Welcome to The Hauler's Edge Newsletter! I remember reading Barbarians at the Gate, a gripping account of the 1989 takeover of RJR Nabisco. At the end, the investment giant Kohlberg Kravis Roberts & Co (KKR) claimed the prize, securing RJR Nabisco for a jaw-dropping $31 billion, with nearly 90% financed by debt. It was a game of high-stakes poker, fueled by risky “junk” bonds, and ultimately contributed to the Savings & Loan crisis of the late ‘80s. Wall Street had to reel in and regulate, which eventually transformed the landscape from leveraged buyouts into what we know today as Private Equity (PE).
Over time, PE firms adapted. The days of wild leveraging were replaced by operational improvements and smart expansions. Private Equity realized they couldn’t just load up companies with debt and hope to win big; they needed sustainable growth strategies. Today, they expect hefty returns of 25-30% annually from lower-middle-market companies.
But here’s the kicker, what they’re doing isn’t rocket science. It’s just disciplined execution, focused on efficiency and growth (for the most part).
Think about it—what do Private Equity firms actually do with the small businesses they buy?
They roll in, tighten the ship, and make sure every decision drives growth. They’re making strategic plans, tracking financials like hawks, and ensuring every person in the business pulls their weight. They cut fat, streamline processes, and chase after higher-margin customers.
Now, all that may sound intense, but isn’t that just smart business?
So, Here's My Question To You... Why Wait For Private Equity?
Here’s what befuddles me. Why do so many business owners wait until a private equity firm shows up to make these improvements? Why hand over a chunk of your business at a discount just so someone else can tell you what you should have been doing all along? Why wait for a new boss to push you to optimize your own business?
In our industry, what matters most are real, hands-on solutions that get results. We don’t need theories or advice from someone who hasn’t spent a day in our shoes. We know our routes, understand our customers, and have a pulse on what works. Practical experience and straightforward strategies will always drive us forward better than any textbook plan.
Build Your Own Private Equity Playbook 📓
Imagine you could capture the same growth Private Equity firms expect—30% annual returns—without selling a stake of your business. By focusing on steady revenue growth and optimizing profit margins, you could 5x your business value over five years. This typically happens once you’re hitting around $1M in EBITDA (earnings before interest, taxes, depreciation, and amortization).
How? By following 3️⃣ core principles:
1. Empower Your Team: Empower your team—they’re the backbone of your operation. Give them clear roles, responsibilities, and incentives that tie into your business goals. Start with team meetings or quick morning huddles, share the big-picture vision, and let them feel like they’re part of something bigger than just hauling junk around town.
2. Execute Relentlessly: In the first 45 days, go all in—define your core values, set a clear vision, and build out the structure that’ll carry your business forward. Get your systems in place: map out the key metrics you’ll track, set up weekly meetings to keep everyone on the same page, and create a decision-making framework that aligns with your goals. It’s about building momentum from day one so your team is geared up for growth. Relentless execution in these early days will make all the difference in where your business heads next.
3. Dig a Moat Around Your Business: In the hauling industry, it’s easy to get undercut by the guy down the street willing to charge less. So you need a moat—something that makes you irreplaceable to your customers. This could be exceptional customer service, a unique service like The Grizzly Bag, or a reputation that clients know they can depend on.
Get Ready to Execute and Start Now 🏁
I’ll tell you right now—the first 45 days will be crucial. This is when you set up the systems that will take you from being a guy with a truck to a business owner with a team and a solid operation. You’ll need to lay out the core values that drive your business, set up metrics that matter, and hold weekly meetings to keep everyone aligned. Craft a clear vision and repeat it constantly. Drill that message into your team’s heads until it becomes second nature.
Pull this off, and you’ll see the growth you’ve been chasing—2025 could be your best year yet. The difference? You’ll own every piece of that success. And that, my friend, is worth more than any price tag a PE firm could slap on it.✌️
P.S.
If you’re interested in diving deeper into this topic, check out these books. I’ve read these over the years while talking to PE companies about acquiring my businesses, including Gutter Pros (which I sold) and Grizzly Junk Pros (where I still chat with PE firms a few times a year). Knowledge is power in both life and business—here are some reads that really deliver:
📕The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It
Start here for the basics on building a business that works efficiently without you having to manage every detail. It’s a foundational read for understanding the systems and mindset needed to grow a business that can eventually stand on its own.
📗The Private Equity Playbook: Management's Guide to Working with Private Equity
This book is a good next step, introducing the concept of private equity and how to navigate PE relationships. It covers the essentials of working with institutional investors and prepares you for those first conversations.
📘Maximize Your Multiple: The Business Owner's Guide to the Institutional Money Deal
Once you understand private equity, this book dives deeper into how to increase your business’s valuation, making it more attractive to institutional investors. It’s a tactical read for positioning your business as a prime acquisition target.
📙The Art of Selling Your Business: Winning Strategies & Secret Hacks for Exiting on Top
This book focuses on practical strategies for the selling process itself, sharing valuable tips and “hacks” to ensure you get the best possible deal. It’s perfect for fine-tuning your approach as you prepare for a potential sale.
📘The Exit-Strategy Playbook: The Definitive Guide to Selling Your Business
Finally, this is the ultimate guide to structuring your exit strategy. It provides a comprehensive approach to selling your business, from preparing the business for sale to negotiating the deal, making it a great final read before going to market.✌️
Justin Hubbard
Whenever you're ready, here are four ways I can help you grow your business:
1. Get Personal Help with a FREE Strategy Call
Need fresh insights on your business strategy? Book a FREE 30-minute call with me. I help identify winning strategies to boost your bottom line and enhance your quality of life.
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4. Read the Latest on Our Blog: Real Insights, Real Growth for Your Business
Looking for practical tips, industry insights, and strategies you can put to work right now? Head over to our blog, where I break down key topics impacting the hauling industry—from navigating the latest market changes to improving customer satisfaction and growing your bottom line. These articles are crafted to give you valuable, actionable advice that you won’t find anywhere else. Check out the blog HERE.
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