This $15K/Person Grant Feels Like a Cheat Code⏐ Ep. #208

You market it to the general public for $3,000. It's still big margins. You sell one a week, that replaces somebody's income like that. The grant will pay as high as $15,000. He does 68 jobs a day. So one then show that it's doing 300 a year. I'm like, why not just do this online? It's gonna be more profitable based on what I researched. I spent $0 a marketing. We scheduled it to about 2.4 million. Our first year on just grants. Oh my gosh. One of my clients has an IT school. He's giving about 2.5, 2.8 on the school side, and another 1.5 on the placement side. Million a year? Yes. About $5 million combined is so many grants out there that people don't realize, or business grants, and people talk about it, and they can complicate it, but man, it's as simple as this. (air whooshes) I've got a friend named Hector. He lives three minutes down the road from me. He's my Chipotle buddy. And he's in a really interesting line of work. He helps people start trade schools. And he started a trade school before. And the magic and genius about trade schools is that the state covers all of it. No one pays for it except the government. And his niche has been in learning how to navigate these regulatory bodies that will pay entrepreneurs five to $15,000 per trade school course that you can buy and white label from other course companies for hundreds of dollars. Insane offer. It's a very high-ticket product that the buyer doesn't have to pay for, the state pays for it. And so this is a great episode if you're thinking of starting a business because he talks about how to start your own trade school and navigate this regulatory aspect of it and how to find customers what types of organizations to partner with for referral partners. And it's also a great episode if you already own a business that is in high demand for good employees. Because if you do own a business in a handful of different niches, you can get paid five to $15,000 to train your own employees. And then you can get paid five to $15,000 to train other people that will be employed for your competitors. So whether you're a business owner or an aspiring business owner, you're gonna love this. It's very interesting. You've probably never heard about this niche. It's kind of a gold mine. Please share with a friend. - I bought an insurance franchise that failed miserably. But I got a phone call that changed my life and it was an ex-colleague of mine saying, hey, I need truck driver insurance and school insurance. And I was like, what dude? I can't help you with either of those. I only sell home and auto. And I was like, what, you know, back up a little bit. What do you mean school insurance and truck driver insurance? And lobehole, he owned a truck driving school like a CDL school, which we see everywhere. And that's when I was like, huh, interesting. But what caught towards the end of the phone call, I was like, dude, I gotta go see you guys. We weren't entirely shut down yet. But when I saw him in a parking lot of a church with 18 other people there, two trucks, I was just memorized by the whole concept of trade schools. I didn't know it was a business. Right before I left, he kind of whispered to me, he was, can you believe the state of Texas is paying me money for each of these guys here? And I was like, what do you mean? There's two, there's a screen it called WIOA. And if you're a laid off worker, you know, impacted by a justice system on food stamps, there's all this money that people could go get and they'll teach them when you skill set. And I was just like, talk about not sleeping. I literally tanked my insurance franchise because of this one sentence. I didn't know that part of your story. And I love hearing stories about like that first conversation that just got us thinking about something differently. And then you had that conversation on the phone and he was just calling to ask you about insurance and you dug a little deeper, which shows how being curious can be profitable. Then you went on site and you're like, you're picturing some school. You're probably picturing something more formalized, right? But you just show up to a parking lot with an 18 wheeler and dudes paying thousands of dollars. And then you find out that these dudes aren't paying a dime. The state is covering all of it, right? - Yep. - Okay. - You said a lot period of the week, but yes. - So if you hadn't just had this negative career experience, you wouldn't even be in a position to be curious about this or to go down this rabbit hole, right? - Never knew. - Okay, cool. Do you want a quote or not? Next, right? - Yep, yep. - Okay. It's just interesting how things come together like that. - Probably the best silver lining on my life, man. - Yeah. - Just one of those moments. - Okay. So what did you do after that? After you learned that there's this grant that the government covers. - I couldn't sleep, didn't know what to do, spoke to a buddy of mine, just to kind of wrap up things. Well, let me back up. I helped him scale his school because I was genuinely interested 'cause I really wanted to do this for myself. We tried to work out a deal. We had different visions. I wanted to do the online only 'cause I'm like, why not just do this online? It's gonna be more