Acquiring Minds: How to Lead a Trades Business Without Knowing the Trade

Episode Overview

In the January 11, 2025 release of Acquiring Minds, host Will Smith engages in an insightful conversation with Tripp Bezance, the owner of GNC Glass Mirror and Construction in Lake Zurich, Illinois. Tripp shares his journey from franchising to acquiring and leading an independent trades business, offering valuable lessons for aspiring acquisition entrepreneurs. This episode delves deep into the challenges of transitioning from a structured franchise model to the autonomy of owning a standalone business, especially in a field where the owner lacks technical expertise.

1. From Franchising to Independent Ownership

Tripp's Initial Foray into Franchising

Tripp Bezance began his entrepreneurial journey as a franchisee with Apex Energy Solutions in Milwaukee, a move influenced by a family member who was also a franchisee. He describes franchising as "being a business owner with an instruction manual," highlighting the structured support system that franchises offer.

Tripp Bezance [06:29]: "I always knew it was something that I always wanted to try."

However, after six years, personal circumstances and diminishing support from the franchisor led Tripp to seek independence.

Transition Challenges

Moving back to the northwest side of Chicago to be closer to family, Tripp found operating Apex Energy Solutions remotely increasingly untenable. Additionally, he felt that his role had shifted from genuine ownership to that of a "territory manager," diminishing his sense of autonomy and fulfillment.

Tripp Bezance [08:44]: "I kind of burned out on it, honestly."

2. The Search for an Independent Business

Initial Struggles in Entrepreneurship Through Acquisition (ETA)

Post-franchising, Tripp ventured into searching for an independent business to acquire. Despite his enthusiasm, he found the process arduous and the deal flow insufficient, often encountering overrated or overbidded opportunities.

Tripp Bezance [16:43]: "It was some, it's just funny how that worked out."

The emotional toll of the search was significant, leading Tripp to reconsider his path multiple times.

Leveraging Networking and Professional Support

Acknowledging the difficulty of solo searching, Tripp turned to networking groups like the Midwest Business Brokers Institute (MBBI) and the Exit Planning Exchange of Chicago (XPX). These connections proved pivotal, enabling him to broaden his reach and refine his search criteria effectively.

3. Partnering with Calder Capital

Entering a Professional Advisory Relationship

After persistent efforts, Tripp connected with Shane Kissack from Calder Capital through his extensive networking and email outreach. Calder Capital introduced him to their buy-side advisory services, offering comprehensive support in deal sourcing, valuation, due diligence, and financing.

Tripp Bezance [24:28]: "I have a lot of, like, I'll have a lot of phone calls. Calder will use me as a reference for a lot of people in my position."

Strategic Refinement of Search Criteria

Calder Capital emphasized the importance of a focused search, advising Tripp to narrow his industry preferences from being industry-agnostic to specifically targeting construction. This strategic pivot significantly improved the quality and relevance of the deal flow he received.

Tripp Bezance [37:12]: "Working with Calder, it was great. And I, you know, they drilled me down finally to, like, five industries, and one of those industries was logistics."

4. Acquisition of GNC Glass Mirror and Construction

Overview of GNC Glass Mirror and Construction

GNC, established in 1985, specializes in sales, service, installation, and fabrication of glass and mirror products for both residential and commercial sectors. Tripp acquired GNC with the vision of leveraging his strengths in sales and relationship-building to enhance the business.

Tripp Bezance [40:55]: "We specialize in sales, service installation and fabrication of various glass and mirror products and applications."

Operational Adjustments and Team Optimization

Upon acquisition, Tripp streamlined the workforce from 20 to 15 employees, capitalizing on natural retirements and his team's extensive experience. This reduction not only optimized operational efficiency but also reinforced the company's strong foundation and culture.

Tripp Bezance [44:29]: "I knew I wasn't going to have to come in because I didn't have any glass installers in my back pocket."

5. Leading Without Technical Expertise

Honesty and Delegation

Tripp openly admits his limited technical knowledge in glass and construction but emphasizes the importance of surrounding himself with knowledgeable team members. By being transparent about his role and encouraging open communication, he fosters a culture of trust and collaboration.

Tripp Bezance [63:31]: "I believe in surrounding myself with people that know what they need or know what they do."

Focus on Strengths

Instead of delving into the technicalities, Tripp focuses on his strengths in sales, marketing, and relationship management. He ensures that his team handles the technical aspects while he builds and maintains client relationships, crucial for sustaining and growing the business.

Tripp Bezance [50:23]: "All of our competitors are using the same glass. We don't have like exclusive GNC glass. What differentiates us is the service and ultimately the communication."

6. Navigating the Competitive Construction Landscape

Building Trust and Reliability

In the highly competitive construction industry, Tripp stresses the importance of reliability and transparency. By acknowledging mistakes and maintaining open lines of communication, GNC has earned significant trust among its clients, often resulting in repeat business and referrals.

Tripp Bezance [54:36]: "We take immense pride in that. And that's something that I think has earned us a lot of respect."

Cash Flow Management and Project Dynamics

Tripp highlights the complexities of cash flow in construction projects, such as managing retainage and dealing with long project timelines. Understanding these financial intricacies is crucial for sustaining profitability in the trades sector.

Tripp Bezance [57:52]: "I really have learned about construction. You have to monitor your cash flow appropriately."

7. Lessons Learned and Key Takeaways

Embrace Transparency

Being honest about one's limitations fosters a collaborative environment where team members feel valued and empowered to contribute their expertise.

Tripp Bezance [63:19]: "I just, I believe in surrounding myself with people that know what they need or know what they do."

Leverage Professional Support

Engaging with advisory firms like Calder Capital can provide the necessary expertise and resources to navigate the complexities of business acquisition and ownership.

Focus and Specialization

Narrowing the search criteria to a specific industry can enhance the quality of opportunities and align acquisitions with personal strengths and market needs.

Build a Strong Company Culture

A cohesive and experienced team is invaluable, especially when transitioning into leadership roles where technical expertise may be limited.

8. Final Reflections: Franchising vs. Independent Ownership

Having experienced both franchising and independent business ownership, Tripp conveys a preference for the latter. While franchising offers structured support and a proven model, independent ownership provides autonomy and the ability to infuse personal vision and strategies into the business.

Tripp Bezance [73:22]: "Biased right now, but I would say I prefer the standalone option."

He advises prospective business owners to conduct thorough due diligence, especially when considering franchises, to ensure alignment with personal goals and expectations.

Tripp Bezance [75:04]: "I know for a fact there are a lot of franchise models out there that talk about pie in the sky... Make sure you go through a franchise attorney to understand what you're getting yourself into."

Conclusion

Tripp Bezance's journey from franchising to successfully leading GNC Glass Mirror and Construction underscores the importance of self-awareness, strategic networking, and leveraging professional support in acquisition entrepreneurship. His candid reflections provide actionable insights for anyone looking to lead a trades business without prior technical expertise. By prioritizing honesty, building strong relationships, and focusing on one's strengths, Tripp exemplifies effective leadership in the independent business landscape.

For more insights and to connect with Tripp Bezance, visit his LinkedIn profile or explore additional resources on Acquiring Minds.