🆕 There's Big Money in Playground Equipment?! 📈

Welcome Back to The Corporate Pivot!

Tired of acting interested on Teams calls just to say “thanks” at the end? Well then The Corporate Pivot is your playbook for breaking free. We’re here to show you how to buy small businesses that give you your time back and put you in charge of your future. No fluff, no nonsense—just straight-up strategies and insights that cut through the BS. Whether you’re new to the game or a seasoned pro, we’ll help you make the leap from the grind to the good life.

Confusing Corporate Saying of the Day:

Run it up the flagpole = follow the chain of command. Your boss will ask their boss and then their bosses boss and in 3 short weeks you will have an answer to your question.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: This week, we shifted our focus from pool resurfacing to exploring new leads involving companies with unique certifications that give them a competitive edge. Tyler and I also started compiling a list of local businesses that aren't actively for sale but show potential. This is definitely a learning experience, as it essentially involves cold calling. Reaching out to business owners with a proposal to see if they're interested in selling is challenging but could be very rewarding. You might discover businesses for sale with little to no competition, which opens the door to creative deal structuring.

We're actively working on identifying, vetting, and supplying off-market leads to interested business buyers. This service will be exclusively available to Corporate Pivot Subscribers, so stay tuned!

📚 Cool Business of the Week: CarEdge. A business that stemmed from YouTube channel that just informed people about car prices and negotiation tactics that turned into a full on business. They provide a database of all the information you would need to negotiate price including dealer profit margins, and price projections for each vehicle all for a monthly fee. The really cool option that they have is a service for around $1000 where you tell them what car you want to buy and they do it for you. If they don’t save you at least $1k on the purchase, then you get your money back. Free money! Sometimes it’s best to leave it to the professionals who might have better relationships and tactics. Paying for a service like this sounds awesome and it can be applied in many different areas. I might even use it for my next vehicle purchase! GMC Sierra here I come…

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: This week we started working on our marketing efforts to continue our expansion. While this might seem simple, we want our marketing campaign to be targeted, and specifically, in our case, to households with pools. Sorting out households that don’t have a pool has been much more difficult than you would expect. From our “beta tests” it looks like traditional marketing (flyers, pamphlets, business cards, etc.) are still very successful in the home service industry. Another advantage of this form of marketing is that we are able to target neighborhoods that we currently have customers in, and continue to tighten up our geographic coverage. A tight geographic range in a route-based home service business is crucial. 

💰 Deals < $500k

Business Name: Turnkey Highly Profitable Packaging and Shipping
Revenue: $194,675
Asking Price: $124,225
Profit: $87,242 (Profit Multiple = 1.42x)
Location: Seminole County, Florida
Established: 2023

✅ Pros:

• Prime Location: Situated on a busy road, the business benefits from high visibility and a steady flow of customers, ensuring consistent revenue.

• Strong Brand Partnerships: Relationships with major carriers like FedEx, UPS, and DHL provide reliability and trust for customers.

⚠️ Cons:

• New Business: Established in 2023, the business is relatively new, which may present challenges in proving its long-term profitability and stability.

📈 Growth Opportunities:

• Service Expansion: Adding complementary services like document shredding or virtual mailbox services could attract more customers and diversify income streams.

• Online Presence Development: Enhancing online marketing and offering e-commerce services could reach a broader audience and drive additional revenue.

💰💰 Deals $500k - $2m

Business Name: Playground Equipment plus AstroTurf Safety Floor Sales & Install
Revenue: $1,604,264
Asking Price: $850,000
Profit: $412,038 (Profit Multiple = 2.06x)
Location: Pinellas County, Florida
Established: 1995

✅ Pros:

• Longstanding Reputation: Established in 1995, the business has built a strong reputation in the community and across the state, ensuring a loyal customer base.

• Diverse Clientele: The business serves a broad spectrum of clients, including parks, HOAs, churches, and commercial properties, providing a stable revenue stream.

⚠️ Cons:

• Intensive Labor Requirements: With 21 employees, the business requires a large workforce, which may present challenges in managing labor costs and maintaining efficiency.

📈 Growth Opportunities:

• Geographic Expansion: Expanding services to neighboring states or even nationwide could open up new revenue streams and reduce dependency on the Florida market.

• Product Line Diversification: Introducing new products such as playground accessories or safety certifications could attract additional clients and increase sales.

💰💰💰Deals $2m-$10m

Business Name: E-Commerce Online Pool Supplies
Revenue: $4,066,199
Asking Price: $3,000,000
Profit: $1,123,469 (Profit Multiple = 2.67x)
Location: Okeechobee County, FL
Established: 2011

✅ Pros:

• Established E-commerce Platform: A well-established online presence specializing in pool supplies, providing a steady stream of revenue from DIY pool builders across the U.S.

• Significant Inventory Included: $2.5 million in inventory is included in the asking price, allowing the buyer to start operations with a full stock of products.

⚠️ Cons:

• High Initial Investment: The asking price is relatively high, requiring significant capital upfront, particularly when considering the additional real estate costs.

📈 Growth Opportunities:

• Expansion of Product Lines: Adding complementary outdoor living products, such as patio furniture and outdoor kitchens, could attract a wider customer base.

• International Market Expansion: Exploring opportunities to sell products internationally, especially in regions with growing DIY pool markets, could significantly increase sales.

The Lean Startup: "How Vision Leads to Steering"

Good morning, we made it through Part 1! It took us about 6 weeks to get through Part 1, and I would say you are a superstar to make it this far.

Remember, you started this whole process without knowing how to read. Now, you may not have any reading comprehension, so if you need to go back and read anything from The Lean Startup, you can follow this link below:

In Part 1 we saw that the products a startup builds are really experiments, and learning about how to build a sustainable business is the outcome of those experiments. The information from those experiments is far more important than dollars, awards, or mentions in the press. Not because $$ is bad but knowing your experiment outcome can influence and reshape the next set of ideas. Check out this in action with the image below.

In Part 2 we will examine the Build-Measure-Learn feedback loop in detail. Opposed to getting very good at ⅓ (Learn, Build, or Measure) or the feedback loop, the goal should be to focus your energy on minimizing the total time through the feedback loop. 

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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