945 0:31:24,700 --> 0:31:26,606 Colton Paulhus: We decided you know he had his contracting
946 0:31:26,646 --> 0:31:29,945 Colton Paulhus: business before and we just decided when we
947 0:31:29,965 --> 0:31:31,522 Colton Paulhus: started this business, let's go all in
948 0:31:31,562 --> 0:31:32,505 Colton Paulhus: together, yeah.
949 0:31:33,007 --> 0:31:33,408 Mark Haney: That's this.
950 0:31:34,020 --> 0:31:36,306 Mark Haney: So what's been the, I guess, the biggest
951 0:31:37,430 --> 0:31:40,000 Mark Haney: surprise from a challenge standpoint, like
952 0:31:40,020 --> 0:31:42,168 Mark Haney: from a difficulty standpoint, in building
953 0:31:42,188 --> 0:31:42,801 Mark Haney: this Cause?
954 0:31:42,822 --> 0:31:44,688 Mark Haney: Right now it sounds like, wow, everything's
955 0:31:44,708 --> 0:31:46,304 Mark Haney: going great, we made the decision to pivot
956 0:31:46,405 --> 0:31:48,444 Mark Haney: or, you know, start franchising, and we're
957 0:31:49,206 --> 0:31:50,189 Mark Haney: tracking for a hundred million.
958 0:31:50,680 --> 0:31:52,165 Mark Haney: I mean, everybody out there listening is
959 0:31:52,225 --> 0:31:54,845 Mark Haney: going dang dude that's fast.
960 0:31:56,504 --> 0:31:58,401 Mark Haney: What surprised you in terms of like having
961 0:31:58,562 --> 0:31:59,987 Mark Haney: a overcoming obstacle.
962 0:32:00,920 --> 0:32:03,990 Colton Paulhus: I would say everybody's dealing with this.
963 0:32:04,080 --> 0:32:06,206 Colton Paulhus: But finding good subcontractors and
964 0:32:06,266 --> 0:32:09,062 Colton Paulhus: contractors has been tough, so fine.
965 0:32:09,282 --> 0:32:10,707 Colton Paulhus: Recruiting so if you're out there, no
966 0:32:11,720 --> 0:32:13,708 Colton Paulhus: Recruiting enough subs has been tough.
967 0:32:14,181 --> 0:32:15,045 Mark Haney: What's sub is right now.
968 0:32:15,160 --> 0:32:18,650 Mark Haney: So I own a concrete company and I got a
969 0:32:18,710 --> 0:32:20,102 Mark Haney: security company that's kind of in
970 0:32:20,142 --> 0:32:22,189 Mark Haney: construction at some level at casinos.
971 0:32:23,861 --> 0:32:25,687 Mark Haney: But we have you know, we deal with subs a
972 0:32:25,727 --> 0:32:26,469 Mark Haney: lot as well.
973 0:32:26,940 --> 0:32:28,947 Mark Haney: What subs are the toughest to come by right
974 0:32:28,987 --> 0:32:29,088 Mark Haney: now?
975 0:32:29,740 --> 0:32:34,121 Colton Paulhus: I would say electricians and plumbers and
976 0:32:34,141 --> 0:32:36,142 Colton Paulhus: then finish carpenters are kind of our
977 0:32:36,202 --> 0:32:38,980 Colton Paulhus: biggest three bottlenecks right now, a
978 0:32:39,060 --> 0:32:40,701 Colton Paulhus: little bit on the concrete side and a
979 0:32:40,741 --> 0:32:42,922 Colton Paulhus: little bit on the framing side, not quite
980 0:32:42,962 --> 0:32:45,710 Colton Paulhus: as much as electrical plumbing and finish.
981 0:32:46,100 --> 0:32:48,404 Mark Haney: And it's because it's so big your dad and
982 0:32:48,424 --> 0:32:49,849 Mark Haney: brother aren't out there swinging a hammer
983 0:32:49,940 --> 0:32:50,729 Mark Haney: or doing anything like that.
984 0:32:51,800 --> 0:32:52,865 Colton Paulhus: Yeah, they're not ever out in the field.
