How to Build a $1M Side Business While Working a 9-to-5
Key Points
🛍️ Buying and Growing a Successful Business
- Olo bought a Med Spa business called Wild and Beautiful for $362,000 using seller financing.
- The business was doing $400,000 in sales, and is now on pace to do $1.24 million in revenue, a 227% growth.
- Olo focused on growing the membership program, which led to increased revenue and happy customers.
- Olo used technology like CRM and productivity tools to streamline operations and free up the team to focus on sales and customer experience.
💼 Olo’s Advice for Buying a Business
- Use seller financing to purchase the business, as it’s easier than going through a bank.
- Talk to employees and owners of similar businesses to get insights.
- Have a contingency plan, not just a growth plan, to handle unexpected challenges.
🚀 Driving Growth for the Acquired Business
- Focus on what’s working well and double down on successful lead channels like Groupon.
- Offer memberships as a no-brainer value proposition to drive recurring revenue.
- Improve customer experience by having transparent pricing and easy online booking.
- Leverage referrals, reviews, and influencer marketing to acquire new customers.
🔍 Key Considerations in the Purchase Agreement
- Ensure the purchase is an asset sale, not an equity sale, to avoid taking on liabilities.
- Negotiate a clause to claw back any liabilities that arise after the purchase date.
- Verify the condition and warranty status of any equipment included in the sale.
💰 Olo’s Approach to Scaling the Business
- Memberships are the North Star metric, as they drive both revenue and customer satisfaction.
- Maximize efficiency by automating tasks and reducing front desk workload.
- Olo is considering buying another business in the future to further scale his entrepreneurial ventures.
🤝 Olo and Jen’s Teamwork
- Jen, Olo’s partner, has learned quickly to become an entrepreneur after being thrown into the deep end.
- Olo’s favorite part is seeing Jen’s evolution, while his least favorite is her approach to business finances.
- Olo plans to eventually focus full-time on his own business when it reaches a significant revenue target.
📈 Key Metrics and Growth Highlights
- Grew memberships from $7K MRR to $43K MRR, a 54% increase.
- Increased Google reviews from 45 to 236, a 424% growth.
- Grew gross revenue from $379K to $1.24 million, a 227% increase.
🤔 Olo’s Advice for Aspiring Entrepreneurs
- Surround yourself with people who are already doing it and attend events to learn.
- Don’t wait until you’re making $100K from the business to focus on it full-time.
- Instead, focus on it when you’re making $660K and are on a clear trajectory for growth.
