This week on The Flywheel Effect, host Brennan Sonnek-Schmelz welcomes Hagan Kappler, CEO of Daisy. Hagan discusses her transition from leading large franchise organizations like ServiceMaster and Threshold Brands to building a national brand in the custom integration industry.

Hagan explains the challenges and opportunities she sees in the fragmented CI market. She emphasizes the need for a service-oriented approach, drawing parallels to successful models in industries like pest control and home cleaning. She argues that recurring revenue streams will increase business value for integrators.

Hagan also discusses the importance of investing in employees. She highlights Daisy's commitment to providing excellent benefits, training opportunities, and career paths for technicians. Hagan believes a people-first approach is not just ethical but crucial for long-term business success in a tight labor market.

Guest-at-a-Glance
💡 Name: Hagan Kappler

Key Insights

The Untapped Potential of Recurring Revenue in Custom Integration

Hagan emphasizes that the custom integration industry currently lacks a strong service-based model. She sees a huge opportunity to build recurring revenue streams through regular maintenance, upgrades, and troubleshooting. By shifting from a purely project-based approach to one that prioritizes long-term customer relationships, integrators can significantly enhance the value of their businesses. This model also creates more consistent and predictable income, a key factor in attracting investment and driving higher valuations.

A People-First Approach Is Essential for Attracting and Retaining Technicians

Hagan highlights the intense competition for skilled technicians in the CI industry. She argues that companies need to go beyond simply offering competitive salaries and prioritize employee well-being. Providing comprehensive benefits, investing in training and development, and creating clear career paths are essential to becoming an employer of choice. This approach not only reduces costly turnover but also cultivates a more engaged and productive workforce.

Data Transparency and Operational Efficiency Are Key to Building a Valuable Business

Hagan emphasizes that many independent integration businesses lack the data and systems needed to operate efficiently and demonstrate their true value to potential buyers. Implementing standardized financial tracking, using tools like CRMs, and establishing clear processes not only improve day-to-day operations but also create a more attractive asset for acquisition. This shift from a reliance on the owner's knowledge to a data-driven approach is crucial for long-term growth and creating generational wealth.