profitable based on what I researched. We're shutting down. We're gonna be shut down. So it was one of those things where online school just made sense. But no, I wanted to go to online school route. It was just a lot more profitable. I didn't need parking lots or spaces or anything like that. And I did my research. And just to be careful with sleep in the story, we raised some money. We probably didn't even raise money, but we did it anyway. Valuable lesson there. You know, when you look at movies and you see shareholders and meetings, it's not all rainbows and good stuff, but it taught me that side of things, right? And then I took an exit from that school as well. But man, what I've experienced, it was doing those and operating those. And then that led to Twitter. Our buddy Spencer goes, you gotta get on Twitter. That's where it's at. I'm like, dude, there's no way. I don't have any social media. I'm needing social media. But it just, I got on Twitter. Booked my first call. It was a flight attendant school in Minnesota that needed help. And I'm like, I can't believe that's a thing. And we scheduled it to about 2.4 million. Our first year on Just Brands. All across Texas, being an online school it was, we get to market all of Texas. You don't have to stay in your backyard, like a brick and mortar, like in person school. And then it just caught wildfire. I did everything that no one's ever done. I spent zero dollars on marketing. I just went knocking on church doors and getting involved with church groups and helping nonprofits, their audiences. And they just caught wildfire, man. What made you want to go to churches for this? At my church, obviously we tithe and stuff like that. And you could choose where your money kind of goes to. And we had already chose a certain percentage to go to a women's shelter. And I knew through church about these shelters and then where they go through. So I'm like, you know what? A lot of these nonprofits need something to do while they're recovering or life transitioning. They already qualify for this grant. They just don't know about it. So I pitched it to them. They all loved it. And I quickly noticed something wasn't right 'cause their login history wasn't high at all. And what I noticed is that they didn't have laptops. So that's when I threw in the laptop. Like, hey, free training, a free laptop, and they just blew up after that even more. Like, right when I thought, like, this is it. And I'm like, oh my gosh, if I just fix this pinpoint, it's gonna blow up even more. And then it just, it did. I started getting a lot of community partners and I partnered up with them. And again, the goal was just to bring awareness to this grant. Whether they wanted to use our school or not, that wasn't the mission. The mission was like, hey, this is grant. Go learn or trade. We're so behind on trades. And I think we talked about this yesterday. For every five tradesmen that retire, only once getting replaced, no matter what it is. - Yeah, let's talk about the unit economics. How much is the grant? And let's talk about your last business. How much is the grant? And what were the trades? So it was HVAC, electrical plumbing. And then tell me about like the, the Oculus that you would send them. And then what were you paying for the course? Million questions in one, but you'll sort it out. - Yeah, yeah, yeah, yeah. - So every state has different regions, right? And every region treats as a grant independently for whatever reason, same grant. And that means same different cost. So like say central taxes will max out at 7,500 per student. That's what the school makes. Our investment is, these God was right here, but you could find for like $2 to $300 or a laptop. And like I said, when we first started the school, it was mainly medical building and coding, pharmacy technician, IT help desk, it's just stuff that you could generally do remotely. When we first started the school, we were writing the curriculum, then you could find out that you could by label it. And what that means is you produce a bunch of courses, I buy them from you, let's just say for $800 to $1,000. I slap my school name on it and the rest is margin. So the grant will pay as low as about $5,000 in some areas and as high as $15,000. - Depending on both the region and the state, right? - The region and the state and the field. So they're not gonna pay a ton of money for something that's not as much as high in demand, but still needed. But like you said, anything in the trades, welding, a certain kind of technician, whether it's solar, and it's also regional. So for example, if you go down to Houston Galveston, it's gonna be very marine based, like underwater welding, boat technicians, boat repair, like very like that. If you go to West Texas, it's gonna be oil and gas, like driving the trucks to deliver gas and oil, wind turbine technician, CDL. So this changes up and they make it extremely complicated and then I was able to simplify. - That's where you found success or where that's where you found your edge, your alpha, because you saw all this friction, all this bureaucracy and red tape and you said, all right, I'm gonna sit down. I'm not going anywhere until I figure this out because I think that the prize at the end of the rainbow if I figure this out