Client Background
A home services company specializing in plumbing, electrical, and HVAC repairs wanted to increase business value before bringing on a business partner to expand operations. The client hired Development Theory to help with a growth plan and growth consulting for home service businesses.
The Challenge
No Recurring Revenue Model: The business relied on one-time service calls, leading to fluctuating revenue.
Owner Dependent Operations: The business was too reliant on the owner, making it harder to scale.
Inconsistent Profitability Across Services: Some service lines were low-margin and underpriced, while others were highly profitable.
No Defined Growth Plan for Investors: Potential partners wanted to see a structured expansion strategy before investing.
Our Approach
Membership & Service Contract Model: Introduced subscription-based maintenance plans to generate recurring revenue.
Hiring & Leadership Development: Trained technicians to take on more responsibility, reducing owner dependence.
Pricing Adjustments for Low-Margin Services: Increased prices on underpriced services, improving profitability.
Financial Modeling for Expansion: Created detailed financial projections to attract investment partners.
Marketing & Customer Retention Enhancements: Improved customer follow-up systems, increasing repeat business.
The Solution
Established a monthly membership model, stabilizing revenue.
Reduced owner workload, making the business more scalable.
Increased profit margins across all services, improving cash flow.
Created an investment-ready financial plan, making it easier to secure partnerships.
Results & Impact
Business valuation increased by 45%, thanks to recurring revenue.
Secured a $750K investment, allowing for geographic expansion.
Customer retention improved by 30%, ensuring long-term revenue growth.
Owner was able to step back, focusing more on strategy than daily operations.
Client Feedback
"I didn’t realize how much value I was leaving on the table. This process helped me transform my business into a true asset!"
Development Theory Can Help Business Owners Like You
Thinking about eventually selling your business? You have time to increase its value before the sale. We can help with that - our Growth Consulting service estimates your business's current value and shares dozens of strategies and tools to help you grow your business's worth. The time to plan for a sale is 3-5 years before you list the business - let's get started today!
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