⚙️ Established Hydraulics Repair Shop Making $330k/yr!

Here’s what we have for you today:

Cool Business Idea: 

💍 Wedding Arch Rental Business from Reddit

Confusing Corporate Sayings:

“Urgent: Verify your password to receive your surprise salary increase!”

Professional Translation
“Sounds like it could be a phishing attempt. I better report this“

Corporate Pivot Translation
“There’s a 1% chance this is real but you miss all the shots you don’t take…“

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: Tyler and I have a call Friday with a guy who knows all about franchises. Buying existing franchises is another route for buying a business—just a different way of doing the same thing. Sometimes you’ll see franchises listed on places like BizBuySell, but a lot of them have other means of being acquired. You see things like UPS Stores or how Shaquille O’Neal made a chunk of his money with Papa John’s franchises, even though I’m personally not a fan of food franchises. Resi Brands is actually where I learned a lot about the franchising model.

Pros of Franchises:

• Instant Brand Recognition: You’re starting with a name people already know and trust, so there’s an immediate credibility factor.

• Built-In Branding and Marketing: No need to start from scratch on social media or marketing; the brand’s already got that covered. Sometimes you even get leads thrown your way, like with Pink’s Window Washing.

• Support and Resources: Most franchises come with established operating procedures, training, and support. You’re not reinventing the wheel here, and you’ll have resources if you need them.

Cons of Franchises:

• Royalties and Fees: With that head start comes a never-ending royalty payout and a big franchise fee upfront, which eats into profits fast.

• Limited Autonomy: You’re running someone else’s brand, which means strict guidelines on everything from décor to product offerings. There’s not a lot of room to get creative.

• Owner-Operator Requirement: Here’s an interesting twist: if you’re buying just one franchise, they usually want you to be an owner-operator, which isn’t ideal if your goal is hands-off ownership. Essentially, that’s just buying another job.

So, there are pros and cons to it, but franchising is definitely a tried-and-true method of getting into business. It’s about deciding if the trade-offs work for what you want.

Tyler’s Perspective (Experienced Buyer)

🚨 Tip of the Week: There are many things in the corporate world that you aren’t prepared for or taught how to deal with (either through schooling or general training). For example, communication, both in terms of efficacy and frequency, is a difficult thing to deal with. While there is obviously less bureaucracy in the small business acquisition world, similar issues exist. This week, Sam and I received partial information on an organic lead we are working on. As we talked about before, you often have more diligence to perform on deals like that. A few days went by, and we still hadn’t received the rest of the information we requested. Naturally, this begs the question of when do you follow up, and how do you address it. My usual viewpoint, is that as the buyer, you’re in the drivers seat and should never be hesitant to ask for anything, and to have it presented on your schedule. This is a bit different, since we approached the seller. I decided to wait a bit longer, and then responded with a note thanking them for the initial information, and letting them know we’d have additional questions on the information they provided but would hold off until we reviewed all of the information. We’ll see how it works. 

💰 Deals < $500k 💰

Business Name: Pavement Maintenance Company
Revenue: $1,549,129
Asking Price: $499,500
Profit: $549,664 (Profit Margin = 35.5%)
Location: Hartford, CT
Established: 2012

✅ Pros:

• Recurring Revenue: Long-term maintenance contracts provide steady income.

• Low Overhead: Operates as a home-based business with minimal expenses.

⚠️ Cons:

• Seasonal Demand: Business may fluctuate based on seasonal weather patterns.

📈 Growth Opportunities:

• Expand into New Services: Floor coating and industrial applications can drive additional revenue.

• Target B2B Markets: Increased outreach to commercial properties could secure larger contracts.

💰💰 Deals $500k - $2m 💰💰

Business Name: Hydraulics Repair Business
Revenue: $1,200,000
Asking Price: $963,000
Profit: $330,000 (Profit Margin = 27.5%)
Location: Greater Tampa Bay, FL
Established: 1978

✅ Pros:

• Reputation for Excellence: Known for handling complex repairs that other shops avoid.

• Experienced Staff: Owners are willing to stay temporarily, ensuring a smooth transition.

⚠️ Cons:

• Lacks Online Presence: No website or social media reduces visibility and customer reach.

📈 Growth Opportunities:

• Expand Marketing Efforts: Launching a website and social media could attract new clients.

• Increase Shop Size: Relocating to a larger facility would allow for higher service capacity.

💰💰💰 Deals $2m-$10m 💰💰💰

Business Name: Farmer's Market and Nursery
Revenue: $7,583,100
Asking Price: $5,999,000
Profit: $1,639,590 (Profit Margin = 21.6%)
Location: Florida
Established: [Year Not Provided]

✅ Pros:

• Lender Pre-Qualified: Financing options are available, making it accessible to qualified buyers.

• Community Favorite: Strong brand loyalty with a long history in the local market.

⚠️ Cons:

• High Initial Investment: Purchase price and optional real estate cost can be prohibitive.

📈 Growth Opportunities:

• Expand Product Range: Adding specialty and seasonal items can attract more customers.

• Develop E-Commerce: An online store for local delivery or pickup could boost sales.

**If today is your first day reading, go to Chapter Recaps to get up to speed!

The Lean Startup: Ch. 9 Recap

Alright, folks, welcome to the Chapter 9 Recap—or as we like to call it, “The Great Batch Size Smackdown.” This chapter is all about why small is mighty when it comes to production. If you thought you could win in business by going big or going home, Eric Ries is here to tell you that, actually, going small and staying put might just be the key to startup glory.

We kick things off with the envelope-stuffing showdown from Lean Thinking. Two dads vs. their kids, each team trying to mail out newsletters the fastest. The dads go “one-envelope-at-a-time” (a.k.a. single-piece flow), while the kids batch their steps. Turns out, doing one envelope start-to-finish trumps the batch method. Why? Because it prevents that “oh-no-I-made-a-mistake-on-all-500” moment and keeps the process smooth. Lesson here? Small batches prevent headaches and avoid the large-batch death spiral.

Then we jet over to IMVU, where Eric’s team takes Toyota’s famous small-batch method and gives it a software twist. Instead of clumping all updates together (like waiting for a new iPhone every year), IMVU rolls out features one-by-one, a system called continuous deployment. It’s like Toyota’s quick-change assembly line, but with code—and every mistake gets squashed before it snowballs.

From here, we’re on a roll with examples. SGW Designworks? They used small batches to prototype a military-grade field x-ray system in a matter of days. School of One? They ditched “one-size-fits-all” education for personalized learning playlists. Then there’s Alphabet, not Google (keep your stock-bro hats on), showing us how small-batch thermoelectric experiments kept them nimble enough to pivot after three months.

And finally, we end with a little lean manufacturing wisdom: ditch the stockpile. Toyota taught us that instead of hoarding a massive inventory “just in case,” use a pull system where you only produce what’s needed. For startups, the “pull” comes from testing hypotheses quickly, learning what works, and adapting faster than your competition. In Eric’s words, “The ability to learn faster from customers is the essential competitive advantage that startups must possess.”

Read more at corppivot.com!