Welcome to the JackQuisitions newsletter, |
On the surface, many home service businesses look almost identical. |
The same trucks. The same equipment. Similar margins. |
But once you understand how the revenue is generated, you realize they're entirely different businesses. That's the lesson from today's newsletter (and recent pod episode). |
Watch: Septic vs. Grease Trap: They Look the Same. They’re Not. |
 |
Septic vs Grease Trap: They Look the Same. They're Not. |
|
|
|
|
Ready For Your Next Acquisition? |
Check out these acquisition opportunities that caught my eye this week: |
|
|
|
|
Your Next Growth Stage is Within Reach |
If you're serious about breaking through $5 million in revenue, join John Wilson and me this September at our Breaking $5M Workshop in Akron, Ohio. |
This isn't a conference full of theory. It's two days inside a real business, sharing the systems, decisions, and playbooks that helped us scale. Every workshop we've hosted has sold out, and attendees leave with ideas they can implement immediately. |
You'll get: |
The proven $5M Flywheel A live sales huddle and shop tour Sessions on pricing, recruiting, marketing, and organizational structure Networking with other HVAC, plumbing, and electrical owners
|
Our goal is to help you make progress like this… |
|
|
Your ticket includes meals and most transportation. If you're ready for the next stage of growth, I'd love to see you there. |
|
|
|
|
The Business Model is the Asset |
When people evaluate a business, they usually start with revenue, EBITDA, and equipment. |
Watch: We Hit $1M Profit — Here’s Exactly How We Did It |
Those numbers matter, but they only tell part of the story. |
Two companies can generate the same revenue, operate the same trucks, and produce similar margins while having very different economics. The business model is often what separates them. |
Take grease trap pumping and residential septic service. |
On the surface, they're almost identical. A vacuum truck arrives, pumps out a tank, and moves on to the next job. Once you look past the equipment, the economics begin to change. |
Grease trap businesses are built around recurring commercial contracts. Restaurants, hotels, schools, and commercial kitchens require regular service, creating predictable routes, recurring revenue, and greater visibility into future demand. |
Residential septic businesses are driven primarily by homeowner demand. Customers call when something breaks, they're selling a home, or they're overdue for maintenance. That creates urgency, opportunities for larger repair work, and a less predictable schedule. |
Those differences influence almost every aspect of the business: |
|
|
Each model has its own advantages. |
Recurring commercial routes provide stable scheduling, dense operations, and consistent cash flow. Residential service often creates additional repair opportunities that increase average revenue per customer. |
When you're evaluating an acquisition, the financial statements are only the starting point. The more valuable questions focus on how the revenue is produced. |
Ask questions like: |
How much revenue comes from recurring contracts? How often does the average customer buy? What percentage of work is scheduled versus reactive? How dense are the service routes? How much of next month's revenue is already on the calendar?
|
Those answers reveal how the business operates and how predictable future performance will be. |
Revenue tells you where the business has been, but the operating model tells you how the business will perform going forward. |
|
|
Tell Me What You’re Thinking |
Understanding how a business generates revenue is just as important as knowing how much revenue it generates. |
Happy hunting, |
Jack |
How do you feel about today's JackQuisitions newsletter? |
|
|
Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own. |
|
|
📺️ Watch JackQuisitions episodes on YouTube |
🎧 Listen to JackQuisitions episodes on Apple and Spotify |
📰 Subscribe to the Owned and Operated newsletter here |
📰 Subscribe to the Entry & Exit newsletter here |
📧 Share the JackQuisitions newsletter with a friend |
No comments:
Post a Comment
Keep a civil tongue.