Welcome to The Main Street Minute, your shortcut to small business ownership.
👋 Shout-out to the new readers who joined the newsletter last week.
Today’s story: A buyer eyes a $750K painting business, where rising revenue hides a big problem.
❇️ Want to dive deeper: Join us next week for our FREE virtual masterclass with Codie on her 10 Steps to profitable business ownership.
Oh, and one more (giant) thing before we dive in… Due to personal reasons, we’ll be cranking it up a f*cking notch this year:
NOVEMBER 2-4
This has never been open to the public before.
Now it is, and it’s our most valuable in-person event ever.
It’s called Main Street Over Wall Street, and the guest speaker list is ridiculous (renowned CEOs, investors, government officials, and entrepreneurs plan to come.)
This is not a “conference.” This is a true call to arms. You’ll rub shoulders with:
Billionaires who’ve built it all with boring businesses
Investors who want to fund your business
Operators who are looking for their next partner
Owners who want to sell their business
Buyers who will leave with better playbooks
Early Bird pricing ends soon. Secure your spot and check out the speakers, schedule, and more here:
Now onto today’s deal…
NUMBERS
So, What’s the Deal on the Table
Every week in this newsletter, we put a real small business deal under the microscope. One of our community members brings in an opportunity they’re considering, and together we stress-test it: the numbers, the risks, the upside.
This time, the target was a residential painting company.
The backstory: the owner first tried to sell in 2020, but the business wasn’t profitable enough to market effectively. With a consultant’s help, she spent the next few years working to grow it.
The seller was now asking for $750K. But after running some napkin math, the buyer questioned whether it was truly worth half of that.
Why? The operations are lean. Perhaps too lean. The owner works 60-70 hours a week in busy months, manages the books herself, and even does free color consultations, supported only by subcontracted paint crews.
The big question surfaced quickly: Is this a transferable business, or just a demanding job with a big price tag?
KEY IDEAS
1 Big Lesson Any Buyer Can Take from This Deal
This deal wasn’t just about price; it was about perspective.
The buyer came in thinking about multiples. But the community quickly reframed it. As one coach put it:
That shift matters. Instead of debating whether the multiple at $600K, $500K, or $750K was “right,” the buyer was encouraged to run the community’s deal calculator, plug in his costs, and let the cash flow dictate the number.
The conversation also hammered home how to talk about that number with the seller. One coach explained his approach:
That honesty can reset expectations, moving the owner from wishful thinking (“I want $750K to buy a boat”) to reality (“It’s probably closer to $500K”).
The lesson? Base your offer on what the business can actually carry, and use transparency to bring the seller into that reality.
RED FLAG
What to Watch Out For in This Deal
The headline risk here is structural. Revenue has grown, but the business itself hasn’t grown beyond the owner.
She’s still the operator, estimator, bookkeeper, and customer liaison. In busy months, she works 60-70 hours a week. That workload raised serious questions about what a new owner would actually inherit.
One coach explained what that really means:
In other words, all the relationships, sales, and processes flow through the seller, and could vanish the moment she walks away.
When the buyer asked whether this was still worth pursuing, one coach didn’t mince words:
Others echoed the same theme. The business looked fine on paper, but without the seller, there was no infrastructure, no recurring business, and no cushion for a new owner.
As one coach summed it up:
REMINDER
❇️ Save your seat: Join us next week for our FREE virtual masterclass with Codie on her 10 Steps to profitable business ownership. Click to learn more.
INDUSTRY
What You Need to Know
While the community had strong reservations about this particular business, they also pointed out a real advantage: the buyer himself.
He’s spent 25 years in the construction and remodeling industry, estimating jobs, managing crews, and working directly with clients.
That background meant he could walk in on day one with the technical skills and sales experience needed to run a home services business.
The coaches agreed.
Another added:
“You’ve got a great background. I’d love to have that background in today’s world. How many folks in our community would love to be able to buy a home services business and have the right kind of contracting background? A large percentage. You’ve got it. So you’re in great position. Let’s go get another deal.”
There’s also a broader market opportunity. Painting and wall covering contractors operate in a growing, highly fragmented space, with roughly 38K businesses across the U.S. generating average revenue of $899K and employing about 6 people each.
The seller had also established relationships with custom builders and general contractors doing big remodels. Paired with the buyer’s know-how, those connections could be valuable if other aspects of the deal made sense.
The consensus: this buyer is well-positioned for success in the home services industry. The problem wasn’t him; it was his target.
With the information available, would you move forward on this deal?
THE BOTTOM LINE
What Happened Next?
The deal didn’t close, and that was the win. After running the numbers, hearing the feedback, and weighing the risks, the buyer decided to walk. His takeaway:
Plenty of small business owners live with 70-hour weeks and carry-it-all-on-your-back operations. For some, that’s part of the game. But this buyer knew it wasn’t the game he wanted to play. Instead, he walked away with a sharper deal box and a clearer sense of what he is willing to take on.
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