🆕 Dog Training Biz Making $350k 👀

Welcome Back to The Corporate Pivot!

Your essential guide to navigating the shift from corporate life to the exciting world of business ownership and acquisitions—unlocking endless opportunities beyond the 9-to-5 grind!

Confusing Corporate Saying of the Day:

“Let’s get aligned on this” = I’ll pretend like I know what you’re saying, but I have idea what you’re talking about.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

📈 Success of the Week: This week, I explored franchise opportunities from Resi Brands. Franchises are an interesting concept because they offer a business-in-a-box experience— who doesn’t like a head start?! You can either buy into an existing franchise or start one from scratch. I looked into the numbers for one of Resi Brands' companies, Pink’s Window Washing, and found that their cash-on-cash returns are competitive with other available businesses.

📚 Lessons Learned: From my conversations with Pink’s franchise representatives and their business strategy, I learned a TON. Pink’s is a window washing company that started in Austin, Texas, and they brilliantly decided to scale by franchising after building a successful business. They transformed a typical service business into a recognizable brand. Instead of the usual disorganized and messy approach, their team wears old-school uniforms and works cohesively. They even sell merchandise with the Pink’s logo—never thought that would work, but that goes to show there’s a market for everything!

Pink’s serves both residential and commercial clients and employs strategic marketing tactics. For residential areas, they offer free services to the first house at the entrance of a neighborhood and park their branded van there all day as a form of advertisement. For commercial areas, they target strip malls to secure multiple business contracts. We're seriously considering moving forward with this opportunity, so stay tuned!

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Expansion is both exciting and nerve-wracking. As you know, we are actively trying to expand; both vertically, and horizontally. The horizontal expansion is moving forward, as we are actively expanding our territory and increasing our marketing efforts. The horizontal expansion is moving slower (understandably), as we look to acquire other active businesses upstream from our current operations, but we will keep pushing forward. Keep the excitement. 

💰 Deals < $500k

Business Name: Dog Training Business in Chicago
Revenue: $724,800
Asking Price: $500,000
Profit: $350,170 (Profit Multiple = 1.43)
Location: Chicago, IL
Established: 2011

✅ Pros

• Multiple Revenue Streams: The business offers a variety of services, including basic obedience, puppy training, agility classes, and workshops, catering to diverse customer needs and enhancing revenue stability.

• High Customer Satisfaction: Customers appreciate the focus on socialization and building communication between dogs and owners, leading to repeat business and positive word-of-mouth.

⚠️ Cons

• Dependence on Local Market: The business is heavily reliant on the local market in Chicago, which could be a limitation for scaling beyond this area.

📈 Growth Opportunities

• Expansion of Services: Introducing advanced training programs or specialized classes could attract a wider audience and increase revenue.

• Online Training Modules: Developing online courses or virtual training sessions can tap into a broader customer base beyond the local region.

💰💰 Deals $500k - $2m

Business Name: Accounting and Tax Services
Revenue: $613,387
Asking Price: $1,500,000
Profit: $544,757 (Profit Multiple = 2.75)
Location: Knoxville, TN (Relocatable)
Established: 2011

✅ Pros

• Scalable Business Model: The business can serve clients nationwide through technology, providing flexibility and growth potential.

• Established Client Base: A solid client base in Florida and Tennessee with consistent year-over-year revenue growth offers a stable foundation.

⚠️ Cons

• Owner Dependency: The business is heavily dependent on the owner's expertise, which may pose a challenge during the transition to new ownership.

📈 Growth Opportunities

• Expansion into New States: Expanding services to additional states can increase market share and revenue.

• Digital Marketing Initiatives: Investing in digital marketing can enhance online presence and attract new clients.

💰💰💰Deals $2m-$10m

Business Name: Waste Management Company in Colorado
Revenue: $1,303,000
Asking Price: $3,300,000
Profit: $1,300,000 (Profit Multiple = 2.54)
Location: Peyton, CO
Established: 2016

✅ Pros

• Dominant Market Position: The company is the largest waste management provider in the region, with a strong customer base and fleet of trucks.

• Growing Market: The expanding population in Eastern El Paso County provides continuous growth opportunities.

⚠️ Cons

• Capital Intensive: The business requires significant capital investment in equipment and infrastructure, which can be a barrier for new owners.

📈 Growth Opportunities

• Service Area Expansion: Expanding services to new areas and communities can increase customer base and revenue.

• Recycling and Eco-friendly Initiatives: Introducing recycling programs and eco-friendly services can attract environmentally conscious customers and add a new revenue stream.

The Lean Startup: Ch. 4 Part 1

Chapter 4… Experimentation!

Eric has worked with many startups struggling to answer these questions:

• Which customer opinions should we listen to, if any?

• How should we prioritize across the many features we could build?

• Which features are essential to the product’s success and which are ancillary?

• What can be changed safely, and what might anger customers?

• What might please today’s customers at the expense of tomorrow’s?

• What should we work on next?

Do you struggle with these questions? Honestly, I…

Read more at corppivot.com!

Hope you enjoy this week's insights and happy deal hunting! Remember, if you find these updates helpful, share this newsletter with a friend!

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