🔑 Sieva's 3 favorite tweets + 1 epic deal

July 20, 2022

Welcome to the 534 new readers of the Business Academy. The 🔑 key to success is information. In this newsletter, I’ll be distilling the most impactful information I picked up over the last week so you don’t have to. psssssssssssst….there’s a really cool deal at the bottom of this email, don’t miss it.

🔑 #1

Behind the scenes with Peter Levels (the guy who makes $2.7M/year, with 1 employee and 0 f*cks given)

1. He's hilarious
2. He makes ~$3M/yr with 90% profit
3. Owns almost nothing (1 bag)
4. Has 1 employee

Here's how he does it
— Shaan Puri (@ShaanVP) July 18, 2022

My favorite parts of this thread:

It took 10 years for Peter to achieve this success. No matter what your journey, plan to be on it for a long time before you’re “successful”
Peter makes it very hard to email or contact him (waste of his time)
He’s found a way to run his business with 4 people, so he’s making $750k in revenue per person (that’s really high; by comparison a plumbing company will make $250k per technician)

Question for my readers - Would you want to start an online business one day? Let me know if you do! Maybe we can work together one day.

🔑 #2

Behind the scenes with Peter Levels (the guy who makes $2.7M/year, with 1 employee and 0 f*cks given)

1. He's hilarious
2. He makes ~$3M/yr with 90% profit
3. Owns almost nothing (1 bag)
4. Has 1 employee

Here's how he does it
— Shaan Puri (@ShaanVP) July 18, 2022

✅ Agreed.

Often times I get asked the question by followers: “If the business owner could grow the business, why would they sell it to you? Why wouldn’t they grow it?”

By the time an owner wants to retire and sell the business, they are rarely in ‘growth mode’. Picture this. A business owner spent the first 10 years of their career working extremely hard. They worked weekends, missed their kids’ baseball games to grow their company. Now, 20 years later, they own a few properties, their kids are all grown up and they have enough money in their bank account to live a comfortable life.

Increasing their business size again would be a headache.

They would need to hire more employees, and potentially take on more risk than they want to.

But, if you ask them how to grow the business, they have a pretty good idea!

I’m going to publish the list of questions we ask owners during diligence soon and share it with you all. Reply “YES” if you want to receive it.

🔑#3

Have less than $25k and want to get on track to be wealthy?

There might be a better option than stocks, crypto, and real estate. Here’s what you can do:
— James Camp 🛠,🛠 (@JamesonCamp) April 18, 2022

First off, you should read one of my top 10 favorite books on investing, The Dhando Investor.

Here is the summary of the book:

Great returns in investing do not require high risk. You can make low risk bets, with extremely high returns. That is Dhando Investing.

In this tweet, James shares some guidance on how you can invest a little, roll up your sleeves to grow the business and sell it for a high return on your money (low risk, for a high reward).

🔑 Cool Business for Sale (off-market)

This week I spoke with the owner of a swimming pool lesson business. For confidentiality, let’s call him John.

I grew up a competitive swimmer, but I’ve never heard of a swim school. It’s pretty cool.

Industry details: The US Swim School Association has ~500 members, so I’d estimate there are 650-1000 swim schools in the US.

It seems like there are three types of school owners: own your own building/pool, lease someone’s pool/building, or rent space in a pool for a few hours a day.

John owns an indoor pool, 25x50 ft. His swim school has been around for 40 years (it’s based in a cute coastal north of Los Angeles).

He has a full-time manager who has worked for him for 10 years, which means John can be largely absentee and go on vacation for a month at a time (this is awesome).

They average 600 lessons a week, for people of all ages (3 months and up). The business makes $600,000+ of revenue per year, and John takes home $300,000. Saturday is their busiest day, and get this, they’re closed on Sundays.

How would you grow this? Open on Sundays! Get involved in the local community, and do a little bit of marketing.

Skills needed for an owner (according to John): Great with people, a good heart, good understanding of cash management, ability to manage people. John will teach you the rest.

This is a great business to own for someone looking for a nice lifestyle. Swim schools are a good stable long-term business.

How I would buy this if I were you: You should be able to pay around 3x yearly cash flow ($900k). I would put down 7% ($63k), ask the owner to put 5% on full standby and use SBA debt.

For $60-90k you should be able to ensure a nice life for yourself on the coast of California.

Want an intro to John? Reply to this email with: a description of your background, why you’re interested, and why you’re good for the role. Please also tell me if you have $60-90k or how you plan to pay for the business. I want to make sure we don’t waste John’s time.

Have a friend with a business that wants to sell? Reply to this email to let drop me a tip. Or reach-out to : contact@enduring.ventures

Reply to let me know if you liked Tweet 1, 2 or 3 most. Also let me know if you want to see more deals like this.

~ Sieva

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