👕 Laundromat for Sale Making $500k/yr!

Here’s what we have for you today:

Cool Business Idea: 

$10k Hole-in-One Challenge in New Zealand 🌊🏌️

Confusing Corporate Sayings:

“That’s a non-starter”

Professional Translation
“That’s too big of a road block and will stop the project before it gets going.“

Corporate Pivot Translation
“If bad ideas mean no work, I would’ve shared way more horrible things.“

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: Information was sent over for the hydraulic repair business, and it looks like a solid candidate! It’s a husband-and-wife team who run it and own it 50/50. They’ve both worked there since it opened over 40 years ago. The business has recurring contracts and great numbers, and it’s mostly absentee.

You might be wondering, “What do I know about hydraulic repair?” The answer is, as much as the next guy—meaning, not at all. But the owners will stay on for two years, which is key. That timeframe should give enough time to find replacements or get the training needed if, for some reason, I start to love repairing machinery, lol.

As it turns out, people like memes! This one got 75,000 views, and the account only has 60 followers 😂. Instagram has a strange process, but I think I’ve figured it out. They push content to different tiers of people, and based on the metrics—likes, shares, and comments per view—it then gets pushed to a larger audience. The first meme I posted was shown to 1,000 people but only got 10 likes, so it eventually capped out at 1,500 views. But this one tracked around 100 likes for the first 1,000 views, then it was pushed to 10,000 and later to 25,000 accounts. So it must have performed better. Moral of the story: be funnier, and they will watch!

thecorporatepivot

View more on Instagram

Tyler’s Perspective (Experienced Buyer)

🚨 Tip of the Week: If you don’t want to be an operator yourself, I probably don’t need to tell you how important it is to have a good operator. Luckily for us, when we first started looking into acquiring small businesses, we had a few people in mind that we felt could potentially be operators. Often times, you know many more potential operators (and more importantly, potential operators that you trust) than you may otherwise think. From family, to friends, to coworkers, you likely have a few operators that you would trust to be the day-to-day operator. I recently was told to find an operator, and then find a business around that operator. I think that’s pretty sound advice. Hopefully it helps narrow your search too. 

💰 Deals < $500k 💰

Business Name: Award-Winning Laundromat
Revenue: $500,000
Asking Price: $1,200,000
Profit: $500,000 (Profit Margin = 100%)
Location: Mercer County, NJ
Established: 2011

✅ Pros:

• Prime Location: Located in a high-traffic area with consistent footfall.

• Modern Systems: Coinless laundry card system streamlines operations and enhances customer convenience.

⚠️ Cons:

• Franchise Restrictions: Operating within a franchise model could limit flexibility.

📈 Growth Opportunities:

• Expand Services: Adding pick-up and delivery, as well as commercial accounts, could increase revenue.

• Niche Offerings: Growing the wedding gown cleaning service could attract a unique clientele.

💰💰 Deals $500k - $2m 💰💰

Business Name: Award-Winning Laundromat
Revenue: $500,000
Asking Price: $1,200,000
Profit: $500,000 (Profit Margin = 100%)
Location: Mercer County, NJ
Established: 2011

✅ Pros:

• Prime Location: Located in a high-traffic area with consistent footfall.

• Modern Systems: Coinless laundry card system streamlines operations and enhances customer convenience.

⚠️ Cons:

• Franchise Restrictions: Operating within a franchise model could limit flexibility.

📈 Growth Opportunities:

• Expand Services: Adding pick-up and delivery, as well as commercial accounts, could increase revenue.

• Niche Offerings: Growing the wedding gown cleaning service could attract a unique clientele.

💰💰💰 Deals $2m-$10m 💰💰💰

Business Name: Commercial Electrical Contractor
Revenue: $10,105,198
Asking Price: $7,995,000
Profit: $3,152,095 (Profit Margin = 31.2%)
Location: SE Florida
Established: 1977

✅ Pros:

• Strong Client Base: Established relationships in banking, education, and medical sectors drive recurring revenue.

• Experienced Team: Skilled project managers and electricians enable efficient project delivery.

⚠️ Cons:

• High Dependence on Commercial Contracts: Economic downturns could impact demand for large projects.

📈 Growth Opportunities:

• Expand Service Reach: Potential to enter new geographic markets within Florida.

• Increase Workforce: Hiring additional electricians could allow the business to take on more contracts.

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

The Lean Startup: Ch. 10 Part 2

Welcome back as we wrap up Chapter 10, and I know what you’re thinking… Vinny, one chapter in 2 parts, you know I can’t read that fast! Well, I have faith in you. You’ve made this far and we are almost done. You have almost read your first book! Today we are going to discuss the third engine of growth, product/market fits, and what to do when your engine eventually stops turning. 

The third engine of growth discussed is the Paid engine of growth. The basic understanding is “how much does it cost to sign up a new customer.” This may sound a bit out there, who would Pay to have a customer sign up to in turn pay their company. But that's the idea behind companies that pay add services to get in front of your eyes! If a company can increase its rate of growth, it can do so in one of two ways:

1. Increase the revenue from each customer

2. Drive down the cost of acquiring a new customer

Like the other engines of growth, the paid engine of growth is power by a feedback loop. Each customer pays a certain amount of money for the product over his or her “lifetime” as a customer. Once variable costs are deducted, this usually is called the customer lifetime value (LTV). Imagine that an ad costs $100 and causes fifty new customers to sign up for the service. The cost per acquisition (CPA) is $2.00. If the LTV is greater than $2.00 the product will grow, if its lower than the company’s growth will slow. 

There is a caveat… technically more than one engine of growth can operate in a business at a time. There is no reason why a product cannot have both high margins & high retentions. Generally speaking successful startup usually focus on just one engine of growth. Eric strongly recommends startups to focus on one. Only after pursuing one engine thoroughly should a startup consider a pivot to one of the others. 

Read more at corppivot.com!