Fred McGill, owner of Bray Electrical Services, shares his journey from real estate entrepreneur to acquiring a $3.2 million electrical business. He discusses the growth potential in the electrical sector, predicting a 25% revenue increase in the first year. Fred emphasizes the importance of digital marketing, effective hiring practices, and reassuring employees during ownership transitions. He contrasts the financial commitments of small businesses with real estate investments and offers insights into navigating SBA loans and licensing challenges in the trades.
Fred McGill transitioned from real estate to acquiring an electrical business, leveraging his entrepreneurial skills and industry insights for growth.
Key challenges included securing licensing and hiring skilled electricians, which McGill navigated through strategic planning and operational understanding.
Revamping digital marketing and focusing on customer reviews significantly boosted lead generation and revenue, showcasing the importance of modernized business strategies.
Deep dives
Fred McGill's Entrepreneurial Journey
Fred McGill transitioned from building an online real estate brokerage to acquiring an electrical services business, leveraging his extensive background in entrepreneurship. He co-founded Simple Showing, which grew from scratch into a profitable tech-oriented real estate company operating in multiple states. His experience in real estate allowed him to connect with various tradespeople, sparking his interest in the electrical services sector. McGill identified an opportunity in this often-overlooked industry, focusing on its significant upside potential and the integration of technology and marketing.
Challenges in Buying a Trades Business
Two significant challenges facing potential buyers in the trades sector include licensing and hiring, which McGill navigated successfully in his acquisition process. He approached these issues by securing the required electrical license from the previous owner, who retains a minority stake in the business for 18 months to facilitate a smooth transition. Concurrently, McGill faced difficulties in hiring skilled electricians and learned the importance of identifying experienced candidates who could contribute immediately without extensive oversight. This reflective hiring strategy ultimately shaped his approach to building a competent workforce.
Digital Marketing as a Growth Driver
McGill's first major move after acquiring the electrical business was to revamp its digital marketing strategy, which proved to be pivotal for growth. He modernized the company's branding, improving everything from the logo to van wraps, which enhanced its visibility and appeal in a competitive market. By implementing targeted digital marketing campaigns focusing on niche keywords, he effectively increased lead generation, particularly for specialized services like EV installations. This approach reflected a careful consideration for specific long-tail keywords rather than broad terms, optimizing advertising costs and conversions.
Revenue Growth Through Customer Acquisition
Following the marketing overhaul, the company experienced remarkable revenue growth, projected to reach $4 million in its first year under McGill's ownership. This growth resulted from a combination of effective digital strategies and an emphasis on increasing customer reviews, which built trust and credibility in the market. McGill noted a significant spike in the company's Google reviews, which plays a crucial role in attracting new customers and improving local SEO. By balancing digital marketing efforts with operational improvements, he successfully made the phone ring and increased the service business's viability.
Operational Learnings and Strategic Goals
McGill recognized the need to refine his understanding of operational aspects, particularly in hiring better-skilled tradespeople. His experience highlighted the necessity of adequately assessing candidates' expertise, leading to the implementation of practical skill testing during the hiring process. He aims to reduce the company’s reliance on entry-level workers by focusing on experienced electricians who can perform high-quality work with less oversight. Moving forward, his goal is to improve operational efficiency and profitability, while ultimately transitioning to a more passive management role.
Future Aspirations and Advisory Initiatives
While McGill is currently focused on optimizing his electrical services business, he remains open to the possibility of acquiring additional trades companies in the Atlanta area. He highlighted the attractive financing options available for acquiring businesses within the same NAICS code once he reaches a certain revenue cap. In parallel, McGill launched Blue Collar Advisory, a consulting service aimed at assisting aspiring buyers in the trades sector by offering guidance on the acquisition process. This initiative illustrates his commitment to sharing knowledge and supporting others in navigating the challenges of entrepreneurship through acquisition.
