Helping a $5M Plumber Double His Service Revenue

0:00Unternehmer/Gast Uh, hey, my name's Kevin. I sell plumbing services to commercial >> [cough] >> residential customers. >> Sorry, plumbing services to who? >> Uh, to residential and commercial people. >> Okay. >> Uh, we do about 5 million in revenue. Half of that's construction, half of it's service work. >> Okay. >> I would like to do about $10 million in service revenue. And with stopping this really the construction side's a huge focus and a drain. So, I'm just kind of wondering if I should kill that side or refocus it and so I can pay more attention to the service side.

0:29Alex >> What do you think I'll say? >> What do I think you'll say? >> Yeah. I mean, there's a not as a slide, I just I mean it genuinely. >> I I don't know, that's why I was asking. >> Okay. Yeah, yeah. >> [laughter] >> Okay, no, that's fair. Um, I is I mean, fundamentally, is the construction thing just like a separate business? >> Yeah, they're they're essentially ran two separate ways. Yeah, it's just under one income statement. I bought the business a year and a half ago and it

0:56>> the construction business? >> I I bought both together a year and a half ago. >> Interesting. >> Yeah. >> From an entrepreneur who was retiring? >> Yes. >> Got it. Okay. What's the EBITDA contribution of each? >> It's about 50/50, but the the pay like the accounts receivable collection on the construction and the capital or in capital requirements is much longer and much >> sucks. >> Right, exactly. >> Yeah. Um, is there one of those two businesses that you like better?

1:24Alex >> Yes, service. >> Yeah. I would be willing to let it go. It's sunk cost. It's like it's already in your hand. Even if you Even if you bought [clears throat] it and paid for it, it's it's that decision's done. And the only decision you have now is like, well, if I were to start this today, would I do it this way? Probably not. And so, if you're looking at Also, from an acquisition perspective, like if you want to get acquired in the future, which is I'm guessing cuz you bought it in here, um, it's cleaner. Yeah. It's like, what's the cuz they're going to probably want to carve out cuz they're like, well, we only want this piece and this is different than that. And especially if it's splitting your attention, um, you'll be amazed at how much faster the other one will grow by getting rid of the headache. It's just really painful in the short term because you have all these like I made this mistake, I should have and then I will refer back to the nine failed businesses I have and losing all of my money twice. And so like I think the game's long and it's I think your gut was right. I think you kind of know. Okay. If you are a business owner and you are not growing as fast as you 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.

2:36And so we broke it in 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.