How to Structure Around Risk in a $250k SDE Acquisition

Sort of none that were, yeah, I would say shovel ready. None that were shovel ready. But also the, this type of business, I mean, we're, we're talking like our, our, our ticket prices for the jobs that we're working on are typically somewhere in the range between like 200 and 700,000.

And so, you know, you don't need very many referrals to walk in the door to get, you know, they have a very high percent closing they go through our design process. They always come to it. You know, they very rarely come to us with plans and stuff already, so that, that's a better position for us to be in.

And so those are even though, I guess, the numbers. What I'm trying to say is that the numbers aren't very high for like the number of referrals, but the value is very high time.

Right? And so, and so speaking of pipeline, like, you just need a small handful really of projects a year to at least maintain the business where it was. I mean, if, if the business is 1, 6 to 2 million a year and these projects range from 2 to $700,000, three to four projects kind of get you there, depending on, you know, if the average project is called half a million bucks. I want to start…

So given first, let's just hear, just put a pin in the, the GC type business. And then I want to kind of step back and big picture this. But so for GC business, for people listening who might consider buying a construction business or kind of a residential remodeling addition sort of business, we've heard, you know, how we, we know how important works in progress is.

We know now how important it is to think about pipeline, things like that. Any, any other tips that for, for people who might be interested in this type of business or, or, you know, hey, don't, don't do it. How about this, Alicia?

Like, you have all, you have this passion, you have this great experience for it, both in construction and on lead generation. Like, if you didn't have that, maybe would, would this not be something that you'd advise somebody else to do?

I don't think so. I think everybody brings their own. You know, there's a lot of people in construction that will tell you that you shouldn't, you shouldn't buy a construction business unless you actually were in the field. You know, were you a carpenter?

Were you a framer? Were you something. And there's a whole bunch of people walking around owning construction businesses right now who would, would tell me that I have no business owning a GC because I wasn't in the field or I wasn't with the tools as they typically say. And I don't think that's right.

But I do think that they, I do think that they bring certainly a different skill set and a different, a different way of being able to look at things and validate the quality of what's going on and challenge their subcontractors that I have to learn. And so I think, I certainly wouldn't say that like lead generation like we were talking about.

I just, you just don't need the volume of leads that you might need in something like a shower business or a solar business or any of those, like a flooring business, any of those kind of quick turn home services businesses. And so I think, I think that can be learned. I think a lot of this GC work can be learned.