How did this 23-year old buy a $250k revenue biz for just $1,000?

Here's the story of the "Squeegee God", @SqueegeeGod
In 2017, Johnny Robinson started a window cleaning business with his buddy as a side hustle

They spend $150 on start-up materials

Here's how the first 4 years went: Image
In 2021, Johnny will do close to three-quarters of a million in revenue

AND $175k ish in profit.

His operation is a well-oiled machine with 10 W2 employees

But wait until you hear about the acquisition he did to really get his business to the next level
Earlier this year, Johnny got a call from an insurance agent with a deal for him.

You might be wondering: How does a 23-year old have an insurance agent in his corner?

Because he networks.

Johnny belongs to a BNI-style group with only 1 member of any given profession.
The insurance agent told Johnny he had a Medicare client who was looking to sell his window cleaning business. The seller was a 60-year old man eager to hang up his hat due to health reasons.

Johnny worried about being able to do a buyout but got curious.
He arranged a meeting and found the seller’s business had been consistently generating $200k+ in revenue over the last 3 years.

But there was a problem.

Johnny’s seller was out of touch with the market. For one thing, he was charging his clients way below the market price.
If Johnny was to buy those accounts and raise prices right off the bat, he would most likely lose much of that business.

He also couldn’t afford to raise his prices slowly.

So, Johnny made an unconventional proposition: Image
He suggested that for every client of the seller that converted into Johnny’s, he would pay 15% of that account in their first year.

Then, 10% in their second and finally, 5% in their third.

Needless to say, tempers flared. Image
Negotiations stretched on for three months.

But with a little patience and a whole lot of educating, Johnny was able to close the deal.

It has worked out for both parties: Image
So besides this win-win acquisition structure, how else did Johnny scale from $200k to over $700k?

Well, he employed tech to do his work for him.

Rather than using word-of-mouth to ask his clients for reviews, Johnny set up a drip campaign.
By integrating NiceJob with his CRM, his customers got an automated SMS text immediately after their job was finished, leading them to Facebook/GMB to leave a review

If that went unanswered, the SMS text was followed by two well-timed follow-up emails, each asking for a review
Showing up in the top 3 of Google My Business = More Organic Leads = Free money.

By leveraging tech tools in a space that’s otherwise antiquated, Johnny was able to exponentially increase his profits.
The next bottleneck was capacity.

With dozens of leads in their pipeline, Johnny was booked as far as 6 weeks out. Which is longer than anyone would wait for their windows to be cleaned.
Day in and day out, Johnny, his co-founder, and their five in-house employees, were out on the field working as efficiently as they could.

But even that wasn’t enough to keep up with the demand.
The duo considered hiring more W2 employees. But it would have cost too much time and money to train new hires

So they switched to the next best thing. Subcontractors

By outsourcing their workload to smaller window cleaning companies, Johnny’s entire operation took an uptick
It goes to show that you can make a killing in almost any business, even one that's been around forever.

I think Johnny's success can be replicated in almost any industry and location.

You tell me: What other industries could this be done in?

Tech + Talent + Proven Profits
Want more detail's on Johnny's success?

Check out my newsletter piece about how he killed it in the window cleaning business: contrarianthinking.co/this-23-year-o…

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More from @Codie_Sanchez

23 Dec
So you want to buy a laundromat?

Here's a real deal, replacing all the machines in the deal terms, and w/ a quote on it.

The Big Q in deals: How do you know what's worth what?
First compare? Google is almost always the answer.

A quick google of the model numbers of the bill changer and bill dispenser shows prices around $2k and $1k less than quote.

You don't need to be a genius, Google is.
Never just take one vendor quote.

I use Dexter. Their 40-pound washer is $7,350, while your 40 pounder is $10,314.
Read 7 tweets
23 Dec
Building wealth doesn’t have to all be giant moves.

How you do the small things matters, here's a short list of tech tools that help me grow wealth step by step…
One of the fastest ways to kill startups is reoccurring costs, Same with wealth.

I use @truebill to delete all my subscriptions
What gets measured gets managed.

Although it’s far from perfect I use @mint and a good ole excel spreadsheet to teach my wealth weekly and monthly
Read 7 tweets
9 Dec
How MrBeast made $10M & grew 12.5M followers in a week?

2 weeks ago he recreated Squid Games for his YouTube…

157 million views later (the show itself had 145M) and it's a masterclass in content, virality and ... cashflow

Oh and he spent $0 to do it: A 🧵
Let's look at costs of the video:

Grand prize= $456k
2nd place prizes =$10k + $2K for 454 (some got $4K)
Set build + production cost = $2M

Total cost = ~$3.5M!!

The best part?

His sponsor @BrawlStars (mobile game developed by @supercell) covered the costs
A look at the numbers:
@MrBeast_Stats is a fan page dedicated to sharing his numbers

Here's the breakdown of his following across all platforms when the video was released:

Read 9 tweets
7 Dec
I just closed on a 60 acre plot of land & RV park:

= $475k, 10% down, 30 year loan
= $100k a year profit
= Adding 2 things that will take it to $300k yr profit.

What's the best place to invest in land deals right now?
Location: Oklahoma.
Why price: retiring owner, remote area, needed manager.

No one to manage means less buyers… solve for this, and add a fast close.

You’ll be amazed what happens.
Adding:

Agriculture aka leased cows and tree farm land.

Hunting allotments, events and range.

Let’s see if I’m right in 6 months on my models. 😉
Read 5 tweets
3 Dec
I love watching porn....

Not that kind of porn... creeps.

I'm talking about r/PowerWashingPorn

Let's dive into a dirty business that makes $3k to $5k a month with just around $500 in startup costs: Power Washing ImageImage
What I love about pressure washing is there is demand and opportunity in both commercial and residential spaces.

So let’s look at 3 macro trends going on in the U.S. that bode well for this side hustle:
1. Homeownership is on the rise.

2. Residential construction is booming, which means homeownership will likely continue to boom along with it.

3. Workers are starting to head back to the office.
Read 15 tweets
28 Nov
I’ve invested 100’s of millions of dollars, and lost my fair share of deals…

Here’s 19 contrarian lessons about investing & making money:
Learning is the cheapest form of investing

Hard to get a negative ROI, and can pay dividends for years.

When I was young and dumb I was young and dumb.

Which usually means too loose and inexperienced.
Investing has an insider language.

Learn the language and you can enter the club.

I carried a book around in ibanking filled w/ unknown terms:
ROI, IRR, waterfall, ratchet…
Read 21 tweets

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