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November 2025 The Contractor’s Advantage
HarrisonLawGroup.com (410) 832-0000 jwyatt@harrisonlawgroup.com
Don’t Act Like an Insurance Company THE RISK OF BONDING SOMEONE ELSE’S WORK
I recently had a client who was doing really well. They’re a trade contractor with a great reputation, and this year was shaping up to be one of their best. But then they decided to do something that seemed like a smart move at the time: They tried to play investor. A buddy of theirs needed help getting a surety bond for a project. For those unfamiliar, a surety bond is basically a promise an insurance company makes. If a contractor walks off the job or messes it up, the insurance company steps in to ensure the project is finished. But that promise doesn’t come without strings. Behind every surety bond is something called an indemnity agreement. It says that if the insurance company has to pay, they’ll come after the contractor who bought the bond to get their money back. So, if you’re a contractor and your bond gets called, it’s not just your reputation at stake. It could be your entire business.
But my client decided to take a risk. They had bonding capacity to spare and were promised 10% of the project’s gross. That’s a significant number on a large project. So, they stepped in, signed the paperwork, and essentially told the insurance company, “If this other company can’t finish the job, I’ll take the hit.” At first, things seemed to be going to plan for my client. That is, until the company he backed started having trouble paying its bills. Then they had trouble getting labor and materials to the job site. My client had two choices. His first option was to do nothing, let the project fail, and wait for the bond to get called. That could’ve gotten very ugly, so he chose his second option: to start paying the bills. Ultimately, he ended up shelling out $3 million to ensure the project was completed. We’re now working to recoup some of this, but the ordeal left him with a costly lesson. If you think about bonding someone else’s work, slow down. Don’t just look at the potential return. Think about how things could go wrong because the losses could be enormous. At the very least, make sure you’re in the money flow. There are ways to do this, like having payments routed to your company first so you can cut them off if things go south. My biggest piece of advice? Don’t act like an insurance company if you’re not one. You’re not in the business of backing risk. If you want to help another contractor, get legal guidance before you sign anything. Have a lawyer draft the agreement to protect your interests and limit your exposure. A little time and money up front can keep you from a huge financial mess later.
It’s great to see contractors doing well and looking for ways to grow, but sometimes the best move is to double down on what you’re already good at. Stick to what you know, and don’t gamble your success on someone else’s problem.
In this case, my client wasn’t even doing the work. They just agreed to provide the bond for another company’s project. That company had tried to get bonded on its own and couldn’t. This should have been a huge red flag. There’s usually a reason a contractor can’t get bonded. Maybe their credit is bad. Perhaps they’ve had issues finishing jobs in the past. Whatever the reason, no insurance company would touch them.
-Jeremy Wyatt
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FOMO Tactics That Work CREATE THE URGE TO ACT
Do you remember the feelings you had when you were young and learned that your friends were all planning to get together during a time when you already had a prior commitment? You may have wondered what they would do, talk about, and what else you would miss out on. When you were taking care of the other commitment, your mind likely wandered as you thought about your friends again. This is the fear of missing out (FOMO) in action, and it happens more than we think. Over the past few decades, FOMO has become one of the best sales tactics across the country. When done properly, most people don’t know they’re allowing FOMO to drive their decisions. They think they’re capitalizing on a great promotion while it’s here, but subconsciously, they don’t want to think they missed out on something great or beneficial. Unsure of what this looks like? Let’s explore a few sneaky FOMO strategies that can lead to incredible sales and results. SCARCITY You see this often if you try to buy anything in demand from Amazon, Walmart, or other major retailers. They add a running count to the amount of stock left whenever their inventory becomes depleted. You hop on to buy something you want, see only three left in stock, and jump on the purchase to ensure you don’t miss out. You can do this with specific products, availability in workshops, or even limit the number of items you sell at a particular price point. However, the key to scarcity is honesty. If you say you only have three spots remaining in a workshop and continue signing people up, you lose credibility and gain a reputation for dishonesty amongst consumers. EXCLUSIVITY
exclusivity, and you can take it further by stating that some promotions are for VIPs only. Just don’t go overboard. Labeling every promotion as exclusive will cause people to ignore your messages. These need to be rare and valuable promotions! TIME-SENSITIVE Black Friday continues to be a big sales day for big and small retailers, but how do they maintain that consistency? It has nothing to do with the business or ongoing sale. Instead, people understand that Black Friday is a one-day- only event. They think they won’t get these sales again, even if they aren’t stellar. Mimic this method to get people to act with urgency when it comes to your sales. Host flash sales with super short time frames on your website and set deadlines for your promotions. CLOSE THE DEAL When working with a client on the fence, FOMO can be a powerful tactic to help them see clearly why they should make the purchase. Paint a picture of how your product or service could help them days, months, or even years down the road. Then, illustrate what could happen if they don’t get the product or service. Could passing on your product now cause future regret? By answering these questions for your client, you help them understand that they could be missing out if they don’t make a purchase. THE WRONG WAY TO USE FOMO When you complete a FOMO campaign properly, you
keep things ethical and honest. You remain transparent about sales deadlines, don’t create false scarcity, and provide your
customers with value while still hitting your sales goals. However, some business owners use FOMO to pressure buyers into taking action immediately, which is short- sighted. You want your customers to be happy with their purchase instead of wondering why they made it years later. Remember, sales tactics are all about providing continued success, not one-time purchases. When appropriately used, FOMO can help your business reach new levels of success.
