Acquiring Minds Bought Tiny, Grew to $4m
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Mar 7, 2024 SBA lender Chad Fondriest shares his journey of acquiring a small hobby business and growing it to $4 million in revenue in just 2 years. Topics include quadrupling revenue, selling on Wayfair, managing inventory, forecasting trends, and the challenges of competing in ecommerce.
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From Garage Hobby To Acquisition
- Chad bought Darby Creek Trading, a $150k hobby e-commerce wreath business, while keeping his SBA lending job.
- The founders were a retired couple who ran it from their garage and moved to a small warehouse as demand grew.
Always Verify Inventory Counts
- Count inventory yourself or hire someone to verify it before closing an acquisition.
- Chad bought unsellable stock because he trusted the seller's word and had to liquidate or donate much of it.
Vendor Relationships Are Hidden Value
- Buying an existing business preserves vendor relationships and payment terms you couldn't get as a new buyer.
- Those relationships can give better pricing and net terms that materially lower upfront costs.