Pete is joined by Lukas Krause, the CEO of SkyRun Partners. They are an up and coming vacation rental franchise that you can learn a lot about. Lukas talks about his time in professional baseball, to being in the depths of Quiznos, and now running SkyRun on this episode of the podcast.
Pete is joined by Lukas Krause, the CEO of SkyRun Partners. They are an up and coming vacation rental franchise that you can learn a lot about. Lukas talks about his time in professional baseball, to being in the depths of Quiznos, and now running SkyRun on this episode of the podcast.
Pete: [00:00:00] Good morning Sean. Morning Pete. How are you doing? Pretty good. Where's Nat? I, I'm, I, I, well, I, he, I'm somewhere, I don't know. He didn't show up today, so, but you know what, as usual, I'm pumped up. No surprise. Why are you pumped up, Pete? I'm pumped up. 'cause this weekend I get to test drive the 2023. New escape the new model and you know, I'm an escape lover.
I own a few of them, but I ordered one and I get to drive it. I don't know if my wife will give me permission to buy it, but it is, it is it's pretty cool. Eight speed transmission, best in class horsepower. So I'm, I'm looking forward to get behind the wheel and test driving that this weekend.
Yeah, I think you test drive a car like every three
months.
Well, you know, it's, you know, they kind of call it a little bit of addiction, stuff like that, but I love cars. Just unfortunately, my wife doesn't think we need. That many cars, but we'll see what we can do here today So i'm very excited to have a [00:01:00] special guest today lucas kraus and lucas kraus is the ceo of skyron vacation rentals So welcome lucas Hey, thanks for having me.
Oh, I'm super excited to have you today. You know, I was, I was reading your bio and I believe you're the first former pro athlete. That I've had on the podcast.
Lucas: Oh, nice. Yeah. I've had a colorful existence, I'll say that. But it was not a very decorated professional
Pete: career, but I did make it to professional ranks.
So, so I think you, you said that you kind of trained and you, kind of on the side, and then you got basically signed with the New York Mets. So as a pitcher, believe it or not,
Lucas: yeah, it's a much longer story. But yeah, two years after graduating college and not playing in college, I reinvented myself as a pitcher and kind of trained behind the scenes and was going to workouts and ended up getting signed by the Mets.
And literally in a workout on a Thursday, I was in spring training on a Saturday.[00:02:00] Holy cow. It was really just a
Pete: whirlwind. And so you did that for two years and it had to been a pretty cool experience though for two years being part of the, the majors. Yeah, so, you
Lucas: know, it was interesting. It was a, it was a great experience in a lot of different ways, but I, you know, I was built and I was doing an office job.
And so I got hurt really quickly in the 1st, few weeks. And so when I got to spring training, I actually didn't even get to break with the team at 1st, because I was hurt. And so then I kind of went through this rehab stint and then just badly injuries for
Pete: that's not so much fun. Alright, so, so you had this career and it just your body just didn't take it right.
So, so you had to pivot. And I believe that's when you started, you got into franchising, the first time you got into franchising, so tell me a little bit about how you got started with franchising. Yeah,
Lucas: it was one of those, I was going to find out where I was going to live either, and I wanted to move. I was always from the Chicago area and you know, and had some restaurant experience growing up in the restaurants with my parents and, and Quiznos.
The franchise company [00:03:00] there and took on a project manager role of helping to onboard new locations. And that was great because I got to wear every hat, you know, everything from procurement to leading in team turnaround for underperforming markets to ultimately running
Pete: the international brand. Wow.
That's pretty big leap. I mean, so you went into it and, and basically just got immersed in franchising and, but I didn't want to. Catch something. You said you wanted to leave Illinois. I just want to make sure you wanted to leave
Lucas: Illinois. Yeah. You know, the winter's got too much for me there. I knew I knew growing up.
We didn't move anywhere. I lived in the same hometown I was born in. And yeah, I didn't realize the sun was allowed to shine in the winter, you know, being in the Midwest. I mean, a great city, but yeah, the climate's a little rough. I've been here
Pete: for, what, 17 years in Chicago, and I know exactly what you're talking about.