985 0:32:52,940 --> 0:32:55,307 Colton Paulhus: We have, I think, nine or 10 project
986 0:32:55,347 --> 0:32:58,045 Colton Paulhus: managers, a construction operations
987 0:32:58,106 --> 0:33:00,707 Colton Paulhus: director, so it's at the scale where we're
988 0:33:00,847 --> 0:33:02,925 Colton Paulhus: truly working on the business as much as we
989 0:33:02,965 --> 0:33:03,266 Colton Paulhus: can.
990 0:33:03,487 --> 0:33:05,403 Colton Paulhus: You know so, but also have to field
991 0:33:05,443 --> 0:33:07,709 Colton Paulhus: customer calls and things like that.
992 0:33:07,990 --> 0:33:08,611 Colton Paulhus: That's great.
993 0:33:08,840 --> 0:33:12,042 Mark Haney: Well, okay, so maybe you can maybe give me
994 0:33:12,082 --> 0:33:13,848 Mark Haney: a little bit of what's the vision.
995 0:33:13,980 --> 0:33:15,103 Mark Haney: So you're at 100 million.
996 0:33:15,524 --> 0:33:18,131 Mark Haney: Your vision gets a lot bigger.
997 0:33:18,880 --> 0:33:21,621 Mark Haney: A lot of people they might set out, hey, we
998 0:33:21,641 --> 0:33:24,383 Mark Haney: wanna build a $100 million company and that
999 0:33:24,443 --> 0:33:25,648 Mark Haney: seems like it's so far away.
1000 0:33:25,780 --> 0:33:26,966 Mark Haney: Well, you guys are here four years later
1001 0:33:27,060 --> 0:33:28,426 Mark Haney: and you're on track to do that.
1002 0:33:29,581 --> 0:33:31,526 Mark Haney: Have you had, to like, expand the size of
1003 0:33:31,566 --> 0:33:32,889 Mark Haney: your dream a little bit, that's for sure?
1004 0:33:33,090 --> 0:33:33,711 Mark Haney: Which it looked like?
1005 0:33:34,360 --> 0:33:35,987 Colton Paulhus: I think it expands at each level.
1006 0:33:36,140 --> 0:33:37,406 Colton Paulhus: So at first it was like let's get to 10,
1007 0:33:37,820 --> 0:33:39,736 Colton Paulhus: let's get to 50, let's get to 100, right.
1008 0:33:40,300 --> 0:33:41,184 Colton Paulhus: So now we're here.
1009 0:33:42,720 --> 0:33:44,887 Colton Paulhus: We believe we can build a multi-billion
1010 0:33:44,927 --> 0:33:47,405 Colton Paulhus: dollar portfolio of companies over the next
1011 0:33:47,485 --> 0:33:48,268 Colton Paulhus: five to 10 years.
1012 0:33:48,761 --> 0:33:50,828 Colton Paulhus: And so what I mean by that is Anchored
1013 0:33:50,848 --> 0:33:52,824 Colton Paulhus: Tinyomes is going to be the bread and
1014 0:33:52,844 --> 0:33:55,282 Colton Paulhus: butter forever, right, and we're gonna
1015 0:33:55,302 --> 0:33:56,606 Colton Paulhus: scale this thing through franchising.
1016 0:33:57,260 --> 0:33:59,487 Colton Paulhus: But we just launched what's called Anchored
1017 0:33:59,547 --> 0:34:01,465 Colton Paulhus: Brands and then Hello Builder.
1018 0:34:01,580 --> 0:34:04,229 Colton Paulhus: So two of these entities are basically
1019 0:34:04,289 --> 0:34:06,465 Colton Paulhus: centered around helping service brands
1020 0:34:06,946 --> 0:34:08,330 Colton Paulhus: scale through franchising.
1021 0:34:08,840 --> 0:34:10,546 Colton Paulhus: So Anchored Brands is actually gonna be a
1022 0:34:10,646 --> 0:34:14,048 Colton Paulhus: portfolio of franchise brands in the HVAC,
1023 0:34:14,842 --> 0:34:16,781 Colton Paulhus: in all the service brands, and we're gonna
1024 0:34:16,822 --> 0:34:18,582 Colton Paulhus: kind of build this infrastructure to help
1025 0:34:18,622 --> 0:34:19,546 Colton Paulhus: those companies scale.
