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Jan 25, 2016 · 19m · top-founders

How Moms Can Quit Corporate For Their Own Startup with Liz Picarazzi of CheckListHomeServices.com

Liz Piccarazzi · 9m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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Host Nathan Latka interviews Checklist Home Services founder Liz Piccarazzi, who discusses transitioning from corporate life at American Express to building a profitable home repair company and a hardware venture, CityBin. Liz provides an inside look at her company's unit economics, operational overhead, and deliberate commitment to employing full-time W-2 craftspeople.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 46.7% of the talking time here. How this is scored →

Nathan as informed peer 4.6 Guest teaching 4.1 Guest disagreement 0.3 Nathan pushing back 1.1
05100:0010:000:57–3:43 · Nathan as informed peer 6/10 Introducing Liz Piccarazzi and Checklist Home Services Nathan introduces the guest and draws an informed parallel to a previous guest who brought customer service to the lawn care industry. Liz agrees and shares her personal background in loyalty marketing and trades.3:43–6:34 · Nathan as informed peer 4/10 How Checklist Home Services Works for Customers Nathan asks operational questions regarding quoting workflows and monthly volume. Liz provides concrete details on handling 65 jobs per month with in-house W-2 craftsmen.6:34–8:42 · Nathan as informed peer 6/10 Pricing Structure, Handyman Pay, and Supply Revenue Nathan drills into the unit economics, calculating labor cost deductions on a typical $400 half-day job. Liz corrects his average ticket estimate down from $550 to $400 and details her supply markup margins.8:43–11:21 · Nathan as informed peer 6/10 Operational Overhead, Insurance, and Net Profit Margins Nathan presses on overhead and bottom-line margin per ticket. Liz walks through the hefty cost of workers' comp insurance at 20 percent of payroll, establishing net profit around $60 to $75 per job.11:22–14:04 · Nathan as informed peer 5/10 Bootstrapping CityBin and Leaving Corporate Life Nathan presses Liz on the capital invested into her second venture CityBin, guiding her to disclose over $60k to $75k invested after leaving a six-figure job at AmEx.14:06–16:24 · Nathan as informed peer 2/10 Transition to the Famous Five Rapid-Fire Segment Nathan begins the Famous Five rapid fire segment. Liz shares a detailed recommendation of Paul Downs' book Boss Life.16:25–18:28 · Nathan as informed peer 3/10 Famous Five: Studying Managed by Q's W2 Model Liz delivers a clear industry insight regarding Managed by Q and why choosing a W-2 employment model over 1099 mitigates worker misclassification litigation. Nathan wraps up with rapid-fire questions.0:57–3:43 · Guest teaching 3/10 Introducing Liz Piccarazzi and Checklist Home Services Nathan introduces the guest and draws an informed parallel to a previous guest who brought customer service to the lawn care industry. Liz agrees and shares her personal background in loyalty marketing and trades.3:43–6:34 · Guest teaching 4/10 How Checklist Home Services Works for Customers Nathan asks operational questions regarding quoting workflows and monthly volume. Liz provides concrete details on handling 65 jobs per month with in-house W-2 craftsmen.6:34–8:42 · Guest teaching 4/10 Pricing Structure, Handyman Pay, and Supply Revenue Nathan drills into the unit economics, calculating labor cost deductions on a typical $400 half-day job. Liz corrects his average ticket estimate down from $550 to $400 and details her supply markup margins.8:43–11:21 · Guest teaching 5/10 Operational Overhead, Insurance, and Net Profit Margins Nathan presses on overhead and bottom-line margin per ticket. Liz walks through the hefty cost of workers' comp insurance at 20 percent of payroll, establishing net profit around $60 to $75 per job.11:22–14:04 · Guest teaching 3/10 Bootstrapping CityBin and Leaving Corporate Life Nathan presses Liz on the capital invested into her second venture CityBin, guiding her to disclose over $60k to $75k invested after leaving a six-figure job at AmEx.14:06–16:24 · Guest teaching 4/10 Transition to the Famous Five Rapid-Fire Segment Nathan begins the Famous Five rapid fire segment. Liz shares a detailed recommendation of Paul Downs' book Boss Life.16:25–18:28 · Guest teaching 6/10 Famous Five: Studying Managed by Q's W2 Model Liz delivers a clear industry insight regarding Managed by Q and why choosing a W-2 employment model over 1099 