Taylor Shores, owner of High Point Gutter in Woodinville, Washington, transformed a weekend gutter cleaning side hustle into a thriving $5 million business. His journey from college dropout to successful entrepreneur offers great insights for aspiring business owners.
Humble Beginnings
In 2016, with just $35 in his checking account and a newborn daughter, Taylor decided to start a side business cleaning gutters. Using borrowed equipment and $500 for materials, he began working weekends, earning $1200-$1600 cash per day – more than his weekly salary at his full-time job.
Taylor recalls, “I was making more, doing less, and that’s when I knew that I was onto something.” This early success motivated him to pursue gutter cleaning and installation full-time.
Growth and Expansion
Over the next eight years, High Point Gutter expanded rapidly. Today, the company offers a range of services including:
- Gutter installation
- Gutter cleaning
- Whole house gutters
The business now generates $5 million in annual revenue, with net profit margins between 13-15%. Taylor attributes this growth to several key factors:
Keys to Success
1. Customer-First Approach
Taylor emphasizes the importance of prioritizing customer satisfaction: “The customer is not always right, but the customer always has to win.” This philosophy has helped High Point Gutter maintain a stellar reputation and generate repeat business.
2. Speed to Lead
One crucial aspect of converting leads to customers is rapid response time. Taylor stresses, “If you’re not touching that customer within 5 minutes, you basically lost the lead.” This approach has given High Point Gutter an edge over competitors.
3. Proper Pricing and Margins
Initially, Taylor struggled with pricing his services correctly. He advises new entrepreneurs to aim for 50% gross margins, emphasizing the importance of understanding cost of goods sold (materials, labor, and estimating costs).
4. Marketing Investment
High Point Gutter invests heavily in marketing, spending about $30,000 per month during the low season. This includes:
- $12,000 on ads
- $5,000 on SEO
- $5,000 on Yelp advertising
- Additional spending on Thumbtack, Angi Leads, and local sponsorships
5. Focus on Reviews and Reputation
With over 500 5-star Google reviews, High Point Gutter has built a strong online reputation. They incentivize their crews to deliver excellent service by offering bonuses for 5-star ratings.
Overcoming Challenges
Taylor faced numerous obstacles on his path to success:
Work-Life Balance
In the early years, Taylor worked 80-100 hours per week, often missing time with his family. While he believes the sacrifice was ultimately worth it, he acknowledges the toll it took on his personal life.
Seasonality
The gutter business experiences significant seasonal fluctuations. To combat this, High Point Gutter adjusts its marketing spend and employee schedules throughout the year.
Safety Concerns
After a serious workplace accident in 2021, Taylor implemented more rigorous safety training and protocols. This not only protected his workers but also reduced insurance costs in the long run.
Advice for Aspiring Entrepreneurs
Taylor offers several pieces of advice for those looking to start their own businesses:
- Seek mentorship from successful entrepreneurs in your field
- Read books on leadership and business management
- Be prepared to work long hours and make sacrifices, especially in the early stages
- Focus on one core aspect of the business that only you can do
- Don’t let fear of failure hold you back
Taylor’s journey from a $500 side hustle to a $5 million business demonstrates the potential for success in the gutter industry. By focusing on customer satisfaction, rapid response times, proper pricing, and strategic marketing, entrepreneurs can build thriving businesses in this niche market.
Frequently Asked Questions
Q: How much does it cost to start a gutter cleaning business?
According to Taylor, you can start a gutter cleaning business with as little as $500. This covers basic equipment like a harness, bucket, ladder, and cleaning solutions. However, as you expand into installation, you may need to invest in more expensive equipment like gutter machines, which can cost around $10,000.
Q: What are the profit margins in the gutter business?
Taylor’s company, High Point Gutter, operates with net profit margins between 13-15%. For gutter installation, they aim for gross margins of 54%, while cleaning services have higher margins of around 70%. Taylor recommends aiming for 50% gross margins when starting out.
Q: How do you handle the seasonality of the gutter business?
To manage seasonal fluctuations, Taylor’s company adjusts its marketing spend, increasing advertising during slower months. They also structure employee schedules to accommodate busier periods, using 4-day workweeks in slower months and 5-day weeks during peak seasons. Additionally, they diversify services to include both installation and cleaning to maintain steady work throughout the year.
Q: What’s the most effective way to market a gutter business?
Taylor’s company invests heavily in digital marketing, including Google Ads, SEO, and platforms like Yelp and Thumbtack. They also focus on generating positive customer reviews and maintaining a strong online reputation. For new businesses, Taylor recommends starting with word-of-mouth referrals from friends and family, then gradually building an online presence through a website and Google reviews.
