Dear Reader,
There are friends you laugh with.
And there are friends you build with.
Kevin Doran is both.
When Kevin talks about having “sweaty palms” in our old Thursday accountability meetings, I laugh. Not because I was trying to intimidate him. I never set out to scare anyone. In fact, I’ve been told more than once that “Todd is the nicest mean person you’ll ever meet.”
What people mean by that is simple.
I’ll smile. I’ll encourage you. I’ll support you.
And I will absolutely hold you accountable.
That discipline isn’t about ego. It’s about growth.
In this episode, Kevin and I reflect on our friendship — but we also go deep. Alan and I didn’t soft-pedal the questions just because he’s my friend. We challenged him on something most leaders claim but very few can actually execute:
How do you scale fast… toward a $50 million exit… without sacrificing five-star service?
Most companies chase revenue.
Most companies chasing an exit care about multiples.
Very few stay obsessed with service while doing it.
Kevin believes he can do both.
And he answered every hard question with confidence.
What I admire about Kevin isn’t just his ambition. It’s his discipline.
Over ten years ago, I told him to spend at least 10% of his time recruiting. Not when he needed someone. Not when things were on fire. Always.
He listened.
For a decade.
Today, he has personal relationships with nearly every high producer in Southern California. That’s not luck. That’s compounding accountability.
Scaling from $7M pacing to a $10M run rate in 90 days.
Targeting $20M in year one.
Designating $50M as a Round 1 exit.
Those numbers are impressive.
But the real story underneath is this:
Accountability builds leaders who can handle speed.
Accountability builds businesses that don’t collapse under growth.
Accountability is what allows you to challenge a friend on air — and have him welcome it.
Kevin and I support each other.
We challenge each other.
And that’s why this episode works.
If you’re serious about scaling — without losing your standards — listen closely.
The sweaty palms are worth it.
In This Episode, You'll Learn:
- The Sales and Service Dance: Why the technician is just as critical to the sales process as the comfort advisor.
- Service-First Leadership: Why prioritizing the client experience naturally drives high-ticket sales.
- The Private Equity Reality Check: What buyers are actually looking for in a modern home services business.
- Recruiting Through Relationships: Using a “battle-tested” Rolodex to maintain standards during rapid scale.
- The $50M Growth Roadmap: The specific path from $7M to $10M and the trajectory toward a $50M exit.
- Structuring the Personal Win: How to use contractual “fences” to protect your financial future.
- Legacy and Team Alignment: Creating a reward fund so employees share in the wealth of a company sale.
- Accountability on Steroids: The “sweaty palms” reality of being held to a high-performance standard.
Episode Chapters & Summary
1. The Sales and Service Dance
The episode opens with the core philosophy that service and sales are a “two-step dance.” Kevin argues against the “shark” mentality, emphasizing that a technician and a sales manager must work in tandem to ensure the client experience remains the primary driver of revenue.
Key Takeaways
- Techs and sales roles are equally important; they simply have different parts in the same process.
- High-ticket outcomes are a byproduct of a high-level client experience.
- Moving away from “feeding frenzy” sales tactics builds long-term brand equity.
2. What Private Equity Actually Rewards
Todd and Kevin discuss the evolution of private equity in the trades. Buyers have moved beyond simple revenue multiples and are now scrutinizing operational “autopilot” systems, financial tracking, and how a company handles customer complaints.
Key Takeaways
- A business is only a sellable asset if it can run without the owner's daily involvement.
- Post-COVID buyers are more sophisticated; they want data-backed proof of stability.
- Unresolved “micro-frictions” like bad reviews or messy books will crater your valuation.
3. Hyper-Growth Without Service Slips
Scaling a team usually leads to a dilution of quality. Kevin explains how he prevents this by recruiting known, veteran professionals who already understand his standards, rather than hiring unproven candidates off the street during a growth spurt.
Key Takeaways
- Use a personal Rolodex of “battle-tested” pros to maintain five-star standards.
- Consistency in the “small things” (shoe covers, cleanliness) is non-negotiable during scale.
- Strategic recruiting acts as a “fast track” to operational excellence.
4. The Path to $50 Million
Kevin details the factual revenue progression of Sano. By adding departments and systems, the company jumped from a $7M pacing to a $10M run rate in 90 days, with clear targets of $20M for the first full year and $50M by year three.
Key Takeaways
- Scaling requires a pre-defined “puzzle” of departments and project plans.
- Speed to $10M was driven by the immediate installation of a plumbing division.
- The $50M milestone is the designated “Round 1” exit point for the organization.
5. Structuring the Personal Win
Kevin emphasizes that “fences and contracts make for good relationships.” He shares that his own financial outcome was legally documented before his first day on the job, ensuring clarity for both the leadership and the investors.
Key Takeaways
- Document your equity and exit expectations before the heavy lifting begins.
- Legal clarity prevents “negotiation fatigue” during the high-pressure scaling phase.
- The goal is to build a business that provides for the family, not just a job for the owner.
6. The Long Game: Post-Exit Earn-Outs
The “sunset exit” is a myth for most high-value sales. Kevin explains why staying on for a 3–5 year earn-out is the best way to leverage a partner's capital and maximize the final wealth event for the founders.
Key Takeaways
- A strategic partner provides the “fuel” (capital) to hit higher growth stages.
- The earn-out phase is where the most significant personal wealth is often unlocked.
- Cultural alignment with your buyer is critical since you will be working for them.
7. Legacy: The Employee Reward Fund
A major part of the Sano strategy is ensuring the team shares in the exit. Kevin discusses a specific fund designed to give a percentage of the company's value back to the employees who helped build it.
Key Takeaways
- Reward the people who “took care of the company” during the hard growth years.
- Aligning employee incentives with the exit goal reduces turnover and builds loyalty.
- True leadership is about creating a legacy that changes the lives of the entire team.
8. Accountability on Steroids
The episode concludes with Kevin recounting his early days working with Todd. He describes the “sweaty palms” feeling of a Thursday accountability meeting and how that discipline shaped his ability to lead a multi-million dollar organization.
Key Takeaways
- High-performance growth requires an “LMA” (Leadership, Management, Accountability) process.
- Consistency in following through on commitments is the difference between a dreamer and a scaler.
- Personal accountability at the top is the only way to drive a system-driven business.