mitigates worker misclassification litigation. Nathan wraps up with rapid-fire questions.0:57–3:43 · Guest disagreement 0/10 Introducing Liz Piccarazzi and Checklist Home Services Nathan introduces the guest and draws an informed parallel to a previous guest who brought customer service to the lawn care industry. Liz agrees and shares her personal background in loyalty marketing and trades.3:43–6:34 · Guest disagreement 0/10 How Checklist Home Services Works for Customers Nathan asks operational questions regarding quoting workflows and monthly volume. Liz provides concrete details on handling 65 jobs per month with in-house W-2 craftsmen.6:34–8:42 · Guest disagreement 1/10 Pricing Structure, Handyman Pay, and Supply Revenue Nathan drills into the unit economics, calculating labor cost deductions on a typical $400 half-day job. Liz corrects his average ticket estimate down from $550 to $400 and details her supply markup margins.8:43–11:21 · Guest disagreement 0/10 Operational Overhead, Insurance, and Net Profit Margins Nathan presses on overhead and bottom-line margin per ticket. Liz walks through the hefty cost of workers' comp insurance at 20 percent of payroll, establishing net profit around $60 to $75 per job.11:22–14:04 · Guest disagreement 0/10 Bootstrapping CityBin and Leaving Corporate Life Nathan presses Liz on the capital invested into her second venture CityBin, guiding her to disclose over $60k to $75k invested after leaving a six-figure job at AmEx.14:06–16:24 · Guest disagreement 0/10 Transition to the Famous Five Rapid-Fire Segment Nathan begins the Famous Five rapid fire segment. Liz shares a detailed recommendation of Paul Downs' book Boss Life.16:25–18:28 · Guest disagreement 1/10 Famous Five: Studying Managed by Q's W2 Model Liz delivers a clear industry insight regarding Managed by Q and why choosing a W-2 employment model over 1099 mitigates worker misclassification litigation. Nathan wraps up with rapid-fire questions.0:57–3:43 · Nathan pushing back 0/10 Introducing Liz Piccarazzi and Checklist Home Services Nathan introduces the guest and draws an informed parallel to a previous guest who brought customer service to the lawn care industry. Liz agrees and shares her personal background in loyalty marketing and trades.3:43–6:34 · Nathan pushing back 1/10 How Checklist Home Services Works for Customers Nathan asks operational questions regarding quoting workflows and monthly volume. Liz provides concrete details on handling 65 jobs per month with in-house W-2 craftsmen.6:34–8:42 · Nathan pushing back 2/10 Pricing Structure, Handyman Pay, and Supply Revenue Nathan drills into the unit economics, calculating labor cost deductions on a typical $400 half-day job. Liz corrects his average ticket estimate down from $550 to $400 and details her supply markup margins.8:43–11:21 · Nathan pushing back 2/10 Operational Overhead, Insurance, and Net Profit Margins Nathan presses on overhead and bottom-line margin per ticket. Liz walks through the hefty cost of workers' comp insurance at 20 percent of payroll, establishing net profit around $60 to $75 per job.11:22–14:04 · Nathan pushing back 2/10 Bootstrapping CityBin and Leaving Corporate Life Nathan presses Liz on the capital invested into her second venture CityBin, guiding her to disclose over $60k to $75k invested after leaving a six-figure job at AmEx.14:06–16:24 · Nathan pushing back 0/10 Transition to the Famous Five Rapid-Fire Segment Nathan begins the Famous Five rapid fire segment. Liz shares a detailed recommendation of Paul Downs' book Boss Life.16:25–18:28 · Nathan pushing back 1/10 Famous Five: Studying Managed by Q's W2 Model Liz delivers a clear industry insight regarding Managed by Q and why choosing a W-2 employment model over 1099 mitigates worker misclassification litigation. Nathan wraps up with rapid-fire questions.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 68.3% · guest 31.7%0:00 · Nathan 68.3% · guest 31.7%3:00 · Nathan 30.6% · guest 69.4%3:00 · Nathan 30.6% · guest 69.4%6:00 · Nathan 37.6% · guest 62.4%6:00 · Nathan 37.6% · guest 62.4%9:00 · Nathan 26% · guest 74%9:00 · Nathan 26% · guest 74%12:00 · Nathan 66.7% · guest 33.3%12:00 · Nathan 66.7% · guest 33.3%15:00 · Nathan 28.8% · guest 71.2%15:00 · Nathan 28.8% · guest 71.2%18:00 · Nathan 84.4% · guest 15.6%18:00 · Nathan 84.4% · guest 15.6%
Sharpest disagreement ▶ 7:15 Liz corrects ticket price expectation

When Nathan assumes her average job ticket is around $550, Liz pushes back to correct him that half-day jobs bring the average down to about $400.