is very large. - Oh, for sure, 'cause if you look and you're driving around and you're seeing this, you'll hear schools promoting on the radio. You'll see them in commercials. You'll see them on social media, that's expensive. That's extremely expensive. I was doing a career in marketing. I'm going to the church, speaking at a church. Hey, anyone want to go to school for free? Wanna learn a trade and they were like, what do you mean? It took me a while to get them to understand 'cause everyone was like, what's the catch? Like, there has to be a catch. And I'm like, no, just like food stamps has existed this whole time, this grant exists because the wild card here, the purpose of this grant is to get you off government benefits, get you into a livable wage, learn no new skillset, get in the trade and start making decent money 'cause they want your future taxes forever. So it's a pretty good investment on the government. - And they don't want to be paying for your food stamps forever either. It's a double win. So it's like, it's not the government being a philanthropist. It's like, we're gonna put up $7,500 bucks. Then we're gonna save all this money from food stamps, all this money from section A housing. Then you're gonna pay us taxes on top of that. It's an investment for the government, but the government is so complicated that it's hard for entrepreneurs like you and I to navigate our way through it, right? - Correct. - Yeah, you nailed it. And think about it. When you say win-win, it is a win-win because our audience that this grant targets is anyone in warehouse work, retail work, fast-feed work. So we're just trying to get people out of not flipping burgers anymore and into a trade. - Yeah, and make three, four, six times as much. - At least. The average graduate's making 25 to 30 bucks an hour. It's insane. - Wow, okay. So one thing that I think is interesting about all this is like, you don't have to be in the course business. You don't have to go put together this course about HVAC which you probably know nothing about, right? I mean, you did fix your HVAC rather than that. - I did, I did. I took the course for the first time after five years and took that one section and I was able to use my own HVAC for 20 bucks. Yeah, who would have known? It works. - That's the whole beauty of this is like you figure out how to work this system in a compliant way. And then you figure out how to just white label courses which is just a fancy way for saying, find a school, buy the courses from the school, put your logo on it. That's it. Then you put the parties together and then I guess the third critical element of that is finding referral partners, churches, workforce development centers, chambers of commerce, anyone that like regularly interacts with people that might want a free education, right? And to better their lives. Once again, you say it a lot more prettier than me. Yes. (laughing) - So why don't we talk about the trades that are in the highest demand, from like most to least demand? That most states and/or regions will pay for. - Yeah, it's anything with the word technician in it. So whether that's solar technician, fork list, repair technician, pool technician, three technician. The whole point of the grant is what's paying the most out there that people aren't really talking about. We know that HVAC electrical employment are popular and it's always needed. But man, it's the underlining ones that don't commercialize that are needed. Pest control technician. I mean, just about anything that has the word technician that secretly they earn really good hourly wages and just nobody wants to do it. Like it's 30 jobs that no one wants to do, but they pay well and for a reason. Well, you were just telling me about a dog rumor, which I would never think would be relevant to this, but they're like that technicians, right? - Yeah. - And so that counts. - Yeah, I helped a guy up the street from us in Princeton, Texas. And he opened up a dog grooming school. I didn't believe him. I was like, dude, I can't help you. A little that I know that when I looked up like the requirements, the grant pays for that tech, which is just an assistant to a veterinarian person. But it also qualifies for these dog rumors 'cause there's certain things that I won't really get into. It's kind of gross that they have to do during the grooming session. And this guy's booked out like six, eight weeks in advance, charges 250 per trim 'cause he specializes in doodles, like gold and deuterous lapid doodles. And I can't believe that man, he's gonna, you know, he's weeks away from going live with a school. He's gonna train and do his own curriculum. 