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#9 Profit vs Purpose. You Don't Have to Compromise.

#9 Profit vs Purpose. You Don't Have to Compromise.

Profitability and purpose aren’t opposing forces—they’re mutually reinforcing. In this edition, I share why strong financial results are what enable us to invest in our people, pursue growth, and stay independent. Purpose without profit is fragile—but when the two work together, that’s when a company becomes unstoppable.

Christopher Hoffmann
October 06, 2025 • Estimated Reading Time: 18 minutes

In Today’s Newsletter

Moving beyond private equity
Things you should do…
My Pantheon highlight reel
Profits fuel your purpose; don’t forget that
CyberNetic Labs deepening ties with Nexstar Network
Dinner with GreenSky’s President
Favorite Tweets from the past week

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What’s on my mind?

Moving Beyond Private Equity

Prior to last week’s Super Meeting, Nexstar Network made a bold and inspiring move: it announced the removal of private equity-backed companies from its core membership.

This decision isn’t just a shift in policy—it’s a return to purpose. At its core, Nexstar exists to turn the world’s best tradespeople into the world’s best businesspeople. That mission can only be fully realized in an environment focused on long-term value creation—not short-term financial engineering.

Since the announcement, I’ve been flooded with notes from members—new and old—expressing their gratitude and excitement. Many echoed the same sentiment: “I’ve been waiting for this.”

For those who want to build something worth keeping, not just flipping, this is a massive step in the right direction.

Why This Matters

Nexstar members are wired differently. They’re builders. They’re craftspeople. They’re committed to growth, excellence, and community—not just exit multiples.

By removing private equity from the room, we also remove the background noise. No more endless conversations about EBITDA multiples or when to sell. Instead, we can get back to the questions that matter:

How do I build a culture that lasts?
How do I develop my team into leaders?
How do I create a business that serves my customers, team, and community for decades to come?

This is a win for those on the path of purpose-driven ownership.

Why Nexstar Can Do This

This decision wasn’t made lightly—and it wasn’t made from a place of scarcity. Nexstar Network is financially healthy, mission-aligned, and led by an incredible team.

The organization has a robust balance sheet and a strong investment reserve. This financial strength gave them the ability to prioritize mission over money.
Nexstar’s leadership, coaches, and trainers are the best they’ve ever been—focused, energized, and deeply aligned with this new direction.
At Super Meeting, I was struck by the number of new members who joined as soon as market availability opened. I had no fewer than 10 people say, “I’ve been waiting 8+ years to join.”

That’s how coveted and respected Nexstar’s community has become. And now, it’s even more exclusive—reserved for those who are walking the same path, facing the same challenges, and pursuing the same long-term goals.

The Future Is Bright

Nexstar’s decision to move beyond private equity is not a step back. It’s a leap forward—into deeper alignment with its founding mission and its most committed members.

For those of us building companies we want to own for the long-haul, it’s a welcome shift.

Cheers to what comes next. The future of Nexstar is brighter than ever, and I’m grateful to be on this journey.

— Chris

Enjoyed one heck of a hog roast out at the farm with friends in October.

Patriotism was on full display at the Broncos vs Bengals game in Denver. Enjoyed this time together with members of Nexstar Network.

We introduced our new baby bull, Charlie, to the girls. Baby highland miniatures coming 2027.

A picturesque 5:30am morning view from the 2nd floor landing at the barn. Steam rising from the lake.

Walker Deibel put together at 10/10 event at the Buy Then Build Summit; with over 200 entrepreneurs, investors, and aspiring entrepreneurs descending on Saint Louis.

A “CNN debate-like” session at Pantheon: Family Business vs Private Equity, moderated by Connor Thielman. Enjoyed being on stage with both Tommy and Connor.

We are proud partners of the Saint Louis City SC, and grateful for the team’s hospitality as we attended an away game in Montreal - bringing home a decisive victory!

