Please note: For privacy reason all names and locations have been changed. However, everything else 100% accurate.
The Beginning
In October 2021 we received a query from Ben from cutting edge lighting. His estimating team was overloaded with bids and couldn’t submit them in time. We processed the first project (as a free trial) within 24 hours.
A day later he confirmed that his estimating team had checked the project and found it to be accurate and detailed. They would get in touch soon with some requests on customizing the takeoff and then proceed to send more jobs for takeoff.
A big surge followed by a lower plateau
The first couple of months Ben’s estimating team send us a large number of jobs and were able to clear the backlog of jobs that they had received to bid.
However, after that initial surge the number of jobs they sent our ways reduced significantly. The business went back to status quo, and the increased bidding did not sustain.
A shift in mindset leading to business growth
However, Ben having seen the ability to leverage our services had started gearing his business to handle more business. He even sold 10% of his business (at valuation ‘x’) to bring in more capital to prepare the business for the coming growth.
Using online bidding platforms as well as an increase in on ground sales force, Ben started increasing the number of bids month on month.
He also shifted the mindset of the estimating team. Instead of sending us jobs that they couldn’t estimate, they started sending us all the bids for takeoff and only handled the conversion of the takeoff into the formal bid part of the process.
This led the same team to be able to bid 6x the number of jobs by leveraging our services.
See below the monthly billing number for this client as a proxy to see the growth in bidding and the revenue of the business.
Reaching escape velocity - The 10x exit
In April 2023 Ben was able to sell the remaining 90% of his business at 10x the valuation that he sold his 10% stake for less than 2 years ago. His business revenue had grown by 5x and further growth prospects and operating leverage significantly improved led to the increased valuation.
He continued to work in the company at a significant compensation for the next year as per the terms of the sale before retiring.