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What we learned from our first full quarter at Brandt Point.
In our continued quest of radical transparency, follow along as we are openly sharing information to build trust and keep all stakeholders updated through a monthly newsletter. Thanks for joining us on this journey!
TLDR
Keep the pipeline full! Constantly fill the funnel.
We have built an efficient and evolving search machine.
Come to decisions quickly. If it isn't a double "Hell Yes!" it's a "Hell No"
Josh's path to entrepreneurship
Shoutouts
Amelia Black at Peach Legal for helping us to officially create our operating agreement and form our LLC.
Chandler Reed and Sam Rosati at SMBootcamp for answering our questions about the program and for hosting the incredibly valuable webinars for the Search Community.
Scott Wexler at inven for opening us to a new opportunity for proprietary search and industry research.
Steve Mariani at Diamond Financial for helping the team navigate SBA rules and regulations and for providing critical analysis on potential deal structures.
Special thanks to the industry experts and fellow searchers who have played a vital role in our early success, guiding us through the challenging yet enlightening immersive learning experience.
Wins & Losses
Win: Keeping deals in the pipeline at all times → We've learned the hard way that the deal pipeline can dry up quickly and momentum stops when you drop everything to focus on the shiny new deal in front of you. This month we emphasized deal flow every week and maintain our efforts to fill the top of the funnel.
Win: Building relationships with local brokers → Early outreach has proved successful, and we have brokers sending the team new and upcoming listings directly instead of only through their normal newsletters. Building and maintaining these relationships is critical for our immediate and long-term success.
Loss: Spending too much time without fully analyzing deal structure → We passed on a company after realizing the deal structure wouldn't work, despite our initial enthusiasm for the business and especially the owner. We've adjusted our process to avoid similar issues in the future.
Activity by the Numbers: March
55 = Broker introduction calls
45 = Conversations with ETA mentors, bankers, attorneys, and investors
40% = Open rate for our first monthly newsletter!
20 = Deals evaluated
7 = Deals passed
Subject Deep Dive: Q1 in Review
As we close the quarter, we're using this section to reflect on our Q1 goal: Transform our search operation into a highly efficient and effective process.
This quarter was characterized by our ambitious goal to streamline our search operation, focusing on two key areas: consistently increasing deal flow and enhancing our decision-making timelines to arrive at "quick no's."
Consistently Increasing Deal Flow
We initiated a broad outreach program targeting local professionals and businesses, complementing a habit of efficient communication. This approach led to over 55 introductory calls with brokers and intermediaries, demonstrating our commitment to expanding our network and finding great SMB investment opportunities.
Enhancing the Decision-Making Timeline
Our diligence process underwent refinement, with bespoke tools supporting each step, from the preliminary assessment through Letter Of Intent templates. This systematic approach enabled us to provide clear and timely discussion points, embodying our "double hell yes or default no" philosophy. Only opportunities that excited us on all fronts moved forward, ensuring we invested our energies wisely.
Conclusion
This quarter's efforts have significantly optimized our search operation, enhancing efficiency and effectiveness. This foundation improves our current performance and sets the stage for sustained growth, aligning closely with our commitment to delivering value to our investors and partners.
Asks from our Community
Let us know what interests you in these updates! We want to produce content that is engaging and informative, so let us know how we can improve.
We are always looking for connections to local brokers, business owners, M&A attorneys, and local wealth managers.
Final Thoughts
Josh here - Like my partner said in last month's newsletter, "Scratching the entrepreneurial itch has been a long time coming" for me as well. I've always been drawn to running my own company but would not consider myself the "big idea" kind of person. After working with startup companies for the majority of my career, I didn't know if running my own business was in the cards for a man without the "unicorn" idea. A friend told me about his path to buying his business, and I was hooked. I dove headfirst down the ETA rabbit hole - I read the books, listened to the podcasts, and immediately knew that this was the path for me and my career.
Working hard is not a foreign concept to me. The most fulfilling job I've ever had was working for a landscaping company throughout high school and college. Twelve-hour days in the blazing summer sun and humidity, hauling dirt and rock in wheelbarrows, building massive retaining walls made of stone and brick - seeing the direct result of a beautiful landscape and satisfied customer from intense labor was incredibly satisfying and something I haven't been able to replicate in any desk job yet.
I'm excited to get back to the roots of working intensely hard and seeing the direct result of that hard work. I'm appreciative to have found a partner with a similar, if not greater, drive to do the same. I've been fortunate in my career to have had amazing bosses and worked for some truly visionary CEOs. I'm thrilled for the opportunity to emulate the best of them in our own companies in the future
Your support fuels our journey forward, and we are immensely grateful.