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#4 To own, or lease? Real estate strategies + your business.

#4 To own, or lease? Real estate strategies + your business.

Re-imagining our marketing function, leading through change, and building a real estate portfolio alongside your operating business

Christopher Hoffmann
July 15, 2025 • Estimated Reading Time: 16 minutes

In Today’s Newsletter

Leading through change is hard; and it only gets harder
I am going to Pantheon, and why you should go too
Your business + your real estate; how we built a 450,000+ square foot portfolio
Re-imagining the marketing function; combining technology, systems, data AND marketing
Training your inside sales team to deliver results
Favorite Tweets from the past week

All of your leadership problems. Solved with the right hire. Uncommon Elite.

My friend and former Army 160th pilot, Christian Ruf, is helping business owners build high-performing teams by placing special operations veterans - think Navy SEALS, Army Rangers, Green Berets - in senior operations roles inside of businesses like yours. Check out his business, Uncommon Elite, and let him know that Chris sent you.

What’s on my mind?

Leading Through Change: Growth Without Losing What Makes us Great

What began in 2015 as a 40-person HVAC company in St. Louis has evolved into a multi-location home services organization with more than 650 team members across Missouri, Colorado, and Tennessee.

That kind of growth creates incredible opportunities — but also introduces real challenges, particularly when it comes to managing change.

Change is never easy. But it gets even harder as you grow.

More people. More complexity.

More systems. More moving parts.

With each new layer, the impact of change gets wider — and the need for great leadership gets even greater.

At HB Solutions Group, we believe that change should always be evaluated through three lenses:

Our team members
Our customers
Our company

This framework helps us keep our balance. Because what’s best for one group isn’t always what’s best for another — and it’s our responsibility as leaders to make decisions that ultimately serve all three.

But balancing these interests is only half the job. The other half? How we lead through the change.

We’ve learned that successful change efforts require:

Transparent, consistent communication about the “why”
Early engagement and feedback from the team
A genuine effort to bring people along in the process — not just roll things out

As we continue to grow, our goal is to blend the best parts of small business with the best parts of being a larger organization.

From our small business roots, we want to preserve agility, direct relationships, and personal ownership at every level.

From our scale, we want to leverage deeper resources to invest in training, systems, and support — so we can deliver a world-class customer experience while creating real growth opportunities for our people.

And I believe that the best kind of growth — the kind that’s rooted in values, driven by purpose, and led with care — is the kind that truly lasts.

— Chris H

Celebrating the Fourth of July with my kiddos. And machine guns.

We had a graduating class of plumbing students from Ranken Tech visit with us at Hoffmann Brothers University

Summer weekends at the farm is in full swing… 10/10

Brenda Hickey came by HBU to see the permanent memorial in honor of her late husband - and HB’s former Master Electrician - Mike Hickey. The world lost an incredible man.

My brother, Joe, checking out the line-up for “food truck Friday’s” at our office.

Things you should…

If your best field pros are also your most disengaged team members, you should ask yourself: are they being overworked, underappreciated, or both? High performers need growth paths, not burnout.
If your backlog of booked/sold work is growing but your install revenue isn’t, you should reprioritize your efforts to increase production output. More crews. Incentives to pick up extra shifts. Whatever it takes.
If you're running your leadership meetings without documented action items and follow-ups, you should ask whether you're running meetings—or just talking. Accountability is what turns strategy into execution.

Technology Corner

I am going to Pantheon. Here is why you should too.

Every year, I carve out time to attend events like Pantheon — not because I have extra time to spare, but because I believe the return on investment is real when approached the right way.

Here’s how I think about getting the most out of events like this:

First, half the value is in the event content. ServiceTitan has curated some fantastic sessions this year. A few I’m especially excited about:

Elevate Your Commercial Customer Experience: Delivering Unmatched Value for Customers
Exteriors: The Future of Roofing Software – What’s New and What’s Coming
Five Key Metrics to 10x Your Exteriors Business
Inside the Deal: Corporate Development Perspectives on M&A

These are practical, strategic, and highly relevant to where our business is going.

But the other half of the value? It comes from being intentional with the connections you make. And this work starts before you ever show up at the event.

If there are people you want to learn from, collaborate with, or build a relationship with — reach out in advance. Set up 30–60 minute meetings ahead of time, and come with a clear purpose for the conversation. Your peers are busy, and they’ll appreciate the clarity and respect you show for their time.

