🆕 There's Huge Demand for Air Purification?! 🤯

Welcome Back to The Corporate Pivot!

Tired of going above and beyond just to get that juicy 2.5% raise? You deserve a higher ceiling for your efforts (maybe even 2.6% 👀). Follow along with The Corporate Pivot, the newsletter that opens your eyes to real-world strategies for breaking free from the corporate grind. Whether you’re aiming to buy your first business or scale your existing ventures, we’re here to show you how to reclaim your time and build a legacy worth more than any annual review.

Confusing Corporate Saying of the Day:

I currently don’t have the bandwidth for that = I’m actually too busy OR I don’t want to do that, so I will make it seem like I’m overloaded with work.

Here’s what we have for you today:

Sam’s Perspective (1st Time Buyer)

🆕 Status Update: Still on the journey to buy that first business! We’ve got a few things in motion that we're still vetting. The due diligence process is crucial when making a significant financial decision like this—especially one that will likely replace your 9-5 income. Navigating the financial, legal, and operational aspects of a business can get confusing FAST. To help, we’ve put together a due diligence checklist on corppivot.com to guide you on what to look for. This advice has been invaluable for me as I navigate buying my first business, especially since I haven’t done this before. You don’t have to be an expert in everything—in fact, it’s better if you’re not. My motto is, there’s always someone out there who’s smarter, so why not lean on their expertise to get the right answer more efficiently?

💪 Challenge of the Week: This week’s challenge is to talk to the actual seller of the tree trimming business we’re looking to acquire. Understanding why the owner is selling and what their motivations are is crucial. We need to see how the business operates—whether it’s driven by the owner’s reputation or by the work being done. You don’t want to buy a business that relies heavily on the owner’s relationships because, when you step in later, those relationships will have to be built all over again.

📈 Success of the Week: Check out the Due Diligence Checklist on the Tools tab of corppivot.com! We’ve created a free tool to help you navigate the most critical steps before signing on the dotted line.

Tyler’s Perspective (Multiple Businesses Owned)

🚨 Tip of the Week: Following up on on our last update about our marketing strategy, we began working on creating our flyers, posters, and signs to distribute. One thing we didn’t realize would have as much success was business cards (when’s the last time you asked someone for a business card). We often have people asking about our services, and usually point them towards our website, phone number, or email address. We now have business cards so that when we have someone ask about our services, especially someone who may not be willing to explore our website, we have business cards to provide. It’s often the little (and obvious) things that work in a service based business. 

💰 Deals < $500k

Business Name: Auto Repair Business
Revenue: $1,400,000
Asking Price: $500,000
Profit: $294,000 (Profit Multiple = 1.7)
Location: St Joseph County, IN
Established: 1970

✅ Pros:

• Long-Standing Reputation: With over 50 years in operation, the business has established a strong brand and customer loyalty.

• Stable Client Base: The business services several major municipal fleet accounts, providing steady and reliable revenue.

⚠️ Cons:

• Aging Facilities: The business operates out of an older facility, which may require updates or renovations to maintain operational efficiency and appeal.

📈 Growth Opportunities:

• Expand Fleet Services: By expanding fleet services to additional municipalities or private companies, the business can increase revenue and market share.

• Modernization of Services: Upgrading equipment and service offerings could attract new clients and improve operational efficiency, boosting profitability.

💰💰 Deals $500k - $2m

Business Name: Healthy Home Air Purification & Cleaning Business
Revenue: $2,700,000
Asking Price: $1,900,000
Profit: $745,000 (Profit Multiple = 2.55)
Location: West Hartford, CT
Established: 2001

✅ Pros:

• Recurring Revenue: Over $200k in recurring revenue from subscription services provides a reliable income stream.

• Proven Business Model: With 32 years in the industry and multiple revenue streams, the business is well-established and resilient, even in challenging times.

⚠️ Cons:

• Lease Dependency: The business operates out of leased premises, which may limit flexibility or lead to increased costs if lease terms change.

📈 Growth Opportunities:

• Market Expansion: There is potential to expand into nearby territories like Torrington, Orange, and Waterbury, CT, where the current owner holds rights.

• Service Scalability: The recurring revenue service contracts offer significant scalability, especially in the fast-growing air purification sector.

💰💰💰 Deals $2m-$10m

Business Name: Semi-Absentee Owner Same Day Expedited Delivery Service
Revenue: $3,200,000
Asking Price: $6,500,000
Profit: $1,200,000 (Profit Multiple = 5.42)
Location: California
Established: 2013

✅ Pros:

• High Profit Margins: The business boasts an impressive profit margin of 37.5%, indicative of strong operational efficiency.

• Established Client Relationships: The company’s integration with a major courier has led to a multi-year contract and expansion into new territories, ensuring stable and growing revenue streams.

⚠️ Cons:

• High Owner Dependency: Although semi-absentee, the success of this business has been closely tied to the current founders' expertise in logistics and IT, which might present challenges during the transition period.

📈 Growth Opportunities:

• Geographical Expansion: With the recent acquisition of the Southern California territory, there are opportunities to expand into additional states and territories, leveraging existing contracts.

• Service Diversification: Expanding the range of services, particularly in high-demand sectors like medical courier and life sciences, could further boost revenue.

The Lean Startup: Ch 5 Part 1

Do you remember the first time you did something that you were scared of? When you decided to take that leap of faith! 

Today we are going to talk about our parent’s favorite social media company & strategy based assumptions. No, not FoxNews+... we are talking about Facebook. Their first summer they raised $500,000 in venture capital funding. Although they made very little revenue they had 150,000 users. Less than a year later, they raised an additional $12.7 million. Eric wants to focus on one thing, how was Facebook able to raise so much money when its actual usage was so small. There were two facts that impressed investors:

1. The raw amount of time Facebook’s active users spent on the site. 

2. The rate at which it had taken over its first few college campuses.

Over half of Facebook users in those early days came back every single day. Honestly now I can understand, figuring out what Disney Princess I am is really hard to ignore! Especially when I can be a new one every day. 

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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