Growing Profits 30% in the First 1.5 Years

Something that like when I presented to my wife, she was like okay, you can leave your job to do that.

On the point about the size of business now, what about, let's hear now about, you know, the type of people working in the business. Yeah, this is not high schoolers, you know, working for minimum wage. The motion of a, of a distribution business and you know, imagining yourself in there, whatever the day to day looks like and running one and now doing it.

Yeah, so we have two different sides of it. So we have the warehouse side so team members that are focused on receiving product in inspecting that product and then either putting it, getting, staging it to be shipped out or to be put onto a shelf to be part of our inventory. We then have a shipping team so they're focused on shipping products out to customers.

Then we also have a quality team team that is overlooking, making sure that all the parts are conforming and that if customers have any issues we can address those. Then within the office we have the sales team. So we have team members that are focused on interacting with customers and answering their solicitations.

And the business has historically just operated with an inbound sales motion. So we've never actually had people go out to the field and proactively seek more business. So that's something we'll be looking to change.

But that's just how we've operated today. And then we have a finance HR function and then we have someone focused on the logistics, so managing all of the shipments that are going out, coming in and handling those components.

I mean one of the key things within this particular aerospace is that it's really, really, really important that you have good documentation of all of the parts and can trace them back to their OEM and all the supply chain in which the chain of custody in which they've done that. And so the business has a great history of all of the parts that we have in our inventory. And so that's also a key…

We actually have those, what's called certificates of conformance, oftentimes from the manufacturer where we can say hey, we can show you where we got this part from. And that here is the certificate of performance from the manufacturer. And that's something that is increasingly of high importance to customers

in all of this sort of value add. You know, not just like moving, taking a box from one guy and giving them to the next guy, but the real value you're adding in between there. Is that how you're able to get the margins?

You are 20% margins sound high for me for a distribution business which are notoriously low margin businesses.

Yeah, that's exactly right. More niche products and more value add. And so I would say that was a range I gave you.