Acquiring Minds Taking a Blue Collar Biz from $900k to $2.4m in Earnings
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Feb 12, 2024 Adam Borcz, experienced entrepreneur, discusses his success in growing a blue collar business and doubling its earnings in 4 years. Topics include: working for a fundless sponsor, pros and cons of having the federal government as a customer, doubling the workforce in a tough labor market, and tying profit sharing to gross profit.
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Workforce Growth Drives Profit
- Doubling the workforce unlocked latent revenue opportunity by enabling more projects.
- Overhead didn't scale with labor, so profitability doubled faster than revenue.
Focus on Profit-Driving Changes
- CEOs should focus on changes affecting gross profit or EBITDA margin.
- Avoid involvement in tasks that don't impact profitability directly to maintain focus.
Reactivating Dormant Customer Relationships
- Adam's first growth strategy was simply letting key customers know Delta was ready to work.
- This re-engagement alone brought in $2 million revenue from a large furniture dealership after decades of no business.