'Cause it's, again, it's white labels. He's gonna train his own curriculum, pick from the cream of the crop, keep those and the rest get certified and go find work elsewhere, which is, anyone with certifications is not hard to find a job. - Yeah. So you're saying that there's an opportunity here for aspiring business owners to start their own school, and which we'll get to in a minute. But then there's also an opportunity for current business owners that maybe has a hard time finding qualified employees, maybe hires people with a job title that have the word technician in it, like these vet technicians. And so you help them set up their own school to where A, they can find the best people in the business. They can, and they're getting paid to train their own employees, right? They're getting paid by the government to find the best employees that they can. And then for all the leftover, like they call it sell your sawdust, right? Let's say they have more applicants than they need to hire. They can still get paid by the government to train them, and then they can just farm them out to all their competitors, or they can go get jobs elsewhere. - Yeah. Here's a case study for you. I had the mutual connections on helping an adult, a boutique adult daycare business. - Okay. - Extremely lucrative business. And the number one pain pulling he has is that he never has enough CNAs, and what CNA means is certified nurse. Assistant. - Assistant. - Grooling job. I mean, big turnover rate, 'cause you're just bathing old people, taking care of them, unfortunately changing diapers. And then we get paid the best. Usually the ranges is from like $16, $18. But he does have a career progression. Like if you stick with him for a couple of months, he gives you a raise, another couple of months, another raise. Come to find out, you know, 25 out of his 30 CNAs weren't even certified. Almost like a home health aid. You just take a little boot camp course. Is that legal? - Yeah, because it's kind of like home health aid. Like you're just like a glorified babysitter, I guess, if you will. But yeah, I mean, he's gonna get 7,500s for every single staff member he certifies. He needs to certify anyway. So once he stands up to school, he'll probably make 300,000 in initial revenue, fixing his own pain point. But you brought up a good question. How many people do you think are really certified out there doing the work all the time? I mean, we talked about the Forklift repair guide net. He's not certified, he just done it for 30 years. The guy that fixed my dishwasher here in the town of Wiley, he came to fix it. It took him 15 minutes. He builds me 450 bucks, which is insane. But he's the only one that picked up the phone out of five people I thought. I mean, literally the only one picked up the phone. And he could be here the next day. And I paid whatever it was. He spent 15 minutes here. I literally hung up a call that was on and I had to go ask him, like, "Hey, where'd you put a school? This is what I do." Well, he's like, "How do you go to school?" I started fixing my own stuff eight years ago. My wife put a post on it and it just took off from there, and I've been doing it since. I'm a one-man show. Oh my gosh. He does 68 jobs a day. So one-man show that it's doing 300 a year. There's just so much demand for it. So much demand. I mean, I had to call five people. Some dude watching YouTube videos is making insane money. All the time. I mean, that's what you post about all the time. It's just people overcomplicated. They never start. And they overanalyze it. It just don't start stuff, man. I mean, we're here to tell people start stuff. All right. So we'll get to like the starting a new school from scratch in a minute. But I'm thinking about Amazon right now. Like, one of the most brilliant things that Amazon did to grow was they took all of their cost centers and turned them into profit centers. So, you know, two decades ago, they're like, "Geez, we're spending all this money on servers." Like, why don't we buy our own servers? And then we'll buy extra. And if anyone needs our servers, we'll call it AWS. Amazon Web Services. And we'll charge money for people to use our servers. And now, AWS is a multi-billion dollar business in and of itself. And then they were like, "Geez, we're given UPS, USPS, and FedEx, all this money every year. We're growing so fast. Why don't we just buy our own trucks?" And that was their biggest cost center. Now, you know, other companies pay Amazon to deliver their stuff. Now, it's a profit center. So this, this CNA example, he was spending tens, if not hundreds of thousands of dollars a year, recruiting CNAs. Like, subpar, not even certified CNAs from other, like, head hunting agencies, and you went to him and said, "Hey, how about you take that to zero?" And in addition, you will get paid for training your own employees. In addition, if you don't need all the employees that you're training, you can just farm them out. So could he get paid to train someone and then get paid to place them at a competitor as well? - A hundred percent. - If you really wanted to lean into that? - Well, he did it 'cause he's, you know, he's gonna exit in five or 10 years. And he's buying these residential, looking beautiful homes, turning them into adult, they care levies, or elder care. And he's buying them up. So he's always in the CNAs. As he scales, he needs more and more CNAs. And sure, if they don't work out, he could send them other places. 