Don’t just “hope” to bump into the right people. Be proactive. Schedule with intent. Know what you want to learn — and from whom.

Pantheon is a high-leverage opportunity. The best operators in our industry will be there. If you plan ahead and show up with purpose, it can change your year.

#grateful to have ServiceTitan sponsoring this section of TPLT; Pantheon 2025 will be held Sept 17-19 in Anaheim, CA.

Real Estate

Your business + your real estate. How we built a 450,000 square foot portfolio.

At the same time we’ve been scaling our operating companies, we’ve also quietly built a 450,000 sq ft real estate portfolio under the banner of Deutschmann Lane Real Estate.

But here’s the key: We run our real estate business completely independently from our operating companies.

Why does that matter?

Because too many small business owners blur the lines — and end up making value-destroying decisions in the process. For example: using inflated rents from their operating business to “rescue” an underperforming real estate investment. That’s cross-subsidization, and it hides bad deals while distorting your operating margins.

At Deutschmann Lane, all lease agreements between affiliates are done at market rates. We believe real estate should be accretive on its own merits, not subsidized by the success of your core business.

When Does It Make Sense to Acquire Real Estate?

You plan to occupy the space for 5+ years.
Short-term ownership rarely pencils out.
You’re in a market with rising property values.
Look for signs of new development and growing business migration.
You’ll invest significant capital in build-out.
If the space is purpose-built for your needs, it’s worth owning.
You can afford the down payment without starving your operating business.
Don’t compromise your growth trajectory to buy dirt.

Unique Strategies That Unlock Value

Buy Multi-Tenant Properties
Lease out the extra space and expand into adjacent suites as you grow. Optionality + income.
Find Off-Market Opportunities
Drive neighborhoods, research public tax records, and knock on doors. The best deals don’t hit LoopNet.
Use Your Trade Advantage
If you're in HVAC or a construction-adjacent trade, offer “contingency-light” deals with fast closings. Speed + Certainty = Leverage.

Done right, real estate can be an incredible wealth-building engine for small business owners. But it requires discipline, independence, and long-term thinking.

If you’re thinking about a building purchase for your business —don’t just ask what it will cost. Ask what value it will create.

CyberNetic Labs - bringing powerful Agentic AI tools to the trades

Reimagining the marketing function at HB Solutions Group

At HB Solutions Group, we’re redefining what marketing means for a modern home services company.

This isn’t just a team that makes ads and writes copy. It’s a strategic growth engine — designed to drive performance across our brands, markets, and customer experiences.

We’ve built our approach around four integrated pillars, combining technology, systems, data, and brand-building. Here’s how it works:

4 Pillars + Our Network of Functional Experts

Pillar 1: Business Intelligence & Analytics

We lead with data.

Business Intelligence & Performance Analytics guide every decision—from ad spend and lead attribution to conversion rates and customer lifetime value.
We manage and optimize SEM, SEO, and all paid digital campaigns across Google, Meta, and more.
With Netic, we’ve launched AI-driven campaigns that autonomously drive bookings, renewals, and reactivations.
Our customer mobile app (coming soon!) brings scheduling, alerts, and engagement tools into the hands of 20,000+ members.
We manage relationships with SEO/SEM experts and oversee website strategy, build, and performance across all brands.

Pillar 2: Customer Experience Ops

Marketing doesn’t end when a customer clicks an ad. It extends through the entire experience.

We link directly with Dispatch and Customer Experience teams to ensure alignment between demand generation and capacity.
We track capacity goal achievement to ensure marketing is supporting real-time revenue targets—not just generating leads.
We lead with a “Netic First, Human Supported” mindset: AI handles routine interactions and escalates what matters.
The result? A seamless, responsive customer experience that converts more calls into completed jobs.

Pillar 3: Content Creation + Community

Our brand is built in the minds of customers—and the best brands educate, entertain, and inspire.

We manage an evergreen content calendar for consistent execution across platforms.
We produce blogs, videos, reels, shorts, internal training content, and more.
Our team executes brand-aligned social content, image creation, and repurposing across channels.
We show up in the real world through community events and sponsorships, reinforcing our commitment to the markets we serve.

Pillar 4: Integrations + Media

Marketing is a key lever in our acquisition and integration strategy.

