🆕 Pool Route Cash Cow?

Another day, another step closer to financial freedom! Welcome back to The Corporate Pivot, where we not only provide actual business buyer insights but also showcase real examples of businesses you can buy!

Here’s what we have for you today:

Sam’s Perspective (Aspiring Business Owner)

Who am I?

The 1st question you’re probably asking is, who is this guy and why do I care? I’m just an employee, trying to make the pivot into business ownership. I’m a mechanical engineer and have been working the corporate ladder for 4 years now. I’m lucky enough to have friends that can mentor and teach me to buy my first business. I’ll be the boots on the ground, real time feedback guy for all the good and bad for everything related to buying a business. I’m using the tools and learnings we create along the way, so you can do the same thing and follow in my footsteps!

📚 Story Time: First Try at Starting a Business (Flipping Items) 

Why?: I’ve always wanted to start a business and just like everybody I thought I could grow it to an insane size and then quit my job. The idea was simple: source leads, buy it at a low price, sell it at a higher price. I was already flipping items in my spare time, so it made sense to try to make a business out of it to help others. I found consistent ways to make investments in pre-sale tickets, sneaker investments and sports card investments. My claim to fame was buying a $100 basketball card of Jayson Tatum and I sold the card for 10x. Insane right? For a piece of cardboard. I had a decent following and provided value where people were making decent money on the side. The discord group provided automations and user benefits like giveaways and bot access to try and get some sneakers that people wanted.

📈Upside:

• Fully Remote

• Subscription Model

• Already knowledgable on the business

📉Downside:

• Didn’t charge enough monthly

• Large time commitment

• New client acquisition was difficult

Lessons Learned: Automations and social media marketing are skills I can take away from this venture. Startups are very difficult and hard to scale. I wish there was something that gave me the blueprint on what to do and how to do it. That’s why I wanted to provide this story. The corporate pivots main goal is to help you buy an existing business and improve it. I’m still yet to buy one, but I’m lucky enough to have friends that have like Tyler. Let’s learn and grow together!

Tyler’s Perspective (Multiple Businesses Owned)

Pool Cleaning Business Acquisition

Introduction:
What does a lawyer have in common with a pool boy? More than you might think. No, this isn’t the setup for a riddle or a cheesy dad joke—it's actually the surprising truth about my career transition.

My Journey:
As a lawyer, the thought crossed my mind just as it might have crossed yours: "How can I regain control over my time and freedom?" After considering various options, I decided that acquiring small businesses could be the key to escaping the corporate grind.

Why a Pool Service Business?
I already had investments, but diving into the pool service industry seemed like the best move for my goals. Why? Because it promised immediate cash flow and potential for wealth generation—critical factors for anyone looking to replace their corporate salary.

Operational Excellence:
Finding a business with a trusted operator already in place was crucial. This isn't just a detail—it's often the make-or-break factor in small business success. With a solid team handling day-to-day operations and back-office tasks, I could focus on strategic growth. The pool service business is also known for its high profit margins and straightforward, scalable model.

Takeaway:
You never know what might pave the path for your corporate exit. Sometimes, the most unexpected opportunities can lead to the most fruitful ventures. You, too, could find success in a completely new field—maybe even as a pool boy!

Join Our Journey:
Interested in learning more and possibly making your own pivot? Subscribe to our newsletter to follow my journey and find inspiration for your own!

💰 Deals < $500k

Business Name: Profitable HVAC Business
Revenue: $678,042
Asking Price: $477,000
Profit: $401,953 (Profit Multiple = 1.19)
Location: Riverview, Florida
Established: 2006

✅ Pros

• High Profit Margins: The business maintains a high profitability with a profit margin of nearly 59%, showcasing efficient operations and strong financial health.

• Established Customer Base: With over 2,000 accounts and potential for more service contracts, the business has a solid foundation and recurring revenue streams.

• Operational Flexibility: This business can potentially be run absentee with proper management, offering flexibility for the new owner.

• Seller Financing Available: The availability of seller financing can ease the initial financial burden on the buyer and facilitate a smoother transition.

⚠️ Cons

• Limited Operating Hours: Current operating hours (closing weekdays at 5:00 p.m. and closed on weekends) may restrict business growth and customer reach.