I keep telling my wife we gotta move, but she's got our kids, they're gonna be working in Chicago, so she won't let me leave. But we do go now, I figured out that you can be really smart and you can go to like Marco Island for a month and escape, and it was the most amazing February of my life, right? It was 80 degrees and sunny, and I was like, [00:04:00] holy cow, there is life in February, just not in Illinois.
Lucas: But I'll tell you, as you know, the Chicago area in the summer, it's just, it's a different energy and it takes it to a whole nother level. So it's kind of, everyone survives before the summers.
Pete: Yeah. That one month out of the year. Yes. It's awesome. All right. So yeah, Quiznos, you reinvented yourself. You got involved, you did every role.
So where'd you go after Quiznos?
Lucas: Yeah, so in 2008 left and to start up a business in the tax credit space. And so it, it's funny because launched that as, you know, everything was going downward in the 2008 financial crisis. But it was a, it was a great experience on a lot of levels. So made a lot of mistakes.
I'd helped thousands of people start a business, but it's so different when it's your own. And, and I think that was such a learning and growing experience because you really do appreciate the highwire Act. When it's coming out of your own checking account versus being a W 2 and the emotions that come into it.
And so, yeah that took about two years to get to about maintenance mode and have a team really running [00:05:00] it. And I'm out of the day to day. So that's still around
Pete: and thriving. All right. So entrepreneur, you kind of started your own business. It's still thriving. So tell me what you've done since then.
So you put that on autopilot. What, what have you been doing since then?
Lucas: Yeah, I don't sit still all that well. So I started advising a bunch of franchise brands and had the itch to get back because I really do love that. You know, growing up in a home with a small business owner and just kind of have that passion for support and got pulled into a company called Real Property Management and it was a turnaround situation.
And we we had a lot of colorful situations going on, but the group rallied, we galvanized the franchise base. And built into the largest property management business in the country, managing over 65, 000 homes and got that sold in 2018 and managed that transition to the
Pete: neighborly group.
All right. So you worked your sweat, you did so well, you worked yourself out of a job. So after turning that around, getting it sold, where'd you go next? Yeah,
Lucas: so I took the helm of National Corporate Housing. It's a large company with almost, you know, 500 employees in the corporate [00:06:00] relocation travel space.
And, you know, again, I had this turnaround experience and thought I was going into a nice situation. It was. But then COVID hits and business travel comes to a screeching halt. So I had to use a lot of my turnaround experience to get, you know, help get the company through that on the other end. And so, you know, did that.
And you know, it was, it was clear that, you know, my, my heart was still in franchising and that was a large company. I felt really disconnected from where the strategy was and ended up with Skyrim just a little over two years ago. Cause it just. There's something there in an industry and it's an opportunity for us to really, I'd say, make an imprint on the industry and change it
Pete: for the better.
Yeah, and so let's talk a little bit about Skyrun. So Skyrun is a vacation rental business, and I don't think there are many franchises that play in the space. Are you guys the only franchise, or is there? No, there's
Lucas: a few. It's starting to become more popular in the space, and the reason is it's a great place because you need that local [00:07:00] touch.
In that ownership, but you need, there's a lot of value to big brand technology and support. And so it's a great cross section to be in, but it's in its infancy and franchise. And so, yeah, we are one of the first
Pete: in it. Okay. Okay. So you're one of the first in what does, what makes Skyron so successful or what separates it from the competition?
Yeah, I'd say
Lucas: two real things. Guest experience we provide and it creates such a virtuous cycle. Our average guest rating is over 4. 8 stars over 600, 000 previous guests. And the second is we generate more income for our homeowners. If you go to Vrbo, our listings book two and a half times more than the average listing.
And so at the core of it, we provide better experiences. And we generate more income
Pete: for our homeowners. Got it. And so what I heard you say is that number one, you make sure that the property, the person has a great experience. And in turn, the, the owner gets a great review. Like a 4. 8, I think you said, right?