'Cause again, what people are understanding is, they just want that piece of paper. That piece of paper is a foot in the door in a near career progression, right? So yeah, he's gonna turn it into a cool little, not only value add to his business when he goes to sell, how many businesses out there go sell and say, "Hey, I also have a school with it, so you'll never have to wear a bus seat." - Yeah, yeah. And then, you know, if the, the negative way of looking at that from the potential acquires perspective is, I don't want to be in the school business, so I just want to be in the CNA business. Well, it's like, well, you're not. Like, you're in the training employees business. This quote unquote, "school" just means you're actually getting paid to do it, which none of my competitors are, right? If you want to lean into the quote, "school" part of the business, then you feel free to grow that as much as you want, but I would rather get paid to train my employees than otherwise, right? - Not only get paid, I mean, the part two to this grant that I really just started promoting now is, we're so behind the eight ball on trades that now there's additional grants for the employer to get free paid labor. And we talked about this. If you hire a graduate that took this grant, most regions, areas, cities, workforce offices will pay you up to 100% of training wages up to 20 bucks an hour for $300 an hour, worst case, 50% other wages. The reason behind this is they want to help small businesses, but also they want these graduates to have work experience, and that way they call it test drive in each other. The employer test drives, "Hey, is this person going to be a good worker? "Are they going to show up because the bar's so low?" And if they do, we'll keep up. If they don't work out, dude, you just got free labor and they get to put experience on the resume, so they go move on to their career path. Crazy. - So HVAC companies could, they can have free labor, basically, that, no, people learning. Now, if you were to guess, 'cause you've been, I know you've been co-calling, what percentage of HVAC companies even know that this is an option? - Zero. What percentage of businesses know? Zero. - Right. - I'll go back to your heart. I'll tell you that workforce office has about a million dollars they get every year specifically to help employers and fix this gap. And they struggle to spend the money. Like, it's so many grants out there that people don't realize there's business grants and people talk about it and make it complicated, but man, it's as simple as just go register to be a training provider at the workforce. Get free labor. If you're trying to skill, there's no better way to scale for free. And it's a win-win. They get experience out of it. You maybe find a good employee out of it. - Is there a way for people to monetize playing a middleman on the job training side of things where you could help the city of Plano, Texas, place people at John's HVAC company and make a margin there? Or is that not really a thing? - No, probably. I mean, that's kind of what I, where I fit in, right? But, sure. - I mean, here's a difference, right? When I told you I co-called HVAC companies 'cause they have a dedicated person that does this for them. And they struggle. Keep in mind, how much training goes into it? I mean, look what it sounds like. Hey, Chris, would you like some free labor? You just have to register at the workforce to get 300 hours and then you're like, you're too busy. You're like, I don't get it. It sounds like a scam. - Oh, it kind of sounds like a scam, yeah. That's your biggest competition is it sounds like a scam. - So I have decent sales experience. I co-called, I co-called 10 HVAC companies and I said, hey, you know, I'm doing this project and not necessarily in this order, but I'm like, hey, what size is your business? Who runs it? How do you find technicians? Are you looking for technicians? And then whether they say yes or no, I was like, hey, would you mind getting a technician at no cost to you in a comfort workman's comp? And again, I'm messing this up in the order it is, but what was astonishing is out of the 10 company that I called, I left messages for seven of them. Still, I haven't heard back. It's been a month. The three that did pick up the phone, there were mom and pop, maybe owner, son, owner of one technician. And they're like, no, we're good. I'm like, but this is your busy season. There isn't like, don't you want extra labor? Like, it's for people to go and audit, so you don't have to, it's, no, I think we're fine. Like, it's just, it's small and we're doing okay. You know, I'm like, yeah, I mean, but doing okay isn't, you know, this is free labor. And that's when I started asking questions 'cause I was almost getting annoyed. And I'm like, what am I missing here? Like, what are you saying, no, to it's 300 hours of free labor up to 22 bucks an hour with workman's comp? Even if you just used them for your busy season, they call it a day, not got five houses in one day versus one. I didn't get it, I didn't get it. Let's talk about some school owners that you know that you've helped and how much money they're making and how they're making money. Like, what are they white labeling? What's the industry, what are they selling it for? How are they finding customers? Let's go there. Perfect. So, one of the first schools I helped was in nursing school. They were out of Georgia and to describe this case study, they were just grossly undercharging and not even using the grant. Oh, man. They were charging like $2,000 or like a medical system that are seeing like just basic filibotomy, like basic four-week boot camp style schools. And they were doing decent. They were