E-250 Pool Nation Podcast - How to Build a 5-Star Pool Business: Rick Harvey & Alicia Stephens with Biolab

Building a Five-Star Pool Business: Expert Insights from Industry Leaders

In the competitive world of pool service, the difference between running a simple route and building a thriving business empire often comes down to one thing: understanding the fundamentals of business growth. In a recent episode of the Pool Nation Podcast, industry veterans Rick Harvey and Alicia Stephens from BioLab shared invaluable insights on how pool professionals can transform their operations from basic service routes into profitable, scalable enterprises.

With summer in full swing and the pool industry busier than ever, there's never been a better time to focus on the business side of pool service. As the hosts noted, the industry landscape has changed dramatically, and the old patterns of seasonal breaks are becoming a thing of the past.

You know, I used to say like summer from like our side of the business was when we got to take a breath and take a break because all the professionals are super busy. We could just step back for a minute and it seems like we never get the break anymore. It's just like full tilt all the time.

— Host, Pool Nation Podcast

From Route to Empire: The Business Evolution

One of the most significant challenges facing pool service professionals is understanding when and how to transition from simply managing a route to building a comprehensive business. The upcoming Pool Nation Conference will address this critical transition with a dedicated class called "Turning Pools into Profits: How to Build a Business, Not Just a Route."

This evolution requires pool professionals to understand different phases of business growth and what specific knowledge becomes crucial at each stage. Whether it's financial literacy, leadership skills, or operational efficiency, successful pool business owners must develop competencies that extend far beyond water chemistry and equipment maintenance.

The key is recognizing that a sustainable pool business should be built to run without constant owner involvement. This shift in mindset—from being the business to owning the business—represents the fundamental difference between successful entrepreneurs and those who remain trapped in self-employment.

The Power of Financial Intelligence

Perhaps no aspect of business management is more critical—or more overlooked—than financial literacy. The Pool Nation Conference will feature multiple sessions dedicated to helping pool professionals understand and leverage their financial data, including "Turn Metrics into Money: What Your Financials Are Telling You" and "Know Your Costs, Grow Your Profits."

Understanding the difference between revenue, gross profit, and net profit isn't just accounting jargon—it's the foundation of making informed business decisions. Many pool service professionals excel at the technical aspects of their work but struggle with the financial side, often leading to pricing decisions based on gut feeling rather than data-driven analysis.

To address this gap, the Pool Nation team is developing a practical tool that will simplify financial calculations for pool professionals. This resource will allow business owners to input their numbers and automatically calculate gross profit, net profit, and other crucial metrics, making financial management more accessible and actionable.

Cash Flow vs. Profit: A Critical Distinction

One of the most important concepts for pool business owners to understand is the difference between profit and cash flow. A business can be profitable on paper while still experiencing cash flow problems, and conversely, a business might have positive cash flow while not being truly profitable when all costs are considered.

This distinction becomes particularly important in the pool service industry, where seasonal fluctuations, equipment purchases, and varying payment cycles can create complex cash flow patterns. Understanding these dynamics helps business owners make better decisions about expansion, equipment purchases, and operational investments.

The upcoming conference session "Profit is Not Cash" will dive deep into these concepts, providing pool professionals with the knowledge they need to maintain healthy cash flow while building long-term profitability.

Planning Your Exit Strategy

While it might seem premature to think about exiting a business you're still building, smart entrepreneurs understand that planning for the future is essential for creating real value. The conference session "Financial Planning and Exit Strategy: How to Build Value and Prepare for the Future" addresses this often-overlooked aspect of business planning.

So we really just want to help people understand that you can create a business that runs without you and how you can plan to exit on your own terms. I think a lot of people get to that point where they haven't put a lot of thought into that. And then that day comes faster than expected.

— Host, Pool Nation Podcast

Building a business with an exit strategy in mind doesn't mean you're planning to leave immediately—it means you're building something of genuine value. A business that can operate successfully without its founder is more valuable, more stable, and more attractive to potential buyers or partners.

This approach also provides business owners with more options. Whether you want to sell, pass the business to family members, or simply step back from day-to-day operations while maintaining ownership, having systems and processes in place makes all of these scenarios possible.

Industry Events and Networking Opportunities

The pool industry continues to evolve, and staying connected with peers and industry developments is crucial for success. The upcoming Pool Nation Awards and Conference represent significant opportunities for professional development and networking.

Nominations for the Pool Nation Awards, believe it or not, are about three weeks away because this year the show is in October. So, we have to push everything up.

— Edgar De Jesus, Pool Nation Podcast

These events provide platforms for pool professionals to learn from industry leaders, discover new products and techniques, and build relationships that can drive business growth. The networking opportunities alone can be invaluable, as connections made at industry events often lead to partnerships, referrals, and new business opportunities.

The PSP Expo will feature multiple Pool Nation initiatives, including the $10,000 Pool Pro Challenge, the Pool Nation Awards ceremony, and the comprehensive Pool Nation Conference. This concentration of educational and networking opportunities represents a significant investment in professional development for attendees.

Conclusion: Building for Long-Term Success

Success in the pool service industry requires more than technical expertise—it demands business acumen, financial literacy, and strategic thinking. The insights shared by Rick Harvey and Alicia Stephens, combined with the educational opportunities provided by the Pool Nation Conference, offer pool professionals a roadmap for transforming their operations from simple service routes into thriving business enterprises.

The key takeaways are clear: understand your financials, plan for growth, build systems that don't depend on your constant presence, and always keep your long-term objectives in mind. By focusing on these fundamentals, pool service professionals can build businesses that not only survive but thrive in an increasingly competitive marketplace.

As the industry continues to evolve and the pace of business accelerates, those who invest in business education and strategic planning will be best positioned to capitalize on opportunities and build lasting success. The pool service industry offers tremendous potential for those willing to think beyond the immediate task of cleaning pools and embrace the broader challenge of building exceptional businesses.

Episode Chapters

• 00:00 Introduction and Host Banter
• 05:00 Guest Introductions - Rick Harvey and Alicia Stephens
• 10:00 Industry Events and Pool Nation Conference
• 15:00 Building Businesses vs. Managing Routes
• 20:00 Financial Management and Tools
• 25:00 Exit Strategies and Business Planning