When You Buy a Glorified Job, Not a Business - Acquiring Minds Recap

Podcast: Acquiring Minds

Published: 2025-12-24

Duration: 1 hr 45 min

Summary

In this episode, Tato Corcoran shares her journey of buying a manufacturing business that was more of a 'glorified job' than a viable company. Despite initial struggles, she transformed the business, doubling its revenue within 18 months.

What Happened

Tato Corcoran, our guest, bought a manufacturing business in Milwaukee, which she soon realized had been tailored to the previous owner's comfortable lifestyle rather than being optimized for growth. Upon taking over, she discovered that the business was generating only $400,000 in revenue and employed just three people, all while the equipment was neglected and prices hadn’t been raised for nearly a decade. Additionally, Tato had no prior experience in manufacturing, leading her to feel overwhelmed; she admitted to crying on her kitchen floor for the first four months of ownership.

Fast forward 18 months, and Tato has made significant strides, with revenue now exceeding a million dollars. She attributes her success to various strategies, including snail mail campaigns aimed at reaching potential business owners during her search, which provided her with valuable insights into the market. Tato also discusses how the real estate value of the business played a crucial role in her risk analysis and decision-making process. Finally, she shares how she finally cracked the code on hiring, indicating that these strategies were pivotal in her journey to transform the business from a struggling entity into a flourishing operation.

Key Insights

Key Questions Answered

What challenges did Tato Corcoran face after buying her business?

Tato faced numerous challenges after purchasing the manufacturing business, primarily due to her lack of experience in the industry. She described her initial months as extremely tough, stating that she cried on her kitchen floor every day as she navigated the complexities of ownership and management. The business was not only underperforming but also poorly maintained, which added to her stress.

How did Tato Corcoran double her business revenue?

Tato implemented several strategies that significantly boosted her business revenue. Within 18 months, she more than doubled the company's revenue, closing the year 2023 with over a million dollars in sales. Key factors included her proactive approach to marketing, such as using snail mail campaigns to connect with potential business sellers, which opened up new opportunities and insights.

What role did real estate play in Tato's business acquisition?

The value of the business's real estate was a critical factor in Tato's risk analysis during the acquisition process. It provided a safety net and influenced her overall assessment of the business's potential. Understanding the real estate value helped Tato make informed decisions about the risks involved in purchasing a business that was otherwise struggling.

What hiring strategies did Tato find effective?

Tato discovered that cracking the code on hiring was essential to her business's turnaround. She shared insights on how she approached recruitment and found the right talent to help grow the business. Her experiences highlight the importance of having a dedicated team and the right people in place to support operational success.

What entrepreneurial background did Tato Corcoran have before buying a business?

Before purchasing the manufacturing business, Tato had a strong entrepreneurial spirit, honed through various side hustles in her youth. She started selling items for friends and family, which allowed her to learn about marketing and cash flow management. Additionally, her decade-long experience at Salesforce provided her with valuable corporate insights, although she was aware that transitioning to business ownership would present its unique challenges.