1026 0:34:19,600 --> 0:34:21,568 Mark Haney: Okay, so that's really interesting.
1027 0:34:21,640 --> 0:34:26,673 Mark Haney: So the Tinyomes piece is one leg of the
1028 0:34:26,733 --> 0:34:30,305 Mark Haney: stool, if you will, and I discussed pools
1029 0:34:30,565 --> 0:34:32,210 Mark Haney: about Paul Porter and Premier Pools.
1030 0:34:32,700 --> 0:34:36,053 Mark Haney: What other of these services are most ripe
1031 0:34:36,315 --> 0:34:39,847 Mark Haney: for franchising and maybe disrupting the
1032 0:34:39,887 --> 0:34:40,589 Mark Haney: traditional model?
1033 0:34:41,723 --> 0:34:42,286 Colton Paulhus: So a lot of it.
1034 0:34:42,681 --> 0:34:44,167 Colton Paulhus: So roofing has been huge.
1035 0:34:44,280 --> 0:34:45,885 Colton Paulhus: Roofing has grown tremendously over the
1036 0:34:45,926 --> 0:34:48,084 Colton Paulhus: last two years in the franchise space.
1037 0:34:48,960 --> 0:34:51,941 Colton Paulhus: Landscaping is another big one, like
1038 0:34:52,001 --> 0:34:54,608 Colton Paulhus: specialty electrical contractors is a big
1039 0:34:54,829 --> 0:34:57,582 Colton Paulhus: one, so high-end finishes that may be a way
1040 0:34:57,622 --> 0:34:59,101 Colton Paulhus: for you guys to get your subs to just
1041 0:34:59,181 --> 0:35:01,267 Colton Paulhus: create a leg of the stool that says
1042 0:35:01,368 --> 0:35:03,183 Colton Paulhus: franchising, for I don't know if Finnish
1043 0:35:03,203 --> 0:35:05,206 Colton Paulhus: Carpentry is gonna be a franchise but yeah,
1044 0:35:05,840 --> 0:35:06,767 Colton Paulhus: roofing, I could see that.
1045 0:35:06,847 --> 0:35:07,532 Colton Paulhus: Yeah, oh yeah.
1046 0:35:08,363 --> 0:35:08,926 Mark Haney: Okay, interesting.
1047 0:35:09,020 --> 0:35:10,787 Mark Haney: Yeah, I would think that it has to do with
1048 0:35:10,807 --> 0:35:12,424 Mark Haney: the things that people are more likely to
1049 0:35:12,464 --> 0:35:14,229 Mark Haney: wanna advertise and things like that.
1050 0:35:14,922 --> 0:35:15,986 Mark Haney: Yeah, landscaping.
1051 0:35:16,540 --> 0:35:19,329 Mark Haney: Yeah, so landscaping, roofing, plumbing,
1052 0:35:19,440 --> 0:35:21,888 Mark Haney: electrical HVAC, really any service brands
1053 0:35:22,280 --> 0:35:23,566 Mark Haney: and when you say service, are you talking
1054 0:35:23,586 --> 0:35:25,145 Mark Haney: about the recurring revenue type service
1055 0:35:25,166 --> 0:35:27,687 Mark Haney: brands or are you saying, more like the
1056 0:35:27,808 --> 0:35:29,805 Mark Haney: companies, that you're building something
1057 0:35:29,846 --> 0:35:32,165 Mark Haney: from start to finish and the transaction
1058 0:35:32,366 --> 0:35:32,527 Mark Haney: ends?
1059 0:35:32,940 --> 0:35:34,701 Colton Paulhus: More like the transaction would end Okay,
1060 0:35:34,721 --> 0:35:36,683 Colton Paulhus: more like the construction company, yeah,
1061 0:35:36,743 --> 0:35:38,761 Colton Paulhus: yeah, but HVAC and plumbing you can have
1062 0:35:38,801 --> 0:35:41,189 Colton Paulhus: kind of that monthly or annual service fee.
1063 0:35:41,720 --> 0:35:43,006 Colton Paulhus: So there will be that component.
