Episode notes
DESCRIPTION: At 19, Payton Patterson was already running jobs. Today, at 29, he's building P2 Electrical and Mechanical Contracting into a multi-trade business spanning electrical, plumbing, and HVAC. Payton started his first year doing roughly $150,000 in revenue. By year two, the company reached $500,000, followed by consecutive seven-figure years. Now, he's working toward the eight-figure mark while thinking far beyond revenue — focusing on EBITDA, company multiples, recurring revenue, vertical integration, and eventually development. In this episode of Home Service Roundtable, Payton opens up about what it takes to grow a contracting business while still being deeply involved in the work, the biggest bottlenecks holding the company back, and the lessons learned from nearly a decade in the trades. We talk about:
- How Payton grew from $150K in year one to seven-figure revenue
- Why bigger contracts brought bigger risks — and bigger rewards
- The biggest bottleneck in P2's growth: Payton himself
- Why reviewing every estimate and invoice can eventually limit scalability
- How P2 expanded from electrical into plumbing and HVAC
- The strategy behind becoming a one-stop MEP contractor
- Why Payton is focused on EBITDA and the multiple, not just revenue
- How recurring service revenue can affect the value of a contracting business
- The long-term vision for vertically integrated development
- How lightning damage can create a unique opportunity for electrical contractors
- Why social media is helping P2 attract both customers and potential employees
- How Payton's own Instagram helped bring a new employee into the company
- Growing up as the owner's son and learning the importance of accountability
- The relationship between Payton and his father after building his own company
- Why passion for the trade can be more valuable than rushing to get out of the truck
- The three daily habits Payton credits with making him more successful
- Why 30 minutes of silence every day helps eliminate loose ends
- How cleanliness and organization became part of the company's culture
- How P2 is using AI to monitor inventory and automate supplier quote requests
- The biggest leadership mistake Payton made by getting too close to employees
- Why business owners need to separate friendship from leadership
- How Payton learned to become more selective with hiring
- Why he wishes he had listened to mentors earlier
- How a devastating house flood and mold exposure changed the direction of his business
- How getting a GC license opened the door to development
- Why vertical integration became part of Payton's long-term vision
- The future of monitoring technology across plumbing, HVAC, and electrical
- How contractors can increase homeowner lifetime value beyond the initial installation
From running jobs as a teenager to managing a growing MEP company, Payton's story is a look at what happens when trade experience, entrepreneurship, technology, and long-term thinking come together. Watch the full episode to hear how Payton is building P2 — and where he plans to take it next.