doing like 10 to 12 people a month at $2,000. But what's unique is that most trade school owners are trades people themselves. Yeah, they're not business owners. Kind of like small business people, right? Like, they create a business, they create this school and then they get stuck working in the business, they never get to work on it. They're the instructor, they're the marketing person, they answer the phone during class, like they just don't know how to scale and they get stuck in it, but they love it, they love it, it's their passion. That's usually the common thing. So when we met, I was like, hey, Atlanta, I mean Atlanta, well yeah, Atlanta. Atlanta pays $10,000 per student. Why are you only charging two? And she was, I tried using the grant, it was complicated, it's a nightmare, I just, I charged the general public 2000, I stayed busy, I want to stay, I want to stay busy. I'm like, okay, but if you add an extra course and you just change your pricing because your value add is you're an ex nurse and you're getting a job placement. The value is in your network of job placement. They could go to other schools, but they're not guaranteed a job. You're almost telling me you could guarantee the job and you're going to give them two or three courses, package your bundle. We did that, she changed her pricing to $9,999 and she went from doing 20, 25,000 a month to about 150 a month. - Oh my gosh. - And that's when I gave it away. 'Cause I was like, too eager and naive to, and I'm like, this is what you gotta do. And when she started sending me screenshots of the scaling, I'm like, dang it, think I'm onto something here. I'm like, no more free. - So she's just like making her life so hard because she just like, I don't wanna forget that out. So people are coming out of pocket to pay $2,000, which is a lot of money for the type of people that is her customer, right? That's a lot of money for them. Meanwhile, this whole time she could charge five times as much and the only one paying for it is the US government. Like, that's crazy. - And you know, it's kind of like, you know, we talked about, she comes from a rough background, she's trying to impact her community and she's putting them on this long payment plan, hoping they pay her back when they get a job, which like 50% is. Like, this is a tough thing to gamble. And I get it. It's like, we're gonna open a lot of eyes today with this podcast 'cause everywhere you look now, you're gonna see Chris CDO truck driving school, teen driving schools. And those days, they've got a business. Like, they need more of them. My goal is, we need trade schools everywhere, just like you see those kumans and kids coding schools. Like, why are there 5,000 of those, but not 5,000 of adult schools? I'm good. - Didn't you say there's like, in the city of Phoenix, there's like one Masonry school, total. - There's one Masonry school in the whole state of Arizona. (laughs) - There's one applying to a pair of school in the state of Texas. - No. - In person. - Yeah. - Everything else is online or virtual? - No, it doesn't exist. The other school that's in person is in Ohio. Like, there's so many opportunities. There's no such thing as, see, everyone goes, why don't we need that with anything else, right? I don't need to be certified. I just need to do the work. So all those HFAC people out there are legally operating, I think you're one of them, if you fit your own AC. If you touch free on, you broke the law, my friend, 'cause you need an EPA, so you're universal to touch in a handle refrigerant as an example. But a lot of, you know, OSHA's cracking down, they're going on work sites for various reasons, but these people are cracking down, and you really do need to be certified. I mean, if you want to charge a value ad, some of these companies and contracts want to see your credentials. And that's where we're hoping to solve. In no matter what the field it is. Like I said, flight attendant school, pest control school, poll technician school, dog grooming school. I helped the guy start a telematics company. I mean, a telematics school, I don't even know what telematics was. I'm like, spasmatics, like the band in songs, but no, telematics, which is basically, they're dealing with low voltage and they're putting technology and GPSs and fleets of vehicles. Net technician, so behind, six months behind on work, 'cause you can't find technicians. - Oh my gosh. - Garage door repair companies, so behind on technicians, we know that's a big hot topic right now. Window, text, I mean, anything in the trade is a technician. Any way you want to, you know, call it or dice it up. - Do these blue collar businesses like Garage door repair, do they pay like placement fees to find good technicians? - Some dude, the big ones dude. The big ones dude, because everyone's moving to this boring space now and they're gonna have to compete. They're looking for sign on bonuses and all kinds of stuff. There's blue collar staffing companies out there that are killing it. That I didn't know was a thing. You think staffing company, you think, oh, why call it? You know, corporate jobs and stuff like. And there's some blue collar staffing companies coming out of nowhere that have always existed, that seeker would be been pretty money this whole