And the second is, is that you guys leverage [00:08:00] technology where, because people are having great experiences, but you're also leveraging technology to get more bookings than say the competition that are playing in that space. You captured it quite
Lucas: well. I could geek out and talk about the integrations with the the online travel agencies, but we don't have time to go to that.
Pete: Way above my level, right? I'm just a beginner at this stuff. Learn it. Okay. So when we talk about Skyrun it's a franchise, so you have franchisees. How, how many franchisees do you have? We have 40
Lucas: today. 40. So, yeah, so it's, you know, just, it was really, and just give a little context, you know, started in 2004, but kind of by accident technology built by Barry Cox.
He was an IBM executive and kind of stumbled into managing for homes, and then it was friends and family. And so really, the growth has only happened over the last 2 years where they realize they have really something special. So, yeah, we're in our early stages in that
Pete: well, they brought you in and they got somebody special to help build this special brand up.
Okay. I, I got that. I finished point. So we got about, I think you said [00:09:00] 40 franchisees. And when you are looking for franchisees, what, what are you looking for in a franchise partner with Sky Run Vacation Rentals?
Lucas: Yeah, we look at partners as they need to be additive to our system. Our, our strength truly relies on our community.
And, you know, it's been around franchise, strong franchise, ease that really contribute and bring talents. But, you know, from a skill sets perspective, it's individuals who are ambitious. These businesses have unlimited potential. So we do want people who are likely replacing significant income or have the hunger to build something serious.
And it really takes two different skill sets. There's a sales business development, you know, side of it. And there's operational detail. And, you know, the key is, is you have one of those and you hire your weakness on the other side of it.
Pete: Yeah, yeah, absolutely. All right. So you look for people that are, we're looking to build something large, replace a corporate level income, right?
Be ambitious. I have leadership skills and I plug into a strong system and the combination of the partnership Skyrun [00:10:00] and the franchisee, they, they build something successful. All right. So let's take it a step further. You know, as we, as you think you've been an entrepreneur, you've started multiple, you know, businesses, all that kind of stuff.
You've helped turn around businesses. So what characteristics do you think somebody needs to be a successful entrepreneur? Oh,
Lucas: yeah, there's there's a few. And then it's always comes up as in the discovery process. Humility is one. It's amazing. You know, you need to know when you ask for help and do things that you're uncomfortable with.
2nd, I'd say is adaptability. Things are so, you know, change so often. And then the key, right? Is that perseverance and consistency. Because there is no guarantees on outcomes, but if you do the right things every day, consistently build upon it, you're more likely to influence that outcome in a really positive way.
But those three things really are kind of key drivers I've seen across multiple
Pete: versions. Yeah, I think that's right. I think it's about being consistent and doing things. You know, in a process and following that process, and you can have the best [00:11:00] system in the world. But if you don't follow the system,
Lucas: you know, it's everyone's trying to rush to the end product, but it's the product of winning every day and just getting a little better incremental improvements.
And if you do that, that's where you cover some amazing ground. It doesn't happen overnight.
Pete: What advice would you give to somebody that's considering investing
Lucas: in a franchise? I think it's really important to know what you're getting into and starting a business. I think that's the piece. If you're coming from corporate America, it is a, it is a different animal and it can be a great opportunity because I know everyone looks at it.
Go, I want to be that entrepreneur and live that entrepreneurial lifestyle, but understand what the work it's going to take to get there. And understand the emotional highs and lows that you'll go through because your whole identity gets wrapped up into this. And so it's like, you know, you can do something really special.
It can be the most rewarding thing to do, but it's also going to be one of the most challenging. And you just got to do, if you're up for that, that opportunity
Pete: is there. Yeah, I think you're right. It's, it's a, it's a lot of hard work to [00:12:00] launch a business. And if you come out of a corporation where you've got all these resources, all that kind of stuff, and you got this great title, like vice president of blank, right?
It's, it's a different cat where you. You get into a business and it's you, you've got to lead that business. You've got to drive that business and it's 100% accountability. Now it's nice because when you have your own business, you don't have a boss, right? You don't have all the politics associated with the corporate world or artificial objectives or senseless meetings.
