From Medical Sales to Home Inspection: A Young Entrepreneur's Journey to Business Ownership

The Path to Business Ownership

Karly Midas, a 28-year-old entrepreneur from Kansas, recently made the leap from medical sales to business ownership by acquiring a home inspection company. Her goal? Achieving financial freedom and the ability to retire by age 35.

After graduating with a degree in electrical engineering, Karly pivoted to medical sales, where she found success but felt limited in her ability to build long-term wealth. Like many in her generation, she turned to social media for inspiration, following influencers who discussed investing in real estate and small businesses.

The Search for the Right Business

Karly joined a mastermind group called Action Academy, which exposed her to various investment options, including multifamily real estate, land flipping, and business acquisition. Given her background in sales and engineering, Karly felt most comfortable with the idea of running a small business.

Her criteria for a business acquisition included:

• Location within 3 hours of Nashville
• Annual seller's discretionary earnings (SDE) of at least $350,000
• Purchase price between $1-2 million
• Potential for remote work or hiring an operator
• Recession-resistant industry

Finding the Right Partner

Karly partnered with Alex, whom she met through the Action Academy. While they acknowledge that they partnered quickly, their complementary skills have proven beneficial. Alex's background in staffing sales has been particularly helpful in hiring new inspectors for their expanding business.

The Home Inspection Business Opportunity

Karly and Alex discovered a home inspection business for sale on BizBuySell.com. The business had the following attributes:

• Annual revenue: $780,000
• Seller's discretionary earnings (SDE): $380,000
• Asking price: $1.2 million (negotiated down to $925,000)
• Location: Knoxville, Tennessee

The business was highly automated, with a call center handling scheduling and inspectors working as contractors. This structure allowed for high profit margins and scalability.

Navigating the Acquisition Process

Karly and Alex faced several challenges during the acquisition process:

1. Valuation discrepancies: Their CPA valued the business at $685,000, while the SBA lender appraised it at $980,000.
2. Seller communication issues: The seller had not informed the inspectors about the sale, leading to potential relationship damage.
3. Transition challenges: The need to quickly establish relationships with real estate agents and offices to maintain business continuity.

Despite these hurdles, they successfully closed the deal in April 2024, just four and a half months after Karly decided to pursue business ownership.

Expanding the Business

Since acquiring the home inspection company, Karly and Alex have:

1. Hired two additional inspectors to expand into Nashville and Chattanooga
2. Implemented marketing strategies, including cold outreach to real estate offices
3. Sponsored real estate meetups to network with potential clients
4. Maintained high pay rates for inspectors to attract and retain top talent

Lessons Learned and Advice for Aspiring Business Owners

Karly shares several insights from her experience:

1. The importance of building relationships with brokers, sellers, and key stakeholders
2. The value of a complementary business partner
3. The need for thorough due diligence and clear communication during the acquisition process
4. The benefits of a business model with high margins and scalability potential

The Future of the Business

While revenue has slightly decreased since the acquisition, Karly and Alex are optimistic about future growth. They anticipate significant revenue increases as their new territories in Nashville and Chattanooga become established.

Karly now spends about 10 hours per week on the business, focusing on relationship-building and strategic growth initiatives. She continues to balance her work in medical sales with her role as a business owner, moving closer to her goal of financial freedom and flexibility.

Conclusion

Karly Midas's journey from medical sales to home inspection business owner demonstrates the potential for young entrepreneurs to achieve their financial goals through strategic business acquisition. By leveraging her skills in sales and relationship-building, partnering with a complementary co-owner, and targeting a business with strong fundamentals, Karly has positioned herself for long-term success and the flexibility she desires in her career.

For those inspired by Karly's story and interested in pursuing a similar path, she encourages building strong relationships, thoroughly vetting potential acquisitions, and remaining open to opportunities that align with your skills and goals. With dedication, strategic thinking, and a willingness to take calculated risks, the path to business ownership and financial freedom may be closer than you think.

Article created from: https://www.youtube.com/watch?v=dBiArbML8AA