1064 0:35:43,140 --> 0:35:44,505 Colton Paulhus: But we're just gonna help these companies
1065 0:35:44,605 --> 0:35:46,805 Colton Paulhus: franchise and then take a royalty at
1066 0:35:46,845 --> 0:35:48,223 Colton Paulhus: corporate Wow yeah.
1067 0:35:48,283 --> 0:35:51,547 Mark Haney: Wow, okay, what did I not ask you?
1068 0:35:52,002 --> 0:35:52,946 Mark Haney: What else do we need to cover?
1069 0:35:53,040 --> 0:35:54,706 Mark Haney: I feel like I was zipping through on my
1070 0:35:54,787 --> 0:35:57,186 Mark Haney: agenda, but I wanna make sure we stay on
1071 0:35:57,226 --> 0:35:58,009 Mark Haney: your agenda too.
1072 0:35:58,521 --> 0:36:00,729 Colton Paulhus: I just think I'm excited to be.
1073 0:36:01,100 --> 0:36:02,966 Colton Paulhus: I mean, I know you believe in this big time
1074 0:36:03,920 --> 0:36:06,188 Colton Paulhus: the Sacramento region and really growing a
1075 0:36:06,228 --> 0:36:07,784 Colton Paulhus: big entity out of Sacramento.
1076 0:36:08,380 --> 0:36:11,060 Colton Paulhus: I talk with Greg Connolly a lot and you
1077 0:36:11,080 --> 0:36:12,666 Colton Paulhus: know we wanna build a multi-billion dollar
1078 0:36:12,707 --> 0:36:14,707 Colton Paulhus: company to help put Sacramento on the map.
1079 0:36:14,900 --> 0:36:17,328 Colton Paulhus: Like I just really believe in helping this
1080 0:36:17,388 --> 0:36:20,522 Colton Paulhus: town become an entrepreneur's town, less of
1081 0:36:20,843 --> 0:36:22,942 Colton Paulhus: a government town right and I think there
1082 0:36:22,962 --> 0:36:25,301 Colton Paulhus: needs to be more people that see you know
1083 0:36:25,361 --> 0:36:27,168 Colton Paulhus: my success and we're at the ground floor
1084 0:36:27,601 --> 0:36:29,187 Colton Paulhus: and we've made mistakes and we're not
1085 0:36:29,207 --> 0:36:31,245 Colton Paulhus: perfect, but I do think, people like you
1086 0:36:31,285 --> 0:36:33,542 Colton Paulhus: sharing your story and that's why I'm
1087 0:36:33,562 --> 0:36:35,982 Colton Paulhus: trying to get kind of our company out there.
1088 0:36:36,022 --> 0:36:37,768 Colton Paulhus: More is, I believe, people need to hear the
1089 0:36:37,808 --> 0:36:39,665 Colton Paulhus: story of successful entrepreneurs in the
1090 0:36:39,705 --> 0:36:40,567 Colton Paulhus: Sacramento region.
1091 0:36:41,069 --> 0:36:42,502 Mark Haney: That's I love, that I mean that's the
1092 0:36:42,622 --> 0:36:45,721 Mark Haney: reason why I started the show in the first
1093 0:36:45,761 --> 0:36:51,622 Mark Haney: place is I felt like I, you know I didn't
1094 0:36:51,703 --> 0:36:52,185 Mark Haney: have that.
1095 0:36:52,980 --> 0:36:55,027 Mark Haney: Let's call it the older brother, or, you
1096 0:36:55,047 --> 0:36:55,148 Mark Haney: know.
1097 0:36:55,620 --> 0:36:57,127 Mark Haney: I mentioned, you know, my mom and dad.
1098 0:36:57,240 --> 0:36:58,666 Mark Haney: They got sick a long time ago.
1099 0:36:58,920 --> 0:37:02,089 Mark Haney: I didn't really have anybody that had had
1100 0:37:02,330 --> 0:37:02,931 Mark Haney: success.
