🆕 Make Millions w/ This IT Business! 💵

Welcome Back to The Corporate Pivot!

Want more than a pizza party for your contributions to the company? If you're done pretending that another promotion will fix your burnout, it’s time to consider a real change. The Corporate Pivot is here to help you swap pointless meetings for something that’s actually yours!

Confusing Corporate Saying of the Day:

You need to work harder, your numbers this quarter are terrible! = absolutely crushing it, probably getting a promotion.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: Finally diving into some real buyer/seller negotiation! This is the fun stuff, trying to understand their financials and also trying to figure out the real motivations for sellers that are wanting to get out. It’s not always easy to read people, but with the right questions you can typically get the answers you’re looking for. One of my favorite books is Never Split the Difference by Chris Voss and he teaches a lot of really cool techniques about negotiation. He is a former FBI hostage negotiator, so he is the real deal! I strongly suggest reading it, or if you all want I’ll convince Vinny to make it his next Mindset Matters book.

One of the key negotiation tips is the use of "tactical empathy." This involves actively listening to your counterpart and making them feel understood by labeling their emotions (e.g., "It sounds like you're frustrated by..."). This builds rapport and trust, making it easier to guide the conversation toward a mutually beneficial outcome.

💪 Challenge of the week: I asked for up to date financials for the tree business we are looking into and I received a picture that might as well look like this… maybe it says I’ll make $1m with $0 down?!

Even more reason to make a streamlined system without all of this back and forth! We will fix this problem that every broker site seems to have, stay tuned.

📚 Cool Business Lessons Learned: Fantasy Football Business.
Okay, hear me out. Like many others, I play fantasy football. Is it a waste of time? Not when you beat your buddy and get to trash talk him for the following weeks! Drafts are coming up, and it’s one of the more exciting parts of fantasy football. As you all know, I’m a nerd, so I like to look at the numbers and compare players strictly based on their average draft position and projected points.

There are a lot of different sites with their own ranking systems and projections, but that brings me to a cool business I almost considered paying for. This guy named Walter has something called WalterPicks. It’s an app where you can sync your league with his expert analysis and unique rankings. The model is genius because it offers limited functionality for free and then requires you to upgrade for more useful features, like comparing players or seeing rankings for lower-tier players. The app even makes money by letting you watch an ad to see a player comparison.

All pretty cool stuff, especially from a guy who loves fantasy football and wanted to turn that passion into a business. I love businesses and the creative ways they can make money, and that’s why this is the cool business of the week!

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Sam and I are currently looking at a new potential investment. One option when looking to acquire and grow is to take a minority ownership position in an existing business. In this instance, the founder and current operating team would stay in place, and we would serve as a capital injection, as well as strategic advisors to the company. The structuring on these types of deals can be very complicated, and in this instance our focus is on recouping our investment as soon as possible, so we are willing to accept less equity for a higher share of profits. Stay tuned. 

💰 Deals < $500k

Business Name: Dry Cleaning Pickup Station
Revenue: $546,148
Asking Price: $459,000
Profit: $208,362 (Profit Multiple = 2.2)
Location: Dallas County, TX
Established: 2003

✅ Pros:

• Prime Location: Situated in a busy retail strip with a high volume of foot traffic and a drive-thru, this business benefits from excellent visibility and accessibility.

• Resilient Business Model: Despite challenges from the COVID-19 pandemic, the business has not only survived but thrived, with projected sales exceeding $550,000.

⚠️ Cons:

• Outsourced Operations: Without an in-house plant, a significant portion of revenue (35%-40%) is paid to an outsourced dry cleaning plant, impacting profit margins.

📈 Growth Opportunities:

• In-House Plant Development: Converting available space into an in-house dry cleaning plant can maximize profits and reduce outsourcing costs.

• Proactive Marketing: Implementing local marketing strategies and enhancing online presence can attract new customers and expand the customer base.

💰💰 Deals $500k - $2m

Business Name: HVAC Service Company
Revenue: $3,687,627
Asking Price: $1,200,000
Profit: $590,844 (Profit Multiple = 2.03)
Location: Franklin County, OH
Established: 2012

✅ Pros:

• Strong Market Presence: The company has a solid market share with a loyal customer base, providing a stable income stream.

• SBA Financing Available: Zero down payment options through SBA funding make this acquisition accessible with low financial risk.

⚠️ Cons:

• Limited Lease Term: The current lease expires in early 2024, which could present challenges if the lease terms are unfavorable or if relocation is necessary.

📈 Growth Opportunities:

• Territorial Expansion: Expanding into untapped markets will enhance market presence and drive revenue growth.

• Leveraging Brand Reputation: The strong brand reputation can be used to secure additional contracts and enter new service areas.

💰💰💰 Deals $2m-$10m

Business Name: IT Field Services Management Company w/FMS Platform
Revenue: $12,000,000
Asking Price: $7,500,000
Profit: $2,000,000 (Profit Multiple = 3.75)
Location: Saint Cloud, MN (Relocatable)
Established: 2019

✅ Pros:

• Explosive Growth Potential: The company has secured major new contracts, with expected revenue growth to $20 million and EBITDA to $11.8 million by 2024.

• Innovative Proprietary Platform: The FMS platform offers a unique, scalable solution that differentiates the company from competitors and is poised to capture significant market share.

⚠️ Cons:

• Competitive Market: The company operates in a competitive space with established players like Field Nation and WorkMarket, requiring constant innovation to stay ahead.

📈 Growth Opportunities:

• Market Expansion: Entering new vertical markets such as hospitality and healthcare can significantly increase revenue streams.

• Client Base Expansion: Building on existing client loyalty and securing additional multi-year contracts will further solidify the company’s market position.

The Lean Startup: Ch. 5 Part 2

Today we will be talking about Analogs & Antilogs, as well as benign at the right place at the right time. You may be wondering what's an Analog, and what's an Antilog… well here are the definitions for those of you who may be not be too good with words.

• Analog: of or relating to

• Antilog: not relating to

So what the hell does this have to do with business? Well, you’re reading the book shouldn’t you know… JK I know you’re looking for something very insightful from us. There is nothing wrong with basing strategy on comparisons of other companies, or industries. If you are purchasing a pool business in Orlando, there is no problem with basing your strategy from other businesses! That would be what we call and ANALOG. That other business would be your analog. Those types of assumptions aren’t really leaps-of-faith. 

The best example of the analog-antilog example concept is…

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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