Welcome Back!

Ah, February 29th - the day that sneaks up on us every four years, giving us that extra 24 hours we all desperately need. And what better way to spend this bonus day than hangout with us! ✨🫶🏼

Today we're shifting gears as we explore the bustling world of the moving services industry in Canada. While the February frost may still crunch underfoot, the moving industry is heating up. 🔥

Let's unpack the insights and navigate the dynamic world of moving services.

INDUSTRY BREAKDOWN

The Moving Services Industry in Canada - Packing Success or Boxed In?

Navigating the moving services industry in Canada is much like packing a delicate vase - handle with care and a solid strategy. With as many as four million Canadians relocating their lives annually, mostly during the great summer migration, this industry is bustling. And with summer right around the corner (it’s so close we can almost taste it!) it might be the right time to get into the industry! ⛱️☀️

Considering the competitive yet expansive network of movers, diving into this industry might just be the move you're looking for. But is it a good industry to purchase a business in right now? It's certainly packing potential.

Industry Trends

In the world of Canadian movers, green is the new black. Companies are shifting gears towards sustainability faster than you can say "bio-diesel." They're wrapping up the competition with reusable packing materials and optimizing their routes to ensure they're not just moving furniture but also moving forward with eco-conscious initiatives. And let's not forget the remote work revolution, turning the traditional commute into a mere shuffle from the bed to the home office. This trend has Canadians choosing their next move based on heart's desire rather than office location, making smaller towns the new hotspot faster than a last-minute packing frenzy​​. 🧳🚚

Meanwhile, technology has rolled into the industry like a dolly loaded with innovation, making the moving process smoother than a freshly paved driveway. Virtual consultations are the new norm, offering a glimpse into your moving future without stepping outside your door. It's a transformative time, where moving companies are not just transporting goods but are also on a journey towards efficiency and sustainability​.

The Finances 

Financially speaking, the moving services industry is on a roll, navigating the fiscal roads with the skill of a seasoned truck driver. 💸 

In a highly competitive market, opportunities for revenue are high. The increase in activity during the summer, accompanied by higher prices, ensures that moving companies can adequately compensate their teams. Also, companies that adopt environmentally friendly practices, such as less plastic wrap, and leverage technology are likely to see significant financial growth.

There isn’t much that is more stable than that! 👀 

The moving services industry in Canada has demonstrates robust growth, advancing with the determination and skill of a professional mover navigating a challenging course. The industry's financial performance has shown remarkable stability, indicative of a sector that has adeptly balanced the dual demands of consistent service delivery and strategic expansion. While there have been minor fluctuations in revenue over the years, these have been navigated successfully, and have not deterred the industry from its overall growth trajectory. This steady progress suggests an underlying resilience and a forward-looking approach that positions the industry well for continued advancement.

Buy or Bust?

So, is jumping into the moving industry a strategic move or a misstep? If you're ready to pack your entrepreneurial spirit and move it into this bustling industry, the signs are pointing to "yes." With the right strategy the potential for success is high. 

However, it's crucial to remember that this industry, much like a fragile box, requires careful handling and a clear label of intent. With an eye on sustainability and technology, and perhaps a good sense of humor about the chaos of moving day, entering the moving industry might just be your best move yet. 🏡➡️🏡

Check out these landscaping deals:

1. Reliable Moving Service Business in Bernalillo, New Mexico - $375,000

2. Senior Moving Management Franchise in Etobicoke, Ontario - $125,000

3. Moving Company Business in Burnaby, British Columbia - $198,000

Interested in a particular industry? Reply to this email with the industry you are curious about and keep your eyes peeled in upcoming issues. 👀 

SPONSORSHIP BY JENN SCHURER

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DEAL REVIEW

Long-Established State Moving Company

This week’s deal is a $1M+ Revenue Moving Company in Weston, Florida

Deal Facts 🔥

Green Flags 🟢

• Long Operational History: the business has been around since 1999 (if you want to feel old, that was 25 years ago 😱), giving the business a strong base. 

• Revenue Expansion Opportunity: the business has an under-utilized 5,500 sq ft warehouse, which could be used to offer storage services. 

• Steady Revenue Growth: the business is also benefiting from steady year-over-year revenue growth - most recently surpassing the $1M revenue mark. 

• Niche Focus: the business focuses on moving heavy equipment - a niche focus that creates a small moat against other moving companies due to its trained staff, established customer relationships, and any/all specialized equipment.   

Red Flags 🔴

• Operational Size: if you’re looking for a passive opportunity, this probably isn’t the best deal for you as it is owner-operated. Since it’s a moving company, get ready to roll up your sleeves until you can hire more movers. 

• Hiring Talent: our first red flag leads us to our 2nd red flag - hiring movers. It’s already hard enough to hire talent in today’s marketplace, add a labour intensive job like moving into the mix, your going to feel like Sisyphus moving that hida bed up those stairs. 😂 

• Owner Relationships: because the business has a specialized focus - there is a risk the owner has a proprietary relationship with these customers. Gaining a better understanding of the nature of the owner’s relationships with clients (is he/she the only contact source within the company for the client) will be fundamental in any due diligence. 

Watch Our Video Breakdown 

For a more in-depth analysis, check out this video deep dive of the deal by our Founder, Morgan Tate:

Possible Deal Structure: Due to the specialized nature of this business, a buyer could explore a small earn-out based on maintaining revenues above $1M (given the drop from 2021 to 2022). This will also hedge against the risk of client relationships being too dependent on the owner.  

Want to learn more about this deal? Reply to this email with a “send me more details” and we will connect you with the broker!

Last time, over 20% of you were into interested in learning more about our HVAC deal! 🌶️🌶️🌶️

SMB TWEET HIGHLIGHT

We get it - you want to find the ✨perfect✨ business! You want a shiny little diamond in a sea of duds that is everything you have ever wanted and more. But imagine you're on a treasure hunt, not for the shiniest jewel, but for the one that speaks to you. Sometimes, the businesses with a few warts are the ones with the most untapped potential.

Looking for your next diamond in the rough? Look no further. 😎

GOOD READS

Recommended Resources 📚

Below is a list of articles, books, and other resource we recommend for buyers or operators of small businesses!

1. There are LOADS of businesses out there - you would be shocked by what idea people have made an empire from. My First Million released a podcast episode about some of the craziest businesses they have seen become insanely popular. Proof that there is no such thing as a “bad” idea (kinda…)!

2. This is a bit of a longer read, but this article from the BDC gives a great insight on how much of a down payment you need in order to purchase your first business. 💸

3. Congrats - all the paperwork is complete and you have purchased your first business! So… Now what? Before you jump into action, make sure you read these 8 steps to help you prepare for your new venture.