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- 🆕 Turf Business Made ~$3M... Without a Website?
🆕 Turf Business Made ~$3M... Without a Website?
The Corporate Pivot
July 04, 2024
Another day, another business to buy!
Welcome back to another installment of The Corporate Pivot. If the highlight of your workday is a perfectly timed coffee break, it might be time to brew up something bigger. Own your mornings, and your business, too!
Here’s what we have for you today:
Pivot Perspectives: The website is up & Tyler optimizes and scales his pool route business.
Acquisition Alerts:
💰 Gutter Installation & Cleaning
💰💰 Profitable Painting Company
💰💰💰 Profitable North Texas Artificial Turf Company
Mindset Matters: Vinny is back at it again with Chapter 1, check it out below!
Sam’s Perspective (1st Time Buyer)
🆕 Status Update: More NDAs signed and more deals analyzed. I even had some meetings with franchise owners! The website (corppivot.com) is up and running where we will be posting some tools and videos that will help out all of you.
💪 Challenge of the week: The broker process is a bit tedious. Going through and submitting NDAs just to get back that it’s already sold. We are working on getting off market leads for the corporate pivot people so that we can make this process frictionless.
📈 Success of the week: The website is up as you can tell, because I cant stop talking about it. Go check it out and give some feedback!
📚 Lessons Learned: There are a lot of deals that look good at first glance. It’s way easier to plug the deal into the calculator we made (found on the corppivot.com) to quickly tell if you can be approved for an SBA 7(a) loan. A business valuation tool is in the works that will compile different sources on the internet and sold listings to give a valuation score. Stay tuned!
Tyler’s Perspective (Multiple Businesses Owned)
🚨 Tip of the week: Recently, the focus for my pool business has been “tightening” our route dispersion in order to allow for more routes to be completed in a day (and inherently leading to more growth). It’s been a slow road to get to this point, but it was intentional. My thought was to start small, take the time necessary to understand the business (and to weather a few hiccups), and then expand. It is certainly possible to grow too quickly (and often times the problem for small business owners), especially in a route-based service business with turnover. If you are looking to buy your first business, especially a route-based service business, consider a smaller amount of routes to mitigate some of the pitfalls that every new owner faces.
💰 Deals < $500k
Business Name: Gutter Installation & Cleaning
Revenue: $638,626
Asking Price: $500,000
Profit: $216,024 (Profit Multiple = 2.31)
Location: Lehigh County, Pennsylvania
Established: 2019
✅ Pros
Strong SEO: Built up over past few years, enhancing online visibility and customer acquisition.
Experienced Employees: A team of 6 experienced employees to support business operations.
⚠️ Cons
Leased Real Estate: The business operates from a leased property, which may limit long-term stability.
📈 Growth Opportunities
Expand Services: Introducing additional services such as window cleaning or power washing to the existing customer base.
Geographic Expansion: Extend services to surrounding areas beyond the Lehigh Valley to increase market reach.
💰💰 Deals $500k - $2m
Business Name: Profitable Painting Company
Revenue: $3,453,646
Asking Price: $1,100,000
Profit: $737,759 (Profit Multiple = 1.49)
Location: Tucson, Arizona
Established: 1977
✅ Pros
Established Clientele: Great reputation built over 47 years with a strong customer base.
High Volume: Handles large subdivisions, commercial buildings, and custom homes with 33 full-time employees.
⚠️ Cons
Leased Real Estate: The business operates from a leased property, which may limit long-term stability.
📈 Growth Opportunities
Advertising: Implementing an advertising strategy to attract more clients and increase revenue.
Expand Workforce: Hiring more employees to take on additional projects and expand service capacity.
💰💰💰Deals $2m-$10m
Business Name: Profitable North Texas Artificial Turf Company
Revenue: $4,875,812
Asking Price: $8,500,000
Profit: $2,882,393 (Profit Multiple = 2.95)
Location: Dallas, Texas
Established: 2017
✅ Pros
High Profitability: Strong cash flow with a significant profit margin.
Growth Potential: No company website and minimal advertising, offering untapped marketing opportunities.
⚠️ Cons
Relocatable: No permanent facility, which may require relocation based on the buyer’s preference.
📈 Growth Opportunities
Online Presence: Establishing a company website and enhancing online marketing efforts to attract more clients.
Service Expansion: Diversifying services to include more types of synthetic turf installations and maintenance contracts.
The Lean Startup By Eric Ries
…Well, Eric believes that entrepreneurship requires managerial discipline. If you are subscribed to the Corporate Pivot you have some entrepreneurial leanings. Look at us, we have a lot in common (we agree reading is hard, that we want to learn, & we want to be successful entrepreneurs).
We are living through an entrepreneurial renaissance!…
Read more on our website 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!
