Episode 46: How to Manage Growth Through Acquisitions w/ John Wilson
Jun 1, 2021
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John Wilson, owner of Wilson Plumbing and Heating and founder of The Wilson Companies, shares his journey of transforming a family business through strategic acquisitions. He reveals the keys to scaling, emphasizing the importance of effective marketing and optimizing team dynamics. John discusses the challenges of integrating new companies and the critical role of cultural fit in acquisitions. Tune in for a rapid-fire session on influential books and insights into balancing work, family, and personal aspirations.
John Wilson emphasizes the importance of adopting creative acquisition strategies to achieve significant business growth in a competitive market.
Navigating leadership transitions in family businesses requires open dialogue to align differing visions for growth versus lifestyle objectives.
Effective staffing and system development are crucial for scaling operations, necessitating a strategic approach to hiring and onboarding in expansion efforts.
Deep dives
Understanding the Journey into Trades
The origin story of venturing into the trades typically begins with family connections, as illustrated by the speaker's experience in a family-owned plumbing business. Initially resistant to taking on this path, the individual pursued graphic design and later accounting before returning to the family business. This transition highlights the common struggle between personal ambition and familial expectations. Ultimately, the realization of potential in the family trade spurred a more profound commitment, showing that journeys in the trades can involve non-linear paths to ownership.
Growth Through Strategic Acquisitions
The speaker emphasizes the importance of adopting creative acquisition strategies as a means of growth in a rapidly evolving industry. By leveraging unique approaches, the speaker's company has experienced significant growth, achieving an annual increase of 30% through strategic purchases. This involves acquiring smaller companies, or 'tuck-ins,' which enhance the overall market presence and service offerings. Thus, a focus on acquisitions not only propels financial performance but also enriches the company's operational capabilities.
Adapting to Cultural Dynamics in Family Businesses
The transition of leadership in a family business often presents unique challenges, particularly when differing visions collide. The speaker shares their experience of managing a relationship with a parent who held majority ownership, wanting a lifestyle business versus a rapid growth approach. Balancing the goals and expectations of both generations was crucial yet demanding, necessitating open dialogue and mutual understanding. The lessons learned from this dynamic highlight the complexity of navigating personal relationships alongside professional obligations.
The Importance of People and Systems
A key insight revealed is the critical role of staffing and effective systems in scaling a business successfully. As companies grow, the founding team may not possess the requisite skills or mindset to operate on a larger scale, necessitating the recruitment of new talent. Recognizing that past contributors may not be suited for future growth creates a learning opportunity about how to hire effectively. Developing robust onboarding and training practices becomes essential to ensure staff integration and retention during this expansion.
Market Adaptability and Forward Planning
Operating in a shrinking market necessitates adaptability and strategic foresight to sustain growth and market relevance. The speaker's experiences highlight the importance of exploring new areas and diversifying services in response to demographic shifts and changing customer needs. By acquiring companies in new territories and launching new service lines, stability against market fluctuations is pursued. A proactive approach to mergers and acquisitions can mitigate risks and capitalize on opportunities within an evolving landscape.
Some shops are happy trucking along as a lifestyle business.
And there is nothing wrong with that.
But if you want to grow aggressively, you need to learn about acquisitions.
That’s one of the secrets John Wilson, Owner at Wilson Plumbing and Heating, has learned rapidly growing the family business from its comparatively small roots into a sprawling operation.
What we talked about:
- The secrets to scaling
- How to approach marketing
- How to expand through acquisitions
Check out these resources we mentioned during the podcast:
