Hello to all my Million Dollar Peeps! As always, I hope this message finds you all doing well, and business is booming!
I'm so pleased and excited to share that we have two client-providers who, as if this afternoon, have signed a Summary Agreement for $3,250,000 with an anticipation to close within 60 days. Needless to say, it's a great day for both parties.
The reason for sharing this great news is......wait for it........wait for it........keep waiting.......OK......ONLY 18.2% of annual total revenue is from broker work!
Further good news that led to us getting such a high multiple (actually, about double the industry standard), is because the total margin on this business is 38.5%, again, another outstanding metric well above the industry standard.
How is all of this possible? Yup, you guessed it, direct pay and contracted work.
I know, I know, there's a LOT of slappy pappy white walker advisors online bragging about REVENUE and how much money they're generating and how quickly......from......ah.......er........a.........brokers, but folks, I can assure you, "the money-making game" is NOT about REVENUE!!
What's most important to making real money and having a future "payday" are the sources of revenue and associated margins.
We've all heard "I started generating $1,000,000 in 12 months," blah, blah, bah (Fill in the revenue and time interval to whatever they're claiming - we've heard it all before).
The revenue and amount of time are absolutely worthless and meaningless if they're low margin garbage broker runs - bottom line.
Go online and search for NEMT businesses for sale. There's an awful lot of 100% broker businesses with a measly 8-15% margin - a far cry from a 7-figure business doing 38.5% margin.
You might get sick of me bashing the "fast cash" via brokers, but if you're not making any money and your existence seems like you're running on a treadmill (running your A$$ off but stuck in the same place), what's the point?!
We're seeing a lot of businesses closing because they're stuck in the broker-rat race, they're not making real money, and they're getting crushed - basically working a job versus running a business.
Play the long game, folks, and build your business the right way - empowering you, making more money, and building something of much higher value.
See you at the Top!
Joel E. Davis
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