He Started a Business and Ended Up on the Brink of Bankruptcy. He Fixed His Mistakes – and Now Teaches Entrepreneurs What He Wishes He Knew When Starting Out. Discover how Joe Crisara transformed decades of trial and error in the home services industry into a blueprint for success.
Key Takeaways
- Educating customers on pricing builds trust and often diffuses objections before they even come up.
- Nail your solo process and ensure profitability before hiring, then hand it off to your first team member.
- Own your reviews, both good and bad. Use positive feedback to fuel culture and negative reviews as free consulting that helps you evolve.
Opinions expressed by Entrepreneur contributors are their own.
Joe Crisara didn't set out to be a business coach. Like most tradespeople, he started with a toolbox, some hands-on skills and the dream of working for himself. But six years into running his own company, he found himself $471,000 in debt and on the brink of bankruptcy. That's when a loyal customer — someone who'd seen how the stress took a toll on Crisara — finally asked, "How's it really going?"
That simple, gut-punch of a question became a turning point.
Crisara realized he wasn't just selling parts or labor. He was in the business of trust, confidence and peace of mind. Once he owned his mistakes, Crisara spent decades learning how to fix them — not just for himself, but for thousands of other service providers across the country. He founded Service MVP, a podcast and membership community, to provide contractors with the sales training and support he wished he had when he was first starting out.
One of Crisara's biggest lessons is to stop thinking of your work as a line item. Customers assume they're paying for a part or a few hours of labor, but Crisara insists the parts are free: "I always tell people…100% of what you're putting out there is your service. That's the product. You are only providing service, and the parts are free."
Crisara encourages service providers to educate customers on their pricing structure. When done right, this kind of conversation doesn't feel like a sales pitch. It actually builds trust and often diffuses price objections before they even come up. "It's a burden that the service provider carries," he says. "It's your job to give that 30-second economics lesson to customers when they start to take you down a path that draws you into doing substandard work at a lower price."
When it comes to pricing, Crisara doesn't sugarcoat it. He breaks down the ideal service business like this:
- Labor: 20%
- Materials: 20%
- Overhead: 35%
- Profit: 25%
"Profit takes courage," he says. "If you're living paycheck to paycheck and you're waiting for the next thing to happen to make you successful, most likely it's not gonna come when you need it. It's very risky to operate that way."
Related: This Local Bakery Has Lines Out the Door. Here Are the Secrets to Its Success.
In Crisara's view, profit isn't about accumulating wealth. It's the fuel that powers everything else: better tools, better training, better service. "My advice [is] to reinvest some of that profit into a better customer service experience that inspires customers to want to turn you into their champion so they can refer you to their friends and family."
Over his 48-year career, Crisara has learned that the customer experience is everything. He emphasizes that contractors need to invest in communication tools to make the experience seamless, from the first phone call to follow-up after a service. "When you answer the phone, you gotta make people smile," he says.
Crisara often answers the phone with, "It's a great day at Service MVP, how can I make you smile today?" It might feel small, but that first impression sets the tone.
Building trust starts long before you get to the job site. For Crisara, customer service begins with that very first phone call. When consulting with a client, he reminds himself of two goals: "One is that these people are gonna get care, respect and support. For me, that's my [first goal.] My second thing is, I don't need to be accepted. So if they don't want my [service], I'm not gonna be sad or let down or angry. They're not a good fit for me."
According to Crisara, this attitude allows you to focus on providing great service, rather than closing the sale. People can sense that level of confidence, which he believes is the key to successful customer interactions.
Related: Want to Work With Influencers? Here's What Small Business Owners Need to Know.
When it comes to expanding your business, Crisara says the first step is making your solo operation consistent, efficient and profitable. "You are the prototype for the customer service experience that you're gonna train other people to do. So number one, perfect the customer experience," he says.
Your first hire should be someone who can mirror your standard, not just take tasks off your plate. Crisara believes this is where many small business owners stumble: They hire too early or without a plan, and suddenly they're training someone to follow a broken system.
"The bigger the staff you have, the higher the overhead that's gonna be in place, and the prices are gonna increase as soon as you hire more people," Crisara says. "Profit allows us the indulgence of hiring coworkers who can actually do the work instead of [you]."
Finally, Crisara emphasizes the value of customer feedback. Good reviews boost morale, but bad ones can be even more valuable if you're willing to listen. "One bad review can be worth $12,000 in free business consulting," he says. "Good reviews are for vanity…bad reviews are for sanity. They're there to help us improve."
Crisara encourages business owners to respond with sincerity: Thank the reviewer for taking the time, acknowledge how they felt and offer a path to resolution.
"Sometimes the bad reviews are a better way to help you respond," he says. "I'm not saying you want to get all bad reviews, but if you get a small percentage of bad reviews, take the opportunity to show what you're made of and what your value system is, and don't get into negativity."
Related: 5 Secrets to Success From a Sustainable Business That's Grown 95% in 3 Years
Crisara's advice boils down to a few simple but powerful truths:
- Make people smile from the first phone call
- Always ask for what you're worth
- You're providing a service, not parts
- Build your business like you're training a future team
- Don't fear your mistakes — learn from them
Watch the episode above and subscribe to Behind the Review for more from new business owners and reviewers every Tuesday.
Editorial contributions by Jiah Choe and Emily Moon
