🆕 Electrical Contractor Business Making $1.2m⚡️

Welcome Back to The Corporate Pivot!

Ever feel like you’re counting down the minutes until 5 PM like it's a race to freedom? Stop living for the weekends and start living on your terms. The Corporate Pivot is your guide out of the corporate grind and into the world of business ownership, where you call the shots and finally turn those daydreams into reality.

Confusing Corporate Saying of the Day:

Drink the Kool-Aid = Agreeing with someone’s ideas or philosophy without thinking or questioning (If someone says to do this, they’re probably really fun to work with… NOT)

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: TBD on the tree trimming business—we’re still in talks with the seller and have a meeting set up for after Labor Day weekend. The other businesses we’re considering are a commercial pool route and a bookkeeping business. Both meet our criteria with a 2-3x multiple and have been vetted for pros and cons. We usually look for something with recurring revenue, like contracts or a subscription-based model. These types of businesses are generally easier to secure SBA loans for and tend to pay off a little quicker. Stay tuned—we’re on pace and pushing things through. Exciting times ahead!

📚 Cool Business of the week: Automated Baked Goods Booth

No, I’m not talking about Girl Scout cookies (though those are always a win). I’m talking about a bake sale setup right at the end of someone’s driveway. Yesterday, I drove by one, and I couldn’t help but notice a line of people waiting to grab some homemade baked goods.

What’s genius about this? It’s all run on the honor system. No one’s standing there monitoring sales. You just drop your cash into a lockbox, take your baked goods, and go. A camera’s there to keep any would-be bakery thieves in check, but honestly, the thing runs itself. It’s simple, it’s easy, and it’s pure gold.

This kind of setup isn’t just for baked goods either. There’s a whole world of possibilities where you don’t need an employee babysitting the operation. Think along the lines of a self-serve produce stand, fresh flowers on the side of the road, or even a DIY craft booth. The key is in the simplicity—low maintenance, high trust, and even higher returns.

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Well, turns out my approach of transparency on the front end was beneficial with respect to the latest business we are looking at. Today the business owner provided answers to our (somewhat extensive) preliminary list of questions on the documents we initially received. While the answers reeked of typical seller/owner fodder (over-justification of why their assumptions are correct), there was a level of transparency and candor that most sellers/owners don’t usually have. This is obviously beneficial, as we were able to get answers on issues that otherwise would have taken a lot more diligence (and time) to uncover. I stand by previous comment that transparency with sellers/owners is a good approach. Stay tuned for more as we dig into the new information we received. 

💰 Deals < $500k

Business Name: Power Wash Company & Carpet Tile Cleaning Combo
Revenue: $575,000
Asking Price: $495,000
Profit: $180,000 (Profit Multiple = 2.75x)
Location: Bohemia, NY (Suffolk County)
Established: 2017

✅ Pros:

• Strong Brand Presence: The business boasts over 1,000 five-star reviews, indicating a solid reputation and customer loyalty.

• Diverse Service Offerings: The combination of power washing and carpet/tile cleaning provides multiple revenue streams.

⚠️ Cons:

• Owner Attention: The business may not be receiving full attention from the owner, which could impact operational efficiency.

📈 Growth Opportunities:

• Service Expansion: There is potential to add additional services like roof cleaning, shrink wrapping, and holiday lights.

• Increased Management Focus: With dedicated management, the business could further capitalize on its strong brand presence and expand its market share.

💰💰 Deals $500k - $2m

Business Name: 30 yr old Insulation & Solar Business
Revenue: Not specified
Asking Price: $1,875,000
Profit: $700,000 (Profit Multiple = 2.68x)
Location: Maricopa County, AZ
Established: Not specified

✅ Pros:

• Strong Management Team: The business is absentee-owned with a capable management team in place, reducing the need for direct owner involvement.

• High Scalability: The business model is highly scalable, with recent expansion into the Texas market and potential for further growth.

⚠️ Cons:

• Market Competition: The solar and insulation markets are growing, but they are also becoming increasingly competitive.

📈 Growth Opportunities:

• Geographic Expansion: The business has recently entered the Texas market and could continue expanding into other states.

• Product Line Diversification: There is potential to introduce new product lines or enhance the existing technology stack to increase market share.

💰💰💰Deals $2m-$10m

Business Name: Semi-Absentee Owned Electrical Contractor Business
Revenue: $7,311,423
Asking Price: $3,300,000
Profit: $1,235,746 (Profit Multiple = 2.67x)
Location: Charleston County, SC (Relocatable)
Established: 1952

✅ Pros:

• Established Reputation: With over 70 years in business, this company is a trusted name in electrical contracting, especially in specialized sectors like healthcare and hospitality.

• Skilled Workforce: The business employs a team of highly skilled electricians, which is a valuable asset in an industry facing labor shortages.

⚠️ Cons:

• Owner Dependency: The owner’s involvement in daily operations could present challenges during the transition.

📈 Growth Opportunities:

• Market Demand: The demand for electrical services is expected to remain strong, providing opportunities for revenue growth.

• Service Diversification: Expanding into related services or markets could further strengthen the company’s position and profitability.

The Lean Startup: Ch. 5 Part 4

Today we are going to be talking more about Genchi Gembutsu, the Customer Archetype, and a pesky thing we can ANALYSIS PARALYSIS… Now, go and get out the building! Go talk to your customers, go be like Toyota!

Customer’s behavior is measurable and changeable! They are breathing, thinking, buying individuals (hopefully… don’t want to be selling to dead people). If you have ever been at the store and decided to go with a different item because the package coloring is cool, then you have likely been CHANGED from the design of that product. For me it's Dove soap vs Dr. Squatch… The smells and colors are fun! 

“Startups need extensive contact with potential customers to understand them, so get out of your chair and get to know them.”

The first step is to make sure that…

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!

Looking to sell your business?