It takes a bold vision and a definitive plan to aggressively grow a home services business.
Just ask Edelman Inc., an electrical, plumbing, and HVAC company that aims to hit the billion-dollar mark in 10 years.
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“We’ve painted that vision and we’re aggressively going forward,” says Tyler Edelman, Chief Financial Officer of the company based in Champaign, Ill. “We’ve partnered with people like ServiceTitan and other vendors that are onboard to take us there.”
Rapid growth requires a streamlined approach to increase efficiency. That’s where cloud-based ServiceTitan steps in, ensuring transparent data collection, efficient communication, and instantaneous job tracking across the entire company.
Starting in the trades
Edelman is no stranger to the trades. Right out of high school, he began working as an electrician for Edelman Electric, owned by his uncle. His brothers had worked there, too.
The company operated as an electrical service business for nearly two decades until about seven years ago, when it bought a local HVAC company and merged, forming Edelman Inc. Around the same time, the company also started a plumbing division.
Edelman worked on the HVAC side for a short time before moving to the plumbing side, working everything from installs to sales, and as a service tech. He also attended college full-time for accounting and business. After graduation, he worked on the accounting side and, in his current role as CFO, oversees the company’s accounting and finances.
Streamlining operations
While the company’s accounting department used Quickbooks for many years, the service department used carbon-copy tickets.
The company switched to ServiceTitan four years ago, initially only in the service department, which employed three technicians. They chose ServiceTitan, Edelman says, because it was more comprehensive than other options.
“We liked what we saw,” Edelman says. “We liked all the features and options at that point. And even since then, it’s changed immensely. All of the different things that have been added into ServiceTitan and built out have changed a lot. It’s a completely different product, but for the better.”
Edelman Inc. now employs 110 people, and the entire company operates on ServiceTitan.
“It’s definitely easier for us doing it the second, third, and fourth time,” Edelman says of the onboarding process. “When we started building on our pricebook in the beginning, we didn't know the whole picture. We didn't know what steps we were making at first, that affected steps later in the process. We feel like we have a better understanding there, having experienced it. And with each one, that will definitely get easier.”
While onboarding presented a challenge and took time and effort, everyone loved it in the end, he says.
A focus on growth
The company shifted its service focus to position itself for future growth. About six years ago, the company performed 90 percent new construction and 10 percent “service retro,” or supplying services to existing homes. Today, the company stands about 50/50.
“Our goal is to keep building, maintain our new construction, but build the service retro above and beyond that, to the point where the new construction is just an add-on,” Edelman says, explaining how new construction places a strain on operations.
“Right now, we have several large jobs going, but never know when the next one’s coming—it can kind of take us off guard,” Edelman relates. “It’s hard to plan and duplicate our business that way. So, our vision as a company is to duplicate our service retro business model and take it all the way across the United States and build that billion-dollar company.”
Edelman Inc. plans to grow its business organically and through acquisitions. Acquisitions allow for quick growth but also require effort and money. Following an acquisition, the company aims to grow organically at each location.
“We're streamlining a few things in our company to make sure we’re 100 percent duplicatable,” Edelman says. “When we do come into an acquisition, we can streamline it and make it the most efficient process out there.”
The Edelman CFO explains how ServiceTitan software streamlines company operations.
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On selling in the field
ServiceTitan enables service techs to make more sales in the field, in a low-pressure way but with more confidence.
“ServiceTitan provides the tool to make those conversations smoother and gives the tech confidence to have the conversation, rather than just walk out the door without mentioning it,” Edelman says.
A tech can present multiple estimates side-by-side in a clean format, showing customers, “‘Hey, this is an option,’” Edelman explains. “‘This is the bare minimum I can do today. But while I'm here, I also noticed you could also use this repair to prevent a larger replacement down the road or at least prolong the life of your system.’”
On streamlining payroll
ServiceTitan enables Edelman Inc. to more easily incentivize employees. The company’s sales employees receive commissions, and the company uses SPIFs to reward techs who sell accessory items, such as memberships, indoor air-quality equipment, or filters.
“We're always looking for ways to incentivize through that process,” Edelman says, adding the company also wants to explore the configurable payroll.
“As we grow and we become more complex in our sales and service teams, we're in need of a more streamlined way to run payroll and to calculate commissions, SPIFs and bonuses, rather than having a payroll processor do that manually. That's one thing we’re excited about now.”
On financing benefits
Offering financing options to customers helps Edelman’s employees close more sales. The sales team presents good-better-and-best options for replacement, along with financing for each one.
“We've definitely noticed what financing can do in the scenarios where someone gets turned down for financing and we lose the sale,” Edelman says. “With financing, we have a way to make our products and services affordable for those who can't afford it all upfront, and give them more options. And another reason to buy Edelman.”
On job costing features
Edelman Inc. regularly provides feedback about ServiceTitan’s new-construction features to help improve the software’s functionality.
The company appreciates ServiceTitan’s job-costing features, which occur instantaneously within a job, instead of examining QuickBooks a month later after all the financials become categorized and departmentalized.
“ServiceTitan is eager to learn from their customers what they can do better and is acting upon it,” Edelman says.
On centralized operations
ServiceTitan's all-in-one software enables Edelman Inc. to streamline in-house operations, maintaining one call center around the clock for each location. Centralization allows the company to leverage its overhead and offer a better price to customers.
“We can answer the phones from anywhere and have that all streamlined through ServiceTitan,” Edelman says.
On increasing efficiency with ServiceTitan
Efficiency is key as Edelman Inc. streamlines its acquisition process. From acquisition to building out a team, the company maintains a target timeline of three months.
The company values the transparency ServiceTitan provides, as customer data remains available to the sales, service, dispatch, office, and leadership teams. It also appreciates that ServiceTitan remains ever-evolving, growing as the service company grows.
“We are able to streamline and leverage software in ways that humans aren’t able to do as efficiently,” Edelman says. “That makes us more duplicatable, so that's one thing we’ve loved. ServiceTitan hears our feedback. We see results from that. And as we adapt and grow, we know that ServiceTitan is out ahead of us making it possible.”
ServiceTitan Software
ServiceTitan is a comprehensive software solution built specifically to help service companies streamline their operations, boost revenue, and substantially elevate the trajectory of their business. Our comprehensive, cloud-based platform is used by thousands of electrical, HVAC, plumbing, garage door, and chimney sweep shops across the country—and has increased their revenue by an average of 25% in just their first year with us.