1101 0:37:03,040 --> 0:37:05,868 Mark Haney: That was close in my life that I could sort
1102 0:37:05,948 --> 0:37:09,088 Mark Haney: of think about emulating or aspire to be
1103 0:37:09,148 --> 0:37:11,902 Mark Haney: like I didn't know those people and I think
1104 0:37:11,942 --> 0:37:14,049 Mark Haney: most small business people don't know those
1105 0:37:14,069 --> 0:37:14,250 Mark Haney: people.
1106 0:37:14,360 --> 0:37:16,789 Mark Haney: People don't really have good access to you
1107 0:37:16,829 --> 0:37:19,027 Mark Haney: know, like the great connolly's or you or
1108 0:37:19,067 --> 0:37:19,909 Mark Haney: Dale Carlson.
1109 0:37:20,120 --> 0:37:20,301 Colton Paulhus: Sleep.
1110 0:37:20,321 --> 0:37:20,602 Mark Haney: Train.
1111 0:37:20,642 --> 0:37:23,384 Mark Haney: It's like how do you, how do you find out
1112 0:37:23,465 --> 0:37:23,967 Mark Haney: how they did it?
1113 0:37:25,520 --> 0:37:27,301 Mark Haney: Okay, I wanted to start a show so that
1114 0:37:27,823 --> 0:37:29,869 Mark Haney: other people can start to feel that I love
1115 0:37:29,889 --> 0:37:33,550 Mark Haney: it, yeah, and that you know I now it's fun.
1116 0:37:33,680 --> 0:37:35,527 Mark Haney: Now it's like I'm sort of addicted to it
1117 0:37:35,567 --> 0:37:38,221 Mark Haney: too, Because you know, I keep learning and
1118 0:37:38,241 --> 0:37:41,570 Mark Haney: being sort of surprised by the innovative
1119 0:37:41,630 --> 0:37:44,547 Mark Haney: mindsets of young people, or even people
1120 0:37:44,587 --> 0:37:46,944 Mark Haney: that are, you know, older, my age type,
1121 0:37:46,984 --> 0:37:48,369 Mark Haney: people that drink these.
1122 0:37:48,440 --> 0:37:49,961 Mark Haney: There's still a lot of innovation, a lot of
1123 0:37:50,001 --> 0:37:50,705 Mark Haney: drive out there.
1124 0:37:51,120 --> 0:37:53,440 Mark Haney: People just need to feel like, well, if
1125 0:37:53,561 --> 0:37:55,443 Mark Haney: Colton Paulus and Mark, hey, if those
1126 0:37:55,463 --> 0:37:56,908 Mark Haney: schmucks can do it throw them in.
1127 0:37:57,220 --> 0:37:58,865 Colton Paulhus: That's right, I can do it too.
1128 0:37:58,925 --> 0:38:00,009 Colton Paulhus: Yeah, yeah, that's what.
1129 0:38:00,640 --> 0:38:02,127 Colton Paulhus: There's way smarter people, right?
1130 0:38:03,023 --> 0:38:05,324 Colton Paulhus: It's like I just stayed with it, yeah, he
1131 0:38:05,364 --> 0:38:05,947 Colton Paulhus: didn't quit.
1132 0:38:06,060 --> 0:38:06,462 Mark Haney: Look at him.
1133 0:38:06,482 --> 0:38:07,881 Mark Haney: A lot of people would have quit after.
1134 0:38:08,383 --> 0:38:09,560 Mark Haney: You know a couple of those setbacks that
1135 0:38:09,580 --> 0:38:10,143 Mark Haney: you mentioned.
1136 0:38:10,203 --> 0:38:14,007 Mark Haney: It's like oh geez, I'm just better go get a
1137 0:38:14,027 --> 0:38:15,681 Mark Haney: job with a state or something like that and
1138 0:38:15,701 --> 0:38:16,886 Mark Haney: he's like no, I'm staying.
1139 0:38:17,000 --> 0:38:18,004 Mark Haney: I'm gonna still dream big baby.
1140 0:38:18,044 --> 0:38:18,486 Colton Paulhus: That's right.
1141 0:38:18,586 --> 0:38:18,947 Colton Paulhus: That's right.
1142 0:38:19,440 --> 0:38:20,223 Colton Paulhus: I knew right.
