Mixed Expansion Strategy
Share
Brad Jacobs' strategy focuses on rapidly scaling businesses through a mix of acquisitions and organic growth in fragmented industries. He targets large, fragmented industries where small profitable companies lack capital to scale.
Core Strategy
- Find huge industries with lots of fragmentation
- Target small profitable businesses that lack capital to scale
- Combine acquisitions (2/3) with cold starts (1/3) for growth
- Move extremely fast - can take company public within months of founding
Acquisition & Growth Process
- Start by buying a brokerage/small business (~$30M revenue)
- Add 30-40 employees
- Double revenue over time
- Bring capital to sustain rapid growth
- Integrate acquisitions with powerful software systems
Sales Team Structure
- Hire hungry salespeople with:
- Low base salary ($25-35K)
- High incentive upside
- Must test high on "need to win" scale
- Must test low on "need to be liked" scale
- Sales Process:
- Make 99 calls per day
- Target 1-2 deals per day
- Can build $1M book after ~1 year
- Fund training for first few months
Technology Integration
- Use centralized software system to integrate acquisitions
- Example: "Rental Man" software used to integrate hundreds of rental business acquisitions
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.