- The Corporate Pivot
- Posts
- 💉 Biohazard Cleanup Business – Making $640k/yr!
💉 Biohazard Cleanup Business – Making $640k/yr!
The Corporate Pivot
December 02, 2024
Welcome Back to The Corporate Pivot!
If your company’s idea of innovation is an open floor office, it’s time for a real change. The Corporate Pivot helps you ditch the chaos of the workday for open opportunities in business ownership—where Greg from Accounting’s lunch debate is no longer your background noise.
We’re here to show you how to stop making someone else rich and start building something that’s truly yours. Real stories, actionable strategies, and business ideas are waiting to get you out of the corporate hamster wheel and into a life where you call the shots. Because let’s face it—your future deserves more than forced collaboration and endless interruptions.
Here’s what we have for you today:
Pivot Perspectives: Sam uncovers hidden deal-breakers in a repair business, including unexpected rent costs and the seller’s surprising demands. Tyler navigates the complexities of valuing a niche service business, revealing insider tips from rejected offers and broker insights. | Acquisition Alerts:
| Mindset Matters:
|
Cool Business Idea:
👕 Laundry Subscription Service
If you haven’t already, go subscribe to this newsletter here!
Confusing Corporate Sayings:
“Peel The Onion”
Professional Translation
“Look into something in more detail, layer by layer.”
Corporate Pivot Translation
“Uncover layers of the problem and cry a little while doing it.”
Gif by thelonelyisland on Giphy
Sam’s Perspective (1st Time Buyer)
🆕 Status Update: Last week, I spoke with the broker for the construction equipment repair business we’re considering. The conversation was productive but primarily served as a preliminary “sniff test” to confirm we’re serious buyers before connecting us with the seller. A key takeaway: always ask detailed questions—important information often isn’t volunteered upfront.
For example, we learned that the seller has specific conditions: he wants to remain involved in the business but shift his focus to sales relationships rather than shop work. Fat salary and getting to talk shop with your business buddies all day? Sign me up for that too! But realistically, it doesn’t align with what we’re looking for. Additionally, the real estate is not included in the sale and would instead be rented to us, significantly impacting profitability. What initially seemed like a 30% profit margin becomes far less attractive when factoring in rent. Coupled with the typical dip in revenue when transitioning to a new owner, the financial picture changes substantially.
There are also operational challenges, such as the need to replace the bookkeeper. These adjustments add complexity to the deal. On the financing side, the seller has expressed resistance to creative structures like seller financing or partial equity arrangements. This aligns with a trend we’ve noticed: many owner-operators who’ve built their businesses from scratch prefer straightforward offers. They often view complex deals as overly risky or potentially deceptive, which is something to consider as we explore service-based acquisitions.
At this stage, we’re reviewing financial statements to determine how much flexibility we have. While the business is niche, offers a strong model, and has clear opportunities for technological improvements, the new stipulations might be deal breakers. We’re still evaluating whether it makes sense to move forward.
Tyler’s Perspective (Experienced Buyer)
🚨 Tip of the Week: Sam and I recently had a call for a lead in my neck of the woods. As with most (if not all) leads, neither of us would be the day to day operator, but this one was unique in that it is a service business, with a very specialized technical skill. The margins were strong (as you’d probably expect for a business like that), and the owner is willing to stay on for a limited amount of time. Our call was with the listing broker (which is usually a way for them to quickly figure out if you are a serious buyer with the funds available to close), and she seemed to have a decent understanding of some of the common questions (and she tipped her hand on some previous offers that were rejected). If we decide to move forward, the valuation/our offer will be tricky. For a specialized business like this (with a technical skill/trade), your offer should certainly reflect the additional risk. Stay tuned.
💰 Deals < $500k 💰
Business Name: Wedding and Event Planning Service
Revenue: $356,442
Asking Price: $263,000
Profit: $167,932 (Profit Margin = 47.1%)
Location: Woods Cross, UT (Davis County)
Established: 2002
✅ Pros:
Established Reputation: Over 4,000 successful events ensure brand recognition and credibility.
