Building a $700M HVAC and plumbing empire isn’t just about working hard—it’s about working smart. Leland Smith, founder of Service Champions, has built a thriving business by focusing on profitability, culture, and strategic relationships. Here’s how his approach can revolutionize your service business.
Profit Beats Revenue Every Time
“It ain’t what you get; it’s what you keep,” says Leland Smith, highlighting the importance of profitability over revenue. Many businesses chase top-line numbers, but Service Champions stands out with a 17–18% profit margin across its 20 locations. That’s the kind of efficiency and discipline that turns a good business into a great one.
- Leland Smith’s approach to profitability isn’t just about cutting costs—it’s about delivering value.
- By refusing to cut corners and focusing on quality service, his company has built a reputation.
- This keeps customers returning and ensures sustained growth.
Treat Employees and Customers Like Family
“How would you want your mother to be treated?” This simple yet profound question from Leland Smith underpins his entire business philosophy. At Service Champions, employees are encouraged to treat customers like family, creating trust and loyalty that drive long-term success.
Smith believes that the way you treat your employees directly impacts the way they treat your customers. By fostering a supportive and empathetic company culture, he ensures that both staff and clients feel valued. This isn’t just a moral stance—it’s a strategic one that pays dividends.
Why Peer Groups Are Your Secret Weapon for Scaling
“The most important thing I did was surround myself with people smarter than I am,” Leland Smith emphasizes. He attributes much of his success to joining mastermind groups with business owners who were further along in their journeys.
- By learning from peers operating at $10M, $20M, or even $50M levels, Smith avoided common mistakes and accelerated Service Champions’ growth.
- His advice to entrepreneurs is clear: never stop learning.
- Never underestimate the power of a strong network.
Build Year-Round Revenue with Club Memberships
“I’d rather sell a $19 club membership than a $40,000 job,” says Leland Smith, highlighting the power of predictable revenue. With 25,000 members generating 50,000 tune-ups annually, Service Champions has built a foundation of stability that many businesses envy.
Smith’s subscription model ensures steady income regardless of the season, reduces customer acquisition costs, and strengthens loyalty. This long-term approach is a game-changer for businesses looking to grow sustainably.
Training Is Non-Negotiable
“If you’re not training every day, you’re falling behind,” says Leland Smith. At Service Champions, training isn’t just for new hires—it’s a daily practice for every technician, manager, and staff member.
Smith understands that a well-trained team is a company’s most valuable asset. By investing in consistent, hands-on training, he ensures that his team delivers top-notch service every time, building trust and reputation in the process.
Offer More on Every Job
“Customers don’t know what to ask for—you have to show them,” says Leland Smith. This mindset has helped Service Champions increase ticket sizes and customer satisfaction by training technicians to identify and offer additional services.
Smith’s team doesn’t just fix problems; they look for opportunities to improve the customer’s home. Whether it’s water heaters, ductwork, or insulation, every job is an opportunity to deliver more value and grow revenue.
Efficiency Wins: Find and Fix Inefficiencies
“I’m always looking for what’s not working,” says Leland Smith, who has a knack for spotting inefficiencies that others might overlook. From eliminating unnecessary contracts to optimizing technician workflows, his attention to detail has saved Service Champions millions.
Smith’s philosophy is simple: every dollar saved through operational efficiency goes straight to the bottom line. By encouraging managers and employees to identify waste, he creates a culture of continuous improvement.
Don’t Play the Recession Game
“We’re not participating in a bad economy,” says Leland Smith, recalling his strategy during the 2008 downturn. While competitors cut back, Service Champions doubled down on marketing and captured market share.
Smith’s proactive approach to economic challenges is a lesson in resilience. By focusing on visibility, offering financing options, and maintaining a positive mindset, he proved that tough times can be an opportunity for growth.
Managing High Performers with Attitudes
“High performers often have high egos—you just have to manage them,” says Leland Smith. He acknowledges that dealing with top performers who have attitude issues can be challenging but insists it’s worth the effort.
- Smith’s strategy involves setting boundaries, calling out bad behavior, and celebrating achievements.
- While he doesn’t shy away from tough conversations, he also knows when to let someone go if their attitude starts affecting the team.
Cold Trends: Stop Cutting Corners
“You can’t charge premium prices if you’re not delivering premium service,” says Leland Smith. Cutting corners may save time in the short term, but it’s a surefire way to lose customer trust and long-term business.
Smith insists on excellence in every job, from attic inspections to detailed reporting. By training his team to go above and beyond, he ensures that Service Champions stands out as a leader in quality and reliability.
Advice for Entrepreneurs: Learn and Lead
“The most important lesson I learned is that I wasn’t the smartest—and that’s okay,” says Leland Smith. His humility and willingness to learn have been key to his success, as has his commitment to leading by example.
Whether it’s attending daily training sessions or fostering a family-first culture, Smith shows that great leadership is about showing, not just telling. His advice to entrepreneurs is to seek mentors, invest in their teams, and never stop growing.
Leland Smith’s journey is a testament to the power of hard work, smart strategy, and unshakable values. By focusing on profitability, culture, and learning from others, he’s built a $700M business that’s as impactful as it is inspiring.
