In 2027 we’ll do over $100M in sales.
2.5X from $40M today.
I'm not going to raise any capital. I'm not going to invent anything. I'm not going to use AI, Web3, or develop any fancy software. I'm not going to create a brand or even a website.
All I'm going to do is execute a proven playbook by scaling boring franchises.
Here's my plan (feel free to copy)
Compounding
Uninterrupted compounding is one of the most powerful forces in the world. I highly recommend reading Morgan Housel's Psychology of Money. It forever changed my perspective on investing.
The key to compound growth is consistency and discipline over a long period of time. Good things come to those who wait.
There is no better investment than your own business. In 2016 my brother and I started compounding our franchise business. We didn’t spend money on dumb stuff. We bought more franchises, expanded into markets, hired better people, and upgraded equipment.
Since 2016 our sales have compounded 27% per year, from $7.4M to $40M
The Plan
Today we operate 33 auto repair franchises doing $40M+ per year. We need to continue 25% growth per year to hit $100M in 4 years.
2023: $40M
2024: $50M
2025: $62M
2027: $80M
2027: $100M
Our plan has 3 components: grow, open, & acquire
1) Grow
We will continue to grow same-store sales. Our target is 12% growth per year, accounting for half of the 25% annual target.
We grow sales by:
Hiring better people + training
Increasing customer count
Improving close rate
Raising prices
We have SOPs in place for every one of those items. It’s on us to execute.
2) Open
We will open new franchises from scratch.
In the auto repair business, we look for independent shops to purchase and convert to Midas. Unfortunately, finding retail automotive real estate in the Northeast is not easy.
We will also expand into new franchise industries. I like the home services because:
Super boring
Huge industry
Low overhead
Low cost to enter
Highly fragmented
We will leverage our existing back-office & technology infrastructure. We will follow our playbook of investing nearly 100% of the cash flow back into growing the business. We will hire a rock-star operator from Day 1.
3) Acquire
We will continue to acquire existing franchise locations. Franchisees want to sell to other franchisees. They don't want to sell to outsiders
There are only a few Midas shops that remain in our current footprint that we have a chance to buy. We're exploring new markets in the Northeast.
There will also be opportunities to acquire existing units of the new brand over the next few years.
Keep It Simple To Scale
A word of advice as you plan to grow your business.
Keep it simple.
It's much easier to do fewer things but do them very well. This is the beauty of franchising. It's boring but can make you a lot of money.
If I can do it, you can do it
Buying Your First Franchise
My team will help you buy your first franchise. We provide you with tools, checklists, attorney/CPA recommendations, funding referrals & more. We help you find a brand that matches your goals, skills, budget & location.
It costs you absolutely nothing.
Book a call today to get started on your franchise journey.
Let's Connect
Cheers!
Brian Beers