- How to measure determine whether something will succeed or fail.
- What to look for when approaching a business acquisition.
- What positions you should consider hiring for first, post-acquisition.
“How does a high school dropout start three businesses and end up acquiring 30 more?”
That's the first question Barry Moltz asked Acquira CEO Hayden Miyamoto on an episode of his podcast and radio program “The Small Business Radio Show.”
Hayden joined Barry to discuss his personal journey from high school truant to business acquisition expert. Hayden also discussed business growth and optimizing a business for sale. Check out their conversation below. Hayden's conversation starts at the 20-minute mark.
On Getting Started
I started a web design business (in 2002). I got a client and taught myself internet marketing and SEO before even Google was the biggest search engine. I came to one of the clients and said, ‘Hey, I think we could start a business and sell your stuff to the US sight unseen.' He took a risk on me, and within about 12 months, that business was bigger than his 12-year-old Canadian business.
On Measuring Success
I moved to buying businesses about 10 years ago and more heavily in the last five years because you can skip that product-market fit period, which is always hard. To say, what makes something succeed or fail? It depends on the level of success. I think timing is probably the most important thing for mega successes. And I think having the right team is probably the most important for non-failure.
On What To Look For
I am searching for a well-established business. I'm looking at company culture quite heavily. I'm looking at people who take care of their employees because we look at many service-based businesses, and that's the most important thing. And access to talent is difficult—so good employee retention. And then the business has to be large enough. That's the single greatest criterion in terms of success or failure post-acquisition. And for me, typically, the business should be making about $750k to half a million a year.
On Hiring For Success
Typically, all these businesses have someone in place who can ultimately become the next CEO of the business. Most of these businesses have the owner or seller wearing about three or four hats, but probably not wearing them fully confidently because it's tough to do that many things. So one of the things that we typically hire is someone involved with people and culture in your service business, just because hiring and retaining is so crucial. And then the other two pieces tend to be financial leadership and customer acquisition. And typically, that means in one of those businesses, we promote one person, the CEO internally, and then typically hire two others.
Conclusion
Hayden discussed many aspects related to Acquira's Accelerator Program and our post-acquisition growth service, the ACE Framework.
If you'd like to learn more about our training and how we can help you acquire your own cash-flowing business, schedule a call through the form below.
Key Takeaways
- Timing and having the right team are the most important success factors.
- Good company culture is crucial when acquiring a home services business.
- You'll often find a good CEO candidate already working at your acquired company.
Acquira specializes in seamless business succession and acquisition. We guide entrepreneurs in acquiring businesses and investing in their growth and success. Our focus is on creating a lasting, positive impact for owners, employees, and the community through each transition.