Things you should…

If you shy away from discussing the importance of profits in your business because you think it won’t be received well by your team, you should lean in here and connect the dots between your company’s profits, and your ability to deliver wins for both your team members and your customers. While Profits certainly are not the Purpose of our company, Profits do remain essential for our survival and independence.
If you hide your financial results from your team, you should become an “open book” organization. Your financials are the “scoreboard”, and nobody likes playing a football game without being able to see the score.
If you’ve been on the receiving end of countless price increases across all equipment and material lines over the last 5 years, you should be asking your vendors to sharpen their pencils in 2025. I know of many dealers receive double-digit decreases in their HVAC equipment pricing.

Can you do me a favor?

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Technology Corner with ServiceTitan

Three Big Takeaways from ServiceTitan’s 2025 Pantheon

I just got back from Anaheim, where ServiceTitan hosted its 2025 Pantheon event—and I can say with confidence: this is the must-attend event for anyone building in the trades.

Here are three highlights that stood out:

1. ServiceTitan Is All-In on AI

If there was one theme that dominated Pantheon, it was this: AI isn’t coming—it’s here.

ServiceTitan announced they’ll be investing over $300 million to bring transformative AI tools to their customers. This is more than just buzzwords. It’s a commitment to build practical, operationally impactful solutions that can automate tasks, enhance customer experiences, and drive real-world efficiency for contractors.

From intelligent dispatching to real-time quoting, AI is set to become a force multiplier for teams in the field and the office alike. It’s exciting—and it’s happening fast.

2. Pantheon Is the Premier Industry Event

Pantheon has become the event for the residential and commercial services world.

Roofing, HVAC, plumbing, electrical, landscaping, irrigation, pest control—you name the trade, they were there. The energy, the content, and the connections were second to none.

I’ve attended dozens of industry events over the years, but Pantheon now sits firmly at the top of my list. If there’s one event I won’t miss in 2026—it’s this one.

3. Family Business > Private Equity (Change My Mind)

One of the most talked-about moments of Pantheon?

The CNN-style debate between two competing ownership philosophies: Private Equity (represented by my buddy Tommy Mello) and Family Business (represented by yours truly).

Moderated by ServiceTitan’s Connor Theilmann, it was a lively, candid, and occasionally heated back-and-forth on what truly builds sustainable, values-driven companies in the trades.

Here’s my take: family business, done right, always beats the transactional PE model.

Long-term value creation OVER short-term valuation. People AND Profits (not OR).

I can’t wait for the debate video to be released—so the world can decide who took the win. (Though let’s be honest… I like my odds.)

#grateful to have ServiceTitan sponsoring this section of TPLT

CEO: Growth Mindset

Profits Are Not the Problem—They’re the Answer

Let’s talk about a word that sometimes makes people uncomfortable: profits.

In too many people-focused organizations—especially those that are privately held—profit gets treated like a dirty word. As if caring deeply about your team, your customers, or your mission somehow requires you to apologize for running a profitable business.

Let’s set the record straight: profits are not at odds with purpose. In fact, they are the engine that allows you to fully realize your purpose.

Want to improve benefits? Raise wages? Offer world-class training? Invest in leadership development? Expand into new markets? Roll out game-changing technology?

None of that happens without profits.

Profits Create Freedom

In a competitive industry like ours—where private equity is rapidly consolidating the landscape—profit is what allows a family-owned business to survive and stay independent. It’s what gives you the margin to weather downturns, outmaneuver competitors, and double down on what makes your company special.

When you’re profitable, you don’t have to compromise. You can reinvest in your people. You can experiment. You can grow—on your terms.

Purpose + Profit = Power

Too often, family-owned businesses fall into the trap of using private ownership as an excuse for underperformance. “We’re not like the big guys,” they say. “We don’t have their resources.”

But here’s the truth: you don’t need their money if you build your business the right way. In fact, your private ownership is your superpower. You can make decisions based on what’s best for the long haul—not what looks good in a quarterly board deck.

When done right, being a privately held, people-focused company should be the reason you outperform your private equity-owned counterparts—not the excuse for why you don’t.

Don’t Be Afraid of Profit—Pursue It Boldly

If you care about your people, your mission, and your long-term impact—then you should care about profit.

Not as an end in itself, but as the fuel that powers your purpose.

So let’s stop whispering the word “profit” and start saying it with pride. Because when used well, profit is not the problem—it’s the answer.

