🆕 Scuba Diving & You Make Money Too?!

Welcome to Another Thursday Installment!

We’re back with some more new features and content. We now have a Corporate Pivot discord and would love if you joined to give feedback and tell us whats useful, what you want to learn, and what straight up stinks (so we can delete it and never talk about it again). Join the discord by clicking here!

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕Status Update: While I’m still analyzing businesses and signing NDAs to get the in depth financials, I thought it would be a good idea to talk with a successful entrepreneur who owns and operates a crypto mining farm. I know what you’re thinking, crypto? NO THANKS. But after talking with him and learning about his mining farm operation with over $300k worth of equipment, it caught my eye. The cool part about this business is that it already paid itself off when the crypto boom hit and now he is just raking in the money. He took a risk when trends were going in the right direction and now that risk paid off. You can think of his business the same as buying a business. He had to find the funding to buy all the equipment, he used a proven plan that he knew would work, and he learned what he needed to learn in order to make it work. When equipment broke, he fixed it and used warranties to the best of his advantage. Though crypto is still insanely volatile, he has a profitable business and has learned a lot from it.

📈Key Takeaways: Scale early and scale smart. His idea was to go big right away to capitalize on the market and trends. That approach should be taken for any business, even when buying one. Also learning as you go is part of what entrepreneurship is all about. It’s part of the fun. You will never know everything at the start, but you do need to start somewhere.

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Despite what some people may tell you, buying your first business can be difficult. We are actively looking to buy more businesses, and it is still a challenging process. Often times new entrepreneurs can be overwhelmed  with the amount of businesses they look at. Consider creating a spreadsheet to keep track of the status on each deal you are analyzing (including contact information and any due diligence you’ve received) and to help prioritize your top choices. 

💰 Deals < $500k

Business Name: Successful Absentee Nail Salon
Revenue: $425,000
Asking Price: $260,000
Profit: $170,000 (Profit Multiple = 1.53)
Location: Morris County, NJ
Established: 2013

✅Pros

• Excellent Traffic: Located in a busy strip center attracting high foot traffic.

• Reputable and Profitable: Known for its quality services and strong profitability.

⚠️Cons

• Moderate Competition: Presence of other nail salons in the vicinity.

📈Growth Opportunities

• Owner Operation: Transition to an owner-operated model to increase revenue.

• Marketing Efforts: Implement targeted marketing strategies to attract new customers and boost sales.

💰💰 Deals $500k - $2m

Business Name: Profitable Dive Shop with Multiple Dive Boats and Real Estate Revenue: $1,000,000
Asking Price: $995,000
Profit: $400,000 (Profit Multiple = 2.49)
Location: Florida
Established: 1989

✅Pros

• Turn-Key Operation: 36-year established business with experienced staff and modern facilities.

• Year-Round Revenue: Continuous bookings for classes and tours ensure steady income throughout the year.

⚠️Cons

• Not Included in Asking Price: Real estate priced at $1,200,000 is not included in the asking price.

📈Growth Opportunities

• Expand Offerings: Introduce new diving and snorkeling packages to attract more customers.

• Marketing Strategies: Enhance online presence and targeted marketing to boost bookings and revenue.

💰💰💰Deals $2m-$10m

Business Name: Premier Tri-State Suspended Scaffolding Services
Revenue: $7,719,976
Asking Price: $6,000,000
Profit: $1,501,889 (Profit Multiple = 4.00)
Location: Queens County, NY
Established: 2009

✅Pros

• Comprehensive Services: Full-service provider handling all aspects of scaffolding including engineering, permitting, and installation.

• Dedicated Team: Experienced and loyal employees ensuring high-quality execution and client satisfaction.

⚠️Cons

• Real Estate Not Included: HQ office real estate priced at $3,500,000 is not included in the asking price.

📈Growth Opportunities

• Service Expansion: Opportunity to expand services into elevator hoists and permanent installations.

• Geographical Expansion: Potential to extend services beyond the New York metro area into new markets.

The Lean Startup: Ch. 2 Part 2

Welcome back! A deep dive into SnapTax, a true entrepreneurial effort. SnapTax wanted to automate the process for collecting information found on a W-2. How could they make it possible to finish the tax return right on your phone? I’m sure most of you have actually used what SnapTax eventually became… you’ll see who it is later. Instead of having customers fill out hundreds of questions SnapTax decided to allow their sample customers to take a photo of their tax documentation and used technology to covert the images into a 1040 EZ form. 

They started with a simple VISION: MAKE TAXES EASIER….

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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