🆕 Home Inspection Biz w/ Great Numbers💰

Welcome Back to The Corporate Pivot!

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Confusing Corporate Saying of the Day:

Let’s get our ducks in a row = Let’s figure out a plan, cause we’re all over the place.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: I used the Business Buying Calculator on The Corporate Pivot website (corppivot.com) to analyze the pool resurfacing business. It passes all the checks like DSCR (The bank will give a loan for this business) and the break even time is solid.

📚 Lessons Learned: Business Marketing in Golf

This is a lesson for my wallet because I’m hooked. I’m talking about the most addicting thing in the world: competition.

One of the local golf courses near me added Toptracer technology to their range. It not only leveled up the appeal of their course but also showcased genius marketing. You can create a profile and compete in monthly competitions like “closest to the pin” and “long drive competition.” This gave the course a basis to raise their prices slightly, and it’s justified.

I continue to go back more than I normally would just because I want to compete on the leaderboard. The winner every month gets $50, and because everyone is working towards first place, you end up spending more than that just to be at the top. The monitors even say nice things like "please don’t hit the ball out of bounds" and "maybe you should find another hobby"... okay, maybe that’s just how I feel after swinging out of my shoes, but still.

In all seriousness, it’s a genius marketing play that gets people to come back more than they would normally. The point of this lesson is to be unique. I'll drive farther and pay more just because it's something that no other course has. If you create a community and get them to interact and compete, they’ll spend more than they normally would… take it from me, a customer who it worked on.

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Quality service can be shown in many ways. With our new customers, we started by reaching out via email (to ensure we have written communication on all payment matters) and followed up with a telephone call from the operator. We wanted them to at least have a voice associated with their new routes (and they’ll likely have a face to put with it this week). Best case scenario in a service based business (especially one with weekly servicing), is to never hear from your customers (aside from the occasional referral), but in the event you do hear from them, it’s nice to start out on the right foot. 

💰 Deals < $500k 

Business Name: Profitable Home Based Inspection Business
Revenue: $145,945
Asking Price: $160,000
Profit: $105,344 (Profit Multiple = 1.52)
Location: Tennessee (Relocatable)
Established: 1999

✅ Pros:

• Established Business: This business has been operating successfully since 1999, providing a stable income stream.

• Low Overhead: As a home-based business, the overhead costs are minimal, maximizing profit margins.

⚠️ Cons:

• Relocatable Nature: Although relocatable, moving the business might disrupt operations temporarily.

📈 Growth Opportunities:

• Expand Service Area: Increasing the service area to neighboring states could significantly boost revenue.

• Add New Services: Introducing additional inspection services, such as mold or radon testing, can attract a broader customer base.

💰💰 Deals $500k - $2m 

Business Name: Absentee Moving and Storage Company With Incredible Team
Revenue: $1,253,000
Asking Price: $799,000
Profit: $385,000 (Profit Multiple = 2.08)
Location: Nashville, TN (Davidson County) (Relocatable)
Established: 2006

✅ Pros:

• Semi-Absentee Ownership: The business requires minimal owner involvement, offering a great work-life balance.

• Experienced Team: A competent team, including a General Manager and Office Manager, ensures smooth operations.

⚠️ Cons:

• Lease Dependency: The business relies on leased land, which could pose risks if the lease terms change.

📈 Growth Opportunities:

• Increase Marketing Efforts: Implementing a targeted marketing strategy can attract more clients and increase revenue.

• Expand Fleet: Adding more vehicles to the fleet can help scale operations and handle more moving jobs simultaneously.

💰💰💰 Deals $2m-$10m

Business Name: Painting Contractor with Industry Ties and Loyal Clients
Revenue: $3,499,000
Asking Price: $2,900,000
Profit: $875,000 (Profit Multiple = 3.31)
Location: Lake Worth, FL (Palm Beach County)
Established: 1995

✅ Pros:

• Strong Industry Relationships: The business has longstanding relationships with major homebuilders, ensuring a steady stream of projects.

• Loyal Client Base: A loyal customer base reduces marketing costs and ensures repeat business.

⚠️ Cons:

• Competitive Market: The painting industry is highly competitive, with many players vying for market share.

📈 Growth Opportunities:

• Geographic Expansion: Expanding to new regions can increase market presence and revenue.

• Technology Integration: Investing in digital project management tools and innovative painting techniques can enhance efficiency and service quality.

The Lean Startup: Ch. 4 Part 3

As we continue to discuss EXPERIMENTATION you will see two examples from two polar opposite industries and economic situations. Experimentation in the Lean Startup is more than just theoretical, it’s your first product. If you are successful with your experiment it will allow you to get started with your campaign leading to eventually building a product.

“Unlike a traditional strategic planning or market research process, this specification will be rooted in feedback on what is working today rather than in anticipation of what might work tomorrow.”

The first example comes from Kodak. You know the camera people!

Ok well they used to just be the camera people, but today they also have a significant online business called Kodak Gallery. Mark Cook (Kodak Gallery’s VP or products) is working to change their culture from development to embrace experimentation.

“I try to push my team to first answer four questions:

1. Do consumers recognize that they have the problem you are trying to solve?

2. …

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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