5 Millionen Umsatz mit Malerbetrieb, aber feststeckend

0:00Unternehmer/Gast What's up? Trent. Trent, you're up, dude. >> Hey, how's it going? >> Good, man. All right, so we got paint, we got 5 minutes, and let's rock and roll, man. So, you got What is it 5 million top line? What did I see here? You got uh Paint, paint, paint, paint, paint, paint. Okay, 5 million top line, 500,000 profit. >> Yes, sir. That's me. Yep, that's me. Yep. >> All right, rock and roll, man. Okay, so uh what is the Like, what do you want, and what's what's holding you back?

0:27>> Yeah, so uh I've been at this for 7 years now. I got 40 people on staff. >> Congrats. >> point. Um thank you. So, um my issue is I'm kind of at a at a at a fork in the road. I started off doing residential repaints. That was my bread and butter. I did that for years. And then I actually went to one of your conferences, and you guys talked about reoccurring revenue. You talked about LTV to CAC. >> Yeah. >> Once I saw that, I went there to learn Facebook ads with my agenda. You taught me that. Completely pivoted. I was like, "Holy cow, I should go after GCs." >> Yeah.

0:53>> That was almost a year and a half ago now. And so, now that I now that I doubled down on GCs, it's like every time I land one, it stacks. >> Okay. >> But the the the downside to it is is that uh the gross profit is less. But the the the advantage of it is that the LTV to CAC is insane. >> Through the roof. >> Yeah. So, it's So, it's like So, it's like, "What do I do?" Because my GP on repaints is 52, but I pay a salesman 7%, and it costs me another 5% marketing, and that's 12%. So, when you wash it, it's it's 40% GP to GP if you take away the the CAC. You see what I'm saying?

1:25So, I've I've been doubling down on it. But then here's the next thing is that So, since I did that, like, "Okay, I'm going to go full force." I hired I hired a a an a virtual assistant who uh who just does my takeoffs. >> Yeah. >> So, that way I can produce way more lead I can I can bid way more jobs way faster. This This whole This whole year, I I have three salesmen selling repaints. They've They sold about 2.8 million. I'm already at 2.6 million by myself with a takeoff guy assistant. And so, I'm already doubling down on it, but I just want I like Am I making the right decision here? Because they are way harder to produce. It's It's It's the hard thing. Like Like most people get their ass kicked in new construction.

2:01They go bankrupt. The AR is crazy. My average pay per time right now is 65 days, but it gets up to 90 120. So, it's very capital intensive and it's a way harder business model to to to run. Do you think I'm making the right decision? >> Well, thank you for the context. Um So, when you said you were getting 20 to 1, were you talking revenue or gross profit? >> Gross profit. Yeah. Yeah.

2:22>> still make way more on on the contract on the on the on the GPs. >> So, what do you mean by that? Will you explain to me what >> No, so you said you're going after these bigger deals because they're they're they're recurring, the GCs, the general contractors, right? >> Yes, sir. >> Yes. And the issue there is just that it's really just that the pay cycle is extended. So, it just costs more cash for Basically, you have to float cash for a period. That's the biggest problem. Okay. So, there's So, I'll give you like the the simple the simplest answer here and I'll tell you a story to illustrate this. So, there's a company that I was looking at investing in and it was a couple years back and they were at like 2 million bucks a year and they had 4 million dollars in debt and it was just a mess and I ended up not doing the deal. Um and one of the big issues was that they had they had bad terms for payment. It was a physical products business.

3:09And what they ended up doing is finding a manufacturer that gave them net 90 terms. So, they basically fronted them the inventory and then gave them 90 days to pay them back, which is amazing, right? It's the literally the opposite situation that you're in. And the result of that is that within 18 months it went to 5 million a month. >> Holy cow. >> Right. And so, my point here is that there's we could look at model, but I lean towards this this is this is far more likely to be a financing solution. Like we could do all sorts of crazy things, but like realistically, you probably just find a 90-day rotating credit line at a bank and just show them what your financials are and what percentage of deals you collect on and like basically, you just have to show them diligence that you when when you say, "Hey, I've got this this money coming in." It's just called AR financing. And so, by doing that, you can accelerate the cash flow cycle and basically eliminate that.

3:55As long as obviously you got to be responsible with it cuz you got to pay it back when you when you get it. But, that capital tends to be very cheap because it's it's basically, you know, it's somewhat secured. Technically, it's not secured, but it's secured by your AR. >> So, it's like a line of credit or revolving line of credit. >> Yes, exactly. And then that that solves the cash flow issues. >> Yeah, because that's that's by far the biggest issue. Like my AR routinely sits at $500, $600,000. It's crazy. >> Right. And so, if you could pull that down, you could just like, "Okay, great.

4:22I have this here." And then that way and usually usually those those are around a percent a month that they'll hold. And so, very easily like you can find a percent. You know what I mean? Just like you could raise the price by a percent and get it back. Um >> That's genius. That's genius. >> Yeah, that's I don't I don't want to mess with anything else. It sounds like the what you found when you came here worked. So, I'm happy about that. And now you have a 20:1 machine. Like when I see a 20:1 machine, I don't want to mess with anything about it, dude. And so, the only issue you have is the cash conversion cycle issue. And because you're in a space where financing exists for this problem, I'd just say like let's just go pursue that. That's the first thing I'd do.

4:58>> That is genius. Thank you so much. I'm telling you cuz like whenever I was there, I [laughter] had that epiphany. And like you guys you guys were passing around the mic and I was raising my hand. I was like I was like, "Please just tell me I don't know if this is right." And I and I didn't get to ask. I was like, "I'm just going for it." Excuse my language. >> No, you're good, man. Well, I appreciate you donating 800 bucks and, you know, honestly, thank you so much for me and from the entrepreneurs you donate books to. >> Happy birthday. Thank you so much. I really appreciate you. >> You bet. Thanks, Brett. All right, bye. If you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so, we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can just book a call with my team, and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas, and we'll do this in person live.