Recurring Revenue Opportunities: Partnerships with venues and facilities for linens and setups.
⚠️ Cons:
Niche Competition: Clients often compare pricing to family or friends for DIY solutions.
📈 Growth Opportunities:
Expand Corporate Events: Broaden into corporate markets for consistent, high-value contracts.
Increase Marketing Presence: Leverage social media and digital marketing to attract more upscale clientele.
💰💰 Deals $500k - $2m 💰💰
Business Name: Pet Cremation Service
Revenue: $715,000
Asking Price: $1,400,000
Profit: $643,000 (Profit Margin = 89.9%)
Location: Opa-Locka, FL (Miami-Dade County)
Established: 2018
✅ Pros:
Market Monopoly: Only pet cremation facility in Miami-Dade County, ensuring no direct competition.
Turnkey Operation: Includes all essential equipment, a walking cooler, and a large inventory.
⚠️ Cons:
High Asking Price: Premium price reflects profitability but may limit buyer pool.
📈 Growth Opportunities:
Franchise Expansion: Capitalize on demand by expanding into other counties.
Add Complementary Services: Offer pet memorial items or aftercare packages.
💰💰💰 Deals $2m-$10m 💰💰💰
Business Name: Health Hazard and Contamination Cleanup Business
Revenue: $1,292,966
Asking Price: $2,600,000
Profit: $640,077 (Profit Margin = 49.5%)
Location: Minnesota
Established: N/A
✅ Pros:
Specialized Expertise: Certified in biohazard removal and trauma decontamination, offering niche services.
Strong Referral Network: Established relationships drive repeat and referral-based business.
⚠️ Cons:
Labor-Intensive Work: Services require specialized training and potentially emotionally taxing roles.
📈 Growth Opportunities:
Expand Geographically: Open satellite offices in underserved regions for broader reach.
Develop Training Programs: Offer training to new markets, creating additional revenue streams.
**If today is your first day reading, go to Chapter Recaps to get up to speed!
The Lean Startup: Ch. 11 Part 4
Happy Cyber Monday! For our Cyber Monday sale, you, our thoughtful subscribers get a great deal… you get to read this for free… again… I sent you a Venmo request for my hourly rate and somehow it still shows “pending” since June. Regardless we are THANKFUL for you (s/o Thanksgiving) and glad you could sit here to read.
Read through the end to find out the next book we will be reading! Today we are going to talk about adapting to smaller batches, specifically a 3-year period that QuickBooks went from large batches to small batches. Quickbooks had been launching on an annual cycle, in one GIANT BATCH. As you know, this is a no-no. They would utilize the waterfall development method that is a linear, large batch system that relies for success on proper forecasting and planning. This was not successful. When Greg Wright was brought in as director of product marketing, he ran into a few issues. They “achieved failure” in the first year, successfully executing a flawed plan. They shipped an entirely new system in QuickBooks for online banking and customer feedback started coming in negative.
Customer feedback came in too late in the process, it allowed no time to iterate. During his second year in the role, he set out to make some changes by using four principles:
Smaller teams
Achieve shorter cycle times
Faster customer feedback
Enable and empower teams to make fast and courageous decisions
Big surprise, this wasn’t successful. The problems that afflict large-batch development were still present. He found, like most people know, it’s hard for people to unlearn old habits.
In year three he teamed up with the product development leader Himanshu Baxi. They made a public declaration that their combined teams would be creating new processes and that they were not going to go back to the old way. Instead of building a comprehensive road map at the beginning of the year, Greg kicked off the year with what they called idea/code/solution jams that brought engineers, product managers, and customers together to create a pipeline of ideas. There were 3 major differences in year three:
Teams were involved in creating new technologies, processes, and systems.
Cross-functional teams were formed around new great ideas.
