Year 1 in a $300k SDE Services Business - Acquiring Minds Recap
Podcast: Acquiring Minds
Published: 2026-02-23
Duration: 1 hr 30 min
Summary
Scott Crosby shares his transformative journey as the owner of an HVAC and refrigeration services business, emphasizing the challenges and rewards of entrepreneurship. He offers practical advice and insights for aspiring business owners.
What Happened
Scott Crosby, now ten months into owning his HVAC and refrigeration services business in St. Louis, reflects on the drastic shift from employee to entrepreneur. He describes the worst day in his business as still being better than the best day he had while working for someone else, which encapsulates his positive outlook on his new venture. Having acquired a business with under $300,000 in SDE and a small team, Scott faced significant hurdles, including the challenge of turnover among his staff. He made the strategic decision to reinvest all profits back into the business during its early stages, opting not to take any money for himself.
Throughout the episode, Scott shares invaluable lessons learned along his journey. He emphasizes the importance of seeking local economic resources, such as the Small Business Development Center (SBDC), which he describes as a powerful yet often overlooked tool for entrepreneurs. Scott also discusses his 'top 50' concept, a tactical approach that he believes can guide other business searchers. Additionally, he highlights the acquisition analyzer spreadsheet he utilized during his search, which helped him quickly assess potential deals. The episode is filled with practical advice, making it a must-listen for aspiring business owners.
Key Insights
- The importance of reinvesting profits back into the business for growth.
- Utilizing local resources like the SBDC for entrepreneurial support.
- The value of having a structured approach, such as an acquisition analyzer.
- Learning from both challenges and triumphs in the first year of ownership.
Key Questions Answered
What is the significance of reinvesting profits in a new business?
Scott emphasizes that in the early days of his business, he chose not to take any money out for himself, opting instead to reinvest everything back into the company. This strategy has allowed him to navigate the vulnerabilities of running a small business effectively, contributing to its growth and stability.
How can local economic resources help new business owners?
Scott strongly advocates for reaching out to local economic resource centers, particularly the SBDC, which he refers to as free and powerful tools for small business entrepreneurs. He believes these resources can provide invaluable support and guidance for navigating the complexities of business ownership.
What is the 'top 50' concept Scott mentions?
Scott introduces his 'top 50' concept as a tactical approach that he believes can assist other searchers in their entrepreneurial journeys. While he doesn't delve into specifics in this excerpt, it suggests a structured method for identifying and evaluating key opportunities in the business acquisition process.
What challenges did Scott face in his first year of business?
One of the significant challenges Scott faced was the turnover of essentially the whole team. This high level of vulnerability is common in small businesses, and Scott had to adapt quickly to ensure stability while managing his newly acquired business.
What tools did Scott use to assess potential business deals?
Throughout his search for a business, Scott utilized an acquisition analyzer, a spreadsheet designed to help him quickly assess potential deals. He found this tool essential in navigating the complexities of business acquisition and making informed decisions.