 Hardest push from Nathan ▶ 12:01 Nathan forces a concrete dollar figure on CityBin

When Liz gives vague answers regarding her investment into CityBin, Nathan directly pushes with a forced choice of whether it is more or less than $50,000.

 Biggest teaching moment ▶ 16:50 Liz breaks down W-2 compliance strategy in gig economy

Liz educates listeners and the host on how avoiding the 1099 independent contractor trap shields home service and on-demand startups from severe misclassification litigation.

 Nathan holds their own ▶ 3:19 Nathan cites previous founder case study

Nathan demonstrates broad domain knowledge by citing a previous founder episode in the lawn care sector to validate Liz's customer experience thesis in home services.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Introducing Liz Piccarazzi and Checklist Home Services 6300 Nathan introduces the guest and draws an informed parallel to a previous guest who brought customer service to the lawn care industry. Liz agrees and shares her personal background in loyalty marketing and trades.
How Checklist Home Services Works for Customers 4401 Nathan asks operational questions regarding quoting workflows and monthly volume. Liz provides concrete details on handling 65 jobs per month with in-house W-2 craftsmen.
Pricing Structure, Handyman Pay, and Supply Revenue 6412 Nathan drills into the unit economics, calculating labor cost deductions on a typical $400 half-day job. Liz corrects his average ticket estimate down from $550 to $400 and details her supply markup margins.
Operational Overhead, Insurance, and Net Profit Margins 6502 Nathan presses on overhead and bottom-line margin per ticket. Liz walks through the hefty cost of workers' comp insurance at 20 percent of payroll, establishing net profit around $60 to $75 per job.
Bootstrapping CityBin and Leaving Corporate Life 5302 Nathan presses Liz on the capital invested into her second venture CityBin, guiding her to disclose over $60k to $75k invested after leaving a six-figure job at AmEx.
Transition to the Famous Five Rapid-Fire Segment 2400 Nathan begins the Famous Five rapid fire segment. Liz shares a detailed recommendation of Paul Downs' book Boss Life.
Famous Five: Studying Managed by Q's W2 Model 3611 Liz delivers a clear industry insight regarding Managed by Q and why choosing a W-2 employment model over 1099 mitigates worker misclassification litigation. Nathan wraps up with rapid-fire questions.

Statements from this episode (8)

Assertion Not checkable as stated
Checklist Home Services completed 65 jobs in a single month
“So we completed 65 jobs.”
Liz Piccarazzi Jan 25, 2016 ▶ 5:01
Disclosure
Piccarazzi: Checklist charges $395 to $725 across half-day and full-day tiers
“So the handyman for a half day in Brooklyn and Queens is 395. The half day in Manhattan is 500. And then our most common service purchased is the handyman for a day, which in Brooklyn and Queens is five 95 and in Manhattan is seven 25.”
Liz Piccarazzi Jan 25, 2016 ▶ 6:47
Disclosure
Piccarazzi: Checklist pays handymen between $15 and $35 per hour
“So the handyman gets paid we benchmarked against other craftsmen in the field and they get paid anywhere from 15 to 35 dollars an hour, depending on their level of experience and the level of responsibility they take in the job.”
Liz Piccarazzi Jan 25, 2016 ▶ 7:39
Disclosure
Piccarazzi: Checklist marks up supplies by 25% for additional revenue
“No supplies are additional. And that is a little bit of a revenue stream for us because we mark up supplies by 25%.”
Liz Piccarazzi Jan 25, 2016 ▶ 8:19
Disclosure
Piccarazzi: Supply markup accounts for 4% to 5% of Checklist's revenue
“I would say very small, maybe four to five percent of our revenue.”
Liz Piccarazzi Jan 25, 2016 ▶ 8:36
Disclosure
Piccarazzi: Workers' comp takes 20% of Checklist Home Services payroll
“I pay workers' compensation, which is 20% of payroll. Nathan Latka: Wow. Liz Piccarazzi: So 20 cents on every dollar goes straight to workers' compensation.”
Liz Piccarazzi Jan 25, 2016 ▶ 9:23
Disclosure
Piccarazzi: Checklist Home Services nets $60 to $75 per $400 job
“I would say that net profit on a 400 dollar job would be about 60 to 75 dollars.”
Liz Piccarazzi Jan 25, 2016 ▶ 11:02
Opinion
Piccarazzi chose W-2 employees over 1099 subcontractors to avoid litigation
“And what I find fascinating about them is like checklist. They chose a W two employee model instead of a 1099 subcontractor model. And I think that them and checklist that we made the correct decision. If you look at all of the litigation against 10 99 employe…”
Liz Piccarazzi Jan 25, 2016 ▶ 16:59
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