P&L Business Conversion

Andrew describes converting internal P&L expenses into standalone businesses by identifying internal needs and creating services around them that can be offered to other companies.

Key Points:

• Procurement Service (Dealmaker.co):

  • Handles negotiation of office leases, furniture, insurance
  • Takes a cut of savings achieved
  • Started with only $50k investment
  • Uses trained negotiators who love to negotiate
  • Operates by being CC'd on emails and taking over negotiations

• Business Model:

  • Find scrappy operators
  • Provide back office support, structuring, legal
  • Build website and infrastructure
  • Split ownership 50/50 or 70/30 depending on capital needs
  • Keep initial investment small ($50k range)

• Value Proposition:

  • Helps companies avoid overpaying due to their success/size
  • Removes discomfort of negotiation from CEOs
  • Handles both one-off deals and retained services
  • Focuses on large expenses that significantly impact P&L
  • Examples of savings:
    • Office leases
    • Furniture purchases
    • Insurance
    • Custom installations
    • General business expenses

• Key Success Factors:

  • Already profitable
  • Low initial investment needed
  • Built on existing internal need
  • Leverages existing business infrastructure
  • Addresses common pain point for successful companies