We support marketing integration for acquired brands, ensuring a smooth transition and consistent brand experience.
We contribute to acquisition due diligence, evaluating the strength of local marketing operations and digital presence.
We lead media buying strategy across all supported brands, ensuring efficient spend and aligned messaging.

We’re building a marketing function that doesn’t just make noise—it creates value.

This is how HB Solutions Group markets.
This is how we grow.

Stay tuned as we go deeper into each pillar in future issues.

#grateful to have Cybernetic Labs sponsor this section of TPLT

Structuring our partnerships: win-win… win

We are searching for the RIGHT partners.

HB Solutions Group continues to look for partners who want to build their business the right way, and do it with people they like.

If you own an HVAC, plumbing, electrical or roofing service & retrofit business, please reply to this email if you want to explore what a partnership with HB Solutions Group could look like.

*We are looking for the following types of companies to partner with:

HVAC, plumbing, electrical or roofing industries
An owner who values the longevity + stewardship of their people & company
Over 50% of revenue from residential service & retrofit
Not too heavy into new construction (none is preferred)
Willing to embrace positive change to drive “wins” for shareholders, employees, and customers

Consumer Financing¹

Training your inside sales team to deliver results

What is one of the most underutilized levers in most home service businesses?

A well-trained inside sales team.

At HB Solutions Group, we’ve made it a priority to train our inside sales reps not just to make follow-up calls — but to close unsold options. Big ones.

Whether it’s an unsold HVAC replacement, a new roof, a sewer line, or even plumbing and electrical upgrades, our inside sales team plays a critical role across all business units in helping customers move from indecision to action.

Why It Matters

For high-dollar projects, customers often need time to process the information, consider their options, and talk to their families. That’s where our inside sales reps step in — not to pressure, but to support.

These aren’t cold calls. They’re opportunities to re-engage with homeowners who already know us, have received an estimate, and just need that final nudge of confidence and clarity.

Where Financing Comes In

For big-ticket jobs — like HVAC systems, sewer replacements, or full roof installations — financing is often the make-or-break factor.

That’s why our inside sales team is trained to confidently explain our financing options, helping homeowners understand what’s available, how it works, and how it can make urgent, necessary work more manageable.

In many cases, the difference between a “maybe” and a “yes” is the ability to spread payments out over time. It’s not about selling something people don’t need — it’s about removing a barrier to saying yes to something their home can’t function without.

The Bottom Line

A strong inside sales team does more than follow up. They:

Revive lost opportunities
Convert unsold estimates into booked work
Help customers afford what they need
Drive real revenue with empathy, not pressure

If you’re serious about growth, don’t overlook your inside sales team. Train them. Empower them. And give them the tools to help your customers — and your business — win.

#grateful to have GreenSky® Home Improvement sponsor this section of TPLT

¹ The views and opinions expressed here are owned by The Path Less Traveled and its author and may not reflect the views of GreenSky®

This Week’s Favorite Tweets

Friends of The Path Less Traveled

Who are the VENDORS that fuel our success?

MARKETING

Choosing a marketing agency that is both (1) competent and (2) CARES about your specific business is hard. Over the last 5 years, I have become great friends with the founder of RYNO Strategic Solutions, Chris Yano, and can say with confidence that his agency is among the few that I would trust with my own brands. If you are searching for a partner, put them on your list to evaluate. Send a note to Jeff Bowab at [email protected] and tell him that I sent you.

PAYROLL & HR

Inova Payroll & HR has been a partner to our companies for over 10 years. They have provided us with a payroll technology platform that has been able to keep pace with the demands of our fast-growing organization (now serving team members across 4 states). Inova’s platform works seamlessly with our CRM, ServiceTitan, and with our accounting back-end, Sage Intacct.

COACHING & TRAINING

If there is one organization - perhaps more than any other - that has fueled our growth over the last 10 years… that organization would be Nexstar Network. I like to say that Nexstar Network has built & refined a “process playbook” that touches on so many facets of our business. From dispatching, to call taking, to in-home customer service, to pricing methodologies and more. Don’t try and re-create the wheel… come and learn from the best. Becoming a member is a life changing opportunity.

#grateful for the “Friends of TPLT” sponsors in this section

Hey…I could use your help connecting with like-minded business leaders:

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