Acquiring Minds Podcast Episode Summary

Title: Deciding to Start, Not Buy, a Small Business
Host: Will Smith
Guest: Kevin Moyer, Co-Founder and Owner of Golden Home Access
Release Date: March 27, 2025
Podcast Link: Acquiring Minds on YouTube
Subscribe for Summaries: acquiringminds.co
YouTube Channel: Acquiring Minds YouTube

Introduction

In this compelling episode of Acquiring Minds, host Will Smith explores the nuanced decision-making process between buying an existing business versus starting one from scratch. The episode features Kevin Moyer, an experienced entrepreneur who successfully operates multiple territories of the Smash My Trash franchise and has now embarked on a new venture, Golden Home Access. Kevin shares his journey, insights, and the thoughtful considerations that led him to start his own business instead of acquiring another.

Guest Background

[00:00] Will Smith:
Will introduces Kevin Moyer, highlighting his substantial experience as an owner-operator. Kevin has established five territories within the Smash My Trash franchise, generating over a million dollars in revenue and $260,000 in Seller’s Discretionary Earnings (SDE). Impressively, Kevin has managed to run these businesses mostly passively, a rare feat in the small blue-collar business sector.

Decision: Start vs. Buy

[05:40] Kevin Moyer:
Kevin recounts his background, transitioning from a venture-backed SaaS environment in San Francisco to franchise ownership. Despite working in an exciting and engaging startup ecosystem, Kevin felt unfulfilled and yearned for a more hands-on entrepreneurial experience.

[09:09] Will Smith:
Will prompts Kevin to elaborate on why he lost enthusiasm for the venture model, seeking clarity on his departure from the startup world.

[09:23] Kevin Moyer:
Kevin explains that two main factors influenced his decision:

1. Decreased Enthusiasm for the Venture Model: He felt constrained by the traditional startup structure, where success is often tied to high-risk, high-reward outcomes driven by investors and founders.
2. Desire for Direct Value Creation: Kevin yearned for a role where his efforts directly translated into personal and business growth, a departure from the more rigid employee role in startups.

Smash My Trash Franchise Experience

[14:43] Kevin Moyer:
Kevin dives into his experience with Smash My Trash, detailing the business model. The franchise involves trucks equipped with machines that compress trash in dumpsters, reducing hauling costs for customers. This straightforward value proposition appealed to Kevin as it offered a clear line between his effort and the business’s success.

[19:46] Kevin Moyer:
Sharing financials, Kevin reveals that in 2024, Smash My Trash generated over $1 million in revenue with an EBITDA of approximately $420,000. After debt service, his take-home was around $260,000, demonstrating the business’s profitability.

[20:08] Kevin Moyer:
Kevin discusses how he streamlined operations to make the business largely passive:

• Hiring Exceptional Drivers: By paying above-market wages, he retained reliable drivers.
• Process Automation: Implementing systems and a virtual assistant to handle administrative tasks, ensuring smooth operations without his constant oversight.

Challenges and Process Optimization

[26:04] Kevin Moyer:
Kevin addresses the challenges of expanding Smash My Trash, particularly balancing business growth with personal life changes, such as starting a family. He decided to limit further expansion to maintain a sustainable work-life balance.

[27:31] Kevin Moyer:
He elaborates on managing a blue-collar business remotely by:

• Implementing Rigorous Processes: Ensuring consistency and quality through detailed procedures.
• Hiring Top Talent: Building a core team of reliable drivers.
• Utilizing a Virtual Assistant: Managing administrative functions to reduce hands-on management.

Franchise vs. ETA Insights

[29:58] Kevin Moyer:
Kevin shares his critical views on franchising versus Entrepreneurial Through Acquisition (ETA). He highlights potential pitfalls in franchising, such as:

• Royalty Fees: Understanding what you’re paying for and ensuring value from the franchisor.
• Contract Terms: Being cautious of minimum royalties and development schedules that may not align with the franchisee’s interests.

[35:23] Kevin Moyer:
Transitioning from franchising, Kevin discusses his new venture, Golden Home Access, emphasizing the importance of starting small to maintain flexibility and reduce risk.

New Venture: Golden Home Access

[35:23] Kevin Moyer:
Kevin introduces Golden Home Access, a business focused on home accessibility services for seniors. The venture aims to cater to the growing demographic of aging individuals who wish to remain in their homes by making necessary modifications such as stairlifts, ramps, and grab bars.