time. - Are there any people that you've helped that are making money by, you know, starting a school selling courses and in addition paying to place people like a staffing company, doing both. - Yeah, I know of one of my clients has an IT school and the staffing that's owned by his wife company. So he graduated some and stepped some to some pretty lucrative companies, but by the names of Microsoft, T-Mobile, Verizon. So you would call that double dipping, I always call that GS. - What do his unit economics look like, both to sell the course and to place that? - So he created his own course. So he's like a unicorn. He created his own IT courses. But he also white labels to others. So he created his own IT courses. So I'm sure there's a cost to create it at some point, but now it's like pennies to resell it and it's it's all margin. And then on the staffing side, he's collecting 7,500 to 15,000 per placement. - And then what's he charging for the program? - Anywhere between five and 10,000. The state of Arizona has their own region. So he's probably doing about 2.5, 2.8 on the school side and another 1.5 on the placement side. - Million a year? - Yes. - Okay. - Yeah, about five known combined. And it's a five-man show for them being offshore. So unicorn. - It's just like-- - Unicorn? - Unicorn. - Pure profit almost. - Oh, gross profit. - Oh man. - Disgusting profit. - I know. - I know, I know. - All right, so if someone's listening to this and they're like, all right, I wanna start a school. I wanna start a trade school. What advice would you give them? - I would say first, what I've noticed is the best school operators are already good operators. It's like they have a business. So I would think for those that have a business and are listening to this, if you have the point of finding staffing that you wanna make additional really good revenue, we should have a conversation. And if it makes sense, there's some states that are really easy to throw up a school and bolt it on to your existing business, like our backyard Texas is an easy school, easy state, Arizona is an easy state, Montana, Arkansas, Missouri, just to name some. Then there's some states that are just tough. They make you wait two years to even operate or make your first enrollment just 'cause they have their own politics. Stay out of Florida, California, New York, Washington, Go figure, those are tough states. But doesn't mean it's impossible, it just means they have to wait. - You gotta wait longer. - Yeah, okay. - And then there's a bunch of states kind of in the middle, right? Kind of somewhat difficult, six month wait time. - Yep, but in the meantime, doesn't mean they don't open it up. That should open up their eyes, like maybe you open up your own academy internally because you want that anyway. You know, you're gonna trim your guys the way you wanna train them, the way you wanna do your process anyway. And that's the cool thing about online schools with the virtual reality goggles. People, there's no way you could learn a trade by watching virtual reality. I'm like, what do you think YouTube is doing for us this whole time? We watch a video, we learn how to fix something. And the reality is this is just a shortcut to get the certificate. And then once I go to work at Chris's multiple companies, you're gonna train me or your operator's gonna train me of the way you guys want stuff done. So this is just a piece of paper to get me to that job. And then before you throw me keys to the work truck, you're gonna want to train me on how you do your processes. - Yeah, so if I'm living in Utah or California, and I wanna start like a tree technician school or a vet technician school, and I find a white label course, I don't wanna make it, I find one, so it's 500 bucks, cool. I can like start the process now, and then I can go to friends and family, I can make calls and people can pay cash for this, right? The only thing I really have to wait for is the reimbursement from the state. I can still get rolling before I get that, right? - Some state, you can just start selling to the general market like most schools do until the grant kicks in. And there's a lot of different ways to collect this. Community partners that are willing to pay you for that. I have a client in Utah that's working with the prison system and they're trying to sell courses that the prison system is just big business, that they're trying to buy. And so there's so many ways to use this and utilize this. It's just, I think it's the code on fixing the paint point of finding staffing and the staffing shortages. I mean, they've set the bar really low. I've talked to, you know, business owner out there and they're like, man, we really just want a good attitude. If they have credentials, let's have bonus, but we just wanted to show up. - Yeah. - Yeah, so I think another way of looking at this is if I'm in New York or California or Florida, the three most populated states, well, then Texas. It's like, all right, two year wait, cool. That means like no one's going to be doing this, right? I'm willing to wait. If I can spend the next two years grinding, trying Facebook ads, trying referrals, trying friends and family, I can do buy now pay later. Stripe has buy now pay later. Clarner, people can do monthly installments with