From Rollers to Real Estate: Black Bear Painting | The Hustle | PragerU

[Music] What's up, guys? I'm Sabrina Cardone. Today, I'm in Dallas where 20-year-old Eli Burnside is bringing a splash of color to Texas with his business, Black Bear Painting. This is the Hustle. Eli paints houses throughout the Dallas Fort Worth area. You could say he's painting the town red, or really any color his customers ask for. >> My name is Eli Burnside. I'm 20 years old, and I run Black Bear Painting. Clean, glossy results inside and out means pleased customers, great word of mouth, and profit in every square foot. In this episode of The Hustle, we'll explore how Eli tackles two essential elements of running a business, time and risk. We'll see how he prioritizes tasks, weighs options, and potential outcomes, and entrusts his team with daily operations, allowing him to focus on expansion. Eli started painting walls when he was 14. What began as a side hustle grew to lucrative jobs painting entire homes. >> Originally, I started just painting some rentals for some friends, just like little stuff, like just a couple walls here and there. I didn't actually think it would really go anywhere, like into an actual business, and then, you know, I started having fun doing it, making good money. So, I decided that I should turn it into a business. >> When Black Bear's business started growing, Eli worried he was painting himself into a corner. To keep up with demand, he needed better paint, more equipment, and a few employees. >> I started taking on more jobs and then hiring employees. I realized that I needed more room for my equipment so I could bring it back and forth between jobs. So, I decided to invest in a trailer and then eventually ended up getting sprayers, all kinds of different equipment. You know, I just leave my trailer at the job site. My guys are able to work out of it. I don't have to necessarily be on the job for them to be working. >> Realizing he didn't have to paint every house himself was a big revelation. It showed Eli the importance of delegation. Delegation means assigning responsibility for specific tasks to other people on the team. It is key to handling time well. Whether that's putting someone in charge of a product launch or hiring employees to complete a paint job, delegating is a critical way to manage your time and resources. It allows you to strategize ways to improve or grow your business, an essential part of being a successful entrepreneur. That being said, hiring employees is no cakewalk. Our cash course episode, the tugofwar of labor markets, breaks down the economic factors behind hiring and paying someone to work for you. Learn all about supply and demand, wages, and how the changing labor market can affect your bottom line. >> I started at a certain point getting more work than I could handle. I had multiple people asking me to do work for them, and I realized it made sense for me to go on and hire some more guys and scale the business. You know, I got like one of my friends and asked him if he'd be willing to work. Slowly started taking on more and more jobs. And as the business was growing, I decided to hire more people. And now we're running usually like two to three jobs at once. >> Speaking of delegating, I wasn't about to let Eli have all the fun. I'm rolling up my sleeves and I'm ready. I'm ready. >> Okay, here you go. >> Okay, so >> just start from this side and slowly go over and just kind of go. It's better to go >> like that. [Music] We did it, guys. We did it. Hey, >> good, John. >> Thank you. Thank you. Painting is hard work. It has to be precise. Without employees that he trusts, Eli couldn't tackle multiple jobs at once. Delegating the labor side of his business is a force multiplier. Houses that used to take weeks now take days. I went in and started doing more managing and instead of actually painting because, you know, I could spend 5 hours, you know, painting a room, but that's 5 hours that the business isn't going to grow because someone has to go out and find new jobs, communicate to clients. Maybe half the day I'm actually on the job site, you know, doing the work, and then the other half is, you know, going and checking up on other job sites, just managing the business. >> Even with more time, Eli doesn't waste a second. Being ambitious and moving closer to his business goals requires time management. That's the principle of using time wisely to get things done. Remember, time is money. Successful entrepreneurs practice time management by getting up early, planning out each day, staying organized, and refusing to procrastinate. By maintaining an emphasis on time management, Eli is able to concentrate on advertising, prospecting for customers, and planning his long-term strategy, knowing that his early successes are just a drop in the bucket compared to what he aims to achieve. >> Eventually, the goal would be to have it where it's running without me being present, just have another source of income, and I want to use that income to get into real estate and different investments. >> Real estate runs in Eli's family, something I know a little bit about, too. Like his dad, Eli was eager to buy his first house, renovate it, and sell it for a profit. When he turned 18, that's what he did. The house was old, run down, and perfect for a flip. >> I got a really good deal on it. I went in, I did a lot of the work myself to save money. I did my own roofing, then fixed up the house nicely, and then sold it, and then made a good profit off of it. And I just love doing that. >> Eli's smart about money. He approaches every paint job with a clear idea of what it will cost and how much profit he'll earn. But buying houses, that's a different story. The risks in buying real estate are much, much higher. >> So technically, I did go in debt on that home. You know, made sure I had enough saved up to actually do the work, which, you know, I saved money doing it myself. I had still had to buy the material costs, but, you know, being able to do your own work. You're not paying anyone for labor. Then I ended up profiting, you know, a good chunk of money off of it. Now I'm not in debt, and I ended up with profit. Eli bought his first home by taking on a bank mortgage, a loan he would pay back over time with interest. You can learn more about loans and interest by watching Cash Course. Our episodes on borrowing money, assets, and liabilities, and debt explain how loans work, why some investments are smarter than others, and common pitfalls you should avoid. To make that loan work, he gave himself a deadline to fix up the house and resell it. If he waited too long or picked a house that was unlikely to sell, Eli would have been stuck paying back that loan. >> So, the cost for the house was $130,000, but I got a loan towards materials, too. The total was about 160. And then I went in, fixed it up myself, then I resold the house for $220. Overall, I ended up profiting about 30,000. >> Strategically using debt like a business loan or a home mortgage is one example of a calculated risk. Risk is a part of every business, but a calculated risk is one that takes careful research and has a high probability of working to your benefit. There's always a chance of failure, but if the likelihood of growing your business is high, the risk is worth your while. Put another way, Eli takes smart risks that he knows he can manage just like his time. >> So, I'm learning all kinds of skills and lessons running my business that are going to help me in the long run with what I want to do in real estate and investing, just managing in general. And I think that'll really help me with my long run goal. >> So, what did we learn from Eli and Black Bear Painting? If you want to start a business, start small and think big. As your business grows, learn to delegate so you can focus on the big picture of where it's going. Practice good time management by using your time wisely to get things done. While you're at it, stay organized. If you want to scale your business, you'll have to take calculated risks. Doing your research to understand which risks are likely to advance your goals takes practice. If you do these things, your business might just make a splash. Thank you so much, Eli, for telling us all about Black Bear Painting. This has been so much fun. >> Thank you so much for coming out today. >> And to you at home, thank you so much for watching this episode of The Hustle. Make sure you like, comment, and subscribe so that you never miss an episode. Eli, let's go finish this home. >> Let's go do it. Thanks so much for watching this episode of The Hustle. To make sure you never miss an episode, subscribe at prageru.com. And for a deeper dive into business, economics, and financial literacy, check out our show Cashcourse at prageru.com.