Acquiring Minds: How to Grow Revenue 50% in Year 1 – Episode Summary

Release Date: June 2, 2025

Introduction

In this compelling episode of Acquiring Minds, host Will Smith delves into the remarkable journey of J.D. Hasley, the owner of Uptown Frame, who successfully grew his newly acquired frame shop's revenue by 50% within its first year. This episode provides valuable insights into acquisition entrepreneurship, highlighting strategies, challenges, and the personal growth that accompanies such ventures.

Guest Introduction: J.D. Hasley

[00:00] Will Smith: Introduces today's guest, J.D. Hasley, who purchased a frame shop against typical acquisition criteria and achieved an impressive levered cash-on-cash return of 139% in the first year.

[04:46] J.D. Hasley: Expresses enthusiasm about being on the show and shares his journey into acquisition entrepreneurship.

Why Acquisition? J.D.’s Journey to Buying a Business

Early Influences and Education

[05:10] J.D. Hasley:

"I will say that entrepreneurship through acquisition is sometimes referred to as simply search, because the search itself is one of the most difficult parts of buying a business."

J.D. explains his background, lacking a family business, influenced by educators as parents, and a pivotal experience shadowing a relative in the printer and copier sales industry. This early exposure ignited his entrepreneurial spirit.

Professional Experience

[11:31] J.D. Hasley: Highlights his tenure at Crestline Investors, where he gained invaluable insights into small business operations and entrepreneurial lending, shaping his approach to acquisitions.

The Acquisition Process: Finding Uptown Frame

Search Strategy

[12:40] Will Smith: Inquires about J.D.'s method of sourcing the frame shop through Trans World Business Advisors rather than third-party platforms like Biz Buy Sell.

[13:10] J.D. Hasley:

"They have a very robust buyer and seller network... I found this one [frame shop] through their site."

J.D. emphasizes the effectiveness of direct brokerage channels and maintaining confidentiality in certain listings.

Selection Criteria

[14:20] J.D. Hasley: Outlines his parameters for acquisition:

• Cash flow sufficient to replace his existing salary (aiming for $250k–$350k SDE).
• Simple business model with a strong reputation.
• Prime retail location with the potential for capitalization via SBA loans.
• Proven resilience through economic downturns like the GFC and COVID-19.

Operational Excellence: Driving 50% Revenue Growth

Key Strategies Implemented

[16:44] J.D. Hasley:

"We saw the potential for B2B expansion which is not typically thought of with frame shops."

J.D. identifies untapped B2B opportunities, targeting designers, artists, galleries, and auction houses. By differentiating from purely retail-focused competitors, Uptown Frame expanded its customer base.

Enhancing Customer Experience

[18:06] Will Smith: Discusses the niche B2B approach in a typically consumer-focused retail business.

[19:21] J.D. Hasley: Details the differentiation from online competitors like Framebridge by offering personalized, high-quality framing services and leveraging their affluent Dallas location.

Financial Performance and Efficiency

[24:42] J.D. Hasley:

"We purchased this business for $645,000 with an SBA loan of $600,000 and total equity at close of just under $120,000."

[26:13] J.D. Hasley: Explains strong gross margins achieved through efficient labor utilization and maintaining a swift two-week turnaround time, significantly better than the industry standard of 4–6 weeks.

Leveraging Technology and Marketing

[54:52] J.D. Hasley:

"We have a new website equipped with a visualization tool, Google Ads with a low cost per conversion, and a responsive email strategy."

These initiatives boosted inbound leads, optimized customer acquisition costs, and enhanced online presence, contributing significantly to revenue growth.

Managing Key Personnel and Mitigating Risks

Team Structure

[38:10] J.D. Hasley:

"Our manager, with 20 years in big-box framing, transformed the business by reorganizing operations and improving customer service."

[39:47] J.D. Hasley: Discusses maintaining a lean team to manage operations, emphasizing the importance of each member and the inherent key person risk in a small business structure.

Mitigation Strategies

[60:17] J.D. Hasley:

"We're developing SOPs for all aspects of framing to ensure consistency and ease of training new staff."

By creating detailed standard operating procedures and empowering employees with ownership mentality and discretionary bonuses, J.D. reduces dependency on individual team members and fosters a committed workforce.

Financial Highlights and Returns

Initial Investment and Returns

[24:42] J.D. Hasley:

"We purchased the business for $645,000 with an SBA loan of $600,000 and invested just under $120,000 in equity."

[72:45] J.D. Hasley:

"We've returned all of our equity, achieving a levered cash-on-cash return of approximately 140%."

This exceptional return encompasses true distributions after compensating for personal time and demonstrates the robust financial health of Uptown Frame.

Cash Flow Management

[33:58] J.D. Hasley:

"Our cash conversion cycle is extremely attractive, with customers paying upfront, reducing receivables by almost 80–90%."

Efficient cash flow dynamics have minimized working capital needs, enhancing financial stability and supporting ongoing growth initiatives.

Future Vision and Expansion Plans

Scaling Operations

[51:34] J.D. Hasley:

"In the future, we plan to move fulfillment off-site to scale operations without crowding the retail space."

This strategy aims to expand production capacity while maintaining the premium retail experience, facilitating continued revenue growth.

Enhancing B2B Relationships

[49:52] J.D. Hasley:

"We aim to become a one-stop-shop for interior designers, offering delivery, pickup, framing, and installation services."

By streamlining services for high-volume clients, Uptown Frame seeks to solidify its position in the commercial segment, driving recurring revenue and fostering long-term partnerships.

Personal Reflections and Lessons Learned

Balancing Business and Personal Life

[77:22] J.D. Hasley:

"Besides marrying my wife, acquiring this business has been one of the best decisions I've ever made. It has allowed me to spend more time with my son."

J.D. highlights the personal fulfillment and improved work-life balance achieved through successful business acquisition and delegation.

Trusting the Team

[78:00] J.D. Hasley:

"Having the manager stay on board was crucial. You have to trust people because you can’t force them."

Emphasizing the importance of trust and empowering team members, J.D. underscores how foundational relationships and leadership impact business sustainability and growth.

Conclusion

J.D. Hasley's story on Acquiring Minds exemplifies the potential of acquisition entrepreneurship when combined with strategic operational enhancements, effective team management, and leveraging niche markets. His ability to grow Uptown Frame's revenue by 50% in the first year, achieve substantial returns, and maintain a balanced personal life serves as an inspiring blueprint for aspiring entrepreneurs considering the acquisition path.

Notable Quotes:

• J.D. Hasley [16:44]:

  "We saw the potential for B2B expansion which is not typically thought of with frame shops."

• J.D. Hasley [24:42]:

  "We purchased this business for $645,000 with an SBA loan of $600,000 and total equity at close of just under $120,000."

• J.D. Hasley [33:58]:

  "Our cash conversion cycle is extremely attractive, with customers paying upfront, reducing receivables by almost 80–90%."

• J.D. Hasley [72:22]:

  "We've returned all of our equity, achieving a levered cash-on-cash return of approximately 140%."

• J.D. Hasley [77:22]:

  "Acquiring this business has been one of the best decisions I've ever made. It has allowed me to spend more time with my son."

For more insights and detailed discussions on acquisition entrepreneurship, subscribe to the Acquiring Minds newsletter at AcquiringMinds.co and explore additional resources and webinar recordings available on their YouTube Channel.