Insight
Schwab: Home service businesses hit a $200K-$500K revenue 'valley of despair'
“So in the home services industry, there's something that we kind of joke about called the valley of despair. And what the valley of despair is, is when you're running a home service business, sort of between 205 100,000 dollars per year in revenue, there's a v…”
Insight
Schwab: Remote office managers cannot typically handle more than two accounts
“When you're an office manager for a company, you get to know the owners and the teams and the clients, right? So if you're doing that for more than two accounts, it's just too much for one person to manage typically.”
Insight
Schwab: Sellers should share post-acquisition transition assets before closing
“The other thing was really helpful that impressed the buyer, and this might be a small tip for others, is to also start preparing post-acquisition stuff before you close, and then share it with the buyer.”
Insight
Schwab: Overwhelming buyers with operational details risks canceling acquisitions
“It can be very easy to be too detailed, and you overwhelm the buyer, and then they just go, no thanks, I don't want to deal with this mess.”
Insight
Schwab: Automating your role stalls company growth without defining new goals
“When you take away your own role in your company, you don't know what to do anymore, unless you tell yourself very clearly what your role is going to be moving forward. So I'd had a period of about a year and a half or two years where all my companies were sta…”
Assertion Not checkable as stated
Schwab: Virtual assistants were not used for local businesses before 2016
“People had used VAs for Amazon stores and other purposes before, but no one had really used them for a local business.”
Insight
Schwab: Selling virtual assistant services became vastly easier post-COVID
“Post-COVID, once the Zoom era started, and once everyone started understanding remote, it's the easiest thing in the world to sell now. People just get it, and they know it's possible, and they expect it to work.”
Assertion Not checkable as stated
Innova Local buyer previously scaled IT staffing agencies to $20M-$40M
“So he'd had the experience of taking a company from my current size. To 20, 30, forty million a year. So he'd actually had very specific industry experience of doing this just in the IT industry instead of in the virtual assistant agency world.”
Assertion Not checkable as stated
Schwab signed LOI to sell Innova Local after three weeks
“Such that after just about three weeks, we'd signed an LOI together.”
Assertion Not checkable as stated
Schwab reduced daily workload to five minutes for his cleaning company
“I got running my cleaning company down to less than five minutes a day and my VA company to about an hour a day, sometimes less.”
Assertion Not checkable as stated
Schwab pioneered the remote local cleaning business model in 2016
“I was kind of the pioneer way back in 2016 of what's called the remote local cleaning business model now.”
Assertion Not checkable as stated
Schwab spent just four to eight hours weekly running Innova Local
“I typically spend four to eight hours a week running the business.”
Assertion Not checkable as stated
Schwab simultaneously ran three cleaning companies, a VA agency, and consulting
“So last year I was running several different businesses three cleaning companies and a VA agency and a consulting agency.”
Assertion Not checkable as stated
Schwab closed Innova Local acquisition under 30 days after LOI
“In reality, after the LOI, we closed in less than 30 days, but we, our timelines had matched up very well.”
Disclosure
Schwab will use exit proceeds for all-cash land purchase in Japan
“The intent for a few months now has been to take the money from the business sale and invest it into a cash buy of the land instead of a mortgage.”
