Acquiring Minds The Model Works: Reflections of a Plumbing Business Buyer
6 snips
Feb 5, 2024 Doug Johns, a plumbing business buyer, reflects on his balance sheet, lifestyle, and new identity as a business owner. Topics include his wife's involvement, working 60 hours a week, ROBS structure and buyout, slowdown in home services industry, why he loves owning & operating, raising prices, small town living, integration of business into daily life, fierce competition, and benefits of franchises and in-network peer groups.
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Raise Prices In Inflation
- Raise prices promptly when input costs rise to maintain gross margin percentage. - Customers generally accept price increases during inflationary periods.
Balance Cash and Loan Repayment
- Take profit out prudently, balancing cash reserves and loan obligations. - Evaluate financial times to decide when to pay down loans versus hold cash for security.
Buy Largest Responsible Business
- Buying the largest business you can responsibly operate is the safest approach to business acquisition. - Life stage and personal capacity greatly affects readiness to run larger organizations.