1143 0:38:20,243 --> 0:38:22,180 Colton Paulhus: Just with the way my mind works and
1144 0:38:22,341 --> 0:38:24,280 Colton Paulhus: operates, I knew I always was gonna be an
1145 0:38:24,300 --> 0:38:27,069 Colton Paulhus: entrepreneur when I started in this journey,
1146 0:38:27,720 --> 0:38:29,367 Colton Paulhus: and so I just knew I was never gonna quit.
1147 0:38:29,480 --> 0:38:31,007 Colton Paulhus: And eventually, if you don't quit,
1148 0:38:31,240 --> 0:38:32,881 Colton Paulhus: something's gonna click Well.
1149 0:38:32,982 --> 0:38:36,065 Mark Haney: I appreciate that and I think you've
1150 0:38:36,125 --> 0:38:36,726 Mark Haney: inspired.
1151 0:38:37,549 --> 0:38:39,841 Mark Haney: Whatever our audience is, you know and I
1152 0:38:39,902 --> 0:38:43,003 Mark Haney: think that's a good takeaway is don't quit
1153 0:38:43,023 --> 0:38:44,589 Mark Haney: and you'll eventually figure it out.
1154 0:38:44,780 --> 0:38:47,288 Mark Haney: And you may have to pivot four, five, 10.
1155 0:38:48,100 --> 0:38:49,445 Mark Haney: The Lord knows, I pivoted a lot in
1156 0:38:49,485 --> 0:38:51,766 Mark Haney: nighttime and you're gonna be pivoting
1157 0:38:51,826 --> 0:38:53,731 Mark Haney: folks, but you don't quit.
1158 0:38:53,751 --> 0:38:54,820 Mark Haney: That's right you can figure it out.
1159 0:38:54,880 --> 0:38:55,483 Mark Haney: You can figure it out.
1160 0:38:55,960 --> 0:38:57,084 Mark Haney: Well, thanks for coming on the show today.
1161 0:38:57,124 --> 0:38:58,007 Colton Paulhus: I appreciate it, Mark.
1162 0:38:58,027 --> 0:38:59,341 Mark Haney: Thank you for having me Well.
1163 0:38:59,442 --> 0:39:00,785 Mark Haney: You're an inspiration, thank you, thanks,
1164 0:39:00,826 --> 0:39:01,006 Mark Haney: man.
1165 0:39:01,106 --> 0:39:01,508 Colton Paulhus: Means a lot.
1166 0:39:02,821 --> 0:39:03,697 Mark Haney: And to all you out there fighting the good
1167 0:39:03,718 --> 0:39:04,884 Mark Haney: fight for entrepreneurship and for the
1168 0:39:04,924 --> 0:39:06,682 Mark Haney: backyard advantage and, of course, all of
1169 0:39:06,723 --> 0:39:08,200 Mark Haney: you out there fighting the good fight for
1170 0:39:08,240 --> 0:39:10,728 Mark Haney: our freedom, our security and our way of
1171 0:39:10,788 --> 0:39:12,785 Mark Haney: life here at the Heaney Biz, at Mark
1172 0:39:12,825 --> 0:39:14,203 Mark Haney: Heaney's show and the Growth Factory.
1173 0:39:14,223 --> 0:39:15,762 Mark Haney: We're never above you, we're never below
1174 0:39:15,802 --> 0:39:17,107 Mark Haney: you, always by your side.
1175 0:39:18,920 --> 0:39:19,965 Mark Haney: This segment includes the personal
1176 0:39:19,985 --> 0:39:21,224 Mark Haney: knowledge, experiences and opinions about
1177 0:39:21,304 --> 0:39:22,925 Mark Haney: angel investing by seasoned angel investors.
1178 0:39:23,120 --> 0:39:24,646 Mark Haney: This content is for informational purposes
1179 0:39:24,727 --> 0:39:26,365 Mark Haney: only and should not be considered as legal,
1180 0:39:26,425 --> 0:39:27,789 Mark Haney: tax, investment or financial advice.
1181 0:39:28,040 --> 0:39:29,105 Mark Haney: Nothing in this segment constitutes a
1182 0:39:29,145 --> 0:39:31,003 Mark Haney: solicitation, recommendation or endorsement.
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