• Dependence on Owner’s Experience: With the owner having over 41 years of experience, there might be a significant knowledge gap post-transition, affecting service quality.

📈 Growth Opportunities

• Expanding Operating Hours: Extending business hours and opening on weekends could significantly increase customer engagement and revenue.

• Service Contract Expansion: There is room to grow by actively pursuing and accepting more service contracts, especially given the existing customer base’s potential.

• Targeting Commercial Clients: Increasing focus on commercial clients could diversify revenue streams and lead to larger, more stable contracts.

💰💰 Deals $500k - $2m

Business Name: Batch Plant and Concrete Ready Mix Business
Revenue: $1,100,000
Asking Price: $1,350,000
Profit: $840,000 (Profit Multiple = 1.61)
Location: Orlando, Florida
Established: 2019

✅ Pros

• Strong Profitability: With a cash flow of $840,000 from a revenue of $1,100,000, the business maintains an impressive profit margin.

• Complete Business Assets: Includes $870,000 in both inventory and FF&E, providing a substantial asset base at the outset.

• Experienced and Committed Team: The existing team's expertise and willingness to stay post-acquisition ensure continuity and stability.

• Operational Autonomy: Ownership of a mobile batch plant enhances operational efficiency and self-sufficiency, reducing reliance on third-party suppliers.

⚠️ Cons

• Market Competition: The construction and concrete industry is highly competitive, which could pose challenges in maintaining market share.

• Capital Intensive Assets: High value of included assets necessitates ongoing maintenance and could imply significant reinvestment costs.

📈 Growth Opportunities

• Expansion of Service Range: Broadening the range of services to include more specialized or advanced concrete construction projects can attract a wider clientele.

• Geographical Expansion: Expanding operations into new areas within and outside of Florida could significantly increase market reach and revenue streams.

• Technological Upgrades: Investing in advanced technology for project management and operation logistics can further enhance efficiency and client satisfaction.

💰💰💰Deals $2m-$10m

Business Name: Marine Construction Company
Revenue: $10,000,000
Asking Price: $5,500,000
Profit: $2,000,000 (Profit Multiple = 2.75)
Location: Melbourne, Florida
Established: 2018

✅ Pros

• Established Market Leadership: As the largest marine construction company in Central Florida, the business holds a significant competitive advantage in the region.

• Strong Financials: With a gross revenue of $10,000,000 and a cash flow of $2,000,000, the company demonstrates robust profitability and financial health.

• Valuable Assets Included: The sale includes $1,000,000 in inventory and FF&E each, and real estate valued at $1,500,000, providing substantial intrinsic value.

• Positive Growth Projections: Projections for 2023 indicate sales exceeding $5M with a 40% NOI, highlighting potential for further financial growth.

⚠️ Cons

• Dependence on Local Market: The company's operations and revenue are primarily dependent on the Central Florida market, which may pose risks if local economic conditions fluctuate.

• Management Transition: The retirement of the current owner could lead to transitional challenges if new management is not adequately prepared.

📈 Growth Opportunities

• Expanding Operational Territories: Extending service offerings to nearby regions could tap into new markets and customer bases.

• Technological Enhancements: Implementing advanced project management and CRM systems could significantly streamline operations and improve customer relationships.

• Diversification of Services: Introducing new services such as environmental marine construction could open up additional revenue streams in growing sectors.

The book that changed my outlook on the 9-5… 👀 

The 4 Hour Workweek by Timothy Ferris

Thoughts: I’ve read this book 2 times (Well audiobook, but it still counts). I used Amazons Audible on the way to work and knocked it out in 2 weeks. It’s a quick read/listen, but I really do think it’s important to learn. He talks about automating all the little things in life and making time for things that are worth living for. It’s crazy motivating and very informative on how you can get your time/freedom back. It is one of the best books I’ve ever read and it is one of the contributing factors for wanting to get into business. I took the first step he suggests and got my job remote, so I am one step closer to getting out of the rat race! Give it a shot and you can tell me if I'm wrong after you read. For those of you that are motivated and a little nerdy (the perfect combination) you'll love this book. 10/10

Looking to sell your business?