We Acquired a "Boring" Business. Managing It Was Quite Different. - Side Hustle Nation

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      “Buy a boring business,” they advised. “It will be simple and enjoyable.” That was the aspiration Andrea Palacio and her husband pursued when they acquired a landscaping company. The journey became challenging quickly, yet they managed to add approximately $300,000 in equity value within just a couple of years.

      Andrea Palacio operates AndreaPalacio.ai, where she assists other entrepreneurs in leveraging AI technology. However, prior to that, she and her husband spent four years living on a sailboat while running an e-commerce venture focused on pet supplies sold on Amazon and Shopify. When that business hit a plateau, they sold it and began searching for a new opportunity. They settled on a landscaping company in South Florida, believing it would provide stability and require minimal oversight. Instead, they faced a cascade of problems.

      Tune into Episode 750 of the Side Hustle Show to discover: how Andrea rebuilt after losing most of her team and clients; how basic AI tools reclaimed over 20 hours of her month; and what running a business taught her about leadership.

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      Why Choose a Landscaping Business?

      After four years on a sailboat, Andrea and her husband noticed stagnation in their e-commerce growth. Competing with major pet supply retailers would have required considerable investment, which they were unwilling to undertake, leading them to sell their business and seek a new direction. Andrea consumed numerous YouTube videos about purchasing businesses, attracted by the notion of buying a functioning company, installing a manager, and stepping back.

      They desired a venture that aligned with their skills—Andrea excels in marketing and customer relations, while her husband is more hands-on. Landscaping seemed recession-resistant since Floridians need to maintain their lawns, so they decided to proceed.

      The Deal That Went Awry

      They purchased the company for $470,000, paying about a 2.3x multiple on net income, using an SBA loan and putting their personal assets, including their home, as collateral. Walking away was not an option. Shortly after the acquisition, things started to fall apart. The seller was supposed to provide training but vanished just five days after the sale. Soon, the manager quit, informing the team they would be better off seeking other jobs. The workforce plummeted from 12 employees to around 2.

      A Difficult First Month

      At that time, Andrea had a 7-month-old child and was expecting her second son. She handled 50 calls daily while managing marketing, administrative tasks, and customer service. Monthly revenue dropped from $70,000 to $40,000, and her husband had to take over the physical labor.

      Overcoming Challenges

      Their initial strategy involved running Google Ads to win back clients, which was costly and resulted in wasted money until they figured it out. Finding workers proved even more challenging; Andrea mentioned that out of 100 interviews, only about 5 would show up, and just 1 would be competent. Improving an existing business within an established framework is a skill itself. Jono Santamaria applied a similar strategy in a laundromat, implementing various changes for revenue growth once he took ownership.

      Learning to Sell

      Roughly half of their revenue came from recurring lawn care contracts, while the other half was from larger custom and enhancement projects, which they struggled to sell. They lost significant commercial clients, such as shopping plazas that paid $2,000 to $3,000 monthly. Andrea’s husband learned to sell using a “fake it till you make it” approach. Over the course of about a year, they managed to rebuild revenue to $60,000 to $65,000 monthly, occasionally reaching $70,000, all while working 80-hour weeks.

      Utilizing AI for Time Management

      The demanding schedule left Andrea feeling disconnected from her children; a change was necessary. Her sister introduced her to ChatGPT, and, being tech-curious, Andrea began experimenting with it to envision AI managing her phone calls and following up on late payments.

      Trial and Error

      Her first step was hiring a freelancer from Upwork to develop her idea. However, after five months, there was no progress. A second freelancer created an automation on Make that sent clients a photo from their CRM after each service, alongside a follow-up text. Satisfied