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How I Bought A Multi-Million Dollar Egg Carton Business For $0

My First Million

Thu Nov 02 2023



Buying a Business:

  • Sarah Moore decided to buy a business while in business school after learning about the concept of search funds.
  • She realized that she didn't need a background in private equity or specific industry knowledge to evaluate businesses.
  • Instead of focusing on industries, she looked for established and consistently profitable businesses.
  • Sarah used databases and interns to scrape and filter potential businesses, reaching out to them through targeted emails.
  • She adjusted her approach to email a larger number of businesses with a generic but customized-looking email to increase response rates.
  • The seller's note became an important part of her financing strategy, as it allowed her to avoid putting any cash down.

Value Creation and Growth:

  • After buying eggcartons.com, Sarah recognized the potential beyond just egg cartons and focused on specialty packaging.
  • She discovered that 40% of their revenue came from products unrelated to eggs, such as custom molds for various purposes.
  • COVID-19 provided an opportunity for significant growth as demand increased during the pandemic.
  • Sarah emphasized simplicity and transparency in her dealings with customers and suppliers.

Lessons Learned:

  • Sarah advises not counting yourself out when pursuing opportunities. It's more about will than can when it comes to buying and operating a small business.
  • Hiring and firing quickly is crucial, as keeping underperforming employees can be detrimental to the business.
  • Avoid making big changes in the first year of owning a business. Take time to understand the dynamics before implementing major changes.

Sarah Moore's Background and Motivation:

  • Sarah had a troubled upbringing, bouncing around different homes and getting into trouble as a teenager.
  • She was taken in by a family who believed in her and invested in her future, which changed her perspective on life.
  • Sarah wanted to be that one person for one person and make a positive impact on someone else's life.
  • She attended Harvard Business School, despite not having the traditional background or academic achievements typically associated with admission.

Starting Her Business Acquisition Journey:

  • Sarah decided to buy a business with no money and no experience.
  • She used unconventional methods to search for potential businesses, such as attending broker events wearing noticeable outfits and distributing flyers with her picture and contact information.
  • Sarah utilized free resources like blue bikes for transportation and fax machines to reach out to potential sellers.

Lessons Learned from Mistakes:

  • One of the biggest mistakes she made was changing the phone system in the acquired business without considering its importance to customers. It caused disruptions and negative perceptions about the new ownership.
  • Sarah realized the value of simplicity over complexity when it comes to running a business acquisition process efficiently.
  • She emphasized the importance of not counting oneself out due to lack of experience or specific qualifications. Believing in oneself can lead to unexpected success.

The Power of Personal Connections:

  • The support and belief shown by others, including mentors and adoptive families, played a significant role in shaping Sarah's mindset and determination.
  • She strives to be that one person for one person by providing mentorship opportunities and supporting individuals who are willing to work hard.

Using Gender as an Advantage:

  • Sarah deliberately leveraged her gender during networking events by standing out through height (wearing high heels) and unique outfits. This helped brokers remember her among many other attendees.
  • By embracing her uniqueness, she created memorable impressions that led people to take notice of her interest in buying businesses.

Importance of Freedom:

  • Sarah values freedom and believes it can be achieved by leveraging one's unique qualities, regardless of background or circumstances.
  • She encourages individuals to pursue opportunities in business acquisition and emphasizes that anyone who puts in the effort can succeed.