Another way to trigger FOMO in potential buyers is to create exclusive promotions for your best clients. Do you have a loyalty program in place already?
How do you communicate with your customers? If you regularly send emails or text messages about upcoming events, sales, and promotions, consider labeling your clients as VIPs. This creates
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showing up on the shelves of Kroger, Target, Walmart, and Costco. The company brought in $5 million annually but knew it could do more. JonnyPops wanted to expand its options, exploring layered ice pops using different flavors. They explored the same machinery that competitors used but found it outdated, with most from the 1980s. Brust and Wray decided they needed to take manufacturing into their own hands, opening a large factory in 2021 in Elk River, Minnesota, and filing 20 patents and trademarks. JonnyPops is now available in 27,000 stores nationwide with plenty of room for growth. Around 60% of stores nationwide have yet to sell their products. Whenever new brands reach this level of success, bigger food companies always look to scoop them up and add them to their product line. Experts estimate that Brust and Wray could get more than $300 million if they were to sell to Dove, Klondike, Mars, General Mills, or Unilever. Many of these brands have been looking for a healthier alternative to offer to their customer base, which makes JonnyPops a target. However, Erik Brust states, “We’re thinking about what the next decade looks like. This was never a grow- the-business-to-sell-it type of idea.”
THE CIA’S MOST PURR-PLEXING MISSION Cats as Spies? Probably Not In the 1960s, the CIA tried to turn a cat into a spy. The top-secret project, called Acoustic Kitty, involved wiring a cat with a microphone in its ear, a transmitter in its skull, and an antenna woven through its fur. The goal? Train the cat to eavesdrop on foreign officials by lounging nearby. But the cats had other ideas. On the first test run, CIA agents released the cat near two men on a park bench. Instead of approaching them, the cat wandered into the street and was promptly hit by a taxi. That was the end of the mission — and the program. A memo later admitted that the project wasn’t suited to the CIA’s “highly specialized needs.” You think? Although Brust and Wray are unlikely to sell their company, their success has also led to some negativity. Last year, GoodPop, a competitor, filed a class action lawsuit for false advertising, claiming that the JonnyPops aren’t as healthy as they claim and contain lots of sugar. JonnyPops has not commented on the ongoing litigation. JonnyPops’ story proves that the power of friendship can lead to incredible business success and millions of dollars in profit. If you work together and strive to do the best for your business and customers, anything is possible!
HAVE A Laugh
Still, the government didn’t give up on animal spies. Years later, DARPA developed remote-controlled beetles — turns out bugs are better spies. And housecats? Still terrible at taking orders.
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Jeremy Wyatt jwyatt@harrisonlawgroup.com HarrisonLawGroup.com (410) 832-0000
40 West Chesapeake Avenue, Ste. 600 Towson, MD 21204
Inside This Edition
1. 2.
When Lending a Hand Costs Millions
Turn ‘Maybe Later’ Into ‘Buy Now’ With Strategic FOMO 3. Furry Agents and Failed Espionage 4. How 2 College Buddies Turned Frozen Smoothies Into a $300 Million Empire
Brain Freeze Meets Business Brilliance
THE SWEET SUCCESS OF JONNYPOPS Starting a business can be difficult, but you can relieve some of the stress and responsibility by bringing in a business
In 2007, Erik Brust spoke with his cousin, Jonny, about their love of ice pops. They both concluded that many popular ice pops had unhealthy or unnecessary ingredients. They played around with the idea of starting a socially responsible business that made healthier ice pop options. Jonny passed away after a battle with addiction, but Brust kept the idea alive. When he met Connor Wray in a physics class in 2010 at St. Olaf College in Minnesota, the two hit it off and decided to bring the concept to life. Brust and Wray started with a small-business model. They made frozen smoothies on a stick in their dorm for two years, using only a blender, strawberries, and cream. Not only were they delicious, but they had half the sugar and fat of traditional ice cream pops. After graduating from college, the duo used their profits to buy a stainless-steel ice cream machine that would allow them to make ice pops on a countertop, which they started selling at local farmers markets and other venues. Before long, JonnyPops appeared on the radar of major grocery chains and began
partner. While this can introduce complexity, it allows you to divvy up and share vital responsibilities, brainstorm new ideas, and have a support system within the business when new obstacles arise. But finding a business partner is not necessarily easy. You have to find someone you can trust and depend on, as you’re taking on a big responsibility together. While you can turn to a mentor, business associate, or even a family member, sometimes the best partners are our best friends. Apple, Microsoft, Hewlett-Packard, and Ben & Jerry’s are famous examples of friendships that produced business
success. Now, JonnyPops is throwing its hat into the ring as it continues to grow the business and reach new heights.
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