turning $12.5k into $600m by focusing on ONE type of customer

Once you know your customer, you can start to figure out what value you can provide them.

The company started with $12,500 (borrowed from his wife's parents)

Long story short, today Kaufman and Broad is worth sub $600 million.

- - - -

Talking about how to bring great people into your life as you build a business:

1. I have been on a journey to build a consumer loan company for the past 5 years (hint: very intense yet long grind)

2. Finding the right company, raising capital – same thing, it can be very lonely.

That is why we've partnered with Scalepath to solve that problem. Scalepath has a network of over 2,000 business owners across the U.S., and if you book a call with the CEO Rand Larsen, he will introduce you to up to 3 business owners in your area.

This is very kind from their CEO Rand, so click here to book a call so he could introduce you to  three biz owners in your area.

Relationships run the world, don’t forget that.

Don’t miss out and get to know your next mentor, business buddy or an investor.

- - - -

I was thinking of something the other day:

STEP 1: Say you want to acquire or invest in B2B SaaS or AI company with $2.4m in revenue and 850k in EBIT

STEP 2: You have a board level desire to grow 50-200% annually

The marketing playbook on how to do it (read now or screenshot this for later).

It is important to understand that no two companies are the same.

Take, for example, a b2b Saas with let's say a board level desire to grow 50-200% annually.

You start by getting to know the business:

1. Analyzing the current state

2. Mapping out the biggest growth opportunities

Realizing that building demand in 2025 is a different game.

• Outbound didn’t stop working

• You just can’t treat it like 2019

• Cold emails with no insight are getting ignored

What works today:

1. Behavioral triggers tied to intent

2. Turning newsletters into owned media engines

3. Sequences anchored in actual content, not just asks

The top 5% of B2B companies aren’t doing more.

They’re doing it differently:

The top 5% fastest-growing B2B companies are fast testers:

• offers

• hooks

• landing pages

• subject lines

• pricing language

They treat GTM like a product. And optimize accordingly.

When it comes to implementing it…

It's rocket science in the truest sense of the word.

This is the opportunity.

If you want to grow the company, here's what you can do next:

For a limited time, Spacebar Studios is offering free growth roadmaps for you company: 

Schedule your call today, it’s free.

Its a 20 minute call where you’ll walk away with:

• Funnel leak diagnosis

• 90-day growth roadmap

• 2–3 quick wins

• What’s working in 2025

...and again, it's free. Click here and go gO GO!

- - - -

There’s a deal which came to my inbox.

• Boring niche business

• 4 years of history

• ran by team of 4

• $3m revenue

• net profit $619k (20%!!)

• asking multiple 3.7

See here:

Good news:

Let me know by replying to this email if you’d like to get an access to full financials, SKU data & traffic insights.

- - - -

How has been the week in the small holding company world?

Traditional company

Been at least 1x a quarter calling to an older gentleman who runs a stair manufacturing business. Small, 14 people and VERY profitable.

2022 $1.6m in sales $414k net profit

2023 $1.57m and 486k profit

All calls have been super short, "not interested"

Another call today:

"Damn, you're consistent. You know what. Let's discuss it all on Monday."

I'll let you know how the heavy equipment company financing and negotiations go. But regarding banks, the month July is slow so far.

Consumer loan company

The numbers for 2024 are out. Our VC backed competitor had $2.4 million in revenue and a $4.9 million net loss... Team of 35

We bootstrapped and started the biz at the same time. In 2024, we had $1.4m in revenue and a $150k net profit. Team of 15

Knowing the market, the customers, and the team, I wouldn't be surprised if we tried to acquire them in the next 18-24 months.

- - - -

This week’s podcast:

IMHO if you ever want to LEAVE your 9-5 job and buy a profitable business with zero money down (so you could work even longer hours); this is the ONLY podcast-interview you ever need to listen to. Once per week if needed.

It gives you all the steps and answers in just 54 minutes.

Btw, here are 10 takeaways, lessons, and quotes from Mike Botkin's podcast:

1.  I’ve been poor before - I’m not afraid to go back.

2.  You’re not buying businesses. You’re buying talent.

3.  Most people are overqualified and under committed.

4.  Your first deal won’t be perfect. Do it anyway.

5.  Focus like a lunatic. Live it, breathe it, become it.

6.  The best decision we ever made? Direct reporting to job sites.

7.   Fire your bottom quartile customers. Every quarter.

8.  SBA lenders aren’t partners. They’re lenders.

9.  Luck shows up. But only if you're moving.

10.  The main thing is to keep the main thing the main thing.

Here are the links to Spotify, Apple Podcasts and YouTube.

That’s all for today.

I really appreciate you taking the time to read and look forward to talking to you again next week.

Take care,

PrivateEquityGuy / Mikk Markus