How to Grow Revenue 50% in Year 1

A craftsman, a technician. You're not doing framing today, but you have done it. We're going to get there.

Right. So frankly, yeah, so not a lot of buyers for a business like this, even though it, it really, it seems to have really good, really good numbers and really good economics. Okay. And so your total, your total equity at close was a little shy of 120, you said. Yep. And that was for the down payment plus working capital.

That's right, yep. Okay. Okay, great. Anything more to say about that? Well, I mean, on the working capital, just since we touched it, it was completely unnecessary. It turns out the cash conversion cycle of this business is extremely attractive.

Folks pay for their orders before we order the materials. So it's a true negative cash conversion.

And you know, we, we did not need to, to pad the bank account. It was good to have, you know, made me feel better. But it turns out the cash flow dynamics of this are, are very strong as well.

So that's, that's phenomenal. It's again, maybe a little counterintuitive for a retail business.

You'd think in, in many retail situations where somebody walks in, gives you their credit card and walks out with the thing they purchased. Well, that, that, that retail establishment is carrying all this inventory. So it's not the not good cash flow dynamics in your case.

You, you collect the money and then start spending. Spending. Wonderful. And, and so you hadn't caught that initially that, that's been this, this happy realization on the backside of the transaction. No, it, they, it, it was, it was something I, I, I, you know, keyed.

But they normally, I guess what they had done was collect 50, 50% deposits and I guess that was more industry standard. And so framing is not a priority for people. Like at the very, at the best, maybe it's like the fifth thing they have to do on their to do list over the weekend.

And so they're not going to always come pick up their pieces, which when you would collect, you know, the other 50% of your order. So we just started telling people what the price was at checkout and got very little resistance to just giving everything up front. So we've lowered our receivables almost by, you know, 80, 90% on what we keep on a recurring basis.

And so it was good dynamics before, but I think we've, we've improved it even further since we, since we got smart on, you know, what resistance, if any, we would find on that. Amazing. Yeah, so, so that, that's so good. What a lever to pull.