Acquiring Minds

1 Year Later as Buyer of a $1m EBITDA Business

8 snips
Jan 12, 2023
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INSIGHT

Rapid Growth Can Compress Margins

  • Revenue rose ~45% from $2.5M to $3.6–3.7M but EBITDA did not keep pace due to added management and payroll costs.
  • Chris highlights that accelerating growth often reduces margins until organizational leverage improves.
ADVICE

Promote Internally To Build Management Layers

  • Promote from within to create management roles before hiring external managers.
  • Coach incumbents to reallocate time into people and ops roles while training replacements for delivery duties.
ADVICE

Solve Hiring By Sourcing Or Training

  • Improve candidate quality by expanding top-of-funnel sourcing or hire less-experienced people and invest in training.
  • Accept that bookkeeping growth is limited by your ability to recruit and retain high-quality staff.
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