Acquiring Minds: Building a Beloved Brand from a Tiny, Dying Business
Podcast Information:
- Title: Acquiring Minds
- Host: Will Smith
- Guest: Harley Sitner, Owner of Peace Fans
- Episode Release Date: March 13, 2025
- Description: In this episode, Harley Sitner shares his journey of transforming a struggling Volkswagen camper van repair shop into Peace Fans, a beloved eight-figure brand. He delves into the motivations, challenges, and strategic decisions that fueled his success in acquisition entrepreneurship.
1. Introduction and Overview
Will Smith introduces the episode by highlighting Harley Sitner's unconventional acquisition of Peace Fans—a tiny, unprofitable repair shop in Seattle specializing in Volkswagen vans. Purchased for $100,000, Harley turned this "little hole in the wall" into a thriving eight-figure business over 12 years. Will outlines key themes of the conversation: building a brand, following one's gut instinct in acquisitions, and ensuring business buyer fit.
Notable Quote:
"Business Buyer Fit is part of Harley's success and longevity with Peace Fans. This reminds us of the power of finding not just a good business in the abstract, but the right business for you."
[00:00] Will Smith
2. Harley's Motivation to Acquire a Business
Harley Sitner discusses his early career at Microsoft and the pivotal moment when a trip to engage with small business owners ignited his passion for entrepreneurship. Observing a successful HVAC business owner in Lawrence, Kansas, who embodied joy and effective corporate culture, Harley realized the potential and the lifestyle flexibility that came with owning a small business.
Notable Quote:
"I know that my comfort with technology, my ability to deploy it in a sort of ossified small business would be a lever I could pull."
[30:14] Harley Sitner
3. First Acquisition: West Coast Nurseries - Lessons Learned
Harley recounts his first acquisition of West Coast Nurseries, a one-person flower brokerage business. Although the business had a lucrative account with Walmart, Harley realized it wasn't the right fit for his personality and skill set. The experience taught him the importance of aligning business acquisitions with personal strengths and passions.
Key Insights:
- Importance of team and culture in business success.
- The limitations of being a lone wolf in a B2B environment.
- Recognizing when a business, though profitable, doesn't align with personal fulfillment.
Notable Quote:
"I just went for it in this situation... the downside here was $100,000. It had been like a couple million. There's no way... the rational side of me would have absolutely taken over, but I saw the opportunity."
[53:57] Harley Sitner
4. Acquisition of Peace Fans: Origin Story
Harley shares the serendipitous acquisition of Peace Fans, a struggling Volkswagen camper van repair shop. After experiencing poor service from Peace Fans while trying to maintain his own van, Harley learned through the grapevine that the owner was looking to sell or close the business. Driven by passion for the Volkswagen community and a desire to create meaningful customer connections, Harley decided to purchase the business, trusting his gut despite financial reservations.
Notable Quote:
"My gut, I really followed my gut with this one. Something really resonated as true."
[48:36] Harley Sitner
5. Building and Scaling Peace Fans: Business Structure
Over 12 years, Harley expanded Peace Fans into six distinct lines of business, each evaluated based on growth potential, risk profile, and margin structure. These include:
- Peace Fans Vintage: Classic Volkswagen repair and restoration.
- Peace Fans Modern: Building modern camper vans for Mercedes and Volkswagen.
- Peace Fans Service: Servicing modern camper vans.
- Peace Fans Electric: Converting classic vans into electric vehicles.
- Peace Vans Rentals: Renting camper vans in Seattle and Baja California.
- Seeker App: A social platform connecting van life enthusiasts.
Strategic Approach:
- Diversification across related niches within the camper van ecosystem.
- Leveraging technology and brand trust to enter high-growth markets.
- Balancing low-risk cash cows with high-risk, high-reward ventures.
Notable Quote:
"Peace Fans is a brand. And a brand gives you the opportunity to do all these other things."
[62:42] Harley Sitner
6. Building a Beloved Brand
Harley emphasizes the pivotal role of branding in Peace Fans' success. Building a strong, authentic brand fostered customer trust and loyalty, enabling Peace Fans to launch new products and services seamlessly. This brand-centric approach differentiates Peace Fans from competitors and serves as a foundation for future growth.
Key Points:
- Authentic connection with customers enhances brand value.
- A potent brand acts as a multiplier for business acquisitions and expansions.
- Importance of codifying company culture to sustain brand integrity.
Notable Quote:
"A brand gives you the opportunity to do all these other things... a potent brand. People love us, they trust us, they want to do the next thing that we do."
[63:46] Harley Sitner
7. Challenges and Crisis Management
Harley candidly discusses the hardships faced, including the emotional toll of COVID-19 and operational challenges like breaking contracts with major clients. Over time, he developed resilience by recognizing patterns in crises and managing them more effectively, transforming initial panic into strategic action.
Key Insights:
- Early businesses can trigger existential crises; learning to manage them is crucial.
- Maintaining a strong team and company culture helps navigate tough times.
- Continuous innovation and diversification mitigate risks.
Notable Quote:
"Every quarter you're going to have some sort of existential crisis... how you react to those is really kind of the key learning."
[75:18] Harley Sitner
8. Insights and Advice for Business Buyers
Harley offers invaluable advice for aspiring acquisition entrepreneurs:
- Align Acquisitions with Personal Strengths: Choose businesses that leverage your unique skills and passions.
- Follow Your Gut When Appropriate: While rational analysis is essential, intuitive decisions can lead to unexpected successes.
- Build a Strong Brand: A trusted brand opens doors to new opportunities and enhances business scalability.
- Diversify and Innovate: Expand into related niches to balance growth and risk.
- Prepare for Crises: Develop resilience through experience and pattern recognition.
Notable Quote:
"If you really feel that you're, you have these core skills around sales, marketing, branding... you really should be thinking about your acquisition being, providing an avenue for you to apply those."
[67:58] Harley Sitner
9. Conclusion
Harley Sitner's journey from a corporate professional to a successful acquisition entrepreneur underscores the importance of passion, strategic alignment, and brand building in transforming small, struggling businesses into beloved, profitable brands. His story serves as an inspiring blueprint for entrepreneurs aiming to embark on acquisition entrepreneurship.
Closing Remarks: Will Smith wraps up by encouraging listeners to engage with Harley through upcoming live Q&As and to explore more resources on Acquiring Minds for further insights into acquisition entrepreneurship.
Notable Quote:
"The journey is so worth it. I don't regret a single day."
[75:19] Harley Sitner
Key Themes Covered:
- Building a Brand: The strategic importance of creating a trusted and beloved brand.
- Gut vs. Rationality: Balancing intuition with logical decision-making in acquisitions.
- Business Buyer Fit: Ensuring that the acquired business aligns with personal strengths and passions.
- Resilience and Crisis Management: Developing the ability to handle business challenges over time.
- Diversification and Innovation: Expanding business lines to sustain growth and mitigate risks.
Resources Mentioned:
- Peace Fans YouTube Channel: Peace Fans on YouTube
- Episode Summaries Signup: acquiringminds.co
- Live Q&A Registration: Link available in the show notes or YouTube descriptions.
- Legal Office Hours: Upcoming session on employee issues and non-competes on March 13th.
Final Thoughts: Harley Sitner’s transformation of Peace Fans highlights that with the right blend of passion, strategic thinking, and brand development, acquisition entrepreneurs can revive and elevate small businesses beyond their original potential. His experience offers both cautionary lessons and inspiring success stories for anyone considering the path of acquisition entrepreneurship.