🆕 Relocatable Metal Stamping Business 📈

Welcome back to The Corporate Pivot!

Your go-to newsletter for actionable insights on making the leap from a 9-5 job to the limitless possibilities of business ownership and acquisition.

Confusing Corporate Saying of the Day:
"Let's circle back on that." = "I have no idea what you're talking about; I'll figure it out later."

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

💪 Challenge of the week: Here’s an honest challenge I’ve been facing that I’m sure some of you will encounter with buying your first business. It’s INTIMIDATING. I’m an engineer so I over think things as it is, but this is a big investment and I want to make sure I make the right one. The problem is, there will never be that 100% certainty feeling and if I keep looking for that, then I will never buy a business. The new goal is to refocus in, use all the tools that Corporate Pivot has to offer, and find something that has a 75% confidence value.

📚 Lessons Learned: Like a lot of you reading this, I'm super competitive. Theres no such thing as a friendly game of anything. But that drive to win, to be the best, is something that will take all of us to the success level we desire.

Now, think about this: is it easier to compete against five people or a hundred? That's where competitive analysis comes into play. When looking to buy a business, it’s not just about hard work and consistency, though those are crucial. It's also about being smart and strategic.

Competitive analysis helps you find businesses with little to no competition in the area, giving you a greater chance of success and longevity. By identifying market gaps and assessing competitors' strengths and weaknesses, you can position your new business for optimal success from the get-go.

And to make this process easier, I've developed a tool that does all the competitive analysis for you. It takes the guesswork out of the equation and provides you with clear, actionable insights. If you're interested in this tool, head over to our Discord and let us know! Your feedback will be invaluable as we fine-tune this resource to help you achieve your business goals. Why face unnecessary competition when you can strategically choose a business that's set up for success?

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Update of the Week: This week has been busy. Sam found two legitimate leads on possible acquisitions that we are pursuing. One lead would be a vertical acquisition in one of the industries we currently own a business in. The other lead would be a new industry for both of us, and would certainly require an additional operator. We are in the early stages, and as we’ve talked about before, proper due diligence is always required (especially in a new industry). Stay tuned. 

💰 Deals < $500k

Business Name: Profitable Metal Stamping Business for Sale in Michigan
Revenue: $565,699
Asking Price: $379,000
Profit: $217,748 (Profit Multiple = 1.74)
Location: Michigan (Relocatable)
Established: 1988

✅ Pros

• Consistent Revenue: The business has a steady revenue stream, indicating strong market demand and operational stability.

• Strong Industry Reputation: The company is well-regarded in the metal stamping industry, with a reputation for quality and reliability.

⚠️ Cons

• Limited Digital Presence: The business lacks a robust online marketing strategy, potentially missing out on reaching a broader customer base.

📈 Growth Opportunities

• Market Expansion: Exploring new markets or sectors can increase the customer base and drive revenue growth.

• Digital Marketing Initiatives: Developing an online presence, including a website and social media, could attract new clients and enhance brand visibility.

💰💰 Deals $500k - $2m

Business Name: Property Management and Travel Agency
Revenue: $2,000,000
Asking Price: $1,500,000
Profit: $700,000 (Profit Multiple = 2.14)
Location: Myrtle Beach, South Carolina
Established: 1993

✅ Pros

• Diverse Revenue Streams: The combination of property management and travel agency services offers multiple income sources.

• Strategic Location: Located in a popular tourist destination, the business benefits from consistent demand for vacation rentals and related services.

⚠️ Cons

• Seasonal Revenue Variability: Revenue may fluctuate seasonally, impacting cash flow and profitability.

📈 Growth Opportunities

• Property Portfolio Expansion: Acquiring additional properties or managing more units can increase revenue and market presence.

• Enhanced Marketing: Strengthening online and digital marketing efforts can attract more customers and bookings, boosting overall business performance.

💰💰💰Deals $2m-$10m

Business Name: Municipal Water Department Compliance Agency
Revenue: $2,024,411
Asking Price: $6,500,000
Profit: $1,333,233 (Profit Multiple = 4.87)
Location: Tampa, Florida
Established: 1998

✅ Pros

• High Client Retention: A 97% client retention rate ensures consistent revenue and long-term customer loyalty.

• Specialized Services: The business operates in a niche market with limited competition, providing specialized compliance services.

⚠️ Cons

• Regulatory Dependence: The business's success is closely tied to regulatory requirements, which could change and impact operations.

📈 Growth Opportunities

• Service Diversification: Adding new compliance-related services could attract more clients and increase revenue streams.

• Geographic Expansion: Expanding services to other regions or states could broaden the customer base and enhance market share.

The Lean Startup: Ch. 3 Part 4

WOW… 4 parts! Can you believe that? Well you’ve made it to the end of Chapter 3 and now we are going to talk about IMVUs pivot through the lessons that could be taught from IMVU’s successes & struggles. 

Eric realizes that for their strategy they had to throw away his work… Can you imagine how that feels! Months of your life trying to make a product and realizing success was literally in a 180° direction from what you thought. Let's be honest, if you want to run a successful business you need to look in the mirror and get rid of the waste, even if YOU are the one creating the waste. What's better, create something nobody wants but keep all your work, or throw away your work, fix it and provide a product your customer can consume. 

“In other words, which of our efforts are value-creating and which are wasteful?”…

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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