| SHORT ANSWER:
Well, Ladies and Gentlemen, the short answer to why I no longer own and operate my own NEMT business......BOOM, RICH, FREE!!
There, I said it, and I have no shame or remorse. I don't have to own an NEMT business anymore because my "Honey Pot" gives me the freedom to do what I want. Plus, I make 3 times as much money in my broker business than I did my NEMT. Just being honest.
LONG ANSWER:
Folks, I don't begrudge ANYONE who has a sincere passion and love for the transportation industry, and even more, serving elderly people. I TOTALLY get and appreciate anyone who genuinely wants to be an independent operator perpetually or envisions their personal legacy being intertwined with NEMT industry indefinitely.
However, I'm sorry (not sorry), I'm not wired like that. For me, my transportation business was a platform to be leveraged. I wanted to make money and parlay that into larger "systems." Did it all go as planned? Heck no! I was a complete jacka$$ that had to get humbled and learn a TON in order for me to accomplish that goal, but thankfully, with God's grace, the goal did get accomplished.
Did I enjoy the NEMT business? Did I enjoy helping an untold number of people? Yes, of course I did. God calls us to serve, and this is a clear case of where I had to get humbled. I went into the business thinking I was going to just chase money, but it wasn't long before you realize you're helping REAL people with REAL and precarious situations. Again, I had to get humbled, and God used NEMT as a humbling tool for me!
Now, does that mean that money still wasn't important? Heck no!
Spoiler Alert: If you're one of those "poverty Christians" who thinks you need to be destitute to be closer to God, yeah, I'm NOT your guy!
Despite being humbled, losing a lot of money and making a lot of mistakes early, I also had to recognize my own DNA and how I'm wired. I'm wired to be a creator - to continue building, growing, and scaling. That's why if you plan on working with my team and me we focus on (1) Building, (2) Growing, (3) Scaling, and then (4) Sell at a future multiple - bottom line.
Again, if your vision is to stay small, possibly be an independent operator, or serve your community and eventually pass the business onto your kids - good on you! There's NOTHING wrong with that. Again, I just know me, how I'm wired, my passion, and things I want to pursue.
Inspired by this question (Not sure who sent it because they didn't include a name), I dusted off an abbreviated P&L from a client-provider who operates ONLY 3 vehicles. He sent me this abbreviated P&L a couple weeks ago. This is his first full calendar year and as you can see by his numbers for ONLY a 3 month period, he's on track to make close to $500,000 and 44+ % with ONLY 3 vehicles.
Now, will he finish there by years end? No, probably not......it will be higher because he's already working on adding Van 4. But this is why I love numbers. Look at his monthly, daily, per unit averages and annual projections. It's a money-maker, and......wait for it........wait for it........it's 80% direct facility and private pay work!
Give it a few years. Think he'll be able to sell at a multiple? Think he has great positive cash flow? And again, it's ONLY 3 vehicles!
You have no idea how many "Bravado Boys" we see bragging about how many vehicles and employees they have - 10, 30, 50+. Sorry, but that ego nonsense doesn't impress me, only the "bottom line" impresses me, and this particular provider whose P&L I feature below has a strong "bottom line" that's only going to grow and a strong positive cash flow.
I know I went off on a bit of a rant, and I'm sorry (NOT sorry), but folks, determine what's important to you and keep your "eye on the prize." If you're goal is to stay in the business and serve long-term and you're not driven by money, good on you - seriously!
If your goal is to leverage the industry to do well, learn a lot, make money, and parlay it into other ventures, then again, good on you! Ultimately, you have to do what God calls you to do.
See you at the Top!
Joel E. Davis |