— Chris

At HB Solutions Group, our commitment to long-term, purpose-driven private ownership starts at home. We believe people & profits both matter, and prioritize relationships over ego, and vision over short-term gain.

If you're a business owner looking to transition your life's work to a team that will care for it like family — we’d love to talk.

CyberNetic Labs - bringing powerful Agentic AI tools to the trades

Nexstar + CyberNetic Labs: A Partnership That’s Bringing Real AI to the Trades

In the past year, it feels like everyone has slapped the letters “AI” onto their product. Every software company, every startup, every sales pitch—suddenly, it’s all “AI-powered.”

But as anyone who’s spent time evaluating these tools knows, most of what’s out there is smoke and mirrors. The hard truth? A lot of so-called AI is just old automation dressed up with a new label.

That’s what makes this announcement different—and exciting.

Nexstar Network + CyberNetic Labs (Netic)

Nexstar Network has announced a new collaboration with CyberNetic Labs, otherwise known as “Netic”, to bring advanced agentic AI tools to its member companies.

This is a big deal.

In a crowded AI landscape, Nexstar has done the diligence—and determined that Netic is the real deal. After months of pilot programs and integration work, they’ve chosen to deepen their relationship with CyberNetic Labs because Netic delivers something that most tools don’t:

High impact: AI that actually drives revenue, improves booking rates, and enhances the customer experience.
High touch: A partner that works hand-in-hand with member companies to ensure successful implementation and meaningful outcomes.

What This Means for Nexstar Members

For Nexstar members, this collaboration represents a massive step forward. The Netic platform allows contractors capture more calls all while staying true to the operational nuances that make each business unique.

This isn’t “AI for AI’s sake.” It’s AI that works in the real world—the kind that helps businesses grow, serve customers better, and empower their teams.

The Future Is Here

Nexstar Network’s mission has always been to turn the world’s best tradespeople into the world’s best businesspeople. This partnership with CyberNetic Labs is the next evolution of that mission.

I’m excited to see the transformation that will unfold across Nexstar member companies in the months and years ahead. When the right technology meets the right community, big things happen.

And make no mistake—this is one of those moments.

— Chris

#grateful to have Cybernetic Labs sponsor this section of TPLT

Consumer Financing¹

A Dinner Conversation That Reinforced Why Partnerships Matter

This past month, I had the opportunity to have dinner with Jesse Davis, President of GreenSky, and it reminded me just how important strong partnerships are to the success of our business—and to the experience we deliver to our customers.

As we talked over dinner (at one of my favorite STL restaurants: Pastaria), a few things stood out that are worth sharing.

1. They Care

It’s not every day that the President of a major financial technology company takes the time to sit down with one of their customers to better understand their needs. But that’s exactly what Jesse did.

That kind of engagement says a lot about the culture at GreenSky. They genuinely care about the contractors they serve, and they’re invested in building long-term relationships—not just processing transactions.

2. They’re Growing the Right Way

In today’s world, growth often comes with shortcuts. Not so with GreenSky. Jesse shared how their team is growing strategically—responsibly—in ways that ensure they’ll be here to support both our business and our customers for many years to come.

As our industry continues to evolve, it’s reassuring to know that one of our key partners is taking a sustainable approach to growth—balancing innovation with the kind of financial discipline that leads to lasting success.

3. They Listen

What impressed me most was Jesse’s focus on listening. He didn’t just want to hear what was working well—he wanted to understand where we experience friction. The conversation wasn’t about defending a product; it was about improving it.

Even better, Jesse came to the table with ideas and solutions—ways to make financing even easier for our customers and more efficient for our teams. That kind of responsiveness is rare, and it’s a big part of why GreenSky continues to earn our trust.

At the end of the day, partnerships like the one we have with GreenSky are what allow us to continue improving how we serve our customers.

It’s easy to talk about innovation, technology, and growth. But behind every great partnership are people—people who care, listen, and are committed to doing things the right way.

Jesse and the team at GreenSky embody that mindset, and I’m grateful for the work we’re doing together.

— Chris

#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, 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. Don’t try and re-create the wheel… come and learn from the best. Reach out to my friend Kara Schuster at [email protected] and tell her that I sent you.

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

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