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Feb 23 • 3 tweets • 2 min read
I've learned that daycares really need to be charging $350 / wk or more AND have 175+ kids to make good money.

Pay the real estate rent at a 10% unlevered yield on cost, pay employees $18+ an hour + benefits, compensate a good management team.

In Athens GA area the market rate… twitter.com/i/web/status/1…
I'm almost positive it would work -

Building a very nice property for $5 million with very good management and the highest paid employees in town WOULD allow you to fill 175 spots at $350 a week.

And the biz would do about $750k EBITDA per year AND pay the real estate holdco… twitter.com/i/web/status/1…
This is a screenshot from Primrose franchise filings.

10% of rev lost to corporate - which is absurd.

And this "EBITDAR" means cashflow BEFORE RENT ON A $3-5 million facility.

If you factor $3-500k in annual rent, p&c insurance, property taxes etc you're running these things… twitter.com/i/web/status/1…

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More from @sweatystartup

Nick Huber Profile picture
Feb 22
A few things the self-help books won't teach you about success.

A thread:
If you're good at your job you can earn great money.

If you can make other people good at their jobs you can earn unlimited money.
Perfectionists are at a huge disadvantage in this world.

Time is our most valuable resource.

Efficiency and speed is way more important than perfect.
Read 61 tweets
Nick Huber Profile picture
Feb 19
Business idea:

Raise $25,000,000 to build 5 premium 15,000 SF daycares. 3 acre lots.

3 businesses:

1 is the real estate holding company that owns the properties. $500k annual rent each NNN. Portfolio worth $35 million + a few months after you open them.

2nd is the development… twitter.com/i/web/status/1…
Bonus points:

Require 4 months childcare fees as a deposit to get in - raise enough money to cover the franchise fees / launch costs.

Build a small sports field-house attached with batting cage, basketball hoop and golf simulator. Run lessons out of there.

Price accurately.… twitter.com/i/web/status/1…
To do big things like this all you need is money and a group of people.

Twitter has both of those things.
Read 4 tweets
Nick Huber Profile picture
Feb 17
My company will weather this economic recession for one main reason:

50% of our employees are located in the Philippines and earn $10,000 a year on average ($5 / hr).

No employment taxes, no workers compensation, no healthcare.

Also loyal, hardworking, kind team members.
We have 20 employees overseas.

Total annual cost: $200,000

Cost of 20 American employees: $50k avg + $15k tax, et each.

Total cost: $1,300,000

Same amount of productivity, 15% the overhead.
I sourced and hired the folks in the Philippines using supportshepherd.com.

They build the job description, vet the candidates and walk you through the entire hiring process.
Read 10 tweets
Nick Huber Profile picture
Feb 15
Anxiety is such a hindrance to success because decision making is a skill that improves with practice.

Anxious people hate decisions (because they fear the consequences) with every part of their being so they avoid them, never getting practice and never improving.
Instead of making the decisions they focus on things that give them a false sense of productivity - like reading, analyzing, studying, researching and getting advice from others.

The decisions sit unmade while the anxious person pats themselves on the back.
Stress is simply an unmade decision - so naturally it snowballs and the stress makes the person more anxious.

All while decisions pile up and the skill of making them never develops.
Read 10 tweets
Nick Huber Profile picture
Feb 12
Why don’t small biz buyers raise money similar to Mezz debt / preferred equity…

The first 15% of cashflow goes directly to the equity and the sponsor gets everything over that?

Turn it off and on as needed. It gets returned and is clear, out of the deal.
Example:

I buy a pest control company for $5m and we raise $5m from investors.

All cash deal, no bank.

Money folks get first 15%.

I get anything over that.

I can buy them out and return the capital at any time.

Hard money lending for biz.
Proof of work / security would be an operating partner with 6 pest control branches and a proven track record of operating these businesses really well.

And a clear path to grow the company.
Read 8 tweets
Nick Huber Profile picture
Feb 11
I'm looking to hire a person with P&C insurance experience - ideally an account manager (not producer).

We are launching a new commercial real estate insurance agency.

Remote opportunity.

Send me a DM!
Basically a client relationship manager for P&C insurance.

Bind policies, service accounts, etc. no need to drum up new business but will take initial calls with interested customers.

Compensation $50-70k. Fully remote.
I’m partnering with an existing firm with the best contracts / carrier access around and I’m building a badass team to service.
Read 5 tweets

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