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I met the owner of a swim school making $300k per year.
I sat with him to learn about his business.
Here’s what he told me:
I sat with him to learn about his business.
Here’s what he told me:
I grew up a competitive swimmer.
Oddly enough, I had never heard of swim school.
But when I heard John’s school was bringing in $600/year in revenue I was intrigued!
Let’s dig into the business…
Oddly enough, I had never heard of swim school.
But when I heard John’s school was bringing in $600/year in revenue I was intrigued!
Let’s dig into the business…
Industry:
The US Swim School Association has ~500 members.
I would estimate there are around 650-1000 schools in the US.
This is assuming that some members own multiple schools or locations
The US Swim School Association has ~500 members.
I would estimate there are around 650-1000 schools in the US.
This is assuming that some members own multiple schools or locations
Business Specs:
There are three types of swim school owners:
1. Own a building and pool
2. Lease a building and pool
3. Rent a pool for a few hours per day
There are three types of swim school owners:
1. Own a building and pool
2. Lease a building and pool
3. Rent a pool for a few hours per day
John owns a 25x50 ft indoor pool in a cute, coastal town north of LA.
The fact John owns the pool is a big plus.
Here’s why:
The fact John owns the pool is a big plus.
Here’s why:
If we were to buy John’s swim school we would be buying two things:
1. The swim school business
2. The real estate that the school sits on
While we make $600k/year in revenue from the business, we’d also gain value in the real estate over time.
1. The swim school business
2. The real estate that the school sits on
While we make $600k/year in revenue from the business, we’d also gain value in the real estate over time.
Operations:
John has a full-time manager who has worked for him for 10 years.
This means John can be largely absent and can go on month-long vacations.
(pretty sweet)
John has a full-time manager who has worked for him for 10 years.
This means John can be largely absent and can go on month-long vacations.
(pretty sweet)
Financials:
The school averages 600 lessons per week for people of all ages.
The business makes $600k+ of revenue per year.
John takes home $300k.
Saturday is their busiest day, but get this…
They’re closed on Sundays!
The school averages 600 lessons per week for people of all ages.
The business makes $600k+ of revenue per year.
John takes home $300k.
Saturday is their busiest day, but get this…
They’re closed on Sundays!
Growth:
So how would we grow the business?
Open on Sundays!
Staying open another day of the week (especially a weekend) would surely grow the business.
We’d also probably ramp up marketing efforts and grow our roots in the community.
So how would we grow the business?
Open on Sundays!
Staying open another day of the week (especially a weekend) would surely grow the business.
We’d also probably ramp up marketing efforts and grow our roots in the community.
Ideal Future Owner:
I asked John who would be the best type of person to buy his business.
Here is what he told me:
• Good heart
• Great with people
• Ability to manage people
• Someone looking for a nice lifestyle
• Good understanding of cash management
I asked John who would be the best type of person to buy his business.
Here is what he told me:
• Good heart
• Great with people
• Ability to manage people
• Someone looking for a nice lifestyle
• Good understanding of cash management
Buying The Business:
Here’s what I’d do to buy the business.
You should be able to pay around 3x yearly cash flow ($900k).
• Use SBA debt
• I’d put 7% down ($63k)
• Ask John to put 5% on full standby
For $60-90k, you could live a nice life in coastal CA making $300k+/yr!
Here’s what I’d do to buy the business.
You should be able to pay around 3x yearly cash flow ($900k).
• Use SBA debt
• I’d put 7% down ($63k)
• Ask John to put 5% on full standby
For $60-90k, you could live a nice life in coastal CA making $300k+/yr!
Interested in buying this swim school business?
DM me with:
1. Your background
2. Why you’re interested
3. Why you’d be good for the role
4. How you plan to pay for the business
DM me with:
1. Your background
2. Why you’re interested
3. Why you’d be good for the role
4. How you plan to pay for the business
If you enjoyed this thread:
1. Follow me @SievaKozinsky for more of these
2. RT the tweet + Like first tweet to share it with your audience
1. Follow me @SievaKozinsky for more of these
2. RT the tweet + Like first tweet to share it with your audience
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Ryan Hoover @RyanHoover
·
Jul 24, 2022
Great thread!