Customer were involved from the inception of each feature concept
It’s important to understand that the old approach did not lack customer feedback or customer involvement in the planning process.
For our next book we will be reading Choose Your Enemies Wisely by Patrick Bet-David. Go snag a copy on Amazon and join us through that next great book. We have one more chapter left in The Lean Startup so make sure you stay tuned!
As always, if you want to discuss topics of this chapter (or any previous or future chapters) join our Discord channel.
Read more at corppivot.com!
💡 Cool Business Idea: 👕 Laundry Subscription Service
Because life’s too short to fold socks.
Overview:
Laundry is one of those chores everyone hates but keeps putting off. What if someone could take care of it for you, all for a flat monthly subscription fee that covers pickup and delivery? Customers pay a small monthly fee to join, plus a set price per bag of laundry, washed, dried, and folded.
By partnering with local laundromats, you keep your business lean while ensuring that customers enjoy consistent, high-quality service. You focus on logistics and customer relationships, while the laundromats handle the dirty work—literally.
Business Plan
Operational Model
Customer Pricing Structure:
Monthly Membership Fee: $20 per month to cover pickup and delivery logistics.
Per Bag Fee: $20 per bag (customers can fill one standard laundry bag).
Example: A customer with one bag per week would pay $100/month ($20 subscription + $20 x 4 bags).
Laundromat Partnerships:
How It Works: Partner with local laundromats and negotiate a wholesale rate (e.g., $10-$15 per bag) to handle washing and folding.
Your Profit: You charge $20 per bag but pay the laundromat $12, earning an $8 profit per bag while the monthly fee helps offset delivery costs.
Logistics and Operations:
Use a route system to group pickups and deliveries by neighborhood.
Automate scheduling and communication using customer management software.
Financial Projections
Scenario | Customers (Monthly) | Revenue | Expenses | Profit Monthly |
|---|---|---|---|---|
Bad (100 customers) | $6,000 | $2,000 from memberships ($20 x 100) + $4,000 from 200 bags ($20 x 2 bags/customer) | $3,000 (laundry fees: $15/bag x 200) + $1,500 (drivers, fuel, software, etc.) | $1,500/mon |
Average (300 customers) | $18,000 | $6,000 from memberships ($20 x 300) + $12,000 from 600 bags ($20 x 2 bags/customer) | $9,000 (laundry fees: $15/bag x 600) + $4,500 (drivers, fuel, software, etc.) | $4,500/mon |
Great (600 customers) | $36,000 | $12,000 from memberships ($20 x 600) + $24,000 from 1,200 bags ($20 x 2 bags/customer) | $18,000 (laundry fees: $15/bag x 1,200) + $9,000 (drivers, fuel, software, etc.) | $9,000/mon |
Key Benefits for Laundromats
Consistent Volume: You provide them with steady business they can count on.
No Marketing Needed: They save time and money because you handle customer acquisition.
Wholesale Rates: Offer laundromats $12 per bag, which is lower than their retail rates but ensures high volume and efficiency.
How to Approach Laundromats:
Highlight the value of predictable bulk business without additional marketing costs.
Negotiate rates based on volume: start with $15 per bag and work toward $12 as you scale.
Be upfront about quality expectations and turnaround times (e.g., next-day service).
Why It’s Worth Considering
This "membership + per bag" model ensures predictable recurring revenue while giving customers flexibility. By charging a premium on each bag of laundry, you build a profitable margin over laundromat costs. With minimal upfront investment (just vehicles, software, and marketing), this business can scale quickly. As customers grow to rely on your service, you can add premium features (like eco-friendly detergents or faster delivery) to boost profits further.
Corporate Memes: Click below to play the video on our Instagram account! |
Hope you enjoy this week's insights and happy deal hunting! Remember, if you find these updates helpful, share this newsletter with a friend!
🛠 USEFUL TOOLS 🛠
If you made it this far then your attention span is better than most. If you want some useful tools, tips, and tricks you can find them all on the website here!
