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Welcome to the JackQuisitions newsletter, |
The ice cream shop that makes money when it's cold |
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28 Wishes sells ice cream in Los Angeles. Below 70°F, sales fall about 20%. The weather is out of their hands. Rent isn't. |
So the owners started putting about $20 a day into Kalshi weather markets, taking the cold side. The days that keep customers away now pay something back. |
This is hedging. Big companies have done it for decades, buying protection against bad weather, fuel spikes and rising rates. It used to take a broker, a trading desk, and an order size no corner shop could meet. |
Kalshi opens it up. Contracts on weather, fuel prices, inflation, tariffs and regulation, starting at a few dollars. Take a position on the outcome that would hurt you. If it hits, the payout softens it. If it doesn't, the contract expires and the good month was the point. |
See how other owners are doing it at Kalshi.com/hedging |
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Now, let’s get into the newsletter… |
A welding business might be one of the more overlooked opportunities in industrial services. |
You can start a mobile operation for around $50,000, generate revenue from four different services, and potentially scale to $5M–$10M. |
In the most recent JackQuisitions podcast episode, I'm breaking down how welding companies make money, what it takes to scale, the biggest risks, and why I'd rather buy than start one. |
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How I'd Build a $10M Welding Business From Scratch |
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Ready For Your Next Acquisition? |
Check out these acquisition opportunities that caught my eye this week: |
A luxury outdoor design-build contractor in Collier County, FL, is listed for $4.75M with $7M in annual revenue, $1.27M EBITDA, and 20 years in business. An established plumbing repair company in the Greater Houston, TX, area is listed for $875K with $585K in annual revenue, $279K adjusted EBITDA, and a loyal customer base. An appliance repair company in Sunnyvale, CA, is listed for $118K with $280K in annual revenue, $96.7K cash flow, and an established customer base across 20+ cities.
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3 CSRs. Fewer Missed Calls. Less Owner Stress. |
SwiftFlow Plumbing was losing potential revenue to missed calls while its owner juggled customer inquiries, scheduling, and daily operations. |
The solution? Three experienced CSRs from Quick Staffers. |
With dedicated support, SwiftFlow improved call coverage, customer service, and day-to-day operations while taking pressure off the owner. |
Quick Staffers helps home service businesses hire skilled remote CSRs, dispatchers, and administrative staff starting at just $550 per week. |
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The Welding Business: Four Ways to Make Money |
Welding is one of those businesses that looks simple from the outside. Buy some equipment, hire a few welders, and start taking jobs. |
But there are several ways to make money, and each has very different economics. |
Here are the four revenue streams I'd focus on: |
Mobile repair: Fixing trailers, dumpsters, and industrial equipment. Jobs might run $500–$1,500, with attractive margins because labor makes up most of the bill. Fabrication: Building handrails, stairs, platforms, and equipment guards in a shop. Field installation: Fabricating products in-house and sending crews to install them, capturing revenue from both sides of the project. Labor rental: Supplying certified welders to contractors and industrial facilities. You might pay a welder $40 per hour and bill the customer $60–$70.
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Of these four, I particularly like emergency mobile repair and labor rental. |
When a piece of equipment breaks and production stops, customers care about getting it fixed quickly. That urgency creates pricing power. |
The Numbers That Matter |
You could start a respectable mobile welding operation for around $50,000. Personally, I'd want $100,000–$150,000 available to cover equipment, materials, and working capital. |
But once you're operating, the number I'd watch most closely is labor utilization. |
If you have 20 welders and 18 are billing customers, you're in good shape. If only six are working, you're carrying 14 people on payroll without corresponding revenue. |
That's how these businesses get into trouble. |
The same goes for estimating. Bid a fabrication project at 300 labor hours, and it ends up taking 500? You can wipe out your profit quickly. |
Add rising steel prices and customers taking 30–90 days to pay, and suddenly a company doing $5 million in revenue can have serious cash flow problems. |
What I'd Look for in an Acquisition |
If I were buying a welding company, I'd prioritize three things: |
Customer diversity: I'd rather have 50 recurring commercial accounts than depend on three major customers. Multiple revenue streams: A mix of fabrication, mobile repair, installation, and labor rental helps keep crews busy. Leadership beyond the owner: Someone else needs to handle estimating, manage crews, and solve technical problems.
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That last point becomes especially important as you grow from $1 million to $5 million and eventually $10 million. |
At that size, you're running an industrial services company, and you need managers who can operate without you. |
Would I Buy One? |
Absolutely. And I'd rather buy than start from scratch. |
Finding ten skilled welders and building relationships with 20 recurring commercial customers could take years. Acquiring an established operation gives you a head start. |
I'd build the business around keeping skilled welders busy and solving expensive problems. |
The opportunity is in how effectively you monetize that labor. |
Get the customer mix, utilization, and leadership right, and I think welding could be a very interesting business to own. |
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My Final Thoughts |
The Bottom Line |
I'd buy a welding company for its skilled workforce, established customer relationships, and ability to solve expensive problems. Keep your welders busy, focus on high-margin work, and you've got the foundation for a business that can scale. |
Happy hunting, |
Jack |
How do you feel about today's JackQuisitions newsletter? |
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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. |
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