My Million Dollar Peeps!
You guys are awesome! So many of you contacted us with your thoughts and insight to my "Question of the Day" that I posted two days in a row because of your great emails.
In case you missed it, the questions was:
Would you rather operate an NEMT business with 3 vehicles generating $285,000 per year that is all private pay or a business generating $1,350,000 with 21 vehicles with the vast majority of their revenue coming from brokers?
The first business has been in business for two years and we just started working with them to grow and scale and the second has been in business for 7 years and we're preparing an executive business valuation in preparation for sale.
Ideally, I'd be sharing the following details in a video, but I don't have time right now, but soon I'll make another video - and I suspect it will be long because you, my peeps, are so awesome and you keep sending us such great stuff.
I have mountains of emails, content, and updates to discuss in my next video - so much that I don't even know where to start.
Now, understanding that I always have to protect my peeps and can't disclose all their details, let me give you some context to adequately compare these two businesses.
The first launched in May of 2020 - just when the scamdemic was gearing up in rare form and everyone was still holding their breath on the "two weeks to flatten the curve" (LOL! Yeah, how'd that work out? SMH!).
The second business actually started as a franchise in late 2014 and went through a legal battle to get out of the franchise in 2016 because they weren't making any money and were tired of being pick pocketed by the franchisor.
The franchisor touted their ability to get them "quick business" - A/K/A, signed up with brokers. It worked! They got busy rather quickly. The problem, though, is they were making NO MONEY! The first business, starting in an absolutely crazy time and leveraged the scamdemic to perform trips that no one else wanted. More specifically, they were literally racking up mileage (ching-ching) going into rural communities and transporting people back to their community where the popular hospitals and medical centers were located. In so doing, they were building relationships "near and far."
The second business, after ridding themselves of the franchisor.....did NOTHING different! NOTHING (I'm sure they're reading this and they know I love them. I've already given them a "tongue lashing!")!
After being free of the franchisor, all the second business did was more broker work (SMH). It's almost as bad as the provider from Philly who I mentioned in one of my previous videos who attended my live event in Colorado in 2011 and in 2021 contacted us seeking help because his broker work was in decline. In TEN YEARS he did NOTHING!!! SMH!
So, what's the crux of these two businesses?
The first business, operating with only 3 vehicles, closed 2021 with $285,531 in revenue and a combined SDE/profit margin of 34.6%, or $98,793.
The second business, operating with 21 vehicles, closed 2021 with $1,349,319 in revenue and a combined SDE/profit margin of 7.3%, or $99,040.
In short, the second business that has been in business more than twice as long and is literally seven (7) times the size, made $247 more than the first business.
Statistically speaking, the first business is averaging $95,177 per vehicle, while the second business is averaging $64,253 per vehicle.
Again, this is why I love numbers. Number always tell a story, and what a story/comparison this is. The two businesses couldn't be more different in size, scope, capacity, labor force, fleet size, etc., and they literally made the same amount of money - almost to the dollar.
Look, is $100k setting the world on fire? Is $100k making them rich? No, but it's a GREAT place to start - especially at the end of year two (not seven!).
Trust me, I know this type of message/comparison isn't popular online with the "White Walkers" and social media groups. I know many people rely on that stuff.
And the first business certainly isn't good for bragging rights at happy hour or annual conventions.
IMPORTANT POINT: We all know which business is better, YET, who do you think "the conventions," the brokers, the insurance agents, the "expert establishment" want to cater to? Who do you think they're rooting for and want to see in attendance at their annual conventions, "certification" courses, etc.? - the first business or the second?
Obviously, they want the second business because they see $$$$.
(Again, as I always say, NO ONE CARES about you and your business BUT YOU! The establishment only wants to take advantage of you.)
....as I digress.
In getting back to these two businesses, who do you think had more labor/staffing related issue?
Who do you think had more burdensome rules and regulations to deal with?
Who do you think had more maintenance issues?
Who do you think is poised to more quickly grow and scale?
Who do you think is in a more flexible position to pursue additional business opportunities?
The list goes on and on and I know you get the idea.
I'm sometimes ask why I do what I do. Seriously, when you compare these two businesses side-by-side, can you not see that it's obvious - I love what I do. I always pull for the underdog! LOL!
See you at the Top!
Joel E. Davis | 