[48:05] Kevin Moyer:
He outlines the business model:

• B2C Product with B2B Distribution: Targeting individual consumers through referrals from businesses like hospitals and rehab centers.
• Massive Growing Market: Leveraging demographic trends to ensure a steady demand.
• Dependable Cash Flows: Ensuring financial stability without relying solely on recurring revenue.

Business Model and Strategy

[57:07] Kevin Moyer:
Kevin discusses the importance of dependable cash flows over the traditional emphasis on recurring revenue. By focusing on referral-based distribution channels, Golden Home Access can achieve consistent revenue streams without the intense competition associated with recurring revenue models.

[58:38] Kevin Moyer:
He differentiates between simple and complex businesses, explaining that while Golden Home Access operates in a complex niche, this complexity allows for multiple avenues of optimization and competitive advantage.

[60:42] Kevin Moyer:
Kevin emphasizes the concept of "binary outcomes" in their services, where the job is either done or not, leading to higher customer satisfaction and minimal service-related issues compared to more variable businesses like home remodeling.

Closing Thoughts

[67:50] Kevin Moyer:
Kevin reflects on his entrepreneurial journey, highlighting the importance of effort, capital, and risk. He outlines a progression from high-effort, low-risk ventures to more capital-intensive and higher-risk investments as he gains experience and confidence.

[78:49] Kevin Moyer:
In his concluding remarks, Kevin expresses enthusiasm for Golden Home Access and acknowledges the support of his wife, who plays a crucial role in his entrepreneurial endeavors.

Key Takeaways

1. Start vs. Buy Decision: Kevin chose to start a new business to maintain control and align his efforts directly with value creation, rather than acquiring another franchise or existing business.

2. Franchise Management: Successfully running multiple Smash My Trash franchises demonstrates the potential for profitability and passive income in the right business model.

3. Process Optimization: Implementing robust processes, hiring top talent, and leveraging virtual assistants are crucial for managing and scaling blue-collar businesses passively.

4. Entrepreneurial Through Acquisition (ETA) Challenges: Franchising, while offering a business model in a box, comes with contractual obligations and potential pitfalls that need careful consideration.

5. New Business Venture: Golden Home Access targets a growing market with home accessibility services, emphasizing dependable cash flows through B2B distribution channels rather than traditional recurring revenue models.

6. Binary Outcomes: Focusing on services with clear, binary outcomes enhances customer satisfaction and reduces operational complexities.

7. Entrepreneurial Progression: Starting with high-effort, low-risk ventures can build the foundation for future capital-intensive and higher-risk investments.

Notable Quotes

• Kevin Moyer [00:00]:
  "There are any number of reasons why starting not buying makes perfect sense, and today we hear from someone who looked closely at buying a business but chose against it, opting to start from scratch."

• Kevin Moyer [09:23]:
  "I just became a little bit less enthusiastic about the venture model for employees... I felt like I just didn't feel great about that."

• Kevin Moyer [20:17]:
  "I built it from the ground up in one month, realized I'm not going to be able to keep driving down there... bought more territories and grew a lot there."

• Kevin Moyer [29:58]:
  "Franchising can be a great path if you find the right franchise, but watch out for traps like minimum royalties and development schedules."

• Kevin Moyer [55:42]:
  "I believe that dependable cash flows are the most reliable way to achieve financial stability, even without traditional recurring revenue."

• Kevin Moyer [58:38]:
  "Complexity can be a feature because it provides a larger surface area to optimize and more ways to compete and win."

• Kevin Moyer [65:54]:
  "I am attracted to things where I can put work in, get money out, and over time figure out ways to make smart decisions and investments."

Conclusion

This episode of Acquiring Minds offers valuable insights into the entrepreneurial journey of choosing to start a business over acquiring one. Kevin Moyer's experiences with Smash My Trash and his new venture, Golden Home Access, provide a roadmap for aspiring entrepreneurs weighing similar decisions. By focusing on process optimization, understanding market dynamics, and aligning business models with personal values and risk appetites, Kevin exemplifies thoughtful and strategic entrepreneurship.

For more detailed insights and actionable advice, be sure to watch the full episode on YouTube or subscribe to the Acquiring Minds newsletter.