You can just kind of focus on building it, but it takes a heck of a lot of hard work and you have to have that sense of urgency you know, just to drive it and build it from
Lucas: some point. So you said it well, right? It's end to end. You manage every aspect of it. And when in your role, the, you know, maybe corporate America, you have kind of a little lane that you're in and now it's everything, but it's great.
If, you know, for those who are up to it, it can be an amazing experience and you can build the business you want and the lifestyle around it, and you can shape it to create what you really
want.
Pete: Well, and you think about creating wealth, right? If you look at history in the United States, the [00:13:00] way in which people have created wealth is through being business owners.
Most of the time being a corporate employee, you're not building wealth. Yes, you could, you could build a nice lifestyle, but you're not building significant wealth like you would in the, you know, have, yeah, you get a more proportionate share
Lucas: of the value of your brain. It's, it's a lot easier rather than working under
Pete: someone else.
All right. Well, I want to get into now some of the things. So he, from your standpoint, What is the best book you've ever read? What's the best book?
Lucas: I try to read, you know, at least 20 books a year. And so I'm a regular reader, but the one that sticks out, and probably one that was early in my career The Psychology of Persuasion, and just kind of how people make decisions.
And it's kind of an old school classic, but I still reference today. Of how you make decisions. And as you know, in franchise, it's like you're trying to encourage and move a group and motivate, inspire, and it hits so many of the elements of really leading and
Pete: driving [00:14:00] people. That is very cool. I just wrote down the name because I got I'm going to go check that out.
That sounds like a great book. I don't think anybody's suggested that one before. So thank you. Is there a thought leader that you follow?
Lucas: I don't, I really try to get a really diverse. So I've kind of been plugging into everything, whether it be health and wellness, different individuals, business, professional development.
I also try to stay very engaged with, you know, I have my own personal board of directors of leaders who I've worked for. And so. I'm really intentional about searching it out, but I don't have like any, I'd say one person that I lean on as the de facto thought leader. All
Pete: right. All right. I thought you'd give us a fun name like Darren Hardy or, you know, that kind of stuff.
Okay. No, all right. That's good. And you know, that's what we do as leaders though. We surround ourselves with others that we learn. If we're always learning as leaders, we continue to grow and that's so important. All right. What is the best piece of [00:15:00] advice that anybody's ever given you? Thank you.
Lucas: I see too.
I, you know, I think for my parents, I saw work ethic and like, if you really put time and energy in what you can get and achieve, but I'd say the real, like pure advice, it's like, you can learn something from everyone in every situation. And if you come in with that kind of mindset of curiosity you're going to grow, you're going to learn, you're going to improve from it.
And I think that's always really important because often today's world, we want to just impose our thoughts and on it. But if you actually come into a situation with trying to learn, it's amazing what you can take away and how you improve.
Pete: Yeah, I think that's right. And we all need to do a better job of just going into every situation, and you might learn some tough stuff, and you might learn some really good stuff, but we always need to be continuing to learn.
And, you know, your background is absolutely amazing, being a pro athlete, the wheels came off a little bit from health wise, but You've done a great job of kind of found that entrepreneur spirit and building and turning around businesses and stuff like that. So it's going to be very excited to [00:16:00] see where you continue to take Skyrun vacation rentals.
I, I, it sounds like it's a great opportunity for some people to learn about a business that you're making a difference in the world in a way in which you're creating great experiences when people are on vacation.
Lucas: No, thank you. I mean, we've, we've almost doubled in number of locations in the last two years and we see a pretty healthy growth trajectory, but that's not what drives it.
I mean, what we have is kind of our foundation is make dreams possible. We,
Pete: because we,
Lucas: we are helping entrepreneurs start businesses and really, you know, make those dreams possible. We're helping homeowners. We have the ability to have a second home and then have guests have the vacation they dreamed
Pete: about.
Yeah, that's awesome. All right. Well, thank you so much. It was a real pleasure to get to know you and thanks again. Yeah, great. Have a good one.