Leader-First Branch Launch Sequence
Find the branch leader first, embed them in HQ for three months, then build the market around them
Peterman Brothers will not commit to a new market until they have found the person who will run it. The branch manager is hired first, then relocated to the Indianapolis HQ for roughly three months where they learn all processes and procedures before there is any physical location. Market selection is partly shaped by where the candidate is willing to operate. Once the manager is trained, the launch sequence is: hire one service technician per trade (HVAC, electrical, plumbing), add one HVAC install crew, and go. All three trades launch simultaneously. The three-month HQ immersion means the manager can operate independently from day one without needing a babysitter in the field.
- The leader is the constraint; the market is secondary
- Three months of HQ immersion replaces years of trial-and-error in the field
- All trades launch simultaneously to enable cross-trade lead sharing from day one
- Culture contamination risk from acquisitions outweighs the revenue head start
- A slower start is worth it if the ramp is steeper because the system is already installed
- Source and hire the branch managerBefore any lease is signed or market selected, find the person who will run the location. Peterman will adjust which Tier 2 market to enter based partly on where the candidate is willing to relocate. The leader is the non-negotiable input.Pro tipInternal candidates who already know the system and culture are the first screen. The Louisville branch started with a leader promoted from within who chose the geography.WarningDo not open a location with a placeholder manager while searching for the real one. The manager shapes every early hire and every customer interaction.
- Embed the manager in HQ for three monthsThe hired manager works out of the Indianapolis office for approximately three months before the branch exists. They learn every process, tool, and expectation. There is no location yet and no team to manage yet. They are a student.Pro tipUse this period to have the manager shadow every department they will depend on: dispatch, marketing, install management, CSR. They should know exactly who to call for what before they are 90 minutes away.WarningThree months feels expensive when there is no revenue. The alternative is sending someone green into the field who then builds local workarounds that contradict company process.
- Execute the launch sequence simultaneously across all tradesOn opening day: one HVAC service tech, one electrician, one plumber, one HVAC install crew. All three service lines go live at the same time. Plumbing and electrical are weather-stable and generate leads year-round, which feeds the HVAC replacement pipeline when HVAC demand is seasonal.Pro tipCross-trade leads are the financial cushion for a new branch. If you open HVAC-only, you are exposed to every slow season with no other trade picking up the slack.WarningDo not launch excavation simultaneously. Excavation complexity and the difficulty of finding qualified operators makes it a phase-two decision, centralized to an existing team.
- Benchmark Month 12 at $2.5-3.5M run rateThe Louisville branch launched in early February and was producing $200-300K per month within the first year, tracking to $2.5-3.5M annualized. This is the baseline expectation for a greenfield launch. Below this signals a leadership or marketing problem to diagnose.WarningMarketing costs are higher in a greenfield than in an established market. Budget for elevated digital spend in the first 12 months before brand recognition builds.
Peterman Brothers entered Louisville as a full greenfield, no acquisition. They hired a branch manager and launched all three trades simultaneously: one HVAC tech, one electrician, one plumber, one install crew. The branch manager had been immersed in Indianapolis operations before opening. Branch launched February and was producing $200-300K per month within the first year, on track for $2.5-3.5M annualized.
The first outside-of-Indianapolis location was opened in May 2018 when an acquisition fell through. They hired a team and just went for it with no embedded pre-training. Chad described it as very messy, trying to figure out logistics after the fact. The company was $10-15M at the time and lacked the central infrastructure to support it cleanly.
Extracted from Owned & Operated ($100M HVAC episode). Chad Peterman described this as the explicit forward-looking model after greenfielding Louisville, contrasting it against the messy 2018 Lafayette launch where they opened first and figured things out after.