a firm. I'm going to do it the hard way for two years because I know I'm going to have very few competitors and then two years from now, it's easy mode because the state's going to be paying me for these and I can charge even more. - I want to say hard mode because that's what normally people do with the normal business. - That's normal business. Yeah, I mean, you go to any truck driving school out there and 90% of them are charging $3,000 to $5,000 and they just rely on volume, but the margins are still high. I'm not a big fan of those in-person schools because of the margins, but like if you bought, like you said earlier, a medical-from-desk course, which medical, anyway, you could fit that in, the dentist offers, dermatology, anywhere. If you bought this course, let's say for $500 and you market it to the general public for $3,000, it's still big margins, you sell one a week. That replaces somebody's income, like that. - Is there any of these trades that have to be done in person or can all of them be done virtually or remotely? - Some have to be done in person like welding, we haven't cracked that code yet. And some of them are just, you know, you have to do it in person. Some of them is a combination of like, hey, you could do 90% of the hybrid and it just offer a two-week extension. So like the C&A course, you could learn it online, but at a certain point when it comes like needles and certain procedures, you're gonna have to just, you know, like phlebotomy, you're gonna have to do so many pokes before you could fully graduate. And that's when you just partner up with employers or stacking companies, that's the easy part. - Yeah, now what about tech, or sales? Didn't you say that you know a guy doing, like, enterprise tech sales with this? - Yeah, I have a client that does IT tech sales courses and he crushes it. Anyone looking to get into tech without a degree? It's a big push right now. Not saying there's anything wrong with college degrees, it's just for the longest time people said, well, I can't get into tech without a degree and he was able to debunk that. And now he sells a course with IT tech sales course and it helps people get into some really cool jobs. IT mobile work from home. A lot of that is tradition for work from home. Everyone's scared of how this returns to office talk. There's still plenty of remote work out there, just people don't know where to look. - Okay, so to recap, like, you're doing this insurance thing, ended poorly. You had a conversation with the truck driving school. It was very interesting to you, you raised money, you started your own school, it did really well. It ended now like your full time job/business is helping people start their own schools and/or start their own schools from scratch or basically incubate their own schools at their own companies to better vertically integrate, right? - 100%. And that's with everything, 'cause like I said, most of these school owners are trades people themselves. They didn't have a CRN. They're not using a sell script. They're just, you know, John and Mary just, oh yeah, come down, we teach, you know, how to become a technician. We'll teach you how to become a nurse and yeah, come on down anytime and click. Like, no, you got to capture, they called. You got to capture that and it's just like, I'm involved with their sales training, I'm involved with their scripting, their email campaigns or funnels. - The government stuff. - The government stuff. - Yeah, I'm sure you got to like, you got to kind of know who to talk to, like how to work the system. And I said, I don't mean that in like an unethical way, but like how to navigate this bureaucracy that is the government. - That's what I'm saying, like if you Google trade school consultants, you're going to find people that will show you how to become a school, become regulated and just like it is for businesses. But what they don't teach you then, what? How do you go find students? How do you talk to students? How you know, it's very much a sell. Like it's really sales and the sale of becoming sales. And a lot of these school owners, they don't have that dialed in. And I'm able to help them get that dialed in. A lot of them don't utilize a grant because they've heard it's a terrible experience. But what isn't when you're dealing with the government, if an individual walks into these offices and centers, they're like, hey, I want to take that grant after the S, four different people. Maybe they get lucky in one on hands on like 18 forms. That individual goes home and they're like, dude, where do I start? I don't even know how to fill this out. What do I say? And it just dies there. So we're bringing awareness by, let's really help those people that need this. Get them off benefits. You get them learning a new trade because we desperately need more trades for you. And every sector. - Oh, okay, well, actor, do we miss anything? Anything I forgot? - No, me and I mean, we could probably nerd about this part one and then part 10, a year from now, we'll notice. But let's go impacts and lives. - That sounds great. We will link to all your stuff in the show notes and we'll go from there. All right, if you want to reach out to Hector, I've got a link to him in the show notes. Thanks for hanging out on the corner office.